DDR Corp has designated 25 retail centers and five plots of land to sell over the next two years as it seeks to shed smaller properties and focus on high-quality assets, said President and CEO David Oakes. "[T]he most challenging part of selling true non-institutional-quality real estate is overwhelmingly finished at this point. ... I think that the next steps of it going forward represent something much closer to a portfolio-management exercise of looking at the entirety of what we own and saying what represents something that has either lower growth or higher risk over time."
Portfolio management is among the CFO's toughest roles, but it's a necessary one. Companies that frequently allocate capital generate a higher return, according to a study. As the economy gains momentum and shareholders become more active in management, CFOs must step up their portfolio-management process, Vincent Ryan writes.
Portfolio Pathways has rolled out a Web-based portfolio-management and reporting software that costs about $300 a month and includes the daily download and reconciliation of data from custodians. More sophisticated RIA firms might want a higher-end product, but many advisers might be interested in the application's functionality and value.
Unibail is purchasing several large shopping malls from Simon Property Group and Ivanhoe Cambridge for $966 million. It also recently sold five malls for $317 million. The sales transaction was likely done for portfolio-management purposes, analysts say. "These shopping centers probably didn't meet an economic return target above their cost of capital," said Collins Stewart analyst Aaron Guy.
Schwab Institutional has reached an agreement with Morningstar Investment Services that allows Schwab to have portfolio-management services available on an enhanced managed-account-services platform. Financial advisers doing business with Schwab Institutional will be able to access Morningstar Investment Services' line of actively managed mutual fund, stock and exchange-traded fund portfolios.