SITE Centers 8K DDR Reports Operating Ffo Per Diluted Share of $0.28 | SITC 7 May 14

SITE Centers (SITC) 8-KDDR Reports Operating Ffo Per Diluted Share of $0.28

Exhibit 99.2

LOGO

DDR Corp.

Table of Contents


Section	Page
Earnings Release & Financial Statements
Press Release		1-9

Joint Ventures
Summary		10
Income Statement		11
Balance Sheet		12

Investments
Transactions		13
Developments		14

Asset Summary
Portfolio Summary		15
Portfolio Detail		16
Leasing Summary		17
Top 50 Tenants		18

Balance Sheet Summary
Capital Structure		19
Debt / EBITDA		20
Debt Summary		21
Consolidated Debt Detail		22-24
Unconsolidated Joint Venture Debt Detail		25-26

Analyst Information and Reporting Policies
Analyst Information		27
Notable Policies		28-29

Property list available online athttp://www.ddr.com

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

LOGO

For immediate release:


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

DDR REPORTS OPERATING FFO PER DILUTED SHARE OF $0.28

FOR THE QUARTER ENDED MARCH 31, 2014

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

Significant First Quarter Activity:

•

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

•

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

•

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

•

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

•

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

•

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

•

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

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

Financial Highlights

•

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

•

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

Significant First Quarter Operating Activity

•

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

•

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

•

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

Significant First Quarter Transactional Activity

•

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

•

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

•

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

2014 Guidance

•

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

^¡

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

^¡

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

^¡

annual common stock dividend of $0.62 per share

Non-GAAP Disclosures

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

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

Safe Harbor

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

About DDR Corp.

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

Conference Call and Supplemental Information

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

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

DDR Corp.

Income Statement: Consolidated Interests


$ in thousands, except per share	Three Months Ended
	1Q14			1Q13
Revenues:
Minimum rents (1)	$	175,807		$	136,715
Percentage rent		1,674			1,690
Recoveries		60,304			44,942
Ancillary income		6,342			5,615
Other revenues (2)		1,896			624

		246,023			189,586
Expenses (3):
Operating and maintenance		38,201			31,718
Real estate taxes		35,742			26,343

		73,943			58,061

Net operating income		172,080			131,525

Other income (expense):
Fee income		8,223			10,721
Interest income		3,127			7,878
Interest expense (4)		(62,881	)		(52,444	)
Depreciation and amortization		(108,762	)		(65,911	)
General and administrative (5)		(20,253	)		(19,760	)
Other income (expense), net (6)		(4,613	)		(2,900	)
Impairment charges (7)		(10,841	)		0

(Loss) income before earnings from equity method investments and other items		(23,920	)		9,109

Equity in net income of joint ventures		5,490			2,954
Impairment of joint venture investments		(9,100	)		0
Income (loss) from discontinued operations (8)		10,930			(5,151	)
Tax expense		(688	)		(361	)
Loss on disposition of real estate, net of tax		(1,090	)		(57	)

Net (loss) income		(18,378	)		6,494
Income (loss) attributable to non-controlling interests		1,738			(191	)

Net (loss) income attributable to DDR		(16,640	)		6,303
Preferred dividends		(6,608	)		(7,030	)

Net loss attributable to Common Shareholders		(23,248	)		(727	)

FFO:
Net loss attributable to common shareholders		(23,248	)		(727	)
Depreciation and amortization of real estate investments		101,489			67,016
Equity in net income of joint ventures		(5,490	)		(2,954	)
Joint ventures’ FFO		8,743			12,226
Non-controlling interests (OP units)		62			54
Impairment of depreciable real estate		10,390			7,679
Gain on disposition of depreciable real estate, net		(6,134	)		(778	)

FFO attributable to Common Shareholders		85,812			82,516
Non-operating items, net (9)		14,898			3,536

Operating FFO	$	100,710		$	86,052

FFO per share – Diluted (10)	$	0.24		$	0.26
Operating FFO per share – Diluted (10)	$	0.28		$	0.27

DDR Corp.

Balance Sheet: Consolidated Interests


$ in thousands	At Quarter End
	1Q14			4Q13
Assets:
Land	$	2,173,601		$	2,209,970
Buildings		6,862,392			6,949,440
Fixtures and tenant improvements		597,916			599,221

		9,633,909			9,758,631
Less: Accumulated depreciation		(1,854,710	)		(1,823,199	)

		7,779,199			7,935,432
Land held for development and construction in progress		463,513			452,980
Real estate held for sale, net		0			12,670

Real estate, net		8,242,712			8,401,082

Investments in and advances to joint ventures		441,265			448,008
Cash		163,835			86,664
Restricted cash		30,137			33,476
Notes receivable, net		78,945			78,338
Receivables, including straight-line rent, net		118,335			129,513
Other assets, net (11)		488,957			515,992

Total Assets		9,564,186			9,693,073

Liabilities and Equity:
Revolving credit facilities		28,318			29,133
Unsecured debt		2,757,007			2,754,120
Unsecured term loan		350,000			350,000
Mortgage and other secured debt		2,108,591			2,161,421

		5,243,916			5,294,674
Dividends payable		62,312			55,107
Other liabilities (12)		408,017			415,413

Total Liabilities		5,714,245			5,765,194

Preferred shares		405,000			405,000
Common shares		35,947			35,938
Paid-in-capital		5,418,437			5,417,363
Accumulated distributions in excess of net income		(1,994,590	)		(1,915,638	)
Deferred compensation obligation		16,664			16,702
Accumulated other comprehensive income		(31,036	)		(36,493	)
Less: Common shares in treasury at cost		(17,231	)		(18,211	)
Non-controlling interests		16,750			23,218

Total Equity		3,849,941			3,927,879


Total Liabilities and Equity	$	9,564,186		$	9,693,073

DDR Corp.

Income Statement: Unconsolidated Interests at 100%


$ in thousands		Three Months Ended
		1Q14			1Q13
Revenues:
Minimum rents		$	108,031		$	128,475
Percentage rent			409			624
Recoveries			24,836			31,842
Other revenues			15,790			16,514

			149,066			177,455
Expenses:
Operating and maintenance			41,880			40,083
Real estate taxes			14,674			20,723

			56,554			60,806

Net operating income			92,512			116,649

Other income (expense):
Interest expense			(54,149	)		(57,885	)
Depreciation and amortization			(45,716	)		(62,218	)
Tax expense			(4,140	)		(6,615	)

			(104,005	)		(126,718	)

Loss from continuing operations			(11,493	)		(10,069	)
Loss from discontinued operations			(758	)		(2,180	)
Gain (loss) on disposition of discontinued operations, net			21,473			(5,537	)
Gain on disposition of real estate, net			0			479

Net income (loss)			9,222			(17,307	)
Loss attributable to non-controlling interests			(1,488	)		(7,219	)

Net income (loss) attributable to unconsolidated joint ventures			7,734			(24,526	)
Depreciation and amortization of real estate investments			44,175			64,774
(Gain) loss on disposition of depreciable real estate, net	��		(21,473	)		5,058

FFO			30,436			45,306
FFO at DDR’s ownership interest			8,743			12,226
Operating FFO at DDR’s ownership interests			9,095			12,442

Net income at DDR’s ownership interests			4,731			3,049
Basis differences			759			(95	)

Equity in net income of joint ventures		$	5,490		$	2,954

DDR Corp.

