DDR Reports a 6.2% Increase in Operating FFO Per Diluted Share to $1.03 for the Year Ended December 31, 2012

Tue Feb 12, 2013 5:00pm EST

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BEACHWOOD, Ohio,  Feb. 12, 2013  /PRNewswire/ -- DDR Corp. (NYSE: DDR) today
announced operating results for the fourth quarter ended  December 31, 2012.

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

SIGNIFICANT 2012 ACTIVITY

* Generated Operating FFO of  $1.03  per diluted share for the full year 2012
and  $0.27  per diluted share for the fourth quarter, an increase of 6.2%
compared to the full year 2011  
* Executed 1,958 new leases and renewals for 11.3 million square feet in 2012,
which includes 471 new leases and renewals for 2.4 million square feet in the
fourth quarter  
* Increased the portfolio leased rate by 60 basis points to 94.2% at  December
31, 2012, from 93.6% at  December 31, 2011  and by 20 basis points from 94.0% at
 September 30, 2012
* Generated positive leasing spreads for the full year 2012, with new leases up
9.7% at 100% ownership and 13.6% on a pro rata basis, and renewals up 6.1% at
100% ownership and 6.0% on a pro rata basis; blended spreads were up 6.7% at
100% ownership and 7.0% on a pro rata basis  
* Generated same store net operating income growth of 4.0% at 100% ownership and
3.4% on a pro rata basis for the full year 2012 as compared to 2011  
* Generated same store net operating income growth of 4.3% at 100% ownership and
4.4% on a pro rata basis for the fourth quarter as compared to the fourth
quarter of 2011  
* Acquired  $760 million  of prime assets on a pro rata basis in 2012 of which 
$151 million  were acquired in the fourth quarter  
* Issued  $511 million  of common equity to fund the net investment in prime
assets in 2012 of which 4.8 million shares were issued in the fourth quarter for
gross proceeds of  $75 million
* Completed the disposition of  $347 million  of non-prime assets in 2012 of
which  $255 million  were sold in the fourth quarter; DDR's pro rata share of
the gross proceeds was  $143 million,  $62 million  of which was in the fourth
quarter

"We continue to be pleased with our performance metrics, access to capital and
overall tenant operating and financial strength within our portfolio.  We expect
these positive trends to continue in 2013," commented DDR's chief executive
officer,  Daniel B. Hurwitz.   

FINANCIAL HIGHLIGHTS     
The Company's fourth quarter Operating Funds From Operations attributable to
common shareholders ("Operating FFO") increased to  $84.0 million, or  $0.27 
per diluted share, which compares to  $72.1 million, or  $0.26  per diluted
share, for the prior-year comparable period.  The increase in Operating FFO for
the three-month period ended  December 31, 2012, as compared to the same period
in 2011, is primarily due to organic growth and shopping center acquisitions and
related investments partially offset by asset dispositions.

Funds From Operations attributable to common shareholders ("FFO") for the
three-month period ended  December 31, 2012, increased to  $61.8 million, or 
$0.20  per diluted share, which compares to  $47.4 million, or  $0.17  per
diluted share, for the prior-year comparable period.  The increase in FFO for
the three-month period ended  December 31, 2012, as compared to the same period
in 2011, is primarily due to the same factors impacting Operating FFO as well as
lower impairment charges on non-depreciable assets partially offset by higher
transaction costs and a loss on change in control and sale of interests.

Operating FFO for the year ended  December 31, 2012  increased to  $305.3
million, or  $1.03  per diluted share, which compares to  $267.1 million, or 
$0.97  per diluted share, for the prior year.  The increase in Operating FFO for
the year ended  December 31, 2012, is primarily due to the same factors
impacting Operating FFO for the three-month period.

FFO for the year ended  December 31, 2012  increased to  $312.4 million, or 
$1.06  per diluted share, which compares to  $227.6 million, or  $0.75  per
diluted share, for the prior year.  The increase in FFO for the year ended 
December 31, 2012, is primarily due to the same factors impacting FFO for the
three-month period as well as gains on change in control and sale of interests
partially offset by the loss on debt retirement related to the Company's
repurchase of a portion of its 9.625% unsecured senior notes in 2012 and the
effect of the valuation adjustment associated with the warrants that were
exercised in full for cash in the first quarter of 2011.

Net loss attributable to common shareholders for the three-month period ended 
December 31, 2012, was  $7.0 million, or  $0.02  per diluted share, which
compares to net loss of  $1.8 million, or  $0.01  per diluted share, for the
prior-year comparable period.  Net loss attributable to common shareholders for
the year ended  December 31, 2012, was  $60.3 million, or  $0.21  per diluted
share, which compares to net loss of  $53.8 million, or  $0.28  per diluted
share, for the prior year.  The increase in net loss attributable to common
shareholders for the three-month period and year ended  December 31, 2012, is
primarily due to the same factors impacting FFO as well as higher impairment
charges on depreciable assets and depreciation expense.

