Exhibit 99.2

 

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DDR Corp.

Table of Contents

 

Section		Page
Earnings Release & Financial Statements
Press Release			1-9
Joint Ventures
Summary			10
Income Statement			11
Balance Sheet			12
Investments
Transactions			13
Developments			14
Asset Summary
Portfolio Summary			15
Portfolio Detail			16
Leasing Summary			17
Top 50 Tenants			18
Balance Sheet Summary
Capital Structure			19
Debt / EBITDA			20
Debt Summary			21
Consolidated Debt Detail			22-24
Unconsolidated Joint Venture Debt Detail			25-26
Analyst Information and Reporting Policies
Analyst Information			27
Notable Policies			28-29

Property list available online at http://www.ddr.com

DDR considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectations for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause the results of the Company to differ materially from those indicated by such forward-looking statements, including among other factors, local conditions such as oversupply of space or a reduction in demand for real estate in the area, competition from other available space, dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; constructing properties or expansions that produce a desired yield on investment; ability to sell assets on commercially reasonable terms; ability to secure equity or debt financing on commercially acceptable terms or at all; or ability to enter into definitive agreements with regard to our financing and joint venture arrangements or our failure to satisfy conditions to the completion of these arrangements; and the finalization of the financial statements for the three months ended March 31, 2014. For additional factors that could cause the results of the Company to differ materially from these indicated in the forward-looking statements, please refer to the Company’s Form 10-K for the year ended December 31, 2013, as amended. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

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For immediate release:

 

Media Contact:		Investor Contact:
Matt Schuler		Matt Lougee
mschuler@ddr.com		mlougee@ddr.com
216.755.5500		216.755.5500

DDR REPORTS OPERATING FFO PER DILUTED SHARE OF $0.28

FOR THE QUARTER ENDED MARCH 31, 2014

BEACHWOOD, OHIO, May 6, 2014 – DDR Corp. (NYSE: DDR) today announced operating results for the first quarter ended March 31, 2014.

Significant First Quarter Activity:

 

•

Generated Operating FFO of $0.28 per diluted share, 3.7% greater than the first quarter of 2013

 

•

Executed 378 new leases and renewals for 3.1 million square feet, the highest square footage volume in 19 quarters

 

•

Increased the U.S. portfolio leased rate by 10 basis points to 95.1% at March 31, 2014, from 95.0% at December 31, 2013 and by 90 basis points from 94.2% at March 31, 2013

 

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Generated positive new leasing spreads of 15.1% at 100% ownership and 20.4% on a pro rata basis, and positive renewal leasing spreads of 6.7% at 100% ownership and 7.6% on a pro rata basis

 

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Generated same store net operating income growth of 3.1% at 100% ownership and 3.2% on a pro rata basis compared to the prior year

 

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Sold $198 million of non-prime assets; DDR’s pro rata gross proceeds were $142 million

 

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Announced the sale of 50% ownership interest in Sonae Sierra Brazil BV Sarl for gross proceeds of $344 million and closed subsequent to quarter end

“We are extremely pleased to report consistently strong operating results with momentum accelerating during the first quarter. We are also pleased to close on the sale of our investment in Brazil and encouraged by the prospects of reallocating the capital into high-quality prime power centers in the U.S. The simplification and portfolio quality enhancement strategy continues,” commented DDR’s Chief Executive Officer Daniel B. Hurwitz.

Financial Highlights

 

•

First quarter operating funds from operations attributable to common shareholders (“Operating FFO”) increased to $100.7 million, or $0.28 per diluted share, which compares to $86.1 million, or $0.27 per diluted share, for the prior-year comparable period. The increase in Operating FFO primarily is due to organic growth as well as prime shopping center acquisitions, partially offset by non-prime asset dispositions.

 

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First quarter net loss attributable to common shareholders was $23.2 million, or $0.07 per diluted share, which compares to net loss of $0.7 million, or $0.00 per diluted share, for the prior-year comparable period. The change in net loss attributable to common shareholders primarily is due to higher impairment charges partially offset by the impact of organic growth and net acquisition activity.

Significant First Quarter Operating Activity

 

•

New leases totaling 0.8 million square feet at spreads of 15.1% at 100% ownership and 20.4% at pro rata share

 

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Renewal leases totaling 2.3 million square feet at spreads of 6.7% at 100% ownership and 7.6% at pro rata share

 

•

Increase in the total U.S. portfolio average annualized base rent per occupied square foot to $13.44 as of March 31, 2014 as compared to $12.90 at March 31, 2013

Significant First Quarter Transactional Activity

 

•

Sold nine consolidated operating shopping centers totaling 1.3 million square feet and one consolidated non-income producing asset. Gross proceeds were $132.3 million. A net gain of $9.6 million was recorded related to these sales.

 

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Sold four unconsolidated operating shopping centers totaling 0.4 million square feet for $65.7 million, of which the Company’s pro rata share was $13.1 million. A net gain of $21.5 million was recorded related to these sales, of which the Company’s pro rata share was $5.4 million.

 

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Announced the sale of its 50% ownership interest in Sonae Sierra Brazil BV Sarl (“SSB BV Sarl”) for $343.6 million which closed on April 28, 2014. DDR’s interest in SSB BV Sarl represents DDR’s entire investment in Brazil.

 

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2014 Guidance

 

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There has been no change in Operating FFO per share guidance since the last update provided on March 10, 2014. The Company continues to estimate a range of $1.14 to $1.18 for 2014 Operating FFO per diluted share. The major assumptions include:

 

¡

same store NOI growth of 2.5% to 3.5% excluding redevelopment activity

 

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increase in the 2013 year-end leased rate by 75 basis points

 

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annual common stock dividend of $0.62 per share

Non-GAAP Disclosures

FFO is a supplemental non-GAAP financial measurement used as a standard in the real estate industry and a widely accepted measure of real estate investment trust (“REIT”) performance. Management believes that FFO and Operating FFO provide additional indicators of the financial performance of a REIT. The Company also believes that FFO and Operating FFO more appropriately measure the core operations of the Company and provide benchmarks to its peer group. Neither FFO nor Operating FFO represents cash generated from operating activities in accordance with generally accepted accounting principles (“GAAP”), is necessarily indicative of cash available to fund cash needs and should be considered as an alternative to net income computed in accordance with GAAP as an indicator of the Company’s operating performance or as an alternative to cash flow as a measure of liquidity.

FFO is defined and calculated by the Company as net income, adjusted to exclude: (i) preferred share dividends, (ii) gains and losses from disposition of depreciable real estate property, which are presented net of taxes, (iii) impairment charges on depreciable real estate property and related investments, (iv)extraordinary items and (v) certain non-cash items. These non-cash items principally include real property depreciation and amortization of intangibles, equity income from joint ventures and equity income from non-controlling interests and the Company’s proportionate share of FFO from its unconsolidated joint ventures and non-controlling interests, determined on a consistent basis. The Company calculates Operating FFO by excluding the non-operating charges and gains described below. The Company computes FFO in accordance with the NAREIT definition. Other real estate companies may calculate FFO and Operating FFO in a different manner. Operating FFO is useful to investors as the Company removes these charges and gains to analyze the results of its operations and assess performance of the core operating real estate portfolio. A reconciliation of net income (loss) to FFO and Operating FFO is presented herein.

Safe Harbor

DDR Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, local conditions such as oversupply of space or a reduction in demand for real estate in the area; competition from other available space; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; constructing properties or expansions that produce a desired yield on investment; our ability to buy or sell assets on commercially reasonable terms; our ability to complete acquisitions or dispositions of assets under contract; our ability to secure equity or debt financing on commercially acceptable terms or at all; our ability to enter into definitive agreements with regard to our financing and joint venture arrangements or our failure to satisfy conditions to the completion of these arrangements; the success of our capital recycling strategy; and the finalization of the financial statements for the three-month period ended March 31, 2014. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company’s Form 10-K for the year ended December 31, 2013, as amended. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

 

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About DDR Corp.

DDR is an owner and manager of 396 value-oriented shopping centers representing 108 million square feet in 39 states and Puerto Rico. The Company’s assets are concentrated in high barrier-to-entry markets with stable populations and high growth potential and its portfolio is actively managed to create long-term shareholder value. DDR is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol DDR. Additional information about the Company is available at www.ddr.com, as well as on Twitter, LinkedIn and Facebook.

Conference Call and Supplemental Information

A copy of the Company’s Supplemental package is available upon request to Brooke Vanek at the Company’s corporate office, 3300 Enterprise Parkway, Beachwood, Ohio 44122 or at www.ddr.com.

The Company will hold its quarterly conference call tomorrow, May 7, 2014, at 10:00 a.m. Eastern Time. To participate, please dial 877.703.6109 (domestic), or 857.244.7308 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the passcode: 80437826. Access to the live call and replay will also be available through the Company’s website. The replay will be available through May 14, 2014.

 

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DDR Corp.

