BEACHWOOD, Ohio (AP) — Shopping center owner DDR is planning to leave Brazil, signing a letter of intent to sell its 50 percent stake in Sonae Sierra Brazil BV Sarl for $343.6 million. The deal includes 10 regional malls totaling 4.6 million square feet.
DDR Corp. is selling its ownership interest to Alexander Otto, its biggest individual shareholder with an approximately 11.2 percent stake, and his affiliates.
Beachwood, Ohio-based DDR plans to use proceeds from the sale for general corporate purposes such as acquisitions and redevelopments in major U.S. markets.
DDR said Monday that due to the timing difference between the transaction and the reinvestment of proceeds, along with a speed up in its plan for U.S. sales, it is lowering its full-year outlook for operating funds from operations to $1.14 to $1.18 per share from $1.17 to $1.21 per share.
Funds from operations, or FFO, are considered key to measuring the financial performance of real estate investment trusts. FFO adds items such as amortization and depreciation back to net income.
Analysts polled by FactSet expect FFO of $1.20 per share.
The deal is expected to close in the next 30 days.
DDR currently owns and manages 416 shopping centers in 39 states, Puerto Rico and Brazil.