Jefferies Reiterates Hold Rating on Developers Diversified Realty

After “commendable efforts to delever its balance sheet over the past two years, the story at Developers Diversified Realty (NYSE: DDR) has shifted to more of an offensive mindset with a growing acquisition/development pipeline,” Jefferies reports.

“That said, we reiterate our Hold rating as the risk of rising interest rates is a concern given 1) ~14% of DDR's total debt is variable, and 2) ~$1.1B in debt due in 2011 will need to be addressed in a potentially higher interest rate environment,” Jefferies writes.

Developers Diversified Realty closed Wednesday at $14.46.