SITE Centers Corp. - FORM 8-K - EX-99.2

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8-K - FORM 8-K - SITE Centers Corp.	l38470e8vk.htm
EX-99.3 - EX-99.3 - SITE Centers Corp.	l38470exv99w3.htm
EX-99.1 - EX-99.1 - SITE Centers Corp.	l38470exv99w1.htm

Quarterly finacialsupplement for the year ended December 31, 2009

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Table of Contents


Section	Page
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
Debt to EBITDA Calculation		2.4
Significant Accounting Policies		2.5
Other Real Estate Information		2.6
Reconciliation of Non-GAAP Financial Measures		2.7
Non-Cash Expense — Equity Derivative Instruments		2.8

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 and Dispositions		4.2
Development Projects		4.3
Development Delivery and Funding Schedules		4.4
Expansion and Redevelopment Projects		4.5
Summary of Recently Developed Assets		4.6
Summary of Recently Expanded and Redeveloped Assets		4.7

Portfolio Summary		5.0

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

Investor Contact Information		7.0

Property list available online at www.ddr.com

DEVELOPERS DIVERSIFIED REALTY CORPORATION

For Immediate Release:


Media Contact:		Investor Contact:
Scott Schroeder		Kate Deck
216-755-5500		216-755-5500
sschroeder@ddr.com		kdeck@ddr.com

DEVELOPERS DIVERSIFIED REALTY REPORTS FFO PER
DILUTED SHARE OF $1.83 FOR THE YEAR ENDED
DECEMBER 31, 2009 BEFORE NON-OPERATING GAINS AND LOSSES

CLEVELAND, OHIO, February 18, 2010 — Developers Diversified Realty (NYSE: DDR) today announced operating results for the fourth quarter and year ended December 31, 2009.

	•		The Company’s fourth quarter operating Funds From Operations (“FFO”) was $62.8 million or $0.31 per diluted share before $90.8 million of net charges summarized below. The Company’s operating FFO for the year was $298.2 million or $1.83 per diluted share before $442.8 million of net charges summarized below.

			The net charges, primarily non-cash, for the three months and year ended December 31, 2009, aggregating $90.8 million and $442.8 million, respectively, are summarized as follows (in millions):


	Three
	Months			Year
Non-cash loss on equity derivative instruments related to Otto investment	$	1.6		$	199.8
Non-cash impairment charges — consolidated and equity method investments		92.1			265.2
Consolidated impairment charges and loss on sales included in discontinued operations		4.6			117.6
Less portion of impairment charges and losses allocated to non-controlling interests (Mervyns)		(3.9	)		(35.2	)
Non-cash change in control compensation charge		—			15.4
Debt extinguishment costs, net loan loss reserve and other expenses offset by gain on sale of MDT units		20.0			30.0
Impairment charges, derivative (gains)/losses and losses on asset sales — equity method investments		2.6			19.0
Gain on redemption of joint venture interests		(23.5	)		(23.9	)
Gain on repurchases of senior notes		(2.7	)		(145.1	)

	$	90.8		$	442.8

	•		The Company reported revised operating FFO for the three-month period ended December 31, 2008 of $86.8 million or $0.71 per diluted share before $206.1 million of net charges summarized below. The Company’s operating FFO for the year ended December 31, 2008 was $387.5 million or $3.20 per diluted share before $217.8 million of net charges summarized below.

			The net charges, primarily non-cash, for the three months and year ended December 31, 2008, aggregating $206.1 million and $217.8 million, respectively, are summarized as follows (in millions):


	Three
	Months			Year
Non-cash impairment charges — consolidated and equity method investments	$	182.2		$	182.2
Consolidated impairment charges and loss on sales included in discontinued operations		7.6			15.3
Less portion of impairment charges and losses allocated to non-controlling interests (primarily Mervyns)		(18.7	)		(18.7	)
Non-cash termination of an equity award plan		15.8			15.8
Net loan loss reserve, abandoned projects, transaction costs and other expenses		20.8			27.1
Impairment charges, derivative (gains)/losses and losses on asset sales — equity method investments		8.7			6.6
Gain on repurchases of senior notes		(10.3	)		(10.5	)

	$	206.1		$	217.8

	•		FFO applicable to common shareholders for the three-month period ended December 31, 2009, including the above net charges, was a loss of $28.0 million, or $0.14 per diluted share, which compares to revised FFO loss of $119.3 million, or $0.98 per diluted share, for the prior-year comparable period. Net loss applicable to common shareholders for the three-month period ended December 31, 2009 was $90.1 million, or $0.46 per diluted share, which compares to revised net loss of $194.6 million, or $1.61 per diluted share, for the prior-year comparable period.

	•		FFO applicable to common shareholders for the year ended December 31, 2009, including the above net charges, was a loss of $144.6 million, or $0.90 per diluted share, which compares to revised FFO of $169.7 million, or $1.40 per diluted share, for the prior year. Net loss applicable to common shareholders for the year ended December 31, 2009 was $398.9 million, or $2.51 per diluted share, which compares to revised net loss of $114.2 million, or $0.96 per diluted share, for the prior year.

	•		Executed leases during the fourth quarter of 2009 totaled approximately 3.0 million square feet, including 166 new leases and 306 renewals. Executed leases during the year totaled approximately 10.6 million square feet, including 583 new leases and 1,079 renewals.

	•		On a cash basis, base rental rates on new leases and renewals decreased 4.6% overall for the quarter and 3.4% year over year.

	•		Core portfolio leased percentage at December 31, 2009 was 91.2%, compared to 90.9% at September 30, 2009.

	•		Same store net operating income (“NOI”) for the year decreased 3.6% compared to 2008 exclusively related to the bankruptcies and subsequent store closings of Circuit City, Linens ‘N Things, Goody’s and Steve & Barry’s which accounted for over 100 percent of the decline. Absent these bankruptcies, same store NOI would have been slightly positive year over year. Same Store NOI excludes the results of the assets not acquired by the Company in connection with the redemption of its interest in the MDT US LLC joint venture for both of the years ended December 31, 2009 and 2008 (see discussion of redemption transaction below).

“Although we continue to operate in a challenging macroeconomic environment, our platform and portfolio continue to perform at a high level,” commented Developers Diversified’s president and chief executive officer Daniel B. Hurwitz. “We are encouraged by fourth quarter retail sales and profitability results, and signs indicate that leasing deal flow in 2010 will compare favorably to our record performance in 2009. We remain keenly focused on our various balance sheet and operating initiatives to further enhance shareholder value.”

Financial Results:

Net loss applicable to common shareholders was $90.1 million, or $0.46 per share (diluted and basic), for the three-month period ended December 31, 2009, as compared to revised net loss of $194.6 million, or $1.61 per share (diluted and basic), for the prior-year comparable period.

FFO applicable to common shareholders was a loss of $28.0 million, or $0.14 per share (diluted and basic), for the three-month period ended December 31, 2009, as compared to revised FFO loss of $119.3 million, or $0.98 per share (diluted and basic) for the three-month period ended December 31, 2008. The decrease in net loss for the three-month period ended December 31, 2009, is primarily the result of a reduction in non-cash impairment charges recognized on consolidated and equity method investments and loss on disposition of assets of $93.1 million as well as the recognition in 2009 of a $23.5 million gain relating to the redemption of the Company’s interest in the MDT US LLC joint venture. In addition, excluding the impact of the net non-operating charges detailed above, the core operating results in 2009 compared to 2008 were impacted by several major tenant bankruptcies which occurred in late 2008 and early 2009, as well as asset sales associated with the Company’s deleveraging efforts.

Net loss applicable to common shareholders was $398.9 million, or $2.51 per share (diluted and basic), for the year ended December 31, 2009, as compared to revised net loss of $114.2 million, or $0.96 per share (diluted and basic), for the prior year.

FFO applicable to common shareholders was a loss of $144.6 million, or $0.90 per share (diluted and basic), for the year ended December 31, 2009, as compared to revised FFO income of $169.7 million, or $1.40 per share (diluted and basic), for the year ended December 31, 2008. The net loss for the year ended December 31, 2009, is primarily the result of $442.8 million of net charges, generally non-cash as detailed above, in addition to several major tenant bankruptcies, the release of an approximate $16 million deferred tax valuation allowance in 2008 and the impact of asset sales associated with the Company’s deleveraging efforts.

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 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 (“GAAP”), 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 share dividends, (ii) gains from disposition of depreciable real estate property, except for those sold through the Company’s merchant building program, which are presented net of taxes, and those gains that represent the recapture of a previously recognized impairment charge, (iii) 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. Other real estate companies may calculate FFO in a different manner. FFO excluding the net non-operating charges detailed above is useful to investors as the Company removes these net charges to analyze the results of its operations and assess performance of the core operating real estate portfolio. A reconciliation of net income to FFO is presented in the financial highlights section.

Leasing:

The following results for the three-month period ended December 31, 2009 highlight continued strong leasing activity throughout the portfolio despite the current economic environment:

	•		Executed 166 new leases aggregating approximately 1.1 million square feet and 306 renewals aggregating approximately 1.9 million square feet.

	•		Total portfolio average annualized base rent per occupied square foot, excluding assets in Brazil, as of December 31, 2009 was $12.51, as compared to $12.43 at December 31, 2008.

	•		Core portfolio leased rate was 91.2% as of December 31, 2009, as compared to 92.2% at December 31, 2008 and 90.9% at September 30, 2009.

	•		On a cash basis, rental rates for new leases and renewals decreased 4.6%.

Overall, the Company remains encouraged by the leasing activity achieved during the fourth quarter. While the resulting rental spreads and core occupancy level are much less favorable than what the Company has historically achieved, the Company is continuing to make strides in retenanting the bankruptcy driven vacancy that has impacted the retail sector.

Strategic Transactions:

DDR Macquarie Fund:

In October 2009, the Macquarie DDR Trust unitholders approved the redemption of Developers Diversified’s interest in the MDT US LLC joint venture. A 100% interest in three shopping center assets was transferred to the Company in October 2009 in exchange for its approximate 14.5% ownership interest and a cash payment of $1.6 million. The Company recognized a $23.5 million gain on the redemption transaction.

Otto Transaction:

In 2009, the Company issued 32.9 million shares to Mr. Alexander Otto (the “Investor”) and certain members of his family (collectively with the Investor, the “Otto Family”) resulting in aggregate gross equity proceeds of approximately $112.5 million. The Company also issued warrants to purchase up to 10.0 million common shares with an exercise price of $6.00 per share to the Investor. The share issuances, together with the warrant issuances, are collectively referred to as the “Otto Transaction”.

Dispositions:

The Company sold five shopping center properties, aggregating 0.6 million square feet, in the fourth quarter of 2009, generating gross proceeds of approximately $30.5 million. The Company recorded an aggregate loss on sale of approximately $4.0 million related to these assets in the fourth quarter of 2009. The Company also incurred a $2.3 million net loss on land sales in the fourth quarter. An additional three assets were sold in the first quarter of 2010 for approximately $26 million.

Wholly-Owned and Consolidated Joint Venture Development:

The Company currently has the following wholly-owned and consolidated joint venture shopping center projects under construction:

Expected

Remaining

Initial

Owned

Cost

Anchor

Location

GLA

($ Millions)

Opening *

Description

Boise (Nampa), Idaho

431,689

25.3

2H 07

Community Center

Boston (Norwood), Massachusetts

56,343

4.1

2H 10

Community Center

Austin (Kyle), Texas **

443,092

16.5

2H 09

Community Center

Total

931,124

45.9


*		2H = Second Half; either actual or anticipated

**		Consolidated 50% Joint Venture


In addition to these current projects, several of which will be developed in phases, the Company and its joint venture partners intend to commence construction on various other developments only after substantial tenant leasing has occurred and acceptable construction financing is available, including several international projects.

Wholly-Owned and Consolidated Joint Venture Redevelopments and Expansions:

The Company is currently expanding/redeveloping the following wholly-owned shopping center at a projected aggregate net cost of approximately $89.4 million. At December 31, 2009, approximately $78.2 million of costs had been incurred in relation to this project.


Property		Description
Miami (Plantation), Florida		Redevelop shopping center to include Kohl’s, Dick’s Sporting Goods and other retail tenants

Financings:

In the fourth quarter of 2009, the Company purchased approximately $142.5 million aggregate principal amount of its outstanding senior unsecured notes (primarily convertible unsecured notes) at a discount to par, resulting in a gross gain of approximately $7.9 million prior to the write off of unamortized deferred financing costs. This gain was reduced by approximately $3.9 million due to the adoption of the accounting standard, “Accounting for Convertible Debt That May Be Settled in Cash Upon Conversion,” on January 1, 2009 (“Convertible Debt Restatement”).

In November 2009, the Company closed the securitization of a $400 million, five-year loan that was originated in October 2009. The loan has a blended coupon interest rate of 4.225% and is secured by a pool of 28 assets. The triple-A rated portion of the certificates in the securitization constituted “eligible collateral” under the Term Asset-Backed Securities Loan Facility (“TALF”), provided by the Federal Reserve Bank of New York.

Equity Issuances:

The Company sold approximately 5.1 million of its common shares during the three-month period ended December 31, 2009 through its continuous equity program, generating gross proceeds of approximately $50.0 million. In January 2010, the Company sold approximately 5.0 million of its common shares through the continuous equity program generating gross proceeds of approximately $46.1 million. Substantially all net proceeds were used to repay debt.

In February 2010, the Company issued and sold 42.9 million of its common shares in an underwritten offering. Net proceeds from the sale of the common shares of approximately $338.1 million were utilized to repay debt.

Developers Diversified owns and manages approximately 665 retail operating and development properties in 44 states, Brazil, Canada and Puerto Rico. Totaling more than 147 million square feet, the Company’s shopping center portfolio features open-air, value-oriented neighborhood and community centers, mixed-use centers and lifestyle centers located in prime markets with stable populations and high-growth potential. Developers Diversified is the largest landlord in Puerto Rico and owns a premier portfolio of regional malls in and around Sao Paulo, Brazil. Developers Diversified is a self-administered and self-managed REIT operating as a fully integrated real estate company. Additional information about the Company is available on the Internet at www.ddr.com.

A copy of the Company’s Supplemental Financial/Operational package is available to all interested parties upon request at our corporate office to Kate Deck, Investor Relations Director, Developers Diversified Realty Corporation, 3300 Enterprise Parkway, Beachwood, Ohio 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 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 sell assets on commercially reasonable terms; 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 finalization of the financial statements for year ended December 31, 2009. For additional factors that could cause the results of the Company to differ materially from these indicated in the forward-looking statements, please refer to the Company’s Form 10-K as of December 31, 2008. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

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


	Three-Month Period						Year Ended
	Ended December 31,						December 31,
	2009			2008 ^(F)			2009			2008 ^(F)
Revenues:
Minimum rents ^(A)	$	138,056		$	146,265		$	543,911		$	589,775
Percentage and overage rents ^(A)		3,490			4,002			8,061			8,950
Recoveries from tenants		44,794			45,127			179,181			189,650
Ancillary and other property income		7,502			6,182			23,103			21,760
Management, development and other fee income		14,489			15,588			57,684			62,890
Other ^(B)		1,189			1,359			7,367			8,743

		209,520			218,523			819,307			881,768

Expenses:
Operating and maintenance ^(C)		38,629			38,395			144,842			139,665
Real estate taxes		27,447			26,001			109,627			104,154
Impairment charges ^(D)		9,055			75,263			80,641			75,263
General and administrative ^(E)		20,896			20,275			79,003			81,882
Termination of equity award plan and change in control ^(E)		—			15,837			15,362			15,837
Depreciation and amortization		56,463			61,760			227,185			228,619

		152,490			237,531			656,660			645,420

Other income (expense):
Interest income		2,564			2,687			12,109			5,458
Interest expense ^(F)		(64,863	)		(62,097	)		(237,943	)		(245,368	)
Gain on repurchases of senior notes		2,690			10,255			145,050			10,455
Loss on equity derivative instruments ^(G)		(1,597	)		—			(199,797	)		—
Other expenses ^(H)		(19,925	)		(20,792	)		(29,412	)		(28,251	)

		(81,131	)		(69,947	)		(309,993	)		(257,706	)

Loss before equity in net loss of joint ventures, impairment of joint venture investments, gain on redemption of joint venture interests, tax benefit of taxable REIT subsidiaries and state franchise and income taxes, discontinued operations and gain on disposition of real estate, net of tax		(24,101	)		(88,955	)		(147,346	)		(21,358	)
Equity in net loss of joint ventures ^(I)		(749	)		(4,205	)		(9,733	)		17,719
Impairment of joint venture investments ^(J)		(83,013	)		(106,957	)		(184,584	)		(106,957	)
Gain on redemption of joint venture interests ^(K)		23,471			—			23,865			—
Tax benefit of taxable REIT subsidiaries and state franchise and income taxes		1,202			2,383			691			17,501

Loss from continuing operations		(83,190	)		(197,734	)		(317,107	)		(93,095	)
(Loss) income from discontinued operations ^(L)		(4,465	)		(3,916	)		(95,647	)		3,125

Loss before gain on disposition of real estate		(87,655	)		(201,650	)		(412,754	)		(89,970	)
Gain on disposition of real estate, net of tax ^(M)		905			594			9,127			6,962

Net loss		(86,750	)		(201,056	)		(403,627	)		(83,008	)
Loss attributable to non-controlling interests		7,186			17,053			47,034			11,078

Net loss attributable to DDR	$	(79,564	)	$	(184,003	)	$	(356,593	)	$	(71,930	)

Net loss applicable to common shareholders	$	(90,131	)	$	(194,570	)	$	(398,862	)	$	(114,199	)

Funds From Operations (“FFO”):
Net loss applicable to common shareholders	$	(90,131	)	$	(194,570	)	$	(398,862	)	$	(114,199	)
Depreciation and amortization of real estate investments		53,970			63,603			224,207			236,344
Equity in net loss (income) of joint ventures ^(I)		749			4,205			9,306			(17,719	)
Joint ventures’ FFO ^(I)		11,113			7,433			43,665			68,355
Non-controlling interests (OP Units)		8			—			175			1,145
(Gain) loss on disposition of depreciable real estate		(3,718	)		77			(23,123	)		(4,244	)

FFO applicable to common shareholders		(28,009	)		(119,252	)		(144,632	)		169,682
Preferred dividends		10,567			10,567			42,269			42,269

FFO	$	(17,442	)	$	(108,685	)	$	(102,363	)	$	211,951

Per share data:
Earnings per common share
Basic	$	(0.46	)	$	(1.61	)	$	(2.51	)	$	(0.96	)

Diluted	$	(0.46	)	$	(1.61	)	$	(2.51	)	$	(0.96	)

Dividends Declared	$	0.02		$	—		$	0.44		$	2.07

Funds From Operations — Basic ^(N)	$	(0.14	)	$	(0.98	)	$	(0.90	)	$	1.40

Funds From Operations — Diluted ^(N)	$	(0.14	)	$	(0.98	)	$	(0.90	)	$	1.40

Basic — average shares outstanding		196,399			121,019			158,816			119,843

Diluted — average shares outstanding		196,399			121,019			158,816			119,843

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

(A)		Base and percentage rental revenues for the year ended December 31, 2009, as compared to the prior year, decreased $44.3 million primarily due to store closings related to five major tenant bankruptcies, which approximated $46.1 million, the most significant of which related to the assets formerly occupied by Mervyns, which is 50% owned by the Company through a consolidated joint venture. There was also a decrease in base and percentage rental revenue of $0.3 million related to the Company’s business centers. These decreases were partially offset by an increase of $2.1 million due to the three additional shopping centers acquired as a result of the redemption of the Company’s interest in the MDT US LLC joint venture. Also included in rental revenues for the years ended December 31, 2009 and 2008 is approximately $4.3 million and $8.0 million, respectively, of revenue resulting from the recognition of straight-line rents, including discontinued operations. The decrease in straight-line rents relates primarily to the Mervyns portfolio.

