Developers Diversified Realty Corporation
Encyclopedia
DDR is an owner and manager of retail shopping centers in the United States. The company was founded in 1965 and is based in Beachwood
, Ohio
, an eastern suburb of Greater Cleveland
. It operates in 41 U.S. states, Brazil and Puerto Rico. After rebranding itself in 2011 DDR adopted the new brand identity "Think Retail. Create Value."
, with the first one built in 1965.
On September 12, 2011 the company announced plans to change its name from Developers Diversified Realty Corporation to DDR Corp., adopting the NYSE ticker symbol as its name. The name change took effect September 15, 2011. According to CEO Daniel Hurwitz, the company's new focus (value-oriented shopping centers) and simplified strategy necessitated the removal of the words developers and diversified from the name. The change in strategy comes about a year and a half after the company made significant changes to management; In January 2010 it promoted Daniel B. Hurwitz to CEO, prior to that he was president from May 2007. Six months later Mark Bratt joined DDR as executive vice president and chief investment officer.
On September 7, 2011 DDR engaged in an asset swap
with Glimcher Realty Trust
. The deal saw DDR exchanging its ownership of Kansas City's Town Center Plaza
for Columbus, Ohio's Polaris Towne Center.
Sonae Sierra Brazil, with which DDR Corp. has ten shopping centers and three development projects, went public in February 2011 with a market cap of $900 million.
The company's portfolio primarily features open-air, value-oriented shopping centers in high barrier-to-entry markets with stable populations and high growth potential. Core tenants include Wal-Mart
, Kohl's
, T.J. Maxx
, PetSmart
, Bed Bath & Beyond
, Michaels
and Lowe's
. As of 2011 the company operates 538 retail properties around the world.
DDR also owns 34% (down from 47.5% in 2010) of Brazilian developer Sonae Sierra Brazil which operates the 500,000 sq ft Manauara Shopping Center in the city of Manaus
. The mall opened in 2010 and has a 96% occupancy rate.
Since July 1, 2009 the company has reduced its total debt by approximately 25%, or $1.4 billion. Reasons for that include: The removal from its portfolio of vacant space, 30% of the 7.5 million sq ft of empty space left behind by bankrupt tenants and a 65% decrease in development expenditures.
in an effort to advance its solar power program. The arrangement benefits SunEdison by giving it the right to use its own systems at 130 shopping centers (which will then generate revenue by being accessible to tenants). The partnership provides DDR with an extra source of operating income (SunEdison will pay for use of rooftop space) and cheaper power (energy expenditures for commonly used areas are expected to be lower). Phase 1 of the project began in New Jersey where eight locations will generate 1.4 KWh per year.
Beachwood, Ohio
-External links:* *...
, Ohio
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
, an eastern suburb of Greater Cleveland
Greater Cleveland
Greater Cleveland is a nickname for the metropolitan area surrounding Cleveland, Ohio and is part of what used to be the Connecticut Western Reserve.Northeast Ohio refers to a similar but substantially larger area as described below...
. It operates in 41 U.S. states, Brazil and Puerto Rico. After rebranding itself in 2011 DDR adopted the new brand identity "Think Retail. Create Value."
History
The company's roots go back to a group of companies established by lawyer and single family home builder Bertram Wolstein, an alumnus of Cleveland–Marshall College of Law. In 1965 he switched to commercial real estate and began a partnership with KmartKmart
Kmart, sometimes styled as "K-Mart," is a chain of discount department stores. The chain acquired Sears in 2005, forming a new corporation under the name Sears Holdings Corporation. The company was founded in 1962 and is the third largest discount store chain in the world, behind Wal-Mart and...
, with the first one built in 1965.
On September 12, 2011 the company announced plans to change its name from Developers Diversified Realty Corporation to DDR Corp., adopting the NYSE ticker symbol as its name. The name change took effect September 15, 2011. According to CEO Daniel Hurwitz, the company's new focus (value-oriented shopping centers) and simplified strategy necessitated the removal of the words developers and diversified from the name. The change in strategy comes about a year and a half after the company made significant changes to management; In January 2010 it promoted Daniel B. Hurwitz to CEO, prior to that he was president from May 2007. Six months later Mark Bratt joined DDR as executive vice president and chief investment officer.
