SITE Centers (SITC) 8-K Developers Diversified Realty Corporation

Exhibit 99.1

DEVELOPERS DIVERSIFIED REALTY CORPORATION

For Immediate Release:

Contact: Scott A. Wolstein
Chairman and
Chief Executive Officer
216-755-5500 Michelle M. Dawson
Vice President of Investor Relations
216-755-5455

DEVELOPERS DIVERSIFIED REALTY REPORTS AN INCREASE OF 14.7%
IN DILUTED FFO PER SHARE FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007

CLEVELAND, OHIO, October 25, 2007- Developers Diversified Realty Corporation (NYSE: DDR), the nation’s leading owner, manager and developer of market-dominant community centers, today reported operating results for the third quarter ended September 30, 2007.

• Funds From Operations (“FFO”) per diluted share increased 14.7% to $2.97 and net income per diluted share increased 16.1% to $1.59 for the nine months ended September 30, 2007, as compared to the prior year. Excluding transactional activity relating to merchant building and land sale gains and joint venture promoted income aggregating $73.3 million and $57.6 million in 2007 and 2006, respectively, diluted FFO per share increased approximately 14.5% in 2007 as compared to 2006.

• FFO per diluted share decreased 3.6% to $0.80 and net income per diluted share decreased 42.2% to $0.26 for the three month period ended September 30, 2007, as compared to the prior year. Excluding transactional activity relating to merchant building gains, land sale gains and joint venture promoted income aggregating $4.2 million and $16.8 million in 2007 and 2006, respectively, diluted FFO per share increased approximately 12.8% in 2007 as compared to 2006.

• Executed leases during the third quarter totaled approximately 2.5 million square feet, including 179 new leases and 299 renewals.

• On a cash basis, base rental rates increased 41.8% on new leases, 7.4% on renewals and 11.3% overall.

• Core portfolio leased percentage at September 30, 2007 was 95.9%.

• Same store net operating income (“NOI”) for the nine-month period increased 2.3% over the prior-year comparable period.

Scott Wolstein, DDR’s Chairman and Chief Executive Officer stated, “We are pleased to announce this quarter’s financial results, which reflect the consistent growth of our core portfolio and the implementation of our investment strategy. Our leasing team completed a record quarter in terms of volume and rental spreads on new leases, and our development team continued to identify and execute on attractive investment opportunities. Furthermore, we have proactively taken steps to improve the quality of our portfolio through disposition, development and acquisition and allocate our capital to where we expect the best returns. These actions have had the complementary effect of strengthening our balance sheet and enhancing our liquidity position.”

Financial Results:
For the three months ended September 30, 2007, FFO, a widely accepted measure of a Real Estate Investment Trust (“REIT”) performance, on a per share basis was $0.80 (diluted and basic) as compared to $0.83 (diluted and basic) for the same period in the previous year. FFO available to common shareholders was $99.5 million, as compared to $91.7 million for the three months ended September 30, 2007 and 2006, respectively, an increase of 8.5%. Net income available to common shareholders was $32.7 million or $0.26 per share (diluted) and $0.27 per share (basic) for the three months ended September 30, 2007, as compared to $49.0 million, or $0.45 per share (diluted and basic) for the prior-year comparable period. The decrease in net income and FFO for the three months ended September 30, 2007, is primarily related to a reduction of $12.6 million, or $0.11 per share in 2006, in transactional income relating to merchant building and land sale gains, including gains and promoted income from joint ventures, offset by increases in same store net operating income and operating results from the merger with Inland Retail Real Estate Trust, Inc. (“IRRETI”).

For the nine months ended September 30, 2007, FFO, on a per share basis was $2.97 (diluted) and $2.98 (basic) as compared to $2.59 (diluted) and $2.61 (basic) for the same period in the previous year, an increase of 14.7% on a diluted basis. FFO available to common shareholders was $365.0 million, as compared to $287.7 million for the nine months ended September 30, 2007 and 2006, respectively, an increase of 26.9%. Net income available to common shareholders was $192.9 million or $1.59 per share (diluted) and $1.60 per share (basic) for the nine months ended September 30, 2007, as compared to $149.9 million, or $1.37 per share (diluted and basic) for the prior-year comparable period. The increase in net income for the nine months ended September 30, 2007, is primarily related to the merger with IRRETI, the release of certain valuation reserves and an increase in the gain on sale of assets including those recognized through the Company’s merchant building program and promoted income earned from certain joint ventures. These increases were partially offset by a non-cash charge relating to the redemption of preferred shares, certain integration related costs and a charge relating to the departure of the Company’s former President.

