Exhibit 99.2
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Table of Contents
Section | Page | |
Earnings Release & Financial Statements | ||
Press Release | 1-15 | |
Financial Summary | ||
FFO Reconciliation | 16 | |
Additional Financial Disclosures | 17 | |
Debt to EBITDA Calculation | 18 | |
Significant Accounting Policies | 19-20 | |
Other Real Estate Information | 21 | |
Joint Venture Financial Summary | ||
Joint Venture Investment Summary | 22 | |
Joint Venture Combining Financial Statements | 23-24 | |
Investment Summary | ||
Acquisitions | 25 | |
Dispositions | 26 | |
Developments and Redevelopments | 27-28 | |
Development Projects Primarily on Hold | 29 | |
Portfolio Summary | ||
Portfolio Characteristics | 30 | |
Lease Expirations | 31 | |
Leasing Summary | 32-33 | |
Net Effective Rents | 34 | |
Largest Tenants | 35 | |
Debt Summary | ||
Market Capitalization, Ratings and Financial Ratios | 36 | |
Summary of Consolidated Debt | 37 | |
Summary of Joint Venture Debt | 38 | |
Consolidated Debt Detail | 39-41 | |
Joint Venture Debt Detail | 42-44 | |
Analyst Coverage | ||
Contact Information | 45 |
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 and six months ended June 30, 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 A 9% INCREASE IN OPERATING FFO PER DILUTED SHARE
TO $0.25 FOR THE QUARTER ENDED JUNE 30, 2012
BEACHWOOD, OHIO, July 31, 2012 – DDR Corp. (NYSE: DDR) today announced operating results for the second quarter ended June 30, 2012.
SIGNIFICANT SECOND QUARTER ACTIVITY
• | Generated Operating FFO of $0.25 per diluted share, an increase of 9% compared to second quarter of 2011 |
• | Executed 426 new leases and renewals for 2.7 million square feet |
• | Increased the portfolio leased rate 40 basis points sequentially to 94.1% at June 30, 2012 from 93.7% at March 31, 2012 and 110 basis points year-over-year from 93.0% at June 30, 2011 |
• | Including the assets acquired on June 20, 2012 in the Blackstone joint venture, the revised portfolio leased rate at June 30, 2012 was 93.7% |
• | Generated positive leasing spreads, with new leases up 10.7% at 100% ownership and 22.2% on a pro rata basis, and renewals up 6.1% at 100% ownership and 5.8% on a pro rata basis; blended spreads were up 6.8% at 100% ownership and 8.3% on a pro rata basis |
• | Generated same store net operating income growth of 3.9% at 100% ownership and 3.1% on a pro rata basis |
• | Completed $70 million in acquisitions of two prime shopping centers |
• | Completed $80.5 million of non-prime asset sales, of which DDR’s pro rata share of the proceeds was $75.1 million |
• | Closed on a new unconsolidated joint venture with an affiliate of The Blackstone Group L.P. for $1.4 billion that acquired 46 previously managed but unowned shopping centers |
• | Issued 23.8 million common shares for gross proceeds of $315 million to fund the Company’s share of the Blackstone joint venture and other prime asset acquisitions |
“We are very pleased with the consistency of our financial and operating performance in a very volatile macroeconomic environment. We expect this progress to continue as our portfolio exhibits a high level of resilience and growth,” commented DDR’s president and chief executive officer, Daniel B. Hurwitz.
FINANCIAL HIGHLIGHTS
The Company’s second quarter Operating Funds From Operations applicable to common shareholders (“Operating FFO”) increased to $71.6 million, or $0.25 per diluted share, before $6.5 million of net adjustments, which compares to $64.4 million, or $0.23 per diluted share, before $11.9 million of net adjustments for the prior-year comparable period. The increase in Operating FFO for the three-month period ended June 30, 2012, as compared to the same period in 2011, is primarily due to organic growth and the acquisition of nine shopping center assets in 2011 and 2012 partially offset by asset dispositions.
Funds From Operations applicable to common shareholders (“FFO”) for the three-month period ended June 30, 2012, increased to $78.1 million, or $0.27 per diluted share, which compares to FFO of $52.6
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million, or $0.19 per diluted share, for the prior-year comparable period. The increase in FFO for the three-month period ended June 30, 2012, as compared to the same period in 2011, is primarily due to the gain on change in control of interests related to the Company’s acquisition of two assets from an unconsolidated joint venture partially offset by the loss on debt extinguishment related to the Company’s repurchase of a portion of its 9.625% unsecured notes in 2012.
FFO for the six-month period ended June 30, 2012 was $137.8 million, or $0.49 per diluted share, which compares to FFO of $145.5 million, or $0.45 per diluted share, for the prior-year comparable period. The decrease in FFO for the six-month period ended June 30, 2012, as compared to the same period in 2011, is primarily due to the same factors impacting FFO as explained above in addition to the effect of the valuation adjustment associated with the warrants that were exercised in full for cash in the first quarter of 2011.
Net loss applicable to common shareholders for the three-month period ended June 30, 2012, was $44.5 million, or $0.16 per diluted share, which compares to net loss of $26.9 million, or $0.10 per diluted share, for the prior-year comparable period. Net loss applicable to common shareholders for the six-month period ended June 30, 2012, was $66.5 million, or $0.24 per diluted share, which compares to net loss of $2.1 million, or $0.09 per diluted share, for the prior-year comparable period. The increase in net loss applicable to common shareholders for the three- and six-month periods ended June 30, 2012, as compared to the same periods in 2011, is primarily due to the same factors impacting FFO as explained above as well as an increase in impairment charges in the second quarter of 2012.
LEASING & PORTFOLIO OPERATIONS
The following results for the three-month period ended June 30, 2012, highlight continued strong leasing activity throughout the portfolio:
• | Executed 200 new leases aggregating 0.9 million square feet and 226 renewals aggregating approximately 1.8 million square feet |
• | The portfolio leased rate was 94.1% at June 30, 2012, as compared to 93.7% at March 31, 2012 and 93.0% at June 30, 2011 on a comparable basis |
• | The portfolio leased rate at June 30, 2012, including the 46 assets acquired on June 20, 2012 by the Blackstone joint venture, was 93.7% |
• | On a cash basis, rental rates for new leases increased by 10.7% at 100% ownership and 22.2% on a pro rata basis, and renewals by 6.1% at 100% ownership and 5.8% on a pro rata basis. Overall, blended spreads were up 6.8% at 100% ownership and 8.3% on a pro rata basis. |
• | Same store net operating income (“NOI”) increased by 3.9% at 100% ownership for the three-month period ended June 30, 2012 as compared to the prior-year comparable period and 3.1% on a pro rata basis |
• | Total portfolio average annualized base rent per occupied square foot as of June 30, 2012 was $13.80, as compared to $13.46 at June 30, 2011 |
ACQUISITIONS & FINANCINGS
In June 2012, affiliates of the Company and The Blackstone Group L.P. (“Blackstone”) closed a joint venture which acquired a portfolio of 46 shopping centers previously owned by EPN Group. An affiliate of Blackstone owns 95% of the common equity of the joint venture, and the remaining 5% interest is
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owned by an affiliate of the Company. The transaction is valued at approximately $1.4 billion. The joint venture assumed approximately $635 million of senior non-recourse debt and entered into an additional $320 million of non-recourse debt with a five-year term. In addition, the Company funded the joint venture with $150 million in preferred equity with a fixed distribution rate of 10%, as well as its $17 million common equity funding. The Company will continue to provide leasing and property management services and will have the right of first offer to acquire 10 of the assets under specified conditions. The Company funded its investment with proceeds from the equity forward sale agreements entered into in January 2012 and settled in June 2012 for net proceeds of $231.2 million.
In April 2012, the Company acquired its unconsolidated joint venture partner’s 50% ownership interest in two prime power centers located in Portland, Oregon and Phoenix, Arizona for an aggregate purchase price of $70 million. 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 million investment with proceeds from the issuance of 4.8 million common shares at an average price of $14.64 per share through its at-the-market common equity program. At closing, approximately $104 million of mortgage debt was repaid and the two assets are part of the Company’s large unencumbered pool. The Company recorded an aggregate gain of approximately $39.3 million in connection with the step-up of its investment basis to fair value due to the change in control that occurred.
In June 2012, the Company issued $300 million aggregate principal amount of 4.625% senior unsecured notes due July 2022. Proceeds from the issuance were used to repay the 5.375% senior unsecured notes with an aggregate principal amount of $223.5 million at par scheduled to mature in October 2012 and repay amounts outstanding on the revolving credit facilities.
During the three- and six-month periods ended June 30, 2012, the Company repurchased $34.5 million and $60.0 million, respectively, aggregate principal amount of its outstanding 9.625% senior unsecured notes with a maturity date of March 2016 at a premium to par, resulting in a loss on debt retirement of $7.9 million and $13.5 million, respectively.
On August 1, 2012, the Company expects to issue $200.0 million of its newly designated 6.50% Class J cumulative redeemable preferred shares at a price of $25.00 per depositary share. In addition, in July 2012, the Company announced the redemption of its 7.50% Class I cumulative redeemable preferred shares at a redemption of price of $25.00 per depositary share plus accrued and unpaid dividends of $0.1875 per depositary share. The proceeds from the issuance of the Class J shares are expected to be primarily used to redeem the Class I shares, which is expected to close on August 20, 2012.
DISPOSITIONS
The Company sold 15 consolidated assets, aggregating approximately 2.1 million square feet, in the second quarter of 2012, generating gross proceeds of approximately $60.4 million. In addition, the Company sold $13.3 million of consolidated non-income producing assets. The Company recorded an aggregate net gain of approximately $8.4 million related to asset sales in the second quarter of 2012.
In the second quarter of 2012, the Company’s unconsolidated joint ventures sold one asset generating gross proceeds of approximately $6.8 million, of which the Company’s proportionate share was $1.4 million. The aggregate gain on sale in the second quarter of 2012 was approximately $0.2 million, of which the Company’s proportionate share was immaterial.
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2012 GUIDANCE
There has been no change in Operating FFO per share guidance since the last update provided on May 1, 2012. The Company continues to estimate Operating FFO for 2012 between $1.00 and $1.04 per diluted share.
NON-GAAP DISCLOSURES
FFO is a supplemental non-GAAP financial measurement used as a standard in the real estate industry and a widely accepted measure of real estate investment trust (“REIT”) performance. Management believes that FFO and Operating FFO provide additional indicators of the financial performance of a REIT. The Company also believes that FFO and Operating FFO more appropriately measure the core operations of the Company and provide benchmarks to its peer group. Neither FFO nor Operating FFO represents cash generated from operating activities in accordance with generally accepted accounting principles (“GAAP”), is necessarily indicative of cash available to fund cash needs and should be considered as an alternative to net income computed in accordance with GAAP as an indicator of the Company’s operating performance or as an alternative to cash flow as a measure of liquidity.
FFO is defined and calculated by the Company as net income, adjusted to exclude: (i) preferred share dividends, (ii) gains and losses from disposition of depreciable real estate property, which are presented net of taxes, (iii) impairment charges on depreciable real estate property and related investments, (iv) extraordinary items and (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 above. 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 above 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, 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 June 30, 2012. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the
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Company’s Form 10-K for the year ended December 31, 2011, as amended. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
ABOUT DDR
DDR is an owner and manager of 459 value-oriented shopping centers representing 117 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, August 1, 2012, at 10:00 a.m. Eastern Daylight Time. To participate, please dial 866.202.4367 (domestic), or 617.213.8845 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the passcode: 41337639. Access to the live call and replay will also be available through the Company’s website. The replay will be available through August 8, 2012.
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DDR Corp.
Financial Highlights
(In Thousands)
Three-Month Periods Ended June 30, | Six-Month Periods Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues: | ||||||||||||||||
Minimum rents(A) | $ | 133,861 | $ | 124,703 | $ | 263,735 | $ | 249,193 | ||||||||
Percentage and overage rents(A) | 655 | 734 | 2,110 | 2,488 | ||||||||||||
Recoveries from tenants | 42,158 | 41,757 | 85,021 | 85,212 | ||||||||||||
Ancillary and other property income | 6,713 | 6,792 | 12,817 | 13,604 | ||||||||||||
Management, development and other fee income | 11,222 | 11,891 | 22,976 | 23,642 | ||||||||||||
Other(B) | 134 | 1,049 | 714 | 2,170 | ||||||||||||
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194,743 | 186,926 | 387,373 | 376,309 | |||||||||||||
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Expenses: | ||||||||||||||||
Operating and maintenance | 30,979 | 33,810 | 64,377 | 68,227 | ||||||||||||
Real estate taxes | 25,631 | 25,195 | 50,779 | 49,950 | ||||||||||||
Impairment charges(C) | 80,227 | 811 | 82,363 | 4,667 | ||||||||||||
General and administrative | 19,131 | 17,979 | 38,144 | 47,357 | ||||||||||||
Depreciation and amortization | 63,561 | 52,888 | 122,977 | 105,080 | ||||||||||||
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219,529 | 130,683 | 358,640 | 275,281 | |||||||||||||
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Other income (expense): | ||||||||||||||||
Interest income | 2,328 | 2,419 | 4,168 | 5,218 | ||||||||||||
Interest expense(D) | (54,617 | ) | (56,239 | ) | (110,587 | ) | (112,633 | ) | ||||||||
Loss on debt retirement, net(E) | (7,892 | ) | — | (13,495 | ) | — | ||||||||||
Gain on equity derivative instruments | — | — | — | 21,926 | ||||||||||||
Other expense, net(F) | (3,657 | ) | (6,347 | ) | (5,259 | ) | (5,007 | ) | ||||||||
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(63,838 | ) | (60,167 | ) | (125,173 | ) | (90,496 | ) | |||||||||
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(Loss) income before earnings from equity method investments and other items | (88,624 | ) | (3,924 | ) | (96,440 | ) | 10,532 | |||||||||
Equity in net income of joint ventures(G) | 3,232 | 16,567 | 11,480 | 18,541 | ||||||||||||
Impairment of joint venture investments(C) | — | (1,636 | ) | (560 | ) | (1,671 | ) | |||||||||
Gain on change in control of interests(H) | 39,348 | 981 | 39,348 | 22,710 | ||||||||||||
Tax expense of taxable REIT subsidiaries and state franchise and income taxes | (371 | ) | (392 | ) | (549 | ) | (718 | ) | ||||||||
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(Loss) income from continuing operations | (46,415 | ) | 11,596 | (46,721 | ) | 49,394 | ||||||||||
Income (loss) from discontinued operations(I) | 3,801 | (27,175 | ) | (11,439 | ) | (28,733 | ) | |||||||||
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(Loss) income before gain on disposition of real estate | (42,614 | ) | (15,579 | ) | (58,160 | ) | 20,661 | |||||||||
Gain on disposition of real estate, net of tax | 5,234 | 2,310 | 5,899 | 1,449 | ||||||||||||
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Net (loss) income | (37,380 | ) | (13,269 | ) | (52,261 | ) | 22,110 | |||||||||
Income attributable to non-controlling interests | (120 | ) | (114 | ) | (296 | ) | (181 | ) | ||||||||
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Net (loss) income attributable to DDR | $ | (37,500 | ) | $ | (13,383 | ) | (52,557 | ) | 21,929 | |||||||
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Write-off of preferred share original issuance costs | — | (6,402 | ) | — | (6,402 | ) | ||||||||||
Preferred dividends | (6,967 | ) | (7,085 | ) | (13,934 | ) | (17,653 | ) | ||||||||
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Net loss applicable to common shareholders | $ | (44,467 | ) | $ | (26,870 | ) | $ | (66,491 | ) | $ | (2,126 | ) | ||||
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Funds From Operations (“FFO”): | ||||||||||||||||
Net loss applicable to common shareholders | $ | (44,467 | ) | $ | (26,870 | ) | $ | (66,491 | ) | $ | (2,126 | ) | ||||
Depreciation and amortization of real estate investments | 61,697 | 54,919 | 120,144 | 108,723 | ||||||||||||
Equity in net income of joint ventures(G) | (3,232 | ) | (16,567 | ) | (11,480 | ) | (18,541 | ) | ||||||||
Impairment of depreciable joint venture investments | — | — | 560 | 35 | ||||||||||||
Joint ventures’ FFO(G) | 12,633 | 14,781 | 26,618 | 29,528 | ||||||||||||
Non-controlling interests (OP Units) | 48 | 16 | 96 | 32 | ||||||||||||
Impairment of depreciable real estate assets, net of non-controlling interests | 54,714 | 20,256 | 72,054 | 22,239 | ||||||||||||
(Gain) loss on disposition of depreciable real estate, net | (3,320 | ) | 6,021 | (3,680 | ) | 5,621 | ||||||||||
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FFO applicable to common shareholders | 78,073 | 52,556 | 137,821 | 145,511 | ||||||||||||
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Non-operating items, net(J) | (6,461 | ) | 11,864 | 597 | (17,901 | ) | ||||||||||
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Operating FFO | $ | 71,612 | $ | 64,420 | $ | 138,418 | $ | 127,610 | ||||||||
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Earnings per share – Diluted(K) | $ | (0.16 | ) | $ | (0.10 | ) | $ | (0.24 | ) | $ | (0.09 | ) | ||||
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Funds From Operations – Diluted(K) | $ | 0.27 | $ | 0.19 | $ | 0.49 | $ | 0.45 | ||||||||
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Operating Funds From Operations – Diluted(K) | $ | 0.25 | $ | 0.23 | $ | 0.49 | $ | 0.47 | ||||||||
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DDR Corp.
