Ohio | 1-11690 | 34-1723097 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation) | File Number) | Identification No.) |
3300 Enterprise Parkway, Beachwood, Ohio | 44122 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit | ||
No. | Description | |
99.1
|
News release dated as of April 27, 2011. | |
99.2
|
Quarterly financial supplement dated as of March 31, 2011. |
Developers Diversified Realty Corporation | ||||
(Registrant) | ||||
Date April 27, 2011
|
/s/ Christa A. Vesy
|
|||
Senior Vice President and Chief Accounting Officer |
Exhibit | ||
No. | Description | |
99.1
|
News release dated as of April 27, 2011. | |
99.2
|
Quarterly financial supplement dated as of March 31, 2011. |
Media Contact:
|
Investor Contact: | |
Marty Richmond
|
Kate Deck | |
216-755-5500
|
216-755-5500 | |
mrichmond@ddr.com
|
kdeck@ddr.com |
| Reported operating FFO of $0.24 per diluted share, which excludes certain non-operating items | ||
| Maintained strong operating performance with the execution of 428 total leases for over 2.6 million square feet | ||
| The portfolio leased rate increased to 92.4% at March 31, 2011 from 92.3% at December 31, 2010 and 91.3% at March 31, 2010; including Brazil, the March 31, 2011 blended leased rate was 92.6% | ||
| Generated positive leasing spreads, with new leases at 9.0% and renewals at 4.9% for a blended overall spread of 5.4%, which is consistent with the blended spread of 5.4% in the fourth quarter of 2010 and an improvement from -2.7% in the first quarter of 2010 | ||
| Reported same store net operating income growth of 3.9% as compared to an increase of 3.6% in the fourth quarter of 2010 and a decrease of 2.6% in the first quarter of 2010 | ||
| Completed $40 million of acquisitions | ||
| Completed $43 million of asset sales, of which the Companys pro-rata share was $20 million | ||
| Issued $300 million aggregate principal amount of 4.75% senior unsecured notes due April 2018 | ||
| Unconsolidated joint venture in Brazil completed an initial public offering raising US$280 million of gross proceeds | ||
| Raised $190.2 million of equity proceeds in connection with the exercise of warrants for 10 million common shares in March 2011 and through the issuance of 9.5 million common shares in April 2011, which were utilized to redeem $180 million of 8.0% Class G preferred shares in April 2011 |
Three Months | ||||
Non-cash impairment charges consolidated assets |
$ | 3.8 | ||
Executive separation charge |
10.7 | |||
Non-cash gain on equity derivative instruments (Otto Family
warrants) |
(21.9 | ) | ||
Other income, net |
(1.3 | ) | ||
Equity in net income of joint ventures loss on asset sales |
1.6 | |||
Gain on change in control of interests |
(21.7 | ) | ||
Discontinued operations non-cash consolidated impairment
charges and loss on sales |
1.9 | |||
Loss on disposition of real estate (land), net |
1.0 | |||
Total Adjustments from FFO to operating FFO |
$ | (25.9 | ) | |
| Executed 168 new leases aggregating approximately 0.8 million square feet and 260 renewals aggregating approximately 1.8 million square feet. | ||
| Total portfolio average annualized base rent per occupied square foot as of March 31, 2011 was $13.37, as compared to $13.04 at March 31, 2010. | ||
| The portfolio leased rate was 92.4% as of March 31, 2011, as compared to 91.3% at March 31, 2010. The U.S. portfolio and the Brazil portfolio blended leased rate was 92.6% at March 31, 2011. | ||
| On a cash basis, rental rates for new leases increased by 9.0% over prior rents and renewals increased by 4.9%. The continued strong leasing spreads are consistent with the blended spread of 5.4% for the portfolio reported in the fourth quarter of 2010 and an improvement from the -2.7% spread in the first quarter of 2010. | ||
| Same store net operating income (NOI) increased 3.9% for the three-month period ended March 31, 2011 over the prior-year comparable period. |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Revenues: |
||||||||
Minimum rents (A) |
$ | 134,291 | $ | 133,746 | ||||
Percentage and overage rents (A) |
2,038 | 2,041 | ||||||
Recoveries from tenants |
46,614 | 46,370 | ||||||
Ancillary and other property income |
7,169 | 4,689 | ||||||
Management, development and other fee income |
11,751 | 14,017 | ||||||
Other (B) |
1,121 | 1,268 | ||||||
202,984 | 202,131 | |||||||
Expenses: |
||||||||
Operating and maintenance (C) |
38,104 | 34,385 | ||||||
Real estate taxes |
26,841 | 27,400 | ||||||
Impairment charges (D) |
3,856 | 817 | ||||||
General and administrative (E) |
29,378 | 23,275 | ||||||
Depreciation and amortization |
56,042 | 55,177 | ||||||
154,221 | 141,054 | |||||||
Other income (expense): |
||||||||
Interest income |
2,796 | 1,333 | ||||||
Interest expense (F) |
(60,243 | ) | (56,096 | ) | ||||
Gain on debt retirement, net (F) |
| 1,091 | ||||||
Gain (loss) on equity derivative instruments (G) |
21,926 | (24,868 | ) | |||||
Other income (expense) (H) |
1,341 | (3,059 | ) | |||||
(34,180 | ) | (81,599 | ) | |||||
Income (loss) before earnings from equity method investments
and other items |
14,583 | (20,522 | ) | |||||
Equity in net income of joint ventures (I) |
1,974 | 1,647 | ||||||
Impairment of joint venture investments |
(35 | ) | | |||||
Gain on change in control of interests (J) |
21,729 | | ||||||
Tax expense of taxable REIT subsidiaries and state franchise
and income taxes |
(326 | ) | (1,002 | ) | ||||
Income (loss) from continuing operations |
37,925 | (19,877 | ) | |||||
Loss from discontinued operations (K) |
(1,685 | ) | (6,033 | ) | ||||
Income (loss) before loss on disposition of real estate |
36,240 | (25,910 | ) | |||||
Loss on disposition of real estate, net of tax |
(861 | ) | (675 | ) | ||||
Net income (loss) |
35,379 | (26,585 | ) | |||||
Non-controlling interests |
(67 | ) | 2,338 | |||||
Net income (loss) attributable to DDR |
$ | 35,312 | $ | (24,247 | ) | |||
Net income (loss) applicable to common shareholders |
$ | 24,745 | $ | (34,814 | ) | |||
Funds From Operations (FFO): |
||||||||
Net income (loss) applicable to common shareholders |
$ | 24,745 | $ | (34,814 | ) | |||
Depreciation and amortization of real estate investments |
53,803 | 54,594 | ||||||
Equity in net income of joint ventures (I) |
(1,974 | ) | (1,647 | ) | ||||
Joint ventures FFO (I) |
12,808 | 11,555 | ||||||
Non-controlling interests (OP Units) |
16 | 8 | ||||||
Gain on disposition of depreciable real estate |
(311 | ) | (1,267 | ) | ||||
FFO applicable to common shareholders |
89,087 | 28,429 | ||||||
Preferred dividends |
10,567 | 10,567 | ||||||
FFO |
$ | 99,654 | $ | 38,996 | ||||
Per share data: |
||||||||
Earnings per common share |
||||||||
Basic |
$ | 0.10 | $ | (0.15 | ) | |||
Diluted |
$ | 0.01 | $ | (0.15 | ) | |||
Basic average shares outstanding |
255,966 | 227,133 | ||||||
Diluted average shares outstanding |
262,581 | 227,133 | ||||||
Dividends Declared |
$ | 0.04 | $ | 0.02 | ||||
Funds From Operations Basic (L) |
$ | 0.34 | $ | 0.12 | ||||
Funds From Operations Diluted (L) |
$ | 0.25 | $ | 0.12 | ||||
March 31, 2011 | December 31, 2010 | |||||||
Assets: |
||||||||
Real estate and rental property: |
||||||||
Land |
$ | 1,865,716 | $ | 1,837,403 | ||||
Buildings |
5,551,683 | 5,491,489 | ||||||
Fixtures and tenant improvements |
356,104 | 339,129 | ||||||
7,773,503 | 7,668,021 | |||||||
Less: Accumulated depreciation |
(1,500,524 | ) | (1,452,112 | ) | ||||
6,272,979 | 6,215,909 | |||||||
Land held for development and construction in progress |
714,972 | 743,218 | ||||||
Real estate held for sale, net |
6,427 | | ||||||
Real estate, net |
6,994,378 | 6,959,127 | ||||||
Investments in and advances to joint ventures |
402,875 | 417,223 | ||||||
Cash |
21,025 | 19,416 | ||||||
Restricted cash |
4,148 | 4,285 | ||||||
Notes receivable, net |
121,335 | 120,330 | ||||||
Receivables, including straight-line rent, net |
112,982 | 123,259 | ||||||
Other assets, net |
124,787 | 124,450 | ||||||
$ | 7,781,530 | $ | 7,768,090 | |||||
Liabilities & Equity: |
||||||||
Indebtedness: |
||||||||
Revolving credit facilities |
$ | 42,681 | $ | 279,865 | ||||
Unsecured debt |
2,345,533 | 2,043,582 | ||||||
Mortgage and other secured debt |
1,881,795 | 1,978,553 | ||||||
4,270,009 | 4,302,000 | |||||||
Dividends payable |
18,409 | 12,092 | ||||||
Equity derivative liability (G) |
| 96,237 | ||||||
Other liabilities |
205,463 | 223,074 | ||||||
Total liabilities |
4,493,881 | 4,633,403 | ||||||
Preferred shares |
555,000 | 555,000 | ||||||
Common shares (L) |
26,714 | 25,627 | ||||||
Paid-in-capital (G) |
4,004,030 | 3,868,990 | ||||||
Accumulated distributions in excess of net income |
(1,365,039 | ) | (1,378,341 | ) | ||||
Deferred compensation obligation |
12,571 | 14,318 | ||||||
Accumulated other comprehensive income |
27,707 | 25,646 | ||||||
Less: Common shares in treasury at cost |
(12,320 | ) | (14,638 | ) | ||||
Non-controlling interests |
38,986 | 38,085 | ||||||
Total equity |
3,287,649 | 3,134,687 | ||||||
$ | 7,781,530 | $ | 7,768,090 | |||||
(A) | Base and percentage rental revenues for the three-month period ended March 31, 2011, as compared to the prior-year comparable period, increased $1.2 million. This increase consisted of increased leasing activity at core portfolio properties, contributing $0.9 million, the acquisition of a 50% interest in two shopping centers, which generated an additional $0.6 million in revenues offset by a net decrease in revenues from development and redevelopment assets of $0.3 million. Included in rental revenues for the three-month periods ended March 31, 2011 and 2010, is approximately $0.3 million and $1.0 million, respectively, of revenue resulting from the recognition of straight-line rents, including discontinued operations. | |
(B) | Other revenues were comprised of the following (in millions): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Lease termination fees |
$ | 0.6 | $ | 0.6 | ||||
Financing fees |
0.4 | 0.2 | ||||||
Other miscellaneous |
0.1 | 0.5 | ||||||
$ | 1.1 | $ | 1.3 | |||||
(C) | Operating and maintenance expense, including discontinued operations, includes the following expenses (in millions): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Bad debt expense |
$ | 2.4 | $ | 3.2 | ||||
Ground rent expense (a) |
$ | 1.0 | $ | 1.3 |
(a) | Includes non-cash expense of approximately $0.5 million for both of the three-month periods ended March 31, 2011 and 2010 related to straight-line ground rent expense. |
(D) | The Company recorded impairment charges during the three-month periods ended March 31, 2011 and 2010, on the following consolidated assets (in millions): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Undeveloped land |
$ | 3.8 | $ | | ||||
Assets marketed for sale |
| 0.8 | ||||||
Total continuing operations |
3.8 | 0.8 | ||||||
Sold assets or assets held for sale (1) |
2.0 | 2.3 | ||||||
Total discontinued operations |
2.0 | 2.3 | ||||||
Total impairment charges |
$ | 5.8 | $ | 3.1 | ||||
(1) | See summary of discontinued operations activity in note (K). |
(E) | General and administrative expenses include internal leasing salaries, legal salaries and related expenses associated with the releasing of space, which are charged to operations as incurred. For the three-month periods ended March 31, 2011 and 2010, general and administrative expenses were approximately 7.1% and 5.5% of total revenues, respectively, including joint venture and managed property revenues. |
(F) | The Company recorded the following in connection with its outstanding convertible debt (in millions): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Non-cash interest expense related to amortization of the debt discount |
$ | 3.8 | $ | 2.0 | ||||
Non-cash adjustment to gain on repurchase |
| 2.6 |
(G) | Represents the non-cash impact of the valuation adjustments of the equity derivative instruments (warrants) issued as part of the share purchase transaction with the Otto Family completed in 2009. Because all of the warrants were exercised in March 2011, the Company will no longer record the changes in fair value of these instruments in its future earnings. The liability at the date of exercise was reclassified into paid-in-capital. | |
(H) | Other income (expenses) were comprised of the following (in millions): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Litigation-related expenses |
$ | (1.0 | ) | $ | (1.7 | ) | ||
Debt extinguishment costs |
(0.2 | ) | (1.1 | ) | ||||
Settlement of lease liability obligation |
2.6 | | ||||||
Abandoned projects and other expenses |
(0.1 | ) | (0.3 | ) | ||||
$ | 1.3 | $ | (3.1 | ) | ||||
(I) | At March 31, 2011 and 2010, the Company had an investment in joint ventures, excluding consolidated joint ventures, in 191 and 213 shopping center properties, respectively. See below for a summary of the combined condensed operating results and select balance sheet data of the Companys unconsolidated joint ventures. |
(J) | In the first quarter of 2011, the Company acquired its partners 50% interest in two shopping centers. The Company accounted for both of these transactions as step acquisitions. Due to the change in control that occurred, the Company recorded an aggregate gain associated with the acquisitions related to the difference between the Companys carrying value and fair value of the previously held equity interest. | |
(K) | The operating results relating to assets classified as discontinued operations are summarized as follows (in thousands): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Revenues from operations |
$ | 327 | $ | 5,227 | ||||
Operating expenses |
83 | 3,671 | ||||||
Impairment charges |
1,983 | 2,255 | ||||||
Interest, net |
92 | 3,906 | ||||||
Depreciation and amortization |
98 | 1,994 | ||||||
Total expenses |
2,256 | 11,826 | ||||||
Loss before disposition of real estate |
(1,929 | ) | (6,599 | ) | ||||
Gain on disposition of real estate, net |
244 | 566 | ||||||
Net loss |
$ | (1,685 | ) | $ | (6,033 | ) | ||
