UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant
to Section 13 OR 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 11, 2015
DDR Corp.
(Exact name
of registrant as specified in its charter)
|
|
|
|
|
| Ohio |
|
1-11690 |
|
34-1723097 |
| (State or other jurisdiction
of incorporation) |
|
(Commission
File Number) |
|
(IRS Employer
Identification No.) |
|
|
| 3300 Enterprise Parkway, Beachwood, Ohio |
|
44122 |
| (Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including area code (216) 755-5500
Not Applicable
(Former
name or former address, if changed since last report.)
Check the appropriate box below
if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| ¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition.
On February 11, 2015, DDR Corp. (the “Company”) issued a News Release containing financial results of the Company (the “News Release”)
and a quarterly financial supplement containing financial and property information of the Company (“Quarterly Supplement”) for the three months and year ended December 31, 2014. Among other things, the News Release reports net loss of
$0.05 per diluted share for the three-months ended December 31, 2014 and net income of $0.25 per diluted share for the year ended December 31, 2014, as compared to net income of $0.00 per diluted share for the three-months ended
December 31, 2013 and net loss of $0.14 per diluted share for the year ended December 31, 2013. A copy of the News Release is attached hereto as Exhibit 99.1 and a copy of the Quarterly Financial Supplement is attached hereto as Exhibit
99.2 and are each incorporated herein by reference. This information shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the
liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933 (the “Securities Act”) or the Exchange Act, except as shall be set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
|
|
|
| Exhibit
No. |
|
Description |
|
|
| 99.1 |
|
News release dated as of February 11, 2015. |
|
|
| 99.2 |
|
Quarterly financial supplement dated as of December 31, 2014. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
|
|
|
| DDR CORP. |
|
|
| By: |
|
/s/ Christa A. Vesy |
| Name: |
|
Christa A. Vesy |
| Title: |
|
Executive Vice President and Chief
Accounting Officer |
Date: February 11, 2015
EXHIBIT INDEX
|
|
|
| Exhibit
No. |
|
Description |
|
|
| 99.1 |
|
News release dated as of February 11, 2015. |
|
|
| 99.2 |
|
Quarterly financial supplement dated as of December 31, 2014. |
Exhibit 99.1
For immediate release:
|
|
|
| Media Contact: |
|
Investor Contact: |
| Matt Schuler |
|
Matt Lougee |
| mschuler@ddr.com |
|
mlougee@ddr.com |
| 216.755.5500 |
|
216.755.5500 |
DDR REPORTS OPERATING FFO PER DILUTED SHARE OF $1.16
FOR THE YEAR ENDED DECEMBER 31, 2014
BEACHWOOD, OHIO, February 11, 2015 – DDR Corp. (NYSE: DDR) today announced operating results for the fourth quarter and year ended
December 31, 2014.
Significant Fourth Quarter Activity
| |
• |
|
Generated Operating FFO of $0.31 per diluted share, a 6.9% increase from the fourth quarter of 2013 |
| |
• |
|
Executed 327 new leases and renewals for 1.8 million square feet |
| |
• |
|
Increased the U.S. portfolio leased rate by 10 basis points to 95.7% from 95.6% at September 30, 2014 |
| |
• |
|
Generated new leasing spreads of 25.0% on a pro rata basis, and renewal leasing spreads of 7.2% on a pro rata basis |
| |
• |
|
Generated same store net operating income growth of 3.0% on a pro rata basis compared to the prior year |
| |
• |
|
Closed on a new unconsolidated joint venture with Blackstone that acquired a portfolio of 70 shopping centers with a total cost of $1.93 billion |
| |
• |
|
Acquired sole ownership of one power center, from an existing joint venture, for $15 million at DDR’s share |
| |
• |
|
Liquidated two joint ventures containing 23 assets |
| |
• |
|
Sold $591 million of assets; DDR’s pro rata gross proceeds were $258 million |
| |
• |
|
Issued $500 million, 3.625% senior unsecured notes due February 2025 in January 2015 |
2014 Year-end
Highlights
| |
• |
|
Generated Operating FFO of $1.16 per diluted share for the full year 2014, an increase of 4.5% compared to 2013 |
| |
• |
|
Executed 1,411 new leases and renewals for 10.6 million square feet in 2014 |
| |
• |
|
Increased the U.S. portfolio leased rate by 70 basis points from 95.0% at December 31, 2013 |
| |
• |
|
Generated new leasing spreads for the full year 2014 of 22.2% on a pro rata basis, and renewal leasing spreads of 7.7% on a pro rata basis. |
“We are pleased to announce another quarter of strong results and we remain confident that we are well-positioned and excited about the opportunity
ahead,” commented David J. Oakes, president and chief executive officer of DDR.
Financial Highlights
| |
• |
|
Fourth quarter operating funds from operations attributable to common shareholders (“Operating FFO”) increased $7.7 million to $112.2 million, or $0.31 per diluted share, compared to $104.5 million, or $0.29
per diluted share, for the prior-year comparable period. |
| |
• |
|
Operating FFO for the year ended December 31, 2014, increased to $420.4 million, or $1.16 per diluted share, compared to $366.7 million or $1.11 per diluted share, for the prior year. |
| |
• |
|
Fourth quarter net loss attributable to common shareholders was $16.3 million, or $0.05 per diluted share, which compares to net income of $0.6 million, or $0.00 per diluted share, for the prior-year comparable period.
|
| |
• |
|
Net income attributable to common shareholders for the year ended December 31, 2014, was $91.3 million, or $0.25 per diluted share, which compares to net loss of $43.1 million or $0.14 per diluted share, for the
prior year. |
Significant Fourth Quarter and Year-End Operating Activity
| |
• |
|
Executed 576 new leases totaling 2.9 million square feet at positive spreads of 22.2% on a pro rata basis, of which 140 new leases aggregating 0.6 million square feet at positive spreads of 25.0% on a pro rata
basis were executed in the fourth quarter |
| |
• |
|
Executed 835 renewal leases totaling 7.7 million square feet at positive spreads of 7.7% on a pro rata basis, of which 187 renewal leases totaling 1.2 million square feet at positive spreads of 7.2% on a pro
rata basis were executed in the fourth quarter |
| |
• |
|
The U.S. annualized base rent per occupied square foot was $13.91 at December 31, 2014 as compared to $13.35 at December 31, 2013, and increase of 4.2%. |
Significant Fourth Quarter Transactional Activity
| |
• |
|
In October, acquired a portfolio of 70 shopping centers with joint venture partner, Blackstone, for $1.93 billion or $376 million at the Company’s share. The Company’s investment includes $20 million of common
equity, $62 million of newly financed and debt assumed at our share, and $300 million in preferred equity with a fixed dividend rate of 8.5%. |
| |
• |
|
Sold 12 consolidated operating shopping centers totaling 2.0 million square feet and seven land parcels generating gross proceeds of $214.4 million. A net gain of $22.1 million was recorded related to these sales.
|
| |
• |
|
Sold 29 unconsolidated joint venture operating shopping centers, totaling 3.8 million square feet, generating gross proceeds of $376.2 million, of which the Company’s pro rata share was $48.6 million. An
aggregate net gain of approximately $26.8 million was recorded related to these asset sales, of which the Company’s pro rata share was $4.2 million. |
| |
• |
|
Included in unconsolidated joint venture sale proceeds is the substantial liquidation of the Company’s interests in two joint ventures as all of the underlying assets owned by the joint ventures were sold.
|
2015 Guidance
| |
• |
|
There has been no change in Operating FFO per share guidance since the initial release on January 7, 2015. The Company continues to estimate Operating FFO for 2015 between $1.20 and $1.25 per diluted share.
|
Non-GAAP Disclosures
FFO is a
supplemental non-GAAP financial measurement used as a standard in the real estate industry and a widely accepted measure of real estate investment trust (“REIT”) performance. Management believes that FFO and Operating FFO provide
additional indicators of the financial performance of a REIT. The Company also believes that FFO and Operating FFO more appropriately measure the core operations of the Company and provide benchmarks to its peer group. Neither FFO nor Operating FFO
represents cash generated from operating activities in accordance with generally accepted accounting principles (“GAAP”), is necessarily indicative of cash available to fund cash needs and should not be considered as an alternative to net
income computed in accordance with GAAP as an indicator of the Company’s operating performance or as an alternative to cash flow as a measure of liquidity.
FFO is defined and calculated by the Company as net income, adjusted to exclude: (i) preferred share dividends, (ii) gains and losses from
disposition of depreciable real estate property, which are presented net of taxes, (iii) impairment charges on depreciable real estate property and related investments, (iv) extraordinary items and (v) certain non-cash items. These
non-cash items principally include real property depreciation and amortization of intangibles, equity income from joint ventures and equity income from non-controlling interests and adding the Company’s proportionate share of FFO from its
unconsolidated joint ventures and non-controlling interests, determined on a consistent basis. The Company calculates Operating FFO by excluding the non-operating charges and gains described below. The Company computes FFO in accordance with the
NAREIT definition. Other real estate companies may calculate FFO and Operating FFO in a different manner. Operating FFO is useful to investors as the Company removes these charges and gains to analyze the results of its operations and assess
performance of the core operating real estate portfolio. A reconciliation of net income (loss) to FFO and Operating FFO is presented herein.
Safe
Harbor
DDR Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods. Although the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking
statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, local conditions such as oversupply of space or a
reduction in demand for real estate in the
area; competition from other available space; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; constructing properties or
expansions that produce a desired yield on investment; our ability to buy or sell assets on commercially reasonable terms; our ability to complete acquisitions or dispositions of assets under contract; our ability to secure equity or debt financing
on commercially acceptable terms or at all; our ability to enter into definitive agreements with regard to our financing and joint venture arrangements or our failure to satisfy conditions to the completion of these arrangements; the success of our
capital recycling strategy; and the finalization of the financial statements for the three-month period ended and year ended December 31, 2014. For additional factors that could cause the results of the Company to differ materially from those
indicated in the forward-looking statements, please refer to the Company’s Form 10-K for the year ended December 31, 2013, as amended. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect
events or circumstances that arise after the date hereof.
About DDR Corp.
DDR is an owner and manager of 415 value-oriented shopping centers representing 118 million square feet in 41 states and Puerto Rico. The Company’s
assets are concentrated in high barrier-to-entry markets with stable populations and high growth potential and its portfolio is actively managed to create long-term shareholder value. DDR is a self-administered and self-managed REIT operating as a
fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol DDR. Additional information about the Company is available at www.ddr.com, as well as on Twitter, LinkedIn and
Facebook.
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 at www.ddr.com.
The Company will hold its quarterly conference call tomorrow, February 12, 2015, at 10:00 a.m.
Eastern Time. To participate, please dial 877.703.6107 (domestic) or 857.244.7306 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the passcode: 16795709. 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.
DDR Corp.
Income Statement: Consolidated Interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ in thousands, except per share |
|
|
|
|
|
|
| |
|
4Q14 |
|
|
4Q13 |
|
|
12M14 |
|
|
12M13 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Minimum rents (1) |
|
$ |
181,081 |
|
|
$ |
165,996 |
|
|
$ |
688,556 |
|
|
$ |
563,098 |
|
| Percentage rent |
|
|
2,459 |
|
|
|
2,591 |
|
|
|
5,231 |
|
|
|
5,650 |
|
| Recoveries |
|
|
59,040 |
|
|
|
56,267 |
|
|
|
230,987 |
|
|
|
186,672 |
|
| Ancillary income |
|
|
5,824 |
|
|
|
7,603 |
|
|
|
24,288 |
|
|
|
28,108 |
|
| Other revenues (2) |
|
|
153 |
|
|
|
242 |
|
|
|
4,706 |
|
|
|
6,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
248,557 |
|
|
|
232,699 |
|
|
|
953,768 |
|
|
|
789,774 |
|
| Expenses (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating and maintenance |
|
|
35,355 |
|
|
|
35,854 |
|
|
|
142,336 |
|
|
|
129,952 |
|
| Real estate taxes |
|
|
34,729 |
|
|
|
33,407 |
|
|
|
138,771 |
|
|
|
109,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70,084 |
|
|
|
69,261 |
|
|
|
281,107 |
|
|
|
239,179 |
|
|
|
|
|
|
| Net operating income |
|
|
178,473 |
|
|
|
163,438 |
|
|
|
672,661 |
|
|
|
550,595 |
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fee income |
|
|
8,211 |
|
|
|
8,966 |
|
|
|
31,907 |
|
|
|
40,161 |
|
| Interest income |
|
|
6,989 |
|
|
|
3,173 |
|
|
|
15,927 |
|
|
|
23,541 |
|
| Interest expense (4) |
|
|
(61,014 |
) |
|
|
(59,846 |
) |
|
|
(237,120 |
) |
|
|
(214,370 |
) |
| Depreciation and amortization |
|
|
(106,732 |
) |
|
|
(103,656 |
) |
|
|
(402,825 |
) |
|
|
(296,560 |
) |
| General and administrative (5) |
|
|
(25,606 |
) |
|
|
(20,432 |
) |
|
|
(84,484 |
) |
|
|
(79,556 |
) |
| Other income (expense), net (6) |
|
|
(1,221 |
) |
|
|
(3,121 |
) |
|
|
(12,262 |
) |
|
|
(6,408 |
) |
| Impairment charges (7) |
|
|
(11,055 |
) |
|
|
(442 |
) |
|
|
(29,175 |
) |
|
|
(19,044 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss before earnings from equity method investments and other items |
|
|
(11,955 |
) |
|
|
(11,920 |
) |
|
|
(45,371 |
) |
|
|
(1,641 |
) |
| Equity in net income of joint ventures |
|
|
748 |
|
|
|
1,276 |
|
|
|
10,989 |
|
|
|
6,819 |
|
| Impairment of joint venture investments |
|
|
(21,552 |
) |
|
|
(980 |
) |
|
|
(30,652 |
) |
|
|
(980 |
) |
| Gain on sale and change in control of interests, net |
|
|
183 |
|
|
|
18,840 |
|
|
|
87,996 |
|
|
|
19,906 |
|
| Income (loss) from discontinued operations (8) |
|
|
21,471 |
|
|
|
334 |
|
|
|
89,398 |
|
|
|
(31,267 |
) |
| Tax expense |
|
|
(742 |
) |
|
|
(223 |
) |
|
|
(1,855 |
) |
|
|
(2,685 |
) |
| Gain on disposition of real estate, net of tax |
|
|
415 |
|
|
|
120 |
|
|
|
3,060 |
|
|
|
467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income |
|
|
(11,432 |
) |
|
|
7,447 |
|
|
|
113,565 |
|
|
|
(9,381 |
) |
| Non-controlling interests (9) |
|
|
732 |
|
|
|
(237 |
) |
|
|
3,717 |
|
|
|
(794 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income attributable to DDR |
|
|
(10,700 |
) |
|
|
7,210 |
|
|
|
117,282 |
|
|
|
(10,175 |
) |
| Write-off of preferred share original issuance costs |
|
|
0 |
|
|
|
0 |
|
|
|
(1,943 |
) |
|
|
(5,246 |
) |
| Preferred dividends |
|
|
(5,594 |
) |
|
|
(6,608 |
) |
|
|
(24,054 |
) |
|
|
(27,721 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income attributable to Common Shareholders |
|
|
(16,294 |
) |
|
|
602 |
|
|
|
91,285 |
|
|
|
(43,142 |
) |
|
|
|
|
|
| FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income attributable to common shareholders |
|
|
(16,294 |
) |
|
|
602 |
|
|
|
91,285 |
|
|
|
(43,142 |
) |
| Depreciation and amortization of real estate investments |
|
|
105,887 |
|
|
|
107,158 |
|
|
|
410,172 |
|
|
|
314,720 |
|
| Equity in net income of joint ventures |
|
|
(748 |
) |
|
|
(1,276 |
) |
|
|
(10,989 |
) |
|
|
(6,819 |
) |
| Joint ventures’ FFO |
|
|
5,836 |
|
|
|
12,306 |
|
|
|
30,344 |
|
|
|
49,409 |
|
| Non-controlling interests (OP units) |
|
|
223 |
|
|
|
54 |
|
|
|
732 |
|
|
|
215 |
|
| Impairment of depreciable real estate |
|
|
7,555 |
|
|
|
5,361 |
|
|
|
19,412 |
|
|
|
69,597 |
|
| Gain on disposition of depreciable real estate, net |
|
|
(21,565 |
) |
|
|
(4,042 |
) |
|
|
(181,319 |
) |
|
|
(11,459 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO attributable to Common Shareholders |
|
|
80,894 |
|
|
|
120,163 |
|
|
|
359,637 |
|
|
|
372,521 |
|
| Non-operating items, net (10) |
|
|
31,311 |
|
|
|
(15,667 |
) |
|
|
60,756 |
|
|
|
(5,854 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating FFO |
|
$ |
112,205 |
|
|
$ |
104,496 |
|
|
$ |
420,393 |
|
|
$ |
366,667 |
|
|
|
|
|
|
| FFO per share – Diluted (11) |
|
$ |
0.22 |
|
|
$ |
0.33 |
|
|
$ |
1.00 |
|
|
$ |
1.13 |
|
| Operating FFO per share – Diluted (11) |
|
$ |
0.31 |
|
|
$ |
0.29 |
|
|
$ |
1.16 |
|
|
$ |
1.11 |
|
DDR Corp.
Balance Sheet: Consolidated Interests
|
|
|
|
|
|
|
|
|
| $ in thousands |
|
At Year End |
|
| |
|
4Q14 |
|
|
4Q13 |
|
| Assets: |
|
|
|
|
|
|
|
|
| Land |
|
$ |
2,208,468 |
|
|
$ |
2,209,970 |
|
| Buildings |
|
|
7,087,040 |
|
|
|
6,949,440 |
|
| Fixtures and tenant improvements |
|
|
645,035 |
|
|
|
599,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
9,940,543 |
|
|
|
9,758,631 |
|
| Less: Accumulated depreciation |
|
|
(1,909,585 |
) |
|
|
(1,823,199 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
8,030,958 |
|
|
|
7,935,432 |
|
| Land held for development and construction in progress |
|
|
395,242 |
|
|
|
452,980 |
|
| Real estate held for sale, net |
|
|
0 |
|
|
|
12,670 |
|
|
|
|
|
|
|
|
|
|
| Real estate, net |
|
|
8,426,200 |
|
|
|
8,401,082 |
|
|
|
|
| Investments in and advances to joint ventures |
|
|
414,848 |
|
|
|
448,008 |
|
| Cash |
|
|
20,937 |
|
|
|
86,664 |
|
| Restricted cash |
|
|
11,375 |
|
|
|
33,476 |
|
| Notes receivable, net |
|
|
56,245 |
|
|
|
78,338 |
|
| Receivables, including straight-line rent, net |
|
|
132,661 |
|
|
|
129,513 |
|
| Other assets, net (12) |
|
|
479,629 |
|
|
|
515,992 |
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
|
9,541,895 |
|
|
|
9,693,073 |
|
|
|
|
| Liabilities and Equity: |
|
|
|
|
|
|
|
|
| Revolving credit facilities |
|
|
29,009 |
|
|
|
29,133 |
|
| Unsecured debt |
|
|
2,765,893 |
|
|
|
2,754,120 |
|
| Unsecured term loan |
|
|
350,000 |
|
|
|
350,000 |
|
| Mortgage and other secured debt |
|
|
2,089,805 |
|
|
|
2,161,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,234,707 |
|
|
|
5,294,674 |
|
| Dividends payable |
|
|
61,468 |
|
|
|
55,107 |
|
| Other liabilities (13) |
|
|
448,192 |
|
|
|
415,413 |
|
|
|
|
|
|
|
|
|
|
| Total Liabilities |
|
|
5,744,367 |
|
|
|
5,765,194 |
|
|
|
|
| Preferred shares |
|
|
350,000 |
|
|
|
405,000 |
|
| Common shares |
|
|
36,071 |
|
|
|
35,938 |
|
| Paid-in-capital |
|
|
5,438,778 |
|
|
|
5,417,363 |
|
| Accumulated distributions in excess of net income |
|
|
(2,047,212 |
) |
|
|
(1,915,638 |
) |
| Deferred compensation obligation |
|
|
16,609 |
|
|
|
16,702 |
|
| Accumulated other comprehensive income |
|
|
(7,352 |
) |
|
|
(36,493 |
) |
| Less: Common shares in treasury at cost |
|
|
(16,646 |
) |
|
|
(18,211 |
) |
| Non-controlling interests |
|
|
27,280 |
|
|
|
23,218 |
|
|
|
|
|
|
|
|
|
|
| Total Equity |
|
|
3,797,528 |
|
|
|
3,927,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Liabilities and Equity |
|
$ |
9,541,895 |
|
|
$ |
9,693,073 |
|
DDR Corp.
Income Statement: Unconsolidated Interests at 100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ in thousands |
|
|
|
|
|
|
| |
|
4Q14 |
|
|
4Q13 |
|
|
12M14 |
|
|
12M13 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Minimum rents |
|
$ |
99,018 |
|
|
$ |
102,346 |
|
|
$ |
359,140 |
|
|
$ |
459,666 |
|
| Percentage rent |
|
|
858 |
|
|
|
860 |
|
|
|
1,909 |
|
|
|
2,234 |
|
| Recoveries |
|
|
27,256 |
|
|
|
20,566 |
|
|
|
91,917 |
|
|
|
106,642 |
|
| Other revenues |
|
|
1,700 |
|
|
|
18,981 |
|
|
|
32,798 |
|
|
|
67,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
128,832 |
|
|
|
142,753 |
|
|
|
485,764 |
|
|
|
635,933 |
|
| Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating and maintenance |
|
|
28,810 |
|
|
|
31,757 |
|
|
|
112,800 |
|
|
|
142,910 |
|
| Real estate taxes |
|
|
17,040 |
|
|
|
12,275 |
|
|
|
54,891 |
|
|
|
67,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45,850 |
|
|
|
44,032 |
|
|
|
167,691 |
|
|
|
210,829 |
|
|
|
|
|
|
| Net operating income |
|
|
82,982 |
|
|
|
98,721 |
|
|
|
318,073 |
|
|
|
425,104 |
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense |
|
|
(42,306 |
) |
|
|
(47,053 |
) |
|
|
(171,803 |
) |
|
|
(204,893 |
) |
| Depreciation and amortization |
|
|
(44,485 |
) |
|
|
(41,523 |
) |
|
|
(151,651 |
) |
|
|
(201,021 |
) |
| Impairment charges |
|
|
(20,983 |
) |
|
|
(643 |
) |
|
|
(21,583 |
) |
|
|
(43,913 |
) |
| Tax expense |
|
|
0 |
|
|
|
(7,254 |
) |
|
|
(6,565 |
) |
|
|
(27,553 |
) |
| Other expense, net |
|
|
(15,285 |
) |
|
|
(41 |
) |
|
|
(18,249 |
) |
|
|
(2,298 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(123,059 |
) |
|
|
(96,514 |
) |
|
|
(369,851 |
) |
|
|
(479,678 |
) |
| (Loss) income from continuing operations |
|
|
(40,077 |
) |
|
|
2,207 |
|
|
|
(51,778 |
) |
|
|
(54,574 |
) |
| Income (loss) from discontinued operations |
|
|
3,151 |
|
|
|
(28,289 |
) |
|
|
(13,955 |
) |
|
|
(65,951 |
) |
| Gain (loss) on disposition of discontinued operations, net |
|
|
26,797 |
|
|
|
7,944 |
|
|
|
55,020 |
|
|
|
(19,190 |
) |
| Gain on disposition of real estate, net |
|
|
6,283 |
|
|
|
0 |
|
|
|
10,116 |
|
|
|
794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
(3,846 |
) |
|
|
(18,138 |
) |
|
|
(597 |
) |
|
|
(138,921 |
) |
| Non-controlling interests |
|
|
0 |
|
|
|
(6,290 |
) |
|
|
(2,022 |
) |
|
|
(26,005 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss attributable to unconsolidated joint ventures |
|
|
(3,846 |
) |
|
|
(24,428 |
) |
|
|
(2,619 |
) |
|
|
(164,926 |
) |
| Depreciation and amortization of real estate investments |
|
|
46,647 |
|
|
|
45,726 |
|
|
|
164,668 |
|
|
|
226,635 |
|
| Impairment of depreciable real estate |
|
|
20,983 |
|
|
|
26,729 |
|
|
|
32,675 |
|
|
|
93,166 |
|
| (Gain) loss on disposition of depreciable real estate, net |
|
|
(33,080 |
) |
|
|
(7,944 |
) |
|
|
(65,045 |
) |
|
|
18,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO |
|
|
30,704 |
|
|
|
40,083 |
|
|
|
129,679 |
|
|
|
173,586 |
|
| FFO at DDR’s ownership interests |
|
|
5,836 |
|
|
|
12,306 |
|
|
|
30,344 |
|
|
|
49,409 |
|
| Operating FFO at DDR’s ownership interests |
|
|
6,771 |
|
|
|
12,087 |
|
|
|
31,414 |
|
|
|
48,500 |
|
|
|
|
|
|
| Net (loss) income at DDR’s ownership interests |
|
|
(264 |
) |
|
|
(1,014 |
) |
|
|
9,218 |
|
|
|
3,314 |
|
| Basis differences |
|
|
1,012 |
|
|
|
2,290 |
|
|
|
1,771 |
|
|
|
3,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity in net income of joint ventures |
|
$ |
748 |
|
|
$ |
1,276 |
|
|
$ |
10,989 |
|
|
$ |
6,819 |
|
DDR Corp.
Balance Sheet: Unconsolidated Interests at 100%
|
|
|
|
|
|
|
|
|
| $ in thousands |
|
At Year End |
|
| |
|
4Q14 |
|
|
4Q13 |
|
| Assets: |
|
|
|
|
|
|
|
|
| Land |
|
$ |
1,439,849 |
|
|
$ |
1,275,232 |
|
| Buildings |
|
|
3,854,585 |
|
|
|
3,940,806 |
|
| Fixtures and tenant improvements |
|
|
200,696 |
|
|
|
266,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,495,130 |
|
|
|
5,482,889 |
|
| Less: Accumulated depreciation |
|
|
(773,256 |
) |
|
|
(839,867 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
4,721,874 |
|
|
|
4,643,022 |
|
| Land held for development and construction in progress |
|
|
55,698 |
|
|
|
116,088 |
|
|
|
|
|
|
|
|
|
|
| Real estate, net |
|
|
4,777,572 |
|
|
|
4,759,110 |
|
| Cash and restricted cash |
|
|
100,812 |
|
|
|
282,866 |
|
| Receivables, including straight-line rent, net |
|
|
80,508 |
|
|
|
101,003 |
|
| Other assets, net |
|
|
394,751 |
|
|
|
196,615 |
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
|
5,353,643 |
|
|
|
5,339,594 |
|
|
|
|
| Liabilities and Equity: |
|
|
|
|
|
|
|
|
| Mortgage debt |
|
|
3,552,764 |
|
|
|
3,282,643 |
|
| Notes and accrued interest payable to DDR |
|
|
144,831 |
|
|
|
127,679 |
|
| Other liabilities |
|
|
276,998 |
|
|
|
245,368 |
|
|
|
|
|
|
|
|
|
|
| Total Liabilities |
|
|
3,974,593 |
|
|
|
3,655,690 |
|
|
|
|
| Redeemable preferred equity |
|
|
305,310 |
|
|
|
71,771 |
|
| Accumulated equity |
|
|
1,073,740 |
|
|
|
1,612,133 |
|
|
|
|
|
|
|
|
|
|
| Total Liabilities and Equity |
|
$ |
5,353,643 |
|
|
$ |
5,339,594 |
|
DDR Corp.
Financial Statements: Footnotes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ in millions, except per share |
|
|
|
|
|
|
|
|
|
| Includes discontinued operations |
|
4Q14 |
|
|
4Q13 |
|
|
12M14 |
|
|
12M13 |
|
|
|
|
|
|
|
| (1) |
|
Minimum rents: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line rent, net |
|
$ |
1.9 |
|
|
$ |
1.4 |
|
|
$ |
5.9 |
|
|
$ |
5.6 |
|
|
|
Below-market rent, net |
|
|
0.4 |
|
|
|
(0.1 |
) |
|
|
1.3 |
|
|
|
0.1 |
|
|
|
Ground lease revenue |
|
|
9.2 |
|
|
|
8.4 |
|
|
|
33.7 |
|
|
|
26.5 |
|
|
|
|
|
|
|
| (2) |
|
Other revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease termination fees |
|
|
0.0 |
|
|
|
0.1 |
|
|
|
4.1 |
|
|
|
6.3 |
|
|
|
Other miscellaneous |
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.6 |
|
|
|
0.6 |
|
|
|
|
|
|
|
| (3) |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recoverable expenses (excludes discontinued operations) |
|
|
(64.6 |
) |
|
|
(60.6 |
) |
|
|
(253.9 |
) |
|
|
(205.7 |
) |
|
|
Non-recoverable expenses (excludes discontinued operations) |
|
|
(5.5 |
) |
|
|
(8.6 |
) |
|
|
(27.2 |
) |
|
|
(33.5 |
) |
|
|
Straight-line ground rent expense |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
|
|
(1.1 |
) |
|
|
(1.2 |
) |
|
|
Expensed costs of suspended developments |
|
|
(0.5 |
) |
|
|
(0.3 |
) |
|
|
(1.3 |
) |
|
|
(2.0 |
) |
|
|
|
|
|
|
| (4) |
|
Non-cash interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible debt accretion |
|
|
(2.9 |
) |
|
|
(2.8 |
) |
|
|
(11.4 |
) |
|
|
(10.8 |
) |
|
|
Debt fair value amortization |
|
|
5.4 |
|
|
|
4.2 |
|
|
|
17.9 |
|
|
|
6.7 |
|
|
|
Loan cost amortization |
|
|
(2.5 |
) |
|
|
(3.1 |
) |
|
|
(12.0 |
) |
|
|
(12.1 |
) |
|
|
Interest expense (capitalized) |
|
|
2.0 |
|
|
|
2.0 |
|
|
|
8.7 |
|
|
|
8.8 |
|
|
|
|
|
|
|
| (5) |
|
General and administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Executive separation charges |
|
|
(5.4 |
) |
|
|
0.0 |
|
|
|
(5.6 |
) |
|
|
(0.7 |
) |
|
|
Stock compensation expenses |
|
|
(1.9 |
) |
|
|
(1.8 |
) |
|
|
(7.7 |
) |
|
|
(7.4 |
) |
|
|
Internal leasing expenses |
|
|
(1.6 |
) |
|
|
(1.7 |
) |
|
|
(7.1 |
) |
|
|
(7.5 |
) |
|
|
Construction administrative costs (capitalized) |
|
|
2.5 |
|
|
|
3.1 |
|
|
|
9.9 |
|
|
|
10.0 |
|
|
|
|
|
|
|
| (6) |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions and other, net |
|
|
(0.3 |
) |
|
|
(2.3 |
) |
|
|
(9.2 |
) |
|
|
(4.7 |
) |
|
|
Litigation expenses |
|
|
(1.0 |
) |
|
|
(1.0 |
) |
|
|
(3.2 |
) |
|
|
(2.2 |
) |
|
|
Note receivable reserve |
|
|
(0.5 |
) |
|
|
(0.0 |
) |
|
|
(0.5 |
) |
|
|
(0.0 |
) |
|
|
Debt extinguishment gain/(loss), net |
|
|
0.6 |
|
|
|
0.0 |
|
|
|
0.6 |
|
|
|
0.3 |
|
|
|
|
|
|
|
| (7) |
|
Impairment charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land held for development |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
13.2 |
|
|
|
0.0 |
|
|
|
Undeveloped land |
|
|
3.5 |
|
|
|
0.4 |
|
|
|
5.4 |
|
|
|
3.0 |
|
|
|
Assets marketed for sale |
|
|
7.6 |
|
|
|
0.0 |
|
|
|
10.6 |
|
|
|
16.0 |
|
DDR Corp.
Financial Statements: Footnotes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ in millions, except per share |
|
|
|
|
|
|
| Includes discontinued operations |
|
4Q14 |
|
|
4Q13 |
|
|
12M14 |
|
|
12M13 |
|
|
|
|
|
|
|
| (8) |
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
3.2 |
|
|
$ |
17.5 |
|
|
$ |
39.5 |
|
|
$ |
81.3 |
|
|
|
Expenses |
|
|
(2.0 |
) |
|
|
(9.5 |
) |
|
|
(21.0 |
) |
|
|
(42.7 |
) |
|
|
Impairments |
|
|
(0.0 |
) |
|
|
(5.4 |
) |
|
|
(8.9 |
) |
|
|
(53.6 |
) |
|
|
Depreciation |
|
|
(1.4 |
) |
|
|
(6.3 |
) |
|
|
(16.2 |
) |
|
|
(27.6 |
) |
|
|
Gain on disposition of real estate, net |
|
|
21.7 |
|
|
|
4.0 |
|
|
|
96.0 |
|
|
|
11.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
21.5 |
|
|
|
0.3 |
|
|
|
89.4 |
|
|
|
(31.3 |
) |
|
|
|
|
|
|
| (9) |
|
Non-controlling interests: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO attributable to non-controlling interests |
|
|
0.9 |
|
|
|
(0.3 |
) |
|
|
2.8 |
|
|
|
(1.0 |
) |
|
|
Operating FFO attributable to non-controlling interests |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
(0.8 |
) |
|
|
(1.0 |
) |
|
|
|
|
|
|
| (10) |
|
Non-operating items excluded from Operating FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash impairment charges – non-depreciable assets |
|
|
25.0 |
|
|
|
1.4 |
|
|
|
49.3 |
|
|
|
4.0 |
|
|
|
Executive separation charges |
|
|
5.4 |
|
|
|
0.0 |
|
|
|
5.6 |
|
|
|
0.7 |
|
|
|
Transaction, litigation, debt extinguishment, other, net |
|
|
1.8 |
|
|
|
2.0 |
|
|
|
13.7 |
|
|
|
5.4 |
|
|
|
Joint ventures – transaction, currency, other |
|
|
0.9 |
|
|
|
(0.2 |
) |
|
|
1.1 |
|
|
|
(0.9 |
) |
|
|
Non-cash gain on sale of non-depreciable real estate, net of non-controlling interests and foreign currency |
|
|
(1.5 |
) |
|
|
(0.1 |
) |
|
|
(6.5 |
) |
|
|
(0.3 |
) |
|
|
Non-cash gain on sale and change in control of interests, net |
|
|
(0.3 |
) |
|
|
(18.8 |
) |
|
|
(4.3 |
) |
|
|
(19.9 |
) |
|
|
Non-cash write-off of preferred share original issuance costs |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
1.9 |
|
|
|
5.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.3 |
|
|
|
(15.7 |
) |
|
|
60.8 |
|
|
|
(5.8 |
) |
| (11) |
|
Outstanding per share information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (at quarter end) |
|
|
360.7 |
|
|
|
359.2 |
|
|
|
360.7 |
|
|
|
359.2 |
|
|
|
OP units (at quarter end) |
|
|
1.4 |
|
|
|
0.4 |
|
|
|
1.4 |
|
|
|
0.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shares and units (at quarter end) |
|
|
362.1 |
|
|
|
359.6 |
|
|
|
362.1 |
|
|
|
359.6 |
|
|
|
Weighted average shares and units – Basic & Diluted – EPS |
|
|
359.0 |
|
|
|
356.9 |
|
|
|
358.1 |
|
|
|
326.4 |
|
|
|
Weighted average shares and units – Basic – FFO & OFFO |
|
|
361.9 |
|
|
|
359.3 |
|
|
|
360.6 |
|
|
|
328.9 |
|
|
|
Assumed conversion of dilutive securities |
|
|
0.5 |
|
|
|
0.4 |
|
|
|
0.5 |
|
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares and units – Diluted – FFO & OFFO |
|
|
362.4 |
|
|
|
359.7 |
|
|
|
361.1 |
|
|
|
329.4 |
|
|
|
Earnings per common share – Basic & Diluted |
|
$ |
(0.05 |
) |
|
$ |
0.00 |
|
|
$ |
0.25 |
|
|
$ |
(0.14 |
) |
|
|
FFO per share – Basic |
|
$ |
0.22 |
|
|
$ |
0.33 |
|
|
$ |
1.00 |
|
|
$ |
1.13 |
|
|
|
FFO per share – Diluted |
|
$ |
0.22 |
|
|
$ |
0.33 |
|
|
$ |
1.00 |
|
|
$ |
1.13 |
|
|
|
Operating FFO per share – Diluted |
|
$ |
0.31 |
|
|
$ |
0.29 |
|
|
$ |
1.16 |
|
|
$ |
1.11 |
|
|
|
Common stock dividends declared, per share |
|
$ |
0.155 |
|
|
$ |
0.135 |
|
|
$ |
0.62 |
|
|
$ |
0.54 |
|
|
|
|
|
|
|
| (12) |
|
Intangible assets, net (at year end) |
|
|
|
|
|
|
|
|
|
|
389.2 |
|
|
|
409.6 |
|
|
|
|
|
|
|
| (13) |
|
Below-market leases, net (at year end) |
|
|
|
|
|
|
|
|
|
|
139.3 |
|
|
|
123.9 |
|
DDR Corp.
Financial Statements: Footnotes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
4Q14 |
|
|
4Q13 |
|
|
12M14 |
|
|
12M13 |
|
|
|
|
|
|
| Additional financial information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (DDR share): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leasing |
|
$ |
8.5 |
|
|
$ |
10.5 |
|
|
$ |
39.0 |
|
|
$ |
40.0 |
|
|
|
Maintenance – total |
|
|
5.2 |
|
|
|
3.2 |
|
|
|
14.4 |
|
|
|
8.6 |
|
|
|
Maintenance PSF of owned GLA – non reimbursable |
|
|
|
|
|
|
|
|
|
|
0.16 |
|
|
|
0.11 |
|
|
|
|
|
|
|
|
|
Miscellaneous (DDR share): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Est. value of land owned adjacent to existing centers (at 12/31/14) |
|
|
|
|
|
|
|
|
|
|
23.0 |
|
|
|
|
|
|
|
Cost basis of headquarters (non-income producing at 12/31/14) |
|
|
|
|
|
|
|
|
|
|
40.0 |
|
|
|
|
|
Exhibit 99.2
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 - 14 |
|
| Top 50 Tenants |
|
|
15 |
|
|
|
| Investments |
|
|
|
|
| Transactions |
|
|
16 - 17 |
|
| Developments / Redevelopments |
|
|
18 |
|
|
|
| Joint Ventures |
|
|
|
|
| Summary |
|
|
19 |
|
| Income Statement |
|
|
20 |
|
| Balance Sheet |
|
|
21 |
|
|
|
| Balance Sheet Summary |
|
|
|
|
| Capital Structure |
|
|
22 |
|
| Debt / EBITDA |
|
|
23 |
|
| Debt Summary |
|
|
24 |
|
| Consolidated Debt Detail |
|
|
25 - 27 |
|
| Unconsolidated Debt Detail |
|
|
28 - 29 |
|
|
|
| Analyst Information and Reporting Policies |
|
|
|
|
| Analyst Coverage |
|
|
30 |
|
| Notable Policies |
|
|
31 - 32 |
|
Property list available online at http://www.ddr.com
DDR considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectations for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based
upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of
important factors that could cause the results of the Company to differ materially from those indicated by such forward-looking statements, including among other factors, local conditions such as oversupply of space or a reduction in demand for real
estate in the area; competition from other available space; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; constructing properties or expansions that produce a desired yield on
investment; ability to sell assets on commercially reasonable terms; ability to secure equity or debt financing on commercially acceptable terms or at all; or ability to enter into definitive agreements with regard to our financing and joint venture
arrangements or our failure to satisfy conditions to the completion of these arrangements; and the finalization of the financial statements for the three month period ended December 31, 2014. For additional factors that could cause the results
of the Company to differ materially from these indicated in the forward-looking statements, please refer to the Company’s Form 10-K for the year ended December 31, 2013, as amended. The Company undertakes no obligation to publicly revise
these forward-looking statements to reflect events or circumstances that arise after the date hereof.
For immediate release:
|
|
|
| Media Contact: |
|
Investor Contact: |
| Matt Schuler |
|
Matt Lougee |
| mschuler@ddr.com |
|
mlougee@ddr.com |
| 216.755.5500 |
|
216.755.5500 |
DDR REPORTS OPERATING FFO PER DILUTED SHARE OF $1.16
FOR THE YEAR ENDED DECEMBER 31, 2014
BEACHWOOD, OHIO, February 11, 2015 – DDR Corp. (NYSE: DDR) today announced operating results for the fourth quarter and year ended
December 31, 2014.
Significant Fourth Quarter Activity
| |
• |
|
Generated Operating FFO of $0.31 per diluted share, a 6.9% increase from the fourth quarter of 2013 |
| |
• |
|
Executed 327 new leases and renewals for 1.8 million square feet |
| |
• |
|
Increased the U.S. portfolio leased rate by 10 basis points to 95.7% from 95.6% at September 30, 2014 |
| |
• |
|
Generated new leasing spreads of 25.0% on a pro rata basis, and renewal leasing spreads of 7.2% on a pro rata basis |
| |
• |
|
Generated same store net operating income growth of 3.0% on a pro rata basis compared to the prior year |
| |
• |
|
Closed on a new unconsolidated joint venture with Blackstone that acquired a portfolio of 70 shopping centers with a total cost of $1.93 billion |
| |
• |
|
Acquired sole ownership of one power center, from an existing joint venture, for $15 million at DDR’s share |
| |
• |
|
Liquidated two joint ventures containing 23 assets |
| |
• |
|
Sold $591 million of assets; DDR’s pro rata gross proceeds were $258 million |
| |
• |
|
Issued $500 million, 3.625% senior unsecured notes due February 2025 in January 2015 |
2014 Year-end
Highlights
| |
• |
|
Generated Operating FFO of $1.16 per diluted share for the full year 2014, an increase of 4.5% compared to 2013 |
| |
• |
|
Executed 1,411 new leases and renewals for 10.6 million square feet in 2014 |
| |
• |
|
Increased the U.S. portfolio leased rate by 70 basis points from 95.0% at December 31, 2013 |
| |
• |
|
Generated new leasing spreads for the full year 2014 of 22.2% on a pro rata basis, and renewal leasing spreads of 7.7% on a pro rata basis. |
“We are pleased to announce another quarter of strong results and we remain confident that we are well-positioned and excited about the opportunity
ahead,” commented David J. Oakes, president and chief executive officer of DDR.
Financial Highlights
| |
• |
|
Fourth quarter operating funds from operations attributable to common shareholders (“Operating FFO”) increased $7.7 million to $112.2 million, or $0.31 per diluted share, compared to $104.5 million, or $0.29
per diluted share, for the prior-year comparable period. |
| |
• |
|
Operating FFO for the year ended December 31, 2014, increased to $420.4 million, or $1.16 per diluted share, compared to $366.7 million or $1.11 per diluted share, for the prior year. |
| |
• |
|
Fourth quarter net loss attributable to common shareholders was $16.3 million, or $0.05 per diluted share, which compares to net income of $0.6 million, or $0.00 per diluted share, for the prior-year comparable period.
|
| |
• |
|
Net income attributable to common shareholders for the year ended December 31, 2014, was $91.3 million, or $0.25 per diluted share, which compares to net loss of $43.1 million or $0.14 per diluted share, for the
prior year. |
1
Significant Fourth Quarter and Year-End Operating Activity
| |
• |
|
Executed 576 new leases totaling 2.9 million square feet at positive spreads of 22.2% on a pro rata basis, of which 140 new leases aggregating 0.6 million square feet at positive spreads of 25.0% on a pro rata
basis were executed in the fourth quarter |
| |
• |
|
Executed 835 renewal leases totaling 7.7 million square feet at positive spreads of 7.7% on a pro rata basis, of which 187 renewal leases totaling 1.2 million square feet at positive spreads of 7.2% on a pro
rata basis were executed in the fourth quarter |
| |
• |
|
The U.S. annualized base rent per occupied square foot was $13.91 at December 31, 2014 as compared to $13.35 at December 31, 2013, and increase of 4.2%. |
Significant Fourth Quarter Transactional Activity
| |
• |
|
In October, acquired a portfolio of 70 shopping centers with joint venture partner, Blackstone, for $1.93 billion or $376 million at the Company’s share. The Company’s investment includes $20 million of common
equity, $62 million of newly financed and debt assumed at our share, and $300 million in preferred equity with a fixed dividend rate of 8.5%. |
| |
• |
|
Sold 12 consolidated operating shopping centers totaling 2.0 million square feet and seven land parcels generating gross proceeds of $214.4 million. A net gain of $22.1 million was recorded related to these sales.
|
| |
• |
|
Sold 29 unconsolidated joint venture operating shopping centers, totaling 3.8 million square feet, generating gross proceeds of $376.2 million, of which the Company’s pro rata share was $48.6 million. An
aggregate net gain of approximately $26.8 million was recorded related to these asset sales, of which the Company’s pro rata share was $4.2 million. |
| |
• |
|
Included in unconsolidated joint venture sale proceeds is the substantial liquidation of the Company’s interests in two joint ventures as all of the underlying assets owned by the joint ventures were sold.
|
2015 Guidance
| |
• |
|
There has been no change in Operating FFO per share guidance since the initial release on January 7, 2015. The Company continues to estimate Operating FFO for 2015 between $1.20 and $1.25 per diluted share.
|
Non-GAAP Disclosures
FFO is a
supplemental non-GAAP financial measurement used as a standard in the real estate industry and a widely accepted measure of real estate investment trust (“REIT”) performance. Management believes that FFO and Operating FFO provide
additional indicators of the financial performance of a REIT. The Company also believes that FFO and Operating FFO more appropriately measure the core operations of the Company and provide benchmarks to its peer group. Neither FFO nor Operating FFO
represents cash generated from operating activities in accordance with generally accepted accounting principles (“GAAP”), is necessarily indicative of cash available to fund cash needs and should not be considered as an alternative to net
income computed in accordance with GAAP as an indicator of the Company’s operating performance or as an alternative to cash flow as a measure of liquidity.
FFO is defined and calculated by the Company as net income, adjusted to exclude: (i) preferred share dividends, (ii) gains and losses from
disposition of depreciable real estate property, which are presented net of taxes, (iii) impairment charges on depreciable real estate property and related investments, (iv) extraordinary items and (v) certain non-cash items. These
non-cash items principally include real property depreciation and amortization of intangibles, equity income from joint ventures and equity income from non-controlling interests and adding the Company’s proportionate share of FFO from its
unconsolidated joint ventures and non-controlling interests, determined on a consistent basis. The Company calculates Operating FFO by excluding the non-operating charges and gains described below. The Company computes FFO in accordance with the
NAREIT definition. Other real estate companies may calculate FFO and Operating FFO in a different manner. Operating FFO is useful to investors as the Company removes these charges and gains to analyze the results of its operations and assess
performance of the core operating real estate portfolio. A reconciliation of net income (loss) to FFO and Operating FFO is presented herein.
Safe
Harbor
DDR Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods. Although the Company believes that the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking
statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, local conditions such as oversupply of space or a
reduction in demand for real estate in the
2
area; competition from other available space; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; constructing properties or
expansions that produce a desired yield on investment; our ability to buy or sell assets on commercially reasonable terms; our ability to complete acquisitions or dispositions of assets under contract; our ability to secure equity or debt financing
on commercially acceptable terms or at all; our ability to enter into definitive agreements with regard to our financing and joint venture arrangements or our failure to satisfy conditions to the completion of these arrangements; the success of our
capital recycling strategy; and the finalization of the financial statements for the three-month period ended and year ended December 31, 2014. For additional factors that could cause the results of the Company to differ materially from those
indicated in the forward-looking statements, please refer to the Company’s Form 10-K for the year ended December 31, 2013, as amended. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect
events or circumstances that arise after the date hereof.
About DDR Corp.