FFO is a supplemental non-GAAP financial measurement used as a standard in the real estate industry. Management believes that FFO provides an additional indicator of the financial performance of a REIT. The Company also believes that FFO more appropriately measures the core operations of the Company and provides a benchmark to its peer group. FFO does not represent cash generated from operating activities in accordance with generally accepted accounting principles, is not necessarily indicative of cash available to fund cash needs and should not 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 dividends, (ii) gains (or losses) from disposition of depreciable real estate property, except for those sold through the Company’s merchant building program, (iii) sales of securities, (iv) extraordinary items, (v) cumulative effect of changes in accounting standards and (vi) 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 minority equity investments and adding the Company’s proportionate share of FFO from its unconsolidated joint ventures and minority equity investments, determined on a consistent basis. Other real estate companies may calculate FFO in a different manner. A reconciliation of net income to FFO is presented in the financial highlights section.

Leasing:
The following results from the third quarter ended September 30, 2007, highlight continued strong leasing activity throughout the portfolio:

• Executed 179 new leases aggregating 941,434 square feet and 299 renewals aggregating 1,574,283 square feet.

• On a cash basis, rental rates on new leases increased 41.8% and rental rates on renewals increased 7.4%. Overall, rental rates for new leases and renewals increased 11.3%.

• Total portfolio average annualized base rent per occupied square foot as of September 30, 2007 was $12.58, as compared to $11.68 at September 30, 2006.

• Core portfolio leased rate was 95.9% as of September 30, 2007 as compared to 96.1% at September 30, 2006.

The Company and its joint ventures (at 100%) estimate total annual recurring leasing capital expenditures to be approximately $24 million ($0.21 psf of owned GLA) in 2007.

Strategic Real Estate Transactions:

Macquarie DDR Trust
In August and September 2007, the Company sold three shopping center properties, aggregating 0.5 million square feet to the Company’s joint venture with Macquarie DDR Trust (ASX: MDT) (“MDT”), an Australian Listed Property Trust sponsored by Macquarie Bank Limited (ASX:MBL), an international investment bank and leading advisor and manager of specialized real estate funds in Australia. The aggregate purchase price for the properties was $49.8 million. The assets were recently acquired by the Company as part of its acquisition of IRRETI and these assets offer redevelopment potential during the next several years. As these assets were recently acquired, the Company did not record a gain on the transaction.

The Company retained a 14.5% ownership interest in the properties, remains responsible for day-to-day operations of the properties and receives ongoing fees for property management, leasing and construction management, and base asset management fees. The Company will also receive a promoted interest above a 10.0% leveraged IRR. The promoted interest will be calculated based on the implied value of the assets at stabilization.

Dispositions:
The Company sold eight shopping center properties in the third quarter of 2007, as part of its portfolio sale in which 52 properties were sold at the end of the second quarter, aggregating 0.9 million square feet for approximately $86.6 million. In the third quarter, the Company recognized a nominal non-FFO gain which was offset by certain additional transaction costs associated with the initial sale at the end of the second quarter. These dispositions represent the remaining assets sold in connection with the transaction announced in the second quarter of 2007.

Common Share Repurchase Program:
During the second quarter of 2007, the Company’s Board of Directors authorized a common share repurchase program. Under the terms of the program, the Company may purchase up to a maximum value of $500 million of its common shares during the next two years. Through October 25, 2007, the Company repurchased 2.2 million of its common shares in open market transactions at an aggregate cost of approximately $105.8 million at a weighted-average price per share of $48.42.