(L) | For purposes of computing FFO and operating FFO per share, the following share information was utilized (in millions): |
At March 31, | ||||||||
2011 | 2010 | |||||||
Common shares outstanding |
267.1 | 250.0 | ||||||
OP Units outstanding (OP Units) |
0.4 | 0.4 |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Weighted average common shares outstanding |
258.2 | 228.5 | ||||||
Assumed conversion of OP Units |
0.4 | 0.4 | ||||||
FFO Weighted average common shares and OP Units
Basic |
258.6 | 228.9 | ||||||
Assumed conversion of dilutive securities |
6.6 | 7.3 | ||||||
FFO and Operating FFO Weighted average common
shares and OP Units Diluted |
265.2 | 236.2 | ||||||
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Revenues from operations (A) |
$ | 172,398 | $ | 164,093 | ||||
Operating expenses |
63,015 | 63,547 | ||||||
Depreciation and amortization of real estate investments |
47,752 | 45,968 | ||||||
Interest expense |
58,112 | 58,459 | ||||||
168,879 | 167,974 | |||||||
Income (loss) from operations before tax expense and
discontinued operations |
3,519 | (3,881 | ) | |||||
Income tax expense |
(6,144 | ) | (4,799 | ) | ||||
(Loss) income from discontinued operations, net of tax |
(441 | ) | 582 | |||||
Loss on disposition of discontinued operations (B) |
(863 | ) | (8,752 | ) | ||||
Net loss |
$ | (3,929 | ) | $ | (16,850 | ) | ||
Net income at DDRs ownership interests (C) |
$ | 3,899 | $ | 1,660 | ||||
FFO at DDRs ownership interests (D) |
$ | 12,808 | $ | 11,555 | ||||
March 31, 2011 | December 31, 2010 | |||||||
Land |
$ | 1,550,786 | $ | 1,566,682 | ||||
Buildings |
4,745,572 | 4,783,841 | ||||||
Fixtures and tenant improvements |
158,031 | 154,292 | ||||||
6,454,389 | 6,504,815 | |||||||
Less: Accumulated depreciation |
(747,737 | ) | (726,291 | ) | ||||
5,706,652 | 5,778,524 | |||||||
Land held for development and construction in progress (E) |
197,214 | 174,237 | ||||||
Real estate, net |
5,903,866 | 5,952,761 | ||||||
Receivables, including straight-line rent, net |
100,090 | 111,569 | ||||||
Leasehold interests |
10,006 | 10,296 | ||||||
Other assets, net |
517,696 | 303,826 | ||||||
$ | 6,531,658 | $ | 6,378,452 | |||||
Mortgage debt (F) |
$ | 3,884,329 | $ | 3,950,794 | ||||
Notes and accrued interest payable to DDR |
91,290 | 87,282 | ||||||
Other liabilities |
205,306 | 186,728 | ||||||
4,180,925 | 4,224,804 | |||||||
Accumulated equity |
2,350,733 | 2,153,648 | ||||||
$ | 6,531,658 | $ | 6,378,452 | |||||
(A) | Revenues for the three-month periods include the following (in millions): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Straight-line rents |
$ | 0.6 | $ | 1.2 | ||||
DDRs proportionate share |
0.1 | 0.2 |
(B) | For the three months ended March 31, 2011, loss on disposition of discontinued operations includes the sale of two properties by two separate unconsolidated joint ventures. The Companys proportionate share of the aggregate loss for the assets sold for the three-month period ended March 31, 2011, was approximately $1.9 million. | |
(C) | The Companys share of joint venture equity in net income was reduced by $1.9 million for the three-month period ended March 31, 2011 as a result of basis differences impacting amortization and depreciation, impairment charges and loss on dispositions. | |
(D) | FFO from unconsolidated joint ventures are summarized as follows (in thousands): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Net loss |
$ | (3,929 | ) | $ | (16,850 | ) | ||
Depreciation and amortization of real estate investments |
47,836 | 50,314 | ||||||
FFO |
$ | 43,907 | $ | 33,464 | ||||
FFO at DDRs ownership interests |
$ | 12,808 | $ | 11,555 | ||||
Operating FFO at DDRs ownership interests (1) |
$ | 14,400 | $ | 12,864 | ||||
DDR joint venture distributions received, net
(2) |
$ | 26,904 | $ | 10,799 | ||||
(1) | Excluded from operating FFO is the Companys pro rata share of net charges primarily related to impairment charges and losses on the disposition of assets as disclosed earlier in this press release. | |
(2) | Includes loan repayments in 2011 of $22.4 million from a foreign investment. |
(E) | The Companys proportionate share of joint venture land held for development and construction in progress aggregated approximately $66.2 million and $71.7 million at March 31, 2011 and December 31, 2010, respectively. | |
(F) | The Companys proportionate share of joint venture debt aggregated approximately $790.8 million and $835.8 million at March 31, 2011 and December 31, 2010, respectively. The $790.8 million includes approximately $52.6 million of non-recourse debt associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income or FFO. |
Section | Page | |||
Earnings Release & Financial Statements |
||||
Press Release |
1-12 | |||
Financial Summary |
||||
Financial Highlights |
13 | |||
Financial Ratios |
14 | |||
Total Market Capitalization Summary |
15 | |||
Debt to EBITDA Calculation |
16 | |||
Significant Accounting Policies |
17-18 | |||
Other Real Estate Information |
19 | |||
Reconciliation of Non-GAAP Financial Measures |
20-23 | |||
Joint Venture Financial Summary |
||||
Joint Venture Investment Summary |
24 | |||
Joint Venture Financial Statements |
25 | |||
Investment Summary |
||||
Acquisitions and Dispositions |
26 | |||
Developments and Redevelopments |
27-28 | |||
Projects Primarily on Hold |
29 | |||
Portfolio Summary |
||||
Portfolio Characteristics |
30 | |||
Brazil and Puerto Rico Portfolio Characteristics |
31 | |||
Leased Rate and Average Annualized Base Rental Rates |
32 | |||
Leasing Summary |
33 | |||
Net Effective Rents |
34 | |||
Lease Expirations |
35 | |||
Largest Tenants by Owned and Managed GLA |
36 | |||
Largest Tenants by GLA and Base Rental Revenues |
37 | |||
Debt Summary |
||||
Summary of Consolidated Debt |
38 | |||
Summary of Joint Venture Debt |
39 | |||
Consolidated Debt Detail |
40-42 | |||
Joint Venture Debt Detail |
43-45 | |||
Contact Information |
||||
Equity and
Fixed Income Research Coverage |
46 |
Media Contact:
|
Investor Contact: | |
Marty Richmond
|
Kate Deck | |
216-755-5500
|
216-755-5500 | |
mrichmond@ddr.com
|
kdeck@ddr.com |
| Reported operating FFO of $0.24 per diluted share, which excludes certain non-operating items | ||
| Maintained strong operating performance with the execution of 428 total leases for over 2.6 million square feet | ||
| The portfolio leased rate increased to 92.4% at March 31, 2011 from 92.3% at December 31, 2010 and 91.3% at March 31, 2010; including Brazil, the March 31, 2011 blended leased rate was 92.6% | ||
| Generated positive leasing spreads, with new leases at 9.0% and renewals at 4.9% for a blended overall spread of 5.4%, which is consistent with the blended spread of 5.4% in the fourth quarter of 2010 and an improvement from -2.7% in the first quarter of 2010 | ||
| Reported same store net operating income growth of 3.9% as compared to an increase of 3.6% in the fourth quarter of 2010 and a decrease of 2.6% in the first quarter of 2010 | ||
| Completed $40 million of acquisitions | ||
| Completed $43 million of asset sales, of which the Companys pro-rata share was $20 million | ||
| Issued $300 million aggregate principal amount of 4.75% senior unsecured notes due April 2018 | ||
| Unconsolidated joint venture in Brazil completed an initial public offering raising US$280 million of gross proceeds | ||
| Raised $190.2 million of equity proceeds in connection with the exercise of warrants for 10 million common shares in March 2011 and through the issuance of 9.5 million common shares in April 2011, which were utilized to redeem $180 million of 8.0% Class G preferred shares in April 2011 |
1
Three Months | ||||
Non-cash impairment charges consolidated assets |
$ | 3.8 | ||
Executive separation charge |
10.7 | |||
Non-cash gain on equity derivative instruments (Otto Family
warrants) |
(21.9 | ) | ||
Other income, net |
(1.3 | ) | ||
Equity in net income of joint ventures loss on asset sales |
1.6 | |||
Gain on change in control of interests |
(21.7 | ) | ||
Discontinued operations non-cash consolidated impairment
charges and loss on sales |
1.9 | |||
Loss on disposition of real estate (land), net |
1.0 | |||
Total Adjustments from FFO to operating FFO |
$ | (25.9 | ) | |
| Executed 168 new leases aggregating approximately 0.8 million square feet and 260 renewals aggregating approximately 1.8 million square feet. | ||
| Total portfolio average annualized base rent per occupied square foot as of March 31, 2011 was $13.37, as compared to $13.04 at March 31, 2010. | ||
| The portfolio leased rate was 92.4% as of March 31, 2011, as compared to 91.3% at March 31, 2010. The U.S. portfolio and the Brazil portfolio blended leased rate was 92.6% at March 31, 2011. | ||
| On a cash basis, rental rates for new leases increased by 9.0% over prior rents and renewals increased by 4.9%. The continued strong leasing spreads are consistent with the blended spread of 5.4% for the portfolio reported in the fourth quarter of 2010 and an improvement from the -2.7% spread in the first quarter of 2010. | ||
| Same store net operating income (NOI) increased 3.9% for the three-month period ended March 31, 2011 over the prior-year comparable period. |
2
3
4
5
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Revenues: |
||||||||
Minimum rents (A) |
$ | 134,291 | $ | 133,746 | ||||
Percentage and overage rents (A) |
2,038 | 2,041 | ||||||
Recoveries from tenants |
46,614 | 46,370 | ||||||
Ancillary and other property income |
7,169 | 4,689 | ||||||
Management, development and other fee income |
11,751 | 14,017 | ||||||
Other (B) |
1,121 | 1,268 | ||||||
202,984 | 202,131 | |||||||
Expenses: |
||||||||
Operating and maintenance (C) |
38,104 | 34,385 | ||||||
Real estate taxes |
26,841 | 27,400 | ||||||
Impairment charges (D) |
3,856 | 817 | ||||||
General and administrative (E) |
29,378 | 23,275 | ||||||
Depreciation and amortization |
56,042 | 55,177 | ||||||
154,221 | 141,054 | |||||||
Other income (expense): |
||||||||
Interest income |
2,796 | 1,333 | ||||||
Interest expense (F) |
(60,243 | ) | (56,096 | ) | ||||
Gain on debt retirement, net (F) |
| 1,091 | ||||||
Gain (loss) on equity derivative instruments (G) |
21,926 | (24,868 | ) | |||||
Other income (expense) (H) |
1,341 | (3,059 | ) | |||||
(34,180 | ) | (81,599 | ) | |||||
Income (loss) before earnings from equity method investments
and other items |
14,583 | (20,522 | ) | |||||
Equity in net income of joint ventures (I) |
1,974 | 1,647 | ||||||
Impairment of joint venture investments |
(35 | ) | | |||||
Gain on change in control of interests (J) |
21,729 | | ||||||
Tax expense of taxable REIT subsidiaries and state franchise
and income taxes |
(326 | ) | (1,002 | ) | ||||
Income (loss) from continuing operations |
37,925 | (19,877 | ) | |||||
Loss from discontinued operations (K) |
(1,685 | ) | (6,033 | ) | ||||
Income (loss) before loss on disposition of real estate |
36,240 | (25,910 | ) | |||||
Loss on disposition of real estate, net of tax |
(861 | ) | (675 | ) | ||||
Net income (loss) |
35,379 | (26,585 | ) | |||||
Non-controlling interests |
(67 | ) | 2,338 | |||||
Net income (loss) attributable to DDR |
$ | 35,312 | $ | (24,247 | ) | |||
Net income (loss) applicable to common shareholders |
$ | 24,745 | $ | (34,814 | ) | |||
Funds From Operations (FFO): |
||||||||
Net income (loss) applicable to common shareholders |
$ | 24,745 | $ | (34,814 | ) | |||
Depreciation and amortization of real estate investments |
53,803 | 54,594 | ||||||
Equity in net income of joint ventures (I) |
(1,974 | ) | (1,647 | ) | ||||
Joint ventures FFO (I) |
12,808 | 11,555 | ||||||
Non-controlling interests (OP Units) |
16 | 8 | ||||||
Gain on disposition of depreciable real estate |
(311 | ) | (1,267 | ) | ||||
FFO applicable to common shareholders |
89,087 | 28,429 | ||||||
Preferred dividends |
10,567 | 10,567 | ||||||
FFO |
$ | 99,654 | $ | 38,996 | ||||
Per share data: |
||||||||
Earnings per common share |
||||||||
Basic |
$ | 0.10 | $ | (0.15 | ) | |||
Diluted |
$ | 0.01 | $ | (0.15 | ) | |||
Basic average shares outstanding |
255,966 | 227,133 | ||||||
Diluted average shares outstanding |
262,581 | 227,133 | ||||||
Dividends Declared |
$ | 0.04 | $ | 0.02 | ||||
Funds From Operations Basic (L) |
$ | 0.34 | $ | 0.12 | ||||
Funds From Operations Diluted (L) |
$ | 0.25 | $ | 0.12 | ||||
6
March 31, 2011 | December 31, 2010 | |||||||
Assets: |
||||||||
Real estate and rental property: |
||||||||
Land |
$ | 1,865,716 | $ | 1,837,403 | ||||
Buildings |
5,551,683 | 5,491,489 | ||||||
Fixtures and tenant improvements |
356,104 | 339,129 | ||||||
7,773,503 | 7,668,021 | |||||||
Less: Accumulated depreciation |
(1,500,524 | ) | (1,452,112 | ) | ||||
6,272,979 | 6,215,909 | |||||||
Land held for development and construction in progress |
714,972 | 743,218 | ||||||
Real estate held for sale, net |
6,427 | | ||||||
Real estate, net |
6,994,378 | 6,959,127 | ||||||
Investments in and advances to joint ventures |
402,875 | 417,223 | ||||||
Cash |
21,025 | 19,416 | ||||||
Restricted cash |
4,148 | 4,285 | ||||||
Notes receivable, net |
121,335 | 120,330 | ||||||
Receivables, including straight-line rent, net |
112,982 | 123,259 | ||||||
Other assets, net |
124,787 | 124,450 | ||||||
$ | 7,781,530 | $ | 7,768,090 | |||||
Liabilities & Equity: |
||||||||
Indebtedness: |
||||||||
Revolving credit facilities |
$ | 42,681 | $ | 279,865 | ||||
Unsecured debt |
2,345,533 | 2,043,582 | ||||||
Mortgage and other secured debt |
1,881,795 | 1,978,553 | ||||||
4,270,009 | 4,302,000 | |||||||
Dividends payable |
18,409 | 12,092 | ||||||
Equity derivative liability (G) |
| 96,237 | ||||||
Other liabilities |
205,463 | 223,074 | ||||||
Total liabilities |
4,493,881 | 4,633,403 | ||||||
Preferred shares |
555,000 | 555,000 | ||||||
Common shares (L) |
26,714 | 25,627 | ||||||
Paid-in-capital (G) |
4,004,030 | 3,868,990 | ||||||
Accumulated distributions in excess of net income |
(1,365,039 | ) | (1,378,341 | ) | ||||
Deferred compensation obligation |
12,571 | 14,318 | ||||||
Accumulated other comprehensive income |
27,707 | 25,646 | ||||||
Less: Common shares in treasury at cost |
(12,320 | ) | (14,638 | ) | ||||
Non-controlling interests |
38,986 | 38,085 | ||||||
Total equity |
3,287,649 | 3,134,687 | ||||||
$ | 7,781,530 | $ | 7,768,090 | |||||
7
(A) | Base and percentage rental revenues for the three-month period ended March 31, 2011, as compared to the prior-year comparable period, increased $1.2 million. This increase consisted of increased leasing activity at core portfolio properties, contributing $0.9 million, the acquisition of a 50% interest in two shopping centers, which generated an additional $0.6 million in revenues offset by a net decrease in revenues from development and redevelopment assets of $0.3 million. Included in rental revenues for the three-month periods ended March 31, 2011 and 2010, is approximately $0.3 million and $1.0 million, respectively, of revenue resulting from the recognition of straight-line rents, including discontinued operations. | |
(B) | Other revenues were comprised of the following (in millions): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Lease termination fees |
$ | 0.6 | $ | 0.6 | ||||
Financing fees |
0.4 | 0.2 | ||||||
Other miscellaneous |
0.1 | 0.5 | ||||||
$ | 1.1 | $ | 1.3 | |||||
(C) | Operating and maintenance expense, including discontinued operations, includes the following expenses (in millions): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Bad debt expense |
$ | 2.4 | $ | 3.2 | ||||
Ground rent expense (a) |
$ | 1.0 | $ | 1.3 |
(a) | Includes non-cash expense of approximately $0.5 million for both of the three-month periods ended March 31, 2011 and 2010 related to straight-line ground rent expense. |
(D) | The Company recorded impairment charges during the three-month periods ended March 31, 2011 and 2010, on the following consolidated assets (in millions): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Undeveloped land |
$ | 3.8 | $ | | ||||
Assets marketed for sale |
| 0.8 | ||||||
Total continuing operations |
3.8 | 0.8 | ||||||
Sold assets or assets held for sale (1) |
2.0 | 2.3 | ||||||
Total discontinued operations |
2.0 | 2.3 | ||||||
Total impairment charges |
$ | 5.8 | $ | 3.1 | ||||
(1) | See summary of discontinued operations activity in note (K). |
(E) | General and administrative expenses include internal leasing salaries, legal salaries and related expenses associated with the releasing of space, which are charged to operations as incurred. For the three-month periods ended March 31, 2011 and 2010, general and administrative expenses were approximately 7.1% and 5.5% of total revenues, respectively, including joint venture and managed property revenues. |
8
(F) | The Company recorded the following in connection with its outstanding convertible debt (in millions): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Non-cash interest expense related to amortization of the debt discount |
$ | 3.8 | $ | 2.0 | ||||
Non-cash adjustment to gain on repurchase |
| 2.6 |
(G) | Represents the non-cash impact of the valuation adjustments of the equity derivative instruments (warrants) issued as part of the share purchase transaction with the Otto Family completed in 2009. Because all of the warrants were exercised in March 2011, the Company will no longer record the changes in fair value of these instruments in its future earnings. The liability at the date of exercise was reclassified into paid-in-capital. | |
(H) | Other income (expenses) were comprised of the following (in millions): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Litigation-related expenses |
$ | (1.0 | ) | $ | (1.7 | ) | ||
Debt extinguishment costs |
(0.2 | ) | (1.1 | ) | ||||
Settlement of lease liability obligation |
2.6 | | ||||||
Abandoned projects and other expenses |
(0.1 | ) | (0.3 | ) | ||||
$ | 1.3 | $ | (3.1 | ) | ||||
(I) | At March 31, 2011 and 2010, the Company had an investment in joint ventures, excluding consolidated joint ventures, in 191 and 213 shopping center properties, respectively. See pages 11-12 of this release for a summary of the combined condensed operating results and select balance sheet data of the Companys unconsolidated joint ventures. |
9
(J) | In the first quarter of 2011, the Company acquired its partners 50% interest in two shopping centers. The Company accounted for both of these transactions as step acquisitions. Due to the change in control that occurred, the Company recorded an aggregate gain associated with the acquisitions related to the difference between the Companys carrying value and fair value of the previously held equity interest. | |
(K) | The operating results relating to assets classified as discontinued operations are summarized as follows (in thousands): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Revenues from operations |
$ | 327 | $ | 5,227 | ||||
Operating expenses |
83 | 3,671 | ||||||
Impairment charges |
1,983 | 2,255 | ||||||
Interest, net |
92 | 3,906 | ||||||
Depreciation and amortization |
98 | 1,994 | ||||||
Total expenses |
2,256 | 11,826 | ||||||
Loss before disposition of real estate |
(1,929 | ) | (6,599 | ) | ||||
Gain on disposition of real estate, net |
244 | 566 | ||||||
Net loss |
$ | (1,685 | ) | $ | (6,033 | ) | ||
(L) | For purposes of computing FFO and operating FFO per share, the following share information was utilized (in millions): |
At March 31, | ||||||||
2011 | 2010 | |||||||
Common shares outstanding |
267.1 | 250.0 | ||||||
OP Units outstanding (OP Units) |
0.4 | 0.4 |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Weighted average common shares outstanding |
258.2 | 228.5 | ||||||
Assumed conversion of OP Units |
0.4 | 0.4 | ||||||
FFO Weighted average common shares and OP Units
Basic |
258.6 | 228.9 | ||||||
Assumed conversion of dilutive securities |
6.6 | 7.3 | ||||||
FFO and Operating FFO Weighted average common
shares and OP Units Diluted |
265.2 | 236.2 | ||||||
10
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Revenues from operations (A) |
$ | 172,398 | $ | 164,093 | ||||
Operating expenses |
63,015 | 63,547 | ||||||
Depreciation and amortization of real estate investments |
47,752 | 45,968 | ||||||
Interest expense |
58,112 | 58,459 | ||||||
168,879 | 167,974 | |||||||
Income (loss) from operations before tax expense and
discontinued operations |
3,519 | (3,881 | ) | |||||
Income tax expense |
(6,144 | ) | (4,799 | ) | ||||
(Loss) income from discontinued operations, net of tax |
(441 | ) | 582 | |||||
Loss on disposition of discontinued operations (B) |
(863 | ) | (8,752 | ) | ||||
Net loss |
$ | (3,929 | ) | $ | (16,850 | ) | ||
Net income at DDRs ownership interests (C) |
$ | 3,899 | $ | 1,660 | ||||
FFO at DDRs ownership interests (D) |
$ | 12,808 | $ | 11,555 | ||||
March 31, 2011 | December 31, 2010 | |||||||
Land |
$ | 1,550,786 | $ | 1,566,682 | ||||
Buildings |
4,745,572 | 4,783,841 | ||||||
Fixtures and tenant improvements |
158,031 | 154,292 | ||||||
6,454,389 | 6,504,815 | |||||||
Less: Accumulated depreciation |
(747,737 | ) | (726,291 | ) | ||||
5,706,652 | 5,778,524 | |||||||
Land held for development and construction in progress (E) |
197,214 | 174,237 | ||||||
Real estate, net |
5,903,866 | 5,952,761 | ||||||
Receivables, including straight-line rent, net |
100,090 | 111,569 | ||||||
Leasehold interests |
10,006 | 10,296 | ||||||
Other assets, net |
517,696 | 303,826 | ||||||
$ | 6,531,658 | $ | 6,378,452 | |||||
Mortgage debt (F) |
$ | 3,884,329 | $ | 3,950,794 | ||||
Notes and accrued interest payable to DDR |
91,290 | 87,282 | ||||||
Other liabilities |
205,306 | 186,728 | ||||||
4,180,925 | 4,224,804 | |||||||
Accumulated equity |
2,350,733 | 2,153,648 | ||||||
$ | 6,531,658 | $ | 6,378,452 | |||||
11
(A) | Revenues for the three-month periods include the following (in millions): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Straight-line rents |
$ | 0.6 | $ | 1.2 | ||||
DDRs proportionate share |
0.1 | 0.2 |
(B) | For the three months ended March 31, 2011, loss on disposition of discontinued operations includes the sale of two properties by two separate unconsolidated joint ventures. The Companys proportionate share of the aggregate loss for the assets sold for the three-month period ended March 31, 2011, was approximately $1.9 million. | |
(C) | The Companys share of joint venture equity in net income was reduced by $1.9 million for the three-month period ended March 31, 2011 as a result of basis differences impacting amortization and depreciation, impairment charges and loss on dispositions. | |
(D) | FFO from unconsolidated joint ventures are summarized as follows (in thousands): |
Three-Month Periods | ||||||||
Ended March 31, | ||||||||
2011 | 2010 | |||||||
Net loss |
$ | (3,929 | ) | $ | (16,850 | ) | ||
Depreciation and amortization of real estate investments |
47,836 | 50,314 | ||||||
FFO |
$ | 43,907 | $ | 33,464 | ||||
FFO at DDRs ownership interests |
$ | 12,808 | $ | 11,555 | ||||
Operating FFO at DDRs ownership interests (1) |
$ | 14,400 | $ | 12,864 | ||||
DDR joint venture distributions received, net
(2) |
$ | 26,904 | $ | 10,799 | ||||
(1) | Excluded from operating FFO is the Companys pro rata share of net charges primarily related to impairment charges and losses on the disposition of assets as disclosed on page 2 of this press release. | |
(2) | Includes loan repayments in 2011 of $22.4 million from a foreign investment. |
(E) | The Companys proportionate share of joint venture land held for development and construction in progress aggregated approximately $66.2 million and $71.7 million at March 31, 2011 and December 31, 2010, respectively. | |
(F) | The Companys proportionate share of joint venture debt aggregated approximately $790.8 million and $835.8 million at March 31, 2011 and December 31, 2010, respectively. The $790.8 million includes approximately $52.6 million of non-recourse debt associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income or FFO. |
12
Three Months | ||||||||||||
Ended | ||||||||||||
March 31, | Year Ended December 31, | |||||||||||
2011 | 2010 | 2009 | ||||||||||
FUNDS FROM OPERATIONS: |
||||||||||||
Net Income (Loss) Applicable to Common Shareholders |
24.7 | $ | (251.6 | ) | $ | (398.9 | ) | |||||
Depreciation and Amortization of Real Estate Investments |
53.8 | 217.2 | 224.2 | |||||||||
Equity in Net (Income) Loss of Joint Ventures |
(1.9 | ) | (5.6 | ) | 9.3 | |||||||
Joint Venture Funds From Operations |
12.8 | 47.5 | 43.7 | |||||||||
Non-Controlling Interests (OP Units) |
| | 0.2 | |||||||||
Gain on Disposition of Depreciable Real Estate |
(0.3 | ) | (18.8 | ) | (23.1 | ) | ||||||
FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS |
89.1 | (11.3 | ) | (144.6 | ) | |||||||
PREFERRED DIVIDENDS |
10.6 | 42.3 | 42.3 | |||||||||
FUNDS FROM OPERATIONS |
$ | 99.7 | $ | 31.0 | $ | (102.3 | ) | |||||
Net non-operating items excluded from FFO (1) |
(25.9 | ) | 275.6 | 442.8 | ||||||||
OPERATING FFO AVAILABLE TO COMMON SHAREHOLDERS |
$ | 63.2 | $ | 264.3 | $ | 298.2 | ||||||
PER SHARE INFORMATION: |
||||||||||||
Funds From Operations Diluted |
$ | 0.25 | $ | (0.05 | ) | $ | (0.90 | ) | ||||
Operating FFO Diluted |
$ | 0.24 | $ | 1.04 | $ | 1.83 | ||||||
Net Income (Loss) Diluted |
$ | 0.01 | $ | (1.03 | ) | $ | (2.51 | ) | ||||
Dividends |
$ | 0.04 | $ | 0.08 | $ | 0.44 | ||||||
COMMON SHARES & OP UNITS: |
||||||||||||
Outstanding |
267.5 | 256.6 | 202.0 | |||||||||
Weighted average Diluted (FFO) |
265.2 | 247.0 | 160.1 | |||||||||
Weighted average Diluted (Operating FFO) |
265.2 | 254.4 | 163.2 | |||||||||
GEN. & ADMIN. EXPENSES (2) |
$ | 29.4 | $ | 85.6 | $ | 94.4 | ||||||
REVENUES: |
||||||||||||
DDR Revenues |
$ | 203.3 | $ | 815.1 | $ | 843.3 | ||||||
Joint Venture & Managed Revenues |
208.8 | 840.6 | 902.0 | |||||||||
TOTAL REVENUES (3) |
$ | 412.1 | $ | 1,655.7 | $ | 1,745.3 | ||||||
GEN. & ADMIN. EXPENSES AS A PERCENTAGE OF TOTAL REVENUES (2) |
7.1 | % | 5.2 | % | 5.4 | % | ||||||
NET OPERATING INCOME: |
||||||||||||
DDR Net Operating Income |
$ | 138.3 | $ | 560.9 | $ | 581.6 | ||||||
Joint Venture Net Operating Income (at 100%) |
109.1 | 428.1 | 532.3 | |||||||||
TOTAL NET OPERATING INCOME (3) |
$ | 247.4 | $ | 989.0 | $ | 1,113.9 | ||||||
REAL ESTATE AT COST: |
||||||||||||
DDR Real Estate at Cost |
$ | 8,496.7 | $ | 8,411.2 | $ | 8,823.7 | ||||||
Joint Venture Real Estate at Cost (at 100%) |
6,651.6 | 6,679.1 | 7,266.8 | |||||||||
TOTAL REAL ESTATE AT COST |
$ | 15,148.3 | $ | 15,090.3 | $ | 16,090.5 | ||||||
(1) | See Reconciliation of Non-GAAP Financial Measures for detail of net non-operating items. | |
(2) | The 2011 results include an executive separation charge of $10.7 million. Excluding this charge, general and administrative expenses were approximately 4.5% of total revenues for the three months ended March 31, 2011. The 2010 results also include an employee separation charge of $5.3 million. Excluding this charge, general and administrative expenses were approximately 4.9% of total revenues for the year ended December 31, 2010. The 2009 results include $15.4 million related to a non-cash change in control charge. Excluding this charge, general and administrative expenses were approximately 4.5% of total revenues. | |
(3) | Includes activities from discontinued operations. |
13
Actual Covenants | ||||
Twelve Months | ||||
Covenant | Ended March 31, | |||
Threshold | 2011 | |||
PUBLIC DEBT COVENANTS: |
||||
Total Debt to Real Estate Assets Ratio |
not to exceed 65% | 49% | ||
Secured Debt to Assets Ratio |
not to exceed 40% | 21% | ||
Value of Unencumbered Assets to
Unsecured Debt |
at least 135% | 222% | ||
Fixed Charge Coverage Ratio |
at least 1.5x | 1.8x |
Three Months | ||||||||||||
Ended March 31, | Year Ended December 31, | |||||||||||
2011 | 2010 | 2009 | ||||||||||
DIVIDEND PAYOUT RATIO: |
||||||||||||
Common Share
Dividends and
Operating
Partnership
Interests |
$ | 10.7 | $ | 20.2 | $ | 64.7 | (1) | |||||
Operating FFO
Available to
Common
Shareholders |