LEASING & PORTFOLIO OPERATIONS     
The following results for the full year and fourth quarter of 2012, highlight
continued strong leasing activity throughout the portfolio:

* Executed 189 new leases aggregating 0.7 million square feet and 282 renewals
aggregating approximately 1.7 million square feet in the fourth quarter     
* Generated positive leasing spreads for the fourth quarter, with new leases up
11.7% at 100% ownership and 14.3% on a pro rata basis, and renewals up 6.8% at
both 100% ownership and on a pro rata basis; blended spreads were up 7.6% at
100% ownership and 7.8% on a pro rata basis    
* The portfolio leased rate was 94.2% at  December 31, 2012, as compared to
94.0% at  September 30, 2012  and 93.6% at  December 31, 2011    
* Same store net operating income ("NOI") increased by 4.0% at 100% ownership
for the full year 2012 and 4.3% for the fourth quarter as compared to the same
periods in 2011 and 3.4% and 4.4% on a pro rata basis for the full year and
fourth quarter 2012, respectively

ACQUISITIONS    
In the fourth quarter of 2012, the Company acquired two prime power centers
located in  North Carolina. The Company funded these acquisitions through a
combination of proceeds from asset sales and the issuance of new common equity
and the senior unsecured notes.  

Carolina Pavilion, in  Charlotte, North Carolina, was purchased for  $106
million. This 94% leased 852,000 square foot prime power center features anchor
tenants such as Target, Kohl's,  Nordstrom Rack,  Ross Dress  for Less, buybuy
BABY, Bed Bath & Beyond, Jo-Ann Fabric and Craft Stores and AMC Theatres. In
addition, new leasing activity with national anchors including PetSmart and
Golfsmith will soon fill 85,000 square feet of currently vacant space.

Poyner Place, in  Raleigh, North Carolina, was purchased for  $45 million. This
96% leased 434,000 square foot prime power center is anchored by Target,  Ross
Dress  for Less, Old Navy, World Market, Shoe Carnival and Pier 1 Imports.  

FINANCINGS      
In  January 2013, the Company refinanced its primary  $750 million  unsecured
revolving credit facility arranged by J.P. Morgan Securities LLC and Wells Fargo
Securities, LLC.  The  $65 million  unsecured revolving credit facility provided
solely by PNC Bank, National Association was refinanced to match the terms of
the primary facility.  The Company also refinanced its  $400 million  secured
term loan arranged by KeyBanc Capital Markets and RBC Capital Markets.

The refinanced  $750 million  unsecured revolving credit facility has an initial
maturity of  April 2017  with borrower options to extend an additional year, and
contains an accordion feature that provides for  $1.25 billion  of potential
total capacity.  Pricing on both refinanced revolving credit facilities was
reduced and is currently set at LIBOR plus 140 basis points, a decrease of 25
basis points from the previous rate, and is determined based upon DDR's credit
ratings from Moody's and S&P. Further, the annual facility fee for both
revolving credit facilities has been reduced from 35 basis points to 30 basis
points.  

The refinanced secured term loan has an initial maturity of  April 2017  with
borrower options to extend an additional year.  Pricing on the secured term loan
is currently set at LIBOR plus 155 basis points, a decrease of 15 basis points
from the previous rate, and is determined based upon DDR's credit ratings from
Moody's and S&P.

The Company accessed its at-the-market common equity program and issued 4.8
million new common shares during the fourth quarter of 2012 at an average price
of  $15.50, generating gross proceeds of  $75 million.

In addition in  December 2012, the Company closed  $365 million  of new
long-term financings, comprised of a  $265 million  mortgage loan and a  $100
million  increase in the unsecured term loan that initially closed in  January
2012.  The mortgage is a 3.5% fixed rate, seven-year loan collateralized by four
prime shopping centers.  DDR had previously entered into interest rate swap
contracts that fix LIBOR on the  $100 million  of additional unsecured term loan
proceeds resulting in a fixed interest rate of 2.98%.  Proceeds from these
financings were primarily used to repay a  $350 million  mortgage loan, secured
by six prime shopping centers, that was set to mature in  April 2013  with a 5%
fixed rate.  

In  November 2012, the Company issued  $150 million  aggregate principal amount
of 4.625% senior unsecured notes due  July 2022  at a premium to par of 109.2%
and yield-to-maturity of 3.46%.   

