Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, June 15, 2018

Article Excerpt

DDR CORP., $17.24, symbol DDR on New York, is a real estate investment trust (REIT) that owns 258 value-oriented shopping centres. Altogether, they occupy 89 million square feet in 32 states and Puerto Rico. The REIT announced in December 2017 that it would spinoff 49 of its shopping centres to create an independent publicly traded company. The spinoff will be called Retail Value Inc., symbol RVI on New York, and include 12 of DDR’s properties in Puerto Rico. The company is spinning off these assets to focus on its properties that have development potential for more stores, apartments or office space. After the spinoff, DDR will own and manage 209 shopping centres in the U.S. The spinoff is expected to take place on July 1, 2018. Existing shareholders will receive one RVI share for every ten DDR shares. In the quarter ended March 31, 2018, overall revenues declined 10.4%, to $207.0 million from $231.0 million a year earlier. The drop reflects the company’s sale…