EX-99.2

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Developers Diversified Realty Corporation considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause the results of the Company to differ materially from those indicated by such forward-looking statements, including among other factors, local conditions such as oversupply of space or a reduction in demand for real estate in the area, competition from other available space, dependence on rental income from real property, the loss of a major tenant or inability to enter into definitive agreements with regard to our financing arrangements or our failure to satisfy conditions to the completion of these arrangements. For more details on the risk factors, please refer to the Company’s Form on 10-K as of December 31, 2006.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

TABLE OF CONTENTS


Section			_Tab

Earnings Release & Financial Statements				1.0

Financial Summary				2.0
	•	Financial Highlights		2.1
	•	Market Capitalization and Financial Ratios		2.2
	•	Market Capitalization Summary		2.3
	•	Significant Accounting Policies		2.4
	•	Other Real Estate Information		2.5
	•	Reconciliation of Non-GAAP Financial Measures		2.6

Joint Venture Financial Summary				3.0
	•	Joint Venture Investment Summary		3.1
	•	Joint Venture Combining Financial Statements		3.2

Investment Summary				4.0
	•	Capital Transactions		4.1
	•	Acquisitions		4.2
	•	Dispositions		4.3
	•	Development Projects		4.4
	•	Development Delivery and Funding Schedule		4.5
	•	Expansion and Redevelopment Projects		4.6

Portfolio Summary				5.0

Debt Summary				6.0
	•	Consolidated Debt		6.1
	•	Joint Venture Debt		6.2
	•	Consolidated and Joint Venture Debt Payment and Maturities
				6.3

Investor Contact Information				7.0

Property List available online at www.ddr.com under Investor Relations

DEVELOPERS DIVERSIFIED REALTY CORPORATION

For Immediate Release:


Contact:		Scott A. Wolstein Chairman and Chief Executive Officer 216-755-5500		Michelle M. Dawson Vice President of Investor Relations 216-755-5455

DEVELOPERS DIVERSIFIED REALTY REPORTS AN INCREASE OF 14.7%
IN DILUTED FFO PER SHARE FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007

CLEVELAND, OHIO, October 25, 2007 - Developers Diversified Realty Corporation (NYSE: DDR), the nation’s leading owner, manager and developer of market-dominant community centers, today reported operating results for the third quarter ended September 30, 2007.

	•		Funds From Operations (“FFO”) per diluted share increased 14.7% to $2.97 and net income per diluted share increased 16.1% to $1.59 for the nine months ended September 30, 2007, as compared to the prior year. Excluding transactional activity relating to merchant building and land sale gains and joint venture promoted income aggregating $73.3 million and $57.6 million in 2007 and 2006, respectively, diluted FFO per share increased approximately 14.5% in 2007 as compared to 2006.

	•		FFO per diluted share decreased 3.6% to $0.80 and net income per diluted share decreased 42.2% to $0.26 for the three month period ended September 30, 2007, as compared to the prior year. Excluding transactional activity relating to merchant building gains, land sale gains and joint venture promoted income aggregating $4.2 million and $16.8 million in 2007 and 2006, respectively, diluted FFO per share increased approximately 12.8% in 2007 as compared to 2006.

	•		Executed leases during the third quarter totaled approximately 2.5 million square feet, including 179 new leases and 299 renewals.

	•		On a cash basis, base rental rates increased 41.8% on new leases, 7.4% on renewals and 11.3% overall.

	•		Core portfolio leased percentage at September 30, 2007 was 95.9%.

	•		Same store net operating income (“NOI”) for the nine-month period increased 2.3% over the prior-year comparable period.

Scott Wolstein, DDR’s Chairman and Chief Executive Officer stated, “We are pleased to announce this quarter’s financial results, which reflect the consistent growth of our core portfolio and the implementation of our investment strategy. Our leasing team completed a record quarter in terms of volume and rental spreads on new leases, and our development team continued to identify and execute on attractive investment opportunities. Furthermore, we have proactively taken steps to improve the quality of our portfolio through disposition, development and acquisition and allocate our capital to where we expect the best returns. These actions have had the complementary effect of strengthening our balance sheet and enhancing our liquidity position.”

Financial Results:
For the three months ended September 30, 2007, FFO, a widely accepted measure of a Real Estate Investment Trust (“REIT”) performance, on a per share basis was $0.80 (diluted and basic) as compared to $0.83 (diluted and basic) for the same period in the previous year. FFO available to common shareholders was $99.5 million, as compared to $91.7 million for the three months ended September 30, 2007 and 2006, respectively, an increase of 8.5%. Net income available to common shareholders was $32.7 million or $0.26 per share (diluted) and $0.27 per share (basic) for the three months ended September 30, 2007, as compared to $49.0 million, or $0.45 per share (diluted and basic) for the prior-year comparable period. The decrease in net income and FFO for the three months ended September 30, 2007, is primarily related to a reduction of $12.6 million, or $0.11 per share in 2006, in transactional income relating to merchant building and land sale gains, including gains and promoted income from joint ventures, offset by increases in same store net operating income and operating results from the merger with Inland Retail Real Estate Trust, Inc. (“IRRETI”).

For the nine months ended September 30, 2007, FFO, on a per share basis was $2.97 (diluted) and $2.98 (basic) as compared to $2.59 (diluted) and $2.61 (basic) for the same period in the previous year, an increase of 14.7% on a diluted basis. FFO available to common shareholders was $365.0 million, as compared to $287.7 million for the nine months ended September 30, 2007 and 2006, respectively, an increase of 26.9%. Net income available to common shareholders was $192.9 million or $1.59 per share (diluted) and $1.60 per share (basic) for the nine months ended September 30, 2007, as compared to $149.9 million, or $1.37 per share (diluted and basic) for the prior-year comparable period. The increase in net income for the nine months ended September 30, 2007, is primarily related to the merger with IRRETI, the release of certain valuation reserves and an increase in the gain on sale of assets including those recognized through the Company’s merchant building program and promoted income earned from certain joint ventures. These increases were partially offset by a non-cash charge relating to the redemption of preferred shares, certain integration related costs and a charge relating to the departure of the Company’s former President.

FFO is a supplemental non-GAAP financial measurement used as a standard in the real estate industry. Management believes that FFO provides an additional indicator of the financial performance of a REIT. The Company also believes that FFO more appropriately measures the core operations of the Company and provides a benchmark to its peer group. FFO does not represent cash generated from operating activities in accordance with generally accepted accounting principles, is not necessarily indicative of cash available to fund cash needs and should not be considered as an alternative to net income computed in accordance with GAAP as an indicator of the Company’s operating performance or as an alternative to cash flow as a measure of liquidity. FFO is defined and calculated by the Company as net income, adjusted to exclude: (i) preferred dividends, (ii) gains (or losses) from disposition of depreciable real estate property, except for those sold through the Company’s merchant building program, (iii) sales of securities, (iv) extraordinary items, (v) cumulative effect of changes in accounting standards and (vi) certain non-cash items. These non-cash items principally include real property depreciation and amortization of intangibles, equity income from joint ventures and equity income from minority equity investments and adding the Company’s proportionate share of FFO from its unconsolidated joint ventures and minority equity investments, determined on a consistent basis. Other real estate companies may calculate FFO in a different manner. A reconciliation of net income to FFO is presented in the financial highlights section.

Leasing:
The following results from the third quarter ended September 30, 2007, highlight continued strong leasing activity throughout the portfolio:

•

Executed 179 new leases aggregating 941,434 square feet and 299 renewals aggregating 1,574,283 square feet.

	•		On a cash basis, rental rates on new leases increased 41.8% and rental rates on renewals increased 7.4%. Overall, rental rates for new leases and renewals increased 11.3%.

	•		Total portfolio average annualized base rent per occupied square foot as of September 30, 2007 was $12.58, as compared to $11.68 at September 30, 2006.

	•		Core portfolio leased rate was 95.9% as of September 30, 2007 as compared to 96.1% at September 30, 2006.

The Company and its joint ventures (at 100%) estimate total annual recurring leasing capital expenditures to be approximately $24 million ($0.21 psf of owned GLA) in 2007.

Strategic Real Estate Transactions:

Macquarie DDR Trust
In August and September 2007, the Company sold three shopping center properties, aggregating 0.5 million square feet to the Company’s joint venture with Macquarie DDR Trust (ASX: MDT) (“MDT”), an Australian Listed Property Trust sponsored by Macquarie Bank Limited (ASX:MBL), an international investment bank and leading advisor and manager of specialized real estate funds in Australia. The aggregate purchase price for the properties was $49.8 million. The assets were recently acquired by the Company as part of its acquisition of IRRETI and these assets offer redevelopment potential during the next several years. As these assets were recently acquired, the Company did not record a gain on the transaction.

The Company retained a 14.5% ownership interest in the properties, remains responsible for day-to-day operations of the properties and receives ongoing fees for property management, leasing and construction management, and base asset management fees. The Company will also receive a promoted interest above a 10.0% leveraged IRR. The promoted interest will be calculated based on the implied value of the assets at stabilization.

Dispositions:
The Company sold eight shopping center properties in the third quarter of 2007, as part of its portfolio sale in which 52 properties were sold at the end of the second quarter, aggregating 0.9 million square feet for approximately $86.6 million. In the third quarter, the Company recognized a nominal non-FFO gain which was offset by certain additional transaction costs associated with the initial sale at the end of the second quarter. These dispositions represent the remaining assets sold in connection with the transaction announced in the second quarter of 2007.

Common Share Repurchase Program:
During the second quarter of 2007, the Company’s Board of Directors authorized a common share repurchase program. Under the terms of the program, the Company may purchase up to a maximum value of $500 million of its common shares during the next two years. Through October 25, 2007, the Company repurchased 2.2 million of its common shares in open market transactions at an aggregate cost of approximately $105.8 million at a weighted-average price per share of $48.42.

Development (Wholly-Owned and Consolidated Joint Ventures):
The Company currently has the following shopping center projects under construction:

Wholly-Owned and Consolidated Joint Venture Developments
Currently in Progress


					Targeted
			Expected		Substantial
	Total		Gross Cost		Completion
Property	GLA		($Millions)		Date	Description
Ukiah (Mendocino), California		669,406	$	113.5	2009	Community Center
Homestead, Florida		398,759		95.2	2008	Community Center
Miami, Florida		644,999		155.7	2006-2009	Mixed Use
Tampa (Brandon), Florida		370,700		70.7	2009	Community Center
Tampa (Wesley Chapel), Florida		95,408		17.4	2008	Community Center
Atlanta (Douglasville), Georgia		124,200		22.4	2008	Community Center
Boise (Nampa), Idaho		829,975		147.0	2007-2008	Community Center
Chicago (McHenry), Illinois		454,378		74.3	2007	Community Center
Boston, Massachusetts (Seabrook, New Hampshire)		461,825		74.5	2009	Community Center
Elmira (Horseheads), New York		668,619		77.1	2007-2008	Community Center
Raleigh (Apex), North Carolina (Promenade)		87,780		20.2	2008	Community Center
Raleigh (Apex), North Carolina Beaver Creek Crossing, (Phase II)		283,217		52.3	2009	Community Center
San Antonio (Stone Oak), Texas		665,229		93.4	2007	Hybrid Center

Total		5,754,495	$	1,013.7

The Company anticipates commencing construction in 2007 on the following additional shopping centers:

Wholly-Owned and Consolidated Joint Venture Developments
to Commence Construction in 2007


					Targeted
			Expected		Substantial
	Total		Gross Cost		Completion
Property	GLA		($Millions)		Date	Description
Guilford, Connecticut		147,619	$	43.4	2008	Community Center
Atlanta (Union City), Georgia		200,000		47.5	2008	Community Center
Chicago (Grayslake), Illinois		689,799		144.2	2009	Community Center
Gulfport, Mississippi		703,379		91.2	2009	Hybrid Center
Isabela, Puerto Rico		290,085		57.1	2009	Community Center
Austin (Kyle), Texas		778,415		97.2	2009	Community Center
San Antonio (Shertz), Texas		506,639		50.7	2009	Community Center
Toronto (Richmond Hill), Canada		710,000		190.7	2011	Mixed Use

Total		4,025,936	$	722.0

At September 30, 2007, $623.1 million of costs were incurred in relation to the Company’s thirteen development projects under construction and the eight that will commence construction in 2007.

In addition to these developments, the Company has identified several additional development opportunities reflecting an aggregate estimated cost of over $1 billion. While there are no assurances any of these projects will move forward, they provide a source of potential development projects over the next several years. As of September 30, 2007, the projected unleveraged GAAP return, on the Company’s aggregate development and redevelopment pipeline is approximately 10%.

Development (Unconsolidated Joint Ventures):
The Company’s joint ventures have the following shopping center projects under construction. At September 30, 2007, $184.8 million of costs had been incurred in relation to these development projects.

Unconsolidated Joint Venture Developments
Currently in Progress


		DDR's
		Effective			Expected		Targeted
	Joint Venture	Ownership	Total		Gross Cost		Substantial
Property	Partner	Percentage	GLA		($Millions)		Completion Date	Description
Kansas City (Merriam), Kansas	Coventry II	20.0%		280,516	$	71.0	2008	Community Center
Detroit (Bloomfield Hills), Michigan	Coventry II	10.0%		882,197		335.6	2008-2009	Lifestyle Center
Dallas (Allen), Texas	Coventry II	10.0%		831,413		207.5	2008	Lifestyle Center
Manaus, Brazil	Sonae Sierra	47.2%		477,630		95.7	2009	Enclosed Mall

				2,471,756	$	709.8

The Company’s joint venture with Sonae Sierra anticipates commencing construction on a 350,000 square foot enclosed mall in Uberlandia, Brazil, with an estimated gross cost of approximately $70 million.

Redevelopments and Expansions (Wholly-Owned and Consolidated Joint Ventures):
The Company is currently expanding/redeveloping the following shopping centers at a projected aggregate gross cost of approximately $117.4 million. At September 30, 2007, approximately $53.8 million of costs had been incurred in relation to these projects.

Summary of Significant Wholly-Owned and Consolidated Joint Venture
Redevelopments and Expansions Currently in Progress


Property		Description
Miami (Plantation), Florida		Redevelop shopping center to include Kohl’s and additional junior anchors
Chesterfield, Michigan		Construct 25,400 sf of small shop space and retail space
Olean, New York		Wal-Mart expansion and tenant relocation
Fayetteville, North Carolina		Redevelop 18,000 sf of small shop space and construct an outparcel building
Akron (Stow), Ohio		Redevelop former K-Mart space and develop new outparcels
Dayton (Huber Heights), Ohio		Construct 45,000 sf junior anchor

The Company anticipates commencing construction on the following redevelopment and expansion projects in the next year:

Summary of Significant Wholly-Owned and Consolidated Joint Venture Redevelopments and Expansions to
Commence Construction in 2007


Property		Description
Hatillo, Puerto Rico		Construct 21,000 sf of junior anchor space
San Juan (Bayamon), Puerto Rico (Plaza Del Sol)		Construct 144,000 sf of junior anchor space and retail shops
Dallas (McKinney), Texas		Construct 87,757 sf of retail shops and outparcels

Redevelopments and Expansions (Unconsolidated Joint Ventures):
The Company’s joint ventures are currently expanding/redeveloping the following shopping centers at a projected gross cost of $577.1 million, which includes the initial acquisition costs for the Coventry II redevelopment projects. At September 30, 2007, approximately $459.2 million of costs had been incurred in relation to these projects.

Summary of Significant Unconsolidated Joint Venture Redevelopment and
Expansion Projects Currently in Progress


		DDR's
		Effective
	Joint Venture	Ownership
Property	Partner	Percentage			Description
Phoenix, Arizona	Coventry II		20.0	%	Large-scale redevelopment of enclosed mall to open-air format
Buena Park, California	Coventry II		20.0	%	Large-scale redevelopment of enclosed mall to open-air format
Los Angeles (Lancaster), California	Prudential Real Estate Investors		21.0	%	Relocate Wal-Mart and redevelop former Wal-Mart space
Chicago (Deer Park), Illinois	Prudential Real Estate Investors		25.75	%	Retenant former retail shop space with junior anchor and construct 13,500 sf multi-tenant outparcel building
Benton Harbor, Michigan	Coventry II		20.0	%	Construct 89,000 sf of anchor space and retail shops
Kansas City, Missouri	Coventry II		20.0	%	Relocate retail shops and retenant former retail shop space
Cincinnati, Ohio	Coventry II/Thor Equities		18.0	%	Redevelop former JC Penney space

The Company’s joint ventures anticipate commencing expansion/redevelopment projects at the following shopping centers:

Summary of Significant Joint Venture Redevelopment and Expansion Projects
to Commence Construction in 2007


		DDR’s
		Effective
	Joint Venture	Ownership
Property	Partner	Percentage	Description
Seattle (Kirkland), Washington	Coventry II	20.00%	Large-scale redevelopment of shopping center

Sao Paulo (Sao Bernado de	Sonae Sierra	47.20%	Expansion and renovation of the existing
Campo), Brazil			mall to accommodate theater tenant and
			redesign of the food court

Developers Diversified currently owns and manages over 740 retail operating and development properties in 45 states, plus Puerto Rico, Brazil, Russia and Canada, totaling over 160 million square feet. Developers Diversified Realty is a self-administered and self-managed real estate investment trust (REIT) operating as a fully integrated real estate company which acquires, develops, leases and manages shopping centers.

A copy of the Company’s Supplemental Financial/Operational package is available to all interested parties upon request at our corporate office to Michelle M. Dawson, Vice President of Investor Relations, Developers Diversified Realty Corporation, 3300 Enterprise Parkway, Beachwood, OH 44122 or on our Web site which is located at http://www.ddr.com.