(B)		Other revenue for the three-month periods and years ended December 31, 2009 and 2008 was comprised of the following (in millions):


	Three-Month Period				Year Ended
	Ended December 31,				December 31,
	2009		2008		2009		2008
Lease termination fees	$	0.7	$	0.8	$	4.1	$	5.8
Financing fees		0.2		0.1		1.1		2.0
Other miscellaneous		0.3		0.5		2.2		0.9

	$	1.2	$	1.4	$	7.4	$	8.7

(C)

Included in operating and maintenance, including discontinued operations, is the following:


	Three-Month Period				Year Ended
	Ended December 31,				December 31,
	2009		2008		2009		2008
Bad debt expense	$	5.4	$	8.5	$	16.1		$18.7
Ground rent expense ^(a)		1.3		1.1		4.8		4.2


(a)		Includes non-cash expense for each of the three-month periods ended December 31, 2009 and 2008 of approximately $0.5 million, and for the years ended December 31, 2009 and 2008, of approximately $1.9 million and $1.8 million, respectively, related to the straight-line of ground leases.

(D)

The Company recorded impairment charges during both the three-month period and year ended December 31, 2009 on consolidated assets that are either under contract or being marketed for sale, as the book basis of the assets was in excess of the estimated fair market value. Of this amount, $7.8 million and $68.7 million was recorded in the three months and year ended December 31, 2009, related to impairment charges on 14 assets formerly occupied by Mervyns, of which the Company’s proportionate share was $3.9 million and $33.6 million, respectively, after adjusting for the allocation of loss to the non-controlling interest in this consolidated joint venture. An additional $74.1 million in impairment charges were reported for the year ended December 31, 2009 as part of discontinued operations (see footnote L).

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

(E)		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 years ended December 31, 2009 and 2008, general and administrative expenses were approximately 5.4% and 5.2% of total revenues, respectively, including joint venture and managed property revenues. During the year ended December 31, 2009, the Company recorded $15.4 million of non-cash charges as a result of the change in control provisions included in the Company’s equity-based award plans triggered by the Otto Transaction. In addition, during the year ended December 31, 2008, the Company recorded a non-cash charge of approximately $15.8 million related to the termination of a supplemental equity award plan. Excluding these charges, general and administrative expenses were 4.5% and 4.3% of total revenues for the years ended December 31, 2009 and 2008, respectively.

(F)		In 2009, the Company adopted the standard, “Accounting for Convertible Debt That May be Settled in Cash Upon Conversion.” The adoption of this standard required the Company to restate its interest expense and record non-cash interest-related charges of $3.3 million and $13.1 million, net of capitalized interest, for the three-month period and year ended December 31, 2008, respectively. In addition, as a result of the adoption of this standard, the gain on repurchases of senior notes was reduced by $1.1 million for the three-month period and year ended December 31, 2008. The Company recorded non-cash interest expense of approximately $2.5 million and $12.2 million for the three-month period and year ended December 31, 2009, respectively, in accordance with this new accounting standard.

(G)		Represents the non-cash impact of the valuation adjustments for the equity derivative instruments issued as part of the Otto Transaction.

(H)		Other income (expenses) for the fourth quarter primarily related to the write off of costs related to abandoned development projects and other transactions of $4.0 million, debt extinguishment costs of $13.9 million and litigation-related expenditures of $2.1 million. Other expenses for the year ended December 31, 2009 also included a reserve associated with a mezzanine note receivable of $5.4 million and additional litigation-related expenditures offset by a $2.8 million gain on the sale of Macquarie DDR Trust units (“MDT units”). Other income (expense) in 2008 primarily related to abandoned development projects and other transactions of $13.6 million, a $5.4 million loan loss reserve associated with a note receivable as well as litigation costs related to a potential liability associated with a legal verdict.

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

(I)

The following is a summary of the combined operating results of the Company’s joint ventures. The results of the DDR Macquarie Fund are included below through October 20, 2009, the date that the Company’s interest in MDT US LLC was redeemed:


	Three-Month Period						Year Ended
	Ended December 31,						December 31,
	2009			2008			2009			2008
Revenues from operations ^(a)	$	190,444		$	226,433		$	852,710		$	925,358


Operating expenses		74,076			80,904			328,080			322,103
Impairment charges ^(b)		389,412			—			389,412			—
Depreciation and amortization of real estate investments		55,528			64,667			242,384			236,748
Interest expense ^(c)		70,408			81,574			308,368			303,532

		589,424			227,145			1,268,244			862,383

(Loss) income from operations before tax expense and discontinued operations		(398,980	)		(712	)		(415,534	)		62,975
Income tax expense		(2,948	)		(3,485	)		(10,013	)		(15,479	)
(Loss) income from discontinued operations, net of tax ^(d)		(74	)		(2,652	)		(31,140	)		1,476
Income (loss) on disposition of discontinued operations, net of tax ^(e)		64			7,364			(19,448	)		7,364
Gain (loss) on disposition of assets ^(f)		843			(18	)		(25,973	)		(67	)
Other, net ^(g)		—			(47,791	)		7,153			(31,318	)

Net (loss) income	$	(401,095	)	$	(47,294	)	$	(494,955	)	$	24,951

DDR ownership interests ^(h)	$	(22,147	)	$	(5,482	)	$	(34,522	)	$	17,335

FFO from joint ventures are summarized as follows:


Net (loss) income	$	(401,095	)	$	(47,294	)	$	(494,955	)	$	24,951
Gain on disposition of real estate, including discontinued operations		(843	)		(7,364	)		(843	)		(7,350	)
Depreciation and amortization of real estate investments		55,528			65,928			245,000			241,651

	$	(346,410	)	$	11,270		$	(250,798	)	$	259,252

DDR ownership interests ^(h)	$	11,113		$	7,433		$	43,665		$	68,355

DDR joint venture distributions received, net ⁽ⁱ⁾	$	7,963		$	24,467		$	31,455		$	65,957

(a)

Revenues for the three-month periods ended December 31, 2009 and 2008 reflect an approximate $0.3 million reduction and $0.7 million increase, respectively, resulting from the recognition of straight-line rents, of which the Company’s proportionate share was minimal. Revenues for the years ended December 31, 2009 and 2008 included approximately $2.7 million and $6.3 million, respectively, resulting from the recognition of straight-line rents, of which the Company’s proportionate share was $0.2 million and $1.4 million, respectively. Excluding the impact of the redemption of the Company’s interest in MDT US LLC, revenues from operations for the year ended December 31, 2009, as compared to the prior year, decreased

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

		primarily due to store closings related to four major tenant bankruptcies, the impact of which approximated $24 million.

(b)		Impairment charges of $145.0 million and $25.9 million were recorded by the DDRTC Core Retail Fund LLC and DPG Realty Holdings LLC joint ventures, respectively, for both the three-month period and year ended December 31, 2009, related to a combined 22 shopping centers that were under contract to be sold as of December 31, 2009. The Company’s proportionate share of each charge was $0.9 million and $1.7 million, respectively, and was reduced by the impact of the other than temporary impairments recorded on these investments. In addition, Coventry II DDR Bloomfield LLC recorded an impairment charge of $218.5 million related to the development project that is currently suspended, of which the Company’s proportionate share of loss is included in the investment impairment recognized as disclosed in footnote (J).

(c)		Interest expense includes net non-cash charges related to ineffective derivative instruments at the DDR Macquarie Fund of $0.2 million and $6.6 million for the three-month period and year ended December 31, 2009 and $5.8 million and $6.4 million for the three-month period and year ended December 31, 2008, respectively.

(d)		Includes $33.9 million of impairment charges relating to three assets in the DDR Macquarie Fund joint venture that were sold in the third quarter of 2009. The Company’s proportionate share of these impairment losses aggregated $5.5 million, and was reduced by the impact of the other than temporary impairment recorded on this investment in the fourth quarter of 2008.

(e)		Loss on disposition of discontinued operations includes the sale of 13 properties by three separate unconsolidated joint ventures in 2009. These dispositions resulted in a loss of $19.4 million for the year ended December 31, 2009 and excludes the impact of the previously recognized impairments discussed in (d) above. The Company’s proportionate share of the loss on disposition for the year ended December 31, 2009 was $1.4 million and was reduced by the impact of previously recorded impairments on the respective unconsolidated joint ventures, as appropriate.

(f)		An unconsolidated joint venture disposed of a property in the first quarter of 2009, resulting in a loss of $26.7 million of which the Company’s proportionate share was $5.8 million.

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

(g)		Includes the effects of certain derivative instruments that are marked-to-market through earnings from the Company’s equity investment in Macquarie DDR Trust aggregating approximately $7.2 million of income through the Company’s ownership period in the MDT units for the year ended December 31, 2009 and $45.9 million and $29.4 million of loss for the three-month period and year ended December 31, 2008, respectively.

(h)		The Company’s share of joint venture equity in net loss was decreased by $21.4 million and $1.2 million for the three-month periods ended December 31, 2009 and 2008, respectively. The Company’s share of joint venture net loss was decreased by $24.8 million and the equity in net income was increased by $0.4 million for the years ended December 31, 2009 and 2008, respectively. These adjustments relate primarily to basis differences impacting amortization and depreciation, impairment charges and (loss) gain on dispositions.

		At December 31, 2009 and 2008, the Company owned joint venture interests, excluding consolidated joint ventures, in 274 and 329 shopping center properties, respectively.

(i)		Distributions for 2009 include $2.5 million from a foreign investment that have yet to be expatriated to the United States.

(J)		The Company recorded $83.0 million and $184.6 million in impairment charges, for the three-month period and year ended December 31, 2009, as a result of the Company’s determination that certain of its unconsolidated joint venture investments suffered an “other than temporary impairment.” During the three months ended December 31, 2009, these charges primarily related to the Company’s investments in the Coventry II joint ventures and the establishment of a full reserve on a note advanced to that joint venture ($78.3 million). During the year ended December 31, 2009, the Company recorded aggregate charges relating to its interest in the Coventry II joint ventures ($119.3 million), DDRTC Core Retail Fund LLC ($55.0 million), DDR-SAU Retail Fund LLC ($6.2 million) and DPG Realty Holdings LLC ($3.6 million) and Central Park Solon LLC ($0.5 million).

(K)		In October 2009, the Company’s approximate 14.5% interest in the MDT US LLC joint venture was redeemed in exchange for a 100% interest in three shopping center assets and a cash payment of $1.6 million. The Company accounted for this transaction as a step acquisition and as a result recognized a $23.5 million gain.

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

(L)

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


	Three-Month Period Ended						Year Ended
	December 31,						December 31,
	2009			2008			2009			2008
Revenues from operations	$	761		$	13,964		$	24,002		$	61,885


Operating expenses		421			3,540			7,279			17,356
Impairment charges		—			4,601			74,077			4,601
Interest, net		624			3,204			7,484			14,218
Depreciation and amortization of real estate investments		120			3,535			6,782			17,755

Total expenses		1,165			14,880			95,622			53,930

(Loss) income before loss on disposition of real estate		(404	)		(916	)		(71,620	)		7,955
Loss on disposition of real estate, net		(4,061	)		(3,000	)		(24,027	)		(4,830	)

Net (loss) income	$	(4,465	)	$	(3,916	)	$	(95,647	)	$	3,125

(M)		Includes $2.3 million in loss, net of tax, relating to the sale of land parcels.

(N)		For purposes of computing FFO per share (basic), the weighted average shares outstanding were adjusted to reflect the assumed conversion of approximately 0.4 million Operating Partnership Units (“OP Units”) outstanding at December 31, 2009 and 2008, into 0.4 million common shares for the three-month periods ended December 31, 2009 and 2008, on a weighted-average basis, and 0.4 million common shares and 0.6 million common shares for the year ended December 31, 2009 and 2008, respectively, on a weighted-average basis. The weighted average diluted shares and OP Units outstanding, for purposes of computing FFO were approximately 198.3 million and 121.5 million for the three-month periods ended December 31, 2009 and 2008, respectively, and 160.1 million and 121.0 million for the years ended December 31, 2009 and 2008, respectively. For purposes of calculating operating FFO, the weighted average diluted shares and OP Units were 203.5 million and 121.5 million for the three-month periods ended December 31, 2009 and 2008, respectively, and 163.2 million and 121.0 million for the year ended December 31, 2009 and 2008, respectively, which include common stock equivalents relating to equity awards and warrants, which are otherwise anti-dilutive in a net loss position.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands)

Selected Balance Sheet Data ^(A):


	December 31, 2009			December 31, 2008 ^(B)
Assets:
Real estate and rental property:
Land	$	1,971,782		$	2,073,947
Buildings		5,694,659			5,890,332
Fixtures and tenant improvements		287,143			262,809

		7,953,584			8,227,088
Less: Accumulated depreciation		(1,332,534	)		(1,208,903	)

		6,621,050			7,018,185
Construction in progress and land held for development		858,900			882,478
Assets held for sale		10,453			—


Real estate, net		7,490,403			7,900,663
Investments in and advances to joint ventures		420,541			583,767
Cash		26,172			29,494
Restricted cash ^(C)		95,673			111,792
Notes receivable		74,997			75,781
Receivables, including straight-line rent, net		146,809			164,356
Other assets, net		172,011			154,369

	$	8,426,606		$	9,020,222


Liabilities:
Indebtedness:
Revolving credit facilities	$	775,028		$	1,027,183
Unsecured debt		1,689,841			2,402,032
Mortgage and other secured debt		2,713,794			2,437,440

		5,178,663			5,866,655
Dividends payable		10,985			6,967
Other liabilities ^(D)		283,995			281,179

		5,473,643			6,154,801
Redeemable operating partnership units		627			627
Equity		2,952,336			2,864,794

	$	8,426,606		$	9,020,222

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands)

(A)

Amounts include the consolidation of a 50% owned joint venture, DDR MDT MV LLC (“MV LLC”), that owns 31 sites formerly occupied by Mervyns at December 31, 2009, which includes the following (in millions):


	December 31, 2009		December 31, 2008

Real estate, net	$	218.7	$	325.1
Restricted cash		50.5		64.8
Mortgage debt		225.4		258.5
Non-controlling interests		22.4		70.2

(B)

The December 31, 2008 selected balance sheet data was revised to reflect the adoption of two accounting standards in the first quarter of 2009.

	•		In connection with the Convertible Debt Restatement, the Company increased real estate assets by $2.9 million and equity by $52.6 million and decreased unsecured debt by $50.7 million and deferred charges by $1.0 million.

	•		The Company adopted the provisions of the standard, “Non-controlling Interests in Consolidated Financial Statements — an Amendment of ARB No. 51,” which impacted the accounting for transactions with non-controlling shareholders. The Company no longer has a line item in its balance sheet referred to as Minority Interests. Equity at December 31, 2008 has been revised to include $120.1 million attributable to non-controlling interests. Equity at December 31, 2009 includes $89.8 million attributable to non-controlling interests.

(C)		Included in restricted cash are amounts held by MV LLC as noted above. The MV LLC restricted cash is comprised of proceeds received from the seller of the Mervyns portfolio relating to Mervyn’s bankruptcy filing in the third quarter 2008, a capital contribution by the members of MV LLC, and proceeds related to a security deposit letter of credit, net of debt service payments, all of which are required to be held in escrow by the lender. Also included in restricted cash is $45.2 million and $47.0 million at December 31, 2009 and December 31, 2008, respectively, relating to the terms of a bond issue for one of the Company’s projects in Mississippi.

(D)		Includes a $56.1 million non-cash liability relating to the warrants issued in connection with the Otto Transaction as of December 31, 2009. The liability will be reclassified into equity upon ultimate exercise or expiration of the warrants.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands)

Selected Balance Sheet Data (continued):

Combined condensed balance sheets relating to the Company’s joint ventures are as follows:


	December 31, 2009 (a)			December 31, 2008

Land	$	1,782,431		$	2,378,033
Buildings		5,207,234			6,353,985
Fixtures and tenant improvements		146,716			131,622

		7,136,381			8,863,640
Less: Accumulated depreciation		(636,897	)		(606,530	)

		6,499,484			8,257,110
Construction in progress		130,410			412,357

Real estate, net		6,629,894			8,669,467
Receivables, including straight-line rent, net		113,630			136,410
Leasehold interests		11,455			12,615
Other assets		342,192			315,591

	$	7,097,171		$	9,134,083

Mortgage debt ^(b)	$	4,547,711		$	5,776,897
Notes and accrued interest payable to DDR		73,477			64,967
Other liabilities		194,065			237,363

		4,815,253			6,079,227
Accumulated equity		2,281,918			3,054,856

	$	7,097,171		$	9,134,083

(a)		Decreases in real estate assets and mortgage debt from 2008 to 2009 of $2,009.2 million and $1,229.2 million, respectively, are as a result of $1,759.2 million and $1,150.7 million, respectively, relating to the redemption of the Company’s interest in the MDT US LLC joint venture and its liquidation of the MDT units.

(b)		The Company’s proportionate share of joint venture debt aggregated approximately $917.0 million and $1,216.1 million at December 31, 2009 and 2008, respectively. The 2009 amount reflects a decrease of $291.9 million due to the redemption of DDR’s interest in the MDT US LLC joint venture and its liquidation of the MDT units.

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

FINANCIAL HIGHLIGHTS
(In Thousands Except Per Share Information)


	Year Ended December 31,
	2009			2008(1)			2007(1)			2006(1)			2005
FUNDS FROM OPERATIONS:
Net (Loss) Income Applicable to Common Shareholders		($398,862)	(6)		($114,199)	(9)	$	214,008	(11)	$	196,789		$	227,474
Depreciation and Amortization of Real Estate Investments	$	224,207		$	236,344		$	214,396		$	185,449		$	169,117
Equity in Net Loss (Income) From Joint Ventures	$	9,306			($17,719	)		($43,229	)		($30,337	)		($34,873	)
Joint Venture Funds From Operations	$	43,665		$	68,355		$	84,423		$	44,473		$	49,302
Non-Controlling Interests (OP Units)	$	175		$	1,145		$	2,275		$	2,116		$	2,916
Gain on Disposition of Real Estate		($23,123	)		($4,244	)		($17,956	)		($21,987	)		($58,834	)

FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS		($144,632	)	$	169,682		$	453,918		$	376,504		$	355,102
PREFERRED DIVIDENDS	$	42,269		$	42,269		$	50,934	(11)	$	55,169		$	55,169

FUNDS FROM OPERATIONS		($102,363	)	$	211,951		$	504,852		$	431,673		$	410,271


PER SHARE INFORMATION:
Funds From Operations — Diluted		($0.90)	(6)	$	1.40	(9)	$	3.70		$	3.40		$	3.21
Net (Loss) Income — Diluted		($2.51	)		($0.96	)	$	1.75		$	1.79		$	2.08
Dividends	$	0.44		$	2.07		$	2.64		$	2.36		$	2.16

WEIGHTED AVERAGE SHARES AND OPERATING PARTNERSHIP UNITS — FFO		160,130			121,030			122,716			110,826			110,700

DEBT TO TOTAL UNDEPRECIATED ASSETS, INVESTMENTS, CASH & NOTES REC.		54.51	%		58.81	%		56.92	%		54.36	%		52.67	%

GEN. & ADMIN. EXPENSES AS A PERCENTAGE OF TOTAL REVENUES (2)		5.41	%(7)		5.17	%(10)		4.53	%(12)		4.80	%		4.55	%

REVENUES:
DDR Revenues	$	843,309		$	943,653		$	973,690		$	824,725		$	748,571
Joint Venture & Managed Revenues	$	901,960		$	946,340		$	818,029		$	438,885		$	438,103

TOTAL REVENUES (2)	$	1,745,269		$	1,889,993		$	1,791,719		$	1,263,610		$	1,186,675


NET OPERATING INCOME:
DDR Net Operating Income	$	581,611		$	682,566		$	723,196		$	615,007		$	555,291
Joint Venture Net Operating Income	$	532,345		$	617,465		$	544,732		$	288,699		$	280,617

TOTAL NET OPERATING INCOME (3)(4)	$	1,113,956		$	1,300,031		$	1,267,928		$	903,706		$	835,907


REAL ESTATE AT COST:
DDR Real Estate at Cost	$	8,823,720		$	9,109,566		$	8,984,738		$	7,450,693		$	7,029,337
Joint Venture Real Estate at Cost	$	7,266,791	(8)	$	9,275,997		$	8,945,738		$	3,939,707		$	3,470,112

TOTAL REAL ESTATE AT COST (5)	$	16,090,510		$	18,385,564		$	17,930,476		$	11,390,400		$	10,499,449


(1)		Reflects the impact of the Company’s retrospective adoption of the accounting standard “Accounting for Convertible Debt That May be Settled in Cash Upon Conversion.”

