Exhibit 99.2
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Table of Contents
Section | Page | |
Earnings Release & Financial Statements | ||
Press Release | 1-14 | |
Financial Summary | ||
FFO Reconciliation and Other Information | 15 | |
Additional Financial Disclosures | 16 | |
Debt to EBITDA Calculation | 17 | |
Significant Accounting Policies | 18-19 | |
Other Real Estate Information | 20 | |
Joint Venture Financial Summary | ||
Joint Venture Investment Summary | 21 | |
Joint Venture Combining Financial Statements | 22-23 | |
Investment Summary | ||
Acquisitions and Dispositions | 24 | |
Developments and Redevelopments | 25-26 | |
Development Projects Primarily on Hold | 27 | |
Portfolio Summary | ||
Portfolio Characteristics | 28 | |
Lease Expirations | 29 | |
Leasing Summary | 30 | |
Net Effective Rents | 31 | |
Largest Tenants | 32 | |
Debt Summary | ||
Market Capitalization, Ratings and Financial Ratios | 33 | |
Summary of Consolidated Debt | 34 | |
Summary of Joint Venture Debt | 35 | |
Consolidated Debt Detail | 36-38 | |
Joint Venture Debt Detail | 39-40 | |
Analyst Coverage | ||
Contact Information | 41 |
Property list available online athttp://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, 2012. 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 as of December 31, 2011. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For Immediate Release:
Media Contact: | Investor Contact: | |
Marty Richmond | Samir Khanal | |
Vice President Marketing and Corporate Communications | Senior Director of Investor Relations | |
216.755.5500 | 216.755.5500 | |
mrichmond@ddr.com | skhanal@ddr.com |
DDR REPORTS OPERATING FFO PER DILUTED SHARE
OF $0.24 FOR THE QUARTER ENDED MARCH 31, 2012
BEACHWOOD, OHIO, May 1, 2012 – DDR Corp. (NYSE: DDR) today announced operating results for the first quarter ended March 31, 2012.
SIGNIFICANT FIRST QUARTER ACTIVITY
• | Generated operating FFO of $0.24 per diluted share, which excludes certain non-operating items |
• | Executed 545 new leases and renewals for over 3.3 million square feet |
• | Increased the portfolio leased rate to 93.7% at March 31, 2012, from 93.6% at December 31, 2011 and 92.6% at March 31, 2011 |
• | Generated positive leasing spreads, with new leases up 9.0% on a pro rata basis and 6.0% at 100% ownership, and renewals up 5.9% on a pro rata basis and 5.4% at 100% ownership. Blended spreads were up 6.4% on a pro rata basis and 5.5% at 100% ownership. |
• | Generated same store net operating income growth of 2.3% on a pro rata basis and 2.9% at 100% ownership |
• | Completed a $47 million acquisition of a 561,000 square foot prime shopping center in Chicago |
• | Completed $45 million of non-prime asset sales, of which DDR’s pro rata share of the proceeds was $34 million |
• | Completed $353 million of new long-term financings with an average interest rate below 4% and average duration of 6.6 years |
• | Formed a new unconsolidated joint venture with Blackstone to acquire 46 shopping centers that had previously been managed but unowned |
• | Entered into forward equity agreements to sell 19 million shares for gross proceeds of $246 million to fund the Company’s share of the Blackstone joint venture and other prime asset acquisitions |
“We are pleased to report continued progress with our strategic operating objectives and have every expectation that the consistency of our strong performance will continue,” commented DDR’s president and chief executive officer, Daniel B. Hurwitz.
2012 GUIDANCE
Based on strong operating performance during the first four months of 2012 relative to budget, the Company has revised its estimate of 2012 operating FFO per share. DDR currently expects operating FFO per share for 2012 to be $1.00 to $1.04, up from the range of $0.98 to $1.04 originally provided in January.
FINANCIAL HIGHLIGHTS
The Company’s first quarter operating funds from operations available to common shareholders was $66.8 million, or $0.24 per diluted share, before $7.1 million of net adjustments, which compares to $63.2
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million, or $0.24 per diluted share for the prior-year comparable. The increase in operating funds from operations for the three-month period ended March 31, 2012 as compared to the same period in 2011 is primarily due the acquisition of seven shopping center assets in 2011 and 2012 partially offset by asset dispositions as well as the redemption of preferred shares in the second quarter of 2011.
Funds From Operations applicable to common shareholders (“FFO”) for the three-month period ended March 31, 2012, including the above net adjustments, was $59.7 million, or $0.21 per diluted share, which compares to FFO of $93.0 million, or $0.27 per diluted share, for the prior-year comparable period.
The decrease in FFO for the three-month period ended March 31, 2012, as compared to the same period in 2011 is primarily due to income recorded in the first quarter of 2011 as a result of the gain on change in control of interests related to the Company’s acquisition of two assets from unconsolidated joint ventures, the effect of the valuation adjustments associated with the warrants that were exercised in full for cash in the first quarter of 2011 and the loss on debt extinguishment related to the Company’s repurchase of a portion of its 9.625% unsecured notes in the first quarter of 2012.
Net loss applicable to common shareholders for the three-month period ended March 31, 2012, was $22.0 million, or $0.08 per diluted share, which compares to net income of $24.7 million, or $0.01 per diluted share, for the prior-year comparable period. The net loss applicable to common shareholders for the three-month period ended March 31, 2012 as compared to net income for the same period in 2011 is primarily due to the same factors impacting FFO as explained above.
LEASING & PORTFOLIO OPERATIONS
The following results for the three-month period ended March 31,2012, highlight continued strong leasing activity throughout the portfolio:
• | Executed 178 new leases aggregating 1.0 million square feet and 367 renewals aggregating approximately 2.3 million square feet |
• | The portfolio leased rate was 93.7% at March 31, 2012, as compared to 92.6% at March 31, 2011 |
• | On a cash basis, rental rates for new leases increased by 9.0% on a pro rata basis and 6.0% at 100% ownership, and renewals by 5.9% on a pro rata basis and 5.4% at 100% ownership. Overall blended spreads were up 6.4% on a pro rata basis and 5.5% at 100% ownership. |
• | Same store net operating income (“NOI”) increased by 2.3% for the three-month period ended March 31, 2012 as compared to the prior-year comparable period on a pro rata basis and 2.9% at 100% ownership |
• | Total portfolio average annualized base rent per occupied square foot as of March 31, 2012 was $14.08, as compared to $13.37 at March 31, 2011 |
ACQUISITIONS & FINANCINGS
In April 2012, the Company acquired its joint venture partners’ 50% ownership interest in two prime power centers located in Portland, Oregon and Phoenix, Arizona for $70.0 million in the aggregate. Tanasbourne Town Center, in Portland, Oregon, is a large-format power center totaling 566,000 square feet. The shopping center is anchored by national tenants including Target, Nordstrom Rack, Bed Bath & Beyond, Ross Dress For Less, Michaels, Old Navy and Petco. Arrowhead Crossing, in Phoenix, Arizona, is a large-format power center totaling 412,000 square feet. The shopping center is anchored by national tenants including Nordstrom Rack, DSW, T.J. Maxx, HomeGoods, Staples and Hobby Lobby. The Company funded its $70.0 million investment with proceeds from the issuance of 4.8 million common
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shares at an average price of $14.64 through its at-the-market common equity program. At closing, approximately $104 million of mortgage debt was repaid and the assets are now part of the Company’s large unencumbered pool.
In March 2012, the Company acquired Brookside Marketplace in Chicago, Illinois, for $47.4 million. The center is a large-format power center totaling 561,000 square feet. The asset is anchored by Super Target, Kohl’s, Dick’s Sporting Goods, Best Buy, HomeGoods, Michaels, PetSmart, Office Max, Old Navy and ULTA.
During the quarter, the Company’s one-third-owned joint venture, Sonae Sierra Brasil, completed a strategic asset swap that resulted in a majority interest in Shopping Plaza Sul, a high-quality enclosed mall located in Sao Paulo. Sonae Sierra Brasil acquired an additional 30% ownership interest in Shopping Plaza Sul in exchange for a 22% stake in Shopping Penha and $29 million in cash. As a result of this transaction, Sonae Sierra Brasil increased its interest in Shopping Plaza Sul to 60% and decreased its interest in Shopping Penha to 51%. Shopping Plaza Sul consists of 248,000 square feet of gross leasable area and generated sales per square foot of $960 in 2011, while Shopping Penha is a 319,000 square foot shopping center also located in Sao Paulo that generated sales per square foot of $660 in 2011.
In January 2012, affiliates of the Company and The Blackstone Group L.P. (“Blackstone”) formed a joint venture which is expected to acquire a portfolio of 46 shopping centers currently owned by EPN Group (the “EDT Retail Portfolio”) valued at approximately $1.4 billion, including assumed debt of $640 million and at least $305 million of anticipated new financings. An affiliate of Blackstone will own 95% of the common equity of the joint venture and the remaining 5% interest will be owned by an affiliate of DDR. DDR is also expected to invest $150 million in preferred equity in the venture with a fixed dividend rate of 10%, and will continue to provide leasing and management services for the portfolio. In addition, DDR will have the right of first offer to acquire ten of the assets. The Company entered into forward sale agreements to issue 19.0 million of its common shares at a price of $12.95 per share and expects to use the net proceeds to fund its investment in the joint venture and to repay corporate debt. The Company expects the settlement of the forward sale agreements to be on or about June 29, 2012.
In January 2012, the Company completed $353 million in new long-term financings, comprised of a $250 million unsecured term loan (“Term Loan”) and a $103 million mortgage loan (“Mortgage Loan”). These financings address substantially all of the Company’s 2012 consolidated debt maturities. The Term Loan consists of a $200 million tranche that currently bears interest at a rate of LIBOR plus 210 basis points and matures on January 31, 2019; and a $50 million tranche that currently bears interest at a rate of LIBOR plus 170 basis points and matures on January 31, 2017. Borrowings on the Term Loan bear interest at LIBOR plus a margin based upon DDR’s long-term senior unsecured debt ratings. Additionally, the Company entered into interest rate swaps on the $200 million, seven-year tranche to fix the interest rate at 3.6%. Proceeds from the Term Loan were used to retire the remaining $180 million aggregate principal amount of convertible notes that matured in March 2012, to reduce the outstanding balances under the Company’s revolving credit facilities, and for general corporate purposes. The Mortgage Loan has a seven-year term and bears interest at 3.4%.
DISPOSITIONS
The Company sold six consolidated assets, aggregating approximately 0.4 million square feet, in the first quarter of 2012, generating gross proceeds of approximately $12.2 million. In addition, the Company sold $27.4 million of consolidated non-income producing assets of which the Company’s proportionate share was $20.9 million. The Company recorded an aggregate net gain of approximately $0.7 million related to asset sales in the first quarter of 2012.
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In the first quarter of 2012, the Company’s unconsolidated joint ventures sold assets generating gross proceeds of approximately $5.2 million of which the Company’s proportionate share was $0.8 million. The aggregate gain for these transactions, including Sonae Sierra Brasil’s partial asset sale, was approximately $13.7 million of which the Company’s proportionate share was $2.9 million.
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 (iv) 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 adding 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 as affirmed by NAREIT on October 31, 2011. Other real estate companies may calculate FFO and operating FFO in a different manner. FFO excluding the net non-operating items detailed below 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 in the financial highlights section of the Company’s quarterly supplement.
SAFE HARBOR
DDR 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, the ability of the joint venture between affiliates of the Company and Blackstone to successfully complete the acquisition of the EDT Retail Portfolio; 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, 2012. For additional factors that could cause the results of the Company to differ materially from those indicated in the
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forward-looking statements, please refer to the Company’s Form 10-K for the year ended December 31, 2011. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
ABOUT DDR
DDR is an owner and manager of 469 value-oriented shopping centers representing 119 million square feet in 39 states, Puerto Rico and Brazil. 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 atwww.ddr.com.
CONFERENCE CALL INFORMATION & SUPPLEMENTAL MATERIALS
A copy of the Company’s Supplemental Financial/Operational package is available to all interested parties upon request to Samir Khanal, 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 2, 2012, at 10:00 a.m. Eastern Daylight Time. To participate, please dial 866.510.0704 (domestic), or 617.597.5362 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the passcode: 57201689. Access to the live call and replay will also be available through the Company’s website. The replay will be available through May 9, 2012.
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DDR Corp.
Financial Highlights
(In thousands)
Three-Month Periods Ended March 31, | ||||||||
2012 | 2011 | |||||||
Revenues: | ||||||||
Minimum rents (A) | $ | 131,862 | $ | 126,606 | ||||
Percentage and overage rents (A) | 1,610 | 1,882 | ||||||
Recoveries from tenants | 43,365 | 44,014 | ||||||
Ancillary and other property income | 6,199 | 6,898 | ||||||
Management, development and other fee income | 11,754 | 11,751 | ||||||
Other (B) | 581 | 1,120 | ||||||
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195,371 | 192,271 | |||||||
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Expenses: | ||||||||
Operating and maintenance | 34,343 | 35,479 | ||||||
Real estate taxes | 25,559 | 25,221 | ||||||
Impairment charges (C) | 13,517 | 3,856 | ||||||
General and administrative | 19,012 | 29,378 | ||||||
Depreciation and amortization | 60,306 | 53,122 | ||||||
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152,737 | 147,056 | |||||||
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Other income (expense): | ||||||||
Interest income | 1,841 | 2,799 | ||||||
Interest expense (D) | (56,746 | ) | (57,298 | ) | ||||
Loss on debt retirement, net(E) | (5,602 | ) | — | |||||
Gain on equity derivative instruments | — | 21,926 | ||||||
Other (expense) income, net (F) | (1,602 | ) | 1,341 | |||||
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(62,109 | ) | (31,232 | ) | |||||
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(Loss) income before earnings from equity method investments and other items | (19,475 | ) | 13,983 | |||||
Equity in net income of joint ventures(G) | 8,248 | 1,974 | ||||||
Impairment of joint venture investments(C) | (560 | ) | (35 | ) | ||||
Gain on change in control of interests | — | 21,729 | ||||||
Tax expense of taxable REIT subsidiaries and state franchise and income taxes | (179 | ) | (326 | ) | ||||
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(Loss) income from continuing operations | (11,966 | ) | 37,325 | |||||
Loss from discontinued operations(H) | (3,580 | ) | (1,085 | ) | ||||
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(Loss) income before gain (loss) on disposition of real estate | (15,546 | ) | 36,240 | |||||
Gain (loss) on disposition of real estate, net of tax | 665 | (861 | ) | |||||
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Net (loss) income | (14,881 | ) | 35,379 | |||||
Income attributable to non-controlling interests | (176 | ) | (67 | ) | ||||
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Net (loss) income attributable to DDR | $ | (15,057 | ) | $ | 35,312 | |||
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Preferred dividends | 6,967 | 10,567 | ||||||
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Net (loss) income applicable to common shareholders | $ | (22,024 | ) | $ | 24,745 | |||
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Funds From Operations (“FFO”): | ||||||||
Net (loss) income applicable to common shareholders | $ | (22,024 | ) | $ | 24,745 | |||
Depreciation and amortization of real estate investments | 58,447 | 53,803 | ||||||
Equity in net income of joint ventures(G) | (8,248 | ) | (1,974 | ) | ||||
Impairment of depreciable joint venture investments | 560 | 35 | ||||||
Joint ventures’ FFO(G) | 13,985 | 14,747 | ||||||
Non-controlling interests (OP Units) | 48 | 16 | ||||||
Impairment of depreciable real estate assets, net of non-controlling interests | 17,340 | 1,983 | ||||||
Gain on disposition of depreciable real estate, net | (360 | ) | (400 | ) | ||||
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FFO applicable to common shareholders | $ | 59,748 | $ | 92,955 | ||||
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Non-operating items, net(I) | 7,058 | (29,765 | ) | |||||
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Operating FFO | $ | 66,806 | $ | 63,190 | ||||
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Earnings per share – Diluted (J) | $ | (0.08 | ) | $ | 0.01 | |||
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Funds From Operations – Diluted (J) | $ | 0.21 | $ | 0.27 | ||||
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Operating Funds From Operations – Diluted (J) | $ | 0.24 | $ | 0.24 | ||||
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DDR Corp.
