Exhibit 99.1
DDR Corp.
Table of Contents
Section | Page | |||
Earnings Release & Financial Statements | ||||
Press Release | 1 - 10 | |||
Asset Summary | ||||
Portfolio Summary | 11 | |||
Portfolio Detail | 12 | |||
Leasing Summary | 13 | |||
Top 50 Tenants | 14 | |||
Top 50 Assets by ABR at DDR Share | 15 | |||
Unconsolidated Joint Ventures | 16 | |||
Investments | ||||
Transactions | 17 | |||
Developments/Redevelopments | 18 | |||
Balance Sheet Summary | ||||
Capital Structure | 19 | |||
Debt/EBITDA | 20 | |||
Debt Summary | 21 | |||
Consolidated Debt Detail | 22 - 23 | |||
Unconsolidated Debt Detail | 24 - 25 | |||
Analyst Information and Reporting Policies | ||||
Analyst Coverage | 26 | |||
Notable Accounting and Supplemental Policies | 27 - 28 | |||
Non-GAAP Measures | 29 - 37 |
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 our results to differ materially from those indicated by such forward-looking statements, including among other factors, local conditions such as supply 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; redevelopment and construction activities may not achieve a desired return 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; any impact on strategy or results from the transition in leadership; and the finalization of the financial statements for the period ended June 30, 2016. 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, 2015. 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: | |||
Matt Schuler | Matt Lougee | |||
mschuler@ddr.com | mlougee@ddr.com | |||
216.755.5500 | 216.755.5500 |
DDR REPORTS SECOND QUARTER 2016 OPERATING RESULTS
BEACHWOOD, OHIO, July 26, 2016 – DDR Corp. (NYSE: DDR) today announced operating results for the second quarter ended June 30, 2016.
Financial Highlights
• | Second quarter net income attributable to common shareholders was $35.5 million, or $0.10 per diluted share, compared to net income of $13.0 million, or $0.03 per diluted share, for the prior-year comparable period. |
• | Second quarter operating funds from operations attributable to common shareholders (“Operating FFO”) increased $11.0 million to $122.4 million, or 6.5%, to $0.33 per diluted share, compared to $111.4 million, or $0.31 per diluted share, for the prior-year comparable period. |
Significant Quarterly Activity
• | Generated same store net operating income growth of 3.1% on a pro rata basis |
• | Executed 338 new leases and renewals for 2.3 million square feet |
• | Generated new leasing spreads of 27.7% and renewal leasing spreads of 7.0%, both on a pro rata basis |
• | Increased the portfolio leased rate by 10 basis points to 96.1% at June 30, 2016, from 96.0% at December 31, 2015 and 95.8% at June 30, 2015, on a pro rata basis |
• | Increased the annualized base rent per occupied square foot by 3.8% on a pro rata basis to $14.92 at June 30, 2016, from $14.37 at June 30, 2015 |
• | Sold three operating assets for $45 million and three land parcels for $13 million, totaling $58 million at DDR’s share |
“While I have only been at DDR for a short time, I am not surprised by this quarter’s strong operational results given the quality of the portfolio, the people, and the progress made at this Company in recent years. We look forward to delivering many more quarters of similar performance as we strive to build a track record of outperformance,” commented Thomas F. August, President and Chief Executive Officer.
2016 Guidance
The Company is revising its 2016 Operating FFO and NAREIT defined FFO guidance estimate to a range of $1.23 to $1.26 per diluted share from a range of $1.20 to $1.25 per diluted share. The Company’s full year disposition guidance of between $600 and $800 million at DDR’s pro rata share remains unchanged, but will be weighted to the second half of the year.
About DDR Corp.
DDR is an owner and manager of 349 value-oriented shopping centers representing 113 million square feet in 37 states and Puerto Rico. The Company’s assets are concentrated in high barrier-to-entry markets with stable population 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 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, July 27, 2016, at 10:00 a.m. Eastern Time. To participate, please dial 877-249-1119 (domestic) or 412-542-4143 (international) at least ten minutes prior to the scheduled start of the call. The conference call webcast will be recorded and available for replay through the Investors portion of DDR’s website,http://ir.ddr.com/events.cfm.
1
Non-GAAP Disclosures
FFO is a supplemental non-GAAP financial measure used as a standard in the real estate industry and a widely accepted measure of real estate investment trust (“REIT”) performance. Management believes that both 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.
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 and related investments, which are presented net of taxes, (iii) impairment charges on depreciable real estate property and related investments 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 computes FFO in accordance with the NAREIT definition. The Company calculates Operating FFO by excluding certain non-operating charges and gains. Operating FFO is useful to investors as the Company removes non-comparable charges and gains to analyze the results of its operations and assess performance of the core operating real estate portfolio. Other real estate companies may calculate FFO and Operating FFO in a different manner.
The Company also uses net operating income (“NOI”), a non-GAAP financial measure, as a performance measure. NOI is calculated as property revenues less property-related expenses. The Company believes NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level and when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis. The Company presents NOI information herein on a same store basis or “SSNOI.” The Company believes SSNOI provides investors with additional information regarding the operating performances of comparable assets because it excludes certain non-cash and non-comparable items as noted below.
The Company defines SSNOI as property revenues less property-related expenses, which exclude straight-line rental income and expenses, lease termination income, management fee expense, fair market value of leases, expense recovery adjustments and provisions for uncollectible amounts and/or recoveries thereof. SSNOI also excludes activity associated with development and major redevelopment; and includes assets owned in comparable periods (15 months for quarter comparisons). SSNOI excludes all non-property and corporate level revenue and expenses. Other real estate companies may calculate NOI and SSNOI in a different manner.
This press release includes financial statements presented at DDR’s pro rata share. The amounts shown in the columns labeled “Consolidated’’ reflect the line items contained in the Company’s consolidated financial statements in accordance with generally accepted accounting principles (“GAAP”). The amounts in the columns labeled ‘‘Share of JVs’’ were computed by applying to each financial statement line item the effective ownership interest used to arrive at DDR’s share of net income or loss during the period when applying the equity method of accounting to each of the Company’s unconsolidated joint ventures. Other companies may calculate their pro rata interest differently, limiting the usefulness of the amounts as comparative measures. The Company provides DDR share information because the Company believes it assists investors and analysts in estimating the effective interest in DDR’s unconsolidated joint ventures when read in conjunction with the Company’s reported results under GAAP.
FFO, Operating FFO and SSNOI do not represent cash generated from operating activities in accordance with GAAP, are not necessarily indicative of cash available to fund cash needs and should not be considered as alternatives to net income computed in accordance with GAAP as indicators of the Company’s operating performance or as alternatives to cash flow as a measure of liquidity.
Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in the non-GAAP measures section.
2
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 supply 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; redevelopment and construction activities may not achieve a desired return 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; any impact on strategy or results from the transition in leadership; and the finalization of the financial statements for the period ended June 30, 2016. 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, 2015. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.
3
DDR Corp.
Income Statement:Consolidated Interests
$ in thousands, except per share | 2Q16 | 2Q15 | ||||||||||||||||||||||
Consolidated | Share of JVs | Total DDR Share (Non-GAAP) | Consolidated | Share of JVs | Total DDR Share (Non-GAAP) | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Minimum rents (1) | $ | 178,064 | $ | 13,666 | $ | 191,730 | $ | 179,363 | $ | 14,275 | $ | 193,638 | ||||||||||||
Percentage rent | 1,654 | 113 | 1,767 | 1,372 | 74 | 1,446 | ||||||||||||||||||
Recoveries | 61,376 | 4,321 | 65,697 | 62,021 | 4,529 | 66,550 | ||||||||||||||||||
Other property revenues (2) | 4,762 | 157 | 4,919 | 6,176 | 1,107 | 7,283 | ||||||||||||||||||
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245,856 | 18,257 | 264,113 | 248,932 | 19,985 | 268,917 | |||||||||||||||||||
Expenses (3): | ||||||||||||||||||||||||
Operating and maintenance | 34,588 | 2,684 | 37,272 | 36,029 | 2,866 | 38,895 | ||||||||||||||||||
Real estate taxes | 37,276 | 2,542 | 39,818 | 37,797 | 2,650 | 40,447 | ||||||||||||||||||
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71,864 | 5,226 | 77,090 | 73,826 | 5,516 | 79,342 | |||||||||||||||||||
Net operating income (4) | 173,992 | 13,031 | 187,023 | 175,106 | 14,469 | 189,575 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Fee income | 11,465 | (955 | ) | 10,510 | 8,391 | (1,007 | ) | 7,384 | ||||||||||||||||
Interest income | 9,446 | (415 | ) | 9,031 | 7,211 | (321 | ) | 6,890 | ||||||||||||||||
Interest expense (5) | (54,012 | ) | (5,278 | ) | (59,290 | ) | (61,287 | ) | (5,589 | ) | (66,876 | ) | ||||||||||||
Depreciation and amortization | (97,698 | ) | (5,635 | ) | (103,333 | ) | (99,300 | ) | (6,115 | ) | (105,415 | ) | ||||||||||||
General and administrative (6) | (18,499 | ) | 0 | (18,499 | ) | (19,271 | ) | 0 | (19,271 | ) | ||||||||||||||
Other income (expense), net (7) | 2,081 | (56 | ) | 2,025 | 2,368 | (33 | ) | 2,335 | ||||||||||||||||
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Income before earnings from JVs and other | 26,775 | 692 | 27,467 | 13,218 | 1,404 | 14,622 | ||||||||||||||||||
Equity in net income of JVs | 1,117 | (1,117 | ) | 0 | 1,642 | (1,642 | ) | 0 | ||||||||||||||||
Basis differences of JVs | 0 | 403 | 403 | 0 | 307 | 307 | ||||||||||||||||||
Loss on sale and change in control | 0 | 0 | 0 | (6,507 | ) | 0 | (6,507 | ) | ||||||||||||||||
Tax expense | (245 | ) | 0 | (245 | ) | (573 | ) | 0 | (573 | ) | ||||||||||||||
Gain on disposition of real estate, net | 13,721 | 22 | 13,743 | 11,267 | (69 | ) | 11,198 | |||||||||||||||||
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Net income | 41,368 | 0 | 41,368 | 19,047 | 0 | 19,047 | ||||||||||||||||||
Non-controlling interests | (310 | ) | 0 | (310 | ) | (449 | ) | 0 | (449 | ) | ||||||||||||||
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Net income DDR | 41,058 | 0 | 41,058 | 18,598 | 0 | 18,598 | ||||||||||||||||||
Preferred dividends | (5,594 | ) | (5,594 | ) | ||||||||||||||||||||
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Net income Common Shareholders | 35,464 | 13,004 | ||||||||||||||||||||||
Depreciation and amortization of real estate | 95,626 | 97,239 | ||||||||||||||||||||||
Equity in net income of JVs | (1,117 | ) | (1,642 | ) | ||||||||||||||||||||
JVs’ FFO | 6,426 | 7,502 | ||||||||||||||||||||||
Non-controlling interests | 76 | 248 | ||||||||||||||||||||||
Gain on disposition of depreciable real estate, net | (16,154 | ) | (11,312 | ) | ||||||||||||||||||||
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FFO Common Shareholders | 120,321 | 105,039 | ||||||||||||||||||||||
Non-operating items, net (9) | 2,120 | 6,357 | ||||||||||||||||||||||
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Operating FFO | $ | 122,441 | $ | 111,396 | ||||||||||||||||||||
FFO per share – Diluted (10) | $ | 0.33 | $ | 0.29 | ||||||||||||||||||||
Operating FFO per share – Diluted (10) | $ | 0.33 | $ | 0.31 |
4
DDR Corp.
Income Statement: Consolidated Interests
$ in thousands, except per share | 6M16 | 6M15 | ||||||||||||||||||||||
Consolidated | Share of JVs | Total DDR Share (Non-GAAP) | Consolidated | Share of JVs | Total DDR Share (Non-GAAP) | |||||||||||||||||||
Revenues: | ||||||||||||||||||||||||
Minimum rents (1) | $ | 355,431 | $ | 27,311 | $ | 382,742 | $ | 360,060 | $ | 29,353 | $ | 389,413 | ||||||||||||
Percentage rent | 3,590 | 141 | 3,731 | 2,757 | 174 | 2,931 | ||||||||||||||||||
Recoveries | 122,975 | 8,549 | 131,524 | 126,101 | 9,200 | 135,301 | ||||||||||||||||||
Other property revenues (2) | 10,105 | 312 | 10,417 | 10,764 | 1,478 | 12,242 | ||||||||||||||||||
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492,101 | 36,313 | 528,414 | 499,682 | 40,205 | 539,887 | |||||||||||||||||||
Expenses (3): | ||||||||||||||||||||||||
Operating and maintenance | 71,096 | 5,401 | 76,497 | 74,755 | 6,012 | 80,767 | ||||||||||||||||||
Real estate taxes | 73,810 | 5,141 | 78,951 | 75,426 | 5,406 | 80,832 | ||||||||||||||||||
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144,906 | 10,542 | 155,448 | 150,181 | 11,418 | 161,599 | |||||||||||||||||||
Net operating income | 347,195 | 25,771 | 372,966 | 349,501 | 28,787 | 378,288 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Fee income | 19,643 | (1,890 | ) | 17,753 | 16,466 | (1,977 | ) | 14,489 | ||||||||||||||||
Interest income | 18,496 | (828 | ) | 17,668 | 14,372 | (636 | ) | 13,736 | ||||||||||||||||
Interest expense (5) | (111,909 | ) | (10,576 | ) | (122,485 | ) | (124,307 | ) | (11,515 | ) | (135,822 | ) | ||||||||||||
Depreciation and amortization | (194,600 | ) | (11,184 | ) | (205,784 | ) | (202,315 | ) | (13,214 | ) | (215,529 | ) | ||||||||||||
General and administrative (6) | (36,375 | ) | 0 | (36,375 | ) | (37,866 | ) | 0 | (37,866 | ) | ||||||||||||||
Other income (expense), net (7) | 3,854 | (104 | ) | 3,750 | (1,060 | ) | (94 | ) | (1,154 | ) | ||||||||||||||
Impairment charges (8) | 0 | 0 | 0 | (279,021 | ) | (90 | ) | (279,111 | ) | |||||||||||||||
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Income before earnings from JVs and other | 46,304 | 1,189 | 47,493 | (264,230 | ) | 1,261 | (262,969 | ) | ||||||||||||||||
Equity in net income of JVs | 15,538 | (15,538 | ) | 0 | 1,703 | (1,703 | ) | 0 | ||||||||||||||||
Basis differences of JVs | 0 | 3,632 | 3,632 | 0 | 484 | 484 | ||||||||||||||||||
Gain on sale and change in control | 0 | 0 | 0 | 7,772 | 0 | 7,772 | ||||||||||||||||||
Tax expense | (703 | ) | 0 | (703 | ) | (5,473 | ) | 0 | (5,473 | ) | ||||||||||||||
Gain on disposition of real estate, net | 26,102 | 10,717 | 36,819 | 36,361 | (42 | ) | 36,319 | |||||||||||||||||
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Net income (loss) | 87,241 | 0 | 87,241 | (223,867 | ) | 0 | (223,867 | ) | ||||||||||||||||
Non-controlling interests | (610 | ) | 0 | (610 | ) | (1,322 | ) | 0 | (1,322 | ) | ||||||||||||||
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Net income (loss) DDR | 86,631 | 0 | 86,631 | (225,189 | ) | 0 | (225,189 | ) | ||||||||||||||||
Preferred dividends | (11,188 | ) | (11,188 | ) | ||||||||||||||||||||
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Net income (loss) Common Shareholders | 75,443 | (236,377 | ) | |||||||||||||||||||||
Depreciation and amortization of real estate | 190,480 | 198,106 | ||||||||||||||||||||||
Equity in net income of JVs | (15,538 | ) | (1,703 | ) | ||||||||||||||||||||
JVs’ FFO | 12,576 | 14,519 | ||||||||||||||||||||||
Non-controlling interests | 152 | 497 | ||||||||||||||||||||||
Impairment of depreciable real estate | 0 | 179,748 | ||||||||||||||||||||||
Gain on disposition of depreciable real estate, net | (28,250 | ) | (36,548 | ) | ||||||||||||||||||||
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FFO Common Shareholders | 234,863 | 118,242 | ||||||||||||||||||||||
Non-operating items, net (9) | 1,807 | 100,287 | ||||||||||||||||||||||
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Operating FFO | $ | 236,670 | $ | 218,529 | ||||||||||||||||||||
FFO per share – Diluted (10) | $ | 0.64 | $ | 0.33 | ||||||||||||||||||||
Operating FFO per share – Diluted (10) | $ | 0.65 | $ | 0.60 |
5
DDR Corp.