(2)		Includes all revenues from discontinued operations as well as joint venture and managed revenues.

(3)		Includes activities 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 December 31, 2009 of $989.3 million (includes $130.4 million of CIP of joint ventures, of which $37.6 million represents the Company’s proportionate share), and at December 31, 2008, 2007, 2006, 2005, CIP aggregated $1,294.8 million, $873.4 million, $611.2 million and $386.2 million, respectively.

(6)		Includes non-operating, primarily non-cash, charges aggregating $442.8 million primarily related to impairments of consolidated investments net of non-controlling interests, a non-cash change in control charge, loss on equity derivative instruments, loan loss reserves, DDR’s proportionate share of joint venture loss on sale of assets and impairments and consolidated loss on sales of assets offset by the gains on repurchases of debt and the gain on redemption of joint venture interests for the year ended December 31, 2009. Excluding these items, operating FFO was $1.83 per diluted share.

(7)		Includes $15.4 million relating to a non-cash change in control charge. Excluding this charge, general and administrative expenses were approximately 4.5% of total revenues.

(8)		Includes the impact of the redemption of the Company’s interest in the MDT US LLC joint venture which reduced the joint venture real estate at cost by $1.6 billion. DDR’s consolidated real estate at cost increased by $113.3 million related to the three assets transferred to the Company in connection with the redemption.

(9)		Includes non-operating, primarily non-cash, charges aggregating $217.8 million primarily related to impairments of consolidated investments net of non-controlling interests, loan loss reserves, DDR’s proportionate share of joint venture loss on sale of assets and impairments and consolidated loss on sales of assets offset by the gains on repurchases of debt. Excluding these items, operating FFO was $3.20 per diluted share.

(10)		Includes $15.8 million for a non-cash charge relating to the termination of an equity award plan. Excluding this charge, general and administrative expenses were approximately 4.3% of total revenues.

(11)		Amounts include original issuance costs associated with the redemption of preferred stock of $5.4 million for the year ended December 31, 2007.

(12)		Includes the former president’s resignation as an executive officer of the Company charge of $4.1 million. Excluding this charge, general and administrative expenses were approximately 4.3% of total revenues.

Financial Highlights 2.1

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

MARKET CAPITALIZATION & FINANCIAL RATIOS
(In Thousands Except Ratios)


	Year Ended December 31,
	2009			2008			2007			2006			2005

DDR DEBT TO UNDEPRECIATED REAL ESTATE ASSETS, INVESTMENTS AND NOTES RECEIVABLE		54.51	%		58.81	%		56.92	%		54.36	%		52.67	%

DDR & JV DEBT TO UNDEPRECIATED REAL ESTATE ASSETS, INVESTMENTS AND NOTES RECEIVABLE		57.45	%		62.20	%		61.01	%		57.20	%		55.44	%

INTEREST COVERAGE RATIO:
Interest Expense (1)	$	226,016		$	241,125		$	261,002		$	215,438		$	184,281
FFO Before Interest and Preferred Dividends (1)	$	578,691		$	683,928		$	776,958		$	648,416		$	594,551

		2.56			2.84			2.98			3.01			3.23
DEBT SERVICE COVERAGE RATIO:
Debt Service (1)	$	249,189		$	268,222		$	291,585		$	247,464		$	217,434
FFO Before Interest and Preferred Dividends (1)	$	578,691		$	683,928		$	776,958		$	648,416		$	594,551

		2.32			2.55			2.66			2.62			2.73
FIXED CHARGES (INCLUDING PREFERRED DIVIDENDS) COVERAGE RATIO:
Fixed Charges (1)	$	291,458		$	310,491		$	337,114		$	302,632		$	272,603
FFO Before Interest and Preferred Dividends (1)	$	578,691		$	683,928		$	776,958		$	648,416		$	594,551

		1.99			2.20			2.30			2.14			2.18
DIVIDEND PAYOUT RATIO:
Common Share Dividends and Operating Partnership Interests	$	64,735	(2)	$	249,757		$	327,183		$	260,069		$	237,856
FFO less preferred dividends, exclusive of non-cash charge associated with preferred stock redemption	$	443,219		$	397,931		$	459,322		$	376,504		$	355,102

		14.6	%(2)		62.8	%		71.2	%		69.1	%		67.0	%


(1)		See page 2.2.b for detailed calculation.

(2)		Includes issuance of common shares with an aggregate value of $50.8 million. Cash payout was 0.02 per quarter, resulting in an actual cash payout ratio of 3.1% in 2009.

Market Capitalization and Financial Ratios 2.2.a

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

MARKET CAPITALIZATION & FINANCIAL RATIOS CONTINUED
(In Thousands)


	Year Ended December 31,
	2009			2008			2007			2006			2005
UNDEPRECIATED REAL ESTATE ASSETS, CASH, INVESTMENTS & NOTES RECEIVABLE
Undepreciated Real Estate Assets	$	8,823,720		$	9,109,566		$	8,984,738		$	7,450,693		$	7,029,337
Undepreciated Real Estate Intangible Assets	$	59,418		$	64,711		$	72,443		$	27,408		$	26,345
Cash and Cash Equivalents, including restricted cash	$	121,845		$	141,286		$	108,505		$	28,378		$	30,655
Notes Receivable	$	74,997		$	75,781		$	18,557		$	18,161		$	24,996
Investments in and Advances to Joint Ventures	$	420,541	(1)	$	583,767		$	638,111		$	291,685		$	275,136

	$	9,500,521		$	9,975,111		$	9,822,354		$	7,816,325		$	7,386,469

DDR & JV UNDEPRECIATED REAL ESTATE ASSETS, CASH, INVESTMENTS & NOTES RECEIVABLE
Undepreciated Real Estate Assets	$	8,823,720		$	9,109,566		$	8,984,738		$	7,450,693		$	7,029,337
Undepreciated Real Estate Intangible Assets	$	59,418		$	64,711		$	72,443		$	27,408		$	26,345
Cash and Cash Equivalents	$	121,845		$	141,286		$	108,505		$	28,378		$	30,655
Notes Receivable or Proportionate Share Thereof	$	76,504		$	141,311		$	19,487		$	35,443		$	116,212
Proportionate Share of JV Undepreciated Real Estate Assets	$	1,529,102		$	1,930,001		$	1,673,987		$	804,738		$	736,109

	$	10,610,589		$	11,386,876		$	10,859,160		$	8,346,659		$	7,938,658

FUNDS FROM OPERATIONS BEFORE INTEREST AND PREFERRED DIVIDENDS
FFO		($144,632	)	$	169,682		$	453,917		$	376,504		$	355,102
Impairments and Other Non-Cash Adjustments	$	587,851	(2)	$	228,249	(4)	$	0		$	0		$	0
Adjustment for Impact of Gains on Early Extinguishment of Debt		($145,050	)		($10,455	)	$	0		$	0		$	0
Interest Expense	$	245,029		$	259,617		$	279,630		$	224,172		$	186,196
Adjustment to Interest Expense for Consolidated Joint Ventures		($6,776	)		($5,434	)		($7,524	)		($7,429	)		($1,915	)
Preferred Dividends, Including Preferred Operating Partnership Interests & Non-Cash Dividends	$	42,269		$	42,269		$	50,934		$	55,169		$	55,169

	$	578,691		$	683,928		$	776,958		$	648,416		$	594,551

DEBT SERVICE
Interest Expense	$	245,029		$	259,617		$	279,630		$	224,172		$	186,196
Adjustment to Interest Expense for Consolidated Joint Ventures		($6,776	)		($5,434	)		($7,524	)		($7,429	)		($1,915	)
Non-cash adjustment to Interest Expense due to Adoption of Accounting Standard for Convertible Debt		($12,238)	(3)		($13,057)	(3)		($11,104)	(3)		($1,305)	(3)	$	0
Recurring Principal Amortization	$	23,174		$	27,096		$	30,583		$	32,026		$	33,154

	$	249,189		$	268,222		$	291,585		$	247,464		$	217,434

FIXED CHARGES
Debt Service	$	249,189		$	268,222		$	291,585		$	247,464		$	217,434
Preferred Dividends, Including Preferred Operating Partnership Interests and excluding Non-Cash	$	42,269		$	42,269		$	45,529		$	55,169		$	55,169

Dividends Relating to Preferred Stock Redemption	$	291,458		$	310,491		$	337,114		$	302,632		$	272,603


(1)		Includes the impact of the redemption of the Company’s interest in the MDT US LLC joint venture in October 2009 which reduced the Company’s investment by $23.7 million as well as aggregate joint venture impairment charges of $184.6 million.

(2)		Adjusted to eliminate net charges related to loss on equity derivative instruments related to Otto investment ($199.8 million), impairment charges on consolidated and equity method investments net of non-controlling interests ($230.0 million), impairment charges on consolidated investments and loss on sales included in discontinued operations ($117.6 million), change in control charge ($15.4 million), impairment charges and losses on asset sales of equity method investments ($19.0 million) and other expenses ($30.0 million) offset by the gain on redemption of joint venture interests ($23.9 million).

(3)		Adjusted to eliminate the impact of the change in accounting for convertible debt pursuant to the retrospective adoption of ASC 470-20.

(4)		Adjusted to eliminate net charges related to impairment charges on consolidated and equity method investments net of non-controlling interests ($163.5 million), impairment charges on consolidated investments and loss on sales included in discontinued operations ($15.3 million), termination of equity award plan ($15.8 million) and other expenses ($33.7 million).

Market Capitalization and Financial Ratios 2.2.b

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Total Market Capitalization as of December 31, 2009 (In Millions) ^{(1) (2) (3)}

Total Market Capitalization as of December 31, 2009 (In Millions) ^{(1) (2) (3)}


	At December 31, 2009					At December 31, 2008
			Percentage					Percentage
	Amount		of Total			Amount		of Total

Common Shares Equity	$	1,870.9		25	%	$	629.7		9	%
Perpetual Preferred Stock	$	555.0		7	%	$	555.0		8	%
Senior Convertible Notes	$	410.7		5	%	$	782.3		11	%
Fixed-Rate Unsecured Debt	$	1,279.2		17	%	$	1,619.7		23	%
Mortgage Debt	$	1,722.2		23	%	$	1,482.7		21	%
Variable-Rate Revolving Credit and Term Debt	$	1,175.0		15	%	$	1,227.2		17	%
Fixed-Rate Revolving Credit and Term Debt	$	400.0		5	%	$	600.0		9	%
Construction Financing	$	191.6		3	%	$	154.8		2	%


Total	$	7,604.6		100	%	$	7,051.4		100	%


Debt to Market Capitalization				68.1	%				83.2	%



Notes:

1.		Market value ($9.26 per share as of December 31, 2009 and $4.88 per share as of December 31, 2008) includes common shares outstanding (201.6 million as of December 31, 2009 and 128.6 million as of December 31, 2008) and operating partnership units equivalent to approximately 0.4 million of the Company’s common shares in each year.

2.		Does not include proportionate share of unconsolidated joint venture debt aggregating $917.0 million and $1,216.1 million at December 31, 2009 and December 31, 2008, respectively.

3.		Consolidated debt includes 100% of consolidated joint venture debt, comprised primarily of debt associated with a joint venture with Macquarie DDR Trust, of which the joint venture partners’ share is $142.3 million and $130.1 million at December 31, 2009 and December 31, 2008, respectively.

Market Capitalization Summary 2.3

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Debt to EBITDA calculation


	Year ended			Quarter ended
	December 31,			December 31,			September 30,
	2009			2009			2009
Debt/EBITDA — consolidated
EBITDA:
Net loss attributable to DDR	$	(356,593	)	$	(79,564	)	$	(137,846	)

Adjustments:
Impairment charges		80,641			9,055			2,653
Non-cash change in control charge (in G&A)		15,362			—			4,871
Depreciation and amortization		227,185			56,463			53,621
Depreciation attributable to non-controlling interests		(2,592	)		(577	)		(546	)
Interest expense		237,943			64,863			57,268
Interest expense attributable to non-controlling interests		(6,401	)		(1,987	)		(1,588	)
Gain on redemption of joint venture interests		(23,865	)		(23,471	)		—
Loss on equity derivative instruments		199,797			1,597			118,174
Other expenses (income), net		29,412			19,925			(2,153	)
Equity in net loss of joint ventures		9,733			749			183
Impairment of joint venture investments		184,584			83,013			61,200
Gain on repurchases of senior notes		(145,050	)		(2,690	)		(23,881	)
Income tax (benefit) expense		(691	)		(1,202	)		639
EBITDA adjustments from discontinued operations⁽¹⁾		112,370			4,805			(3,576	)
Gain on disposition of real estate, net		(9,127	)		(905	)		(7,128	)
Impairment charges applicable to non-controlling interests		(35,248	)		(3,875	)		—

EBITDA before JVs		517,460			126,199			121,891
Pro rata share of JV FFO		43,665			11,113			13,584
Pro rata share of JV impairments, loss on disposition and derivative gains/losses		19,025			2,609			712


EBITDA Consolidated	$	580,150		$	139,921		$	136,187
EBITDA Consolidated — annualized				$	559,684		$	544,748

Consolidated indebtedness	$	5,178,663		$	5,178,663		$	5,165,087
Non-controlling interests’ share of consolidated debt		(142,315	)		(142,315	)		(148,138	)

Adjusted consolidated indebtedness	$	5,036,348		$	5,036,348		$	5,016,949

Gross Debt/EBITDA — consolidated		8.68			9.00			9.21


Ratio reflects Company’s consolidated EBITDA and pro rata share of JV FFO. The JV FFO, which is net of interest expense, reflects the earnings available to the Company to service consolidated debt. In addition, the JV debt is generally non-recourse to the Company.

Debt/EBITDA — pro rata

EBITDA before JVs	$	517,460		$	126,199		$	121,891
Pro rata share of JV EBITDA		125,845			29,838			31,937


EBITDA including pro rata share of JVs	$	643,305		$	156,037		$	153,828
EBITDA including pro rata share of JVs — annualized				$	624,148		$	615,312

Adjusted consolidated indebtedness	$	5,036,348		$	5,036,348		$	5,016,949
Pro rata share of JV debt		917,025			917,025			1,076,660

Total pro rata indebtedness	$	5,953,373		$	5,953,373		$	6,093,609

Gross Debt/EBITDA — pro rata		9.25			9.54			9.90


Ratio includes Company’s pro rata share of JV EBITDA and the Company’s pro rata share of JV debt outstanding.

Notes:
(1) Discontinued operations includes the following EBITDA adjustments:
Impairment charges	$	74,077		$	—		$	—
Interest expense, net		7,484			624			328
Depreciation and amortization		6,782			120			544
Loss (gain) on disposition of real estate, net		24,027			4,061			(4,448	)

EBITDA adjustments from discontinued operations	$	112,370		$	4,805		$	(3,576	)

Debt to EBITDA Calculation 2.4

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

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

Significant Accounting Policies 2.5.a

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

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 redevelopments.

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 years ended December 31, 2009, 2008, 2007, 2006 and 2005, the Company capitalized interest of $21.8 million, $41.1 million, $28.8 million, $20.1 million and $12.5 million, respectively, as adjusted for the retrospective adoption of the accounting standard, “Accounting for Convertible Debt That May be Settled in Cash Upon Conversion.”

•		In addition, the Company capitalized certain construction administration costs of $10.9 million for the year ended December 31, 2009 and $13.9 million, $10.9 million, $10.1 million and $6.2 million for the years ended December 31, 2008, 2007, 2006, and 2005, 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 2.5.b

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Other Real Estate Information

Total Capital Expenditures

•

The Company (wholly owned assets) currently estimates total annual leasing capital expenditures to be approximately $40 million ($0.78 psf of owned GLA) in 2010. This includes costs associated with anchor store re-tenanting related to major tenant bankruptcies.

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.

Non-Income Producing Assets

•

The Company currently estimates the undepreciated cost of its non-income producing real estate assets and furniture, fixtures and equipment, excluding Mervyns, to be approximately $175 million at December 31, 2009.

Other Real Estate Information 2.6

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

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:


	Year Ended
	December 31,
	2009			2008

Total Revenues — DDR	$	819,307		$	881,768
Total Revenues — Combined Joint Ventures		852,710	(a)		925,358
Operating and Maintenance — DDR		(144,842	)		(139,665	)
Real Estate Taxes — DDR		(109,627	)		(104,154	)
Operating and Maintenance and Real Estate Taxes- Combined Joint Ventures		(328,080)	(a)		(322,103	)


Combined NOI	$	1,089,468		$	1,241,204


Total Same Store NOI	$	904,321	(a)	$	938,430		(3.6	%)
Property NOI from other operating segments		185,147			302,774


Combined NOI	$	1,089,468		$	1,241,204


(a)		The actual combined joint venture results for the year ended December 31, 2009 include the activity of the MDT US LLC joint venture through the redemption date of October 20, 2009. However, for purposes of calculating Same Store NOI, the results for the assets within the MDT US LLC joint venture not retained by the Company were excluded from both 2009 and 2008.