Developers Diversified Realty Corporation considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause the results of the Company to differ materially from those indicated by such forward-looking statements, including, among other factors, local conditions such as oversupply of space or a reduction in demand for real estate in the area, competition from other available space, dependence on rental income from real property, the loss of a major tenant, constructing properties or expansions that produce a desired yield on investment or inability to enter into definitive agreements with regard to our financing arrangements or our failure to satisfy conditions to the completion of these arrangements. For more details on the risk factors, please refer to the Company’s Form on 10-K as of December 31, 2006.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)


	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2007			2006			2007			2006
Revenues:
Minimum rents (A)	$	158,868		$	134,937		$	484,317		$	397,542
Percentage and overage rents (A)		1,988			1,583			5,564			5,246
Recoveries from tenants		52,139			43,543			153,873			125,138
Ancillary and other property income		5,129			4,753			14,096			13,471
Management, development and other fee income		13,827			8,366			34,906			21,320
Other (B)		2,110			1,018			13,564			9,226

		234,061			194,200			706,320			571,943


Expenses:
Operating and maintenance		33,270			26,529			95,460			77,941
Real estate taxes		26,772			23,551			82,944			66,446
General and administrative (C)		19,626			14,974			60,304			45,805
Depreciation and amortization		56,565			46,172			163,196			135,194

		136,233			111,226			401,904			325,386


Other income (expense):
Interest income		1,569			1,587			7,751			7,543
Interest expense		(62,524	)		(52,244	)		(196,975	)		(155,312	)
Other (expense) income (D)		(225	)		(203	)		(675	)		464

		(61,180	)		(50,860	)		(189,899	)		(147,305	)


Income before equity in net income of joint ventures, minority equity interests, income tax benefit of taxable REIT subsidiaries and franchise taxes, discontinued operations and gain on disposition of real estate		36,648			32,114			114,517			99,252
Equity in net income of joint ventures (E)		6,003			12,868			33,887			22,956
Minority equity interests (F)		(1,974	)		(2,283	)		(15,689	)		(6,504	)
Income tax (expense) benefit of taxable REIT subsidiaries and franchise taxes (G)		(484	)		330			15,287			2,690

Income from continuing operations		40,193			43,029			148,002			118,394
(Loss) income from discontinued operations (H)		(601	)		5,821			21,541			11,757

Income before gain on disposition of real estate		39,592			48,850			169,543			130,151
Gain on disposition of real estate, net of tax		3,691			13,962			63,713			61,124

Net income	$	43,283		$	62,812		$	233,256		$	191,275

Net income, applicable to common shareholders	$	32,716		$	49,020		$	192,889		$	149,898

Funds From Operations (“FFO”):
Net income applicable to common shareholders	$	32,176		$	49,020		$	192,889		$	149,898
Depreciation and amortization of real estate investments		54,235			47,235			160,819			138,072
Equity in net income of joint ventures (E)		(6,003	)		(12,868	)		(33,887	)		(22,956	)
Joint ventures’ FFO (E)		17,602			13,682			62,475			32,963
Minority equity interests (OP Units) (F)		569			534			1,706			1,601
Loss (gain) on disposition of depreciable real estate, net of tax		430			(5,870	)		(19,013	)		(11,869	)

FFO available to common shareholders		99,549			91,733			364,989			287,709
Preferred dividends		10,567			13,792			40,367			41,377

FFO	$	110,116		$	105,525		$	405,356		$	329,086

Per share data:
Earnings per common share
Basic	$	0.27		$	0.45		$	1.60		$	1.37

Diluted	$	0.26		$	0.45		$	1.59		$	1.37

Dividends Declared	$	0.66		$	0.59		$	1.98		$	1.77

Funds From Operations — Basic (I)	$	0.80		$	0.83		$	2.98		$	2.61

Funds From Operations — Diluted (I)	$	0.80		$	0.83		$	2.97		$	2.59

Basic — average shares outstanding (I)		123,329			109,120			120,910			109,124

Diluted — average shares outstanding (I)		123,727			109,670			121,594			109,714

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)

(A)

Increases in base and percentage rental revenues for the nine-month period ended September 30, 2007, as compared to 2006, aggregated $89.7 million consisting of $6.0 million related to leasing of core portfolio properties (an increase of 1.7% from 2006), $86.1 million from the acquisition of assets and the merger with IRRETI, $4.8 million related to developments and redevelopments and $1.1 million from an increase in occupancy at the business centers. These amounts were offset by a decrease of $8.3 million due to the disposition of properties in 2006 and 2007. Included in the rental revenues for the nine-month periods ended September 30, 2007 and 2006, is approximately $9.4 million and $12.1 million, respectively, of revenue resulting from the recognition of straight-line rents.

(B)

Other income for the three and nine month periods ended September 30, 2007 and 2006 was comprised of the following (in millions):


	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
	2007		2006		2007		2006
Acquisition fees	$	0.1	$	—	$	6.4	$	—
Lease termination fees		1.4		0.9		4.9		7.2
Financings fees		0.1		—		1.5		0.4
Other miscellaneous		0.5		0.1		0.8		1.6

	$	2.1	$	1.0	$	13.6	$	9.2

(C)

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 nine-month periods ended September 30, 2007 and 2006, general and administrative expenses were approximately 4.6% and 5.0%, respectively, of total revenues, including joint venture revenues, respectively. For the nine months ended September 30, 2007, the Company recorded a charge of approximately $4.1 million to general and administrative expense in connection with the former President’s departure from the Company. Excluding this charge, general and administrative expenses were 4.3% of total revenues for the nine months ended September 30, 2007. In addition, the Company incurred certain one time integration costs in connection with the IRRETI acquisition that have aggregated approximately $2.4 million for the nine-month period ended September 30, 2007.

(D)

Other income/expense primarily relates to abandoned acquisition and development project costs. In 2006, the Company received proceeds of approximately $1.3 million from a litigation settlement.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)

(E) The following is a summary of the combined operating results of the Company’s joint ventures:


	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2007			2006			2007			2006
Revenues from operations (a)	$	230,935		$	104,287		$	577,877		$	306,994


Operating expense		81,594			35,074			195,232			101,249
Depreciation and amortization of real estate investments		55,568			19,553			135,207			59,082
Interest expense		80,884			35,885			192,974			93,787

		218,046			90,513			523,413			254,118

Income from operations before tax expense, gain on disposition of real estate and discontinued operations		12,889			13,774			54,464			52,876
Income tax expense		4,545			—			—			—
(Loss) gain on disposition of real estate		(103	)		193			92,987			237
(Loss) income from discontinued operations, net of tax		(323	)		(22	)		(649	)		805
Gain on disposition of discontinued operations, net of tax		1,790			21,460			2,529			19,910

Net income	$	18,798		$	35,405		$	149,331		$	73,828

DDR Ownership interests (b)	$	5,669		$	12,583		$	34,520		$	22,360


FFO from joint ventures are summarized as follows:
Net income	$	18,798		$	35,405		$	149,331		$	73,828
Loss (gain) on disposition of real estate, including discontinued operations		103			(21,418	)		(91,339	)		(21,437	)
Depreciation and amortization of real estate investments		55,702			19,795			135,539			60,510

	$	74,603		$	33,782		$	193,531		$	112,901

DDR Ownership interests (b)	$	17,602		$	13,682		$	62,475		$	32,963

DDR Partnership distributions received, net (c)	$	14,088		$	23,686		$	79,782		$	43,366

	(a)		Revenues for the three-month periods ended September 30, 2007 and 2006 included approximately $2.3 million and $1.4 million, respectively, resulting from the recognition of straight-line rents of which the Company’s proportionate share is $0.3 million and $0.2 million, respectively. Revenues for the nine-month periods ended September 30, 2007 and 2006 included approximately $6.6 million and $3.9 million, respectively, resulting from the recognition of straight-line rents of which the Company’s proportionate share is $1.0 million and $0.7 million, respectively.

	(b)		The Company’s share of joint venture net income decreased by $0.2 million and increased by $0.2 million for the three-month periods ended September 30, 2007 and 2006, respectively. The Company’s share of joint venture net income decreased by $0.6 million and increased by $0.5 million for the nine-month periods ended September 30, 2007 and 2006, respectively. These adjustments reflect basis differences impacting amortization and depreciation and gain on dispositions. During the nine-month period ended September 30, 2007, the Company received $14.3 million of promoted income, of which $13.6 million related to the sale of assets from the DDR Markaz Joint Venture which is included in the Company’s proportionate share of net income and FFO.

			At September 30, 2007 and 2006, the Company owned joint venture interests, excluding consolidated joint ventures, in 273 and 108 shopping center properties, respectively. In addition, at September 30, 2007 and 2006, the Company owned 44 and 51 shopping center sites formerly owned by Service Merchandise, respectively, through its 20% owned joint venture with Coventry II.

	(c)		Distributions may include funds received from asset sales and refinancings in addition to ongoing operating distributions.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)

(F) Minority equity interests are comprised of the following:


	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
	2007		2006		2007		2006
Minority interests	$	1,405	$	1,749	$	4,293	$	4,903
Operating partnership units		569		534		1,706		1,601
Preferred operating partnership units		—		—		9,690		—

	$	1,974	$	2,283	$	15,689	$	6,504

		The preferred operating partnership units were redeemed in June 2007.

(G)		During the first quarter of 2007, the Company released to income approximately $15.0 million of previously established valuation allowances against certain deferred tax assets as management had determined, due to several factors, that it is more likely than not that the deferred tax asset will be realized. The release was primarily due to the Company’s increased use of its taxable REIT subsidiaries relating to its merchant building program.

(H)		The operating results relating to assets classified as discontinued operations are summarized as follows:


	Three-Month Period					Nine-Month Period
	Ended September 30,					Ended September 30,
	2007			2006		2007		2006
Revenues	$	1,345		$	12,306	$	28,060	$	37,211


Expenses:
Operating		1,101			3,453		7,938		9,800
Interest, net		325			3,319		6,801		10,051
Depreciation		210			2,882		5,103		8,772

Total expenses		1,636			9,654		19,842		28,623

Income before (loss) gain on disposition of real estate		(291	)		2,652		8,218		8,588
(Loss) gain on disposition of real estate		(310	)		3,169		13,323		3,169

Net (loss) income	$	(601	)	$	5,821	$	21,541	$	11,757

(I)

For purposes of computing FFO per share (basic), the weighted average shares outstanding were adjusted to reflect the conversion of approximately 0.9 million of Operating Partnership Units (OP Units) outstanding at September 30, 2007 and 2006, into 0.9 million common shares of the Company for both of the three-month periods ended September 30, 2007 and 2006, and 0.9 million and 1.0 million for the nine-month periods ended September 30, 2007 and 2006, respectively, on the weighted average basis. The weighted average diluted shares and OP Units outstanding, for purposes of computing FFO, were approximately 125.1 million and 110.8 million for the three-month periods ended September 30, 2007 and 2006, respectively, and 122.8 and 111.0 million for the nine-month periods ended September 30, 2007 and 2006, respectively.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands)

Selected Balance Sheet Data:


	September 30, 2007		(A)	December 31, 2006		(A)
Assets:
Real estate and rental property:
Land	$	2,083,569		$	1,768,702
Buildings		5,899,244			5,023,665
Fixtures and tenant improvements		236,167			196,275
Construction in progress		583,235			453,493

		8,802,215			7,442,135
Less accumulated depreciation		(973,316	)		(861,266	)

Real estate, net		7,828,899			6,580,869

Cash		49,700			28,378
Investments in and advances to joint ventures		644,318			291,685
Notes receivable		16,778			18,161
Receivables, including straight-line rent, net		204,725			152,161
Assets held for sale		—			5,324
Other assets, net		168,847			103,175

	$	8,913,267		$	7,179,753


Liabilities:
Indebtedness:
Revolving credit facilities	$	625,000		$	297,500
Unsecured debt		2,624,003			2,218,020
Mortgage and other secured debt		1,955,143			1,733,292

		5,204,146			4,248,812
Dividends payable		88,052			71,269
Other liabilities		297,089			241,556

		5,589,287			4,561,637
Minority interests		115,708			121,933
Shareholders’ equity		3,208,272			2,496,183

	$	8,913,267		$	7,179,753

(A)

Amounts include the consolidation of Mervyns, a 50% owned joint venture, which includes $405.8 million of real estate assets at September 30, 2007 and December 31, 2006, $258.5 million of mortgage debt at September 30, 2007 and December 31, 2006, and $75.3 million and $77.6 million of minority interest at September 30, 2007 and December 31, 2006, respectively.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

FINANCIAL HIGHLIGHTS
(In Thousands Except Per Share Information)


	Nine-Month			Nine-Month
	Period Ended			Period Ended
	September 30,			September 30,			Year Ended December 31,
	2007			2006			2006			2005			2004			2003
FUNDS FROM OPERATIONS:
Net Income Applicable to Common Shareholders	$	192,889	(6)	$	149,898		$	198,095		$	227,474		$	219,056		$	189,056	(6)
Depreciation and Amortization of Real Estate Investments	$	160,819		$	138,072		$	185,449		$	169,117		$	130,537		$	93,173
Equity in Net Income From Joint Ventures	$	(33,887	)	$	(22,956	)	$	(30,337	)	$	(34,873	)	$	(40,896	)	$	(52,917	)
Joint Venture Funds From Operations	$	62,475		$	32,963		$	44,473		$	49,302		$	46,209		$	47,942
Operating Partnership Minority Interest Expense	$	1,706		$	1,601		$	2,116		$	2,916		$	2,607		$	1,770
Cumulative Effect of Adoption of a New Accounting Standard	$	0		$	0		$	0		$	0		$	3,001		$	0
Gain on Sales of Real Estate	$	(19,013	)	$	(11,869	)		($21,987	)	$	(58,834	)	$	(68,179	)	$	(67,352	)

FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS	$	364,988		$	287,709		$	377,809		$	355,102		$	292,335		$	211,672
PREFERRED DIVIDENDS	$	40,367	(6)	$	41,377		$	55,169		$	55,169		$	50,706		$	51,204	(6)

FUNDS FROM OPERATIONS	$	405,356		$	329,086		$	432,978		$	410,271		$	343,041		$	262,877


PER SHARE INFORMATION:
Funds From Operations — Diluted	$	2.97		$	2.59		$	3.41		$	3.21		$	2.95		$	2.51
Net Income — Diluted	$	1.60		$	1.37		$	1.81		$	2.08		$	2.24		$	2.27
Cash Dividends	$	1.98		$	1.77		$	2.36		$	2.16		$	1.94		$	1.69

WEIGHTED AVERAGE SHARES AND OPERATING PARTNERSHIP UNITS, FFO		122,795			110,965			110,826			110,700			99,147			84,319

TOTAL MARKET CAPITALIZATION (1)	$	12,671,332		$	10,905,670		$	11,869,415		$	9,781,900		$	8,276,943		$	5,551,748
DEBT TO TOTAL MARKET CAPITALIZATION (1)		41.07	%		37.40	%		35.80	%		39.77	%		32.82	%		37.42	%
DEBT TO TOTAL UNDEPRECIATED ASSETS, INVESTMENTS, CASH & NOTES REC.		54.71	%		53.47	%		54.55	%		52.86	%		45.58	%		48.68	%
DIVIDEND PAYOUT RATIO (1)		66.88	%		67.86	%		68.84	%		66.98	%		67.28	%		66.03	%

GEN. & ADMIN. EXPENSES AS A PERCENTAGE OF TOTAL REVENUES (2)		4.59	%(7)		4.96	%		4.80	%		4.55	%		4.94	%		5.35	%

GENERAL AND ADMINISTRATIVE EXPENSES	$	60,304	(7)	$	45,805		$	60,679		$	54,048		$	47,126		$	40,820

REVENUES:
DDR Revenues	$	734,380		$	609,154		$	824,725		$	748,571		$	605,246		$	478,696
Joint Venture Revenues	$	579,403		$	314,845		$	438,885		$	438,103		$	348,740		$	284,158

TOTAL REVENUES (3)	$	1,313,783		$	923,998		$	1,263,610		$	1,186,675		$	953,987		$	762,853


NET OPERATING INCOME:
DDR Net Operating Income	$	548,066		$	455,012		$	615,007		$	555,291		$	453,501		$	356,348
Joint Venture Net Operating Income	$	383,082		$	210,726		$	288,699		$	280,617		$	228,358		$	184,927

TOTAL NET OPERATING INCOME (4)	$	931,148		$	665,738		$	903,706		$	835,907		$	681,859		$	541,274


REAL ESTATE AT COST:
DDR Real Estate at Cost	$	8,802,215		$	7,421,242		$	7,450,693		$	7,029,337		$	5,603,424		$	3,884,911
Joint Venture Real Estate at Cost	$	8,855,062		$	3,741,595		$	3,939,707		$	3,470,112		$	3,165,335		$	2,275,216

TOTAL REAL ESTATE AT COST (5)	$	17,657,278		$	11,162,837		$	11,390,400		$	10,499,449		$	8,768,759		$	6,160,127


(1)		See Market Capitalization and Financial Ratio section for detail calculation.

(2)		The calculation includes Joint Venture revenues.

(3)		Includes revenues from discontinued operations.

(4)		Includes NOI associated with acquisitions, expansions and developments from completion date of said capital transactions.

(5)		Includes construction in progress (CIP) at September 30, 2007 of $722.4 million (includes $139.2 million of CIP included in Joint Ventures, of which $25.7 million represents the Company’s proportionate share), and at December 31, 2006, 2005, 2004, 2003, CIP aggregated $611.2 million, $386.2 million, $271.0 million and $290.7 million, respectively.

(6)		Amounts were adjusted to include original issuance costs associated with the redemption of preferred stock of $5.4 million for the three-month period ended June 30, 2007 and $10.7 million for the year ended December 31, 2003 pursuant to EITF topic number D-42.

(7)		The 2007 general and administrative expenses include severance charges of $4.1 million. Excluding this charge, general and administrative expenses are approximately 4.3% of total revenue.

