| Media Contact: | Investor Contact: | |||
| Scott Schroeder | Kate Deck | |||
| 216-755-5500 | 216-755-5500 | |||
| sschroeder@ddr.com | kdeck@ddr.com |
| • | Reported operating FFO of $0.25 per diluted share before non-operating items | ||
| • | Executed a Company record 477 total leases for 3.2 million square feet as compared to 422 total leases in the first quarter of 2010 and 406 total leases in the second quarter of 2009 | ||
| • | Increased the core portfolio leased rate to 91.6% at June 30, 2010 from 90.7% at June 30, 2009 | ||
| • | Increased the portfolio average annualized base rent per occupied square foot to $12.54 at June 30, 2010 from $12.49 at June 30, 2009 | ||
| • | Improved the spread on new leases to +7.0% and renewals to +3.2% for a blended overall spread of +3.9% which compares to a blended spread of -2.9% in the first quarter of 2010 | ||
| • | Reported Same Store Net Operating Income growth of positive 1.5% as compared to a decrease of 2.6% in the first quarter of 2010 and a 5% decrease in the second quarter of 2009 | ||
| • | Reduced consolidated indebtedness by nearly $93 million to $4.6 billion at June 30, 2010 | ||
| • | Sold $84.4 million of non-prime assets, including joint ventures |
1
| Three Months | Six Months | |||||||
| Non-cash impairment charges – consolidated assets | $ | 129.7 | $ | 131.8 | ||||
| Less portion of impairment charges allocated to non-controlling interests | (31.2 | ) | (31.2 | ) | ||||
| Executive separation charge | — | 2.1 | ||||||
| Loss on debt retirement | 1.1 | — | ||||||
| Non-cash (gain) loss on equity derivative instruments related to Otto investment | (21.5 | ) | 3.3 | |||||
| Litigation, debt extinguishment costs and other expenses | 9.1 | 12.1 | ||||||
| Loss on asset sales and impairment charges – equity method investments | 2.0 | 3.3 | ||||||
| Consolidated impairment charges and loss on sales – discontinued operations | 6.9 | 9.4 | ||||||
| FFO associated with Mervyns joint venture, net of non-controlling interest | 1.7 | 3.8 | ||||||
| $ | 97.8 | $ | 134.6 | |||||
| • | Executed 206 new leases aggregating approximately 1.3 million square feet and 271 renewals aggregating approximately 1.9 million square feet. In total, the Company executed approximately 3.2 million square feet of leases representing a Company record for volume of leases and square footage. | ||
| • | Total portfolio average annualized base rent per occupied square foot, excluding assets in Brazil, as of June 30, 2010 was $12.54, as compared to $12.49 at June 30, 2009. Including the Brazil portfolio, total portfolio average annualized base rent per occupied square foot as of June 30, 2010 was $13.24, as compared to $13.03 at June 30, 2009. |
2
| • | The core portfolio leased rate was 91.6% as of June 30, 2010, as compared to 90.7% at June 30, 2009. Including the Brazil portfolio, the core portfolio leased rate was 91.9% at June 30, 2010. | ||
| • | On a cash basis, rental rates for new leases increased by 7.0% over prior rents and renewals increased by 3.2%. On a blended basis, leasing spreads increased by 3.9% during the quarter. The increase in leasing spreads for new leases marks an improvement from the decrease of 5.9% reported in the first quarter of 2010. | ||
| • | Same store net operating income (“NOI”) increased 1.5% for the three-month period ended June 30, 2010 over the prior-year comparable period. |
3
4
| Three-Month Periods | Six-Month Periods | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues: | ||||||||||||||||