Balance Sheet: Unconsolidated Interests at 100%


$ in thousands	At Quarter End
	1Q14			4Q13
Assets:
Land	$	1,269,063		$	1,275,232
Buildings		3,984,505			3,940,806
Fixtures and tenant improvements		277,942			266,851

		5,531,510			5,482,889
Less: Accumulated depreciation		(872,565	)		(839,867	)

		4,658,945			4,643,022
Land held for development and construction in progress		79,550			116,088

Real estate, net		4,738,495			4,759,110
Cash and restricted cash		276,806			282,866
Receivables, including straight-line rent, net		102,830			101,003
Other assets, net		199,100			196,615

Total Assets		5,317,231			5,339,594

Liabilities and Equity:
Mortgage debt		3,259,136			3,282,643
Notes and accrued interest payable to DDR		133,534			127,679
Other liabilities		243,930			245,368

Total Liabilities		3,636,600			3,655,690

Redeemable preferred equity		72,096			71,771
Accumulated equity		1,608,535			1,612,133

Total Liabilities and Equity	$	5,317,231		$	5,339,594

DDR Corp.

Financial Statements: Footnotes


$ in millions, except per share		Three Months Ended
Includes discontinued operations		1Q14			1Q13

(1)	Minimum rents:
	Straight-line rent, net	$	1.0		$	1.4
	Below-market rent, net		(0.1	)		(0.1	)
	Ground lease revenue		7.9			5.8

(2)	Other revenues:
	Lease termination fees		1.3			0.5
	Other miscellaneous		0.6			0.1

(3)	Operating expenses:
	Recoverable expenses (excludes discontinued operations)		(66.1	)		(50.1	)
	Non-recoverable expenses (excludes discontinued operations)		(7.8	)		(8.0	)
	Straight-line ground rent expense		(0.3	)		(0.3	)
	Expensed costs of suspended developments		(0.4	)		(0.6	)

(4)	Non-cash interest expense:
	Convertible debt accretion		(2.8	)		(2.6	)
	Debt fair value amortization		4.2			0.7
	Loan cost amortization		(3.2	)		(3.0	)
	Interest expense (capitalized)		1.8			2.7

(5)	General and administrative expenses:
	Stock compensation expenses		(1.9	)		(1.8	)
	Internal leasing expenses		(1.9	)		(2.1	)
	Construction administrative costs (capitalized)		2.4			2.2

(6)	Other income (expense):
	Transactions and other		(4.4	)		(0.5	)
	Litigation expenses		(0.2	)		(0.3	)
	Debt extinguishment, net		(0.0	)		(2.1	)

(7)	Impairment charges:
	Undeveloped land		(0.4	)		(0.0	)
	Assets marketed for sale		(10.4	)		(0.0	)

(8)	Discontinued operations:
	Revenues		1.7			11.3
	Expenses		(1.5	)		(9.4	)
	Impairments		(0.0	)		(7.7	)
	Gain on disposition of real estate, net		10.7			0.6

	Net income (loss)		10.9			(5.2	)

DDR Corp.

Financial Statements: Footnotes


$ in millions, except per share		Three Months Ended
Includes discontinued operations		1Q14			1Q13

(9)	Non-operating items excluded from Operating FFO:
	Non-cash impairment charges – non-depreciable assets	$	9.5		$	0.0
	Transaction, litigation, debt extinguishment costs, other		4.8			3.1
	Joint ventures – currency, other		0.4			0.2
	Loss on sale of non-depreciable real estate, net		0.2			0.2

			14.9			3.5

(10)	Outstanding per share information:
	Common shares (at quarter end)		359.3			317.5
	OP units (at quarter end)		0.4			0.4

	Total shares and units (at quarter end)		359.7			317.9
	Weighted average shares and units – Basic – EPS		357.6			313.2
	Assumed conversion of dilutive securities		0.0			0.7

	Weighted average shares and units – Diluted – EPS		357.6			313.9
	Weighted average shares and units – Basic – FFO & OFFO		359.6			315.9
	Assumed conversion of dilutive securities		0.5			0.7

	Weighted average shares and units – Diluted – FFO & OFFO		360.1			316.6
	Earnings per common share – Basic	$	(0.07	)	$	0.00
	Earnings per common share – Diluted	$	(0.07	)	$	0.00
	FFO per share – Basic	$	0.24		$	0.26
	FFO per share – Diluted	$	0.24		$	0.26
	Operating FFO per share – Diluted	$	0.28		$	0.27
	Common stock dividends declared, per share	$	0.155		$	0.135

(11)	Intangible assets, net(at quarter and year end)		377.9			409.6

(12)	Below-market leases, net (at quarter and year end)		120.9			123.9

Additional financial information:

	Capital expenditures (DDR share):
	Leasing	$	11.4		$	9.7
	Maintenance		1.1			0.6
	Maintenance PSF of owned GLA		0.03			0.02

	Miscellaneous (DDR share):
	Est. value of land owned adjacent to existing centers (at 12/31/13)	$	35.0			—
	Cost basis of headquarters (non-income producing, at quarter end)		42.0			—

DDR Corp.

Unconsolidated Joint Ventures


$ in millions											Gross
		DDR			Operating						Book
	Partner	Own %			Properties		GLA		ABR		Value		Debt
DDRTC Core Retail Fund	TIAA-CREF		15	%		26		8.4	$	102.6	$	1,555.0	$	823.3
DDR Domestic Retail Fund I	Various		20	%		59		8.2		90.4		1,426.8		928.4
DDR-SAU Retail Fund	State of Utah		20	%		27		2.4		25.0		310.8		179.2
BRE DDR Retail Holdings II	Blackstone Real Estate Partners VII		5	%		7		1.7		25.9		298.5		241.5
DDR Markaz II	Kuwait Financial Centre		20	%		11		1.4		15.0		187.2		137.6
BRE DDR Retail Holdings I	Blackstone Real Estate Partners VII		5	%		13		1.9		17.7		172.7		112.1
Other	Various		Various			13		2.0		20.8		245.9		142.1
Coventry II (1)	Coventry II Fund		10%-20	%		23		3.2		29.9		388.9		302.6

Subtotal						179		29.2	$	327.3	$	4,585.8	$	2,866.8
Sonae Sierra Brasil S.A. (2)	Sonae Sierra SGPS SA		33.3	%		10		4.8		114.7		1,025.3		392.3

Total						189		34.0	$	442.0	$	5,611.1	$	3,259.1

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

⁽²⁾

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

DDR Corp.

