DDR Teams Up with Anna's Linens - Analyst Blog
January 25 2012 - 1:23PM
Zacks
DDR Corp. (DDR), a real estate investment trust
(REIT), has recently announced its plans to team-up with Anna’s
Linens – a leading retailer of home-furnishing items, in three of
its shopping centers in Puerto Rico. Anna's Linens is the second
such retailer after Five Below – a premier retailer of trendy
merchandise priced below $5, which has announced its partnership
with DDR in 2012 to help expand into a new market.
The shopping centers in which Anna’s Linens will open its outlet
include Plaza Rio Hondo – a 538,000 square-foot enclosed mall in
the city of Bayamon; Plaza del Atlantico – a 225,000 square-foot
enclosed mall in Arecibo; and Rexville Plaza – a 132,000
square-foot retail property in Bayamon.
Anna's Linens will occupy 5,600 square feet of space in Plaza
Rio Hondo, which is expected to open in 2012. In Plaza del
Atlantico, the retailer is slated to occupy three consolidated
small shop units, which are also expected to open in 2012. In
Rexville Plaza, Anna's Linens will occupy two consolidated small
shop units spanning 6,800 square feet, which are expected to open
in early 2013.
With limited new construction on anvil in Puerto Rico, the new
and redeveloped properties of DDR are expected to meet the
increased demand of high-quality space in the island for large
retailers like Anna’s Linens.
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.
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 #3 Rank (short-term Hold) for Kimco Realty
Corporation (KIM), one of the competitors of DDR.
DDR CORP (DDR): Free Stock Analysis Report
KIMCO REALTY CO (KIM): Free Stock Analysis Report
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