Retail property company

Developers Diversified

(DDR)

sold six retail properties to the company's joint venture with Macquarie DDR Trust, an Australian listed property trust sponsored by Macquarie Bank.

The aggregate purchase price of the 1.5 million-square-foot portfolio was $122.7 million, which equates to a 6.6% cap rate.

The sale generated initial merchant build gains of around $33 million, which will be included in Developers Diversified's second-quarter funds from operations. These merchant build gains were anticipated in the company's 2006 FFO guidance of $3.36 a share to $3.46 a share. Based on the timing of these gains, the Cleveland-based company anticipates its second quarter FFO will significantly exceed analysts' consensus estimates of 91 cents a share.

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