Financial Highlights
(In thousands)
Selected Balance Sheet Data
March 31, 2012 | December 31, 2011 | |||||||
Assets: | ||||||||
Real estate and rental property: | ||||||||
Land | $ | 1,843,304 | $ | 1,844,125 | ||||
Buildings | 5,445,207 | 5,461,122 | ||||||
Fixtures and tenant improvements | 389,344 | 379,965 | ||||||
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7,677,855 | 7,685,212 | |||||||
Less: Accumulated depreciation | (1,568,138 | ) | (1,550,066 | ) | ||||
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6,109,717 | 6,135,146 | |||||||
Land held for development and construction in progress | 576,107 | 581,627 | ||||||
Real estate held for sale, net | 8,025 | 2,290 | ||||||
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Real estate, net | 6,693,849 | 6,719,063 | ||||||
Investments in and advances to joint ventures | 363,706 | 353,907 | ||||||
Cash | 16,088 | 41,206 | ||||||
Restricted cash | 23,127 | 30,983 | ||||||
Notes receivable, net | 95,104 | 93,905 | ||||||
Receivables, including straight-line rent, net | 104,830 | 117,463 | ||||||
Other assets, net | 115,067 | 112,898 | ||||||
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$ | 7,411,771 | $ | 7,469,425 | |||||
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Liabilities & Equity: | ||||||||
Indebtedness: | ||||||||
Revolving credit facilities | $ | 75,968 | $ | 142,421 | ||||
Unsecured debt | 1,938,255 | 2,139,718 | ||||||
Unsecured term loan | 250,000 | — | ||||||
Mortgage and other secured debt | 1,872,694 | 1,822,445 | ||||||
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4,136,917 | 4,104,584 | |||||||
Dividends payable | 40,269 | 29,128 | ||||||
Other liabilities | 211,308 | 257,821 | ||||||
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Total liabilities | 4,388,494 | 4,391,533 | ||||||
Preferred shares | 375,000 | 375,000 | ||||||
Common shares | 27,756 | 27,711 | ||||||
Paid-in-capital | 4,139,124 | 4,138,812 | ||||||
Accumulated distributions in excess of net income | (1,548,678 | ) | (1,493,353 | ) | ||||
Deferred compensation obligation | 13,374 | 13,934 | ||||||
Accumulated other comprehensive income | 3,720 | (1,403 | ) | |||||
Less: Common shares in treasury at cost | (13,249 | ) | (15,017 | ) | ||||
Non-controlling interests | 26,230 | 32,208 | ||||||
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Total equity | 3,023,277 | 3,077,892 | ||||||
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$ | 7,411,771 | $ | 7,469,425 | |||||
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DDR Corp.
Financial Highlights
(A) | The increase in base and percentage rental revenues for the three-month period ended March 31, 2012 is as follows (in millions): |
Increase (decrease) | ||||
Comparable portfolio properties | $ | 0.8 | ||
Acquisition of shopping centers | 4.8 | |||
Development or redevelopment properties | (0.7 | ) | ||
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$ | 4.9 | |||
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Revenue resulting from the recognition of straight-line rents, including discontinued operations, is as follows (in millions):
Three-Month Periods Ended March 31, | ||||||||
2012 | 2011 | |||||||
Straight-line rents | $ | 0.4 | $ | 0.3 |
(B) | Other revenues were comprised of the following (in millions): |
Three-Month Periods Ended March 31, | ||||||||
2012 | 2011 | |||||||
Lease termination fees | $ | 0.5 | $ | 0.6 | ||||
Financing fees | — | 0.4 | ||||||
Other miscellaneous | 0.1 | 0.1 | ||||||
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$ | 0.6 | $ | 1.1 | |||||
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(C) | The Company recorded impairment charges during the three-month periods ended March 31, 2012 and 2011, on the following (in millions): |
Three-Month Periods Ended March 31, | ||||||||
2012 | 2011 | |||||||
Undeveloped land | $ | — | $ | 3.8 | ||||
Assets marketed for sale | 13.5 | — | ||||||
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Total continuing operations | 13.5 | 3.8 | ||||||
Sold assets or assets held for sale | 3.8 | 2.0 | ||||||
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Total discontinued operations | 3.8 | 2.0 | ||||||
Joint venture investments | 0.6 | — | ||||||
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Total impairment charges | $ | 17.9 | $ | 5.8 | ||||
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(D) | The Company recorded the following in connection with its outstanding convertible debt (in millions): |
Three-Month Periods Ended March 31, | ||||||||
2012 | 2011 | |||||||
Non-cash interest expense related to amortization of the debt discount | $ | 3.2 | $ | 3.8 |
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DDR Corp.
Financial Highlights
(E) | For the three months ended March 31, 2012, the Company repurchased $25.5 million of its 9.625% unsecured senior notes at a premium to par value. |
(F) | Other income (expenses) were comprised of the following (in millions): |
Three-Month Periods Ended March 31, | ||||||||
2012 | 2011 | |||||||
Litigation-related expenses | $ | (0.7 | ) | $ | (1.0 | ) | ||
Debt extinguishment costs, net | (0.3 | ) | (0.2 | ) | ||||
Settlement of lease liability obligation | — | 2.6 | ||||||
Transaction and other expenses | (0.6 | ) | (0.1 | ) | ||||
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$ | (1.6 | ) | $ | 1.3 | ||||
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(G) | At March 31, 2012 and 2011, the Company had an investment in joint ventures, excluding consolidated joint ventures, in 172 and 191 shopping center properties, respectively. |
(H) | The operating results related to assets classified as discontinued operations are summarized as follows (in millions): |
Three-Month Periods Ended March 31, | ||||||||
2012 | 2011 | |||||||
Revenues | $ | 1.3 | $ | 11.0 | ||||
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Operating expenses | 0.7 | 4.3 | ||||||
Impairment charges | 3.8 | 2.0 | ||||||
Interest, net | 0.2 | 3.0 | ||||||
Depreciation and amortization | 0.3 | 3.0 | ||||||
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Total expenses | 5.0 | 12.3 | ||||||
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Loss before disposition of real estate | (3.7 | ) | (1.3 | ) | ||||
Gain on disposition of real estate, net | 0.1 | 0.2 | ||||||
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Loss from discontinued operations | $ | (3.6 | ) | $ | (1.1 | ) | ||
|
|
|
|
(I) | The charges and gains excluded from Operating FFO for the three-month periods ended March 31, 2012 and 2011, respectively, are summarized as follows (in millions): |
Three-Month Periods Ended March 31, | ||||||||
2012 | 2011 | |||||||
Non-cash impairment charges – non-depreciable consolidated assets | $ | — | $ | 3.8 | ||||
Loss on debt retirement, net | 5.6 | — | ||||||
Other expense (income), net – litigation costs, debt extinguishment costs, lease liability settlement gain and other expenses | 1.7 | (1.3 | ) | |||||
Equity in net income of joint ventures – currency adjustments and other expenses | 0.1 | (0.4 | ) | |||||
(Gain) loss on disposition of non-depreciable real estate (land), net | (0.3 | ) | 1.0 | |||||
Executive separation charge | — | 10.7 | ||||||
Non-cash gain on equity derivative instruments (Otto Family warrants) | — | (21.9 | ) | |||||
Non-cash gain on change in control of interests | — | (21.7 | ) | |||||
|
|
|
| |||||
Total adjustments from FFO to operating FFO | $ | 7.1 | $ | (29.8 | ) | |||
|
|
|
|
9
DDR Corp.
Financial Highlights
(J) | The Company’s per share information is as follows: |
At March 31, | ||||||||
2012 | 2011 | |||||||
Common shares outstanding | 277.5 | 267.1 | ||||||
OP Units outstanding (“OP Units”) | 0.4 | 0.4 | ||||||
Three-Month Periods Ended March 31, | ||||||||
2012 | 2011 | |||||||
Earnings per common share: | ||||||||
Basic | $ | (0.08 | ) | $ | 0.10 | |||
|
|
|
| |||||
Diluted | $ | (0.08 | ) | $ | 0.01 | |||
|
|
|
| |||||
Basic – average shares outstanding | 275.2 | 256.0 | ||||||
|
|
|
| |||||
Diluted – average shares outstanding | 275.2 | 262.6 | ||||||
|
|
|
| |||||
Dividends Declared: | $ | 0.12 | $ | 0.04 | ||||
|
|
|
| |||||
FFO per share: | ||||||||
Basic | $ | 0.22 | $ | 0.36 | ||||
|
|
|
| |||||
Diluted | $ | 0.21 | $ | 0.27 | ||||
|
|
|
| |||||
Weighted average common shares outstanding | 277.2 | 258.2 | ||||||
|
|
|
| |||||
Assumed conversion of OP Units | 0.4 | 0.4 | ||||||
|
|
|
| |||||
FFO Weighted average common shares and OP Units – Basic | 277.6 | 258.6 | ||||||
|
|
|
| |||||
Assumed conversion of dilutive securities | 2.5 | 6.6 | ||||||
|
|
|
| |||||
FFO Weighted average common shares and OP Units – Diluted | 280.1 | 265.2 | ||||||
|
|
|
| |||||
Operating FFO: | ||||||||
Diluted | $ | 0.24 | $ | 0.24 | ||||
|
|
|
| |||||
Operating FFO Weighted average common shares and OP Units – Diluted | 280.1 | 265.2 | ||||||
|
|
|
|
10
DDR Corp.
Summary Results of Combined Unconsolidated Joint Ventures
(In thousands)
Combined condensed income statements
Three-Month Periods Ended March 31, | ||||||||
2012 | 2011 | |||||||
Revenues: | ||||||||
Minimum rents (A) | $ | 122,344 | $ | 120,639 | ||||
Percentage and overage rents | 501 | 757 | ||||||
Recoveries from tenants | 27,499 | 30,922 | ||||||
Other | 19,588 | 16,243 | ||||||
|
|
|
| |||||
169,932 | 168,561 | |||||||
Expenses: | ||||||||
Operating and maintenance | 39,366 | 39,341 | ||||||
Real estate taxes | 17,954 | 19,087 | ||||||
Impairment charges(B) | 1,347 | — | ||||||
|
|
|
| |||||
Net operating income | 111,265 | 110,133 | ||||||
Depreciation and amortization of real estate investments | 42,910 | 47,323 | ||||||
Interest expense | 58,182 | 57,051 | ||||||
|
|
|
| |||||
Income before other items | 10,173 | 5,759 | ||||||
Income tax expense | (6,029 | ) | (6,144 | ) | ||||
|
|
|
| |||||
Income (loss) from continuing operations | 4,144 | (385 | ) | |||||
Discontinued operations: | ||||||||
Income (loss) from operations | 126 | (306 | ) | |||||
Loss on disposition | (139 | ) | (863 | ) | ||||
|
|
|
| |||||
Income (loss) before gain on disposition of assets | 4,131 | (1,554 | ) | |||||
Gain on disposition of assets | 13,852 | — | ||||||
|
|
|
| |||||
Net income (loss) | 17,983 | (1,554 | ) | |||||
Non-controlling interests | (8,934 | ) | (2,375 | ) | ||||
|
|
|
| |||||
Net income (loss) attributable to unconsolidated joint ventures | $ | 9,049 | $ | (3,929 | ) | |||
|
|
|
| |||||
Net income at DDR’s ownership interests(C) | $ | 10,180 | $ | 3,899 | ||||
|
|
|
| |||||
FFO at DDR’s ownership interests (D) | $ | 13,985 | $ | 14,747 | ||||
|
|
|
|
11
DDR Corp.
Summary Results of Combined Unconsolidated Joint Ventures
(In thousands)
Combined condensed balance sheets
March 31, 2012 | December 31, 2011 | |||||||
Land | $ | 1,416,122 | $ | 1,400,469 | ||||
Buildings | 4,514,103 | 4,334,097 | ||||||
Fixtures and tenant improvements | 196,940 | 189,940 | ||||||
|
|
|
| |||||
6,127,165 | 5,924,506 | |||||||
Less: Accumulated depreciation | (840,360 | ) | (808,352 | ) | ||||
|
|
|
| |||||
5,286,805 | 5,116,154 | |||||||
Land held for development and construction in progress(E) | 137,979 | 239,036 | ||||||
|
|
|
| |||||
Real estate, net | 5,424,784 | 5,355,190 | ||||||
Cash and restricted cash | 479,397 | 308,008 | ||||||
Receivables, including straight-line rent, net | 102,493 | 108,038 | ||||||
Leasehold interests | 9,136 | 9,136 | ||||||
Other assets, net | 188,377 | 168,115 | ||||||
|
|
|
| |||||
$ | 6,204,187 | $ | 5,948,487 | |||||
|
|
|
| |||||
Mortgage debt(F) | $ | 3,925,260 | $ | 3,742,241 | ||||
Notes and accrued interest payable to DDR | 105,104 | 100,470 | ||||||
Other liabilities | 229,941 | 214,370 | ||||||
|
|
|
| |||||
4,260,305 | 4,057,081 | |||||||
Accumulated equity | 1,943,882 | 1,891,406 | ||||||
|
|
|
| |||||
$ | 6,204,187 | $ | 5,948,487 | |||||
|
|
|
|
12
DDR Corp.
Summary Results of Combined Unconsolidated Joint Ventures
(A) | Revenue resulting from the recognition of straight-line rents, including discontinued operations, is as follows (in millions): |
Three-Month Periods Ended March 31, | ||||||||
2012 | 2011 | |||||||
Straight-line rents | $ | 0.9 | $ | 0.6 | ||||
DDR’s proportionate share | 0.2 | 0.1 |
(B) | For the three-month period ended March 31, 2012, impairment charges were recorded primarily on assets that are in the process of being marketed for sale of which the Company’s proportionate share of the charges was approximately $0.5 million. |
(C) | Adjustments to the Company’s share of joint venture equity in net income primarily is related to basis differences impacting amortization and depreciation, impairment charges and (loss) gain on dispositions as follows (in millions): |
Three-Month Periods Ended March 31, | ||||||||
2012 | 2011 | |||||||
Net loss | $ | (1.9 | ) | $ | (1.9 | ) |
(D) | FFO and Operating FFO from unconsolidated joint ventures are summarized as follows (in millions): |
Three-Month Periods Ended March 31, | ||||||||
2012 | 2011 | |||||||
Net income (loss) attributable to unconsolidated joint ventures | $ | 9.1 | $ | (3.9 | ) | |||
(Gain) loss on sale of depreciable real estate | (13.7 | ) | 0.9 | |||||
Impairment of depreciable real estate assets | 1.3 | — | ||||||
Depreciation and amortization of real estate investments | 45.3 | 47.8 | ||||||
|
|
|
| |||||
FFO | $ | 42.0 | $ | 44.8 | ||||
|
|
|
| |||||
FFO at DDR ownership interests | $ | 14.0 | $ | 14.7 | ||||
|
|
|
| |||||
Operating FFO at DDR’s ownership interests(1) | $ | 14.1 | $ | 14.3 | ||||
|
|
|
| |||||
DDR joint venture distributions received, net | $ | 4.5 | $ | 26.9 | ||||
|
|
|
|
(1) | Excluded from operating FFO is the Company’s pro rata share of net charges included in equity in net income of joint ventures primarily related to foreign currency translation as disclosed on page 9 of this press release. |
13
DDR Corp.