Development (Wholly-Owned and Consolidated Joint Ventures):
The Company currently has the following shopping center projects under construction:

Wholly-Owned and Consolidated Joint Venture Developments
Currently in Progress

					Targeted
			Expected		Substantial
	Total		Gross Cost		Completion
Property	GLA		($Millions)		Date	Description
Ukiah (Mendocino), California		669,406	$	113.5	2009	Community Center
Homestead, Florida		398,759		95.2	2008	Community Center
Miami, Florida		644,999		155.7	2006-2009	Mixed Use
Tampa (Brandon), Florida		370,700		70.7	2009	Community Center
Tampa (Wesley Chapel), Florida		95,408		17.4	2008	Community Center
Atlanta (Douglasville), Georgia		124,200		22.4	2008	Community Center
Boise (Nampa), Idaho		829,975		147.0	2007-2008	Community Center
Chicago (McHenry), Illinois		454,378		74.3	2007	Community Center
Boston, Massachusetts (Seabrook, New Hampshire)		461,825		74.5	2009	Community Center
Elmira (Horseheads), New York		668,619		77.1	2007-2008	Community Center
Raleigh (Apex), North Carolina (Promenade)		87,780		20.2	2008	Community Center
Raleigh (Apex), North Carolina Beaver Creek Crossing, (Phase II)		283,217		52.3	2009	Community Center
San Antonio (Stone Oak), Texas		665,229		93.4	2007	Hybrid Center
Total		5,754,495	$	1,013.7

The Company anticipates commencing construction in 2007 on the following additional shopping centers:

Wholly-Owned and Consolidated Joint Venture Developments
to Commence Construction in 2007

					Targeted
			Expected		Substantial
	Total		Gross Cost		Completion
Property	GLA		($Millions)		Date	Description
Guilford, Connecticut		147,619	$	43.4	2008	Community Center
Atlanta (Union City), Georgia		200,000		47.5	2008	Community Center
Chicago (Grayslake), Illinois		689,799		144.2	2009	Community Center
Gulfport, Mississippi		703,379		91.2	2009	Hybrid Center
Isabela, Puerto Rico		290,085		57.1	2009	Community Center
Austin (Kyle), Texas		778,415		97.2	2009	Community Center
San Antonio (Shertz), Texas		506,639		50.7	2009	Community Center
Toronto (Richmond Hill), Canada		710,000		190.7	2011	Mixed Use
Total		4,025,936	$	722.0

At September 30, 2007, $623.1 million of costs were incurred in relation to the Company’s thirteen development projects under construction and the eight that will commence construction in 2007.

In addition to these developments, the Company has identified several additional development opportunities reflecting an aggregate estimated cost of over $1 billion. While there are no assurances any of these projects will move forward, they provide a source of potential development projects over the next several years. As of September 30, 2007, the projected unleveraged GAAP return, on the Company’s aggregate development and redevelopment pipeline is approximately 10%.

Development (Unconsolidated Joint Ventures):
The Company’s joint ventures have the following shopping center projects under construction. At September 30, 2007, $184.8 million of costs had been incurred in relation to these development projects.

Unconsolidated Joint Venture Developments
Currently in Progress

		DDR's
		Effective			Expected		Targeted
	Joint Venture	Ownership	Total		Gross Cost		Substantial
Property	Partner	Percentage	GLA		($Millions)		Completion Date	Description
Kansas City (Merriam), Kansas	Coventry II	20.0%		280,516	$	71.0	2008	Community Center
Detroit (Bloomfield Hills), Michigan	Coventry II	10.0%		882,197		335.6	2008-2009	Lifestyle Center
Dallas (Allen), Texas	Coventry II	10.0%		831,413		207.5	2008	Lifestyle Center
Manaus, Brazil	Sonae Sierra	47.2%		477,630		95.7	2009	Enclosed Mall
				2,471,756	$	709.8

The Company’s joint venture with Sonae Sierra anticipates commencing construction on a 350,000 square foot enclosed mall in Uberlandia, Brazil, with an estimated gross cost of approximately $70 million.

Redevelopments and Expansions (Wholly-Owned and Consolidated Joint Ventures):
The Company is currently expanding/redeveloping the following shopping centers at a projected aggregate gross cost of approximately $117.4 million. At September 30, 2007, approximately $53.8 million of costs had been incurred in relation to these projects.