Financial Highlights
(In thousands)
Selected Balance Sheet Data
June 30, 2012 | December 31, 2011 | |||||||
Assets: | ||||||||
Real estate and rental property: | ||||||||
Land | $ | 1,839,912 | $ | 1,844,125 | ||||
Buildings | 5,424,300 | 5,461,122 | ||||||
Fixtures and tenant improvements | 406,988 | 379,965 | ||||||
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7,671,200 | 7,685,212 | |||||||
Less: Accumulated depreciation | (1,573,528 | ) | (1,550,066 | ) | ||||
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6,097,672 | 6,135,146 | |||||||
Land held for development and construction in progress | 580,553 | 581,627 | ||||||
Real estate held for sale, net | 502 | 2,290 | ||||||
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Real estate, net | 6,678,727 | 6,719,063 | ||||||
Investments in and advances to joint ventures | 562,413 | 353,907 | ||||||
Cash | 18,505 | 41,206 | ||||||
Restricted cash | 23,791 | 30,983 | ||||||
Notes receivable, net | 62,498 | 93,905 | ||||||
Receivables, including straight-line rent, net | 103,788 | 117,463 | ||||||
Other assets, net | 134,226 | 112,898 | ||||||
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$ | 7,583,948 | $ | 7,469,425 | |||||
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Liabilities & Equity: | ||||||||
Indebtedness: | ||||||||
Revolving credit facilities | $ | 5,895 | $ | 142,421 | ||||
Unsecured debt | 1,977,512 | 2,139,718 | ||||||
Unsecured term loan | 250,000 | — | ||||||
Mortgage and other secured debt | 1,862,378 | 1,822,445 | ||||||
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4,095,785 | 4,104,584 | |||||||
Dividends payable | 40,852 | 29,128 | ||||||
Other liabilities | 226,183 | 257,821 | ||||||
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Total liabilities | 4,362,820 | 4,391,533 | ||||||
Preferred shares | 375,000 | 375,000 | ||||||
Common shares | 30,135 | 27,711 | ||||||
Paid-in-capital | 4,437,806 | 4,138,812 | ||||||
Accumulated distributions in excess of net income | (1,627,030 | ) | (1,493,353 | ) | ||||
Deferred compensation obligation | 13,824 | 13,934 | ||||||
Accumulated other comprehensive income | (30,875 | ) | (1,403 | ) | ||||
Less: Common shares in treasury at cost | (12,731 | ) | (15,017 | ) | ||||
Non-controlling interests | 34,999 | 32,208 | ||||||
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Total equity | 3,221,128 | 3,077,892 | ||||||
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$ | 7,583,948 | $ | 7,469,425 | |||||
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7
DDR Corp.
Financial Highlights
(A) | The increase in base and percentage rental revenues for the six-month period ended June 30, 2012 is as follows (in millions): |
Increase (Decrease) | ||||
Comparable portfolio properties | $ | 2.4 | ||
Acquisition of shopping centers | 11.7 | |||
Development or redevelopment properties | (1.5 | ) | ||
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$ | 12.6 | |||
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Revenue resulting from the recognition of straight-line rents, including discontinued operations, is as follows (in millions):
Six-Month Periods Ended June 30, | ||||||||
2012 | 2011 | |||||||
Straight-line rents | $ | 1.7 | $ | 0.1 |
(B) | Other revenues were comprised of the following (in millions): |
Three-Month Periods Ended June 30, | Six-Month Periods Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Lease termination fees | $ | — | $ | 0.8 | $ | 0.5 | $ | 1.3 | ||||||||
Financing fees | — | 0.2 | — | 0.6 | ||||||||||||
Other miscellaneous | 0.1 | — | 0.2 | 0.3 | ||||||||||||
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$ | 0.1 | $ | 1.0 | $ | 0.7 | $ | 2.2 | |||||||||
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(C) | The Company recorded impairment charges on the following (in millions): |
Three-Month Periods Ended June 30, | Six-Month Periods Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Land held for development | $ | 6.4 | $ | — | $ | 6.4 | $ | — | ||||||||
Undeveloped land | 19.1 | — | 19.1 | 3.9 | ||||||||||||
Assets marketed for sale | 54.7 | 0.8 | 56.9 | 0.8 | ||||||||||||
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Total continuing operations | 80.2 | 0.8 | 82.4 | 4.7 | ||||||||||||
Sold assets or assets held for sale | — | 19.4 | 15.2 | 21.4 | ||||||||||||
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Total discontinued operations | — | 19.4 | 15.2 | 21.4 | ||||||||||||
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Joint venture investments | — | 1.6 | 0.6 | 1.6 | ||||||||||||
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Total impairment charges | $ | 80.2 | $ | 21.8 | $ | 98.2 | $ | 27.7 | ||||||||
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(D) | The Company recorded the following in connection with its outstanding convertible debt (in millions): |
Three-Month Periods Ended June 30, | Six-Month Periods Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Non-cash interest expense related to amortization of the debt discount | $ | 2.5 | $ | 3.8 | $ | 5.7 | $ | 7.6 |
8
DDR Corp.
Financial Highlights
(E) | For the three and six months ended June 30, 2012, the Company repurchased $34.5 million and $60.0 million, respectively, 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 June 30, | Six-Month Periods Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Litigation-related expenses | $ | (0.8 | ) | $ | (1.2 | ) | $ | (1.6 | ) | $ | (2.2 | ) | ||||
Loss on sale of mezzanine note receivable | — | (5.0 | ) | — | (5.0 | ) | ||||||||||
Debt extinguishment costs, net | (0.4 | ) | — | (0.6 | ) | (0.2 | ) | |||||||||
Settlement of lease liability obligation | — | — | — | 2.6 | ||||||||||||
Transaction and other expenses | (2.5 | ) | (0.1 | ) | (3.1 | ) | (0.2 | ) | ||||||||
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$ | (3.7 | ) | $ | (6.3 | ) | $ | (5.3 | ) | $ | (5.0 | ) | |||||
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(G) | At June 30, 2012 and 2011, the Company had investments in joint ventures, excluding consolidated joint ventures, in 215 and 183 shopping center properties, respectively. |
(H) | In the second quarter of 2012, the Company acquired its partners’ 50% interest in two shopping centers. The Company accounted for this transaction as a step acquisition. Due to the change in control that occurred, the Company recorded an aggregate gain associated with the acquisition related to the difference between the Company’s carrying value and fair value of the previously held equity interest. |
(I) | The operating results related to assets classified as discontinued operations are summarized as follows (in millions): |
Three-Month Periods Ended June 30, | Six-Month Periods Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues from operations | $ | 1.7 | $ | 12.6 | $ | 5.8 | $ | 26.5 | ||||||||
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Operating expenses | 0.3 | 5.2 | 2.4 | 11.0 | ||||||||||||
Impairment charges | — | 19.4 | 15.2 | 21.4 | ||||||||||||
Interest, net | 0.4 | 3.7 | 1.3 | 7.6 | ||||||||||||
Depreciation and amortization | 0.4 | 4.2 | 1.6 | 8.2 | ||||||||||||
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Total expenses | 1.1 | 32.5 | 20.5 | 48.2 | ||||||||||||
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Income (loss) before disposition of real estate | 0.6 | (19.9 | ) | (14.7 | ) | (21.7 | ) | |||||||||
Gain (loss) on disposition of real estate, net | 3.2 | (7.3 | ) | 3.3 | (7.0 | ) | ||||||||||
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Income (loss) from discontinued operations | $ | 3.8 | $ | (27.2 | ) | $ | (11.4 | ) | $ | (28.7 | ) | |||||
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9
DDR Corp.
Financial Highlights
(J) | The charges and gains excluded from Operating FFO for the three- and six-month periods ended June 30, 2012 and 2011, respectively, are summarized as follows (in millions): |
Three-Month Periods Ended June 30, | Six-Month Periods Ended June 30, | |||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||
Non-cash impairment charges – non-depreciable consolidated assets | $ | 25.5 | $ | — | $ | 25.5 | $3.8 | |||||||||||
Loss on debt retirement, net | 7.9 | — | 13.5 | — | ||||||||||||||
Other expense (income), net – litigation costs, debt extinguishment costs, lease liability settlement gain, transaction and other expenses | 3.7 | 6.3 | 5.4 | 5.0 | ||||||||||||||
Equity in net income of joint ventures – currency adjustments, transaction and other expenses | 0.9 | (0.4 | ) | 1.0 | (0.8) | |||||||||||||
Non-cash impairment of joint venture investments on non-depreciable assets | — | 1.6 | — | 1.6 | ||||||||||||||
Gain on disposition of non-depreciable real estate (land), net | (5.2 | ) | (1.0 | ) | (5.5 | ) | — | |||||||||||
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 | (39.3 | ) | (1.0 | ) | (39.3 | ) | (22.7) | |||||||||||
Non-cash write off of preferred share original issuance costs | — | 6.4 | — | 6.4 | ||||||||||||||
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| ||||||||||
Total adjustments from FFO to Operating FFO | $ | (6.5 | ) | $ | 11.9 | $ | 0.6 | $ | (17.9 | ) | ||||||||
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10
DDR Corp.
Financial Highlights
(K) | The Company’s per share information is as follows: |
At June 30, | ||||||||
2012 | 2011 | |||||||
Common shares outstanding | 301.3 | 276.6 | ||||||
OP Units outstanding (“OP Units”) | 0.4 | 0.4 |
Three-Month Periods Ended June 30, | Six-Month Periods Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | (0.16 | ) | $ | (0.10 | ) | $ | (0.24 | ) | $ | (0.01 | ) | ||||
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Diluted | $ | (0.16 | ) | $ | (0.10 | ) | $ | (0.24 | ) | $ | (0.09 | ) | ||||
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Basic – average shares outstanding | 280.4 | 274.3 | 277.8 | 265.1 | ||||||||||||
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Diluted – average shares outstanding | 280.4 | 276.1 | 277.8 | 269.2 | ||||||||||||
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Dividends Declared: | $ | 0.12 | $ | 0.04 | $ | 0.24 | $ | 0.08 | ||||||||
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FFO per share: | ||||||||||||||||
Basic | $ | 0.28 | $ | 0.19 | $ | 0.49 | $ | 0.54 | ||||||||
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Diluted | $ | 0.27 | $ | 0.19 | $ | 0.49 | $ | 0.45 | ||||||||
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Weighted average common shares outstanding | 282.6 | 276.2 | 279.9 | 267.2 | ||||||||||||
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Assumed conversion of OP Units | 0.4 | 0.4 | 0.4 | 0.4 | ||||||||||||
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FFO Weighted average common shares and OP Units – Basic | 283.0 | 276.6 | 280.3 | 267.6 | ||||||||||||
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Assumed conversion of dilutive securities | 2.6 | 1.8 | 2.5 | 4.1 | ||||||||||||
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FFO Weighted average common shares and OP Units – Diluted | 285.6 | 278.4 | 282.8 | 271.7 | ||||||||||||
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| |||||||||
Operating FFO: | ||||||||||||||||
Diluted | $ | 0.25 | $ | 0.23 | $ | 0.49 | $ | 0.47 | ||||||||
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Operating FFO Weighted average common shares and OP Units – Diluted | 285.6 | 278.4 | 282.8 | 271.7 | ||||||||||||
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11
DDR Corp.
Summary Results of Combined Unconsolidated Joint Ventures
(In Thousands)
Combined condensed income statements
Three-Month Periods Ended June 30, | Six-Month Periods Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Revenues: | ||||||||||||||||
Minimum rents(A) | $ | 123,221 | $ | 123,811 | $ | 245,417 | $ | 244,312 | ||||||||
Percentage and overage rents | 600 | 808 | 1,082 | 1,565 | ||||||||||||
Recoveries from tenants | 26,790 | 28,316 | 54,126 | 58,934 | ||||||||||||
Other | 23,846 | 22,801 | 43,558 | 39,302 | ||||||||||||
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| |||||||||
174,457 | 175,736 | 344,183 | 344,113 | |||||||||||||
Expenses: | ||||||||||||||||
Operating and maintenance | 52,024 | 41,516 | 91,270 | 80,770 | ||||||||||||
Real estate taxes | 18,205 | 18,548 | 36,152 | 37,628 | ||||||||||||
Impairment charges(B) | 6,877 | — | 7,717 | — | ||||||||||||
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| |||||||||
77,106 | 60,064 | 135,139 | 118,398 | |||||||||||||
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| |||||||||
Net operating income | 97,351 | 115,672 | 209,044 | 225,715 | ||||||||||||
Depreciation and amortization of real estate investments | 45,117 | 45,841 | 87,957 | 93,094 | ||||||||||||
Interest expense | 61,961 | 56,327 | 120,143 | 113,312 | ||||||||||||
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|
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| |||||||||
(Loss) income before other items | (9,727 | ) | 13,504 | 944 | 19,309 | |||||||||||
Income tax expense | (6,239 | ) | (11,386 | ) | (12,268 | ) | (17,530 | ) | ||||||||
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| |||||||||
(Loss) income from continuing operations | (15,966 | ) | 2,118 | (11,324 | ) | 1,779 | ||||||||||
Discontinued operations: | ||||||||||||||||
Income (loss) from operations(B) | 17 | 137 | (355 | ) | (213 | ) | ||||||||||
Gain on debt forgiveness | — | 2,976 | — | 2,976 | ||||||||||||
Gain on disposition, net | 247 | 22,756 | 107 | 21,893 | ||||||||||||
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| |||||||||
(Loss) income before gain on disposition of assets | (15,702 | ) | 27,987 | (11,572 | ) | 26,435 | ||||||||||
(Loss) gain on disposition of assets, net | (750 | ) | — | 13,102 | — | |||||||||||
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| |||||||||
Net (loss) income | $ | (16,452 | ) | $ | 27,987 | $ | 1,530 | $ | 26,435 | |||||||
Non-controlling interests | (4,600 | ) | (2,619 | ) | (13,534 | ) | (4,994 | ) | ||||||||
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| |||||||||
Net (loss) income attributable to unconsolidated joint ventures | $ | (21,052 | ) | $ | 25,368 | $ | (12,004 | ) | $ | 21,441 | ||||||
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Net income at DDR’s ownership interests(C) | $ | 3,171 | $ | 16,532 | $ | 13,351 | $ | 20,439 | ||||||||
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FFO at DDR’s ownership interests(D) | $ | 12,633 | $ | 14,781 | $ | 26,618 | $ | 29,528 | ||||||||
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12
DDR Corp.
Summary Results of Combined Unconsolidated Joint Ventures
(In thousands)
Combined condensed balance sheets
June 30, 2012 | December 31, 2011 | |||||||
Land | $ | 1,637,535 | $ | 1,400,469 | ||||
Buildings | 5,255,495 | 4,334,097 | ||||||
Fixtures and tenant improvements | 209,608 | 189,940 | ||||||
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| |||||
7,102,638 | 5,924,506 | |||||||
Less: Accumulated depreciation | (828,212 | ) | (808,352 | ) | ||||
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| |||||
6,274,426 | 5,116,154 | |||||||
Land held for development and construction in progress(E) | 163,821 | 239,036 | ||||||
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| |||||
Real estate, net | 6,438,247 | 5,355,190 | ||||||
Cash and restricted cash | 440,293 | 308,008 | ||||||
Receivables, including straight-line rent, net | 102,514 | 108,038 | ||||||
Other assets, net | 323,692 | 177,251 | ||||||
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| |||||
$ | 7,304,746 | $ | 5,948,487 | |||||
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| |||||
Mortgage debt(F) | $ | 4,573,716 | $ | 3,742,241 | ||||
Notes and accrued interest payable to DDR | 140,752 | 100,470 | ||||||
Other liabilities | 256,332 | 214,370 | ||||||
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| |||||
4,970,800 | 4,057,081 | |||||||
Redeemable preferred equity | 150,000 | — | ||||||
Accumulated equity | 2,183,946 | 1,891,406 | ||||||
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| |||||
$ | 7,304,746 | $ | 5,948,487 | |||||
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13
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 June 30, | Six-Month Periods Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Straight-line rents | $ | 1.1 | $ | 1.2 | $ | 2.0 | $ | 2.6 | ||||||||
DDR’s proportionate share | 0.2 | 0.3 | 0.4 | 0.7 |
(B) | For the three- and six-month periods ended June 30, 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 was not material. |
(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 June 30, | Six-Month Periods Ended June 30, | |||||||||||||||
2012 | 2011 | 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 June 30, | Six-Month Periods Ended June 30, | |||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net (loss) income attributable to unconsolidated joint ventures | $ | (21.1 | ) | $ | 25.4 | $ | (12.0 | ) | $ | 21.4 | ||||||
Depreciation and amortization of real estate investments | 44.1 | 45.2 | 89.4 | 93.1 | ||||||||||||
Impairment of depreciable real estate assets | 6.9 | — | 8.2 | — | ||||||||||||
Loss (gain) on sale of depreciable real estate | 0.5 | (22.8 | ) | (13.2 | ) | (21.9 | ) | |||||||||
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| |||||||||
FFO | $ | 30.4 | $ | 47.8 | $ | 72.4 | $ | 92.6 | ||||||||
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| |||||||||
FFO at DDR ownership interests | $ | 12.6 | $ | 14.8 | $ | 26.6 | $ | 29.5 | ||||||||
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| |||||||||
Operating FFO at DDR’s ownership interests(1) | $ | 13.5 | $ | 14.4 | $ | 27.6 | $ | 28.7 | ||||||||
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| |||||||||
DDR joint venture distributions received, net(2) | $ | 11.9 | $ | 18.8 | $ | 16.4 | $ | 45.7 | ||||||||
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(1) | Excluded from Operating FFO is the Company’s proportionate share of net charges related to foreign currency adjustments, transaction costs and gain on debt forgiveness as disclosed on page 10 of this press release. |
(2) | Includes loan repayments in 2011 of $22.4 million from the Company’s unconsolidated joint venture which has assets located in Brazil. |
14
DDR Corp.
Summary Results of Combined Unconsolidated Joint Ventures
(E) | Land held for development and construction in progress consists of the following (in millions): |
June 30, 2012 | December 31, 2011 | |||||||
Company’s proportionate share | $ | 53.5 | $ | 75.9 |
(F) | Mortgage debt consists of the following (in millions): |
June 30, 2012 | December 31, 2011 | |||||||
Company’s proportionate share | $ | 811.1 | $ | 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 | 47.8 | 48.1 |
15
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
FFO Reconciliation
(In Millions, Except Per Share Information)
2Q12 | 2Q11 | 6M12 | 6M11 | |||||||||||||
Funds From Operations: | ||||||||||||||||
Net loss applicable to common shareholders | $ | (44.5 | ) | $ | (26.9 | ) | $ | (66.5 | ) | $ | (2.1 | ) | ||||
Depreciation and amortization of real estate investments | 61.7 | 54.9 | 120.1 | 108.7 | ||||||||||||
Equity in net income of joint ventures | (3.2 | ) | (16.6 | ) | (11.5 | ) | (18.5 | ) | ||||||||
Impairment of depreciable joint venture investments | — | — | 0.6 | — | ||||||||||||
Joint ventures’ FFO | 12.6 | 14.8 | 26.6 | 29.5 | ||||||||||||
Impairment of depreciable real estate assets, net of non-controlling interests | 54.7 | 20.3 | 72.1 | 22.2 | ||||||||||||
(Gain) loss on disposition of depreciable real estate, net | (3.2 | ) | 6.0 | (3.6 | ) | 5.7 | ||||||||||
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| |||||||||
Funds From Operations Available to Common Shareholders | 78.1 | 52.5 | 137.8 | 145.5 | ||||||||||||
Write-off of original preferred share issuance costs | — | 6.4 | — | 6.4 | ||||||||||||
Preferred dividends | 7.0 | 7.1 | 13.9 | 17.7 | ||||||||||||
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| |||||||||
Funds From Operations | $ | 85.1 | $ | 66.0 | $ | 151.7 | $ | 169.6 | ||||||||
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| |||||||||
Funds From Operations Available to Common Shareholders | ||||||||||||||||
Reconciliation to Operating FFO: | $ | 78.1 | $ | 52.5 | $ | 137.8 | $ | 145.5 | ||||||||
Non-cash impairment charges—non-depreciable consolidated assets | 25.5 | — | 25.5 | 3.8 | ||||||||||||
Loss on debt retirement, net | 7.9 | — | 13.5 | — | ||||||||||||
Other expense, net—litigation costs, debt extinguishment costs, lease liability settlement gain, transaction and other expenses | 3.7 | 6.3 | 5.4 | 5.0 | ||||||||||||
Equity in net income of joint ventures—currency adjustments, transaction and other expenses | 0.9 | (0.4 | ) | 1.0 | (0.8 | ) | ||||||||||
Non-cash impairment of joint venture investments on non-depreciable assets | — | 1.6 | — | 1.6 | ||||||||||||
Gain on disposition of non-depreciable real estate (land), net | (5.2 | ) | (1.0 | ) | (5.5 | ) | — | |||||||||
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 | (39.3 | ) | (1.0 | ) | (39.3 | ) | (22.7 | ) | ||||||||
Non-cash write off of original preferred share issuance costs | — | 6.4 | — | 6.4 | ||||||||||||
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| |||||||||
Total non-operating items | $ | (6.5 | ) | $ | 11.9 | $ | 0.6 | $ | (17.9 | ) | ||||||
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| |||||||||
Operating FFO Available to Common Shareholders | $ | 71.6 | $ | 64.4 | $ | 138.4 | $ | 127.6 | ||||||||
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| |||||||||
Per Share Information: | ||||||||||||||||
Funds From Operations—diluted | $ | 0.27 | $ | 0.19 | $ | 0.49 | $ | 0.45 | ||||||||
Operating FFO—diluted | $ | 0.25 | $ | 0.23 | $ | 0.49 | $ | 0.47 | ||||||||
Common Shares and OP Units: | ||||||||||||||||
Outstanding | 301.7 | 277.0 | 301.7 | 277.0 | ||||||||||||
Weighted average—diluted (FFO & OFFO) | 285.6 | 278.4 | 282.8 | 271.7 |
16
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Additional Financial Disclosures
(In Millions, Except Per Share Information)
2Q12 | 2Q11 | 6M12 | 6M11 | |||||||||||||
Dividends / Payout Ratio: | ||||||||||||||||
Common share dividends and operating partnership interests—per share | $ | 0.12 | $ | 0.04 | $ | 0.24 | $ | 0.08 | ||||||||
Common share dividends and operating partnership interests—declared | $ | 33.9 | $ | 11.1 | $ | 67.3 | $ | 21.8 | ||||||||
Dividend payout ratio | 47.4 | % | 17.5 | % | 48.6 | % | 17.1 | % | ||||||||
Revenues: | ||||||||||||||||
DDR revenues | $ | 196.4 | $ | 199.6 | $ | 393.2 | $ | 402.9 | ||||||||
Joint venture & managed revenues | 208.0 | 216.1 | 415.3 | 424.9 | ||||||||||||
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|
| |||||||||
Total revenues(1) | $ | 404.4 | $ | 415.7 | $ | 808.5 | $ | 827.8 | ||||||||
|
|
|
|
|
|
|
| |||||||||
G&A Expenses(2) | $ | 19.1 | $ | 18.0 | $ | 38.1 | $ | 36.7 | ||||||||
G&A Expenses as % of Total Revenues(2) | 4.7 | % | 4.3 | % | 4.7 | % | 4.4 | % | ||||||||
Net Operating Income: | ||||||||||||||||
DDR net operating income | $ | 139.5 | $ | 135.4 | $ | 275.7 | $ | 273.7 | ||||||||
Joint venture net operating income (at 100%) | 104.2 | 113.2 | 217.0 | 222.4 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total net operating income(1) | $ | 243.7 | $ | 248.6 | �� | $ | 492.7 | $ | 496.1 | |||||||
|
|
|
|
|
|
|
| |||||||||
Real Estate at Cost: | ||||||||||||||||
DDR real estate at cost | $ | 8,263.6 | $ | 8,419.4 | $ | 8,263.6 | $ | 8,419.4 | ||||||||
Joint venture real estate at cost (at 100%) | 7,266.5 | 6,706.8 | 7,266.5 | 6,706.8 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total real estate at cost | $ | 15,530.1 | $ | 15,126.2 | $ | 15,530.1 | $ | 15,126.2 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Non-Cash Disclosures (Income) / Expense: | ||||||||||||||||
Below-market rent revenue(3) | $ | (0.2 | ) | $ | (1.5 | ) | $ | (0.8 | ) | $ | (1.7 | ) | ||||
Straight-line rent revenue | (1.2 | ) | 0.2 | (1.7 | ) | (0.1 | ) | |||||||||
Joint venture straight-line rent revenue | (1.1 | ) | (1.2 | ) | (2.0 | ) | (2.6 | ) | ||||||||
DDR’s prorata share of straight-line rent revenue | (0.2 | ) | (0.3 | ) | (0.4 | ) | (0.7 | ) | ||||||||
Straight-line ground rent expense(3) | 0.3 | 0.5 | 0.6 | 1.0 | ||||||||||||
Debt premium amortization revenue(3) | (0.5 | ) | (0.6 | ) | (1.4 | ) | (1.1 | ) | ||||||||
Convertible debt accretion expense | 2.5 | 3.8 | 5.7 | 7.6 |
(1) | Includes activities from discontinued operations. |
(2) | The six months ended June 30, 2011 exclude an executive separation charge of $10.7 million. Including this charge, G&A expenses were approximately 5.7% of total revenues. |
(3) | Prorata share of joint venture is deminis. |
17
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
(In Millions) | 2Q12 | 2Q11 | ||||||
Debt / EBITDA - Consolidated | ||||||||
EBITDA: | ||||||||
Net loss attributable to DDR | $ | (37.5 | ) | $ | (13.4 | ) | ||
Adjustments: | ||||||||
Impairment charges | 80.2 | 0.8 | ||||||
Depreciation and amortization | 63.6 | 52.9 | ||||||
Depreciation attributable to non-controlling interests | (0.1 | ) | — | |||||
Interest expense | 54.6 | 56.2 | ||||||
Interest expense attributable to non-controlling interests | (0.1 | ) | (0.1 | ) | ||||
Gain on change in control of interests | (39.3 | ) | (1.0 | ) | ||||
Other expenses, net | 3.6 | 6.3 | ||||||
Equity in net income of joint ventures | (3.2 | ) | (16.6 | ) | ||||
Impairment of joint venture investments | — | 1.6 | ||||||
Loss on debt retirement, net | 7.9 | — | ||||||
Income tax expense | 0.4 | 0.4 | ||||||
EBITDA adjustments from discontinued operations(1) | (2.4 | ) | 34.7 | |||||
Gain on disposition of real estate, net | (5.2 | ) | (2.3 | ) | ||||
|
|
|
| |||||
EBITDA before JVs | 122.5 | 119.5 | ||||||
Pro rata share of JV FFO, net of interest expense | 12.6 | 14.8 | ||||||
Pro rata share of JV loss (gain) on transaction costs and other | 0.9 | (0.5 | ) | |||||
|
|
|
| |||||
EBITDA Consolidated | $ | 136.0 | $ | 133.8 | ||||
EBITDA Consolidated—Annualized | $ | 544.0 | $ | 535.2 | ||||
Consolidated indebtedness | $ | 4,095.8 | $ | 4,218.4 | ||||
Non-controlling interests’ share of consolidated debt | (20.6 | ) | (21.7 | ) | ||||
Adjustment to reflect convertible debt at face value | 37.3 | 50.4 | ||||||
Adjustment to reflect assumed debt at face value | (11.8 | ) | (4.3 | ) | ||||
|
|
|
| |||||
Total consolidated indebtedness | 4,100.7 | 4,242.8 | ||||||
Cash and restricted cash, net of non-controlling interests | (41.6 | ) | (45.6 | ) | ||||
|
|
|
| |||||
Total Consolidated Indebtedness, net of Cash | $ | 4,059.1 | $ | 4,197.2 | ||||
Debt / EBITDA—Consolidated | 7.46 | 7.84 | ||||||
Debt / EBITDA—Pro rata | ||||||||
EBITDA before JVs | $ | 122.5 | $ | 119.5 | ||||
Pro rata share of JV EBITDA | 26.5 | 27.4 | ||||||
|
|
|
| |||||
EBITDA including Pro rata Share of JVs | $ | 149.0 | $ | 146.9 | ||||
EBITDA including Pro rata Share of JVs—Annualized | $ | 596.0 | $ | 587.6 | ||||
Total consolidated indebtedness, net of cash | $ | 4,059.1 | $ | 4,197.2 | ||||
Pro rata share of JV debt(2) | 811.1 | 791.3 | ||||||
|
|
|
| |||||
Total pro rata indebtedness | 4,870.2 | 4,988.5 | ||||||
Pro rata share of JV cash and restricted cash | (128.3 | ) | (120.1 | ) | ||||
|
|
|
| |||||
Pro rata Indebtedness, net of Cash | $ | 4,741.9 | $ | 4,868.4 | ||||
Debt / EBITDA—Pro rata | 7.96 | 8.29 | ||||||
(1) Discontinued operations includes the following EBITDA adjustments: | ||||||||
Impairment charges | $ | — | $ | 19.4 | ||||
Interest expense, net | 0.4 | 3.7 | ||||||
Depreciation and amortization | 0.4 | 4.2 | ||||||
(Gain) loss on disposition of real estate, net | (3.2 | ) | 7.3 | |||||
Debt extinguishment costs and other | — | 0.1 | ||||||
|
|
|
| |||||
$ | (2.4 | ) | $ | 34.7 |
(2) | Includes $47.8 million and $50.3 million at June 30, 2012 and at June 30, 2011, respectively, of the Company’s pro rata share of non-recourse debt associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income. |
18
DDR
Quarterly Financial Supplement
For the six months ended June 30, 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 $10.9 million for the six months ended June 30, 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 six months ended June 30, 2012, the Company expensed $4.2 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 |
19
DDR
Quarterly Financial Supplement
For the six months ended June 30, 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. |
Capitalized Costs (In Millions) | 2Q12 | 2Q11 | 6M12 | 6M11 | ||||||||||||
Interest expense | $ | 3.3 | $ | 3.2 | $ | 6.4 | $ | 6.2 | ||||||||
Construction administration costs | $ | 2.2 | $ | 2.0 | $ | 4.5 | $ | 4.3 |
• | Interest expense and real estate taxes incurred during the construction period are capitalized and depreciated over the building life. |
• | During the six months ended June 30, 2012, the Company expensed $1.3 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. |
20
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Other Real Estate Information
Total Capital Expenditures
• | The Company incurred the following estimated leasing and maintenance capital expenditures: |
Capital Expenditures (In Millions) | Consolidated 6M12 | Unconsolidated at Prorata 6M12 | ||||||
Leasing | $ | 15.9 | $ | 3.0 | ||||
Maintenance | 2.9 | 0.2 | ||||||
|
|
|
| |||||
Total Capital Expenditures | $ | 18.8 | $ | 3.2 | ||||
|
|
|
| |||||
Per Square Foot of Owned GLA | ||||||||
Leasing | $ | 0.34 | $ | 0.51 | ||||
Maintenance | 0.06 | 0.03 | ||||||
|
|
|
| |||||
Total Capital Expenditures | $ | 0.40 | $ | 0.54 | ||||
|
|
|
|
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 $100 million, considered non-incoming producing at June 30, 2012. |
21
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Joint Venture Investment Summary(1)
($ and GLA In Millions; all Values at 100%)
Legal Name | Partner | DDR Own. % | # 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 | 11.6 | $ | 132.0 | $ | 1,997.9 | $ | 1,102.2 | |||||||||||||||
DDR Domestic Retail Fund I | Various Institutional Investors | 20 | % | 59 | 8.2 | 88.0 | 1,438.2 | 930.2 | ||||||||||||||||||
BRE DDR Retail Holdings, LLC | Blackstone Real Estate Partners VII | 5 | % | 46 | 10.6 | 117.7 | 1,286.7 | 921.1 | ||||||||||||||||||
Sonae Sierra Brasil BV Sarl | Sonae Sierra, SGPS, SA | 33.3 | % | 11 | 4.1 | 126.0 | 798.9 | 368.7 | ||||||||||||||||||
DDR-SAU Retail Fund, LLC | State of Utah | 20 | % | 27 | 2.4 | 23.7 | 308.0 | 183.1 | ||||||||||||||||||
DDR Markaz II LLC | Kuwait Financial Centre | 20 | % | 13 | 1.6 | 15.7 | 206.3 | 147.4 | ||||||||||||||||||
Other Unconsolidated JV Interests | Various | Various | 19 | 3.4 | 36.1 | 366.0 | 288.5 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
215 | 41.9 | $ | 539.2 | $ | 6,402.0 | $ | 3,941.2 | |||||||||||||||||||
Unconsolidated Joint Ventures —No Economic Interests | ||||||||||||||||||||||||||
Coventry II Joint Ventures | Coventry II Fund | 10%-20% | 47 | (2) | 5.9 | 60.3 | $ | 864.4 | $ | 632.5 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total Unconsolidated Joint Ventures | 262 | 47.8 | $ | 599.5 | $ | 7,266.4 | $ | 4,573.7 |
(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. |
22
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Joint Venture Combining Financial Statements
(In Millions)
Combining Condensed Statements of Operations
Total Unconsolidated JVs (1) | DDR’s Pro rata Share (1) | |||||||||||
6M12 | 2Q12 | 2Q12 | ||||||||||
Revenues: | ||||||||||||
Minimum rents | $ | 245.4 | $ | 123.2 | $ | 25.9 | ||||||
Percentage and overage rents | 1.1 | 0.6 | 0.1 | |||||||||
Recoveries from tenants | 54.1 | 26.8 | 4.9 | |||||||||
Other | 43.6 | 23.9 | 7.5 | |||||||||
|
|
|
|
|
| |||||||
344.2 | 174.5 | 38.4 | ||||||||||
Expenses: | ||||||||||||
Operating and maintenance | (91.3 | ) | (52.0 | ) | (9.6 | ) | ||||||
Real estate taxes | (36.2 | ) | (18.2 | ) | (3.3 | ) | ||||||
Impairment charges | (7.7 | ) | (6.9 | ) | (0.7 | ) | ||||||
|
|
|
|
|
| |||||||
Net operating income | 209.0 | 97.4 | 24.8 | (3) | ||||||||
Depreciation and amortization expense | (88.0 | ) | (45.1 | ) | (8.1 | ) | ||||||
Interest expense | (120.1 | ) | (62.0 | ) | (11.5 | ) | ||||||
|
|
|
|
|
| |||||||
Income (loss) before other items | 0.9 | (9.7 | ) | 5.2 | ||||||||
Income tax expense | (12.2 | ) | (6.2 | ) | (2.1 | ) | ||||||
|
|
|
|
|
| |||||||
Income from continuing operations | (11.3 | ) | (15.9 | ) | 3.1 | |||||||
Discontinued operations: | ||||||||||||
Income from operations | (0.4 | ) | — | — | ||||||||
Loss on disposition | 0.1 | 0.2 | — | |||||||||
|
|
|
|
|
| |||||||
Income before gain on disposition of assets | (11.6 | ) | (15.7 | ) | 3.1 | |||||||
Gain on disposition of assets | 13.1 | (0.8 | ) | — | ||||||||
Disproportionate share of income (loss) | — | — | — | (2) | ||||||||
|
|
|
|
|
| |||||||
Net income | $ | 1.5 | $ | (16.5 | ) | $ | 3.1 | |||||
Non-controlling interests | (13.5 | ) | (4.6 | ) | (1.5 | ) | ||||||
|
|
|
|
|
| |||||||
Net income attributable to unconsolidated joint ventures | $ | (12.0 | ) | $ | (21.1 | ) | $ | 1.6 | ||||
DDR ownership interests | 13.4 | 3.2 | 3.2 | |||||||||
Amortization of basis differential | (1.9 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
$ | 11.5 | $ | 3.2 | $ | 3.2 | |||||||
|
|
|
|
|
| |||||||
Funds From Operations: | ||||||||||||
Net income attributable to unconsolidated joint ventures | $ | (12.0 | ) | $ | (21.1 | ) | $ | 1.6 | ||||
Depreciation of real property | 89.4 | 44.1 | 7.8 | |||||||||
(Gain) loss on disposition of depreciable real estate | (13.2 | ) | 0.5 | — | ||||||||
Impairments of depreciable real estate | 8.2 | 6.9 | 0.7 | |||||||||
Disproportionate share of income | — | — | 2.5 | (2) | ||||||||
|
|
|
|
|
| |||||||
$ | 72.4 | $ | 30.4 | $ | 12.6 | |||||||
|
|
|
|
|
| |||||||
FFO at DDR ownership interests | $ | 26.6 | $ | 12.6 | ||||||||
|
|
|
| |||||||||
Operating FFO at DDR ownership interests | $ | 27.6 | $ | 13.5 | ||||||||
|
|
|
|
(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 $26.5 million for the three-month period ended June 30, 2012. |
23
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Joint Venture Combining Financial Statements
(In Millions)
Combining Condensed Balance Sheets
Total Unconsolidated JVs (1) | ||||||||
June 30, 2012 | December 31, 2011 | |||||||
Land | $ | 1,637.5 | $ | 1,400.5 | ||||
Buildings | 5,255.5 | 4,334.1 | ||||||
Fixtures and tenant improvements | 209.6 | 190.0 | ||||||
|
|
|
| |||||
7,102.6 | 5,924.6 | |||||||
Less: Accumulated depreciation | (828.2 | ) | (808.3 | ) | ||||
|
|
|
| |||||
6,274.4 | 5,116.3 | |||||||
Land held for development and construction in progress | 163.8 | 239.0 | ||||||
|
|
|
| |||||
Real estate, net | 6,438.2 | 5,355.3 | ||||||
Cash and restricted cash | 440.3 | 308.0 | ||||||
Receivables, including straight-line rent, net | 102.5 | 108.0 | ||||||
Other assets, net | 323.7 | 177.2 | ||||||
|
|
|
| |||||
$ | 7,304.7 | $ | 5,948.5 | |||||
|
|
|
| |||||
Mortgage debt | $ | 4,573.7 | (3) | $ | 3,742.2 | (3) | ||
Notes and accrued interest payable to DDR | 140.8 | 100.5 | ||||||
Other liabilities | 256.3 | 214.4 | ||||||
|
|
|
| |||||
4,970.8 | 4,057.1 | |||||||
Redeemable preferred equity | 150.0 | — | ||||||
Accumulated equity | 2,183.9 | 1,891.4 | ||||||
|
|
|
| |||||
$ | 7,304.7 | $ | 5,948.5 | |||||
|
|
|
| |||||
DDR’s Pro rata Share(1) | ||||||||
June 30, 2012 | December 31, 2011 | |||||||
Land | $ | 281.2 | $ | 274.4 | ||||
Buildings | 935.1 | 893.1 | ||||||
Fixtures and tenant improvements | 51.8 | 47.4 | ||||||
|
|
|
| |||||
1,268.1 | 1,214.9 | |||||||
Less: Accumulated depreciation | (179.9 | ) | (181.8 | ) | ||||
|
|
|
| |||||
1,088.2 | 1,033.1 | |||||||
Land held for development and construction in progress | 53.5 | 75.9 | ||||||
|
|
|
| |||||
Real estate, net | 1,141.7 | 1,109.0 | ||||||
|
|
|
| |||||
Cash and restricted cash | 128.3 | 93.8 | ||||||
Receivables, including straight-line rent, net | 26.4 | 27.5 | ||||||
Other assets, net | 48.5 | 42.3 | ||||||
Disproportionate share of equity | 135.4 | (2) | (18.4 | )(2) | ||||
|
|
|
| |||||
$ | 1,480.3 | $ | 1,254.2 | |||||
|
|
|
| |||||
Mortgage debt | $ | 811.1 | (3) | $ | 772.9 | (3) | ||
Notes and accrued interest payable to DDR | 14.5 | 12.0 | ||||||
Other liabilities | 55.5 | 49.9 | ||||||
|
|
|
| |||||
881.1 | 834.8 | |||||||
Redeemable preferred equity | 150.0 | — | ||||||
|
|
|
| |||||
1,031.1 | 834.8 | |||||||
Accumulated equity | 447.6 | 433.0 | ||||||
Disproportionate share of equity | 1.6 | (2) | (13.6 | )(2) | ||||
|
|
|
| |||||
$ | 1,480.3 | $ | 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 $298.9 million and $300.3 million of mortgage debt at June 30, 2012 and December 31, 2011, respectively, of which the Company’s prorata share of non-recourse mortgage debt is $47.8 million and $48.1 million, respectively, associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income. |
24
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Property Acquisitions
($ in Millions, GLA and Demographics In Thousands)
Trade Area Demographics | ||||||||||||||||||||||||||
Date | Location | Property | DDR Own. % | Total GLA | Aggregate Pro rata Price | Population | Avg. HH. Income | Anchors | ||||||||||||||||||
3/12 | Tinley Park, IL | Brookside Marketplace | 100 | % | 560.7 | $ | 47.4 | 588.0 | $ | 85.1 | Super Target, Kohl’s, | |||||||||||||||
Dick’s Sporting Goods, | ||||||||||||||||||||||||||
Homegoods, PetSmart, | ||||||||||||||||||||||||||
Old Navy, Ulta | ||||||||||||||||||||||||||
Best Buy, OfficeMax | ||||||||||||||||||||||||||
4/12 | Phoenix, AZ | Arrowhead Crossing | 100 | % | 416.6 | 30.0 | (1) | 626.6 | 74.5 | Nordstrom Rack, DSW, | ||||||||||||||||
Hobby Lobby, JoAnn Fabric, | ||||||||||||||||||||||||||
J.C. Penney Homestore, | ||||||||||||||||||||||||||
Barnes & Noble, Savers, | ||||||||||||||||||||||||||
Ross Dress for Less, | ||||||||||||||||||||||||||
Staples, Old Navy, Golfsmith, | ||||||||||||||||||||||||||
HomeGoods, T.J.Maxx | ||||||||||||||||||||||||||
4/12 | Portland, OR | Tanasbourne Town Center | 100 | % | 643.3 | 40.0 | (1) | 425.5 | 82.8 | Target, Nordstrom Rack, | ||||||||||||||||
Bed, Bath, & Beyond, | ||||||||||||||||||||||||||
Ross Dress for Less, | ||||||||||||||||||||||||||
Michaels, Famous Footwear, | ||||||||||||||||||||||||||
Petco, Barnes & Noble, | ||||||||||||||||||||||||||
Office Depot, Old Navy | ||||||||||||||||||||||||||
6/12 | Various | Portfolio of 46 former | 5 | % | 10,619.2 | 71.4 | (2) | Various | Various | TJX Companies, Walmart, | ||||||||||||||||
EDT assets | Dick’s Sporting Goods, | |||||||||||||||||||||||||
PetSmart, Home Depot, | ||||||||||||||||||||||||||
Bed Bath & Beyond, | ||||||||||||||||||||||||||
Old Navy, JoAnn Fabric, | ||||||||||||||||||||||||||
Kohl’s, Best Buy | ||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||
Total Acquisitions | 12,239.8 | $ | 148.8 |
(1) | DDR acquired its partner’s 50% ownership interest in this asset. |
(2) | Represents DDR’s 5% common equity interest. Transaction also included a preferred equity investment of $150 million. |
25
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Property Dispositions
($ in Millions, GLA and Demographics In Thousands)
Trade Area Demographics | ||||||||||||||||||||||||||||||||
Date | Location | Joint Venture | DDR Own. % | Total GLA | Gross Price | Relinquished Debt | Population | Avg. HH. Income | Anchors | |||||||||||||||||||||||
1/12 | West Seneca, NY | 100 | % | 62.9 | $ | 2.5 | $ | — | 314.4 | $ | 55.5 | Planet Fitness | ||||||||||||||||||||
1/12 | Concord, NC | 100 | % | 10.9 | 1.7 | — | 192.2 | 80.7 | Rite Aid | |||||||||||||||||||||||
2/12 | Connellsville, PA | 100 | % | 10.9 | 3.0 | — | 41.6 | 46.2 | Rite Aid | |||||||||||||||||||||||
2/12 | Tiffin, OH | 100 | % | 185.8 | 0.8 | — | 64.2 | 54.7 | Cinemark, | |||||||||||||||||||||||
J.C. Penney | ||||||||||||||||||||||||||||||||
2/12 | Barboursville, WV | 100 | % | 70.9 | 1.6 | — | 191.6 | 52.0 | Ashley Furniture, | |||||||||||||||||||||||
JoAnn Fabric | ||||||||||||||||||||||||||||||||
2/12 | Tampa, FL | DDRTC | 15 | % | 28.5 | 4.0 | — | 223.5 | 76.0 | — | ||||||||||||||||||||||
3/12 | Fort Worth, TX | 100 | % | 10.9 | 2.7 | — | 362.1 | 62.8 | CVS Pharmacy | |||||||||||||||||||||||
4/12 | Birmingham, AL | 100 | % | 300.3 | 3.0 | — | 218.9 | 66.7 | Burlington Coat | |||||||||||||||||||||||
Factory, Dollar Tree | ||||||||||||||||||||||||||||||||
4/12 | Lawrenceville, GA | 100 | % | 105.0 | 3.0 | — | 323.7 | 84.8 | Hobby Lobby | |||||||||||||||||||||||
4/12 | Idaho Falls, ID | 100 | % | 138.5 | 1.5 | — | 139.0 | 64.8 | Office Max | |||||||||||||||||||||||
4/12 | Two Rite Aids | 100 | % | 23.6 | 4.7 | — | 294.6 | 53.6 | Rite Aid | |||||||||||||||||||||||
4/12 | Erie, PA | 100 | % | 96.0 | 1.0 | — | 175.7 | 56.9 | West Teleservices | |||||||||||||||||||||||
4/12 | Mt. Vernon, IL | 100 | % | 269.3 | 3.5 | — | 92.2 | 51.8 | Dunham’s Sports, | |||||||||||||||||||||||
J.C. Penney, Sears | ||||||||||||||||||||||||||||||||
5/12 | Chamblee, GA | 100 | % | 167.4 | 4.7 | — | 509.0 | 101.8 | — | |||||||||||||||||||||||
5/12 | Englewood, FL | 100 | % | 46.8 | 0.7 | 0.5 | 43.3 | 59.8 | — | |||||||||||||||||||||||
5/12 | Cincinnati, OH | 100 | % | 235.4 | 3.7 | — | 413.2 | 60.9 | — | |||||||||||||||||||||||
5/12 | Ottumwa, IA | 100 | % | 276.8 | 3.0 | — | 90.2 | 52.5 | Herberger’s, | |||||||||||||||||||||||
J.C. Penney, Aldi | ||||||||||||||||||||||||||||||||
6/12 | Silver Springs, MD | 100 | % | 288.4 | 31.1 | — | 594.7 | 94.6 | — | |||||||||||||||||||||||
6/12 | Cheboygan, MI | 100 | % | 170.8 | 0.5 | — | 40.0 | 50.7 | Kmart | |||||||||||||||||||||||
6/12 | Santa Rosa Beach, FL | DDRM | 20 | % | 43.2 | 6.8 | — | 14.0 | 76.3 | Publix | ||||||||||||||||||||||
Various(1) | 100 | % | — | 41.8 | — | |||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||
Total Dispositions | 2,542.3 | $ | 125.3 | $ | 0.5 | |||||||||||||||||||||||||||
Total Dispositions - Q2 2012 | 2,161.5 | $ | 80.5 | $ | 0.5 |
(1) | Gross price includes the proceeds from land sales. |
26
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Summary of Consolidated Land Held for Development and Construction in Progress
($ In Millions, GLA In Thousands of SF)
As of June 30, 2012 | 2012 Activity | |||||||||||||||||||||||||||
Land | CIP | Total | Net Expenditures YTD | Net Projected Expenditures 2H12(1) | Placed In Service YTD | To Be Placed In Service 2H12 | ||||||||||||||||||||||
Ground up Development Projects in Progress | $ | 19.7 | $ | 0.8 | $ | 20.5 | $ | 9.3 | $ | 26.8 | $ | — | $ | — | ||||||||||||||
Ground up Development Projects Primarily on Hold | 267.3 | 136.0 | 403.3 | (33.8 | ) | (68.9 | ) | — | — | |||||||||||||||||||
Substantially Completed Projects Pending Lease Up | 31.3 | 32.9 | 64.2 | (2.5 | ) | (0.5 | ) | 1.1 | 0.9 | |||||||||||||||||||
Redevelopment Projects | 22.0 | 65.2 | 87.2 | 47.8 | 84.6 | 24.5 | 96.2 | |||||||||||||||||||||
Leasing Capital Expenditures | — | 5.4 | 5.4 | 15.9 | 11.2 | 15.3 | 13.3 | |||||||||||||||||||||
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$ | 340.3 | $ | 240.3 | $ | 580.6 | $ | 36.7 | $ | 53.2 | $ | 40.9 | $ | 110.4 |
Summary of Significant Wholly-Owned and Consolidated Development Projects in Progress
Location | Project | Est. Initial Owned Anchor Opening | Est. Total GLA | Est. Owned GLA | Est. Net Cost (1) | Cost Incurred To Date | Assets Placed in Service | Anchors | ||||||||||||||||||||
Charlotte, NC | Belgate | 2Q13 | 889.7 | 173.7 | $ | 17.8 | $ | 20.5 | — | Walmart, IKEA, Hobby Lobby, Ulta, Marshalls, Cost Plus World Market, PetSmart, Old Navy, Shoe Carnival | ||||||||||||||||||
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889.7 | 173.7 | $ | 17.8 | $ | 20.5 | $ | — |
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 | Anchors | |||||||||||||||||
Denver, CO | Tamarac Square | 151.3 | 11.5 | $ | 2.0 | $ | 3.1 | $ | 1.7 | Target | ||||||||||||||
Littleton, CO | Aspen Grove | 46.7 | 46.7 | 13.6 | 2.3 | — | Alamo Drafthouse Cinema | |||||||||||||||||
Miami (Plantation), FL | The Fountains | 273.4 | 273.4 | 58.9 | 54.4 | 41.6 | Kohl’s, Dick’s Sporting Goods, | |||||||||||||||||
Marshalls/HomeGoods, Total Wine | ||||||||||||||||||||||||
Bayamon, PR | Rexville Plaza | 43.8 | 43.8 | 8.2 | 5.1 | 0.9 | CVS, Marshalls | |||||||||||||||||
Hatillo, PR | Plaza Del Norte | 88.5 | 88.5 | 10.1 | 7.5 | 5.9 | J.C. Penney expansion, PetSmart, | |||||||||||||||||
Rooms to Go, T.J.Maxx | ||||||||||||||||||||||||
Charleston, SC | Ashley Crossing | 124.4 | 124.4 | 8.9 | 6.0 | 5.8 | Kohl’s, Marshalls, Shoe Carnival, | |||||||||||||||||
JoAnn Fabric | ||||||||||||||||||||||||
San Antonio, TX(2) | Terrell Plaza | 225.7 | 90.8 | 12.0 | 8.4 | 0.5 | Target, Ross Dress for Less | |||||||||||||||||
Midvale, UT | Family Center at Ft. Union | 82.7 | 78.7 | 13.2 | 4.8 | 2.6 | Dick’s Sporting Goods, Gordmans | |||||||||||||||||
Riverdale, UT | Family Center at Riverdale | 88.2 | 88.2 | 5.6 | 2.8 | — | Best Buy, Gordmans | |||||||||||||||||
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| |||||||||||||||
1,124.7 | 846.0 | $ | 132.5 | $ | 94.4 | $ | 59.0 | |||||||||||||||||
CIP for projects listed above: | 35.4 | |||||||||||||||||||||||
CIP for other Redevelopment Projects: | 51.8 | |||||||||||||||||||||||
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| |||||||||||||||||||||||
Total amount included in CIP at June 30, 2012 for Redevelopment Projects: |
| $ | 87.2 |
(1) | Includes receipts and expected future reductions from land sales and reimbursements. |
(2) | Consolidated 50% joint venture |
27
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Summary of Joint Venture Land Held for Development and Construction in Progress
($ In Millions, GLA In Thousands of SF)
As of June 30, 2012 | 2012 Activity | |||||||||||||||||||||||||||
Land | CIP | Total | Net Expenditures YTD | Net Projected Expenditures 2H12(1) | Placed In Service YTD | To Be Placed In Service 2H12(1) | ||||||||||||||||||||||
Substantially Completed Ground Up Developments | $ | — | $ | 3.5 | $ | 3.5 | $ | 17.7 | $ | 1.2 | $ | 88.0 | $ | 4.7 | ||||||||||||||
Ground up Development Projects in Progress | 29.5 | 122.6 | 152.1 | 23.4 | 89.6 | — | — | |||||||||||||||||||||
Substantially Completed Projects Pending Lease Up | 2.0 | — | 2.0 | 1.0 | — | 19.5 | — | |||||||||||||||||||||
Redevelopment Projects | — | 1.2 | 1.2 | 6.8 | 21.3 | 11.1 | 15.1 | |||||||||||||||||||||
Leasing Capital Expenditures | — | 5.0 | 5.0 | 20.5 | 15.9 | 16.5 | 15.7 | |||||||||||||||||||||
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| |||||||||||||||
Total | $ | 31.5 | $ | 132.3 | $ | 163.8 | $ | 69.4 | $ | 128.0 | $ | 135.1 | $ | 35.5 |
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 | Anchors | ||||||||||||||||||||
Uberlandia, Brazil | Patio Uberlandia | 33.3 | % | 488.1 | 488.1 | $ | 91.0 | $ | 91.5 | $ | 88.0 | Walmart, Cinemark, Centuaro, Fast Shop, Leroy Merlin, Renner, Ponto Frio, Kalunga, Livraria Leitura, Memove, Le Biscuit, Le Lis Blanc | ||||||||||||||||
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| |||||||||||||||||||
Total | 488.1 | 488.1 | $ | 91.0 | $ | 91.5 | $ | 88.0 |
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 | Anchors | ||||||||||||||||||||
Goiania, Brazil | Passeio Das Aguas | 33.3 | % | 806.4 | 806.4 | $ | 184.5 | $ | 58.6 | $ | — | Bretas, Cinemark, Magic Games | ||||||||||||||||
Londrina, Brazil | Boulevard Londrina | 28.2 | % | 518.2 | 518.2 | 139.1 | 93.5 | — | Walmart, Cinemark, PB Kids, Magazine Luiza, Kalunga, Luigi Bertolli, Saraiva, Centuaro, Memove, Renner | |||||||||||||||||||
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| |||||||||||||||||||
Total | 1,324.6 | 1,324.6 | $ | 323.6 | $ | 152.1 | $ | — | ||||||||||||||||||||
Total Land Held for Development and CIP for Ground Up Developments in Progress at June 30, 2012 |
| $ | 152.1 |
(1) | Includes receipts and expected future reductions from land sales and reimbursements. |
28
DDR
Quarterly Financial Supplement
For the six months ended June 30, 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 | |||||
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 | % | 30.7 | |||||
Toronto (East Gwillimbury—Hwy 404/Greenlane West), CAN | 50 | % | 28.8 | |||||
Toronto (Richmond Hill), CAN | 50 | % | 52.0 | |||||
Togliatti, Russia | 75 | % | 61.2 | |||||
Other Misc. Land (6 sites) | 100 | % | Various | |||||
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| |||||||
806.8 | ||||||||
(In Millions) | ||||||||
Total Ground Up Development Projects Primarily on Hold at June 30, 2012: | $ | 403.3 | (1) |
(1) | Includes partners’ ownership interests of $84.7 million. |
29
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Portfolio Summary
(GLA In millions)
Shopping Centers(Economic Interest) | ||||
Operating Centers | 456 | |||
Owned GLA (at 100%) | 84.0 | |||
Additional Ground Lease GLA | 5.3 | |||
Additional Unowned GLA | 26.5 | |||
Base Rent PSF | $ | 13.80 | ||
Leased Rate (at 100%) | 93.7 | % | ||
Commenced Rate (at 100%) | 92.1 | % | ||
Leased Rate (at Pro Rata) | 94.5 | % | ||
Prime Portfolio(Subset of Economic Interest) | ||||
Operating Centers | 290 | |||
Owned GLA (at 100%) | 66.7 | |||
Additional Ground Lease GLA | 4.8 | |||
Additional Unowned GLA | 22.6 | |||
Base Rent PSF | $ | 14.51 | ||
Leased Rate (at 100%) | 95.2 | % | ||
% of Total NOI (T12) | 89.2 | % | ||
Shopping Centers(No Economic Interest) | ||||
Operating Centers | 3 | |||
Owned GLA | 0.6 | |||
Additional Ground Lease GLA | — | |||
Additional Unowned GLA | 0.3 |
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 | $ | 31.69 | ||
Leased Rate (at 100%) | 98.0 | % | ||
% of Pro Rata NOI (T12) | 6.7 | % | ||
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 | $ | 18.89 | ||
Leased Rate (at 100%) | 96.2 | % | ||
% of Pro Rata NOI (T12) | 15.6 | % | ||
Business Centers | ||||
Operating Centers | 1 | |||
Owned GLA (at 100%) | 0.1 |
Same Store NOI(1)
($ In Millions)
At 100% | 2Q12 | 2Q11 | Change | |||||||||
Same Store NOI | $ | 206.1 | $ | 198.4 | 3.9 | % | ||||||
Non Same Store NOI | 24.9 | 32.3 | ||||||||||
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| |||||||||
$ | 231.0 | $ | 230.7 | |||||||||
Reconciliation to Income Statement | ||||||||||||
2Q12 | 2Q11 | |||||||||||
Consolidated at 100% | ||||||||||||
Revenues | $ | 194.7 | $ | 186.9 | ||||||||
Fee Income | (11.2 | ) | (11.9 | ) | ||||||||
Other Revenues | (0.1 | ) | (1.0 | ) | ||||||||
Operating & Maintenance | (31.0 | ) | (33.8 | ) | ||||||||
Real Estate Taxes | (25.6 | ) | (25.2 | ) | ||||||||
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| |||||||||
126.8 | 115.0 | |||||||||||
Unconsolidated at 100% | ||||||||||||
Revenues | 174.5 | 175.7 | ||||||||||
Operating & Maintenance | (52.0 | ) | (41.5 | ) | ||||||||
Real Estate Taxes | (18.2 | ) | (18.5 | ) | ||||||||
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| |||||||||
104.2 | 115.7 | |||||||||||
Total NOI at 100% | $ | 231.0 | $ | 230.7 | ||||||||
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|
At DDR Share | 2Q12 | 2Q11 | Change | |||||||||
Same Store NOI | $ | 128.9 | $ | 125.1 | 3.1 | % | ||||||
Non Same Store NOI | 23.1 | 17.4 | ||||||||||
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| |||||||||
$ | 152.0 | $ | 142.5 | |||||||||
Reconciliation to Income Statement | ||||||||||||
2Q12 | 2Q11 | |||||||||||
Consolidated at DDR Share | ||||||||||||
Consolidated at 100% | $ | 126.8 | $ | 115.0 | ||||||||
JV Share of Cons. NOI | (0.3 | ) | (0.3 | ) | ||||||||
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| |||||||||
126.5 | 114.6 | |||||||||||
Unconsolidated at DDR Share | ||||||||||||
Revenues | 38.4 | 40.0 | ||||||||||
Operating & Maintenance | (9.6 | ) | (8.7 | ) | ||||||||
Real Estate Taxes | (3.3 | ) | (3.4 | ) | ||||||||
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| |||||||||
25.5 | 27.9 | |||||||||||
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| |||||||||
Total NOI at DDR Share | $ | 152.0 | $ | 142.5 | ||||||||
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|
|
(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). Properties acquired in the BRE DDR Retail Holdings, LLC joint venture are also excluded. |
30
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Lease Expiration Schedule (at 100%)
Greater than 10,000 SF | ||||||||||||||||
Year | Leases | ABR (mil) | Rent PSF | % of ABR | ||||||||||||
2012 | 47 | $ | 13.8 | $ | 10.66 | 1.4 | % | |||||||||
2013 | 162 | 42.3 | 9.58 | 4.1 | % | |||||||||||
2014 | 223 | 71.8 | 9.99 | 7.0 | % | |||||||||||
2015 | 217 | 69.6 | 10.08 | 6.8 | % | |||||||||||
2016 | 236 | 78.0 | 10.90 | 7.6 | % | |||||||||||
2017 | 210 | 80.9 | 10.10 | 7.9 | % | |||||||||||
2018 | 114 | 41.9 | 10.38 | 4.1 | % | |||||||||||
2019 | 104 | 46.7 | 11.29 | 4.6 | % | |||||||||||
2020 | 81 | 29.1 | 10.45 | 2.9 | % | |||||||||||
2021 | 104 | 43.8 | 10.61 | 4.3 | % | |||||||||||
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| |||||||||
2012-2021 | 1,498 | $ | 517.9 | $ | 10.40 | 50.7 | % | |||||||||
Total Rent Roll | 1,661 | $ | 593.7 | $ | 10.34 | 58.2 | % |
Less than 10,000 SF | ||||||||||||||
Leases | ABR (mil) | Rent PSF | % of ABR | |||||||||||
812 | $ | 42.0 | $ | 30.97 | 4.1 | % | ||||||||
1,364 | 70.7 | 22.86 | 6.9 | % | ||||||||||
1,299 | 68.1 | 25.81 | 6.7 | % | ||||||||||
1,064 | 59.9 | 24.10 | 5.9 | % | ||||||||||
1,070 | 65.7 | 25.15 | 6.4 | % | ||||||||||
787 | 46.7 | 25.55 | 4.6 | % | ||||||||||
196 | 17.6 | 24.69 | 1.7 | % | ||||||||||
116 | 10.1 | 24.91 | 1.0 | % | ||||||||||
116 | 9.4 | 22.73 | 0.9 | % | ||||||||||
165 | 13.3 | 23.97 | 1.3 | % | ||||||||||
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|
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| |||||||
6,989 | $ | 403.5 | $ | 25.07 | 39.5 | % | ||||||||
7,361 | $ | 426.8 | $ | 24.81 | 41.8 | % |
Annual Metrics(at 100%)
| ||||||||||||
Period Ending | Centers | Leased Rate | ABR PSF | |||||||||
Q2 2012 | 456 | 93.7 | % | $ | 13.80 | |||||||
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 | 83.4 | % | 8.2 | % | 21.6 | % | ||||||
2,500-4,999 | 84.2 | % | 8.2 | % | 20.4 | % | ||||||
5,000-9,999 | 87.3 | % | 9.0 | % | 18.0 | % | ||||||
10,000-19,999 | 94.8 | % | 9.9 | % | 8.1 | % | ||||||
> 20,000 | 96.9 | % | 64.7 | % | 31.9 | % | ||||||
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| |||||||
Total | 93.7 | % | 100.0 | % | 100.0 | % | ||||||
Portfolio Concentration(at 100%) | ||||||||||||
% of ABR | MSF | % of GLA | ||||||||||
Brazil | 11.8 | % | 4.1 | 4.6 | % | |||||||
Florida | 8.5 | % | 9.6 | 10.7 | % | |||||||
Georgia | 8.4 | % | 8.9 | 9.9 | % | |||||||
Puerto Rico | 7.5 | % | 4.7 | 5.3 | % | |||||||
New York | 6.7 | % | 7.7 | 8.6 | % | |||||||
Ohio | 6.5 | % | 6.5 | 7.3 | % | |||||||
North Carolina | 5.9 | % | 5.5 | 6.2 | % | |||||||
New Jersey | 4.5 | % | 3.2 | 3.6 | % | |||||||
Pennsylvania | 3.4 | % | 3.2 | 3.6 | % | |||||||
Illinois | 3.3 | % | 2.2 | 2.4 | % |
31
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Leasing Summary - 2Q 2012
($, 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, “Comparable”, 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.