$ | 63.2 | $ | 264.3 | $ | 298.2 | ||||||
16.9 | % | 7.7 | % | 21.7 | %(1) |
Debt Rating | Outlook | |||
CREDIT RATINGS: |
||||
Moodys
|
Baa3 | stable | ||
Fitch
|
BB | stable | ||
S&P
|
BB+ | stable |
(1) | Includes issuance of common shares with an aggregate value of $50.8 million resulting in an actual cash payout ratio of 3.1% in 2009. |
14
March 31, 2011 | December 31, 2010 | |||||||||||||||
Percentage of | Percentage of | |||||||||||||||
Amount | Total | Amount | Total | |||||||||||||
Common Shares Equity |
$ | 3,744.6 | 44 | % | $ | 3,614.9 | 42 | % | ||||||||
Perpetual Preferred Stock |
555.0 | 7 | % | 555.0 | 7 | % | ||||||||||
Fixed-Rate Senior Convertible Notes |
637.6 | 7 | % | 638.0 | 7 | % | ||||||||||
Fixed-Rate Unsecured Debt |
1,762.1 | 20 | % | 1,463.6 | 17 | % | ||||||||||
Fixed-Rate Mortgage Debt |
1,234.7 | 14 | % | 1,234.5 | 14 | % | ||||||||||
Variable-Rate Mortgage Debt |
97.1 | 1 | % | 144.0 | 2 | % | ||||||||||
Variable-Rate Revolving Credit and Term Debt |
492.7 | 6 | % | 729.9 | 9 | % | ||||||||||
Fixed-Rate Revolving Credit and Term Debt |
100.0 | 1 | % | 150.0 | 2 | % | ||||||||||
Total |
$ | 8,623.8 | 100 | % | $ | 8,529.9 | 100 | % | ||||||||
Debt to Market Capitalization | 50.1% |
51.1% |
| Market value ($14.00 per share as of March 31, 2011 and $14.09 per share as of December 31, 2010) includes common shares outstanding (267.1 million as of March 31, 2011 and 256.2 million as of December 31, 2010) and operating partnership units equivalent to approximately 0.4 million of the Companys common shares in each year. | |
| Debt outstanding excludes accretion adjustment of $54.2 million and $58.0 million recorded at March 31, 2011 and December 31, 2010, respectively, for the outstanding convertible notes as required by accounting standards due to the initial value of the equity conversion feature. | |
| Consolidated debt includes 100% of consolidated joint venture debt of which the joint venture partners share is $21.7 million and $22.1 million at March 31, 2011 and December 31, 2010, respectively. | |
| Does not include proportionate share of unconsolidated joint venture debt aggregating $790.8 million and $835.8 million at March 31, 2011 and December 31, 2010, respectively. |
15
Quarter ended | Quarter ended | |||||||
(In Millions) | March 31, 2011 | December 31, 2010 | ||||||
Debt to EBITDA consolidated |
||||||||
EBITDA: |
||||||||
Net income (loss) attributable to DDR |
$ | 35.3 | $ | (84.2 | ) | |||
Adjustments: |
||||||||
Impairment charges |
3.8 | 28.9 | ||||||
Executive separation charges |
10.7 | 3.2 | ||||||
Depreciation and amortization |
56.0 | 57.5 | ||||||
Depreciation attributable to non-controlling interests |
(0.1 | ) | (0.1 | ) | ||||
Interest expense |
60.2 | 59.8 | ||||||
Interest expense attributable to non-controlling interests |
(0.1 | ) | (0.1 | ) | ||||
Gain on change in control of interests |
(21.7 | ) | | |||||
(Gain) loss on equity derivative instruments |
(21.9 | ) | 25.5 | |||||
Other (income) expenses, net |
(1.3 | ) | 6.0 | |||||
Equity in net income of joint ventures |
(2.0 | ) | (9.4 | ) | ||||
Impairment of joint venture investments |
| 0.2 | ||||||
Gain on debt retirement, net |
| (0.2 | ) | |||||
Income tax expense |
0.3 | 49.5 | ||||||
EBITDA adjustments from discontinued operations (1) |
1.9 | (8.0 | ) | |||||
Loss (gain) on disposition of real estate, net |
0.9 | (1.3 | ) | |||||
EBITDA before JVs |
$ | 122.0 | $ | 127.3 | ||||
Pro rata share of JV FFO |
12.8 | 15.2 | ||||||
Pro rata share of JV impairments and loss on disposition of assets |
1.6 | 0.5 | ||||||
EBITDA Consolidated |
$ | 136.4 | $ | 143.0 | ||||
EBITDA Consolidated annualized |
$ | 545.6 | $ | 572.0 | ||||
Consolidated indebtedness |
$ | 4,270.0 | $ | 4,302.0 | ||||
Non-controlling interests share of consolidated debt |
(21.7 | ) | (22.1 | ) | ||||
Adjustment to reflect convertible debt at face value |
54.2 | 58.0 | ||||||
Total consolidated indebtedness |
$ | 4,302.5 | $ | 4,337.9 | ||||
Cash and restricted cash |
(25.2 | ) | (23.7 | ) | ||||
Total consolidated indebtedness, net of cash |
$ | 4,277.3 | $ | 4,314.2 | ||||
Debt/EBITDA consolidated |
7.84 | 7.54 | ||||||
Ratio reflects Companys consolidated EBITDA and pro rata share of JV FFO. The
JV FFO, which is net of interest expense, reflects the earnings available to
the Company to service consolidated debt. In addition, the JV debt is
generally non-recourse to the Company. |
||||||||
Debt to EBITDA pro rata |
||||||||
EBITDA before JVs |
$ | 122.0 | $ | 127.3 | ||||
Pro rata share of JV EBITDA |
25.6 | 30.4 | ||||||
EBITDA including pro rata share of JVs |
$ | 147.6 | $ | 157.7 | ||||
EBITDA including pro rata share of JVs annualized |
$ | 590.4 | $ | 630.8 | ||||
Total consolidated indebtedness, net of cash |
$ | 4,277.3 | $ | 4,314.2 | ||||
Pro rata share of JV debt (2) |
790.8 | 835.8 | ||||||
Total pro rata indebtedness |
$ | 5,068.1 | $ | 5,150.0 | ||||
Pro rata share of JV cash and restricted cash |
(95.5 | ) | (32.6 | ) | ||||
Pro rata indebtedness, net of cash |
$ | 4,972.6 | $ | 5,117.4 | ||||
Debt/EBITDA pro rata |
8.42 | 8.11 | ||||||
Ratio includes Companys pro rata share of JV EBITDA and the Companys pro rata share of JV debt outstanding. |
Notes: |
||||||||
(1) Discontinued operations includes the
following EBITDA adjustments: |
||||||||
Impairment charges |
$ | 2.0 | $ | | ||||
Interest expense, net |
0.1 | 0.2 | ||||||
Depreciation and amortization |
0.1 | 0.2 | ||||||
Gain on disposition of real estate, net |
(0.3 | ) | (8.4 | ) | ||||
$ | 1.9 | $ | (8.0 | ) | ||||
(2) | Includes $52.6 million of debt representing the Companys proportionate share of non recourse debt associated with equity method joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income. |
16
| Percentage and overage rents are recognized after the tenants reported sales have exceeded the applicable sales breakpoint. |
| Revenues associated with tenant reimbursements are recognized in the period in which the expenses are incurred based upon the provisions of tenants leases. |
| Lease termination fees are included in other revenue and recognized upon termination of a tenants lease, which generally coincides with the receipt of cash. |
| Base rental revenue includes income from ground leases of $5.3 million for the three months ended March 31, 2011. |
| General and administrative expenses include internal leasing salaries, legal salaries and related expenses associated with the leasing of space which are charged to operations as incurred. For the three months ended March 31, 2011, the Company expensed $1.8 million in internal leasing costs. All internal and external costs associated with acquisitions are expensed as incurred. The Company does not capitalize any executive officer compensation. |
| Costs incurred in obtaining long-term financing are included in deferred charges and are amortized over the terms of the related debt agreements; such amortization is reflected as interest expense in the consolidated statements of operations. |
| Real estate assets are stated at cost less accumulated depreciation, which, in the opinion of management, is not in excess of the individual propertys estimated undiscounted future cash flows, including estimated proceeds from disposition. |
| Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets as follows: |
Buildings
|
15 to 31 years | |
Furniture/Fixtures and Tenant Improvements
|
Useful lives, which approximate lease terms, where applicable |
17
| Expenditures for maintenance and repairs are charged to operations as incurred. Renovations that improve or extend the life of the asset are capitalized. |
| Construction in progress includes shopping center developments and significant expansions and redevelopments. |
| The Company accounts for the acquisition of a partners interest in an unconsolidated joint venture in which a change in control of the asset has occurred at fair value. |
| The Company capitalizes interest on funds used for the construction or expansion of shopping centers and certain construction administration costs. Capitalization of interest and administration costs ceases when construction activities are completed and the property is available for occupancy by tenants or when activities are suspended. |
Three Months | ||||||||||||
Ended | ||||||||||||
March 31, | Year Ended December 31, | |||||||||||
Capitalized Costs (In Millions) | 2011 | 2010 | 2009 | |||||||||
Interest expense |
$ | 3.0 | $ | 12.2 | $ | 21.8 | ||||||
Construction administration
costs |
$ | 2.3 | $ | 8.8 | $ | 10.9 |
| Interest and real estate taxes incurred during the construction period are capitalized and depreciated over the building life. |
| During the three months ended March 31, 2011, the Company expensed $1.2 million in operating costs relating to development projects that have been suspended. |
| Gain on sales of real estate generally related to the sale of outlots and land adjacent to existing shopping centers is recognized at closing when the earnings process is deemed to be complete. |
| Gains or losses on the sale of operating shopping centers are reflected as discontinued operations. |
18
| The Company incurred the following estimated leasing and maintenance capital expenditures including costs associated with anchor store re-tenanting related to major tenant bankruptcies. |
Unconsolidated | ||||||||
Consolidated | at Prorata | |||||||
Three Months | Three Months | |||||||
Ended | Ended | |||||||
March 31, 2011 | March 31, 2011 | |||||||
Capital Expenditures (In Millions) |
||||||||
Leasing |
$ | 10.1 | $ | 1.9 | ||||
Maintenance |
1.4 | | ||||||
Total Capital Expenditures |
$ | 11.5 | $ | 1.9 | ||||
Per Square Foot of Owned GLA |
||||||||
Leasing |
$ | 0.21 | $ | 0.26 | ||||
Maintenance |
0.03 | 0.01 | ||||||
Total Capital Expenditures |
$ | 0.24 | $ | 0.26 | ||||
| Included in Land is undeveloped real estate, comprised primarily of outlots or expansion pads adjacent to the shopping centers owned by the Company. |
| At December 31, 2010, the Company estimated the value of its consolidated and proportionate share of joint venture undeveloped land adjacent to existing shopping centers to be approximately $35 million. This value has not been adjusted to reflect changes in market activity subsequent to December 31, 2010. |
| There are eleven consolidated shopping centers and the Companys corporate headquarters, which total 0.8 million square feet with a land and building cost basis of approximately $100 million, considered non-incoming producing at March 31, 2011. |
19
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2011 | 2010 | |||||||||||
Total Same Store NOI |
$ | 210.5 | $ | 202.6 | 3.9 | % | ||||||
Property NOI from other operating segments |
37.0 | 38.3 | ||||||||||
Combined NOI DDR & Joint Ventures |
$ | 247.5 | $ | 240.9 | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
Total Revenues DDR |
$ | 203.0 | $ | 202.1 | ||||
Total Revenues Combined Joint Ventures |
172.4 | 164.1 | ||||||
Operating and Maintenance DDR |
(38.1 | ) | (34.4 | ) | ||||
Real Estate Taxes DDR |
(26.8 | ) | (27.4 | ) | ||||
Operating and Maintenance and Real Estate
Taxes Combined Joint Ventures |
(63.0 | ) | (63.5 | ) | ||||
Combined NOI DDR & Joint Ventures |
$ | 247.5 | $ | 240.9 | ||||
20
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
FUNDS FROM OPERATIONS: |
||||||||
Net Income (Loss) Applicable to Common Shareholders |
$ | 24.7 | $ | (34.8 | ) | |||
Depreciation and Amortization of Real Estate Investments |
53.8 | 54.5 | ||||||
Equity in Net Income of Joint Ventures |
(1.9 | ) | (1.6 | ) | ||||
Joint Venture Funds From Operations |
12.8 | 11.6 | ||||||
Gain on Dispostion of Depreciable Real Estate |
(0.3 | ) | (1.3 | ) | ||||
FUNDS FROM OPERATIONS AVAILABLE TO COMMON
SHAREHOLDERS |
$ | 89.1 | $ | 28.4 | ||||
Preferred Dividends |
10.6 | 10.6 | ||||||
FUNDS FROM OPERATIONS |
$ | 99.7 | $ | 39.0 | ||||
OPERATING FFO: |
||||||||
Non-cash impairment charges consolidated assets |
$ | 3.8 | $ | 2.1 | ||||
Executive separation charges |
10.7 | 2.1 | ||||||
Gain on debt retirement, net |
| (1.1 | ) | |||||
Non-cash (gain) loss on equity derivative instruments |
(21.9 | ) | 24.9 | |||||
Other (income) expense, net litigation, net of tax,
debt extinguishment
costs, lease liability settlement and other expenses |
(1.3 | ) | 3.1 | |||||
Equity in net income of joint ventures loss on asset
sales and impairment
charges |
1.6 | 1.3 | ||||||
Gain on change in control of interests |
(21.7 | ) | | |||||
Discontinued operations non-cash consolidated
impairment charges and
loss on sales |
1.9 | 2.4 | ||||||
Discontinued operations FFO associated with Mervyns
Joint Venture,
net of non-controlling interest |
| 2.0 | ||||||
Loss on disposition of real estate (land), net |
1.0 | | ||||||
TOTAL NON-OPERATING ITEMS |
$ | (25.9 | ) | $ | 36.8 | |||
FUNDS FROM OPERATIONS AVAILABLE TO COMMON
SHAREHOLDERS |
89.1 | 28.4 | ||||||
OPERATING FFO AVAILABLE TO COMMON SHAREHOLDERS |
$ | 63.2 | $ | 65.2 | ||||
Three Months Ended | ||||||||
March 31, | ||||||||
2011 | 2010 | |||||||
ADDITIONAL NON-CASH DISCLOSURES (Income)/Expense: |
||||||||
Below Market Rent Revenue* |
$ | (0.2 | ) | $ | (0.1 | ) | ||
Debt Premium Amortization Revenue* |
(0.5 | ) | (0.8 | ) | ||||
Convertible Debt Accretion Expense |
3.8 | 2.0 | ||||||
Straight-Line Rent Revenue |
(0.3 | ) | (1.0 | ) | ||||
Straight-Line Ground Rent Expense* |
0.5 | 0.5 | ||||||
Joint Venture Straight-Line Rent Revenue |
(0.6 | ) | (1.2 | ) | ||||
DDRs Prorata Share of Straight-Line Rent Revenue |
(0.1 | ) | (0.2 | ) |
* | Prorata share of joint venture is deminis |
21
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2011 | 2010 | |||||||||||
Included in FFO: |
||||||||||||
Gain (Loss) on Dispositions, Net of Tax |
$ | (133 | ) | $ | (690 | ) | ||||||
Loss on Sales from Discontinued Operations |
82 | (686 | ) | |||||||||
Land Sale Gain (Loss) |
(877 | ) | | |||||||||
$ | (928 | ) | $ | (1,376 | ) | |||||||
NOT Included in FFO: |
||||||||||||
