Investments in and Advances To Joint Ventures [Abstract]

Condensed Combined Statements of Operations of unconsolidated joint venture investments


	Three-Month Periods Ended September 30,						Nine-Month Periods Ended September 30,
	2011			2010			2011			2010
Condensed Combined Statements of Operations
Revenues from operations	$	174,735		$	160,440		$	518,279		$	479,095

Operating expenses		57,988			57,847			172,669			181,256
Impairment charges ^(B)		63,041			65			63,041			65
Depreciation and amortization		45,211			46,247			140,501			138,789
Interest expense		56,574			52,532			170,580			169,330

		222,814			156,691			546,791			489,440

(Loss) income before tax expense and discontinued operations		(48,079	)		3,749			(28,512	)		(10,345	)
Income tax expense (primarily Sonae Sierra Brasil), net		(9,434	)		(4,114	)		(26,963	)		(13,947	)

Loss from continuing operations		(57,513	)		(365	)		(55,475	)		(24,292	)
Discontinued operations:
Income (loss) from discontinued operations ^(C)		228			(7,583	)		(244	)		(19,742	)
Gain on debt forgiveness ^(D)		—			—			2,976			—
(Loss) gain on disposition of real estate, net of tax ^(E)		(593	)		(13,340	)		21,300			(25,303	)

Loss before gain on disposition of real estate, net		(57,878	)		(21,288	)		(31,443	)		(69,337	)
Gain on disposition of real estate, net		—			—			—			17

Net loss	$	(57,878	)	$	(21,288	)	$	(31,443	)	$	(69,320	)

Non-controlling interests		(6,570	)		10			(11,564	)		(253	)

Net loss attributable to unconsolidated joint ventures		(64,448	)		(21,278	)		(43,007	)		(69,573	)

Company’s share of equity in net (loss) income of joint ventures ^(F)	$	(6,199	)	$	(4,193	)	$	14,240		$	(4,362	)

(A)

Increase in cash from December 31, 2011, is primarily driven by Sonae Sierra Brasil and proceeds generated from the February 2011 initial public offering.

(B)

For the three- and nine-month periods ended September 30, 2011, impairment charges were recorded on four assets being marketed for sale of which the Company’s proportionate share was approximately $6.2 million.

(C)

For the three- and nine-month periods ended September 30, 2010, impairment charges aggregating $8.8 million and $19.7 million, respectively, were reclassified to discontinued operations.

(D)

Gain on debt forgiveness is related to one property owned by an unconsolidated joint venture that was transferred to the lender pursuant to a consensual foreclosure proceeding. The operations of the asset have been reclassified as discontinued operations in the condensed combined statements of operations presented.

(E)

For the nine months ended September 30, 2011, gain on disposition of discontinued operations includes the sale of three properties by three of the Company’s unconsolidated joint ventures. The Company’s proportionate share of the aggregate gain for the assets sold for the nine-month period ended September 30, 2011 was approximately $10.5 million.

For the nine months ended September 30, 2010, loss on disposition of discontinued operations includes the sale of 25 properties by four separate unconsolidated joint ventures, of which four were sold in the third quarter of 2010. In the fourth quarter of 2009, these joint ventures recorded impairment charges aggregating $170.9 million related to certain of these asset sales. The Company’s proportionate share of the loss on sales for the assets sold during the three- and nine-month periods ended September 30, 2010, was approximately $2.8 million and $4.1 million, respectively.

(F)

The difference between the Company’s share of net loss, as reported above, and the amounts included in the condensed consolidated statements of operations is attributable to the amortization of basis differentials, deferred gains and differences in gain (loss) on sale of certain assets due to the basis differentials and other than temporary impairment charges. The Company is not recording income or loss from those investments in which its investment basis is zero and the Company does not have the obligation or intent to fund any additional capital. Adjustments to the Company’s share of joint venture net loss for these items are reflected as follows (in millions):

Investments in and advances to joint ventures


	September 30, 2011			December 31, 2010
Company’s share of accumulated equity	$	457.2		$	480.2
Basis differentials ^(A)		(176.0	)		(147.5	)
Deferred development fees, net of portion relating to the Company’s interest		(3.5	)		(3.4	)
Notes receivable from investments		0.4			0.6
Notes and accrued interest payable to DDR ^(B)		98.5			87.3

Investments in and advances to joint ventures	$	376.6		$	417.2

(A)

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

(B)

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