BEACHWOOD, Ohio, April 3, 2017 /PRNewswire/ -- DDR Corp. (DDR) today announced the streamlining of its organizational structure in an effort to gain efficiencies, provide appropriate staffing for the Company's current and future operations, facilitate decision-making and lower operating costs. The changes are aimed at further centralizing key operational decision-making and will result in the elimination of 65 existing positions including nine officer level roles. The changes are expected to generate a stabilized annual reduction to recurring General and Administrative expenses of approximately $6 million, excluding a one-time charge to earnings of approximately $7.2 million associated with the transition, of which approximately $2 million will be recognized in the first quarter of 2017 and the balance in the second quarter of 2017. The Company expects that the vast majority of its employees will remain based in the Beachwood, Ohio headquarters location.
In connection with the announced reorganization, DDR also has appointed Conor Fennerty to the role of Senior Vice President, Capital Markets reporting to Matthew Ostrower, Chief Financial Officer. Mr. Fennerty will have responsibility for capital raising activities and management of the Company's planning and analysis functions. Mr. Fennerty most recently served as Vice President, Senior Analyst at BlackRock, Inc., a $5.1 trillion global funds manager.
"The organizational changes we announced today reflect our commitment to optimizing our operating structure based on the Company's current and future portfolio needs and improving our leverage profile. We are grateful for the leadership and execution provided by all our current and former employees during the past several years and believe our streamlined organization and structure will facilitate a more agile and efficient operating platform for the future," said David Lukes, CEO.
About DDR Corp.
DDR is an owner and manager of 319 value-oriented shopping centers representing 106 million square feet in 35 states and Puerto Rico. The Company owns a high-quality portfolio of open-air shopping centers in major metropolitan areas that provide a highly compelling shopping experience and merchandise mix for retail partners and consumers. The Company actively manages its assets with a focus on creating long-term shareholder value. DDR is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol DDR. Additional information about the Company is available at www.ddr.com.
DDR Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company's expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, local conditions such as supply of space or a reduction in demand for real estate in the area; competition from other available space; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; redevelopment and construction activities may not achieve a desired return on investment; our ability to buy or sell assets on commercially reasonable terms; our ability to complete acquisitions or dispositions of assets under contract; our ability to secure equity or debt financing on commercially acceptable terms or at all; our ability to enter into definitive agreements with regard to our financing and joint venture arrangements or our failure to satisfy conditions to the completion of these arrangements; the success of our deleveraging strategy and any impact or results from the Company's portfolio transition or any change in strategy. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company's Form 10-K for the year ended December 31, 2016. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
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