Summary Results of Combined Unconsolidated Joint Ventures
(E) | Land held for development and construction in progress consists of the following (in millions): |
March 31, 2012 | December 31, 2011 | |||||||
Company’s proportionate share | $ | 45.2 | $ | 75.9 |
(F) | Mortgage debt consists of the following (in millions): |
March 31, 2012 | December 31, 2011 | |||||||
Company’s proportionate share | $ | 837.6 | $ | 772.9 | ||||
Non-recourse debt included above for which the Company has written its investment down to zero and is receiving no allocation of income, loss or FFO | 48.1 | 48.1 |
14
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
FFO Reconciliation and Other Information
(In Millions, Except Per Share Information)
Three Months Ended March 31, | ||||||||
2012 | 2011 | |||||||
Funds From Operations: | ||||||||
Net (loss) income applicable to common shareholders | $ | (22.0 | ) | $ | 24.7 | |||
Depreciation and amortization of real estate investments | 58.4 | 53.8 | ||||||
Equity in net income of joint ventures | (8.2 | ) | (1.9 | ) | ||||
Impairment of depreciable joint venture investments | 0.6 | — | ||||||
Joint ventures’ FFO | 14.0 | 14.7 | ||||||
Impairment of depreciable real estate assets, net of non-controlling interests | 17.3 | 2.0 | ||||||
Gain on disposition of depreciable real estate, net | (0.4 | ) | (0.3 | ) | ||||
|
|
|
| |||||
Funds From Operations Available to Common Shareholders | 59.7 | 93.0 | ||||||
Preferred dividends | 7.0 | 10.6 | ||||||
|
|
|
| |||||
Funds From Operations | $ | 66.7 | $ | 103.6 | ||||
|
|
|
| |||||
Funds From Operations Available to Common Shareholders | $ | 59.7 | $ | 93.0 | ||||
Reconciliation to Operating FFO: | ||||||||
Non-cash impairment charges - non-depreciable consolidated assets | — | 3.8 | ||||||
Loss on debt retirement, net | 5.6 | — | ||||||
Other expense (income), net - litigation costs, debt extinguishment costs, lease liability settlement gain and other expenses | 1.7 | (1.3 | ) | |||||
Equity in net income of joint ventures - currency adjustments and other expenses | 0.1 | (0.4 | ) | |||||
(Gain) loss on disposition of non depreciable real estate (land), net | (0.3 | ) | 1.0 | |||||
Executive separation charge | — | 10.7 | ||||||
Non-cash gain on equity derivative instruments (Otto Family warrants) | — | (21.9 | ) | |||||
Non-cash gain on change in control of interests | — | (21.7 | ) | |||||
|
|
|
| |||||
Total non-operating items | $ | 7.1 | $ | (29.8 | ) | |||
|
|
|
| |||||
Operating FFO Available to Common Shareholders | $ | 66.8 | $ | 63.2 | ||||
|
|
|
| |||||
Per Share Information: | ||||||||
Funds From Operations - diluted | $ | 0.21 | $ | 0.27 | ||||
Operating FFO - diluted | $ | 0.24 | $ | 0.24 | ||||
Common Shares and OP Units: | ||||||||
Outstanding | 277.9 | 267.5 | ||||||
Weighted average - diluted (FFO & OFFO) | 280.1 | 265.2 |
15
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Additional Financial Disclosures
(In Millions, Except Per Share Information)
Three Months Ended March 31, | ||||||||
2012 | 2011 | |||||||
Dividends / Payout Ratio: | ||||||||
Common share dividends and operating partnership interests - per share | $ | 0.12 | $ | 0.04 | ||||
Common share dividends and operating partnership interests - declared | $ | 33.3 | $ | 10.7 | ||||
Dividend payout ratio | 49.9 | % | 16.9 | % | ||||
Revenues: | ||||||||
DDR revenues | $ | 196.7 | $ | 203.3 | ||||
Joint venture & managed revenues | 207.3 | 208.8 | ||||||
|
|
|
| |||||
Total revenues(1) | $ | 404.0 | $ | 412.1 | ||||
|
|
|
| |||||
G&A Expenses(2) | $ | 19.0 | $ | 18.7 | ||||
G&A Expenses as % of Total Revenues(2) | 4.7 | % | 4.5 | % | ||||
Net Operating Income: | ||||||||
DDR net operating income | $ | 136.2 | $ | 138.3 | ||||
Joint venture net operating income (at 100%) | 112.8 | 109.1 | ||||||
|
|
|
| |||||
Total net operating income(1) | $ | 249.0 | $ | 247.4 | ||||
|
|
|
| |||||
Real Estate at Cost: | ||||||||
DDR real estate at cost | $ | 8,282.3 | $ | 8,496.7 | ||||
Joint venture real estate at cost (at 100%) | 6,265.1 | 6,651.6 | ||||||
|
|
|
| |||||
Total real estate at cost | $ | 14,547.4 | $ | 15,148.3 | ||||
|
|
|
| |||||
Non-Cash Disclosures (Income) / Expense: | ||||||||
Below market rent revenue(3) | $ | (0.6 | ) | $ | (0.2 | ) | ||
Straight-line rent revenue | (0.4 | ) | (0.3 | ) | ||||
Joint venture straight-line rent revenue | (0.9 | ) | (0.6 | ) | ||||
DDR’s prorata share of straight-line rent revenue | (0.2 | ) | (0.1 | ) | ||||
Straight-line ground rent expense(3) | 0.3 | 0.5 | ||||||
Debt premium amortization revenue(3) | (0.9 | ) | (0.5 | ) | ||||
Convertible debt accretion expense | 3.2 | 3.8 |
(1) | Includes activities from discontinued operations. |
(2) | The 2011 results exclude an executive separation charge of $10.7 million. Including this charge, G&A expenses were approximately 7.1% of total revenues for the three months ended March 31, 2011. |
(3) | Prorata share of joint venture is deminis. |
16
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Three Months Ended | ||||||||
(In Millions) | March 31, 2012 | December 31, 2011 | ||||||
Debt / EBITDA - Consolidated | ||||||||
EBITDA: | ||||||||
Net (loss) income attributable to DDR | $ | (15.1 | ) | $ | 5.2 | |||
Adjustments: | ||||||||
Impairment charges | 13.5 | 26.5 | ||||||
Executive separation charge | — | 1.4 | ||||||
Depreciation and amortization | 60.3 | 59.2 | ||||||
Depreciation attributable to non-controlling interests | (0.1 | ) | (0.1 | ) | ||||
Interest expense | 56.7 | 57.5 | ||||||
Interest expense attributable to non-controlling interests | (0.1 | ) | (0.2 | ) | ||||
Gain on change in control of interests and sale of interests | — | (2.5 | ) | |||||
Other expenses, net | 1.6 | 0.1 | ||||||
Equity in net (income) loss of joint ventures | (8.2 | ) | 2.2 | |||||
Impairment of joint venture investments | 0.6 | 1.3 | ||||||
Loss on debt retirement, net | 5.6 | — | ||||||
Income tax expense | 0.2 | — | ||||||
EBITDA adjustments from discontinued operations(1) | 4.3 | (26.4 | ) | |||||
(Gain) loss on disposition of real estate, net | (0.7 | ) | 1.4 | |||||
|
|
|
| |||||
EBITDA before JVs | 118.6 | 125.6 | ||||||
Pro rata share of JV FFO, net of interest expense | 14.0 | 14.2 | ||||||
Pro rata share of JV gain/loss on foreign currency adjustments and other | 0.1 | (0.5 | ) | |||||
|
|
|
| |||||
EBITDA Consolidated | $ | 132.7 | $ | 139.3 | ||||
EBITDA Consolidated - Annualized | $ | 530.8 | $ | 557.2 | ||||
Consolidated indebtedness | $ | 4,136.9 | $ | 4,104.6 | ||||
Non-controlling interests’ share of consolidated debt | (21.2 | ) | (21.7 | ) | ||||
Adjustment to reflect convertible debt at face value | 39.8 | 43.0 | ||||||
Adjustment to reflect assumed debt at face value | (12.4 | ) | (13.4 | ) | ||||
|
|
|
| |||||
Total consolidated indebtedness | 4,143.1 | 4,112.5 | ||||||
Cash and restricted cash, net of non-controlling interests | (38.5 | ) | (65.5 | ) | ||||
|
|
|
| |||||
Total Consolidated Indebtedness, net of Cash | $ | 4,104.6 | $ | 4,047.0 | ||||
Debt / EBITDA - Consolidated | 7.73 | 7.26 | ||||||
|
|
|
| |||||
Debt / EBITDA - Pro rata | ||||||||
EBITDA before JVs | $ | 118.6 | $ | 125.6 | ||||
Pro rata share of JV EBITDA | 26.3 | 27.3 | ||||||
|
|
|
| |||||
EBITDA including Pro rata Share of JVs | $ | 144.9 | $ | 152.9 | ||||
EBITDA including Pro rata Share of JVs - Annualized | $ | 579.6 | $ | 611.6 | ||||
Total consolidated indebtedness, net of cash | $ | 4,104.6 | $ | 4,047.0 | ||||
Pro rata share of JV debt(2) | 837.4 | 772.7 | ||||||
|
|
|
| |||||
Total pro rata indebtedness | 4,942.0 | 4,819.7 | ||||||
Pro rata share of JV cash and restricted cash | (149.3 | ) | (93.8 | ) | ||||
|
|
|
| |||||
Pro rata Indebtedness, net of Cash | $ | 4,792.7 | $ | 4,725.9 | ||||
Debt / EBITDA - Pro rata | 8.27 | 7.73 | ||||||
|
|
|
|
X.XXX.XX | X.XXX.XX | |||||||
(1) Discontinued operations includes the following EBITDA adjustments: | ||||||||
Impairment charges | $ | 3.8 | $ | 19.6 | ||||
Interest expense, net | 0.1 | 0.8 | ||||||
Depreciation and amortization | 0.3 | 1.1 | ||||||
Gain on disposition of real estate, net | (0.1 | ) | (55.6 | ) | ||||
Debt extinguishment costs and other | 0.2 | 7.7 | ||||||
|
|
|
| |||||
$ | 4.3 | $ | (26.4 | ) |
(2) | Includes $48.1 million at both March 31, 2012 and December 31, 2011 of the Company’s pro rata share of non-recourse debt associated with equity method JVs for which the Company has written its investment down to zero and is receiving no allocation of income. |
17
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Significant Accounting Policies
Revenues
• | Percentage and overage rents are recognized after the tenants’ reported sales have exceeded the applicable sales breakpoint. |
• | Revenues associated with tenant reimbursements are recognized in the period in which the expenses are incurred based upon the provisions of tenants’ leases. |
• | Lease termination fees are included in other revenue and recognized upon termination of a tenant’s lease, which generally coincides with the receipt of cash. |
• | Consolidated base rental revenue includes income from ground leases of $5.4 million for the three months ended March 31, 2012. |
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. For the three months ended March 31, 2012, the Company expensed $2.2 million in internal leasing costs. All internal and external costs associated with acquisitions are expensed as incurred. The Company does not capitalize any executive officer compensation. |
Deferred Financing Costs
• | Costs incurred in obtaining long-term financing are included in deferred charges and are amortized on a straight-line basis over the terms of the related debt agreements; 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. |
• | Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets as follows: |
Buildings | 30 to 40 years | |
Building Improvements | 5 to 20 years | |
Furniture/Fixtures and Tenant Improvements | Useful lives, which approximate lease terms, where applicable |
18
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Significant Accounting Policies (Continued)
• | 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. |
• | Construction in progress includes shopping center developments and significant expansions and redevelopments. |
• | The Company accounts for the acquisition of a partner’s interest in an unconsolidated joint venture in which a change in control of the asset has occurred at fair value. |
Capitalization
• | 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. |
Three Months Ended March 31, | ||||||||
Capitalized Costs (In Millions) | 2012 | 2011 | ||||||
Interest expense | $ | 3.1 | $ | 3.0 | ||||
Construction administration costs | $ | 2.3 | $ | 2.3 |
• | Interest expense and real estate taxes incurred during the construction period are capitalized and depreciated over the building life. |
• | During the three months ended March 31, 2012, the Company expensed $0.7 million in operating costs related to development projects that have been suspended. |
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. |
19
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Other Real Estate Information
Total Capital Expenditures
• | The Company incurred the following estimated leasing and maintenance capital expenditures: |
Capital Expenditures (In Millions) | Consolidated Three Months Ended March 31, 2012 | Unconsolidated at Prorata Three Months Ended March 31, 2012 | ||||||
Leasing | $ | 9.2 | $ | 1.3 | ||||
Maintenance | 1.0 | — | ||||||
|
|
|
| |||||
Total Capital Expenditures | $ | 10.2 | $ | 1.3 | ||||
|
|
|
| |||||
Per Square Foot of Owned GLA | ||||||||
Leasing | $ | 0.19 | $ | 0.23 | ||||
Maintenance | 0.02 | — | ||||||
|
|
|
| |||||
Total Capital Expenditures | $ | 0.21 | $ | 0.23 | ||||
|
|
|
|
Undeveloped Land
• | Included in Land is undeveloped real estate, comprised primarily of outlots or expansion pads adjacent to the shopping centers owned by the Company. |
• | At December 31, 2011, the Company estimated the value of its consolidated and proportionate share of joint venture undeveloped land adjacent to existing shopping centers to be approximately $35 million. This value has not been adjusted to reflect changes in market activity subsequent to December 31, 2011. |
Non-Income Producing Assets
• | There are six consolidated shopping centers and the Company’s corporate headquarters, which total 0.7 million square feet with a land and building cost basis of approximately $100 million, considered non-incoming producing at March 31, 2012. |
20
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Joint Venture Investment Summary(1)
($ and GLA in millions; all values at 100%)
Legal Name | Partner | DDR Ownership % | # of Operating Properties | GLA | ABR | Gross Asset Book Value | Debt | |||||||||||||||||||
