DOW JONES NEWSWIRES
Developers Diversified Realty Corp. (DDR) said it's ahead of
schedule with boosting liquidity and cutting debt as the
shopping-center developer.
The debt-laden real-estate investment trust has been moving to
reduce its borrowings amid credit-market constraints that have
resulted in difficulties for companies refinancing debt.
When it reported third-quarter results in October, the owner or
manager of 730 retail properties outlined plans to sell stakes in
several properties to institutional investors to pay down debt. But
a plan to sell $890 million of properties to a joint venture has
been in doubt.
DDR got religion after Chief Executive Scott Wolstein fell
victim to his own cash squeeze in which he had to sell nearly half
his stake in the company to satisfy margin calls.
DDR noted Monday that paid off senior notes that matured on Jan.
31, with the next unsecured debt not maturing until May 2010. The
company added it has more than $100 million of assets under
contract or subject to letter of intent for sale.
Meanwhile, DDR sold five former Mervyns locations in California
and Nevada to Kohl's Corp. (KSS). Mervyns went out of business
after filing for bankruptcy protection last year.
DDR shares rose 1.7% premarket to $4.88. The stock has lost some
85% of its value the past five months.
-By Kevin Kingsbury, Dow Jones Newswires; 201-938-2136;
kevin.kingsbury@dowjones.com