Developers Diversified Realty Corporation

James | Jun 02, 2009 | Comments 0

Here are my notes and thoughts on a recent quote send by a fellow reader. Developers Diversified Realty Corporation (DDR) I believe is a hold currently long-term looks relatively strong. Right now DDR is operating shopping centers in a weak economy. I and many analysts as well, believe that retailers demand wll increase in time and will help insulate DDR’s portfolio of real estate holdings. Long-term I think DDR will benefit from being one of the largest owners/managers of shopping malls in the U.S. which should generate strong growth numbers. Your risks with it our obviously the slow economy however if you believe long-term normalitly would start to be seen the you should see an increase in shopping center demand for DDR. Debt has to be a concern for DDR yet they should reduce dividends and sell some assets as current the weakness in capital markets makes it hard for them to raise capital. I believe that since it is a trusted retailer and with long-term leases it is insulated from short term economic failures. Hold onto it, might stagger short time by doing nothing but should be a strong long bet. Expect levels of around $6 come year end and around $7-$8 in 2010.

Share and Enjoy: