Acquisitions |
In the
six-month period ended June 30, 2013, the Company acquired the
following operating shopping centers:
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Location
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Date Acquired |
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Gross
Purchase
Price
(in
millions) |
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Face Value of
Mortgage
Debt
Assumed
(in millions) |
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Tampa, FL, Atlanta, GA,
Newport News, VA and Richmond, VA (2 assets)(A)
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April 2013 |
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$ |
110.5 |
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N/A |
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Parcels adjacent to
existing shopping centers
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June 2013 |
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11.7 |
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N/A |
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Dallas, TX
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March 2013 |
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40.3 |
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N/A |
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Oakland, CA
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February 2013 |
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41.1 |
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N/A |
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(A) |
Acquired from
unconsolidated joint venture. |
The Company
accounted for these acquisitions utilizing the purchase method of
accounting. The acquisition cost of the operating shopping centers
was allocated as follows (in thousands):
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Weighted Average
Amortization Period
(in Years) |
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Land
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$ |
31,120 |
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N/A |
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Buildings
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148,566 |
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N/A |
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Tenant
improvements
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4,155 |
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N/A |
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In-place leases (including
lease origination costs and fair market value of
leases)(A)
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18,184 |
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6.3 |
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Tenant relations
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10,478 |
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5.6 |
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212,503 |
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Less: Below-market
leases
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(8,949 |
) |
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18.5 |
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Net assets
acquired
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$ |
203,554 |
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(A) |
Includes above-market value
of leases of $2.4 million. |
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Consideration:
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Cash (including debt repaid
at closing)
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$ |
187,022 |
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Fair value of previously
held equity interests
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16,532 |
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Total
consideration
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$ |
203,554 |
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The costs
related to the acquisition of these assets, which were not
material, were expensed as incurred and included in other income
(expense), net.
The following
unaudited supplemental pro forma operating data is presented for
the three- and six-month periods ended June 30, 2013 and 2012,
as if the acquisition of the interests in the properties acquired
in 2013 and 2012 was completed on January 1, 2012 (in
thousands, except per share amounts). The Gain on Change in Control
related to the acquisitions from unconsolidated joint ventures was
adjusted to the assumed acquisition date. The unaudited
supplemental pro forma operating data is not necessarily indicative
of what the actual results of operations of the Company would have
been assuming the transactions had been completed as set forth
above, nor do they purport to represent the Company’s results
of operations for future periods.
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Three-Month
Periods
Ended June 30, |
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Six-Month Periods
Ended June 30, |
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2013 |
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2012 |
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2013 |
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2012 |
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Pro forma
revenues
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$ |
217,890 |
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$ |
205,357 |
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$ |
430,651 |
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$ |
412,307 |
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Pro forma loss from
continuing operations
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$ |
(20,315 |
) |
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$ |
(47,320 |
) |
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$ |
(9,995 |
) |
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$ |
(44,930 |
) |
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Pro forma loss from
discontinued operations
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$ |
(2,305 |
) |
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$ |
(34,103 |
) |
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$ |
(5,700 |
) |
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$ |
(51,138 |
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Pro forma net loss
attributable to DDR common shareholders
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$ |
(37,061 |
) |
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$ |
(83,276 |
) |
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$ |
(37,414 |
) |
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$ |
(104,399 |
) |
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Per share data:
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Basic earnings per share
data:
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Loss from continuing
operations attributable to DDR common shareholders
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$ |
(0.11 |
) |
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$ |
(0.17 |
) |
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$ |
(0.10 |
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$ |
(0.18 |
) |
Loss from discontinued
operations attributable to DDR common shareholders
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(0.01 |
) |
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(0.11 |
) |
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(0.02 |
) |
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(0.17 |
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Net loss attributable to
DDR common shareholders
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$ |
(0.12 |
) |
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$ |
(0.28 |
) |
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$ |
(0.12 |
) |
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$ |
(0.35 |
) |
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Diluted earnings per share
data:
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Loss from continuing
operations attributable to DDR common shareholders
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$ |
(0.11 |
) |
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$ |
(0.17 |
) |
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$ |
(0.10 |
) |
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$ |
(0.18 |
) |
Loss from discontinued
operations attributable to DDR common shareholders
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(0.01 |
) |
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(0.11 |
) |
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(0.02 |
) |
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(0.17 |
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Net loss attributable to
DDR common shareholders
|
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$ |
(0.12 |
) |
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$ |
(0.28 |
) |
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$ |
(0.12 |
) |
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$ |
(0.35 |
) |
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