), 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.
DDR CORP (DDR): Free Stock Analysis Report
KIMCO REALTY CO (KIM): Free Stock Analysis
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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
), one of the competitors of DDR.