Gain (Loss) on Dispositions, Net of Tax |
$ | 149 | $ | 15 | ||||||||
Gain on Sales from Discontinued Operations |
162 | 1,252 | ||||||||||
$ | 311 | $ | 1,267 | FFO Reconciliation | ||||||||
Reconciliation to Income Statement |
||||||||||||
Gain on Disposition of Real Estate, Net of Tax |
||||||||||||
Gain (Loss) on Dispositions, Net of Tax |
$ | (133 | ) | $ | (690 | ) | ||||||
Land Sale Gain (Loss) |
(877 | ) | | |||||||||
Gain (Loss) on Dispositions, Net of Tax |
149 | 15 | ||||||||||
$ | (861 | ) | $ | (675 | ) | Consolidated Income Statement | ||||||
Gain (Loss) on Disposition of Real Estate From Discontinued Operations, Net of
Tax |
||||||||||||
Gain (Loss) on Sales from Discontinued Operations |
$ | 244 | $ | 566 | Footnote K to the Press Release | |||||||
22
Three Months Ended | ||||||||||||
March 31, | ||||||||||||
2011 | 2010 | |||||||||||
Included in FFO: |
||||||||||||
Loss on Sales from Discontinued Operations |
$ | (863 | ) | $ | (8,752 | ) | ||||||
Land Sale Gains and Loss on Disposition of Real
Estate |
| | ||||||||||
$ | (863 | ) | $ | (8,752 | ) | |||||||
DDRs Proportionate Share |
$ | (1,948 | ) | $ | (1,312 | ) | ||||||
NOT Included in FFO: |
||||||||||||
Gain (Loss) on Dispositions |
$ | | $ | | ||||||||
Gain on Sales from Discontinued Operations |
| | ||||||||||
$ | | $ | | |||||||||
DDRs Proportionate Share |
$ | | $ | | ||||||||
Reconciliation to Income Statement |
||||||||||||
Gain on Sales of Real Estate |
||||||||||||
Land Sale Gains and Loss on Disposition of Real
Estate |
$ | | $ | | ||||||||
Gain (Loss) on Dispositions |
| | ||||||||||
$ | | $ | | Loss on Disposition of Assets | ||||||||
Gain (Loss) on Disposition of Real Estate From Discontinued Operations |
||||||||||||
Gain (Loss) on Sales from Discontinued Operations |
$ | (863 | ) | $ | (8,752 | ) | Loss on Disposition of Discontinued Operations | |||||
23
All Values at 100% | ||||||||||||||||||||||||||||
(In Millions) | ||||||||||||||||||||||||||||
Number of | Gross | Total | ||||||||||||||||||||||||||
DDR | Operating | Leasable | Annualized | Gross Asset Book | ||||||||||||||||||||||||
Legal Name | Partner(s) | Ownership % | Properties | Area | Rent | Value | Debt | |||||||||||||||||||||
Unconsolidated Joint Ventures |
||||||||||||||||||||||||||||
DDRTC Core Retail Fund, LLC |
An Affiliate of TIAA-CREF | 15 | % | 42 | 11.7 | $ | 135.7 | $ | 2,287.2 | $ | 1,221.0 | |||||||||||||||||
DDR Domestic Retail Fund I |
Various Institutional Investors | 20 | % | 63 | 8.3 | 92.4 | 1,475.6 | 965.2 | ||||||||||||||||||||
Sonae Sierra Brasil BV Sarl |
Sonae Sierra, SGPS, SA | 33.3 | % | 10 | 3.9 | 115.4 | 721.2 | 117.2 | ||||||||||||||||||||
DDRA Community Centers Five, L.P. |
DRA Advisors | 50 | % | 4 | 1.6 | 23.3 | 219.2 | 248.3 | ||||||||||||||||||||
Coventry II Joint Ventures |
Coventry II Fund | 20 | % | 5 | 2.3 | 26.4 | 442.0 | 303.5 | ||||||||||||||||||||
RVIP Structures/DPG Realty Holdings LLC |
Prudential RE Advisors/Prudential Insurance | 10% - 25.75 | % | 3 | 0.5 | 10.2 | 108.3 | 60.0 | ||||||||||||||||||||
DDR-SAU Retail Fund, LLC |
Special Account-U, L.P. (State of Utah) | 20 | % | 27 | 2.3 | 23.0 | 304.8 | 183.1 | ||||||||||||||||||||
DDR Markaz II LLC |
Kuwait Financial Centre | 20 | % | 13 | 1.6 | 15.6 | 206.3 | 150.5 | ||||||||||||||||||||
TRT DDR Venture I General Partnership |
TRT-DDR Joint Venture I Owner LLC | 10 | % | 3 | 0.5 | 9.2 | 160.3 | 110.0 | ||||||||||||||||||||
Other Unconsolidated JV Interests |
Various | Various | 21 | 2.7 | 21.4 | 312.6 | 190.0 | |||||||||||||||||||||
191 | 35.4 | $ | 472.6 | $ | 6,237.5 | $ | 3,548.8 | |||||||||||||||||||||
Unconsolidated Joint Ventures DDRs investment written off | ||||||||||||||||||||||||||||
Coventry II Joint Ventures |
Coventry II Fund | 10% - 20 | % | 41 | (2) | 3.1 | $ | 28.5 | $ | 414.1 | $ | 335.5 | ||||||||||||||||
Total Unconsolidated Joint Ventures |
232 | 38.5 | $ | 501.1 | $ | 6,651.6 | $ | 3,884.3 | ||||||||||||||||||||
(1) | DDRs investment in joint ventures may be recorded at different amounts than the proportionate equity on the joint ventures balance sheet. | |
(2) | Includes one asset in which development was suspended. |
24
Total | DDRs Proportionate | |||||||
Unconsolidated JVs | Share | |||||||
Real estate assets |
$ | 6,651.6 | $ | 1,370.0 | ||||
Accumulated depreciation |
(747.7 | ) | (172.2 | ) | ||||
Real estate, net |
5,903.9 | 1,197.8 | ||||||
Receivables, net |
100.1 | 25.2 | ||||||
Other assets, net |
527.7 | 147.7 | ||||||
Disproportionate share of equity |
| (19.5 | )(1) | |||||
$ | 6,531.7 | $ | 1,351.2 | |||||
Mortgage debt (2) |
$ | 3,884.3 | $ | 790.8 | ||||
Amounts payable to DDR |
91.3 | 11.1 | ||||||
Other liabilities |
205.3 | 49.4 | ||||||
4,180.9 | 851.3 | |||||||
Accumulated equity |
2,350.8 | 519.4 | ||||||
Disproportionate share of equity |
| (19.5 | )(1) | |||||
$ | 6,531.7 | $ | 1,351.2 | |||||
Total Unconsolidated JVs | DDRs Proportionate Share | |||||||
Three-Month Period | Three-Month Period | |||||||
Ended March 31, 2011 | Ended March 31, 2011 | |||||||
Revenues from operations |
$ | 172.4 | $ | 38.6 | ||||
Rental operation expenses |
(63.0 | ) | (13.1 | ) | ||||
Net operating income |
109.4 | 25.5 | (3) | |||||
Depreciation and amortization expense |
(47.8 | ) | (9.4 | ) | ||||
Interest expense |
(58.1 | ) | (11.1 | ) | ||||
Income before gain on sale of real estate |
3.5 | 5.0 | ||||||
Income tax expense |
(6.1 | ) | (2.0 | ) | ||||
Discontinued operations |
(0.4 | ) | | |||||
Loss on disposition of discontinued operations |
(0.9 | ) | (0.2 | ) | ||||
Disproportionate share of income |
| 1.1 | (1)(3) | |||||
Net (loss) income |
$ | (3.9 | ) | $ | 3.9 | |||
DDR ownership interests |
$ | 3.9 | $ | 3.9 | ||||
Amortization of basis differential |
(1.9 | ) | | |||||
$ | 2.0 | $ | 3.9 | |||||
Funds From Operations |
||||||||
Net (loss) income |
$ | (3.9 | ) | $ | 3.9 | |||
Depreciation of real property |
47.8 | 9.3 | ||||||
Gain on sale of real estate |
| | ||||||
Disproportionate share of income |
| (0.4 | )(1) | |||||
$ | 43.9 | $ | 12.8 | |||||
DDR ownership interests |
$ | 12.8 | ||||||
(1) | Adjustments represent the effect of promoted equity structures and minority interests. | |
(2) | Includes approximately $307.7 million of non recourse debt of which the Companys prorata share is $52.6 million associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income. | |
(3) | DDRs prorata share of NOI including discontinued operations is $25.6 million. |
25
Acquisition | Aggregate | |||||||||||||||
of Partners | Proportionate | |||||||||||||||
Ownership | Purchase | Total | ||||||||||||||
Acquisition Date | Location | Interest | Price | GLA | ||||||||||||
Various |
OH and MN | 50 | % | $ | 39.9 | 520.5 | (1) | |||||||||
Total |
Acquisitions | $ | 39.9 | 520.5 | ||||||||||||
(1) | In conjunction with the acquisition of our partners ownership interest in one of the assets, the Company entered into a new $21 million, 11-year mortgage note payable. |
DDRs | ||||||||||||||||||||||||
Effective | Joint | Total | Gross Sales | |||||||||||||||||||||
Disposition Date | Location | Ownership | Venture | GLA | Price | Relinquished Debt | ||||||||||||||||||
01/11 |
Augusta, GA | 15 | % | DDRTC Core | 22.6 | $ | 0.7 | $ | 0.8 | |||||||||||||||
02/11 |
Austin, TX | 26 | % | Prudential | 282.8 | 29.0 | 21.0 | |||||||||||||||||
02/11 |
Wilmington, NC | 100 | % | | 51.9 | 3.5 | | |||||||||||||||||
02/11 |
Twinsburg, OH | 100 | % | | 35.9 | 1.8 | | |||||||||||||||||
Various |
Various | 100 | % | | | 8.0 | | |||||||||||||||||
Total Dispositions |
393.2 | $ | 43.0 | $ | 21.8 | |||||||||||||||||||
26
2011 Activity | ||||||||||||||||||||||||||||
Net | Net Projected | Placed | To Be Placed | |||||||||||||||||||||||||
As of March 31, 2011 | Expenditures | Expenditures | In Service | In Service | ||||||||||||||||||||||||
Land | CIP | Total | Year to Date (1) | 2Q-4Q 2011 | Year to Date | 2Q-4Q 2011 | ||||||||||||||||||||||
Ground up Development Projects in Progress |
$ | 37.2 | $ | 57.9 | $ | 95.1 | $ | | $ | 4.1 | $ | 9.9 | $ | 30.8 | ||||||||||||||
Ground up Development Projects Primarily on Hold |
370.3 | 156.9 | 527.2 | (4.3 | ) | (9.6 | ) | | | |||||||||||||||||||
Substantially Completed Projects Pending Lease up |
28.6 | 19.7 | 48.3 | 1.7 | 4.9 | 13.8 | 27.7 | |||||||||||||||||||||
Expansion, Redevelopment, and Retenanting Projects |
| 44.4 | 44.4 | 16.0 | 67.7 | 16.1 | 69.7 | |||||||||||||||||||||
Total |
$ | 436.1 | $ | 278.9 | $ | 715.0 | $ | 13.4 | $ | 67.1 | $ | 39.8 | $ | 128.2 | ||||||||||||||
Cost | Assets | |||||||||||||||||||||||||||
Total | Owned | Estimated | Incurred | Placed in | ||||||||||||||||||||||||
Location | Project Name | GLA | GLA | Net Cost(2) | To Date | Service | Major Anchors | |||||||||||||||||||||
Boise (Nampa), ID |
Nampa Gateway Center | 830.9 | 419.3 | $ | 126.7 | $ | 127.7 | $ | 79.2 | JC Penney, Macys, The Sports Authority, Idaho Athletic Club, Regal Cinemas | ||||||||||||||||||
Austin (Kyle), TX (3) |
Kyle Marketplace | 805.6 | 443.1 | 77.3 | 61.0 | 14.4 | Target, Kohls | |||||||||||||||||||||
1,636.5 | 862.4 | $ | 204.0 | $ | 188.7 | $ | 93.6 | |||||||||||||||||||||
Total
Land Held for Development and CIP for Ground up Development Projects
in Progress at March 31, 2011: |
$ | 95.1 | ||||||||||||||||||||||||||
Summary of Significant Wholly-Owned and Consolidated Expansion, Redevelopment, and
Retenanting Projects |
||||||||||||||||||||||||||||
Cost | Assets | |||||||||||||||||||||||||||
Total | Owned | Estimate | Incurred | Placed in | ||||||||||||||||||||||||
Location | Project Name | GLA | GLA | Net Cost(2) | To Date | Service | Major Anchors | |||||||||||||||||||||
Denver, CO |
Tamarac Square | 151.3 | 16.0 | $ | 1.7 | $ | 1.1 | $ | | Target | ||||||||||||||||||
Miami (Plantation), FL |
The Fountains | 273.4 | 273.4 | 51.4 | 45.9 | 29.2 | Kohls, Dicks Sporting Goods, Marshalls/HomeGoods | |||||||||||||||||||||
Hatillo, PR |
Plaza Del Norte | 88.7 | 88.7 | 8.2 | | | JC Penney, Walmart, Sears | |||||||||||||||||||||
Charleston, SC |
Ashley Crossings | 95.0 | 95.0 | 5.0 | 2.5 | | Kohl's, Marshalls | |||||||||||||||||||||
San Antonio, TX |
Terrell Plaza | 225.7 | 90.8 | 4.7 | 2.1 | Target | ||||||||||||||||||||||
834.1 | 563.9 | $ | 71.0 | $ | 51.6 | $ | 29.2 | |||||||||||||||||||||
CIP for projects listed above: | $ | 22.4 | ||||||||||||||||||||||||||
CIP for other Expansion, Redevelopment, and Retenanting projects: | 22.0 | |||||||||||||||||||||||||||
Total
amount included in CIP at March 31, 2011 for Expansion,
Redevelopment, and Retenanting projects: |
$ | 44.4 | ||||||||||||||||||||||||||
(1) | Net Expenditures include receipts from land sales and reimbursements. | |
(2) | Estimated Net Cost includes future reductions for land sales and reimbursements. | |
(3) | Consolidated 50% Joint Venture |
27
As of March 31, 2011 | 2011 Activity | |||||||||||||||||||||||||||
Net | Net Projected | Placed | To Be Placed | |||||||||||||||||||||||||
Expenditures | Expenditures | In Service | In Service | |||||||||||||||||||||||||
Land | CIP | Total | Year to Date(1) | 2Q-4Q 2011 | Year to Date | 2Q-4Q 2011 | ||||||||||||||||||||||
Ground up Development Projects in Progress |
$ | 28.5 | $ | 69.2 | $ | 97.7 | $ | 22.0 | $ | 88.0 | $ | | $ | 103.2 | ||||||||||||||
Land Held for Development |
20.4 | 8.3 | 28.7 | 0.5 | 41.7 | | | |||||||||||||||||||||
Ground up Development Projects Primarily on Hold |
23.3 | 2.4 | 25.7 | 0.4 | (0.2 | ) | | | ||||||||||||||||||||
Substantially Completed Projects Pending Lease up |
2.1 | 18.2 | 20.3 | 1.6 | 4.9 | 17.4 | 5.0 | |||||||||||||||||||||
Expansion, Redevelopment, and Retenanting Projects |
| 24.8 | 24.8 | 13.5 | 60.4 | 9.9 | 66.0 | |||||||||||||||||||||
Total |
$ | 74.3 | $ | 122.9 | $ | 197.2 | $ | 38.0 | $ | 194.8 | $ | 27.3 | $ | 174.2 | ||||||||||||||
DDRs | Cost | Assets | ||||||||||||||||||||||||||||||
Effective | Total | Owned | Estimated | Incurred | Placed in | |||||||||||||||||||||||||||
Location | Project Name | Ownership | GLA | GLA | Net Cost (2) | To Date | Service | Major Anchors | ||||||||||||||||||||||||
Uberlandia, Brazil |
Patio Uberlandia | 33.3 | % | 487.7 | 487.7 | $ | 103.2 | $ | 59.1 | $ | | Walmart, Cinemark, Centuaro, Leroy Merlin, Renner, Magic Games, Fast Shop, Luiggi Bertolli, Kalunga | ||||||||||||||||||||
Londrina, Brazil |
Boulevard Londrina | 28.0 | % | 518.2 | 518.2 | 135.6 | 38.6 | | Walmart, Cinemark, Centuaro, Etna, Magazine Luiza, Kalunga, Luiggi Bertolli | |||||||||||||||||||||||
1,005.9 | 1,005.9 | $ | 238.8 | $ | 97.7 | | ||||||||||||||||||||||||||
Total Land Held for Development and CIP for Ground up Development Projects in progress at March 31, 2011: |
$ | 97.7 | ||||||||||||||||||||||||||||||
DDRs | Cost | Assets | ||||||||||||||||||||||||||||||
Effective | Total | Owned | Estimated | Incurred | Placed in | |||||||||||||||||||||||||||
Location | Project Name | Ownership | GLA | GLA | Net Cost (2) | To Date | Service | Major Anchors | ||||||||||||||||||||||||
Sao Paulo, Brazil |
Metropole Shopping Center | 33.3 | % | 94.0 | 94.0 | $ | 34.6 | $ | 11.2 | $ | | Etna, Fast Shop, PlayArte, Outback, Lojas Americanas, Renner | ||||||||||||||||||||
Sao Paulo, Brazil |
Campo Limpo Shopping Center | 6.7 | % | 28.1 | 28.1 | 4.3 | 1.8 | | D-Mart, Parking & Games | |||||||||||||||||||||||
122.1 | 122.1 | $ | 38.9 | $ | 13.0 | $ | | |||||||||||||||||||||||||
CIP for projects listed above: | $ | 11.2 | ||||||||||||||||||||||||||||||
CIP for other Expansion, Redevelopment, and Retenanting projects: | 13.6 | |||||||||||||||||||||||||||||||
Total amount included in CIP at March 31, 2011 for Expansion, Redevelopment, and Retenanting projects: |
$ | 24.8 | ||||||||||||||||||||||||||||||
(1) | Net Expenditures include receipts from land sales and reimbursements. | |
(2) | Estimated Net Cost includes future reductions for land sales and reimbursements. |
28
DDRs Effective | ||||||||
MSA (Location) | Ownership | Total Acreage | ||||||
Ukiah (Mendocino), CA |
50 | % | 75.7 | |||||
New Haven (Guilford), CT |
100 | % | 26.0 | |||||