Summary of Significant Wholly-Owned and Consolidated Joint Venture
Redevelopments and Expansions Currently in Progress

Property	Description
Miami (Plantation), Florida	Redevelop shopping center to include Kohl’s and additional junior anchors
Chesterfield, Michigan	Construct 25,400 sf of small shop space and retail space
Olean, New York	Wal-Mart expansion and tenant relocation
Fayetteville, North Carolina	Redevelop 18,000 sf of small shop space and construct an outparcel building
Akron (Stow), Ohio	Redevelop former K-Mart space and develop new outparcels
Dayton (Huber Heights), Ohio	Construct 45,000 sf junior anchor

The Company anticipates commencing construction on the following redevelopment and expansion projects in the next year:

Summary of Significant Wholly-Owned and Consolidated Joint Venture Redevelopments and Expansions to
Commence Construction in 2007

Property	Description
Hatillo, Puerto Rico	Construct 21,000 sf of junior anchor space
San Juan (Bayamon), Puerto Rico (Plaza Del Sol)	Construct 144,000 sf of junior anchor space and retail shops
Dallas (McKinney), Texas	Construct 87,757 sf of retail shops and outparcels

Redevelopments and Expansions (Unconsolidated Joint Ventures):
The Company’s joint ventures are currently expanding/redeveloping the following shopping centers at a projected gross cost of $577.1 million, which includes the initial acquisition costs for the Coventry II redevelopment projects. At September 30, 2007, approximately $459.2 million of costs had been incurred in relation to these projects.

Summary of Significant Unconsolidated Joint Venture Redevelopment and
Expansion Projects Currently in Progress

		DDR's
		Effective
	Joint Venture	Ownership
Property	Partner	Percentage			Description
Phoenix, Arizona	Coventry II		20.0	%	Large-scale redevelopment of enclosed mall to open-air format
Buena Park, California	Coventry II		20.0	%	Large-scale redevelopment of enclosed mall to open-air format
Los Angeles (Lancaster), California	Prudential Real Estate Investors		21.0	%	Relocate Wal-Mart and redevelop former Wal-Mart space
Chicago (Deer Park), Illinois	Prudential Real Estate Investors		25.75	%	Retenant former retail shop space with junior anchor and construct 13,500 sf multi-tenant outparcel building
Benton Harbor, Michigan	Coventry II		20.0	%	Construct 89,000 sf of anchor space and retail shops
Kansas City, Missouri	Coventry II		20.0	%	Relocate retail shops and retenant former retail shop space
Cincinnati, Ohio	Coventry II/Thor Equities		18.0	%	Redevelop former JC Penney space

The Company’s joint ventures anticipate commencing expansion/redevelopment projects at the following shopping centers:

Summary of Significant Joint Venture Redevelopment and Expansion Projects
to Commence Construction in 2007

		DDR’s
		Effective
	Joint Venture	Ownership
Property	Partner	Percentage	Description
Seattle (Kirkland), Washington	Coventry II	20.00%	Large-scale redevelopment of shopping center
Sao Paulo (Sao Bernado de	Sonae Sierra	47.20%	Expansion and renovation of the existing
Campo), Brazil			mall to accommodate theater tenant and
			redesign of the food court

Developers Diversified currently owns and manages over 740 retail operating and development properties in 45 states, plus Puerto Rico, Brazil, Russia and Canada, totaling over 160 million square feet. Developers Diversified Realty is a self-administered and self-managed real estate investment trust (REIT) operating as a fully integrated real estate company which acquires, develops, leases and manages shopping centers.

A copy of the Company’s Supplemental Financial/Operational package is available to all interested parties upon request at our corporate office to Michelle M. Dawson, Vice President of Investor Relations, Developers Diversified Realty Corporation, 3300 Enterprise Parkway, Beachwood, OH 44122 or on our Web site which is located at http://www.ddr.com.

Developers Diversified Realty Corporation considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21 E 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 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 a major tenant, constructing properties or expansions that produce a desired yield on investment or inability to enter into definitive agreements with regard to our financing arrangements or our failure to satisfy conditions to the completion of these arrangements. For more details on the risk factors, please refer to the Company’s Form on 10-K as of December 31, 2006.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)