Joint Venture Income Statement (1)


	At 100%						At DDR Share
	1Q14			1Q13			1Q14
Revenues:
Minimum rents (2)	$	108.0		$	128.5		$	22.4
Percentage rent		0.4			0.6			0.1
Recoveries		24.8			31.8			4.4
Other revenues		15.8			16.5			4.7

		149.0			177.4			31.6
Expenses:
Operating and maintenance		41.9			40.1			8.8
Real estate taxes		14.6			20.7			2.7

		56.5			60.8			11.5

Net operating income (3)		92.5			116.6			20.1

Other income (expense):
Interest expense (4)		(54.2	)		(57.9	)		(10.3	)
Depreciation and amortization		(45.7	)		(62.2	)		(8.2	)
Tax expense		(4.1	)		(6.6	)		(1.4	)

		(104.0	)		(126.7	)		(19.9	)
Loss from continuing operations		(11.5	)		(10.1	)		0.2
Loss from discontinued operations		(0.8	)		(2.2	)		0.0
Gain (loss) on disposition of discontinued operations, net		21.5			(5.5	)		4.2
Gain on disposition of real estate, net		0.0			0.5			0.0
Disproportionate share of income (loss) (3) (5)		0.0			0.0			0.3

Net income (loss)		9.2			(17.3	)		4.7
Loss attributable to non-controlling interests		(1.5	)		(7.2	)		(0.5	)

Net income (loss) attributable to unconsolidated joint ventures		7.7			(24.5	)		4.2
Depreciation and amortization of real estate investments		44.2			64.8			7.5
(Gain) loss on disposition of depreciable real estate, net		(21.5	)		5.0			(4.2	)
Disproportionate share of income (5)		0.0			0.0			1.2

Funds From Operations:	$	30.4		$	45.3		$	8.7

Net income at DDR ownership interests	$	4.7		$	3.0		$	4.7
Basis differences		0.8			(0.1	)		0.8

Equity in net income of joint ventures		5.5			2.9			5.5
FFO at DDR’s ownership interests	$	8.7		$	12.2
Operating FFO at DDR’s ownership interests	$	9.1		$	12.4

⁽¹⁾ Average exchange rate BRL / USD		2.36			2.01
⁽²⁾ Straight-line rent, net		0.9			1.6			0.2
⁽³⁾ DDR’s share of NOI including discontinued operations, promoted equity and minority interests								21.3
⁽⁴⁾ Non-cash interest expense		(1.0	)		(1.6	)		(0.1	)
⁽⁵⁾ Adjustments represent the effect of promoted equity and minority interests

DDR Corp.

Joint Venture Balance Sheet (1)


	At 100%
	1Q14			4Q13
Land	$	1,269.1		$	1,275.2
Buildings		3,984.5			3,940.8
Fixtures and tenant improvements		277.9			266.9

		5,531.5			5,482.9
Less: Accumulated depreciation		(872.6	)		(839.9	)

		4,658.9			4,643.0
Land held for development and construction in progress		79.6			116.1

Real estate, net		4,738.5			4,759.1

Cash and restricted cash (2)		276.8			282.9
Receivables, including straight-line rent, net		102.8			101.0
Other assets, net		199.1			196.6

	$	5,317.2		$	5,339.6

Mortgage debt	$	3,259.1		$	3,282.6
Notes and accrued interest payable to DDR		133.5			127.7
Other liabilities		244.0			245.4

		3,636.6			3,655.7
Redeemable preferred equity		72.1			71.8
Accumulated equity		1,608.5			1,612.1

	$	5,317.2		$	5,339.6

	At DDR Share
	1Q14			4Q13
Land	$	233.4		$	234.1
Buildings		819.6			800.8
Fixtures and tenant improvements		67.5			64.4

		1,120.5			1,099.3
Less: Accumulated depreciation		(181.6	)		(174.5	)

		938.9			924.8
Land held for development and construction in progress		12.9			25.4

Real estate, net		951.8			950.2

Cash and restricted cash		78.3			81.0
Receivables, including straight-line rent, net		27.9			27.5
Other assets, net (3)		34.0			32.3
Disproportionate share of equity (4)		60.7			63.4

	$	1,152.7		$	1,154.4

Mortgage debt (5) (6)	$	627.7		$	630.1
Notes and accrued interest payable to DDR		13.7			13.0
Other liabilities		56.3			57.2

		697.7			700.3
Redeemable preferred equity		72.1			71.8

		769.8			772.1
Accumulated equity		390.7			387.0
Disproportionate share of equity (4)		(7.8	)		(4.7	)

	$	1,152.7		$	1,154.4

⁽¹⁾ Exchange rate of BRL / USD at period end		2.26			2.35
⁽²⁾ Amount attributable to SSB BV Sarl		180.3			191.9
⁽³⁾ Intangible assets at DDR share		11.2			12.1
⁽⁴⁾ Adjustments represent promoted equity and minority interests
⁽⁵⁾ Fair market value of debt adjustment at DDR share		0.6			0.6
⁽⁶⁾ Non-recourse mortgage debt with a zero basis at DDR’s share	$	20.1		$	20.9

DDR Corp.

Transactions


		DDR			Total		At 100%
Date	Location	Own. %			GLA		Price		Debt		Anchors

Acquisitions
No activity

Dispositions
1/14	Norcross, GA		100.0	%		83.4	$	10.0	$	0.0	Ingles
1/14	Tonawanda, NY		100.0	%		121.8		5.0		0.0	Best Fitness
1/14	Camp Hill, PA		100.0	%		62.9		3.0		0.0	Michaels
1/14	Hagerstown, MD		100.0	%		89.9		12.7		0.0	Hobby Lobby
2/14	Longview, TX		20.0	%		40.5		3.9		3.7	—
2/14	Charleston, SC		100.0	%		236.3		16.0		0.0	Home Décor Liquidators, Northern Tool
2/14	Fenton, MO		100.0	%		100.4		10.3		0.0	Aldi
2/14	Riverdale, UT		93.0	%		427.8		54.3		0.0	Best Buy, Gordman’s, Jo-Ann
3/14	Victor, NY		100.0	%		55.9		5.5		0.0	—
3/14	Greensboro, NC		100.0	%		151.4		7.2		0.0	Food Lion, Staples
3/14	San Antonio, TX		20.0	%		230.7		49.7		20.0	Ross Dress for Less, PetSmart, Office Depot
3/14	Goodlettsville, TN		20.0	%		84.4		7.4		6.4	Kroger
3/14	Oxford, MS		20.0	%		71.9		4.7		0.0	Kroger
	Land sales		100.0	%		0.0		8.3		0.0

						1,757.3	$	198.0	$	30.1

DDR Corp.

Development


$ in millions, GLA in thousands	At Quarter End						YTD Activity
							Net			Placed
	Land		CIP		Total		Spend			in Service
Consolidated
Ground up Projects in Progress	$	25.2	$	47.9	$	73.1	$	6.0		$	0.0
Ground up Projects Primarily on Hold		146.5		97.2		243.7		0.0			0.0
Substantially Completed Pending Lease Up		26.9		31.9		58.8		(0.2	)		0.1
Redevelopment Projects		28.3		54.4		82.7		15.7			14.0
Leasing Capital Expenditures		0.0		5.2		5.2		10.4			10.2

	$	226.9	$	236.6	$	463.5	$	31.9		$	24.3
Unconsolidated at 100%
Ground up Projects Primarily on Hold	$	50.7	$	4.0	$	54.7	$	1.5		$	0.0
Redevelopment Projects		0.0		2.6		2.6		5.2			2.9
Leasing Capital Expenditures		0.0		3.2		3.2		6.2			4.0
Sonae Sierra Brazil		12.2		6.9		19.1		19.7			49.1

	$	62.9	$	16.7	$	79.6	$	32.6		$	56.0


	Estimated								Cost
	Anchor		Total		Owned		Net		Incurred		Placed in
	Opening		GLA (1)		GLA (1)		Cost (2)		to Date		Service		Anchors
Development
Kansas City, KS		3Q14		419.0		60.0	$	18.7	$	11.5	$	0.0	IKEA, Hobby Lobby
Seabrook, NH	��	2Q14		364.5		165.0		75.1		61.6		0.0	Walmart, Dick’s, PetSmart, Michaels, Ulta

				783.5		225.0	$	93.8	$	73.1	$	0.0
Redevelopment
Phoenix, AZ				203.6		203.6	$	14.4	$	7.5	$	7.3	Sprouts, Michaels, Marshalls, PetSmart
Tampa, FL				35.7		35.7		3.2		0.7		0.3	Nordstrom Rack
Tampa, FL				115.7		108.7		14.0		9.5		9.5	Ross, Marshalls, Michaels, PetSmart
Chicago, IL				12.7		12.7		5.0		0.6		0.0	Trader Joe’s
San Juan, PR				172.5		172.5		64.4		23.2		19.9	Food court, Victoria’s Secret, Aeropostale
Fajardo, PR				36.3		36.3		8.8		6.3		5.7	PetSmart, Shoe Carnival
Columbia, SC				47.1		47.1		8.6		0.3		0.0	Nordstrom Rack
Richmond, VA				137.9		71.2		14.1		1.0		0.1	Martin’s Food, Petco

				761.5		687.8	$	132.5	$	49.1	$	42.8


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

⁽¹⁾	Includes only the expansion or redevelopment GLA.

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

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

DDR Corp.

Portfolio Summary

$, GLA in millions, except PSF

Excludes Brazil


	Total			Prime			Puerto Rico
At 100%
Operating Centers		396			287			15
Owned GLA		77.2			65.6			4.1
Ground Lease GLA		5.9			5.4			0.7
Additional Unowned		25.0			23.3			0.3
Base Rent PSF	$	13.44		$	13.97		$	19.70
Leased Rate		95.1	%		95.9	%		96.3	%
Commenced Rate		93.6	%		94.6	%		95.8	%

Metrics at DDR Share
Owned GLA		56.7			49.6			4.1
Ground Lease GLA		4.8			4.4			0.7
Base Rent PSF	$	13.63		$	14.00		$	19.70
Leased Rate		95.7	%		96.3	%		96.3	%
% of NOI		—			92.5	%		13.5	%


	Same Store NOI at 100%										Same Store NOI at DDR Share
	1Q14			1Q13			Change				1Q14			1Q13			Change
Same Store Leased Rate		95.2	%		94.5	%		0.7	%			95.8	%		95.3	%		0.5	%

Revenues:
Base Rents	$	220.0		$	213.4			3.1	%		$	167.2		$	162.0			3.2	%
Recoveries		74.4			70.5			5.6	%			58.5			55.5			5.4	%
Other		5.5			5.8			-6.3	%			4.8			4.9			-1.4	%

		299.9			289.7			3.5	%			230.5			222.4			3.7	%
Expenses:
Operating		(53.8	)		(50.4	)		6.8	%			(41.2	)		(38.6	)		6.6	%
Real Estate Taxes		(42.4	)		(41.7	)		1.8	%			(33.1	)		(32.4	)		2.2	%

		(96.2	)		(92.1	)		4.5	%			(74.2	)		(71.0	)		4.6	%

Same Store NOI (1)	$	203.7		$	197.7			3.1	%		$	156.3		$	151.4			3.2	%
Non-Same Store NOI (1)		60.9			50.4							35.5			3.2

	$	264.6		$	248.1						$	191.8		$	154.6

Same Store NOI Reconciliation to Income Statement

Consolidated at 100%:										Consolidated at DDR Share:
Revenues	$	246.0		$	189.6					DDR Share	$	172.1		$	131.5
Expenses		(73.9	)		(58.1	)				JV Share		(0.4	)		(0.3	)

	$	172.1		$	131.5						$	171.7		$	131.2
Unconsolidated at 100%:										Unconsolidated at DDR Share:
Revenues	$	149.0		$	177.4					Revenues	$	31.6		$	33.7
Expenses		(56.5	)		(60.8	)				Expenses		(11.5	)		(10.3	)

	$	92.5		$	116.6						$	20.1		$	23.4

Total	$	264.6		$	248.1					Total	$	191.8		$	154.6

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

DDR Corp.

Portfolio Detail (at 100%)

Excludes Brazil


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

2014-2023		1,489	$	547.3	$	10.61		58.3	%		4,975	$	316.9	$	22.80		33.7	%
Total Rent Roll		1,601	$	599.8	$	10.90		63.9	%		5,330	$	339.4	$	22.36		36.1	%


Annual Metrics
Period			Leased			ABR
Ending	Centers		Rate			PSF
1Q 2014		396		95.1	%	$	13.44
YE 2013		406		95.0	%		13.35
YE 2012		444		94.1	%		12.77
YE 2011		422		93.3	%		12.54
YE 2010		476		92.3	%		12.46
YE 2009		534		91.2	%		12.27
YE 2008		611		92.6	%		12.34
YE 2007		619		95.8	%		12.22
YE 2006		370		96.2	%		11.57
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
	Leased			% of			% of
SF	Rate			GLA			Vacancy
< 5,000		85.2	%		15.1	%		45.8	%
5,000-9,999		90.0	%		8.8	%		17.9	%
> 10,000		97.7	%		76.1	%		36.3	%

Total		95.1	%		100.0	%		100.0	%

Portfolio Concentration
	% of						% of
	ABR			MSF			GLA
Florida		10.8	%		9.6			11.5	%
Georgia		9.2	%		8.6			10.4	%
Puerto Rico		8.6	%		4.8			5.8	%
N. Carolina		7.6	%		5.8			7.0	%
Ohio		7.5	%		6.7			8.1	%
New York		6.5	%		6.8			8.2	%
New Jersey		4.9	%		3.2			3.9	%
Illinois		3.7	%		2.3			2.7	%
Arizona		3.2	%		2.2			2.7	%
California		3.2	%		2.0			2.4	%

DDR Corp.