Minimum rents(A) | $ | 135,869 | $ | 132,470 | $ | 272,358 | $ | 268,126 | ||||||||
Percentage and overage rents(A) | 600 | 845 | 2,720 | 3,274 | ||||||||||||
| Recoveries from tenants | 42,926 | 43,503 | 90,232 | 89,843 | ||||||||||||
| Ancillary and other property income | 4,936 | 4,881 | 9,898 | 9,797 | ||||||||||||
| Management, development and other fee income | 13,145 | 14,040 | 27,161 | 28,502 | ||||||||||||
Other(B) | 4,540 | 1,737 | 5,809 | 4,984 | ||||||||||||
| 202,016 | 197,476 | 408,178 | 404,526 | |||||||||||||
Expenses: | ||||||||||||||||
Operating and maintenance(C) | 37,197 | 33,626 | 73,144 | 67,773 | ||||||||||||
| Real estate taxes | 26,517 | 26,168 | 55,177 | 53,160 | ||||||||||||
Impairment charges(D) | 129,727 | 48,246 | 131,777 | 55,551 | ||||||||||||
General and administrative(E) | 19,090 | 28,412 | 42,366 | 47,583 | ||||||||||||
| Depreciation and amortization | 56,738 | 56,836 | 113,531 | 116,076 | ||||||||||||
| 269,269 | 193,288 | 415,995 | 340,143 | |||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 1,525 | 3,228 | 2,855 | 6,256 | ||||||||||||
Interest expense(F) | (59,692 | ) | (57,765 | ) | (118,981 | ) | (114,793 | ) | ||||||||
(Loss) gain on repurchases of senior notes(F) | (1,090 | ) | 45,901 | — | 118,479 | |||||||||||
Gain (loss) on equity derivative instruments(G) | 21,527 | (80,025 | ) | (3,340 | ) | (80,025 | ) | |||||||||
Other expenses(H) | (11,850 | ) | (6,656 | ) | (14,924 | ) | (11,161 | ) | ||||||||
| (49,580 | ) | (95,317 | ) | (134,390 | ) | (81,244 | ) | |||||||||
| Loss from continuing operations before equity in net (loss) income of joint ventures, tax benefit (expense) of taxable REIT subsidiaries and state franchise and income taxes, and gain (loss) on disposition of real estate, net of tax | (116,833 | ) | (91,129 | ) | (142,207 | ) | (16,861 | ) | ||||||||
Equity in net (loss) income of joint ventures(I) | (623 | ) | (9,153 | ) | 1,023 | (8,801 | ) | |||||||||
Impairment of joint venture investments(D) | — | (40,371 | ) | — | (40,371 | ) | ||||||||||
| Tax benefit (expense) of taxable REIT subsidiaries and state franchise and income taxes | 3,590 | (909 | ) | 2,574 | 127 | |||||||||||
| Loss from continuing operations | (113,866 | ) | (141,562 | ) | (138,610 | ) | (65,906 | ) | ||||||||
Loss from discontinued operations(D), (J) | (7,892 | ) | (120,090 | ) | (9,057 | ) | (111,418 | ) | ||||||||
| Loss before gain (loss) on disposition of real estate | (121,758 | ) | (261,652 | ) | (147,667 | ) | (177,324 | ) | ||||||||
| Gain (loss) on disposition of real estate, net of tax | 592 | 648 | (83 | ) | 1,096 | |||||||||||
| Net loss | (121,166 | ) | (261,004 | ) | (147,750 | ) | (176,228 | ) | ||||||||
| Loss attributable to non-controlling interests | 34,591 | 34,419 | 36,928 | 37,044 | ||||||||||||
Net loss attributable to DDR | $ | (86,575 | ) | $ | (226,585 | ) | $ | (110,822 | ) | $ | (139,184 | ) | ||||
Net loss applicable to common shareholders | $ | (97,142 | ) | $ | (237,152 | ) | $ | (131,956 | ) | $ | (160,318 | ) | ||||
Funds From Operations (“FFO”): | ||||||||||||||||
| Net loss applicable to common shareholders | $ | (97,142 | ) | $ | (237,152 | ) | $ | (131,956 | ) | $ | (160,318 | ) | ||||
| Depreciation and amortization of real estate investments | 54,148 | 57,565 | 108,742 | 118,601 | ||||||||||||
Equity in net loss (income) of joint ventures(I) | 623 | 9,153 | (1,023 | ) | 8,374 | |||||||||||
Joint ventures’ FFO(I) | 10,307 | 3,809 | 21,862 | 18,968 | ||||||||||||
| Non-controlling interests (OP Units) | 8 | 80 | 16 | 159 | ||||||||||||