Income Statement: Consolidated Interests

 

$ in thousands, except per share		Three Months Ended
		1Q14				1Q13
Revenues:
Minimum rents (1)		$	175,807			$	136,715
Percentage rent			1,674				1,690
Recoveries			60,304				44,942
Ancillary income			6,342				5,615
Other revenues (2)			1,896				624
			246,023				189,586
Expenses (3):
Operating and maintenance			38,201				31,718
Real estate taxes			35,742				26,343
			73,943				58,061
Net operating income			172,080				131,525
Other income (expense):
Fee income			8,223				10,721
Interest income			3,127				7,878
Interest expense (4)			(62,881	)			(52,444	)
Depreciation and amortization			(108,762	)			(65,911	)
General and administrative (5)			(20,253	)			(19,760	)
Other income (expense), net (6)			(4,613	)			(2,900	)
Impairment charges (7)			(10,841	)			0
(Loss) income before earnings from equity method investments and other items			(23,920	)			9,109
Equity in net income of joint ventures			5,490				2,954
Impairment of joint venture investments			(9,100	)			0
Income (loss) from discontinued operations (8)			10,930				(5,151	)
Tax expense			(688	)			(361	)
Loss on disposition of real estate, net of tax			(1,090	)			(57	)
Net (loss) income			(18,378	)			6,494
Income (loss) attributable to non-controlling interests			1,738				(191	)
Net (loss) income attributable to DDR			(16,640	)			6,303
Preferred dividends			(6,608	)			(7,030	)
Net loss attributable to Common Shareholders			(23,248	)			(727	)
FFO:
Net loss attributable to common shareholders			(23,248	)			(727	)
Depreciation and amortization of real estate investments			101,489				67,016
Equity in net income of joint ventures			(5,490	)			(2,954	)
Joint ventures’ FFO			8,743				12,226
Non-controlling interests (OP units)			62				54
Impairment of depreciable real estate			10,390				7,679
Gain on disposition of depreciable real estate, net			(6,134	)			(778	)
FFO attributable to Common Shareholders			85,812				82,516
Non-operating items, net (9)			14,898				3,536
Operating FFO		$	100,710			$	86,052
FFO per share – Diluted (10)		$	0.24			$	0.26
Operating FFO per share – Diluted (10)		$	0.28			$	0.27

 

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DDR Corp.

Balance Sheet: Consolidated Interests

 

$ in thousands		At Quarter End
		1Q14				4Q13
Assets:
Land		$	2,173,601			$	2,209,970
Buildings			6,862,392				6,949,440
Fixtures and tenant improvements			597,916				599,221
			9,633,909				9,758,631
Less: Accumulated depreciation			(1,854,710	)			(1,823,199	)
			7,779,199				7,935,432
Land held for development and construction in progress			463,513				452,980
Real estate held for sale, net			0				12,670
Real estate, net			8,242,712				8,401,082
Investments in and advances to joint ventures			441,265				448,008
Cash			163,835				86,664
Restricted cash			30,137				33,476
Notes receivable, net			78,945				78,338
Receivables, including straight-line rent, net			118,335				129,513
Other assets, net (11)			488,957				515,992
Total Assets			9,564,186				9,693,073
Liabilities and Equity:
Revolving credit facilities			28,318				29,133
Unsecured debt			2,757,007				2,754,120
Unsecured term loan			350,000				350,000
Mortgage and other secured debt			2,108,591				2,161,421
			5,243,916				5,294,674
Dividends payable			62,312				55,107
Other liabilities (12)			408,017				415,413
Total Liabilities			5,714,245				5,765,194
Preferred shares			405,000				405,000
Common shares			35,947				35,938
Paid-in-capital			5,418,437				5,417,363
Accumulated distributions in excess of net income			(1,994,590	)			(1,915,638	)
Deferred compensation obligation			16,664				16,702
Accumulated other comprehensive income			(31,036	)			(36,493	)
Less: Common shares in treasury at cost			(17,231	)			(18,211	)
Non-controlling interests			16,750				23,218
Total Equity			3,849,941				3,927,879
Total Liabilities and Equity		$	9,564,186			$	9,693,073

 

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DDR Corp.

Income Statement: Unconsolidated Interests at 100%

 

$ in thousands		Three Months Ended
		1Q14				1Q13
Revenues:
Minimum rents		$	108,031			$	128,475
Percentage rent			409				624
Recoveries			24,836				31,842
Other revenues			15,790				16,514
			149,066				177,455
Expenses:
Operating and maintenance			41,880				40,083
Real estate taxes			14,674				20,723
			56,554				60,806
Net operating income			92,512				116,649
Other income (expense):
Interest expense			(54,149	)			(57,885	)
Depreciation and amortization			(45,716	)			(62,218	)
Tax expense			(4,140	)			(6,615	)
			(104,005	)			(126,718	)
Loss from continuing operations			(11,493	)			(10,069	)
Loss from discontinued operations			(758	)			(2,180	)
Gain (loss) on disposition of discontinued operations, net			21,473				(5,537	)
Gain on disposition of real estate, net			0				479
Net income (loss)			9,222				(17,307	)
Loss attributable to non-controlling interests			(1,488	)			(7,219	)
Net income (loss) attributable to unconsolidated joint ventures			7,734				(24,526	)
Depreciation and amortization of real estate investments			44,175				64,774
(Gain) loss on disposition of depreciable real estate, net			(21,473	)			5,058
FFO			30,436				45,306
FFO at DDR’s ownership interest			8,743				12,226
Operating FFO at DDR’s ownership interests			9,095				12,442
Net income at DDR’s ownership interests			4,731				3,049
Basis differences			759				(95	)
Equity in net income of joint ventures		$	5,490			$	2,954

 

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DDR Corp.

Balance Sheet: Unconsolidated Interests at 100%

 

$ in thousands		At Quarter End
		1Q14				4Q13
Assets:
Land		$	1,269,063			$	1,275,232
Buildings			3,984,505				3,940,806
Fixtures and tenant improvements			277,942				266,851
			5,531,510				5,482,889
Less: Accumulated depreciation			(872,565	)			(839,867	)
			4,658,945				4,643,022
Land held for development and construction in progress			79,550				116,088
Real estate, net			4,738,495				4,759,110
Cash and restricted cash			276,806				282,866
Receivables, including straight-line rent, net			102,830				101,003
Other assets, net			199,100				196,615
Total Assets			5,317,231				5,339,594
Liabilities and Equity:
Mortgage debt			3,259,136				3,282,643
Notes and accrued interest payable to DDR			133,534				127,679
Other liabilities			243,930				245,368
Total Liabilities			3,636,600				3,655,690
Redeemable preferred equity			72,096				71,771
Accumulated equity			1,608,535				1,612,133
Total Liabilities and Equity		$	5,317,231			$	5,339,594

 

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DDR Corp.

Financial Statements: Footnotes

 

$ in millions, except per share				Three Months Ended
Includes discontinued operations				1Q14				1Q13
(1)		Minimum rents:
		Straight-line rent, net		$	1.0			$	1.4
		Below-market rent, net			(0.1	)			(0.1	)
		Ground lease revenue			7.9				5.8
(2)		Other revenues:
		Lease termination fees			1.3				0.5
		Other miscellaneous			0.6				0.1
(3)		Operating expenses:
		Recoverable expenses (excludes discontinued operations)			(66.1	)			(50.1	)
		Non-recoverable expenses (excludes discontinued operations)			(7.8	)			(8.0	)
		Straight-line ground rent expense			(0.3	)			(0.3	)
		Expensed costs of suspended developments			(0.4	)			(0.6	)
(4)		Non-cash interest expense:
		Convertible debt accretion			(2.8	)			(2.6	)
		Debt fair value amortization			4.2				0.7
		Loan cost amortization			(3.2	)			(3.0	)
		Interest expense (capitalized)			1.8				2.7
(5)		General and administrative expenses:
		Stock compensation expenses			(1.9	)			(1.8	)
		Internal leasing expenses			(1.9	)			(2.1	)
		Construction administrative costs (capitalized)			2.4				2.2
(6)		Other income (expense):
		Transactions and other			(4.4	)			(0.5	)
		Litigation expenses			(0.2	)			(0.3	)
		Debt extinguishment, net			(0.0	)			(2.1	)
(7)		Impairment charges:
		Undeveloped land			(0.4	)			(0.0	)
		Assets marketed for sale			(10.4	)			(0.0	)
(8)		Discontinued operations:
		Revenues			1.7				11.3
		Expenses			(1.5	)			(9.4	)
		Impairments			(0.0	)			(7.7	)
		Gain on disposition of real estate, net			10.7				0.6
		Net income (loss)			10.9				(5.2	)

 

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DDR Corp.