Leasing Summary

$, GLA in thousands, except PSF

Excludes Brazil


					New		Prior
	# of				Rent		Rent					Wtd Avg		TA
	Leases		GLA		PSF		PSF		Spread			Term (Yrs)		PSF
Current Quarter at 100%
New Leases
Comparable		59		225	$	16.22	$	14.10		15.1	%		7.9	$	15.01
Non-comp		76		560		13.92		N/A		N/A			10.7		17.73

New Leases - Total		135		785		14.58		N/A		15.1	%		9.9		17.05
Renewals		243		2,268		14.23		13.34		6.7	%		6.2		0.14

Total		378		3,053	$	14.32	$	13.41		7.5	%		7.2	$	5.29

Current Quarter at DDR Share
New Leases
Comparable		59		177	$	15.67	$	13.02		20.4	%		8.3	$	16.53
Non-comp		76		449		14.55		N/A		N/A			11.2		17.86

New Leases - Total		135		626		14.87		N/A		20.4	%		10.4		17.54
Renewals		243		1,449		15.66		14.55		7.6	%		6.6		0.15

Total		378		2,075	$	15.42	$	14.38		8.9	%		7.7	$	6.50


Net Effective Rents	New			Renewals
	1Q14			1Q14
Square footage		785			2,268
Base rent	$	15.25		$	14.45
Tenant allowance		(1.73	)		(0.02	)
Landlord work		(1.14	)		—
Third party leasing commissions		(0.17	)		(0.01	)

Equivalent net effective rent	$	12.21		$	14.42
Weighted average term in years		9.4			6.6

DDR Corp.

Top 50 Tenants

$, GLA in millions

Excludes Brazil


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

	Top 50 Total		1,744		1,880	$	539.3		54.3	%	$	408.3		49.3		59.3	%		36.4
	Total Portfolio					$	992.9		100.0	%	$	744.2		83.1		100.0	%		61.5

⁽¹⁾	T.J. Maxx (43) / Marshalls (34) / Homegoods (13)

⁽²⁾	Walmart (23) / Sam’s Club (4) / Neighborhood Market (2)

⁽³⁾	Bed Bath (49) / World Market (19) / buybuy Baby (8) / CTS (1)

⁽⁴⁾	Dick’s Sporting Goods (32) / Golf Galaxy (2)

⁽⁵⁾	Ross Dress For Less (57) / dd’s Discounts (2)

⁽⁶⁾	Office Depot (17) / OfficeMax (47)

⁽⁷⁾	Kroger (26) / Harris Teeter (6) / King Soopers (1)

⁽⁸⁾	Gap (3) / Old Navy (50) / Banana Republic (3)

⁽⁹⁾	Catherine’s (10) / Dress Barn (28) / Justice (25) / Lane Bryant (28) / Maurice’s (11)

⁽¹⁰⁾	Toys “R” Us (6) / Babies “R” Us (16) / Toys-Babies Combo (5)

⁽¹¹⁾	7 leases are guaranteed by Koninklijke Ahold NV, Rated BBB / Baa3 / BBB

⁽¹²⁾	Sears (3) / Kmart (15)

⁽¹³⁾	Stop & Shop (3) / Martin’s (2) / Others (2)

⁽¹⁴⁾	Rainbow (21) / 5-7-9 (6) / Marianne (9)

DDR Corp.

Capital Structure

$, shares and units in millions, except per share


	March 31, 2014						March 31, 2013
	Amount			% of Total			Amount			% of Total
Capital Structure
Common Shares Equity	$	5,928.4			51	%	$	5,537.2			54	%
Perpetual Preferred Stock		405.0			4	%		405.0			4	%

		6,333.4			55	%		5,942.2			58	%
Unsecured Credit Facilities		28.3			0	%		190.5			2	%
Unsecured Term Loan		350.0			3	%		350.0			3	%
Unsecured Public Debt		2,775.5			24	%		2,179.2			21	%
Secured Term Loan		400.0			3	%		400.0			4	%
Fixed Rate Mortgage Debt		1,595.3			14	%		1,160.9			11	%
Variable Rate Mortgage Debt		80.9			1	%		92.1			1	%

		5,230.0			45	%		4,372.7			42	%
Total	$	11,563.4			100	%	$	10,314.9			100	%

Capital Structure Detail
Debt to Market Capitalization		45.2	%					42.4	%
Common Shares Outstanding		359.3						317.5
Operating Partnership Units		0.4						0.4
Market Value per Share	$	16.48					$	17.42
Accretion on Convertible Notes (excluded above)	$	18.5					$	29.5
Partners’ Share of Consolidated Debt (included above)	$	9.9					$	20.4
DDR Share of Unconsolidated Debt (excluded above)	$	627.7					$	734.5

Credit Ratings

Covenants

Covenant

Current

Debt Rating

Outlook

Threshold

Figure

Moody’s

Baa2

Stable

Total Debt to Real Estate Assets Ratio

£ 65

S&P

BBB-

Positive

Secured Debt to Assets Ratio

£ 40

Fitch

BBB-

Stable

Unencumbered Assets to Unsecured Debt

³ 135

198

Fixed Charge Coverage Ratio

³ 1.5

2.1

DDR Corp.

Debt / EBITDA


$ in millions
	1Q14			1Q13
Consolidated
Net (loss) income to DDR		($16.6	)	$	6.3
Impairments		10.8			0.0
Depreciation and amortization		108.8			65.9
Interest expense		62.9			52.4
Other expenses, net		4.8			3.1
Equity in net income of JVs		(5.5	)		(3.0	)
JV Impairments (at DDR share)		9.1			0.0
Income tax expense		0.7			0.4
EBITDA adjustments from discontinued operations		(9.8	)		13.0
Loss on disposition of real estate, net		1.1			0.1
Adjustments for non-controlling interests		(2.2	)		(0.2	)
JV FFO (at DDR share)		8.7			12.2
Other JV adjustments (at DDR share)		0.4			0.2

EBITDA - current quarter		173.2			150.4
EBITDA - annualized		692.8			601.6

Consolidated debt		5,243.9			4,354.0
Partner share of consolidated debt		(9.9	)		(20.4	)
Face value adjustments		(13.9	)		18.7
Cash and restricted cash		(193.0	)		(40.7	)

Net adjusted debt	$	5,027.1		$	4,311.6

Debt / EBITDA - consolidated		7.26	x		7.17	x

Pro rata including JVs
EBITDA - current quarter		185.5			163.0
EBITDA - annualized		742.0			652.0

Consolidated net debt		5,027.1			4,311.6
JV debt (at DDR share)		627.1			733.5
Cash and restricted cash		(77.5	)		(124.2	)

Net adjusted debt	$	5,576.7		$	4,920.9

Debt / EBITDA - Pro rata		7.52	x		7.55	x

DDR Corp.

Balance Sheet Summary


$ in millions
	Consolidated							Unconsolidated
					Interest									Interest
	Total		Total		Rate			Total			Total			Rate
Debt Composition		100%		DDR Share		DDR Share			100%			DDR Share			DDR Share
Unsecured Credit Facilities	$	28.3	$	28.3		2.20	%
Unsecured Term Loan		350.0		350.0		3.05	%
Unsecured Public Debt		2,757.0		2,757.0		5.27	%
Secured Term Loan		400.0		400.0		1.81	%
Fixed Rate Mortgage Loans		1,595.3		1,585.4		5.18	%		2,306.8			425.5			5.64	%
Variable Rate Mortgage Loans		80.9		80.9		1.72	%		942.3			201.6			7.63	%

Subtotal		5,211.5		5,201.6		4.75	%		3,249.1			627.1			6.28	%
Fair Market Value Adjustment		32.4		32.4					10.0			0.6

Total	$	5,243.9	$	5,234.0		4.75	%	$	3,259.1		$	627.7			6.28	%

	Scheduled		Secured		Unsecured									Interest
	Principal		Debt		Debt			Total			Total			Rate
	Payments		Maturities		Maturities			100%			Pro Rata			Pro Rata
Consolidated Maturity Schedule (1)
2014	$	24.5	$	302.8	$	0.0		$	327.3		$	327.3			4.23	%
2015		33.0		409.9		503.0			945.9			945.9			4.42	%
2016		27.0		0.2		240.0			267.2			267.2			9.60	%
2017		26.8		143.6		350.0			520.4			520.4			6.12	%
2018		20.0		502.6		410.5			933.1			933.1			3.62	%
2019		13.7		169.3		300.0			483.0			483.0			4.06	%
2020		5.5		280.2		300.0			585.7			585.7			6.11	%
2021		4.1		54.7		300.0			358.8			358.8			3.95	%
2022		0.1		42.8		450.0			492.9			483.0			4.67	%
2023 and beyond		0.0		15.4		300.0			315.4			315.4			3.23	%
Unsecured debt discount						(18.2	)		(18.2	)		(18.2	)

	$	154.7	$	1,921.5	$	3,135.3		$	5,211.5		$	5,201.6			4.75	%
Unconsolidated Maturity Schedule (1)
2014	$	9.2	$	228.3	$	0.0		$	237.5		$	38.3			6.64	%
2015		11.9		182.1		0.0			194.0			35.0			7.06	%
2016		10.9		200.4		0.0			211.3			19.1			6.72	%
2017		9.5		1,479.7		0.0			1,489.2			282.6			5.81	%
2018		5.4		214.8		0.0			220.2			70.3			5.57	%
2019		4.0		481.4		0.0			485.4			58.5			5.75	%
2020		4.2		69.8		0.0			74.0			22.9			7.75	%
2021		3.4		80.5		0.0			83.9			31.7			5.41	%
2022		2.2		0.0		0.0			2.2			0.4			0.00	%
2023 and beyond		2.4		249.0		0.0			251.4			68.3			8.56	%

Total	$	63.1	$	3,186.0	$	0.0		$	3,249.1		$	627.1			6.28	%



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

⁽¹⁾	Assumes borrower extension options are exercised.

DDR Corp.

Consolidated Debt Detail


$ in millions	Balance		Balance		Maturity		Interest
	100%		DDR Share		Date (1)		Rate (2) (3)
Senior Debt:
Unsecured Revolver ($750m)	$	28.3	$	28.3		04/18		L+115
Unsecured Revolver ($65m)		0.0		0.0		04/18		L+115
Unsecured Term Loan ($50m)		50.0		50.0		01/17		L+150
Unsecured Term Loan ($300m)		300.0		300.0		01/19		L+190
Secured Term Loan ($400m)		400.0		400.0		04/18		L+135

	$	778.3	$	778.3
Public Debt:
Unsecured Notes	$	152.9	$	152.9		05/15		5.50	%
Convertible Notes (4)		331.5		331.5		11/15		1.75	%
Unsecured Notes		239.6		239.6		03/16		9.63	%
Unsecured Notes		300.0		300.0		04/17		7.50	%
Unsecured Notes		298.8		298.8		04/18		4.75	%
Unsecured Notes		82.2		82.2		07/18		7.50	%
Unsecured Notes		298.4		298.4		09/20		7.88	%
Unsecured Notes		298.1		298.1		01/21		3.50	%
Unsecured Notes		457.2		457.2		07/22		4.63	%
Unsecured Notes		298.3		298.3		05/23		3.38	%

	$	2,757.0	$	2,757.0
Mortgage Debt:
Abernathy Square, GA	$	11.5	$	11.5		10/14		4.23	%
Bermuda Square, VA		7.1		7.1		10/14		4.23	%
Brook Highland Plaza, AL		23.4		23.4		10/14		4.23	%
Chillicothe Place, OH		4.1		4.1		10/14		4.23	%
Clearwater Collection, FL		6.8		6.8		10/14		4.23	%
Cross Pointe Center, NC		9.4		9.4		10/14		4.23	%
Crossroads Center, MS		23.4		23.4		10/14		4.23	%
Deer Valley Towne Center, AZ		16.7		16.7		10/14		4.23	%
Delaware Consumer Square, NY		9.7		9.7		10/14		4.23	%
Downtown Short Pump, VA		11.9		11.9		10/14		4.23	%
Hamilton Marketplace, NJ		39.4		39.4		10/14		4.23	%
Home Depot Center, IL		6.4		6.4		10/14		4.23	%
Kroger, OH		2.5		2.5		10/14		4.23	%
Lexington Place, SC		4.1		4.1		10/14		4.23	%
Loisdale Center, VA		10.5		10.5		10/14		4.23	%
Marketplace at Delta Twp, MI		6.3		6.3		10/14		4.23	%
Mooresville Consumer Sq, NC		17.3		17.3		10/14		4.23	%
North Pointe Plaza, SC		10.4		10.4		10/14		4.23	%
Overlook at Hamilton Place, TN		9.3		9.3		10/14		4.23	%
Plaza at Sunset Hills, MO		26.5		26.5		10/14		4.23	%
Sam’s Club, MA		5.1		5.1		10/14		4.23	%
The Commons, MD		8.3		8.3		10/14		4.23	%
Walmart Supercenter, OH		6.8		6.8		10/14		4.23	%
Wando Crossing, SC		11.4		11.4		10/14		4.23	%
Warner Robins Place, GA		6.5		6.5		10/14		4.23	%
Wendover Village, NC		4.6		4.6		10/14		4.23	%
Windsor Court, CT		6.9		6.9		10/14		4.23	%

DDR Corp.

