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DDR Corp (DDR) FFO Beats Estimates in Q1, Declines Y/Y
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DDR Corp. reported first-quarter 2017 funds from operations (FFO) per share of 30 cents, beating the Zacks Consensus Estimate by a penny. However, the figure came in a cent lower than the prior-year quarter figure. The decline can be attributed to dilutive effect of deleveraging generated through sale of assets.
The real estate investment trust (REIT) posted revenues of $231 million in the reported quarter, slightly lower than the Zacks Consensus Estimate. The prior-year quarter’s revenue figure was $246.2 million.
Quarter in Detail
DDR inked 285 new and renewal leases for 1.8 million square feet of space during the reported quarter. On a pro rata basis and including Puerto Rico, the company generated new leasing spreads of 2.8% and renewal leasing spreads of 6.3%. Also, same-store net operating income (NOI), including Puerto Rico, declined 0.1% year over year on a pro rata basis.
As of Mar 31, 2017, the company’s portfolio was 94.3% leased, down 70 basis points sequentially. Annualized base rent per occupied square foot increased 5.5% on a pro rata basis to $15.67 as of Dec 31, 2016, from $14.86 at the end of the year-ago quarter.
During the quarter, DDR acquired 3030 North Broadway in Chicago, IL, a 131,748-square-foot grocery-anchored shopping center for $81 million. Also, the company sold 10 assets and two land parcels for $118.5 million, at its share.
DDR exited the first quarter with $19.7 million in cash compared with $30.4 million as of Dec 31, 2016.
2017 Outlook
DDR withdrew its previous 2017 operating FFO per share guidance.
The company expects its same store NOI growth rate in the range of -1.5–0.0% from the previous range of 1–2%.
To Conclude
Stiff competition, increasing online sales and rise in interest rate pose concerns for the company.
However, its diversified portfolio, concentrated mostly in prosperous regions, helps in generating relatively stable revenues. Further, the presence of well-capitalized tenants in its roster keeps its growth momentum going.
We now look forward to the earnings releases of Digital Realty Trust, Inc. (DLR - Free Report) , Ventas, Inc. (VTR - Free Report) and Host Hotels & Resorts, Inc. (HST - Free Report) , which are expected later this week.
Note: All EPS numbers presented in this write-up represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
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DDR Corp (DDR) FFO Beats Estimates in Q1, Declines Y/Y
DDR Corp. reported first-quarter 2017 funds from operations (FFO) per share of 30 cents, beating the Zacks Consensus Estimate by a penny. However, the figure came in a cent lower than the prior-year quarter figure. The decline can be attributed to dilutive effect of deleveraging generated through sale of assets.
The real estate investment trust (REIT) posted revenues of $231 million in the reported quarter, slightly lower than the Zacks Consensus Estimate. The prior-year quarter’s revenue figure was $246.2 million.
Quarter in Detail
DDR inked 285 new and renewal leases for 1.8 million square feet of space during the reported quarter. On a pro rata basis and including Puerto Rico, the company generated new leasing spreads of 2.8% and renewal leasing spreads of 6.3%. Also, same-store net operating income (NOI), including Puerto Rico, declined 0.1% year over year on a pro rata basis.
As of Mar 31, 2017, the company’s portfolio was 94.3% leased, down 70 basis points sequentially. Annualized base rent per occupied square foot increased 5.5% on a pro rata basis to $15.67 as of Dec 31, 2016, from $14.86 at the end of the year-ago quarter.
During the quarter, DDR acquired 3030 North Broadway in Chicago, IL, a 131,748-square-foot grocery-anchored shopping center for $81 million. Also, the company sold 10 assets and two land parcels for $118.5 million, at its share.
DDR exited the first quarter with $19.7 million in cash compared with $30.4 million as of Dec 31, 2016.
2017 Outlook
DDR withdrew its previous 2017 operating FFO per share guidance.
The company expects its same store NOI growth rate in the range of -1.5–0.0% from the previous range of 1–2%.
To Conclude
Stiff competition, increasing online sales and rise in interest rate pose concerns for the company.
However, its diversified portfolio, concentrated mostly in prosperous regions, helps in generating relatively stable revenues. Further, the presence of well-capitalized tenants in its roster keeps its growth momentum going.
DDR Corp. Price, Consensus and EPS Surprise
DDR Corp. Price, Consensus and EPS Surprise | DDR Corp. Quote
Currently, DDR carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We now look forward to the earnings releases of Digital Realty Trust, Inc. (DLR - Free Report) , Ventas, Inc. (VTR - Free Report) and Host Hotels & Resorts, Inc. (HST - Free Report) , which are expected later this week.
Note: All EPS numbers presented in this write-up represent funds from operations (FFO) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>