Financial Statements: Footnotes

 

$ in millions, except per share				Three Months Ended
Includes discontinued operations				1Q14				1Q13
(9)		Non-operating items excluded from Operating FFO:
		Non-cash impairment charges – non-depreciable assets		$	9.5			$	0.0
		Transaction, litigation, debt extinguishment costs, other			4.8				3.1
		Joint ventures – currency, other			0.4				0.2
		Loss on sale of non-depreciable real estate, net			0.2				0.2
					14.9				3.5
(10)		Outstanding per share information:
		Common shares (at quarter end)			359.3				317.5
		OP units (at quarter end)			0.4				0.4
		Total shares and units (at quarter end)			359.7				317.9
		Weighted average shares and units – Basic – EPS			357.6				313.2
		Assumed conversion of dilutive securities			0.0				0.7
		Weighted average shares and units – Diluted – EPS			357.6				313.9
		Weighted average shares and units – Basic – FFO & OFFO			359.6				315.9
		Assumed conversion of dilutive securities			0.5				0.7
		Weighted average shares and units – Diluted – FFO & OFFO			360.1				316.6
		Earnings per common share – Basic		$	(0.07	)		$	0.00
		Earnings per common share – Diluted		$	(0.07	)		$	0.00
		FFO per share – Basic		$	0.24			$	0.26
		FFO per share – Diluted		$	0.24			$	0.26
		Operating FFO per share – Diluted		$	0.28			$	0.27
		Common stock dividends declared, per share		$	0.155			$	0.135
(11)		Intangible assets, net (at quarter and year end)			377.9				409.6
(12)		Below-market leases, net (at quarter and year end)			120.9				123.9
Additional financial information:
		Capital expenditures (DDR share):
		Leasing		$	11.4			$	9.7
		Maintenance			1.1				0.6
		Maintenance PSF of owned GLA			0.03				0.02
		Miscellaneous (DDR share):
		Est. value of land owned adjacent to existing centers (at 12/31/13)		$	35.0				—
		Cost basis of headquarters (non-income producing, at quarter end)			42.0				—

 

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DDR Corp.

Unconsolidated Joint Ventures

 

$ in millions																				Gross
				DDR				Operating												Book
		Partner		Own %				Properties				GLA				ABR				Value				Debt
DDRTC Core Retail Fund		TIAA-CREF			15	%			26				8.4			$	102.6			$	1,555.0			$	823.3
DDR Domestic Retail Fund I		Various			20	%			59				8.2				90.4				1,426.8				928.4
DDR-SAU Retail Fund		State of Utah			20	%			27				2.4				25.0				310.8				179.2
BRE DDR Retail Holdings II		Blackstone Real Estate Partners VII			5	%			7				1.7				25.9				298.5				241.5
DDR Markaz II		Kuwait Financial Centre			20	%			11				1.4				15.0				187.2				137.6
BRE DDR Retail Holdings I		Blackstone Real Estate Partners VII			5	%			13				1.9				17.7				172.7				112.1
Other		Various			Various				13				2.0				20.8				245.9				142.1
Coventry II (1)		Coventry II Fund			10%-20	%			23				3.2				29.9				388.9				302.6
Subtotal									179				29.2			$	327.3			$	4,585.8			$	2,866.8
Sonae Sierra Brasil S.A. (2)		Sonae Sierra SGPS SA			33.3	%			10				4.8				114.7				1,025.3				392.3
Total									189				34.0			$	442.0			$	5,611.1			$	3,259.1

 

(1)	Includes 20 assets in which the Company does not have an economic interest.

(2)

DDR has a 50% ownership interest in Sonae Sierra Brazil BV Sarl (“SSB BV Sarl”). SSB BV Sarl’s primary investments include a 66.7% (50.9 million shares) interest in Sonae Sierra Brasil S.A. (“SSB”), a public company trading on the IBOVESPA under “SSBR3”, as well as a 25.9% direct ownership interest in Parque Dom Pedro.

 

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DDR Corp.

Joint Venture Income Statement (1)

 

		At 100%								At DDR Share
		1Q14				1Q13				1Q14
Revenues:
Minimum rents (2)		$	108.0			$	128.5			$	22.4
Percentage rent			0.4				0.6				0.1
Recoveries			24.8				31.8				4.4
Other revenues			15.8				16.5				4.7
			149.0				177.4				31.6
Expenses:
Operating and maintenance			41.9				40.1				8.8
Real estate taxes			14.6				20.7				2.7
			56.5				60.8				11.5
Net operating income (3)			92.5				116.6				20.1
Other income (expense):
Interest expense (4)			(54.2	)			(57.9	)			(10.3	)
Depreciation and amortization			(45.7	)			(62.2	)			(8.2	)
Tax expense			(4.1	)			(6.6	)			(1.4	)
			(104.0	)			(126.7	)			(19.9	)
Loss from continuing operations			(11.5	)			(10.1	)			0.2
Loss from discontinued operations			(0.8	)			(2.2	)			0.0
Gain (loss) on disposition of discontinued operations, net			21.5				(5.5	)			4.2
Gain on disposition of real estate, net			0.0				0.5				0.0
Disproportionate share of income (loss) (3) (5)			0.0				0.0				0.3
Net income (loss)			9.2				(17.3	)			4.7
Loss attributable to non-controlling interests			(1.5	)			(7.2	)			(0.5	)
Net income (loss) attributable to unconsolidated joint ventures			7.7				(24.5	)			4.2
Depreciation and amortization of real estate investments			44.2				64.8				7.5
(Gain) loss on disposition of depreciable real estate, net			(21.5	)			5.0				(4.2	)
Disproportionate share of income (5)			0.0				0.0				1.2
Funds From Operations:		$	30.4			$	45.3			$	8.7
Net income at DDR ownership interests		$	4.7			$	3.0			$	4.7
Basis differences			0.8				(0.1	)			0.8
Equity in net income of joint ventures			5.5				2.9				5.5
FFO at DDR’s ownership interests		$	8.7			$	12.2
Operating FFO at DDR’s ownership interests		$	9.1			$	12.4
(1)       Average exchange rate BRL / USD			2.36				2.01
(2)       Straight-line rent, net			0.9				1.6				0.2
(3)       DDR’s share of NOI including discontinued operations, promoted equity and minority interests											21.3
(4)       Non-cash interest expense			(1.0	)			(1.6	)			(0.1	)
(5)       Adjustments represent the effect of promoted equity and minority interests

 

11

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DDR Corp.

Joint Venture Balance Sheet (1)

 

		At 100%
		1Q14				4Q13
Land		$	1,269.1			$	1,275.2
Buildings			3,984.5				3,940.8
Fixtures and tenant improvements			277.9				266.9
			5,531.5				5,482.9
Less: Accumulated depreciation			(872.6	)			(839.9	)
			4,658.9				4,643.0
Land held for development and construction in progress			79.6				116.1
Real estate, net			4,738.5				4,759.1
Cash and restricted cash (2)			276.8				282.9
Receivables, including straight-line rent, net			102.8				101.0
Other assets, net			199.1				196.6
		$	5,317.2			$	5,339.6
Mortgage debt		$	3,259.1			$	3,282.6
Notes and accrued interest payable to DDR			133.5				127.7
Other liabilities			244.0				245.4
			3,636.6				3,655.7
Redeemable preferred equity			72.1				71.8
Accumulated equity			1,608.5				1,612.1
		$	5,317.2			$	5,339.6
		At DDR Share
		1Q14				4Q13
Land		$	233.4			$	234.1
Buildings			819.6				800.8
Fixtures and tenant improvements			67.5				64.4
			1,120.5				1,099.3
Less: Accumulated depreciation			(181.6	)			(174.5	)
			938.9				924.8
Land held for development and construction in progress			12.9				25.4
Real estate, net			951.8				950.2
Cash and restricted cash			78.3				81.0
Receivables, including straight-line rent, net			27.9				27.5
Other assets, net (3)			34.0				32.3
Disproportionate share of equity (4)			60.7				63.4
		$	1,152.7			$	1,154.4
Mortgage debt (5) (6)		$	627.7			$	630.1
Notes and accrued interest payable to DDR			13.7				13.0
Other liabilities			56.3				57.2
			697.7				700.3
Redeemable preferred equity			72.1				71.8
			769.8				772.1
Accumulated equity			390.7				387.0
Disproportionate share of equity (4)			(7.8	)			(4.7	)
		$	1,152.7			$	1,154.4
(1)       Exchange rate of BRL / USD at period end			2.26				2.35
(2)       Amount attributable to SSB BV Sarl			180.3				191.9
(3)       Intangible assets at DDR share			11.2				12.1
(4)       Adjustments represent promoted equity and minority interests
(5)       Fair market value of debt adjustment at DDR share			0.6				0.6
(6)       Non-recourse mortgage debt with a zero basis at DDR’s share		$	20.1			$	20.9

 

12

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DDR Corp.

Transactions

 

				DDR				Total				At 100%
Date		Location		Own. %				GLA				Price				Debt				Anchors
Acquisitions
No activity
Dispositions
1/14		Norcross, GA			100.0	%			83.4			$	10.0			$	0.0			Ingles
1/14		Tonawanda, NY			100.0	%			121.8				5.0				0.0			Best Fitness
1/14		Camp Hill, PA			100.0	%			62.9				3.0				0.0			Michaels
1/14		Hagerstown, MD			100.0	%			89.9				12.7				0.0			Hobby Lobby
2/14		Longview, TX			20.0	%			40.5				3.9				3.7			—
2/14		Charleston, SC			100.0	%			236.3				16.0				0.0			Home Décor Liquidators, Northern Tool
2/14		Fenton, MO			100.0	%			100.4				10.3				0.0			Aldi
2/14		Riverdale, UT			93.0	%			427.8				54.3				0.0			Best Buy, Gordman’s, Jo-Ann
3/14		Victor, NY			100.0	%			55.9				5.5				0.0			—
3/14		Greensboro, NC			100.0	%			151.4				7.2				0.0			Food Lion, Staples
3/14		San Antonio, TX			20.0	%			230.7				49.7				20.0			Ross Dress for Less, PetSmart, Office Depot
3/14		Goodlettsville, TN			20.0	%			84.4				7.4				6.4			Kroger
3/14		Oxford, MS			20.0	%			71.9				4.7				0.0			Kroger
		Land sales			100.0	%			0.0				8.3				0.0
									1,757.3			$	198.0			$	30.1

 

13

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DDR Corp.