Balance Sheet: Consolidated Interests
$ in thousands | At Period End | |||||||||||||||||||||||
2Q16 | 4Q15 | |||||||||||||||||||||||
Consolidated | Share of JVs | Total DDR Share (Non-GAAP) | Consolidated | Share of JVs | Total DDR Share (Non-GAAP) | |||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Land | $ | 2,137,889 | $ | 174,406 | $ | 2,312,295 | $ | 2,184,145 | $ | 181,843 | $ | 2,365,988 | ||||||||||||
Buildings | 6,893,792 | 471,139 | 7,364,931 | 6,965,632 | 491,662 | 7,457,294 | ||||||||||||||||||
Fixtures and tenant improvements | 756,617 | 30,764 | 787,381 | 743,037 | 31,105 | 774,142 | ||||||||||||||||||
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9,788,298 | 676,309 | 10,464,607 | 9,892,814 | 704,610 | 10,597,424 | |||||||||||||||||||
Depreciation | (2,115,084 | ) | (152,440 | ) | (2,267,524 | ) | (2,062,899 | ) | (152,035 | ) | (2,214,934 | ) | ||||||||||||
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7,673,214 | 523,869 | 8,197,083 | 7,829,915 | 552,575 | 8,382,490 | |||||||||||||||||||
Construction in progress and land | 161,663 | 7,048 | 168,711 | 235,385 | 5,654 | 241,039 | ||||||||||||||||||
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Real estate, net | 7,834,877 | 530,917 | 8,365,794 | 8,065,300 | 558,229 | 8,623,529 | ||||||||||||||||||
Investments in JVs | 65,186 | 2,330 | 67,516 | 72,576 | 636 | 73,212 | ||||||||||||||||||
Preferred equity interest | 400,203 | 0 | 400,203 | 395,156 | 0 | 395,156 | ||||||||||||||||||
Cash | 17,981 | 8,956 | 26,937 | 22,416 | 7,815 | 30,231 | ||||||||||||||||||
Restricted cash | 9,173 | 727 | 9,900 | 10,104 | 803 | 10,907 | ||||||||||||||||||
Notes receivable, net | 47,294 | 0 | 47,294 | 42,534 | 0 | 42,534 | ||||||||||||||||||
Receivables, net | 124,878 | 7,213 | 132,091 | 129,089 | 8,151 | 137,240 | ||||||||||||||||||
Other assets, net (11) | 321,994 | 19,900 | 341,894 | 359,913 | 21,598 | 381,511 | ||||||||||||||||||
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Total Assets | 8,821,586 | 570,043 | 9,391,629 | 9,097,088 | 597,232 | 9,694,320 | ||||||||||||||||||
Liabilities and Equity: | ||||||||||||||||||||||||
Revolving credit facilities | 265,000 | 0 | 265,000 | 210,000 | 0 | 210,000 | ||||||||||||||||||
Unsecured debt | 2,911,277 | 0 | 2,911,277 | 3,149,188 | 0 | 3,149,188 | ||||||||||||||||||
Unsecured term loan | 398,167 | 0 | 398,167 | 397,934 | 0 | 397,934 | ||||||||||||||||||
Secured debt | 1,364,363 | 425,166 | 1,789,529 | 1,382,415 | 441,918 | 1,824,333 | ||||||||||||||||||
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4,938,807 | 425,166 | 5,363,973 | 5,139,537 | 441,918 | 5,581,455 | |||||||||||||||||||
Dividends payable | 75,078 | 0 | 75,078 | 68,604 | 0 | 68,604 | ||||||||||||||||||
Other liabilities (12) | 398,909 | 20,367 | 419,276 | 425,478 | 19,686 | 445,164 | ||||||||||||||||||
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Total Liabilities | 5,412,794 | 445,533 | 5,858,327 | 5,633,619 | 461,604 | 6,095,223 | ||||||||||||||||||
JVs share of equity | 0 | 22,340 | 22,340 | 0 | 20,393 | 20,393 | ||||||||||||||||||
Preferred shares | 350,000 | 0 | 350,000 | 350,000 | 0 | 350,000 | ||||||||||||||||||
Common shares | 36,551 | 0 | 36,551 | 36,529 | 0 | 36,529 | ||||||||||||||||||
Paid-in capital | 5,473,632 | 0 | 5,473,632 | 5,466,511 | 0 | 5,466,511 | ||||||||||||||||||
Distributions in excess of net income | (2,455,319 | ) | 102,170 | (2,353,149 | ) | (2,391,793 | ) | 115,235 | (2,276,558 | ) | ||||||||||||||
Deferred compensation | 15,425 | 0 | 15,425 | 15,537 | 0 | 15,537 | ||||||||||||||||||
Other comprehensive income | (5,157 | ) | 0 | (5,157 | ) | (6,283 | ) | 0 | (6,283 | ) | ||||||||||||||
Common shares in treasury at cost | (14,919 | ) | 0 | (14,919 | ) | (15,316 | ) | 0 | (15,316 | ) | ||||||||||||||
Non-controlling interests | 8,579 | 0 | 8,579 | 8,284 | 0 | 8,284 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Equity | 3,408,792 | 124,510 | 3,533,302 | 3,463,469 | 135,628 | 3,599,097 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Liabilities and Equity | $ | 8,821,586 | $ | 570,043 | $ | 9,391,629 | $ | 9,097,088 | $ | 597,232 | $ | 9,694,320 |
6
DDR Corp.
Income Statement: Unconsolidated Interests at 100%
$ in thousands | ||||||||||||||||
2Q16 | 2Q15 | 6M16 | 6M15 | |||||||||||||
Revenues: | ||||||||||||||||
Minimum rents | $ | 96,960 | $ | 98,437 | $ | 193,535 | $ | 202,174 | ||||||||
Percentage rent | 573 | 353 | 904 | 942 | ||||||||||||
Recoveries | 30,312 | 30,603 | 60,281 | 61,462 | ||||||||||||
Other property revenues | 1,045 | 3,673 | 2,080 | 6,088 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
128,890 | 133,066 | 256,800 | 270,666 | |||||||||||||
Expenses: | ||||||||||||||||
Operating and maintenance | 18,644 | 18,620 | 37,643 | 39,315 | ||||||||||||
Real estate taxes | 18,329 | 17,470 | 36,986 | 35,741 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
36,973 | 36,090 | 74,629 | 75,056 | |||||||||||||
Net operating income (4) | 91,917 | 96,976 | 182,171 | 195,610 | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (33,319 | ) | (33,593 | ) | (66,641 | ) | (74,496 | ) | ||||||||
Depreciation and amortization | (49,021 | ) | (51,482 | ) | (98,056 | ) | (108,219 | ) | ||||||||
Impairment charges | 0 | 0 | 0 | (448 | ) | |||||||||||
Preferred share expense | (8,305 | ) | (6,415 | ) | (16,569 | ) | (12,729 | ) | ||||||||
Other (expense) income, net | (6,319 | ) | (6,126 | ) | (12,130 | ) | (12,195 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
(5,047 | ) | (640 | ) | (11,225 | ) | (12,477 | ) | |||||||||
Gain (loss) on disposition of real estate, net | 114 | (1,358 | ) | 53,597 | (1,571 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net (loss) income attributable to unconsolidated JVs | (4,933 | ) | (1,998 | ) | 42,372 | (14,048 | ) | |||||||||
Depreciation and amortization | 49,021 | 51,482 | 98,056 | 108,219 | ||||||||||||
Impairment of depreciable real estate | 0 | 0 | 0 | 448 | ||||||||||||
(Gain) loss on disposition of depreciable real estate, net | (114 | ) | 1,358 | (53,597 | ) | 1,571 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
FFO | 43,974 | 50,842 | 86,831 | 96,190 | ||||||||||||
FFO at DDR’s ownership interests | 6,426 | 7,502 | 12,576 | 14,519 | ||||||||||||
Operating FFO at DDR’s ownership interests | $ | 6,446 | $ | 7,501 | $ | 12,596 | $ | 14,523 |
7
DDR Corp.
Balance Sheet: Unconsolidated Interests at 100%
$ in thousands | ||||||||
At Period End | ||||||||
2Q16 | 4Q15 | |||||||
Assets: | ||||||||
Land | $ | 1,306,704 | $ | 1,343,889 | ||||
Buildings | 3,449,494 | 3,551,227 | ||||||
Improvements | 192,647 | 191,581 | ||||||
|
|
|
| |||||
4,948,845 | 5,086,697 | |||||||
Depreciation | (840,227 | ) | (817,235 | ) | ||||
|
|
|
| |||||
4,108,618 | 4,269,462 | |||||||
Land held for development and construction in progress | 58,654 | 52,390 | ||||||
|
|
|
| |||||
Real estate, net | 4,167,272 | 4,321,852 | ||||||
Cash and restricted cash | 69,815 | 58,916 | ||||||
Receivables, net | 48,568 | 52,768 | ||||||
Other assets, net | 286,501 | 318,546 | ||||||
|
|
|
| |||||
Total Assets | 4,572,156 | 4,752,082 | ||||||
Liabilities and Equity: | ||||||||
Mortgage debt | 3,118,908 | 3,177,603 | ||||||
Notes and accrued interest payable to DDR | 2,555 | 1,556 | ||||||
Other liabilities | 223,109 | 219,799 | ||||||
|
|
|
| |||||
Total Liabilities | 3,344,572 | 3,398,958 | ||||||
Redeemable preferred equity | 400,203 | 395,156 | ||||||
Accumulated equity | 827,381 | 957,968 | ||||||
|
|
|
| |||||
Total Liabilities and Equity | $ | 4,572,156 | $ | 4,752,082 |
8
DDR Corp.
Financial Statements: Footnotes
$ in millions, except per share | ||||||||||||||||||
2Q16 | 2Q15 | 6M16 | 6M15 | |||||||||||||||
(1) | Minimum rents: | |||||||||||||||||
Straight-line rent, net | $ | 1.3 | $ | 0.7 | $ | 2.6 | $ | 2.1 | ||||||||||
Below-market rent, net | 1.1 | 0.9 | 1.4 | 1.2 | ||||||||||||||
Ground lease revenue | 10.2 | 9.3 | 20.3 | 18.4 | ||||||||||||||
(2) | Other property revenues: | |||||||||||||||||
Lease termination fees | 0.3 | 1.4 | 1.5 | 1.6 | ||||||||||||||
(3) | Operating expenses: | |||||||||||||||||
Recoverable expenses | (65.0 | ) | (67.0 | ) | (131.1 | ) | (137.2 | ) | ||||||||||
Non-recoverable expenses | (6.9 | ) | (6.8 | ) | (13.8 | ) | (13.0 | ) | ||||||||||
Straight-line ground rent expense | (0.2 | ) | (0.1 | ) | (0.3 | ) | (0.3 | ) | ||||||||||
Expensed costs of suspended developments | (0.1 | ) | (0.2 | ) | (0.2 | ) | (0.3 | ) | ||||||||||
(4) | Same Store NOI: | |||||||||||||||||
Consolidated NOI | 174.0 | 175.1 | ||||||||||||||||
Less: Non-controlling interests | (0.4 | ) | (0.4 | ) | ||||||||||||||
Unconsolidated NOI at DDR Share | 13.0 | 14.5 | ||||||||||||||||
|
|
|
| |||||||||||||||
186.6 | 189.2 | |||||||||||||||||
Less: Non-Same Store NOI | (14.2 | ) | (22.0 | ) | ||||||||||||||
|
|
|
| |||||||||||||||
Same Store NOI | 172.4 | 167.2 | ||||||||||||||||
% Increase at DDR share | 3.1 | % | ||||||||||||||||
(5) | Non-cash interest expense: | |||||||||||||||||
Debt fair value amortization | 1.6 | 4.5 | 3.1 | 9.8 | ||||||||||||||
Loan cost amortization | (2.1 | ) | (2.4 | ) | (4.3 | ) | (5.0 | ) | ||||||||||
Interest expense (capitalized) | 0.7 | 1.6 | 1.9 | 3.2 | ||||||||||||||
(6) | General and administrative expenses: | |||||||||||||||||
Executive separation charges | (0.0 | ) | (1.7 | ) | (0.0 | ) | (2.3 | ) | ||||||||||
Stock compensation expenses | (1.7 | ) | (1.5 | ) | (3.3 | ) | (3.6 | ) | ||||||||||
Internal leasing expenses | (2.0 | ) | (1.7 | ) | (4.1 | ) | (3.7 | ) | ||||||||||
Construction administrative costs (capitalized) | 1.9 | 2.2 | 3.9 | 4.6 | ||||||||||||||
(7) | Other income (expense): | |||||||||||||||||
Other income (primarily insurance recovery), net | 2.1 | (0.0 | ) | 3.9 | (0.2 | ) | ||||||||||||
Debt extinguishment, net | (0.0 | ) | 2.4 | (0.0 | ) | (0.9 | ) | |||||||||||
(8) | Impairment charges: | |||||||||||||||||
Assets marketed for sale | (0.0 | ) | (0.0 | ) | (0.0 | ) | (179.7 | ) | ||||||||||
Land previously held for development | (0.0 | ) | (0.0 | ) | (0.0 | ) | (99.3 | ) |
9
$ in millions, except per share | ||||||||||||||||||
2Q16 | 2Q15 | 6M16 | 6M15 | |||||||||||||||
(9) | Non-operating items excluded from Operating FFO: | |||||||||||||||||
Impairment charges – non-depreciable assets | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 99.3 | �� | |||||||||
Executive separation charges | 0.0 | 1.7 | 0.0 | 2.3 | ||||||||||||||
Transaction, debt extinguishment, litigation, other, net | 0.0 | (1.9 | ) | 0.0 | 1.5 | |||||||||||||
Loss (gain) on sale and change in control of interests, net | 0.0 | 6.5 | 0.0 | (7.8 | ) | |||||||||||||
Tax expense (primarily Puerto Rico restructuring), net | (0.3 | ) | 0.0 | (0.3 | ) | 4.4 | ||||||||||||
Loss on disposition of non-depreciable real estate, net | 2.4 | 0.1 | 2.1 | 0.6 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
2.1 | 6.4 | 1.8 | 100.3 | |||||||||||||||
(10) | Outstanding per share information: | |||||||||||||||||
Common shares (at quarter end) | 365.5 | 361.1 | 365.5 | 361.1 | ||||||||||||||
OP units (at quarter end) | 0.4 | 1.4 | 0.4 | 1.4 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Total shares and units (at quarter end) | 365.9 | 362.5 | 365.9 | 362.5 | ||||||||||||||
Weighted average shares and units – Basic – EPS | 365.0 | 360.1 | 364.9 | 359.9 | ||||||||||||||
Assumed conversion of dilutive securities | 0.3 | 4.1 | 0.3 | 0.0 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Weighted average shares and units – Diluted – EPS | 365.3 | 364.2 | 365.2 | 359.9 | ||||||||||||||
Weighted average shares and units – Basic – FFO & OFFO | 365.9 | 362.5 | 365.8 | 362.4 | ||||||||||||||
Assumed conversion of dilutive securities | 0.3 | 0.4 | 0.3 | 0.5 | ||||||||||||||
|
|
|
|
|
|
|
| |||||||||||
Weighted average shares and units – Diluted – FFO & OFFO | 366.2 | 362.9 | 366.1 | 362.9 | ||||||||||||||
Earnings per common share – Basic & Diluted | $ | 0.10 | $ | 0.03 | $ | 0.21 | $ | (0.66 | ) | |||||||||
FFO per share – Basic & Diluted | $ | 0.33 | $ | 0.29 | $ | 0.64 | $ | 0.33 | ||||||||||
Operating FFO per share – Diluted | $ | 0.33 | $ | 0.31 | $ | 0.65 | $ | 0.60 | ||||||||||
Common stock dividends declared, per share | $ | 0.19 | $ | 0.1725 | $ | 0.38 | $ | 0.345 | ||||||||||
(11) | Intangible assets, net(at quarter and year end) | 271.5 | 311.0 | |||||||||||||||
(12) | Below-market leases, net(at quarter and year end) | 152.2 | 155.3 | |||||||||||||||
Additional financial information: | ||||||||||||||||||
Capital expenditures(DDR share): | ||||||||||||||||||
Retenanting | $ | 7.9 | $ | 10.7 | $ | 16.3 | $ | 22.7 | ||||||||||
Maintenance – reimbursable and non reimbursable | 6.0 | 4.3 | 7.0 | 5.9 | ||||||||||||||
Maintenance PSF of owned GLA – non reimbursable | 0.04 | 0.04 | ||||||||||||||||
Miscellaneous(DDR share): | ||||||||||||||||||
Est. value of land owned adjacent to existing centers | $ | 26 | ||||||||||||||||
Cost basis of headquarters (non-income producing) | 40 |
10
DDR Corp.
Portfolio Summary
$, GLA in millions, except PSF | ||||||||||||||||||||||||||||
Wholly Owned At 100% | JV Portfolio | Total DDR Share | Total Portfolio At 100% | |||||||||||||||||||||||||
Portfolio Metrics | ||||||||||||||||||||||||||||
Operating Centers | 191 | 158 | 349 | 349 | ||||||||||||||||||||||||
Owned GLA | 46.9 | 4.0 | 50.9 | 74.2 | ||||||||||||||||||||||||
Ground Lease GLA | 4.7 | 0.3 | 5.0 | 6.9 | ||||||||||||||||||||||||
Additional Unowned | — | — | — | 31.4 | ||||||||||||||||||||||||
Base Rent PSF | $ | 14.95 | $ | 14.55 | $ | 14.92 | $ | 14.63 | ||||||||||||||||||||
Leased Rate | 96.2 | % | 94.9 | % | 96.1 | % | 95.7 | % | ||||||||||||||||||||
Commenced Rate | 94.5 | % | 93.8 | % | 94.4 | % | 94.1 | % | ||||||||||||||||||||
Same Store NOI | 3.1 | % | 3.9 | % | 3.1 | % | 2.7 | % | ||||||||||||||||||||
% of NOI (Pro Rata) | 92.8 | % | 7.2 | % | 100.0 | % | 100.0 | % | ||||||||||||||||||||
Same Store NOI at 100% (1) | Same Store NOI at DDR Share (1) | |||||||||||||||||||||||||||
2Q16 | 2Q15 | Change | 2Q16 | 2Q15 | Change | |||||||||||||||||||||||
Same Store Leased Rate | 95.8 | % | 95.6 | % | 0.2 | % | 96.3 | % | 96.0 | % | 0.3 | % | ||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||
Base Rents | $ | 251.4 | $ | 245.0 | 2.6 | % | $ | 175.0 | $ | 170.3 | 2.8 | % | ||||||||||||||||
Recoveries | 85.7 | 83.0 | 3.3 | % | 61.5 | 59.4 | 3.5 | % | ||||||||||||||||||||
Other | 4.3 | 4.1 | 6.3 | % | 3.5 | 3.2 | 9.2 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
341.4 | 332.1 | 2.8 | % | 240.0 | 232.9 | 3.1 | % | |||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||
Operating | (45.4 | ) | (44.4 | ) | 2.4 | % | (31.6 | ) | (30.9 | ) | 2.3 | % | ||||||||||||||||
Real Estate Taxes | (50.0 | ) | (48.1 | ) | 3.9 | % | (36.0 | ) | (34.8 | ) | 3.5 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
(95.4 | ) | (92.5 | ) | 3.2 | % | (67.6 | ) | (65.7 | ) | 2.9 | % | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Same Store NOI | $ | 246.0 | $ | 239.6 | 2.7 | % | $ | 172.4 | $ | 167.2 | 3.1 | % | ||||||||||||||||
Non-Same Store NOI | 19.9 | 32.5 | 14.2 | 22.0 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||
$ | 265.9 | $ | 272.1 | $ | 186.6 | $ | 189.2 |
(1) | Excludes major redevelopment activity; see Investments section for additional detail. See definition and reconciliation in Non-GAAP Measures section. |
11
DDR Corp.
Portfolio Detail (at 100% unless otherwise noted)
Lease Expiration Schedule | ||||||||||||||||||||||||||||||||||
Greater than 10,000 SF | Less than 10,000 SF | |||||||||||||||||||||||||||||||||
Year | Leases | ABR (mil) | Rent PSF | % of ABR | Leases | ABR (mil) | Rent PSF | % of ABR | ||||||||||||||||||||||||||
2016 | 31 | $ | 9.9 | $ | 9.50 | 1.0 | % | 320 | $ | 18.5 | $ | 25.21 | 1.8 | % | ||||||||||||||||||||
2017 | 192 | 69.2 | 10.71 | 6.9 | % | 869 | 53.8 | 23.70 | 5.4 | % | ||||||||||||||||||||||||
2018 | 225 | 79.0 | 11.65 | 7.9 | % | 917 | 65.1 | 24.45 | 6.5 | % | ||||||||||||||||||||||||
2019 | 219 | 86.7 | 11.91 | 8.7 | % | 698 | 46.7 | 24.40 | 4.7 | % | ||||||||||||||||||||||||
2020 | 187 | 72.6 | 12.28 | 7.3 | % | 693 | 45.5 | 24.05 | 4.5 | % | ||||||||||||||||||||||||
2021 | 252 | 98.5 | 11.19 | 9.8 | % | 558 | 40.9 | 24.15 | 4.1 | % | ||||||||||||||||||||||||
2022 | 139 | 54.3 | 11.46 | 5.4 | % | 242 | 20.8 | 24.68 | 2.1 | % | ||||||||||||||||||||||||
2023 | 109 | 40.5 | 11.30 | 4.0 | % | 181 | 17.2 | 24.38 | 1.7 | % | ||||||||||||||||||||||||
2024 | 102 | 36.5 | 11.71 | 3.6 | % | 207 | 20.0 | 24.40 | 2.0 | % | ||||||||||||||||||||||||
2025 | 73 | 25.8 | 13.90 | 2.6 | % | 174 | 16.0 | 24.75 | 1.6 | % | ||||||||||||||||||||||||
|
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|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
2016-2025 | 1,529 | $ | 573.0 | $ | 11.56 | 57.2 | % | 4,859 | $ | 344.5 | $ | 24.29 | 34.4 | % | ||||||||||||||||||||
Total Rent Roll | 1,648 | $ | 637.1 | $ | 11.82 | 63.6 | % | 5,146 | $ | 364.1 | $ | 24.31 | 36.4 | % |
Annual Metrics | Leased Rate Breakdown at DDR Share | |||||||||||||||||||||||||||
Period Ending | Centers | Leased Rate | ABR PSF | SF | Leased Rate | % of GLA | % of Vacancy | |||||||||||||||||||||
2Q 2016 | 349 | 95.7 | % | $ | 14.63 | < 5,000 | 87.9 | % | 14.0 | % | 43.8 | % | ||||||||||||||||
YE 2015 | 367 | 95.6 | % | 14.48 | 5,000-9,999 | 92.1 | % | 9.0 | % | 18.4 | % | |||||||||||||||||
YE 2014 | 415 | 95.7 | % | 13.91 | ³ 10,000 | 98.1 | % | 77.0 | % | 37.8 | % | |||||||||||||||||
YE 2013 | 406 | 95.0 | % | 13.35 |
|
|
|
|
|
| ||||||||||||||||||
YE 2012 | 444 | 94.1 | % | 12.77 | Total | 96.1 | % | 100.0 | % | 100.0 | % | |||||||||||||||||
YE 2011 | 422 | 93.3 | % | 12.54 | ||||||||||||||||||||||||
YE 2010 | 476 | 92.3 | % | 12.46 | Portfolio Concentration | |||||||||||||||||||||||
YE 2009 | 534 | 91.2 | % | 12.27 | ||||||||||||||||||||||||
YE 2008 | 611 | 92.6 | % | 12.34 | % of | % of | ||||||||||||||||||||||
YE 2007 | 619 | 95.8 | % | 12.22 | ABR | MSF | GLA | |||||||||||||||||||||
YE 2006 | 370 | 96.2 | % | 11.57 | Florida | 12.1 | % | 10.4 | 12.8 | % | ||||||||||||||||||
YE 2005 | 379 | 96.3 | % | 11.30 | Georgia | 9.5 | % | 8.7 | 10.8 | % | ||||||||||||||||||
YE 2004 | 373 | 95.4 | % | 11.13 | Puerto Rico | 7.6 | % | 4.8 | 5.9 | % | ||||||||||||||||||
YE 2003 | 274 | 95.1 | % | 10.82 | Ohio | 7.5 | % | 6.7 | 8.3 | % | ||||||||||||||||||
YE 2002 | 189 | 95.9 | % | 10.58 | N. Carolina | 6.2 | % | 4.7 | 5.8 | % | ||||||||||||||||||
YE 2001 | 192 | 95.4 | % | 10.03 | California | 4.7 | % | 3.5 | 4.3 | % | ||||||||||||||||||
YE 2000 | 190 | 96.9 | % | 9.66 | Illinois | 4.6 | % | 2.6 | 3.2 | % | ||||||||||||||||||
YE 1999 | 186 | 95.7 | % | 9.20 | New Jersey | 4.6 | % | 3.2 | 4.0 | % | ||||||||||||||||||
YE 1998 | 159 | 96.5 | % | 8.99 | Arizona | 4.2 | % | 2.9 | 3.6 | % | ||||||||||||||||||
YE 1997 | 123 | 96.1 | % | 8.49 | Texas | 4.2 | % | 3.2 | 3.9 | % | ||||||||||||||||||
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 |
12
DDR Corp.
Leasing Summary
Leases and GLA at 100%
All other figures at DDR share
Leasing Activity
New | Wtd Avg | Comparable Pool | ||||||||||||||||||||||||||||||
# of Leases | GLA (000) | Rent PSF | Rent Spread | Term (Years) | # of Leases | GLA (000) | ||||||||||||||||||||||||||
New Leases | ||||||||||||||||||||||||||||||||
1Q16 | 115 | 541 | $ | 19.53 | 19.5 | % | 8.3 | 59 | 272 | |||||||||||||||||||||||
2Q16 | 103 | 430 | 20.18 | 27.7 | % | 7.9 | 41 | 160 | ||||||||||||||||||||||||
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|
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|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
218 | 971 | $ | 19.78 | 22.5 | % | 8.1 | 100 | 432 | ||||||||||||||||||||||||
Renewals | ||||||||||||||||||||||||||||||||
1Q16 | 186 | 1,375 | $ | 16.01 | 8.7 | % | 4.9 | 186 | 1,375 | |||||||||||||||||||||||
2Q16 | 235 | 1,919 | 17.17 | 7.0 | % | 5.1 | 235 | 1,919 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||
421 | 3,294 | $ | 16.62 | 7.8 | % | 5.0 | 421 | 3,294 | ||||||||||||||||||||||||
New + Renewals | ||||||||||||||||||||||||||||||||
1Q16 | 301 | 1,916 | $ | 16.99 | 10.7 | % | 5.9 | 245 | 1,647 | |||||||||||||||||||||||
2Q16 | 338 | 2,349 | 17.70 | 9.1 | % | 5.6 | 276 | 2,079 | ||||||||||||||||||||||||
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639 | 4,265 | $ | 17.34 | 9.9 | % | 5.7 | 521 | 3,726 |
Net Effective Rents
GLA (1) (000) | Avg Rent PSF | Capex PSF | Net Effective Rent PSF | Wtd Avg Term (Years) | ||||||||||||||||||||||||
New Leases | ||||||||||||||||||||||||||||
1Q16 | 509 | $ | 20.06 | $ | 4.44 | $ | 15.62 | 8.3 | ||||||||||||||||||||
2Q16 | 422 | 20.91 | 4.45 | 16.46 | 7.8 | |||||||||||||||||||||||
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931 | $ | 20.40 | $ | 4.45 | $ | 15.95 | 8.1 | |||||||||||||||||||||
Renewals | ||||||||||||||||||||||||||||
1Q16 | 1,375 | $ | 16.26 | $ | 0.38 | $ | 15.88 | 4.9 | ||||||||||||||||||||
2Q16 | 1,919 | 17.33 | 0.05 | 17.28 | 5.1 | |||||||||||||||||||||||
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3,294 | $ | 16.82 | $ | 0.21 | $ | 16.61 | 5.0 |
(1) | New Leases GLA excludes development and redevelopment activity. |
13
DDR Corp.
Top 50 Tenants
$, GLA in millions | ||||||||||||||||||||||||||||||||||||
# of Units | Base Rent | Owned 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) | 110 | 111 | $ | 37.7 | 3.5 | % | $ | 26.2 | 3.4 | 4.2 | % | 2.3 | A+ / A2 / NR | ||||||||||||||||||||||
2 | Bed Bath & Beyond (2) | 91 | 92 | 32.6 | 3.0 | % | 23.6 | 2.6 | 3.2 | % | 1.8 | BBB+ / Baa1 / NR | ||||||||||||||||||||||||
3 | PetSmart | 96 | 97 | 30.8 | 2.9 | % | 20.8 | 2.0 | 2.5 | % | 1.4 | B+ / B1 / NR | ||||||||||||||||||||||||
4 | Walmart (3) | 27 | 71 | 25.7 | 2.4 | % | 22.6 | 4.0 | 4.9 | % | 3.6 | AA / Aa2 / AA | ||||||||||||||||||||||||
5 | Dick’s Sporting Goods (4) | 41 | 42 | 24.9 | 2.3 | % | 15.0 | 2.0 | 2.5 | % | 1.2 | NR | ||||||||||||||||||||||||
6 | Best Buy | 40 | 46 | 23.4 | 2.2 | % | 16.1 | 1.5 | 1.8 | % | 1.1 | BB+ / Baa1 / BBB- | ||||||||||||||||||||||||
7 | Ross Stores (5) | 75 | 75 | 23.3 | 2.2 | % | 15.1 | 2.2 | 2.7 | % | 1.3 | A- / A3 / NR | ||||||||||||||||||||||||
8 | Kohl’s | 34 | 48 | 22.6 | 2.1 | % | 16.8 | 3.0 | 3.7 | % | 2.2 | BBB / Baa2 / BBB | ||||||||||||||||||||||||
9 | AMC Theatres | 11 | 12 | 21.0 | 2.0 | % | 15.6 | 0.9 | 1.1 | % | 0.6 | B+ / NR / B+ | ||||||||||||||||||||||||
10 | Michaels | 68 | 71 | 20.0 | 1.9 | % | 14.0 | 1.6 | 2.0 | % | 1.1 | B+ / Ba3 / NR | ||||||||||||||||||||||||
11 | Gap (6) | 67 | 67 | 16.8 | 1.6 | % | 12.2 | 1.1 | 1.4 | % | 0.7 | BB+ / Baa2 / BB+ | ||||||||||||||||||||||||
12 | Ulta | 61 | 63 | 14.7 | 1.4 | % | 10.3 | 0.7 | 0.9 | % | 0.5 | NR | ||||||||||||||||||||||||
13 | Office Depot (7) | 47 | 50 | 14.4 | 1.3 | % | 10.2 | 1.0 | 1.2 | % | 0.7 | B- / B1 / NR | ||||||||||||||||||||||||
14 | Publix | 34 | 36 | 14.4 | 1.3 | % | 3.5 | 1.6 | 2.0 | % | 0.4 | NR | ||||||||||||||||||||||||
15 | Ascena (8) | 108 | 108 | 12.2 | 1.1 | % | 9.5 | 0.6 | 0.7 | % | 0.5 | BB- / Ba2 / NR | ||||||||||||||||||||||||
16 | Barnes & Noble | 26 | 28 | 11.8 | 1.1 | % | 8.7 | 0.6 | 0.7 | % | 0.5 | NR | ||||||||||||||||||||||||
17 | Jo-Ann | 33 | 33 | 10.5 | 1.0 | % | 8.0 | 1.0 | 1.2 | % | 0.7 | B / B3 / NR | ||||||||||||||||||||||||
18 | Toys “R” Us (9) | 26 | 29 | 10.1 | 0.9 | % | 9.1 | 1.1 | 1.4 | % | 0.9 | B- / B3 / CCC | ||||||||||||||||||||||||
19 | Staples | 33 | 34 | 9.8 | 0.9 | % | 6.0 | 0.7 | 0.9 | % | 0.4 | BBB- / Baa2 / BB+ | ||||||||||||||||||||||||
20 | Lowe’s | 11 | 30 | 9.4 | 0.9 | % | 8.7 | 1.4 | 1.7 | % | 1.3 | A- / A3 / NR | ||||||||||||||||||||||||
21 | Kroger (10) | 19 | 23 | 9.2 | 0.9 | % | 4.8 | 1.1 | 1.4 | % | 0.6 | BBB / Baa1 / BBB | ||||||||||||||||||||||||
22 | Regal Cinemas | 9 | 10 | 9.1 | 0.8 | % | 7.0 | 0.5 | 0.6 | % | 0.5 | B+ / B1 / B+ | ||||||||||||||||||||||||
23 | Royal Ahold (11) | 10 | 10 | 9.1 | 0.8 | % | 3.0 | 0.6 | 0.7 | % | 0.2 | BBB / Baa2 / BBB | ||||||||||||||||||||||||
24 | Dollar Tree Stores | 76 | 79 | 9.0 | 0.8 | % | 6.2 | 0.8 | 1.0 | % | 0.5 | BB+ / Ba2 / NR | ||||||||||||||||||||||||
25 | Cinemark | 10 | 10 | 8.9 | 0.8 | % | 7.1 | 0.6 | 0.7 | % | 0.5 | BB / NR / NR | ||||||||||||||||||||||||
26 | Nordstrom Rack | 13 | 14 | 8.7 | 0.8 | % | 6.8 | 0.5 | 0.6 | % | 0.4 | BBB+ / Baa1 / BBB+ | ||||||||||||||||||||||||
27 | Petco | 33 | 35 | 8.6 | 0.8 | % | 6.5 | 0.5 | 0.6 | % | 0.3 | B / B2 / NR | ||||||||||||||||||||||||
28 | DSW | 26 | 27 | 8.5 | 0.8 | % | 5.7 | 0.6 | 0.7 | % | 0.4 | NR | ||||||||||||||||||||||||
29 | Party City | 42 | 42 | 8.4 | 0.8 | % | 5.8 | 0.5 | 0.6 | % | 0.4 | NR | ||||||||||||||||||||||||
30 | Mattress Firm (12) | 65 | 66 | 8.2 | 0.8 | % | 6.3 | 0.3 | 0.4 | % | 0.2 | B+ / NR / NR | ||||||||||||||||||||||||
31 | LA Fitness | 12 | 13 | 7.9 | 0.7 | % | 5.7 | 0.5 | 0.6 | % | 0.4 | NR | ||||||||||||||||||||||||
32 | Pier 1 Imports | 35 | 39 | 7.8 | 0.7 | % | 5.8 | 0.4 | 0.5 | % | 0.3 | B+ / NR / NR | ||||||||||||||||||||||||
33 | Home Depot | 10 | 38 | 7.8 | 0.7 | % | 6.3 | 1.1 | 1.4 | % | 0.8 | A / A2 / A | ||||||||||||||||||||||||
34 | Hobby Lobby | 18 | 20 | 7.6 | 0.7 | % | 4.4 | 1.0 | 1.2 | % | 0.6 | NR | ||||||||||||||||||||||||
35 | Five Below | 54 | 54 | 7.4 | 0.7 | % | 5.6 | 0.5 | 0.6 | % | 0.3 | NR | ||||||||||||||||||||||||
36 | Sports Authority | 11 | 12 | 6.6 | 0.6 | % | 6.6 | 0.5 | 0.6 | % | 0.5 | NR | ||||||||||||||||||||||||
37 | Whole Foods | 6 | 6 | 6.4 | 0.6 | % | 4.7 | 0.3 | 0.4 | % | 0.2 | BBB- / Baa3 / NR | ||||||||||||||||||||||||
38 | hhgregg | 18 | 19 | 6.3 | 0.6 | % | 4.4 | 0.6 | 0.7 | % | 0.4 | NR | ||||||||||||||||||||||||
39 | AT&T | 68 | 70 | 6.2 | 0.6 | % | 4.8 | 0.2 | 0.2 | % | 0.1 | BBB+ / Baa1 / A- | ||||||||||||||||||||||||
40 | Giant Eagle | 6 | 7 | 6.0 | 0.6 | % | 3.3 | 0.5 | 0.6 | % | 0.3 | NR | ||||||||||||||||||||||||
41 | Famous Footwear | 40 | 40 | 5.8 | 0.5 | % | 4.5 | 0.3 | 0.4 | % | 0.2 | BB / Ba3 / NR | ||||||||||||||||||||||||
42 | Burlington | 10 | 10 | 5.7 | 0.5 | % | 4.1 | 0.7 | 0.9 | % | 0.5 | BB- / NR / NR | ||||||||||||||||||||||||
43 | Beall’s | 22 | 22 | 5.5 | 0.5 | % | 2.3 | 0.8 | 1.0 | % | 0.4 | NR | ||||||||||||||||||||||||
44 | BJ’s Wholesale Club | 5 | 6 | 5.4 | 0.5 | % | 4.1 | 0.5 | 0.6 | % | 0.4 | B- / B3 / NR | ||||||||||||||||||||||||
45 | Panera | 39 | 40 | 5.4 | 0.5 | % | 3.7 | 0.2 | 0.2 | % | 0.1 | NR | ||||||||||||||||||||||||
46 | Stein Mart | 17 | 17 | 5.1 | 0.5 | % | 3.0 | 0.6 | 0.7 | % | 0.3 | NR | ||||||||||||||||||||||||
47 | Shoe Carnival | 31 | 31 | 4.9 | 0.5 | % | 3.1 | 0.3 | 0.4 | % | 0.2 | NR | ||||||||||||||||||||||||
48 | 24 Hour Fitness | 6 | 6 | 4.7 | 0.4 | % | 2.1 | 0.2 | 0.2 | % | 0.1 | B / NR / NR | ||||||||||||||||||||||||
49 | Gamestop | 95 | 95 | 4.6 | 0.4 | % | 3.4 | 0.2 | 0.2 | % | 0.1 | BB+ / Ba1 / NR | ||||||||||||||||||||||||
50 | Tailored Brands (13) | 32 | 32 | 4.6 | 0.4 | % | 3.3 | 0.2 | 0.2 | % | 0.1 | B / Ba3 / NR | ||||||||||||||||||||||||
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Top 50 Total | 1,877 | 2,036 | $ | 595.5 | 55.6 | % | $ | 416.4 | 48.6 | 59.9 | % | 33.5 | ||||||||||||||||||||||||
Total Portfolio | $ | 1,071.2 | 100.0 | % | $ | 750.9 | 81.1 | 100.0 | % | 55.9 |
(1) | T.J. Maxx (45) / Marshalls (44) / HomeGoods (20) / Sierra Trading (1) |
(2) | Bed Bath (55) / World Market (21) / buybuy Baby (12) / CTS (3) |
(3) | Walmart (22) / Sam’s Club (3) / Neighborhood Market (2) |
(4) | Dick’s Sporting Goods (39) / Golf Galaxy (1) / Field & Stream (1) |
(5) | Ross Dress for Less (72) / dd’s Discounts (3) |
(6) | Gap (7) / Old Navy (57) / Banana Republic (3) |
(7) | Office Depot (18) / OfficeMax (29) |
(8) | Ann Taylor (3) / Catherine’s (8) / Dress Barn (30) / Justice (22) / Lane Bryant (27) / Maurice’s (18) |
(9) | Toys “R” Us (7) / Babies “R” Us (14) / Toys-Babies Combo (5) |
(10) | Kroger (11) / Harris Teeter (5) / King Soopers (1) / Pick ‘n Save (2) |
(11) | Stop & Shop (5) / Martin’s (3) / Others (2) |
(12) | Mattress Firm (43) / Sleepy’s (20) / Mattress Pro (1) / Sleep Train (1) |
(13) | Men’s Wearhouse (20) / Jos. A. Bank (10) / K&G Fashion Superstore (2) |
14
DDR Corp.
Top 50 Assets
$, GLA in thousands | ||||||||||||||||||||||||
DDR | Base Rent | Total GLA | ||||||||||||||||||||||
Asset | MSA | Own% | Pro Rata | % of Pro Rata | Pro Rata | % of Pro Rata | ||||||||||||||||||
1 | Shoppers World | Boston | 100 | % | $ | 17,588 | 2.3 | % | 784 | 0.9 | % | |||||||||||||
2 | Plaza del Sol | San Juan | 100 | % | 16,573 | 2.2 | % | 724 | 0.8 | % | ||||||||||||||
3 | Winter Garden Village | Orlando | 100 | % | 13,797 | 1.8 | % | 1,127 | 1.3 | % | ||||||||||||||
4 | Plaza Rio Hondo | San Juan | 100 | % | 13,471 | 1.8 | % | 555 | 0.6 | % | ||||||||||||||
5 | Plaza del Norte | San Juan | 100 | % | 12,216 | 1.6 | % | 699 | 0.8 | % | ||||||||||||||
6 | Wrangleboro Consumer Square | Atlantic City | 100 | % | 10,402 | 1.4 | % | 842 | 1.0 | % | ||||||||||||||
7 | Riverdale Village | Minneapolis | 100 | % | 10,321 | 1.4 | % | 969 | 1.1 | % | ||||||||||||||
8 | Ahwatukee Foothills | Phoenix | 100 | % | 10,192 | 1.4 | % | 693 | 0.8 | % | ||||||||||||||
9 | Nassau Park Pavilion | Trenton | 100 | % | 9,622 | 1.3 | % | 1,106 | 1.3 | % | ||||||||||||||
10 | Tucson Spectrum | Tucson | 100 | % | 9,476 | 1.3 | % | 969 | 1.1 | % | ||||||||||||||
11 | Hamilton Marketplace | Trenton | 100 | % | 9,450 | 1.3 | % | 960 | 1.1 | % | ||||||||||||||
12 | Woodfield Village Green | Chicago | 100 | % | 9,100 | 1.2 | % | 692 | 0.8 | % | ||||||||||||||
13 | Carolina Pavilion | Charlotte | 100 | % | 8,843 | 1.2 | % | 871 | 1.0 | % | ||||||||||||||
14 | The Shops at Midtown Miami | Miami | 100 | % | 8,482 | 1.1 | % | 467 | 0.5 | % | ||||||||||||||
15 | Plaza Escorial | San Juan | 100 | % | 8,463 | 1.1 | % | 636 | 0.7 | % | ||||||||||||||
16 | Great Northern Plaza | Cleveland | 100 | % | 8,293 | 1.1 | % | 669 | 0.8 | % | ||||||||||||||
17 | Village at Stone Oak | San Antonio | 100 | % | 8,237 | 1.1 | % | 622 | 0.7 | % | ||||||||||||||
18 | Plaza Palma Real | San Juan | 100 | % | 7,835 | 1.0 | % | 449 | 0.5 | % | ||||||||||||||
19 | Polaris Towne Center | Columbus | 100 | % | 7,424 | 1.0 | % | 725 | 0.8 | % | ||||||||||||||
20 | Connecticut Commons | Hartford | 100 | % | 7,169 | 1.0 | % | 562 | 0.6 | % | ||||||||||||||
21 | Centennial Promenade | Denver | 100 | % | 7,113 | 0.9 | % | 827 | 0.9 | % | ||||||||||||||
22 | Peach Street Marketplace | Erie | 100 | % | 6,924 | 0.9 | % | 995 | 1.1 | % | ||||||||||||||
23 | Easton Market | Columbus | 100 | % | 6,472 | 0.9 | % | 559 | 0.6 | % | ||||||||||||||
24 | Crossroads Center | Gulfport | 100 | % | 6,313 | 0.8 | % | 591 | 0.7 | % | ||||||||||||||
25 | Hamilton Commons | Atlantic City | 100 | % | 6,246 | 0.8 | % | 397 | 0.5 | % | ||||||||||||||
26 | Belden Park Crossings | Cleveland | 100 | % | 6,045 | 0.8 | % | 596 | 0.7 | % | ||||||||||||||
27 | Silver Springs Square | Harrisburg | 100 | % | 5,944 | 0.8 | % | 569 | 0.7 | % | ||||||||||||||
28 | Falcon Ridge Town Center | Los Angeles | 100 | % | 5,847 | 0.8 | % | 447 | 0.5 | % | ||||||||||||||
29 | Aspen Grove | Denver | 100 | % | 5,837 | 0.8 | % | 267 | 0.3 | % | ||||||||||||||
30 | The Fountains | Miami | 100 | % | 5,724 | 0.8 | % | 489 | 0.6 | % | ||||||||||||||
31 | The Maxwell | Chicago | 100 | % | 5,683 | 0.8 | % | 240 | 0.3 | % | ||||||||||||||
32 | Cotswold Village | Charlotte | 100 | % | 5,649 | 0.8 | % | 261 | 0.3 | % | ||||||||||||||
33 | Ridge at Creekside | Sacramento | 100 | % | 5,632 | 0.8 | % | 289 | 0.3 | % | ||||||||||||||
34 | Bandera Pointe | San Antonio | 100 | % | 5,553 | 0.7 | % | 851 | 1.0 | % | ||||||||||||||
35 | Sycamore Crossing | Cincinnati | 100 | % | 5,524 | 0.7 | % | 466 | 0.5 | % | ||||||||||||||
36 | Merriam Village | Kansas City | 100 | % | 5,502 | 0.7 | % | 921 | 1.1 | % | ||||||||||||||
37 | Perimeter Pointe | Atlanta | 100 | % | 5,499 | 0.7 | % | 353 | 0.4 | % | ||||||||||||||
38 | Big Flats Consumer Square | Elmira | 100 | % | 5,488 | 0.7 | % | 577 | 0.7 | % | ||||||||||||||
39 | Independence Commons | Kansas City | 100 | % | 5,397 | 0.7 | % | 403 | 0.5 | % | ||||||||||||||
40 | Meridian Crossroads | Boise | 100 | % | 5,393 | 0.7 | % | 732 | 0.8 | % | ||||||||||||||
41 | Mohawk Commons | Albany | 100 | % | 5,196 | 0.7 | % | 530 | 0.6 | % | ||||||||||||||
42 | Beaver Creek Crossings | Raleigh | 100 | % | 5,116 | 0.7 | % | 321 | 0.4 | % | ||||||||||||||
43 | Homestead Pavilion | Miami | 100 | % | 5,067 | 0.7 | % | 397 | 0.5 | % | ||||||||||||||
44 | Arrowhead Crossing | Phoenix | 100 | % | 5,051 | 0.7 | % | 407 | 0.5 | % | ||||||||||||||
45 | Deer Park Town Center | Chicago | 50 | % | 4,996 | 0.7 | % | 202 | 0.2 | % | ||||||||||||||
46 | Willowbrook Plaza | Houston | 100 | % | 4,991 | 0.7 | % | 393 | 0.4 | % | ||||||||||||||
47 | Chapel Hills | Colorado Springs | 100 | % | 4,988 | 0.7 | % | 541 | 0.6 | % | ||||||||||||||
48 | The Promenade at Brentwood | St. Louis | 100 | % | 4,959 | 0.7 | % | 338 | 0.4 | % | ||||||||||||||
49 | Fairfax Towne Center | Balt-Wash DC | 100 | % | 4,891 | 0.7 | % | 253 | 0.3 | % | ||||||||||||||
50 | Gateway Center | Boston | 100 | % | 4,803 | 0.6 | % | 640 | 0.7 | % | ||||||||||||||
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Top 50 Total | $ | 374,797 | 49.9 | % | 29,973 | 34.3 | % | |||||||||||||||||
Total Portfolio | $ | 750,923 | 100.0 | % | 87,378 | 100.0 | % |
15
DDR Corp.
Unconsolidated Joint Ventures
$, GLA in millions | ||||||||||||||||||||||||||||
Partner | DDR Own % | Operating Properties | Owned GLA | ABR | Gross Book Value | Debt (1) | ||||||||||||||||||||||
BRE DDR Retail Holdings | Blackstone Real Estate Partners | 5 | % (2) | 62 | 11.3 | $ | 149.7 | $ | 1,788.3 | $ | 1,232.3 | |||||||||||||||||
DDRTC Core Retail Fund | TIAA-CREF | 15 | % | 25 | 8.2 | 105.6 | 1,530.4 | 791.5 | ||||||||||||||||||||
DDR Domestic Retail Fund I | Various | 20 | % | 55 | 7.6 | 87.3 | 1,306.7 | 898.2 | ||||||||||||||||||||
DDR-SAU Retail Fund | State of Utah | 20 | % | 12 | 1.0 | 10.9 | 134.5 | 61.0 | ||||||||||||||||||||
Other | Various | Various | 3 | 1.0 | 18.8 | 195.0 | 117.6 | |||||||||||||||||||||
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Total | 157 | 29.1 | $ | 372.3 | $ | 4,954.9 | $ | 3,100.6 |
(1) | Includes fair market value of debt adjustment and unamortized loan costs, net of $9.5 million, $0.1 million at DDR’s share. |
(2) | In addition to DDR’s 5% common equity, DDR has $391.9 million of Preferred Equity plus $8.3 million of accrued interest with an interest rate of 8.5%. |
16
DDR Corp.
Transactions
$ in millions, GLA in thousands | ||||||||||||||||||||||||||||
Total | At 100% | At DDR Share | ||||||||||||||||||||||||||
DDR | Owned | |||||||||||||||||||||||||||
Own% | GLA | Price | Debt | Price | Debt | Anchors | ||||||||||||||||||||||
Acquisitions | ||||||||||||||||||||||||||||
02/16 | Phoenix, AZ | 100 | % | 233 | $ | 60.5 | $ | 0.0 | $ | 60.5 | $ | 0.0 | Ross, Ulta, Total Wine & More | |||||||||||||||
Dispositions | ||||||||||||||||||||||||||||
01/16 | SAU Portfolio (11 assets) | 20 | % | 1,083 | 170.5 | 77.3 | 34.1 | 15.5 | Various | |||||||||||||||||||
01/16 | Buffalo, NY | 100 | % | 139 | 13.8 | 0.0 | 13.8 | 0.0 | Home Depot | |||||||||||||||||||
01/16 | Lexington, SC | 100 | % | 83 | 12.2 | 0.0 | 12.2 | 0.0 | Ross, T.J. Maxx | |||||||||||||||||||
01/16 | Pasadena, CA | 100 | % | 540 | 131.9 | 0.0 | 131.9 | 0.0 | Arclight Cinemas, Hyatt, West Elm, DSW | |||||||||||||||||||
02/16 | Brunswick, ME | 100 | % | 305 | 13.2 | 0.0 | 13.2 | 0.0 | Big Lots, Regal, Sears | |||||||||||||||||||
02/16 | Newport News, VA | 100 | % | 341 | 10.7 | 0.0 | 10.7 | 0.0 | Burlington | |||||||||||||||||||
1Q | Non-operating sales | 7.6 | 0.0 | 7.6 | 0.0 | |||||||||||||||||||||||
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1Q Total | 2,491 | $ | 359.9 | $ | 77.3 | $ | 223.5 | $ | 15.5 | |||||||||||||||||||
04/16 | Fort Collins, CO | 100 | % | 19 | 6.7 | 0.0 | 6.7 | 0.0 | ||||||||||||||||||||
05/16 | St. Louis, MO | 100 | % | 88 | 14.9 | 0.0 | 14.9 | 0.0 | OfficeMax | |||||||||||||||||||
06/16 | N. Little Rock, AR | 100 | % | 290 | 23.2 | 0.0 | 23.2 | 0.0 | Bed Bath & Beyond, Burlington, Michaels, Ross, T.J. Maxx | |||||||||||||||||||
2Q | Non-operating sales | 13.3 | 0.0 | 13.3 | 0.0 | |||||||||||||||||||||||
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2Q Total | 397 | $ | 58.1 | $ | 0.0 | $ | 58.1 | $ | 0.0 | |||||||||||||||||||
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Total Year to Date | 2,888 | $ | 418.0 | $ | 77.3 | $ | 281.6 | $ | 15.5 | |||||||||||||||||||
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17
DDR Corp.
Developments/Redevelopments
$ in millions, GLA in thousands | ||||||||||||||||||||||||||||||||||
Owned SF | Est. Total Net Cost | Cost Incurred To Date | Est. Remain Costs | Placed In Service | CIP (a) | Est. Anchor Opening | Est. Stabilized Quarter | Key Tenants | ||||||||||||||||||||||||||
Consolidated Summary | ||||||||||||||||||||||||||||||||||
Developments in Progress |
| $ | 69 | $ | 67 | $ | 2 | $ | 48 | $ | 19 | |||||||||||||||||||||||
Redevelopments - Major |
| 240 | 129 | 111 | 63 | 66 | ||||||||||||||||||||||||||||
Redevelopments - Minor |
| 158 | 67 | 91 | 38 | 29 | ||||||||||||||||||||||||||||
Retenanting | 29 | 9 | 20 | 5 | 4 | |||||||||||||||||||||||||||||
Undeveloped Land (b) | N/A | 44 | 0 | 0 | 44 | |||||||||||||||||||||||||||||
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$ | 496 | $ | 316 | $ | 224 | $ | 154 | $ | 162 | |||||||||||||||||||||||||
Developments in Progress | ||||||||||||||||||||||||||||||||||
Guilford Commons | 130 | $ | 69 | $ | 67 | $ | 2 | $ | 48 | $ | 19 | 4Q15 | 4Q16 | Michaels, Ulta, Bed Bath & Beyond, DSW | ||||||||||||||||||||
Redevelopments - Major | ||||||||||||||||||||||||||||||||||
The Pike Outlets | $ | 66 | $ | 52 | $ | 14 | $ | 51 | $ | 1 | N/A | 3Q15 | Restoration Hardware, H&M, Nike, Gap Factory | |||||||||||||||||||||
Sycamore Crossing | 30 | 14 | 16 | 3 | 11 | N/A | 2Q17 | Dick’s Sporting Goods, T.J. Maxx | ||||||||||||||||||||||||||
Belgate (expansion) | 23 | 15 | 8 | 0 | 15 | N/A | 4Q17 | Burlington, T.J. Maxx | ||||||||||||||||||||||||||
Bermuda Square | 18 | 13 | 5 | 9 | 4 | N/A | 4Q17 | Martin’s, Petco | ||||||||||||||||||||||||||
Plaza del Sol (expansion) | 12 | 2 | 10 | 0 | 2 | N/A | 4Q17 | Dave & Busters | ||||||||||||||||||||||||||
Other Redevelopments - | 91 | 33 | 58 | 0 | 33 | |||||||||||||||||||||||||||||
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$ | 240 | $ | 129 | $ | 111 | $ | 63 | $ | 66 |
(a) | This balance is in addition to DDR’s pro rata share of joint venture CIP of $7 million. |
(b) | This balance is in addition to owned land adjacent to existing centers that has an estimated value of $26 million. |
18
DDR Corp.
Capital Structure
$, shares and units in millions, except per share | ||||||||||||||||
June 30, 2016 | June 30, 2015 | |||||||||||||||
Amount | % of Total | Amount | % of Total | |||||||||||||
Capital Structure | ||||||||||||||||
Common Shares Equity | $ | 6,637.4 | 56 | % | $ | 5,605.0 | 50 | % | ||||||||
Perpetual Preferred Stock | 350.0 | 3 | % | 350.0 | 3 | % | ||||||||||
Unsecured Credit Facilities | 265.0 | 2 | % | 241.5 | 2 | % | ||||||||||
Unsecured Term Loan | 400.0 | 3 | % | 300.0 | 3 | % | ||||||||||
Unsecured Public Debt | 2,926.7 | 24 | % | 3,119.5 | 28 | % | ||||||||||
Secured Term Loan | 200.0 | 2 | % | 200.0 | 2 | % | ||||||||||
Fixed Rate Mortgage Debt | 1,081.2 | 9 | % | 1,287.2 | 11 | % | ||||||||||
Variable Rate Mortgage Debt | 77.3 | 1 | % | 98.6 | 1 | % | ||||||||||
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4,950.2 | 41 | % | 5,246.8 | 47 | % | |||||||||||
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Total | $ | 11,937.6 | 100 | % | $ | 11,201.8 | 100 | % | ||||||||
Capital Structure Detail | ||||||||||||||||
Debt to Market Capitalization | 41.5 | % | 46.8 | % | ||||||||||||
Common Shares Outstanding | 365.5 | 361.1 | ||||||||||||||
Operating Partnership Units | 0.4 | 1.4 | ||||||||||||||
Market Value per Share | $ | 18.14 | $ | 15.46 | ||||||||||||
Accretion on Convertible Notes (excluded above) | $ | 0.0 | $ | 4.0 | ||||||||||||
Partners’ Share of Consolidated Debt (included above) | $ | 9.9 | $ | 9.9 | ||||||||||||
DDR Share of Unconsolidated Debt (excluded above) | $ | 425.3 | $ | 452.1 |
Credit Ratings |
| Covenants | ||||||||||||||
Covenant Threshold | Actual Covenant | |||||||||||||||
Debt Rating | Outlook | |||||||||||||||
Moody’s | Baa2 | Stable | Total Debt to Real Estate Assets Ratio | £ 65 | % | 48 | % | |||||||||
S&P | BBB- | Stable | Secured Debt to Assets Ratio | £ 40 | % | 12 | % | |||||||||
Fitch | BBB- | Stable | Unencumbered Assets to Unsecured Debt | ³ 135 | % | 204 | % | |||||||||
Fixed Charge Coverage Ratio | ³ 1.5x | 2.5x |
19
DDR Corp.
Debt/EBITDA
$ in millions | ||||||||
2Q16 | 2Q15 | |||||||
Consolidated | ||||||||
Net income to DDR | $ | 41.1 | $ | 18.6 | ||||
Depreciation and amortization | 97.7 | 99.3 | ||||||
Interest expense | 54.0 | 61.3 | ||||||
Loss on sale and change in control of interests, net | 0.0 | 6.5 | ||||||
Other income, net | 0.0 | (0.2 | ) | |||||
Equity in net income of JVs | (1.1 | ) | (1.6 | ) | ||||
Income tax expense | 0.2 | 0.6 | ||||||
Gain on disposition of real estate, net | (13.7 | ) | (11.3 | ) | ||||
Adjustments for non-controlling interests | (0.2 | ) | (0.2 | ) | ||||
JV FFO (at DDR share) | 6.4 | 7.5 | ||||||
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EBITDA – current quarter (1) | 184.4 | 180.5 | ||||||
EBITDA – annualized | 737.6 | 722.0 | ||||||
Consolidated debt | 4,938.8 | 5,236.6 | ||||||
Partner share of consolidated debt | (9.9 | ) | (9.9 | ) | ||||
Loan costs, net | 21.1 | 23.6 | ||||||
Face value adjustments | (9.7 | ) | (13.5 | ) | ||||
Cash and restricted cash | (26.8 | ) | (36.3 | ) | ||||
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Net effective debt | $ | 4,913.5 | $ | 5,200.5 | ||||
Debt/EBITDA – Consolidated | 6.66x | 7.20x | ||||||
Pro rata including JVs | ||||||||
EBITDA – current quarter | 189.9 | 186.2 | ||||||
EBITDA – annualized | 759.6 | 744.8 | ||||||
Consolidated net debt | 4,913.5 | 5,200.5 | ||||||
JV debt (at DDR share) | 425.3 | 451.2 | ||||||
Cash and restricted cash | (9.7 | ) | (10.2 | ) | ||||
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Net effective debt | $ | 5,329.1 | $ | 5,641.5 | ||||
Debt/EBITDA – Pro rata | 7.02x | 7.57x |
(1) | See definition in Non-GAAP Measures section. |
20
DDR Corp.
