DDR Corp’s (DDR) Guidance Disappoints, But Dividend Increases

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DDR Corp (NYSE:DDR) today said that they will be raiseing their quarterly dividend to 10% to $0.19 per share. This will bring their current dividend yield to 4.6%, and it wil be payable on April 5, 2016 to shareholders of record as of March 10. In addition to this news, the company also has also released their 2016 full-year guidance

DDR Corp (NYSE:DDR) expects to earn approximately $1.19 to $1.25 per share from operations with net operating income rising between 2.5 and 3.5% year -over-year.

“We are pleased to guide to another year of strong operating results, transactional activity, and increased dividends to our shareholders,” CEO David Oakes said in a statement on Monday. “The aggressive transactions market encourages us to be a net seller of assets, which weighs on 2016 earnings but should benefit DDR in the future.”

The stock decreased 1.72% or $0.29 during the last trading session, hitting $16.55. About 3.44M shares traded hands or 60.00% up from the average. DDR has declined 0.47% since May 29, 2015 and is downtrending. It has outperformed the S&P500 by 2.54%.

From a total of 9 analysts covering Developers Diversified Realty (NYSE:DDR) stock, 3 rate it a “Buy”, 0 a “Sell”, and 6 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $20 while the lowest target price is $17. The mean of all analyst targets is $17.93 which is 8.34% above today’s ($16.55) stock price. Developers Diversified Realty was the topic of 10 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Deutsche Bank downgraded shares on December 30 to a “Hold” rating. Canaccord Genuity initiated shares with a”Hold” rating and a $18 target share price in their report from a July 22. Evercore maintained DDR stock in a recent report from September 8 with a “Hold” rating. Finally, Bank of America upgraded the stock to a “Buy” rating in a report they issued on an August 6.

The institutional sentiment increased to 1.14 in Q2 2015. It’s up 0.27, from 0.87 in 2015Q2. The ratio is positive, as 24 funds sold all their DDR Corp shares they owned while 71 reduced their positions. 21 funds bought stakes while 87 increased their total positions. Institutions now own 342.29 million shares which is 4.32% more than the previous share count of 328.10 million in 2015Q2.

Long Pond Capital Lp holds 4.21% of its total portfolio in DDR Corp, equating to 6.32 million shares. Real Estate Management Services Llc owns 1.41 million shares representing 3.35% of their total US portfolio. Moreover, Security Capital Research & Management Inc has 3.33% of their total portfolio invested in the company, equating to 6.60 million shares. The New York-based Cohen & Steers Inc has a total of 2.93% of their portfolio invested in the stock. Daiwa Securities Group Inc., a Japan-based fund reported 22.91 million shares owned.

DDR Corp. is a self-administered and self-managed real estate investment trust (REIT). The company has a market cap of $6.17 billion. The Firm is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. It currently has negative earnings. In addition, the Company engages in the origination and acquisition of loans and debt securities, which are generally collateralized directly or indirectly by shopping centers.

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