Development

 

$ in millions, GLA in thousands		At Quarter End												YTD Activity
														Net				Placed
		Land				CIP				Total				Spend				in Service
Consolidated
Ground up Projects in Progress		$	25.2			$	47.9			$	73.1			$	6.0			$	0.0
Ground up Projects Primarily on Hold			146.5				97.2				243.7				0.0				0.0
Substantially Completed Pending Lease Up			26.9				31.9				58.8				(0.2	)			0.1
Redevelopment Projects			28.3				54.4				82.7				15.7				14.0
Leasing Capital Expenditures			0.0				5.2				5.2				10.4				10.2
		$	226.9			$	236.6			$	463.5			$	31.9			$	24.3
Unconsolidated at 100%
Ground up Projects Primarily on Hold		$	50.7			$	4.0			$	54.7			$	1.5			$	0.0
Redevelopment Projects			0.0				2.6				2.6				5.2				2.9
Leasing Capital Expenditures			0.0				3.2				3.2				6.2				4.0
Sonae Sierra Brazil			12.2				6.9				19.1				19.7				49.1
		$	62.9			$	16.7			$	79.6			$	32.6			$	56.0

 

		Estimated																Cost
		Anchor				Total				Owned				Net				Incurred				Placed in
		Opening				GLA (1)				GLA (1)				Cost (2)				to Date				Service				Anchors
Development
Kansas City, KS			3Q14				419.0				60.0			$	18.7			$	11.5			$	0.0			IKEA, Hobby Lobby
Seabrook, NH			2Q14				364.5				165.0				75.1				61.6				0.0			Walmart, Dick’s, PetSmart, Michaels, Ulta
							783.5				225.0			$	93.8			$	73.1			$	0.0
Redevelopment
Phoenix, AZ							203.6				203.6			$	14.4			$	7.5			$	7.3			Sprouts, Michaels, Marshalls, PetSmart
Tampa, FL							35.7				35.7				3.2				0.7				0.3			Nordstrom Rack
Tampa, FL							115.7				108.7				14.0				9.5				9.5			Ross, Marshalls, Michaels, PetSmart
Chicago, IL							12.7				12.7				5.0				0.6				0.0			Trader Joe’s
San Juan, PR							172.5				172.5				64.4				23.2				19.9			Food court, Victoria’s Secret, Aeropostale
Fajardo, PR							36.3				36.3				8.8				6.3				5.7			PetSmart, Shoe Carnival
Columbia, SC							47.1				47.1				8.6				0.3				0.0			Nordstrom Rack
Richmond, VA							137.9				71.2				14.1				1.0				0.1			Martin’s Food, Petco
							761.5				687.8			$	132.5			$	49.1			$	42.8

 

		DDR’s				Total						DDR’s				Total
Land Held (3)		Own. %				Acreage				Land Held (3)		Own. %				Acreage
Chicago, IL			50	%			106			Toronto, CAN			50	%			31
Gulfport, MS			100	%			86			Toronto, CAN			50	%			29
Orlando, FL			100	%			74			Atlanta, GA			100	%			28
Ukiah, CA			50	%			66			New Haven, CT			100	%			25
Togliatti, Russia			75	%			61			Isabela, PR			80	%			11
Raleigh, NC			100	%			38			Other			100	%			7

 

(1)	Includes only the expansion or redevelopment GLA.

(2)	Includes receipts and expected future reductions from land sales and reimbursements.

(3)	DDR’s basis at pro rata share is $206.1 million.

 

14

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DDR Corp.

Portfolio Summary

$, GLA in millions, except PSF

Excludes Brazil

 

		Total				Prime				Puerto Rico
At 100%
Operating Centers			396				287				15
Owned GLA			77.2				65.6				4.1
Ground Lease GLA			5.9				5.4				0.7
Additional Unowned			25.0				23.3				0.3
Base Rent PSF		$	13.44			$	13.97			$	19.70
Leased Rate			95.1	%			95.9	%			96.3	%
Commenced Rate			93.6	%			94.6	%			95.8	%
Metrics at DDR Share
Owned GLA			56.7				49.6				4.1
Ground Lease GLA			4.8				4.4				0.7
Base Rent PSF		$	13.63			$	14.00			$	19.70
Leased Rate			95.7	%			96.3	%			96.3	%
% of NOI			—				92.5	%			13.5	%

 

		Same Store NOI at 100%														Same Store NOI at DDR Share
		1Q14				1Q13				Change						1Q14				1Q13				Change
Same Store Leased Rate			95.2	%			94.5	%			0.7	%					95.8	%			95.3	%			0.5	%
Revenues:
Base Rents		$	220.0			$	213.4				3.1	%				$	167.2			$	162.0				3.2	%
Recoveries			74.4				70.5				5.6	%					58.5				55.5				5.4	%
Other			5.5				5.8				-6.3	%					4.8				4.9				-1.4	%
			299.9				289.7				3.5	%					230.5				222.4				3.7	%
Expenses:
Operating			(53.8	)			(50.4	)			6.8	%					(41.2	)			(38.6	)			6.6	%
Real Estate Taxes			(42.4	)			(41.7	)			1.8	%					(33.1	)			(32.4	)			2.2	%
			(96.2	)			(92.1	)			4.5	%					(74.2	)			(71.0	)			4.6	%
Same Store NOI (1)		$	203.7			$	197.7				3.1	%				$	156.3			$	151.4				3.2	%
Non-Same Store NOI (1)			60.9				50.4										35.5				3.2
		$	264.6			$	248.1									$	191.8			$	154.6
Same Store NOI Reconciliation to Income Statement
Consolidated at 100%:														Consolidated at DDR Share:
Revenues		$	246.0			$	189.6							DDR Share		$	172.1			$	131.5
Expenses			(73.9	)			(58.1	)						JV Share			(0.4	)			(0.3	)
		$	172.1			$	131.5									$	171.7			$	131.2
Unconsolidated at 100%:														Unconsolidated at DDR Share:
Revenues		$	149.0			$	177.4							Revenues		$	31.6			$	33.7
Expenses			(56.5	)			(60.8	)						Expenses			(11.5	)			(10.3	)
		$	92.5			$	116.6									$	20.1			$	23.4
Total		$	264.6			$	248.1							Total		$	191.8			$	154.6

 

(1)	Brazil is excluded from the same-store pool.

 

15

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DDR Corp.

Portfolio Detail (at 100%)

Excludes Brazil

 

Lease Expiration Schedule
		Greater than 10,000 SF																Less than 10,000 SF
						ABR				Rent				% of								ABR				Rent				% of
Year		Leases				(mil)				PSF				ABR				Leases				(mil)				PSF				ABR
2014			52			$	18.3			$	8.65				1.9	%			574			$	28.7			$	20.89				3.1	%
2015			202				65.1				10.49				6.9	%			905				49.9				21.27				5.3	%
2016			226				76.9				11.29				8.2	%			913				54.3				22.02				5.8	%
2017			219				83.6				10.75				8.9	%			789				47.3				21.90				5.0	%
2018			212				76.3				11.07				8.1	%			820				57.0				23.24				6.1	%
2019			196				76.2				11.08				8.1	%			321				23.1				22.40				2.5	%
2020			77				28.1				10.42				3.0	%			128				10.6				23.71				1.1	%
2021			99				40.8				10.60				4.3	%			157				12.9				24.73				1.4	%
2022			99				42.2				10.85				4.5	%			190				16.4				24.98				1.7	%
2023			107				39.8				10.88				4.2	%			178				16.7				22.90				1.8	%
2014-2023			1,489			$	547.3			$	10.61				58.3	%			4,975			$	316.9			$	22.80				33.7	%
Total Rent Roll			1,601			$	599.8			$	10.90				63.9	%			5,330			$	339.4			$	22.36				36.1	%

 

 

16

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DDR Corp.

