Developers Diversified Re-brands - Analyst Blog
September 13 2011 - 10:00AM
Zacks
As part of the strategic move to
better mirror the simplified operating metrics of the company,
which focus primarily on open-air, value-oriented shopping centers,
Developers Diversified Realty Corporation (DDR), a
real estate investment trust (REIT), has recently initiated a new
re-branding project.
Moving forward, the company has
rechristened itself as DDR Corp., in line with its ticker symbol on
the New York Stock Exchange as the official brand name. The company
has also changed its logo, tagline and brand identity.
The new name is intended to better
reflect the simplified strategy, portfolio and capital structure of
the company. The words 'developers' and 'diversified' in the
erstwhile corporate name was deemed to have lost its primary
significance, as ground-up development of new shopping centers,
while still being a part of the business, was no longer the
mainstay for the company.
The company 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 should create a growth opportunity
for the company’s existing assets and create future value without
the level of risk or capital required for new development.
Furthermore, DDR Corp. presently focuses more on open-air,
value-oriented shopping centers, thereby making the word
'diversified' an inaccurate representation of its corporate
identity.
The new tagline – "Think Retail.
Create Value." – is aimed at emphasizing to both tenants and
employees that the retailers are the company's primary focus. It is
also expected to serve as a constant reminder to its investors that
the company is resolute in its endeavor to create long-term value
for its shareholders.
Headquartered in Beachwood, Ohio,
DDR Cop. acquires, owns, develops, leases and manages shopping
centers and business centers across 41 states in the U.S., along
with Puerto Rico and Brazil. At the end of second quarter 2011, DDR
Corp. owned and managed 546 retail operating (primarily open-air,
value-oriented shopping centers) and development properties
spanning approximately 126 million square feet.
We maintain our ‘Neutral’
recommendation on DDR Corp. 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 #3 Rank for Kimco Realty Corporation (KIM),
one of the competitors of DDR Corp.
DEV DIVERFD RLT (DDR): Free Stock Analysis Report
KIMCO REALTY CO (KIM): Free Stock Analysis Report
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