Debt Summary
$ in millions | ||||||||||||||||||||||||||
Consolidated | Unconsolidated | |||||||||||||||||||||||||
Total 100% | Total DDR Share | Interest Rate DDR Share | Total 100% | Total DDR Share | Interest Rate DDR Share | |||||||||||||||||||||
Debt Composition | ||||||||||||||||||||||||||
Unsecured Credit Facilities | $ | 265.0 | $ | 265.0 | 1.47 | % | ||||||||||||||||||||
Unsecured Term Loan | 400.0 | 400.0 | 1.57 | % | ||||||||||||||||||||||
Unsecured Public Debt | 2,926.7 | 2,926.7 | 4.88 | % | ||||||||||||||||||||||
Secured Term Loan | 200.0 | 200.0 | 1.82 | % | ||||||||||||||||||||||
Fixed Rate Mortgage Loans | 1,081.2 | 1,071.3 | 4.99 | % | $ | 2,053.5 | $ | 336.4 | 5.38 | % | ||||||||||||||||
Variable Rate Mortgage Loans | 77.3 | 77.3 | 1.87 | % | 1,055.9 | 88.9 | 2.19 | % | ||||||||||||||||||
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Subtotal | 4,950.2 | 4,940.3 | 4.28 | % | 3,109.4 | 425.3 | 4.71 | % | ||||||||||||||||||
Fair Market Value Adjustment | 9.7 | 9.7 | 17.8 | 0.9 | ||||||||||||||||||||||
Unamortized Loan Costs, Net | (21.1 | ) | (21.0 | ) | (8.3 | ) | (1.0 | ) | ||||||||||||||||||
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Total | $ | 4,938.8 | $ | 4,929.0 | 4.28 | % | $ | 3,118.9 | $ | 425.2 | 4.71 | % |
Scheduled Principal Payments | Secured Debt Maturities | Unsecured Debt Maturities | Total 100% | Total Pro Rata | Cash Interest Rate Pro Rata | GAAP Interest Rate Pro Rata | ||||||||||||||||||||||
Consolidated Maturity Schedule (1) | ||||||||||||||||||||||||||||
2016 | $ | 16.1 | $ | 112.2 | $ | 0.0 | $ | 128.3 | $ | 128.3 | 4.13 | % | 3.40 | % | ||||||||||||||
2017 | 30.0 | 203.2 | 300.0 | 533.2 | 533.2 | 6.59 | % | 5.88 | % | |||||||||||||||||||
2018 | 22.7 | 327.2 | 382.2 | 732.1 | 732.1 | 4.24 | % | 4.15 | % | |||||||||||||||||||
2019 | 16.5 | 169.3 | 0.0 | 185.8 | 185.8 | 5.32 | % | 5.23 | % | |||||||||||||||||||
2020 | 7.3 | 280.2 | 965.0 | 1,252.5 | 1,252.5 | 3.71 | % | 3.65 | % | |||||||||||||||||||
2021 | 4.4 | 126.4 | 300.0 | 430.8 | 430.8 | 3.90 | % | 3.81 | % | |||||||||||||||||||
2022 | 0.1 | 42.8 | 450.0 | 492.9 | 483.0 | 4.67 | % | 4.67 | % | |||||||||||||||||||
2023 | 0.0 | 0.0 | 300.0 | 300.0 | 300.0 | 3.38 | % | 3.38 | % | |||||||||||||||||||
2024 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.00 | % | 0.00 | % | |||||||||||||||||||
2025 and beyond | 0.0 | 0.0 | 900.0 | 900.0 | 900.0 | 3.90 | % | 3.90 | % | |||||||||||||||||||
Unsecured debt discount | (5.4 | ) | (5.4 | ) | (5.4 | ) | ||||||||||||||||||||||
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$ | 97.1 | $ | 1,261.3 | $ | 3,591.8 | $ | 4,950.2 | $ | 4,940.3 | 4.28 | % | 4.15 | % | |||||||||||||||
Unconsolidated Maturity Schedule (1) | ||||||||||||||||||||||||||||
2016 | $ | 3.6 | $ | 4.6 | $ | 0.0 | $ | 8.2 | $ | 0.3 | 5.99 | % | 5.99 | % | ||||||||||||||
2017 | 6.6 | 1,304.3 | 0.0 | 1,310.9 | 249.3 | 5.56 | % | 5.54 | % | |||||||||||||||||||
2018 | 4.7 | 180.7 | 0.0 | 185.4 | 15.1 | 4.39 | % | 3.98 | % | |||||||||||||||||||
2019 | 4.8 | 655.9 | 0.0 | 660.7 | 32.8 | 2.39 | % | 2.34 | % | |||||||||||||||||||
2020 | 5.0 | 421.2 | 0.0 | 426.2 | 60.9 | 2.43 | % | 2.39 | % | |||||||||||||||||||
2021 | 4.3 | 80.5 | 0.0 | 84.8 | 36.3 | 5.32 | % | 5.32 | % | |||||||||||||||||||
2022 | 2.7 | 244.1 | 0.0 | 246.8 | 12.3 | 4.39 | % | 3.40 | % | |||||||||||||||||||
2023 | 2.1 | 100.1 | 0.0 | 102.2 | 5.2 | 4.00 | % | 4.21 | % | |||||||||||||||||||
2024 | 0.5 | 83.7 | 0.0 | 84.2 | 13.1 | 4.33 | % | 4.28 | % | |||||||||||||||||||
2025 and beyond | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.00 | % | 0.00 | % | |||||||||||||||||||
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Total | $ | 34.3 | $ | 3,075.1 | $ | 0.0 | $ | 3,109.4 | $ | 425.3 | 4.71 | % | 4.65 | % | ||||||||||||||
% of Total | Consolidated | Unconsolidated | ||||||||||||||||||||||||||
Fixed | 81.0 | % | 66.0 | % | ||||||||||||||||||||||||
Variable | 19.0 | % | 34.0 | % | ||||||||||||||||||||||||
Recourse to DDR | 77.4 | % | 0.0 | % | ||||||||||||||||||||||||
Non-recourse to DDR | 22.6 | % | 100.0 | % |
(1) | Assumes borrower extension options are exercised. |
21
DDR Corp.
Consolidated Debt Detail
$ in millions | ||||||||||||||||
Balance 100% | Balance DDR Share | Maturity Date (1) | Cash Interest Rate (2) (3) | |||||||||||||
Senior Debt | ||||||||||||||||
Unsecured Revolver ($750m) | $ | 265.0 | $ | 265.0 | 06/20 | L + 100 | ||||||||||
Unsecured Revolver ($50m) | 0.0 | 0.0 | 06/20 | L + 100 | ||||||||||||
Secured Term Loan ($200m) | 200.0 | 200.0 | 04/18 | L + 135 | ||||||||||||
Unsecured Term Loan ($400m) | 400.0 | 400.0 | 04/20 | L + 110 | ||||||||||||
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$ | 865.0 | $ | 865.0 | |||||||||||||
Public Debt | ||||||||||||||||
Unsecured Notes | $ | 300.0 | $ | 300.0 | 04/17 | 7.50 | % | |||||||||
Unsecured Notes | 299.5 | 299.5 | 04/18 | 4.75 | % | |||||||||||
Unsecured Notes | 82.2 | 82.2 | 07/18 | 7.50 | % | |||||||||||
Unsecured Notes | 298.9 | 298.9 | 09/20 | 7.88 | % | |||||||||||
Unsecured Notes | 298.7 | 298.7 | 01/21 | 3.50 | % | |||||||||||
Unsecured Notes | 455.3 | 455.3 | 07/22 | 4.63 | % | |||||||||||
Unsecured Notes | 298.7 | 298.7 | 05/23 | 3.38 | % | |||||||||||
Unsecured Notes | 496.8 | 496.8 | 02/25 | 3.63 | % | |||||||||||
Unsecured Notes | 396.6 | 396.6 | 02/26 | 4.25 | % | |||||||||||
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$ | 2,926.7 | $ | 2,926.7 | |||||||||||||
Mortgage Debt | ||||||||||||||||
Sycamore Crossing, OH | $ | 62.1 | $ | 62.1 | 12/16 | 5.81 | % | |||||||||
The Maxwell, IL | 50.5 | 50.5 | 12/16 | L + 160 | ||||||||||||
Falcon Ridge Town Center, CA | 43.5 | 43.5 | 01/17 | 5.68 | % | |||||||||||
Vista Village, CA | 33.2 | 33.2 | 04/17 | 5.71 | % | |||||||||||
Walmart Supercenter, NC | 1.6 | 1.6 | 08/17 | 6.00 | % | |||||||||||
Connecticut Commons, CT | 46.1 | 46.1 | 10/17 | 5.01 | % | |||||||||||
Riverdale Village, MN | 25.3 | 25.3 | 10/17 | 5.01 | % | |||||||||||
Riverdale Village Perimeter, MN | 31.7 | 31.7 | 10/17 | 5.01 | % | |||||||||||
Lake Brandon Village, FL | 9.1 | 9.1 | 10/17 | 5.01 | % | |||||||||||
Shoppers World Brookfield, WI | 5.7 | 5.7 | 10/17 | 5.01 | % | |||||||||||
Marketplace of Brown Deer, WI | 4.1 | 4.1 | 10/17 | 5.01 | % | |||||||||||
Brown Deer Center, WI | 7.7 | 7.7 | 10/17 | 5.01 | % | |||||||||||
Thruway Plaza (Walmart), NY | 0.8 | 0.8 | 10/17 | 6.78 | % | |||||||||||
Tops Plaza, NY | 3.5 | 3.5 | 01/18 | 7.05 | % | |||||||||||
Falcon Ridge Town Center, CA | 14.2 | 14.2 | 01/18 | 5.91 | % | |||||||||||
Walmart Supercenter, SC | 1.9 | 1.9 | 01/18 | 6.00 | % | |||||||||||
Fortuna Center, VA | 12.1 | 12.1 | 02/18 | 6.18 | % | |||||||||||
Johns Creek Town Center, GA | 23.8 | 23.8 | 03/18 | 5.06 | % | |||||||||||
Southland Crossings, OH | 23.8 | 23.8 | 03/18 | 5.06 | % | |||||||||||
The Promenade at Brentwood, MO | 30.2 | 30.2 | 03/18 | 5.06 | % | |||||||||||
DDR Headquarters, OH | 26.8 | 26.8 | 03/18 | L + 105 | ||||||||||||
Mohawk Commons, NY | 6.4 | 6.4 | 12/18 | 5.75 | % |
22
DDR Corp.
Consolidated Debt Detail
$ in millions | ||||||||||||||||
Balance 100% | Balance DDR Share | Maturity Date (1) | Cash Interest Rate (2) (3) | |||||||||||||
Lowe’s, TN | 2.9 | 2.9 | 01/19 | 7.66 | % | |||||||||||
Nassau Park Pavilion, NJ | 55.5 | 55.5 | 02/19 | 3.40 | % | |||||||||||
Bandera Pointe, TX | 24.2 | 24.2 | 02/19 | 3.40 | % | |||||||||||
Presidential Commons, GA | 20.6 | 20.6 | 02/19 | 3.40 | % | |||||||||||
Plaza Cayey, PR | 20.5 | 20.5 | 06/19 | 7.59 | % | |||||||||||
Plaza Fajardo, PR | 24.6 | 24.6 | 06/19 | 7.59 | % | |||||||||||
Plaza Isabela, PR | 21.6 | 21.6 | 06/19 | 7.59 | % | |||||||||||
Plaza Walmart, PR | 11.5 | 11.5 | 06/19 | 7.59 | % | |||||||||||
Mariner Square, FL | 1.9 | 1.9 | 09/19 | 9.75 | % | |||||||||||
Northland Square, IA | 3.9 | 3.9 | 01/20 | 9.38 | % | |||||||||||
Plaza Rio Hondo, PR | 122.5 | 122.5 | 01/20 | 3.95 | % | |||||||||||
Easton Marketplace, OH | 48.9 | 48.9 | 01/20 | 3.95 | % | |||||||||||
The Fountains, FL | 44.6 | 44.6 | 01/20 | 3.95 | % | |||||||||||
Perimeter Pointe, GA | 42.2 | 42.2 | 01/20 | 3.95 | % | |||||||||||
Polaris Towne Center, OH | 42.7 | 42.7 | 04/20 | 6.76 | % | |||||||||||
Chapel Hills West, CO | 11.8 | 11.8 | 06/21 | 5.49 | % | |||||||||||
West Valley Marketplace, PA | 8.1 | �� | 8.1 | 07/21 | 6.95 | % | ||||||||||
Plaza Escorial, PR | 71.3 | 71.3 | 07/21 | 3.59 | % | |||||||||||
Wrangleboro Consumer Sq, NJ | 58.5 | 58.5 | 10/21 | 5.41 | % | |||||||||||
Chapel Hills East, CO | 8.0 | 8.0 | 12/21 | 5.24 | % | |||||||||||
Paradise Village Gateway, AZ | 30.0 | 20.1 | 01/22 | 4.65 | % | |||||||||||
Macedonia Commons, OH | 18.6 | 18.6 | 02/22 | 5.71 | % | |||||||||||
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$ | 1,158.5 | $ | 1,148.6 | |||||||||||||
FMV adjustment – assumed debt | 9.7 | 9.7 | ||||||||||||||
Unamortized Loan Costs, Net | (21.1 | ) | (21.0 | ) | ||||||||||||
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Grand Total | $ | 4,938.8 | $ | 4,929.0 | ||||||||||||
Rate Type | ||||||||||||||||
Fixed | $ | 4,007.9 | $ | 3,998.0 | 4.9 years | 4.91 | % | |||||||||
Variable | 942.3 | 942.3 | 3.1 years | 1.62 | % | |||||||||||
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$ | 4,950.2 | $ | 4,940.3 | 4.5 years | 4.28 | % | ||||||||||
Perpetual Preferred Stock | ||||||||||||||||
Class J | $ | 200.0 | $ | 200.0 | Perpetual | 6.500 | % | |||||||||
Class K | 150.0 | 150.0 | Perpetual | 6.250 | % | |||||||||||
Notional Amount | Rate Hedged | Fixed Rate | Termination Date | |||||||||||||
Interest Rate Swaps | ||||||||||||||||
Underlying Debt Hedged: | ||||||||||||||||
Mortgage Portfolio | $ | 77.7 | 1 mo. LIBOR | 2.81 | % | 9/1/17 |
(1) | Assumes borrower extension options are exercised. |
(2) | L = LIBOR |
(3) | Does not include discounts or premiums. |
23
DDR Corp.