DDR is an owner and manager of 415 value-oriented shopping centers representing 118 million square feet in 41 states and Puerto Rico. The Company’s
assets are concentrated in high barrier-to-entry markets with stable populations and high growth potential and its portfolio is actively managed to create long-term shareholder value. DDR is a self-administered and self-managed REIT operating as a
fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol DDR. Additional information about the Company is available at www.ddr.com, as well as on Twitter, LinkedIn and
Facebook.
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 at www.ddr.com.
The Company will hold its quarterly conference call tomorrow, February 12, 2015, at 10:00 a.m.
Eastern Time. To participate, please dial 877.703.6107 (domestic) or 857.244.7306 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the passcode: 16795709. 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.
3
DDR Corp.
Income Statement: Consolidated Interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ in thousands, except per share |
|
|
|
|
|
|
| |
|
4Q14 |
|
|
4Q13 |
|
|
12M14 |
|
|
12M13 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Minimum rents (1) |
|
$ |
181,081 |
|
|
$ |
165,996 |
|
|
$ |
688,556 |
|
|
$ |
563,098 |
|
| Percentage rent |
|
|
2,459 |
|
|
|
2,591 |
|
|
|
5,231 |
|
|
|
5,650 |
|
| Recoveries |
|
|
59,040 |
|
|
|
56,267 |
|
|
|
230,987 |
|
|
|
186,672 |
|
| Ancillary income |
|
|
5,824 |
|
|
|
7,603 |
|
|
|
24,288 |
|
|
|
28,108 |
|
| Other revenues (2) |
|
|
153 |
|
|
|
242 |
|
|
|
4,706 |
|
|
|
6,246 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
248,557 |
|
|
|
232,699 |
|
|
|
953,768 |
|
|
|
789,774 |
|
| Expenses (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating and maintenance |
|
|
35,355 |
|
|
|
35,854 |
|
|
|
142,336 |
|
|
|
129,952 |
|
| Real estate taxes |
|
|
34,729 |
|
|
|
33,407 |
|
|
|
138,771 |
|
|
|
109,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
70,084 |
|
|
|
69,261 |
|
|
|
281,107 |
|
|
|
239,179 |
|
|
|
|
|
|
| Net operating income |
|
|
178,473 |
|
|
|
163,438 |
|
|
|
672,661 |
|
|
|
550,595 |
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fee income |
|
|
8,211 |
|
|
|
8,966 |
|
|
|
31,907 |
|
|
|
40,161 |
|
| Interest income |
|
|
6,989 |
|
|
|
3,173 |
|
|
|
15,927 |
|
|
|
23,541 |
|
| Interest expense (4) |
|
|
(61,014 |
) |
|
|
(59,846 |
) |
|
|
(237,120 |
) |
|
|
(214,370 |
) |
| Depreciation and amortization |
|
|
(106,732 |
) |
|
|
(103,656 |
) |
|
|
(402,825 |
) |
|
|
(296,560 |
) |
| General and administrative (5) |
|
|
(25,606 |
) |
|
|
(20,432 |
) |
|
|
(84,484 |
) |
|
|
(79,556 |
) |
| Other income (expense), net (6) |
|
|
(1,221 |
) |
|
|
(3,121 |
) |
|
|
(12,262 |
) |
|
|
(6,408 |
) |
| Impairment charges (7) |
|
|
(11,055 |
) |
|
|
(442 |
) |
|
|
(29,175 |
) |
|
|
(19,044 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss before earnings from equity method investments and other items |
|
|
(11,955 |
) |
|
|
(11,920 |
) |
|
|
(45,371 |
) |
|
|
(1,641 |
) |
| Equity in net income of joint ventures |
|
|
748 |
|
|
|
1,276 |
|
|
|
10,989 |
|
|
|
6,819 |
|
| Impairment of joint venture investments |
|
|
(21,552 |
) |
|
|
(980 |
) |
|
|
(30,652 |
) |
|
|
(980 |
) |
| Gain on sale and change in control of interests, net |
|
|
183 |
|
|
|
18,840 |
|
|
|
87,996 |
|
|
|
19,906 |
|
| Income (loss) from discontinued operations (8) |
|
|
21,471 |
|
|
|
334 |
|
|
|
89,398 |
|
|
|
(31,267 |
) |
| Tax expense |
|
|
(742 |
) |
|
|
(223 |
) |
|
|
(1,855 |
) |
|
|
(2,685 |
) |
| Gain on disposition of real estate, net of tax |
|
|
415 |
|
|
|
120 |
|
|
|
3,060 |
|
|
|
467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income |
|
|
(11,432 |
) |
|
|
7,447 |
|
|
|
113,565 |
|
|
|
(9,381 |
) |
| Non-controlling interests (9) |
|
|
732 |
|
|
|
(237 |
) |
|
|
3,717 |
|
|
|
(794 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income attributable to DDR |
|
|
(10,700 |
) |
|
|
7,210 |
|
|
|
117,282 |
|
|
|
(10,175 |
) |
| Write-off of preferred share original issuance costs |
|
|
0 |
|
|
|
0 |
|
|
|
(1,943 |
) |
|
|
(5,246 |
) |
| Preferred dividends |
|
|
(5,594 |
) |
|
|
(6,608 |
) |
|
|
(24,054 |
) |
|
|
(27,721 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income attributable to Common Shareholders |
|
|
(16,294 |
) |
|
|
602 |
|
|
|
91,285 |
|
|
|
(43,142 |
) |
|
|
|
|
|
| FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss) income attributable to common shareholders |
|
|
(16,294 |
) |
|
|
602 |
|
|
|
91,285 |
|
|
|
(43,142 |
) |
| Depreciation and amortization of real estate investments |
|
|
105,887 |
|
|
|
107,158 |
|
|
|
410,172 |
|
|
|
314,720 |
|
| Equity in net income of joint ventures |
|
|
(748 |
) |
|
|
(1,276 |
) |
|
|
(10,989 |
) |
|
|
(6,819 |
) |
| Joint ventures’ FFO |
|
|
5,836 |
|
|
|
12,306 |
|
|
|
30,344 |
|
|
|
49,409 |
|
| Non-controlling interests (OP units) |
|
|
223 |
|
|
|
54 |
|
|
|
732 |
|
|
|
215 |
|
| Impairment of depreciable real estate |
|
|
7,555 |
|
|
|
5,361 |
|
|
|
19,412 |
|
|
|
69,597 |
|
| Gain on disposition of depreciable real estate, net |
|
|
(21,565 |
) |
|
|
(4,042 |
) |
|
|
(181,319 |
) |
|
|
(11,459 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO attributable to Common Shareholders |
|
|
80,894 |
|
|
|
120,163 |
|
|
|
359,637 |
|
|
|
372,521 |
|
| Non-operating items, net (10) |
|
|
31,311 |
|
|
|
(15,667 |
) |
|
|
60,756 |
|
|
|
(5,854 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating FFO |
|
$ |
112,205 |
|
|
$ |
104,496 |
|
|
$ |
420,393 |
|
|
$ |
366,667 |
|
|
|
|
|
|
| FFO per share – Diluted (11) |
|
$ |
0.22 |
|
|
$ |
0.33 |
|
|
$ |
1.00 |
|
|
$ |
1.13 |
|
| Operating FFO per share – Diluted (11) |
|
$ |
0.31 |
|
|
$ |
0.29 |
|
|
$ |
1.16 |
|
|
$ |
1.11 |
|
4
DDR Corp.
Balance Sheet: Consolidated Interests
|
|
|
|
|
|
|
|
|
| $ in thousands |
|
At Year End |
|
| |
|
4Q14 |
|
|
4Q13 |
|
| Assets: |
|
|
|
|
|
|
|
|
| Land |
|
$ |
2,208,468 |
|
|
$ |
2,209,970 |
|
| Buildings |
|
|
7,087,040 |
|
|
|
6,949,440 |
|
| Fixtures and tenant improvements |
|
|
645,035 |
|
|
|
599,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
9,940,543 |
|
|
|
9,758,631 |
|
| Less: Accumulated depreciation |
|
|
(1,909,585 |
) |
|
|
(1,823,199 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
8,030,958 |
|
|
|
7,935,432 |
|
| Land held for development and construction in progress |
|
|
395,242 |
|
|
|
452,980 |
|
| Real estate held for sale, net |
|
|
0 |
|
|
|
12,670 |
|
|
|
|
|
|
|
|
|
|
| Real estate, net |
|
|
8,426,200 |
|
|
|
8,401,082 |
|
|
|
|
| Investments in and advances to joint ventures |
|
|
414,848 |
|
|
|
448,008 |
|
| Cash |
|
|
20,937 |
|
|
|
86,664 |
|
| Restricted cash |
|
|
11,375 |
|
|
|
33,476 |
|
| Notes receivable, net |
|
|
56,245 |
|
|
|
78,338 |
|
| Receivables, including straight-line rent, net |
|
|
132,661 |
|
|
|
129,513 |
|
| Other assets, net (12) |
|
|
479,629 |
|
|
|
515,992 |
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
|
9,541,895 |
|
|
|
9,693,073 |
|
|
|
|
| Liabilities and Equity: |
|
|
|
|
|
|
|
|
| Revolving credit facilities |
|
|
29,009 |
|
|
|
29,133 |
|
| Unsecured debt |
|
|
2,765,893 |
|
|
|
2,754,120 |
|
| Unsecured term loan |
|
|
350,000 |
|
|
|
350,000 |
|
| Mortgage and other secured debt |
|
|
2,089,805 |
|
|
|
2,161,421 |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,234,707 |
|
|
|
5,294,674 |
|
| Dividends payable |
|
|
61,468 |
|
|
|
55,107 |
|
| Other liabilities (13) |
|
|
448,192 |
|
|
|
415,413 |
|
|
|
|
|
|
|
|
|
|
| Total Liabilities |
|
|
5,744,367 |
|
|
|
5,765,194 |
|
|
|
|
| Preferred shares |
|
|
350,000 |
|
|
|
405,000 |
|
| Common shares |
|
|
36,071 |
|
|
|
35,938 |
|
| Paid-in-capital |
|
|
5,438,778 |
|
|
|
5,417,363 |
|
| Accumulated distributions in excess of net income |
|
|
(2,047,212 |
) |
|
|
(1,915,638 |
) |
| Deferred compensation obligation |
|
|
16,609 |
|
|
|
16,702 |
|
| Accumulated other comprehensive income |
|
|
(7,352 |
) |
|
|
(36,493 |
) |
| Less: Common shares in treasury at cost |
|
|
(16,646 |
) |
|
|
(18,211 |
) |
| Non-controlling interests |
|
|
27,280 |
|
|
|
23,218 |
|
|
|
|
|
|
|
|
|
|
| Total Equity |
|
|
3,797,528 |
|
|
|
3,927,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Liabilities and Equity |
|
$ |
9,541,895 |
|
|
$ |
9,693,073 |
|
5
DDR Corp.
Income Statement: Unconsolidated Interests at 100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ in thousands |
|
|
|
|
|
|
| |
|
4Q14 |
|
|
4Q13 |
|
|
12M14 |
|
|
12M13 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Minimum rents |
|
$ |
99,018 |
|
|
$ |
102,346 |
|
|
$ |
359,140 |
|
|
$ |
459,666 |
|
| Percentage rent |
|
|
858 |
|
|
|
860 |
|
|
|
1,909 |
|
|
|
2,234 |
|
| Recoveries |
|
|
27,256 |
|
|
|
20,566 |
|
|
|
91,917 |
|
|
|
106,642 |
|
| Other revenues |
|
|
1,700 |
|
|
|
18,981 |
|
|
|
32,798 |
|
|
|
67,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
128,832 |
|
|
|
142,753 |
|
|
|
485,764 |
|
|
|
635,933 |
|
| Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating and maintenance |
|
|
28,810 |
|
|
|
31,757 |
|
|
|
112,800 |
|
|
|
142,910 |
|
| Real estate taxes |
|
|
17,040 |
|
|
|
12,275 |
|
|
|
54,891 |
|
|
|
67,919 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45,850 |
|
|
|
44,032 |
|
|
|
167,691 |
|
|
|
210,829 |
|
|
|
|
|
|
| Net operating income |
|
|
82,982 |
|
|
|
98,721 |
|
|
|
318,073 |
|
|
|
425,104 |
|
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense |
|
|
(42,306 |
) |
|
|
(47,053 |
) |
|
|
(171,803 |
) |
|
|
(204,893 |
) |
| Depreciation and amortization |
|
|
(44,485 |
) |
|
|
(41,523 |
) |
|
|
(151,651 |
) |
|
|
(201,021 |
) |
| Impairment charges |
|
|
(20,983 |
) |
|
|
(643 |
) |
|
|
(21,583 |
) |
|
|
(43,913 |
) |
| Tax expense |
|
|
0 |
|
|
|
(7,254 |
) |
|
|
(6,565 |
) |
|
|
(27,553 |
) |
| Other expense, net |
|
|
(15,285 |
) |
|
|
(41 |
) |
|
|
(18,249 |
) |
|
|
(2,298 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(123,059 |
) |
|
|
(96,514 |
) |
|
|
(369,851 |
) |
|
|
(479,678 |
) |
| (Loss) income from continuing operations |
|
|
(40,077 |
) |
|
|
2,207 |
|
|
|
(51,778 |
) |
|
|
(54,574 |
) |
| Income (loss) from discontinued operations |
|
|
3,151 |
|
|
|
(28,289 |
) |
|
|
(13,955 |
) |
|
|
(65,951 |
) |
| Gain (loss) on disposition of discontinued operations, net |
|
|
26,797 |
|
|
|
7,944 |
|
|
|
55,020 |
|
|
|
(19,190 |
) |
| Gain on disposition of real estate, net |
|
|
6,283 |
|
|
|
0 |
|
|
|
10,116 |
|
|
|
794 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
(3,846 |
) |
|
|
(18,138 |
) |
|
|
(597 |
) |
|
|
(138,921 |
) |
| Non-controlling interests |
|
|
0 |
|
|
|
(6,290 |
) |
|
|
(2,022 |
) |
|
|
(26,005 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss attributable to unconsolidated joint ventures |
|
|
(3,846 |
) |
|
|
(24,428 |
) |
|
|
(2,619 |
) |
|
|
(164,926 |
) |
| Depreciation and amortization of real estate investments |
|
|
46,647 |
|
|
|
45,726 |
|
|
|
164,668 |
|
|
|
226,635 |
|
| Impairment of depreciable real estate |
|
|
20,983 |
|
|
|
26,729 |
|
|
|
32,675 |
|
|
|
93,166 |
|
| (Gain) loss on disposition of depreciable real estate, net |
|
|
(33,080 |
) |
|
|
(7,944 |
) |
|
|
(65,045 |
) |
|
|
18,711 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO |
|
|
30,704 |
|
|
|
40,083 |
|
|
|
129,679 |
|
|
|
173,586 |
|
| FFO at DDR’s ownership interests |
|
|
5,836 |
|
|
|
12,306 |
|
|
|
30,344 |
|
|
|
49,409 |
|
| Operating FFO at DDR’s ownership interests |
|
|
6,771 |
|
|
|
12,087 |
|
|
|
31,414 |
|
|
|
48,500 |
|
|
|
|
|
|
| Net (loss) income at DDR’s ownership interests |
|
|
(264 |
) |
|
|
(1,014 |
) |
|
|
9,218 |
|
|
|
3,314 |
|
| Basis differences |
|
|
1,012 |
|
|
|
2,290 |
|
|
|
1,771 |
|
|
|
3,505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity in net income of joint ventures |
|
$ |
748 |
|
|
$ |
1,276 |
|
|
$ |
10,989 |
|
|
$ |
6,819 |
|
6
DDR Corp.
Balance Sheet: Unconsolidated Interests at 100%
|
|
|
|
|
|
|
|
|
| $ in thousands |
|
At Year End |
|
| |
|
4Q14 |
|
|
4Q13 |
|
| Assets: |
|
|
|
|
|
|
|
|
| Land |
|
$ |
1,439,849 |
|
|
$ |
1,275,232 |
|
| Buildings |
|
|
3,854,585 |
|
|
|
3,940,806 |
|
| Fixtures and tenant improvements |
|
|
200,696 |
|
|
|
266,851 |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,495,130 |
|
|
|
5,482,889 |
|
| Less: Accumulated depreciation |
|
|
(773,256 |
) |
|
|
(839,867 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
4,721,874 |
|
|
|
4,643,022 |
|
| Land held for development and construction in progress |
|
|
55,698 |
|
|
|
116,088 |
|
|
|
|
|
|
|
|
|
|
| Real estate, net |
|
|
4,777,572 |
|
|
|
4,759,110 |
|
| Cash and restricted cash |
|
|
100,812 |
|
|
|
282,866 |
|
| Receivables, including straight-line rent, net |
|
|
80,508 |
|
|
|
101,003 |
|
| Other assets, net |
|
|
394,751 |
|
|
|
196,615 |
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
|
5,353,643 |
|
|
|
5,339,594 |
|
|
|
|
| Liabilities and Equity: |
|
|
|
|
|
|
|
|
| Mortgage debt |
|
|
3,552,764 |
|
|
|
3,282,643 |
|
| Notes and accrued interest payable to DDR |
|
|
144,831 |
|
|
|
127,679 |
|
| Other liabilities |
|
|
276,998 |
|
|
|
245,368 |
|
|
|
|
|
|
|
|
|
|
| Total Liabilities |
|
|
3,974,593 |
|
|
|
3,655,690 |
|
|
|
|
| Redeemable preferred equity |
|
|
305,310 |
|
|
|
71,771 |
|
| Accumulated equity |
|
|
1,073,740 |
|
|
|
1,612,133 |
|
|
|
|
|
|
|
|
|
|
| Total Liabilities and Equity |
|
$ |
5,353,643 |
|
|
$ |
5,339,594 |
|
7
DDR Corp.
Financial Statements: Footnotes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ in millions, except per share |
|
|
|
|
|
|
|
|
|
| Includes discontinued operations |
|
4Q14 |
|
|
4Q13 |
|
|
12M14 |
|
|
12M13 |
|
|
|
|
|
|
|
| (1) |
|
Minimum rents: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line rent, net |
|
$ |
1.9 |
|
|
$ |
1.4 |
|
|
$ |
5.9 |
|
|
$ |
5.6 |
|
|
|
Below-market rent, net |
|
|
0.4 |
|
|
|
(0.1 |
) |
|
|
1.3 |
|
|
|
0.1 |
|
|
|
Ground lease revenue |
|
|
9.2 |
|
|
|
8.4 |
|
|
|
33.7 |
|
|
|
26.5 |
|
|
|
|
|
|
|
| (2) |
|
Other revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease termination fees |
|
|
0.0 |
|
|
|
0.1 |
|
|
|
4.1 |
|
|
|
6.3 |
|
|
|
Other miscellaneous |
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.6 |
|
|
|
0.6 |
|
|
|
|
|
|
|
| (3) |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recoverable expenses (excludes discontinued operations) |
|
|
(64.6 |
) |
|
|
(60.6 |
) |
|
|
(253.9 |
) |
|
|
(205.7 |
) |
|
|
Non-recoverable expenses (excludes discontinued operations) |
|
|
(5.5 |
) |
|
|
(8.6 |
) |
|
|
(27.2 |
) |
|
|
(33.5 |
) |
|
|
Straight-line ground rent expense |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
|
|
(1.1 |
) |
|
|
(1.2 |
) |
|
|
Expensed costs of suspended developments |
|
|
(0.5 |
) |
|
|
(0.3 |
) |
|
|
(1.3 |
) |
|
|
(2.0 |
) |
|
|
|
|
|
|
| (4) |
|
Non-cash interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Convertible debt accretion |
|
|
(2.9 |
) |
|
|
(2.8 |
) |
|
|
(11.4 |
) |
|
|
(10.8 |
) |
|
|
Debt fair value amortization |
|
|
5.4 |
|
|
|
4.2 |
|
|
|
17.9 |
|
|
|
6.7 |
|
|
|
Loan cost amortization |
|
|
(2.5 |
) |
|
|
(3.1 |
) |
|
|
(12.0 |
) |
|
|
(12.1 |
) |
|
|
Interest expense (capitalized) |
|
|
2.0 |
|
|
|
2.0 |
|
|
|
8.7 |
|
|
|
8.8 |
|
|
|
|
|
|
|
| (5) |
|
General and administrative expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Executive separation charges |
|
|
(5.4 |
) |
|
|
0.0 |
|
|
|
(5.6 |
) |
|
|
(0.7 |
) |
|
|
Stock compensation expenses |
|
|
(1.9 |
) |
|
|
(1.8 |
) |
|
|
(7.7 |
) |
|
|
(7.4 |
) |
|
|
Internal leasing expenses |
|
|
(1.6 |
) |
|
|
(1.7 |
) |
|
|
(7.1 |
) |
|
|
(7.5 |
) |
|
|
Construction administrative costs (capitalized) |
|
|
2.5 |
|
|
|
3.1 |
|
|
|
9.9 |
|
|
|
10.0 |
|
|
|
|
|
|
|
| (6) |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions and other, net |
|
|
(0.3 |
) |
|
|
(2.3 |
) |
|
|
(9.2 |
) |
|
|
(4.7 |
) |
|
|
Litigation expenses |
|
|
(1.0 |
) |
|
|
(1.0 |
) |
|
|
(3.2 |
) |
|
|
(2.2 |
) |
|
|
Note receivable reserve |
|
|
(0.5 |
) |
|
|
(0.0 |
) |
|
|
(0.5 |
) |
|
|
(0.0 |
) |
|
|
Debt extinguishment gain/(loss), net |
|
|
0.6 |
|
|
|
0.0 |
|
|
|
0.6 |
|
|
|
0.3 |
|
|
|
|
|
|
|
| (7) |
|
Impairment charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land held for development |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
13.2 |
|
|
|
0.0 |
|
|
|
Undeveloped land |
|
|
3.5 |
|
|
|
0.4 |
|
|
|
5.4 |
|
|
|
3.0 |
|
|
|
Assets marketed for sale |
|
|
7.6 |
|
|
|
0.0 |
|
|
|
10.6 |
|
|
|
16.0 |
|
8
DDR Corp.