Leasing Summary

$, GLA in thousands, except PSF

Excludes Brazil

 

										New				Prior
		# of								Rent				Rent								Wtd Avg				TA
		Leases				GLA				PSF				PSF				Spread				Term (Yrs)				PSF
Current Quarter at 100%
New Leases
Comparable			59				225			$	16.22			$	14.10				15.1	%			7.9			$	15.01
Non-comp			76				560				13.92				N/A				N/A				10.7				17.73
New Leases - Total			135				785				14.58				N/A				15.1	%			9.9				17.05
Renewals			243				2,268				14.23				13.34				6.7	%			6.2				0.14
Total			378				3,053			$	14.32			$	13.41				7.5	%			7.2			$	5.29
Current Quarter at DDR Share
New Leases
Comparable			59				177			$	15.67			$	13.02				20.4	%			8.3			$	16.53
Non-comp			76				449				14.55				N/A				N/A				11.2				17.86
New Leases - Total			135				626				14.87				N/A				20.4	%			10.4				17.54
Renewals			243				1,449				15.66				14.55				7.6	%			6.6				0.15
Total			378				2,075			$	15.42			$	14.38				8.9	%			7.7			$	6.50

 

Net Effective Rents		New				Renewals
		1Q14				1Q14
Square footage			785				2,268
Base rent		$	15.25			$	14.45
Tenant allowance			(1.73	)			(0.02	)
Landlord work			(1.14	)			—
Third party leasing commissions			(0.17	)			(0.01	)
Equivalent net effective rent		$	12.21			$	14.42
Weighted average term in years			9.4				6.6

 

17

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DDR Corp.

Top 50 Tenants

$, GLA in millions

Excludes Brazil

 

				# of Units								Base Rent												GLA												Credit Ratings
		Tenant		Owned				Total				at 100%				% of Total				Pro Rata				at 100%				% of Total				Pro Rata				(S&P/Moody’s/Fitch)
1		TJX Companies (1)			90				91			$	30.2				3.0	%		$	24.7				2.8				3.4	%			2.3			A+ / A3 / NR
2		Walmart (2)			29				69				28.0				2.8	%			25.8				4.4				5.3	%			4.1			AA / Aa2 / AA
3		Bed Bath & Beyond (3)			77				78				26.6				2.7	%			21.1				2.2				2.6	%			1.6			BBB+ / NR / NR
4		PetSmart			83				84				25.3				2.5	%			20.5				1.8				2.2	%			1.4			BB+ / NR / NR
5		Kohl’s			36				45				22.6				2.3	%			17.2				3.2				3.9	%			2.4			BBB+ / Baa1 / BBB+
6		Dick’s Sporting Goods (4)			34				34				19.7				2.0	%			13.7				1.6				1.9	%			1.2			NR
7		Ross Stores (5)			59				59				19.0				1.9	%			13.1				1.8				2.2	%			1.2			A- / NR / NR
8		Office Depot (6)			64				67				18.1				1.8	%			13.9				1.5				1.8	%			1.1			B- / B2 / NR
9		Best Buy			30				35				17.9				1.8	%			14.1				1.2				1.4	%			1.0			BB / Baa2 / BB-
10		Michaels			62				62				17.5				1.8	%			13.4				1.5				1.8	%			1.1			B / B3 / NR
11		AMC Theatres			9				10				16.4				1.7	%			11.5				0.7				0.8	%			0.5			B / NR / NR
12		Publix			39				42				16.3				1.6	%			4.2				1.8				2.2	%			0.5			NR
13		Kroger (7)			33				34				14.5				1.5	%			6.5				1.8				2.2	%			0.8			BBB / Baa2 / BBB
14		Gap (8)			56				56				14.4				1.5	%			11.6				0.9				1.1	%			0.7			BBB- / Baa3 / BBB-
15		Lowe’s			14				34				12.0				1.2	%			11.3				1.8				2.2	%			1.7			A- / A3 / NR
16		Ascena (9)			102				102				11.2				1.1	%			8.7				0.6				0.7	%			0.4			NR
17		Jo-Ann			36				36				11.2				1.1	%			9.2				1.1				1.3	%			0.9			B / Caa1 / NR
18		Regal Cinemas			12				13				10.5				1.1	%			8.1				0.7				0.8	%			0.6			B+ / B1 / B+
19		Barnes & Noble			25				27				10.4				1.0	%			8.7				0.6				0.7	%			0.5			NR
20		Ulta			43				44				10.2				1.0	%			7.9				0.5				0.6	%			0.3			NR
21		Cinemark			12				12				9.9				1.0	%			7.9				0.7				0.8	%			0.5			BB- / NR / NR
22		Sports Authority			18				19				9.7				1.0	%			9.3				0.7				0.8	%			0.7			B- / B3 / NR
23		Toys “R” Us (10)			27				32				9.5				1.0	%			8.1				1.1				1.3	%			0.9			B- / B2 / CCC
24		Dollar Tree Stores			86				88				9.2				0.9	%			6.3				0.9				1.1	%			0.6			NR
25		Home Depot			10				37				9.2				0.9	%			9.0				1.1				1.3	%			1.0			A / A2 / A-
26		Staples			31				32				8.8				0.9	%			6.5				0.7				0.8	%			0.5			BBB / Baa2 / BBB
27		Tops Markets (11)			12				12				8.7				0.9	%			4.5				0.8				1.0	%			0.4			B / NR / NR
28		Petco			33				35				8.2				0.8	%			5.8				0.5				0.6	%			0.3			B / B3 / NR
29		DSW			21				21				7.9				0.8	%			6.4				0.5				0.6	%			0.4			NR
30		Party City			38				39				7.3				0.7	%			5.7				0.5				0.6	%			0.4			NR / B3 / NR
31		Sears (12)			18				19				6.5				0.7	%			4.7				1.7				2.0	%			1.1			CCC+ / Caa1 / CCC
32		Pier 1 Imports			31				34				6.3				0.6	%			4.7				0.3				0.4	%			0.2			NR
33		Hobby Lobby			16				19				6.1				0.6	%			4.4				0.9				1.1	%			0.7			NR
34		hhgregg			19				19				6.1				0.6	%			4.6				0.6				0.7	%			0.4			NR
35		Beall’s			19				19				5.8				0.6	%			3.2				0.8				1.0	%			0.5			NR
36		LA Fitness			9				10				5.5				0.6	%			4.4				0.4				0.5	%			0.4			NR
37		Whole Foods			5				5				5.3				0.5	%			4.6				0.3				0.4	%			0.2			BBB- / NR / NR
38		Famous Footwear			37				37				5.1				0.5	%			4.2				0.3				0.4	%			0.2			B+ / B / BB+
39		Royal Ahold (13)			7				7				4.9				0.5	%			2.8				0.4				0.5	%			0.2			BBB / Baa3 / BBB
40		Five Below			35				35				4.7				0.5	%			3.8				0.3				0.4	%			0.2			NR
41		Gamestop			97				97				4.6				0.5	%			3.7				0.2				0.2	%			0.1			NR
42		Nordstrom Rack			7				7				4.5				0.5	%			3.4				0.3				0.4	%			0.2			A- / Baa1 / A-
43		Panera			34				34				4.5				0.5	%			2.8				0.2				0.2	%			0.1			NR
44		AT&T			48				48				4.4				0.4	%			3.5				0.1				0.1	%			0.1			A- / A3 / A
45		Giant Eagle			5				5				4.2				0.4	%			3.1				0.4				0.5	%			0.3			NR
46		Burlington			10				10				4.2				0.4	%			3.5				0.8				1.0	%			0.6			NR / B2 / NR
47		Rainbow Apparel (14)			36				36				4.2				0.4	%			4.0				0.2				0.2	%			0.2			NR
48		Shoe Carnival			27				27				4.1				0.4	%			2.8				0.3				0.4	%			0.2			NR
49		Stein Mart			17				17				4.0				0.4	%			2.4				0.6				0.7	%			0.3			NR
50		Hallmark			46				46				3.9				0.4	%			3.0				0.2				0.2	%			0.2			NR
		Top 50 Total			1,744				1,880			$	539.3				54.3	%		$	408.3				49.3				59.3	%			36.4
		Total Portfolio										$	992.9				100.0	%		$	744.2				83.1				100.0	%			61.5

 

 

18

---

DDR Corp.

Capital Structure

$, shares and units in millions, except per share

 

		March 31, 2014								March 31, 2013
		Amount				% of Total				Amount				% of Total
Capital Structure
Common Shares Equity		$	5,928.4				51	%		$	5,537.2				54	%
Perpetual Preferred Stock			405.0				4	%			405.0				4	%
			6,333.4				55	%			5,942.2				58	%
Unsecured Credit Facilities			28.3				0	%			190.5				2	%
Unsecured Term Loan			350.0				3	%			350.0				3	%
Unsecured Public Debt			2,775.5				24	%			2,179.2				21	%
Secured Term Loan			400.0				3	%			400.0				4	%
Fixed Rate Mortgage Debt			1,595.3				14	%			1,160.9				11	%
Variable Rate Mortgage Debt			80.9				1	%			92.1				1	%
			5,230.0				45	%			4,372.7				42	%
Total		$	11,563.4				100	%		$	10,314.9				100	%
Capital Structure Detail
Debt to Market Capitalization			45.2	%							42.4	%
Common Shares Outstanding			359.3								317.5
Operating Partnership Units			0.4								0.4
Market Value per Share		$	16.48							$	17.42
Accretion on Convertible Notes (excluded above)		$	18.5							$	29.5
Partners’ Share of Consolidated Debt (included above)		$	9.9							$	20.4
DDR Share of Unconsolidated Debt (excluded above)		$	627.7							$	734.5

 

Credit Ratings

Covenants

Covenant

Current

Debt Rating

Outlook

Threshold

Figure

Moody’s

Baa2

Stable

Total Debt to Real Estate Assets Ratio

£ 65

%

50

%

S&P

BBB-

Positive

Secured Debt to Assets Ratio

£ 40

%

18

%

Fitch

BBB-

Stable

Unencumbered Assets to Unsecured Debt

³ 135

%

198

%

Fixed Charge Coverage Ratio

³ 1.5

x

2.1

x

 

19

---

DDR Corp.