DISPOSITIONS      
The Company sold five consolidated operating shopping centers, aggregating
approximately 0.4 million square feet, in the fourth quarter of 2012, generating
gross proceeds of approximately  $13.7 million.  In addition, the Company sold 
$60.6 million  of non-income producing assets.  The Company recorded an
aggregate net gain of approximately  $0.4 million  related to asset sales in the
fourth quarter of 2012.   

In the fourth quarter of 2012, the Company's unconsolidated joint ventures sold
five assets generating gross proceeds of approximately  $219.4 million  ($51.5
million  at DDR's share).  The aggregate gain on sale in the fourth quarter of
2012 was approximately  $50.8 million  ($10.7 million  at DDR's share).  The
joint venture disposition activity included the sale by  Sonae Sierra Brasil  of
its 10% ownership interest in Patio Brasil, its 51% interest in Shopping Penha,
and its 30% interest in Tivoli Shopping, for approximately  $103 million  ($34
million  at DDR's share).   Sonae Sierra Brasil  will continue to manage
Shopping Penha and Tivoli Shopping for at least three years.

2013 GUIDANCE
There has been no change in Operating FFO per share guidance since the last
update provided on  January 7, 2013.  The Company continues to estimate
Operating FFO for 2013 between  $1.07 and $1.11  per diluted share.   

NON-GAAP DISCLOSURES     
FFO is a supplemental non-GAAP financial measurement used as a standard in the
real estate industry and a widely accepted measure of real estate investment
trust ("REIT") performance. Management believes that FFO and Operating FFO
provide additional indicators of the financial performance of a REIT. The
Company also believes that FFO and Operating FFO more appropriately measure the
core operations of the Company and provide benchmarks to its peer group. Neither
FFO nor Operating FFO represents cash generated from operating activities in
accordance with generally accepted accounting principles ("GAAP"), is
necessarily indicative of cash available to fund cash needs and should 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 share dividends, (ii) gains and losses from disposition of
depreciable real estate property, which are presented net of taxes, (iii)
impairment charges on depreciable real estate property and related investments,
(iv) extraordinary items and (iv) 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 non-controlling
interests and adding the Company's proportionate share of FFO from its
unconsolidated joint ventures and non-controlling interests, determined on a
consistent basis. The Company calculates Operating FFO by excluding the
non-operating charges and gains described above. The Company computes FFO in
accordance with the NAREIT definition as affirmed by NAREIT on  October 31,
2011.  Other real estate companies may calculate FFO and Operating FFO in a
different manner.  FFO excluding the net non-operating items detailed in this
release is useful to investors as the Company removes these charges and gains to
analyze the results of its operations and assess performance of the core
operating real estate portfolio. A reconciliation of net income (loss) to FFO
and Operating FFO is presented in the financial highlights section of the
Company's quarterly supplement.  

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; the success of our capital recycling strategy; and the
finalization of the financial statements for the three-month period ended and
year ended  December 31, 2012.  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.  

ABOUT DDR       
DDR is an owner and manager of 454 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.

CONFERENCE CALL INFORMATION & SUPPLEMENTAL MATERIALS     
A copy of the Company's Supplemental Financial/Operational package is available
to all interested parties upon request to  Samir Khanal, at the Company's
corporate office, 3300 Enterprise Parkway,  Beachwood, Ohio  44122 or at 
www.ddr.com.  

The Company will hold its quarterly conference call tomorrow,  February 13,
2013, at  10:00 a.m.  Eastern Time.  To participate, please dial 866.362.4831
(domestic), or 617.597.5347 (international) at least ten minutes prior to the
scheduled start of the call.  When prompted, provide the passcode: 96140797. 
Access to the live call and replay will also be available through the Company's
website.  The replay will be available through  February 20, 2013.

DDR Corp.
Financial Highlights
(In Thousands)