Unconsolidated Joint Ventures | ||||||||||||||||||||||||||
DDRTC Core Retail Fund, LLC | An Affiliate of TIAA-CREF | 15 | % | 40 | 11.5 | $ | 132.0 | $ | 1,994.8 | $ | 1,164.0 | |||||||||||||||
DDR Domestic Retail Fund I | Various Institutional Investors | 20 | % | 60 | 8.2 | 88.1 | 1,444.7 | 930.6 | ||||||||||||||||||
Sonae Sierra Brasil BV Sarl | Sonae Sierra, SGPS, SA | 33.3 | % | 11 | 4.1 | 146.8 | 867.6 | 392.3 | ||||||||||||||||||
DDR-SAU Retail Fund, LLC | State of Utah | 20 | % | 27 | 2.4 | 23.4 | 307.2 | 183.1 | ||||||||||||||||||
DDR Markaz II LLC | Kuwait Financial Centre | 20 | % | 13 | 1.6 | 15.6 | 206.2 | 148.8 | ||||||||||||||||||
DDRA Community Centers Five, L.P. | DRA Advisors | 50 | % | 3 | 1.3 | 18.8 | 184.1 | 209.6 | ||||||||||||||||||
Other Unconsolidated JV Interests | Various | Various | 18 | 2.7 | 26.8 | 276.1 | 184.0 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
172 | 31.8 | $ | 451.5 | $ | 5,280.7 | $ | 3,212.4 | |||||||||||||||||||
Unconsolidated Joint Ventures—Other Investments | ||||||||||||||||||||||||||
Coventry II Joint Ventures | Coventry II Fund | 10%-20% | 47 | (2) | 5.9 | 56.5 | $ | 861.4 | $ | 626.9 | ||||||||||||||||
Other Unconsolidated Interests | EPN | 0 | % | 7 | (3) | 0.8 | 8.7 | 123.0 | 86.0 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total Unconsolidated Joint Ventures | 226 | 38.5 | $ | 516.7 | $ | 6,265.1 | $ | 3,925.3 |
(1) | DDR’s investment in JVs may be recorded at different amounts than the proportionate equity on the joint ventures’ balance sheet. |
(2) | Includes 41 assets in which the Company does not have an economic interest and one asset in which development was suspended. Effective January 1, 2012, these assets are no longer managed by DDR. |
(3) | Represents 7 of the 46 EPN shopping centers that are expected to be acquired through a joint venture agreement with Blackstone in June 2012. |
21
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Joint Venture Combining Financial Statements
(In Millions)
Combining Condensed Statements of Operations
For the Three Months Ended March 31, 2012
Total Unconsolidated JVs(1) | DDR’s Pro rata Share(1) | |||||||
Revenues: | ||||||||
Minimum rents | $ | 122.3 | $ | 26.8 | ||||
Percentage and overage rents | 0.5 | — | ||||||
Recoveries from tenants | 27.5 | 5.3 | ||||||
Other | 19.6 | 6.3 | ||||||
|
|
|
| |||||
169.9 | 38.4 | |||||||
Expenses: | ||||||||
Operating and maintenance | (39.4 | ) | (8.1 | ) | ||||
Real estate taxes | (18.0 | ) | (3.5 | ) | ||||
Impairment charges | (1.3 | ) | (0.2 | ) | ||||
|
|
|
| |||||
Net operating income | 111.2 | 26.6 | (3) | |||||
Depreciation and amortization expense | (42.9 | ) | (8.1 | ) | ||||
Interest expense | (58.2 | ) | (10.8 | ) | ||||
|
|
|
| |||||
Income before other items | 10.1 | 7.7 | ||||||
Income tax expense | (6.0 | ) | (2.0 | ) | ||||
|
|
|
| |||||
Income from continuing operations | 4.1 | 5.7 | ||||||
Discontinued operations: | ||||||||
Income from operations | 0.1 | — | ||||||
Loss on disposition | (0.1 | ) | — | |||||
|
|
|
| |||||
Income before gain on disposition of assets | 4.1 | 5.7 | ||||||
Gain on disposition of assets | 13.9 | 4.5 | ||||||
Disproportionate share of income (loss) | — | | — | (2)(3) | ||||
|
|
|
| |||||
Net Income | $ | 18.0 | $ | 10.2 | ||||
Non-controlling interests | (8.9 | ) | (3.0 | ) | ||||
|
|
|
| |||||
Net Income attributable to unconsolidated joint ventures | $ | 9.1 | $ | 7.2 | ||||
DDR ownership interests | 10.2 | 10.2 | ||||||
Amortization of basis differential | (1.9 | ) | — | |||||
|
|
|
| |||||
$ | 8.3 | $ | 10.2 | |||||
|
|
|
| |||||
Funds From Operations: | ||||||||
Net Income attributable to unconsolidated joint ventures | $ | 9.1 | $ | 7.2 | ||||
Depreciation of real property | 45.3 | 8.9 | ||||||
Gain on disposition of depreciable real estate | (13.7 | ) | (4.5 | ) | ||||
Impairments of depreciable real estate | 1.3 | 0.2 | ||||||
Disproportionate share of income | — | 2.2 | (2) | |||||
|
|
|
| |||||
$ | 42.0 | $ | 14.0 | |||||
|
|
|
| |||||
FFO at DDR ownership interests | $ | 14.0 | ||||||
|
| |||||||
Operating FFO at DDR ownership interests | $ | 14.1 | ||||||
|
|
(1) | The financial statements of Sonae Sierra Brasil are translated into U.S. dollars using an average exchange rate for each period for revenues, expenses, gains and losses. |
(2) | Adjustments represent the effect of promoted equity structures and minority interests. |
(3) | DDR’s pro rata share of NOI including discontinued operations and promoted equity structures and minority interests is $26.3 million for the three-month period ended March 31, 2012. |
22
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Joint Venture Combining Financial Statements
(In Millions)
Combining Condensed Balance Sheets
Total Unconsolidated JVs (1) | ||||||||
March 31, 2012 | December 31, 2011 | |||||||
Land | $ | 1,416.1 | $ | 1,400.5 | ||||
Buildings | 4,514.1 | 4,334.1 | ||||||
Fixtures and tenant improvements | 196.9 | 190.0 | ||||||
|
|
|
| |||||
6,127.1 | 5,924.6 | |||||||
Less: Accumulated depreciation | (840.3 | ) | (808.3 | ) | ||||
|
|
|
| |||||
5,286.8 | 5,116.3 | |||||||
Land held for development and construction in progress | 138.0 | 239.0 | ||||||
|
|
|
| |||||
Real estate, net | 5,424.8 | 5,355.3 | ||||||
Cash and restricted cash | 479.4 | 308.0 | ||||||
Receivables, including straight-line rent, net | 102.5 | 108.0 | ||||||
Leasehold interests | 9.1 | 9.1 | ||||||
Other assets, net | 188.4 | 168.1 | ||||||
|
|
|
| |||||
$ | 6,204.2 | $ | 5,948.5 | |||||
|
|
|
| |||||
Mortgage debt | $ | 3,925.3 | (3) | $ | 3,742.2 | (3) | ||
Notes and accrued interest payable to DDR | 105.1 | 100.5 | ||||||
Other liabilities | 229.9 | 214.4 | ||||||
|
|
|
| |||||
4,260.3 | 4,057.1 | |||||||
Accumulated equity | 1,943.9 | 1,891.4 | ||||||
|
|
|
| |||||
$ | 6,204.2 | $ | 5,948.5 | |||||
|
|
|
| |||||
DDR’s Pro rata Share(1) | ||||||||
March 31, 2012 | December 31, 2011 | |||||||
Land | $ | 279.9 | $ | 274.4 | ||||
Buildings | 950.9 | 893.1 | ||||||
Fixtures and tenant improvements | 48.8 | 47.4 | ||||||
|
|
|
| |||||
1,279.6 | 1,214.9 | |||||||
Less: Accumulated depreciation | (188.1 | ) | (181.8 | ) | ||||
|
|
|
| |||||
1,091.5 | 1,033.1 | |||||||
Land held for development and construction in progress | 45.2 | 75.9 | ||||||
|
|
|
| |||||
Real estate, net | 1,136.7 | 1,109.0 | ||||||
|
|
|
| |||||
Cash and restricted cash | 149.3 | 93.8 | ||||||
Receivables, including straight-line rent, net | 26.5 | 27.5 | ||||||
Leasehold interests | 1.8 | 1.8 | ||||||
Other assets, net | 40.0 | 40.5 | ||||||
Disproportionate share of equity | (17.6 | )(2) | (18.4 | )(2) | ||||
|
|
|
| |||||
$ | 1,336.7 | $ | 1,254.2 | |||||
|
|
|
| |||||
Mortgage debt | $ | 837.6 | (3) | $ | 772.9 | (3) | ||
Notes and accrued interest payable to DDR | 12.5 | 12.0 | ||||||
Other liabilities | 54.3 | 49.9 | ||||||
|
|
|
| |||||
904.4 | 834.8 | |||||||
Accumulated equity | 445.1 | 433.0 | ||||||
Disproportionate share of equity | (12.8 | )(2) | (13.6 | )(2) | ||||
|
|
|
| |||||
$ | 1,336.7 | $ | 1,254.2 | |||||
|
|
|
|
(1) | The financial statements of Sonae Sierra Brasil are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities. |
(2) | Adjustments represent the effect of promoted equity structures and minority interests. |
(3) | Includes approximately $300.2 million and $300.3 million of mortgage debt at March 31, 2012 and December 31, 2011, respectively, of which the Company’s prorata share of non-recourse mortgage debt is $48.1 million, for both periods, associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income. |
23
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Summary of Property Acquisitions
($ in Millions, GLA in Thousands of SF)
$xxxxx | $xxxxx | $xxxxx | $xxxxx | $xxxxx | ||||||||||||
Date | Location | Property | DDR Own. % | Total GLA | Aggregate Pro rata Price | |||||||||||
3/12 | Tinley Park, IL | Brookside Marketplace | 100 | % | 560.7 | $ | 47.4 | |||||||||
|
|
|
| |||||||||||||
560.7 | $ | 47.4 |
Summary of Property Dispositions
($ in Millions, GLA in Thousands of SF)
$xxxxx | $xxxxx | $xxxxx | $xxxxx | $xxxxx | $xxxxx | |||||||||||||||
Date | Location | Joint Venture | DDR Own. % | Total GLA | Gross Price | Relinquished Debt | ||||||||||||||
1/12 | West Seneca, NY | 100 | % | 62.9 | $ | 2.5 | $ | — | ||||||||||||
1/12 | Concord, NC | 100 | % | 10.9 | 1.7 | — | ||||||||||||||
2/12 | Connellsville, PA | 100 | % | 10.9 | 3.0 | — | ||||||||||||||
2/12 | Tiffin, OH | 100 | % | 185.8 | 0.8 | — | ||||||||||||||
2/12 | Barboursville, WV | 100 | % | 70.9 | 1.6 | — | ||||||||||||||
2/12 | Tampa, FL | DDRTC | 15 | % | 28.5 | 4.0 | — | |||||||||||||
3/12 | Fort Worth, TX | 100 | % | 10.9 | 2.7 | — | ||||||||||||||
Various | Various | 100 | % | — | 28.5 | (1) | — | |||||||||||||
|
|
|
|
|
| |||||||||||||||
380.8 | $ | 44.8 | $ | — |
(1) | This includes the proceeds from the sale of land that was acquired for development in Yaroslavl, Russia. |
24
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Summary of Consolidated
Land Held for Development and Construction in Progress
($ In Millions, GLA in Thousands of SF)
As of March 31, 2012 | 2012 Activity | |||||||||||||||||||||||||||
Land | CIP | Total | Net Expenditures YTD | Net Projected Expenditures 2Q-4Q12(1) | Placed In Service YTD | To Be Placed In Service 2Q-4Q12 | ||||||||||||||||||||||
Ground up Development Projects Primarily on Hold | $ | 280.8 | $ | 150.8 | $ | 431.6 | $ | (29.2 | ) | $ | (76.7 | ) | $ | — | $ | — | ||||||||||||
Substantially Completed Projects Pending Lease Up | 32.5 | 33.8 | 66.3 | (1.5 | ) | 0.7 | — | 2.2 | ||||||||||||||||||||
Redevelopment Projects | 18.5 | 53.9 | 72.4 | 18.4 | 104.2 | 7.1 | 112.2 | |||||||||||||||||||||
Leasing Capital Expenditures | — | 5.8 | 5.8 | 9.2 | 17.1 | 6.8 | 20.0 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | 331.8 | $ | 244.3 | $ | 576.1 | $ | (3.1 | ) | $ | 45.3 | $ | 13.9 | $ | 134.4 |
Summary of Significant Consolidated Redevelopment Projects
Location | Project | Est. Total GLA | Est. Owned GLA | Est. Net Cost(1) | Cost Incurred To Date | Assets Placed in Service | Major Anchors Associated with | |||||||||||||||||
Denver, CO | Tamarac Square | 151.3 | 11.5 | $ | 2.1 | $ | 3.8 | $ | 1.7 | Target | ||||||||||||||
Littleton, CO | Aspen Grove | 46.7 | 46.7 | 13.6 | 1.1 | — | Alamo Drafthouse Cinema | |||||||||||||||||
Miami (Plantation), FL | The Fountains | 273.4 | 273.4 | 58.9 | 52.2 | 41.6 | Kohl’s, Dick’s Sporting Goods, Marshalls/HomeGoods, Total Wine | |||||||||||||||||
Bayamon, PR | Rexville Plaza | 43.8 | 43.8 | 7.4 | 3.7 | — | CVS, Marshalls | |||||||||||||||||
Hatillo, PR | Plaza Del Norte | 88.5 | 88.5 | 9.1 | 5.5 | 4.1 | JC Penney expansion, PetSmart Rooms to Go, TJ Maxx | |||||||||||||||||
Charleston, SC | Ashley Crossing | 124.4 | 124.4 | 8.9 | 5.9 | 5.1 | Kohl’s, Marshalls, Shoe Carnival | |||||||||||||||||
San Antonio, TX(2) | Terrell Plaza | 225.7 | 90.8 | 12.0 | 8.1 | 0.5 | Target | |||||||||||||||||
Midvale, UT | Family Center at Ft. Union | 82.7 | 78.7 | 11.3 | 2.7 | 2.6 | Dick’s Sporting Goods | |||||||||||||||||
Riverdale, UT | Family Center at Riverdale | 88.2 | 88.2 | 5.4 | 1.4 | — | Best Buy, Gordmans | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
1,124.7 | 846.0 | $ | 128.7 | $ | 84.4 | $ | 55.6 | |||||||||||||||||
CIP for projects listed above: | $ | 28.8 | ||||||||||||||||||||||
CIP for other Redevelopment Projects: | 43.6 | |||||||||||||||||||||||
|
| |||||||||||||||||||||||
Total amount included in CIP at March 31, 2012 for Redevelopment Projects: |
| $ | 72.4 |
(1) | Includes receipts and expected future reductions from land sales and reimbursements. |
(2) | Consolidated 50% Joint Venture |
25
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Summary of Joint Venture Land Held for Development and Construction in Progress
($ In Millions, GLA in Thousands of SF)
As of March 31, 2012 | 2012 Activity | |||||||||||||||||||||||||||
Land | CIP | Total | Net Expenditures YTD | Net Projected Expenditures 2Q-4Q12(1) | Placed In Service YTD | To Be Placed In Service 2Q-4Q12 (1) | ||||||||||||||||||||||
Substantially Completed Ground Up Developments | $ | — | $ | — | $ | — | $ | 13.3 | $ | 2.0 | $ | 108.2 | $ | 2.0 | ||||||||||||||
Ground up Development Projects in Progress | 35.4 | 91.7 | 127.1 | 17.2 | 139.2 | — | — | |||||||||||||||||||||
Substantially Completed Projects Pending Lease Up | 2.0 | 0.3 | 2.3 | 1.4 | 7.8 | 20.2 | 8.0 | |||||||||||||||||||||
Redevelopment Projects | — | 1.3 | 1.3 | 4.4 | 11.4 | 8.1 | 11.7 | |||||||||||||||||||||
Leasing Capital Expenditures | — | 7.3 | 7.3 | 9.5 | 30.7 | 6.2 | 38.5 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | $ | 37.4 | $ | 100.6 | $ | 138.0 | $ | 45.8 | $ | 191.1 | $ | 142.7 | $ | 60.2 |