Debt / EBITDA

 

$ in millions
		1Q14				1Q13
Consolidated
Net (loss) income to DDR			($16.6	)		$	6.3
Impairments			10.8				0.0
Depreciation and amortization			108.8				65.9
Interest expense			62.9				52.4
Other expenses, net			4.8				3.1
Equity in net income of JVs			(5.5	)			(3.0	)
JV Impairments (at DDR share)			9.1				0.0
Income tax expense			0.7				0.4
EBITDA adjustments from discontinued operations			(9.8	)			13.0
Loss on disposition of real estate, net			1.1				0.1
Adjustments for non-controlling interests			(2.2	)			(0.2	)
JV FFO (at DDR share)			8.7				12.2
Other JV adjustments (at DDR share)			0.4				0.2
EBITDA - current quarter			173.2				150.4
EBITDA - annualized			692.8				601.6
Consolidated debt			5,243.9				4,354.0
Partner share of consolidated debt			(9.9	)			(20.4	)
Face value adjustments			(13.9	)			18.7
Cash and restricted cash			(193.0	)			(40.7	)
Net adjusted debt		$	5,027.1			$	4,311.6
Debt / EBITDA - consolidated			7.26	x			7.17	x
Pro rata including JVs
EBITDA - current quarter			185.5				163.0
EBITDA - annualized			742.0				652.0
Consolidated net debt			5,027.1				4,311.6
JV debt (at DDR share)			627.1				733.5
Cash and restricted cash			(77.5	)			(124.2	)
Net adjusted debt		$	5,576.7			$	4,920.9
Debt / EBITDA - Pro rata			7.52	x			7.55	x

 

20

---

DDR Corp.

Balance Sheet Summary

 

$ in millions
		Consolidated												Unconsolidated
										Interest												Interest
		Total				Total				Rate				Total				Total				Rate
Debt Composition			100%				DDR Share				DDR Share				100%				DDR Share				DDR Share
Unsecured Credit Facilities		$	28.3			$	28.3				2.20	%
Unsecured Term Loan			350.0				350.0				3.05	%
Unsecured Public Debt			2,757.0				2,757.0				5.27	%
Secured Term Loan			400.0				400.0				1.81	%
Fixed Rate Mortgage Loans			1,595.3				1,585.4				5.18	%			2,306.8				425.5				5.64	%
Variable Rate Mortgage Loans			80.9				80.9				1.72	%			942.3				201.6				7.63	%
Subtotal			5,211.5				5,201.6				4.75	%			3,249.1				627.1				6.28	%
Fair Market Value Adjustment			32.4				32.4								10.0				0.6
Total		$	5,243.9			$	5,234.0				4.75	%		$	3,259.1			$	627.7				6.28	%
		Scheduled				Secured				Unsecured												Interest
		Principal				Debt				Debt				Total				Total				Rate
		Payments				Maturities				Maturities				100%				Pro Rata				Pro Rata
Consolidated Maturity Schedule (1)
2014		$	24.5			$	302.8			$	0.0			$	327.3			$	327.3				4.23	%
2015			33.0				409.9				503.0				945.9				945.9				4.42	%
2016			27.0				0.2				240.0				267.2				267.2				9.60	%
2017			26.8				143.6				350.0				520.4				520.4				6.12	%
2018			20.0				502.6				410.5				933.1				933.1				3.62	%
2019			13.7				169.3				300.0				483.0				483.0				4.06	%
2020			5.5				280.2				300.0				585.7				585.7				6.11	%
2021			4.1				54.7				300.0				358.8				358.8				3.95	%
2022			0.1				42.8				450.0				492.9				483.0				4.67	%
2023 and beyond			0.0				15.4				300.0				315.4				315.4				3.23	%
Unsecured debt discount											(18.2	)			(18.2	)			(18.2	)
		$	154.7			$	1,921.5			$	3,135.3			$	5,211.5			$	5,201.6				4.75	%
Unconsolidated Maturity Schedule (1)
2014		$	9.2			$	228.3			$	0.0			$	237.5			$	38.3				6.64	%
2015			11.9				182.1				0.0				194.0				35.0				7.06	%
2016			10.9				200.4				0.0				211.3				19.1				6.72	%
2017			9.5				1,479.7				0.0				1,489.2				282.6				5.81	%
2018			5.4				214.8				0.0				220.2				70.3				5.57	%
2019			4.0				481.4				0.0				485.4				58.5				5.75	%
2020			4.2				69.8				0.0				74.0				22.9				7.75	%
2021			3.4				80.5				0.0				83.9				31.7				5.41	%
2022			2.2				0.0				0.0				2.2				0.4				0.00	%
2023 and beyond			2.4				249.0				0.0				251.4				68.3				8.56	%
Total		$	63.1			$	3,186.0			$	0.0			$	3,249.1			$	627.1				6.28	%

% of Total		Consolidated				Unconsolidated
Fixed			94.1	%			71.0	%
Variable			5.9	%			29.0	%
Recourse to DDR			69.1	%			0.0	%
Non-recourse to DDR			30.9	%			100.0	%

 

(1)	Assumes borrower extension options are exercised.

 

21

---

DDR Corp.

Consolidated Debt Detail

 

$ in millions		Balance				Balance				Maturity				Interest
		100%				DDR Share				Date (1)				Rate (2) (3)
Senior Debt:
Unsecured Revolver ($750m)		$	28.3			$	28.3				04/18				L+115
Unsecured Revolver ($65m)			0.0				0.0				04/18				L+115
Unsecured Term Loan ($50m)			50.0				50.0				01/17				L+150
Unsecured Term Loan ($300m)			300.0				300.0				01/19				L+190
Secured Term Loan ($400m)			400.0				400.0				04/18				L+135
		$	778.3			$	778.3
Public Debt:
Unsecured Notes		$	152.9			$	152.9				05/15				5.50	%
Convertible Notes (4)			331.5				331.5				11/15				1.75	%
Unsecured Notes			239.6				239.6				03/16				9.63	%
Unsecured Notes			300.0				300.0				04/17				7.50	%
Unsecured Notes			298.8				298.8				04/18				4.75	%
Unsecured Notes			82.2				82.2				07/18				7.50	%
Unsecured Notes			298.4				298.4				09/20				7.88	%
Unsecured Notes			298.1				298.1				01/21				3.50	%
Unsecured Notes			457.2				457.2				07/22				4.63	%
Unsecured Notes			298.3				298.3				05/23				3.38	%
		$	2,757.0			$	2,757.0
Mortgage Debt:
Abernathy Square, GA		$	11.5			$	11.5				10/14				4.23	%
Bermuda Square, VA			7.1				7.1				10/14				4.23	%
Brook Highland Plaza, AL			23.4				23.4				10/14				4.23	%
Chillicothe Place, OH			4.1				4.1				10/14				4.23	%
Clearwater Collection, FL			6.8				6.8				10/14				4.23	%
Cross Pointe Center, NC			9.4				9.4				10/14				4.23	%
Crossroads Center, MS			23.4				23.4				10/14				4.23	%
Deer Valley Towne Center, AZ			16.7				16.7				10/14				4.23	%
Delaware Consumer Square, NY			9.7				9.7				10/14				4.23	%
Downtown Short Pump, VA			11.9				11.9				10/14				4.23	%
Hamilton Marketplace, NJ			39.4				39.4				10/14				4.23	%
Home Depot Center, IL			6.4				6.4				10/14				4.23	%
Kroger, OH			2.5				2.5				10/14				4.23	%
Lexington Place, SC			4.1				4.1				10/14				4.23	%
Loisdale Center, VA			10.5				10.5				10/14				4.23	%
Marketplace at Delta Twp, MI			6.3				6.3				10/14				4.23	%
Mooresville Consumer Sq, NC			17.3				17.3				10/14				4.23	%
North Pointe Plaza, SC			10.4				10.4				10/14				4.23	%
Overlook at Hamilton Place, TN			9.3				9.3				10/14				4.23	%
Plaza at Sunset Hills, MO			26.5				26.5				10/14				4.23	%
Sam’s Club, MA			5.1				5.1				10/14				4.23	%
The Commons, MD			8.3				8.3				10/14				4.23	%
Walmart Supercenter, OH			6.8				6.8				10/14				4.23	%
Wando Crossing, SC			11.4				11.4				10/14				4.23	%
Warner Robins Place, GA			6.5				6.5				10/14				4.23	%
Wendover Village, NC			4.6				4.6				10/14				4.23	%
Windsor Court, CT			6.9				6.9				10/14				4.23	%

 

22

---

DDR Corp.