| (Gain) loss on disposition of depreciable real estate | (788 | ) | 60 | (2,055 | ) | (12,274 | ) | |||||||||
| FFO applicable to common shareholders | (32,844 | ) | (166,485 | ) | (4,414 | ) | (26,490 | ) | ||||||||
| Preferred dividends | 10,567 | 10,567 | 21,134 | 21,134 | ||||||||||||
| FFO | $ | (22,277 | ) | $ | (155,918 | ) | $ | 16,720 | $ | (5,356 | ) | |||||
| Per share data: | ||||||||||||||||
| Earnings per common share | ||||||||||||||||
| Basic | $ | (0.39 | ) | $ | (1.64 | ) | $ | (0.55 | ) | $ | (1.18 | ) | ||||
| Diluted | $ | (0.39 | ) | $ | (1.64 | ) | $ | (0.55 | ) | $ | (1.18 | ) | ||||
| Basic – average shares outstanding | 248,533 | 144,227 | 237,892 | 136,514 | ||||||||||||
| Diluted – average shares outstanding | 248,533 | 144,227 | 237,892 | 136,514 | ||||||||||||
| Dividends Declared | $ | 0.02 | $ | 0.20 | $ | 0.04 | $ | 0.40 | ||||||||
Funds From Operations – Basic(K) | $ | (0.13 | ) | $ | (1.15 | ) | $ | (0.02 | ) | $ | (0.19 | ) | ||||
Funds From Operations – Diluted(K) | $ | (0.13 | ) | $ | (1.15 | ) | $ | (0.02 | ) | $ | (0.19 | ) | ||||
5
| June 30, 2010 | December 31, 2009 | |||||||
Assets: | ||||||||
| Real estate and rental property: | ||||||||
| Land | $ | 1,932,469 | $ | 1,971,782 | ||||
| Buildings | 5,593,976 | 5,694,659 | ||||||
| Fixtures and tenant improvements | 308,128 | 287,143 | ||||||
| 7,834,573 | 7,953,584 | |||||||
| Less: Accumulated depreciation | (1,403,028 | ) | (1,332,534 | ) | ||||
| 6,431,545 | 6,621,050 | |||||||
| Land held for development and construction in progress | 796,093 | 858,900 | ||||||
| Real estate held for sale, net | 3,000 | 10,453 | ||||||
| Real estate, net | 7,230,638 | 7,490,403 | ||||||
Investments in and advances to joint ventures(M) | 415,829 | 420,541 | ||||||
| Cash | 20,920 | 26,172 | ||||||
| Restricted cash | 35,474 | 95,673 | ||||||
| Notes receivable, net | 60,547 | 74,997 | ||||||
| Receivables, including straight-line rent, net | 135,761 | 146,809 | ||||||
| Other assets, net | 152,774 | 172,011 | ||||||
| $ | 8,051,943 | $ | 8,426,606 | |||||
Liabilities & Equity: | ||||||||
| Indebtedness: | ||||||||
| Revolving credit facilities | $ | 649,844 | $ | 775,028 | ||||
| Unsecured debt | 1,596,505 | 1,689,841 | ||||||
| Mortgage and other secured debt | 2,391,702 | 2,713,794 | ||||||
| 4,638,051 | 5,178,663 | |||||||
| Dividends payable | 11,969 | 10,985 | ||||||
Equity derivative liability(G) | 59,420 | 56,080 | ||||||
| Other liabilities | 213,536 | 227,915 | ||||||
| Total liabilities | 4,922,976 | 5,473,643 | ||||||
| Redeemable operating partnership units | 627 | 627 | ||||||
| Preferred shares | 555,000 | 555,000 | ||||||
Common shares(K) | 25,012 | 20,174 | ||||||
| Paid-in-capital | 3,756,218 | 3,374,528 | ||||||
| Accumulated distributions in excess of net income | (1,248,469 | ) | (1,098,661 | ) | ||||
| Deferred compensation obligation | 12,874 | 17,838 | ||||||
| Accumulated other comprehensive income | 5,184 | 9,549 | ||||||
| Less: Common shares in treasury at cost | (11,877 | ) | (15,866 | ) | ||||
| Non-controlling interests | 34,398 | 89,774 | ||||||
| Total equity | 3,128,340 | 2,952,336 | ||||||
| $ | 8,051,943 | $ | 8,426,606 | |||||
6
| (A) | Base and percentage rental revenues for the six-month period ended June 30, 2010, as compared to the prior-year comparable period, increased $3.7 million primarily due to the acquisition of three shopping centers and the completion of certain developments in 2009 aggregating $6.8 million. This increase was partially offset by store closings related to major tenant bankruptcies in the first quarter of 2009, which approximated $3.0 million and other decreases in operating assets of $0.1 million. | |