Financial Statements: Footnotes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| $ in millions, except per share |
|
|
|
|
|
|
| Includes discontinued operations |
|
4Q14 |
|
|
4Q13 |
|
|
12M14 |
|
|
12M13 |
|
|
|
|
|
|
|
| (8) |
|
Discontinued operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
$ |
3.2 |
|
|
$ |
17.5 |
|
|
$ |
39.5 |
|
|
$ |
81.3 |
|
|
|
Expenses |
|
|
(2.0 |
) |
|
|
(9.5 |
) |
|
|
(21.0 |
) |
|
|
(42.7 |
) |
|
|
Impairments |
|
|
(0.0 |
) |
|
|
(5.4 |
) |
|
|
(8.9 |
) |
|
|
(53.6 |
) |
|
|
Depreciation |
|
|
(1.4 |
) |
|
|
(6.3 |
) |
|
|
(16.2 |
) |
|
|
(27.6 |
) |
|
|
Gain on disposition of real estate, net |
|
|
21.7 |
|
|
|
4.0 |
|
|
|
96.0 |
|
|
|
11.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
21.5 |
|
|
|
0.3 |
|
|
|
89.4 |
|
|
|
(31.3 |
) |
|
|
|
|
|
|
| (9) |
|
Non-controlling interests: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO attributable to non-controlling interests |
|
|
0.9 |
|
|
|
(0.3 |
) |
|
|
2.8 |
|
|
|
(1.0 |
) |
|
|
Operating FFO attributable to non-controlling interests |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
(0.8 |
) |
|
|
(1.0 |
) |
|
|
|
|
|
|
| (10) |
|
Non-operating items excluded from Operating FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash impairment charges – non-depreciable assets |
|
|
25.0 |
|
|
|
1.4 |
|
|
|
49.3 |
|
|
|
4.0 |
|
|
|
Executive separation charges |
|
|
5.4 |
|
|
|
0.0 |
|
|
|
5.6 |
|
|
|
0.7 |
|
|
|
Transaction, litigation, debt extinguishment, other, net |
|
|
1.8 |
|
|
|
2.0 |
|
|
|
13.7 |
|
|
|
5.4 |
|
|
|
Joint ventures – transaction, currency, other |
|
|
0.9 |
|
|
|
(0.2 |
) |
|
|
1.1 |
|
|
|
(0.9 |
) |
|
|
Non-cash gain on sale of non-depreciable real estate, net of non-controlling interests and foreign currency |
|
|
(1.5 |
) |
|
|
(0.1 |
) |
|
|
(6.5 |
) |
|
|
(0.3 |
) |
|
|
Non-cash gain on sale and change in control of interests, net |
|
|
(0.3 |
) |
|
|
(18.8 |
) |
|
|
(4.3 |
) |
|
|
(19.9 |
) |
|
|
Non-cash write-off of preferred share original issuance costs |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
1.9 |
|
|
|
5.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.3 |
|
|
|
(15.7 |
) |
|
|
60.8 |
|
|
|
(5.8 |
) |
| (11) |
|
Outstanding per share information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares (at quarter end) |
|
|
360.7 |
|
|
|
359.2 |
|
|
|
360.7 |
|
|
|
359.2 |
|
|
|
OP units (at quarter end) |
|
|
1.4 |
|
|
|
0.4 |
|
|
|
1.4 |
|
|
|
0.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shares and units (at quarter end) |
|
|
362.1 |
|
|
|
359.6 |
|
|
|
362.1 |
|
|
|
359.6 |
|
|
|
Weighted average shares and units – Basic & Diluted – EPS |
|
|
359.0 |
|
|
|
356.9 |
|
|
|
358.1 |
|
|
|
326.4 |
|
|
|
Weighted average shares and units – Basic – FFO & OFFO |
|
|
361.9 |
|
|
|
359.3 |
|
|
|
360.6 |
|
|
|
328.9 |
|
|
|
Assumed conversion of dilutive securities |
|
|
0.5 |
|
|
|
0.4 |
|
|
|
0.5 |
|
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares and units – Diluted – FFO & OFFO |
|
|
362.4 |
|
|
|
359.7 |
|
|
|
361.1 |
|
|
|
329.4 |
|
|
|
Earnings per common share – Basic & Diluted |
|
$ |
(0.05 |
) |
|
$ |
0.00 |
|
|
$ |
0.25 |
|
|
$ |
(0.14 |
) |
|
|
FFO per share – Basic |
|
$ |
0.22 |
|
|
$ |
0.33 |
|
|
$ |
1.00 |
|
|
$ |
1.13 |
|
|
|
FFO per share – Diluted |
|
$ |
0.22 |
|
|
$ |
0.33 |
|
|
$ |
1.00 |
|
|
$ |
1.13 |
|
|
|
Operating FFO per share – Diluted |
|
$ |
0.31 |
|
|
$ |
0.29 |
|
|
$ |
1.16 |
|
|
$ |
1.11 |
|
|
|
Common stock dividends declared, per share |
|
$ |
0.155 |
|
|
$ |
0.135 |
|
|
$ |
0.62 |
|
|
$ |
0.54 |
|
|
|
|
|
|
|
| (12) |
|
Intangible assets, net (at year end) |
|
|
|
|
|
|
|
|
|
|
389.2 |
|
|
|
409.6 |
|
|
|
|
|
|
|
| (13) |
|
Below-market leases, net (at year end) |
|
|
|
|
|
|
|
|
|
|
139.3 |
|
|
|
123.9 |
|
9
DDR Corp.
Financial Statements: Footnotes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
4Q14 |
|
|
4Q13 |
|
|
12M14 |
|
|
12M13 |
|
|
|
|
|
|
| Additional financial information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures (DDR share): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Leasing |
|
$ |
8.5 |
|
|
$ |
10.5 |
|
|
$ |
39.0 |
|
|
$ |
40.0 |
|
|
|
Maintenance – total |
|
|
5.2 |
|
|
|
3.2 |
|
|
|
14.4 |
|
|
|
8.6 |
|
|
|
Maintenance PSF of owned GLA – non reimbursable |
|
|
|
|
|
|
|
|
|
|
0.16 |
|
|
|
0.11 |
|
|
|
|
|
|
|
|
|
Miscellaneous (DDR share): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Est. value of land owned adjacent to existing centers (at 12/31/14) |
|
|
|
|
|
|
|
|
|
|
23.0 |
|
|
|
|
|
|
|
Cost basis of headquarters (non-income producing at 12/31/14) |
|
|
|
|
|
|
|
|
|
|
40.0 |
|
|
|
|
|
10
DDR Corp.
Portfolio Summary
$, GLA in millions, except PSF
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Total |
|
|
|
|
|
Prime |
|
|
|
|
|
Puerto Rico |
|
|
|
|
| At 100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Centers |
|
|
|
|
|
|
415 |
|
|
|
|
|
|
|
297 |
|
|
|
|
|
|
|
15 |
|
|
|
|
|
| Owned GLA |
|
|
|
|
|
|
80.4 |
|
|
|
|
|
|
|
68.7 |
|
|
|
|
|
|
|
4.1 |
|
|
|
|
|
| Ground Lease GLA |
|
|
|
|
|
|
6.9 |
|
|
|
|
|
|
|
6.1 |
|
|
|
|
|
|
|
0.7 |
|
|
|
|
|
| Additional Unowned |
|
|
|
|
|
|
30.8 |
|
|
|
|
|
|
|
26.5 |
|
|
|
|
|
|
|
0.3 |
|
|
|
|
|
| Base Rent PSF |
|
|
|
|
|
$ |
13.91 |
|
|
|
|
|
|
$ |
14.38 |
|
|
|
|
|
|
$ |
19.62 |
|
|
|
|
|
| Leased Rate |
|
|
|
|
|
|
95.7 |
% |
|
|
|
|
|
|
96.2 |
% |
|
|
|
|
|
|
96.0 |
% |
|
|
|
|
| Commenced Rate |
|
|
|
|
|
|
94.8 |
% |
|
|
|
|
|
|
95.5 |
% |
|
|
|
|
|
|
95.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Metrics at DDR Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Owned GLA |
|
|
|
|
|
|
55.0 |
|
|
|
|
|
|
|
49.6 |
|
|
|
|
|
|
|
4.1 |
|
|
|
|
|
| Ground Lease GLA |
|
|
|
|
|
|
5.1 |
|
|
|
|
|
|
|
4.8 |
|
|
|
|
|
|
|
0.7 |
|
|
|
|
|
| Base Rent PSF |
|
|
|
|
|
$ |
14.15 |
|
|
|
|
|
|
$ |
14.44 |
|
|
|
|
|
|
$ |
19.62 |
|
|
|
|
|
| Leased Rate |
|
|
|
|
|
|
96.0 |
% |
|
|
|
|
|
|
96.4 |
% |
|
|
|
|
|
|
96.0 |
% |
|
|
|
|
| % of NOI |
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
95.0 |
% |
|
|
|
|
|
|
13.8 |
% |
|
|
|
|
|
|
|
|
| |
|
Same Store NOI at 100% |
|
|
|
|
|
Same Store NOI at DDR Share |
|
| |
|
4Q14 |
|
|
4Q13 |
|
|
Change |
|
|
|
|
|
4Q14 |
|
|
4Q13 |
|
|
Change |
|
| Same Store Leased Rate |
|
|
95.7 |
% |
|
|
95.5 |
% |
|
|
0.2 |
% |
|
|
|
|
|
|
96.0 |
% |
|
|
95.9 |
% |
|
|
0.1 |
% |
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Base Rents |
|
$ |
223.4 |
|
|
$ |
218.7 |
|
|
|
2.1 |
% |
|
|
|
|
|
$ |
176.7 |
|
|
$ |
172.7 |
|
|
|
2.3 |
% |
| Recoveries |
|
|
72.9 |
|
|
|
71.0 |
|
|
|
2.7 |
% |
|
|
|
|
|
|
59.4 |
|
|
|
58.3 |
|
|
|
2.0 |
% |
| Other |
|
|
5.3 |
|
|
|
5.3 |
|
|
|
1.4 |
% |
|
|
|
|
|
|
4.6 |
|
|
|
4.5 |
|
|
|
1.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
301.6 |
|
|
|
295.0 |
|
|
|
2.2 |
% |
|
|
|
|
|
|
240.7 |
|
|
|
235.5 |
|
|
|
2.2 |
% |
| Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating |
|
|
(51.5 |
) |
|
|
(50.7 |
) |
|
|
1.6 |
% |
|
|
|
|
|
|
(40.8 |
) |
|
|
(40.2 |
) |
|
|
1.5 |
% |
| Real Estate Taxes |
|
|
(41.1 |
) |
|
|
(41.1 |
) |
|
|
0.2 |
% |
|
|
|
|
|
|
(33.2 |
) |
|
|
(33.4 |
) |
|
|
-0.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(92.6 |
) |
|
|
(91.8 |
) |
|
|
1.0 |
% |
|
|
|
|
|
|
(74.0 |
) |
|
|
(73.6 |
) |
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Same Store NOI |
|
$ |
209.0 |
|
|
$ |
203.2 |
|
|
|
2.9 |
% |
|
|
|
|
|
$ |
166.7 |
|
|
$ |
161.9 |
|
|
|
3.0 |
% |
| Non-Same Store NOI (1) |
|
|
52.5 |
|
|
|
59.0 |
|
|
|
|
|
|
|
|
|
|
|
24.4 |
|
|
|
25.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
261.5 |
|
|
$ |
262.2 |
|
|
|
|
|
|
|
|
|
|
$ |
191.1 |
|
|
$ |
187.2 |
|
|
|
|
|
Same Store NOI Reconciliation to Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated at 100%: |
|
|
|
|
|
|
|
|
|
|
|
Consolidated at DDR Share: |
|
|
|
| Revenues |
|
$ |
248.6 |
|
|
$ |
232.7 |
|
|
|
|
DDR Share |
|
$ |
178.5 |
|
|
$ |
163.4 |
|
|
|
| Expenses |
|
|
(70.1 |
) |
|
|
(69.3 |
) |
|
|
|
JV Share |
|
|
(0.4 |
) |
|
|
(0.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
178.5 |
|
|
$ |
163.4 |
|
|
|
|
|
|
$ |
178.1 |
|
|
$ |
163.1 |
|
|
|
| Unconsolidated at 100%: |
|
|
|
|
|
|
|
|
|
|
|
Unconsolidated at DDR Share: |
|
|
|
| Revenues |
|
$ |
128.8 |
|
|
$ |
142.8 |
|
|
|
|
Revenues |
|
$ |
20.0 |
|
|
$ |
34.0 |
|
|
|
| Expenses |
|
|
(45.8 |
) |
|
|
(44.0 |
) |
|
|
|
Expenses |
|
|
(7.0 |
) |
|
|
(9.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
83.0 |
|
|
$ |
98.8 |
|
|
|
|
|
|
$ |
13.0 |
|
|
$ |
24.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
261.5 |
|
|
$ |
262.2 |
|
|
|
|
Total |
|
$ |
191.1 |
|
|
$ |
187.2 |
|
|
|
| (1) |
Brazil is excluded from the same-store pool in both periods. |
11
DDR Corp.
Portfolio Detail (at 100%)
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 |
|
| 2015 |
|
|
105 |
|
|
$ |
34.6 |
|
|
$ |
10.98 |
|
|
|
3.4 |
% |
|
|
|
|
782 |
|
|
$ |
44.1 |
|
|
$ |
23.14 |
|
|
|
4.3 |
% |
| 2016 |
|
|
233 |
|
|
|
79.4 |
|
|
|
11.07 |
|
|
|
7.7 |
% |
|
|
|
|
952 |
|
|
|
57.0 |
|
|
|
22.42 |
|
|
|
5.6 |
% |
| 2017 |
|
|
220 |
|
|
|
83.0 |
|
|
|
10.86 |
|
|
|
8.1 |
% |
|
|
|
|
909 |
|
|
|
54.0 |
|
|
|
22.77 |
|
|
|
5.3 |
% |
| 2018 |
|
|
238 |
|
|
|
84.8 |
|
|
|
11.42 |
|
|
|
8.3 |
% |
|
|
|
|
896 |
|
|
|
63.0 |
|
|
|
23.96 |
|
|
|
6.1 |
% |
| 2019 |
|
|
242 |
|
|
|
94.4 |
|
|
|
11.01 |
|
|
|
9.2 |
% |
|
|
|
|
667 |
|
|
|
45.1 |
|
|
|
23.25 |
|
|
|
4.4 |
% |
| 2020 |
|
|
156 |
|
|
|
52.9 |
|
|
|
11.15 |
|
|
|
5.2 |
% |
|
|
|
|
244 |
|
|
|
18.2 |
|
|
|
22.51 |
|
|
|
1.8 |
% |
| 2021 |
|
|
114 |
|
|
|
48.7 |
|
|
|
10.95 |
|
|
|
4.8 |
% |
|
|
|
|
199 |
|
|
|
16.4 |
|
|
|
25.13 |
|
|
|
1.6 |
% |
| 2022 |
|
|
119 |
|
|
|
46.4 |
|
|
|
11.05 |
|
|
|
4.5 |
% |
|
|
|
|
205 |
|
|
|
17.8 |
|
|
|
25.08 |
|
|
|
1.7 |
% |
| 2023 |
|
|
119 |
|
|
|
44.5 |
|
|
|
10.53 |
|
|
|
4.3 |
% |
|
|
|
|
181 |
|
|
|
16.9 |
|
|
|
23.69 |
|
|
|
1.6 |
% |
| 2024 |
|
|
92 |
|
|
|
33.4 |
|
|
|
12.36 |
|
|
|
3.3 |
% |
|
|
|
|
201 |
|
|
|
18.4 |
|
|
|
23.51 |
|
|
|
1.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2015-2024 |
|
|
1,638 |
|
|
$ |
602.1 |
|
|
$ |
11.14 |
|
|
|
58.7 |
% |
|
|
|
|
5,236 |
|
|
$ |
350.9 |
|
|
$ |
23.55 |
|
|
|
34.2 |
% |
| Total Rent Roll |
|
|
1,735 |
|
|
$ |
658.8 |
|
|
$ |
11.30 |
|
|
|
64.3 |
% |
|
|
|
|
5,505 |
|
|
$ |
366.3 |
|
|
$ |
23.24 |
|
|
|
35.7 |
% |
|
|
|
|
| |
|
Annual Metrics |
|
|
|
|
Leased Rate Breakdown |
|
| |
|
Period
Ending |
|
|
Centers |
|
|
Leased
Rate |
|
|
ABR
PSF |
|
|
|
|
SF |
|
|
Leased
Rate |
|
|
% of
GLA |
|
|
% of
Vacancy |
|
|
|
|
YE 2014 |
|
|
|
415 |
|
|
|
95.7 |
% |
|
$ |
13.91 |
|
|
|
|
|
<5,000 |
|
|
|
86.5 |
% |
|
|
14.9 |
% |
|
|
46.3 |
% |
|
|
|
YE 2013 |
|
|
|
406 |
|
|
|
95.0 |
% |
|
|
13.35 |
|
|
|
|
|
5,000-9,999 |
|
|
|
92.5 |
% |
|
|
8.4 |
% |
|
|
14.6 |
% |
|
|
|
YE 2012 |
|
|
|
444 |
|
|
|
94.1 |
% |
|
|
12.77 |
|
|
|
|
|
>10,000 |
|
|
|
97.8 |
% |
|
|
76.7 |
% |
|
|
39.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YE 2011 |
|
|
|
422 |
|
|
|
93.3 |
% |
|
|
12.54 |
|
|
|
|
|
Total |
|
|
|
95.7 |
% |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
|
YE 2010 |
|
|
|
476 |
|
|
|
92.3 |
% |
|
|
12.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YE 2009 |
|
|
|
534 |
|
|
|
91.2 |
% |
|
|
12.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YE 2008 |
|
|
|
611 |
|
|
|
92.6 |
% |
|
|
12.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YE 2007 |
|
|
|
619 |
|
|
|
95.8 |
% |
|
|
12.22 |
|
|
|
|
|
Portfolio Concentration |
|
|
|
|
YE 2006 |
|
|
|
370 |
|
|
|
96.2 |
% |
|
|
11.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YE 2005 |
|
|
|
379 |
|
|
|
96.3 |
% |
|
|
11.30 |
|
|
|
|
|
|
|
|
|
% of |
|
|
|
|
|
|
|
% of |
|
|
|
|
YE 2004 |
|
|
|
373 |
|
|
|
95.4 |
% |
|
|
11.13 |
|
|
|
|
|
|
|
|
|
ABR |
|
|
|
MSF |
|
|
|
GLA |
|
|
|
|
YE 2003 |
|
|
|
274 |
|
|
|
95.1 |
% |
|
|
10.82 |
|
|
|
|
|
Florida |
|
|
|
10.8 |
% |
|
|
10.0 |
|
|
|
11.5 |
% |
|
|
|
YE 2002 |
|
|
|
189 |
|
|
|
95.9 |
% |
|
|
10.58 |
|
|
|
|
|
Georgia |
|
|
|
9.6 |
% |
|
|
9.3 |
|
|
|
10.7 |
% |
|
|
|
YE 2001 |
|
|
|
192 |
|
|
|
95.4 |
% |
|
|
10.03 |
|
|
|
|
|
Puerto Rico |
|
|
|
7.8 |
% |
|
|
4.8 |
|
|
|
5.5 |
% |
|
|
|
YE 2000 |
|
|
|
190 |
|
|
|
96.9 |
% |
|
|
9.66 |
|
|
|
|
|
Ohio |
|
|
|
7.4 |
% |
|
|
7.2 |
|
|
|
8.2 |
% |
|
|
|
YE 1999 |
|
|
|
186 |
|
|
|
95.7 |
% |
|
|
9.20 |
|
|
|
|
|
N. Carolina |
|
|
|
6.9 |
% |
|
|
5.7 |
|
|
|
6.5 |
% |
|
|
|
YE 1998 |
|
|
|
159 |
|
|
|
96.5 |
% |
|
|
8.99 |
|
|
|
|
|
California |
|
|
|
5.2 |
% |
|
|
3.9 |
|
|
|
4.5 |
% |
|
|
|
YE 1997 |
|
|
|
123 |
|
|
|
96.1 |
% |
|
|
8.49 |
|
|
|
|
|
New Jersey |
|
|
|
4.5 |
% |
|
|
3.2 |
|
|
|
3.7 |
% |
|
|
|
YE 1996 |
|
|
|
112 |
|
|
|
94.8 |
% |
|
|
7.85 |
|
|
|
|
|
Illinois |
|
|
|
4.4 |
% |
|
|
2.7 |
|
|
|
3.1 |
% |
|
|
|
YE 1995 |
|
|
|
106 |
|
|
|
96.3 |
% |
|
|
7.60 |
|
|
|
|
|
Texas |
|
|
|
3.9 |
% |
|
|
3.2 |
|
|
|
3.7 |
% |
|
|
|
YE 1994 |
|
|
|
84 |
|
|
|
97.1 |
% |
|
|
5.89 |
|
|
|
|
|
New York |
|
|
|
3.9 |
% |
|
|
4.4 |
|
|
|
5.1 |
% |
|
|
|
YE 1993 |
|
|
|
69 |
|
|
|
96.2 |
% |
|
|
5.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YE 1992 |
|
|
|
53 |
|
|
|
95.4 |
% |
|
|
5.37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
DDR Corp.
Leasing Summary
4Q14
GLA in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
New |
|
|
Prior |
|
|
|
|
|
|
|
|
|
|
| |
|
# of |
|
|
|
|
|
Rent |
|
|
Rent |
|
|
|
|
|
Wtd Avg |
|
|
TA |
|
| |
|
Leases |
|
|
GLA |
|
|
PSF |
|
|
PSF |
|
|
Spread |
|
|
Term (Yrs) |
|
|
PSF |
|
| Current Quarter at 100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comparable |
|
|
70 |
|
|
|
379 |
|
|
$ |
18.30 |
|
|
$ |
15.13 |
|
|
|
21.0 |
% |
|
|
8.8 |
|
|
$ |
14.63 |
|
| Non-comp |
|
|
70 |
|
|
|
259 |
|
|
|
18.00 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
8.0 |
|
|
|
17.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New Leases - Total |
|
|
140 |
|
|
|
638 |
|
|
|
18.18 |
|
|
|
N/A |
|
|
|
21.0 |
% |
|
|
8.5 |
|
|
|
15.63 |
|
| Renewals |
|
|
187 |
|
|
|
1,165 |
|
|
|
16.49 |
|
|
|
15.36 |
|
|
|
7.4 |
% |
|
|
5.0 |
|
|
|
0.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
327 |
|
|
|
1,803 |
|
|
$ |
17.09 |
|
|
$ |
15.30 |
|
|
|
10.7 |
% |
|
|
6.3 |
|
|
$ |
5.83 |
|
|
|
|
|
|
|
|
|
| Current Quarter at DDR Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comparable |
|
|
70 |
|
|
|
291 |
|
|
$ |
19.60 |
|
|
$ |
15.68 |
|
|
|
25.0 |
% |
|
|
8.6 |
|
|
$ |
17.58 |
|
| Non-comp |
|
|
70 |
|
|
|
187 |
|
|
|
19.38 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
8.3 |
|
|
|
16.12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New Leases - Total |
|
|
140 |
|
|
|
478 |
|
|
|
19.51 |
|
|
|
N/A |
|
|
|
25.0 |
% |
|
|
8.5 |
|
|
|
16.99 |
|
| Renewals |
|
|
187 |
|
|
|
799 |
|
|
|
17.30 |
|
|
|
16.14 |
|
|
|
7.2 |
% |
|
|
5.0 |
|
|
|
0.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
327 |
|
|
|
1,277 |
|
|
$ |
18.13 |
|
|
$ |
16.01 |
|
|
|
11.9 |
% |
|
|
6.3 |
|
|
$ |
6.70 |
|
|
|
|
|
|
|
|
|
|
| |
|
New |
|
|
Renewals |
|
| |
|
4Q14 |
|
|
4Q14 |
|
| Net Effective Rents |
|
|
|
|
|
|
|
|
| Square footage |
|
|
561 |
|
|
|
1,165 |
|
| Base rent |
|
$ |
19.29 |
|
|
$ |
16.69 |
|
| Tenant allowance |
|
|
(2.09 |
) |
|
|
(0.04 |
) |
| Landlord work |
|
|
(2.78 |
) |
|
|
(0.09 |
) |
| Third party leasing commissions |
|
|
(0.35 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
| Equivalent net effective rent |
|
$ |
14.07 |
|
|
$ |
16.56 |
|
| Weighted average term in years |
|
|
8.4 |
|
|
|
5.1 |
|
13
DDR Corp.