Financial Highlights 2.1

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

MARKET CAPITALIZATION & FINANCIAL RATIOS


	Nine-Month
	Period Ended
	September 30,			Year Ended December 31,
	2007			2006			2005			2004			2003
DDR RATIO OF DEBT TO TOTAL MARKET CAP:
Total Debt	$	5,204,146		$	4,248,812		$	3,890,709		$	2,716,426		$	2,077,558
Total Market Capitalization *	$	12,671,332		$	11,869,415		$	9,781,900		$	8,276,943		$	5,551,748

		41.07	%		35.80	%		39.77	%		32.82	%		37.42	%

DDR DEBT TO UNDEPRECIATED REAL ESTATE ASSETS, INVESTMENTS AND NOTES RECEIVABLE		54.71	%		54.55	%		52.86	%		45.58	%		48.68	%

DDR, INCLUDING PROPORTIONATE SHARE OF JV DEBT, TOTAL MARKET CAPITALIZATION:
Total Debt *	$	6,233,438		$	4,774,407		$	4,401,169		$	3,137,184		$	2,446,026
Total Market Capitalization *	$	13,700,624		$	12,395,010		$	10,292,361		$	8,697,701		$	5,920,216

		45.50	%		38.52	%		42.76	%		36.07	%		41.32	%

DDR & JV DEBT TO UNDEPRECIATED REAL ESTATE ASSETS, INVESTMENTS & NOTES RECEIVABLE		59.45	%		57.59	%		55.84	%		49.27	%		53.79	%

INTEREST COVERAGE RATIO:
Interest Expense (1)	$	198,145		$	215,438		$	184,281		$	130,447		$	90,162
FFO Before Interest and Preferred Dividends *	$	603,502		$	648,416		$	594,551		$	473,488		$	353,039

		3.05			3.01			3.23			3.63			3.92

DEBT SERVICE COVERAGE RATIO:
Debt Service * (1)	$	221,049		$	247,464		$	217,434		$	152,927		$	101,890
FFO Before Interest and Preferred Dividends *	$	603,502		$	648,416		$	594,551		$	473,488		$	353,039

		2.73			2.62			2.73			3.10			3.46

FIXED CHARGES (INCLUDING PREFERRED DIVIDENDS) COVERAGE RATIO
Fixed Charges (1)	$	256,011		$	302,632		$	272,603		$	203,633		$	142,385
FFO Before Interest and Preferred Dividends *	$	603,502		$	648,416		$	594,551		$	473,488		$	353,039

		2.36			2.14			2.18			2.33			2.48

DIVIDEND PAYOUT RATIO
Common Share Dividends and Operating Partnership Interest	$	247,729		$	260,069		$	237,856		$	196,685		$	146,846
Funds From Operations exclusive of charge associated with preferred stock redemption	$	370,394		$	377,809		$	355,102		$	292,335		$	222,382

		0.67			0.69			0.67			0.67			0.66


*		See Attached for Detail Calculation

(1)		Amounts have been adjusted to eliminate interest and debt service costs of Joint Venture consolidations due to FIN 46 as FFO does not include the Joint Venture Partners’ proportionate share.

Market Capitalization and Financial Ratios 2.2

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007


	As of
	September 30,			As of December 31,
	2007			2006			2005			2004		2003
DDR TOTAL MARKET CAPITALIZATION
Common Shares Outstanding		122,857			108,986			108,948			108,083		86,425
Operating Partnership Units Outstanding		862			872			1,350			1,350		1,129

Total		123,719			109,859			110,298			109,432		87,554
Share Price	$	55.87		$	62.95		$	47.02		$	44.37	$	33.57

Market Value of Common Shares	$	6,912,186		$	6,915,603		$	5,186,192		$	4,855,516	$	2,939,190

Preferred Shares at Book Value	$	555,000		$	705,000		$	705,000		$	705,000	$	535,000
Total Debt	$	5,204,146	(1)	$	4,248,812	(1)	$	3,890,709	(1)	$	2,716,426	$	2,077,558

TOTAL MARKET CAPITALIZATION	$	12,671,332		$	11,869,415		$	9,781,900		$	8,276,943	$	5,551,748



DDR TOTAL MARKET CAPITALIZATION — INCLUDING PROPORTIONATE SHARE OF JV DEBT
Common Shares Outstanding		122,857			108,986			108,948			108,083		86,425
Operating Partnership Units Outstanding		862			872			1,350			1,350		1,129

Total		123,719			109,859			110,298			109,432		87,554
Share Price	$	55.87		$	62.95		$	47.02		$	44.37	$	33.57

Market Value of Common Shares	$	6,912,186		$	6,915,603		$	5,186,192		$	4,855,516	$	2,939,190

Preferred Shares at Book Value	$	555,000		$	705,000		$	705,000		$	705,000	$	535,000
Total Debt	$	5,204,146	(1)	$	4,248,812	(1)	$	3,890,709	(1)	$	2,716,426	$	2,077,558
Proportionate Share of JV Debt	$	1,029,292		$	525,595		$	510,460		$	420,758	$	368,468

TOTAL MARKET CAPITALIZATION	$	13,700,624		$	12,395,010		$	10,292,361		$	8,697,701	$	5,920,216


(1)		Includes $314.9 million of consolidated Joint Venture debt at September 30, 2007 (of which $152.3 million represents the Joint Venture partners’ share) and $275.2 million and $280.5 million at December 31, 2006 and 2005, respectively.

Market Capitalization and Financial Ratios 2.2

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007


	Nine-Month
	Period Ended
	September 30,			Year Ended December 31,
	2007			2006			2005			2004		2003
UNDEPRECIATED REAL ESTATE ASSETS, CASH, INVESTMENTS & NOTES RECEIVABLE
Undepreciated Real Estate Assets	$	8,802,215		$	7,450,693		$	7,029,337		$	5,603,424	$	3,884,911
Cash and Cash Equivalents	$	49,700		$	28,378		$	30,655		$	49,871	$	111,033
Notes Receivable	$	16,778		$	18,161		$	24,996		$	17,823	$	9,813
Investments in and Advances to Joint Ventures	$	644,318		$	291,685		$	275,136		$	288,020	$	262,072

	$	9,513,011		$	7,788,917		$	7,360,124		$	5,959,138	$	4,267,829


DDR & JV UNDEPRECIATED REAL ESTATE ASSETS, INVESTMENTS & NOTES RECEIVABLE
Undepreciated Real Estate Assets	$	8,802,215		$	7,450,693		$	7,029,337		$	5,603,424	$	3,884,911
Notes Receivable or Proportionate Share Thereof	$	32,748		$	35,443		$	116,212		$	44,536	$	41,018
Proportionate Share of JV Undepreciated Real Estate Assets	$	1,650,365		$	804,738		$	736,109		$	719,619	$	621,113

	$	10,485,328		$	8,290,874		$	7,881,658		$	6,367,578	$	4,547,043


FUNDS FROM OPERATIONS BEFORE INTEREST AND PREFERRED DIVIDENDS
FFO	$	364,989		$	377,809		$	355,102		$	292,335	$	211,672
Interest Expense	$	203,805		$	222,867		$	186,196		$	130,447	$	90,162
Adjustment to interest expense for consolidated Joint Ventures due to FIN 46		($5,659	)		($7,429	)		($1,915	)	$	0	$	0
Preferred Dividends, Including Preferred Operating Minority Interest & D-42 Dividend	$	40,367		$	55,169		$	55,169		$	50,706	$	51,204

	$	603,502		$	648,416		$	594,551		$	473,488	$	353,039


DEBT SERVICE
Interest Expense	$	203,805		$	222,867		$	186,196		$	130,447	$	90,162
Adjustment to interest expense for consolidated Joint Ventures due to FIN 46		($5,659	)		($7,429	)		($1,915	)	$	0	$	0
Recurring Principal Amortization	$	22,904		$	32,026		$	33,154		$	22,480	$	11,728

	$	221,049		$	247,464		$	217,434		$	152,927	$	101,890


FIXED CHARGES
Debt Service	$	221,049		$	247,464		$	217,434		$	152,927	$	101,890
Preferred Dividends, Including Preferred Operating Minority Interest and excluding non-cash	$	34,962		$	55,169		$	55,169		$	50,706	$	40,494

D-42 dividend	$	256,011		$	302,632		$	272,603		$	203,633	$	142,385

Market Capitalization and Financial Ratios 2.2

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Significant Accounting Policies

Revenues

•

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 income and recognized upon termination of a tenant’s lease, which generally coincides with the receipt of cash.

General and Administrative Expenses

•

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. All indirect internal costs associated with acquisitions are expensed as incurred.

Deferred Financing Costs

•

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

•

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

•

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


Buildings		18 to 31 years
Furniture/Fixtures and Tenant Improvements		Useful lives, which approximate lease terms, where applicable

Significant Accounting Policies 2.4

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Significant Accounting Policies (Continued)

•

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 re-developments.

Capitalization

•

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

•

For the nine-month period ended September 30, 2007 and for the years ended December 31, 2006, 2005, 2004 and 2003, the Company capitalized interest of $18.7 million, $20.1 million, $12.5 million, $10.0 million and $11.4 million, respectively.

•

In addition, the Company capitalized certain construction administration costs of $8.0 million for the nine-month period ended September 30, 2007 and $10.1 million, $6.2 million, $5.5 million and $5.1 million for the years ended December 31, 2006, 2005, 2004, and 2003, respectively.

•

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

Gain on Sales of Real Estate

•

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.

Significant Accounting Policies 2.4

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Other Real Estate Information

Total Recurring Capital Expenditures

•

The Company and its joint ventures (at 100%) currently estimate its total recurring annual leasing capital expenditures to be approximately $24.0 million ($0.21 psf of owned GLA) in 2007.

Undeveloped Land

•

Included in land is undeveloped real estate, comprised primarily of outlots or expansion pads adjacent to the shopping centers owned by the Company. Land held for development is included in the Company’s CIP amount.

•

At December 31, 2006, the Company estimated the value of this undeveloped land to be approximately $59 million. This value has not been adjusted to reflect changes in land sales or acquisitions subsequent to December 31, 2006.

Joint Venture Promotes

•

At December 31, 2006, the Company estimated the value of its joint venture promotes at approximately $65 million based on the estimated fair market value of real estate assets and estimated 2007 income. This value has not been adjusted to reflect changes in joint venture investments or promotes recognized subsequent to December 31, 2006.

Non-Income Producing Assets

•

The Company currently estimates the undepreciated cost of its non-income producing real estate assets and furniture, fixtures and equipment to be approximately $97.5 million at September 30, 2007.

Other Real Estate Information 2.5

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Reconciliation of Supplemental
Non-GAAP Financial Measures
(In thousands)
(Unaudited)

Table 1 — Developers Diversified Realty Corporation and the Company’s Joint Ventures Combined

Same Store Net Operating Income (NOI) represents shopping center assets owned in comparable periods, excluding those under redevelopment. NOI generally includes revenues and expenses for each comparable asset, but excludes straight-line rent, lease termination income and provisions for uncollectible amounts and/or recoveries thereof. Reconciliation of Same Store NOI to Total Revenues and Certain Expenses is as follows:


	Nine-Month Period
	September 30,
	2007			2006
Total Revenues DDR	$	706,320		$	571,943
Total Revenues DDR Combined Joint Ventures		577,877			306,994
Operating and Maintenance — DDR		(95,460	)		(77,941	)
Real Estate Taxes — DDR		(82,944	)		(66,446	)
Operating and Maintenance and Real Estate Taxes- DDR Combined Joint Ventures		(195,232	)		(101,249	)


Combined NOI	$	910,561		$	633,301


Total Same Store NOI	$	527,675		$	515,789		2.3	%
Property NOI from other operating segments		382,886			117,512


Combined NOI	$	910,561		$	633,301

Reconciliation of Supplemental Non-GAAP Financial Measures 2.6

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Reconciliation of Supplemental
Non-GAAP Financial Measures
(In thousands)
(Unaudited)

Table 2 — Developers Diversified Realty Corporation

Reconciliation of Funds From Operations (FFO):


	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2007			2006			2007			2006
FUNDS FROM OPERATIONS:
Net Income Applicable to Common Shareholders	$	32,716		$	49,020		$	192,889		$	149,898
Depreciation and Amortization of Real Estate Investments		54,235			47,235			160,819			138,072
Equity in Net Income From Joint Ventures		(6,003	)		(12,868	)		(33,887	)		(22,956	)
Joint Venture Funds From Operations		17,602			13,682			62,475			32,963
Minority Equity Interests (OP Units)		569			534			1,706			1,601
Loss (Gain) on Sales of Real Estate		430			(5,870	)		(19,013	)		(11,869	)

FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS	$	99,549		$	91,733		$	364,989		$	287,709


Preferred dividend charges		10,567			13,792			40,367			41,377

FUNDS FROM OPERATIONS	$	110,116		$	105,525		$	405,356		$	329,086


ADDITIONAL FAS 141 DISCLOSURES:
Below (Above) Market Rent Amortization	$	414		$	337		$	1,087		$	1,131
Pro Rata Share of JV Below (Above) Market Rent Amortization		43			—			14			—

Debt Premium Amortization Income (Expense)	$	1,763		$	2,261		$	5,867		$	6,860
Pro Rata Share of JV Debt Premium Amortization Income (Expense)		(16	)		5			12			15

Reconciliation of Supplemental Non-GAAP Financial Measures 2.6

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Reconciliation of Supplemental
Non-GAAP Financial Measures
(In thousands)
(Unaudited)

Table 3 — Developers Diversified Realty Corporation

Summary of Consolidated Transactional Income


	Three-Month Period					Nine-Month Period
	Ended September 30,					Ended September 30,
	2007			2006		2007		2006		Income Statement Caption
Transactional Income Included in FFO
Consolidated
Merchant Building Gains, Net of Tax	$	1,808		$	6,779	$	48,016	$	45,579	Gain on Disposition of Real Estate
Land Sale Gains		2,003			4,482		10,007		6,845	Gain on Disposition of Real Estate

	$	3,811		$	11,261	$	58,023	$	52,424


Transactional Income NOT Included in FFO
Consolidated
(Loss) Gain on Dispositions	$	(120	)	$	2,701	$	5,690	$	8,700	Gain on Disposition of Real Estate
(Loss) Gain on Sales from Discontinued Operations		(310	)		3,169		13,323		3,169	Gain on Disposition of Discontinued Operations

	$	(430	)	$	5,870	$	19,013	$	11,869	FFO Reconciliation


Gain on Sales of Real Estate
Merchant Building Gains, Net of Tax	$	1,808		$	6,779	$	48,016	$	45,579
Land Sale Gains		2,003			4,482		10,007		6,845
(Loss) Gain on Dispositions		(120	)		2,701		5,690		8,700

	$	3,691		$	13,962	$	63,713	$	61,124	Consolidated Income Statement


Gain on Sales of Real Estate From Discontinued Operations
Gain on Sales from Discontinued Operations	$	(310	)	$	3,169	$	13,323	$	3,169	Consolidated Income Statement

Reconciliation of Supplemental Non-GAAP Financial Measures 2.6

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Reconciliation of Supplemental
Non-GAAP Financial Measures
(In thousands)
(Unaudited)

Table 4 — Developers Diversified Realty Corporation

Summary of Joint Venture Transactional Income


	Three-Month Period						Nine-Month Period
	Ended September 30,						Ended September 30,
	2007			2006			2007		2006			Income Statement Caption
Transactional Income Included in FFO
Joint Ventures
Gain (Loss) on Sales from Discontinued Operations	$	1,790		$	40		$	1,256	$	(1,497	)	Gain (Loss) on Disposition of Real Estate
Land Sales Gains		—			195			2,920		207		Gain on Disposition of Real Estate

	$	1,790		$	235		$	4,176	$	(1,290	)

DDR’s Proportionate Share		358			51			1,003		(341	)
Promoted Income (a)		—			5,483			14,323		5,483

DDR’s Proportionate Share	$	358		$	5,534		$	15,326	$	5,142


Transactional Income NOT Included in FFO
Joint Ventures
Gain on Sales from Discontinued Operations	$	—		$	21,420		$	1,273	$	21,407		Gain on Disposition of Real Estate
Other (Losses) Gains on Sales		(103	)		(2	)		90,066		30		(Loss) Gain on Disposition of Real Estate

	$	(103	)	$	21,418		$	91,339	$	21,437		FFO Reconciliation

DDR’s Proportionate Share	$	(20	)	$	2,997		$	4,719	$	3,029


(Loss) Gain on Sales of Real Estate
Land Sales Gains	$	—		$	195		$	2,920	$	207
Other (Losses) Gains on Sales		(103	)		(2	)		90,066		30

	$	(103	)	$	193		$	92,986	$	237		(Loss) Gain on Disposition of Real Estate


Gain on Sales of Real Estate From Discontinued Operations
Gain (Loss) on Sales from Discontinued Operations Included in FFO	$	1,790		$	40		$	1,256	$	(1,497	)
Gain on Sales from Discontinued Operations NOT Included in FFO		—			21,420			1,273		21,407

	$	1,790		$	21,460		$	2,529	$	19,910		Gain on Disposition of Discontinued Operations


(a)		Included in gain on disposition of discontinued operations for the nine-months ended September 30, 2007 is the sale of the KFC I Joint Venture assets. DDR received promoted income of approximately $13.6 million which is included in DDR’s proportionate share. Included in gain on disposition of discontinued operations for the three and nine-months ended September 30, 2006 is DDR’s promoted interest from the disposition of an asset located in Kildeer, IL.