Consolidated Debt Detail


$ in millions	Balance		Balance		Maturity		Interest
	100%		DDR Share		Date (1)		Rate (2) (3)
Kyle Crossing, TX		18.8		18.8		01/15		L + 275
Hamilton Commons, NJ		2.8		2.8		09/15		4.70	%
Woodfield Village Green, IL		66.1		66.1		09/15		6.40	%
Carillon Place, FL		25.9		25.9		09/15		6.40	%
Fairfax Towne Center, VA		39.3		39.3		09/15		6.40	%
Shoppers World, MA		128.7		128.7		09/15		6.40	%
Winter Garden Village, FL		104.7		104.7		10/15		6.10	%
Cumming Town Center, GA		34.0		34.0		10/15		6.10	%

Tops Plaza, NY		3.2		3.2		01/16		8.00	%
Freedom Plaza, NY		1.2		1.2		09/16		7.85	%

Walmart Supercenter, NC		4.3		4.3		08/17		6.00	%
Belgate Shopping Center, NC		17.1		17.1		09/17		L+225
Connecticut Commons, CT		48.0		48.0		10/17		5.01	%
Riverdale Village, MN		26.3		26.3		10/17		5.01	%
Riverdale Village Perimeter, MN		33.0		33.0		10/17		5.01	%
Lake Brandon Village, FL		9.5		9.5		10/17		5.01	%
Shoppers World Brookfield, WI		5.9		5.9		10/17		5.01	%
Marketplace of Brown Deer, WI		4.2		4.2		10/17		5.01	%
Brown Deer Center, WI		8.0		8.0		10/17		5.01	%
Thruway Plaza (Walmart), NY		1.9		1.9		10/17		6.78	%

Tops Plaza, NY		8.0		8.0		01/18		7.05	%
Walmart Supercenter, SC		4.3		4.3		01/18		6.00	%
Johns Creek Town Center, GA		24.8		24.8		03/18		5.06	%
Southland Crossings, OH		24.8		24.8		03/18		5.06	%
The Promenade at Brentwood, MO		31.5		31.5		03/18		5.06	%
DDR Headquarters, OH		29.7		29.7		03/18		L+105
Mohawk Commons, NY		11.4		11.4		12/18		5.75	%

Lowes, TN		4.6		4.6		01/19		7.66	%
Nassau Park Pavilion, NJ		57.0		57.0		02/19		3.40	%
Bandera Pointe, TX		24.8		24.8		02/19		3.40	%
Presidential Commons, GA		21.2		21.2		02/19		3.40	%
Plaza Cayey, PR		21.1		21.1		06/19		7.59	%
Plaza Fajardo, PR		25.4		25.4		06/19		7.59	%
Plaza Isabela, PR		22.3		22.3		06/19		7.59	%
Plaza Walmart, PR		11.9		11.9		06/19		7.59	%
Mariner Square, FL		2.9		2.9		09/19		9.75	%

Northland Square, IA		5.6		5.6		01/20		9.38	%
Plaza Rio Hondo, PR		125.7		125.7		01/20		3.95	%
Easton Marketplace, OH		50.2		50.2		01/20		3.95	%
The Fountains, FL		45.8		45.8		01/20		3.95	%
Perimeter Pointe, GA		43.3		43.3		01/20		3.95	%
Polaris Towne Center, OH		44.1		44.1		04/20		6.76	%

DDR Corp.

Consolidated Debt Detail


$ in millions	Balance		Balance		Maturity			Interest
	100%		DDR Share		Date (1)			Rate (2) (3)
West Valley Marketplace, PA		10.9		10.9		07/21			6.95	%
Wrangleboro Consumer Sq, NJ		61.8		61.8		10/21			5.41	%
Chapel Hills East, CO		8.8		8.8		12/21			5.24	%

Paradise Village Gateway, AZ		30.0		20.1		01/22			4.65	%
Macedonia Commons, OH		19.7		19.7		02/22			5.71	%

Gulfport Promenade, MS		15.4		15.4		12/37			S+44

	$	1,676.2	$	1,666.3
FMV adjustment - assumed debt		32.4		32.4

Total	$	1,708.6	$	1,698.7

Rate Type
Fixed	$	4,902.3	$	4,892.4		4.5 years			4.95	%
Variable		309.2		309.2		4.8 years			1.62	%

	$	5,211.5	$	5,201.6		4.5 years			4.75	%

Perpetual Preferred Stock
Class H	$	55.0	$	55.0		Perpetual			7.375	%
Class J		200.0		200.0		Perpetual			6.500	%
Class K		150.0		150.0		Perpetual			6.250	%

Interest Rate Swaps Underlying Debt Hedged:	Notional Amount		Rate Hedged		Fixed Rate			Termination Date
Secured Term Loan	$	100.0		1 mo. LIBOR		1.01	%		6/28/14
Unsecured Term Loan		50.0		1 mo. LIBOR		0.56	%		6/1/15
Secured Term Loan		100.0		1 mo. LIBOR		0.53	%		7/1/15
Mortgage Portfolio		81.1		1 mo. LIBOR		2.81	%		9/1/17
Unsecured Term Loan		100.0		1 mo. LIBOR		0.88	%		1/2/18
Unsecured Term Loan		200.0		1 mo. LIBOR		1.54	%		2/1/19

⁽¹⁾	Assumes borrower extension options are exercised.

⁽²⁾	L = LIBOR, S = SIFMA.

⁽³⁾	Does not include discounts or premiums.

⁽⁴⁾

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

DDR Corp.

Unconsolidated Debt Detail


$ in millions	Balance		Balance		Maturity		Interest
	100%		DDR Share		Date (1)		Rate (2) (3)
BRE DDR Retail Holdings II
Silver Spring Square, PA	$	38.0	$	1.9		10/15		6.35	%
Sycamore Crossing, OH		64.2		3.2		12/16		5.81	%
Falcon Ridge Town Center, CA		43.5		2.2		01/17		5.68	%
Vista Village, CA		33.2		1.7		04/17		5.71	%
Falcon Ridge Town Center, CA		14.9		0.7		01/18		5.91	%
Fortuna Center, VA		12.1		0.6		02/18		6.18	%
Orchards Market, WA		21.6		1.1		09/18		L+220
Indian Springs Market Center, OH		6.4		0.3		09/18		L+220

	$	233.9	$	11.7
DDR Domestic Retail Fund I
Village Center, WI	$	11.4	$	2.3		04/15		4.21	%
Paradise Promenade, FL		5.8		1.2		04/15		4.21	%
West Falls Plaza, NJ		11.0		2.2		04/15		4.21	%
52 Additional Assets		883.5		176.7		07/17		5.60	%
Heather Island, FL		4.6		0.9		02/18		3.56	%
Hilliard Rome, OH		12.1		2.4		02/18		3.56	%

	$	928.4	$	185.7
DDRTC Core Retail Fund
Pool 1 (9 assets)	$	350.2	$	52.5		03/17		5.45	%
Willoughby Hills Shop Ctr, OH		7.7		1.1		07/18		6.98	%
Pool 5 (11 assets) (3)		217.0		32.6		02/19		L+180
Pool 3 (6 assets) (3)		165.3		24.8		03/19		L+225
Birkdale Village, NC		82.5		12.4		04/24		4.30	%

	$	822.7	$	123.4
Sonae Sierra Brazil BV Sarl
Shopping Plaza Sul	$	12.7	$	4.2		06/15		CDI
Sonae Sierra Brasil Limitadas		3.3		1.1		10/15		CDI + 166
Patio Boavista		5.8		1.9		10/16		CDI + 178
Debentures		42.3		14.1		02/17		CDI + 96
Shopping Metropole		18.4		6.1		05/18		TR + 930
Debentures		90.6		30.2		02/19		IPCA + 625
Manaura Shopping		51.5		17.2		12/20		8.50	%
Patio Goiania		81.6		27.2		06/23		TR + 970
Patio Londrina		34.2		11.4		10/25		TR + 970
Patio Uberlandia		51.9		17.3		02/26		TR + 970

	$	392.3	$	130.7

DDR Corp.