Reconciliation of Supplemental Non-GAAP Financial Measures 2.7.a

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

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

Table 2 — Developers Diversified Realty Corporation

Reconciliation of Funds From Operations (FFO):


	Three Months Ended						Year Ended
	December 31,						December 31,
	2009			2008			2009			2008

FUNDS FROM OPERATIONS:
Net Loss Applicable to Common Shareholders	$	(90,131	)	$	(194,570	)	$	(398,862	)	$	(114,199	)
Depreciation and Amortization of Real Estate Investments		53,970			63,603			224,207			236,344
Equity in Net Loss (Income) From Joint Ventures		749			4,205			9,306			(17,719	)
Joint Venture Funds From Operations		11,113			7,433			43,665			68,355
Non-Controlling Interests (OP Units)		8			—			175			1,145
(Gain) Loss on Sales of Real Estate		(3,718	)		77			(23,123	)		(4,244	)

FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS	$	(28,009	)	$	(119,252	)	$	(144,632	)	$	169,682


Preferred Dividend Charges		10,567			10,567			42,269			42,269

FUNDS FROM OPERATIONS	$	(17,442	)	$	(108,685	)	$	(102,363	)	$	211,951


ADDITIONAL NON-CASH DISCLOSURES:
Below Market Rent Amortization	$	(92	)	$	(229	)	$	(537	)	$	(943	)
Pro Rata Share of JV Below Market Rent Amortization		(3	)		(41	)		(95	)		(51	)

Debt Premium Amortization Income	$	(794	)		(916	)	$	(3,542	)	$	(4,620	)
Pro Rata Share of JV Debt Premium Amortization Expense		(9	)		7			32			23

Convertible Debt Accretion	$	2,450		$	3,814		$	12,238		$	15,256

Reconciliation of Supplemental Non-GAAP Financial Measures 2.7.b

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

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

Table 3 — Developers Diversified Realty Corporation

Summary of Consolidated Transactional Income


	Three Months Ended						Year Ended
	December 31,						December 31,
	2009			2008			2009			2008			Income Statement Caption

Transactional Income Included in FFO
Consolidated
Gains on Dispostions, Net of Tax	$	27		$	46		$	529		$	404		Gain on Disposition of Real Estate, Net of Tax
Loss on Sales from Discontinued Operations		(4,401	)		(2,892	)		(43,356	)		(8,720	)	Loss on Disposition of Discontinued Operations
Land Sale (Loss) Gain		(2,500	)		517			4,804			6,204		(Loss) Gain on Disposition of Real Estate

	$	(6,874	)	$	(2,329	)	$	(38,023	)	$	(2,112	)

Transactional Income NOT Included in FFO
Consolidated
Gains on Dispostions, Net of Tax	$	3,378		$	31		$	3,794		$	354		Gain on Disposition of Real Estate, Net of Tax
Gain (loss) on Sales from Discontinued Operations		340			(108	)		19,329			3,890		Gain (loss) on Disposition of Discontinued Operations

	$	3,718		$	(77	)	$	23,123		$	4,244		FFO Reconciliation


Gain on Disposition of Real Estate, net of tax
Gains on Dispostions, Net of Tax	$	27		$	46		$	529		$	404
Land Sale (Loss) Gain		(2,500	)		517			4,804			6,204
Gains on Dispostions, Net of Tax		3,378			31			3,794			354

	$	905		$	594		$	9,127		$	6,962		Consolidated Income Statement


Loss on Disposition of Real Estate From Discontinued Operations, net
Loss on Sales from Discontinued Operations	$	(4,061	)	$	(3,000	)	$	(24,027	)	$	(4,830	)	Consolidated Income Statement

Reconciliation of Supplemental Non-GAAP Financial Measures 2.7.c

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

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

Table 4 — Developers Diversified Realty Corporation

Summary of Joint Venture Transactional Income


	Three Months Ended					Year Ended
	December 31,					December 31,
	2009		2008			2009			2008			Income Statement Caption

Transactional Income Included in FFO
Joint Ventures
Loss on Sales from Discontinued Operations	$	64	$	—		$	(19,448	)	$	—		Loss on Disposition of Discontinued Operations, net of tax
Land Sale Gains and Loss on Disposition of Real Estate		—		(18	)		(26,816	)		(53	)	Loss on Disposition of Assets

	$	64	$	(18	)	$	(46,264	)	$	(53	)

DDR’s Proportionate Share	$	—	$	(5	)	$	(1,429	)	$	(12	)


Transactional Income NOT Included in FFO
Joint Ventures
Gain on Sales from Discontinued Operations	$	—	$	7,364		$	—		$	7,364		Gain (Loss) on Disposition of Discontinued Operations, net of tax
Gain (Loss) on Sales		843		—			843			(14	)	Loss on Disposition of Assets

	$	843	$	7,364		$	843		$	7,350

DDR’s Proportionate Share (a)	$	177	$	(2	)	$	(5,186	)	$	(5	)


Gain on Sales of Real Estate, Net of Tax
Land Sale Gains and Loss on Disposition of Real Estate	$	—	$	(18	)	$	(26,816	)	$	(53	)
Gain (Loss) on Sales		843		—			843			(14	)

	$	843	$	(18	)	$	(25,973	)	$	(67	)	Loss on Disposition of Assets


Gain on Sales of Real Estate From Discontinued Operations
Loss on Sales from Discontinued Operations included in FFO	$	64	$	—		$	(19,448	)	$	—
Gain on Sales from Discontinued Operations NOT included in FFO		—		7,364			—			7,364

	$	64	$	7,364		$	(19,448	)	$	7,364		Loss on Disposition of Discontinued Operations, net of tax


(a)		Included in loss of disposition of assets for the year ended December 31, 2009 is the Company’s transfer of its interest in a Coventry II Fund asset (Ward Parkway).

Reconciliation of Supplemental Non-GAAP Financial Measures 2.7.d

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Activity
Non-Cash Expense — Equity Derivative Instruments
(In millions except share and per share amounts)
(Unaudited)

Description

The following instruments were approved for issuance on April 9, 2009 upon approval by the Company’s shareholders of the Stock Purchase Agreement dated February 23, 2009 between Mr. Alexander Otto and the Company. These equity instruments are/were required to be marked-to-market through earnings pursuant to the provisions of ASC 815-40-15 due to certain downward price protection provisions in the agreement.


	Shares		Contract Price		Term		Settlement
Forward — Tranche I		15,000,000	$	3.50	n/a		11-May-09
Forward — Tranche II		15,000,000	$	4.00		n/a	18-Sep-09
Warrants — Tranche I		5,000,000	$	6.00	May-14			n/a
Warrants — Tranche II		5,000,000	$	6.00	Sep-14			n/a

Note: The number of shares and/or contract prices are subject to certain adjustments as a result of stock dividends and/or future issuances (if any) of our common stock at amounts below a defined price as described in the Stock Purchase Agreement.

Instrument Valuation


																			Most Recent
	Market Value As of — Asset / (Liability) — 2009																		Quarterly Change
	April 9th			May 11th			June 30th			September 18th			September 30th			December 31st			Expense/(Income)
Forward — Tranche I	$	2.4	(a)	$	(35.6	)(b)		n/a			n/a			n/a			n/a		$	—
Forward — Tranche II		10.0	(a)		n/a			(21.7	)		(104.9	)(c)		n/a			n/a			—
Warrants — Tranche I		(4.5	)		n/a			(9.6	)		n/a			(27.0	)		(27.8	)		0.8
Warrants — Tranche II		(4.7	)		n/a			(9.9	)		n/a			(27.5	)		(28.3	)		0.8

	$	3.2		$	(35.6	)	$	(41.2	)	$	(104.9	)	$	(54.5	)		(56.1	)(d)	$	1.6


Closing value of Company’s common shares — As of:	$	3.12		$	5.48		$	4.88		$	9.82		$	9.24		$	9.26
Increase in share price since April 9, 2009:				$	2.36		$	1.76		$	6.70		$	6.12		$	6.14

Non-Cash Expense


	Three Months Ended				Year Ended
	December 31,				December 31,
	2009		2008		2009		2008

Forward — Tranche I	$	—	$	—	$	38.0	$	—
Forward — Tranche II		—		—		114.9		—
Warrants — Tranche I		0.8		—		23.3		—
Warrants — Tranche II		0.8		—		23.6		—


TOTAL	$	1.6	$	—	$	199.8	$	—


(a)		Initial valuation due to the closing trading value of the Company’s stock of $3.12 on April 9, 2009 which was less than the respective instrument contract price (including the impact of the first quarter declared stock dividends).

(b)		Upon settlement of the Forward-Tranche I (“Tranche I”) on May 11, 2009 (the “Settlement Date”), the Company received cash proceeds of $52.5 and issued approximately 16.1 million of its common shares. Based upon the change in market value of Tranche I from the original valuation date of April 9th as compared to the Settlement Date, the Company recognized an expense of approximately $38.0. The change in market value of Tranche I was derived predominantly from an increase in the closing trading price of our common stock of $2.36 per share since the initial valuation date.

(c)		Upon settlement of the Forward-Tranche II (“Tranche II”) on September 18, 2009 (the “Settlement II Date”), the Company received cash proceeds of $60.0 and issued approximately 16.8 million of its common shares. Based upon the change in market value of Tranche II from the original valuation date of April 9th as compared to the Settlement II Date, the Company recognized an expense of $114.9.

(d)		Represents a non-cash obligation classified in other liabilities in the condensed consolidated balance sheet that will be reclassified into equity upon ultimate exercise or expiration.

Non-Cash Expense — Equity Derivative Instruments 2.8

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Joint Venture Investment Summary
(in millions)
as of December 31, 2009


			DDR Ownership			Consolidated	Number of							Promoted Interest
	Legal Name	Partner(s)	%			(Yes/No)	Properties			Gross Book Value		Debt		(Yes/No)
1	DDRTC Core Retail Fund, LLC	TREA Retail Property Portfolio 2006, LLC (TIAA) (85%)		15.0	%	No		66		$	2,815.1	$	1,718.4	Yes
2	DDR Domestic Retail Fund I	DDR Domestic Retail Fund I (80%)		20.0	%	No		63		$	1,464.1	$	967.0	Yes
3	Investments with Macquarie (Management LLC and MDT PS LLC)	Macquarie Bank Ltd (MBL) / Macquarie DDR Trust (MDT)	Various			No		6		$	121.8	$	86.0	Yes
4	DDR MDT MV LLC (Mervyns) ^(A)	Macquarie DDR Trust (MDT) (50%)		50.0	%	Yes		31		$	244.4	$	225.4	Yes
5	Coventry II DDR Bloomfield LLC	Coventry II Fund (80%)		20.0	%	No		1	^(B)	$	4.7	$	39.2	Yes
6	Coventry II DDR Buena Park LLC	Coventry II Fund (80%)		20.0	%	No		1		$	106.8	$	61.0	Yes
7	Coventry II DDR Fairplain LLC	Coventry II Fund (80%)		20.0	%	No		1		$	32.4	$	16.0	Yes
8	Coventry II DDR Marley Creek LLC	Coventry II Fund (80%)		20.0	%	No		1		$	13.4	$	10.8	Yes
9	Coventry II DDR Montgomery Farm LLC	Coventry II Fund (80%)		20.0	%	No		1		$	177.1	$	134.0	Yes
10	Coventry II DDR Phoenix Spectrum LLC	Coventry II Fund (80%)		20.0	%	No		1		$	89.9	$	46.0	Yes
11	Coventry II DDR SM LLC	Coventry II Fund (80%)		20.0	%	No		42		$	131.7	$	104.9	Yes
12	Coventry II DDR Totem Lake LLC	Coventry II Fund (80%)		20.0	%	No		1		$	42.1	$	29.5	Yes
13	Coventry II DDR Tri County LLC	Coventry II Fund (80%)		20.0	%	No		1		$	231.1	$	164.4	Yes
14	Coventry II DDR Westover LLC	Coventry II Fund (80%)		20.0	%	No		1		$	29.8	$	20.8	Yes
15	RVIP IIIB LP	Prudential Real Estate Advisors (74.25%)		25.75	%	No		1		$	91.5	$	60.0	Yes
16	RVIP VII LLC	Prudential Real Estate Advisors (79%)		21.0	%	No		2		$	124.7	$	70.4	Yes
17	RVIP VIII LP	Prudential Real Estate Advisors (74.25%)		25.75	%	No		1		$	33.7	$	23.4	Yes
18	DPG Realty Holdings LLC	Prudential Insurance Co. of America (90%)		10.0	%	No		9		$	74.5	$	4.5	No
19	TRT DDR Venture I General Partnership	TRT-DDR Joint Venture I Owner LLC (90%)		10.0	%	No		3		$	160.3	$	110.0	Yes
20	Sonae Sierra Brazil BV Sarl	Sonae Sierra, SGPS, SA (50%)		50.0	%	No		10		$	574.7	$	97.7	No
21	DDR-SAU Retail Fund, LLC	Special Account - U, L.P. (State of Utah ) (80%)		20.0	%	No		29		$	309.7	$	226.2	No
22	Cole MT Independence Missouri JV LLC	Cole Realty Advisors, Inc. (85.5%)		14.5	%	No		1		$	61.4	$	34.1	No
23	DDRA Community Centers Five, L.P.	DRA Advisors (50%)		50.0	%	No		5		$	240.0	$	280.0	No
24	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		$	206.2	$	150.5	Yes
25	Lennox Town Center LTD.	Casto Properties (50%)		50.0	%	No		1		$	21.0	$	27.0	No
26	Sun Center Limited	Casto Properties (20.55%)		79.45	%	No		1		$	25.8	$	18.1	No
27	DOTRS LLC	State Teachers Retirement Board of Ohio (50%)		50.0	%	No		1		$	26.6	$	21.0	No
28	Jefferson County Plaza LLC	The Sansone Group (50%)		50.0	%	No		1		$	7.0	$	3.6	No
29	Sansone Group/ DDRC LLC	The Sansone Group (50%)		50.0	%	No		—		$	0.0	$	0.0	No
30	Shea & Tatum Assoc. LP (Paradise Village)^(A)	Churchill Family Trust (33%)		67.0	%	Yes		1		$	27.8	$	30.0	No
31	Other Joint Ventures		Various			Yes/No		23		$	479.2	$	71.3	Yes

	TOTALS							319		$	7,968.5	$	4,851.2


(A)		Joint Venture is included in consolidated operating results of DDR.

(B)		Property is under development.

Joint Venture Investment Summary 3.1

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Joint Ventures (Combining Financial Information)⁽¹⁾
(in millions)
Combining Balance Sheets
as of December 31, 2009


				DDR			Investments			Coventry II			Coventry II			Coventry II			Coventry II
	DDRTC Core			Domestic			with			DDR			DDR			DDR			DDR
	Retail Fund LLC			Retail Fund I			Macquarie			Bloomfield LLC			Buena Park LLC			Fairplain Plaza LLC			Marley Creek LLC
Real estate assets	$	2,815.1		$	1,464.1		$	121.8		$	4.7		$	106.8		$	32.4		$	13.4
Accumulated depreciation		(200.4	)		(91.4	)		(8.5	)		0.0			(10.3	)		(1.9	)		(0.8	)

Real estate, net		2,614.7			1,372.7			113.3			4.7			96.5			30.5			12.6

Receivables, net		25.1			18.1			1.4			0.0			2.4			0.5			0.2
Other assets		100.9			56.7			8.7			0.0			0.9			1.4			0.2
Disproportionate share of equity		—			—			—			—			—			—			—

	$	2,740.7		$	1,447.5		$	123.4		$	4.7		$	99.8		$	32.4		$	13.0


Mortgage debt	$	1,718.4		$	967.0		$	86.0		$	39.2		$	61.0		$	16.0		$	10.8
Amounts payable to DDR		0.4			1.0			0.0			67.5			0.0			0.0			0.0
Other liabilities		31.3			13.9			2.8			32.3			1.1			0.4			0.1

		1,750.1			981.9			88.8			139.0			62.1			16.4			10.9
Accumulated equity (deficit)		990.6			465.6			34.6			(134.3	)		37.7			16.0			2.1
Disproportionate share of equity		—			—			—			—			—			—			—

	$	2,740.7		$	1,447.5		$	123.4		$	4.7		$	99.8		$	32.4		$	13.0


Proportionate share of other assets/liabilities, net	$	14.2		$	12.2		$	2.8			($3.2	)	$	0.4		$	0.3		$	0.0

Disproportionate amount payable to DDR	$	0.0		$	0.0		$	0.0		$	60.8		$	0.0		$	0.0		$	0.0

Combining Statements of Operations
For the year ended December 31, 2009


				DDR			Investments			Coventry II			Coventry II			Coventry II			Coventry II
	DDRTC Core			Domestic Retail			with			DDR			DDR			DDR			DDR
	Retail Fund LLC			Fund I			Macquarie			Bloomfield LLC			Buena Park LLC			Fairplain Plaza LLC			Marley Creek LLC
Revenues from operations	$	231.8		$	128.0		$	11.8			($0.0	)	$	12.5		$	3.4		$	1.2
Rental operation expenses(3)		(226.1	)⁽³⁾		(55.3	)		(4.8	)		(219.6	)⁽³⁾		(6.4	)		(1.5	)		(0.6	)

Net operating income		5.7			72.7			7.0			(219.6	)		6.1			1.9			0.6
Depreciation and amortization expense		(82.9	)		(46.8	)		(3.5	)		0.0			(2.7	)		(0.6	)		(0.3	)
Interest expense		(89.6	)		(55.9	)		(5.3	)		(12.0	)		(1.0	)		(0.6	)		(0.2	)

Income (loss) before gain on sale of real estate		(166.8	)		(30.0	)		(1.8	)		(231.6	)		2.4			0.7			0.1
Tax expense		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Other gain, net		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
Discontinued operations		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
Disproportionate share of income		—			—			—			—			—			—			—

Net income (loss)		($166.8	)		($30.0	)		($1.8	)		($231.6	)	$	2.4		$	0.7		$	0.1
DDR ownership interest		15	%		20	%		***			***			20	%		20	%		20	%

		($25.0	)		($6.0	)	$	0.0			($2.6	)	$	0.5		$	0.1			($0.0	)
Amortization of basis differential		22.4			0.9			0.0			0.6			—			—			—

		($2.6	)		($5.1	)	$	0.0			($2.0	)	$	0.5		$	0.1			($0.0	)


Proportionate share of net operating income (4)	$	0.9		$	14.5		$	0.6			($43.9	)	$	1.2		$	0.4		$	0.1

Proportionate share of interest expense (4)	$	13.4		$	11.2		$	0.4		$	2.4		$	0.2		$	0.1		$	0.0


Funds From Operations (“FFO”):

Net income (loss)		($166.8	)		($30.0	)		($1.8	)		($231.6	)	$	2.4		$	0.7		$	0.1
Depreciation of real property		82.9			46.8			3.5			0.0			2.7			0.6			0.3
(Gain) loss on sale of real estate		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Disproportionate share of income		—			—			—			—			—			—			—

		($83.9	)	$	16.8		$	1.7			($231.6	)	$	5.1		$	1.3		$	0.4
DDR ownership interest		15	%		20	%		***			***			20	%		20	%		20	%

DDR FFO	$	8.0		$	3.4		$	0.2			($2.1	)	$	1.0		$	0.3		$	0.0

Joint Venture Financial Summary 3.2.a

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Joint Ventures (Combining Financial Information)⁽¹⁾
(in millions)
Combining Balance Sheets
as of December 31, 2009


				Coventry II									Coventry II
	Coventry II			DDR						Coventry II			DDR			Coventry II
	DDR			Phoenix			Coventry II			DDR			Tri-County			DDR			RVIP IIIB LP
	Montgomery Farm LLC			Spectrum LLC			Service Holdings LLC			Totem Lake LLC			Mall LLC			Westover LLC			Deer Park, IL			RVIP VII LLC
Real estate assets	$	177.1		$	89.9		$	131.7		$	42.1		$	231.1		$	29.8		$	91.5		$	124.7
Accumulated depreciation		(3.9	)		(8.3	)		($8.2	)		(3.8	)		(18.0	)		(2.2	)		(20.0	)		(24.0	)

Real estate, net		173.2			81.6			123.5			38.3			213.1			27.6			71.5			100.7

Receivables, net		2.5			2.6			9.0			0.1			2.8			1.0			2.1			2.7
Other assets		2.5			1.3			18.7			0.5			7.4			0.1			1.0			6.0
Disproportionate share of equity		—			—			—			—			—			—			—			—

	$	178.2		$	85.5		$	151.2		$	38.9		$	223.3		$	28.7		$	74.6		$	109.4


Mortgage debt	$	134.0		$	46.0		$	104.9		$	29.5		$	164.4		$	20.8		$	60.0		$	70.4
Amounts payable to DDR		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Other liabilities		5.5			2.3			13.0			0.2			7.9			0.2			3.4			14.7