Reconciliation of Supplemental Non-GAAP Financial Measures 2.6

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Joint Venture Investment Summary
(in millions)
as of September 30, 2007


														Promoted
			DDR			Consolidated	Number of							Interest
	Legal Name	Partner(s)	Ownership %			(Yes/No)	Properties			Gross Book Value		Debt		(Yes/No)
1	RVIP LP IIIB	Prudential Real Estate Advisors (74.25%)		25.75	%	No		1		$	86.6	$	60.0	Yes
2	RVIP VII LLC	Prudential Real Estate Advisors (79%)		21.0	%	No		2		$	120.5	$	72.1	Yes
3	RVIP LP VIII	Prudential Real Estate Advisors (74.25%)		25.75	%	No		1		$	33.5	$	23.4	Yes
4	DPG Realty Holdings LLC	Prudential Insurance Co. of America (90%)		10.0	%	No		12		$	130.5	$	10.4	No
5	DDRA Comm. Ctrs Five, L.P.	DRA Advisors (50%)		50.0	%	No		5		$	241.8	$	280.0	No
6	Lennox Town Center LTD.	Casto Properties (50%)		50.0	%	No		1		$	21.1	$	27.0	No
7	Sun Center Limited	Casto Properties (20.55%)		79.45	%	No		1		$	25.9	$	19.6	No
8	Dublin Village	Casto Properties (19.99%)		80.01	%	No		—		$	0.1	$	0.0	No
9	DOTRS LLC	State Teachers Retirement Board of Ohio (50%)		50.0	%	No		1		$	26.3	$	21.0	No
10	Littleton, CO	Poag & McEwen Lifestyle Centers (50%)		50.0	%	No		—		$	1.1	$	0.0	No
11	Jefferson County Plaza LLC	The Sansone Group (50%)		50.0	%	No		1		$	6.8	$	3.7	No
12	Sansone Group/ DDRC LLC	The Sansone Group (50%)		50.0	%	No		—		$	0.3	$	0.0	No
13	DDR Markaz II LLC (Kuwait Financial Centre II)	Kuwait Financial Centre S.A.K., Bank of Bahrain and Kuwait B.S.C. (80%)		20.0	%	No		13		$	203.2	$	150.5	Yes
14	Coventry II DDR Bloomfield LLC	Coventry II Fund (80%)		20.0	%	No		1	*	$	83.3	$	48.0	Yes
15	Coventry II DDR Buena Park LLC	Coventry II Fund (80%)		20.0	%	No		1		$	99.4	$	61.0	Yes
16	Coventry II DDR Fairplain LLC	Coventry II Fund (80%)		20.0	%	No		1		$	28.5	$	16.0	Yes
17	Coventry II DDR Marley Creek LLC	Coventry II Fund (80%)		20.0	%	No		1		$	13.0	$	10.8	Yes
18	Coventry II DDR Merriam Village LLC	Coventry II Fund (80%)		20.0	%	No		1	*	$	30.5	$	18.5	Yes
19	Coventry II DDR Montgomery Farm LLC	Coventry II Fund (80%)		20.0	%	No		1	*	$	58.0	$	25.0	Yes
20	Coventry II DDR Phoenix Spectrum LLC	Coventry II Fund (80%)		20.0	%	No		1		$	78.6	$	46.0	Yes
21	Coventry II DDR SM LLC	Coventry II Fund (80%)		20.0	%	No		44		$	147.6	$	117.4	Yes
22	Coventry II DDR Totem Lakes LLC	Coventry II Fund (80%)		20.0	%	No		1		$	40.9	$	21.0	Yes
23	Coventry II DDR Tri County LLC	Coventry II Fund (80%)		20.0	%	No		1		$	210.8	$	168.8	Yes
24	Coventry II DDR Ward Parkway LLC	Coventry II Fund (80%)		20.0	%	No		1		$	62.7	$	36.0	Yes
25	Coventry II DDR Westover LLC	Coventry II Fund (80%)		20.0	%	No		1		$	26.7	$	19.8	Yes
26	Sonae Sierra Brazil BV Sarl	Sonae Sierra, SGPS, SA (50%)		50.0	%	No		9		$	291.9	$	0.0	No
27	DDRTC Core Retail Fund, LLC	TREA Retail Property Portfolio 2006, LLC (TIAA) (85%)		15.0	%	No		66		$	2,951.0	$	1,773.6	Yes
28	Inland-SAU Retail Fund, LLC	Special Account — U, L.P. (State of Utah ) (80%)		20.0	%	No		29		$	287.7	$	226.2	No
29	TRT DDR Venture I General Partnership	TRT-DDR Joint Venture I Owner LLC (90%)		10.0	%	No		3		$	158.7	$	110.0	Yes
30	DDR Domestic Retail Fund I	DDR Domestic Retail Fund I (80%)		20.0	%	No		63		$	1,468.1	$	968.7	Yes
31	DDR Macquarie LLC (Fund LLC, Management LLC, and U.S. Trust Inc.)	Macquarie Bank Ltd (MBL) / Macquarie DDR Trust (MDT) (85.5%)		14.5	%	No		51		$	1,799.7	$	1,105.2	Yes
32	DDR MDT PS LLC (Preferred Equity)	Macquarie DDR Trust (MDT) (100%)		0.0	%	No		6		$	118.4	$	86.0	Yes
33	DDR MDT MV LLC (Mervyns) **	Macquarie DDR Trust (MDT) (49.98%)		50.02	%	Yes		37		$	405.8	$	258.5	Yes
34	Shea & Tatum Assos. LP (Paradise Village) **	Churchill Family Trust (33%)		67.0	%	Yes		1		$	27.7	$	30.0	No

	TOTALS							358		$	9,288.5	$	5,814.2


*		Property is under development

**		Joint Venture is included in consolidated operating results of DDR

Joint Venture Investment Summary 3.1

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Joint Ventures (Combining Financial Information) (1)
(in millions)
Combining Balance Sheets
as of September 30, 2007


	RVIP III B						RVIP VIII						Community			Lennox Town			Sun Center
	Deer Park, IL			RVIP VII			Tech Ridge LLC			DPG			Centers Five			Center (2)			Limited (2)			Dublin Village (3)			DOTRS
Real estate assets	$	86.6		$	120.5		$	33.5		$	130.5		$	241.8		$	21.1		$	25.9		$	0.1		$	26.3
Accumulated depreciation		(13.4	)		(18.3	)		(3.4	)		(9.0	)		(46.6	)		(4.7	)		(7.7	)		0.0			(5.4	)

Real estate, net		73.2			102.2			30.1			121.5			195.2			16.4			18.2			0.1			20.9

Receivables, net		1.8			4.7			1.5			1.9			6.3			1.8			0.9			0.0			0.9
Other assets		1.1			7.4			1.9			2.7			5.6			0.9			1.0			0.0			1.3
Disproportionate share of equity		—			—			—			—			—			—			—			—			—

	$	76.1		$	114.3		$	33.5		$	126.1		$	207.1		$	19.1		$	20.1		$	0.1		$	23.1


Mortgage debt	$	60.0		$	72.1		$	23.4		$	10.4		$	280.0		$	27.0		$	19.6		$	0.0		$	21.0
Amounts payable to DDR		0.0			0.0			0.0			0.0			0.1			0.0			0.0			0.1			0.0
Other liabilities		1.5			16.0			1.4			2.8			3.8			1.3			0.6			0.0			0.6

		61.5			88.1			24.8			13.2			283.9			28.3			20.2			0.1			21.6
Accumulated equity (deficit)		14.6			26.2			8.7			112.9			(76.8	)		(9.2	)		(0.1	)		0.0			1.5
Disproportionate share of equity		—			—			—			—			—			—			—			—			—

	$	76.1		$	114.3		$	33.5		$	126.1		$	207.1		$	19.1		$	20.1		$	0.1		$	23.1


Proportionate share of other assets/liabilities, net	$	0.4			($0.8	)	$	0.5		$	0.2		$	4.0		$	0.7		$	1.0			($0.0	)	$	0.8

Disproportionate amount payable to DDR	$	0.0		$	0.0		$	0.0		$	0.0		$	0.0		$	0.0		$	0.0		$	0.0		$	0.0

Combining Statements of Operations
for the nine-month period ended September 30, 2007


	RVIP III B						RVIP VIII						Community			Lennox Town			Sun Center
	Deer Park, IL			RVIP VII			Tech Ridge LLC			DPG			Centers Five			Center (2)			Limited (2)			Dublin Village (3)			DOTRS
Revenues from operations	$	8.8		$	11.6		$	4.7		$	9.7		$	26.8		$	3.6		$	3.6		$	0.0		$	3.0
Rental operation expenses		(3.4	)		(3.4	)		(1.7	)		(2.6	)		(7.7	)		(1.1	)		(0.9	)		(0.0	)		(0.9	)

Net operating income		5.4			8.2			3.0			7.1			19.1			2.5			2.7			0.0			2.1
Depreciation and amortization expense		(1.8	)		(2.1	)		(0.8	)		(2.3	)		(4.5	)		(0.3	)		(0.6	)		0.0			(0.4	)
Interest expense		(2.6	)		(4.1	)		(1.1	)		(0.5	)		(11.7	)		(1.3	)		(1.2	)		(0.0	)		(1.0	)

Income (loss) before gain on sale of real estate		1.0			2.0			1.1			4.3			2.9			0.9			0.9			0.0			0.7
Tax expense		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Gain (loss) on sale of real estate		2.9			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Discontinued operations		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Gain on sale of discontinued operations		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Disproportionate share of income		—			—			—			—			—			—			—			—			—

Net income (loss)	$	3.9		$	2.0		$	1.1		$	4.3		$	2.9		$	0.9		$	0.9		$	0.0		$	0.7
DDR ownership interest		***			***			***			10	%		50	%		***			***			63	%		50	%

	$	2.1		$	0.4		$	0.4		$	0.4		$	1.5		$	0.5		$	0.7		$	(0.0	)	$	0.4
Amortization of basis differential		0.0			(0.2	)		0.0			0.0			0.3			(0.1	)		(0.1	)		0.0			0.1

	$	2.1		$	0.2		$	0.4		$	0.4		$	1.8		$	0.4		$	0.6		$	0.0		$	0.5


Proportionate share of net operating income (4)	$	1.4		$	1.7		$	0.8		$	0.7		$	9.5		$	1.3		$	2.1			($0.0	)	$	1.1

Proportionate share of interest expense (4)	$	0.7		$	0.9		$	0.3		$	0.0		$	5.8		$	0.6		$	0.9		$	0.0		$	0.5


Funds From Operations (“FFO”):

Net income (loss)	$	3.9		$	2.0		$	1.1		$	4.3		$	2.9		$	0.9		$	0.9		$	0.0		$	0.7
Depreciation of real property		1.8			2.1			0.8			2.3			4.5			0.3			0.6			0.0			0.4
(Gain) loss on sale on sale of real estate		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Disproportionate share of income		—			—			—			—			—			—			—			—			—

	$	5.7		$	4.1		$	1.9		$	6.6		$	7.4		$	1.2		$	1.5		$	0.0		$	1.1
DDR ownership interest		***			***			***			10	%		50	%		***			***			63	%		50	%

DDR FFO	$	3.0		$	1.6		$	0.8		$	0.7		$	3.7		$	0.6		$	1.2			($0.0	)	$	0.6

Joint Venture Financial Summary 3.2

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Joint Ventures (Combining Financial Information) (1)
(in millions)
Combining Balance Sheets
as of September 30, 2007


				Jefferson County,			Sansone Group /						Coventry II DDR			Coventry II DDR			Coventry II DDR			Coventry II DDR			Coventry II DDR
	Littleton, CO (3)			MO			DDRC LLC			DDR Markaz II			Bloomfield			Buena Park			Fairplain Plaza			Marley Creek			Merriam Village
Real estate assets	$	3.1		$	6.8		$	0.3		$	203.2		$	83.3		$	99.4		$	28.5		$	13.0		$	30.5
Accumulated depreciation		0.0			(0.8	)		(0.2	)		(15.2	)		0.0			(5.3	)		(0.6	)		(0.2	)		0.0

Real estate, net		3.1			6.0			0.1			188.0			83.3			94.1			27.9			12.8			30.5

Receivables, net		0.0			0.0			1.0			2.2			0.0			1.6			0.2			(0.0	)		0.0
Other assets		0.2			0.2			3.4			5.1			0.8			1.3			0.4			0.6			0.6
Disproportionate share of equity		—			—			—			—			—			—			—			—			—

	$	3.3		$	6.2		$	4.5		$	195.3		$	84.1		$	97.0		$	28.5		$	13.4		$	31.1


Mortgage debt	$	0.0		$	3.7		$	0.0		$	150.5		$	48.0		$	61.0		$	16.0		$	10.8		$	18.5
Amounts payable to DDR		0.0			3.1			0.0			0.3			0.0			0.0			0.0			0.0			0.0
Other liabilities		0.3			0.4			0.7			(0.4	)		2.6			2.7			0.5			0.1			0.5

		0.3			7.2			0.7			150.4			50.6			63.7			16.5			10.9			19.0
Accumulated equity (deficit)		3.0			(1.0	)		3.8			44.9			33.5			33.3			12.0			2.5			12.1
Disproportionate share of equity		—			—			—			—			—			—			—			—			—

	$	3.3		$	6.2		$	4.5		$	195.3		$	84.1		$	97.0		$	28.5		$	13.4		$	31.1


Proportionate share of other assets/liabilities, net	$	(0.1	)		($0.1	)	$	1.9		$	1.5			($0.2	)	$	0.0		$	0.0		$	0.0		$	0.0

Disproportionate amount payable to DDR	$	0.0		$	1.6		$	0.0		$	0.0		$	0.0		$	0.0		$	0.0		$	0.0		$	0.0

Combining Statements of Operations
for the nine-month period ended September 30, 2007


				Jefferson County,			Sansone Group /						Coventry II DDR			Coventry II DDR			Coventry II DDR			Coventry II DDR			Coventry II DDR
	Littleton, CO (3)			MO			DDRC LLC			DDR Markaz II			Bloomfield			Buena Park			Fairplain Plaza			Marley Creek			Merriam Village
Revenues from operations	$	0.0		$	0.5		$	0.8		$	16.1		$	0.0		$	10.7		$	2.3		$	0.5		$	0.0
Rental operation expenses		(0.1	)		(0.2	)		0.0			(5.7	)		(0.0	)		(4.8	)		(0.9	)		(0.4	)		(0.0	)

Net operating income		(0.1	)		0.3			0.8			10.4			0.0			5.9			1.4			0.1			(0.0	)
Depreciation and amortization expense		0.0			(0.1	)		0.0			(3.9	)		0.0			(1.5	)		(0.3	)		(0.2	)		0.0
Interest expense		0.0			(0.5	)		0.0			(6.0	)		0.0			(3.1	)		(0.8	)		(0.6	)		0.0

Income (loss) before gain on sale of real estate		(0.1	)		(0.3	)		0.8			0.5			(0.0	)		1.3			0.3			(0.7	)		(0.0	)
Tax expense		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Gain (loss) on sale of real estate		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Discontinued operations		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Gain on sale of discontinued operations		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Disproportionate share of income		—			—			—			—			—			—			—			—			—

Net income (loss)		($0.1	)		($0.3	)	$	0.8		$	0.5			($0.0	)	$	1.3		$	0.3			($0.7	)		($0.0	)
DDR ownership interest		50	%		50	%		***			20	%		20	%		20	%		20	%		20	%		20	%

		($0.0	)		($0.2	)	$	0.7		$	0.1			($0.0	)	$	0.3		$	0.1			($0.1	)		($0.0	)
Amortization of basis differential		0.0			0.0			(0.2	)		0.1			0.0			0.0			0.0			0.0			0.0

	$	0.0			($0.2	)	$	0.5		$	0.2			($0.0	)	$	0.3		$	0.1			($0.1	)		($0.0	)

Proportionate share of net operating income (4)		($0.0	)	$	0.2		$	0.4		$	2.1			($0.0	)	$	1.2		$	0.3		$	0.0			($0.0	)

Proportionate share of interest expense (4)	$	0.0		$	0.2		$	0.0		$	1.2		$	0.0		$	0.6		$	0.2		$	0.1		$	0.0


Funds From Operations (“FFO”):

Net income (loss)		($0.1	)		($0.3	)	$	0.8		$	0.5			($0.0	)	$	1.3		$	0.3			($0.7	)		($0.0	)
Depreciation of real property		0.0			0.2			0.0			3.9			0.0			1.5			0.4			0.2			0.0
(Gain) loss on sale of real estate		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Disproportionate share of income		—			—			—			—			—			—			—			—			—

		($0.1	)		($0.1	)	$	0.8		$	4.4		$	0.0		$	2.8		$	0.7			($0.5	)		($0.0	)
DDR ownership interest		50	%		50	%		***			***			20	%		20	%		20	%		20	%		20	%

DDR FFO		($0.0	)	$	0.0		$	0.6		$	1.0			($0.0	)	$	0.6		$	0.1			($0.1	)		($0.0	)

Joint Venture Financial Summary 3.2

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Joint Ventures (Combining Financial Information) (1)
(in millions)
Combining Balance Sheets
as of September 30, 2007


	Coventry II DDR		Coventry II DDR			Coventry II Service			Coventry II DDR			Coventry II DDR			Coventry II DDR			Coventry II DDR			Sonae Sierra			DDRTC Core
	Montgomery Farm		Phoenix Spectrum			Holdings LLC			Totem Lakes			Tri-County Mall			Ward Parkway			Westover			Brazil (2)			Retail Fund LLC
Real estate assets	$	58.0	$	78.6		$	147.6		$	40.9		$	210.8		$	62.7		$	26.7		$	291.9		$	2,951.0
Accumulated depreciation		0.0		(4.2	)		(2.9	)		(2.4	)		(5.9	)		(4.2	)		(0.9	)		(27.0	)		(40.9	)

Real estate, net		58.0		74.4			144.7			38.5			204.9			58.5			25.8			264.9			2,910.1

Receivables, net		0.0		5.7			2.9			0.1			4.5			2.6			0.7			11.8			13.9
Other assets		0.6		6.9			17.3			0.6			7.6			0.3			1.1			23.7			122.7
Disproportionate share of equity		—		—			—			—			—			—			—			—			—

	$	58.6	$	87.0		$	164.9		$	39.2		$	217.0		$	61.4		$	27.6		$	300.4		$	3,046.7


Mortgage debt	$	25.0	$	46.0		$	117.4		$	21.0		$	168.8		$	36.0		$	19.8		$	0.0		$	1,773.6
Amounts payable to DDR		0.0		0.0			0.0			0.0			0.0			0.0			0.0			0.0			3.4
Other liabilities		0.0		7.7			3.3			0.9			7.5			2.1			1.4			22.2			48.4

		25.0		53.7			120.7			21.9			176.3			38.1			21.2			22.2			1,825.4
Accumulated equity (deficit)		33.6		33.3			44.2			17.3			40.7			23.3			6.4			278.2			1,221.3
Disproportionate share of equity		—		—			—			—			—			—			—			—			—

	$	58.6	$	87.0		$	164.9		$	39.2		$	217.0		$	61.4		$	27.6		$	300.4		$	3,046.7


Proportionate share of other assets/liabilities, net	$	0.1	$	1.0		$	3.4			($0.0	)	$	0.8		$	0.2		$	0.0		$	6.6		$	13.2

Disproportionate amount payable to DDR	$	0.0	$	0.0		$	0.0		$	0.0		$	0.0		$	0.0		$	0.0		$	0.0		$	0.0

Combining Statements of Operations
for the nine-month period ended September 30, 2007


	Coventry II DDR			Coventry II DDR			Coventry II Service			Coventry II DDR			Coventry II DDR			Coventry II DDR			Coventry II DDR			Sonae Sierra			DDRTC Core
	Montgomery Farm			Phoenix Spectrum			Holdings LLC			Totem Lakes			Tri-County Mall			Ward Parkway			Westover			Brazil (2)			Retail Fund LLC
Revenues from operations	$	0.0		$	7.6		$	20.4		$	2.5		$	13.6		$	6.8		$	3.0		$	40.8		$	148.0
Rental operation expenses		(0.0	)		(2.9	)		(8.5	)		(0.9	)		(6.9	)		(3.3	)		(1.6	)		(20.9	)		(43.8	)

