Developers Diversified Realty Corporation Reports Strong Second Quarter Results

Strategic Insights -

Developers Diversified Realty Corporation, a self-administered and self-managed Real Estate Investment Trust, has announced its second quarter financial results, which exceeded expectations. The company's Funds From Operations (FFO) grew by 32.3% to $12.3 million, or $0.65 per share, a significant increase from the same period last year. This growth was driven by the company's efforts in leasing, expansion, acquisition, and development, as well as its successful completion of a common share offering and the refinancing of its debt.

Key Takeaways:

  • FFO for the second quarter of 1995 grew by 32.3% to $12.3 million, or $0.65 per share, a significant increase from the same period last year.
  • Income before extraordinary item for the second quarter of 1995 increased by 35% to $7.1 million, or $0.38 per share.
  • Net income for the second quarter of 1995 was $3.8 million, or $0.20 per share, compared to $5.3 million, or $0.34 per share, for the same period in 1994.
  • The company has successfully completed the acquisition of six shopping centers, comprising approximately 1.4 million square feet of total GLA, for an aggregate purchase price of $46.5 million.
  • Developments: The company has completed a 100,000 square foot shopping center development in Xenia, Ohio, and announced the opening of multiple tenants at a newly developed 500,000 square foot power center in Erie, Pennsylvania.
  • Financings: The company has successfully completed a 2,875,000 common share offering, received net proceeds of $76.5 million, and entered into a $150 million unsecured revolving credit facility replacing an existing secured facility.
  • The company's self-administered and self-managed REIT business model has allowed it to maintain an occupancy rate of approximately 96.7% at June 30, 1995.

Statistics:

  • FFO grew by 32.3% to $12.3 million, or $0.65 per share.
  • Income before extraordinary item increased by 35% to $7.1 million, or $0.38 per share.
  • Net income decreased to $3.8 million, or $0.20 per share, from $5.3 million, or $0.34 per share, in the same period last year.
  • Aggregate Company owned gross leasable area approximates 14.6 million square feet.
  • Overall occupancy rate was approximately 96.7% at June 30, 1995.

Sources:

  • Business Wire, August 9, 1995.
  • Developers Diversified Realty Corporation, Cleveland, Ohio.
  • Scott A. Wolstein, President and CEO.