DDR Highlights 2012 Execution of Strategic Objectives and Provides 2013 Guidance

Mon Jan 7, 2013 8:00am EST

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BEACHWOOD, Ohio,  Jan. 7, 2013  /PRNewswire/ -- DDR Corp. (NYSE: DDR) today
highlighted 2012 execution of strategic objectives and released guidance for
2013. During 2012 the Company significantly improved the quality of its
portfolio through the acquisition of  $2.1 billion  of prime shopping centers
($760 million  at DDR's share) and the disposition of  $347 million  of
non-prime operating assets ($143 million  at DDR's share). Investments in 2012
were funded primarily with proceeds from asset sales and  $511 million  of new
common equity issued throughout the year, which significantly improved the
Company's balance sheet as well. DDR's considerable progress in recent years
recycling capital, growing its high quality pool of unencumbered prime shopping
centers, lowering leverage and extending debt duration combined with strong
operating results contributed to Standard & Poor's upgrade of the Company's
corporate bond rating to BBB- in September and Moody's affirming its investment
grade rating on DDR bonds and raising its credit outlook to positive from
stable. Additionally, DDR retired  $969 million  of consolidated debt with a
weighted average interest rate of 4.8% during the year with  $1.2 billion  of
new long-term financings with a weighted average interest rate of 3.8%. As a
result, the Company has no unsecured debt maturities until  May 2015, and 2013
consolidated debt maturities are only  $41 million. At year-end, the Company had
over  $600 million  of availability under its revolving credit facilities.

(Logo:   http://photos.prnewswire.com/prnh/20110912/CL65938LOGO  )

The Company's operating platform continued to perform at a very high level in
2012, reporting solid improvements in leased rate, which reflect robust demand
and stronger competition for quality space from retailers. During the year, the
Company leased approximately 11.3 million square feet, representing a 60 basis
point improvement in the leased rate over year end 2011, and resulting in a
94.2% leased rate at  December 31, 2012.

Daniel B. Hurwitz, chief executive officer, commented, "2012 was another year of
successful execution of our strategic objectives. We have positioned the Company
for future growth with attractive investments, and our primary tenants continue
to increase market share and have a significant need for new stores. With a
dramatically improved portfolio of high quality prime power centers, a unique
and proven operating platform, and a competitive cost of capital, we expect to
generate strong relative total returns in 2013 and beyond."

In 2012, the Company completed approximately  $4.5 billion  of capital
transactions and consolidated financing activities including the following:

* Completed  $2.1 billion  of acquisitions of prime shopping centers and  $347
million  of dispositions of non-prime operating assets. DDR's share of 2012
acquisitions was  $760 million  and dispositions was  $143 million. In addition,
the Company sold  $107 million  of non-income producing assets during the year,
of which DDR's share was  $96 million.  
* Issued  $511 million  of common equity to fund the net investment in prime
shopping centers while also increasing our pool of unencumbered assets and
improving leverage metrics.  
* Issued  $200 million, 6.5% Class J preferred stock to redeem  $170 million,
7.5% Class I preferred stock.  
* Issued  $450 million, 10-year, 4.625% senior unsecured notes ($300 million, 
June 2012; and  $150 million, 3.46% yield-to-maturity,  November 2012), with net
proceeds used to redeem  $224 million, 5.375% notes maturing  October 2012  and
repay borrowings under the revolving credit facility.  
* Closed on  $350 million  unsecured term loan ($300 million, 7-year tranche,
with interest fixed at 3.6% for  $200 million  and 3.0% for  $100 million; and 
$50 million, 5-year tranche, with interest fixed at 2.3%), with proceeds used to
retire  $180 million  of convertible notes, refinance a portion of our 5.0% rate
mortgage debt maturing in 2013, and reduce the outstanding balances under the
revolving credit facilities.  
* Closed  $103 million  7-year, 3.40% mortgage loan secured by three prime
shopping centers in  Atlanta, GA,  Princeton, NJ  and  San Antonio, TX.
* Closed  $265 million, 7-year, 3.95% mortgage loan secured by four prime
shopping centers in  San Juan, PR,  Atlanta, GA,  Miami, FL, and  Columbus, OH.
The proceeds from the loan were used to repay a majority of  $350 million  in
5.0% rate mortgage debt set to mature in  April 2013.  
* Extended the weighted average maturity of consolidated debt from 4.3 years to
5.1 years.  
* Paid cash dividends of  $0.48  per common share, an increase of 118% from
2011.

The Company also achieved the following operational accomplishments in 2012:

* Leased approximately 11.3 million square feet of gross leasable area.  
* Increased portfolio leased rate to 94.2%, up 60 basis points from 93.6% at
year-end 2011 and up 100 basis points when adjusting for the Blackstone
acquisition.  
* Increased the percentage of net operating income (NOI) generated from the
prime portfolio to approximately 89.3%.  
* Generated full year same store NOI growth in excess of 3%.

2013 Guidance

The Company expects to generate operating FFO per diluted share of  $1.07 -
$1.11  in 2013, an increase of 5% to 9% over the midpoint of the latest 2012
guidance. Significant activity assumed in this guidance is as follows:

* Generate same store NOI growth of 2.0% - 3.0%, weighted to the second half of
the year.  
* Increase year-end portfolio leased rate by 80 basis points, resulting in a
leased rate of 95%.  
* Acquire  $250 million  of prime shopping centers.  
* Dispose of  $150 million  of non-prime operating assets.  
* Dispose of  $50 million  of non-income producing assets.  
* Bring at least  $75 million  of opportunistic development and redevelopment
investment on line, primarily in the second half of the year.  
* Approximately  $80 million  in aggregate general and administrative expenses. 

* Exchange rate of  2.0 Brazilian Real  per U.S. Dollar.  
* Opportunistic capital raising activity to improve liquidity, further extend
debt duration and improve credit metrics.  
* Annual dividend of  $0.54  per common share, representing 12.5% growth from
the annual common share dividend of  $0.48  per share in 2012.

About DDR

DDR is an owner and manager of 459 value-oriented shopping centers representing
116 million square feet in 39 states,  Puerto Rico  and  Brazil. The company's
assets are concentrated in high barrier-to-entry markets with stable populations
and high growth potential and its portfolio is actively managed to create
long-term shareholder value. DDR is a self-administered and self-managed REIT
operating as a fully integrated real estate company, and is publicly traded on
the New York Stock Exchange under the ticker symbol DDR. Additional information
about the company is available at  www.ddr.com.

Safe Harbor

DDR considers portions of the information in this press release 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 our
results 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, significant downsizing of or bankruptcy of a major tenant; constructing
properties or expansions that produce a desired yield on investment; our ability
to buy or sell assets on commercially reasonable terms; our ability to complete
acquisitions or dispositions of assets under contract; our ability to secure
equity or debt financing on commercially acceptable terms or at all; our ability
to enter into definitive agreements with regard to our financing and joint
venture arrangements or our failure to satisfy conditions to the completion of
these arrangements; and the success of our capital recycling strategy.  For
additional factors that could cause the results of the Company to differ
materially from those indicated in the forward-looking statements, please refer
to the Company's Form 10-K for the year ended  December 31, 2011, as amended. 
The Company undertakes no obligation to publicly revise these forward-looking
statements to reflect events or circumstances that arise after the date hereof.

SOURCE  DDR Corp.


Investor Contact:   Samir Khanal, Senior Director of Investor Relations,
+1-216-755-5500, Media Contact: Matt Schuler, Communications Manager,
+1-216-755-5842
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