Developers Diversified Realty slightly reduces guidance for 2009 results
8:36 am, January 13, 2010
Developers Diversified Realty Corp. (NYSE: DDR) has reduced slightly its guidance for funds from operations for all of 2009. The real estate investment trust that specializes in shopping centers said it now expects to report 2009 operating funds from operations in a range of $1.83 to $1.85 per diluted share. Last September, Developers Diversified had put that range at $1.90 to $2.00 a share. The REIT said the reduction in guidance is due in part to a loss on the sale of land and higher interest costs in the fourth quarter. Including certain non-operating charges, Developers Diversified expects to report a loss on funds from operations for all of 2009 in a range of 89 cents to 92 cents. The company said the charges mainly relate to non-cash losses on equity derivative instruments and impairment charges that are partly offset by gains on the purchase of debt. Developers Diversified noted that it has reduced its consolidated debt to $5.2 billion, down $700 million from the end of 2008.
For all of 2010, Developers Diversified expects funds from operations in a range of $1.05 to $1.15 a share. Among other things, the estimate assumes that the company will pay a common stock dividend “at the minimum level required to maintain REIT status,” Developers Diversified said.
In commenting on the numbers, Developers Diversified president and CEO Daniel B. Hurwitz said in a statement, "While we are pleased with what was accomplished in 2009, we acknowledge that there is much more progress to be made. In 2010, we will continue to focus on aggressively leasing vacant space, improving the quality of our portfolio, prudently reducing leverage, and further enhancing liquidity as we continue positioning our Company for recovery and growth."
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