Orlando (Lee Vista), FL |
100 | % | 74.3 | |||||
Tampa (Brandon), FL |
100 | % | 46.3 | |||||
Tampa (Wesley Chapel), FL |
100 | % | 10.0 | |||||
Atlanta (Douglasville), GA |
100 | % | 28.5 | |||||
Chicago (Grayslake), IL |
50 | % | 106.0 | |||||
Kansas City (Merriam), KS |
100 | % | 35.1 | |||||
Boston, MA (Seabrook, NH) |
100 | % | 50.9 | |||||
Gulfport, MS |
100 | % | 86.2 | |||||
Raleigh (Apex), NC |
100 | % | 52.6 | |||||
Oconomowoc, WI |
50 | % | 121.6 | |||||
Isabela, Puerto Rico |
80 | % | 11.1 | |||||
Toronto (Brampton), CAN |
50 | % | 43.0 | |||||
Toronto (East Gwillimbury Bayview/Greenlane), CAN |
50 | % | 39.0 | |||||
Toronto (East Gwillimbury Hwy 404/Greenlane East), CAN |
50 | % | 44.0 | |||||
Toronto (East Gwillimbury Hwy 404/Greenlane West), CAN |
50 | % | 29.0 | |||||
Toronto (Richmond Hill), CAN |
50 | % | 52.0 | |||||
Togliatti, Russia |
75 | % | 61.2 | |||||
Yaroslavl, Russia |
75 | % | 8.0 | |||||
Other Misc. Land (8 sites) |
100 | % | Various | |||||
1,007.6 | ||||||||
(In Millions) | ||||
Wholly-owned and consolidated projects included in Land Held for Development and CIP: |
$ | 527.2 | (1) | |
Unconsolidated joint venture projects included in Land Held for Development and CIP: |
25.7 | (2) | ||
Total Ground up Development Projects Primarily on Hold at March 31, 2011: |
$ | 552.9 | ||
(1) | Includes partners ownership interest of $125.9 million of which $28.3 million represents contributed cash. | |
(2) | DDRs prorata share is $12.8 million. |
29
Shopping Centers and Interests in Retail Assets |
521 | |||
Business Centers |
5 | |||
Million Square Feet Owned and Managed (Total) |
127 | |||
Million Square Feet Owned (Total) |
88 | |||
Million Square Feet Owned (Pro Rata) |
59 | |||
Portfolio % Leased |
92.6 | % | ||
Portfolio %
Commenced |
90.4 | % |
Shopping Centers |
263 | |||
Million Square Feet (Total) |
80 | |||
% of Total Portfolio NOI |
86.7 | % | ||
Prime Portfolio % Leased |
93.9 | % |
Percentage of | GLA | Percentage of | ||||||||||
Total ABR | (in Millions) | Total GLA | ||||||||||
1. Brazil |
11.5 | % | 5.0 | 3.9 | % | |||||||
2. Georgia |
9.6 | % | 13.3 | 10.3 | % | |||||||
3. Florida |
8.6 | % | 12.6 | 9.7 | % | |||||||
4. Puerto Rico |
8.0 | % | 5.0 | 3.9 | % | |||||||
5. New York |
6.2 | % | 8.8 | 6.8 | % | |||||||
6. North Carolina |
5.7 | % | 7.8 | 6.0 | % | |||||||
7. New Jersey |
5.4 | % | 5.7 | 4.4 | % | |||||||
8. Ohio |
5.3 | % | 7.9 | 6.1 | % | |||||||
9. Pennsylvania |
3.3 | % | 4.1 | 3.2 | % | |||||||
10.California |
3.2 | % | 2.8 | 2.1 | % |
30
Shopping Centers (Development Sites) |
10 | (3) | ||
Million Square Feet Owned and Managed (Total) |
5.0 | |||
Million Square Feet Owned (Total) |
4.9 | |||
Million Square Feet Potential Development |
0.8 | |||
Total Annualized Rent (in millions) |
$ | 115.4 | ||
Average Rent Per Square Foot |
$ | 28.82 | ||
Portfolio % Leased |
97.2 | % |
Shopping Centers |
15 | |||
Million Square Feet Owned and Managed (Total) |
5.0 | |||
Million Square Feet Owned (Total) |
4.0 | |||
Total Annualized Rent (in millions) |
$ | 80.8 | ||
Average Rent Per Square Foot |
$ | 16.27 | ||
Portfolio % Leased |
97.0 | % |
31
Number of | Total Annualized | |||||||||||
Period Ending | Properties | Leased Rate | Base Rent / S.F. | |||||||||
1Q 2011 |
476 | 92.6 | % | $ | 13.37 | |||||||
YE 2010 |
487 | 92.6 | % | $ | 13.36 | |||||||
YE 2009 |
544 | 91.4 | % | $ | 13.01 | |||||||
YE 2008 |
621 | 92.7 | % | $ | 12.60 | |||||||
YE 2007 |
628 | 96.0 | % | $ | 12.54 | |||||||
YE 2006 |
379 | 96.1 | % | $ | 11.90 | |||||||
YE 2005 |
379 | 96.3 | % | $ | 11.30 | |||||||
YE 2004 |
373 | 95.4 | % | $ | 11.13 | |||||||
YE 2003 |
274 | 95.1 | % | $ | 10.82 | |||||||
YE 2002 |
189 | 95.9 | % | $ | 10.58 | |||||||
YE 2001 |
192 | 95.4 | % | $ | 10.03 | |||||||
YE 2000 |
190 | 96.9 | % | $ | 9.66 | |||||||
YE 1999 |
186 | 95.7 | % | $ | 9.20 | |||||||
YE 1998 |
159 | 96.5 | % | $ | 8.99 | |||||||
YE 1997 |
123 | 96.1 | % | $ | 8.49 | |||||||
YE 1996 |
112 | 94.8 | % | $ | 7.85 | |||||||
YE 1995 |
106 | 96.3 | % | $ | 7.60 | |||||||
YE 1994 |
84 | 97.1 | % | $ | 5.89 | |||||||
YE 1993 |
69 | 96.2 | % | $ | 5.60 | |||||||
YE 1992 |
53 | 95.4 | % | $ | 5.37 |
Leased Rate | % of Vacancy | |||||||
Under 10,000 square
feet |
83.9 | % | 57.8 | % | ||||
10,000 - 20,000
square feet |
94.6 | % | 7.1 | % | ||||
20,000+ square feet |
95.9 | % | 35.1 | % |
32
Change in | ||||||||||||||||||||||||||||||||||||
Base Rent | Weighted | |||||||||||||||||||||||||||||||||||
New Rent | New Rent | over Prior | Average | Tenant | ||||||||||||||||||||||||||||||||
Number of | Year One | Year One | Prior Rent | Prior Rent | Rent in | Lease Term | Improvements | |||||||||||||||||||||||||||||
Leases | GLA | psf | Total | psf | Total | Comp Space | (in years) | psf | ||||||||||||||||||||||||||||
New Leases |
||||||||||||||||||||||||||||||||||||
New Leases spaces
vacant less than
one year |
71 | 141 | $ | 24.08 | $ | 3,397 | $ | 22.10 | $ | 3,118 | 9.0 | % | 6.3 | $ | 13.01 | |||||||||||||||||||||
New Leases spaces
vacant more than
one year |
97 | 665 | $ | 12.07 | $ | 8,021 | N/A | N/A | N/A | 8.2 | $ | 14.39 | ||||||||||||||||||||||||
Total New Leases |
168 | 806 | $ | 14.17 | $ | 11,419 | $ | 22.10 | $ | 3,118 | 9.0 | % | 7.9 | $ | 14.15 | |||||||||||||||||||||
Renewals |
260 | 1,826 | $ | 13.20 | $ | 24,105 | $ | 12.59 | $ | 22,985 | 4.9 | % | 4.4 | $ | 0.00 | |||||||||||||||||||||
Total All New Leases and Renewals |
428 | 2,631 | $ | 13.50 | $ | 35,523 | $ | 13.27 | $ | 26,103 | 5.4 | % | 5.5 | $ | 4.40 |
33
Three Months | ||||||||
Ended | 2010 Total / | |||||||
3/31/2011 | Average | |||||||
Number of lease transactions executed |
428 | 1,650 | ||||||
Rentable square footage leased (in thousands) |
2,631 | 9,332 | ||||||
Square footage of renewal deals (in thousands) |
1,826 | 5,687 | ||||||
Square footage of new deals (in thousands) |
806 | 3,645 | ||||||
Renewed square footage (% of total) |
69.4 | % | 60.9 | % | ||||
New leases square footage (% of total) |
30.6 | % | 39.1 | % | ||||
New Deals: |
||||||||
Weighted average per rentable square foot over the lease term: |
||||||||
Base rent |
$ | 14.87 | $ | 13.23 | ||||
Tenant allowance |
(1.66 | ) | (1.47 | ) | ||||
Landlord work |
(0.47 | ) | (0.89 | ) | ||||
Third party leasing commissions |
(0.31 | ) | (0.24 | ) | ||||
Rent concessions |
| | ||||||
Equivalent net effective rent |
$ | 12.44 | $ | 10.62 | ||||
Weighted average term in years |
7.9 | 8.0 | ||||||
Renewal Deals: |
||||||||
Weighted average per rentable square foot over the lease term: |
||||||||
Base rent |
$ | 13.33 | $ | 13.46 | ||||
Tenant allowance |
| | ||||||
Landlord work |
| | ||||||
Third party leasing commissions |
| | ||||||
Rent concessions |
| | ||||||
Equivalent net effective rent |
$ | 13.33 | $ | 13.46 | ||||
Weighted average term in years |
4.4 | 4.3 |
34
Anchor Base Rent(1) | Shop Space Base Rent | |||||||||||||||||||||||||||||||
Revenues | % of Total | Revenues | % of Total | |||||||||||||||||||||||||||||
Year | Leases | ($M) | Avg. PSF | Revenue | Leases | ($M) | Avg. PSF | Revenue | ||||||||||||||||||||||||
2011 |
87 | $ | 22.7 | $ | 9.84 | 2.6 | % | 895 | $ | 44.4 | $ | 19.75 | 5.1 | % | ||||||||||||||||||
2012 |
170 | $ | 49.9 | $ | 9.49 | 5.8 | % | 1,126 | $ | 60.8 | $ | 20.22 | 7.0 | % | ||||||||||||||||||
2013 |
183 | $ | 49.0 | $ | 9.73 | 5.7 | % | 1,002 | $ | 53.0 | $ | 19.84 | 6.1 | % | ||||||||||||||||||
2014 |
203 | $ | 61.5 | $ | 9.33 | 7.1 | % | 750 | $ | 40.4 | $ | 20.58 | 4.7 | % | ||||||||||||||||||
2015 |
192 | $ | 60.5 | $ | 9.74 | 7.0 | % | 693 | $ | 39.4 | $ | 20.07 | 4.5 | % | ||||||||||||||||||
2016 |
184 | $ | 60.4 | $ | 10.60 | 7.0 | % | 376 | $ | 26.9 | $ | 21.25 | 3.1 | % | ||||||||||||||||||
2017 |
94 | $ | 40.6 | $ | 10.30 | 4.7 | % | 137 | $ | 11.6 | $ | 24.42 | 1.3 | % | ||||||||||||||||||
2018 |
86 | $ | 31.4 | $ | 10.45 | 3.6 | % | 159 | $ | 15.2 | $ | 26.14 | 1.8 | % | ||||||||||||||||||
2019 |
93 | $ | 39.8 | $ | 11.73 | 4.6 | % | 105 | $ | 9.3 | $ | 23.60 | 1.1 | % | ||||||||||||||||||
2020 |
78 | $ | 27.0 | $ | 10.73 | 3.1 | % | 127 | $ | 10.2 | $ | 22.99 | 1.2 | % | ||||||||||||||||||
2011 - 2020 Subtotal |
1,370 | $ | 442.7 | $ | 10.19 | 51.1 | % | 5,370 | $ | 311.2 | $ | 21.89 | 35.9 | % | ||||||||||||||||||
Total Rent Roll |
1,542 | $ | 537.5 | $ | 10.16 | 62.0 | % | 5,655 | $ | 328.9 | $ | 20.83 | 38.0 | % |
(1) | Anchors are defined as 10,000 and above |
35
Total | Owned GLA | Unowned | Unowned | |||||||||||||||||||||
Total Units | GLA (msf) | Owned Units | (msf) | Units | GLA (msf) | |||||||||||||||||||
1. Walmart / Sams Club |
72 | 9.0 | 32 | 4.1 | 40 | 4.9 | ||||||||||||||||||
2. Target |
47 | 3.4 | 7 | 0.9 | 40 | 2.5 | ||||||||||||||||||
3. Lowes Home Improvement |
26 | 2.8 | 12 | 1.5 | 14 | 1.3 | ||||||||||||||||||
4. Home Depot |
30 | 2.4 | 8 | 0.8 | 22 | 1.6 | ||||||||||||||||||
5. Kohls |
36 | 1.8 | 29 | 1.5 | 7 | 0.3 | ||||||||||||||||||
6. Kmart / Sears |
31 | 1.5 | 30 | 1.5 | 1 | 0.0 | ||||||||||||||||||
7. TJX Companies |
76 | 1.5 | 76 | 1.5 | 0 | 0.0 | ||||||||||||||||||
8. PetSmart |
74 | 1.0 | 74 | 1.0 | 0 | 0.0 | ||||||||||||||||||
9. Kroger |
34 | 0.8 | 33 | 0.8 | 1 | 0.0 | ||||||||||||||||||
10.Publix |
49 | 0.7 | 46 | 0.6 | 3 | 0.1 |
(1) | Based on pro rata ownership of all properties. |
36
% of | ||||||||||||||||||||||||||||
Owned | Total | Credit Ratings | Base Rental | % of Total | Credit Ratings | |||||||||||||||||||||||
Major Tenant (units) | GLA | GLA | (S&P/Moodys) | Major Tenant (units) | Rev. ($M) | Base Rent | (S&P/Moodys) | |||||||||||||||||||||
1. Walmart / Sams Club (32) |
4.1 | 7.0 | % | AA / Aa2 | 1. Walmart / Sams Club (32) | $ | 26.3 | 4.2 | % | AA / Aa2 | ||||||||||||||||||
2. Kohls (29) |
1.5 | 2.6 | % | BBB+ / Baa1 | 2. TJX Companies (76) | $ | 14.1 | 2.2 | % | A / A3 | ||||||||||||||||||
3. TJX Companies (76) |
1.5 | 2.6 | % | A / A3 | 3. PetSmart (74) | $ | 12.6 | 2.0 | % | BB / NR | ||||||||||||||||||
4. Kmart / Sears (30) |
1.5 | 2.6 | % | BB- / Ba2 | 4. Bed Bath & Beyond (55) | $ | 12.1 | 1.9 | % | BBB / NR | ||||||||||||||||||
5. Lowes Home Improvement (12) |
1.5 | 2.6 | % | A / A1 | 5. Kohls (29) | $ | 10.6 | 1.7 | % | BBB+ / Baa1 | ||||||||||||||||||
6. Bed Bath & Beyond (55) |
1.0 | 1.7 | % | BBB / NR | 6. Michaels (60) | $ | 9.8 | 1.6 | % | B- / B3 | ||||||||||||||||||
7. PetSmart (74) |
1.0 | 1.7 | % | BB / NR | 7. Lowes Home Improvement (12) | $ | 9.1 | 1.4 | % | A / A1 | ||||||||||||||||||
8. Target (7) |
0.9 | 1.5 | % | A+ / A2 | 8. Rite Aid (35) | $ | 8.4 | 1.3 | % | B- / Caa2 | ||||||||||||||||||
9. Kroger (33) |
0.8 | 1.4 | % | BBB / Baa2 | 9. GAP/ Banana Republic / Old Navy (47) | $ | 8.0 | 1.3 | % | BB+ / Baa3 | ||||||||||||||||||
10.Michaels (60) |
0.8 | 1.4 | % | B- / B3 | 10.OfficeMax (41) | $ | 7.9 | 1.3 | % | B / B1 | ||||||||||||||||||
11.J.C. Penney (17) |
0.8 | 1.4 | % | BB+ / Ba1 | 11.Dicks Sporting Goods (26) | $ | 7.4 | 1.2 | % | NR / NR | ||||||||||||||||||
12.Home Depot (8) |
0.8 | 1.4 | % | BBB+ / Baa1 | 12.Tops Markets (17) (2) | $ | 7.4 | 1.2 | % | NR / NR | ||||||||||||||||||
13.Toys R Us (25) |
0.8 | 1.4 | % | NR / B1 | 13.Ross Stores (45) | $ | 7.3 | 1.2 | % | BBB / NR | ||||||||||||||||||
14.Dicks Sporting Goods (26) |
0.8 | 1.4 | % | NR / NR | 14.Best Buy (22) | $ | 7.2 | 1.1 | % | BBB- / Baa2 | ||||||||||||||||||
15.Ross Stores (45) |
0.7 | 1.2 | % | BBB / NR | 15.Kroger (33) | $ | 6.7 | 1.1 | % | BBB / Baa2 | ||||||||||||||||||
16.OfficeMax (41) |
0.6 | 1.0 | % | B / B1 | 16.Staples (35) | $ | 6.5 | 1.0 | % | BBB / Baa2 | ||||||||||||||||||
17.Tops Markets (17) (2) |
0.6 | 1.0 | % | NR / NR | 17.Regal Cinemas (10) | $ | 6.5 | 1.0 | % | B+ / B3 | ||||||||||||||||||
18.Publix (46) |
0.6 | 1.0 | % | NR / NR | 18.Cinemark Theatre (12) | $ | 6.4 | 1.0 | % | B+ / B3 | ||||||||||||||||||
19.Dollar Tree Stores (90) |
0.6 | 1.0 | % | NR / NR | 19.Barnes & Noble (26) | $ | 6.4 | 1.0 | % | NR / NR | ||||||||||||||||||
20.Hobby Lobby (16) |
0.5 | 0.9 | % | NR / NR | 20.Home Depot (8) | $ | 6.3 | 1.0 | % | BBB+ / Baa1 | ||||||||||||||||||
Subtotal 1-20 |
21.4 | 36.5 | % | Subtotal 1-20 | $ | 187.0 | 29.7 | % | ||||||||||||||||||||
Total Portfolio |
58.6 | 100.0 | % | Total Portfolio | $ | 630.4 | 100.0 | % |
(1) | Based on pro rata ownership of all properties. | |
(2) | 15 leases are guaranteed by Koninklijke Ahold NV, rated BBB / Baa3. |
37
March 31, 2011 | March 31, 2011 | December 31, 2010 | ||||||||||||||||||
March 31, 2011 | DDR Pro Rata | DDR Pro Rata | December 31, 2010 | DDR Pro Rata | ||||||||||||||||
Total Debt Outstanding | Aggregate | Share | Wtd. Avg. Interest | Aggregate | Share | |||||||||||||||
Mortgage Loans Payable: |
||||||||||||||||||||
Fixed rate secured loans |
$ | 1,234.7 | $ | 1,224.8 | 5.45 | % | $ | 1,234.5 | $ | 1,224.6 | ||||||||||
Variable rate secured loans |
97.1 | 85.3 | 1.88 | % | 144.0 | 131.8 | ||||||||||||||
Secured Term Loan |
550.0 | 550.0 | 1.95 | % | 600.0 | 600.0 | ||||||||||||||
Unsecured Public Debt |
2,345.5 | 2,345.5 | 5.77 | % | 2,043.6 | 2,043.6 | ||||||||||||||
Unsecured Credit Facilities |
42.7 | 42.7 | 3.63 | % | 279.9 | 279.9 | ||||||||||||||
Total |
$ | 4,270.0 | $ | 4,248.3 | 5.09 | % | $ | 4,302.0 | $ | 4,279.9 | ||||||||||
Scheduled | Secured | Unsecured | ||||||||||||||||||
Principal | Debt | Debt | Aggregate | DDR Pro Rata | ||||||||||||||||
Schedule of Maturities by Year (1) | Payments | Maturities | Maturities | Total | Share | |||||||||||||||
2011 |
$ | 20.7 | $ | 36.3 | $ | 180.9 | $ | 237.9 | $ | 238.0 | ||||||||||
2012 |
28.8 | 653.7 | 418.4 | 1,100.9 | 1,079.1 | |||||||||||||||
2013 |
25.8 | 425.9 | | 451.7 | 451.7 | |||||||||||||||
2014 |
17.5 | 370.5 | 42.7 | 430.7 | 430.7 | |||||||||||||||
2015 |
25.0 | 17.7 | 469.7 | 512.4 | 512.4 | |||||||||||||||
2016 |
15.0 | 2.3 | 298.7 | 316.0 | 316.0 | |||||||||||||||
2017 |
14.7 | | 300.0 | 314.7 | 314.7 | |||||||||||||||
2018 |
9.3 | 75.3 | 380.2 | 464.8 | 464.8 | |||||||||||||||
2019 |
4.4 | 74.7 | | 79.1 | 79.1 | |||||||||||||||
2020 |
2.6 | | 297.6 | 300.2 | 300.2 | |||||||||||||||
2021 and beyond |