                                                                                                                                                                         
                                                                                 Three-Month Periods                           Years Ended                            
                                                                                 
Ended December 31,                           
December 31,                          
 Revenues:                                                                       2012                       2011             2012                  2011           
 Minimum rents  (A)                                                              $  142,328                 $  126,626       $  542,900            $  498,079     
 Percentage and overage rents  (A)                                               2,702                      2,573            5,117                 6,057          
 Recoveries from tenants                                                         46,453                     37,896           174,097               163,123        
 Ancillary and other property income                                             8,011                      7,787            27,665                28,527         
 Management, development and other fee income                                    10,579                     12,296           43,706                47,148         
 Other  (B)                                                                      797                        2,179            6,890                 6,895          
                                                                                 210,870                    189,357          800,375               749,829        
 Expenses:                                                                                                                                                        
 Operating and maintenance                                                       32,856                     29,507           128,821               128,873        
 Real estate taxes                                                               28,091                     22,842           104,256               97,382         
 Impairment charges  (C)                                                         20,615                     17,077           105,395               67,912         
 General and administrative                                                      19,753                     19,911           76,444                85,221         
 Depreciation and amortization                                                   65,159                     57,957           248,781               215,928        
                                                                                 166,474                    147,294          663,697               595,316        
 Other income (expense):                                                                                                                                          
 Interest income                                                                 5,970                      2,154            15,799                9,832          
 Interest expense  (D)                                                           (56,148)                   (56,245)         (221,424)             (224,024)      
 Gain (loss) on debt retirement, net  (E)                                        -                          45               (13,495)              (89)           
 Gain on equity derivative instruments                                           -                          -                -                     21,926         
 Other income (expense), net  (F)                                                (10,737)                   (177)            (17,880)              (5,002)        
                                                                                 (60,915)                   (54,223)         (237,000)             (197,357)      
 Loss before earnings from equity method investments and other                   (16,519)                   (12,160)         (100,322)             (42,844)       
       items                                                                                                                                                      
 Equity in net income (loss) of joint ventures  (G)                              18,284                     (2,217)          35,250                13,734         
 Impairment of joint venture investments  (C)                                    -                          (1,250)          (26,671)              (2,921)        
 (Loss) gain on change in control and sale of interests, net  (H)                (1,866)                    2,461            78,127                25,170         
 Tax expense of taxable REIT subsidiaries and state franchise and                (350)                      (19)             (1,160)               (1,025)        
       income taxes                                                                                                                                               
 Loss from continuing operations                                                 (451)                      (13,185)         (14,776)              (7,886)        
 Income (loss) from discontinued operations  (I)                                 813                        19,740           (16,416)              (18,590)       
 Income (loss) before (loss) gain on disposition of real estate                  362                        6,555            (31,192)              (26,476)       
 (Loss) gain on disposition of real estate, net of tax                           (298)                      (1,380)          5,863                 7,079          
 Net income (loss)                                                               64                         5,175            (25,329)              (19,397)       
 (Income) loss attributable to non-controlling interests                         (68)                       31               (493)                 3,543          
 Net (loss) income attributable to DDR                                           $           (4)            $      5,206     $   (25,822)          $   (15,854)   
 Write-off of preferred share original issuance costs  (J)                       -                          -                (5,804)               (6,402)        
 Preferred dividends                                                             (7,030)                    (6,967)          (28,645)              (31,587)       
 Net loss attributable to common shareholders                                    $    (7,034)               $    (1,761)     $  (60,271)           $   (53,843)   
 Funds From Operations ("FFO"):                                                                                                                                   
 Net loss attributable to common shareholders                                    $    (7,034)               $    (1,761)     $  (60,271)           $   (53,843)   
 Depreciation and amortization of real estate investments                        63,577                     58,081           242,822               221,278        
 Equity in net (income) loss of joint ventures  (G)                              (18,284)                   2,217            (35,250)              (13,734)       
 Impairment of depreciable joint venture investments                             -                          1,250            26,671                1,285          
 Joint ventures' FFO  (G)                                                        13,142                     14,234           53,603                57,604         
 Non-controlling interests (OP Units)                                            48                         32               191                   88             
 Impairment of depreciable real estate assets, net of non-controlling interests  18,566                     29,037           96,319                62,683         
 Gain on disposition of depreciable real estate, net                             (8,178)                    (55,675)         (11,705)              (47,751)       
 FFO attributable to common shareholders                                         61,837                     47,415           312,380               227,610        
 Non-operating items, net  (K)                                                   22,160                     24,680           (7,062)               39,497         
 Operating FFO                                                                   $    83,997                $    72,095      $  305,318            $  267,107     
                                                                                                                                                                  
 Earnings per share - Diluted  (L)                                               $      (0.02)              $      (0.01)    $      (0.21)         $      (0.28)  
 Funds From Operations - Diluted  (L)                                            $        0.20              $        0.17    $       1.06          $        0.75  
 Operating Funds From Operations - Diluted  (L)                                  $        0.27              $        0.26    $       1.03          $        0.97  


DDR Corp.
Financial Highlights
(In Thousands)

 Selected Balance Sheet Data                                                                     
                                                         December 31, 2012    December 31, 2011  
 Assets:                                                                                         
 Real estate and rental property:                                                                
 Land                                                    $ 1,900,401          $ 1,844,125        
 Buildings                                               5,773,961            5,461,122          
 Fixtures and tenant improvements                        489,626              379,965            
                                                         8,163,988            7,685,212          
 Less: Accumulated depreciation                          (1,670,717)          (1,550,066)        
                                                         6,493,271            6,135,146          
 Land held for development and construction in progress  475,123              581,627            
 Real estate held for sale, net                          -                    2,290              
 Real estate, net                                        6,968,394            6,719,063          
                                                                                                 