		139.6			48.3			117.9			29.7			172.3			21.0			63.4			85.1
Accumulated equity (deficit)		38.7			37.2			33.3			9.2			51.0			7.7			11.2			24.3
Disproportionate share of equity		—			—			—			—			—			—			—			—

	$	178.2		$	85.5		$	151.2		$	38.9		$	223.3		$	28.7		$	74.6		$	109.4


Proportionate share of other assets/liabilities, net		($0.1	)	$	0.3		$	2.9		$	0.1		$	0.5		$	0.2			($0.1	)		($1.3	)

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

Combining Statements of Operations
For the year ended December 31, 2009


				Coventry II									Coventry II
	Coventry II			DDR						Coventry II			DDR			Coventry II
	DDR			Phoenix			Coventry II			DDR			Tri-County			DDR			RVIP IIIB LP
	Montgomery Farm LLC			Spectrum LLC			Service Holdings LLC			Totem Lake LLC			Mall LLC			Westover LLC			Deer Park, IL			RVIP VII LLC
Revenues from operations	$	10.4		$	11.1		$	23.7		$	2.8		$	17.3		$	3.7		$	13.9		$	12.8
Rental operation expenses (3)		(8.2	)		(5.1	)		(12.3	)		(1.4	)		(8.3	)		(2.0	)		(5.4	)		(4.6	)

Net operating income		2.2			6.0			11.4			1.4			9.0			1.7			8.5			8.2
Depreciation and amortization expense		(2.9	)		(2.2	)		(3.8	)		(0.7	)		(5.7	)		(0.6	)		(3.3	)		(3.0	)
Interest expense		(4.6	)		(0.5	)		(10.7	)		(1.0	)		(10.0	)		(0.6	)		(3.4	)		(3.7	)

Income (loss) before gain on sale of real estate		(5.3	)		3.3			(3.1	)		(0.3	)		(6.7	)		0.5			1.8			1.5
Tax expense		0.0			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Other gain, net		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			0.8
Discontinued operations		0.0			0.0			0.4			0.0			0.0			0.0			0.0			0.0
Gain on sale of discontinued operations		0.0			0.0			(4.6	)		0.0			0.0			0.0			0.0			0.0
Disproportionate share of income		—			—			—			—			—			—			—			—

Net income (loss)		($5.3	)	$	3.3			($7.3	)		($0.3	)		($6.7	)	$	0.5		$	1.8		$	2.3
DDR ownership interest		20	%		20	%		20	%		20	%		20	%		20	%		***			21	%

		($1.1	)	$	0.6			($0.6	)		($0.1	)		($0.7	)	$	0.1		$	0.1		$	1.0
Amortization of basis differential		(0.2	)		(0.1	)		0.1			0.0			0.0			0.0			0.0			(0.4	)

		($1.3	)	$	0.5			($0.5	)		($0.1	)		($0.7	)	$	0.1		$	0.1		$	0.6


Proportionate share of net operating income (4)	$	0.4		$	1.2		$	2.3		$	0.3		$	1.8		$	0.3		$	2.2		$	1.7

Proportionate share of interest expense (4)	$	0.9		$	0.1		$	2.1		$	0.2		$	2.0		$	0.1		$	0.9		$	0.8


Funds From Operations (“FFO”):

Net income (loss)		($5.3	)	$	3.3			($7.3	)		($0.3	)		($6.7	)	$	0.5		$	1.8		$	2.3
Depreciation of real property		2.9			2.2			3.8			0.7			5.7			0.6			3.3			3.0
(Gain) loss on sale of real estate		0.0			0.0			0.0			0.0			0.0			0.0			0.0			(0.8	)
Disproportionate share of income		—			—			—			—			—			—			—			—

		($2.4	)	$	5.5			($3.4	)	$	0.4			($1.0	)	$	1.1		$	5.1		$	4.5
DDR ownership interest		20	%		20	%		20	%		20	%		20	%		20	%		***			21	%

DDR FFO		($0.5	)	$	1.1			($0.7	)	$	0.1			($0.1	)	$	0.2		$	2.5		$	1.9

Joint Venture Financial Summary 3.2.b

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Joint Ventures (Combining Financial Information)⁽¹⁾
(in millions)
Combining Balance Sheets
as of December 31, 2009


																			DDRA
	RVIP VIII			DPG Realty			TRT DDR			Sonae Sierra			DDR-SAU						Community			DDR			Lennox Town
	Tech Ridge LLC			Holdings LLC			Venture I GP			Brazil BV Sarl⁽²⁾			Retail Fund LLC⁽²⁾			Cole			Centers Five LP			Markaz II LLC			Center Limited⁽²⁾
Real estate assets	$	33.7		$	74.5		$	160.3		$	574.7		$	309.7		$	61.4		$	240.0		$	206.2		$	21.0
Accumulated depreciation		(5.5	)		(11.9	)		(11.3	)		(57.7	)		(32.1	)		(1.4	)		(58.0	)		(26.9	)		(5.6	)

Real estate, net		28.2			62.6			149.0			517.0			277.6			60.0			182.0			179.3			15.4

Receivables, net		1.1			1.2			1.8			20.9			7.5			1.1			4.7			1.2			2.0
Other assets		1.8			1.8			3.3			88.8			31.0			1.0			4.4			6.7			0.8
Disproportionate share of equity		—			—			—			—			—			—			—			—			—

	$	31.1		$	65.6		$	154.1		$	626.7		$	316.1		$	62.1		$	191.1		$	187.2		$	18.2


Mortgage debt	$	23.4		$	4.5		$	110.0		$	97.7		$	226.2		$	34.1		$	280.0		$	150.5		$	27.0
Amounts payable to DDR		0.0			0.0			0.0			0.0			0.2			0.0			0.0			0.2			0.0
Other liabilities		1.4			1.4			0.4			46.5			5.1			0.4			2.8			1.2			1.3

		24.8			5.9			110.4			144.2			231.5			34.5			282.8			151.9			28.3
Accumulated equity (deficit)		6.3			59.7			43.7			482.5			84.6			27.6			(91.7	)		35.3			(10.1	)
Disproportionate share of equity		—			—			—			—			—			—			—			—			—

	$	31.1		$	65.6		$	154.1		$	626.7		$	316.1		$	62.1		$	191.1		$	187.2		$	18.2


Proportionate share of other assets/liabilities, net	$	0.4		$	0.2		$	0.5		$	31.6		$	6.7		$	0.3		$	3.1		$	1.3		$	0.7

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 year ended December 31, 2009


																			DDRA
	RVIP VIII			DPG Realty			TRT DDR			Sonae Sierra			DDR-SAU						Community			DDR			Lennox Town
	Tech Ridge LLC			Holdings LLC			Venture I GP			Brazil BV Sarl⁽²⁾			Retail Fund LLC⁽²⁾			Cole			Centers Five LP			Markaz II LLC			Center Limited⁽²⁾
Revenues from operations	$	4.9		$	10.3		$	14.3		$	86.2		$	33.1		$	7.0		$	33.3		$	20.6		$	5.2
Rental operation expenses (3)		(2.3	)		(29.0	)⁽³⁾		(5.3	)		(25.9	)		(13.1	)		(2.0	)		(10.6	)		(8.0	)		(1.8	)

Net operating income		2.6			-18.7			9.0			60.3			20.0			5.0			22.7			12.6			3.4
Depreciation and amortization expense		(1.0	)		(2.4	)		(4.6	)		(15.8	)		(14.2	)		(1.4	)		(6.1	)		(5.5	)		(0.4	)
Interest expense		(0.4	)		(0.5	)		(6.2	)		(8.3	)		(12.3	)		(2.1	)		(15.7	)		(8.0	)		(1.6	)

Income (loss) before gain on sale of real estate		1.2			(21.6	)		(1.8	)		36.2			(6.5	)		1.5			0.9			(0.9	)		1.4
Tax expense		0.0			0.0			0.0			(9.0	)		0.0			0.0			0.0			0.0			0.0
Other gain, net		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			0.2			0.0			0.0			0.0			0.0			0.0			0.0			0.0
Gain on sale of discontinued operations		0.0			(10.3	)		0.0			0.0			0.0			0.0			0.0			0.0			0.0
Disproportionate share of income		—			—			—			—			—			—			—			—			—

Net income (loss)	$	1.2			($31.7	)		($1.8	)	$	27.2			($6.5	)	$	1.5		$	0.9			($0.9	)	$	1.4
DDR ownership interest		25.75	%		10	%		10	%		50	%		20	%		14.5	%		50	%		20	%		50	%

	$	0.6			($2.3	)		($0.2	)	$	12.0			($1.3	)	$	0.2		$	0.5			($0.2	)	$	0.8
Amortization of basis differential		0.0			0.8			0.2			(2.5	)		0.1			0.0			0.4			0.2			0.0

	$	0.6			($1.5	)	$	0.0		$	9.5			($1.2	)	$	0.2		$	0.9		$	0.0		$	0.8


Proportionate share of net operating income (4)	$	0.7			($1.9	)	$	0.9		$	25.6		$	4.0		$	0.7		$	11.3		$	2.5		$	1.7

Proportionate share of interest expense (4)	$	0.1		$	0.1		$	0.6		$	3.5		$	2.5		$	0.3		$	7.8		$	1.6		$	0.8


Funds From Operations (“FFO”):

Net income (loss)	$	1.2			($31.7	)		($1.8	)	$	27.2			($6.5	)	$	1.5		$	0.9			($0.9	)	$	1.4
Depreciation of real property		1.0			2.4			4.6			15.8			14.2			1.4			6.1			5.5			0.4
(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		—			—			—			—			—			—			—			—			—

	$	2.2			($29.3	)	$	2.8		$	43.0		$	7.7		$	2.9		$	7.0		$	4.6		$	1.8
DDR ownership interest		26	%		10	%		10	%		50	%		20	%		14.52	%		50	%		20	%		50	%

DDR FFO	$	0.8			($1.3	)	$	0.3		$	20.9		$	1.5		$	0.4		$	3.5		$	1.1		$	0.9

Joint Venture Financial Summary 3.2.c

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Joint Ventures (Combining Financial Information) (1)
(in millions)
Combining Balance Sheets
as of December 31, 2009


																		DDR’s
	Sun Center						Jefferson County			Sansone Group /		Sold/Acquired						Proportionate
	Limited ⁽²⁾			DOTRS LLC			Plaza LLC			DDRC LLC		and Other JVs⁽⁷⁾			Total			Share
Real estate assets	$	25.8		$	26.6		$	7.0		$	0.0	$	49.6		$	7,266.8		$	1,529.1
Accumulated depreciation		(8.6	)		(6.4	)		(1.3	)		0.0		(8.4	)		(636.9	)		(158.8	)

Real estate, net		17.2			20.2			5.7			0.0		41.2			6,629.9			1,370.3

Receivables, net		0.7			0.7			0.0			0.0		0.3			113.6			29.7
Other assets		1.1			1.0			0.3			3.4		1.8			353.6			96.5
Disproportionate share of equity		—			—			—			—		—			—			(41.2	)(6)

	$	19.0		$	21.9		$	6.0		$	3.4	$	43.3		$	7,097.1		$	1,455.3


Mortgage debt	$	18.1		$	21.0		$	3.6		$	0.0	$	23.4		$	4,547.7		$	917.0
Amounts payable to DDR		0.0			0.0			4.1			0.0		0.0			73.5			9.2
Other liabilities		0.9			0.7			(0.0	)		0.6		2.0			194.0			49.4

		19.0			21.7			7.7			0.6		25.4			4,815.2			975.6
Accumulated equity (deficit)		0.0			0.2			(1.7	)		2.8		17.9			2,281.9			520.9
Disproportionate share of equity		—			—			—			—		—			—			(41.2	)(6)

	$	19.0		$	21.9		$	6.0		$	3.4	$	43.3		$	7,097.1		$	1,455.3


Proportionate share of other assets/liabilities, net	$	0.8		$	0.5		$	0.1		$	1.4		($0.0	)	$	76.8

Disproportionate amount payable to DDR	$	0.0		$	0.0		$	2.0		$	0.0	$	0.0		$	62.8

Combining Statements of Operations
For the year ended December 31, 2009


																			DDR’s
	Sun Center						Jefferson County			Sansone Group /			Sold/Acquired						Proportionate
	Limited ⁽²⁾			DOTRS LLC			Plaza LLC			DDRC LLC			and Other JVs⁽⁷⁾			Total			Share
Revenues from operations	$	4.7		$	4.1		$	0.9		$	1.2		$	142.8		$	852.7		$	194.3
Rental operation expenses (3)		(1.4	)		(1.2	)		(0.4	)		0.0			(55.0	)		(717.6	)		(141.2	)

Net operating income		3.3			2.9			0.5			1.2			87.8			135.1			53.1
Depreciation and amortization expense		(0.8	)		(0.6	)		(0.2	)		0.0			(30.4	)		(242.4	)		(50.5	)
Interest expense		(1.4	)		(1.3	)		(0.5	)		0.0			(50.8	)		(308.4	)		(65.2	)

Income (loss) before gain on sale of real estate		1.1			1.0			(0.2	)		1.2			6.6			(415.7	)		(62.6	)
Tax expense		0.0			0.0			0.0			0.0			(1.0	)		(10.0	)		(3.9	)
Other gain, net		0.0			0.0			0.0			0.0			7.2			7.2			0.5
Gain (loss) on sale of real estate		0.0			0.0			0.0			0.0			(26.8	)		(26.0	)		(5.2	)
Discontinued operations		0.0			0.0			0.0			0.0			(31.8	)		(31.1	)		(6.8	)
Gain on sale of discontinued operations		0.0			0.0			0.0			0.0			(4.6	)		(19.4	)		(2.9	)
Disproportionate share of income		—			—			—			—			—			—			46.4	(7)

Net income (loss)	$	1.1		$	1.0			($0.2	)	$	1.2			($50.4	)		($495.0	)		($34.5	)
DDR ownership interest		79	%		50	%		50	%		50	%		***			***			***

	$	0.9		$	0.5			($0.1	)	$	0.9			($13.2	)		($34.5	)		($34.5	)
Amortization of basis differential		(0.2	)		0.1			—			(0.3	)		2.7			24.8			24.8

	$	0.7		$	0.6			($0.1	)	$	0.6			($10.5	)		($9.7	)		($9.7	)

		—			—			—			—			—			—
Proportionate share of net operating income (4)	$	2.7		$	1.4		$	0.3		$	0.6		$	18.5		$	53.1

Proportionate share of interest expense (4)	$	1.1		$	0.7		$	0.3		$	0.0		$	11.0		$	65.2


Funds From Operations (“FFO”):

Net income (loss)	$	1.1		$	1.0			($0.2	)	$	1.2			($50.4	)		($495.0	)		($34.5	)
Depreciation of real property		0.8			0.6			0.2			0.0			30.4			245.0			51.4
(Gain) loss on sale of real estate		0.0			0.0			0.0			0.0			0.0			(0.8	)		(0.2	)
Disproportionate share of income		—			—			—			—			—			—			27.0	(8)

	$	1.9		$	1.6		$	0.0		$	1.2			($20.0	)		($250.8	)	$	43.7

DDR ownership interest		79	%		50	%		50	%		50	%		***			***

DDR FFO	$	1.5		$	0.8		$	0.0		$	0.9			($2.9	)	$	43.7

Joint Venture Financial Summary 3.2.d

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009



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

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

(3)		Impairment charges of $145.0 million and $25.9 million were recorded by the DDRTC Core Retail Fund and DPG Realty Holdings joint ventures, respectively, related to a combined 22 shopping centers which were under contract to be sold as of December 31, 2009, which the Company’s proportionate share is $0.9 million and $1.7 million, respectively. Coventry II DDR Bloomfield recorded an impairment charge of $218.5 million related to the development project that is currently suspended. The Company recorded aggregate impairment charges on its equity investment in this joint venture in 2009 of $16.5 million, of which $9.6 million related to the fourth quarter of 2009.

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

(5)		Represents residual joint venture interests sold in 2009 (including the Company’s redemption of MDT US LLC joint venture) and other small joint venture investments and land developments. To the extent that DDR is entitled to receive promoted income, DDR’s share of income could exceed the total income recorded by certain joint ventures as assets continue to be liquidated. The DDR Macquarie Fund reported impairment losses on three assets under contract to be sold. Of this amount, approximately $20.2 million was reported as a component of operating expenses and $13.7 million was reported as a component of discontinued operations relating to the one asset classified as held for sale.

(6)		Adjustments represent the effect of promoted equity structures and minority interests. These adjustments are primarily at Sonae Sierra Brazil BV Sarl, RVIP IIIB, RVIP VII, RVIP VIII, Coventry II DDR Bloomfield, Coventry II DDR Marley Creek, Coventry II DDR Montgomery Farm and Coventry II DDR Tri-County Mall 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, RVIP VII, RVIP VIII, Sonae Sierra Brazil BV Sarl and investments with Macquarie and the effect of income allocations as a result of the write-down of the joint venture investment for DPG Realty Holdings, Coventry II Tri-County Mall and Coventry II Service Merchandise.

(8)		Adjustments associated with promoted interests primarily at RVIP IIIB, RVIP VII and RVIP VIII joint ventures as well as investments with Macquarie and the effect of income allocations as a result of the write-down of the joint venture investment for DDRTC Core Retail Fund, DPG Realty Holdings, Coventry II Bloomfield, Coventry II Tri-County Mall and Coventry II Service Merchandise.

***		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. Also see footnote 3 above.

Joint Venture Financial Summary 3.2.e

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Wholly-Owned and Consolidated Capital Transactions (In Millions)


	Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,
	2009			2008			2007
Acquisitions/Transfers	$	130.6	(1)	$	10.9		$	3,048.7	(4)
Completed Expansions Incremental Development Cost		0.0			27.8			32.7
Developments & Construction in Progress		159.7			421.4			429.6
Recurring Tenant Improvements & Third Party Leasing Commissions		14.8			11.6			12.5
Furniture, Fixtures & Equipment		5.9			6.3			13.0
Foreign Currency Adjustments		20.8			(41.3	)		0.0

		331.8			436.7			3,536.5
Less: Real Estate Sales & Joint Venture Transfers		(617.6	) (2)		(312.9	) (3)		(2,001.3	) (5)



Net (Deductions)/Additions	$	(285.8	)	$	123.8		$	1,535.2


(1)		Includes the acquisition of Merriam Village, KS, which was previously owned by a joint venture with Coventry II and the acquisition of Atlanta, GA, Marietta, GA, and Brandon, FL, which were all previously owned by a joint venture with Macquire DDR Trust. Note the acquisition of these assets was generally in exchange for partnership interest and did not involve the use of cash.

(2)		In addition to the asset sales listed on Page 4.2.a that resulted in a loss of $86.9 million, this balance includes gross impairment charges aggregating approximately $154.7 million relating to assets previously occupied by Mervyns and consolidated assets that are either under contract or being marketed for sale, the sale of five assets previously occupied by Mervyns and seven land sales.

(3)		In addition to asset sales ($183.3 million), this balance includes the sale of seven outparcels and gross impairment charges aggregating approximately $75.3 million.

(4)		Includes acquisition of the IRRETI portfolio ($3,018 million), a property in Terrell, TX ($17 million), an additional interest in a San Francisco property, and the redemption of OP units.

(5)		In addition to asset sales ($610 million), this balance includes the following sales to joint ventures: TRT DDR Venture I GP ($99 million), DDR Domestic Retail Fund I ($1,229 million), Macquarie DDR Trust ($50 million); and 11 outparcel sales.