| (B) | Other revenues were comprised of the following (in millions): |
| Three-Month Periods | Six-Month Periods | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Lease termination fees | $ | 3.0 | $ | 1.1 | $ | 3.6 | $ | 2.6 | ||||||||
| Financing fees | 0.2 | 0.3 | 0.4 | 0.6 | ||||||||||||
| Other miscellaneous | 1.3 | 0.3 | 1.8 | 1.8 | ||||||||||||
| $ | 4.5 | $ | 1.7 | $ | 5.8 | $ | 5.0 | |||||||||
| (C) | Operating and maintenance expense, including discontinued operations, includes the following expenses (in millions): |
| Three-Month Periods | Six-Month Periods | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Bad debt expense | $ | 4.1 | $ | 3.1 | $ | 7.3 | $ | 5.9 | ||||||||
Ground rent expense(a) | 1.2 | 1.1 | 2.5 | 2.2 | ||||||||||||
| (a) | Includes non-cash expense of approximately $0.5 million and $0.4 million for the three-month periods ended June 30, 2010 and 2009, respectively, and approximately $1.0 million and $0.8 million for the six-month periods ended June 30, 2010 and 2009, respectively, related to straight-line ground rent expense. |
| (D) | The Company recorded impairment charges during the three- and six-month periods ended June 30, 2010 and 2009, on the following consolidated assets and investments because the book basis of the assets was in excess of the estimated fair market value (in millions): |
| Three-Month Periods | Six-Month Periods | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Assets formerly occupied by Mervyns(a) | $ | 32.2 | $ | 43.3 | $ | 32.2 | $ | 43.3 | ||||||||
Land held for development(b) | 54.3 | — | 54.3 | — | ||||||||||||
| Undeveloped land | 4.9 | 0.4 | 4.9 | 0.4 | ||||||||||||
| Assets marketed for sale | 38.3 | 4.5 | 40.4 | 11.8 | ||||||||||||
| $ | 129.7 | $ | 48.2 | $ | 131.8 | $ | 55.5 | |||||||||
Sold assets included in discontinued operations(J) | 3.2 | 83.9 | 4.2 | 87.5 | ||||||||||||
| Joint venture investments | — | 40.4 | — | 40.4 | ||||||||||||
| Total impairment charges | $ | 132.9 | $ | 172.5 | $ | 136.0 | $ | 183.4 | ||||||||
| (a) | The Company’s proportionate share of these impairments was $16.5 million and $29.7 million, after adjusting for the allocation of loss to the non-controlling interest in this consolidated joint venture and including those impairments classified as discontinued operations, for the three- and six-month periods ended June 30, 2010 and 2009, respectively. | |
| (b) | Amounts reported in 2010 relate to land held for development in Togliatti and Yaroslavl, Russia, of which the Company’s proportionate share was $41.9 million after adjusting for the allocation of loss to the non-controlling interest in this consolidated joint venture. |
7
| (E) | General and administrative expenses include internal leasing salaries, legal salaries and related expenses associated with the releasing of space, which are charged to operations as incurred. For the six-month periods ended June 30, 2010 and 2009, general and administrative expenses were approximately 5.1% and 5.4% of total revenues, respectively, including joint venture and managed property revenues. During the six months ended June 30, 2010, the Company incurred a $2.1 million separation charge relating to the departure of an executive officer. Excluding this charge, general and administrative expenses were 4.8% of total revenues for the six months ended June 30, 2010. In the second quarter of 2009, the Company recorded a non-cash charge of $10.5 million as a result of the potential change in control provisions included in the Company’s equity-based award plans triggered from the shareholder approval of the share purchase transaction completed in 2009. Excluding this charge, general and administrative expenses were 4.2% of total revenues for the six-month period ended June 30, 2009. | |
