Back to top

Analyst Blog

Zacks Equity Research

DDR Declares Quarterly Dividend

DDR KIM

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

DDR Corp. (DDR - Analyst Report), a real estate investment trust (REIT), has recently declared a quarterly dividend of 12 cents per share for the third quarter of 2012. The dividend marks a two-fold increase compared to that in the year-earlier quarter. The common stock dividend is payable on October 2, 2012 to shareholders of record at the close of business on September 14.

If the current dividend is maintained for the remainder of the year, the annualized dividend payout of the company would be 48 cents per share. This would represent a phenomenal back-to-back year-over-year dividend hike for DDR with a 175.0% and 118.2% increase in dividend for full year 2011 and 2012, respectively.

The stellar dividend hikes denote continued strong performances by the company backed by solid operating results and diligent execution of its strategic plan. DDR has followed a significant redevelopment program, disciplined acquisition policy, and monetization of non-income producing assets.

DDR has long been minimizing ground-up development spending in its domestic portfolio, and instead started allocating capital to the lease-up of existing projects. These redevelopments have created a growth opportunity for the company’s existing assets without the level of risk or capital required for new development.

This in turn has enabled DDR to de-lever the balance sheet and generate considerable cash flow for portfolio reinvestment, as well as increase the cash distribution to its shareholders.

In tune with its long-term strategic objectives of restructuring the overall portfolio by upgrading the quality of shopping centers and improving the balance sheet by reducing leverage, DDR also completed approximately $1.6 billion of acquisitions and asset sale transactions in the second quarter of 2012.

Headquartered in Beachwood, Ohio, DDR acquires, owns, develops, leases and manages shopping centers and business centers across 39 states in the U.S., along with Puerto Rico and Brazil. Currently, DDR owns and manages 459 retail operating (primarily open-air, value-oriented shopping centers) and development properties spanning approximately 117 million square feet.

We maintain our Neutral recommendation on DDR for the long term. The company presently has a Zacks #3 Rank, which translates into a short-term Hold rating. We also have a Neutral recommendation and a Zacks #2 Rank (short-term Buy rating) for Kimco Realty Corporation (KIM - Analyst Report), one of the competitors of DDR.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%