Summary of Joint Venture Capital Transactions (In Millions)


	Year Ended			Year Ended			Year Ended
	December 31,			December 31,			December 31,
	2009			2008			2007
Acquisitions/Transfers	$	15.1	(1)	$	111.4	(4)	$	4,987.4	(5)
Completed Expansions Incremental Development Cost		15.3			52.8			21.9
Developments & Construction in Progress		128.1			315.8			142.7
Recurring Tenant Improvements & Third Party Leasing Commissions		13.5			18.4			9.8
Foreign Currency Adjustments		132.1			(106.2	)		48.5

	$	304.1		$	392.2		$	5,210.3
Less: Real Estate Sales and Dispositions	$	(2,313.3	) (2)(3)	$	(61.9	) (4)	$	(204.3	) (6)



Net (Deductions)/Additions	$	(2,009.2	)	$	330.3		$	5,006.0


(1)		This is a purchase price reclassification adjustment for a prior acquisition, plus the acquisition of an additional 17% interest in the Metropole Shopping Center by Sonae Sierra Brazil BV Sarl.

(2)		Includes the impact of the redemption of the Company’s interest in the MDT US LLC joint venture ($1,600.8 million).

(3)		In addition to the asset sales listed on Page 4.2.b that had a combined loss and impairment charge of $67.8 million, this balance includes the disposition of the Ward Parkway shopping center located in Kansas City, MO ($64.9 million), the transfer to DDR of the Merriam Village, KS project ($45.5 million), and impairment charges at the Coventry II DDR Bloomfield ($218.5 million), DPG Realty Holdings ($25.9 million), and DDRTC Core Retail Fund ($145.0 million) joint venture partnerships.

(4)		Includes the acquisition of a shopping center located in Independence, MO from the joint venture with Macquarie DDR Trust, which is also reflected as a disposition.

(5)		Includes the acquisition of assets from DDR by DDR Domestic Retail Fund I ($1,463 million), Dividend Capital Total Realty Trust ($160 million) and the joint venture with Macquarie DDR Trust ($50 million). Also includes the formation of DDRTC Core Retail Fund ($2,942 million), the acquisition of the DDR SAU Retail Fund ($309 million), and the acquisition of an additional property interest by Sonae Sierra Brazil BV Sarl.

(6)		Includes the sale of seven shopping centers ($168 million), which were previously owned by a joint venture with Kuwait Financial Centre, to the DDR Domestic Retail Fund I and the sale of vacant land in TX and CO.

Summary of Wholly-Owned and Joint Venture Capital Transactions 4.1

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Operating Property Acquisitions

There were no significant third party acquisitions for the year ended December 31, 2009.

Operating Property Dispositions


			DDR’s					Gross Sales
Disposition			Effective					Price
Date	Location	Property Name	Ownership			Total GLA		(Millions)		Major Tenants
Consolidated
1/15/2009	Ormond Beach, FL	Ormond Towne Square		100	%		234,042	$	22.0	Beall’s, Ross Dress for Less, Publix Super Market
4/9/2009	Tyler, TX	CVS Pharmacy		100	%		9,504	$	1.5	CVS
4/21/2009	Orange Park, FL	The Village Shopping Center		100	%		72,511	$	5.9	Beall’s
5/22/2009	Brick, NJ	Brick Center Plaza		100	%		114,028	$	14.9	Best Buy, Bed Bath & Beyond
5/29/2009	Warner Robins, GA	Lowe’s Home Improvement		100	%		131,575	$	9.1	Lowe’s Home Improvement
5/29/2009	Baytown, TX	Lowe’s Home Improvement		100	%		125,357	$	8.9	Lowe’s Home Improvement
6/19/2009	Tonawanda, NY	Sheridan Delaware Plaza		100	%		188,200	$	9.0	Bon Ton Home Store, Tops Markets
6/19/2009	Amherst, NY	Sheridan Harlem Plaza		100	%		58,413	$	3.9
6/19/2009	Dewitt, NY	Dewitt Commons		100	%		306,177	$	27.1	Toys R Us, Old Navy, Marshalls, Bed Bath & Beyond
6/25/2009	Pensacola, FL	Palafox Square		100	%		17,150	$	2.1
7/1/2009	Plant City, FL	Plant City Crossing		100	%		85,252	$	9.5	Publix Super Market
7/9/2009	Los Alamos, NM	Mari-Mac Village		100	%		93,021	$	8.9	Smith’s Food and Drug
7/17/2009	Richland Hills, TX	CVS Pharmacy		100	%		10,908	$	1.9	CVS
7/23/2009	Plattsburgh, NY	Plattsburgh Consumer Square		100	%		491,453	$	27.9	Sam’s Club, WalMart, T.J. Maxx, PetsMart, Michael’s
8/10/2009	Manchester, CT	Manchester Broad Street		100	%		68,509	$	13.0	Stop & Shop
8/12/2009	Amherst, NY	Boulevard Consumer Square		100	%		683,065	$	68.5	Target, Babies R Us, Christmas Tree Shops, Barnes & Noble, Best Buy
8/18/2009	Buffalo, NY	Marshall’s Plaza		100	%		82,196	$	5.5	Marshall’s
9/2/2009	Cullman, AL	Lowe’s Home Improvement		100	%		101,287	$	6.9	Lowe’s Home Improvement
9/8/2009	Gallipolis, OH	Gallipolis Marketplace		100	%		25,950	$	3.4
9/11/2009	Amherst, NY	Transit commons (Tops)		100	%		114,177	$	8.9	Tops Markets
9/24/2009	Oshkosh, WI	Walgreens		100	%		13,905	$	3.7	Walgreens
9/24/2009	Rockford, Il	Walgreens		100	%		14,725	$	4.1	Walgreens
10/5/2009	Macedonia, OH (1)	Macedonia Commons		100	%		111,823	$	8.5	Home Depot
11/6/2009	Lexington, KY	North Park Marketplace		100	%		46,647	$	6.1	Staples
11/6/2009	Dublin, OH	Dublin Village Center		100	%		326,912	$	4.8	AMC Theatre
11/23/2009	Wichita, KS	Eastgate Plaza		100	%		255,114	$	12.9	Burlington coat Factory, Office Max, T.J. Maxx, Barnes & Noble, Toys R Us
12/15/2009	Lexington, KY (1)	South Farm Marketplace		100	%		8,309	$	2.0
12/18/2009	West Chester, OH	Kroger		100	%		56,634	$	3.2	Kroger
12/29/2009	Porterville, CA	Porterville Market Place		50	%		76,378	$	3.5

Total Dispositions							3,923,222	$	307.6


(1) This was a sale of a portion of the shopping center.

Note: The Company also sold five former Mervyns locations in the first quarter of 2009.

Wholly-Owned Acquisitions and Dispositions 4.2.a

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Joint Venture Acquisitions

There were no significant third party acquisitions for the year ended December 31, 2009.

Joint Venture Dispositions


			DDR’s						Gross Sales
Disposition			Effective						Price
Date	Location	Property Name	Ownership			JV Partner	Total GLA		(Millions)		Major Tenants
2/19/2009	Lilburn, GA	Five Forks Crossing		10.0	%	Prudential Real Estate Investors		73,910	$	8.1	Kroger
5/20/2009	Batavia, NY	Tops Plaza		14.5	%	Macquarie DDR Trust		37,140	$	4.4	Tops Markets
5/22/2009	St. Petersburg, FL	Tyrone Square		20.0	%	Coventry II		80,703	$	10.5	Joann Fabrics, Homegoods
5/28/2009	Amherst, NY	7370 Transit Road		14.5	%	Macquarie DDR Trust		16,030	$	1.6
6/1/2009	Nashville, TN	The Marketplace		14.5	%	Macquarie DDR Trust		167,795	$	14.4	Lowe’s Home Improvement
7/29/2009	Hamburg, NY	Tops Plaza - Southpark		10.0	%	DPG		84,000	$	7.0	Tops Markets
8/10/2009	Various, NY	Three MDT Properties (Benderson)		14.5	%	Macquarie DDR Trust		633,825	$	39.5	Regal Cinemas, BJ’s Wholesale Club, Dick’s Sporting Goods, Michael’s, WalMart
8/14/2009	New Hartford, NY	New Hartford Consumer Square		14.5	%	Macquarie DDR Trust		514,717	$	51.5	Barnes & Noble, Bed Bath & Beyond, Best Buy, Staples, Michael’s, WalMart, T.J. Maxx
8/26/2009	Lawrenceville, GA	Five Forks Village		10.0	%	DPG		89,064	$	1.9
9/30/2009	Duluth, GA	Southlake Mall		20.0	%	Coventry II		56,225	$	2.2

Total Dispositions								1,753,409	$	141.1

Joint Venture Acquisitions and Dispositions 4.2.b

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Wholly-Owned and Consolidated Development Projects


								Cost		Assets		Estimated
						Estimated		Incurred		Placed in		Initial
		Total		Owned		Net Cost		To Date		Service		Anchor
Location	Project Name	GLA		GLA		(Millions)		(Millions)		(Millions)		Opening		Major Anchors
Projects Substantially Complete
Homestead, FL	Homestead Pavilion		394,916		272,610	$	79.8	$	84.4	$	51.3		2H08	Kohl’s, Sports Authority, Ross Dress for Less, Michaels, Staples , Bed, Bath & Beyond
Elmira (Horseheads), NY	Southern Tier Crossings		697,795		350,987	$	56.5	$	46.2	$	24.2		1H07	Kohl’s, WalMart, Dick’s, Joann Fabrics, PetsMart, Ulta, Mens Warehouse
Raleigh (Apex), NC	Apex Promenade		78,830		72,830	$	11.7	$	11.7	$	6.7		1H09	hhgregg
Projects in Progress
Boise (Nampa), ID	Nampa Gateway Center		921,162		431,689	$	126.7	$	101.4	$	44.8		2H07	JCPenney, Macy’s, The Sports Authority, Idaho Athletic Club
Boston (Norwood), MA	The Shoppes at Elmway Farms		72,243		56,343	$	23.3	$	19.2	$	0.0		2H10
Austin (Kyle), TX (1)	Kyle Marketplace		805,618		443,092	$	77.3	$	60.8	$	9.9		2H09	Target, Kohl’s

			2,970,564		1,627,551	$	375.3	$	323.7	$	136.9


(1) Consolidated joint venture. DDR has a 50% interest.

Land and Construction Related Projects Primarily on Hold (2)


	DDR’s			Total
Location	Effective			Acreage
Ukiah (Mendocino), CA		50	%		75.7
New Haven (Guilford), CT		100	%		26.0
Tampa (Brandon), FL		100	%		46.3
Tampa (Wesley Chapel), FL		100	%		10.0
Atlanta (Douglasville), GA		100	%		28.5
Chicago (Grayslake), IL		50	%		106.0
Kansas City (Merriam), KS		100	%		35.1
Boston, MA (Seabrook, NH)		100	%		50.9
Gulfport, MS		100	%		86.2
Raleigh (Apex), NC		100	%		52.6
San Antonio (Schertz), TX		100	%		85.0
Isabela, Puerto Rico		80	%		11.1
Oconomowoc, WI		50	%		121.6
Toronto (Brampton), CAN		50	%		43.0
Toronto (East Gwillimbury — Bayview/Greenlane), CAN		50	%		39.0
Toronto (East Gwillimbury — Hwy 404/Greenlane East), CAN		50	%		44.0
Toronto (East Gwillimbury — Hwy 404/Greenlane West), CAN		50	%		29.0
Toronto (Richmond Hill), CAN		50	%		52.0
Togliatti, Russia		75	%		61.2
Yaroslavl, Russia		75	%		8.0
Other Misc. Land (14 sites)		100	%	Various

					1,011.2


(2) The costs incurred for these land and construction related projects as of December 31, 2009 were $607.0 million, which includes our partners’ ownership interest of $145.0 million.

Wholly-Owned and Consolidated Developments 4.3.a

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Joint Venture Development Projects


						DDR’s				Estimated		Cost		Assets		DDR’s		Estimated
						Effective			Joint	Net		Incurred		Placed in		Proportionate		Initial
		Total		Owned		Ownership			Venture	Cost		To Date		Service		Cost		Anchor
Location	Project	GLA		GLA		Percentage			Partner	(Millions)		(Millions)		(Millions)		(Millions)		Opening	Major Anchors
Project Substantially Complete
Manaus, Brazil (1)	Manauara		502,529		502,529		47.4	%	Sonae Sierra	$	177.8	$	178.5	$	163.4	$	84.3	1H09	C & A, Riachuelo, Marisa, Renner, Saraiva Megastore, Bemol, Dinamica, Hitech Import
Dallas (Allen), TX	Watters Creek		831,413		797,665		10.0	%	Coventry II/ Trademark Property	$	171.2	$	177.1	$	118.1	$	17.1	1H08	Market Street United, Borders, DSW ShoeWarehouse, The Cheesecake Factory

			1,333,942		1,300,194					$	349.0	$	355.6	$	281.5	$	101.4


(1) The increase in the estimated net cost is due to foreign currency translation rates.

Joint Venture Developments 4.3.b

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Development Assets Placed in Service (In Millions)


			Unconsolidated JV Assets
					DDR’s
	Consolidated				Proportionate
Date	Assets		Total		Share
As of December 31, 2009	$	136.9	$	290.0	$	93.3
Projected 2010	$	16.8	$	20.5	$	4.3
Projected Thereafter	$	221.6	$	38.5	$	3.8

	$	375.3	$	349.0	$	101.4

Development Funding Schedule (In Millions)


				Unconsolidated Joint Venture Funding
				DDR			JV Partners’			Proceeds from
	Consolidated			Proportionate			Proportionate			Construction		Total
	Funding			Share			Share			Loans		JV Funding
Funded as of December 31, 2009	$	323.7		$	64.7		$	96.3		$	194.5	$	355.5
Projected Net Funding 2010	$	28.1	(1)	$	(0.3	)	$	(0.3	)	$	0.0	$	(0.6	)
Projected Net Funding Thereafter	$	23.5		$	(1.2	)	$	(4.7	)	$	0.0	$	(5.9	)

	$	375.3		$	63.2		$	91.3		$	194.5	$	349.0


(1)		In addition to this Projected Net Funding amount, the Company may spend up to $63 million for additional development, including expansions and redevelopment projects, tenant coordination work and the corporate headquarters.

Wholly-Owned and Joint Venture Development Delivery and Funding Schedules 4.4

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Significant Wholly-Owned and Consolidated Redevelopment or Expansion Projects

DDR’s

Joint

Ownership

Venture

Location

Property Name

Percentage

Partner

Project Description

Project in Progress

Miami (Plantation), FL

The Fountains

100

N/A

Redevelopment of shopping center to include Kohl's (opened September 2009), Dick's and other retail tenants.

Total Net Cost (Millions)

89.4

(1)


(1) At December 31, 2009, approximately $78.2 million of costs had been incurred in relation to the project in progress.

Summary of Significant Joint Venture Redevelopment or Expansion Projects

There were no Joint Venture Redevelopment or Expansion Projects in progress at December 31, 2009.

Wholly-Owned and Joint Venture Expansions and Redevelopments 4.5

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Recently Developed Assets


			Owned		DDR’s Effective
	Location	Related Project	GLA		Ownership
1	San Diego (Oceanside), CA	Oceanside Place Cinemas		79,884		100	%
2	Denver (Littleton, CO)	Aspen Grove		231,450		100	%
3	Fort Collins, CO	Mulberry and Lemay Crossing		18,988		100	%
4	Lakeland, FL	Lakeland Marketplace		77,582		100	%
5	Miami (Homestead), FL	Homestead Pavilion		275,839		100	%
6	Miami, FL	The Shops at Midtown Miami		400,685		100	%
7	Macon, GA	Eisenhower Annex		55,505		100	%
8	Chicago (Deer Park), IL	Deer Park Town Center		292,139		24.8	%
9	Chicago (McHenry), IL	The Shoppes at Fox River		224,552		100	%
10	Salisbury, MD	The Commons		126,135		100	%
11	Boston (Everett), MA	Gateway Center		222,236		100	%
12	Minneapolis (Coon Rapids), MN	Riverdale Village		8,856		100	%
13	St. Louis (Arnold), MO	Jefferson County Plaza		42,091		50	%
14	Freehold, NJ	Freehold Marketplace		23,454		100	%
15	Princeton, NJ	Nassau Park Pavilion		598,737		100	%
16	Trenton (Hamilton), NJ	Hamilton Marketplace		468,240		100	%
17	Elmira (Horseheads), NY	Southern Tier Crossing		350,987		100	%
18	Raleigh (Apex), NC	Apex Promenade		81,780		100	%
19	Raleigh (Apex), NC	Beaver Creek Crossings (Phase 1 - South)		268,333		100	%
20	Cleveland (Aurora), OH	Barrington Town Square		102,683		100	%
21	Allentown, PA	West Valley Marketplace		259,239		100	%
22	Johnson City, TN	Johnson City Marketplace		11,749		100	%
23	Austin, TX	Shoppes @Tech Ridge		282,798		24.8	%
24	San Antonio, TX	Bandera Point		416,721		100	%
25	San Antonio, TX	Village at Stone Oak		305,824		100	%
26	San Antonio, TX	Westover Marketplace		216,737		20	%
27	Milwaukee (Brookfield), WI	Shoppers World of Brookfield		15,070		100	%
28	Manaus, Brazil	Manauara Shopping Center		477,630		47.4	%

	Total			5,935,924

Summary of Recently Developed Assets 4.6

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Recently Expanded and Redeveloped Assets


			Owned		DDR’s Effective
	Location	Related Project	GLA		Ownership
1	Birmingham, AL	Brook Highland Plaza		424,341		100	%
2	Phoenix, AZ	Christown Spectrum Mall		441,406		20	%
3	N. Little Rock, AR	McCain Plaza		295,013		100	%
4	Los Angeles (Buena Park), CA	Buena Park Downtown		724,143		20	%
5	Denver, CO	Centennial Promenade		408,337		100	%
6	Lakeland, FL	Lakeland Burlington Coat Factory		81,921		100	%
7	Ocala, FL	Ocala West		105,276		100	%
8	Tallahassee, FL	Capital West		79,451		100	%
9	Tampa (Bayonet Point), FL	Point Plaza		209,714		100	%
10	Tampa (Brandon), FL	Kmart Shopping Center		161,900		100	%
11	Ottumwa, IA	Quincy Place Mall		241,427		100	%
12	Benton Harbor, MI	Fairplain Plaza		222,739		20	%
13	Chesterfield, MI	Chesterfield Marketplace		281,320		100	%
14	Gaylord, MI	Pine Ridge Square		150,203		100	%
15	Starkville, MS	Starkville Crossings		133,691		100	%
16	Kansas City (Leawood), KS	Town Center Plaza		309,423		100	%
17	Olean, NY	Wal-Mart Plaza		285,400		100	%
18	Rome, NY	Freedom Plaza		194,467		100	%
19	Charlotte (Mooresville), NC	Mooresville Consumer Square		472,182		100	%
20	Durham, NC	Oxford Commons		207,864		100	%
21	Fayetteville, NC	Cross Pointe Center		204,563		100	%
22	Wilmington, NC	University Centre		411,887		100	%
23	Akron (Stow), OH	Stow Community Shopping Center		404,483		100	%
24	Cincinnati, OH	Tri County Mall		758,031		20	%
25	Dayton (Huber Hts), OH	North Heights Plaza		182,749		100	%
26	Tiffin, OH	Tiffin Mall		170,868		100	%
27	San Juan (Bayamon), PR	Rio Hondo		466,499		100	%
28	San Juan (Ron Piedras), PR	Seniorial Plaza		168,664		100	%
29	Chattanooga, TN	Overlook at Hamilton Place		207,244		100	%
30	Salt Lake City (Midvale), UT	Family Center at Fort Union		641,957		100	%
31	Salt Lake City (Riverdale), UT	Family Center at Riverdale		593,398		100	%
32	Salt Lake City (Taylorsville), UT	Family Center at Taylorsville		697,630		100	%

	Total			10,338,191

Summary of Recently Expanded and Redeveloped Assets 4.7

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Company Features


664		Shopping Centers and Interests in Retail Assets

44		States (Plus Puerto Rico, Brazil, and Canada)

102		Million Sq. Ft. Owned ⁽¹⁾

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

88.8	%	Portfolio % Leased Including Former Mervyn’s Assets

91.2	%	Portfolio % Leased Excluding Former Mervyn’s Assets


(1)		Assumes 100% ownership of joint venture assets. Based on actual pro rata ownership of joint venture assets and excluding developments and redevelopments in process and scheduled to commence in 2009, total owned GLA was 62.5 million square feet.