 Investments in and advances to joint ventures           613,017              353,907            
 Cash                                                    31,174               41,206             
 Restricted cash                                         23,658               30,983             
 Notes receivable, net                                   68,718               93,905             
 Receivables, including straight-line rent, net          126,228              117,463            
 Other assets, net                                       224,648              112,898            
                                                         $ 8,055,837          $ 7,469,425        
                                                                                                 
 Liabilities & Equity:                                                                           
 Indebtedness:                                                                                   
 Revolving credit facilities                             $   147,905          $   142,421        
 Unsecured debt                                          2,147,097            2,139,718          
 Unsecured term loan                                     350,000              -                  
 Mortgage and other secured debt                         1,674,141            1,822,445          
                                                         4,319,143            4,104,584          
 Dividends payable                                       44,210               29,128             
 Other liabilities                                       326,024              257,821            
 Total liabilities                                       4,689,377            4,391,533          
                                                                                                 
 Preferred shares                                        405,000              375,000            
 Common shares                                           31,524               27,711             
 Paid-in-capital                                         4,629,257            4,138,812          
 Accumulated distributions in excess of net income       (1,694,822)          (1,493,353)        
 Deferred compensation obligation                        15,556               13,934             
 Accumulated other comprehensive income                  (27,925)             (1,403)            
 Less:  Common shares in treasury at cost                (16,452)             (15,017)           
 Non-controlling interests                               24,322               32,208             
 Total equity                                            3,366,460            3,077,892          
                                                         $ 8,055,837          $ 7,469,425        


DDR Corp.
Financial Highlights

 (A)  The increase in base and percentage rental revenues for the year ended December 31, 2012, is as follows (in millions):  


                                            Increase     
                                            (Decrease)   
 Acquisition of shopping centers            $ 32.7       
 Comparable portfolio properties            8.3          
 Development or redevelopment properties    (0.8)        
                                            $ 40.2       


 Revenue resulting from the recognition of straight-line rents, including discontinued operations, is as follows (in millions):  


                        Years Ended            
                        December 31,           
                        2012          2011   
 Straight-line rents    $ 4.1         $ 0.9  


 (B)  Other revenues were comprised of the following (in millions):  


                           Three-Month Periods            Years Ended            
                           Ended December 31,             December 31,           
                           2012              2011       2012          2011   
 Lease termination fees    $ 0.6             $ 2.0      $ 6.4         $ 5.9  
 Financing fees            0.1               0.1        0.1           0.4    
 Other miscellaneous       0.1               0.1        0.4           0.6    
                           $ 0.8             $ 2.2      $ 6.9         $ 6.9  


 (C)  The Company recorded impairment charges on the following (in millions):  
                                                                               
                                                                               


                                  Three-Month Periods            Years Ended                  
                                  Ended December 31,             December 31,                 
                                  2012              2011       2012             2011      
                                                                                          
 Land held for development        $  2.1            $ 14.0     $   10.1         $   54.2  
 Undeveloped land                 -                 3.1        20.1             9.0       
 Assets marketed for sale         18.5              -          72.6             4.7       
 Other shopping center assets     -                 -          2.6              -         
 Total continuing operations      20.6              17.1       105.4            67.9      
                                                                                          
 Sold assets                      -                 29.0       21.1             57.9      
 Total discontinued operations    -                 29.0       21.1             57.9      
 Joint venture investments        -                 1.3        26.7             2.9       
 Total impairment charges         $ 20.6            $ 47.4     $ 153.2          $ 128.7   


DDR Corp.
Financial Highlights

 (D)  The Company recorded the following in connection with its outstanding convertible debt (in millions):  


                                             Three-Month Periods               Years Ended              
                                             Ended December 31,                
December 31,            
                                             2012                2011        2012           2011    
 Non-cash interest expense related to        $ 2.6               $ 3.4       $ 10.9         $ 14.9  
       amortization of the debt discount                                                            


 (E)  For the year ended December 31, 2012, the Company repurchased $60.0 million aggregate principal amount of its 9.625% unsecured senior notes at a premium to par value.  


 (F)  Other income (expense) was comprised of the following (in millions):  


                                           Three-Month Periods              Years Ended                 
                                           Ended December 31,               
December 31,               
                                           2012               2011        2012             2011     
 Transaction and other (expenses)          $  (4.8)           $   1.0     $  (7.7)         $   0.4  
      income                                                                                        
 Litigation-related expenses               (1.2)              (0.3)       (4.8)            (2.3)    
 Loss on sale or reserve of mezzanine      (4.3)              -           (4.3)            (5.0)    
      note receivable                                                                               
 Debt extinguishment costs, net            (0.4)              (0.9)       (1.1)            (0.7)    
 Settlement of lease liability obligation  -                  -           -                2.6      
                                           $ (10.7)           $  (0.2)    $ (17.9)         $ (5.0)  


 (G)  At December 31, 2012 and 2011, the Company had investments in joint ventures, excluding consolidated joint ventures, in 206 and 177 shopping center properties, respectively.  