| (F) | The Company recorded the following in connection with its outstanding convertible debt (in millions): |
| Three-Month Period | Six-Month Period | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Non-cash interest expense related to amortization of the debt discount | $ | 1.7 | $ | 3.3 | $ | 3.8 | $ | 7.1 | ||||||||
| Non-cash adjustment to gain on repurchase | 2.2 | 7.2 | 4.8 | 14.7 | ||||||||||||
| (G) | Represents the non-cash impact of the valuation adjustments of the equity derivative instruments (warrants) issued as part of the share purchase transaction completed in 2009, as a result of changes in the Company’s stock price. The liability will be reclassified into equity upon ultimate exercise or expiration of the warrants. | |
| (H) | Other (expenses) income were comprised of the following (in millions): |
| Three-Month Period | Six-Month Period | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Litigation-related expenses | $ | (8.3 | ) | $ | (0.6 | ) | $ | (10.0 | ) | $ | (3.7 | ) | ||||
| Debt extinguishment costs | (2.9 | ) | — | (4.0 | ) | — | ||||||||||
| Note receivable reserve | — | (5.4 | ) | 0.1 | (5.4 | ) | ||||||||||
| Sale of MDT units | — | 0.1 | — | (0.8 | ) | |||||||||||
| Abandoned projects and other expenses | (0.7 | ) | (0.8 | ) | (1.0 | ) | (1.3 | ) | ||||||||
| $ | (11.9 | ) | $ | (6.7 | ) | $ | (14.9 | ) | $ | (11.2 | ) | |||||
| (I) | At June 30, 2010 and 2009, the Company owned joint venture interests, excluding consolidated joint ventures, in 250 and 324 shopping center properties, respectively. See pages 11-13 of this release for a summary of the combined condensed operating results and select balance sheet data of the Company’s unconsolidated joint ventures. |
8
| (J) | The operating results relating to assets classified as discontinued operations are summarized as follows: |
| Three-Month Periods | Six-Month Periods | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Revenues from operations | $ | 459 | $ | 11,180 | $ | 1,655 | $ | 24,036 | ||||||||
| Operating expenses | 426 | 4,449 | 1,244 | 8,946 | ||||||||||||
| Impairment charges | 3,160 | 83,859 | 4,182 | 87,459 | ||||||||||||
| Interest, net | 504 | 3,636 | 1,213 | 7,490 | ||||||||||||
| Depreciation and amortization | 204 | 3,303 | 582 | 7,143 | ||||||||||||
| Total expenses | 4,294 | 95,247 | 7,221 | 111,038 | ||||||||||||
| Loss before disposition of real estate | (3,835 | ) | (84,067 | ) | (5,566 | ) | (87,002 | ) | ||||||||
| Loss on disposition of real estate, net | (4,057 | ) | (36,023 | ) | (3,491 | ) | (24,416 | ) | ||||||||
| Net loss | $ | (7,892 | ) | $ | (120,090 | ) | $ | (9,057 | ) | $ | (111,418 | ) | ||||
| (K) | For purposes of computing FFO and operating FFO per share, the following share information was utilized (in millions): |
| At June 30, | ||||||||
| 2010 | 2009 | |||||||
| Common shares outstanding | 250.1 | 153.7 | ||||||
| OP Units outstanding (“OP Units”) | 0.4 | 0.4 | ||||||
| Three-Month Periods | Six-Month Periods | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Weighted average common shares outstanding | 250.1 | 144.2 | 239.4 | 136.5 | ||||||||||||