Net operating income		(0.0	)		4.7			11.9			1.6			6.7			3.5			1.4			19.9			104.2
Depreciation and amortization expense		0.0			(1.0	)		(3.0	)		(0.5	)		(2.8	)		(0.9	)		(0.2	)		(7.6	)		(46.0	)
Interest expense		0.0			(1.7	)		(8.7	)		(1.2	)		(7.7	)		(1.8	)		(1.0	)		0.0			(60.1	)

Income (loss) before gain on sale of real estate		(0.0	)		2.0			0.2			(0.1	)		(3.8	)		0.8			0.2			12.3			(1.9	)
Tax expense		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Gain (loss) on sale of real estate		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Discontinued operations		0.0			0.0			(0.6	)		0.0			0.0			0.0			0.0			0.0			0.0
Gain on sale of discontinued operations		0.0			0.0			1.3			0.0			0.0			0.0			0.0			0.0			0.0
Disproportionate share of income		—			—			—			—			—			—			—			—			—

Net income (loss)		($0.0	)	$	2.0		$	0.9			($0.1	)		($3.8	)	$	0.8		$	0.2		$	12.3			($1.9	)
DDR ownership interest		20	%		20	%		20	%		20	%		20	%		20	%		20	%		50	%		15	%

		($0.0	)	$	0.4		$	0.2			($0.0	)		($0.8	)	$	0.2		$	0.0		$	6.0			($0.3	)
Amortization of basis differential		0.0			0.0			0.0			0.0			0.0			0.0			0.0			(1.9	)		0.2

	$	0.0		$	0.4		$	0.2			($0.0	)		($0.8	)	$	0.2		$	0.0		$	4.1			($0.1	)

Proportionate share of net operating income (4)		($0.0	)	$	0.9		$	2.4		$	0.3		$	1.3		$	0.7		$	0.3		$	9.9		$	15.6

Proportionate share of interest expense (4)	$	0.0		$	0.3		$	1.7		$	0.2		$	1.5		$	0.4		$	0.2		$	0.0		$	9.0


Funds From Operations (“FFO”):

Net income (loss)		($0.0	)	$	2.0		$	0.9			($0.1	)		($3.8	)	$	0.8		$	0.2		$	12.3			($1.9	)
Depreciation of real property		0.0			1.0			3.2			0.5			2.8			0.9			0.2			7.6			45.9
(Gain) loss on sale of real estate		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Disproportionate share of income		—			—			—			—			—			—			—			—			—

	$	0.0		$	3.0		$	4.1		$	0.4			($1.0	)	$	1.7		$	0.4		$	19.9		$	44.0
DDR ownership interest		20	%		20	%		20	%		20	%		20	%		20	%		20	%		50	%		***

DDR FFO		($0.0	)	$	0.6		$	0.8		$	0.1			($0.2	)	$	0.3		$	0.1		$	10.0		$	6.8

Joint Venture Financial Summary 3.2

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Joint Ventures (Combining Financial Information) (1)
(in millions)
Combining Balance Sheets
as of September 30, 2007


																								DDR's
	Inland-SAU			DDR Domestic			TRT DDR			DDR Macquarie Fund			DDR MDT PS			DDR Macquarie			Sold/Acquired					Proportionate
	Retail Fund LLC (2)			Retail Fund I			Venture I GP			LLC			LLC			Management			JVs (5)		Total			Share
Real estate assets	$	287.7		$	1,468.1		$	158.7		$	1,799.7		$	118.4		$	0.0		$	0.0	$	8,855.1		$	1,650.4
Accumulated depreciation		(13.1	)		(11.8	)		(1.8	)		(114.1	)		(3.1	)		0.0			0.0		(363.1	)		(93.5	)

Real estate, net		274.6			1,456.3			156.9			1,685.6			115.3			0.0			0.0		8,492.0			1,556.9

Receivables, net		5.1			10.0			1.7			34.9			3.7			0.0			1.4		123.9			28.3
Other assets		66.8			68.9			5.0			31.0			4.7			5.7			4.9		402.3			83.6
Disproportionate share of equity		—			—			—			—			—			—			—		—			13.9	(6)

	$	346.5		$	1,535.2		$	163.6		$	1,751.5		$	123.7		$	5.7		$	6.3	$	9,018.2		$	1,682.7


Mortgage debt	$	226.2		$	968.7		$	110.0		$	1,105.2		$	86.0		$	0.0		$	0.0	$	5,525.7		$	1,029.3
Amounts payable to DDR		0.3			0.0			0.0			1.2			0.3			0.1			0.0		8.8			2.5
Other liabilities		6.7			23.2			0.4			25.3			2.4			10.4			1.9		199.2			42.5

		233.2			991.9			110.4			1,131.7			88.7			10.5			1.9		5,733.7			1,074.3
Accumulated equity (deficit)		113.3			543.3			53.2			619.8			35.0			(4.8	)		4.4		3,284.5			594.5
Disproportionate share of equity		—			—			—			—			—			—			—		—			13.9	(6)

	$	346.5		$	1,535.2		$	163.6		$	1,751.5		$	123.7		$	5.7		$	6.3	$	9,018.2		$	1,682.7


Proportionate share of other assets/liabilities, net	$	13.0		$	11.1		$	0.6		$	5.9		$	0.0		$	2.4		$	0.9	$	69.4

Disproportionate amount payable to DDR	$	0.0		$	0.0		$	0.0		$	0.0		$	0.0		$	0.0		$	0.0	$	1.6

Combining Statements of Operations
for the nine-month period ended September 30, 2007


																									DDR's
	Inland-SAU			DDR Domestic			TRT DDR			DDR Macquarie			DDR MDT PS			DDR Macquarie			Sold/Acquired						Proportionate
	Retail Fund LLC (2)			Retail Fund I			Venture I GP			Fund LLC			LLC			Management			JVs (5)			Total			Share
Revenues from operations	$	18.3		$	41.2		$	5.3		$	147.5		$	8.9		$	0.9		$	10.5		$	577.9		$	123.1
Rental operation expenses		(5.3	)		(12.2	)		(1.4	)		(46.5	)		(3.4	)		(0.5	)		(3.5	)		(195.2	)		(43.4	)

Net operating income		13.0			29.0			3.9			101.0			5.5			0.4			7.0			382.7			79.7
Depreciation and amortization expense		(7.4	)		(12.5	)		(1.9	)		(28.1	)		(2.0	)		(0.5	)		(1.8	)		(135.2	)		(26.9	)
Interest expense		(6.7	)		(17.7	)		(2.4	)		(43.6	)		(4.0	)		0.0			(2.1	)		(193.0	)		(37.4	)

Income (loss) before gain on sale of real estate		(1.1	)		(1.2	)		(0.4	)		29.3			(0.5	)		(0.1	)		3.1			54.5			15.4
Tax expense		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Gain (loss) on sale of real estate		0.0			0.0			0.0			0.0			0.0			0.0			90.1			93.0			18.8
Discontinued operations		0.0			0.0			0.0			0.0			0.0			0.0			(0.1	)		(0.7	)		(0.2	)
Gain on sale of discontinued operations		0.0			0.0			0.0			0.0			0.0			0.0			1.3			2.5			0.6
Disproportionate share of income		—			—			—			—			—			—			—			—			(0.1	)(7)

Net income (loss)	$	(1.1	)	$	(1.2	)	$	(0.4	)	$	29.3		$	(0.5	)	$	(0.1	)	$	94.4		$	149.3		$	34.5
DDR ownership interest		20	%		20	%		10	%		***			***			***			***			***			***

	$	(0.2	)	$	(0.2	)	$	(0.0	)	$	6.9		$	0.2		$	0.0		$	15.0		$	34.5		$	34.5
Amortization of basis differential		0.2			0.0			0.0			0.0			0.0			0.8			0.2			(0.6	)		(0.6	)


	$	(0.0	)	$	(0.2	)	$	(0.0	)	$	6.9		$	0.2		$	0.8		$	15.2		$	33.9		$	33.9

Proportionate share of net operating income (4)	$	2.6		$	5.8		$	0.4		$	14.6		$	0.0		$	0.3		$	1.8		$	79.7

Proportionate share of interest expense (4)	$	1.3		$	3.5		$	0.2		$	6.3		$	0.0		$	0.0		$	0.4		$	37.4


Funds From Operations (“FFO”):

Net income (loss)	$	(1.1	)	$	(1.2	)	$	(0.4	)	$	29.3		$	(0.5	)	$	(0.1	)	$	94.4		$	149.3		$	34.5
Depreciation of real property		7.4			12.5			1.9			28.1			2.0			0.5			2.0			135.5			27.0
(Gain) loss on sale of real estate		0.0			0.0			0.0			0.0			0.0			0.0			(91.3	)		(91.3	)		(18.3	)
Disproportionate share of income		—			—			—			—			—			—			—			—			19.3	(8)

	$	6.3		$	11.3		$	1.5		$	57.4		$	1.5		$	0.4		$	5.1		$	193.5		$	62.5

DDR ownership interest		20	%		20	%		10	%		***			***			***			***			***

DDR FFO	$	1.3		$	2.3		$	0.1		$	11.0		$	0.0		$	0.3		$	14.9		$	62.5

Joint Venture Financial Summary 3.2

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007


(1)		Amounts may differ slightly from actual results, due to rounding.

(2)		Asset values reflect historical cost basis due to acquisition of partnership interest (i.e., does not reflect step-up in basis).

(3)		Represents undeveloped land.

(4)		Does not include proportionate share of net operating income or interest expense for properties classified as discontinued operations.

(5)		Represents residual Joint Ventures sold to the DDR Macquarie Joint Venture and DDR Domestic Retail Fund I and other Joint Venture interests sold in 2007.

(6)		Adjustments represent the effect of promoted equity structures and minority interests. These adjustments are primarily at the RVIP IIIB, RVIP VII, RVIP VIII, Coventry II DDR Bloomfield, Coventry II DDR Marley Creek, Coventry II DDR Montgomery Farm, Coventry II DDR Tri-County Mall, Coventry II DDR Westover and the DDR Macquarie Fund LLC Joint Ventures.

(7)		Adjustments represent the effect of promoted equity structures on DDR’s share of the income primarily from an asset management promote from RVIP IIIB and DDR Macquarie Fund LLC offset by the gain deferred from the sale of the KFC I assets to the DDR Domestic Retail Fund I.

(8)		Adjustments associated with the promote earned in 2Q07 from the sale of Joint Venture assets and Coventry’s promoted interests primarily at the RVIP IIIB, RVIP VII and RVIP VIII Joint Ventures and partnership structural items at the DDRTC Core Retail Fund LLC.

***		See Section 3.1- Joint Venture Investment Summary, disclosing respective ownership percentage, as ownership percentage may have changed during the year, or the promoted interest is in effect.

Joint Venture Financial Summary 3.2

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Wholly-Owned and Consolidated Capital Transactions

Acquisitions, Dispositions, Developments & Expansions
for the Nine-Month Period Ended September 30, 2007
(In Millions)


	Nine-Month
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			December 31,			December 31,			December 31,			December 31,
	2007			2006			2005			2004			2003
Acquisitions/Transfers	$	3,018.3	(1)	$	370.2	(4)	$	1,610.8	(6)	$	2,170.8	(9)	$	1,363.6	(11)
Completed Expansions		32.9			73.1			41.6			25.2			26.8
Developments & Construction in Progress		266.5			246.0			246.1			203.8			104.6
Recurring Tenant Improvements & 3rd Party Leasing Commissions		9.5	(2)		11.7			7.5			6.6			6.3
Furniture Fixtures & Equipment		12.4			10.2			10.7	(7)		1.3			1.9

		3,339.6			711.2			1,916.7			2,407.7			1,503.2
Less: Real Estate Sales & Joint Venture Transfers		(1,988.1	)(3)		(289.8	)(5)		(490.8	)(8)		(689.2	)(10)		(422.4	)(12)

Total DDR Net Additions	$	1,351.5		$	421.4		$	1,425.9		$	1,718.5		$	1,080.8


(1)		Includes the redemption of OP units for a previous acquisition.

(2)		The Company anticipates recurring leasing capital expenditures of approx. $13.0 million associated with its wholly-owned and consolidated portfolio during 2007.

(3)		In addition to the asset sales listed on Schedule 4.3, this balance includes the sale to Dividend Capital Total Realty Trust Joint Venture of three assets with an aggregate cost of $99.0 million, the sale to DDR Domestic Retail Fund I Joint Venture of 56 assets with an aggregate cost of $1,229.3 million, the sale to Macquarie DDR Trust Joint Venture of 3 assets with an aggregate cost of $49.5 and the sale of six outparcels.

(4)		Includes the acquisition of three properties located in Pasadena, CA; San Diego, CA and Phoenix, AZ aggregating $199.7 million, plus the transfer to DDR from a joint venture of the Service Merchandise portfolio and Salisbury, MD shopping center, aggregating $111.9 million and $4.0 million, respectively, the consolidation of joint venture assets for a shopping center located in Phoenix, AZ aggregating $41.4 million pursuant to EITF 04-05 and the redemption of OP units and other acquisition costs aggregating $13.2 million.

(5)		In addition to the asset sales which had an aggregate cost of $73.1 million, this balance includes the sale of the Service Merchandise Portfolio to Coventry II which had an aggregate cost of $112.6 million, the sale to Macquarie DDR Trust Joint Venture of seven assets with an aggregate cost of $80.5 million, plus four earnout parcels with an aggregate cost of $12.5 million, and the sale of several land parcels and outparcels.

(6)		Includes the acquisition of the Caribbean Property Group portfolio and the Mervyns portfolio aggregating $1,160.1 million and $409.1 million, respectively, the transfer to DDR from a joint venture of the Dublin, OH shopping center, which has an aggregate cost of $36.2 million and a $5.4 million basis adjustment to the Benderson acquisition relating to master lease adjustments.

(7)		The large proportionate increase in FF&E in 2005 is primarily attributed to certain IT projects, expansion of the corporate headquarters, and fractional ownership interest in corporate jets.

(8)		In addition to the asset sales which had an aggregate cost of $219.1 million, this balance includes the transfer of twelve assets with an aggregate cost of $258.6 million to the Macquarie DDR Trust Joint Venture and the sale of several outparcels.

(9)		Includes the acquisition of the Benderson portfolio aggregating $2,014.4 million, the consolidation of certain joint venture assets aggregating $37.9 million due to FIN 46 and transfers to DDR from joint ventures of the Littleton, CO and Merriam, KS shopping centers which had an aggregate value of $111.8 million. This also includes the purchase of DDR corporate headquarters for $6.7 million.

(10)		In addition to the asset sales which had an aggregate cost of $62.6 million, this balance includes the sale of several land parcels with an aggregate cost of $41.1 million. This balance also includes the transfer of 12 assets with an aggregate cost of $258.3 million to the Macquarie DDR Trust Joint Venture, the transfer of 12 assets with an aggregate cost of $124.0 million to the DPG Realty Holdings Joint Venture and the transfer of 13 assets with an aggregate cost of $203.2 million to the DDR Markaz II Joint Venture.

(11)		Includes the merger of JDN which had an aggregate cost of $1,064.0 million, the acquisition of a shopping center in Broomfield, CO aggregating $55.5 million, and the transfer from joint ventures of the Leawood, KS and Suwannee, GA shopping centers aggregating $125.9 million, and the consolidation of the assets aggregating $118.2 million owned by DD Development Company.

(12)		In addition to asset sales which had an aggregate cost of $62.9 million, this balance includes the transfer of seven assets with an aggregate cost of $153.6 million to the joint venture with DDR Markaz LLC (Kuwait Financial Centre), these assets are shopping centers located in Richmond, CA; Winchester, VA; Tampa, FL; Toledo, OH; Highland, IN; Oviedo, FL and Grove City, OH and the sale of several outparcels, which had an aggregate cost of $13.5 million. The balance also includes the transfer of four assets with an aggregate cost of $192.4 million to the Macquarie DDR Trust Joint Venture, these assets are shopping centers located in Canton, OH; North Olmsted, OH; Independence, MO and St. Paul, MN.

Summary of Wholly-Owned Capital Transactions 4.1

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Joint Venture Capital Transactions

Acquisitions, Dispositions, Developments & Expansions
for the Nine-Month Period Ended September 30, 2007
(In Millions)


	Nine-Month
	Period Ended			Year Ended			Year Ended			Year Ended			Year Ended
	September 30,			December 31,			December 31,			December 31,			December 31,
	2007			2006			2005			2004			2003
Acquisitions/Transfers	$	5,000.6	(1)	$	729.9	(4)	$	350.0		$	1,147.0	(8)	$	1,221.7	(10)
Completed Expansions		0.0			0.0			9.3			10.3			9.7
Developments & Construction in Progress		107.0			139.6	(5)		87.5			38.9			120.1
Recurring Tenant Improvements & 3rd Party Leasing Commissions		9.0	(2)		9.1			6.8			0.6			0.6

	$	5,116.6		$	878.6		$	453.6		$	1,196.8		$	1,352.1
Less: Real Estate Sales and Dispositions		($201.2	)(3)		($409.0	)(6)		($148.8	)(7)		($306.7	)(9)		($781.5	)(11)

Joint Venture Totals	$	4,915.4		$	469.6		$	304.8		$	890.1		$	570.6


(1)		Includes the acquisition of an additional 73% interest in Metropole Shopping Center by Sonae Sierra Brazil BV Sarl, plus the foreign currency impact on the assets owned by Sonae Sierra Brazil BV Sarl.

(2)		The Company estimates recurring leasing capital expenditures of $11.0 million for its joint venture portfolio during 2007.

(3)		Includes the sale of seven shopping centers, with an aggregate cost of $168.0 million, previously owned by a joint venture with Kuwait Financial Centre to the DDR Domestic Retail Fund I and the sale of vacant land at the Techridge, TX shopping center (owned by RVIP VIII).

(4)		Includes the formation of Sonae Sierra Brazil BV Sarl and DDR MDT PS LLC, plus acquisitions of the Service Merchandise portfolio and properties located in Cincinnati, OH; Benton Harbor, MI and Orland, IL by joint ventures with Coventry II.

(5)		Includes the acquisition of 34 acres of land in Allen, TX for the development of a 435,061 sf shopping center and 88 acres of land in Bloomfield Hills, MI for the development of a 758,750 sf shopping center. Both of these shopping centers are being developed with Coventry II.