Leasing Summary
12M14
GLA in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
New |
|
|
Prior |
|
|
|
|
|
|
|
|
|
|
| |
|
# of |
|
|
|
|
|
Rent |
|
|
Rent |
|
|
|
|
|
Wtd Avg |
|
|
TA |
|
| |
|
Leases |
|
|
GLA |
|
|
PSF |
|
|
PSF |
|
|
Spread |
|
|
Term (Yrs) |
|
|
PSF |
|
| YTD at 100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comparable |
|
|
284 |
|
|
|
1,314 |
|
|
$ |
17.91 |
|
|
$ |
15.15 |
|
|
|
18.2 |
% |
|
|
8.4 |
|
|
$ |
16.37 |
|
| Non-comp |
|
|
292 |
|
|
|
1,554 |
|
|
|
15.54 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
9.7 |
|
|
|
15.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New Leases - Total |
|
|
576 |
|
|
|
2,868 |
|
|
|
16.62 |
|
|
|
N/A |
|
|
|
18.2 |
% |
|
|
9.1 |
|
|
|
15.82 |
|
| Renewals |
|
|
835 |
|
|
|
7,771 |
|
|
|
14.05 |
|
|
|
13.10 |
|
|
|
7.3 |
% |
|
|
5.5 |
|
|
|
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
1,411 |
|
|
|
10,639 |
|
|
$ |
14.75 |
|
|
$ |
13.40 |
|
|
|
9.1 |
% |
|
|
6.5 |
|
|
$ |
4.82 |
|
|
|
|
|
|
|
|
|
| YTD at DDR Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New Leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comparable |
|
|
284 |
|
|
|
1,044 |
|
|
$ |
18.54 |
|
|
$ |
15.17 |
|
|
|
22.2 |
% |
|
|
8.5 |
|
|
$ |
18.88 |
|
| Non-comp |
|
|
292 |
|
|
|
1,125 |
|
|
|
16.88 |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
10.2 |
|
|
|
14.55 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New Leases - Total |
|
|
576 |
|
|
|
2,169 |
|
|
|
17.72 |
|
|
|
N/A |
|
|
|
22.2 |
% |
|
|
9.4 |
|
|
|
16.62 |
|
| Renewals |
|
|
835 |
|
|
|
5,618 |
|
|
|
14.62 |
|
|
|
13.58 |
|
|
|
7.7 |
% |
|
|
5.5 |
|
|
|
0.22 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
1,411 |
|
|
|
7,787 |
|
|
$ |
15.48 |
|
|
$ |
13.83 |
|
|
|
10.2 |
% |
|
|
6.6 |
|
|
$ |
5.22 |
|
|
|
|
|
|
|
|
|
|
| |
|
New |
|
|
Renewals |
|
| |
|
12M14 |
|
|
12M14 |
|
| Net Effective Rents |
|
|
|
|
|
|
|
|
| Square footage |
|
|
2,509 |
|
|
|
7,771 |
|
| Base rent |
|
$ |
17.72 |
|
|
$ |
14.20 |
|
| Tenant allowance |
|
|
(1.94 |
) |
|
|
(0.04 |
) |
| Landlord work |
|
|
(2.27 |
) |
|
|
(0.01 |
) |
| Third party leasing commissions |
|
|
(0.26 |
) |
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
| Equivalent net effective rent |
|
$ |
13.25 |
|
|
$ |
14.15 |
|
| Weighted average term in years |
|
|
8.3 |
|
|
|
5.5 |
|
14
DDR Corp.
Top 50 Tenants
$, GLA in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
# of Units |
|
|
Base Rent |
|
|
GLA |
|
|
Credit Ratings |
| |
|
Tenant |
|
Owned |
|
|
Total |
|
|
at 100% |
|
|
% of Total |
|
|
Pro Rata |
|
|
at 100% |
|
|
% of Total |
|
|
Pro Rata |
|
|
(S&P/Moody’s/Fitch) |
| 1 |
|
TJX Companies (1) |
|
|
111 |
|
|
|
112 |
|
|
$ |
37.2 |
|
|
|
3.4 |
% |
|
$ |
26.5 |
|
|
|
3.5 |
|
|
|
4.0 |
% |
|
|
2.4 |
|
|
A+ / A3 / NR |
| 2 |
|
Bed Bath & Beyond (2) |
|
|
91 |
|
|
|
92 |
|
|
|
31.6 |
|
|
|
2.9 |
% |
|
|
23.0 |
|
|
|
2.6 |
|
|
|
3.0 |
% |
|
|
1.8 |
|
|
A- / Baa1 / NR |
| 3 |
|
PetSmart |
|
|
101 |
|
|
|
102 |
|
|
|
31.5 |
|
|
|
2.9 |
% |
|
|
21.0 |
|
|
|
2.2 |
|
|
|
2.5 |
% |
|
|
1.4 |
|
|
BB+ / NR / NR |
| 4 |
|
Walmart (3) |
|
|
29 |
|
|
|
76 |
|
|
|
27.9 |
|
|
|
2.6 |
% |
|
|
24.9 |
|
|
|
4.4 |
|
|
|
5.0 |
% |
|
|
4.0 |
|
|
AA / Aa2 / AA |
| 5 |
|
Kohl’s |
|
|
39 |
|
|
|
55 |
|
|
|
25.9 |
|
|
|
2.4 |
% |
|
|
17.2 |
|
|
|
3.4 |
|
|
|
3.9 |
% |
|
|
2.4 |
|
|
BBB / Baa1 / BBB+ |
| 6 |
|
Dick’s Sporting Goods (4) |
|
|
39 |
|
|
|
40 |
|
|
|
22.9 |
|
|
|
2.1 |
% |
|
|
13.9 |
|
|
|
1.8 |
|
|
|
2.1 |
% |
|
|
1.1 |
|
|
NR |
| 7 |
|
Ross Stores (5) |
|
|
71 |
|
|
|
71 |
|
|
|
22.4 |
|
|
|
2.1 |
% |
|
|
13.9 |
|
|
|
2.1 |
|
|
|
2.4 |
% |
|
|
1.2 |
|
|
A- / A3 / NR |
| 8 |
|
Best Buy |
|
|
38 |
|
|
|
44 |
|
|
|
21.9 |
|
|
|
2.0 |
% |
|
|
15.7 |
|
|
|
1.5 |
|
|
|
1.7 |
% |
|
|
1.1 |
|
|
BB / Baa2 / BB |
| 9 |
|
Michaels |
|
|
67 |
|
|
|
69 |
|
|
|
19.1 |
|
|
|
1.8 |
% |
|
|
13.3 |
|
|
|
1.6 |
|
|
|
1.8 |
% |
|
|
1.1 |
|
|
B / NR / NR |
| 10 |
|
AMC Theatres |
|
|
10 |
|
|
|
11 |
|
|
|
16.8 |
|
|
|
1.5 |
% |
|
|
11.6 |
|
|
|
0.8 |
|
|
|
0.9 |
% |
|
|
0.5 |
|
|
B / NR / NR |
| 11 |
|
Office Depot (6) |
|
|
57 |
|
|
|
61 |
|
|
|
16.7 |
|
|
|
1.5 |
% |
|
|
11.8 |
|
|
|
1.3 |
|
|
|
1.5 |
% |
|
|
0.9 |
|
|
B- / B2 / NR |
| 12 |
|
Gap (7) |
|
|
65 |
|
|
|
65 |
|
|
|
16.5 |
|
|
|
1.5 |
% |
|
|
12.3 |
|
|
|
1.1 |
|
|
|
1.3 |
% |
|
|
0.8 |
|
|
BBB- / Baa3 / BBB- |
| 13 |
|
Publix |
|
|
37 |
|
|
|
40 |
|
|
|
15.9 |
|
|
|
1.5 |
% |
|
|
3.7 |
|
|
|
1.8 |
|
|
|
2.1 |
% |
|
|
0.4 |
|
|
NR |
| 14 |
|
Ulta |
|
|
53 |
|
|
|
55 |
|
|
|
12.7 |
|
|
|
1.2 |
% |
|
|
8.6 |
|
|
|
0.6 |
|
|
|
0.7 |
% |
|
|
0.4 |
|
|
NR |
| 15 |
|
Ascena (8) |
|
|
106 |
|
|
|
106 |
|
|
|
11.8 |
|
|
|
1.1 |
% |
|
|
9.1 |
|
|
|
0.6 |
|
|
|
0.7 |
% |
|
|
0.5 |
|
|
NR |
| 16 |
|
Kroger (9) |
|
|
26 |
|
|
|
29 |
|
|
|
11.7 |
|
|
|
1.1 |
% |
|
|
4.8 |
|
|
|
1.4 |
|
|
|
1.6 |
% |
|
|
0.5 |
|
|
BBB / Baa2 / BBB |
| 17 |
|
Barnes & Noble |
|
|
27 |
|
|
|
29 |
|
|
|
11.0 |
|
|
|
1.0 |
% |
|
|
8.4 |
|
|
|
0.7 |
|
|
|
0.8 |
% |
|
|
0.5 |
|
|
NR |
| 18 |
|
Jo-Ann |
|
|
35 |
|
|
|
35 |
|
|
|
10.7 |
|
|
|
1.0 |
% |
|
|
8.7 |
|
|
|
1.0 |
|
|
|
1.1 |
% |
|
|
0.8 |
|
|
B / Caa1 / NR |
| 19 |
|
Lowe’s |
|
|
13 |
|
|
|
34 |
|
|
|
10.4 |
|
|
|
1.0 |
% |
|
|
9.4 |
|
|
|
1.7 |
|
|
|
1.9 |
% |
|
|
1.5 |
|
|
A- / A3 / NR |
| 20 |
|
Staples |
|
|
36 |
|
|
|
37 |
|
|
|
10.1 |
|
|
|
0.9 |
% |
|
|
6.6 |
|
|
|
0.7 |
|
|
|
0.8 |
% |
|
|
0.5 |
|
|
BBB- / Baa2 / BBB- |
| 21 |
|
Regal Cinemas |
|
|
11 |
|
|
|
12 |
|
|
|
10.0 |
|
|
|
0.9 |
% |
|
|
8.0 |
|
|
|
0.6 |
|
|
|
0.7 |
% |
|
|
0.5 |
|
|
B+ / B1 / B+ |
| 22 |
|
Sports Authority |
|
|
17 |
|
|
|
18 |
|
|
|
9.6 |
|
|
|
0.9 |
% |
|
|
9.0 |
|
|
|
0.7 |
|
|
|
0.8 |
% |
|
|
0.7 |
|
|
NR / B3 / NR |
| 23 |
|
LA Fitness |
|
|
13 |
|
|
|
14 |
|
|
|
9.3 |
|
|
|
0.9 |
% |
|
|
5.5 |
|
|
|
0.6 |
|
|
|
0.7 |
% |
|
|
0.4 |
|
|
NR |
| 24 |
|
Toys “R” Us (10) |
|
|
27 |
|
|
|
31 |
|
|
|
9.2 |
|
|
|
0.8 |
% |
|
|
8.0 |
|
|
|
1.1 |
|
|
|
1.3 |
% |
|
|
0.9 |
|
|
B- / B3 / CCC |
| 25 |
|
Petco |
|
|
37 |
|
|
|
39 |
|
|
|
9.2 |
|
|
|
0.8 |
% |
|
|
6.7 |
|
|
|
0.5 |
|
|
|
0.6 |
% |
|
|
0.4 |
|
|
B / B2 / NR |
| 26 |
|
DSW |
|
|
25 |
|
|
|
25 |
|
|
|
9.2 |
|
|
|
0.8 |
% |
|
|
6.2 |
|
|
|
0.6 |
|
|
|
0.7 |
% |
|
|
0.4 |
|
|
NR |
| 27 |
|
Home Depot |
|
|
10 |
|
|
|
42 |
|
|
|
9.2 |
|
|
|
0.8 |
% |
|
|
9.0 |
|
|
|
1.1 |
|
|
|
1.3 |
% |
|
|
1.0 |
|
|
A / A2 / A |
| 28 |
|
Dollar Tree Stores |
|
|
83 |
|
|
|
86 |
|
|
|
9.0 |
|
|
|
0.8 |
% |
|
|
6.2 |
|
|
|
0.8 |
|
|
|
0.9 |
% |
|
|
0.6 |
|
|
NR |
| 29 |
|
Cinemark |
|
|
10 |
|
|
|
10 |
|
|
|
8.9 |
|
|
|
0.8 |
% |
|
|
6.9 |
|
|
|
0.6 |
|
|
|
0.7 |
% |
|
|
0.5 |
|
|
BB- / NR / NR |
| 30 |
|
Hobby Lobby |
|
|
21 |
|
|
|
24 |
|
|
|
8.7 |
|
|
|
0.8 |
% |
|
|
4.3 |
|
|
|
1.2 |
|
|
|
1.4 |
% |
|
|
0.6 |
|
|
NR |
| 31 |
|
Party City |
|
|
41 |
|
|
|
42 |
|
|
|
7.9 |
|
|
|
0.7 |
% |
|
|
5.9 |
|
|
|
0.5 |
|
|
|
0.6 |
% |
|
|
0.4 |
|
|
B / B3 / NR |
| 32 |
|
Royal Ahold (11) |
|
|
9 |
|
|
|
9 |
|
|
|
7.5 |
|
|
|
0.7 |
% |
|
|
2.9 |
|
|
|
0.5 |
|
|
|
0.6 |
% |
|
|
0.2 |
|
|
BBB / Baa3 / BBB |
| 33 |
|
Pier 1 Imports |
|
|
35 |
|
|
|
40 |
|
|
|
7.3 |
|
|
|
0.7 |
% |
|
|
5.4 |
|
|
|
0.4 |
|
|
|
0.5 |
% |
|
|
0.3 |
|
|
NR |
| 34 |
|
Burlington |
|
|
13 |
|
|
|
13 |
|
|
|
6.8 |
|
|
|
0.6 |
% |
|
|
5.0 |
|
|
|
1.0 |
|
|
|
1.1 |
% |
|
|
0.7 |
|
|
B / NR / NR |
| 35 |
|
hhgregg |
|
|
20 |
|
|
|
20 |
|
|
|
6.8 |
|
|
|
0.6 |
% |
|
|
5.0 |
|
|
|
0.6 |
|
|
|
0.7 |
% |
|
|
0.5 |
|
|
NR |
| 36 |
|
Nordstrom Rack |
|
|
10 |
|
|
|
11 |
|
|
|
6.4 |
|
|
|
0.6 |
% |
|
|
5.3 |
|
|
|
0.4 |
|
|
|
0.5 |
% |
|
|
0.3 |
|
|
A- / Baa1 / A- |
| 37 |
|
Whole Foods |
|
|
6 |
|
|
|
6 |
|
|
|
6.3 |
|
|
|
0.6 |
% |
|
|
4.6 |
|
|
|
0.3 |
|
|
|
0.3 |
% |
|
|
0.2 |
|
|
BBB- / NR / NR |
| 38 |
|
Giant Eagle |
|
|
6 |
|
|
|
7 |
|
|
|
5.8 |
|
|
|
0.5 |
% |
|
|
3.1 |
|
|
|
0.5 |
|
|
|
0.6 |
% |
|
|
0.3 |
|
|
NR |
| 39 |
|
Sears (12) |
|
|
16 |
|
|
|
17 |
|
|
|
5.8 |
|
|
|
0.5 |
% |
|
|
4.5 |
|
|
|
1.5 |
|
|
|
1.7 |
% |
|
|
1.1 |
|
|
CCC+ / Caa1 / CCC |
| 40 |
|
BJ’s Wholesale Club |
|
|
5 |
|
|
|
6 |
|
|
|
5.8 |
|
|
|
0.5 |
% |
|
|
3.0 |
|
|
|
0.5 |
|
|
|
0.6 |
% |
|
|
0.3 |
|
|
B- / B3 / NR |
| 41 |
|
Five Below |
|
|
43 |
|
|
|
43 |
|
|
|
5.8 |
|
|
|
0.5 |
% |
|
|
4.0 |
|
|
|
0.4 |
|
|
|
0.5 |
% |
|
|
0.2 |
|
|
NR |
| 42 |
|
Famous Footwear |
|
|
39 |
|
|
|
39 |
|
|
|
5.4 |
|
|
|
0.5 |
% |
|
|
4.2 |
|
|
|
0.3 |
|
|
|
0.3 |
% |
|
|
0.2 |
|
|
BB- / B1 / BB+ |
| 43 |
|
AT&T |
|
|
59 |
|
|
|
60 |
|
|
|
5.3 |
|
|
|
0.5 |
% |
|
|
4.1 |
|
|
|
0.2 |
|
|
|
0.2 |
% |
|
|
0.1 |
|
|
A- / A3 / A |
| 44 |
|
Beall’s |
|
|
17 |
|
|
|
18 |
|
|
|
5.1 |
|
|
|
0.5 |
% |
|
|
2.6 |
|
|
|
0.7 |
|
|
|
0.8 |
% |
|
|
0.4 |
|
|
NR |
| 45 |
|
Gamestop |
|
|
104 |
|
|
|
104 |
|
|
|
5.1 |
|
|
|
0.5 |
% |
|
|
3.8 |
|
|
|
0.2 |
|
|
|
0.2 |
% |
|
|
0.1 |
|
|
BB+ / Ba1 / NR |
| 46 |
|
Panera |
|
|
38 |
|
|
|
39 |
|
|
|
5.0 |
|
|
|
0.5 |
% |
|
|
3.4 |
|
|
|
0.2 |
|
|
|
0.2 |
% |
|
|
0.1 |
|
|
NR |
| 47 |
|
Shoe Carnival |
|
|
32 |
|
|
|
32 |
|
|
|
4.8 |
|
|
|
0.4 |
% |
|
|
3.1 |
|
|
|
0.4 |
|
|
|
0.5 |
% |
|
|
0.2 |
|
|
NR |
| 48 |
|
Mattress Firm |
|
|
40 |
|
|
|
41 |
|
|
|
4.7 |
|
|
|
0.4 |
% |
|
|
3.0 |
|
|
|
0.2 |
|
|
|
0.2 |
% |
|
|
0.1 |
|
|
B / B2 / NR |
| 49 |
|
24 Hour Fitness |
|
|
6 |
|
|
|
6 |
|
|
|
4.6 |
|
|
|
0.4 |
% |
|
|
2.1 |
|
|
|
0.2 |
|
|
|
0.2 |
% |
|
|
0.1 |
|
|
B / NR / NR |
| 50 |
|
Rainbow Apparel (13) |
|
|
38 |
|
|
|
38 |
|
|
|
4.5 |
|
|
|
0.4 |
% |
|
|
4.0 |
|
|
|
0.2 |
|
|
|
0.2 |
% |
|
|
0.2 |
|
|
NR |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Top 50 Total |
|
|
1,882 |
|
|
|
2,055 |
|
|
$ |
593.7 |
|
|
|
54.4 |
% |
|
$ |
413.2 |
|
|
|
51.8 |
|
|
|
59.3 |
% |
|
|
35.8 |
|
|
|
|
|
Total Portfolio |
|
|
|
|
|
|
|
|
|
$ |
1,090.7 |
|
|
|
100.0 |
% |
|
$ |
762.3 |
|
|
|
87.3 |
|
|
|
100.0 |
% |
|
|
60.1 |
|
|
|
| (1) |
T.J. Maxx (49)/Marshalls (44)/HomeGoods (17)/ |
| (2) |
Bed Bath (58) / World Market (21) / buybuy Baby (10) / CTS (2) |
| (3) |
Walmart (24) / Sam’s Club (3) / Neighborhood Market (2) |
| (4) |
Dick’s Sporting Goods (36) / Golf Galaxy (2) / Field & Stream (1) |
| (5) |
Ross Dress for Less (69) / dd’s Discounts (2) |
| (6) |
Office Depot (20) / OfficeMax (37) |
| (7) |
Gap (4) / Old Navy (58) / Banana Republic (3)
|
| (8) |
Catherine’s (8) / Dress Barn (30) / Justice (26) / Lane Bryant (28) / Maurice’s (14) |
| (9) |
Kroger (18) / Harris Teeter (7) / King Soopers (1) |
| (10) |
Toys “R” Us (6) / Babies “R” Us (15) / Toys-Babies Combo (6) |
| (11) |
Stop & Shop (4) / Martin’s (3) / Others (2) |
| (12) |
Sears (5) / Kmart (11) |
| (13) |
Rainbow (22) / 5-7-9 (7) / Marianne (9) |
15
DDR Corp.
Acquisitions
$ in millions, GLA in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
DDR |
|
|
Total |
|
|
At 100% |
|
|
At DDR Share |
|
|
|
| Date |
|
Location |
|
Own. % |
|
|
GLA |
|
|
Price |
|
|
Debt |
|
|
Price |
|
|
Debt |
|
|
Anchors |
| 4/14 |
|
Colorado Springs, CO |
|
|
100 |
% |
|
|
225 |
|
|
$ |
30.6 |
|
|
$ |
12.9 |
|
|
$ |
30.6 |
|
|
$ |
12.9 |
|
|
Vitamin Cottage Natural Grocers, Ross Dress for Less, Golfsmith, 24 Hour Fitness, PetSmart, Sports Authority |
|
|
|
|
|
|
|
|
|
| 5/14 |
|
Cincinnati, OH |
|
|
100 |
% |
|
|
430 |
|
|
|
29.5 |
|
|
|
0.0 |
|
|
|
29.5 |
|
|
|
0.0 |
|
|
Costco, Target, Barnes & Noble, Michaels, Best Buy |
|
|
|
|
|
|
|
|
|
| 5/14 |
|
Sacramento, CA |
|
|
100 |
% |
|
|
275 |
|
|
|
86.3 |
|
|
|
0.0 |
|
|
|
86.3 |
|
|
|
0.0 |
|
|
REI, Bed Bath & Beyond, Macy’s, buybuy Baby, World Market |
|
|
|
|
|
|
|
|
|
| 6/14 |
|
Chicago, IL |
|
|
100 |
% |
|
|
240 |
|
|
|
118.4 |
|
|
|
35.5 |
|
|
|
118.4 |
|
|
|
35.5 |
|
|
Nordstrom Rack, Burlington, T.J. Maxx, Dick’s Sporting Goods |
|
|
|
|
|
|
|
|
|
| 8/14 |
|
Philadelphia, PA |
|
|
100 |
% |
|
|
168 |
|
|
|
31.5 |
|
|
|
0.0 |
|
|
|
31.5 |
|
|
|
0.0 |
|
|
Bed Bath & Beyond, Stein Mart, AFC Fitness, PetSmart |
|
|
|
|
|
|
|
|
|
| 9/14 |
|
Portfolio of 7 former Blackstone Assets (1) |
|
|
100 |
% |
|
|
2,288 |
|
|
|
397.2 |
|
|
|
205.3 |
|
|
|
377.3 |
|
|
|
205.3 |
|
|
Target, Walmart, Wegmans, Dick’s Sporting Goods, Kohl’s, T.J. Maxx |
|
|
|
|
|
|
|
|
|
| 10/14 |
|
Portfolio of 70 Assets with Blackstone |
|
|
5 |
% |
|
|
15,658 |
|
|
|
1,926.4 |
|
|
|
1,237.0 |
|
|
|
376.0 |
|
|
|
61.9 |
|
|
Whole Foods, Trader Joe’s, Costco, Target, Walmart, Dick’s Sporting Goods, T.J. Maxx, PetSmart, The Fresh Market |
|
|
|
|
|
|
|
|
|
| 12/14 |
|
Erie, PA(1) |
|
|
100 |
% |
|
|
278 |
|
|
|
15.6 |
|
|
|
0.0 |
|
|
|
15.0 |
|
|
|
0.0 |
|
|
Target, Best Buy, Babies “R” Us, Bed Bath & Beyond, Marshalls |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,562 |
|
|
$ |
2,635.5 |
|
|
$ |
1,490.7 |
|
|
$ |
1,064.6 |
|
|
$ |
315.6 |
|
|
|
| (1) |
DDR acquired its partner’s 95% ownership interest in these assets. |
16
DDR Corp.