33.1 | 28.5 | | 61.6 | 61.6 | |||||||||||||||
$ | 196.9 | $ | 1,684.9 | $ | 2,388.2 | $ | 4,270.0 | $ | 4,248.3 | |||||||||||
Percentage of Total Debt | March 31, 2011 | December 31, 2010 | ||||||
Fixed |
86.2 | % | 79.7 | % | ||||
Variable |
13.8 | % | 20.3 | % | ||||
Recourse to DDR |
70.3 | % | 69.2 | % | ||||
Non-recourse to DDR |
29.7 | % | 30.8 | % |
(1) | Assumes borrower extension options are exercised. |
38
March 31, 2011 | March 31, 2011 | December 31, 2010 | ||||||||||||||||||
March 31, 2011 | DDR Pro Rata | DDR Pro Rata | December 31, 2010 | DDR Pro Rata | ||||||||||||||||
Total Debt Outstanding | Aggregate | Share | Wtd. Avg. Interest | Aggregate | Share | |||||||||||||||
Mortgage Loans Payable: |
||||||||||||||||||||
Fixed rate secured loans |
$ | 3,237.1 | $ | 671.7 | 5.46 | % | $ | 3,289.3 | $ | 707.3 | ||||||||||
Variable rate secured loans |
647.2 | 119.1 | 4.68 | % | 661.5 | 128.5 | ||||||||||||||
Total |
$ | 3,884.3 | (2) | $ | 790.8 | (2) | 5.35 | % | $ | 3,950.8 | $ | 835.8 | ||||||||
Scheduled | Mortgage | |||||||||||||||
Principal | Loan | Aggregate | DDR Pro Rata | |||||||||||||
Schedule of Maturities by Year (1) | Payments | Maturities | Total | Share | ||||||||||||
2011 |
$ | 4.5 | $ | 242.6 | $ | 247.1 | $ | 55.7 | ||||||||
2012 |
5.9 | 1,504.6 | 1,510.5 | 335.2 | ||||||||||||
2013 |
5.7 | 234.0 | 239.7 | 30.6 | ||||||||||||
2014 |
5.7 | 150.5 | 156.2 | 31.1 | ||||||||||||
2015 |
2.3 | 190.5 | 192.8 | 40.1 | ||||||||||||
2016 |
2.4 | 16.4 | 18.9 | 5.8 | ||||||||||||
2017 |
2.6 | 1,372.2 | 1,374.8 | 254.4 | ||||||||||||
2018 |
1.9 | | 1.9 | 0.3 | ||||||||||||
2019 |
0.8 | 34.1 | 34.9 | 5.1 | ||||||||||||
2020 |
0.9 | 68.4 | 69.3 | 22.9 | ||||||||||||
2021 and beyond |
| 38.3 | 38.3 | 9.4 | ||||||||||||
$ | 32.7 | $ | 3,851.6 | $ | 3,884.3 | $ | 790.8 | |||||||||
Percentage of Total Debt | March 31, 2011 | December 31, 2010 | ||||||
Fixed |
83.3 | % | 83.3 | % | ||||
Variable |
16.7 | % | 16.7 | % | ||||
Recourse to DDR |
5.3 | % | 4.9 | % | ||||
Non-recourse to DDR |
94.7 | % | 95.1 | % |
(1) | Assumes borrower extension options are exercised. | |
(2) | Includes approximately $307.7 million of non-recourse debt of which the Companys proportionate share is $52.6 million of debt associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income. |
39
Loan | DDR | Final Maturity | Interest | |||||||||||||
Balance | Proportionate Share | Date (1) | Rate (2) | |||||||||||||
SENIOR DEBT |
||||||||||||||||
Unsecured Credit Facilities: |
||||||||||||||||
$950 Million Revolving Credit Facility |
$ | 42.7 | $ | 42.7 | 02/14 | LIBOR + 275 | ||||||||||
$65 Million Revolving Credit Facility |
| | 02/14 | LIBOR + 275 | ||||||||||||
Secured Credit Facility: |
||||||||||||||||
$550 Million Term Loan |
550.0 | 550.0 | 02/12 | LIBOR + 87.5 | ||||||||||||
Total Term and Credit Facility Debt |
$ | 592.7 | $ | 592.7 | ||||||||||||
PUBLIC DEBT |
||||||||||||||||
Medium Term Notes |
$ | 93.0 | $ | 93.0 | 04/11 | 5.25 | ||||||||||
Convertible Notes |
87.9 | (3) | 87.9 | 08/11 | 3.50 | |||||||||||
Convertible Notes |
195.1 | (4) | 195.1 | 03/12 | 3.00 | |||||||||||
Medium Term Notes |
223.2 | 223.2 | 10/12 | 5.38 | ||||||||||||
Medium Term Notes |
169.4 | 169.4 | 05/15 | 5.50 | ||||||||||||
Convertible Notes |
300.4 | (5) | 300.4 | 11/15 | 1.75 | |||||||||||
Medium Term Notes |
298.7 | 298.7 | 03/16 | 9.63 | ||||||||||||
Medium Term Notes |
300.0 | 300.0 | 04/17 | 7.50 | ||||||||||||
Medium Term Notes |
298.0 | 298.0 | 04/18 | 4.75 | ||||||||||||
Medium Term Notes |
82.2 | 82.2 | 07/18 | 7.50 | ||||||||||||
Medium Term Notes |
297.6 | 297.6 | 09/20 | 7.88 | ||||||||||||
Total Public Debt |
$ | 2,345.5 | $ | 2,345.5 | ||||||||||||
MORTGAGE DEBT |
||||||||||||||||
Union Town Center, Indian Trail, NC |
$ | 6.4 | $ | 6.4 | 10/11 | 7.00 | ||||||||||
Westgate Plaza, Gates, NY |
22.9 | 22.9 | 10/11 | 7.24 | ||||||||||||
Ashtabula Commons, Ashtabula, OH |
6.3 | 6.3 | 12/11 | 7.00 | ||||||||||||
Kyle Crossing, Kyle, TX |
23.7 | (6) | 11.9 | 01/12 | LIBOR + 350 | |||||||||||
Paradise Village Gateway, Phoenix, AZ |
30.0 | 20.1 | 03/12 | 5.39 | ||||||||||||
University Hills, Denver, CO |
24.9 | 24.9 | 07/12 | 7.30 | ||||||||||||
N. Charleston Center, N. Charleston, SC |
9.5 | 9.5 | 07/12 | 7.37 | ||||||||||||
Cortez Plaza, Bradenton, FL |
11.0 | 11.0 | 07/12 | 7.15 | ||||||||||||
Walgreens, Dearborn Hts, MI |
3.5 | 3.5 | 11/12 | 4.86 | ||||||||||||
Walgreens, Livonia, MI |
2.5 | 2.5 | 11/12 | 4.86 | ||||||||||||
Walgreens, Westland, MI |
2.6 | 2.6 | 03/13 | 4.86 | ||||||||||||
Plaza Escorial, Carolina, PR |
57.5 | 57.5 | 04/13 | 5.00 | ||||||||||||
Plaza Rio Hondo, Bayamon, PR |
109.5 | 109.5 | 04/13 | 5.00 | ||||||||||||
Paseo Colorado, Pasadena, CA |
79.1 | 79.1 | 04/13 | 5.00 | ||||||||||||
Meridian Crossroads & Family Center, Meridian, ID |
37.2 | 37.2 | 04/13 | 5.00 | ||||||||||||
University Center, Wilmington, NC |
24.5 | 24.5 | 04/13 | 5.00 | ||||||||||||
Aspen Grove, Littleton, CO |
42.2 | 42.2 | 04/13 | 5.00 | ||||||||||||
Victor Square, Victor, NY |
6.0 | 6.0 | 04/13 | 5.80 | ||||||||||||
DDRC Headquarters, Beachwood, OH |
35.5 | 35.5 | 04/13 | LIBOR + 110 | ||||||||||||
Wrangleboro Consumer Sq. I & II, Mays Landing, NJ |
37.4 | 37.4 | 05/13 | 6.99 | ||||||||||||
Monmouth Consumer Sq., W. Long Branch, NJ |
5.4 | 5.4 | 07/13 | 8.57 | ||||||||||||
Rotonda Plaza, Englewood, FL |
0.7 | 0.7 | 07/13 | 5.80 | ||||||||||||
Crossroads Center, Gulfport, MS |
25.8 | 25.8 | 10/14 | 4.23 | ||||||||||||
The Commons, Salisbury, MD |
9.1 | 9.1 | 10/14 | 4.23 | ||||||||||||
Chillicothe Place, Chillicothe, OH |
4.5 | 4.5 | 10/14 | 4.23 | ||||||||||||
Deer Valley Towne Center, Phoenix, AZ |
18.4 | 18.4 | 10/14 | 4.23 | ||||||||||||
Plaza at Sunset Hills, Sunset Hills, MO |
29.3 | 29.3 | 10/14 | 4.23 |
40
Consolidated Debt Detail (continued) | ||||||||||||||||
(In Millions) | ||||||||||||||||
Loan | DDR | Final Maturity | Interest | |||||||||||||
Balance | Proportionate Share | Date (1) | Rate (2) | |||||||||||||
North Pointe Plaza, North Charleston, SC |
11.5 | 11.5 | 10/14 | 4.23 | ||||||||||||
Wando Crossing, Mount Pleasant, SC |
12.6 | 12.6 | 10/14 | 4.23 | ||||||||||||
Brook Highland Plaza, Birmingham, AL |
25.8 | 25.8 | 10/14 | 4.23 | ||||||||||||
Mooresville Consumer Sq., Mooresville, NC |
19.0 | 19.0 | 10/14 | 4.23 | ||||||||||||
Town Center Plaza, Leawood, KS |
53.0 | 53.0 | 10/14 | 4.23 | ||||||||||||
Warner Robins Place, Warner Robins, GA |
7.1 | 7.1 | 10/14 | 4.23 | ||||||||||||
Cross Pointe Center, Fayetteville, NC |
10.4 | 10.4 | 10/14 | 4.23 | ||||||||||||
Overlook at Hamilton Place, Chattanooga, TN |
10.4 | 10.4 | 10/14 | 4.23 | ||||||||||||
Bermuda Square, Chester, VA |
7.8 | 7.8 | 10/14 | 4.23 | ||||||||||||
Home Depot Center, Orland Park, IL |
7.0 | 7.0 | 10/14 | 4.23 | ||||||||||||
Delaware Consumer Square, Buffalo, NY |
10.7 | 10.7 | 10/14 | 4.23 | ||||||||||||
Hamilton Marketplace, Hamilton, NJ |
43.4 | 43.4 | 10/14 | 4.23 | ||||||||||||
Marketplace at Delta Twp, Lansing, MI |
7.0 | 7.0 | 10/14 | 4.23 | ||||||||||||
Clearwater Collection, Clearwater, FL |
7.5 | 7.5 | 10/14 | 4.23 | ||||||||||||
Wendover Village, Greensboro, NC |
5.0 | 5.0 | 10/14 | 4.23 | ||||||||||||
Lexington Place, Lexington, SC |
4.5 | 4.5 | 10/14 | 4.23 | ||||||||||||
Downtown Short Pump, Richmond, VA |
13.1 | 13.1 | 10/14 | 4.23 | ||||||||||||
Loisdale Center, Springfield, VA |
11.6 | 11.6 | 10/14 | 4.23 | ||||||||||||
Windsor Court, Windsor, CT |
7.6 | 7.6 | 10/14 | 4.23 | ||||||||||||
Abernathy Square, Atlanta, GA |
12.7 | 12.7 | 10/14 | 4.23 | ||||||||||||
Sams Club, Worcester, MA |
5.7 | 5.7 | 10/14 | 4.23 | ||||||||||||
Walmart Supercenter, Alliance, OH |
7.5 | 7.5 | 10/14 | 4.23 | ||||||||||||
Kroger, Cincinnati, OH |
2.7 | 2.7 | 10/14 | 4.23 | ||||||||||||
Reno Riverside, Reno, NV |
3.0 | (6) | 3.0 | 02/15 | Prime + 170 | |||||||||||
Merriam Village, Merriam, KS |
15.0 | 15.0 | 05/15 | LIBOR + 250 | ||||||||||||
Hamilton Commons, Mays Landing, NJ |
8.0 | 8.0 | 09/15 | 4.70 | ||||||||||||
Consumer Square West, Columbus, OH |
10.7 | 10.7 | 11/15 | 8.00 | ||||||||||||
Tops Plaza, Lockport, NY |
7.5 | 7.5 | 01/16 | 8.00 | ||||||||||||
Merriam Town Center, Merriam, KS (TIF) |
2.3 | 2.3 | 02/16 | 6.90 | ||||||||||||
Freedom Plaza, Rome, NY |
2.8 | 2.8 | 09/16 | 7.85 | ||||||||||||
Walmart Supercenter, Winston-Salem, NC |
7.3 | 7.3 | 08/17 | 6.00 | ||||||||||||
Thruway Plaza (Walmart), Cheektowaga, NY |
3.2 | 3.2 | 10/17 | 6.78 | ||||||||||||
Tops Plaza, Ithaca, NY |
12.9 | 12.9 | 01/18 | 7.05 | ||||||||||||
Walmart Supercenter, Greenville, SC |
7.0 | 7.0 | 01/18 | 6.00 | ||||||||||||
Southland Crossings, Boardman, OH |
26.0 | 26.0 | 03/18 | 5.06 | ||||||||||||
The Promenade at Brentwood, St. Louis, MO |
33.0 | 33.0 | 03/18 | 5.06 | ||||||||||||
Johns Creek Town Center, Suwanee, GA |
26.0 | 26.0 | 03/18 | 5.06 | ||||||||||||
Mohawk Commons, Niskayuna, NY |
17.1 | 17.1 | 12/18 | 5.75 | ||||||||||||
Lowes, Hendersonville, TN |
6.5 | 6.5 | 01/19 | 7.66 | ||||||||||||
Plaza Isabela, Isabela, PR |
23.1 | 23.1 | 06/19 | 7.59 | ||||||||||||
Plaza Cayey, Cayey, PR |
21.9 | 21.9 | 06/19 | 7.59 | ||||||||||||
Plaza Walmart, Guayama, PR |
12.2 | 12.2 | 06/19 | 7.59 | ||||||||||||
Plaza Fajardo, Fajardo, PR |
26.3 | 26.3 | 06/19 | 7.59 | ||||||||||||
Mariner Square, Spring Hill, FL |
3.9 | 3.9 | 09/19 | 9.75 | ||||||||||||
Northland Square, Cedar Rapids, IA |
7.5 | 7.5 | 01/20 | 9.38 | ||||||||||||
Connecticut Commons, Plainville, CT (TIF) |
6.2 | 6.2 | 04/21 | 7.13 | ||||||||||||
West Valley Marketplace, Allentown, PA |
14.0 | 14.0 | 07/21 | 6.95 | ||||||||||||
Macedonia Commons, Macedonia, OH |
21.0 | 21.0 | 02/22 | 5.71 |
41
Consolidated Debt Detail (continued) | ||||||||||||||||
(In Millions) | ||||||||||||||||
Loan | DDR | Final Maturity | Interest | |||||||||||||
Balance | Proportionate Share | Date (1) | Rate (2) | |||||||||||||
Liberty Fair Mall, Martinsville, VA |
18.3 | 18.3 | 12/29 | 10.46 | ||||||||||||
Gulfport Promenade, Gulfport, MS |
20.0 | 20.0 | 12/37 | SIFMA + 5bp | ||||||||||||
Total Mortgage Debt |
$ | 1,331.8 | $ | 1,310.1 | ||||||||||||
Total Consolidated Debt |
$ | 4,270.0 | $ | 4,248.3 | ||||||||||||
Wtd. Avg. | Wtd. Avg. | |||||||||||||||
Maturity | Interest Rate | |||||||||||||||
Fixed Rate |
$ | 3,680.2 | $ | 3,670.3 | 4.5 years | 5.66 | % | |||||||||
Variable Rate |
589.8 | 578.0 | 2.1 years | 1.42 | % | |||||||||||
$ | 4,270.0 | $ | 4,248.3 | 4.2 years | 5.09 | % | ||||||||||
Outstanding Amount | ||||
Class G
8.0% |
$ | 180.0 | (7) | |
Class H 7.375% |
205.0 | |||
Class I 7.5% |
170.0 | |||
$ | 555.0 |
Notional Amount | Underlying Debt Hedged | Rate Hedged | Fixed Rate | Termination Date | ||||||||||||||||
Exchange Rate Swap |
$ | 60.6 | CAD Revolver Borrowings | USD/CAD | 0.97885 | % | April 5, 2011 | |||||||||||||
Interest Rate Swap |
$ | 100.0 | Secured Credit Facility | 1 mo. LIBOR | 4.815 | % | February 21, 2012 | |||||||||||||
Interest Rate Swap |
$ | 85.0 | Mortgage Portfolio | 1 mo. LIBOR | 2.8095 | % | September 1, 2017 |
(1) | Assumes borrower extension options are exercised. | |
(2) | Interest rate figures reflect coupon rates of interest and do not include discounts or premiums. Annualized deferred finance cost amortization of approximately $13.7 million is partially offset by approximately $2.2 million of fair market value adjustments. | |
(3) | The convertible notes may be net settled with DDRs common stock once the stock price rises above $64.23 per share. The principal balance on these notes is to be settled in cash. Included in this amount is a $0.8 million reduction as compared to the face value of the convertible notes as required by accounting standards due to the initial value of the equity conversion feature. | |
(4) | The convertible notes may be net settled with DDRs common stock once the stock price rises above $74.56 per share. The principal balance on these notes is to be settled in cash. Included in this amount is a $3.7 million reduction as compared to the face value of the convertible notes as required by accounting standards due to the initial value of the equity conversion feature. | |
(5) | The convertible notes may be net settled with DDRs common stock once the stock price rises above $16.36 per share at March 31, 2011 and is subject to adjustments resulting from changes in the quarterly dividend per share. The principal balance on these notes is to be settled in cash. Included in this amount is a $49.7 million reduction as compared to the face value of the convertible notes as required by accounting standards due to the initial value of the equity conversion feature. | |
(6) | The following loans have floor interest rates: |
Loan | Floor | |||
Kyle Crossing, Kyle, TX |
4.00 | % | ||
Reno Riverside, Reno, NV |
5.95 | % |
(7) | The Companys Class G 8.0% preferred shares were redeemed on April 4, 2011. |
42
Joint Venture Debt Detail | ||||||||||||||||
(In Millions) | ||||||||||||||||
Loan | DDR | Final Maturity | Interest | |||||||||||||
Balance | Proportionate Share | Date (1) | Rate | |||||||||||||
DDRTC Core Retail Fund, LLC |
||||||||||||||||
DDRTC Holdings Pool 5, LLC (13 assets) |
$ | 178.0 | $ | 26.7 | 02/12 | LIBOR + 65 | ||||||||||
DDRTC Holdings Pool 3, LLC (17 assets) |
555.0 | 83.3 | 03/12 | 5.48 | ||||||||||||
DDRTC Holdings Pool 1, LLC (9 assets) |
350.2 | 52.5 | 03/17 | 5.45 | ||||||||||||
DDRTC Holdings Pool 6, LLC |
||||||||||||||||
Aiken Exchange, Aiken, SC |
7.4 | 1.1 | 05/10 | 9.37 | ||||||||||||
Cox Creek Shopping Center, Florence, AL |
13.7 | 2.1 | 03/12 | 7.09 | ||||||||||||
Cypress Trace, Fort Myers, FL |
16.0 | 2.4 | 04/12 | 5.00 | ||||||||||||
Waterfront Marketplace, Homestead, PA |
27.8 | 4.2 | 08/12 | 6.35 | ||||||||||||
Waterfront Town Center, Homestead, PA |
36.6 | 5.5 | 08/12 | 6.35 | ||||||||||||
Creeks at Virginia Center, Glen Allen, VA |
24.7 | 3.7 | 08/12 | 6.37 | ||||||||||||
Willoughby Hills Shop Ctr, Willoughby Hills, OH |
11.5 | 1.7 | 07/18 | 6.98 | ||||||||||||
Total DDRTC Core Retail Fund LLC |
$ | 1,221.0 | $ | 183.2 | ||||||||||||
