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DDR Corp. CEO Daniel Hurwitz on retail sales, consumerism and if he will ever leave Cleveland.
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The Cleveland based REIT real estate investment trust DDR which focuses on value oriented shopping malls Dan Horowitz is the president and CEO this publicly traded -- With a four billion -- market cap the stock up 39%.
Year over year business must be good.
Business is very good and retail sales are very good.
The American consumer has made it very clear choice they want value they want convenience.
And attendance we do the most business -- -- the tenants.
But -- shopping centers offer the value and convenience -- -- consumers -- important that you think the consumer is healthier than here she was a year ago.
I think the consumers not only healthier the more optimistic.
I think they feel better about where they are in their jobs I think they feel better about their wages.
I think they feel worse about the fact that we're -- an election cycle so you have lots of people telling you particularly here in Ohio how bad things are you can't watch TV without seeing the negative ads.
But that doesn't seem to impact retail sales that doesn't seem to impact how people feel about their families.
And things right now are very positive give a 120 million square feet 450 properties in the United States Puerto Rico Brazil.
Which parts of the United States are looking stronger.
Well you know the our business at the end of the day it's really a local business so you don't want to certain markets like for example -- Phoenix with people criticize Phoenix for years and years now.
Anti about how depressed it is and we've always on extremely -- Phoenix -- we've on the right properties in Phoenix.
So our businesses is a local business retail is a local business and really depends on how you merchandise you senator.
So you can be in some tough markets but you have target you have Bed, Bath & Beyond and you have -- you have Wal-Mart you have polls and you have Home Depot you gonna do well.
There's a mall near where I live -- -- New Jersey there's a target there is a Bed, Bath & Beyond but Barnes & Noble.
Couldn't stay there they couldn't handle what they have to back -- it took awhile until Michael's.
Craft store open but I don't know -- not resigning in your world is at the JC Penney's of the world is that the -- We've had very few tenants not re signed.
And not me up and that is directly related to the quality of the portfolio we -- having problems.
With the renewing your attendance is where you have a low level of quality.
In your portfolio on the -- can use their leverage to -- -- to.
Let me pay less rent probably about Bed, Bath & Beyond that thinking of the big powers on cars but it fox -- about power centers where we've where -- -- the tenants are making money they're not -- They're not leaving because nothing new is being built.
There's no place else for them to go.
So the supply demand metric is completely in the wind was favour right now because we don't have a lot of construction going -- that goes to the -- issue so what somebody moves out argue having any trouble filling that space.
We are not.
We've been very very fortunate because again the tenants that we do most of our business -- the the hottest tenants.
Right now in in the country and they're looking to grow -- -- having a hard time finding.
Locations to satisfy -- open to -- because again nothing new is being built so as soon as we have an opening lessons we have a vacancy we have a lot of success back -- pretty quick.
But you're -- Connecticut -- You've been here now fourteen years.
Run this business from Cleveland which ever think of taking it and move.
Moving -- Ohio's been that I've been kind of a down about state although it's coming back now it's unemployment rate is lower than the national average.
No this is our home we love Cleveland this is my home my -- Cleveland even I'm from Connecticut.
This is a town that is vastly underrated and let's -- -- unless of course you lived in other cities in the United States and then you realize -- true.
-- you -- short governor kids that told us I think just the last hour is that when the threat when the -- the opinion of the world catches up.
With the with Cleveland and the reputation catches up with what it really as well we're still waiting to be the hope is we are -- we are still we're waiting to -- or no rush either you know we have incredible culture we have incredible schools we have incredible medical care we have incredible recreational facilities.
Great housing.
And just a great quality of life and and and part of that is that were a bit of -- hidden gem and it's okay well GDR if you haven't heard of that is somewhat but -- -- that would have been fair portfolio for about a year ago -- -- 39%.
Here for here.
Up 24%.
Year to date as they pay off debt.
And move forward to -- Dan thank you this argument Indians and brown sand now I am in the -- in opting not you know yankees I don't love the giants -- I.
I still of the giant RA -- you're allowed.
But gotta be brown stepped down her -- the CEO of the.