Dispositions
$ in millions, GLA in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
DDR |
|
|
Total |
|
|
At 100% |
|
|
At DDR Share |
|
|
|
| Date |
|
Location |
|
Own. % |
|
|
GLA |
|
|
Price |
|
|
Debt |
|
|
Price |
|
|
Debt |
|
|
Anchors |
| 1/14 |
|
Norcross, GA |
|
|
100 |
% |
|
|
83.4 |
|
|
$ |
10.0 |
|
|
$ |
0.0 |
|
|
$ |
10.0 |
|
|
$ |
0.0 |
|
|
Ingles |
| 1/14 |
|
Tonawanda, NY |
|
|
100 |
% |
|
|
121.8 |
|
|
|
5.0 |
|
|
|
0.0 |
|
|
|
5.0 |
|
|
|
0.0 |
|
|
Best Fitness |
| 1/14 |
|
Camp Hill, PA |
|
|
100 |
% |
|
|
62.9 |
|
|
|
3.0 |
|
|
|
0.0 |
|
|
|
3.0 |
|
|
|
0.0 |
|
|
Michaels |
| 1/14 |
|
Hagerstown, MD |
|
|
100 |
% |
|
|
89.9 |
|
|
|
12.7 |
|
|
|
0.0 |
|
|
|
12.7 |
|
|
|
0.0 |
|
|
Hobby Lobby |
| 2/14 |
|
Longview, TX |
|
|
20 |
% |
|
|
40.5 |
|
|
|
3.9 |
|
|
|
3.7 |
|
|
|
0.8 |
|
|
|
0.7 |
|
|
- |
| 2/14 |
|
Charleston, SC |
|
|
100 |
% |
|
|
236.3 |
|
|
|
16.0 |
|
|
|
0.0 |
|
|
|
16.0 |
|
|
|
0.0 |
|
|
Home Décor Liquidators, Northern Tool |
| 2/14 |
|
Fenton, MO |
|
|
100 |
% |
|
|
100.4 |
|
|
|
10.3 |
|
|
|
0.0 |
|
|
|
10.3 |
|
|
|
0.0 |
|
|
Aldi |
| 2/14 |
|
Riverdale, UT |
|
|
93 |
% |
|
|
427.8 |
|
|
|
54.3 |
|
|
|
0.0 |
|
|
|
50.5 |
|
|
|
0.0 |
|
|
Best Buy, Gordman’s, Jo-Ann |
| 3/14 |
|
Victor, NY |
|
|
100 |
% |
|
|
55.9 |
|
|
|
5.5 |
|
|
|
0.0 |
|
|
|
5.5 |
|
|
|
0.0 |
|
|
- |
| 3/14 |
|
Greensboro, NC |
|
|
100 |
% |
|
|
151.4 |
|
|
|
7.2 |
|
|
|
0.0 |
|
|
|
7.2 |
|
|
|
0.0 |
|
|
Food Lion, Staples |
| 3/14 |
|
San Antonio, TX |
|
|
20 |
% |
|
|
230.7 |
|
|
|
49.7 |
|
|
|
20.0 |
|
|
|
9.9 |
|
|
|
4.0 |
|
|
Ross Dress for Less, PetSmart, Office Depot |
| 3/14 |
|
Goodlettsville, TN |
|
|
20 |
% |
|
|
84.4 |
|
|
|
7.4 |
|
|
|
6.4 |
|
|
|
1.5 |
|
|
|
1.3 |
|
|
Kroger |
| 3/14 |
|
Oxford, MS |
|
|
20 |
% |
|
|
71.9 |
|
|
|
4.7 |
|
|
|
0.0 |
|
|
|
0.9 |
|
|
|
0.0 |
|
|
Kroger |
| 1Q |
|
Land Sales |
|
|
|
|
|
|
0.0 |
|
|
|
8.3 |
|
|
|
0.0 |
|
|
|
8.3 |
|
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q Total |
|
|
|
|
|
|
1,757.3 |
|
|
$ |
198.0 |
|
|
$ |
30.1 |
|
|
$ |
141.6 |
|
|
$ |
6.0 |
|
|
|
| 4/14 |
|
SSB (Brazil) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
409.8 |
|
|
|
|
|
|
|
| 4/14 |
|
St. John, MO |
|
|
100 |
% |
|
|
94.2 |
|
|
|
12.8 |
|
|
|
0.0 |
|
|
|
12.8 |
|
|
|
0.0 |
|
|
Shop ‘N Save |
| 4/14 |
|
Dunkirk, NY |
|
|
100 |
% |
|
|
10.9 |
|
|
|
1.4 |
|
|
|
0.0 |
|
|
|
1.4 |
|
|
|
0.0 |
|
|
- |
| 4/14 |
|
Houston, TX |
|
|
100 |
% |
|
|
131.6 |
|
|
|
14.7 |
|
|
|
0.0 |
|
|
|
14.7 |
|
|
|
0.0 |
|
|
Lowe’s |
| 4/14 |
|
Erie, PA |
|
|
100 |
% |
|
|
10.9 |
|
|
|
1.1 |
|
|
|
0.0 |
|
|
|
1.1 |
|
|
|
0.0 |
|
|
- |
| 4/14 |
|
Cheektowaga, NY |
|
|
5 |
% |
|
|
170.5 |
|
|
|
3.3 |
|
|
|
0.0 |
|
|
|
0.2 |
|
|
|
0.0 |
|
|
- |
| 5/14 |
|
Olympia, WA |
|
|
100 |
% |
|
|
35.8 |
|
|
|
3.7 |
|
|
|
0.0 |
|
|
|
3.7 |
|
|
|
0.0 |
|
|
Big Lots |
| 5/14 |
|
Highland Ranch, CO |
|
|
100 |
% |
|
|
43.5 |
|
|
|
4.8 |
|
|
|
0.0 |
|
|
|
4.8 |
|
|
|
0.0 |
|
|
Savers |
| 5/14 |
|
Orlando, FL |
|
|
20 |
% |
|
|
52.0 |
|
|
|
1.2 |
|
|
|
1.9 |
|
|
|
0.2 |
|
|
|
0.4 |
|
|
- |
| 6/14 |
|
Lake Wales, FL |
|
|
20 |
% |
|
|
116.0 |
|
|
|
17.9 |
|
|
|
0.0 |
|
|
|
3.6 |
|
|
|
0.0 |
|
|
Publix |
| 6/14 |
|
Davie, FL |
|
|
20 |
% |
|
|
70.3 |
|
|
|
11.6 |
|
|
|
5.9 |
|
|
|
2.3 |
|
|
|
1.2 |
|
|
Publix |
| 6/14 |
|
Westland, MI |
|
|
100 |
% |
|
|
13.9 |
|
|
|
3.1 |
|
|
|
0.0 |
|
|
|
3.1 |
|
|
|
0.0 |
|
|
- |
| 2Q |
|
Land Sales |
|
|
|
|
|
|
0.0 |
|
|
|
3.0 |
|
|
|
0.0 |
|
|
|
3.0 |
|
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2Q Total |
|
|
|
|
|
|
749.6 |
|
|
$ |
78.6 |
|
|
$ |
7.8 |
|
|
$ |
460.7 |
|
|
$ |
1.6 |
|
|
|
| 7/14 |
|
Worcester, MA |
|
|
100 |
% |
|
|
107.9 |
|
|
|
3.2 |
|
|
|
0.0 |
|
|
|
3.2 |
|
|
|
0.0 |
|
|
- |
| 7/14 |
|
Lakeland, FL |
|
|
100 |
% |
|
|
77.6 |
|
|
|
7.5 |
|
|
|
0.0 |
|
|
|
7.5 |
|
|
|
0.0 |
|
|
Bealls |
| 8/14 |
|
Starkville, MS |
|
|
100 |
% |
|
|
133.7 |
|
|
|
9.2 |
|
|
|
0.0 |
|
|
|
9.2 |
|
|
|
0.0 |
|
|
JCPenney, Kroger |
| 9/14 |
|
Boiling Springs, SC |
|
|
100 |
% |
|
|
102.3 |
|
|
|
5.8 |
|
|
|
0.0 |
|
|
|
5.8 |
|
|
|
0.0 |
|
|
Ingles |
| 9/14 |
|
Utah Portfolio (3 Assets) |
|
|
100 |
% |
|
|
1,618.8 |
|
|
|
222.7 |
|
|
|
0.0 |
|
|
|
222.7 |
|
|
|
0.0 |
|
|
Various |
| 3Q |
|
Land Sales |
|
|
|
|
|
|
0.0 |
|
|
|
18.8 |
|
|
|
0.0 |
|
|
|
12.3 |
|
|
|
0.0 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3Q Total |
|
|
|
|
|
|
2,040.3 |
|
|
$ |
267.2 |
|
|
$ |
0.0 |
|
|
$ |
260.7 |
|
|
$ |
0.0 |
|
|
|
| 10/14 |
|
Dania Beach, FL |
|
|
100 |
% |
|
|
165.0 |
|
|
|
28.2 |
|
|
|
0.0 |
|
|
|
28.2 |
|
|
|
0.0 |
|
|
Bass Pro Outdoor World |
| 10/14 |
|
Milwaukee, WI |
|
|
100 |
% |
|
|
160.5 |
|
|
|
10.3 |
|
|
|
0.0 |
|
|
|
10.3 |
|
|
|
0.0 |
|
|
Kohl’s, Pick ‘N Save |
| 10/14 |
|
Howell, MI |
|
|
100 |
% |
|
|
220.7 |
|
|
|
10.5 |
|
|
|
0.0 |
|
|
|
10.5 |
|
|
|
0.0 |
|
|
Big Lots, Dunham’s, Elder-Beerman, T.J. Maxx |
| 10/14 |
|
Roscoe, IL |
|
|
20 |
% |
|
|
125.7 |
|
|
|
9.3 |
|
|
|
6.2 |
|
|
|
1.9 |
|
|
|
1.2 |
|
|
Schnucks |
| 10/14 |
|
Milan, MI |
|
|
20 |
% |
|
|
65.8 |
|
|
|
2.3 |
|
|
|
1.7 |
|
|
|
0.5 |
|
|
|
0.3 |
|
|
Kroger |
| 10/14 |
|
Rome, GA |
|
|
100 |
% |
|
|
21.9 |
|
|
|
1.9 |
|
|
|
0.0 |
|
|
|
1.9 |
|
|
|
0.0 |
|
|
- |
| 10/14 |
|
Indianapolis, IN |
|
|
20 |
% |
|
|
102.5 |
|
|
|
9.5 |
|
|
|
5.4 |
|
|
|
1.9 |
|
|
|
1.1 |
|
|
Kroger |
| 10/14 |
|
Jackson, TN |
|
|
20 |
% |
|
|
62.9 |
|
|
|
6.0 |
|
|
|
3.7 |
|
|
|
1.2 |
|
|
|
0.7 |
|
|
Kroger |
| 11/14 |
|
Mt. Pleasant, MI |
|
|
100 |
% |
|
|
203.8 |
|
|
|
17.3 |
|
|
|
0.0 |
|
|
|
17.3 |
|
|
|
0.0 |
|
|
Dick’s Sporting Goods, Jo-Ann, Kroger, T.J. Maxx |
| 11/14 |
|
DDR Markaz II Portfolio |
|
|
20 |
% |
|
|
1,473.6 |
|
|
|
154.0 |
|
|
|
128.8 |
|
|
|
30.8 |
|
|
|
25.8 |
|
|
Various |
| 11/14 |
|
Pensacola, FL |
|
|
20 |
% |
|
|
64.1 |
|
|
|
7.1 |
|
|
|
7.1 |
|
|
|
1.4 |
|
|
|
1.4 |
|
|
- |
| 11/14 |
|
Dewitt, NY |
|
|
100 |
% |
|
|
38.4 |
|
|
|
2.9 |
|
|
|
0.0 |
|
|
|
2.9 |
|
|
|
0.0 |
|
|
Michaels |
| 11/14 |
|
Woodstock, GA |
|
|
100 |
% |
|
|
170.9 |
|
|
|
0.2 |
|
|
|
0.0 |
|
|
|
0.2 |
|
|
|
0.0 |
|
|
- |
| 12/14 |
|
BRE DDR Retail Holdings I |
|
|
5 |
% |
|
|
1,718.1 |
|
|
|
174.3 |
|
|
|
102.9 |
|
|
|
8.7 |
|
|
|
5.1 |
|
|
Various |
| 12/14 |
|
Ocala, FL |
|
|
100 |
% |
|
|
113.9 |
|
|
|
6.9 |
|
|
|
0.0 |
|
|
|
6.9 |
|
|
|
0.0 |
|
|
Hobby Lobby |
| 12/14 |
|
Dothan, AL |
|
|
100 |
% |
|
|
181.0 |
|
|
|
21.2 |
|
|
|
0.0 |
|
|
|
21.2 |
|
|
|
0.0 |
|
|
Big Lots, OfficeMax, T.J. Maxx |
| 12/14 |
|
Riverdale, UT |
|
|
100 |
% |
|
|
248.1 |
|
|
|
15.0 |
|
|
|
0.0 |
|
|
|
15.0 |
|
|
|
0.0 |
|
|
OfficeMax, Sports Authority |
| 12/14 |
|
Winter Park, FL |
|
|
5 |
% |
|
|
112.3 |
|
|
|
3.1 |
|
|
|
0.0 |
|
|
|
0.2 |
|
|
|
0.0 |
|
|
- |
| 12/14 |
|
Monaca, PA |
|
|
100 |
% |
|
|
298.6 |
|
|
|
41.1 |
|
|
|
0.0 |
|
|
|
41.1 |
|
|
|
0.0 |
|
|
Cinemark, Lowe’s, Michaels, Party City |
| 12/14 |
|
Boynton Beach, FL |
|
|
20 |
% |
|
|
106.2 |
|
|
|
10.8 |
|
|
|
0.0 |
|
|
|
2.2 |
|
|
|
0.0 |
|
|
- |
| 12/14 |
|
Sandy Springs, GA |
|
|
100 |
% |
|
|
128.8 |
|
|
|
40.7 |
|
|
|
0.0 |
|
|
|
40.7 |
|
|
|
0.0 |
|
|
Publix |
| 4Q |
|
Land Sales |
|
|
|
|
|
|
0.0 |
|
|
|
17.9 |
|
|
|
0.0 |
|
|
|
12.6 |
|
|
|
0.0 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4Q Total |
|
|
|
|
|
|
5,782.8 |
|
|
$ |
590.5 |
|
|
$ |
255.8 |
|
|
$ |
257.6 |
|
|
$ |
35.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year Total |
|
|
|
|
|
|
10,330.0 |
|
|
$ |
1,134.3 |
|
|
$ |
293.7 |
|
|
$ |
1,120.6 |
|
|
$ |
43.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17
DDR Corp.
Developments / Redevelopments
$ in millions, GLA
in thousands
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
At Year End |
|
|
YTD Activity |
|
| |
|
Land |
|
|
CIP |
|
|
Total |
|
|
Net
Spend |
|
|
Placed
in Service |
|
| Consolidated |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Ground up Projects in Progress |
|
$ |
34.3 |
|
|
$ |
63.0 |
|
|
$ |
97.3 |
|
|
$ |
51.2 |
|
|
$ |
120.9 |
|
| Land Held for Development (1) |
|
|
93.2 |
|
|
|
54.7 |
|
|
|
147.9 |
|
|
|
(21.9 |
) |
|
|
0.0 |
|
| Substantially Completed Pending Lease Up |
|
|
26.0 |
|
|
|
34.6 |
|
|
|
60.6 |
|
|
|
1.3 |
|
|
|
0.1 |
|
| Redevelopment Projects |
|
|
30.6 |
|
|
|
55.1 |
|
|
|
85.7 |
|
|
|
125.2 |
|
|
|
124.1 |
|
| Leasing Capital Expenditures |
|
|
0.0 |
|
|
|
3.7 |
|
|
|
3.7 |
|
|
|
35.1 |
|
|
|
36.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
184.1 |
|
|
$ |
211.1 |
|
|
$ |
395.2 |
|
|
$ |
190.9 |
|
|
$ |
281.5 |
|
| Unconsolidated at 100% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Land Held for Development |
|
$ |
48.2 |
|
|
$ |
4.8 |
|
|
$ |
53.0 |
|
|
$ |
2.1 |
|
|
$ |
0.0 |
|
| Redevelopment Projects |
|
|
0.0 |
|
|
|
0.6 |
|
|
|
0.6 |
|
|
|
8.9 |
|
|
|
9.0 |
|
| Leasing Capital Expenditures |
|
|
0.0 |
|
|
|
2.1 |
|
|
|
2.1 |
|
|
|
22.9 |
|
|
|
22.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
48.2 |
|
|
$ |
7.5 |
|
|
$ |
55.7 |
|
|
$ |
33.9 |
|
|
$ |
31.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Estimated |
|
|
|
|
|
|
|
|
|
| |
|
Anchor
Opening |
|
|
Total
GLA (2) |
|
|
Owned
GLA (2) |
|
|
Net
Cost (3) |
|
|
Incurred
to Date |
|
|
Placed
in Service |
|
|
Anchors |
| Development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Orlando, FL |
|
|
4Q15 |
|
|
|
402 |
|
|
|
367 |
|
|
$ |
101.0 |
|
|
$ |
29.6 |
|
|
$ |
0.1 |
|
|
Epic Theater, Five Below, HomeGoods |
| Seabrook, NH |
|
|
2Q14 |
|
|
|
365 |
|
|
|
170 |
|
|
|
90.0 |
|
|
|
77.2 |
|
|
|
57.7 |
|
|
Walmart, Dick’s Sporting Goods, PetSmart, Michaels, Ulta |
| New Haven, CT |
|
|
4Q15 |
|
|
|
131 |
|
|
|
131 |
|
|
|
66.3 |
|
|
|
31.0 |
|
|
|
0.0 |
|
|
Fresh Market |
| Kansas City, KS |
|
|
3Q14 |
|
|
|
419 |
|
|
|
60 |
|
|
|
20.2 |
|
|
|
19.1 |
|
|
|
1.8 |
|
|
IKEA, Hobby Lobby |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,317 |
|
|
|
728 |
|
|
$ |
277.5 |
|
|
$ |
156.9 |
|
|
$ |
59.6 |
|
|
|
| Redevelopment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Los Angeles, CA |
|
|
|
|
|
|
211 |
|
|
|
211 |
|
|
$ |
69.7 |
|
|
$ |
11.7 |
|
|
$ |
2.4 |
|
|
Restoration Hardware, H&M, Forever 21 |
| San Juan, PR |
|
|
|
|
|
|
102 |
|
|
|
102 |
|
|
|
32.5 |
|
|
|
26.9 |
|
|
|
26.4 |
|
|
Food court, Victoria’s Secret, Aeropostale |
| Phoenix, AZ |
|
|
|
|
|
|
220 |
|
|
|
220 |
|
|
|
18.2 |
|
|
|
9.3 |
|
|
|
9.3 |
|
|
Sprouts, Michaels, Marshalls, PetSmart |
| Tampa, FL |
|
|
|
|
|
|
127 |
|
|
|
120 |
|
|
|
17.1 |
|
|
|
11.9 |
|
|
|
11.9 |
|
|
Ross Dress for Less, Marshalls, Michaels, PetSmart, Five Below |
| Richmond, VA |
|
|
|
|
|
|
133 |
|
|
|
66 |
|
|
|
16.7 |
|
|
|
6.1 |
|
|
|
4.4 |
|
|
Martin’s, Petco |
| Columbia, SC |
|
|
|
|
|
|
47 |
|
|
|
47 |
|
|
|
9.7 |
|
|
|
7.2 |
|
|
|
7.0 |
|
|
Nordstrom Rack |
| Chicago, IL |
|
|
|
|
|
|
22 |
|
|
|
22 |
|
|
|
8.8 |
|
|
|
7.0 |
|
|
|
1.5 |
|
|
Trader Joe’s, Sleepy’s, Old Navy |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
862 |
|
|
|
788 |
|
|
$ |
172.7 |
|
|
$ |
80.1 |
|
|
$ |
62.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
DDR’s |
|
|
Total |
|
|
DDR Share |
|
|
|
|
|
|
DDR’s |
|
|
Total |
|
|
DDR Share |
|
| Land Held (1) |
|
Own. % |
|
|
Acreage |
|
|
Acreage |
|
|
|
|
Land Held (1) |
|
Own. % |
|
|
Acreage |
|
|
Acreage |
|
| Chicago, IL |
|
|
50 |
% |
|
|
106 |
|
|
|
53 |
|
|
|
|
Toronto, CAN |
|
|
50 |
% |
|
|
29 |
|
|
|
14 |
|
| Gulfport, MS |
|
|
100 |
% |
|
|
86 |
|
|
|
86 |
|
|
|
|
Isabela, PR |
|
|
80 |
% |
|
|
11 |
|
|
|
9 |
|
| Ukiah, CA |
|
|
100 |
% |
|
|
66 |
|
|
|
66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Raleigh, NC |
|
|
100 |
% |
|
|
38 |
|
|
|
38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Basis at DDR share is $122.1 million. |
| (2) |
Includes only the expansion or redevelopment GLA. |
| (3) |
Includes receipts and expected future reductions from land sales and reimbursements. |
18
DDR Corp.
Unconsolidated Joint Ventures
$, GLA in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Partner |
|
DDR
Own % |
|
|
Operating
Properties |
|
|
Owned
GLA |
|
|
ABR |
|
|
Gross
Book
Value |
|
|
Debt |
|
| BRE DDR Retail |
|
Blackstone Real |
|
|
5 |
% |
|
|
70 |
|
|
|
11.4 |
|
|
|
$145.1 |
|
|
|
$1,734.3 |
|
|
|
$1,256.6 |
|
| Holdings III |
|
Estate Partners VII |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DDRTC Core |
|
TIAA-CREF |
|
|
15 |
% |
|
|
26 |
|
|
|
8.4 |
|
|
|
104.1 |
|
|
|
1,548.0 |
|
|
|
815.0 |
|
| Retail Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DDR Domestic |
|
Various |
|
|
20 |
% |
|
|
56 |
|
|
|
7.9 |
|
|
|
88.3 |
|
|
|
1,380.1 |
|
|
|
920.0 |
|
| Retail Fund I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DDR-SAU |
|
State of Utah |
|
|
20 |
% |
|
|
23 |
|
|
|
2.1 |
|
|
|
22.6 |
|
|
|
283.6 |
|
|
|
155.6 |
|
| Retail Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other |
|
Various |
|
|
Various |
|
|
|
13 |
|
|
|
2.0 |
|
|
|
20.2 |
|
|
|
243.4 |
|
|
|
140.3 |
|
| Coventry II (1) |
|
Coventry II Fund |
|
|
10% - 20 |
% |
|
|
20 |
|
|
|
3.0 |
|
|
|
28.9 |
|
|
|
361.4 |
|
|
|
265.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
|
|
|
|
|
|
208 |
|
|
|
34.8 |
|
|
|
$409.2 |
|
|
|
$5,550.8 |
|
|
|
$3,552.8 |
|
| (1) |
Includes 17 assets in which the Company does not have an economic interest. |
19
DDR Corp.
Joint Venture Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
At 100% |
|
|
At DDR Share |
|
| |
|
12M14 |
|
|
4Q14 |
|
|
4Q14 |
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
| Minimum rents (1) |
|
|
$359.2 |
|
|
|
$99.0 |
|
|
|
$14.9 |
|
| Percentage rent |
|
|
1.9 |
|
|
|
0.9 |
|
|
|
0.1 |
|
| Recoveries |
|
|
91.9 |
|
|
|
27.2 |
|
|
|
4.5 |
|
| Other revenues |
|
|
32.8 |
|
|
|
1.7 |
|
|
|
0.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
485.8 |
|
|
|
128.8 |
|
|
|
20.0 |
|
| Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating and maintenance |
|
|
112.8 |
|
|
|
28.8 |
|
|
|
4.3 |
|
| Real estate taxes |
|
|
54.9 |
|
|
|
17.0 |
|
|
|
2.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
167.7 |
|
|
|
45.8 |
|
|
|
7.0 |
|
|
|
|
|
| Net operating income (2) |
|
|
318.1 |
|
|
|
83.0 |
|
|
|
13.0 |
|
|
|
|
|
| Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense (3) |
|
|
(171.8 |
) |
|
|
(42.3 |
) |
|
|
(6.1 |
) |
| Depreciation and amortization |
|
|
(151.7 |
) |
|
|
(44.5 |
) |
|
|
(5.9 |
) |
| Impairment charges |
|
|
(21.6 |
) |
|
|
(21.0 |
) |
|
|
(4.3 |
) |
| Tax expense |
|
|
(6.6 |
) |
|
|
0.0 |
|
|
|
0.0 |
|
| Other expense, net |
|
|
(18.2 |
) |
|
|
(15.3 |
) |
|
|
(0.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(369.9 |
) |
|
|
(123.1 |
) |
|
|
(17.0 |
) |
| Loss from continuing operations |
|
|
(51.8 |
) |
|
|
(40.1 |
) |
|
|
(4.0 |
) |
| (Loss) income from discontinued operations (2) |
|
|
(13.9 |
) |
|
|
3.2 |
|
|
|
1.3 |
|
| Gain on disposition of discontinued operations, net |
|
|
55.0 |
|
|
|
26.8 |
|
|
|
4.3 |
|
| Gain on disposition of real estate, net |
|
|
10.1 |
|
|
|
6.3 |
|
|
|
0.0 |
|
| Disproportionate share of income (loss) (2) (4) |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
(1.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
(0.6 |
) |
|
|
(3.8 |
) |
|
|
(0.3 |
) |
| Non-controlling interests |
|
|
(2.0 |
) |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss attributable to unconsolidated joint ventures |
|
|
(2.6 |
) |
|
|
(3.8 |
) |
|
|
(0.3 |
) |
| Depreciation and amortization of real estate investments |
|
|
164.7 |
|
|
|
46.6 |
|
|
|
6.1 |
|
| Impairment of depreciable real estate |
|
|
32.7 |
|
|
|
21.0 |
|
|
|
4.3 |
|
| Gain on disposition of depreciable real estate, net |
|
|
(65.1 |
) |
|
|
(33.1 |
) |
|
|
(4.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Funds From Operations: |
|
|
$129.7 |
|
|
|
$30.7 |
|
|
|
$5.8 |
|
|
|
|
|
| Net income (loss) at DDR ownership interests |
|
|
$9.2 |
|
|
|
($0.3 |
) |
|
|
($0.3 |
) |
| Basis differences |
|
|
1.8 |
|
|
|
1.0 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity in net income of joint ventures |
|
|
11.0 |
|
|
|
0.7 |
|
|
|
0.7 |
|
| FFO at DDR’s ownership interests |
|
|
$30.3 |
|
|
|
$5.8 |
|
|
|
|
|
| Operating FFO at DDR’s ownership interests |
|
|
$31.4 |
|
|
|
$6.8 |
|
|
|
|
|
|
|
|
|
| (1) Straight-line rent, net |
|
|
3.6 |
|
|
|
1.2 |
|
|
|
0.1 |
|
| (2) DDR’s share of NOI from discontinued operations, promoted equity and minority interests |
|
|
|
|
|
|
|
|
|
|
0.4 |
|
| (3) Non-cash interest expense |
|
|
(4.9 |
) |
|
|
(2.0 |
) |
|
|
(0.1 |
) |
| (4) Adjustments represent the effect of promoted equity and minority interests |
|
|
|
|
|
|
|
|
|
|
|
|
20
DDR Corp.