Unconsolidated Debt Detail


$ in millions	Balance		Balance		Maturity		Interest
	100%		DDR Share		Date (1)		Rate (2) (3)
Coventry II
Bloomfield Park, MI (4)	$	39.8	$	0.0		12/08		P+300
Marley Creek Square, IL (4)		10.4		1.0		12/12		L+125
DDR SM (10 assets) (4)		7.7		1.6		03/14		L+350
DDR SM (10 assets) (4)		32.7		6.5		03/14		L+525
Totem Lake Mall, WA (4)		27.5		5.5		06/15		L+650
Buena Park, CA (3)		73.0		14.6		06/15		L+625
DDR SM (7 assets) (4)		27.3		5.5		09/16		6.75	%
Christown Spectrum Mall, AZ		65.7		13.1		04/18		4.80	%
Fairplain Plaza, MI		18.5		3.7		05/23		4.85	%

	$	302.6	$	51.5
DDR SAU Retail Fund
DDR SAU Retail Fund (18 assets)	$	107.5	$	21.5		09/17		4.74	%
DDR SAU Retail Fund (9 assets)		71.7		14.3		04/18		4.65	%

	$	179.2	$	35.8
Other Joint Ventures
DDR Markaz II (11 assets)	$	137.6	$	27.5		11/14		7.15	%
BRE DDR Retail Holdings I (12 Assets)		110.3		5.5		04/16		5.25	%
Lennox Town Center Limited, OH		1.0		0.5		07/17		6.44	%
Lennox Town Center Limited, OH		26.0		13.0		07/17		5.64	%
RO & SW Realty (9 assets)		20.3		5.2		10/20		5.25	%
Sun Center Limited, OH		22.6		18.0		05/21		5.99	%
RVIP IIIB, Deer Park, IL		72.2		18.6		09/21		4.84	%

	$	390.0	$	88.3
Subtotal	$	3,249.1	$	627.1
FMV Adjustment - Assumed Debt		10.0		0.6

Total	$	3,259.1	$	627.7
Rate Type
Fixed	$	2,306.8	$	425.5		3.8 years		5.64	%
Variable		942.3		201.6		5.6 years		7.63	%

	$	3,249.1	$	627.1		4.4 years		6.28	%

⁽¹⁾	Assumes borrower extension options are exercised.

⁽²⁾	L = LIBOR, P = Prime

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

DDR Corp.

Analyst Coverage


Corporate Headquarters	Investor Relations
DDR Corp.	Matt Lougee
3300 Enterprise Parkway	Toll Free: (877) 225-5337
Beachwood, Ohio 44122	Main: (216) 755-5500
Website: www.ddr.com	Email: mlougee@ddr.com

Equity Research
Bank of Amerca Merrill Lynch	Craig Schmidt	craig.schmidt@baml.com	(646) 855-3640
	Katharine Hutchins	katharine.hutchins@baml.com	(646) 855-1681

Capital One	Chris Lucas	christopher.lucas@capitalone.com	(571) 633-8151

Citigroup	Michael Bilerman	michael.bilerman@citi.com	(212) 816-1383

	Christy McElroy	christy.mcelroy@citi.com	(212) 816-6981

Cowen & Company	Jim Sullivan	james.sullivan@cowen.com	(646) 562-1380

Deutsche Bank	Vincent Chao	vincent.chao@db.com	(212) 250-6799

DISCERN	Dave Wigginton	dwigginton@discern.com	(646) 863-4177

Goldman Sachs	Andrew Rosivach	andrew.rosivach@gs.com	(212) 902-2796

	Caitlin Burrows	caitlin.burrows@gs.com	(212) 902-4736

Green Street Advisors	Cedrik Lachance	clachance@greenstreetadvisors.com	(949) 640-8780
	Jason White	jwhite@greenstreetadvisors.com	(949) 640-8780

Hilliard Lyons	Carol Kemple	ckemple@hilliard.com	(502) 588-1839

Imperial Capital	David Harris	dharris@imperialcapital.com	(212) 351-9429

ISI Group	Steve Sakwa	ssakwa@isigrp.com	(212) 446-9462

Janney Montgomery Scott	Mike Gorman	mgorman@janney.com	(215) 665-6224

Jefferies and Company	Tayo Okusanya	tokusanya@jefferies.com	(212) 336-7076

J.P. Morgan	Michael Mueller	michael.w.mueller@jpmorgan.com	(212) 622-6689

KeyBanc Capital Markets	Jordan Sadler	jsadler@keybanccm.com	(917) 368-2280
	Todd Thomas	tthomas@keybanccm.com	(917) 368-2286

MLV & Co.	Paul Morgan	pmorgan@mlvco.com	(415) 325-4187

Morgan Stanley	Haendel St. Juste	haendel.stjuste@morganstanley.com	(212) 761-0071

RBC Capital Markets	Rich Moore	rich.moore@rbccm.com	(440) 715-2646

Robert W. Baird & Co.	Jonathan Pong	jpong@rwbaird.com	(203) 425-2740

Sandler O’Neill	Alex Goldfarb	agoldfarb@sandleroneill.com	(212) 466-7937
	Andrew Schaffer	aschaffer@sandleroneill.com	(212) 466-8062

SunTrust Robinson Humphrey	Ki Bin Kim	kibin.kim@suntrust.com	(212) 303-4124

UBS	Ross Nussbaum	ross.nussbaum@ubs.com	(212) 713-2484
	Jeremy Metz	jeremy.metz@ubs.com	(212) 713-2429

Wells Fargo	Jeff Donnelly	jeff.donnelly@wellsfargo.com	(617) 603-4262
	Tamara Fique	tamara.fique@wellsfargo.com	(443) 263-6568

Fixed Income Research

Barclays	Danish Agboatwala	danish.agboatwala@barclays.com	(212) 412-2573

Citigroup	Tom Cook	thomas.n.cook@citigroup.com	(212) 723-1112

J.P. Morgan	Mark Streeter	mark.streeter@jpmorgan.com	(212) 834-5086

Wells Fargo	Thierry Perrein	thierry.perrein@wachovia.com	(704) 715-8455

DDR Corp.

Reporting Policies

Revenues

•

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

•

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

•

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

General and Administrative Expenses

•

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

•

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

•

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

Deferred Financing Costs

•

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

Real Estate

•

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

•

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

•

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

•

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


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

DDR Corp.

Notable Accounting and Supplemental Policies

Capitalization

•

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

•

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

•

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

Gains on Sales of Real Estate

•

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

•

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

Leasing Spreads

•

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

Same Store NOI (“SSNOI”)

•

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

Net Effective Rents

•

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

LOGO

⁽³⁾ Loans with floor interest rates:

DDRTC Holdings Pool 5 (11 assets)

1 mo. LIBOR of 0.25%

DDRTC Holdings Pool 3 (6 assets)

1 mo. LIBOR of 0.25%

Buena Park, CA

1 mo. LIBOR of 0.75%