Unconsolidated Debt Detail
$ in millions | ||||||||||||||||
Balance 100% | Balance DDR Share | Maturity Date (1) | Cash Interest Rate (2) | |||||||||||||
BRE DDR Retail Holdings III | ||||||||||||||||
Telegraph Plaza, MI | $ | 4.7 | $ | 0.2 | 12/16 | 5.99 | % | |||||||||
Camp Creek, GA | 42.0 | 2.1 | 12/18 | 4.62 | % | |||||||||||
May 2019 Loan Pool (2 assets) | 20.3 | 1.0 | 05/19 | 4.85 | % | |||||||||||
November 2019 Loan Pool (32 assets) | 636.5 | 31.8 | 11/19 | L + 185 | ||||||||||||
Whittwood Town Center, CA | 43.0 | 2.2 | 12/20 | 5.20 | % | |||||||||||
January 2022 Loan Pool (3 assets) | 23.0 | 1.1 | 01/22 | 4.75 | % | |||||||||||
Kyle Marketplace, TX | 24.8 | 1.2 | 03/22 | 4.09 | % | |||||||||||
March 2022 Loan Pool (3 assets) | 23.4 | 1.2 | 03/22 | 5.49 | % | |||||||||||
Eastland Center, CA | 90.0 | 4.5 | 07/22 | 4.50 | % | |||||||||||
Greenway Commons, TX | 33.0 | 1.7 | 07/22 | 4.10 | % | |||||||||||
July 2022 Loan Pool (4 assets) | 17.0 | 0.9 | 07/22 | 4.40 | % | |||||||||||
White Oak Village, VA | 34.3 | 1.7 | 09/22 | 3.60 | % | |||||||||||
January 2023 Loan Pool (4 assets) | 22.7 | 1.1 | 01/23 | 4.27 | % | |||||||||||
Kingsbury Center, IL | 14.5 | 0.7 | 06/23 | 3.97 | % | |||||||||||
Valley Bend, AL | 43.5 | 2.2 | 06/23 | 3.75 | % | |||||||||||
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$ | 1,072.7 | $ | 53.6 | |||||||||||||
BRE DDR Retail Holdings IV | ||||||||||||||||
The Hub, NY | $ | 15.6 | $ | 0.8 | 01/17 | 7.53 | % | |||||||||
Southmont Plaza, PA | 34.0 | 1.7 | 02/18 | L + 250 | ||||||||||||
Ashbridge Square, PA | 35.0 | 1.7 | 03/18 | 6.08 | % | |||||||||||
Fountains of Miramar, FL | 24.8 | 1.2 | 02/21 | L + 250 | ||||||||||||
Millenia Crossing, FL | 22.8 | 1.1 | 01/23 | 4.25 | % | |||||||||||
Concourse Village, FL | 14.2 | 0.7 | 02/24 | 4.86 | % | |||||||||||
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$ | 146.4 | $ | 7.2 | |||||||||||||
DDR Domestic Retail Fund I | ||||||||||||||||
July 2017 Loan Pool (52 assets) | $ | 883.5 | $ | 176.7 | 07/17 | 5.60 | % | |||||||||
Heather Island, FL | 4.4 | 0.9 | 02/18 | 3.56 | % | |||||||||||
Hilliard Rome, OH | 11.5 | 2.3 | 02/18 | 3.56 | % | |||||||||||
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|
| |||||||||||||
$ | 899.4 | $ | 179.9 | |||||||||||||
DDRTC Core Retail Fund | ||||||||||||||||
March 2017 Loan Pool (9 assets) | $ | 350.2 | $ | 52.5 | 03/17 | 5.45 | % | |||||||||
July 2020 Loan Pool (10 assets) (3) | 195.4 | 29.3 | 07/20 | L + 150 | ||||||||||||
July 2020 Loan Pool (6 assets) (3) | 165.3 | 24.8 | 07/20 | L + 175 | ||||||||||||
Birkdale Village, NC | 82.5 | 12.4 | 04/24 | 4.30 | % | |||||||||||
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|
|
| |||||||||||||
$ | 793.4 | $ | 119.0 |
24
DDR Corp.
Unconsolidated Debt Detail
$ in millions | ||||||||||||||||
Balance 100% | Balance DDR Share | Maturity Date (1) | Cash Interest Rate (2) | |||||||||||||
DDR-SAU Retail Fund | ||||||||||||||||
September 2017 Loan Pool (7 assets) | $ | 29.0 | $ | 5.8 | 09/17 | 4.74 | % | |||||||||
April 2018 Loan Pool (5 assets) | 32.0 | 6.4 | 04/18 | 4.65 | % | |||||||||||
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|
| |||||||||||||
$ | 61.0 | $ | 12.2 | |||||||||||||
Other Joint Ventures | ||||||||||||||||
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) | 18.5 | 4.7 | 10/20 | 5.25 | % | |||||||||||
Sun Center Limited, OH | 21.7 | 17.3 | 05/21 | 5.99 | % | |||||||||||
RVIP IIIB, Deer Park, IL | 69.3 | 17.9 | 09/21 | 4.84 | % | |||||||||||
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|
| |||||||||||||
$ | 136.5 | $ | 53.4 | |||||||||||||
Subtotal | $ | 3,109.4 | $ | 425.3 | ||||||||||||
FMV Adjustment – Assumed Debt | 17.8 | 0.9 | ||||||||||||||
Unamortized Loan Costs, Net | (8.3 | ) | (1.0 | ) | ||||||||||||
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|
| |||||||||||||
Total | $ | 3,118.9 | $ | 425.2 | ||||||||||||
Rate Type | ||||||||||||||||
Fixed | $ | 2,053.5 | $ | 336.4 | 2.0 years | 5.38 | % | |||||||||
Variable | 1,055.9 | 88.9 | 3.7 years | 2.19 | % | |||||||||||
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| |||||||||
$ | 3,109.4 | $ | 425.3 | 2.4 years | 4.71 | % | ||||||||||
Notional Amount | Rate Hedged | Fixed Rate | Termination Date | |||||||||||||
Interest Rate Swaps | ||||||||||||||||
Underlying Debt Hedged: | ||||||||||||||||
Mortgage Loan Camp Creek | $ | 42.0 | 1 mo. LIBOR | 1.87 | % | 12/1/18 |
(1) | Assumes borrower extension options are exercised. |
(2) | L = LIBOR |
(3) | Loans have interest rate floors of 1 mo. Libor at 0.25% |
25
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 America Merrill Lynch | Craig Schmidt | craig.schmidt@baml.com | (646) 855-3640 | |||
Boenning & Scattergood | Floris van Dijkum | fvandijkum@boenninginc.com | (212) 209-3916 | |||
Canaccord Genuity | Paul Morgan | pmorgan@canaccordgenuity.com | (415) 229-7181 | |||
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 | ||||
Credit Suisse | Ian Weissman | ian.weissman@credit-suisse.com | (212) 538-6889 | |||
Deutsche Bank | Vincent Chao | vincent.chao@db.com | (212) 250-6799 | |||
Evercore ISI | Steve Sakwa | steve.sakwa@evercoreisi.com | (212) 446-9462 | |||
Samir Khanal | samir.khanal@evercoreisi.com | (212) 888-3796 | ||||
Goldman Sachs | Andrew Rosivach | andrew.rosivach@gs.com | (212) 902-2796 | |||
Caitlin Burrows | caitlin.burrows@gs.com | (212) 902-4736 | ||||
Green Street Advisors | Jason White | jwhite@greenstreetadvisors.com | (949) 640-8780 | |||
Hilliard Lyons | Carol Kemple | ckemple@hilliard.com | (502) 588-1839 | |||
Jefferies and Company | George Hoglund | ghoglund@jefferies.com | (212) 284-2226 | |||
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 | ||||
Mizuho Securities | Haendel St. Juste | haendel.stjuste@us.mizuho-sc.com | (212) 205-7860 | |||
RBC Capital Markets | Rich Moore | rich.moore@rbccm.com | (440) 715-2646 | |||
Robert W. Baird & Co. | RJ Milligan | rjmilligan@rwbaird.com | (813) 273-8252 | |||
Sandler O’Neill | Alex Goldfarb | agoldfarb@sandleroneill.com | (212) 466-7937 | |||
SunTrust Robinson Humphrey | Ki Bin Kim | kibin.kim@suntrust.com | (212) 303-4124 | |||
UBS | 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 | Peter Troisi | peter.troisi@barclays.com | (212) 412-3695 | |||
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@wellsfargo.com | (704) 715-8455 |
26
DDR Corp.
Notable Accounting and Supplemental Policies
The information contained in the Quarterly Financial Supplement does not purport to disclose all items required by the accounting principles generally accepted in the United States of America (“GAAP”) and is unaudited information. The Company’s Form 10-K and Form 10-Q should be read in conjunction with the Quarterly Financial Supplement.
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 term financing are included as a reduction of the related debt liability and costs incurred related to the revolving credit facilities are included in other assets on the consolidated balance sheets. All costs are amortized on a straight-line basis over the term of the related debt agreement; such amortization is reflected as interest expense in the consolidated income statements. |
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/ | Shorter of economic life or lease terms | |
Tenant Improvements |
27
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. The Company does not capitalize interest on land held for development which is on hold and is not undergoing any development activities. |
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. |
• | Effective in 2015, the operating activity and the gains or losses on the sales of operating shopping centers are generally no longer 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. |
Net Effective Rents
• | Net effective rents are calculated as a weighted average per rentable square foot over the lease term 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. |
28
DDR Corp.
Non-GAAP Measures
Performance Measures
FFO and OFFO
The Company believes that Funds from Operations (“FFO”) and Operating FFO, both non-GAAP financial measures, provide additional and useful means to assess the financial performance of REITs. FFO and Operating FFO are frequently used by the real estate industry including securities analysts, investors and other interested parties to evaluate the performance of REITs.
FFO excludes GAAP historical cost depreciation and amortization of real estate and real estate investments, which assume that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions, and many companies use different depreciable lives and methods. Because FFO excludes depreciation and amortization unique to real estate and gains and losses from depreciable property dispositions, it can provide a performance measure that, when compared year over year, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, interest costs and acquisition, disposition and development activities. This provides a perspective of the Company’s financial performance not immediately apparent from net income determined in accordance with GAAP.
FFO is generally defined and calculated by the Company as net income (loss) (computed in accordance with GAAP), adjusted to exclude (i) preferred share dividends, (ii) gains and losses from disposition of depreciable real estate property and related investments, which are presented net of taxes, (iii) impairment charges on depreciable real estate property and related investments and (iv) certain non-cash items. These non-cash items principally include real property depreciation and amortization of intangibles, equity income (loss) from joint ventures and equity income (loss) 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’s calculation of FFO is consistent with the definition of FFO provided by the National Association of Real Estate Investment Trusts (“NAREIT”).
The Company believes that certain gains and charges recorded in its operating results are not comparable or reflective of its core operating performance. As a result, the Company also computes Operating FFO and discusses it with the users of its financial statements, in addition to other measures such as net income (loss) determined in accordance with GAAP and FFO. Operating FFO is generally defined and calculated by the Company as FFO excluding certain charges and gains that management believes are not comparable and indicative of the results of the Company’s operating real estate portfolio. Such adjustments include gains on the sale of and/or change in control of interests, gains/losses on the sale of non-depreciable real estate, impairments of non-depreciable real estate, gains/losses on the early extinguishment of debt, transaction costs and other restructuring type costs. The disclosure of these charges and gains is regularly requested by users of the Company’s financial statements.
29
DDR Corp.
Non-GAAP Measures
The adjustment for these charges and gains may not be comparable to how other REITs or real estate companies calculate their results of operations, and the Company’s calculation of Operating FFO differs from NAREIT’s definition of FFO. Additionally, the Company provides no assurances that these charges and gains are non-recurring. These charges and gains could be reasonably expected to recur in future results of operations.
These measures of performance are used by the Company for several business purposes and by other REITs. The Company uses FFO and/or Operating FFO in part (i) as a disclosure to improve the understanding of the Company’s operating results among the investing public, (ii) as a measure of a real estate asset’s performance, (iii) to influence acquisition, disposition and capital investment strategies and (iv) to compare the Company’s performance to that of other publicly traded shopping center REITs.
For the reasons described above, management believes that FFO and Operating FFO provide the Company and investors with an important indicator of the Company’s operating performance. They provide recognized measures of performance other than GAAP net income, which may include non-cash items (often significant). Other real estate companies may calculate FFO and Operating FFO in a different manner.
Management recognizes the limitations of FFO and Operating FFO when compared to GAAP’s net income. FFO and Operating FFO do not represent amounts available for dividends, capital replacement or expansion, debt service obligations or other commitments and uncertainties. Management does not use FFO or Operating FFO as an indicator of the Company’s cash obligations and funding requirements for future commitments, acquisitions or development activities. Neither FFO nor Operating FFO represents cash generated from operating activities in accordance with GAAP, and neither is necessarily indicative of cash available to fund cash needs. Neither FFO nor Operating FFO should be considered an alternative to net income (computed in accordance with GAAP) or as an alternative to cash flow as a measure of liquidity. FFO and Operating FFO are simply used as additional indicators of the Company’s operating performance. The Company believes that to further understand its performance, FFO and Operating FFO should be compared with the Company’s reported net income (loss) and considered in addition to cash flows determined in accordance with GAAP, as presented in its condensed consolidated financial statements. Reconciliations of these measures to their most directly comparable GAAP measure of net income (loss) have been provided herein.
30
DDR Corp.
Non-GAAP Measures
Net Operating Income (“NOI”) and Same Store Net Operating Income (“SSNOI”)
The Company uses NOI, which is a non-GAAP financial measure, as a supplemental performance measure. NOI is calculated as property revenues less property-related expenses. The Company believes NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level and when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis.
The Company also presents NOI information on a same store basis, or SSNOI. The Company believes SSNOI provides investors with additional information regarding the operating performances of comparable assets because it excludes certain non-cash and non-comparable items as noted below. SSNOI is frequently used by the real estate industry including securities analysts, investors and other interested parties to evaluate the performance of REITs.
The Company defines SSNOI as property revenues less property-related expenses which exclude straight-line rental income and expenses, lease termination income, management fee expense, fair market value of leases, expense recovery adjustments and provisions for uncollectible amounts and/or recoveries thereof. SSNOI also excludes activity associated with development and major redevelopment; and includes assets owned in comparable periods (15 months for quarter comparisons). SSNOI excludes all non-property and corporate level revenue and expenses. Other real estate companies may calculate NOI and SSNOI in a different manner.
The Company believes that SSNOI is not, and is not intended to be, a presentation in accordance with GAAP. SSNOI information has its limitations as it excludes any capital expenditures associated with the re-leasing of tenant space or as needed to operate the assets. SSNOI does not represent amounts available for dividends, capital replacement or expansion, debt service obligations or other commitments and uncertainties. Management does not use SSNOI as an indicator of the Company’s cash obligations and funding requirements for future commitments, acquisitions or development activities. SSNOI does not represent cash generated from operating activities in accordance with GAAP, and is not necessarily indicative of cash available to fund cash needs. SSNOI should not be considered an alternative to net income (computed in accordance with GAAP) or as an alternative to cash flow as a measure of liquidity. A reconciliation of SSNOI to its most directly comparable GAAP measure of net income (loss) has been provided herein.