Joint Venture Balance Sheet (1)
|
|
|
|
|
|
|
|
|
| |
|
At 100% |
|
| |
|
4Q14 |
|
|
4Q13 |
|
| Land |
|
$ |
1,439.8 |
|
|
$ |
1,275.2 |
|
| Buildings |
|
|
3,854.6 |
|
|
|
3,940.8 |
|
| Fixtures and tenant improvements |
|
|
200.7 |
|
|
|
266.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,495.1 |
|
|
|
5,482.9 |
|
| Less: Accumulated depreciation |
|
|
(773.2 |
) |
|
|
(839.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
4,721.9 |
|
|
|
4,643.0 |
|
| Land held for development and construction in progress |
|
|
55.7 |
|
|
|
116.1 |
|
|
|
|
|
|
|
|
|
|
| Real estate, net |
|
|
4,777.6 |
|
|
|
4,759.1 |
|
|
|
|
|
|
|
|
|
|
| Cash and restricted cash (2) |
|
|
100.8 |
|
|
|
282.9 |
|
| Receivables, including straight-line rent, net |
|
|
80.5 |
|
|
|
101.0 |
|
| Other assets, net |
|
|
394.7 |
|
|
|
196.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
5,353.6 |
|
|
|
5,339.6 |
|
|
|
|
| Mortgage debt |
|
|
3,552.8 |
|
|
|
3,282.6 |
|
| Notes and accrued interest payable to DDR |
|
|
144.8 |
|
|
|
127.7 |
|
| Other liabilities |
|
|
277.0 |
|
|
|
245.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
3,974.6 |
|
|
|
3,655.7 |
|
| Redeemable preferred equity |
|
|
305.3 |
|
|
|
71.8 |
|
| Accumulated equity |
|
|
1,073.7 |
|
|
|
1,612.1 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
5,353.6 |
|
|
$ |
5,339.6 |
|
|
|
| |
|
At DDR Share |
|
| |
|
4Q14 |
|
|
4Q13 |
|
| Land |
|
$ |
202.5 |
|
|
$ |
234.1 |
|
| Buildings |
|
|
555.5 |
|
|
|
800.8 |
|
| Fixtures and tenant improvements |
|
|
33.3 |
|
|
|
64.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
791.3 |
|
|
|
1,099.3 |
|
| Less: Accumulated depreciation |
|
|
(150.2 |
) |
|
|
(174.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
641.1 |
|
|
|
924.8 |
|
| Land held for development and construction in progress |
|
|
5.8 |
|
|
|
25.4 |
|
|
|
|
|
|
|
|
|
|
| Real estate, net |
|
|
646.9 |
|
|
|
950.2 |
|
|
|
|
|
|
|
|
|
|
| Cash and restricted cash |
|
|
16.8 |
|
|
|
81.0 |
|
| Receivables, including straight-line rent, net |
|
|
15.4 |
|
|
|
27.5 |
|
| Other assets, net (3) |
|
|
27.7 |
|
|
|
32.3 |
|
| Disproportionate share of equity (4) |
|
|
287.8 |
|
|
|
63.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
994.6 |
|
|
|
1,154.4 |
|
|
|
|
| Mortgage debt (5) (6) |
|
|
503.5 |
|
|
|
630.1 |
|
| Notes and accrued interest payable to DDR |
|
|
14.7 |
|
|
|
13.0 |
|
| Other liabilities |
|
|
29.2 |
|
|
|
57.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
547.4 |
|
|
|
700.3 |
|
| Redeemable preferred equity |
|
|
305.3 |
|
|
|
71.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
852.7 |
|
|
|
772.1 |
|
| Accumulated equity |
|
|
144.1 |
|
|
|
387.0 |
|
| Disproportionate share of equity (4) |
|
|
(2.2 |
) |
|
|
(4.7 |
) |
|
|
|
|
|
|
|
|
|
|
|
$ |
994.6 |
|
|
$ |
1,154.4 |
|
| (1) Exchange rate of BRL / USD at year end 2013 |
|
|
N/A |
|
|
|
2.35 |
|
| (2) Amount attributable to SSB BV Sarl at year end 2013 |
|
|
N/A |
|
|
|
191.9 |
|
| (3) Intangible assets at DDR share |
|
|
20.4 |
|
|
|
12.1 |
|
| (4) Adjustments represent promoted equity and minority interests |
|
|
|
|
|
|
|
|
| (5) Fair market value of debt adjustment at DDR’s share |
|
|
1.0 |
|
|
|
0.6 |
|
| (6) Non-recourse mortgage debt with a zero basis at DDR’s share |
|
$ |
17.4 |
|
|
$ |
20.9 |
|
21
DDR Corp.
Capital Structure
$, shares and units in
millions, except per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2014 |
|
|
December 31, 2013 |
|
| Capital Structure |
|
Amount |
|
|
% of Total |
|
|
Amount |
|
|
% of Total |
|
| Common Shares Equity |
|
$ |
6,648.1 |
|
|
|
54 |
% |
|
$ |
5,527.4 |
|
|
|
49 |
% |
| Perpetual Preferred Stock |
|
|
350.0 |
|
|
|
3 |
% |
|
|
405.0 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,998.1 |
|
|
|
57 |
% |
|
|
5,932.4 |
|
|
|
53 |
% |
|
|
|
|
|
| Unsecured Credit Facilities |
|
|
29.0 |
|
|
|
0 |
% |
|
|
29.1 |
|
|
|
0 |
% |
| Unsecured Term Loan |
|
|
350.0 |
|
|
|
3 |
% |
|
|
350.0 |
|
|
|
3 |
% |
| Unsecured Public Debt |
|
|
2,775.9 |
|
|
|
23 |
% |
|
|
2,775.4 |
|
|
|
25 |
% |
| Secured Term Loan |
|
|
400.0 |
|
|
|
3 |
% |
|
|
400.0 |
|
|
|
4 |
% |
| Fixed Rate Mortgage Debt |
|
|
1,560.9 |
|
|
|
13 |
% |
|
|
1,627.1 |
|
|
|
14 |
% |
| Variable Rate Mortgage Debt |
|
|
99.2 |
|
|
|
1 |
% |
|
|
97.7 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,215.0 |
|
|
|
43 |
% |
|
|
5,279.3 |
|
|
|
47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
12,213.1 |
|
|
|
100 |
% |
|
$ |
11,211.7 |
|
|
|
100 |
% |
|
|
|
|
|
| Capital Structure Detail |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Debt to Market Capitalization |
|
|
42.7 |
% |
|
|
|
|
|
|
47.1 |
% |
|
|
|
|
| Common Shares Outstanding |
|
|
360.7 |
|
|
|
|
|
|
|
359.2 |
|
|
|
|
|
| Operating Partnership Units |
|
|
1.4 |
|
|
|
|
|
|
|
0.4 |
|
|
|
|
|
| Market Value per Share |
|
$ |
18.36 |
|
|
|
|
|
|
$ |
15.37 |
|
|
|
|
|
| Accretion on Convertible Notes (excluded above) |
|
$ |
10.0 |
|
|
|
|
|
|
$ |
21.3 |
|
|
|
|
|
| Partners’ Share of Consolidated Debt (included above) |
|
$ |
9.9 |
|
|
|
|
|
|
$ |
19.4 |
|
|
|
|
|
| DDR Share of Unconsolidated Debt (excluded above) |
|
$ |
503.5 |
|
|
|
|
|
|
$ |
630.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Credit Ratings |
|
|
|
|
|
|
Covenants |
|
|
|
|
|
|
| |
|
Debt Rating |
|
Outlook |
|
|
|
|
Covenant
Threshold |
|
|
Actual
Covenant |
|
| Moody’s |
|
Baa2 |
|
|
Stable |
|
|
Total Debt to Real Estate Assets Ratio |
|
£ |
65 |
% |
|
|
49 |
% |
| S&P |
|
BBB- |
|
|
Stable |
|
|
Secured Debt to Assets Ratio |
|
£ |
40 |
% |
|
|
18 |
% |
| Fitch |
|
BBB- |
|
|
Stable |
|
|
Unencumbered Assets to Unsecured Debt |
|
³ |
135 |
% |
|
|
216 |
% |
|
|
|
|
|
|
|
|
Fixed Charge Coverage Ratio |
|
³ |
1.5x |
|
|
|
2.1x |
|
22
DDR Corp.
Debt / EBITDA
$ in millions
|
|
|
|
|
|
|
|
|
| |
|
4Q14 |
|
|
4Q13 |
|
| Consolidated |
|
|
|
|
|
|
|
|
| Net (loss) income to DDR |
|
($ |
10.7 |
) |
|
$ |
7.2 |
|
| Impairments |
|
|
11.1 |
|
|
|
0.4 |
|
| Executive separation charges |
|
|
5.4 |
|
|
|
0.0 |
|
| Depreciation and amortization |
|
|
106.7 |
|
|
|
103.7 |
|
| Interest expense |
|
|
61.0 |
|
|
|
59.8 |
|
| Gain on change in control of interests, net |
|
|
(0.2 |
) |
|
|
(18.8 |
) |
| Other expenses, net |
|
|
1.8 |
|
|
|
1.9 |
|
| Equity in net income of JVs |
|
|
(0.7 |
) |
|
|
(1.3 |
) |
| JV Impairments (at DDR share) |
|
|
21.6 |
|
|
|
1.0 |
|
| Income tax expense |
|
|
0.7 |
|
|
|
0.2 |
|
| EBITDA adjustments from discontinued operations |
|
|
(19.6 |
) |
|
|
12.2 |
|
| Gain on disposition of real estate, net |
|
|
(0.4 |
) |
|
|
(0.1 |
) |
| Adjustments for non-controlling interests |
|
|
(1.3 |
) |
|
|
(0.2 |
) |
| JV FFO (at DDR share) |
|
|
5.8 |
|
|
|
12.3 |
|
| Other JV adjustments (at DDR share) |
|
|
0.9 |
|
|
|
(0.2 |
) |
|
|
|
|
|
|
|
|
|
| EBITDA - current quarter |
|
|
182.1 |
|
|
|
178.1 |
|
| EBITDA - annualized |
|
|
728.4 |
|
|
|
712.4 |
|
|
|
|
| Consolidated debt |
|
|
5,234.7 |
|
|
|
5,294.7 |
|
| Partner share of consolidated debt |
|
|
(9.9 |
) |
|
|
(19.4 |
) |
| Face value adjustments |
|
|
(19.7 |
) |
|
|
(15.4 |
) |
| Cash and restricted cash |
|
|
(31.5 |
) |
|
|
(119.3 |
) |
|
|
|
|
|
|
|
|
|
| Net adjusted debt |
|
$ |
5,173.6 |
|
|
$ |
5,140.6 |
|
|
|
|
| Debt / EBITDA - Consolidated |
|
|
7.10x |
|
|
|
7.22x |
|
|
|
|
| Pro rata including JVs |
|
|
|
|
|
|
|
|
| EBITDA - current quarter |
|
|
188.7 |
|
|
|
190.8 |
|
| EBITDA - annualized |
|
|
754.8 |
|
|
|
763.2 |
|
|
|
|
| Consolidated net debt |
|
|
5,173.6 |
|
|
|
5,140.6 |
|
| JV debt (at DDR share) |
|
|
502.5 |
|
|
|
629.5 |
|
| Cash and restricted cash |
|
|
(16.8 |
) |
|
|
(81.0 |
) |
|
|
|
|
|
|
|
|
|
| Net adjusted debt |
|
$ |
5,659.3 |
|
|
$ |
5,689.1 |
|
|
|
|
| Debt / EBITDA - Pro rata |
|
|
7.50x |
|
|
|
7.45x |
|
23
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 |
|
$ |
29.0 |
|
|
$ |
29.0 |
|
|
|
2.19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Unsecured Term Loan |
|
|
350.0 |
|
|
|
350.0 |
|
|
|
3.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Unsecured Public Debt |
|
|
2,765.9 |
|
|
|
2,765.9 |
|
|
|
5.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Secured Term Loan |
|
|
400.0 |
|
|
|
400.0 |
|
|
|
1.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed Rate Mortgage Loans |
|
|
1,560.9 |
|
|
|
1,551.0 |
|
|
|
5.37 |
% |
|
$ |
2,195.7 |
|
|
$ |
378.5 |
|
|
|
5.32 |
% |
| Variable Rate Mortgage Loans |
|
|
99.2 |
|
|
|
99.2 |
|
|
|
1.38 |
% |
|
|
1,337.4 |
|
|
|
124.0 |
|
|
|
3.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
5,205.0 |
|
|
|
5,195.1 |
|
|
|
4.77 |
% |
|
|
3,533.1 |
|
|
|
502.5 |
|
|
|
4.75 |
% |
| Fair Market Value Adjustment |
|
|
29.7 |
|
|
|
29.7 |
|
|
|
|
|
|
|
19.7 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
5,234.7 |
|
|
$ |
5,224.8 |
|
|
|
4.77 |
% |
|
$ |
3,552.8 |
|
|
$ |
503.5 |
|
|
|
4.75 |
% |
|
|
|
|
|
|
|
| |
|
Scheduled
Principal
Payments |
|
|
Secured
Debt
Maturities |
|
|
Unsecured
Debt
Maturities |
|
|
Total 100% |
|
|
Total
Pro Rata |
|
|
Interest
Rate
Pro Rata |
|
| Consolidated Maturity Schedule (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
$ |
36.8 |
|
|
$ |
429.1 |
|
|
$ |
503.0 |
|
|
$ |
968.9 |
|
|
$ |
968.9 |
|
|
|
4.50 |
% |
| 2016 |
|
|
30.7 |
|
|
|
117.3 |
|
|
|
240.0 |
|
|
|
388.0 |
|
|
|
388.0 |
|
|
|
7.73 |
% |
| 2017 |
|
|
29.8 |
|
|
|
203.2 |
|
|
|
350.0 |
|
|
|
583.0 |
|
|
|
583.0 |
|
|
|
6.17 |
% |
| 2018 |
|
|
22.7 |
|
|
|
528.4 |
|
|
|
411.2 |
|
|
|
962.3 |
|
|
|
962.3 |
|
|
|
3.59 |
% |
| 2019 |
|
|
16.5 |
|
|
|
169.3 |
|
|
|
300.0 |
|
|
|
485.8 |
|
|
|
485.8 |
|
|
|
4.04 |
% |
| 2020 |
|
|
7.3 |
|
|
|
280.2 |
|
|
|
300.0 |
|
|
|
587.5 |
|
|
|
587.5 |
|
|
|
6.11 |
% |
| 2021 |
|
|
4.4 |
|
|
|
126.5 |
|
|
|
300.0 |
|
|
|
430.9 |
|
|
|
430.9 |
|
|
|
3.92 |
% |
| 2022 |
|
|
0.1 |
|
|
|
42.8 |
|
|
|
450.0 |
|
|
|
492.9 |
|
|
|
483.0 |
|
|
|
4.67 |
% |
| 2023 |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
300.0 |
|
|
|
300.0 |
|
|
|
300.0 |
|
|
|
3.38 |
% |
| 2024 and beyond |
|
|
0.0 |
|
|
|
15.0 |
|
|
|
0.0 |
|
|
|
15.0 |
|
|
|
15.0 |
|
|
|
0.40 |
% |
| Unsecured debt discount |
|
|
|
|
|
|
|
|
|
|
(9.3 |
) |
|
|
(9.3 |
) |
|
|
(9.3 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
148.3 |
|
|
$ |
1,911.8 |
|
|
$ |
3,144.9 |
|
|
$ |
5,205.0 |
|
|
$ |
5,195.1 |
|
|
|
4.77 |
% |
|
|
|
|
|
|
|
| Unconsolidated Maturity Schedule (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
$ |
9.4 |
|
|
$ |
174.9 |
|
|
$ |
0.0 |
|
|
$ |
184.3 |
|
|
$ |
32.9 |
|
|
|
6.46 |
% |
| 2016 |
|
|
9.5 |
|
|
|
31.1 |
|
|
|
0.0 |
|
|
|
40.6 |
|
|
|
7.7 |
|
|
|
6.72 |
% |
| 2017 |
|
|
8.9 |
|
|
|
1,337.6 |
|
|
|
0.0 |
|
|
|
1,346.5 |
|
|
|
260.2 |
|
|
|
5.52 |
% |
| 2018 |
|
|
4.7 |
|
|
|
185.2 |
|
|
|
0.0 |
|
|
|
189.9 |
|
|
|
32.0 |
|
|
|
4.60 |
% |
| 2019 |
|
|
4.5 |
|
|
|
1,201.7 |
|
|
|
0.0 |
|
|
|
1,206.2 |
|
|
|
99.5 |
|
|
|
2.08 |
% |
| 2020 |
|
|
4.7 |
|
|
|
60.6 |
|
|
|
0.0 |
|
|
|
65.3 |
|
|
|
7.8 |
|
|
|
5.23 |
% |
| 2021 |
|
|
3.9 |
|
|
|
80.5 |
|
|
|
0.0 |
|
|
|
84.4 |
|
|
|
31.7 |
|
|
|
5.41 |
% |
| 2022 |
|
|
2.3 |
|
|
|
244.1 |
|
|
|
0.0 |
|
|
|
246.4 |
|
|
|
12.6 |
|
|
|
4.39 |
% |
| 2023 |
|
|
1.9 |
|
|
|
95.5 |
|
|
|
0.0 |
|
|
|
97.4 |
|
|
|
7.3 |
|
|
|
4.37 |
% |
| 2024 and beyond |
|
|
0.5 |
|
|
|
71.6 |
|
|
|
0.0 |
|
|
|
72.1 |
|
|
|
10.8 |
|
|
|
4.30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
50.3 |
|
|
$ |
3,482.8 |
|
|
$ |
0.0 |
|
|
$ |
3,533.1 |
|
|
$ |
502.5 |
|
|
|
4.75 |
% |
|
|
|
|
|
|
|
| % of Total |
|
Consolidated |
|
|
|
|
|
|
|
|
Unconsolidated |
|
|
|
|
|
|
|
| Fixed |
|
|
91.8 |
% |
|
|
|
|
|
|
|
|
|
|
62.1 |
% |
|
|
|
|
|
|
|
|
| Variable |
|
|
8.2 |
% |
|
|
|
|
|
|
|
|
|
|
37.9 |
% |
|
|
|
|
|
|
|
|
| Recourse to DDR |
|
|
68.7 |
% |
|
|
|
|
|
|
|
|
|
|
0.0 |
% |
|
|
|
|
|
|
|
|
| Non-recourse to DDR |
|
|
31.3 |
% |
|
|
|
|
|
|
|
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
| (1) |
Assumes borrower extension options are exercised. |
24
DDR Corp.
Consolidated Debt Detail
$ in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Balance
100% |
|
|
Balance
DDR Share |
|
|
Maturity
Date (1) |
|
|
Interest
Rate (2) (3) |
|
| Senior Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unsecured Revolver ($750m) |
|
$ |
29.0 |
|
|
$ |
29.0 |
|
|
|
04/18 |
|
|
|
L+115 |
|
| Unsecured Revolver ($65m) |
|
|
0.0 |
|
|
|
0.0 |
|
|
|
04/18 |
|
|
|
L+115 |
|
| Unsecured Term Loan ($50m) (4) |
|
|
50.0 |
|
|
|
50.0 |
|
|
|
01/17 |
|
|
|
L+150 |
|
| Unsecured Term Loan ($300m) (4) |
|
|
300.0 |
|
|
|
300.0 |
|
|
|
01/19 |
|
|
|
L+190 |
|
| Secured Term Loan ($400m) (4) |
|
|
400.0 |
|
|
|
400.0 |
|
|
|
04/18 |
|
|
|
L+135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
779.0 |
|
|
$ |
779.0 |
|
|
|
|
|
|
|
|
|
| Public Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unsecured Notes |
|
$ |
153.0 |
|
|
$ |
153.0 |
|
|
|
05/15 |
|
|
|
5.50 |
% |
| Convertible Notes (5) |
|
|
340.0 |
|
|
|
340.0 |
|
|
|
11/15 |
|
|
|
1.75 |
% |
| Unsecured Notes |
|
|
239.7 |
|
|
|
239.7 |
|
|
|
03/16 |
|
|
|
9.63 |
% |
| Unsecured Notes |
|
|
300.0 |
|
|
|
300.0 |
|
|
|
04/17 |
|
|
|
7.50 |
% |
| Unsecured Notes |
|
|
299.1 |
|
|
|
299.1 |
|
|
|
04/18 |
|
|
|
4.75 |
% |
| Unsecured Notes |
|
|
82.2 |
|
|
|
82.2 |
|
|
|
07/18 |
|
|
|
7.50 |
% |
| Unsecured Notes |
|
|
298.5 |
|
|
|
298.5 |
|
|
|
09/20 |
|
|
|
7.88 |
% |
| Unsecured Notes |
|
|
298.3 |
|
|
|
298.3 |
|
|
|
01/21 |
|
|
|
3.50 |
% |
| Unsecured Notes |
|
|
456.6 |
|
|
|
456.6 |
|
|
|
07/22 |
|
|
|
4.63 |
% |
| Unsecured Notes |
|
|
298.5 |
|
|
|
298.5 |
|
|
|
05/23 |
|
|
|
3.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,765.9 |
|
|
$ |
2,765.9 |
|
|
|
|
|
|
|
|
|
| Mortgage Debt: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Hamilton Commons, NJ |
|
|
1.4 |
|
|
|
1.4 |
|
|
|
09/15 |
|
|
|
4.70 |
% |
| Woodfield Village Green, IL |
|
|
65.4 |
|
|
|
65.4 |
|
|
|
09/15 |
|
|
|
6.40 |
% |
| Carillon Place, FL |
|
|
25.6 |
|
|
|
25.6 |
|
|
|
09/15 |
|
|
|
6.40 |
% |
| Fairfax Towne Center, VA |
|
|
38.9 |
|
|
|
38.9 |
|
|
|
09/15 |
|
|
|
6.40 |
% |
| Shoppers World, MA |
|
|
127.4 |
|
|
|
127.4 |
|
|
|
09/15 |
|
|
|
6.40 |
% |
| Winter Garden Village, FL |
|
|
103.8 |
|
|
|
103.8 |
|
|
|
10/15 |
|
|
|
6.10 |
% |
| Cumming Town Center, GA |
|
|
33.7 |
|
|
|
33.7 |
|
|
|
10/15 |
|
|
|
6.10 |
% |
| Silver Spring Square, PA |
|
|
38.0 |
|
|
|
38.0 |
|
|
|
10/15 |
|
|
|
6.35 |
% |
|
|
|
|
|
| Tops Plaza, NY |
|
|
1.9 |
|
|
|
1.9 |
|
|
|
01/16 |
|
|
|
8.00 |
% |
| Freedom Plaza, NY |
|
|
0.8 |
|
|
|
0.8 |
|
|
|
09/16 |
|
|
|
7.85 |
% |
| Sycamore Crossing, OH |
|
|
63.5 |
|
|
|
63.5 |
|
|
|
12/16 |
|
|
|
5.81 |
% |
| The Maxwell, IL |
|
|
55.5 |
|
|
|
55.5 |
|
|
|
12/16 |
|
|
|
L+155 |
|
|
|
|
|
|
| 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 |
|
|
3.4 |
|
|
|
3.4 |
|
|
|
08/17 |
|
|
|
6.00 |
% |
| Connecticut Commons, CT |
|
|
47.4 |
|
|
|
47.4 |
|
|
|
10/17 |
|
|
|
5.01 |
% |
| Riverdale Village, MN |
|
|
26.0 |
|
|
|
26.0 |
|
|
|
10/17 |
|
|
|
5.01 |
% |
| Riverdale Village Perimeter, MN |
|
|
32.6 |
|
|
|
32.6 |
|
|
|
10/17 |
|
|
|
5.01 |
% |
| Lake Brandon Village, FL |
|
|
9.4 |
|
|
|
9.4 |
|
|
|
10/17 |
|
|
|
5.01 |
% |
| Shoppers World Brookfield, WI |
|
|
5.9 |
|
|
|
5.9 |
|
|
|
10/17 |
|
|
|
5.01 |
% |
| Marketplace of Brown Deer, WI |
|
|
4.2 |
|
|
|
4.2 |
|
|
|
10/17 |
|
|
|
5.01 |
% |
25
DDR Corp.