(6)		In addition to asset sales which had an aggregate cost of $88.9 million, the balance includes the transfer to DDR of the Service Merchandise portfolio and five assets located in Pasadena, CA; Phoenix, AZ (two properties); Salisbury, MD and Apex, NC. These assets had an aggregate cost of $320.1 million.

(7)		In addition to asset sales which had an aggregate cost of $111.1 million, this balance includes the transfer to DDR of the Dublin, OH shopping center which had an aggregate cost of $30.0 million and the sale of five outparcels at Plaza at Puente Hills, CA, which were owned by RVIP VII.

(8)		Balance includes the acquisition of three Coventry II assets aggregating $174.1 million, the formation of DPG and DDR Markaz II aggregating $128.7 million and $201.6 million, respectively, Macquarie DDR Trust’s acquisition of an additional $619.5 million of assets, plus the acquisition of Poag & McEwen’s interest and David Berndt’s interest in RVIP IIIB and RVIP VIII, respectively, for $14.9 million, the purchase of a fee interest in several assets in the Service Merchandise portfolio for $5.2 million and a $3.0 million earnout for an outparcel in Kildeer, IL.

(9)		In addition to asset sales which had an aggregate cost of $141.7 million, this balance includes the transfer to DDR of the Littleton, CO and Merriam, KS shopping centers which had an aggregate cost of $107.3 million, $51.2 million of adjustments due to GAAP presentation including FIN 46 and a $6.5 million write-off for the demolition of a portion of an asset in Lancaster, CA.

(10)		Balance includes the formation of Macquarie DDR Trust and DDR Markaz aggregating $735.9 million and $169.3 million, respectively, plus several new joint ventures with assets aggregating $228.8 million and the consolidation of equity investments previously held by DD Development Company for shopping centers in Long Beach, CA; Shawnee, KS; Overland Pointe, KS; Olathe, KS and Kansas City, MO which aggregated $87.7 million.

(11)		In addition to asset sales which had an aggregate cost of $167.5 million, this balance includes the disposition of shopping centers located in Dayton, OH and Niles, OH, the sale of an outparcel, the transfer of the Leawood, KS and Suwannee, GA shopping centers to DDR and the rejection of two of the Service Merchandise leases, the aggregate cost of these transactions was $116.6 million. During the fourth quarter the shopping centers located in Coon Rapids, MN; Naples, FL; Atlanta, GA; Marietta, GA; Schaumburg, IL; Framingham, MA and Fairfax, VA, which had an aggregate cost of $379.2 million, were sold to the Macquarie DDR Trust Joint Venture, and $118.2 million of assets owned by DD Development Company were consolidated into DDR.

Summary of Joint Venture Capital Transactions 4.1

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Wholly Owned and Consolidated Acquisitions
for the Nine-Month Period Ended September 30, 2007

Cost

Acquisition

Property Location

GLA(1)

(Millions)

Date

Major Tenants

IRRETI

18,050,190

3,017.7

02/27/07

Portfolio of 222 Properties

Total

18,050,190

$3,017.7

Joint Venture Acquisitions
for the Nine-Month Period Ended September 30, 2007


							DDR’s			Joint
			Cost		Acquisition		Ownership			Venture
Property Location	GLA(1)		(Millions)		Date		Percentage			Partner
DDRTC Core Retail Fund LLC		23,090,322	$	2,946.8		02/27/07		15.00	%	TIAA
SAU Retail Fund LLC (2)		3,016,064	$	288.1		02/27/07		20.00	%	Special Account-U LP
Dividend Capital Total Realty Trust		1,525,374	$	158.7		05/11/07		10.00	%	Dividend Capital Total Realty Trust
DDR Domestic Retail Fund 1		8,893,373	$	1,468.1		06/08/07		20.00	%	The Investors Group
DDR Macquarie LLC (3)		577,433	$	50.4	Various			14.50	%	Macquarie Bank Limited

Total		37,102,566	$	4,912.1


(1)		Includes square footage not owned by the Company.

(2)		Joint venture with the State of Utah assumed through IRRETI acquisition.

(3)		Acquisition of 3 former IRRETI properties located in Florida.

Consolidated and Joint Venture Acquisitions 4.2

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Wholly-Owned and Consolidated Development Projects
for the Nine-Month Period Ended September 30, 2007


									Estimated
				Estimated		Estimated			Substantial
				Gross Cost		Net Cost			Completion
*Projects in Progress*	GLA			(Millions)		(Millions)			Date		Description	Major Tenants

Ukiah (Mendocino), CA (2)		669,406	(1)	$	113.5	$	101.4			2009	Community Center	To be announced
Homestead, FL		398,759	(1)	$	95.2	$	74.9			2008	Community Center	Kohl’s and additional retail to be announced
Miami, FL		644,999		$	155.7	$	142.6			2006 — 2009	Mixed-Use	Phase I which includes Target, Linens’ N Things, Circuit City, Marshalls, West Elm, PETsMART, Loehman’s and Ross Dress for Less which are open. Additional retail space to be announced will open in the 4th quarter of 2007. Phase II will be completed in 2009
Tampa (Brandon), FL		370,700	(1)	$	70.7	$	55.5			2009	Community Center	Outback Steakhouse, and additional retail tenants to be announced
Tampa (Wesley Chapel), FL		95,408	(1)	$	17.4	$	13.7			2008	Community Center	Outback Steakhouse, and additional retail tenants to be announced
Atlanta (Douglasville), GA		124,200		$	22.4	$	17.7			2008	Community Center	To be announced
Boise (Nampa), ID		829,975	(1)	$	147.0	$	136.2			2007 — 2008	Community Center	JC Penney (opened 3rd quarter 2007) and other retail tenants to be announced
Chicago (McHenry), IL		454,378	(1)	$	74.3	$	67.1			2007	Community Center	Bed Bath & Beyond, Office Max (opened 4th quarter 2006), Best Buy, PETsMART, Dick’s (opened 1st quarter 2007), JC Penney, Wickes Furniture, and Ulta (opened 3rd quarter 2007) and other retail tenants to be announced
Boston, MA (Seabrook, NH)		461,825	(1)	$	74.5	$	50.1			2009	Community Center	To be announced
Elmira (Horseheads), NY		668,619	(1)	$	77.1	$	49.1			2007 — 2008	Community Center	Kohl’s (opened March 2007), Circuit City (opened 3rd quarter 2007), Wal-Mart (scheduled to open 1st quarter 2008), and additional retail space to be announced
Raleigh (Apex), NC (Promenade)		87,780		$	20.2	$	17.9			2008	Community Center	Carrabas and additional retail space to be announced
Raleigh (Apex), NC (Beaver Creek Crossings-Phase II)		283,217		$	52.3	$	50.8			2009	Community Center	To be announced
San Antonio (Stone Oak), TX		665,229	(1)	$	93.4	$	84.5	(3)		2007	Hybrid Center	World Market, Hobby Lobby, Office Max, TJ Maxx, Kirkland’s, DSW and other retail tenants (opened 3rd quarter 2007) and Target, Chico’s, Ann Taylor Loft, Joseph Banks, Talbots, Soma, Coldwater Creek, Cold Stone Creamery, Victoria’s Secret, Chili’s and other tenants to be announced all of which will open 4th quarter 2007

*Projects to Commence Construction*
Guilford, CT		147,619	(1)	$	43.4	$	41.2			2008	Community Center	To be announced
Atlanta (Union City), GA		200,000		$	47.5	$	31.5			2008	Community Center	To be announced
Chicago (Grayslake), IL (4)		689,799	(1)	$	144.2	$	81.1			2009	Community Center	To be announced
Gulfport, MS		703,379	(1)	$	91.2	$	72.7			2009	Hybrid Center	To be announced
Isabela, PR (5)		290,085	(1)	$	57.1	$	44.7			2009	Community Center	To be announced
Austin (Kyle), TX (2)		778,415	(1)	$	97.2	$	60.0			2009	Community Center	To be announced
San Antonio (Shertz), TX (2)		506,639	(1)	$	50.7	$	26.3			2009	Community Center	To be announced
Toronto (Richmond Hill), Canada (6)		710,000		$	190.7	$	155.7			2011	Mixed-Use	To be announced


Wholly Owned Development Totals		9,780,431		$	1,735.7	$	1,374.7


(1)		Includes square footage not owned by the Company.

(2)		The asset is being developed with DBI which has a 50% interest.

(3)		Project cost does not include a $22.4 million payment to DBI to purchase its 50% interest in the project.

(4)		The asset is being developed with SKW Grayslake, LLC which has a 50% interest.

(5)		The asset is being developed with AFS Puerto Rico which has a 20% interest.

(6)		The asset is being developed with Rice Commercial Group which has a 50% interest in the project.

Consolidated and Wholly Owned Developments 4.4

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Joint Venture Development Projects
for the Nine-Month Period Ended September 30, 2007


				DDR’s				Estimated		Estimated		DDR’s		Estimated
				Effective			Joint	Gross		Net		Proportionate		Substantial
	Total			Ownership			Venture	Cost		Cost		Cost		Completion
*Projects in Progress*	GLA			Partner			Percentage	(Millions)		(Millions)		(Millions)		Date		Description	Major Tenants

Kansas City (Merriam), KS		280,516	(1)		20.0	%	Coventry II	$	71.0	$	46.8	$	9.4		2008	Community Center	To be announced.

Detroit (Bloomfield Hills), MI		882,197			10.0	%	Coventry II/BP 1, LLC	$	335.6	$	192.5	$	19.3		2008 — 2009	Lifestyle Center	Blue Point Ocean Grill, Bar Louie, BCBG, BCBG Girls, PacSun, Faro Design, Hyde Park Steakhouse, Orvis and other retail tenants and restaurants to be announced.

Dallas (Allen), TX		831,413	(1)		10.0	%	Coventry II/Trademark Property Company	$	207.5	$	171.2	$	17.1		2008	Lifestyle Center	Market Street United, P.F. Changs, Eddie Bauer, Francesca’s Collection, Origins, Ann Taylor Loft, Borders, Brio, Devon Seafood Grill, Jos. A. Bank, Mi Cocina, Wachovia, Sweet and Sassy and other retail tenants and restaurants to be announced.

Manaus, Brazil		477,630			47.2	%	Sonae Sierra	$	95.7	$	82.6	$	39.0		2009	Enclosed Mall	To be announced.

*Projects to Commence Construction*
Uberlandia, Brazil		350,000			47.2	%	Sonae Sierra	$	69.9	$	60.2	$	28.4		2009	Enclosed Mall	To be announced.


Joint Venture Development Totals		2,821,756						$	779.7	$	553.3	$	113.1


Notes:

(1)		Includes square footage which will not be owned by the Company.

Joint Venture Developments 4.4

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Development Assets Placed in Service

as of September 30, 2007


			Joint Venture Assets
	Wholly-Owned and				DDR’s
	Consolidated				Proportionate
	Assets		Total		Share
Date	(Millions)		(Millions)		(Millions)
As of December 31, 2006	$	47.0	$	0.0	$	0.0
1st Quarter 2007	$	75.2	$	0.0	$	0.0
2nd Quarter 2007	$	0.0	$	0.0	$	0.0
3rd Quarter 2007	$	27.3	$	0.0	$	0.0
4th Quarter 2007	$	57.3	$	4.0	$	0.4
Projected Thereafter	$	1,167.9	$	549.3	$	112.7

Total	$	1,374.7	$	553.3	$	113.1

Development Funding Schedule

as of September 30, 2007


			Joint Venture Funding
	Wholly-Owned and		DDR’s		JV Partners’		Proceeds from
	Consolidated		Proportionate		Proportionate		Construction		Total
	Funding		Share		Share		Loans		JV Funding
	(Millions)		(Millions)		(Millions)		(Millions)		(Millions)
Funded as of September 30, 2007	$	623.1	$	22.2	$	71.1	$	91.5	$	184.8
Projected Net Funding During 2007	$	107.2		11.5		18.2		17.7	$	47.4
Projected Net Funding Thereafter	$	644.4		57.5		81.1		182.5	$	321.1

Total	$	1,374.7	$	91.2	$	170.4	$	291.7	$	553.3

Consolidated and Joint Venture Development Delivery and Funding Schedules 4.5

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Significant Wholly-Owned and Consolidated
Expansion and Redevelopment Projects
for the Nine-Month Period Ended September 30, 2007


*Projects Completed*

Hamilton, NJ	Expansion of the shopping center to construct a 18,000 sf Old Navy (opened 8/07) and 4,500 sf Bombay Company.

Ft. Union, UT	Demise of former Mervyns to accommodate 30,548 sf Ross Dress for Less (opened 10/06), 16,975 sf DSW (opened 11/06), 23,400 sf Michael’s (opened 3/07) and retail shops.


Total Gross Cost (Millions)	$	32.9

Total Net Cost (Millions)	$	32.9


*Projects in Progress*

Miami (Plantation), FL	Redevelopment of shopping center to include Kohl’s and other junior anchor tenants.

Chesterfield, MI	Sportsman Warehouse, Dollar Galaxy (opened 8/07) and 20,300 sf of small shop retail and additional retail space to be announced.

Olean, NY	Relocate two tenants to accommodate Wal-Mart expansion to a Supercenter.

Fayetteville, NC	Reconfigure 18,000 sf of in-line space. Construct multi-tenant outparcel building.

Akron (Stow), OH	Recapture 116,000 sf Kmart and release to junior anchor stores. Create outparcels.

Dayton (Huber Hts.), OH	Expansion of the shopping center to construct a 45,000 sf junior anchor.


Total Gross Cost (Millions)	$	117.4

Total Net Cost (Millions)	$	114.6


*Projects to Commence Construction*

Hatillo, PR		Expansion of the shopping center to accommodate a 21,000 sf junior anchor.

San Juan (Bayamon), PR (Plaza Del Sol)		144,000 sf expansion of the mall to accommodate two junior anchors and additional shop space.

Dallas (McKinney), TX		Construction of 87,757 sf retail shops and outparcels.

Wholly-Owned Expansions and Redevelopments 4.6

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Significant Joint Venture Expansion and Redevelopment Projects
for the Nine-Month Period Ended September 30, 2007


	DDR’s				Joint
	Ownership				Venture
*Projects in Progress*	Percentage				Partner	Description

Phoenix, AZ		20.00	%		Coventry II	Relocation of several existing mall tenants to accommodate a new JC Penney, the relocation of Harkins Theatre (both opened 3rd quarter 2007) for a new Super Target (opened 10/07) as well as several new junior anchors and other retail tenants to be announced.
Buena Park, CA		20.00	%		Coventry II	Construction of Steve and Barry’s (opened 2/06), 24 Hour Fitness (opened 3rd quarter 2007) and redevelopment of the lower level of the mall for several tenants to be announced.
Los Angeles (Lancaster), CA		21.00	%		Prudential Real Estate Investors	Relocate existing Wal-Mart to the area previously occupied by 99 Cent Store (relocated), House to Home and Costco (which were demolished) for development of a Wal-Mart Supercenter (opened 7/07). Will recapture and redemise the former Wal-Mart for four junior anchors and three outparcels when Wal-Mart vacates.
Chicago (Deer Park), IL		25.75	%		Prudential Real Estate Investors	Approximately eight acres of land to be developed, which was sold to Grace Community, retenanting of vacant shop space with a 23,000 sf Crate & Barrel (opened 8/07), and construction of a 13,500 sf multi-tenant outparcel building.
Benton Harbor, MI		20.00	%		Coventry II	Expansion of the existing shopping center to include an 89,000 sf Kohl’s (opened 10/06), a 20,087 sf PETsMART (scheduled to open 4th quarter 2007) and additional retail tenants to be announced.
Kansas City, MO		20.00	%		Coventry II	Relocation of several small shop tenants in the shopping center to accommodate PETsMART (opened 7/05), Old Navy (opened 9/05), Steve and Barry’s (opened 11/06), Staples (scheduled to open 2nd quarter 2008) and additional mid-size anchors and other retail tenants to be announced.
Cincinnati, OH		18.00	%		Coventry II/ Thor Equities	Redevelopment of the former JC Penney store to include Ethan Allen and several other new retail tenants and restaurants to be announced.


Total Gross Cost (Millions)	$	577.1		(1)

Total Net Cost (Millions)	$	549.0		(1)


*Projects to Commence*

Seattle (Kirkland), WA		20.00	%		Coventry II	Large-scale redevelopment to include the relocation of several existing tenants, plus an expansion of the existing center to create additional GLA for two anchors, junior anchors, a theater, small shops and restaurants to be announced.
Sao Paulo (Sao Bernardo de Campo), Brazil		47.20	%		Sonae Sierra	Expansion and renovation of existing mall to accommodate theater tenant and redesign of the food court.


Notes:

(1)		Total Cost includes the acquisition costs for the Coventry II redevelopments.

Joint Venture Expansions and Redevelopments 4.6

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2007

Largest Tenants by GLA and Base Rental Revenues ^{(1) (2)}


			% of
	Owned		Total			Credit Ratings		Base Rental		% of Total			Credit Ratings
Major Tenant (units)	GLA		GLA			(S&P/Moody’s)	Major Tenant (units)	Rev. ($M)		Base Rent			(S&P/Moody’s)

1. Wal-Mart / Sam’s Club (46)		5.0		7.4	%	AA / Aa2	1. Wal-Mart / Sam’s Club (46)	$	32.1		4.4	%	AA / Aa2
2. Lowe’s Home Improvement (22)		2.2		3.3	%	A+ / A2	2. PETsMART (102)	$	14.3		2.0	%	BB / Ba2
3. Kmart / Sears (30)		1.8		2.7	%	BBB / Ba1	3. Lowe’s Home Improvement (22)	$	14.2		2.0	%	A+ / A2
4. T.J. Maxx /Marshall’s (96)		1.6		2.3	%	A / A3	4. T.J. Maxx /Marshalls (96)	$	13.8		1.9	%	A / A3
5. Mervyns (39)		1.5		2.2	%	NR / NR	5. Bed Bath & Beyond (60)	$	11.8		1.6	%	BBB / NR
6. Kohl’s (37)		1.4		2.1	%	BBB+ / A3	6. Circuit City (41)	$	11.1		1.5	%	NR / NR
7. PETsMART (102)		1.1		1.7	%	BB / Ba2	7. Tops Markets (29)	$	10.2		1.4	%	BB+ / Ba1
8. Home Depot (13)		1.0		1.6	%	BBB+ / Aa3	8. Kohl’s (37)	$	9.8		1.4	%	BBB+ / A3
9. Kroger (39)		1.0		1.5	%	BBB- / Baa2	9. Michael’s (74)	$	9.8		1.3	%	B- / B2
10. Target (10)		1.0		1.5	%	A+ / A1	10. Eckerd Drug (40)	$	9.8		1.3	%	NR / NR

Subtotal 1-10		17.6		26.4	%		Subtotal 1-10	$	136.8		18.8	%

Total Portfolio		66.8		100.0	%		Total Portfolio	$	726.5		100.0	%


(1)		Does not include developments in process.