| Assumed conversion of OP Units | 0.4 | 0.4 | 0.4 | 0.4 | ||||||||||||
| FFO Weighted average common shares and OP Units — Basic & Diluted | 250.5 | 144.6 | 239.8 | 136.9 | ||||||||||||
| Assumed conversion of dilutive securities | 7.7 | — | 7.2 | — | ||||||||||||
| Operating FFO Weighted average common shares and OP Units —Diluted | 258.2 | 144.6 | 247.0 | 136.9 | ||||||||||||
9
| (L) | Amounts include the consolidation of a 50% owned joint venture, DDR MDT MV LLC (“MV LLC”), that owns 27 sites formerly occupied by Mervyns at June 30, 2010, which includes the following (in millions): |
| June 30, 2010 | December 31, 2009 | |||||||
| Real estate, net | $ | 151.9 | $ | 218.7 | ||||
| Restricted cash | 21.0 | 50.5 | ||||||
| Mortgage debt | 179.8 | 225.4 | ||||||
| Non-controlling interests | (2.3 | ) | 22.4 | |||||
| (M) | In addition, included in the Company’s balance sheet as of December 31, 2009, was $28.5 million of assets owned by a consolidated joint venture that was deconsolidated in accordance with the adoption of Accounting Standards Codification No. 810, “Amendments to FASB Interpretation No. 46(R)” (“ASC 810”) as of January 1, 2010. |
10
| Three-Month Periods | Six-Month Periods | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues from operations(A) | $ | 170,347 | $ | 201,206 | $ | 340,440 | $ | 413,399 | ||||||||
| Operating expenses | 71,124 | 76,104 | 137,237 | 157,672 | ||||||||||||
Impairment charge(B) | 10,922 | — | 10,922 | — | ||||||||||||
| Depreciation and amortization of real estate investments | 51,352 | 57,240 | 99,194 | 115,908 | ||||||||||||
| Interest expense | 60,838 | 77,348 | 120,488 | 141,264 | ||||||||||||
| 194,236 | 210,692 | 367,841 | 414,844 | |||||||||||||
| Loss from operations before tax expense and discontinued operations | (23,889 | ) | (9,486 | ) | (27,401 | ) | (1,445 | ) | ||||||||
| Income tax expense | (5,035 | ) | (2,562 | ) | (9,833 | ) | (4,552 | ) | ||||||||
| Income (loss) from discontinued operations, net of tax | 674 | (34,115 | ) | 885 | (33,556 | ) | ||||||||||
Loss on disposition of discontinued operations, net of tax(C) | (3,212 | ) | (6,048 | ) | (11,963 | ) | (6,077 | ) | ||||||||
Income (loss) on disposition of assets(D) | 17 | — | 17 | (26,741 | ) | |||||||||||
Other, net(E) | — | (2,241 | ) | — | 9,437 | |||||||||||
| Net loss | $ | (31,445 | ) | $ | (54,452 | ) | $ | (48,295 | ) | $ | (62,934 | ) | ||||
Net loss at DDR ownership interests(F) | $ | (1,824 | ) | $ | (11,876 | ) | $ | (164 | ) | $ | (11,073 | ) | ||||
FFO at DDR’s ownership interest(G) | $ | 10,307 | $ | 3,809 | $ | 21,862 | $ | 18,968 | ||||||||
| June 30, 2010 | December 31, 2009 | |||||||
| Land | $ | 1,616,270 | $ | 1,782,431 | ||||
| Buildings | 4,846,362 | 5,207,234 | ||||||
| Fixtures and tenant improvements | 147,186 | 146,716 | ||||||
| 6,609,818 | 7,136,381 | |||||||
| Less: Accumulated depreciation | (670,233 | ) | (636,897 | ) | ||||
| 5,939,585 | 6,499,484 | |||||||
Land held for development and construction in progress(H) | 173,793 | 130,410 | ||||||
| Real estate, net | 6,113,378 | 6,629,894 | ||||||
| Receivables, including straight-line rent, net | 124,504 | 113,630 | ||||||
| Leasehold interests | 10,876 | 11,455 | ||||||
| Other assets, net | 309,325 | 342,192 | ||||||
| $ | 6,558,083 | $ | 7,097,171 | |||||
Mortgage debt(I) | $ | 4,047,156 | $ | 4,547,711 | ||||
| Notes and accrued interest payable to DDR | 82,522 | 73,477 | ||||||
| Other liabilities | 202,523 | 194,065 | ||||||
| 4,332,201 | 4,815,253 | |||||||