Summary of Significant Joint Venture Substantially Completed Development Projects
Location | Project | DDR’s Effective Own. % | Est. Total GLA | Est. Owned GLA | Est. Net Cost(1) | Cost Incurred To Date | Assets Placed in Service | Major Anchors Associated | ||||||||||||||||||||
Uberlandia, Brazil | Patio Uberlandia | 33.3 | % | 488.1 | 488.1 | 103.5 | 108.2 | 108.2 | Walmart, Cinemark, Centuaro, Leroy Merlin, Renner, Fast Shop, Kalunga, Livraria Leitura, Memove, Le Biscuit, Ponto Frio, Le Lis Blanc | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
488.1 | 488.1 | $ | 103.5 | $ | 108.2 | $ | 108.2 |
Summary of Significant Joint Venture Development Projects in Progress
Location | Project Name | DDR’s Effective Own. % | Est. Total GLA | Est. Owned GLA | Est. Net Cost(1) | Cost Incurred To Date | Assets Placed in Service | Major Anchors Associated | ||||||||||||||||||||
Goiania, Brazil | Passeio Das Aguas | 33.3 | % | 806.4 | 806.4 | $ | 210.1 | $ | 43.5 | $ | — | Bretas, Cinemark, Magic Games | ||||||||||||||||
Londrina, Brazil | Boulevard Londrina | 28.2 | % | 518.2 | 518.2 | 158.4 | 83.6 | — | Walmart, Cinemark, Centuaro, Magazine Luiza, Kalunga, Luiggi Bertolli, Renner, Saraiva, Memove. PB Kids | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
1,324.6 | 1,324.6 | $ | 368.5 | $ | 127.1 | $ | — | |||||||||||||||||||||
Total Land Held for Development and CIP for Ground up Development Projects in Progress at March 31, 2012: |
| $ | 127.1 |
(1) | Includes receipts and expected future reductions from land sales and reimbursements. |
26
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Ground up Development Projects Primarily on Hold
MSA (Location) | DDR’s Effective Own. % | Total Acreage | ||||||
Ukiah (Mendocino), CA | 50 | % | 75.7 | |||||
New Haven (Guilford), CT | 100 | % | 24.8 | |||||
Orlando (Lee Vista), FL | 100 | % | 74.3 | |||||
Tampa (Brandon), FL | 100 | % | 46.3 | |||||
Tampa (Wesley Chapel), FL | 100 | % | 10.0 | |||||
Atlanta (Douglasville), GA | 100 | % | 28.5 | |||||
Chicago (Grayslake), IL | 50 | % | 106.0 | |||||
Kansas City (Merriam), KS | 100 | % | 31.6 | |||||
Boston, MA (Seabrook, NH) | 100 | % | 50.9 | |||||
Gulfport, MS | 100 | % | 86.2 | |||||
Raleigh (Apex), NC | 100 | % | 52.6 | |||||
Isabela, Puerto Rico | 80 | % | 11.1 | |||||
Toronto (East Gwillimbury—Bayview/Greenlane), CAN | 50 | % | 39.0 | |||||
Toronto (East Gwillimbury—Hwy 404/Greenlane East), CAN | 50 | % | 44.0 | |||||
Toronto (East Gwillimbury—Hwy 404/Greenlane West), CAN | 50 | % | 29.0 | |||||
Toronto (Richmond Hill), CAN | 50 | % | 52.0 | |||||
Togliatti, Russia | 75 | % | 61.2 | |||||
Other Misc. Land (6 sites) | 100 | % | Various | |||||
|
| |||||||
830.3 | ||||||||
(In Millions) | ||||||||
Total Ground up Development Projects Primarily on Hold at March 31, 2012: | $ | 431.6 | (1) |
(1) | Includes partners’ ownership interests of $89.7 million. |
27
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Portfolio Summary
(GLA in millions)
Shopping Centers(Economic Interest) | ||||
Operating Centers | 420 | |||
Owned GLA (at 100%) | 75.7 | |||
Additional Ground Lease GLA | 4.3 | |||
Additional Unowned GLA | 22.6 | |||
Base Rent PSF | $ | 14.08 | ||
Leased Rate (at 100%) | 93.7 | % | ||
Commenced Rate (at 100%) | 91.7 | % | ||
Leased Rate (at Pro Rata) | 94.4 | % | ||
Prime Portfolio(Subset of Economic Interest) | ||||
Operating Centers | 258 | |||
Owned GLA (at 100%) | 58.7 | |||
Additional Ground Lease GLA | 3.8 | |||
Additional Unowned GLA | 18.8 | |||
Base Rent PSF | $ | 15.17 | ||
Leased Rate (at 100%) | 95.2 | % | ||
% of Total NOI (T12) | 89.0 | % | ||
Shopping Centers(No Economic Interest) | ||||
Operating Centers | 49 | |||
Owned GLA | 10.4 | |||
Additional Ground Lease GLA | 0.9 | |||
Additional Unowned GLA | 4.6 |
Brazil Portfolio(Subset of Economic Interest) |
| |||
Operating Centers (Developments) | 11 | (2) | ||
Owned GLA (at 100%) | 4.1 | |||
Additional Ground Lease GLA | 0.2 | |||
Additional Unowned GLA | 0.2 | |||
Additional Development GLA | 1.3 | |||
Base Rent PSF | $ | 36.84 | ||
Leased Rate (at 100%) | 98.5 | % | ||
% of Pro Rata NOI (T12) | 8.4 | % | ||
Puerto Rico Portfolio(Subset of Economic Interest) | ||||
Operating Centers | 15 | |||
Owned GLA (at 100%) | 4.0 | |||
Additional Ground Lease GLA | 0.7 | |||
Additional Unowned GLA | 0.3 | |||
Base Rent PSF | $ | 18.92 | ||
Leased Rate (at 100%) | 96.5 | % | ||
% of Pro Rata NOI (T12) | 15.4 | % | ||
Business Centers | ||||
Operating Centers | 4 | |||
Owned GLA (at 100%) | 0.3 |
Same Store NOI(1)
($ in millions)
At 100% | 1Q12 | 1Q11 | Change | |||||||||
Same Store NOI | $ | 208.0 | $ | 202.1 | 2.9 | % | ||||||
Non Same Store NOI | 40.1 | 39.6 | ||||||||||
|
|
|
| |||||||||
$ | 248.1 | $ | 241.7 | |||||||||
Reconcilation to Income Statement | ||||||||||||
1Q12 | 1Q11 | |||||||||||
Consolidated at 100% | ||||||||||||
Revenues | $ | 195.4 | $ | 192.3 | ||||||||
Operating & Maintenance | (34.3 | ) | (35.5 | ) | ||||||||
Real Estate Taxes | (25.6 | ) | (25.2 | ) | ||||||||
|
|
|
| |||||||||
135.5 | 131.6 | |||||||||||
Unconsolidated at 100% | ||||||||||||
Revenues | 169.9 | 168.6 | ||||||||||
Operating & Maintenance | (39.4 | ) | (39.3 | ) | ||||||||
Real Estate Taxes | (18.0 | ) | (19.1 | ) | ||||||||
|
|
|
| |||||||||
112.6 | 110.1 | |||||||||||
|
|
|
| |||||||||
Total at 100% | $ | 248.1 | $ | 241.7 | ||||||||
|
|
|
|
At DDR Share | 1Q12 | 1Q11 | Change | |||||||||
Same Store NOI | $ | 127.7 | $ | 124.8 | 2.3 | % | ||||||
Non Same Store NOI | 34.2 | 32.3 | ||||||||||
|
|
|
| |||||||||
$ | 161.9 | $ | 157.1 | |||||||||
Reconcilation to Income Statement | ||||||||||||
1Q12 | 1Q11 | |||||||||||
Consolidated at DDR Share | ||||||||||||
Consolidated at 100% | $ | 135.5 | $ | 131.6 | ||||||||
JV Share of Cons. NOI | (0.4 | ) | (0.3 | ) | ||||||||
|
|
|
| |||||||||
135.1 | 131.2 | |||||||||||
Unconsolidated at DDR Share | ||||||||||||
Revenues | 38.4 | 37.5 | ||||||||||
Expenses | (8.1 | ) | (7.9 | ) | ||||||||
Real Estate Taxes | (3.5 | ) | (3.7 | ) | ||||||||
|
|
|
| |||||||||
26.8 | 25.9 | |||||||||||
|
|
|
| |||||||||
Total at DDR Share | $ | 161.9 | $ | 157.1 | ||||||||
|
|
|
|
(1) | Excludes development, redevelopment, straight line rental income and expenses, lease termination income, and provisions for uncollectible amounts and/or recoveries thereof; includes assets owned in comparable periods (15 months for quarter comparisons and 24 months for full year comparisons). |
28
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Lease Expiration Schedule(at 100%)
Greater than 10,000 SF | ||||||||||||||||
Year | Leases | ABR (mil) | Rent PSF | % of ABR | ||||||||||||
2012 | 81 | $ | 26.3 | $ | 9.78 | 2.8 | % | |||||||||
2013 | 161 | 42.4 | 9.16 | 4.6 | % | |||||||||||
2014 | 195 | 60.1 | 9.44 | 6.5 | % | |||||||||||
2015 | 179 | 55.5 | 9.49 | 6.0 | % | |||||||||||
2016 | 212 | 68.2 | 10.61 | 7.3 | % | |||||||||||
2017 | 160 | 63.2 | 10.29 | 6.8 | % | |||||||||||
2018 | 74 | 28.9 | 10.18 | 3.1 | % | |||||||||||
2019 | 94 | 41.4 | 11.94 | 4.5 | % | |||||||||||
2020 | 71 | 25.3 | 10.70 | 2.7 | % | |||||||||||
2021 | 94 | 40.1 | 10.71 | 4.3 | % | |||||||||||
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2012-2021 | 1,321 | $ | 451.3 | $ | 10.23 | 48.6 | % | |||||||||
Total Rent Roll | 1,460 | $ | 514.4 | $ | 10.16 | 55.4 | % |
Less than 10,000 SF | ||||||||||||||
Leases | ABR (mil) | Rent PSF | % of ABR | |||||||||||
1,072 | $ | 59.0 | $ | 30.17 | 6.4 | % | ||||||||
1,266 | 67.8 | 23.58 | 7.3 | % | ||||||||||
1,213 | 66.7 | 27.71 | 7.2 | % | ||||||||||
961 | 56.5 | 25.59 | 6.1 | % | ||||||||||
1,007 | 63.2 | 26.28 | 6.8 | % | ||||||||||
548 | 35.5 | 28.19 | 3.8 | % | ||||||||||
154 | 14.2 | 26.00 | 1.5 | % | ||||||||||
102 | 8.9 | 25.49 | 1.0 | % | ||||||||||
109 | 8.8 | 22.90 | 0.9 | % | ||||||||||
152 | 12.2 | 24.37 | 1.3 | % | ||||||||||
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6,584 | $ | 392.8 | $ | 26.03 | 42.3 | % | ||||||||
6,917 | $ | 413.7 | $ | 26.14 | 44.6 | % |
Annual Metrics(at 100%) | ||||||||||||
Period Ending | Centers | Leased Rate | ABR PSF | |||||||||
Q1 2012 | 420 | 93.7 | % | $ | 14.08 | |||||||
YE 2011 | 432 | 93.6 | % | 13.81 | ||||||||
YE 2010 | 487 | 92.6 | % | 13.36 | ||||||||
YE 2009 | 544 | 91.4 | % | 13.01 | ||||||||
YE 2008 | 621 | 92.7 | % | 12.60 | ||||||||
YE 2007 | 628 | 96.0 | % | 12.54 | ||||||||
YE 2006 | 379 | 96.1 | % | 11.90 | ||||||||
YE 2005 | 379 | 96.3 | % | 11.30 | ||||||||
YE 2004 | 373 | 95.4 | % | 11.13 | ||||||||
YE 2003 | 274 | 95.1 | % | 10.82 | ||||||||
YE 2002 | 189 | 95.9 | % | 10.58 | ||||||||
YE 2001 | 192 | 95.4 | % | 10.03 | ||||||||
YE 2000 | 190 | 96.9 | % | 9.66 | ||||||||
YE 1999 | 186 | 95.7 | % | 9.20 | ||||||||
YE 1998 | 159 | 96.5 | % | 8.99 | ||||||||
YE 1997 | 123 | 96.1 | % | 8.49 | ||||||||
YE 1996 | 112 | 94.8 | % | 7.85 | ||||||||
YE 1995 | 106 | 96.3 | % | 7.60 | ||||||||
YE 1994 | 84 | 97.1 | % | 5.89 | ||||||||
YE 1993 | 69 | 96.2 | % | 5.60 | ||||||||
YE 1992 | 53 | 95.4 | % | 5.37 |
Leased Rate Breakdown(at 100%) | ||||||||||||
SF | Leased Rate | % of GLA | % of Vacancy | |||||||||
< 2,499 | 83.6 | % | 8.7 | % | 22.4 | % | ||||||
2,500-4,999 | 83.3 | % | 8.4 | % | 22.1 | % | ||||||
5,000-9,999 | 86.7 | % | 9.0 | % | 18.9 | % | ||||||
10,000-19,999 | 95.0 | % | 10.1 | % | 7.9 | % | ||||||
> 20,000 | 97.2 | % | 63.8 | % | 28.7 | % | ||||||
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Total | 93.7 | % | 100.0 | % | 100.0 | % | ||||||
Portfolio Concentration(at 100%) | ||||||||||||
% of ABR | MSF | % of GLA | ||||||||||
Brazil | 15.2 | % | 4.3 | 5.3 | % | |||||||
Georgia | 9.1 | % | 8.9 | 11.1 | % | |||||||
Florida | 8.8 | % | 8.8 | 10.9 | % | |||||||
Puerto Rico | 8.2 | % | 4.7 | 5.9 | % | |||||||
New York | 6.3 | % | 6.4 | 8.0 | % | |||||||
North Carolina | 6.2 | % | 5.3 | 6.7 | % | |||||||
Ohio | 5.8 | % | 5.7 | 7.1 | % | |||||||
New Jersey | 4.9 | % | 3.2 | 4.0 | % | |||||||
Pennsylvania | 3.3 | % | 2.8 | 3.5 | % | |||||||
Illinois | 2.9 | % | 1.9 | 2.4 | % |
29
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Leasing Summary
($, GLA in thousands, except per square foot)
Leasing spreads are calculated by comparing the prior tenant’s annual base rent in the final year of the lease to the new tenant’s annual base rent in the first year of the new lease. The reported calculation, “Vacant < 1 Year”, only includes deals that were executed within one year of the date that the prior tenant vacated. “Non-comp” deals consist of deals which were 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.
First Quarter 2012 at 100%
New Rent | Prior Rent | |||||||||||||||||||||||||||||||||||
# of Leases | GLA | Year 1 Rent PSF | Year 1 Total Rent | Final Year Rent PSF | Final Year Total Rent | Comp Space Spread | Wtd Avg Term (Yrs) | TI PSF | ||||||||||||||||||||||||||||
New Leases | ||||||||||||||||||||||||||||||||||||
Comparable | 63 | 240 | $ | 18.17 | $ | 4,366 | $ | 17.14 | $ | 4,118 | 6.0 | % | 7.7 | $ | 3.85 | |||||||||||||||||||||
Non-comp | 102 | 584 | 13.61 | 7,943 | N/A | N/A | N/A | 7.4 | 12.87 | |||||||||||||||||||||||||||
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New Leases - Total | 165 | 824 | 14.94 | 12,309 | N/A | N/A | 6.0 | % | 7.5 | 10.39 | ||||||||||||||||||||||||||
Renewals | 343 | 2,178 | 15.10 | 32,887 | 14.33 | 31,200 | 5.4 | % | 5.2 | 0.11 | ||||||||||||||||||||||||||
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Total | 508 | 3,002 | $ | 15.06 | $ | 45,196 | $ | 14.61 | $ | 35,318 | 5.5 | % | 5.8 | $ | 3.06 | |||||||||||||||||||||
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First Quarter 2012 at Pro Rata Share
New Rent | Prior Rent | |||||||||||||||||||||||||||||||||||
# of Leases | GLA | Year 1 Rent PSF | Year 1 Total Rent | Final Year Rent PSF | Final Year Total Rent | Comp Space Spread | Wtd Avg Term (Yrs) | TI PSF | ||||||||||||||||||||||||||||
New Leases | ||||||||||||||||||||||||||||||||||||
Comparable | 63 | 204 | $ | 15.13 | $ | 3,090 | $ | 13.88 | $ | 2,835 | 9.0 | % | 7.9 | $ | 3.41 | |||||||||||||||||||||
Non-comp | 102 | 427 | 13.20 | 5,637 | N/A | N/A | N/A | 7.1 | 12.21 | |||||||||||||||||||||||||||
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New Leases - Total | 165 | 631 | 13.82 | 8,727 | N/A | N/A | 9.0 | % | 7.4 | 9.41 | ||||||||||||||||||||||||||
Renewals | 343 | 1,533 | 11.59 | 17,770 | 10.94 | 16,775 | 5.9 | % | 4.6 | 0.15 | ||||||||||||||||||||||||||
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Total | 508 | 2,164 | $ | 12.24 | $ | 26,497 | $ | 11.29 | $ | 19,610 | 6.4 | % | 5.4 | $ | 2.89 | |||||||||||||||||||||
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30
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Net Effective Rents Related to Leased Space (Owned Properties)
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.