	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2007			2006			2007			2006
Revenues:
Minimum rents (A)	$	158,868		$	134,937		$	484,317		$	397,542
Percentage and overage rents (A)		1,988			1,583			5,564			5,246
Recoveries from tenants		52,139			43,543			153,873			125,138
Ancillary and other property income		5,129			4,753			14,096			13,471
Management, development and other fee income		13,827			8,366			34,906			21,320
Other (B)		2,110			1,018			13,564			9,226
		234,061			194,200			706,320			571,943
Expenses:
Operating and maintenance		33,270			26,529			95,460			77,941
Real estate taxes		26,772			23,551			82,944			66,446
General and administrative (C)		19,626			14,974			60,304			45,805
Depreciation and amortization		56,565			46,172			163,196			135,194
		136,233			111,226			401,904			325,386
Other income (expense):
Interest income		1,569			1,587			7,751			7,543
Interest expense		(62,524	)		(52,244	)		(196,975	)		(155,312	)
Other (expense) income (D)		(225	)		(203	)		(675	)		464
		(61,180	)		(50,860	)		(189,899	)		(147,305	)
Income before equity in net income of joint ventures, minority equity interests, income tax benefit of taxable REIT subsidiaries and franchise taxes, discontinued operations and gain on disposition of real estate		36,648			32,114			114,517			99,252
Equity in net income of joint ventures (E)		6,003			12,868			33,887			22,956
Minority equity interests (F)		(1,974	)		(2,283	)		(15,689	)		(6,504	)
Income tax (expense) benefit of taxable REIT subsidiaries and franchise taxes (G)		(484	)		330			15,287			2,690
Income from continuing operations		40,193			43,029			148,002			118,394
(Loss) income from discontinued operations (H)		(601	)		5,821			21,541			11,757
Income before gain on disposition of real estate		39,592			48,850			169,543			130,151
Gain on disposition of real estate, net of tax		3,691			13,962			63,713			61,124
Net income	$	43,283		$	62,812		$	233,256		$	191,275
Net income, applicable to common shareholders	$	32,716		$	49,020		$	192,889		$	149,898
Funds From Operations (“FFO”):
Net income applicable to common shareholders	$	32,176		$	49,020		$	192,889		$	149,898
Depreciation and amortization of real estate investments		54,235			47,235			160,819			138,072
Equity in net income of joint ventures (E)		(6,003	)		(12,868	)		(33,887	)		(22,956	)
Joint ventures’ FFO (E)		17,602			13,682			62,475			32,963
Minority equity interests (OP Units) (F)		569			534			1,706			1,601
Loss (gain) on disposition of depreciable real estate, net of tax		430			(5,870	)		(19,013	)		(11,869	)
FFO available to common shareholders		99,549			91,733			364,989			287,709
Preferred dividends		10,567			13,792			40,367			41,377
FFO	$	110,116		$	105,525		$	405,356		$	329,086
Per share data:
Earnings per common share
Basic	$	0.27		$	0.45		$	1.60		$	1.37
Diluted	$	0.26		$	0.45		$	1.59		$	1.37
Dividends Declared	$	0.66		$	0.59		$	1.98		$	1.77
Funds From Operations — Basic (I)	$	0.80		$	0.83		$	2.98		$	2.61
Funds From Operations — Diluted (I)	$	0.80		$	0.83		$	2.97		$	2.59
Basic — average shares outstanding (I)		123,329			109,120			120,910			109,124
Diluted — average shares outstanding (I)		123,727			109,670			121,594			109,714

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)

(A) Increases in base and percentage rental revenues for the nine-month period ended September 30, 2007, as compared to 2006, aggregated $89.7 million consisting of $6.0 million related to leasing of core portfolio properties (an increase of 1.7% from 2006), $86.1 million from the acquisition of assets and the merger with IRRETI, $4.8 million related to developments and redevelopments and $1.1 million from an increase in occupancy at the business centers. These amounts were offset by a decrease of $8.3 million due to the disposition of properties in 2006 and 2007. Included in the rental revenues for the nine-month periods ended September 30, 2007 and 2006, is approximately $9.4 million and $12.1 million, respectively, of revenue resulting from the recognition of straight-line rents.

(B) Other income for the three and nine month periods ended September 30, 2007 and 2006 was comprised of the following (in millions):

	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
	2007		2006		2007		2006
Acquisition fees	$	0.1	$	—	$	6.4	$	—
Lease termination fees		1.4		0.9		4.9		7.2
Financings fees		0.1		—		1.5		0.4
Other miscellaneous		0.5		0.1		0.8		1.6
	$	2.1	$	1.0	$	13.6	$	9.2

(C) 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 nine-month periods ended September 30, 2007 and 2006, general and administrative expenses were approximately 4.6% and 5.0%, respectively, of total revenues, including joint venture revenues, respectively. For the nine months ended September 30, 2007, the Company recorded a charge of approximately $4.1 million to general and administrative expense in connection with the former President’s departure from the Company. Excluding this charge, general and administrative expenses were 4.3% of total revenues for the nine months ended September 30, 2007. In addition, the Company incurred certain one time integration costs in connection with the IRRETI acquisition that have aggregated approximately $2.4 million for the nine-month period ended September 30, 2007.