On September 7, 2011 DDR engaged in an asset swap
Asset swap
An asset swap is an exchange of tangible assets for intangible assets or vice versa. Since it is a swap of assets, the procedure takes place on the active side of the balance sheet and has no impact on the latter in regards to volume...
with Glimcher Realty Trust
Glimcher Realty Trust
Glimcher Realty Trust is a Columbus, Ohio based real estate investment trust. The company specializes in the development and management of regional malls and shopping centers. As of 2009, the company's properties consisted of 23 malls , and three community centers...
. The deal saw DDR exchanging its ownership of Kansas City's Town Center Plaza
Town Center Plaza
Town Center Plaza/Park Place is an open air shopping center in Leawood, Kansas. which is near other strip centers while one is anchored by Henhouse market another is anchored by Talbots while another is anchored by The Apple Store,and Crate & Barrel. park place is an office, retail, and residential...
for Columbus, Ohio's Polaris Towne Center.
Sonae Sierra Brazil, with which DDR Corp. has ten shopping centers and three development projects, went public in February 2011 with a market cap of $900 million.
Operations
As of September 30, 2011 the company has been successful in leasing out 93.4% of its portfolio (up from 90.7% in July 2009).The company's portfolio primarily features open-air, value-oriented shopping centers in high barrier-to-entry markets with stable populations and high growth potential. Core tenants include Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
, Kohl's
Kohl's
Kohl's Corporation is an American department store chain headquartered in the Milwaukee suburb of Menomonee Falls, Wisconsin, operating , 1,089 stores in 49 states. In 1998, it entered the S&P 500 list, and is also listed in the Fortune 500...
, T.J. Maxx
T.J. Maxx
T.J. Maxx, sometimes referred to as TJ's or the Maxx, is an American department store chain owned by TJX Companies. With more than 900 stores T.J. Maxx is a major clothes retailer in the United States, whilst also operating stores in a number of other countries.-History:In 1976, T.J...
, PetSmart
PetSmart
PetSmart, Inc. is a retail chain doing business in the United States and Canada engaged in the sale of specialty pet supplies and services such as grooming and dog training, PetSmart PetsHotel dog and cat boarding facilities and Doggie Day Care.- History :...
, Bed Bath & Beyond
Bed Bath & Beyond
Bed Bath & Beyond Inc. was formed in 1971 and today operates a chain of domestic merchandise retail stores across United States, Puerto Rico and Canada. They feature mostly medium-ranged, but also a limited selection of high quality, domestic merchandise: items for the bedroom, bathroom, kitchen,...
, Michaels
Michaels
Michaels is an arts and crafts retail chain. It currently operates more than 1040 Michaels Arts and Crafts Stores located in 49 U.S. states and in Canada. The company owns and operates the Aaron Brothers retail chain which consists of more than 140 stores...
and Lowe's
Lowe's
Lowe's Companies, Inc. is a U.S.-based chain of retail home improvement and appliance stores. Founded in 1946 in North Wilkesboro, North Carolina, the chain now serves more than 14 million customers a week in its 1,710 stores in the United States and 20 in Canada. Expansion into Canada began in...
. As of 2011 the company operates 538 retail properties around the world.
DDR also owns 34% (down from 47.5% in 2010) of Brazilian developer Sonae Sierra Brazil which operates the 500,000 sq ft Manauara Shopping Center in the city of Manaus
Manaus
Manaus is a city in Brazil, the capital of the state of Amazonas. It is situated at the confluence of the Negro and Solimões rivers. It is the most populous city of Amazonas, according to the statistics of Brazilian Institute of Geography and Statistics, and is a popular ecotourist destination....
. The mall opened in 2010 and has a 96% occupancy rate.
Since July 1, 2009 the company has reduced its total debt by approximately 25%, or $1.4 billion. Reasons for that include: The removal from its portfolio of vacant space, 30% of the 7.5 million sq ft of empty space left behind by bankrupt tenants and a 65% decrease in development expenditures.
Partnership with SunEdison to activate solar power projects
In 2009 DDR partnered with solar energy service provider SunEdisonSunEdison
Sun Edison LLC owns and operates power plants in North America and provides solar-generated energy to commercial, government, and utility customers. The company provides solar energy services, which include renewable power, monitoring, marketing, renewable portfolio standards, and solar tariff...
in an effort to advance its solar power program. The arrangement benefits SunEdison by giving it the right to use its own systems at 130 shopping centers (which will then generate revenue by being accessible to tenants). The partnership provides DDR with an extra source of operating income (SunEdison will pay for use of rooftop space) and cheaper power (energy expenditures for commonly used areas are expected to be lower). Phase 1 of the project began in New Jersey where eight locations will generate 1.4 KWh per year.