Three Months Ended 3/31/2012 | 2011 Total / Average | |||||||
Number of lease transactions executed | 508 | 1,902 | ||||||
Rentable square footage leased (in thousands) | 3,002 | 10,224 | ||||||
Square footage of renewal deals (in thousands) | 2,178 | 6,448 | ||||||
Square footage of new deals (in thousands) | 824 | 3,775 | ||||||
Renewed square footage (% of total) | 72.6 | % | 63.1 | % | ||||
New leases square footage (% of total) | 27.4 | % | 36.9 | % | ||||
New Deals: | ||||||||
Weighted average per rentable square foot over the lease term: | ||||||||
Base rent | $ | 15.60 | $ | 16.30 | ||||
Tenant allowance | (1.30 | ) | (1.64 | ) | ||||
Landlord work | (1.34 | ) | (0.70 | ) | ||||
Third party leasing commissions | (0.25 | ) | (0.28 | ) | ||||
Rent concessions | — | — | ||||||
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Equivalent net effective rent | $ | 12.71 | $ | 13.68 | ||||
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Weighted average term in years | 7.5 | 8.2 | ||||||
Renewal Deals: | ||||||||
Weighted average per rentable square foot over the lease term: | ||||||||
Base rent | $ | 15.38 | $ | 14.81 | ||||
Tenant allowance | (0.02 | ) | — | |||||
Landlord work | — | — | ||||||
Third party leasing commissions | — | — | ||||||
Rent concessions | — | — | ||||||
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Equivalent net effective rent | $ | 15.36 | $ | 14.81 | ||||
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Weighted average term in years | 5.2 | 4.8 | ||||||
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31
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Top 40 Tenants Ranked by Base Rental Revenue
($ and GLA in Millions)
# of Units | ABR | GLA | Credit Ratings | |||||||||||||||||||||||||||||
Tenant | Owned | Total | at 100% | % of Total | Prorata | at 100% | % of Total | (S&P/Mdy’s/Fitch) | ||||||||||||||||||||||||
1 | Walmart1 | 32 | 82 | $ | 31.4 | 3.2 | % | $ | 26.2 | 4.6 | 5.7 | % | AA / Aa2 / AA | |||||||||||||||||||
2 | TJX Companies2 | 65 | 82 | 20.6 | 2.1 | % | 14.8 | 2.0 | 2.5 | % | A / A3 / NR | |||||||||||||||||||||
3 | PetSmart | 63 | 81 | 18.8 | 1.9 | % | 13.6 | 1.4 | 1.7 | % | BB+ / NR / NR | |||||||||||||||||||||
4 | Kohl’s | 26 | 42 | 17.0 | 1.8 | % | 10.8 | 2.3 | 2.9 | % | BBB+ / Baa1 / BBB+ | |||||||||||||||||||||
5 | Publix | 42 | 45 | 16.7 | 1.7 | % | 4.3 | 1.9 | 2.4 | % | NR | |||||||||||||||||||||
6 | Bed Bath & Beyond3 | 43 | 53 | 15.1 | 1.6 | % | 11.9 | 1.3 | 1.6 | % | BBB+ / NR / NR | |||||||||||||||||||||
7 | Michael’s | 53 | 60 | 14.8 | 1.5 | % | 10.4 | 1.2 | 1.5 | % | B / B3 / NR | |||||||||||||||||||||
8 | Best Buy | 23 | 34 | 13.6 | 1.4 | % | 9.1 | 1.0 | 1.2 | % | BBB- / Baa2 / BBB- | |||||||||||||||||||||
9 | AMC Theaters | 7 | 10 | 12.8 | 1.3 | % | 5.5 | 0.6 | 0.7 | % | B / B2 / B | |||||||||||||||||||||
10 | Dick’s Sporting Goods | 23 | 32 | 12.8 | 1.3 | % | 7.5 | 1.1 | 1.4 | % | NR | |||||||||||||||||||||
11 | Kroger | 30 | 31 | 12.3 | 1.3 | % | 5.9 | 1.7 | 2.1 | % | BBB / Baa2 / BBB | |||||||||||||||||||||
12 | Ross Stores | 39 | 43 | 12.0 | 1.2 | % | 6.9 | 1.2 | 1.5 | % | BBB+ / NR / NR | |||||||||||||||||||||
13 | Tops Markets | 16 | 17 | 11.8 | 1.2 | % | 6.7 | 1.0 | 1.2 | % | B / NR / NR4 | |||||||||||||||||||||
14 | OfficeMax | 40 | 51 | 11.1 | 1.1 | % | 8.2 | 0.9 | 1.1 | % | B- / B1 / NR | |||||||||||||||||||||
15 | Gap5 | 43 | 52 | 10.5 | 1.1 | % | 7.5 | 0.7 | 0.9 | % | BB+ / Baa3 / BBB- | |||||||||||||||||||||
16 | Lowe’s | 12 | 33 | 9.8 | 1.0 | % | 9.1 | 1.6 | 2.0 | % | A- / A3 / NR | |||||||||||||||||||||
17 | Staples | 33 | 35 | 9.1 | 0.9 | % | 6.5 | 0.7 | 0.9 | % | BBB / Baa2 / BBB | |||||||||||||||||||||
18 | Regal Cinemas | 11 | 13 | 9.0 | 0.9 | % | 6.5 | 0.6 | 0.7 | % | B+ / B3 / B+ | |||||||||||||||||||||
19 | Barnes & Noble | 23 | 27 | 8.6 | 0.9 | % | 5.7 | 0.6 | 0.7 | % | NR | |||||||||||||||||||||
20 | Cinemark | 11 | 13 | 8.1 | 0.8 | % | 6.0 | 0.5 | 0.6 | % | BB- / NR / NR | |||||||||||||||||||||
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Top 20 Tenants | 635 | 836 | $ | 275.9 | 28.5 | % | $ | 183.1 | 26.9 | 33.6 | % | |||||||||||||||||||||
21 | Sears6 | 26 | 29 | $ | 7.6 | 0.8 | % | $ | 5.4 | 2.2 | 2.7 | % | CCC+ / B3 / CCC | |||||||||||||||||||
22 | JoAnn Fabric | 24 | 33 | 7.5 | 0.8 | % | 5.9 | 0.7 | 0.9 | % | B / B2 / NR | |||||||||||||||||||||
23 | Dollar Tree Stores | 77 | 88 | 7.4 | 0.8 | % | 5.2 | 0.7 | 0.9 | % | NR | |||||||||||||||||||||
24 | Petco | 29 | 31 | 6.8 | 0.7 | % | 4.5 | 0.4 | 0.5 | % | B / B2 / NR | |||||||||||||||||||||
25 | Home Depot | 8 | 37 | 6.5 | 0.7 | % | 6.3 | 0.9 | 1.1 | % | A- / A3 / A- | |||||||||||||||||||||
26 | Toys R Us7 | 21 | 32 | 6.4 | 0.7 | % | 5.6 | 0.8 | 1.0 | % | B / B1 / B | |||||||||||||||||||||
27 | Rite Aid | 25 | 25 | 6.1 | 0.6 | % | 5.8 | 0.3 | 0.4 | % | B- / Caa2 / B- | |||||||||||||||||||||
28 | Sports Authority | 12 | 16 | 5.8 | 0.6 | % | 5.6 | 0.5 | 0.6 | % | B- / NR / NR | |||||||||||||||||||||
29 | Amscan Holdings8 | 30 | 37 | 5.6 | 0.6 | % | 3.8 | 0.4 | 0.5 | % | NR | |||||||||||||||||||||
30 | Ascena9 | 50 | 57 | 5.6 | 0.6 | % | 4.0 | 0.3 | 0.4 | % | NR | |||||||||||||||||||||
31 | DSW | 13 | 19 | 5.5 | 0.6 | % | 3.6 | 0.3 | 0.4 | % | NR | |||||||||||||||||||||
32 | Royal Ahold10 | 5 | 5 | 5.3 | 0.5 | % | 1.9 | 0.3 | 0.4 | % | BBB / Baa3 / BBB | |||||||||||||||||||||
33 | Ulta | 22 | 25 | 5.0 | 0.5 | % | 3.5 | 0.2 | 0.2 | % | NR | |||||||||||||||||||||
34 | Pier 1 Imports | 26 | 37 | 5.0 | 0.5 | % | 3.4 | 0.3 | 0.4 | % | NR | |||||||||||||||||||||
35 | Hobby Lobby | 13 | 16 | 4.9 | 0.5 | % | 3.0 | 0.7 | 0.9 | % | NR | |||||||||||||||||||||
36 | Beall’s | 18 | 21 | 4.7 | 0.5 | % | 2.3 | 0.7 | 0.9 | % | NR | |||||||||||||||||||||
37 | Giant Eagle | 6 | 7 | 4.4 | 0.5 | % | 2.7 | 0.5 | 0.6 | % | NR | |||||||||||||||||||||
38 | Brown Shoe Co.11 | 31 | 40 | 4.4 | 0.5 | % | 3.2 | 0.2 | 0.2 | % | B / B2 / BB+ | |||||||||||||||||||||
39 | Office Depot | 15 | 21 | 4.4 | 0.5 | % | 3.0 | 0.4 | 0.5 | % | B- / B2 / NR | |||||||||||||||||||||
40 | Gamestop | 96 | 107 | 4.3 | 0.4 | % | 3.3 | 0.2 | 0.2 | % | NR / Ba1 / NR | |||||||||||||||||||||
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Tenants 21-40 | 547 | 683 | $ | 113.2 | 11.7 | % | $ | 82.0 | 11.0 | 13.7 | % | |||||||||||||||||||||
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Top 40 Tenants | 1,182 | 1,519 | $ | 389.1 | 40.2 | % | $ | 265.1 | 37.9 | 47.3 | % | |||||||||||||||||||||
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Total Portfolio | $ | 968.4 | 100.0 | % | $ | 613.9 | 80.1 | 100.0 | % |
(1) | Walmart (27) / Sam’s Club (5) |
(2) | TJ Maxx (32) / Marshalls (24) / Homegoods (9) |
(3) | Bed Bath & Beyond (38) / Others (5) |
(4) | 15 leases are guaranteed by Koninklijke Ahold NV, rated BBB / Baa3 / BBB |
(5) | Gap (4) / Old Navy (36) / Banana Republic (3) |
(6) | Sears (4) / Kmart (20) / Others (2) |
(7) | Toys R Us (6) / Babies R Us (15) |
(8) | Party City (23) / Others (7) |
(9) | Dress Barn (21) / Justice (20) / Maurice’s (9) |
(10) | Stop N Shop (4) / Martin’s (1) |
(11) | Famous Footwear (29) / Others (2) |
32
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Total Market Capitalization
(In Millions)
March 31, 2012 | December 31, 2011 | |||||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||||
Common Shares Equity | $ | 4,057.2 | 48 | % | $ | 3,375.3 | 43 | % | ||||||||
Perpetual Preferred Stock | 375.0 | 4 | % | 375.0 | 5 | % | ||||||||||
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4,432.2 | 52 | % | 3,750.3 | 48 | % | |||||||||||
Unsecured Credit Facilities | 76.0 | 1 | % | 142.4 | 2 | % | ||||||||||
Unsecured Term Loan | 250.0 | 3 | % | — | — | |||||||||||
Unsecured Public Debt | 1,978.1 | 22 | % | 2,182.7 | 28 | % | ||||||||||
Secured Term Loan | 500.0 | 6 | % | 500.0 | 6 | % | ||||||||||
Fixed Rate Mortgage Debt | 1,270.8 | 15 | % | 1,218.1 | 15 | % | ||||||||||
Variable Rate Mortgage Debt | 89.4 | 1 | % | 91.0 | 1 | % | ||||||||||
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4,164.3 | 48 | % | 4,134.2 | 52 | % | |||||||||||
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Total | $ | 8,596.5 | 100 | % | $ | 7,884.5 | 100 | % | ||||||||
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Debt to Market Capitalization | 48.4 | % | 52.4 | % | ||||||||||||
Common Shares Outstanding (millions) | 277.5 | 276.9 | ||||||||||||||
Operating Partnership Units (millions) | 0.4 | 0.4 | ||||||||||||||
Market Value per Share | $ | 14.60 | $ | 12.17 | ||||||||||||
Accretion on Convertible Notes (excluded above) | $ | 39.8 | $ | 43.0 | ||||||||||||
Partners’ Share of Consolidated Debt (included above) | $ | 21.2 | $ | 21.7 | ||||||||||||
DDR Share of Unconsolidated Debt (excluded above) | $ | 837.6 | $ | 772.9 |
Credit Ratings
Debt Rating | Outlook | |||
Moody’s | Baa3 | Stable | ||
Fitch | BB+ | Stable | ||
S&P | BB+ | Positive |
Public Debt Covenants
(Actuals for Twelve Months Ending March 31, 2012)
Covenant Threshold | Actual Covenant | |||
Total Debt to Real Estate Assets Ratio | not to exceed 65% | 48% | ||
Secured Debt to Assets Ratio | not to exceed 40% | 21% | ||
Value of Unencumbered Assets to Unsecured Debt | at least 135% | 222% | ||
Fixed Charge Coverage Ratio | at least 1.5x | 1.8x |
33
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Summary of Consolidated Debt
(In Millions)
Total Debt Outstanding | March 31, 2012 Aggregate | March 31, 2012 DDR Pro Rata Share | March 31, 2012 DDR Pro Rata Wtd. Avg. Interest | December 31, 2011 Aggregate | December 31, 2011 DDR Pro Rata Share | |||||||||||||||
Unsecured Credit Facilities | $ | 76.0 | $ | 76.0 | 2.66 | % | $ | 142.4 | $ | 142.4 | ||||||||||
Unsecured Term Loan | 250.0 | 250.0 | 3.30 | % | — | — | ||||||||||||||
Unsecured Public Debt | 1,938.3 | 1,938.3 | 6.11 | % | 2,139.7 | 2,139.7 | ||||||||||||||
Secured Term Loan | 500.0 | 500.0 | 2.10 | % | 500.0 | 500.0 | ||||||||||||||
Fixed Rate Mortgage Loans | 1,270.8 | 1,260.9 | 5.52 | % | 1,218.1 | 1,208.2 | ||||||||||||||
Variable Rate Mortgage Loans | 89.4 | 78.1 | 2.01 | % | 91.0 | 79.2 | ||||||||||||||
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Subtotal | 4,124.5 | 4,103.3 | 5.00 | % | 4,091.2 | 4,069.5 | ||||||||||||||
Fair Market Value Adjustment | 12.4 | 12.4 | — | 13.4 | 13.4 | |||||||||||||||
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Total | $ | 4,136.9 | $ | 4,115.7 | 5.00 | % | $ | 4,104.6 | $ | 4,082.9 | ||||||||||
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Schedule of Maturities by Year(1) | Scheduled Principal Payments | Secured Debt Maturities | Unsecured Debt Maturities | Aggregate Total | DDR Pro Rata Share | |||||||||||||||
2012 | $ | 19.7 | $ | 12.5 | $ | 223.5 | $ | 255.7 | $ | 255.7 | ||||||||||
2013 | 26.2 | 392.1 | — | 418.3 | 418.3 | |||||||||||||||
2014 | 24.7 | 303.0 | — | 327.7 | 327.7 | |||||||||||||||
2015 | 21.9 | 540.2 | 503.0 | 1,065.1 | 1,065.1 | |||||||||||||||
2016 | 19.6 | 48.9 | 350.5 | 419.0 | 407.7 | |||||||||||||||
2017 | 19.9 | 0.3 | 350.0 | 370.2 | 370.2 | |||||||||||||||
2018 | 14.7 | 75.4 | 382.2 | 472.3 | 472.3 | |||||||||||||||
2019 | 8.2 | 169.3 | 200.0 | 377.5 | 377.5 | |||||||||||||||
2020 | 5.5 | 40.3 | 300.0 | 345.8 | 345.8 | |||||||||||||||
2021 | 4.1 | 82.3 | — | 86.4 | 86.4 | |||||||||||||||
2022 and beyond | 0.1 | 31.3 | — | 31.4 | 21.5 | |||||||||||||||
Unsecured debt discount | — | — | (44.9 | ) | (44.9 | ) | (44.9 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 164.6 | $ | 1,695.6 | $ | 2,264.3 | $ | 4,124.5 | $ | 4,103.3 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Percentage of Total Debt | March 31, 2012 | December 31, 2011 | ||||||