31
DDR Corp.
Non-GAAP Measures
Other Measures
DDR Pro Rata Share Information (Income Statements and Balance Sheets)
The Company believes that the DDR Pro rata Share financial information presented in the press release section of the quarterly supplement is not, and is not intended to be, a presentation in accordance with GAAP. The DDR Share Information included with the Income Statements and Balance Sheets in this quarterly supplement reflect DDR’s effective ownership of each asset in the Company’s portfolio that DDR does not wholly-own. DDR Share financial information is frequently used by the real estate industry including securities analysts, investors and other interested parties to evaluate the performance of DDR compared to other REITs. Other real estate companies may calculate such information in a different manner.
The amounts shown in the columns labeled ‘‘Consolidated’’ reflect the line items contained in the Company’s consolidated financial statements in accordance with GAAP. The amounts in the columns labeled ‘‘Share of JVs’’ were computed by applying to each financial statement line item the effective ownership interest used to arrive at DDR’s share of net income or loss during the period when applying the equity method of accounting to each of the Company’s unconsolidated joint ventures. Other companies may calculate their pro rata interest differently, limiting the usefulness of the amounts as comparative measures.
DDR does not control the unconsolidated joint ventures and the presentations of the assets, liabilities, revenues and expenses of the unconsolidated joint ventures do not represent the Company’s legal claim to such items. The Company provides DDR Share information because the Company believes it assists investors and analysts in estimating the effective interest in DDR’s unconsolidated joint ventures when read in conjunction with the Company’s reported results under GAAP. The presentation of DDR Share information has limitations as an analytical tool. One such limitation is that the amounts shown on the individual line items are derived by applying DDR’s effective interest determined when applying the equity method of accounting and does not necessarily represent the Company’s legal claim to the assets and liabilities or the revenues and expenses of the unconsolidated joint ventures. Because of the limitations, the DDR Share Information should not be considered in isolation or as a substitute for the Company’s financial statements as reported under GAAP.
Included herein are the Company’s consolidated financial statements in accordance with GAAP that will be filed with the SEC on Form 10-Q or 10-K, as applicable.
32
DDR Corp.
Non-GAAP Measures
Debt/Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA)
The Company uses the ratio Debt to EBITDA (“Debt/EBITDA”) as it believes it provides a meaningful metric as it relates to the Company’s ability to meet various leverage tests for the corresponding periods.
The Components of Debt/EBITDA include adjusted EBITDA as the numerator, as opposed to net income determined in accordance with GAAP. The Company calculates adjusted EBITDA to account for items it does not believe are representative of ongoing operating results. The Company uses Net Effective Debt as the denominator in the calculation. Net Effective Debt is calculated as the Company’s consolidated debt outstanding adjusted to remove non-cash unamortized loan costs and fair market value adjustments, as well as include cash and restricted cash as of the balance sheet date presented. Such amounts are calculated at the Company’s proportionate share of ownership.
Adjusted EBITDA should not be considered as an alternative to earnings as an indicator of the Company’s financial performance, or an alternative to cash flow from operating activities as a measure of liquidity. The Company’s calculation of adjusted EBITDA may differ from the methodology utilized by other companies. Investors are cautioned that items excluded from EBITDA are significant components in understanding and assessing the Company’s financial condition.
A reconciliation of adjusted EBITDA and net effective debt used in the Debt/EBITDA ratio to their most directly comparable GAAP measures of net income (loss) and debt has been provided in the Balance Sheet Summary section.
33
DDR Corp.
Net Income (Loss) Reconciliation to FFO and Operating FFO
$ in millions
2Q16 | 2Q15 | 6M16 | 6M15 | |||||||||||||
Net income (loss) attributable to common shareholders | $ | 35.5 | $ | 13.0 | $ | 75.4 | ($ | 236.4 | ) | |||||||
Depreciation and amortization of real estate investments | 95.6 | 97.2 | 190.5 | 198.1 | ||||||||||||
Equity in net income of joint ventures | (1.1 | ) | (1.6 | ) | (15.5 | ) | (1.7 | ) | ||||||||
Joint ventures’ FFO | 6.4 | 7.5 | 12.6 | 14.5 | ||||||||||||
Non-controlling interests (OP Units) | 0.1 | 0.2 | 0.2 | 0.5 | ||||||||||||
Impairment of depreciable real estate assets | 0.0 | 0.0 | 0.0 | 179.7 | ||||||||||||
Gain on disposition of depreciable real estate | (16.2 | ) | (11.3 | ) | (28.3 | ) | (36.5 | ) | ||||||||
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FFO attributable to common shareholders | 120.3 | 105.0 | 234.9 | 118.2 | ||||||||||||
Impairment charges – non-depreciable assets | 0.0 | 0.0 | 0.0 | 99.3 | ||||||||||||
Executive separation charges | 0.0 | 1.7 | 0.0 | 2.3 | ||||||||||||
Transaction, debt extinguishment, litigation, other, net | 0.0 | (1.9 | ) | 0.0 | 1.5 | |||||||||||
Loss (gain) on sale and change in control of interests, net | 0.0 | 6.5 | 0.0 | (7.8 | ) | |||||||||||
Tax expense (primarily Puerto Rico restructuring), net | (0.3 | ) | 0.0 | (0.3 | ) | 4.4 | ||||||||||
Loss on disposition of non-depreciable real estate, net | 2.4 | 0.1 | 2.1 | 0.6 | ||||||||||||
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Total non-operating items, net | 2.1 | 6.4 | 1.8 | 100.3 | ||||||||||||
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Operating FFO attributable to common shareholders | $ | 122.4 | $ | 111.4 | $ | 236.7 | $ | 218.5 |
34
DDR Corp.
Net Income (Loss) Reconciliation to SSNOI
$ in millions
DDR Share | ||||||||||||||||
2Q16 | 2Q15 | 2Q16 | 2Q15 | |||||||||||||
Net income attributable to DDR | $ | 41.1 | $ | 18.6 | $ | 41.1 | $ | 18.6 | ||||||||
Adjustments: | ||||||||||||||||
Fee income | (11.5 | ) | (8.4 | ) | (11.5 | ) | (8.4 | ) | ||||||||
General and administrative | 18.5 | 19.3 | 18.5 | 19.3 | ||||||||||||
Depreciation and amortization | 97.7 | 99.3 | 97.7 | 99.3 | ||||||||||||
Interest income | (9.4 | ) | (7.2 | ) | (9.4 | ) | (7.2 | ) | ||||||||
Interest expense | 54.0 | 61.3 | 54.0 | 61.3 | ||||||||||||
Other (income) expense, net | (2.1 | ) | (2.4 | ) | (2.1 | ) | (2.4 | ) | ||||||||
Equity in net income of joint ventures | (1.1 | ) | (1.6 | ) | (1.1 | ) | (1.6 | ) | ||||||||
Loss on sale and change in control of interests, net | 0.0 | 6.5 | 0.0 | 6.5 | ||||||||||||
Tax expense of taxable REIT subsidiaries and state franchise and income taxes | 0.2 | 0.6 | 0.2 | 0.6 | ||||||||||||
Gain on disposition of real estate, net | (13.7 | ) | (11.3 | ) | (13.7 | ) | (11.3 | ) | ||||||||
Income attributable to non-controlling interests, net | 0.3 | 0.4 | 0.3 | 0.4 | ||||||||||||
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Consolidated NOI | 174.0 | 175.1 | 174.0 | 175.1 | ||||||||||||
DDR’s consolidated JV | 0.0 | 0.0 | (0.4 | ) | (0.4 | ) | ||||||||||
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Consolidated NOI, net of non-controlling interest | 174.0 | 175.1 | 173.6 | 174.7 | ||||||||||||
Net (loss) income attributable to unconsolidated joint ventures | (4.9 | ) | (2.0 | ) | 0.7 | 1.3 | ||||||||||
Adjustments: | ||||||||||||||||
Depreciation and amortization | 49.0 | 51.5 | 5.6 | 6.1 | ||||||||||||
Interest expense | 33.3 | 33.6 | 5.3 | 5.6 | ||||||||||||
Preferred share expense | 8.3 | 6.4 | 0.4 | 0.3 | ||||||||||||
Other expense, net | 6.3 | 6.1 | 1.0 | 1.1 | ||||||||||||
(Gain) loss on disposition of real estate, net | (0.1 | ) | 1.4 | 0.0 | 0.1 | |||||||||||
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Unconsolidated NOI at 100% | 91.9 | 97.0 | 13.0 | 14.5 | ||||||||||||
Total Consolidated + Unconsolidated NOI at 100% | 265.9 | 272.1 | 186.6 | 189.2 | ||||||||||||
Less: Non-Same Store NOI adjustments | 19.9 | 32.5 | 14.2 | 22.0 | ||||||||||||
Total SSNOI | $ | 246.0 | $ | 239.6 | $ | 172.4 | $ | 167.2 | ||||||||
% Increase in SSNOI | 2.7 | % | 3.1 | % |
35
DDR Corp.
GAAP Consolidated Statements of Operations
$ in millions, except per share
2Q16 | 2Q15 | 6M16 | 6M15 | |||||||||||||
Revenues from operations: | ||||||||||||||||
Minimum rents | $ | 178.1 | $ | 179.4 | $ | 355.4 | $ | 360.1 | ||||||||
Percentage and overage rents | 1.7 | 1.4 | 3.6 | 2.7 | ||||||||||||
Recoveries from tenants | 61.4 | 62.0 | 123.0 | 126.1 | ||||||||||||
Fee and other income | 16.2 | 14.5 | 29.7 | 27.2 | ||||||||||||
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257.4 | 257.3 | 511.7 | 516.1 | |||||||||||||
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Rental operation expenses: | ||||||||||||||||
Operating and maintenance | 34.6 | 36.0 | 71.1 | 74.8 | ||||||||||||
Real estate taxes | 37.3 | 37.8 | 73.8 | 75.4 | ||||||||||||
Impairment charges | 0.0 | 0.0 | 0.0 | 279.0 | ||||||||||||
General and administrative | 18.5 | 19.3 | 36.4 | 37.9 | ||||||||||||
Depreciation and amortization | 97.7 | 99.3 | 194.6 | 202.3 | ||||||||||||
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188.1 | 192.4 | 375.9 | 669.4 | |||||||||||||
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Other income (expense): | ||||||||||||||||
Interest income | 9.4 | 7.2 | 18.5 | 14.4 | ||||||||||||
Interest expense | (54.0 | ) | (61.3 | ) | (111.9 | ) | (124.3 | ) | ||||||||
Other income (expense), net | 2.1 | 2.4 | 3.9 | (1.1 | ) | |||||||||||
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(42.5 | ) | (51.7 | ) | (89.5 | ) | (111.0 | ) | |||||||||
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Income (loss) before earnings from equity method investments and other items | 26.8 | 13.2 | 46.3 | (264.3 | ) | |||||||||||
Equity in net income of joint ventures | 1.1 | 1.6 | 15.5 | 1.7 | ||||||||||||
(Loss) gain on sale and change in control of interests, net | 0.0 | (6.5 | ) | 0.0 | 7.8 | |||||||||||
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Income before tax expense | 27.9 | 8.3 | 61.8 | (254.8 | ) | |||||||||||
Tax expense of taxable REIT subsidiaries and state franchise and income taxes | (0.2 | ) | (0.6 | ) | (0.7 | ) | (5.5 | ) | ||||||||
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Income (loss) from continuing operations | 27.7 | 7.7 | 61.1 | (260.3 | ) | |||||||||||
Gain on disposition of real estate, net | 13.7 | 11.3 | 26.1 | 36.4 | ||||||||||||
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Net income (loss) | 41.4 | 19.0 | 87.2 | (223.9 | ) | |||||||||||
Income attributable to non-controlling interests, net | (0.3 | ) | (0.4 | ) | (0.6 | ) | (1.3 | ) | ||||||||
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Net income (loss) attributable to DDR | 41.1 | 18.6 | 86.6 | (225.2 | ) | |||||||||||
Preferred dividends | (5.6 | ) | (5.6 | ) | (11.2 | ) | (11.2 | ) | ||||||||
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Net income (loss) attributable to common shareholders | 35.5 | 13.0 | 75.4 | (236.4 | ) | |||||||||||
Earnings per common share – Basic & Diluted | $ | 0.10 | $ | 0.03 | $ | 0.21 | ($ | 0.66 | ) |
36
DDR Corp.
GAAP Consolidated Balance Sheets
$ in millions
At Period End | ||||||||
2Q16 | 4Q15 | |||||||
Assets: | ||||||||
Land | $ | 2,137.9 | $ | 2,184.1 | ||||
Buildings | 6,893.8 | 6,965.6 | ||||||
Fixtures and tenant improvements | 756.6 | 743.1 | ||||||
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9,788.3 | 9,892.8 | |||||||
Less: Accumulated depreciation | (2,115.1 | ) | (2,062.9 | ) | ||||
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7,673.2 | 7,829.9 | |||||||
Construction in progress and land | 161.7 | 235.4 | ||||||
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Total real estate assets, net | 7,834.9 | 8,065.3 | ||||||
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Investments in and advances to joint ventures | 465.4 | 467.7 | ||||||
Cash and cash equivalents | 18.0 | 22.4 | ||||||
Restricted cash | 9.2 | 10.1 | ||||||
Accounts receivable, net | 124.9 | 129.1 | ||||||
Notes receivable, net | 47.3 | 42.5 | ||||||
Other assets, net | 321.9 | 359.9 | ||||||
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Total assets | 8,821.6 | 9,097.0 | ||||||
Liabilities and Equity: | ||||||||
Unsecured indebtedness: | ||||||||
Senior notes | 2,911.2 | 3,149.2 | ||||||
Unsecured term loan | 398.2 | 397.9 | ||||||
Revolving credit facilities | 265.0 | 210.0 | ||||||
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3,574.4 | 3,757.1 | |||||||
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Secured indebtedness: | ||||||||
Secured term loan | 199.6 | 199.2 | ||||||
Mortgage indebtedness | 1,164.8 | 1,183.2 | ||||||
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1,364.4 | 1,382.4 | |||||||
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Total indebtedness | 4,938.8 | 5,139.5 | ||||||
Accounts payable and other liabilities | 398.9 | 425.5 | ||||||
Dividends payable | 75.1 | 68.6 | ||||||
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Total liabilities | 5,412.8 | 5,633.6 | ||||||
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DDR Equity: | ||||||||
Preferred shares | 350.0 | 350.0 | ||||||
Common shares | 36.6 | 36.5 | ||||||
Additional paid-in capital | 5,473.6 | 5,466.5 | ||||||
Accumulated distributions in excess of net income | (2,455.3 | ) | (2,391.8 | ) | ||||
Deferred compensation obligation | 15.4 | 15.5 | ||||||
Accumulated other comprehensive loss | (5.2 | ) | (6.3 | ) | ||||
Common shares in treasury | (14.9 | ) | (15.3 | ) | ||||
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Total DDR shareholders’ equity | 3,400.2 | 3,455.1 | ||||||
Non-controlling interests | 8.6 | 8.3 | ||||||
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Total equity | 3,408.8 | 3,463.4 | ||||||
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Total liabilities and equity | $ | 8,821.6 | $ | 9,097.0 |
37