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

Portfolio Summary 5.0

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Portfolio Summary 5.1

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Average Annualized Base Rental Rates PSF


	Number of		Total Annualized Base Rent / S.F.
Period Ending	Properties		Total		Shop Space

Dec. 31, 2009		560	$	12.51	$	18.61
Dec. 31, 2008		649	$	12.43	$	18.43
Dec. 31, 2007		657	$	12.33	$	18.14
Dec. 31, 2006		409	$	11.74	$	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


(1)		Figures exclude Brazilian portfolio, Service Merchandise portfolio, development properties and managed properties.

Portfolio Summary 5.2

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Leasing Summary for the Fourth Quarter 2009⁽¹⁾


													Change in Base			Weighted
	Number				New Rent								Rent Over			Average Lease		Tenant
	of				Year One		New Rent Year		Prior		Prior Rent		Prior Rent in			Term (in		Improvements
	Leases		GLA		psf		One Total		Rent psf		Total		Comp Space			years)*		psf

New leases
New leases replacing bankrupt tenants vacant less than one year		9		289,034	$	8.46	$	2,445,228	$	10.79	$	3,118,677		-21.6	%		8.3	$	22.11
New leases for spaces vacant less than one year		82		336,571	$	15.09	$	5,078,856	$	17.16	$	5,775,558		-12.1	%		8.1	$	13.95
New leases for spaces vacant more than one year		66		381,062	$	12.05	$	4,591,797	$	0.00	$	0		N/A			10	$	26.41
Total new leases		157		1,006,667	$	12.04	$	12,115,881	$	12.03	$	8,894,235		-15.3	%		8.8	$	21.01

Renewals		282		1,675,890	$	12.04	$	20,177,716	$	12.27	$	20,563,170		0.2	%		4.0	$	0.00

Total / Average (new leases + renewals)		439		2,682,557	$	12.04	$	32,293,597	$	12.18	$	29,457,406		-4.6	%		5.8	$	7.88


*		Excludes renewal options


(1)		Excludes leases signed on behalf of the MDT US LLC joint venture. The Company redeemed its interest in the joint venture on October 20, 2009.

Portfolio Summary 5.3

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Leasing Summary of Formerly Vacant Spaces Over 20,000 Square Feet

Lease term

Property name

Location

New tenant

Former tenant

GLA

(years)⁽¹⁾

Leased in 2008

Antelope Valley Mall

Palmdale, CA

Forever 21

Mervyn’s

76,547

Mid City Plaza

North Tonawanda, NY

Grossmans

Sears

24,833

Barrett Pavilion

Kennesaw, GA

Hobby Lobby

Goody’s

45,308

Candlers Station

Lynchburg, VA

Ollie’s Bargain Outlet

Goody’s

40,000

Total/Average 2008

186,688

8.9

Leased Q1 2009

Cumming Marketplace

Cumming, GA

Appliance Smart

Goody’s

27,900

Homestead Pavilion

Homestead, FL

Bed Bath & Beyond

Circuit City

20,304

Cortez Plaza

Bradenton, FL

hhgregg

Circuit City

32,510

Silver Creek Plaza

Phoenix, AZ

Hobby Lobby

Mervyn’s

76,006

Southern Tier Crossing

Horseheads, NY

Jo-Ann Fabrics

Circuit City

23,500

Wrangleboro Consumer

Mays Landing, NJ

Just Cabinets

Fortunoff

30,725

Total/Average Q1 2009

210,945

10.5

Leased Q2 2009

Beaver Creek Crossing South

Apex, NC

AC Moore

Linens ‘N Things

25,208

Hamilton Marketplace

Hamilton, NJ

Bed Bath & Beyond

Linens ‘N Things

30,708

Marketplace at Mill Creek

Buford, GA

Bed Bath & Beyond

Linens ‘N Things

33,979

Wrangleboro Consumer

Mays Landing, NJ

Christmas Tree Shops

Linens ‘N Things

33,000

Circuit City Plaza

Cary, NC

hhgregg

Circuit City

27,891

Grandville Marketplace

Grandville, MI

Hobby Lobby

Circuit City

55,529

Indian Hills Plaza

Mount Pleasant, MI

Jo-Ann Fabrics

Walmart

21,060

Woodfield Village Green

Schaumburg, IL

Michael’s

Circuit City

33,008

Willoughby Hills Shopping Center

Willoughby Hills, OH

National College

Bryant and Stratton

21,865

Shoppers World

Framingham, MA

Nordstrom Rack

Linens/CVS

40,159

Culver City

Culver City, CA

Sprouts

Circuit City

32,873

Peach Street Square

Erie, PA

Staples

Media Play

18,000

Stonecrest Marketplace

Lithonia, GA

A.J. Wright

Linens ‘N Things

25,576

Nassau Park

Princeton, NJ

Homegoods

Linens ‘N Things

27,040

Plaza Palma Real

Humacao, PR

Marshalls

Pueblo

27,680

Total/Average Q2 2009

453,576

10.0

Leased Q3 2009

Oviedo Park Crossing

Oviedo, FL

Bed Bath and Beyond

Linens ‘N Things

30,700

Sofa Express

Duluth, GA

So Good Beauty

Sofa Express

20,000

Hamilton Commons

Mays Landing, NJ

hhgregg

Circuit City

34,120

Loisdale Center

Springfield, VA

hhgregg

Circuit City

32,300

Arrowhead Crossing

Phoenix, AZ

Hobby Lobby

Circuit City

49,575

Fairfax Towne Center

Fairfax, VA

Jo-Ann

Circuit City

23,000

Lake Brandon Village

Brandon, FL

Buy Buy Baby

Linens ‘N Things

35,150

Springdale Plaza

Camden, SC

Burke’s Outlet

Goody’s

19,800

River Oaks (Mervyns)

Valencia, CA

Sprouts

Mervyns

30,220

Killearn Shopping Center

Tallahassee, FL

Hobby Lobby

Publix

53,096

Total/Average Q3 2009

327,961

9.5

Leased Q4 2009

1380 Dupont Highway

Dover, DE

hhgregg

Furniture & More

27,199

Pavilion of Turkey Creek

Knoxville, TN

Hobby Lobby

Goody’s

50,000

Rivertowne Square

New Bern, NC

PetSmart

Goody’s

27,400

Crossroads Center

Gulfport, MS

Burke’s Outlet (Beall’s)

Goody’s

30,000

Mooresville Consumer Square

Mooresville, NC

Ollie’s Bargain Outlet

Goody’s

30,000

Pamlico Plaza

Washington, NC

Burke’s Outlet (Beall’s)

Goody’s

29,530

Scottsboro Marketplace

Scottsboro, AL

Burke’s Outlet (Beall’s)

Goody’s

22,560

Walks at Highwood Preserve

Tampa, FL

Best Buy

Linens ‘N Things

33,000

Sycamore Commons

Matthews, NC

Best Buy

Circuit City

33,314

Green Ridge Square II

Grand Rapids, MI

Best Buy

Circuit City

44,854

University Hills

Denver, CO

Michael’s

Linens ‘N Things

32,436

Centennial Promenade

Denver, CO

Stickley Furniture

Borders

28,123

Arrowhead Crossing

Phoenix, AZ

Nordstrom Rack

Linens ‘N Things

36,102

Victor Square

Victor, NY

OptiGolf Center

Thomasville Furniture

23,662

Total/Average Q4 2009

448,180

8.1

Grand Total/Average 2008-Q4 2009

1,627,350

9.4


(1)		Excludes renewal options

Status of Re-Tenanting Spaces Formerly Occupied by Bankrupt Tenants ⁽²⁾
As of December 31, 2009

(2)

Includes Linens ‘N Things, Circuit City, Goody’s, Mervyn’s and Steve & Barry’s

Portfolio Summary 5.4

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Lease Expirations by Year as of December 31, 2009


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

2010		72	$	21.2	$	8.86		4.4	%		1,947	$	93.5	$	19.24		16.3	%
2011		131	$	38.8	$	8.85		8.1	%		1,654	$	96.4	$	19.74		16.8	%
2012		143	$	51.8	$	8.69		10.8	%		1,538	$	96.1	$	22.12		16.7	%
2013		126	$	40.8	$	8.08		8.5	%		1,319	$	82.3	$	20.06		14.3	%
2014		162	$	56.2	$	8.63		11.7	%		1,213	$	70.6	$	21.27		12.3	%
2015		110	$	45.4	$	8.85		9.5	%		315	$	26.1	$	17.67		4.5	%
2016		79	$	36.0	$	9.52		7.5	%		193	$	20.0	$	20.54		3.5	%
2017		77	$	38.4	$	9.82		8.0	%		178	$	19.6	$	20.57		3.4	%
2018		49	$	21.3	$	8.35		4.4	%		208	$	24.3	$	18.02		4.2	%
2019		62	$	34.4	$	10.26		7.2	%		149	$	19.7	$	15.75		3.4	%


2010 - 2019 Subtotal		1,011	$	384.3	$	8.99		80.3	%		8,714	$	548.6	$	19.50		95.5	%
Total Rent Roll		1,155	$	478.7	$	9.10		100.0	%		8,881	$	574.3	$	19.91		100.0	%

Portfolio Summary 5.5

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Largest Tenants by Owned and Managed GLA ⁽¹⁾


			Total GLA				Owned GLA		Unowned		Unowned
	Total Units		(msf)		Owned Units		(msf)		Units		GLA (msf)

1. Wal-Mart / Sam’s Club		96		14.9		36		5.6		60		9.3
2. Target		62		7.8		7		1.0		55		6.8
3. Lowe’s Home Improvement		36		4.7		14		1.8		22		2.9
4. Home Depot		38		4.2		8		1.0		30		3.2
5. Kohl’s		43		3.8		30		1.4		13		2.4
6. Kmart / Sears		38		3.3		33		2.9		5		0.4
7. T.J. Maxx / Marshalls		93		2.9		76		2.4		17		0.5
8. Publix Supermarkets		55		2.6		54		2.5		1		0.1
9. PetSmart		96		2.2		78		1.8		18		0.4
10. Kroger		36		2.0		36		2.0		0		0.0

(1)

Based on 100% ownership of joint venture properties.

Portfolio Summary 5.6

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009

Largest Tenants by GLA and Base Rental Revenues ⁽¹⁾


			% 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 (36)		4.5		7.3	%	AA / Aa2	1. Wal-Mart / Sam’s Club (36)	$	28.7		4.6	%	AA / Aa2
2. Kmart / Sears (33)		1.8		2.9	%	BB- / Ba2	2. T.J. Maxx / Marshalls (76)	$	12.2		2.0	%	A / A3
3. Lowe’s Home Improvement (14)		1.6		2.6	%	A+ / A1	3. Petsmart (78)	$	11.7		1.9	%	BB / NR
4. T.J. Maxx / Marshall’s (76)		1.4		2.3	%	A / A3	4. Bed Bath and Beyond (52)	$	10.5		1.7	%	BBB / NR
5. Kohl’s (30)		1.4		2.3	%	BBB+ / Baa1	5. Lowe’s Home Improvement (14)	$	10.1		1.6	%	A+ / A1
6. PetSmart (78)		0.9		1.5	%	BB / NR	6. Kohl’s (30)	$	10.0		1.6	%	BBB+ / Baa1
7. Kroger (36)		0.9		1.5	%	BBB / Baa2	7. Rite Aid (40)	$	9.9		1.6	%	B- / Caa3
8. J.C. Penney (21)		0.9		1.5	%	BB / Ba1	8. Michael’s (67)	$	9.4		1.5	%	B- / Caa2
9. Bed Bath and Beyond (52)		0.9		1.5	%	BBB / NR	9. Office Max (42)	$	8.0		1.3	%	B / B2
10. Target (7)		0.9		1.5	%	A+ / A2	10. Tops Markets (24)⁽²⁾	$	7.8		1.3	%	B / NR
11. Michael’s (67)		0.8		1.3	%	B- / Caa2	11. GAP / Banana Republic / Old Navy (61)	$	7.7		1.2	%	BB+ / NR
12. Home Depot (8)		0.8		1.3	%	BBB+ / Baa1	12. Kroger (36)	$	7.3		1.2	%	BBB / Baa2
13. Toys R Us (30)		0.7		1.1	%	B / Caa1	13. Barnes and Noble (33)	$	7.2		1.2	%	NR / NR
14. Publix Supermarkets (54)		0.7		1.1	%	NR / NR	14. Cinemark Theatre (18)	$	7.2		1.2	%	B+ / NR
15. Dick’s Sporting Goods (26)		0.7		1.1	%	NR / NR	15. Kmart / Sears (35)	$	7.1		1.1	%	BB- / Ba2
16. Ross Stores (51)		0.7		1.1	%	BBB / NR	16. Regal Cinemas (11)	$	6.9		1.1	%	B+ / Ba3
17. Office Max (42)		0.7		1.1	%	B / B2	17. Best Buy (21)	$	6.7		1.1	%	BBB- / Baa2
18. Tops Markets (24)		0.6		1.0	%	B / NR	18. Ross Stores (51)	$	6.7		1.1	%	BBB / NR
19. Dollar Tree Stores (94)		0.5		0.8	%	NR / NR	19. Staples (39)	$	6.2		1.0	%	BBB / Baa2
20. GAP / Banana Republic / Old Navy (61)		0.5		0.8	%	BB+ / NR	20. Home Depot (8)	$	6.1		1.0	%	BBB+ / Baa1


Subtotal 1-20		21.9		35.5	%		Subtotal 1-20	$	187.4		30.1	%

Total Portfolio		61.7		100.0	%		Total Portfolio	$	622.9		100.0	%


(1)		Based on pro rata ownership of joint venture properties.

(2)		22 leases are guaranteed by Koninklijke Ahold NV, rated BBB/Baa3

Portfolio Summary 5.7

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Consolidated Debt
as of December 31, 2009

Loan

Maturity

Interest

Balance(000’s)

Date

Rate (1)

SENIOR DEBT:

Unsecured Credit Facilities:

$1.25 Billion Revolving Credit Facility

775,028

(2)

06/10

LIBOR + 75

$75 Million Revolving Credit Facility

—

(2)

06/10

LIBOR + 100

Secured Credit Facility:

$800 Million Term Loan

800,000

(2)

02/11

LIBOR + 120

Total Term and Credit Facility Debt

1,575,028

PUBLIC DEBT:

Medium Term Notes

151,249

05/10

5.000

Medium Term Notes

177,410

08/10

4.625

Medium Term Notes

179,170

04/11

5.250

Convertible Notes

116,066

(3)

08/11

3.500

Convertible Notes

294,606

(4)

03/12

3.000

Medium Term Notes

223,042

10/12

5.375

Medium Term Notes

169,347

05/15

5.500

Medium Term Notes

296,756

03/16

9.625

Medium Term Notes

82,196

07/18

7.500

Total Public Debt

1,689,841

MORTGAGE DEBT:

Middletown Village, Middletown, RI

10,000

02/10

4.531

Lee Vista, Orlando, FL

16,450

06/10

7.000

Mill Pond Village, Cary, NC

8,500

07/10

4.758

Adams Farm, Greensboro, NC

6,700

08/10

4.652

DDR MDT MV, LLC

8,362

(5)

10/10

LIBOR + 72

DDR MDT MV, LLC

104,351

(5)

10/10

5.211

Shops on the Circle, Dothan, AL

11,235

11/10

7.920

Terrell Plaza, Terrell, TX

6,234

(6)(8)

11/10

LIBOR + 400

Kyle Crossing, Kyle, TX

13,468

(6)(8)

01/11

LIBOR + 350

Homestead Pavilion, Homestead, FL

64,965

03/11

LIBOR + 120

Peach Street Square I, Erie, PA

21,605

04/11

6.884

Peach Street Square II, Erie, PA

2,493

04/11

6.884

Southland Crossings, Boardman, OH

22,429

04/11

6.884

The Promenade at Brentwood, St. Louis, MO

21,605

04/11

6.884

Centennial Promenade, Denver, CO

32,402

04/11

6.884

DDRC Headquarters, Beachwood, OH

33,367

04/11

LIBOR + 110

Merriam Village, Merriam, KS

16,189

(8)

05/11

LIBOR + 400

Cibolo Creek Center, Schertz, TX

6,480

07/11

LIBOR + 350

Southern Tier Crossing, Horseheads, NY

31,149

09/11

LIBOR + 210

Union Town Center, Indian Train, NC

6,525

10/11

7.000

Westgate Plaza, Gates, NY

23,407

10/11

7.240

Ashtabula Commons, Ashtabula, OH

6,431

12/11

7.000

Summary of Consolidated Debt 6.1.a

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Consolidated Debt
as of December 31, 2009 (con’t)

Loan

Maturity

Interest

Balance(000’s)

Date

Rate (1)

Paradise Village Gateway, Phoenix, AZ

20,100

(7)

03/12

5.385

University Hills, Denver, CO

25,846

07/12

7.300

N. Charleston Center, N. Charleston, SC

9,785

07/12

7.370

Cortez Plaza, Bradenton, FL

11,687

07/12

7.150

Duvall Village, Bowie, MD

8,201

10/12

7.040

Walgreen’s, Dearborn Hts, MI

3,550

11/12

4.863

Walgreen’s, Livonia, MI

2,477

11/12

4.863

Walgreen’s, Westland, MI

2,625

03/13

4.863

Perimeter Pointe, Atlanta, GA

28,321

(8)

04/13

LIBOR + 350

Town Center Prado, Marietta, GA

19,865

(8)

