DOW JONES NEWSWIRES 
 

Developers Diversified Realty (DDR) declared a first-quarter dividend of 20 cents, but the debt-laden shopping center owner will make no more than 10% of the payment in cash.

The nation's largest shopping center owner has been struggling under the weight of acquisitions, and in recent months has been looking to pare down its borrowings.

In October, the company, which did not pay a fourth-quarter dividend, estimated 2009 dividend payments would total $1.50. The changes at the time were expected to result in additional free cash flow of about $230 million.

Developers Diversified said shareholders can elect to receive their dividend in all cash or all common shares, in accordance with the Internal Revenue Service's guidance. However, the company said that if more than 10% cash is elected by all shareholders in the aggregate, then the cash portion will be prorated.

Last week, the company reported it swung to a steep fourth-quarter loss on charges related to investments, write-downs and abandoned projects. Real-estate investment trusts have been slammed by the global recession as the housing market continues to drop because of tight credit, high foreclosure rates and rising unemployment.

Shares were even in after-hours trading at $2.34, after closing down 21% amid a broad decline.

-By John Kell, Dow Jones Newswires; 201-938-5285; john.kell@dowjones.com