Consolidated Debt Detail

 

 

$ in millions		Balance				Balance				Maturity				Interest
		100%				DDR Share				Date (1)				Rate (2) (3)
Kyle Crossing, TX			18.8				18.8				01/15				L + 275
Hamilton Commons, NJ			2.8				2.8				09/15				4.70	%
Woodfield Village Green, IL			66.1				66.1				09/15				6.40	%
Carillon Place, FL			25.9				25.9				09/15				6.40	%
Fairfax Towne Center, VA			39.3				39.3				09/15				6.40	%
Shoppers World, MA			128.7				128.7				09/15				6.40	%
Winter Garden Village, FL			104.7				104.7				10/15				6.10	%
Cumming Town Center, GA			34.0				34.0				10/15				6.10	%
Tops Plaza, NY			3.2				3.2				01/16				8.00	%
Freedom Plaza, NY			1.2				1.2				09/16				7.85	%
Walmart Supercenter, NC			4.3				4.3				08/17				6.00	%
Belgate Shopping Center, NC			17.1				17.1				09/17				L+225
Connecticut Commons, CT			48.0				48.0				10/17				5.01	%
Riverdale Village, MN			26.3				26.3				10/17				5.01	%
Riverdale Village Perimeter, MN			33.0				33.0				10/17				5.01	%
Lake Brandon Village, FL			9.5				9.5				10/17				5.01	%
Shoppers World Brookfield, WI			5.9				5.9				10/17				5.01	%
Marketplace of Brown Deer, WI			4.2				4.2				10/17				5.01	%
Brown Deer Center, WI			8.0				8.0				10/17				5.01	%
Thruway Plaza (Walmart), NY			1.9				1.9				10/17				6.78	%
Tops Plaza, NY			8.0				8.0				01/18				7.05	%
Walmart Supercenter, SC			4.3				4.3				01/18				6.00	%
Johns Creek Town Center, GA			24.8				24.8				03/18				5.06	%
Southland Crossings, OH			24.8				24.8				03/18				5.06	%
The Promenade at Brentwood, MO			31.5				31.5				03/18				5.06	%
DDR Headquarters, OH			29.7				29.7				03/18				L+105
Mohawk Commons, NY			11.4				11.4				12/18				5.75	%
Lowes, TN			4.6				4.6				01/19				7.66	%
Nassau Park Pavilion, NJ			57.0				57.0				02/19				3.40	%
Bandera Pointe, TX			24.8				24.8				02/19				3.40	%
Presidential Commons, GA			21.2				21.2				02/19				3.40	%
Plaza Cayey, PR			21.1				21.1				06/19				7.59	%
Plaza Fajardo, PR			25.4				25.4				06/19				7.59	%
Plaza Isabela, PR			22.3				22.3				06/19				7.59	%
Plaza Walmart, PR			11.9				11.9				06/19				7.59	%
Mariner Square, FL			2.9				2.9				09/19				9.75	%
Northland Square, IA			5.6				5.6				01/20				9.38	%
Plaza Rio Hondo, PR			125.7				125.7				01/20				3.95	%
Easton Marketplace, OH			50.2				50.2				01/20				3.95	%
The Fountains, FL			45.8				45.8				01/20				3.95	%
Perimeter Pointe, GA			43.3				43.3				01/20				3.95	%
Polaris Towne Center, OH			44.1				44.1				04/20				6.76	%

 

23

---

DDR Corp.

Consolidated Debt Detail

 

$ in millions		Balance				Balance				Maturity				Interest
		100%				DDR Share				Date (1)				Rate (2) (3)
West Valley Marketplace, PA			10.9				10.9				07/21				6.95	%
Wrangleboro Consumer Sq, NJ			61.8				61.8				10/21				5.41	%
Chapel Hills East, CO			8.8				8.8				12/21				5.24	%
Paradise Village Gateway, AZ			30.0				20.1				01/22				4.65	%
Macedonia Commons, OH			19.7				19.7				02/22				5.71	%
Gulfport Promenade, MS			15.4				15.4				12/37				S+44
		$	1,676.2			$	1,666.3
FMV adjustment - assumed debt			32.4				32.4
Total		$	1,708.6			$	1,698.7
Rate Type
Fixed		$	4,902.3			$	4,892.4				4.5 years				4.95	%
Variable			309.2				309.2				4.8 years				1.62	%
		$	5,211.5			$	5,201.6				4.5 years				4.75	%
Perpetual Preferred Stock
Class H		$	55.0			$	55.0				Perpetual				7.375	%
Class J			200.0				200.0				Perpetual				6.500	%
Class K			150.0				150.0				Perpetual				6.250	%
Interest Rate Swaps Underlying Debt Hedged:		Notional Amount				Rate Hedged				Fixed Rate				Termination Date
Secured Term Loan		$	100.0				1 mo. LIBOR				1.01	%			6/28/14
Unsecured Term Loan			50.0				1 mo. LIBOR				0.56	%			6/1/15
Secured Term Loan			100.0				1 mo. LIBOR				0.53	%			7/1/15
Mortgage Portfolio			81.1				1 mo. LIBOR				2.81	%			9/1/17
Unsecured Term Loan			100.0				1 mo. LIBOR				0.88	%			1/2/18
Unsecured Term Loan			200.0				1 mo. LIBOR				1.54	%			2/1/19

 

(1)	Assumes borrower extension options are exercised.

(2)	L = LIBOR, S = SIFMA.

(3)	Does not include discounts or premiums.

(4)

May be net settled with DDR’s common stock once the price rises above 125% of $15.20 at 3/31/2014. The conversion price is subject to future adjustments in the quarterly dividend. The face value is to be settled in cash. Included in this amount is an $18.5 million reduction as compared to the face value of the convertible notes.

 

24

---

DDR Corp.

Unconsolidated Debt Detail

 

$ in millions		Balance				Balance				Maturity				Interest
		100%				DDR Share				Date (1)				Rate (2) (3)
BRE DDR Retail Holdings II
Silver Spring Square, PA		$	38.0			$	1.9				10/15				6.35	%
Sycamore Crossing, OH			64.2				3.2				12/16				5.81	%
Falcon Ridge Town Center, CA			43.5				2.2				01/17				5.68	%
Vista Village, CA			33.2				1.7				04/17				5.71	%
Falcon Ridge Town Center, CA			14.9				0.7				01/18				5.91	%
Fortuna Center, VA			12.1				0.6				02/18				6.18	%
Orchards Market, WA			21.6				1.1				09/18				L+220
Indian Springs Market Center, OH			6.4				0.3				09/18				L+220
		$	233.9			$	11.7
DDR Domestic Retail Fund I
Village Center, WI		$	11.4			$	2.3				04/15				4.21	%
Paradise Promenade, FL			5.8				1.2				04/15				4.21	%
West Falls Plaza, NJ			11.0				2.2				04/15				4.21	%
52 Additional Assets			883.5				176.7				07/17				5.60	%
Heather Island, FL			4.6				0.9				02/18				3.56	%
Hilliard Rome, OH			12.1				2.4				02/18				3.56	%
		$	928.4			$	185.7
DDRTC Core Retail Fund
Pool 1 (9 assets)		$	350.2			$	52.5				03/17				5.45	%
Willoughby Hills Shop Ctr, OH			7.7				1.1				07/18				6.98	%
Pool 5 (11 assets) (3)			217.0				32.6				02/19				L+180
Pool 3 (6 assets) (3)			165.3				24.8				03/19				L+225
Birkdale Village, NC			82.5				12.4				04/24				4.30	%
		$	822.7			$	123.4
Sonae Sierra Brazil BV Sarl
Shopping Plaza Sul		$	12.7			$	4.2				06/15				CDI
Sonae Sierra Brasil Limitadas			3.3				1.1				10/15				CDI + 166
Patio Boavista			5.8				1.9				10/16				CDI + 178
Debentures			42.3				14.1				02/17				CDI + 96
Shopping Metropole			18.4				6.1				05/18				TR + 930
Debentures			90.6				30.2				02/19				IPCA + 625
Manaura Shopping			51.5				17.2				12/20				8.50	%
Patio Goiania			81.6				27.2				06/23				TR + 970
Patio Londrina			34.2				11.4				10/25				TR + 970
Patio Uberlandia			51.9				17.3				02/26				TR + 970
		$	392.3			$	130.7

 

25

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DDR Corp.