 (H)  In the fourth quarter of 2012, the Company sold its interest in a joint venture investment with the Coventry II Fund.  The Company also sold a portion of its interest in a previously consolidated joint venture that owns land held for development in Canada. 
       The Company recorded a net loss related to these sales.  In addition in 2012, the Company acquired its partners' interests in five shopping centers.  The Company accounted for these transactions as step acquisitions.  Due to the change in control that    
      occurred, the Company recorded an aggregate gain for the year ended 2012 associated with the difference between the Company's carrying value and fair value of the previously held equity interest.                                                             


DDR Corp.
Financial Highlights

 (I)  The operating results related to assets classified as discontinued operations are summarized as follows (in millions):  


                                                  Three-Month Periods            Years Ended                  
                                                  
Ended December 31,            
December 31,                
                                                  2012              2011       2012             2011      
 Revenues from operations                         $ 0.6             $  8.6     $   9.3          $  49.0   
                                                                                                          
 Operating expenses                               0.3               3.3        4.2              19.7      
 Impairment charges                               -                 29.0       21.1             57.9      
 Interest, net                                    0.1               2.1        2.0              13.2      
 Debt extinguishment costs, net                   -                 7.7        -                7.2       
 Depreciation and amortization                    0.1               2.4        2.3              14.4      
 Total expenses                                   0.5               44.5       29.6             112.4     
 Income (loss) before disposition of real estate  0.1               (35.9)     (20.3)           (63.4)    
 Gain on deconsolidation of interests             -                 -          -                4.7       
 Gain on disposition of real estate, net          0.7               55.6       3.9              40.1      
 Net income (loss)                                $ 0.8             $ 19.7     $ (16.4)         $ (18.6)  


 (J)  In August 2012, the Company redeemed all of its Class I Preferred Shares.  The Company recorded a non-cash charge of $5.8 million to net loss available to common shareholders in the third quarter of 2012 related to the write-off of the original issuance costs.  


DDR Corp.
Financial Highlights

 (K)  The gains and charges excluded from Operating FFO for the three-month periods and years ended December 31, 2012 and 2011, respectively, are summarized as follows (in millions):  


                                                Three-Month Periods            Years Ended                   
                                                
Ended December 31,            
December 31,                 
                                                2012              2011       2012           2011         
 Non-cash impairment charges - non-             $  2.1            $ 17.1     $ 30.2         $ 63.2       
      depreciable consolidated assets                                                                    
 Loss on debt retirement, net                   -                 -          13.5           0.1          
 Other expense (income), net - transaction      10.7              0.2        17.9           5.0          
      costs, loss on sale/reserve of                                                                     
      mezzanine note receivable, litigation                                                              
      costs, debt extinguishment costs and                                                               
      lease liability settlement gain                                                                    
 Equity in net (income) loss of joint           (0.2)             (0.5)      0.6            (1.2)        
      ventures - currency adjustments,                                                                   
      transaction and other expenses                                                                     
 Non-cash impairment of joint venture           -                 -          -              1.6          
      investments on non-depreciable assets                                                              
 Non-cash loss (gain) on disposition of         0.3               1.4        (5.5)          0.9          
      non-depreciable real estate, net                                                                   
 Executive separation charges                   -                 1.4        1.0            12.4         
 Non-cash gain on equity derivative             -                 -          -              (21.9)       
      instruments (Otto Family warrants)                                                                 
 Debt extinguishment costs, (gain) on           -                 7.7        0.2            2.1          
      deconsolidation of interests, and loss                                                             
      on sales - discontinued operations                                                                 
 Non-cash loss (gain) on change in control      9.3               (2.5)      (70.8)         (25.2)       
      and sale of interests, net                                                                         
 Non-controlling interest - portion of          -                 (0.1)      -              (3.9)        
      impairment charges allocated to                                                                    
      outside partners                                                                                   
 Non-cash write-off of preferred share          -                 -          5.8            6.4          
      original issuance costs                                                                            
 Total adjustments from FFO                     $ 22.2            $ 24.7     $ (7.1)        $ 39.5       
      to Operating FFO                                                                                   


DDR Corp.
Financial Highlights

 (L)  The Company's per share information is as follows:  


                                    At December 31,           
                                    2012            2011    
 Common shares outstanding          315.1           276.9   
 OP Units outstanding ("OP Units")  0.4             0.4     


                                                                       Three-Month Periods                Years Ended                          
                                                                       Ended December 31,                 December 31,                         
                                                                       2012                2011         2012             2011             
                                                                                                                                          
