Investments in and Advances To Joint Ventures (Tables)

6 Months Ended

Jun. 30, 2011

Equity Investments in Joint Ventures (Tables) [Abstract]

Condensed Combined Balance Sheets of unconsolidated joint venture investments

	June 30, 2011			December 31, 2010
Condensed Combined Balance Sheets
Land	$	1,553,101		$	1,566,682
Buildings		4,747,856			4,783,841
Fixtures and tenant improvements		162,927			154,292
		6,463,884			6,504,815
Less: Accumulated depreciation		(779,377	)		(726,291	)
		5,684,507			5,778,524
Land held for development and construction in progress		242,917			174,237
Real estate, net		5,927,424			5,952,761
Receivables, net		110,332			111,569
Leasehold interests		9,716			10,296
Other assets		572,537			303,826
	$	6,620,009		$	6,378,452
Mortgage debt	$	3,895,393		$	3,940,597
Notes and accrued interest payable to DDR		95,113			87,282
Other liabilities		220,792			186,333
		4,211,298			4,214,212
Accumulated equity		2,408,711			2,164,240
	$	6,620,009		$	6,378,452
Company’s share of accumulated equity	$	496,369		$	480,200

Condensed Combined Statements of Operations of unconsolidated joint venture investments

	Three-Month Periods						Six-Month Periods
	Ended June 30,						Ended June 30,
	2011			2010			2011			2010
Condensed Combined Statements of Operations
Revenues from operations	$	178,337		$	163,010		$	349,251		$	325,587
Operating expenses		65,667			67,988			128,124			130,972
Depreciation and amortization		45,117			46,594			92,549			92,174
Interest expense		56,641			58,878			114,005			116,730
		167,425			173,460			334,678			339,876
Income (loss) before tax expense and discontinued operations		10,912			(10,450	)		14,573			(14,289	)
Income tax expense (primarily Sonae Sierra Brasil), net		(11,386	)		(5,035	)		(17,530	)		(9,833	)
Loss from continuing operations		(474	)		(15,485	)		(2,957	)		(24,122	)
Discontinued operations:
Income (loss) from discontinued operations		110			(12,765	)		(471	)		(12,227	)
Gain on debt forgiveness (A)		2,976			—			2,976			—
Gain (loss) on disposition of real estate, net of tax (B)		22,756			(3,212	)		21,893			(11,963	)
Gain (loss) before gain on disposition of real estate, net		25,368			(31,462	)		21,441			(48,312	)
Gain on disposition of real estate, net		—			17			—			17
Net income (loss)	$	25,368		$	(31,445	)	$	21,441		$	(48,295	)
Company’s share of equity in net income (loss) of joint ventures (C)	$	16,532		$	(1,824	)	$	20,439		$	(164	)

(A)	Gain on debt forgiveness is related to one property owned by an unconsolidated joint venture that was transferred to the lender pursuant to a consensual foreclosure proceeding. The operations of the asset have been reclassified as discontinued operations in the combined condensed statement of operations presented.
(B)	For the six months ended June 30, 2011, gain on disposition of discontinued operations includes the sale of three properties by three of the Company’s unconsolidated joint ventures, of which one was sold in the second quarter of 2011. The Company’s proportionate share of the aggregate gain for the assets sold for the three- and six-month periods ended June 30, 2011 was approximately $12.6 million and $10.7 million, respectively.
	For the six months ended June 30, 2010, loss on disposition of discontinued operations includes the sale of 24 properties by three separate unconsolidated joint ventures, of which eight were sold during the second quarter of 2010. In the fourth quarter of 2009, these joint ventures recorded impairment charges aggregating $170.9 million related to certain of these asset sales. The Company’s proportionate share of the loss on sales approximated $1.3 million for the six months ended June 30, 2010.
(C)	The difference between the Company’s share of net income (loss), as reported above, and the amounts included in the condensed consolidated statements of operations is attributable to the amortization of basis differentials, deferred gains and differences in gain (loss) on sale of certain assets due to the basis differentials and other than temporary impairment charges. The Company is not recording income or loss from those investments in which its investment basis is zero and the Company does not have the obligation or intent to fund any additional capital. Adjustments to the Company’s share of joint venture net income (loss) for these items are reflected as follows (in millions):

Adjustments to Company's share of joint venture net loss

	Three-Month Periods				Six-Month Periods
	Ended June 30,				Ended June 30,
	2011		2010		2011			2010
Income (expense), net	$	—	$	1.2	$	(1.9	)	$	1.2

Investments in and advances to joint ventures

	June 30,			December 31,
	2011			2010
Company’s share of accumulated equity	$	496.4		$	480.2
Basis differentials (A)		(172.9	)		(147.5	)
Deferred development fees, net of portion relating to the Company’s interest		(3.4	)		(3.4	)
Notes receivable from investments		0.4			0.6
Notes and accrued interest payable to DDR (B)		95.1			87.3
Investments in and advances to joint ventures	$	415.6		$	417.2

(A) This amount represents the aggregate difference between the Company’s historical cost basis and the equity basis reflected at the joint venture level. Basis differentials recorded upon transfer of assets are primarily associated with assets previously owned by the Company that have been transferred into an unconsolidated joint venture at fair value. Other basis differentials occur primarily when the Company has purchased interests in existing unconsolidated joint ventures at fair market values, which differ from its proportionate share of the historical net assets of the unconsolidated joint ventures. In addition, certain acquisition, transaction and other costs, including capitalized interest, reserves on notes receivable and impairments of the Company’s investments that were other than temporary may not be reflected in the net assets at the joint venture level. Certain basis differentials indicated above are amortized over the life of the related assets.

(B) The Company has made advances to several joint ventures that bear annual interest at rates ranging from 10.5% to 12.0%. The Company advanced financing of $66.9 million, which includes accrued interest of $8.8 million, to one of the Coventry II Fund joint ventures, Coventry II DDR Bloomfield, related to a development project in Bloomfield Hills, Michigan (the “Bloomfield Loan”). This loan accrues interest at a base rate of the greater of LIBOR plus 700 basis points or 12% and a default rate of 16% and has a stated maturity of July 2011. This loan is in default and was fully reserved by the Company in 2008. During the three-month period ended June 30, 2011, the Company recorded a $1.6 million reserve associated with a $4.3 million construction loan advanced to a 50% owned joint venture. The impairment was driven by the recent deterioration in value of the real estate collateral supporting the note. The stated terms are payable on demand from available cash flow from the property after debt service on the first mortgage. The reserve is classified as an impairment of joint venture investments in the condensed consolidated statement of operations for the six-month period ended June 30, 2011.

Service fees and income earned by the Company's unconsolidated joint ventures

	Three-Month Periods				Six-Month Periods
	Ended June 30,				Ended June 30,
	2011		2010		2011		2010
Management and other fees	$	7.3	$	7.7	$	14.7	$	16.9
Financing and other fees		0.3		0.2		0.3		0.2
Development fees and leasing commissions		1.9		2.0		3.7		3.7
Interest income		—		0.1		0.1		0.2