| Accumulated equity | 2,225,882 | 2,281,918 | ||||||
| $ | 6,558,083 | $ | 7,097,171 | |||||
11
| (A) | Revenues for the three- and six-month periods includes the following (in millions): |
| Three-Month Periods | Six-Month Periods | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Straight-line rents | $ | 0.9 | $ | 0.9 | $ | 2.1 | $ | 1.7 | ||||||||
| DDR’s proportionate share | 0.1 | 0.1 | 0.3 | 0.1 | ||||||||||||
| (B) | Impairment charge recorded on one asset of which the Company’s proportionate share of the loss was approximately $0.4 million. | |
| (C) | Loss on disposition of discontinued operations includes the sale of properties by three separate unconsolidated joint ventures in the first and second quarters of 2010. In 2009, $170.9 million of impairment charges were recorded by these joint ventures in anticipation of the sales transactions. No loss was recognized by the Company in the second quarter of 2010 as the investment basis of these assets had been previously reduced. The Company’s proportionate share of the loss for the assets sold in the first quarter of 2010 was approximately $1.3 million. | |
| Loss on disposition of discontinued operations included the sale of four properties by two separate unconsolidated joint ventures in the second quarter of 2009 resulting in a loss of $6.0 million of which the Company’s proportionate share was $1.4 million for the three and six months ended June 30, 2009. | ||
| (D) | In the first quarter of 2009, an unconsolidated joint venture disposed of a property resulting in a loss of $26.7 million, of which the Company’s proportionate share was $5.8 million. | |
| (E) | Activity relates to the Company’s investment in the MDT units primarily liquidated in the third quarter of 2009. |
| (F) | Adjustments to the Company’s share of joint venture equity in net loss is related primarily to basis differences impacting amortization and depreciation, impairment charges and (loss) gain on dispositions as follows (in millions): |
| Three-Month Periods | Six-Month Periods | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Income | $ | 1.2 | $ | 2.6 | $ | 1.2 | $ | 2.2 | ||||||||
| (G) | FFO from unconsolidated joint ventures are summarized as follows: |
| Three-Month Periods | Six-Month Periods | |||||||||||||||
| Ended June 30, | Ended June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Net loss | $ | (31,445 | ) | $ | (54,452 | ) | $ | (48,295 | ) | $ | (62,934 | ) | ||||
| Loss on sale of real estate | (47 | ) | — | (47 | ) | — | ||||||||||
| Depreciation and amortization of real estate investments | 51,688 | 62,947 | 102,001 | 127,037 | ||||||||||||
| $ | 20,196 | $ | 8,495 | $ | 53,659 | $ | 64,103 | |||||||||
| DDR ownership interests | $ | 10,307 | $ | 3,809 | $ | 21,862 | $ | 18,968 | ||||||||
| DDR joint venture distributions received, net | $ | 11,221 | $ | 7,061 | $ | 22,020 | $ | 15,736 | ||||||||
12
| (H) | The Company’s proportionate share of joint venture land held for development and construction in progress aggregated approximately $62.9 million and $37.6 million at June 30, 2010 and December 31, 2009, respectively. | |
| The combined condensed balance sheet at June 30, 2010 included a joint venture under development that was deconsolidated by the Company as of January 1, 2010 due to the adoption of ASC 810 (Footnote M on page 10 of this release). | ||
| (I) | The Company’s proportionate share of joint venture debt aggregated approximately $850.5 million and $917.0 million at June 30, 2010 and December 31, 2009, respectively. |
13