 Earnings per common share:                                                                                                               
 Basic                                                                 $  (0.02)           $  (0.01)    $  (0.21)        $  (0.20)        
 Diluted                                                               $  (0.02)           $  (0.01)    $  (0.21)        $  (0.28)        
 Basic - average shares outstanding                                    307.9               274.7        291.7            270.3            
 Diluted - average shares outstanding                                  307.9               274.7        291.7            271.5            
 Dividends Declared:                                                   $  0.12             $  0.08      $  0.48          $  0.22          
                                                                                                                                          
 FFO per share:                                                                                                                           
 Basic                                                                 $  0.20             $  0.17      $  1.06          $  0.84          
 Diluted                                                               $  0.20             $  0.17      $  1.06          $  0.75          
 Weighted average common shares                                        310.0               277.0        293.6            272.1            
           outstanding                                                                                                                    
 Assumed conversion of OP Units                                        0.4                 0.4          0.4              0.4              
 FFO Weighted average common                                           310.4               277.4        294.0            272.5            
           shares and OP Units - Basic                                                                                                    
 Assumed conversion of dilutive                                        0.4                 0.7          1.3              1.9              
           securities                                                                                                                     
 FFO Weighted average common                                           310.8               278.1        295.3            274.4            
           shares and OP Units - Diluted                                                                                                  
                                                                                                                                          
 Operating FFO:                                                                                                                           
 Diluted                                                               $  0.27             $  0.26      $  1.03          $  0.97          
 Operating FFO Weighted average common shares and OP Units -  Diluted  310.8               278.1        295.3            274.4            


DDR Corp.
Summary Results of Combined Unconsolidated Joint Ventures
(In Thousands)

 Combined condensed income statements                                                                                       
                                                                                                                         
                                               Three-Month Periods                    Years Ended                        
                                               Ended December 31,                     December 31,                       
                                               2012                 2011            2012                2011         
 Revenues:                                                                                                           
 Minimum rents  (A)                            $ 137,098            $  118,310      $ 508,250           $  466,820   
 Percentage and overage rents                  856                  865             1,958               2,387        
 Recoveries from tenants                       32,573               25,502          116,660             105,939      
 Other                                         17,818               23,489          78,942              84,832       
                                               188,345              168,166         705,810             659,978      
 Expenses:                                                                                                           
 Operating and maintenance                     43,162               37,423          173,122             150,988      
 Real estate taxes                             21,443               15,140          76,418              66,685       
 Impairment charges  (B)                       9,562                208,843         10,402              208,843      
                                               74,167               261,406         259,942             426,516      
 Net operating income (loss)                   114,178              (93,240)        445,868             233,462      
 Depreciation and amortization of real         54,270               42,197          203,412             171,634      
         estate investments                                                                                          
 Interest expense                              60,670               55,294          237,138             217,676      
 (Loss) income before other items              (762)                (190,731)       5,318               (155,848)    
 Income tax expense                            (6,715)              (11,818)        (25,444)            (38,598)     
 Loss from continuing operations               (7,477)              (202,549)       (20,126)            (194,446)    
 Discontinued operations:                                                                                            
 Loss from operations  (B)                     (1,651)              (252)           (52,619)            (64,056)     
 Gain on debt forgiveness                      -                    -               -                   2,976        
 Gain (loss) on disposition, net               10,449               (2,595)         11,739              18,705       
 Income (loss) before gain on disposition of   1,321                (205,396)       (61,006)            (236,821)    
      assets                                                                                                         
 Gain on disposition of assets, net            40,352               1,751           54,582              1,733        
 Net income (loss)                             $   41,673           $ (203,645)     $   (6,424)         $ (235,088)  
 Non-controlling interests                     (23,306)             (4,568)         (42,995)            (16,132)     
 Net income (loss) attributable to             $   18,367           $ (208,213)     $ (49,419)          $ (251,220)  
      unconsolidated joint ventures                                                                                  
 Net income (loss) at DDR's ownership          $   21,774           $   (27,219)    $   33,512          $  (12,979)  
      interests  (C)                                                                                                 
 FFO at DDR's ownership interests  (D)         $   13,142           $     14,234    $   53,603          $    57,604  
 Operating FFO at DDR's ownership              $   12,982           $     13,780    $   54,220          $   56,390   
      interests  (D)                                                                                                 


DDR Corp.
Summary Results of Combined Unconsolidated Joint Ventures
(In Thousands)