(2)		Based on pro rata ownership of Joint Venture properties.

Portfolio Summary 5.0

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Consolidated Debt
as of September 30, 2007


		Mortgage			Maturity		Interest
		Balance(000’s)			Date		Rate (1)
SENIOR DEBT:

Unsecured Credit Facilities:
$1.2 Billion Revolving Credit Facility		$	625,000	(2)		06/10		5.814
$60 Million Revolving Credit Facility			0			06/10	NA

Secured Credit Facility:
$550 Million Term Loan			550,000	(3)		02/11		5.713

Total Term and Credit Facility Debt			1,175,000

PUBLIC DEBT:
Medium Term Notes	F		2,000			12/07		6.960
Medium Term Notes	F		99,991			01/08		6.625
Medium Term Notes	F		274,695			01/09		3.875
Medium Term Notes	F		199,800			05/10		5.000
Medium Term Notes	F		299,809			07/10		4.625
Medium Term Notes	F		249,461			04/11		5.250
Convertible Notes	F		250,000	(4)		08/11		3.500
Convertible Notes	F		600,000	(5)		03/12		3.000
Medium Term Notes	F		348,790			10/12		5.375
Medium Term Notes	F		199,457			05/15		5.500
Medium Term Notes	F		100,000			07/18		7.500

Total Public Debt			2,624,003

MORTGAGE DEBT:
Route 22 Retail SC, Union, NJ	F		10,660			01/08		7.490
440 Commons, Jersey City, NJ	F		9,875			02/08		4.510
Tupelo, MS	F		10,932			03/08		4.410
Jacksonville, FL	F		6,273			03/08		4.410
Solon, OH	F		15,144			03/08		4.410
N. Charleston, SC	F		10,843			03/08		4.410
Walker, MI	F		7,975			03/08		4.410
Mt. Pleasant, SC	F		7,348			03/08		4.410
Meridian, ID	F		23,746			03/08		4.410
Birmingham, AL	F		25,718			03/08		4.410
Wilmington, NC	F		19,714			03/08		4.410
Durham, NC	F		6,721			03/08		4.410
DDR MDT MV, LLC	V		45,923	(6)		10/08		5.844
Glenmark Ctr, Morgantown, WV	F		7,000			10/08		4.775
Bi-Lo — Shelmore, Mt Pleasant, SC	F		6,350			10/08		4.775
Loisdale Center, Springfield, VA	F		15,950			12/08		4.580
Cascade Marketplace, Sterling, VA	F		9,240			12/08		4.510
Kyle, TX	V		19,920	(7)		12/08		6.624
Schertz, TX	V		6,480	(7)		01/09		6.624
Silver Springs, MD (Tech 29-1)	F		6,416			02/09		7.330
Middletown Village, Middletown, RI	F		10,000			02/09		4.531

Summary of Consolidated Debt 6.1

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Consolidated Debt
as of September 30, 2007 (con’t)

Mortgage

Maturity

Interest

Balance(000’s)

Date

Rate (1)

Abernathy Square, Atlanta, GA

13,392

03/09

6.285

Shoppes at Wendover Village, Greensboro, NC

5,450

06/09

4.222

Leawood, KS

48,157

07/09

7.310

Mill Pond Village, Cary, NC

8,500

07/09

4.758

Adams Farm, Greensboro, NC

6,700

08/09

4.652

Martinsville, VA

19,257

12/09

8.460

Plant City Crossing, Plant City, FL

5,900

05/10

4.700

Brick Ctr Plaza, Brick, NJ

10,300

06/10

4.375

Windsor Court SC, Windsor, CT

8,015

06/10

4.390

Edgewater Town Ctr, Edgewater, NJ

14,000

06/10

4.685

Valley Park Commons, Hagerstown, MD

6,770

07/10

4.440

East Hanover Plaza, East Hanover, NJ

9,280

07/10

4.685

Sony Theatre, East Hanover, NJ

6,445

07/10

4.685

Oakley Plaza, Asheville, NC

5,175

08/10

4.290

Deer Valley — Phoenix, AZ

17,021

09/10

8.010

Capital Crossing, Raleigh, NC

5,478

09/10

4.300

Downtown Short Pump, Richmond, VA

18,480

09/10

4.900

DDR MDT MV, LLC

212,550

(6)

10/10

5.211

Tequesta Shops Plaza, Tequesta, FL

5,200

10/10

5.300

Shops on the Circle, Dothan, AL

11,606

11/10

7.920

Big Flats, NY (Big Flats I)

7,068

12/10

8.011

Plattsburgh, NY

6,901

12/10

8.000

Denbigh Village, Newport News, VA

11,457

12/10

4.940

Camfield Corners, Charlotte, NC

5,150

12/10

5.040

Erie, PA

24,789

04/11

6.884

Erie, PA

2,862

04/11

6.884

Boardman, OH

25,746

04/11

6.884

St. Louis, MO (Sunset)

33,376

04/11

6.884

St. Louis, MO (Brentwood)

24,789

04/11

6.884

Denver, CO (Centennial)

37,187

04/11

6.884

Indian Train, NC (Union TC Ph I)

6,760

10/11

7.000

Gates, NY (Westgate)

24,214

10/11

7.240

Ashtabula, OH

6,732

12/11

7.000

Phoenix, AZ (Paradise Valley)

30,000

(8)

03/12

5.385

Denver, CO (Univ Hills)

27,350

07/12

7.300

St. Louis, MO (Gravois)

892

07/12

8.625

N. Charleston, SC

10,303

07/12

7.370

Cortez Plaza, Bradenton, FL

12,784

07/12

7.150

Duvall Village, Bowie, MD

8,681

10/12

7.040

Walgreen’s — Rockford, IL

3,223

11/12

4.863

Walgreen’s — Dearborn Hts, MI

3,550

11/12

4.863

Walgreen’s — Livonia, MI

2,477

11/12

4.863

Mooresville, NC

23,266

12/12

6.930

Big Flats, NY (Big Flats IV)

914

01/13

7.600

Summary of Consolidated Debt 6.1

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Consolidated Debt
as of September 30, 2007 (con’t)


		Mortgage		Maturity		Interest
		Balance(000’s)		Date		Rate (1)
Big Flats, NY (Big Flats II & III)	F	$	3,572		01/13		8.010
Buffalo, NY (Delaware Commons)	F		896		01/13		6.960
Walgreen’s — Oshkosh, WI	F		2,817		02/13		4.863
Walgreen’s — Westland, MI	F		2,625		03/13		4.863
Victor, NY (Victor Square)	F		6,429		04/13		5.800
Mays Landing, NJ (Wrangleboro)	F		46,458		05/13		6.990
Beachwood, OH	F		2,897		07/13		7.640
W. Long Branch, NJ (Monmouth)	F		11,625		07/13		8.570
Englewood, FL (Rotonda)	F		1,663		07/13		5.800
Reno, NV	V		3,416		02/15		9.000
Olean, NY	F		4,145		07/15		8.995
Mays Landing, NJ (Hamilton)	F		13,084		09/15		4.700
Columbus, OH (Consumer II West)	F		13,178		11/15		10.188
Amherst, NY (Kmart/Blvd Cons. II)	F		10,937		11/15		7.850
Lockport, NY (Wal-Mart/Tops)	F		11,389		01/16		8.000
Merriam, KS (TIF)	F		5,975		02/16		6.900
Rome, NY (Freedom)	F		3,963		09/16		7.850
Amherst, NY (Tops Transit + French)	F		4,658		12/16		7.680
Cheektowaga, NY (Wal-Mart Thruway)	F		4,463		10/17		6.780
Ithaca, NY	F		17,433		01/18		7.050
Amherst, NY (Target/Blvd Cons. II)	F		12,256		07/18		5.670
Niskayuna, NY (Mohawk)	F		22,662		12/18		5.750
Henderson, TN	F		8,260		01/19		7.660
Spring Hill, FL	F		4,802		09/19		9.750
Cedar Rapids, IA	F		9,124		01/20		9.375
Plainville, CT	F		6,845		04/21		7.125
Allentown, PA	F		16,847		07/21		6.950
Bayamon, PR (Rio Hondo)	F		55,053		05/28		7.180
San Juan, PR (Senorial Plaza)	F		14,296		05/28		7.180
Bayamon, PR (Rexville Plaza)	F		8,613		05/28		7.180
Arecibo, PR (Atlantico)	F		14,385		05/28		7.180



Total Mortgage Debt			1,405,143


Total Consolidated Debt		$	5,204,146


						Wtd. Avg.
				Wtd. Avg. Maturity		Interest Rate

Fixed Rate		$	4,553,407	4.14 years			5.1	%
Variable Rate		$	650,739	2.57 years			5.9	%

		$	5,204,146	3.94 years			5.2	%

Summary of Consolidated Debt 6.1

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Consolidated Debt
as of September 30, 2007 (con’t)


CUMULATIVE REDEEMABLE PREFERRED SHARES	Outstanding Amount		First Call Date
Class G - 8.0%	$	180,000	March 28, 2008
Class H - 7.375%	$	205,000	July 28, 2008
Class I - 7.5%	$	170,000	May 7, 2009

Notes:

F — Fixed Rate Debt V — Variable Rate Debt

	1.		Interest rate figures reflect coupon rates of interest and do not include discounts or premiums. Annualized 2007 deferred finance cost amortization of approximately $10.2 million, net is offset by approximately $7.8 million of annualized fair market value adjustments in 2007.

	2.		The LIBOR rate on $100 million of the $1.2 billion Revolving Credit Facility has been fixed at 4.942% through September 2010 via an interest rate swap. The spread on this $100 million borrowing was 0.476 % at September 30, 2007 resulting in a fixed rate of 5.418% on this borrowing.

	3.		Secured term loan debt of $200 million has been converted to a fixed rate of 5.85% until June 28, 2010. Secured term loan debt of $100 million has been converted to a fixed rate of 5.63%. Secured term loan debt of $50 million has been converted to a fixed rate of 5.66%, and $50 million has been converted to a fixed rate of 5.67% until October 18, 2009. Secured term loan debt of $100 million has been converted to a fixed rate of 5.515% until February 20, 2012. The weighted average rate of all tranches, reflecting the rates fixed by interest rate swaps is 5.713%.

	4.		The convertible notes may be net settled with DDR’s common stock once the stock price rises above $65.11 per share, however, this conversion price has been increased to $74.41 per share through the purchase of a convertible note hedge. The principal balance on these notes is to be settled in cash.

	5.		The convertible notes may be net settled with DDR’s common stock once the stock price rises above $74.75 per share however, this conversion price has been increased to $87.21 per share through the purchase of a convertible note hedge. The principal balance on these notes is to be settled in cash.

	6.		The company’s 50% Joint Venture with DDR Macquarie is consolidated within DDR’s accounts pursuant to FIN 46.

	7.		The company’s 50% Joint Venture with David Berndt Interests is consolidated within DDR’s accounts pursuant to FIN 46.

	8.		The company’s 67% Joint Venture with Shea and Tatum Associates is consolidated within DDR’s accounts pursuant to EITF 04-05.

Summary of Consolidated Debt 6.1

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Joint Venture Debt
as of September 30, 2007

Mortgage

Property/Entity

Balance (000’s)

Maturity Date

Interest Rate

RVIP III B

Deer Park, IL

60,000

10/11

5.590

RVIP VII

72,120

(1)

04/08

Libor + 95

RVIP VIII

23,356

01/09

Libor + 100

DPG Realty Holdings, LLC

Tonawanda, NY

5,488

05/17

7.630

Tonawanda, NY

4,899

06/21

7.660

DDRA Community Centers Five

280,000

(2)

08/10

5.295

Lennox Town Center Limited

1,000

06/17

6.440

Columbus, OH

26,000

06/17

5.640

Sun Center Limited

6,020

05/11

5.420

Columbus, OH

13,590

04/11

8.480

DOTRS LLC

Macedonia, OH

21,000

08/11

6.050

Jefferson County Plaza, LLC

Arnold, MO

3,749

08/08

Libor + 175

DDR Markaz II

150,480

(3)

11/14

5.147

Coventry II DDR Bloomfield

48,000

12/07

Libor + 110

Coventry II DDR Buena Park

61,000

03/10

Libor + 115

Coventry II DDR Fairplain

16,000

12/07

Libor + 95

Coventry II DDR Marley Creek

10,750

07/10

Libor + 125

Coventry II DDR Merriam Village

18,539

06/08

Libor + 150

Coventry II DDR Montgomery Farm

25,000

07/10

Libor + 150

Coventry II DDR Phoenix Spectrum

46,000

01/09

Libor + 70

Coventry II DDR SM

84,725

01/08

Libor + 70

32,695

01/08

Libor + 195.7

Coventry II DDR Totem Lakes

21,000

12/07

Libor + 110

Coventry II DDR Tri County

156,931

02/15

5.655

11,919

02/15

10.304

Coventry II DDR Ward Parkway

36,000

08/08

Libor + 125

Coventry II DDR Westover Marketplace

19,845

07/09

Libor + 125

Summary of Joint Venture Debt 6.2

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Joint Venture Debt

as of September 30, 2007 (con’t)

Mortgage

Property/Entity

Balance (000’s)

Maturity Date

Interest Rate

DDRTC Core Retail Fund, LLC

DDRTC Holdings Pool 1, LLC

736,559

(4)

03/17

5.4475

DDRTC Holdings Pool 3, LLC

555,034

(5)

03/12

5.480

DDRTC Holdings Pool 5, LLC

197,300

(6)

02/10

Libor + 65

DDRTC Holdings Pool 6, LLC

Walks at Highwood Preserve I & II

3,700

05/09

4.372

Aiken Exchange

7,350

05/09

4.372

Oak Summit

8,200

06/09

4.272

Wytheville Commons

5,590

06/09

4.302

Heritage Pavilion

21,500

07/09

4.460

Columbiana Station

25,900

05/10

4.040

Warwick Center

16,939

06/10

4.130

Fayette Pavilion I & II

53,250

07/10

5.620

North Hill Commons

2,475

11/10

5.240

Cox Creek Shopping Center

14,464

03/12

7.090

Cypress Trace

16,000

04/12

5.000

Waterfront Marketplace

29,568

08/12

6.350

Waterfront Town Center

38,954

08/12

6.350

Creeks at Virginia Center

26,289

08/12

6.370

Willoughby Hills Shopping Center

14,480

06/18

6.980

Inland SAU Retail Fund, LLC

Blockbuster

993

10/10

4.890

Cascade Crossing

4,954

10/10

4.890

Hickory Flat Village

8,689

10/10

4.890

Flat Shoals Crossing

6,063

10/10

4.760

Deshon Plaza

6,038

10/10

4.760

Shops at John’s Creek

2,762

10/10

4.890

Waynesboro Commons

3,178

10/10

4.890

Brookhaven

10,397

12/10

4.890

Lewandowski Commons

12,465

03/11

5.770

South Square

12,597

10/12

5.060

North Hampton Market (Phase I & II)

10,501

10/12

5.080

The Point

15,800

10/12

5.640

Oakland Market Place

3,560

10/12

5.040

Crossroads Square

4,869

12/12

5.310

Cascade Corners

3,979

12/12

5.420

Hilander Village

9,404

12/12

5.410

Glenlake Plaza

8,234

12/12

5.440

Broadmoor Plaza

11,048

12/12

5.440

Milan Plaza

2,161

12/12

5.490

West Towne Commons

4,797

12/12

5.440

American Way

6,662

12/12

5.440

Kroger Junction

3,827

12/12

5.440

Kroger Plaza

1,806

12/12

5.440

Willowbrook Commons

6,998

03/13

5.410

Shoppes at Wendover II

14,382

04/13

5.060

Harper Hill Commons

10,350

04/13

5.790

Plaza at Carolina Forest

14,203

05/13

5.970

Alexander Pointe

5,129

08/13

5.920

Patterson Place

20,338

12/13

5.670

Summary of Joint Venture Debt 6.2

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Joint Venture Debt

as of September 30, 2007 (con’t)


		Mortgage
Property/Entity		Balance (000’s)			Maturity Date		Interest Rate
DDR Domestic Retail Fund I
DDR Domestic Retail Fund I	F	$	885,000	(7)		07/17		5.600
Paradise Promenade, Davie, FL	F		6,400			06/09		4.322
Village Ctr, Racine, WI	F		13,200			04/10		4.440
West Falls Plaza, West Patterson, NJ	F		11,075			06/10		4.685
Southampton Village, Tyrone, GA	F		6,700			05/11		4.663
Village Center Outlot, Racine, WI	F		2,070			07/11		5.170
Center Pointe Plaza, Easley, SC	F		4,250			08/11		5.320
Shoppes on the Ridge, Lake Wales, FL	F		9,628			12/11		4.740
Publix Brooker Creek, Palm Harbor, FL	F		5,000			12/11		4.610
Watercolor Crossing, Santa Rosa, FL	F		4,355			01/12		4.760
Heather Island Plaza, Ocala, FL	F		6,155			12/12		5.001
Hilliard Rome, Columbus, OH	F		11,265			01/13		5.870
Boynton Beach, FL (Meadows Square)	F		3,571			07/13		6.720

TRT DDR Holdings I LLC	F		110,000	(8)		05/17		5.510

DDR MDT PS, LLC	F		86,000	(9)		07/13		6.004

DDR Macquarie (10)
$305 Million Revolving Credit Facility	V		229,900	(11)		04/10	Libor + 40
	F		9,100	(11)		04/10		3.938
	F		20,000	(11)		04/10		4.360

Secured Portfolio Financing	F		290,500	(12)		12/08		4.225
	V		50,000	(12)		12/08	Libor + 130
	F		165,250	(13)		06/09		4.180
	V		7,660	(13)		06/08	Libor + 84

BJ’s Clarence	F		4,574			03/22		7.070
Joann Transit	F		2,660			08/13		6.250
New Hartford Consumer Square	F		32,789			11/18		5.750
Birmingham, AL (Riverchase)	F		7,661			01/13		5.500

DDR Macquarie Longhorn Holdings	F		85,000	(14)		01/12		4.910

DDR Macquarie Longhorn Holdings II	F		157,250	(15)		04/10		4.822
	V		3,570	(15)		04/10	Libor + 85

DDR Macquarie Longhorn Holdings III	F	$	39,300	(16)		04/10		5.098


Total		$	5,525,724


					Wtd. Avg.		Wtd. Avg.
					Maturity		Interest Rate

Total Joint Venture Debt:
Fixed Rate		$	4,518,515		6.14 years			5.3%
Variable Rate		$	1,007,208		1.61 years			6.0%


		$	5,525,724		5.31 years			5.5%


DDR’s Proportionate Share:
Fixed Rate		$	860,927
Variable Rate		$	168,365

		$	1,029,292

Summary of Joint Venture Debt 6.2

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Notes:


(1) Encumbers two shopping center properties located in California.