DDR Domestic Retail Fund I |
||||||||||||||||
Southampton Village, Tyrone, GA |
$ | 6.7 | $ | 1.3 | 05/11 | 4.66 | ||||||||||
Village Center Outlot, Racine, WI |
2.1 | 0.4 | 07/11 | 5.17 | ||||||||||||
Center Pointe Plaza, Easley, SC |
4.3 | 0.9 | 08/11 | 5.32 | ||||||||||||
Shoppes on the Ridge, Lake Wales, FL |
9.6 | 1.9 | 12/11 | 4.74 | ||||||||||||
Publix Brooker Creek, Palm Harbor, FL |
5.0 | 1.0 | 12/11 | 4.61 | ||||||||||||
Watercolor Crossing, Santa Rosa, FL |
4.4 | 0.9 | 01/12 | 4.76 | ||||||||||||
Heather Island Plaza, Ocala, FL |
6.2 | 1.2 | 12/12 | 5.00 | ||||||||||||
Hilliard Rome, Columbus, OH |
10.6 | 2.1 | 01/13 | 5.87 | ||||||||||||
Meadows Square, Boynton Beach, FL |
1.6 | 0.3 | 07/13 | 6.72 | ||||||||||||
Village Center, Racine, WI |
12.0 | 2.4 | 04/15 | 4.21 | ||||||||||||
Paradise Promenade, Davie, FL |
6.2 | 1.2 | 04/15 | 4.21 | ||||||||||||
West Falls Plaza, West Patterson, NJ |
11.7 | 2.3 | 04/15 | 4.21 | ||||||||||||
DDR Domestic Retail Fund I (52 assets) |
885.0 | 177.0 | 07/17 | 5.60 | ||||||||||||
Total DDR Domestic Retail Fund I |
$ | 965.2 | $ | 193.0 | ||||||||||||
Coventry II |
||||||||||||||||
Bloomfield Park, Bloomfield Hills, MI |
$ | 39.6 | (2) | $ | | 12/08 | Prime + 300 | |||||||||
Fairplain Plaza, Benton Harbor, MI |
15.6 | 3.1 | 05/11 | LIBOR + 300 | ||||||||||||
Totem Lake Mall, Kirkland, WA |
27.8 | 5.6 | 05/11 | LIBOR + 300 | ||||||||||||
Westover Marketplace, San Antonio, TX |
20.5 | (3) | 4.1 | 11/11 | LIBOR + 350 | |||||||||||
Watters Creek, Allen, TX |
115.9 | (3) | 23.2 | 02/11 | LIBOR + 300 | |||||||||||
Watters Creek, Allen, TX |
25.4 | (3) | 5.1 | 02/11 | LIBOR + 600 | |||||||||||
Coventry II DDR SM (38 assets) |
63.8 | (2) | 12.8 | 09/12 | LIBOR + 225 | |||||||||||
Coventry II DDR SM |
32.5 | (2) | 6.5 | 09/12 | LIBOR + 225 | |||||||||||
Buena Park, Buena Park, CA |
61.0 | 12.2 | 11/12 | 7.25 | ||||||||||||
Marley Creek Square, Orland Park, IL |
10.7 | (2) | 1.1 | 12/12 | LIBOR + 125 | |||||||||||
Christown Spectrum Mall, Phoenix, AZ |
46.0 | (3) | 9.2 | 11/13 | LIBOR + 343 | |||||||||||
Christown Spectrum Mall, Phoenix, AZ |
19.0 | (3) | 3.8 | 11/13 | LIBOR + 1000 | |||||||||||
Tri-County Mall, Cincinnati, OH |
10.2 | (2) | 2.0 | 02/15 | 10.30 | |||||||||||
Tri-County Mall, Cincinnati, OH |
151.0 | (2) | 30.2 | 02/15 | 5.66 | |||||||||||
Total Coventry II |
$ | 639.0 | $ | 118.8 |
43
Loan | DDR | Final Maturity | Interest | |||||||||||||
Balance | Proportionate Share | Date (1) | Rate | |||||||||||||
DDR SAU Retail Fund, LLC |
||||||||||||||||
Lewandowski Commons, Lyndhurst, NJ |
$ | 12.5 | $ | 2.5 | 03/12 | 5.77 | ||||||||||
South Square, Durham, NC |
12.6 | 2.5 | 10/12 | 5.06 | ||||||||||||
Shoppes at Wendover II, Greensboro, NC |
14.4 | 2.9 | 10/12 | 5.06 | ||||||||||||
North Hampton Market (Phase I & II), Taylors, SC |
10.5 | 2.1 | 10/12 | 5.08 | ||||||||||||
Oakland Market Place, Oakland, TN |
3.6 | 0.7 | 10/12 | 5.04 | ||||||||||||
Crossroads Square, Morristown, TN |
4.9 | 1.0 | 12/12 | 5.31 | ||||||||||||
Cascade Corners, Atlanta, GA |
4.0 | 0.8 | 12/12 | 5.42 | ||||||||||||
Hilander Village, Roscoe, IL |
9.4 | 1.9 | 12/12 | 5.41 | ||||||||||||
Glenlake Plaza, Indianapolis, IN |
8.2 | 1.6 | 12/12 | 5.44 | ||||||||||||
Broadmoor Plaza, South Bend, IN |
11.0 | 2.2 | 12/12 | 5.44 | ||||||||||||
Milan Plaza, Milan, MI |
2.2 | 0.4 | 12/12 | 5.49 | ||||||||||||
West Towne Commons, Jackson, TN |
4.8 | 1.0 | 12/12 | 5.44 | ||||||||||||
American Way, Memphis, TN |
6.7 | 1.3 | 12/12 | 5.44 | ||||||||||||
Kroger Junction, Pasadena, TX |
3.8 | 0.8 | 12/12 | 5.44 | ||||||||||||
Kroger Plaza, Virginia Beach, VA |
1.8 | 0.4 | 12/12 | 5.44 | ||||||||||||
Willowbrook Commons, Nashville, TN |
7.0 | 1.4 | 03/13 | 5.41 | ||||||||||||
Harper Hill Commons, Winston Salem, NC |
10.4 | 2.1 | 04/13 | 5.79 | ||||||||||||
The Point, Greenville, SC |
15.8 | 3.2 | 04/13 | 5.64 | ||||||||||||
Plaza at Carolina Forest, Myrtle Beach, SC |
14.2 | 2.8 | 05/13 | 5.97 | ||||||||||||
Alexander Pointe, Salisbury, NC |
5.1 | 1.0 | 08/13 | 5.92 | ||||||||||||
Patterson Place, Durham, NC |
20.3 | 4.1 | 12/13 | 5.67 | ||||||||||||
Total DDR SAU Retail Fund LLC |
$ | 183.1 | $ | 36.6 | ||||||||||||
Sonae Sierra Brasil BV Sarl |
||||||||||||||||
Campo Limpo Shopping, Brazil |
$ | 0.1 | $ | 0.0 | 06/11 | TJLP+ 250 | ||||||||||
Sonae Sierra Brasil Limitadas, Brazil |
12.2 | 4.1 | 10/15 | CDI + 285 | ||||||||||||
Shopping Metropole, Brazil |
16.4 | 5.5 | 10/16 | CDI + 330 | ||||||||||||
Manaura Shopping, Brazil |
68.3 | 22.7 | 12/20 | 8.50 | ||||||||||||
Patio Uberlandia, Brazil |
20.2 | 6.7 | 10/25 | TR + 1130 | ||||||||||||
Total Sonae Sierra Brasil BV Sarl |
$ | 117.2 | $ | 39.0 | ||||||||||||
Sun Center Limited, Columbus, OH |
$ | 11.4 | (4) | $ | 9.1 | 04/11 | 8.48 | |||||||||
Sun Center Limited, Columbus, OH |
5.7 | (4) | 4.5 | 05/11 | 5.42 | |||||||||||
RO & SW Realty LLC (11 assets) |
22.3 | 5.6 | 06/11 | 5.96 | ||||||||||||
RVIP IIIB, Deer Park, IL |
60.0 | 15.5 | 10/11 | 5.59 | ||||||||||||
DDRA Ahwatukee Foothills LLC, Phoenix, AZ |
107.5 | 53.8 | 08/12 | 5.30 | ||||||||||||
DDRA Arrowhead Crossing LLC, Phoenix, AZ |
47.6 | 23.8 | 08/12 | 5.30 | ||||||||||||
DDRA Tanasbourne Town Center LLC |
57.5 | 28.8 | 08/12 | 5.30 | ||||||||||||
DDRA Eagan Promenade LLC |
35.7 | 17.9 | 08/12 | 5.30 | ||||||||||||
Jefferson County Plaza LLC, Arnold, MO |
3.5 | 1.8 | 08/12 | LIBOR + 200 | ||||||||||||
DDR MDT PS, LLC (7 assets) |
86.0 | | 07/13 | 6.00 | ||||||||||||
DDR Markaz II (13 assets) |
150.5 | 30.1 | 11/14 | 5.15 | ||||||||||||
TRT DDR Holdings I LLC (3 assets) |
110.0 | 11.0 | 05/17 | 5.51 |
44
Joint Venture Debt Detail (continued) | ||||||||||||||||
(In Millions) | ||||||||||||||||
Loan | DDR | Final Maturity | Interest | |||||||||||||
Balance | Proportionate Share | Date (1) | Rate | |||||||||||||
Lennox Town Center Limited, Columbus, OH |
1.0 | 0.5 | 06/17 | 6.44 | ||||||||||||
Lennox Town Center Limited, Columbus, OH |
26.0 | 13.0 | 06/17 | 5.64 | ||||||||||||
Cole DDR MT Independence, Independence, MO |
34.1 | 5.0 | 01/19 | 5.95 | ||||||||||||
Total |
$ | 3,884.3 | $ | 790.8 | ||||||||||||
Wtd. Avg. | Wtd. Avg. | |||||||||||||||
Total Joint Venture Debt: | Maturity | Interest Rate | ||||||||||||||
Fixed Rate |
$ | 3,237.1 | $ | 671.7 | 3.7 years | 5.49 | % | |||||||||
Variable Rate |
647.2 | 119.1 | 2.0 years | 4.68 | % | |||||||||||
$ | 3,884.3 | $ | 790.8 | 3.4 years | 5.37 | % | ||||||||||
Notional Amount | Underlying Debt Hedged | Rate Hedged | Capped Rate | Termination Date | ||||||||||||||||
Interest Rate Cap |
$ | 76.1 | Coventry II DDR SM | 1 mo. LIBOR | 3.00 | % | September 1, 2012 | |||||||||||||
Interest Rate Cap |
$ | 65.0 | Coventry II Christown Spectrum Mall | 1 mo. LIBOR | 2.850 | % | November 22, 2013 |
(1) | Assumes borrower extension options are exercised. | |
(2) | Includes approximately $307.7 million of non-recourse debt of which the Companys proportionate share is $52.6 million of debt associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income. | |
(3) | The following loans have floor interest rates: |
Loan | Floor | |
Christown Spectrum Mall, Phoenix, AZ
|
1 month LIBOR of 0.2563% | |
Westover Marketplace, San Antonio, TX
|
1 month LIBOR of 1.50% | |
Watters Creek, Allen, TX
|
1 month LIBOR of 1.50% |
(4) | Sun Center Limited loans were refinanced on April 15, 2011 for an aggregate balance of $23.75 million at 5.99% and maturing in April 2021. |
45
Corporate Headquarters | Investor Relations | |||||
3300 Enterprise Parkway | Kate Deck | |||||
Beachwood, Ohio 44122 | Toll Free: (877) 225-5337 | |||||
Main: (216) 755-5500 | Direct: (216) 755-6408 | |||||
Website: www.ddr.com | Email: kdeck@ddr.com | |||||
Equity Research Coverage | ||||||
Banc of America / Merrill Lynch | ||||||
Craig Schmidt | craig.schmidt@baml.com | (646) 855-3640 | ||||
Lindsay Schroll | lindsay.schroll@baml.com | (646) 855-1829 | ||||
Citigroup | ||||||
Michael Bilerman | michael.bilerman@citi.com | (212) 816-1383 | ||||
Quentin Velleley | quentin.velleley@citi.com | (212) 816-6981 | ||||
Cowen & Company | ||||||
Jim Sullivan | james.sullivan@cowen.com | (646) 562-1380 | ||||
Mike Gorman | michael.gorman@cowen.com | (646) 562-1381 | ||||
Deutsche Bank | ||||||
John Perry | john.perry@db.com | (212) 250-4912 | ||||
Vincent Chao | vincent.chao@db.com | (212) 250-6799 | ||||
DISCERN, Inc. | ||||||
Dave Wigginton | dwigginton@discern.com | (646) 863-4177 | ||||
FBR Capital Markets | ||||||
Sri Nagarajan | snagarajan@fbr.com | (646) 885-5429 | ||||
Evan Smith | esmith@fbr.com | (646) 885-5431 | ||||
Goldman Sachs | ||||||
Jay Habermann | jonathan.habermann@gs.com | (917) 343-4260 | ||||
Ji Young Kim | jiyoung.kim@gs.com | (212) 902-4736 | ||||
Green Street Advisors | ||||||
Laura Clark | lclark@greenst.com | (949) 640-8780 | ||||
Cedrik Lachance | clachance@greenstreetadvisors.com | (949) 640-8780 | ||||
Hilliard Lyons | ||||||
Carol Kemple | ckemple@hilliard.com | (502) 588-1142 | ||||
Jefferies and Company | ||||||
Tayo Okusanya | tokusanya@jefferies.com | (212) 336-7076 | ||||
J.P. Morgan | ||||||
Michael Mueller | michael.w.mueller@jpmorgan.com | (212) 622-6689 | ||||
Macquarie | ||||||
Ki Bin Kim | kibin.kim@macquarie.com | (212) 231-6386 | ||||
RBC Capital Markets | ||||||
Rich Moore | rich.moore@rbccm.com | (440) 715-2646 | ||||
Wes Golladay | wes.golladay@rbccm.com | (440) 715-2650 | ||||
Sandler ONeill | ||||||
Alex Goldfarb | agoldfarb@sandleroneill.com | (212) 466-7937 | ||||
James Milam | jmilam@sandleroneill.com | (212) 466-8066 | ||||
UBS | ||||||
Ross Nussbaum | ross.nussbaum@ubs.com | (212) 713-2484 | ||||
Christy McElroy | christy.mcelroy@ubs.com | (203) 719-7831 | ||||
Wells Fargo | ||||||
Jeff Donnelly | jeff.donnelly@wachovia.com | (617) 603-4262 | ||||
Robert Laquaglia | robert.laquaglia@wachovia.com | (617) 603-4280 | ||||
Fixed Income Research Coverage | ||||||
Citigroup | ||||||
Tom Cook | thomas.n.cook@citigroup.com | (212) 723-1112 | ||||
J.P. Morgan | ||||||
Mark Streeter | mark.streeter@jpmorgan.com | (212) 834-5086 | ||||
RBC Capital Markets | ||||||
Seth Levine | seth.levine@rbccm.com | (212) 618-3523 | ||||
Wells Fargo | ||||||
Thierry Perrein | thierry.perrein@wachovia.com | (704) 715-8455 |
46
J%K8AX'&:TZ9N2.A$RDPCA0#&BH``+0XP4C
M%4G)9QD2(XBLI":5M8)%2$$%;^K#&T&PR5(BZY(7R:0I5YG&7BV.`Q^P00F"
M<#9104.0K%PE*BVBRER:D@/06`0T1H""%L31E\CTU2XKTLMD4M)L_X@`"U)P
M,V=: )?C9W<#0YP-0'1]`!QX5G*B!T],0+7?8/;T2(1;.'`]&'
MH/@L`+,X];,J87.+R@(\OE-6PJ0%<3``D`0!C5A57?-\_\",%%2)8W2)OC@O
M;[0"*6`C3G!+T^AG,[,N#;`-I^AB7+B"E79BPP.-=B2-VY@NT.`)D+0`BZ`%
MG[B.O>*,^)4QB[!@0$@$?,,!>+`,US9JK$.+`F&+]%@LMY2/"C`"1"6+;W@^
M'`"0>*!=X>!>*-:09VA]'*`MX5",
MQS@`1\! 81C$$=U(&K9BJP!FL=&8] \04JOQ580!!`,
M8`2,,0@'O`<-$$"C#Q!`00MT-.`0BWC$)"ZQ6CFP"!4HP)K?*V_Q&"Q 4^O)MV]5%W;XAHR"^>:TU_NT__]=4W;Y+`/=*C
M>*MU6I(`W *E
MQ1@>2)$$J77/$7Q`F4C$%2U`/#+.AS$3'4X)_BQ'@B0F'08F17)`Q$@"!,3!
M$BK3%?;E3&:>H*FC^!5(*?&6)QQ(F0!(6?2!1[A=E-C2`N3*2!A$MS7$IQU0
M`]7=9WI?:+J;3=YD9JQ5,RQ`-&Z'1-S(_SCV5C.$%JL0B3(H``N`2]7@S2(L
M`/TH0%$]QEWR9I_H) 4$G7=0E%TD6"8=0?#`S3]M]X8GR9MPT"$T,0,$P"ZP@@4PPT(3-XJG
M>%2`2ZK,L%VT72_/U3PN`?_]UFEHF"35M@"/]XTF]6L9;H7LYLF^^%&".4J8
MT&N"-`1)6'FW\$(S;$,L-$` /'T&&%.D163($.Z1(@59,V`I>"V'&E#F3
M9DV;-W'FU+F39\^!*RAQ.,+"!@054OXIT[(2II0%+!3$VB;,9U6K5[%FU;J5
M:U>O,)?]@P;-R9(P&;9L`?5B9%NW;^%J+'D2FI9B8SD\_+J7;U^_?Z^NH,IK
M!0<00R6EB,.AL)0ZB\2N2'A7R_\(".$.;9,,F'-GSY]!AZ[*BS`O:)2T:+J#
MHU&>`B]`Q94]>W;),#L&%A.]FW=OWPB%02,LN%B)$30ZJ'#Y[R5I@2\-"J9:
M3`$1+=!_9]>^G7OW@KSP:-G6;U$4`3@R(F-+FWW[D;9Q>Y<_GWY.JBN*A?N`
M0D&);4Z"J$F8X.)(S*'Z$$Q0P05M*L:)?D"H@@Q66"G#O0LQ_`@^!CGLT#?G
M_A&&@SY:2*&Z):Y;03B:3.-@"10^",[#&6FL<;?FA.&%@TNJ`.,>"YAA!:,,
MB 8&99,H`R2%DRB@C
MF5(<*@@T_XHT\D@DDU1R22:Q>R$V!XXJ(!IP:"F@FBG`(0:4X'H"Y9WO=.BE
M,U"6<^"SC:1S")07>'@`G3R&?(<46FJB4P0NV2SO@6ZXS*,`FVBA!YP)O)$O
M.%#6(.>!3_)LTC6IJ-)P4DHKS6J%1;30`H0X1D!AB14XL'144L52,#!H^H@%
M12DHN006+QB@`HP?BJC1`LH>U7577GOU]=?^'(+RSQ>^^06=%[#\A1XA<0AN
MEPH*28<`S@HPTQKLJL'H,R[M(66>>CA3[@%M0(&$SB?\_SE*(VD>\&$CSLZE
MA1L`'IAGGP*$<`D4!Q[@85U@38LTP%(+-MC4%83AH!@B:"CA'VB*.7AB@WEI
M@`-**('E#0;2N"&8.S*PP()DLK%@"U92SC5@EEMV^66853O4S02(<6&W;X*[
M93E:II@G@5/B?$&<0GKI$I1/"M'AF`HNH*::=`K!!IMYU,GCG5\JB$:&7II(
MH)1$Z:1#7(W>>0"8*;!!A8!JT+6F%U*>>>&9)O`!8((*A'@ASIB?&IABP`$_
M*ZU%EF!AA#C42DN8P!OO2AFZ5E!F&04I3)AQ9>)J`!I#5'C#Q3_0".8$(43(
MPP)6_"EELE*8`1L9A_J6?7;::__?M2!O*@`/E?-N`64\8BZX8)X+@.:R@">F
ML*AS#1+TNQ\*?1FYQ;2S3A5/2AJ.R,+AZ%C("=R(U")?0!Y_=:.`2F0A,$:R90EV/9?
MX+A95TA?'-`'*4`#2\`"$)!-`VF1%YD6PN`$@*0!Z(?!
M:)F@Z1//:I*X5%&C+9!A10#`($L:ZN2L08;&@!
MA+=[CUY9)P[9X8@W"\"!E;)QUUUWWJ5O&,2W@PNB!19H8*&%%5S5@H/,X?;I
M)2F/`$&+160.7W\SLU6FI08B@`EXM/^K`!8H1>2\E\#T'"L^^ZM9:4#POG^4
M0`$V&,`"5J2,I#BK)[PH!@A&H(`%'$\@^7/@"3VT@FUH80QCP`,>XC",(K`"
M2&S1E`)QZ`_PH5!
#`GV8%@1(L`$!=@88*+*,;O?"0B1[RH!-JT0(%#O9@4`*3E#!`$8@"12DH`4+<(QGE#$[$`S/>6-3%PT@L`"2S`:#(`QA
MBU9`"4K$00(YZ($;IF6!;MEI@#!<%2B&L)124"!)0RA%^90@I291SG),X`(;
M5`$*-YB"#?&1#Q?D@`A0E,D"I:##.;[$AW-`(H!P2E4,JU/`W`AC)'6H`X3J
MH`5H%(,#GXG,9%``@0^HP#/G0E=!ZK"(D91+A)>*&KJ$XX04=8!AZ!H)'@=)
M2(X$01EA/-
=L/
M6I`2WQ`,:]!"TP(X-X&1_#S20?$"]D$(`OUHR6LO!O$8+3`"1`!E!A'1%P'"
M>2L%BA`'R/P':!#(U:`QB4?20JT@)NT&H9#23!P\+]4!]/8/GY%,-%T1*T"K
MCY"QRRP"K&"BM(0J0]W5U('-6(G4R@!$;B%/,",`D@=$9(H'$$]GZL6
M7$FU)CQ23,U4(KV2>A`"(>L,(8'2/!`!.M@,H9FA)=*3`C"*`.V,;@(8Q`K!
M::"##,@^41B'.\B"'PC_AF`(`#```PP(`P1(@S2`@CZ]`@:H`C6H`BN(@25X
MUB6(`VF=UB-8`!6P5FR]5FW-5F[=UFN=5FGE4FB-@5A25FW4A"NX`@F``F(-
M@S#``#!`@P#(@1RHA"S(@CLH`GBXAQ[(`&Z8A@U,S_0,B8HJ`S8I!?)$V/0<
MQ&1"/0Y\)DV-6(EUQUV8`EI(@`O`AUW0QPJ8!P#(DWGP`5!@A7$`AM)\!^+1
MA^'I!A^@A6CXD@HH,'C`J6L(2_W:MJ>83VDZ!4BHAC60@7K8!"P@`**-A@,X
MVA,0AQ^H!*9EVF`@`ZB-6JF=6JJEVF!HVJ8]`:0]@&@@VB(0A7JHAWO8!9^%
M_P0/^Q,BC$^E$-B!=1+S+-"E$-B)G5NZ-41H\8!=\(%\L`\`6;&@=G@0?6
M$@&1`(=/P(%V.``#@*YHN(=QT`=\>((+^`3.<($$J``2X$43;"0]884MV`*'
M_=QJ21F9V@]F.%W435W575W4Y;DDY8PV*P-*]3FS!-T=X::ZS5W=W=W2>`':
M.X8?TP$"D`9]$()["*H\Z(5C`(:,)`!P```<>H$-F``'"-#DG0`/J(!Z*`AZ
M,"E\N(<37),_.9Y*%<24^;E>0E_:15_V;5_WM2_T;01T+,N149G\=)W355+Y
M@%O>[5__G=A=P`9:P`=4>%D?^+<+J%YQ``9R``9:*/]].I5","&"?1^S5O';T(T6O0R`DC0[<$[
M?Y\27'M`KH*'3Q\']O00;1RZ9TY177BG@X0!6AM`