Fixed | 85.1 | % | 87.0 | % | ||||
Variable | 14.9 | % | 13.0 | % | ||||
Recourse to DDR | 68.4 | % | 69.5 | % | ||||
Non-recourse to DDR | 31.6 | % | 30.5 | % |
(1) | Assumes borrower extension options are exercised. |
34
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Summary of Joint Venture Debt
(In Millions)
Total Debt Outstanding | March 31, 2012 Aggregate | March 31, 2012 DDR Pro Rata Share | March 31, 2012 DDR Pro Rata Wtd. Avg. Interest | December 31, 2011 Aggregate | December 31, 2011 DDR Pro Rata Share | |||||||||||||||
Fixed Rate Mortgage Loans | $ | 3,053.6 | $ | 641.3 | 5.81 | % | $ | 3,084.5 | $ | 646.0 | ||||||||||
Variable Rate Mortgage Loans | 870.4 | 196.1 | 7.44 | % | 656.1 | 126.7 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Subtotal | 3,924.0 | (1) | 837.4 | (1) | 6.19 | % | 3,740.6 | 772.7 | ||||||||||||
Fair Market Value Adjustment | 1.3 | 0.2 | — | 1.6 | 0.2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 3,925.3 | $ | 837.6 | 6.19 | % | $ | 3,742.2 | $ | 772.9 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Schedule of Maturities by Year(2) | Scheduled Principal Payments | Mortgage Loan Maturities | Aggregate Total | DDR Pro Rata Share | ||||||||||||
2012 | $ | 13.5 | $ | 1,347.2 | $ | 1,360.7 | $ | 286.3 | ||||||||
2013 | 14.8 | 413.8 | 428.6 | 65.3 | ||||||||||||
2014 | 14.6 | 168.7 | 183.3 | 39.3 | ||||||||||||
2015 | 8.0 | 209.3 | 217.3 | 45.6 | ||||||||||||
2016 | 3.8 | 39.3 | 43.1 | 10.6 | ||||||||||||
2017 | 3.8 | 1,313.3 | 1,317.1 | 261.3 | ||||||||||||
2018 | 3.0 | 29.0 | 32.0 | 10.6 | ||||||||||||
2019 | 2.1 | 112.0 | 114.1 | 38.2 | ||||||||||||
2020 | 2.2 | 71.6 | 73.9 | 24.8 | ||||||||||||
2021 | 1.3 | 80.5 | 81.8 | 31.4 | ||||||||||||
2022 and beyond | — | 72.1 | 72.1 | 24.0 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 67.1 | $ | 3,856.8 | $ | 3,924.0 | $ | 837.4 | ||||||||
|
|
|
|
|
|
|
|
Percentage of Total Debt | March 31, 2012 | December 31, 2011 | ||||||
Fixed | 77.8 | % | 82.5 | % | ||||
Variable | 22.2 | % | 17.5 | % | ||||
Recourse to DDR | 4.3 | % | 4.7 | % | ||||
Non-recourse to DDR | 95.7 | % | 95.3 | % |
(1) | Includes approximately $300.2 million of debt of which the Company’s proportionate share of non-recourse debt is $48.1 million associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income. |
(2) | Assumes borrower extension options are exercised. |
35
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Consolidated Debt Detail
(In Millions)
Loan Balance | DDR Pro Rata Share | Final Maturity Date(1) | Interest Rate(2) | |||||||||||||
Senior Debt: | ||||||||||||||||
Unsecured Credit Facilities: | ||||||||||||||||
$750 Million Revolving Credit Facility | $ | 76.0 | $ | 76.0 | 02/16 | LIBOR + 165 | ||||||||||
$65 Million Revolving Credit Facility | — | — | 02/16 | LIBOR + 165 | ||||||||||||
$50 Million Term Loan | 50.0 | 50.0 | 01/17 | LIBOR + 170 | ||||||||||||
$200 Million Term Loan | 200.0 | 200.0 | 01/19 | LIBOR + 210 | ||||||||||||
Secured Credit Facility: | ||||||||||||||||
$500 Million Term Loan | 500.0 | 500.0 | 09/15 | LIBOR + 170 | ||||||||||||
|
|
|
| |||||||||||||
Total Term and Credit Facility Debt | $ | 826.0 | $ | 826.0 | ||||||||||||
Public Debt: | ||||||||||||||||
Unsecured Notes | 223.4 | 223.4 | 10/12 | 5.38 | ||||||||||||
Unsecured Notes | 152.8 | 152.8 | 05/15 | 5.50 | ||||||||||||
Convertible Notes | 310.2 | (3) | 310.2 | 11/15 | 1.75 | |||||||||||
Unsecured Notes | 273.6 | 273.6 | 03/16 | 9.63 | ||||||||||||
Unsecured Notes | 300.0 | 300.0 | 04/17 | 7.50 | ||||||||||||
Unsecured Notes | 298.3 | 298.3 | 04/18 | 4.75 | ||||||||||||
Medium Term Notes | 82.2 | 82.2 | 07/18 | 7.50 | ||||||||||||
Unsecured Notes | 297.8 | 297.8 | 09/20 | 7.88 | ||||||||||||
|
|
|
| |||||||||||||
Total Public Debt | $ | 1,938.3 | $ | 1,938.3 | ||||||||||||
Mortgage Debt: | ||||||||||||||||
Walgreen’s, Dearborn Hts, MI | 3.5 | 3.5 | 11/12 | 4.86 | ||||||||||||
Walgreen’s, Livonia, MI | 2.5 | 2.5 | 11/12 | 4.86 | ||||||||||||
Terraces at Southpark, Charlotte, NC | 6.6 | 6.6 | 12/12 | 5.72 | ||||||||||||
Walgreen’s, Westland, MI | 2.6 | 2.6 | 03/13 | 4.86 | ||||||||||||
Aspen Grove, Littleton, CO | 42.2 | 42.2 | 04/13 | 5.00 | ||||||||||||
Meridian Crossroads & Family Center, Meridian, ID | 37.2 | 37.2 | 04/13 | 5.00 | ||||||||||||
Paseo Colorado, Pasadena, CA | 79.1 | 79.1 | 04/13 | 5.00 | ||||||||||||
Plaza Escorial, Carolina, PR | 57.5 | 57.5 | 04/13 | 5.00 | ||||||||||||
Plaza Rio Hondo, Bayamon, PR | 109.5 | 109.5 | 04/13 | 5.00 | ||||||||||||
University Center, Wilmington, NC | 24.5 | 24.5 | 04/13 | 5.00 | ||||||||||||
Victor Square, Victor, NY | 5.9 | 5.9 | 04/13 | 5.80 | ||||||||||||
DDRC Headquarters, Beachwood, OH | 33.0 | 33.0 | 04/13 | LIBOR + 110 | ||||||||||||
Monmouth Consumer Sq., W. Long Branch, NJ | 3.2 | 3.2 | 07/13 | 8.57 | ||||||||||||
Rotonda Plaza, Englewood, FL | 0.5 | 0.5 | 07/13 | 5.80 | ||||||||||||
Abernathy Square, Atlanta, GA | 12.0 | 12.0 | 10/14 | 4.23 | ||||||||||||
Bermuda Square, Chester, VA | 7.4 | 7.4 | 10/14 | 4.23 | ||||||||||||
Brook Highland Plaza, Birmingham, AL | 24.4 | 24.4 | 10/14 | 4.23 | ||||||||||||
Chillicothe Place, Chillicothe, OH | 4.2 | 4.2 | 10/14 | 4.23 | ||||||||||||
Clearwater Collection, Clearwater, FL | 7.1 | 7.1 | 10/14 | 4.23 | ||||||||||||
Cross Pointe Center, Fayetteville, NC | 9.8 | 9.8 | 10/14 | 4.23 | ||||||||||||
Crossroads Center, Gulfport, MS | 24.3 | 24.3 | 10/14 | 4.23 | ||||||||||||
Deer Valley Towne Center, Phoenix, AZ | 17.4 | 17.4 | 10/14 | 4.23 | ||||||||||||
Delaware Consumer Square, Buffalo, NY | 10.1 | 10.1 | 10/14 | 4.23 | ||||||||||||
Downtown Short Pump, Richmond, VA | 12.4 | 12.4 | 10/14 | 4.23 | ||||||||||||
Hamilton Marketplace, Hamilton, NJ | 41.0 | 41.0 | 10/14 | 4.23 | ||||||||||||
Home Depot Center, Orland Park, IL | 6.6 | 6.6 | 10/14 | 4.23 | ||||||||||||
Kroger, Cincinnati, OH | 2.6 | 2.6 | 10/14 | 4.23 | ||||||||||||
Lexington Place, Lexington, SC | 4.3 | 4.3 | 10/14 | 4.23 |
36
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Consolidated Debt Detail
(In Millions)
Loan Balance | DDR Pro Rata Share | Final Maturity Date(1) | Interest Rate(2) | |||||||||||||
Loisdale Center, Springfield, VA | 11.0 | 11.0 | 10/14 | 4.23 | ||||||||||||
Marketplace at Delta Twp, Lansing, MI | 6.6 | 6.6 | 10/14 | 4.23 | ||||||||||||
Mooresville Consumer Sq., Mooresville, NC | 18.0 | 18.0 | 10/14 | 4.23 | ||||||||||||
North Pointe Plaza, North Charleston, SC | 10.8 | 10.8 | 10/14 | 4.23 | ||||||||||||
Overlook at Hamilton Place, Chattanooga, TN | 9.8 | 9.8 | 10/14 | 4.23 | ||||||||||||
Plaza at Sunset Hills, Sunset Hills, MO | 27.7 | 27.7 | 10/14 | 4.23 | ||||||||||||
Sam’s Club, Worcester, MA | 5.3 | 5.3 | 10/14 | 4.23 | ||||||||||||
The Commons, Salisbury, MD | 8.6 | 8.6 | 10/14 | 4.23 | ||||||||||||
Walmart Supercenter, Alliance, OH | 7.1 | 7.1 | 10/14 | 4.23 | ||||||||||||
Wando Crossing, Mount Pleasant, SC | 11.9 | 11.9 | 10/14 | 4.23 | ||||||||||||
Warner Robins Place, Warner Robins, GA | 6.7 | 6.7 | 10/14 | 4.23 | ||||||||||||
Wendover Village, Greensboro, NC | 4.7 | 4.7 | 10/14 | 4.23 | ||||||||||||
Windsor Court, Windsor, CT | 7.2 | 7.2 | 10/14 | 4.23 | ||||||||||||
Kyle Crossing, Kyle, TX | 22.6 | 11.3 | 01/15 | LIBOR + 275 | ||||||||||||
Reno Riverside, Reno, NV | 2.9 | (4) | 2.9 | 02/15 | Prime + 170 | |||||||||||
Merriam Village, Merriam, KS | 15.0 | 15.0 | 03/15 | LIBOR + 250 | ||||||||||||
Hamilton Commons, Mays Landing, NJ | 6.3 | 6.3 | 09/15 | 4.70 | ||||||||||||
Tops Plaza, Lockport, NY | 6.2 | 6.2 | 01/16 | 8.00 | ||||||||||||
Merriam Town Center, Merriam, KS (TIF) | 1.0 | 1.0 | 02/16 | 6.90 | ||||||||||||
Cotswold Village, Charlotte, NC | 50.5 | 50.5 | 05/16 | 5.83 | ||||||||||||
Freedom Plaza, Rome, NY | 2.4 | 2.4 | 09/16 | 7.85 | ||||||||||||
Walmart Supercenter, Winston-Salem, NC | 6.4 | 6.4 | 08/17 | 6.00 | ||||||||||||
Thruway Plaza (Walmart), Cheektowaga, NY | 2.8 | 2.8 | 10/17 | 6.78 | ||||||||||||
Tops Plaza, Ithaca, NY | 11.4 | 11.4 | 01/18 | 7.05 | ||||||||||||
Walmart Supercenter, Greenville, SC | 6.1 | 6.1 | 01/18 | 6.00 | ||||||||||||
Johns Creek Town Center, Suwanee, GA | 25.6 | 25.6 | 03/18 | 5.06 | ||||||||||||
Southland Crossings, Boardman, OH | 25.6 | 25.6 | 03/18 | 5.06 | ||||||||||||
The Promenade at Brentwood, St. Louis, MO | 32.6 | 32.6 | 03/18 | 5.06 | ||||||||||||
Mohawk Commons, Niskayuna, NY | 15.3 | 15.3 | 12/18 | 5.75 | ||||||||||||
Lowes, Hendersonville, TN | 5.9 | 5.9 | 01/19 | 7.66 | ||||||||||||
Nassau Park Pavilion, Princeton, NJ | 57.0 | 57.0 | 02/19 | 3.40 | ||||||||||||
Bandera Pointe, San Antonio, TX | 24.8 | 24.8 | 02/19 | 3.40 | ||||||||||||
Presidential Commons, Snellville, GA | 21.2 | 21.2 | 02/19 | 3.40 | ||||||||||||
Plaza Cayey, Cayey, PR | 21.7 | 21.7 | 06/19 | 7.59 | ||||||||||||
Plaza Fajardo, Fajardo, PR | 26.0 | 26.0 | 06/19 | 7.59 | ||||||||||||
Plaza Isabela, Isabela, PR | 22.9 | 22.9 | 06/19 | 7.59 | ||||||||||||
Plaza Walmart, Guayama, PR | 12.2 | 12.2 | 06/19 | 7.59 | ||||||||||||
Mariner Square, Spring Hill, FL | 3.6 | 3.6 | 09/19 | 9.75 | ||||||||||||
Northland Square, Cedar Rapids, IA | 6.9 | 6.9 | 01/20 | 9.38 | ||||||||||||
Polaris Towne Center, Columbus, OH | 45.1 | 45.1 | 04/20 | 6.76 | ||||||||||||
West Valley Marketplace, Allentown, PA | 13.0 | 13.0 | 07/21 | 6.95 | ||||||||||||
Wrangleboro Consumer Sq. I & II, Mays Landing, NJ | 64.4 | 64.4 | 10/21 | 5.41 | ||||||||||||
Chapel Hills East, Colorado Springs, CO | 9.4 | 9.4 | 12/21 | 5.24 | ||||||||||||
Paradise Village Gateway, Phoenix, AZ | 30.0 | 20.1 | 01/22 | 4.65 | ||||||||||||
Macedonia Commons, Macedonia, OH | 20.6 | 20.6 | 02/22 | 5.71 | ||||||||||||
Gulfport Promenade, Gulfport, MS | 16.0 | 16.0 | 12/37 | SIFMA + 5 | ||||||||||||
|
|
|
| |||||||||||||
Total Mortgage Debt | $ | 1,360.2 | $ | 1,339.0 | ||||||||||||
Subtotal | $ | 4,124.5 | $ | 4,103.3 | ||||||||||||
Fair Market Value Adjustment—Assumed Debt | 12.4 | 12.4 | ||||||||||||||
|
|
|
| |||||||||||||
Total Consolidated Debt | $ | 4,136.9 | $ | 4,115.7 | ||||||||||||
|
|
|
|
37
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Consolidated Debt Detail
(In Millions)
Loan Balance | DDR Pro Rata Share | Final Maturity Date(1) | Interest Rate(2) | |||||||||||||
Wtd. Avg. Maturity | Wtd. Avg. Interest Rate | |||||||||||||||
Fixed Rate | $ | 3,509.1 | $ | 3,499.2 | | 4.6 years | | 5.52 | % | |||||||
Variable Rate | 615.4 | 604.1 | | 4.1 years | | 2.01 | % | |||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 4,124.5 | $ | 4,103.3 | | 4.5 years | | 5.00 | % | ||||||||
|
|
|
|
|
|
|
|
Cumulative Redeemable Preferred Shares | Outstanding Amount | |||
Class H—7.375% | $ | 205.0 | ||
Class I—7.5% | 170.0 | |||
|
| |||
$ | 375.0 | |||
|
|
Derivative Instruments | ||||||||||||||||||||
Notional Amount | Underlying Debt Hedged | Rate Hedged | Fixed Rate | Termination Date | ||||||||||||||||
Interest Rate Swap | $ | 100.0 | Secured Term Loan | 1 mo. LIBOR | 1.01 | % | June 28, 2014 | |||||||||||||
Interest Rate Swap | $ | 83.8 | Mortgage Portfolio | 1 mo. LIBOR | 2.81 | % | September 1, 2017 | |||||||||||||
Interest Rate Swap | $ | 200.0 | Unsecured Term Loan | 1 mo. LIBOR | 1.54 | % | February 1, 2019 |
(1) | Assumes borrower extension options are exercised. |
(2) | Interest rate figures reflect coupon rates of interest and do not include discounts or premiums. Annualized deferred finance cost amortization of approximately $13.4 million is partially offset by approximately $3.6 million of fair market value adjustments. |