Second 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 | 70 | 283 | $ | 18.38 | $ | 5,199 | $ | 16.60 | $ | 4,696 | 10.7 | % | 8.2 | $ | 19.59 | |||||||||||||||||||||
Non-comp | 130 | 603 | 14.69 | 8,862 | N/A | N/A | N/A | 8.4 | 10.41 | |||||||||||||||||||||||||||
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New Leases - Total | 200 | 886 | 15.86 | 14,061 | N/A | N/A | 10.7 | % | 8.3 | 13.19 | ||||||||||||||||||||||||||
Renewals | 226 | 1,801 | 13.94 | 25,105 | 13.14 | 23,672 | 6.1% | 4.9 | 0.05 | |||||||||||||||||||||||||||
Total | 426 | 2,687 | $ | 14.57 | $ | 39,166 | $ | 13.61 | $ | 28,368 | 6.8 | % | 6.0 | $ | 4.54 | |||||||||||||||||||||
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Second 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 | 70 | 153 | $ | 20.39 | $ | 3,120 | $ | 16.69 | $ | 2,554 | 22.2 | % | 8.5 | $ | 36.22 | |||||||||||||||||||||
Non-comp | 130 | 414 | 15.05 | 6,228 | N/A | N/A | N/A | 8.5 | 15.50 | |||||||||||||||||||||||||||
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New Leases - Total | 200 | 567 | 16.49 | 9,348 | N/A | N/A | 22.2 | % | 8.5 | 20.88 | ||||||||||||||||||||||||||
Renewals | 226 | 1,200 | 12.77 | 15,322 | 12.07 | 14,478 | 5.8 | % | 4.9 | 0.08 | ||||||||||||||||||||||||||
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Total | 426 | 1,767 | $ | 13.96 | $ | 24,670 | $ | 12.59 | $ | 17,032 | 8.3 | % | 6.1 | $ | 6.93 | |||||||||||||||||||||
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32
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Leasing Summary - YTD 2012
($, 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, “Comparable”, 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.
YTD 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 | 133 | 523 | $ | 18.28 | $ | 9,565 | $ | 16.85 | $ | 8,814 | 8.5 | % | 7.9 | $ | 12.36 | |||||||||||||||||||||
Non-comp | 232 | 1,187 | 14.16 | 16,806 | N/A | N/A | N/A | 7.9 | 11.62 | |||||||||||||||||||||||||||
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New Leases - Total | 365 | 1,710 | 15.42 | 26,371 | N/A | N/A | 8.5 | % | 7.9 | 11.84 | ||||||||||||||||||||||||||
Renewals | 569 | 3,979 | 14.58 | 57,992 | 13.79 | 54,871 | 5.7 | % | 5.1 | 0.08 | ||||||||||||||||||||||||||
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Total | 934 | 5,689 | $ | 14.83 | $ | 84,363 | $ | 14.15 | $ | 63,685 | 6.1 | % | 5.9 | $ | 3.76 | |||||||||||||||||||||
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YTD 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 | 133 | 357 | $ | 17.87 | $ | 6,384 | $ | 15.61 | $ | 5,575 | 14.5 | % | 8.3 | $ | 18.10 | |||||||||||||||||||||
Non-comp | 232 | 841 | 14.51 | 12,208 | N/A | N/A | N/A | 8.0 | 17.08 | |||||||||||||||||||||||||||
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New Leases - Total | 365 | 1,198 | 15.52 | 18,592 | N/A | N/A | 14.5 | % | 8.1 | 17.38 | ||||||||||||||||||||||||||
Renewals | 569 | 2,733 | 13.14 | 35,918 | 12.41 | 33,923 | 5.9 | % | 5.1 | 0.12 | ||||||||||||||||||||||||||
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Total | 934 | 3,931 | $ | 13.87 | $ | 54,510 | $ | 12.78 | $ | 39,498 | 7.1 | % | 6.0 | $ | 5.48 | |||||||||||||||||||||
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33
DDR
Quarterly Financial Supplement
For the six months ended June 30, 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 6/30/2012 | 2012 YTD / Average | |||||||
Number of lease transactions executed | 426 | 934 | ||||||
Rentable square footage leased (in thousands) | 2,687 | 5,689 | ||||||
Square footage of renewal deals (in thousands) | 1,801 | 3,979 | ||||||
Square footage of new deals (in thousands) | 886 | 1,710 | ||||||
Renewed square footage (% of total) | 67.0 | % | 69.9 | % | ||||
New leases square footage (% of total) | 33.0 | % | 30.1 | % | ||||
New Deals: | ||||||||
Weighted average per rentable square foot over the lease term: | ||||||||
Base rent | $ | 16.96 | $ | 16.31 | ||||
Tenant allowance | (1.59 | ) | (1.49 | ) | ||||
Landlord work | (1.11 | ) | (1.31 | ) | ||||
Third party leasing commissions | (0.32 | ) | (0.30 | ) | ||||
Rent concessions | — | — | ||||||
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Equivalent net effective rent | $ | 13.94 | $ | 13.21 | ||||
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Weighted average term in years | 8.4 | 8.1 | ||||||
Renewal Deals: | ||||||||
Weighted average per rentable square foot over the lease term: | ||||||||
Base rent | $ | 14.13 | $ | 14.82 | ||||
Tenant allowance | (0.01 | ) | (0.02 | ) | ||||
Landlord work | — | — | ||||||
Third party leasing commissions | — | — | ||||||
Rent concessions | — | — | ||||||
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Equivalent net effective rent | $ | 14.12 | $ | 14.80 | ||||
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Weighted average term in years | 5.0 | 5.2 |
34
DDR
Quarterly Financial Supplement
For the six months ended June 30, 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 | 35 | 80 | $ | 33.5 | 3.1 | % | $ | 25.9 | 5.1 | 5.7 | % | AA / Aa2 / AA | |||||||||||||||||||
2 | TJX Companies2 | 82 | 83 | 27.1 | 2.5 | % | 15.5 | 2.7 | 3.0 | % | A / A3 / NR | |||||||||||||||||||||
3 | PetSmart | 78 | 80 | 23.7 | 2.2 | % | 13.8 | 1.7 | 1.9 | % | BB+ / NR / NR | |||||||||||||||||||||
4 | Bed Bath & Beyond3 | 68 | 69 | 23.0 | 2.2 | % | 14.6 | 1.9 | 2.1 | % | BBB+ / NR / NR | |||||||||||||||||||||
5 | Kohl’s | 35 | 42 | 22.5 | 2.1 | % | 11.1 | 3.1 | 3.5 | % | BBB+ / Baa1 / BBB+ | |||||||||||||||||||||
6 | Dick’s Sporting Goods | 32 | 33 | 17.9 | 1.7 | % | 8.5 | 1.5 | 1.7 | % | NR | |||||||||||||||||||||
7 | Best Buy | 29 | 34 | 17.5 | 1.6 | % | 9.3 | 1.3 | 1.5 | % | BBB- / Baa2 / BBB- | |||||||||||||||||||||
8 | Michael’s | 60 | 60 | 16.6 | 1.6 | % | 10.6 | 1.4 | 1.6 | % | B / B3 / NR | |||||||||||||||||||||
9 | Publix | 41 | 44 | 16.4 | 1.5 | % | 4.2 | 1.9 | 2.1 | % | NR | |||||||||||||||||||||
10 | AMC Theaters | 9 | 10 | 15.9 | 1.5 | % | 5.7 | 0.8 | 0.9 | % | B / B2 / B | |||||||||||||||||||||
11 | Ross Stores | 44 | 44 | 13.5 | 1.3 | % | 7.4 | 1.3 | 1.5 | % | BBB+ / NR / NR | |||||||||||||||||||||
12 | Gap4 | 52 | 52 | 13.4 | 1.3 | % | 8.1 | 0.9 | 1.0 | % | BB+ / Baa3 / BBB- | |||||||||||||||||||||
13 | OfficeMax | 48 | 50 | 13.1 | 1.2 | % | 8.4 | 1.1 | 1.2 | % | B- / B1 / NR | |||||||||||||||||||||
14 | Tops Markets5 | 17 | 18 | 12.5 | 1.2 | % | 7.5 | 1.1 | 1.2 | % | B+ / NR / NR | |||||||||||||||||||||
15 | Kroger | 30 | 31 | 12.3 | 1.2 | % | 5.9 | 1.7 | 1.9 | % | BBB / Baa2 / BBB | |||||||||||||||||||||
16 | Lowe’s | 14 | 33 | 12.0 | 1.1 | % | 9.2 | 1.8 | 2.0 | % | A- / A3 / NR | |||||||||||||||||||||
17 | JoAnn Fabric | 33 | 33 | 10.9 | 1.0 | % | 6.4 | 1.1 | 1.2 | % | B / B2 / NR | |||||||||||||||||||||
18 | Ascena6 | 103 | 103 | 10.6 | 1.0 | % | 6.4 | 0.7 | 0.8 | % | BB- / Ba2 / NR | |||||||||||||||||||||
19 | Cinemark | 13 | 13 | 10.0 | 0.9 | % | 6.0 | 0.7 | 0.8 | % | BB- / NR / NR | |||||||||||||||||||||
20 | Regal Cinemas | 12 | 13 | 10.0 | 0.9 | % | 6.6 | 0.6 | 0.7 | % | B+ / B1 / B+ | |||||||||||||||||||||
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Top 20 Tenants | 835 | 925 | $ | 332.4 | 31.2 | % | $ | 191.1 | 32.4 | 36.3 | % | |||||||||||||||||||||
21 | Barnes & Noble | 25 | 27 | $ | 9.9 | 0.9 | % | 6.2 | 0.6 | 0.7 | % | NR | ||||||||||||||||||||
22 | Staples | 33 | 35 | 9.1 | 0.9 | % | 6.6 | 0.7 | 0.8 | % | BBB / Baa2 / BBB | |||||||||||||||||||||
23 | Home Depot | 10 | 38 | 8.9 | 0.8 | % | 6.5 | 1.1 | 1.2 | % | A- / A3 / A- | |||||||||||||||||||||
24 | Dollar Tree Stores | 87 | 90 | 8.6 | 0.8 | % | 5.4 | 0.8 | 0.9 | % | NR | |||||||||||||||||||||
25 | Sears7 | 26 | 27 | 8.0 | 0.8 | % | 5.3 | 2.2 | 2.5 | % | CCC+ / B3 / CCC | |||||||||||||||||||||
26 | Toys R Us8 | 27 | 32 | 8.0 | 0.8 | % | 5.7 | 1.0 | 1.1 | % | B / B1 / B | |||||||||||||||||||||
27 | DSW | 19 | 19 | 7.7 | 0.7 | % | 3.9 | 0.5 | 0.6 | % | NR | |||||||||||||||||||||
28 | Sports Authority | 15 | 16 | 7.7 | 0.7 | % | 5.7 | 0.6 | 0.7 | % | B- / B3 / NR | |||||||||||||||||||||
29 | Petco | 30 | 32 | 7.0 | 0.7 | % | 4.6 | 0.4 | 0.4 | % | B / B2 / NR | |||||||||||||||||||||
30 | Amscan Holdings9 | 36 | 37 | 6.6 | 0.6 | % | 3.9 | 0.4 | 0.4 | % | B+ / B2 / NR | |||||||||||||||||||||
31 | Pier 1 Imports | 33 | 36 | 6.4 | 0.6 | % | 3.5 | 0.3 | 0.3 | % | NR | |||||||||||||||||||||
32 | Ulta | 26 | 26 | 5.9 | 0.6 | % | 3.9 | 0.3 | 0.3 | % | NR | |||||||||||||||||||||
33 | Rite Aid | 24 | 24 | 5.8 | 0.5 | % | 5.6 | 0.3 | 0.3 | % | B- / Caa2 / B- | |||||||||||||||||||||
34 | Beall’s | 20 | 21 | 5.8 | 0.5 | % | 2.4 | 0.8 | 0.9 | % | NR | |||||||||||||||||||||
35 | Brown Shoe Co.10 | 40 | 40 | 5.6 | 0.5 | % | 3.4 | 0.3 | 0.3 | % | B / B2 / BB+ | |||||||||||||||||||||
36 | Royal Ahold11 | 5 | 6 | 5.3 | 0.5 | % | 1.9 | 0.3 | 0.3 | % | BBB / Baa3 / BBB | |||||||||||||||||||||
37 | HH Gregg | 16 | 16 | 5.2 | 0.5 | % | 3.0 | 0.5 | 0.6 | % | NR | |||||||||||||||||||||
38 | Hobby Lobby | 14 | 16 | 5.2 | 0.5 | % | 3.2 | 0.8 | 0.9 | % | NR | |||||||||||||||||||||
39 | Office Depot | 19 | 20 | 5.0 | 0.5 | % | 2.8 | 0.5 | 0.6 | % | B- / B2 / NR | |||||||||||||||||||||
40 | Giant Eagle | 6 | 7 | 4.9 | 0.5 | % | 3.2 | 0.5 | 0.6 | % | NR | |||||||||||||||||||||
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Tenants 21-40 | 511 | 565 | $ | 136.6 | 12.8 | % | $ | 86.7 | 12.9 | 14.4 | % | |||||||||||||||||||||
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Top 40 Tenants | 1,346 | 1,490 | $ | 469.0 | 44.0 | % | $ | 277.8 | 45.3 | 50.7 | % | |||||||||||||||||||||
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Total Portfolio | $ | 1,066.0 | 100.0 | % | $ | 620.1 | 89.3 | 100.0 | % |
(1) | Walmart (29) / Sam’s Club (6) |
(2) | T.J.Maxx (39) / Marshalls (32) / Homegoods (11) |
(3) | Bed Bath & Beyond (47) / Cost Plus (14) / Others (7) |
(4) | Gap (4) / Old Navy (45) / Banana Republic (3) |
(5) | 15 leases are guaranteed by Koninklijke Ahold NV, rated BBB / Baa3 / BBB |
(6) | Catherine’s (12) / Dress Barn (24) / Fashion Bug (19) / Justice (23) / Lane Bryant (18) / Maurice’s (7) |
(7) | Sears (5) / Kmart (20) / Others (1) |
(8) | Toys R Us (9) / Babies R Us (18) |
(9) | Party City (28) / Others (8) |
(10) | Famous Footwear (38) / Others (2) |
(11) | Stop N Shop (4) / Martin’s (1) |
35
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Total Market Capitalization
(In Millions)