 Combined condensed balance sheets                                                                       
                                                                                                      
                                                              December 31, 2012    December 31, 2011  
                                                                                                      
 Land                                                         $ 1,569,548          $ 1,400,469        
 Buildings                                                    4,681,462            4,334,097          
 Fixtures and tenant improvements                             244,293              189,940            
                                                              6,495,303            5,924,506          
 Less: Accumulated depreciation                               (833,816)            (808,352)          
                                                              5,661,487            5,116,154          
 Land held for development and construction in progress  (E)  348,822              239,036            
 Real estate, net                                             6,010,309            5,355,190          
 Cash and restricted cash                                     467,200              308,008            
 Receivables, including straight-line rent, net               99,098               108,038            
 Other assets, net                                            427,014              177,251            
                                                              $ 7,003,621          $ 5,948,487        
                                                                                                      
 Mortgage debt  (F)                                           $ 4,246,407          $ 3,742,241        
 Notes and accrued interest payable to DDR                    143,338              100,470            
 Other liabilities                                            342,614              214,370            
                                                              4,732,359            4,057,081          
 Redeemable preferred equity                                  154,556              -                  
 Accumulated equity                                           2,116,706            1,891,406          
                                                              $ 7,003,621          $ 5,948,487        


DDR Corp.
Summary Results of Combined Unconsolidated Joint Ventures

 (A)  Revenue resulting from the recognition of straight-line rents, including discontinued operations, is as follows (in millions):  


                              Three-Month Periods            Years Ended            
                              Ended December 31,             
 December 31,         
                              2012              2011       2012          2011   
 Straight-line rents          $ 1.2             $ 1.0      $ 4.9         $ 4.6  
 DDR's proportionate share    0.1               -          0.8           0.9    


 (B)  For the three-month period and year ended December 31, 2012, impairment charges were recorded primarily on an asset that is in the process of being marketed for sale of which the Company's proportionate share was not material.  For the three-month period and year ended December 31, 2011, impairment charges were recorded primarily on assets that were being recapitalized of which the Company's proportionate share of the charges was approximately $6.7 million.  
      
      
 (C)  Adjustments to the Company's share of joint venture equity in net income primarily is related to basis differences impacting amortization and depreciation, impairment charges and (loss) gain on dispositions as follows (in millions):                                                                                                                                                                                                                                       


                    Three-Month Periods            Years Ended             
                    
Ended December 31,            December 31,            
                    2012              2011       2012          2011    
 Net (loss) income  $ (3.5)           $ 25.0     $ 1.7         $ 26.7  


 (D)  FFO and Operating FFO from unconsolidated joint ventures are summarized as follows (in millions):  


                                         Three-Month Periods               Years Ended                   
                                         
Ended December 31,               
 December 31,                
                                         2012               2011         2012             2011       
 Net income (loss) attributable to       $  18.4            $ (208.2)    $ (49.4)         $ (251.2)  
      unconsolidated joint ventures                                                                  
 Depreciation and amortization of real   71.0               44.2         228.7            182.7      
      estate investments                                                                             
 Impairment of depreciable real estate   9.6                209.4        57.2             272.5      
      assets                                                                                         
 (Gain) loss on sale of depreciable      (50.7)             2.6          (65.1)           (18.7)     
      real estate                                                                                    
 FFO                                     $  48.3            $   48.0     $ 171.4          $  185.3   
 FFO at DDR ownership interests          $  13.1            $   14.2     $   53.6         $    57.6  
 Operating FFO at DDR's ownership        $  13.0            $   13.8     $   54.2         $    56.4  
      interests  (1)                                                                                 
 DDR joint venture distributions         $   23.3           $    6.1     $   43.2         $    63.2  
      received, net  (2)                                                                             


                                                                                                                                                                                                      
 (1)  Excluded from Operating FFO is the Company's proportionate share of net activity related to foreign currency adjustments, transaction costs and other expenses as above in this press release.  
      
      
 (2)  Includes loan repayments in 2011 of $22.4 million from the Company's unconsolidated joint venture which has assets located in Brazil.                                                           
      
      
                                                                                                                                                                                                      


DDR Corp.
Summary Results of Combined Unconsolidated Joint Ventures

 (E)  Land held for development and construction in progress consists of the following (in millions): 
                                                                
                                December 31,    December 31,    
                                2012            2011            
 Company's proportionate share  $ 100.9         $ 75.9          


 (F)  Mortgage debt consists of the following (in millions):  


                                                           December 31,      December 31,    
                                                           2012              2011            
 Company's proportionate share                             $ 724.9           $ 772.9         
 Non-recourse debt included above for which the            48.2              48.1            
      Company has written its investment down to zero                                        
      and is receiving no allocation of income, loss or                                      
      FFO                                                                                    


SOURCE  DDR Corp.


Media Contact: Matt Schuler, Communications Manager, +1-216-755-5500,
mschuler@ddr.com; Investor Contact: Samir Khanal, Senior Director of Investor
Relations, +1-216-755-5500, skhanal@ddr.com

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