Shares of DDR Corp. ( DDR ) reached a new
52-week high, touching $19.03 in the first half of the trading
session on May 7. The closing price of this retail real estate
investment trust (REIT) on May 7 was $18.91, representing a solid
year-to-date return of 20.6%. The trading volume for the session
was 2.03 million shares.
Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock
may not sustain this momentum going forward based on its current
estimates revision trends. However, the company has strong
fundamentals and expected year-over-year earnings growth of 6.71%
Factors to Consider
Impressive first-quarter 2013 results on the back of its
consistently strong portfolio restructuring activity as well as
successful execution of its long-term strategy of improving the
balance sheet by reducing leverage - were the primary growth
drivers for DDR.
However, DDR has a significant development pipeline, which
increases its operational risks.In addition, excess retail space in
a number of its markets and the rise in consumer purchases through
catalogs and the Internet could hurt the demand for it's'
On Apr 30, DDR reported first-quarter 2013 operating FFO (funds
from operations) per share of 27 cents. This was in line with the
Zacks Consensus Estimate and surpassed the year-ago figure of 24
cents. Strategic acquisitions made in the past two years aided the
Moreover, DDR has delivered positive earnings surprises in 2 of
the last 4 quarters with an average beat of 4.01%.
Over the last 30 days, the Zacks Consensus Estimate for
full-year 2013 FFO remained unchanged at $1.10. For 2014, the Zacks
Consensus Estimate decreased 0.8% to $1.17 per share.
Other better performing REITs include the Host Hotels
& Resorts Inc. ( HST ), Public
Storage ( PSA ) and
Acadia Realty Trust ( AKR ). All these stocks
carry a Zacks Rank #2.
Note: Funds from operations, a widely accepted and reported
measure of REITs performance, are derived by adding depreciation,
amortization and other non-cash expenses to net income.ACADIA RLTY TR (AKR): Free Stock Analysis
ReportDDR CORP (DDR): Free Stock Analysis ReportHOST HOTEL&RSRT (HST): Free Stock Analysis
ReportPUBLIC STORAGE (PSA): Free Stock Analysis
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