The Zacks Analyst Blog Highlights: DDR, Blackstone Group, Target and American Realty Capital Properties

For Immediate Release

Chicago, IL – October 24, 2014 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the DDR Corp. (DDR-Free Report), Blackstone Group L.P. (BX-Free Report), Target Corp. (TGT-Free Report) and American Realty Capital Properties, Inc. (ARCP-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday’s Analyst Blog:

DDR Completes $1.9B Shopping Center Buy

DDR Corp. (DDR-Free Report) in collaboration with an affiliate of The Blackstone Group L.P. (BX-Free Report) disclosed the completion of the acquisition of 71 shopping centers for $1.93 billion. Following this news, shares of the company rose 0.23% during the regular trading session on Oct 21.

The acquired assets are mainly prime power centers positioned in Los Angeles, Houston, Denver, Chicago, Atlanta, Washington D.C. and Phoenix. These power centers are occupied by high-quality retailers like Target Corp. (TGT-Free Report), PetSmart, Trader Joe’s, Bed Bath & Beyond and several other reputed names.

These properties offer DDR scope for growth and their trade area demographics are in-line with the company's prime average while average base rent per square foot is 6% below DDR's current prime portfolio. It also has several potential contenders for "Project Accelerate" that calls for bringing back below market spaces from underperforming retailers.

Notably, in Jun 2014, DDR and Blackstone formed a joint venture (their third one) to acquire properties from American Realty Capital Properties, Inc. (ARCP-Free Report). In this JV, Blackstone owns 95% stake while an affiliate of DDR owns the rest. As per the JV terms, DDR will offer customary leasing and management services and enjoys the right of first offer to purchase 10 of the assets under specific conditions.

DDR has invested around $20 million of common equity and $300 million of preferred equity shares (with a fixed dividend rate of 8.5%) in this JV. Moreover, this retail real estate investment trust (:REIT) assumed its share of JV debt of $62 million, on a pro rata basis.

Going forward, we believe that the strategic acquisition of assets along with strengthening of the tenant base promises strong growth prospects for DDR. As a matter of fact, the company is currently continuing with its aggressive portfolio transformation initiatives to strengthen its position in top MSAs of the U.S. In relation to that, this month, DDR disclosed that it has made $699 million of transactions in the third quarter of 2014 (read: DDR Closes Deals Worth $699 in Q3, Boosts MSAs Presence). Such deals bode well for DDR’s future growth.

DDR is scheduled to announce third-quarter 2014 results on Oct 30.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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