Unconsolidated Debt Detail

 

$ in millions		Balance				Balance				Maturity				Interest
		100%				DDR Share				Date (1)				Rate (2) (3)
Coventry II
Bloomfield Park, MI (4)		$	39.8			$	0.0				12/08				P+300
Marley Creek Square, IL (4)			10.4				1.0				12/12				L+125
DDR SM (10 assets) (4)			7.7				1.6				03/14				L+350
DDR SM (10 assets) (4)			32.7				6.5				03/14				L+525
Totem Lake Mall, WA (4)			27.5				5.5				06/15				L+650
Buena Park, CA (3)			73.0				14.6				06/15				L+625
DDR SM (7 assets) (4)			27.3				5.5				09/16				6.75	%
Christown Spectrum Mall, AZ			65.7				13.1				04/18				4.80	%
Fairplain Plaza, MI			18.5				3.7				05/23				4.85	%
		$	302.6			$	51.5
DDR SAU Retail Fund
DDR SAU Retail Fund (18 assets)		$	107.5			$	21.5				09/17				4.74	%
DDR SAU Retail Fund (9 assets)			71.7				14.3				04/18				4.65	%
		$	179.2			$	35.8
Other Joint Ventures
DDR Markaz II (11 assets)		$	137.6			$	27.5				11/14				7.15	%
BRE DDR Retail Holdings I (12 Assets)			110.3				5.5				04/16				5.25	%
Lennox Town Center Limited, OH			1.0				0.5				07/17				6.44	%
Lennox Town Center Limited, OH			26.0				13.0				07/17				5.64	%
RO & SW Realty (9 assets)			20.3				5.2				10/20				5.25	%
Sun Center Limited, OH			22.6				18.0				05/21				5.99	%
RVIP IIIB, Deer Park, IL			72.2				18.6				09/21				4.84	%
		$	390.0			$	88.3
Subtotal		$	3,249.1			$	627.1
FMV Adjustment - Assumed Debt			10.0				0.6
Total		$	3,259.1			$	627.7
Rate Type
Fixed		$	2,306.8			$	425.5				3.8 years				5.64	%
Variable			942.3				201.6				5.6 years				7.63	%
		$	3,249.1			$	627.1				4.4 years				6.28	%

 

(1)	Assumes borrower extension options are exercised.

(2)	L = LIBOR, P = Prime

 

(3)    Loans with floor interest rates:		Floor:
DDRTC Holdings Pool 5 (11 assets)		1 mo. LIBOR of 0.25%
DDRTC Holdings Pool 3 (6 assets)		1 mo. LIBOR of 0.25%
Buena Park, CA		1 mo. LIBOR of 0.75%

 

(4)	Includes $145.4 million of non-recourse debt ($20.1 million at DDR’s share) associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income.

 

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DDR Corp.

Analyst Coverage

 

Corporate Headquarters		Investor Relations
DDR Corp.		Matt Lougee
3300 Enterprise Parkway		Toll Free: (877) 225-5337
Beachwood, Ohio 44122		Main: (216) 755-5500
Website: www.ddr.com		Email: mlougee@ddr.com
Equity Research
Bank of Amerca Merrill Lynch		Craig Schmidt		craig.schmidt@baml.com		(646) 855-3640
		Katharine Hutchins		katharine.hutchins@baml.com		(646) 855-1681
Capital One		Chris Lucas		christopher.lucas@capitalone.com		(571) 633-8151
Citigroup		Michael Bilerman		michael.bilerman@citi.com		(212) 816-1383
		Christy McElroy		christy.mcelroy@citi.com		(212) 816-6981
Cowen & Company		Jim Sullivan		james.sullivan@cowen.com		(646) 562-1380
Deutsche Bank		Vincent Chao		vincent.chao@db.com		(212) 250-6799
DISCERN		Dave Wigginton		dwigginton@discern.com		(646) 863-4177
Goldman Sachs		Andrew Rosivach		andrew.rosivach@gs.com		(212) 902-2796
		Caitlin Burrows		caitlin.burrows@gs.com		(212) 902-4736
Green Street Advisors		Cedrik Lachance		clachance@greenstreetadvisors.com		(949) 640-8780
		Jason White		jwhite@greenstreetadvisors.com		(949) 640-8780
Hilliard Lyons		Carol Kemple		ckemple@hilliard.com		(502) 588-1839
Imperial Capital		David Harris		dharris@imperialcapital.com		(212) 351-9429
ISI Group		Steve Sakwa		ssakwa@isigrp.com		(212) 446-9462
Janney Montgomery Scott		Mike Gorman		mgorman@janney.com		(215) 665-6224
Jefferies and Company		Tayo Okusanya		tokusanya@jefferies.com		(212) 336-7076
J.P. Morgan		Michael Mueller		michael.w.mueller@jpmorgan.com		(212) 622-6689
KeyBanc Capital Markets		Jordan Sadler		jsadler@keybanccm.com		(917) 368-2280
		Todd Thomas		tthomas@keybanccm.com		(917) 368-2286
MLV & Co.		Paul Morgan		pmorgan@mlvco.com		(415) 325-4187
Morgan Stanley		Haendel St. Juste		haendel.stjuste@morganstanley.com		(212) 761-0071
RBC Capital Markets		Rich Moore		rich.moore@rbccm.com		(440) 715-2646
Robert W. Baird & Co.		Jonathan Pong		jpong@rwbaird.com		(203) 425-2740
Sandler O’Neill		Alex Goldfarb		agoldfarb@sandleroneill.com		(212) 466-7937
		Andrew Schaffer		aschaffer@sandleroneill.com		(212) 466-8062
SunTrust Robinson Humphrey		Ki Bin Kim		kibin.kim@suntrust.com		(212) 303-4124
UBS		Ross Nussbaum		ross.nussbaum@ubs.com		(212) 713-2484
		Jeremy Metz		jeremy.metz@ubs.com		(212) 713-2429
Wells Fargo		Jeff Donnelly		jeff.donnelly@wellsfargo.com		(617) 603-4262
		Tamara Fique		tamara.fique@wellsfargo.com		(443) 263-6568
Fixed Income Research
Barclays		Danish Agboatwala		danish.agboatwala@barclays.com		(212) 412-2573
Citigroup		Tom Cook		thomas.n.cook@citigroup.com		(212) 723-1112
J.P. Morgan		Mark Streeter		mark.streeter@jpmorgan.com		(212) 834-5086
Wells Fargo		Thierry Perrein		thierry.perrein@wachovia.com		(704) 715-8455

 

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DDR Corp.

Reporting Policies

Revenues

 

•

Percentage and overage rents are recognized after the tenants’ reported sales have exceeded the applicable sales breakpoint.

 

•

Tenant reimbursements are recognized in the period in which the expenses are incurred.

 

•

Lease termination fees are recognized upon termination of a tenant’s lease when the Company has no further obligations under the lease.

General and Administrative Expenses

 

•

General and administrative expenses include certain internal leasing salaries, legal salaries and related expenses associated with the leasing of space which are charged to operations as incurred.

 

•

All internal and external acquisition costs are expensed as incurred. The Company does not capitalize any executive officer compensation.

 

•

General and administrative expenses include executive property management compensation and related expenses. Property management services’ direct compensation is reflected in operating and maintenance expenses.

Deferred Financing Costs

 

•

Costs incurred in obtaining financing are included in deferred charges and amortized on a straight-line basis over the term of the related debt agreement; such amortization is reflected as interest expense in the consolidated statements of operations.

Real Estate

 

•

Real estate assets are stated at cost less accumulated depreciation, which, in the opinion of management, is not in excess of the individual property’s estimated undiscounted future cash flows, including estimated proceeds from disposition.

 

•

Construction in progress includes shopping center developments and significant expansions and redevelopments.

 

•

Acquisitions of a partner’s interest in an unconsolidated joint venture in which a change of control has occurred are recorded at fair value.

 

•

Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets as follows:

 

		Buildings		20 to 40 years
		Building Improvements		5 to 20 years
		Furniture/Fixtures/Tenant Improvements		Shorter of economic life or lease terms

 

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DDR Corp.

Notable Accounting and Supplemental Policies

Capitalization

 

•

Expenditures for maintenance and repairs are charged to operations as incurred. Renovations and expenditures that improve or extend the life of the asset are capitalized.

 

•

The Company capitalizes interest on funds used for the construction or expansion of shopping centers and certain construction administration costs. Capitalization of interest and administration costs ceases when construction activities are completed and the property is available for occupancy by tenants or when activities are suspended.

 

•

Interest expense and real estate taxes incurred during construction are capitalized and depreciated over the building life.

Gains on Sales of Real Estate

 

•

Gains on sales of real estate generally related to the sale of outlots and land adjacent to existing shopping centers are recognized at closing when the earnings process is deemed to be complete.

 

•

Gains or losses on the sales of operating shopping centers are generally reflected as discontinued operations.

Leasing Spreads

 

•

Leasing spreads are calculated by comparing the prior tenant’s annual base rent in the final year of the old lease to the new tenant’s annual base rent in the first year of the new lease. The reported calculation, “Comparable”, only includes deals executed within one year of the date that the prior tenant vacated. “Non-comp” deals consist of deals not executed within one year of the date the prior tenant vacated, deals which resulted in a significant difference in size, or deals for space which was vacant at acquisition.

Same Store NOI (“SSNOI”)

 

•

Excludes development, redevelopment, straight-line rental income and expenses, lease termination income, FMV of leases and provisions for uncollectible amounts and/or recoveries thereof; includes assets owned in comparable periods (15 months for quarter comparisons).

Net Effective Rents

 

•

Net effective rents are calculated with full consideration for all costs associated with leasing the space rather than pro rata costs. Landlord work represents property level improvements associated with the lease transactions; however, those improvements are attributed to the landlord’s property value and typically extend the life of the asset in excess of the lease term.

 

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