June 30, 2012 | December 31, 2011 | |||||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||||
Common Shares Equity | $ | 4,417.6 | 50 | % | $ | 3,375.3 | 43 | % | ||||||||
Perpetual Preferred Stock | 375.0 | 4 | % | 375.0 | 5 | % | ||||||||||
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4,792.6 | 54 | % | 3,750.3 | 48 | % | |||||||||||
Unsecured Credit Facilities | 5.9 | 0 | % | 142.4 | 2 | % | ||||||||||
Unsecured Term Loan | 250.0 | 3 | % | — | — | |||||||||||
Unsecured Public Debt | 2,014.8 | 22 | % | 2,182.7 | 28 | % | ||||||||||
Secured Term Loan | 500.0 | 6 | % | 500.0 | 6 | % | ||||||||||
Fixed Rate Mortgage Debt | 1,262.9 | 14 | % | 1,218.1 | 15 | % | ||||||||||
Variable Rate Mortgage Debt | 87.7 | 1 | % | 91.0 | 1 | % | ||||||||||
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4,121.3 | 46 | % | 4,134.2 | 52 | % | |||||||||||
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Total | $ | 8,913.9 | 100 | % | $ | 7,884.5 | 100 | % | ||||||||
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Debt to Market Capitalization | 46.2 | % | 52.4 | % | ||||||||||||
Common Shares Outstanding (millions) | 301.3 | 276.9 | ||||||||||||||
Operating Partnership Units (millions) | 0.4 | 0.4 | ||||||||||||||
Market Value per Share | $ | 14.64 | $ | 12.17 | ||||||||||||
Accretion on Convertible Notes (excluded above) | $ | 37.3 | $ | 43.0 | ||||||||||||
Partners’ Share of Consolidated Debt (included above) | $ | 20.6 | $ | 21.7 | ||||||||||||
DDR Share of Unconsolidated Debt (excluded above) | $ | 811.1 | $ | 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 June 30, 2012)
Covenant Threshold | Actual Covenant | |||
Total Debt to Real Estate Assets Ratio | not to exceed 65% | 47% | ||
Secured Debt to Assets Ratio | not to exceed 40% | 21% | ||
Value of Unencumbered Assets to Unsecured Debt | at least 135% | 225% | ||
Fixed Charge Coverage Ratio | at least 1.5x | 1.8x |
36
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Summary of Consolidated Debt
(In Millions)
Total Debt Outstanding | June 30, 2012 Aggregate | June 30, 2012 DDR Pro Rata Share | June 30, 2012 DDR Pro Rata Wtd. Avg. Interest | December 31, 2011 Aggregate | December 31, 2011 DDR Pro Rata Share | |||||||||||||||
Unsecured Credit Facilities | $ | 5.9 | $ | 5.9 | 1.98 | % | $ | 142.4 | $ | 142.4 | ||||||||||
Unsecured Term Loan | 250.0 | 250.0 | 3.36 | % | — | — | ||||||||||||||
Unsecured Public Debt | 1,977.5 | 1,977.5 | 5.22 | % | 2,139.7 | 2,139.7 | ||||||||||||||
Secured Term Loan | 500.0 | 500.0 | 2.15 | % | 500.0 | 500.0 | ||||||||||||||
Fixed Rate Mortgage Loans | 1,262.9 | 1,253.0 | 5.28 | % | 1,218.1 | 1,208.2 | ||||||||||||||
Variable Rate Mortgage Loans | 87.7 | 77.0 | 1.91 | % | 91.0 | 79.2 | ||||||||||||||
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Subtotal | 4,084.0 | 4,063.4 | 4.96 | % | 4,091.2 | 4,069.5 | ||||||||||||||
Fair Market Value Adjustment | 11.8 | 11.8 | — | 13.4 | 13.4 | |||||||||||||||
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Total | $ | 4,095.8 | $ | 4,075.2 | 4.96 | % | $ | 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 | $ | 13.2 | $ | 12.5 | $ | — | $ | 25.7 | $ | 25.7 | ||||||||||
2013 | 26.2 | 391.0 | — | 417.2 | 417.2 | |||||||||||||||
2014 | 24.7 | 303.0 | — | 327.7 | 327.7 | |||||||||||||||
2015 | 21.9 | 539.1 | 503.0 | 1,064.0 | 1,064.0 | |||||||||||||||
2016 | 19.6 | 48.0 | 245.9 | 313.5 | 302.8 | |||||||||||||||
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 | 300.0 | 331.4 | 321.5 | |||||||||||||||
Unsecured debt discount | — | — | (47.7 | ) | (47.7 | ) | (47.7 | ) | ||||||||||||
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Total | $ | 158.1 | $ | 1,692.5 | $ | 2,233.4 | $ | 4,084.0 | $ | 4,063.4 | ||||||||||
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Percentage of Total Debt | June 30, 2012 | December 31, 2011 | ||||||
Fixed | 90.4 | %(2) | 87.0 | % | ||||
Variable | 9.6 | % | 13.0 | % | ||||
Recourse to DDR | 68.3 | % | 69.5 | % | ||||
Non-recourse to DDR | 31.7 | % | 30.5 | % |
(1) | Assumes borrower extension options are exercised. |
(2) | An interest rate swap for $100 million was entered into on June 7, but not effective until July 1. Total fixed rate debt assumes the swap is effective. |
37
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Summary of Joint Venture Debt
(In Millions)
Total Debt Outstanding | June 30, 2012 Aggregate | June 30, 2012 DDR Pro Rata Share | June 30, 2012 DDR Pro Rata Wtd. Avg. Interest | December 31, 2011 Aggregate | December 31, 2011 DDR Pro Rata Share | |||||||||||||||
Fixed Rate Mortgage Loans | $ | 3,333.4 | $ | 589.9 | 5.38 | % | $ | 3,084.5 | $ | 646.0 | ||||||||||
Variable Rate Mortgage Loans | 1,273.5 | 221.2 | 6.80 | % | 656.1 | 126.7 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Subtotal | 4,606.9 | (1),(2) | 811.1 | (1), (2) | 5.77 | % | 3,740.6 | 772.7 | ||||||||||||
Fair Market Value Adjustment | (1.5 | ) | — | — | 1.6 | 0.2 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | 4,605.4 | $ | 811.1 | 5.77 | % | $ | 3,742.2 | $ | 772.9 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Schedule of Maturities by Year(3) | Scheduled Principal Payments | Mortgage Loan Maturities | Aggregate Total | DDR Pro Rata Share | ||||||||||||
2012 | $ | 12.0 | $ | 466.9 | $ | 478.9 | $ | 113.5 | ||||||||
2013 | 21.3 | 407.9 | 429.2 | 64.6 | ||||||||||||
2014 | 21.0 | 167.3 | 188.3 | 39.0 | ||||||||||||
2015 | 14.3 | 535.1 | 549.4 | 72.6 | ||||||||||||
2016 | 6.8 | 143.8 | 150.6 | 15.4 | ||||||||||||
2017 | 5.6 | 2,438.9 | 2,444.5 | 379.7 | ||||||||||||
2018 | 3.0 | 25.5 | 28.5 | 9.4 | ||||||||||||
2019 | 2.1 | 98.4 | 100.5 | 33.6 | ||||||||||||
2020 | 2.2 | 63.6 | 65.8 | 22.1 | ||||||||||||
2021 | 1.3 | 80.5 | 81.8 | 31.4 | ||||||||||||
2022 and beyond | — | 89.4 | 89.4 | 29.8 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total | $ | 89.6 | $ | 4,517.3 | $ | 4,606.9 | $ | 811.1 | ||||||||
|
|
|
|
|
|
|
|
Percentage of Total Debt | June 30, 2012 | December 31, 2011 | ||||||
Fixed | 72.4 | % | 82.5 | % | ||||
Variable | 27.6 | % | 17.5 | % | ||||
Recourse to DDR | 3.8 | % | 4.7 | % | ||||
Non-recourse to DDR | 96.2 | % | 95.3 | % |
(1) | Includes approximately $298.9 million of debt of which the Company’s proportionate share of non-recourse debt is $47.8 million associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income. |
(2) | DDR funded a mezzanine loan to BRE DDR Holdings LLC which is collateralized by equity interests in seven shopping center assets. As this loan is recorded by DDR as part of its investment in the joint venture, DDR does not consider any proportionate ownership interest in the loan. |
(3) | Assumes borrower extension options are exercised. |
38
DDR
Quarterly Financial Supplement
For the six months ended June 30, 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 | $ | 5.9$ | 5.9 | 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 | $ | 755.9$ | 755.9 | |||||||||||||
Public Debt: | ||||||||||||||||
Unsecured Notes | 152.8 | 152.8 | 05/15 | 5.50 | ||||||||||||
Convertible Notes | 312.7 | (3) | 312.7 | 11/15 | 1.75 | |||||||||||
Unsecured Notes | 239.3 | 239.3 | 03/16 | 9.63 | ||||||||||||
Unsecured Notes | 300.0 | 300.0 | 04/17 | 7.50 | ||||||||||||
Unsecured Notes | 298.3 | 298.3 | 04/18 | 4.75 | ||||||||||||
Unsecured Notes | 82.2 | 82.2 | 07/18 | 7.50 | ||||||||||||
Unsecured Notes | 297.9 | 297.9 | 09/20 | 7.88 | ||||||||||||
Unsecured Notes | 294.3 | 294.3 | 07/22 | 4.63 | ||||||||||||
|
|
|
| |||||||||||||
Total Public Debt | $ | 1,977.5 | $ | 1,977.5 | ||||||||||||
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 | 6.5 | 6.5 | 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 | 32.4 | 32.4 | 04/13 | LIBOR + 110 | ||||||||||||
Monmouth Consumer Sq., W. Long Branch, NJ | 2.6 | 2.6 | 07/13 | 8.57 | ||||||||||||
Abernathy Square, Atlanta, GA | 11.9 | 11.9 | 10/14 | 4.23 | ||||||||||||
Bermuda Square, Chester, VA | 7.4 | 7.4 | 10/14 | 4.23 | ||||||||||||
Brook Highland Plaza, Birmingham, AL | 24.3 | 24.3 | 10/14 | 4.23 | ||||||||||||
Chillicothe Place, Chillicothe, OH | 4.2 | 4.2 | 10/14 | 4.23 | ||||||||||||
Clearwater Collection, Clearwater, FL | 7.0 | 7.0 | 10/14 | 4.23 | ||||||||||||
Cross Pointe Center, Fayetteville, NC | 9.8 | 9.8 | 10/14 | 4.23 | ||||||||||||
Crossroads Center, Gulfport, MS | 24.2 | 24.2 | 10/14 | 4.23 | ||||||||||||
Deer Valley Towne Center, Phoenix, AZ | 17.3 | 17.3 | 10/14 | 4.23 | ||||||||||||
Delaware Consumer Square, Buffalo, NY | 10.1 | 10.1 | 10/14 | 4.23 | ||||||||||||
Downtown Short Pump, Richmond, VA | 12.3 | 12.3 | 10/14 | 4.23 | ||||||||||||
Hamilton Marketplace, Hamilton, NJ | 40.8 | 40.8 | 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 | 4.2 | 4.2 | 10/14 | 4.23 | ||||||||||||
Loisdale Center, Springfield, VA | 10.9 | 10.9 | 10/14 | 4.23 | ||||||||||||
Marketplace at Delta Twp, Lansing, MI | 6.6 | 6.6 | 10/14 | 4.23 |
39
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Consolidated Debt Detail
(In Millions)
Loan Balance | DDR Pro Rata Share | Final Maturity Date(1) | Interest Rate(2) | |||||||||||||
Mooresville Consumer Sq., Mooresville, NC | 17.9 | 17.9 | 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 | 27.5 | 27.5 | 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 | 11.8 | 11.8 | 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 | 21.5 | 10.8 | 01/15 | LIBOR + 275 | ||||||||||||
Reno Riverside, Reno, NV | 2.8 | (4) | 2.8 | 02/15 | Prime + 170 | |||||||||||
Merriam Village, Merriam, KS | 15.0 | 15.0 | 03/15 | LIBOR + 250 | ||||||||||||
Hamilton Commons, Mays Landing, NJ | 5.9 | 5.9 | 09/15 | 4.70 | ||||||||||||
Tops Plaza, Lockport, NY | 5.8 | 5.8 | 01/16 | 8.00 | ||||||||||||
Cotswold Village, Charlotte, NC | 50.4 | 50.4 | 05/16 | 5.83 | ||||||||||||
Freedom Plaza, Rome, NY | 2.3 | 2.3 | 09/16 | 7.85 | ||||||||||||
Walmart Supercenter, Winston-Salem, NC | 6.1 | 6.1 | 08/17 | 6.00 | ||||||||||||
Thruway Plaza (Walmart), Cheektowaga, NY | 2.7 | 2.7 | 10/17 | 6.78 | ||||||||||||
Tops Plaza, Ithaca, NY | 11.0 | 11.0 | 01/18 | 7.05 | ||||||||||||
Walmart Supercenter, Greenville, SC | 5.9 | 5.9 | 01/18 | 6.00 | ||||||||||||
Johns Creek Town Center, Suwanee, GA | 25.5 | 25.5 | 03/18 | 5.06 | ||||||||||||
Southland Crossings, Boardman, OH | 25.5 | 25.5 | 03/18 | 5.06 | ||||||||||||
The Promenade at Brentwood, St. Louis, MO | 32.4 | 32.4 | 03/18 | 5.06 | ||||||||||||
Mohawk Commons, Niskayuna, NY | 14.8 | 14.8 | 12/18 | 5.75 | ||||||||||||