Consolidated Debt Detail
$ in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Balance
100% |
|
|
Balance
DDR Share |
|
|
Maturity
Date (1) |
|
|
Interest
Rate (2) (3) |
|
| Brown Deer Center, WI |
|
|
7.9 |
|
|
|
7.9 |
|
|
|
10/17 |
|
|
|
5.01 |
% |
| Thruway Plaza (Walmart), NY |
|
|
1.6 |
|
|
|
1.6 |
|
|
|
10/17 |
|
|
|
6.78 |
% |
|
|
|
|
|
| Tops Plaza, NY |
|
|
6.6 |
|
|
|
6.6 |
|
|
|
01/18 |
|
|
|
7.05 |
% |
| Falcon Ridge Town Center, CA |
|
|
14.7 |
|
|
|
14.7 |
|
|
|
01/18 |
|
|
|
5.91 |
% |
| Walmart Supercenter, SC |
|
|
3.5 |
|
|
|
3.5 |
|
|
|
01/18 |
|
|
|
6.00 |
% |
| Fortuna Center, VA |
|
|
12.1 |
|
|
|
12.1 |
|
|
|
02/18 |
|
|
|
6.18 |
% |
| Johns Creek Town Center, GA |
|
|
24.5 |
|
|
|
24.5 |
|
|
|
03/18 |
|
|
|
5.06 |
% |
| Southland Crossings, OH |
|
|
24.5 |
|
|
|
24.5 |
|
|
|
03/18 |
|
|
|
5.06 |
% |
| The Promenade at Brentwood, MO |
|
|
31.0 |
|
|
|
31.0 |
|
|
|
03/18 |
|
|
|
5.06 |
% |
| DDR Headquarters, OH |
|
|
28.7 |
|
|
|
28.7 |
|
|
|
03/18 |
|
|
|
L + 105 |
|
| Mohawk Commons, NY |
|
|
9.8 |
|
|
|
9.8 |
|
|
|
12/18 |
|
|
|
5.75 |
% |
|
|
|
|
|
| Lowe’s, TN |
|
|
4.1 |
|
|
|
4.1 |
|
|
|
01/19 |
|
|
|
7.66 |
% |
| Nassau Park Pavilion, NJ |
|
|
57.0 |
|
|
|
57.0 |
|
|
|
02/19 |
|
|
|
3.40 |
% |
| Bandera Pointe, TX |
|
|
24.8 |
|
|
|
24.8 |
|
|
|
02/19 |
|
|
|
3.40 |
% |
| Presidential Commons, GA |
|
|
21.2 |
|
|
|
21.2 |
|
|
|
02/19 |
|
|
|
3.40 |
% |
| Plaza Cayey, PR |
|
|
20.9 |
|
|
|
20.9 |
|
|
|
06/19 |
|
|
|
7.59 |
% |
| Plaza Fajardo, PR |
|
|
25.2 |
|
|
|
25.2 |
|
|
|
06/19 |
|
|
|
7.59 |
% |
| Plaza Isabela, PR |
|
|
22.1 |
|
|
|
22.1 |
|
|
|
06/19 |
|
|
|
7.59 |
% |
| Plaza Walmart, PR |
|
|
11.8 |
|
|
|
11.8 |
|
|
|
06/19 |
|
|
|
7.59 |
% |
| Mariner Square, FL |
|
|
2.6 |
|
|
|
2.6 |
|
|
|
09/19 |
|
|
|
9.75 |
% |
|
|
|
|
|
| Northland Square, IA |
|
|
5.1 |
|
|
|
5.1 |
|
|
|
01/20 |
|
|
|
9.38 |
% |
| Plaza Rio Hondo, PR |
|
|
125.7 |
|
|
|
125.7 |
|
|
|
01/20 |
|
|
|
3.95 |
% |
| Easton Marketplace, OH |
|
|
50.2 |
|
|
|
50.2 |
|
|
|
01/20 |
|
|
|
3.95 |
% |
| The Fountains, FL |
|
|
45.8 |
|
|
|
45.8 |
|
|
|
01/20 |
|
|
|
3.95 |
% |
| Perimeter Pointe, GA |
|
|
43.3 |
|
|
|
43.3 |
|
|
|
01/20 |
|
|
|
3.95 |
% |
| Polaris Towne Center, OH |
|
|
43.7 |
|
|
|
43.7 |
|
|
|
04/20 |
|
|
|
6.76 |
% |
|
|
|
|
|
| Chapel Hills West, CO |
|
|
12.5 |
|
|
|
12.5 |
|
|
|
06/21 |
|
|
|
5.49 |
% |
| West Valley Marketplace, PA |
|
|
10.0 |
|
|
|
10.0 |
|
|
|
07/21 |
|
|
|
6.95 |
% |
| Plaza Escorial, PR |
|
|
74.2 |
|
|
|
74.2 |
|
|
|
07/21 |
|
|
|
3.59 |
% |
| Wrangleboro Consumer Sq, NJ |
|
|
60.8 |
|
|
|
60.8 |
|
|
|
10/21 |
|
|
|
5.41 |
% |
| Chapel Hills East, CO |
|
|
8.5 |
|
|
|
8.5 |
|
|
|
12/21 |
|
|
|
5.24 |
% |
|
|
|
|
|
| Paradise Village Gateway, AZ |
|
|
30.0 |
|
|
|
20.1 |
|
|
|
01/22 |
|
|
|
4.65 |
% |
| Macedonia Commons, OH |
|
|
19.4 |
|
|
|
19.4 |
|
|
|
02/22 |
|
|
|
5.71 |
% |
|
|
|
|
|
| Gulfport Promenade, MS |
|
|
15.0 |
|
|
|
15.0 |
|
|
|
12/37 |
|
|
|
S + 37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,660.1 |
|
|
$ |
1,650.2 |
|
|
|
|
|
|
|
|
|
| FMV adjustment - assumed debt |
|
|
29.7 |
|
|
|
29.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
1,689.8 |
|
|
$ |
1,679.9 |
|
|
|
|
|
|
|
|
|
26
DDR Corp.
Consolidated Debt Detail
$ in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Balance
100% |
|
|
Balance
DDR Share |
|
|
Maturity
Date (1) |
|
|
Interest
Rate (2) (3) |
|
| Rate Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed |
|
$ |
4,776.8 |
|
|
$ |
4,766.9 |
|
|
|
4.0 years |
|
|
|
5.06 |
% |
| Variable |
|
|
428.2 |
|
|
|
428.2 |
|
|
|
3.8 years |
|
|
|
1.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
5,205.0 |
|
|
$ |
5,195.1 |
|
|
|
3.9 years |
|
|
|
4.77 |
% |
| Perpetual Preferred Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class J |
|
$ |
200.0 |
|
|
$ |
200.0 |
|
|
|
Perpetual |
|
|
|
6.500 |
% |
| Class K |
|
|
150.0 |
|
|
|
150.0 |
|
|
|
Perpetual |
|
|
|
6.250 |
% |
|
|
|
|
|
| Interest Rate Swaps |
|
|
Notional |
|
|
|
Rate |
|
|
|
Fixed |
|
|
|
Termination |
|
| Underlying Debt Hedged: |
|
|
Amount |
|
|
|
Hedged |
|
|
|
Rate |
|
|
|
Date |
|
| Unsecured Term Loan |
|
$ |
50.0 |
|
|
|
1 mo. LIBOR |
|
|
|
0.56 |
% |
|
|
6/1/15 |
|
| Secured Term Loan |
|
|
100.0 |
|
|
|
1 mo. LIBOR |
|
|
|
0.53 |
% |
|
|
7/1/15 |
|
| Mortgage Portfolio |
|
|
80.0 |
|
|
|
1 mo. LIBOR |
|
|
|
2.81 |
% |
|
|
9/1/17 |
|
| Unsecured Term Loan |
|
|
100.0 |
|
|
|
1 mo. LIBOR |
|
|
|
0.88 |
% |
|
|
1/2/18 |
|
| Unsecured Term Loan |
|
|
200.0 |
|
|
|
1 mo. LIBOR |
|
|
|
1.54 |
% |
|
|
2/1/19 |
|
| (1) |
Assumes borrower extension options are exercised. |
| (2) |
L = LIBOR, S = SIFMA. |
| (3) |
Does not include discounts or premiums. |
| (4) |
The $350 million unsecured term loan and $100 million of the secured term loan were repaid with proceeds from bond issuance on January 12, 2015. |
| (5) |
The $350 million face value of the convertible notes is to be settled in cash. Any premium may be net settled prior to
November 2015 with DDR’s common stock or cash at DDR’s option once the stock price
rises above 125% of the $14.85 conversion price (as of December 31, 2014) for a specified period of time as outlined in the Prospectus Supplement dated November 1, 2010. The conversion price is subject to future adjustments, including the
declaration of a quarterly dividend. No dilution assumed for purposes of calculating FFO or Operating FFO as of December 31, 2014, since the market trigger has not been achieved and the notes were not convertible. Included in this amount is a
$10.0 million reduction as compared to the face value of the convertible notes representing the remaining accretion of the initial conversion valuation. |
27
DDR Corp.
Unconsolidated Debt Detail
$ in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Balance
100% |
|
|
Balance
DDR Share |
|
|
Maturity
Date (1) |
|
|
Interest
Rate (2) (3) |
|
| BRE DDR Retail Holdings III |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Telegraph Plaza, MI |
|
$ |
4.9 |
|
|
$ |
0.2 |
|
|
|
12/16 |
|
|
|
5.99 |
% |
| Camp Creek, GA |
|
|
42.0 |
|
|
|
2.1 |
|
|
|
12/18 |
|
|
|
4.62 |
% |
| May 2019 Loan Pool (2 assets) |
|
|
20.8 |
|
|
|
1.0 |
|
|
|
05/19 |
|
|
|
4.85 |
% |
| November 2019 Loan Pool (46 assets) |
|
|
800.0 |
|
|
|
40.0 |
|
|
|
11/19 |
|
|
|
L + 160 |
|
| 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 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,236.9 |
|
|
$ |
61.8 |
|
|
|
|
|
|
|
|
|
| DDR Domestic Retail Fund I |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Village Center, WI |
|
$ |
10.2 |
|
|
$ |
2.0 |
|
|
|
04/15 |
|
|
|
4.21 |
% |
| West Falls Plaza, NJ |
|
|
9.9 |
|
|
|
2.0 |
|
|
|
04/15 |
|
|
|
4.21 |
% |
| July 2017 Loan Pool (52 assets) |
|
|
883.5 |
|
|
|
176.7 |
|
|
|
07/17 |
|
|
|
5.60 |
% |
| Heather Island, FL |
|
|
4.5 |
|
|
|
0.9 |
|
|
|
02/18 |
|
|
|
3.56 |
% |
| Hilliard Rome, OH |
|
|
11.9 |
|
|
|
2.4 |
|
|
|
02/18 |
|
|
|
3.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
920.0 |
|
|
$ |
184.0 |
|
|
|
|
|
|
|
|
|
| DDRTC Core Retail Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pool 1 (9 assets) |
|
$ |
350.2 |
|
|
$ |
52.5 |
|
|
|
03/17 |
|
|
|
5.45 |
% |
| Pool 5 (11 assets) (3) |
|
|
217.0 |
|
|
|
32.6 |
|
|
|
02/19 |
|
|
|
L + 180 |
|
| Pool 3 (6 assets) (3) |
|
|
165.3 |
|
|
|
24.8 |
|
|
|
03/19 |
|
|
|
L + 225 |
|
| Birkdale Village, NC |
|
|
82.5 |
|
|
|
12.4 |
|
|
|
04/24 |
|
|
|
4.30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
815.0 |
|
|
$ |
122.3 |
|
|
|
|
|
|
|
|
|
| Coventry II |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Bloomfield Park, MI (4) |
|
$ |
21.9 |
|
|
$ |
0.0 |
|
|
|
12/08 |
|
|
|
P+300 |
|
| DDR SM (10 assets) (4) |
|
|
32.7 |
|
|
|
6.5 |
|
|
|
09/14 |
|
|
|
L + 525 |
|
| Totem Lake Mall, WA (4) |
|
|
27.5 |
|
|
|
5.5 |
|
|
|
06/15 |
|
|
|
L + 650 |
|
| Buena Park, CA (3) |
|
|
73.0 |
|
|
|
14.6 |
|
|
|
06/15 |
|
|
|
L + 625 |
|
| DDR SM (7 assets) (4) |
|
|
27.0 |
|
|
|
5.4 |
|
|
|
09/16 |
|
|
|
6.75 |
% |
| Christown Spectrum Mall, AZ |
|
|
64.9 |
|
|
|
13.0 |
|
|
|
04/18 |
|
|
|
4.80 |
% |
| Fairplain Plaza, MI |
|
|
18.3 |
|
|
|
3.7 |
|
|
|
05/23 |
|
|
|
4.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
265.3 |
|
|
$ |
48.7 |
|
|
|
|
|
|
|
|
|
28
DDR Corp.
Unconsolidated Debt Detail
$ in millions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Balance
100% |
|
|
Balance
DDR Share |
|
|
Maturity
Date (1) |
|
|
Interest
Rate (2) (3) |
|
| DDR-SAU Retail Fund |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| DDR-SAU Retail Fund (14 assets) |
|
$ |
84.8 |
|
|
$ |
17.0 |
|
|
|
09/17 |
|
|
|
4.74 |
% |
| DDR-SAU Retail Fund (9 assets) |
|
|
70.8 |
|
|
|
14.1 |
|
|
|
04/18 |
|
|
|
4.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
155.6 |
|
|
$ |
31.1 |
|
|
|
|
|
|
|
|
|
| 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) |
|
|
19.7 |
|
|
|
5.0 |
|
|
|
10/20 |
|
|
|
5.25 |
% |
| Sun Center Limited, OH |
|
|
22.3 |
|
|
|
17.7 |
|
|
|
05/21 |
|
|
|
5.99 |
% |
| RVIP IIIB, Deer Park, IL |
|
|
71.3 |
|
|
|
18.4 |
|
|
|
09/21 |
|
|
|
4.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
140.3 |
|
|
$ |
54.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
$ |
3,533.1 |
|
|
$ |
502.5 |
|
|
|
|
|
|
|
|
|
| FMV Adjustment - Assumed Debt |
|
|
19.7 |
|
|
|
1.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
$ |
3,552.8 |
|
|
$ |
503.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rate Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fixed |
|
$ |
2,195.7 |
|
|
$ |
378.5 |
|
|
|
3.4 years |
|
|
|
5.32 |
% |
| Variable |
|
|
1,337.4 |
|
|
|
124.0 |
|
|
|
3.5 years |
|
|
|
3.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
3,533.1 |
|
|
$ |
502.5 |
|
|
|
3.5 years |
|
|
|
4.75 |
% |
|
|
|
|
|
| Interest Rate Swaps |
|
|
Notional |
|
|
|
Rate |
|
|
|
Fixed |
|
|
|
Termination |
|
| Underlying Debt Hedged: |
|
|
Amount |
|
|
|
Hedged |
|
|
|
Rate |
|
|
|
Date |
|
| Mortgage Loan |
|
$ |
42.0 |
|
|
|
1 mo. LIBOR |
|
|
|
1.87 |
% |
|
|
12/1/18 |
|
| (1) |
Assumes borrower extension options are exercised. |
|
|
|
| (3) Loans with floor interest rates: |
|
Floor: |
| DDRTC Holdings Pool 5 (11 assets) |
|
1 mo. LIBOR of 0.25% |
| DDRTC Holdings Pool 3 (6 assets) |
|
1 mo. LIBOR of 0.25% |
| Buena Park, CA |
|
1 mo. LIBOR of 0.75% |
| (4) |
Includes $109.1 million of non-recourse debt ($17.4 million at DDR’s share) associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income.
|
29
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 |
| Capital One |
|
Chris Lucas |
|
christopher.lucas@capitalone.com |
|
|
(571 |
)633-8151 |
| Citigroup |
|
Michael Bilerman |
|
michael.bilerman@citi.com |
|
|
(212 |
)816-1383 |
|
|
Christy McElroy |
|
christy.mcelroy@citi.com |
|
|
(212 |
)816-6981 |
| Cowen & Company |
|
Jim Sullivan |
|
james.sullivan@cowen.com |
|
|
(646 |
)562-1380 |
| Credit Suisse |
|
Ian Weissman |
|
ian.weissman@credit-suisse.com |
|
|
(212 |
)538-6889 |
|
|
George Auerbach |
|
george.auerbach@credit-suisse.com |
|
|
(212 |
)538-8082 |
| Deutsche Bank |
|
Vincent Chao |
|
vincent.chao@db.com |
|
|
(212 |
)250-6799 |
| DISCERN |
|
Dave Wigginton |
|
dwigginton@discern.com |
|
|
(646 |
)863-4177 |
| 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 |
|
Cedrik Lachance |
|
clachance@greenstreetadvisors.com |
|
|
(949 |
)640-8780 |
|
|
Jason White |
|
jwhite@greenstreetadvisors.com |
|
|
(949 |
)640-8780 |
| Hilliard Lyons |
|
Carol Kemple |
|
ckemple@hilliard.com |
|
|
(502 |
)588-1839 |
| Jefferies and Company |
|
Tayo Okusanya |
|
tokusanya@jefferies.com |
|
|
(212 |
)336-7076 |
| J.P. Morgan |
|
Michael Mueller |
|
michael.w.mueller@jpmorgan.com |
|
|
(212 |
)622-6689 |
| KeyBanc Capital Markets |
|
Jordan Sadler |
|
jsadler@keybanccm.com |
|
|
(917 |
)368-2280 |
|
|
Todd Thomas |
|
tthomas@keybanccm.com |
|
|
(917 |
)368-2286 |
| MLV & Co. |
|
Paul Morgan |
|
pmorgan@mlvco.com |
|
|
(415 |
)325-4187 |
| Morgan Stanley |
|
Haendel St. Juste |
|
haendel.stjuste@morganstanley.com |
|
|
(212 |
)761-0071 |
|
|
Catherine Klinchuch |
|
catherine.klinchuch@morganstanley.com |
|
|
(212 |
)296-8581 |
| RBC Capital Markets |
|
Rich Moore |
|
rich.moore@rbccm.com |
|
|
(440 |
)715-2646 |
| 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 |
|
Ross Nussbaum |
|
ross.nussbaum@ubs.com |
|
|
(212 |
)713-2484 |
|
|
Jeremy Metz |
|
jeremy.metz@ubs.com |
|
|
(212 |
)713-2429 |
| Wells Fargo |
|
Jeff Donnelly |
|
jeff.donnelly@wellsfargo.com |
|
|
(617 |
)603-4262 |
|
|
Tamara Fique |
|
tamara.fique@wellsfargo.com |
|
|
(443 |
)263-6568 |
|
|
|
|
| Fixed Income Research |
|
|
|
|
|
|
|
|
| Barclays |
|
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@wachovia.com |
|
|
(704 |
)715-8455 |
30
DDR Corp.
Notable Accounting and Supplemental Policies
Revenues
| • |
|
Percentage and overage rents are recognized after the tenants’ reported sales have exceeded the applicable sales breakpoint. |
| • |
|
Tenant reimbursements are recognized in the period in which the expenses are incurred. |
| • |
|
Lease termination fees are recognized upon termination of a tenant’s lease when the Company has no further obligations under the lease. |
General and Administrative Expenses
| • |
|
General and administrative expenses include certain internal leasing salaries, legal salaries and related expenses associated with the leasing of space which are charged to operations as incurred. |
| • |
|
All internal and external acquisition costs are expensed as incurred. |
| • |
|
The Company does not capitalize any executive officer compensation. |
| • |
|
General and administrative expenses include executive property management compensation and related expenses. Property management services’ direct compensation is reflected in operating and maintenance expenses.
|
Deferred Financing Costs
| • |
|
Costs incurred in obtaining financing are included in deferred charges and amortized on a straight-line basis over the term of the related debt agreement; such amortization is reflected as interest expense in the
consolidated statements of operations. |
Real Estate
| • |
|
Real estate assets are stated at cost less accumulated depreciation, which, in the opinion of management, is not in excess of the individual property’s estimated undiscounted future cash flows, including estimated
proceeds from disposition. |
| • |
|
Construction in progress includes shopping center developments and significant expansions and redevelopments. |
| • |
|
Acquisitions of a partner’s interest in an unconsolidated joint venture in which a change of control has occurred are recorded at fair value. |
| • |
|
Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets as follows: |
|
|
|
| Buildings |
|
20 to 40 years |
| Building Improvements |
|
5 to 20 years |
| Furniture/Fixtures/ |
|
Shorter of economic life or lease terms |
| Tenant Improvements |
|
|
31
DDR Corp.
Notable Accounting and Supplemental Policies
Capitalization
| • |
|
Expenditures for maintenance and repairs are charged to operations as incurred. Renovations and expenditures that improve or extend the life of the asset are capitalized. |
| • |
|
The Company capitalizes interest on funds used for the construction or expansion of shopping centers and certain construction administration costs. Capitalization of interest and administration costs ceases when
construction activities are completed and the property is available for occupancy by tenants or when activities are suspended. |
| • |
|
Interest expense and real estate taxes incurred during construction are capitalized and depreciated over the building life. |
Gains on Sales of Real Estate
| • |
|
Gains on sales of real estate generally related to the sale of outlots and land adjacent to existing shopping centers are recognized at closing when the earnings process is deemed to be complete. |
| • |
|
Gains or losses on the sales of operating shopping centers are generally reflected as discontinued operations. |
Leasing Spreads
| • |
|
Leasing spreads are calculated by comparing the prior tenant’s annual base rent in the final year of the old lease to the new tenant’s annual base rent in the first year of the new lease. The reported
calculation, “Comparable”, only includes deals executed within one year of the date that the prior tenant vacated. “Non-comp” deals consist of deals not executed within one year of the date the prior tenant vacated, deals which
resulted in a significant difference in size, or deals for space which was vacant at acquisition. |
Same Store NOI (“SSNOI”)
| • |
|
Excludes development, redevelopment, straight-line rental income and expenses, lease termination income, FMV of leases and provisions for uncollectible amounts and/or recoveries thereof; includes assets owned in
comparable periods (15 months for quarter comparisons). |
Net Effective Rents
| • |
|
Net effective rents are calculated 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.
|
32
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