(D) Other income/expense primarily relates to abandoned acquisition and development project costs. In 2006, the Company received proceeds of approximately $1.3 million from a litigation settlement.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)

(E) The following is a summary of the combined operating results of the Company’s joint ventures:

	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2007			2006			2007			2006
Revenues from operations (a)	$	230,935		$	104,287		$	577,877		$	306,994
Operating expense		81,594			35,074			195,232			101,249
Depreciation and amortization of real estate investments		55,568			19,553			135,207			59,082
Interest expense		80,884			35,885			192,974			93,787
		218,046			90,513			523,413			254,118
Income from operations before tax expense, gain on disposition of real estate and discontinued operations		12,889			13,774			54,464			52,876
Income tax expense		4,545			—			—			—
(Loss) gain on disposition of real estate		(103	)		193			92,987			237
(Loss) income from discontinued operations, net of tax		(323	)		(22	)		(649	)		805
Gain on disposition of discontinued operations, net of tax		1,790			21,460			2,529			19,910
Net income	$	18,798		$	35,405		$	149,331		$	73,828
DDR Ownership interests (b)	$	5,669		$	12,583		$	34,520		$	22,360
FFO from joint ventures are summarized as follows:
Net income	$	18,798		$	35,405		$	149,331		$	73,828
Loss (gain) on disposition of real estate, including discontinued operations		103			(21,418	)		(91,339	)		(21,437	)
Depreciation and amortization of real estate investments		55,702			19,795			135,539			60,510
	$	74,603		$	33,782		$	193,531		$	112,901
DDR Ownership interests (b)	$	17,602		$	13,682		$	62,475		$	32,963
DDR Partnership distributions received, net (c)	$	14,088		$	23,686		$	79,782		$	43,366

(a)	Revenues for the three-month periods ended September 30, 2007 and 2006 included approximately $2.3 million and $1.4 million, respectively, resulting from the recognition of straight-line rents of which the Company’s proportionate share is $0.3 million and $0.2 million, respectively. Revenues for the nine-month periods ended September 30, 2007 and 2006 included approximately $6.6 million and $3.9 million, respectively, resulting from the recognition of straight-line rents of which the Company’s proportionate share is $1.0 million and $0.7 million, respectively.
(b)	The Company’s share of joint venture net income decreased by $0.2 million and increased by $0.2 million for the three-month periods ended September 30, 2007 and 2006, respectively. The Company’s share of joint venture net income decreased by $0.6 million and increased by $0.5 million for the nine-month periods ended September 30, 2007 and 2006, respectively. These adjustments reflect basis differences impacting amortization and depreciation and gain on dispositions. During the nine-month period ended September 30, 2007, the Company received $14.3 million of promoted income, of which $13.6 million related to the sale of assets from the DDR Markaz Joint Venture which is included in the Company’s proportionate share of net income and FFO.
	At September 30, 2007 and 2006, the Company owned joint venture interests, excluding consolidated joint ventures, in 273 and 108 shopping center properties, respectively. In addition, at September 30, 2007 and 2006, the Company owned 44 and 51 shopping center sites formerly owned by Service Merchandise, respectively, through its 20% owned joint venture with Coventry II.
(c)	Distributions may include funds received from asset sales and refinancings in addition to ongoing operating distributions.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)

(F) Minority equity interests are comprised of the following:

	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
	2007		2006		2007		2006
Minority interests	$	1,405	$	1,749	$	4,293	$	4,903
Operating partnership units		569		534		1,706		1,601
Preferred operating partnership units		—		—		9,690		—
	$	1,974	$	2,283	$	15,689	$	6,504

	The preferred operating partnership units were redeemed in June 2007.
(G)	During the first quarter of 2007, the Company released to income approximately $15.0 million of previously established valuation allowances against certain deferred tax assets as management had determined, due to several factors, that it is more likely than not that the deferred tax asset will be realized. The release was primarily due to the Company’s increased use of its taxable REIT subsidiaries relating to its merchant building program.
(H)	The operating results relating to assets classified as discontinued operations are summarized as follows:

	Three-Month Period					Nine-Month Period
	Ended September 30,					Ended September 30,
	2007			2006		2007		2006
Revenues	$	1,345		$	12,306	$	28,060	$	37,211
Expenses:
Operating		1,101			3,453		7,938		9,800
Interest, net		325			3,319		6,801		10,051
Depreciation		210			2,882		5,103		8,772
Total expenses		1,636			9,654		19,842		28,623
Income before (loss) gain on disposition of real estate		(291	)		2,652		8,218		8,588
(Loss) gain on disposition of real estate		(310	)		3,169		13,323		3,169
Net (loss) income	$	(601	)	$	5,821	$	21,541	$	11,757

(I) For purposes of computing FFO per share (basic), the weighted average shares outstanding were adjusted to reflect the conversion of approximately 0.9 million of Operating Partnership Units (OP Units) outstanding at September 30, 2007 and 2006, into 0.9 million common shares of the Company for both of the three-month periods ended September 30, 2007 and 2006, and 0.9 million and 1.0 million for the nine-month periods ended September 30, 2007 and 2006, respectively, on the weighted average basis. The weighted average diluted shares and OP Units outstanding, for purposes of computing FFO, were approximately 125.1 million and 110.8 million for the three-month periods ended September 30, 2007 and 2006, respectively, and 122.8 and 111.0 million for the nine-month periods ended September 30, 2007 and 2006, respectively.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands)

Selected Balance Sheet Data:

	September 30, 2007		(A)	December 31, 2006		(A)
Assets:
Real estate and rental property:
Land	$	2,083,569		$	1,768,702
Buildings		5,899,244			5,023,665
Fixtures and tenant improvements		236,167			196,275
Construction in progress		583,235			453,493
		8,802,215			7,442,135
Less accumulated depreciation		(973,316	)		(861,266	)
Real estate, net		7,828,899			6,580,869
Cash		49,700			28,378
Investments in and advances to joint ventures		644,318			291,685
Notes receivable		16,778			18,161
Receivables, including straight-line rent, net		204,725			152,161
Assets held for sale		—			5,324
Other assets, net		168,847			103,175
	$	8,913,267		$	7,179,753
Liabilities:
Indebtedness:
Revolving credit facilities	$	625,000		$	297,500
Unsecured debt		2,624,003			2,218,020
Mortgage and other secured debt		1,955,143			1,733,292
		5,204,146			4,248,812
Dividends payable		88,052			71,269
Other liabilities		297,089			241,556
		5,589,287			4,561,637
Minority interests		115,708			121,933
Shareholders’ equity		3,208,272			2,496,183
	$	8,913,267		$	7,179,753

(A) Amounts include the consolidation of Mervyns, a 50% owned joint venture, which includes $405.8 million of real estate assets at September 30, 2007 and December 31, 2006, $258.5 million of mortgage debt at September 30, 2007 and December 31, 2006, and $75.3 million and $77.6 million of minority interest at September 30, 2007 and December 31, 2006, respectively.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(in thousands)

Selected Balance Sheet Data (Continued):

Combined condensed balance sheets relating to the Company’s joint ventures are as follows:

	September 30, 2007			December 31, 2006
Land	$	2,373,760		$	933,916
Buildings		6,234,496			2,788,863
Fixtures and tenant improvements		107,653			59,166
Construction in progress		139,153			157,762
		8,855,062			3,939,707
Accumulated depreciation		(363,102	)		(247,012	)
Real estate, net		8,491,960			3,692,695
Receivables, including straight-line rent, net		123,866			75,024
Leasehold interests		14,313			15,195
Other assets		388,030			132,984
	$	9,018,169		$	3,915,898
Mortgage debt (a)	$	5,525,724		$	2,495,080
Notes and accrued interest payable to DDR		8,811			4,960
Other liabilities		199,211			94,648
		5,733,746			2,594,688
Accumulated equity		3,284,423			1,321,210
	$	9,018,169		$	3,915,898

(a) The Company’s proportionate share of joint venture debt aggregated approximately $1,029.3 million and $525.6 million at September 30, 2007 and December 31, 2006, respectively.