Developers Diversified Realty Corporation (DDR), a leading real estate investment trust (REIT), is planning to raise $400 million through Term Asset-backed Securities Loan Facility (TALF program). The TALF was created by the Fed to support the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans and loans guaranteed by the Small Business Administration.  The deal is being eagerly anticipated by the $700 billion market for commercial mortgage backed securities (CMBS), which took a severe beating in 2008 from the economic downturn. With the deal, Developers Diversified would be able to raise significant capital to increase its liquidity. By the end of the third quarter of 2009, the company had over $5 billion of consolidated debt.  Developers Diversified specializes in the acquisition, ownership, development, redevelopment, leasing and management of shopping centers and business centers. The company owns and manages 670 retail operating ...

Amid positive signals emanating from the uptick in housing prices and an improving outlook for consumer spending, the housing sector is gradually stabilizing. Both new and existing home sales have increased during the last four consecutive months and are now 32% and 17% above their recent lows, respectively. Single-family housing starts have also risen 37% from their low point, and inventories of homes-for-sale have fallen sharply.

Equity REITs rebounded nicely in the third quarter, recording total returns of 33% (total return FTSE NAREIT Index) vs. a 15% gain each for the S&P and the Dow. The strong third quarter returns marked the second consecutive record-setting performance of equity REITs after a dismal performance in the first quarter of 2009.

In what has been a volatile year, equity REITs gained approximately 29% (total return FTSE NAREIT Index) in the second quarter after falling 32% in the first quarter. So far in October, equity

...

Amid positive signals emanating from the uptick in housing prices and an improving outlook for consumer spending, the housing sector is gradually stabilizing. Both new and existing home sales have increased during the last four consecutive months and are now 32% and 17% above their recent lows, respectively. Single-family housing starts have also risen 37% from their low point, and inventories of homes-for-sale have fallen sharply.

Equity REITs rebounded nicely in the third quarter, recording total returns of 33% (total return FTSE NAREIT Index) vs. a 15% gain each for the S&P and the Dow. The strong third quarter returns marked the second consecutive record-setting performance of equity REITs after a dismal performance in the first quarter of 2009.

In what has been a volatile year, equity REITs gained approximately 29% (total return FTSE NAREIT Index) in the second quarter after falling 32% in the first quarter. So far in October, equity

...

Amid positive signals emanating from the uptick in housing prices and an improving outlook for consumer spending, the housing sector is gradually stabilizing. Both new and existing home sales have increased during the last four consecutive months and are now 32% and 17% above their recent lows, respectively. Single-family housing starts have also risen 37% from their low point, and inventories of homes-for-sale have fallen sharply. Equity REITs rebounded nicely in the third quarter, recording total returns of 33% (total return FTSE NAREIT Index) vs. a 15% gain each for the S&P and the Dow. The strong third quarter returns marked the second consecutive record-setting performance of equity REITs after a dismal performance in the first quarter of 2009. In what has been a volatile year, equity REITs gained approximately 29% (total return FTSE NAREIT Index) in the second quarter after falling 32% in the first quarter. ...

Developers Diversified Realty Corporation (DDR), a real estate investment trust (REIT), has recently offered $300 million of senior unsecured notes scheduled to mature in 2016, at a price of 99.42% with a yield to maturity of 9.75%.  Developers Diversified expects to raise net proceeds of approximately $295 million, after deducting underwriting discounts and other expenses related to the offering. The company intends to utilize the cash to repay short-term debt and to reduce outstanding debt under its revolving credit facility.  Developers Diversified had earlier decided to sell 30 million shares and issue additional warrants to purchase up to 10 million shares to the Otto family, a shopping center developer in Germany. Although both debt and equity financing will provide the much-needed cash, they could potentially leverage the balance sheet and dilute earnings.  Headquartered in Beachwood, Ohio, Developers Diversified acquires, owns, develops, leases, and manages shopping ...

Developers Diversified Realty Corporation (DDR), a leading real estate investment trust (REIT), has recently appointed a new Director on its board following the resignation of Dean S. Adler.  Adler has resigned from the board of the company citing personal reasons. In his place, Developers Diversified has appointed James C. Boland. With his appointment, the company has brought on board key management experience from diverse sectors to bring a fresh perspective and dynamism to the company.  Boland has extensive knowledge in accounting and was associated with Ernst & Young – a leading global professional services firm – for 34 years. He also served as a member of the firm’s management committee from 1988 to 1997. Subsequently, he served as the President, CEO, and Vice Chairman of Cavaliers Operating Company, which owns and operates the Cleveland Cavaliers professional basketball team and its home court, Quicken Loans Arena. ...

Developers Diversified Realty Corporation (DDR), a leading real estate investment trust (REIT), reported relatively weak second quarter results, with FFO (fund from operations) of ($166.5) million or ($1.15) per share compared to $95.9 million or $0.79 per share in the year-earlier quarter. 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.  The decrease in year-over-year FFO was due to the non-recurring charges of $240.0 million primarily related to the impairment of assets. Excluding one-time charges, FFO in the second quarter of 2009 was $0.51 per share.  Despite challenging market conditions, Developers Diversified executed strong leasing activities during the quarter. The company signed 147 new leases and 259 renewal leases spanning over 0.9 million square feet and 2.2 million square feet, respectively. The core portfolio of the company was 90.7% leased ...

According to a report published in The Wall Street Journal, Developers Diversified Realty Corporation (DDR), a leading real estate investment trust (REIT), is planning to raise $600 million through two bond sales.

The bonds are collateralized by two pools of assets valued at $800 million each. The asset pool consists of about 60 shopping centers across the country. The properties generate a stable cash flow as they are occupied by discount retailers that tend to attract more customers during a recession.

On completion, the deals would be the first noteworthy CMBS (commercial mortgage backed securities) offerings to take advantage of the Term Asset-Backed Securities Loan Facility (TALF program). The TALF was created by the Fed to support the issuance of asset-backed securities (ABS) collateralized by student loans, auto loans, credit card loans, and loans guaranteed by the Small Business Administration.

With the bond sales, DDR would be able to raise significant capital

...