(2) Encumbers five shopping center properties as follows:
	Ahwatukee, AZ	Maple Grove, MN		Eagan, MN
	Phoenix, AZ	Portland, OR

(3) Encumbers thirteen shopping center properties as follows:
	Orchard Park, NY	Warsaw, NY		Chillicothe, OH
	Rochester, NY	Leroy, NY		Loganville, GA
	Cheektowaga, NY	Jamestown, NY		Oxford, MS
	Amherst, NY	Ontario, NY		Goodlettsville, TN
	Irondequoit, NY

(4) Encumbers twenty five shopping center properties as follows:
	Anderson Central (Anderson, SC)		Barrett Pavilion (Kennesaw, GA)
	Boynton Commons (Boynton Beach, FL)		City Crossing (Warner Robins, GA)
	Fayette Pavilion III & IV (Fayetteville, GA)		Gateway Market Center (St. Petersburg, FL)
	Gateway Plaza (Jacksonville, NC)		Hiram Pavilion (Hiram, GA)
	Marketplace at Mill Creek (Buford, GA)		Overlook at King of Prussia (King of Prussia, PA)
	Sand Lake Corners (Orlando, FL)		Paradise Place (West Palm Beach, FL)
	Stonecrest Marketplace (Lithonia, GA)		Pleasant Hill (Duluth, GA)
	Universal Plaza (Lauderhill, FL)		River Ridge (Birmingham, AL)
	Venture Pointe (Duluth, GA)		Sarasota Pavilion (Sarasota, FL)
	Ward’s Crossing (Lynchburg, VA)		Sycamore Commons (Matthews, NC)
	Winslow Bay Commons (Mooresville, NC)		Bartow Marketplace (Cartersville, GA)
	Woodstock Square (Woodstock, GA)		Columbiana Station II (Columbia, SC)
	Market Place (Ft. Myers, FL)

(5) Encumbers seventeen shopping center properties as follows:
	Bellevue Place (Nashville, TN)		Village Crossing (Skokie, IL)
	Capital Plaza (Wake Forest, NC)		Birkdale Village Retail & Apts (Huntersville, NC)
	Carlisle Commons (Carlisle, PA)		CompUSA Retail Center (Newport News, VA)
	Chesterfield Crossings (Richmond, VA)		Douglasville Pavilion (Douglasville, GA)
	Commonwealth Center II (Richmond, VA)		Stonebridge Square (Roswell, GA)
	Costco Plaza (White Marsh, MD)		Town & Country (Knoxville, TN)
	Naugatuck Valley Shopping Center (Waterbury, CT)		Turkey Creek I (Knoxville, TN)
	Newnan Pavilion (Newnan, GA)		Walks at Highwood Preserve I (Tampa, FL)
	Suwannee Crossroads (Suwannee, GA)

(6) Encumbers twelve shopping center properties as follows:
	Westside Centre (Huntsville, AL)		Chatham Crossing (Siler City, NC)
	McFarland Plaza (Tuscaloosa, AL)		Southern Pines Marketplace (Southern Pines, NC)
	Circuit City Plaza (Orlando, FL)		Alexander Place (Raleigh, NC)
	Shoppes at Lake Mary (Lake Mary, FL)		Target Center (Columbia, SC)
	Eisenhower Crossing I & II (Macon, GA)		Hillsboro Square (Deerfield Beach, FL)
	Southlake Pavilion (Morrow, GA)
	Goody’s Shopping Center (Augusta, GA)

(7) Encumbers fifty two shopping center properties as follows:
	Aberdeen Square (Boynton Beach, FL)		Harundale Plaza (Glen Burnie, MD)
	Creekwood Crossing (Bradenton, FL)		Largo Town Center (Upper Marlboro, MD)
	Northlake Commons (Palm Beach Gardens, FL)		Fayetteville Pavilion (Fayetteville, NC)
	Riverstone Plaza (Canton, GA)		Crossroads Plaza (Philadelphia, PA)
	Casselberry Commons (Casselberry, FL)		Village Square at Golf (Boynton Beach, FL)
	Bardmoor Shopping Center (Largo, FL)		Lakewood Ranch (Bradenton, FL)
	Melbourne Shopping Center (Melbourne, FL)		Crystal Springs Shopping Center (Crystal River, FL)
	West Oaks Towne Center (Orlando, FL)		Sheridan Square (Dania, FL)
	Skyview Plaza (Orlando, FL)		Shoppes at Paradise Pointe (Fort Walton Beach, FL)
	Midway Plaza (Tamarac, FL)		Citrus Hills (Hernando, FL)
	Shoppes at New Tampa (Wesley Chapel, FL)		Paraiso Plaza (Hialeah, FL)
	Market Square (Douglasville, GA)		Plaza Del Paraiso (Miami, FL)
	Riverdale Shops (West Springfield, MA)		River Run (Miramar, FL)

Summary of Joint Venture Debt 6.2

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the nine-months ended September 30, 2007



Notes: (con’t)

(7) Encumbers fifty two shopping center properties as follows: (con’t)
	Countryside (Naples, FL)		Meadowmont Village Center (Chapel Hill, NC)
	Shoppes of Golden Acres (New Port Richey, FL)		Clayton Corners (Clayton, NC)
	Conway Plaza (Orlando, FL)		Sexton Commons (Fuquay Varina, NC)
	Chickasaw Trails Shopping Center (Orlando, FL)		Rosedale Shopping Center (Huntersville, NC)
	Flamingo Falls (Pembroke Pines, FL)		Shops at Oliver’s Crossing (Winston-Salem, NC)
	Killearn Shopping Center (Tallahassee, FL)		Cofer Crossing (Tucker, GA)
	Southwood Plantation (Tallahassee, FL)		Oviedo Park Crossing (Oviedo, FL)
	Shoppes of Lithia (Valrico, FL)		Hilltop Plaza (Richmond, CA)
	Sharon Greens (Cumming, GA)		Springfield Commons (Toledo, OH)
	Hairston Crossing (Decatur, GA)		Derby Square (Grove City, OH)
	Shoppes of Ellenwood (Ellenwood, GA)		North Pointe Plaza (Tampa, FL)
	Clearwater Crossing (Flowery Branch, GA)		Highland Grove (Highland, IN)
	Shoppes at Lake Dow (McDonough, GA)		Apple Blossom Corners (Winchester, VA)

(8) Encumbers three shopping center properties as follows:
	Centerton Square (Mt. Laurel, NJ)		Beaver Creek Commons (Apex, NC)
	Mt. Nebo Pointe (Pittsburgh, PA)

(9) Encumbers seven shopping center properties as follows:
	Shops at Turner Hill (Lithonia, GA)		McKinney Marketplace (McKinney, TX)
	Turner Hill Marketplace (Lithonia, GA)		Marketplace at Town Center (Mesquite, TX)
	Flatacres Marketcenter (Parker, CO)		Frisco Marketplace (Frisco, TX)
	Overland Pointe Marketplace (Overland Park, KS)

(10) The company’s 50% Joint Venture associated with the Mervyns Portfolio acquisition is not reflected below as it is consolidated within DDR’s accounts pursuant to FIN 46.

(11) Encumbers ten shopping center properties as follows:
	Canton, OH	St. Paul, MN		North Olmsted, OH
	Brentwood, TN	Monaca, PA		Coon Rapids, MN
	Merriam, KS	Plant City, FL		Winter Park, FL
	Apopka, FL

(12) Encumbers seven shopping center properties as follows:
	Independence, MO	Framingham, MA		Fairfax, VA
	Schaumburg, IL	Atlanta, GA		Naples, FL
	Marietta, GA

(13) Encumbers eight shopping center properties as follows:
	Clarence, NY	Fayetteville, AR		Nashville, TN
	Cheektowaga, NY	Erie, PA		Ashville, NC
	Batavia, NY	Murfreesboro, TN

(14) Encumbers four shopping center properties as follows:
	Pioneer Hills (Aurora, CO)		Harbison Court (Columbia, SC)
	MacArthur Marketplace (Irving, TX)		Lakepointe Crossing (Lewisville, TX)

(15) Encumbers seven shopping center properties as follows:
	Plainville Commons (Plainville, CT)		Shoppers World of Brookfield (Brookfield, WI)
	Riverdale Village (Coon Rapids, MN)		Brown Deer Center (Brown Deer, WI)
	Brandon Village (Brandon, FL)		Brown Deer Marketplace (Brown Deer, WI)
	Brandon Plaza (Brandon, FL)

(16) Encumbers three shopping center properties as follows:
	Grandville Marketplace (Grandville, MI)		Parker Pavilions (Parker, CO)
	McDonough Marketplace (McDonough, GA)

Amounts may differ slightly from actual results, due to rounding.

Summary of Joint Venture Debt 6.2

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Summary of Consolidated Mortgage Principal Payments, Corporate Debt Maturities
and Joint Venture Debt Payments and Maturities
as of September 30, 2007
(000’s)


	2007 Payments		2008 Payments		2009 Payments		2010 Payments		2011 Payments		2012 Payments		2013 Payments		2014 Payments		2015 Payments		2016 Payments		Thereafter		Total
CONSOLIDATED DEBT

Property Mortgages	$	7,625	$	267,308	$	144,586	$	382,662	$	202,481	$	117,254	$	85,313	$	19,409	$	29,676	$	20,468	$	101,960	$	1,378,743

Construction Loans		0		19,920		6,480		0		0		0		0		0		0		0		0		26,400

Public Debt		2,000		99,991		274,695		499,609		499,461		948,790		0		0		199,457		0		100,000		2,624,003


Subtotal		9,625		387,219		425,761		882,271		701,942		1,066,044		85,313		19,409		229,133		20,468		201,960		4,029,146

Revolving Credit Facilities & Term Loans ⁽¹⁾		0		0		0		625,000		550,000		0		0		0		0		0		0		1,175,000

Total Consolidated Debt	$	9,625	$	387,219	$	425,761	$	1,507,271	$	1,251,942	$	1,066,044	$	85,313	$	19,409	$	229,133	$	20,468	$	201,960	$	5,204,146


JOINT VENTURE DEBT

Total JV Debt	$	87,955	$	605,031	$	316,628	$	1,210,073	$	149,265	$	852,618	$	184,089	$	159,910	$	157,970	$	7,369	$	1,794,814	$	5,525,724

DDR’s Proportionate Share		12,715		103,696		51,353		282,361		49,391		133,010		18,799		31,533		28,156		1,029		317,248		1,029,292


Total Consolidated Debt & Proportionate Share JV Debt	$	22,341	$	490,916	$	477,114	$	1,789,632	$	1,301,334	$	1,199,053	$	104,112	$	50,942	$	257,289	$	21,497	$	519,208	$	6,233,438


		Notes:

(1)		Balance at September 30, 2007 on credit facilities, bridge and term loan. The $1.2 billion JPMorgan Chase facility has one one-year extension option to 2011. The $550 million Key Bank term loan has one one-year extension option to 2012. The $60 million National City Bank facility has one one-year extension option to 2011.

Amounts may differ slightly from actual results, due to rounding.

Summary of Consolidated and Joint Venture Debt Payments and Maturities 6.3

Developers Diversified Realty
Quarterly Financial Supplement
For the nine-months ended September 30, 2007

Investor Information

Research Coverage


Banc of America Securities
Christine McElroy		(212) 847-5658

Citigroup Smith Barney
Jonathan Litt		(212) 816-0231
Ambika Goel		(212) 816-6981

Deutsche Bank Securities
Lou Taylor		(212) 250-4912
Christeen Kim		(415) 617-4221

Goldman Sachs
Jay Habermann		(917) 343-4260

Green Street Advisors
Jim Sullivan		(949) 640-8780
Nick Vedder		(949) 640-8780

Hilliard Lyons
Tony Howard		(502) 588-1142

Lehman Brothers
David Harris		(212) 526-1790
David Toti		(212) 526-2002

Merrill Lynch
Steve Sakwa		(212) 449-0335
Craig Schmidt		(212) 449-1944

JP Morgan
Michael Mueller		(212) 622-6689
Greg Stuart		(212) 622-5390

Morgan Stanley
Matthew Ostrower		(212) 761-6284
Mick Chiang		(212) 761-6385

RBC Capital Markets
Rich Moore		(216) 378-7625

UBS
Jeff Spector		(212) 713-6144
Lindsay Schroll		(212) 713-3402

Wachovia Securities
Jeff Donnelly		(617) 603-4262
Robert Laquaglia		(617) 603-4280

Corporate Headquarters
3300 Enterprise Parkway
Beachwood, Ohio 44122
Phone: (216) 755-5500
Fax: (216) 755-1500
Website: www.ddr.com

Investor Relations
Michelle M. Dawson
Phone: (216) 755-5455
Email: mdawson@ddr.com


	September 30, 2007			December 31, 2006
Land	$	2,373,760		$	933,916
Buildings		6,234,496			2,788,863
Fixtures and tenant improvements		107,653			59,166
Construction in progress		139,153			157,762

		8,855,062			3,939,707
Accumulated depreciation		(363,102	)		(247,012	)

Real estate, net		8,491,960			3,692,695
Receivables, including straight-line rent, net		123,866			75,024
Leasehold interests		14,313			15,195
Other assets		388,030			132,984

	$	9,018,169		$	3,915,898


Mortgage debt (a)	$	5,525,724		$	2,495,080
Notes and accrued interest payable to DDR		8,811			4,960
Other liabilities		199,211			94,648

		5,733,746			2,594,688
Accumulated equity		3,284,423			1,321,210

	$	9,018,169		$	3,915,898


			Gross Sale
			Proceeds
Property Location	GLA		(Millions)		Sale Date
Alden, NY		67,992	$	8.9		1/30/2007
Medina, NY		80,028	$	7.1		1/30/2007
Niagara Falls, NY		117,014	$	11.4		1/30/2007
Springville, NY		105,636	$	11.5		1/30/2007
Union, SC		184,331	$	5.5		1/30/2007
Murfreesboro, TN		117,697	$	7.4		3/28/2007
Portfolio of 60 Assets		5,596,167	$	535.1	Various

Total		6,268,865	$	586.9



743		Shopping Centers and Interests in Retail Assets

12		Managed Shopping Centers

45		States
		(Plus Puerto Rico, Brazil, Russia and Canada)

117		Million Sq. Ft. Owned ⁽¹⁾

161		Million Sq. Ft. Owned and Managed ^{(1) (2)}

95.9%		Core Portfolio % Leased ⁽³⁾

788		Total Employees


(1)		Assumes 100% ownership of Joint Venture assets. Based on actual pro rata ownership of Joint Venture assets and excluding developments in process and scheduled to commence in 2007, total owned GLA was 68.2 million square feet.

(2)		Includes unowned anchors at Company-owned operating and development retail properties.

(3)		Including the Mervyns, Brazil and Inland assets, the total portfolio was 95.9% leased.



	Number of		Total Annualized Base Rent / S.F.
Period Ending	Properties		Total		Shop Space
Sep. 30, 2007		664	$	12.58	$	18.92
Dec. 31, 2006		371	$	11.75	$	17.46
Dec. 31, 2005		380	$	11.30	$	16.62
Dec. 31, 2004		373	$	11.13	$	16.14
Dec. 31, 2003		274	$	10.82	$	15.55
Dec. 31, 2002		189	$	10.58	$	15.18
Dec. 31, 2001		192	$	10.03	$	14.02
Dec. 31, 2000		190	$	9.66	$	13.66
Dec. 31, 1999		186	$	9.20	$	12.69
Dec. 31, 1998		159	$	8.99	$	12.39
Dec. 31, 1997		123	$	8.49	$	11.69
Dec. 31, 1996		112	$	7.85	$	10.87
Dec. 31, 1995		106	$	7.60	$	10.54
Dec. 31, 1994		84	$	5.89	$	9.02
Dec. 31, 1993		69	$	5.60	$	8.56
Dec. 31, 1992		53	$	5.37	$	8.37


			Anchor Base Rent									Shop Space Base Rent
			Revenues									Revenues
Year	Leases		($M)		Avg. PSF		% of Revenue			Leases		($M)		Avg. PSF		% of Revenue

2007		11	$	3.0	$	9.71		0.5	%		824	$	34.6	$	20.84		5.7	%
2008		61	$	15.6	$	6.99		2.4	%		1,602	$	74.8	$	17.12		12.4	%
2009		94	$	28.1	$	7.96		4.3	%		1,718	$	83.9	$	17.37		13.9	%
2010		125	$	40.4	$	8.56		6.1	%		1,551	$	82.0	$	18.11		13.6	%
2011		162	$	56.4	$	10.22		8.6	%		1,597	$	96.2	$	19.73		15.9	%
2012		163	$	58.6	$	8.99		8.9	%		1,226	$	80.9	$	19.95		13.4	%
2013		126	$	45.1	$	9.30		6.9	%		384	$	33.8	$	17.75		5.6	%
2014		134	$	51.8	$	9.84		7.9	%		232	$	21.3	$	18.38		3.5	%
2015		102	$	47.2	$	9.34		7.2	%		219	$	21.5	$	18.78		3.6	%
2016		113	$	51.1	$	9.56		7.8	%		202	$	21.1	$	20.30		3.5	%

2007 - 2016 Subtotal		1,091	$	397.3	$	9.17		60.4	%		9,555	$	550.1	$	18.70		91.0	%

Total Rent Roll		1,509	$	658.2	$	9.58		100.0	%		9,925	$	604.6	$	18.74		100.0	%