A month has gone by since the last earnings report for DDR Corp. . Shares have lost about 13.8% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
DDR Corp. Falls Short of Q4 FFO and Revenue Estimates
DDR Corp.’s fourth-quarter 2016 FFO per share of $0.30 were lower than both the Zacks Consensus Estimate and the prior-year quarter tally by $0.01.
The REIT posted revenues of $232.2 million in the reported quarter. The adjusted revenues were $226.5 million. The Zacks Consensus Estimate for revenues was $240.1 million.
For full-year 2016, the company reported FFO per share of $1.28, higher than the prior-year figure of $1.23.
Quarter in Detail
DDR Corp. inked 272 new and renewal leases for 1.9 million square feet of space during the reported quarter. On a pro rata basis and excluding Puerto Rico, the company generated new leasing spreads of 21.3% and renewal leasing spreads of 8.3%. Also, same-store net operating income, excluding Puerto Rico, climbed 2.5% year over year on a pro rata basis.
As of Dec 31, 2016, the company’s portfolio was 95% leased, down 40 basis points sequentially. Annualized base rent per occupied square foot increased 4.7% on a pro rata basis to $15.46 as of Dec 31, 2016, from $14.76 at the end of the year-ago quarter.
During the quarter, DDR Corp. acquired two shopping centers for $148 million at its share. On the other hand, the company sold seven assets and nine land parcels for $833 million, at its share.
Finally, DDR Corp. exited the fourth quarter with $30.4 million in cash compared with $22.4 million as of Dec 31, 2015.
2017 Outlook
DDR Corp. has provided outlook for 2017. The company expects the 2017 operating FFO per share to be in the range of $1.12–$1.16. Also, it projects same store NOI growth in the range of 1–2% for the full year.
Further, the company anticipates its disposition guidance for full-year 2017 in the range of $800 million to $1 billion at its pro rata share, while it targets 2017 acquisition of $100 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been three downward revisions for the current quarter. While looking back an additional 30 days, we can see even more downward momentum. There have been four downward revisions in the last two months.
VGM Scores
At this time, DDR Corp.'s stock has a subpar Growth Score of 'D', however its momentum is doing a bit better with a 'C'. Following the exact same course, the stock was allocated also a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the stock is suitable for value and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of these revisions also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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DDR Corp (DDR) Down 13.8% Since Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for DDR Corp. . Shares have lost about 13.8% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock’s next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
DDR Corp. Falls Short of Q4 FFO and Revenue Estimates
DDR Corp.’s fourth-quarter 2016 FFO per share of $0.30 were lower than both the Zacks Consensus Estimate and the prior-year quarter tally by $0.01.
The REIT posted revenues of $232.2 million in the reported quarter. The adjusted revenues were $226.5 million. The Zacks Consensus Estimate for revenues was $240.1 million.
For full-year 2016, the company reported FFO per share of $1.28, higher than the prior-year figure of $1.23.
Quarter in Detail
DDR Corp. inked 272 new and renewal leases for 1.9 million square feet of space during the reported quarter. On a pro rata basis and excluding Puerto Rico, the company generated new leasing spreads of 21.3% and renewal leasing spreads of 8.3%. Also, same-store net operating income, excluding Puerto Rico, climbed 2.5% year over year on a pro rata basis.
As of Dec 31, 2016, the company’s portfolio was 95% leased, down 40 basis points sequentially. Annualized base rent per occupied square foot increased 4.7% on a pro rata basis to $15.46 as of Dec 31, 2016, from $14.76 at the end of the year-ago quarter.
During the quarter, DDR Corp. acquired two shopping centers for $148 million at its share. On the other hand, the company sold seven assets and nine land parcels for $833 million, at its share.
Finally, DDR Corp. exited the fourth quarter with $30.4 million in cash compared with $22.4 million as of Dec 31, 2015.
2017 Outlook
DDR Corp. has provided outlook for 2017. The company expects the 2017 operating FFO per share to be in the range of $1.12–$1.16. Also, it projects same store NOI growth in the range of 1–2% for the full year.
Further, the company anticipates its disposition guidance for full-year 2017 in the range of $800 million to $1 billion at its pro rata share, while it targets 2017 acquisition of $100 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There have been three downward revisions for the current quarter. While looking back an additional 30 days, we can see even more downward momentum. There have been four downward revisions in the last two months.
DDR Corp. Price and Consensus
DDR Corp. Price and Consensus | DDR Corp. Quote
VGM Scores
At this time, DDR Corp.'s stock has a subpar Growth Score of 'D', however its momentum is doing a bit better with a 'C'. Following the exact same course, the stock was allocated also a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the stock is suitable for value and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of these revisions also indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.