04/13

LIBOR + 350

Plaza Escorial, Carolina, PR

57,500

04/13

5.000

Plaza Rio Hondo, Bayamon, PR

109,500

04/13

5.000

Paseo Colorado, Pasadena, CA

79,100

04/13

5.000

Family Center at Meridian, Meridian, ID

7,440

04/13

5.000

Meridian Crossroads, Meridian, ID

29,760

04/13

5.000

University Center, Wilmington, NC

24,500

04/13

5.000

Aspen Grove, Littleton, CO

42,200

04/13

5.000

Victor Square, Victor, NY

6,184

04/13

5.800

Wrangleboro Consumer Sq. I & II, Mays Landing, NJ

40,894

05/13

6.990

Monmouth Consumer Sq., W. Long Branch, NJ

7,811

07/13

8.570

Rotonda Plaza, Englewood, FL

1,087

07/13

5.800

Nassau Park Pavilion, Princeton, NJ

39,600

05/14

9.000

Presidential Commons, Snellville GA

20,400

05/14

9.000

Crossroads Center, Gulfport, MS

26,320

10/14

4.225

The Commons, Salisbury, MD

9,341

10/14

4.225

Chillicothe Place, Chillicothe, OH

4,593

10/14

4.225

Deer Valley Towne Center, Phoenix, AZ

18,837

10/14

4.225

Plaza at Sunset Hills, Sunset Hills, MO

29,933

10/14

4.225

North Pointe Plaza, North Charleston, SC

11,715

10/14

4.225

Wando Crossing, Mount Pleasant, SC

12,825

10/14

4.225

Brook Highland Plaza, Birmingham, AL

26,372

10/14

4.225

Mooresville Consumer Sq., Mooresville, NC

19,456

10/14

4.225

Town Center Plaza, Leawood, KS

54,188

10/14

4.225

Warner Robins Place, Warner Robins, GA

7,277

10/14

4.225

Cross Pointe Center, Fayetteville, NC

10,631

10/14

4.225

Overlook at Hamilton Place, Chattanooga, TN

10,657

10/14

4.225

Bermuda Square, Chester, VA

7,999

10/14

4.225

Home Depot Center, Orlando Park, IL

7,174

10/14

4.225

Delaware Consumer Square, Buffalo, NY

10,941

10/14

4.225

Hamilton Marketplace, Hamilton, NJ

44,383

10/14

4.225

Marketplace at Delta Twp, Lansing, MI

7,122

10/14

4.225

Clearwater Collection, Clearwater, FL

7,638

10/14

4.225

Wendover Village, Greensboro, NC

5,135

10/14

4.225

Lexington Place, Lexington, SC

4,619

10/14

4.225

Summary of Consolidated Debt 6.1.b

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Consolidated Debt
as of December 31, 2009 (con’t)

Loan

Maturity

Interest

Balance(000’s)

Date

Rate (1)

Downtown Short Pump, Richmond, VA

13,418

10/14

4.225

Loisdale Center, Springfield, VA

11,870

10/14

4.225

Windsor Court, Windsor, CT

7,793

10/14

4.225

Abernathy Square, Atlanta, GA

12,954

10/14

4.225

Sam’s Club, Worcester, MA

5,780

10/14

4.225

Wal-Mart Supercenter, Alliance, OH

7,690

10/14

4.225

Kroger, Allentown, PA

2,787

10/14

4.225

Reno Riverside, Reno, NV

3,169

(8)

02/15

Prime + 170

Hamilton Commons, Mays Landing, NJ

9,886

09/15

4.700

Consumer Square West, Columbus, OH

11,976

11/15

10.188

Tops Plaza, Lockport, NY

9,017

01/16

8.000

Merriam Town Center, Merriam, KS (TIF)

3,575

02/16

6.900

Freedom Plaza, Rome, NY

3,228

09/16

7.850

Wal-Mart, Winston-Salem, NC

8,430

09/17

6.000

Thruway Plaza (Wal-Mart), Cheektowaga, NY

3,713

10/17

6.780

Tops Plaza, Ithaca, NY

14,635

01/18

7.050

Wal-Mart, Greenville, SC

7,942

02/18

6.000

Mohawk Commons, Niskayuna, NY

19,218

12/18

5.750

Lowes, Hendersonville, TN

7,194

01/19

7.660

Plaza Isabela, Isabela, PR

23,395

06/19

7.590

Plaza Cayey, Cayey, PR

22,151

06/19

7.590

Plaza Wal-Mart, Guayama, PR

12,445

06/19

7.590

Plaza Fajardo, Fajardo, PR

26,631

06/19

7.590

Mariner Square, Spring Hill, FL

4,271

09/19

9.750

Northland Square, Cedar Rapids, IA

8,151

01/20

9.375

Connecticut Commons, Plainville, CT (TIF)

6,470

04/21

7.125

West Valley Marketplace, Allentown, PA

15,079

07/21

6.950

Liberty Fair Mall, Martinsville, VA

18,677

12/29

8.460

Gulfport Promenade, Gulfport, MS

60,000

12/37

SIFMA + 5bp

Total Mortgage Debt

1,771,479

Consolidated Debt

5,036,348

Add: Joint Venture Partner Share of Consolidated Debt

142,315

Total Consolidated Debt Including Joint Venture Share

5,178,663


			Wtd. Avg.	Wtd. Avg.
			Maturity	Interest Rate
Fixed Rate	$	3,684,004	3.31 years		5.7	%
Variable Rate	$	1,494,659	1.96 years		1.5	%

	$	5,178,663	2.92 years		4.5	%

Summary of Consolidated Debt 6.1.c

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Consolidated Debt
as of December 31, 2009 (con’t)

CUMULATIVE REDEEMABLE PREFERRED SHARES


	Outstanding Amount(000’s)
Class G - 8.0%	$	180,000
Class H - 7.375%	$	205,000
Class I - 7.5%	$	170,000

DERIVATIVE INSTRUMENTS


	Notional Amount(000’s)		Underlying Debt Hedged	Rate Hedged	Fixed Rate			Termination Date
Interest Rate Swap	$	200,000	Secured Credit Facility	3 mo. LIBOR		5.149	%	June 28, 2010
Interest Rate Swap	$	100,000	$1.25 Billion Revolving Credit Facility	1 mo. LIBOR		4.942	%	September 29, 2010
Interest Rate Swap	$	100,000	Secured Credit Facility	1 mo. LIBOR		4.815	%	February 21, 2012


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. Deferred finance cost amortization of approximately $11.5 million net, is offset by approximately $3.5 million of fair market value adjustments in 2009.

2.		The $1.25 billion JPMorgan Chase facility has one one-year extension option to 2011. The $75 million PNC Bank facility has one one-year extension option to 2011. The $800 million Key Bank term loan has one one-year extension option to 2012.

3.		The convertible notes may be net settled with DDR’s common stock once the stock price rises above $64.23 per share.

		The principal balance on these notes is to be settled in cash. Included in this amount is $4.0 million recorded at December 31, 2009 for the accretion of the convertible debt to comply with accounting standards.

4.		The convertible notes may be net settled with DDR’s common stock once the stock price rises above $74.56 per share.

		The principal balance on these notes is to be settled in cash. Included in this amount is $13.6 million recorded at December 31, 2009 for the accretion of the convertible debt to comply with accounting standards.

5.		The Company’s joint venture with DDR MV, LLC is consolidated within DDR’s accounts. DDR effectively owns 50% of the debt.

6.		The Company’s joint venture with David Berndt Interests is consolidated within DDR’s accounts. DDR owns 50% of the debt.

7.		The Company’s joint venture with Shea and Tatum Associates is consolidated within DDR’s accounts. DDR owns 67% of the debt.

8.		The following loans have floor interest rates:


Loan		Floor
Kyle Crossing, Kyle, TX		1mo. LIBOR of 2.00%
Terrell Plaza, Terrell, TX		1mo. LIBOR of 1.00%
Merriam Village, Merriam, KS		1mo. LIBOR of 1.00%
Perimeter Pointe, Atlanta, GA		1mo. LIBOR of 2.00%
Town Center Prado, Marietta, GA		1mo. LIBOR of 2.00%
Reno Riverside, Reno, NV		5.95%

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

Summary of Consolidated Debt 6.1.d

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Joint Venture Debt
as of December 31, 2009

Mortgage

Maturity

Interest

Property/Entity

Balance (000’s)

Date

Rate

DDRTC Core Retail Fund, LLC

DDRTC Holdings Pool 1, LLC (25 assets)

736,559

03/17

5.4475

DDRTC Holdings Pool 3, LLC (17 assets)

555,034

03/12

5.480

DDRTC Holdings Pool 5, LLC (12 assets)

147,565

02/11

LIBOR + 65

DDRTC Holdings Pool 6, LLC

Walks at Highwood Preserve I & II

3,700

05/10

4.372

Aiken Exchange

7,350

05/10

4.372

Oak Summit

8,200

06/10

4.272

Wytheville Commons

5,590

06/10

4.302

Warwick Center

16,939

06/10

4.130

Columbiana Station

25,900

06/10

4.040

Heritage Pavilion

21,500

07/10

4.460

Fayette Pavilion I & II

53,250

07/10

5.620

North Hill Commons

2,475

11/10

5.240

Cox Creek Shopping Center

13,987

03/12

7.090

Cypress Trace

16,000

04/12

5.000

Waterfront Marketplace

28,489

08/12

6.350

Waterfront Town Center

37,533

08/12

6.350

Creeks at Virginia Center

25,334

08/12

6.370

Willoughby Hills Shopping Center

12,988

07/18

6.980

DDR Domestic Retail Fund I

Paradise Promenade, Davie, FL

6,400

06/10

4.322

Village Ctr, Racine, WI

13,200

04/10

4.440

West Falls Plaza, West Patterson, NJ

11,075

06/10

4.685

Southampton Village, Tyrone, GA

6,700

05/11

4.663

Village Center Outlot, Racine, WI

2,070

07/11

5.170

Center Pointe Plaza, Easley, SC

4,250

08/11

5.320

Shoppes on the Ridge, Lake Wales, FL

9,628

12/11

4.740

Publix Brooker Creek, Palm Harbor, FL

5,000

12/11

4.610

Watercolor Crossing, Santa Rosa, FL

4,355

01/12

4.760

Heather Island Plaza, Ocala, FL

6,155

12/12

5.001

Hilliard Rome, Columbus, OH

10,832

01/13

5.870

Meadows Square, Boynton Beach, FL

2,355

07/13

6.720

DDR Domestic Retail Fund I (25 assets)

885,000

07/17

5.600

DDR MDT PS, LLC (7 assets)

86,000

07/13

6.004

Coventry II DDR Bloomfield

39,194

12/08

LIBOR + 250

Coventry II DDR Buena Park

61,000

03/10

LIBOR + 115

Coventry II DDR Fairplain

16,000

09/09

LIBOR + 275

Coventry II DDR Marley Creek

10,750

07/10

LIBOR + 125

Coventry II DDR Montgomery Farm (1)

115,907

07/10

LIBOR + 300

18,128

07/10

LIBOR + 600

Coventry II DDR Phoenix Spectrum

46,000

01/11

LIBOR + 70

Coventry II DDR SM

72,180

03/10

LIBOR + 80

32,695

03/10

LIBOR + 223.65

Coventry II DDR Totem Lakes

29,500

09/09

LIBOR + 275

Coventry II DDR Tri County

152,743

02/15

5.655

11,650

02/15

10.304

Summary of Joint Venture Debt 6.2.a

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Joint Venture Debt
as of December 31, 2009 (con’t)

Mortgage

Property/Entity

Balance (000’s)

Maturity Date

Interest Rate

Coventry II DDR Westover Marketplace (1)

20,816

11/11

LIBOR + 350

RVIP IIIB

Deer Park, IL

60,000

10/11

5.590

RVIP VII (2 assets)

70,371

04/11

LIBOR + 400

RVIP VIII

23,356

01/11

LIBOR + 100

DPG Realty Holdings, LLC

Tonawanda, NY

4,545

05/17

7.630

TRT DDR Holdings I LLC (3 assets)

110,000

05/17

5.510

DDR 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

Oakland Market Place

3,560

10/12

5.040

Shoppes at Wendover II

14,382

10/12

5.060

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

The Point

15,800

04/13

5.640

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

Cole DDR MT Independence

34,100

01/12

5.950

DDRA Community Centers Five (5 assets)

280,000

08/10

5.295

DDR Markaz II (13 assets)

150,480

11/14

5.147

Lennox Town Center Limited

1,000

06/17

6.440

Columbus, OH

26,000

06/17

5.640

Sun Center Limited

5,794

05/11

5.420

Columbus, OH

12,267

04/11

8.480

Summary of Joint Venture Debt 6.2.b

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Joint Venture Debt
as of December 31, 2009 (con’t)

Mortgage

Property/Entity

Balance (000’s)

Maturity Date

Interest Rate

DOTRS LLC

Macedonia, OH

21,000

08/11

6.050

Jefferson County Plaza, LLC

Arnold, MO

3,616

08/12

LIBOR + 200

Sonae Sierra Brazil Limitadas

28,581

02/10

CDI + 500

4,879

06/10

CDI + 366

64,194

12/20

8.500

RO & SW Realty LLC

23,367

06/11

5.960

Total

4,547,711


			Wtd. Avg.	Wtd. Avg.
			Maturity	Interest Rate
Total Joint Venture Debt:
Fixed Rate	$	3,807,172	4.77 years		5.6	%
Variable Rate	$	740,539	0.63 years		3.0	%


	$	4,547,711	4.10 years		5.1	%


Notes:

(1)		The following loans have floor interest rates:


Loan		Floor
Coventry II DDR Montgomery Farm		1mo. LIBOR of 1.50%
Coventry II DDR Westover Marketplace		1mo. LIBOR of 1.50%

Summary of Joint Venture Debt 6.2.c

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Pro Rata Joint Venture Debt
as of December 31, 2009 (con’t)


	DDR’s			DDR’s
	Pro Rata			Pro Rata
Property/Entity	Interest			Debt (000’s)
DDRTC Core Retail Fund, LLC		15.00	%	$	257,759
DDR Domestic Retail Fund I		20.00	%		193,404
DDR MDT PS, LLC		0.00	%		—
Coventry II DDR Bloomfield		0.00	%		—
Coventry II DDR Buena Park		20.00	%		12,200
Coventry II DDR Fairplain		20.00	%		3,200
Coventry II DDR Marley Creek		10.00	%		1,075
Coventry II DDR Montgomery Farm		10.00	%		13,404
Coventry II DDR Phoenix Spectrum		20.00	%		9,200
Coventry II DDR SM		20.00	%		20,975
Coventry II DDR Totem Lakes		20.00	%		5,900
Coventry II DDR Tri County		20.00	%		32,879
Coventry II DDR Westover Marketplace		20.00	%		4,163
RVIP IIIB		25.75	%		15,450
RVIP VII		21.00	%		14,778
RVIP VIII		25.75	%		6,014
DPG Realty Holdings, LLC		10.00	%		454
TRT DDR Holdings I LLC		10.00	%		11,000
DDR SAU Retail Fund, LLC		20.00	%		45,237
Cole DDR MT Independence		14.52	%		4,951
DDRA Community Centers Five		50.00	%		140,000
DDR Markaz II		20.00	%		30,096
Lennox Town Center Limited		50.00	%		13,500
Sun Center Limited		79.45	%		14,350
DOTRS LLC		50.00	%		10,500
Jefferson County Plaza, LLC		50.00	%		1,808
Sonae Sierra Brazil Limitadas		50.00	%		48,827
RO & SW Realty LLC		25.25	%		5,900


				$	917,025


Fixed Rate				$	785,443
Variable Rate				$	131,582


				$	917,025

Summary of Joint Venture Debt 6.2.d

Developers Diversified Realty Corporation
Quarterly Financial Supplement
For the year ended December 31, 2009

Summary of Consolidated Mortgage Principal Payments, Corporate Debt Maturities
and Joint Venture Debt Payments and Maturities (1)
as of December 31, 2009
(000’s)


	2010 Payments		2011 Payments		2012 Payments		2013 Payments		2014 Payments		2015 Payments		2016 Payments		2017 Payments		2018 Payments		2019 Payments		Thereafter		Total
CONSOLIDATED DEBT

Property Mortgages	$	178,664	$	179,787	$	106,528	$	457,809	$	446,170	$	26,128	$	16,453	$	12,563	$	8,701	$	78,621	$	88,206	$	1,599,628

Construction Loans		6,234		67,285		0		98,332		0		0		0		0		0		0		0		171,851

Public Debt		328,659		295,236		517,648		0		0		169,347		296,756		0		82,196		0		0		1,689,841


Subtotal		513,556		542,308		624,176		556,141		446,170		195,475		313,208		12,563		90,897		78,621		88,206		3,461,321

Revolving Credit Facilities & Term Loan ⁽²⁾		0		775,028		800,000		0		0		0		0		0		0		0		0		1,575,028

Consolidated Debt	$	513,556	$	1,317,335	$	1,424,176	$	556,141	$	446,170	$	195,475	$	313,208	$	12,563	$	90,897	$	78,621	$	88,206	$	5,036,348

Add: JV Partner Shared Consolidated Debt	$	118,947	$	13,468	$	9,900	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	0	$	142,315

Total Consolidated Debt Including JV Share	$	632,504	$	1,330,803	$	1,434,076	$	556,141	$	446,170	$	195,475	$	313,208	$	12,563	$	90,897	$	78,621	$	88,206	$	5,178,663


JOINT VENTURE DEBT

Total JV Debt	$	791,087	$	328,653	$	1,058,080	$	174,750	$	156,194	$	154,279	$	3,178	$	1,761,493	$	1,940	$	34,944	$	83,112	$	4,547,711

DDR’s Proportionate Share		237,500		88,784		158,258		17,591		31,068		30,673		439		312,408		291		5,078		34,935		917,025

Total Consolidated Debt & Proportionate Share JV Debt	$	870,003	$	1,419,587	$	1,592,334	$	573,733	$	477,239	$	226,147	$	313,648	$	324,970	$	91,188	$	83,699	$	123,140	$	6,095,688


Notes:

(1)		In situations where options to extend the maturity of a loan exist, the maturity of the extension period(s) has been assumed for this schedule.

(2)		Balance at Decemeber 31, 2009 on credit facilities and term loan. The $1.25 billion JPMorgan Chase facility has one one-year extension option to 2011. The $800 million Key Bank term loan has one one-year extension option to 2012.

		The $75 million PNC 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.a

Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2009


Corporate Headquarters		Investor Relations
3300 Enterprise Parkway		Kate Deck
Beachwood, Ohio 44122		Toll Free: (877) 225-5337
Main: (216) 755-5500		Direct: (216) 755-6408
Website: www.ddr.com		Email: kdeck@ddr.com

Research Coverage


Cowen & Company
Jim Sullivan	james.sullivan@cowen.com	(646) 562-1380

Citigroup
Michael Bilerman	michael.bilerman@citi.com	(212) 816-1383
Quentin Velleley	quentin.velleley@citi.com	(212) 816-6981

Deutsche Bank Securities
John Perry	john.perry@db.com	(212) 250-4912
Vincent Chao	vincent.chao@db.com	(212) 250-6799

Goldman Sachs
Jay Habermann	jonathan.habermann@gs.com	(917) 343-4260
Jehan Mahmood	jehan.mahmood@gs.com	(212) 902-2646

Green Street Advisors
Jim Sullivan	jsullivan@greenstreetadvisors.com	(949) 640-8780
Nick Vedder	nvedder@greenstreetadvisors.com	(949) 640-8780

Hilliard Lyons
Carol Kemple	ckemple@hilliard.com	(502) 588-1142

Macquarie
David Wigginton	dave.wigginton@macquarie.com	(212) 231-6380

Banc of America Securities Merrill Lynch
Craig Schmidt	craig_schmidt@ml.com	(212) 449-1944
Lindsay Schroll	lindsay_schroll@ml.com	(212) 449-6246

JP Morgan
Michael Mueller	michael.w.mueller@jpmorgan.com	(212) 622-6689
Joe Dazio	joseph.c.dazio@jpmorgan.com	(212) 622-6416

RBC Capital Markets
Rich Moore	rich.moore@rbccm.com	(216) 378-7625
Wes Golladay	wes.golladay@rbccm.com	(440) 715-2650

UBS
Ross Nussbaum	ross.nussbaum@ubs.com	(212) 713-2484
Christy McElroy	christy.mcelroy@ubs.com	(203) 719-7831

Wells Fargo Securities, LLC
Jeff Donnelly	jeff.donnelly@wachovia.com	(617) 603-4262
Robert Laquaglia	robert.laquaglia@wachovia.com	(617) 603-4280

Investor Contact Information 7.0

Attached files

SITE Centers Corp. Reports

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