(3) | The convertible notes may be net settled with DDR’s common stock once the stock price rises above $16.08 per share at March 31, 2012 and are subject to adjustments resulting from changes in the quarterly dividend per share. The principal balance on these notes is to be settled in cash. Included in this amount is a $39.8 million reduction as compared to the face value of the convertible notes as required by accounting standards due to the initial value of the equity conversion feature. |
(4) | Reno Riverside has an interest rate floor of 5.95%. |
38
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Joint Venture Debt Detail
(In Millions)
Loan Balance | DDR Pro Rata Share | Final Maturity Date(1) | Interest Rate | |||||||||||||
DDRTC Core Retail Fund, LLC | ||||||||||||||||
DDRTC Holdings Pool 5, LLC (10 assets) | $ | 158.7 | $ | 23.8 | 05/12 | LIBOR + 65 | ||||||||||
DDRTC Holdings Pool 3, LLC (17 assets) | 540.0 | 81.0 | 06/12 | 5.48 | ||||||||||||
DDRTC Holdings Pool 6, LLC | ||||||||||||||||
Cypress Trace, Fort Myers, FL | 16.0 | 2.4 | 04/12 | 5.00 | ||||||||||||
Waterfront Marketplace, Homestead, PA | 27.3 | 4.1 | 08/12 | 6.35 | ||||||||||||
Waterfront Town Center, Homestead, PA | 35.9 | 5.4 | 08/12 | 6.35 | ||||||||||||
Creeks at Virginia Center, Glen Allen, VA | 24.2 | 3.6 | 08/12 | 6.37 | ||||||||||||
Willoughby Hills Shop Ctr, Willoughby Hills, OH | 10.4 | 1.6 | 07/18 | 6.98 | ||||||||||||
DDRTC Holdings Pool 1, LLC (9 assets) | 350.2 | 52.5 | 03/17 | 5.45 | ||||||||||||
|
|
|
| |||||||||||||
Total DDRTC Core Retail Fund LLC | $ | 1,162.7 | $ | 174.4 | ||||||||||||
DDR Domestic Retail Fund I | ||||||||||||||||
Heather Island Plaza, Ocala, FL | 6.2 | 1.2 | 12/12 | 5.00 | ||||||||||||
Hilliard Rome, Columbus, OH | 10.3 | 2.1 | 01/13 | 5.87 | ||||||||||||
Meadows Square, Boynton Beach, FL | 0.9 | 0.2 | 07/13 | 6.72 | ||||||||||||
Village Center, Racine, WI | 11.8 | 2.4 | 04/15 | 4.21 | ||||||||||||
Paradise Promenade, Davie, FL | 6.1 | 1.2 | 04/15 | 4.21 | ||||||||||||
West Falls Plaza, West Patterson, NJ | 11.5 | 2.3 | 04/15 | 4.21 | ||||||||||||
DDR Domestic Retail Fund I (52 assets) | 883.8 | 176.8 | 07/17 | 5.60 | ||||||||||||
|
|
|
| |||||||||||||
Total DDR Domestic Retail Fund I | $ | 930.6 | $ | 186.2 | ||||||||||||
Coventry II | ||||||||||||||||
Bloomfield Park, Bloomfield Hills, MI | $ | 39.8 | (2) | $ | — | 12/08 | Prime + 300 | |||||||||
Coventry II DDR SM (31 assets) | 71.3 | (2) | 14.2 | 09/12 | LIBOR + 225 | |||||||||||
Buena Park, Buena Park, CA | 61.0 | 12.2 | 11/12 | 9.00 | ||||||||||||
Marley Creek Square, Orland Park, IL | 10.6 | (2) | 1.1 | 12/12 | LIBOR + 125 | |||||||||||
Watters Creek, Allen, TX | 137.9 | (3) | 22.8 | 01/13 | LIBOR + 300 | |||||||||||
Fairplain Plaza, Benton Harbor, MI | 14.8 | 2.9 | 05/13 | LIBOR + 350 | ||||||||||||
Totem Lake Mall, Kirkland, WA | 27.2 | 5.4 | 05/13 | LIBOR + 350 | ||||||||||||
Christown Spectrum Mall, Phoenix, AZ | 46.0 | (3) | 9.2 | 11/13 | LIBOR + 343 | |||||||||||
Christown Spectrum Mall, Phoenix, AZ | 19.0 | (3) | 3.8 | 11/13 | LIBOR + 1000 | |||||||||||
Tri-County Mall, Cincinnati, OH | 150.6 | (2) | 30.1 | 02/15 | 5.66 | |||||||||||
Westover Marketplace, San Antonio, TX | 20.8 | (3) | 4.2 | 02/16 | LIBOR + 450 | |||||||||||
Coventry II DDR SM (7 assets) | 27.9 | (2) | 5.6 | 09/16 | 6.75 | |||||||||||
|
|
|
| |||||||||||||
Total Coventry II | $ | 626.9 | $ | 111.5 | ||||||||||||
DDR SAU Retail Fund, LLC | ||||||||||||||||
Lewandowski Commons, Lyndhurst, NJ | $ | 12.5 | $ | 2.5 | 06/12 | 5.77 | ||||||||||
South Square, Durham, NC | 12.6 | 2.5 | 10/12 | 5.06 | ||||||||||||
Shoppes at Wendover II, Greensboro, NC | 14.4 | 2.9 | 10/12 | 5.06 | ||||||||||||
North Hampton Market (Phase I & II), Taylors, SC | 10.5 | 2.1 | 10/12 | 5.08 | ||||||||||||
Oakland Market Place, Oakland, TN | 3.6 | 0.7 | 10/12 | 5.04 | ||||||||||||
Crossroads Square, Morristown, TN | 4.9 | 1.0 | 12/12 | 5.31 | ||||||||||||
Cascade Corners, Atlanta, GA | 4.0 | 0.8 | 12/12 | 5.42 | ||||||||||||
Hilander Village, Roscoe, IL | 9.4 | 1.9 | 12/12 | 5.41 | ||||||||||||
Glenlake Plaza, Indianapolis, IN | 8.2 | 1.6 | 12/12 | 5.44 | ||||||||||||
Broadmoor Plaza, South Bend, IN | 11.0 | 2.2 | 12/12 | 5.44 | ||||||||||||
Milan Plaza, Milan, MI | 2.2 | 0.4 | 12/12 | 5.49 | ||||||||||||
West Towne Commons, Jackson, TN | 4.8 | 1.0 | 12/12 | 5.44 | ||||||||||||
American Way, Memphis, TN | 6.7 | 1.3 | 12/12 | 5.44 | ||||||||||||
Kroger Junction, Pasadena, TX | 3.8 | 0.8 | 12/12 | 5.44 | ||||||||||||
Kroger Plaza, Virginia Beach, VA | 1.8 | 0.4 | 12/12 | 5.44 | ||||||||||||
Willowbrook Commons, Nashville, TN | 7.0 | 1.4 | 03/13 | 5.41 | ||||||||||||
Harper Hill Commons, Winston Salem, NC | 10.3 | 2.0 | 04/13 | 5.79 | ||||||||||||
The Point, Greenville, SC | 15.8 | 3.2 | 04/13 | 5.64 | ||||||||||||
Plaza at Carolina Forest, Myrtle Beach, SC | 14.2 | 2.8 | 05/13 | 5.97 | ||||||||||||
Alexander Pointe, Salisbury, NC | 5.1 | 1.0 | 08/13 | 5.92 | ||||||||||||
Patterson Place, Durham, NC | 20.3 | 4.1 | 12/13 | 5.67 | ||||||||||||
|
|
|
| |||||||||||||
Total DDR SAU Retail Fund LLC | $ | 183.1 | $ | 36.6 |
39
DDR
Quarterly Financial Supplement
For the three months ended March 31, 2012
Joint Venture Debt Detail
(In Millions)
Loan Balance | DDR Pro Rata Share | Final Maturity Date(1) | Interest Rate | |||||||||||||
Sonae Sierra Brasil BV Sarl | ||||||||||||||||
Shopping Plaza Sul Increase in Ownership | $ | 33.6 | $ | 11.2 | 06/15 | CDI | ||||||||||
Sonae Sierra Brasil Limitadas, Brazil | 9.1 | 3.0 | 11/15 | CDI + 285 | ||||||||||||
Patio Boavista, Brazil | 12.8 | 4.3 | 11/16 | CDI + 330 | ||||||||||||
Debentures | 52.3 | 17.4 | 02/17 | CDI + 96 | ||||||||||||
Shopping Metropole, Brazil | 28.8 | 9.6 | 05/18 | TR + 1030 | ||||||||||||
Debentures | 112.0 | 37.3 | 02/19 | IPCA + 625 | ||||||||||||
Manaura Shopping, Brazil | 71.6 | 23.9 | 12/20 | 10.00 | ||||||||||||
Patio Londrina, Brazil | 29.8 | 9.9 | 10/25 | TR + 1090 | ||||||||||||
Patio Uberlandia, Brazil | 42.3 | 14.1 | 10/25 | TR + 1130 | ||||||||||||
|
|
|
| |||||||||||||
Total Sonae Sierra Brasil BV Sarl | $ | 392.3 | $ | 130.7 | ||||||||||||
DDRA Ahwatukee Foothills LLC, Phoenix, AZ | 105.8 | 52.9 | 08/12 | 5.30 | ||||||||||||
DDRA Arrowhead Crossing LLC, Phoenix, AZ | 47.2 | 23.6 | 08/12 | 5.30 | ||||||||||||
DDRA Tanasbourne Town Center LLC, Portland, OR | 56.6 | 28.3 | 08/12 | 5.30 | ||||||||||||
Jefferson County Plaza LLC, Arnold, MO | 3.5 | 1.8 | 08/12 | LIBOR + 200 | ||||||||||||
Cole DDR MT Independence, Independence, MO | 34.0 | 4.9 | 10/12 | 4.00 | ||||||||||||
DDR MDT PS, LLC (7 assets) | 86.0 | — | 07/13 | 6.00 | ||||||||||||
DDR Markaz II (13 assets) | 148.8 | 29.8 | 11/14 | 7.15 | ||||||||||||
Lennox Town Center Limited, Columbus, OH | 1.0 | 0.5 | 07/17 | 6.44 | ||||||||||||
Lennox Town Center Limited, Columbus, OH | 26.0 | 13.0 | 07/17 | 5.64 | ||||||||||||
RO & SW Realty LLC (9 assets) | 21.6 | 5.4 | 10/20 | 5.25 | ||||||||||||
Sun Center Limited, Columbus, OH | 23.4 | 18.6 | 05/21 | 5.99 | ||||||||||||
RVIP IIIB, Deer Park, IL | 74.5 | 19.2 | 09/21 | 4.84 | ||||||||||||
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Total | $ | 628.4 | $ | 198.0 | ||||||||||||
Subtotal | $ | 3,924.0 | $ | 837.4 | ||||||||||||
Fair Market Value Adjustment—Assumed Debt | 1.3 | 0.2 | ||||||||||||||
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Total Joint Venture Debt | $ | 3,925.3 | $ | 837.6 | ||||||||||||
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Wtd. Avg. Maturity | Wtd. Avg. Interest Rate | |||||||||||||||
Total Joint Venture Debt:0 | ||||||||||||||||
Fixed Rate | $ | 3,053.6 | $ | 641.3 | 3.4 years | 5.81 | % | |||||||||
Variable Rate | 870.4 | 196.1 | 4.4 years | 7.44 | % | |||||||||||
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$ | 3,924.0 | $ | 837.4 | 3.6 years | 6.19 | % | ||||||||||
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Derivative Instruments | ||||||||||||||||||
Notional Amount | Underlying Debt Hedged | Rate Hedged | Capped Rate | Termination Date | ||||||||||||||
Interest Rate Cap | $ | 76.1 | Coventry II DDR SM | 1 mo. LIBOR | 3.00 | % | September 1, 2012 | |||||||||||
Interest Rate Cap | $ | 65.0 | Coventry II Christown Spectrum Mall | 1 mo. LIBOR | 2.85 | % | November 22, 2013 |
(1) | Assumes borrower extension options are exercised. |
(2) | Includes approximately $300.2 million of debt of which the Company’s proportionate share of non-recourse debt is $48.1 million associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income. |
(3) | The following loans have floor interest rates: |
Loan | Floor | |
Westover Marketplace, San Antonio, TX | 1 month LIBOR of 2.00% | |
Watters Creek, Allen, TX | 1 month LIBOR of 0.50% | |
Christown Spectrum Mall, Phoenix, AZ | 1 month LIBOR of 0.26% |
40
DDR
Quarterly Financial Supplement
Corporate Headquarters | Investor Relations | |
DDR Corp. | Samir Khanal | |
3300 Enterprise Parkway | Toll Free: (877) 225-5337 | |
Beachwood, Ohio 44122 | Main: (216) 755-5500 | |
Website: www.ddr.com | Email: skhanal@ddr.com |
Equity Research Coverage | ||||||
BofA Merrill Lynch | Craig Schmidt | craig.schmidt@baml.com | (646) 855-3640 | |||
Lindsay Schroll | lindsay.schroll@baml.com | (646) 855-1829 | ||||
Citigroup | Michael Bilerman | michael.bilerman@citi.com | (212) 816-1383 | |||
Quentin Velleley | quentin.velleley@citi.com | (212) 816-6981 | ||||
Cowen & Company | Jim Sullivan | james.sullivan@cowen.com | (646) 562-1380 | |||
Mike Gorman | michael.gorman@cowen.com | (646) 562-1381 | ||||
Deutsche Bank | John Perry | john.perry@db.com | (212) 250-4912 | |||
Vincent Chao | vincent.chao@db.com | (212) 250-6799 | ||||
DISCERN, Inc. | Dave Wigginton | dwigginton@discern.com | (646) 863-4177 | |||
Green Street Advisors | Cedrik Lachance | clachance@greensteetadvisors.com | (949) 640-8780 | |||
Jason White | jwhite@greenstreetadvisors.com | (949) 640-8780 | ||||
Hilliard Lyons | Carol Kemple | ckemple@hilliard.com | (502) 588-1839 | |||
ISI Group | Steve Sakwa | ssakwa@isigrp.com | (212) 446-9462 | |||
Samit Parikh | sparikh@isigrp.com | (212) 888-3796 | ||||
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 | ||||
Macquarie | Ki Bin Kim | kibin.kim@macquarie.com | (212) 231-6386 | |||
Morgan Stanley | Paul Morgan | paul.b.morgan@morganstanley.com | (415) 576-2627 | |||
Stephen Bakke | stephen.bakke@morganstanley.com | (415) 576-2696 | ||||
RBC Capital Markets | Rich Moore | rich.moore@rbccm.com | (440) 715-2646 | |||
Wes Golladay | wes.golladay@rbccm.com | (440) 715-2650 | ||||
Sandler O’Neill | Alex Goldfarb | agoldfarb@sandleroneill.com | (212) 466-7937 | |||
James Milam | jmilam@sandleroneill.com | (212) 466-8066 | ||||
UBS | Ross Nussbaum | ross.nussbaum@ubs.com | (212) 713-2484 | |||
Christy McElroy | christy.mcelroy@ubs.com | (203) 719-7831 | ||||
Wells Fargo | Jeff Donnelly | jeff.donnelly@wellsfargo.com | (617) 603-4262 | |||
Tamara Fique | tamara.fique@wellsfargo.com | (443) 263-6568 | ||||
Fixed Income Research Coverage | ||||||
BofA Merrill Lynch | Tom Truxillo | thomas.c.truxillo_jr@baml.com | (980) 386-5212 | |||
Citigroup | Tom Cook | thomas.n.cook@citigroup.com | (212) 723-1112 | |||
J.P. Morgan | Mark Streeter | mark.streeter@jpmorgan.com | (212) 834-5086 | |||
RBC Capital Markets | Seth Levine | seth.levine@rbccm.com | (212) 618-3523 | |||
Wells Fargo | Thierry Perrein | thierry.perrein@wachovia.com | (704) 715-8455 |
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