DDR Corp. To Sell Its Brazilian Investment; Lowers 2014 Operating FFO Guidance

(RTTNews) - DDR Corp. (DDR) announced it has signed a letter of intent to sell its 50% ownership interest in Sonae Sierra Brazil BV Sarl, a Luxembourg company, to Alexander Otto and his affiliates for $343.6 million. As a result of the timing difference between the transaction and the reinvestment of the proceeds, as well as an acceleration of domestic disposition plans, DDR lowered its 2014 operating FFO guidance to $1.14 to $1.18 per share, from $1.17 to $1.21 per share, representing year-over-year growth of 5% at the midpoint.

Sonae Sierra Brasil's portfolio consists of ten regional malls totaling 4.6 million square feet. DDR's interest in SSB BV Sarl represents DDR's entire investment in Brazil.

Daniel Hurwitz, CEO, said: "Our decision to exit Brazil at the negotiated price is consistent with our intense focus on capital allocation and our strategy to create value for shareholders by reducing our risk profile, simplifying our structure, and generating outsized investment returns as we remain focused on investing in high quality domestic power centers."