Lowes, Hendersonville, TN | 5.8 | 5.8 | 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 | 21.6 | 21.6 | 06/19 | 7.59 | ||||||||||||
Plaza Fajardo, Fajardo, PR | 26.0 | 26.0 | 06/19 | 7.59 | ||||||||||||
Plaza Isabela, Isabela, PR | 22.8 | 22.8 | 06/19 | 7.59 | ||||||||||||
Plaza Walmart, Guayama, PR | 12.1 | 12.1 | 06/19 | 7.59 | ||||||||||||
Mariner Square, Spring Hill, FL | 3.5 | 3.5 | 09/19 | 9.75 | ||||||||||||
Northland Square, Cedar Rapids, IA | 6.8 | 6.8 | 01/20 | 9.38 | ||||||||||||
Polaris Towne Center, Columbus, OH | 45.0 | 45.0 | 04/20 | 6.76 | ||||||||||||
West Valley Marketplace, Allentown, PA | 12.8 | 12.8 | 07/21 | 6.95 | ||||||||||||
Wrangleboro Consumer Sq. I & II, Mays Landing, NJ | 64.2 | 64.2 | 10/21 | 5.41 | ||||||||||||
Chapel Hills East, Colorado Springs, CO | 9.3 | 9.3 | 12/21 | 5.24 | ||||||||||||
Paradise Village Gateway, Phoenix, AZ | 30.0 | 20.1 | 01/22 | 4.65 | ||||||||||||
Macedonia Commons, Macedonia, OH | 20.5 | 20.5 | 02/22 | 5.71 | ||||||||||||
Gulfport Promenade, Gulfport, MS | 16.0 | 16.0 | 12/37 | SIFMA + 5 | ||||||||||||
|
|
|
| |||||||||||||
Total Mortgage Debt | $ | 1,350.6 | $ | 1,330.0 | ||||||||||||
Subtotal | $ | 4,084.0 | $ | 4,063.4 | ||||||||||||
Fair Market Value Adjustment—Assumed Debt | 11.8 | 11.8 | ||||||||||||||
|
|
|
| |||||||||||||
Total Consolidated Debt | $ | 4,095.8 | $ | 4,075.2 | ||||||||||||
|
|
|
|
40
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Consolidated Debt Detail
(In Millions)
Wtd. Avg. Maturity | Wtd. Avg. Interest Rate | |||||||||||||||
Fixed Rate | $ | 3,690.4 | (5) | $ | 3,680.5 | | 5.0 years | | 5.28 | % | ||||||
Variable Rate | 393.6 | 382.9 | | 3.9 years | | 1.91 | % | |||||||||
|
|
|
|
|
|
|
| |||||||||
$ | 4,084.0 | $ | 4,063.4 | | 4.9 years | | 4.96 | % | ||||||||
|
|
|
|
|
|
|
|
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 | $ | 50.0 | Unsecured Term Loan | 1 mo. LIBOR | 0.56 | % | June 1, 2015 | |||||||||||||
Interest Rate Swap | $ | 100.0 | Secured Term Loan | 1 mo. LIBOR | 0.53 | % | July 1, 2015 | |||||||||||||
Interest Rate Swap | $ | 83.4 | 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 $13.3 million is partially offset by approximately $2.9 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 $15.96 per share at June 30, 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 $37.3 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%. |
(5) | An interest rate swap for $100 million was entered into on June 7, but not effective until July 1. Total fixed rate debt assumes the swap is effective. |
41
DDR
Quarterly Financial Supplement
For the six months ended June 30, 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 6, LLC | ||||||||||||||||
Waterfront Marketplace, Homestead, PA | 27.1 | 4.1 | 08/12 | 6.35 | ||||||||||||
Waterfront Town Center, Homestead, PA | 35.7 | 5.4 | 08/12 | 6.35 | ||||||||||||
Creeks at Virginia Center, Glen Allen, VA | 24.1 | 3.6 | 08/12 | 6.37 | ||||||||||||
Willoughby Hills Shop Ctr, Willoughby Hills, OH | 10.0 | 1.5 | 07/18 | 6.98 | ||||||||||||
DDRTC Holdings Pool 1, LLC (9 assets) | 350.2 | 52.5 | 03/17 | 5.45 | ||||||||||||
DDRTC Holdings Pool 5, LLC (11 assets) | 190.0 | 28.5 | 05/17 | LIBOR + 275 | ||||||||||||
DDRTC Holdings Pool 3, LLC (17 assets) | 464.0 | 69.6 | 06/17 | 4.63 | ||||||||||||
|
|
|
| |||||||||||||
Total DDRTC Core Retail Fund LLC | $ | 1,101.1 | $ | 165.2 | ||||||||||||
BRE DDR Retail Holdings LLC | ||||||||||||||||
BRE DDR Venice Holdings LLC (7 Assets) | $ | 86.0 | $ | 4.3 | 07/13 | 6.00 | ||||||||||
BRE DDR Homart Holdings LLC (4 Assets) | 265.7 | 13.3 | 09/15 | 6.40 | ||||||||||||
BRE DDR Bison Holdings LLC (12 Assets) | 113.2 | 5.7 | 04/16 | 5.25 | ||||||||||||
BRE DDR Retail Mezz 2 LLC (15 Assets) | 320.0 | (2) | 16.0 | 07/17 | LIBOR + 398 | |||||||||||
BRE DDR Longhorn II Holdings LLC (7 Assets) | 138.8 | 6.9 | 10/17 | 5.01 | ||||||||||||
BRE DDR Longhorn II Holdings LLC (7 Assets) | 31.7 | (3) | — | 10/17 | 10.00 | |||||||||||
|
|
|
| |||||||||||||
Total BRE DDR Retail Holdings LLC | $ | 955.4 | $ | 46.2 | ||||||||||||
DDR Domestic Retail Fund I | ||||||||||||||||
Heather Island Plaza, Ocala, FL | 6.2 | 1.2 | 12/12 | 5.00 | ||||||||||||
Hilliard Rome, Columbus, OH | 10.3 | 2.0 | 01/13 | 5.87 | ||||||||||||
Meadows Square, Boynton Beach, FL | 0.8 | 0.2 | 07/13 | 6.72 | ||||||||||||
Village Center, Racine, WI | 11.7 | 2.3 | 04/15 | 4.21 | ||||||||||||
Paradise Promenade, Davie, FL | 6.0 | 1.2 | 04/15 | 4.21 | ||||||||||||
West Falls Plaza, West Patterson, NJ | 11.4 | 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 | $ | 930.2 | $ | 186.0 | ||||||||||||
Coventry II | ||||||||||||||||
Bloomfield Park, Bloomfield Hills, MI | $ | 39.8 | (4) | $ | — | 12/08 | Prime + 300 | |||||||||
Coventry II DDR SM (31 assets) | 71.0 | (4) | 14.2 | 09/12 | LIBOR + 225 | |||||||||||
Marley Creek Square, Orland Park, IL | 10.6 | (4) | 1.1 | 12/12 | LIBOR + 125 | |||||||||||
Watters Creek, Allen, TX | 133.4 | (2) | 18.0 | 01/13 | LIBOR + 300 | |||||||||||
Fairplain Plaza, Benton Harbor, MI | 14.4 | 2.9 | 05/13 | LIBOR + 350 | ||||||||||||
Totem Lake Mall, Kirkland, WA | 26.8 | 5.4 | 05/13 | LIBOR + 350 | ||||||||||||
Christown Spectrum Mall, Phoenix, AZ | 46.0 | (2) | 9.2 | 11/13 | LIBOR + 343 | |||||||||||
Christown Spectrum Mall, Phoenix, AZ | 19.0 | (2) | 3.8 | 11/13 | LIBOR + 1000 | |||||||||||
Tri-County Mall, Cincinnati, OH | 149.7 | (4) | 29.9 | 02/15 | 5.66 | |||||||||||
Buena Park, Buena Park, CA | 73.0 | (2) | 14.6 | 06/15 | LIBOR + 625 | |||||||||||
Westover Marketplace, San Antonio, TX | 21.0 | (2) | 4.2 | 02/16 | LIBOR + 450 | |||||||||||
Coventry II DDR SM (7 assets) | 27.8 | (4) | 5.6 | 09/16 | 6.75 | |||||||||||
|
|
|
| |||||||||||||
Total Coventry II | $ | 632.5 | $ | 108.9 | ||||||||||||
Sonae Sierra Brasil BV Sarl | ||||||||||||||||
Shopping Plaza Sul | $ | 27.9 | $ | 9.3 | 06/15 | CDI | ||||||||||
Sonae Sierra Brasil Limitadas, Brazil | 7.5 | 2.5 | 11/15 | CDI + 285 | ||||||||||||
Patio Boavista, Brazil | 10.6 | 3.5 | 11/16 | CDI + 330 | ||||||||||||
Debentures | 45.9 | 15.3 | 02/17 | CDI + 96 | ||||||||||||
Shopping Metropole, Brazil | 25.3 | 8.4 | 05/18 | TR + 1030 | ||||||||||||
Debentures | 98.4 | 32.8 | 02/19 | IPCA + 625 | ||||||||||||
Manaura Shopping, Brazil | 63.7 | 21.3 | 12/20 | 10.00 | ||||||||||||
Patio Goiania, Brazil | 26.1 | 8.7 | 06/23 | TR + 1100 | ||||||||||||
Patio Londrina, Brazil | 26.2 | 8.7 | 10/25 | TR + 1090 | ||||||||||||
Patio Uberlandia, Brazil | 37.1 | 12.4 | 10/25 | TR + 1130 | ||||||||||||
|
|
|
| |||||||||||||
Total Sonae Sierra Brasil BV Sarl | $ | 368.7 | $ | 122.9 |
42
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Joint Venture Debt Detail
(In Millions)
Loan Balance | DDR Pro Rata Share | Final Maturity Date(1) | Interest Rate | |||||||||||||
DDR SAU Retail Fund, LLC | ||||||||||||||||
Lewandowski Commons, Lyndhurst, NJ | $ | 12.5 | $ | 2.5 | 09/12 | 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 | ||||||||||||
DDRA Ahwatukee Foothills LLC, Phoenix, AZ | 105.4 | 52.7 | 08/12 | 5.30 | ||||||||||||
Jefferson County Plaza LLC, Arnold, MO | 3.5 | 1.7 | 08/12 | LIBOR + 200 | ||||||||||||
Cole DDR MT Independence, Independence, MO | 33.7 | 4.9 | 10/12 | 4.00 | ||||||||||||
DDR Markaz II (13 assets) | 147.4 | 29.5 | 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) | 21.4 | 5.4 | 10/20 | 5.25 | ||||||||||||
Sun Center Limited, Columbus, OH | 23.3 | 18.5 | 05/21 | 5.99 | ||||||||||||
RVIP IIIB, Deer Park, IL | 74.2 | 19.1 | 09/21 | 4.84 | ||||||||||||
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Total | $ | 435.9 | $ | 145.3 | ||||||||||||
Subtotal | $ | 4,606.9 | $ | 811.1 | ||||||||||||
Fair Market Value Adjustment—Assumed Debt | (1.5 | ) | — | |||||||||||||
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Total Joint Venture Debt | $ | 4,605.4 | $ | 811.1 | ||||||||||||
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Wtd. Avg. Maturity | Wtd. Avg. Interest Rate | |||||||||||||||
Total Joint Venture Debt: | ||||||||||||||||
Fixed Rate | $ | 3,333.4 | $ | 589.9 | 4.0 years | 5.38 | % | |||||||||
Variable Rate | 1,273.5 | 221.2 | 4.5 years | 6.80 | % | |||||||||||
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$ | 4,606.9 | $ | 811.1 | 4.1 years | 5.77 | % | ||||||||||
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43
DDR
Quarterly Financial Supplement
For the six months ended June 30, 2012
Joint Venture Debt Detail
(In Millions)
Derivative Instruments | ||||||||||||||||||||
Notional Amount | Underlying Debt Hedged | Rate Hedged | Capped Rate | Termination Date | ||||||||||||||||
Interest Rate Cap | $ | 71.0 | Coventry II DDR SM | 11mo.LIBOR | 3.00 | % | September 1, 2012 | |||||||||||||
Interest Rate Cap | $ | 65.0 |
| Coventry II Christown Spectrum Mall |
| 11mo.LIBOR | 2.85 | % | November 22, 2013 | |||||||||||
Interest Rate Cap | $ | 320.00 | | BRE DDR Retail Mezz 2 LLC | | 11mo. LIBOR | 4.00 | % | July 1, 2015 |
(1) | Assumes borrower extension options are exercised. |
(2) | The following loans have floor interest rates: |
Loan | Floor | |
BRE DDR Retail Mezz 2 LLC | 1 month LIBOR of 0.50% | |
Watters Creek, Allen, TX | 1 month LIBOR of 0.50% | |
Christown Spectrum Mall, Phoenix, AZ | 1 month LIBOR of 0.26% | |
Buena Park, Buena, CA | 1 month LIBOR of 0.75% | |
Westover Marketplace, San Antonio, TX | 1 month LIBOR of 2.00% |
(3) | DDR funded a mezzanine loan to BRE DDR Holdings LLC which is collateralized by equity interests in seven shopping center assets. As this loan is recorded by DDR as part of its investment in the joint venture, DDR does not consider any proportionate ownership interest in the loan. |
(4) | Includes approximately $298.9 million of debt of which the Company’s proportionate share of non-recourse debt is $47.8 million associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income. |
44
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 | |||
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 | |||
Goldman Sachs | Andrew Rosivach | andrew.rosivach@gs.com | (212) 902-2796 | |||
Green Street Advisors | Cedrik Lachance | clachance@greenstreetadvisors.com | (949) 640-8780 | |||
Jason White | jwhite@greenstreetadvisors.com | (949) 640-8780 | ||||
Hilliard Lyons | Carol Kemple | ckemple@hilliard.com | (502) 588-1839 | |||
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 | (646) 855-6090 | |||
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 |
45