Attached files
file | filename |
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8-K - FORM 8-K - SITE Centers Corp. | l41710e8vk.htm |
EX-99.1 - EX-99.1 - SITE Centers Corp. | l41710exv99w1.htm |
Exhibit 99.2
Quarterly Financial Supplement Investor Relations Department 3300 Enterprise Parkway Beachwood, Ohio 44122 (216) 755-5500 f. (216) 755-1500 www.ddr.com For the year ended December 31, 2010 |
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
For the year ended December 31, 2010
Table of Contents
Section | Page | |||
Earnings Release & Financial Statements |
||||
Press Release |
1-15 | |||
Financial Summary |
||||
Financial Highlights |
16 | |||
Financial Ratios |
17 | |||
Total Market Capitalization Summary |
18 | |||
Debt to EBITDA Calculation |
19 | |||
Significant Accounting Policies |
20-21 | |||
Other Real Estate Information |
22 | |||
Reconciliation of Non-GAAP Financial Measures |
23-26 | |||
Joint Venture Financial Summary |
||||
Joint Venture Investment Summary |
27 | |||
Joint Venture Combining Financial Statements |
28 | |||
Investment Summary |
||||
Acquisitions and Dispositions |
29 | |||
Developments and Redevelopments |
30-31 | |||
Projects Primarily on Hold |
32 | |||
Portfolio Summary |
||||
Portfolio Characteristics |
33 | |||
Brazil and Puerto Rico Portfolio Characteristics |
34 | |||
Leased Rate and Average Annualized Base Rental Rates |
35 | |||
Leasing Summary |
36 | |||
Leasing Summary of Formerly Vacant Spaces |
37 | |||
Net Effective Rents |
38 | |||
Lease Expirations |
39 | |||
Largest Tenants by Owned and Managed GLA |
40 | |||
Largest Tenants by GLA and Base Rental Revenues |
41 | |||
Debt Summary |
||||
Summary of Consolidated Debt |
42 | |||
Summary of Joint Venture Debt |
43 | |||
Consolidated Debt Detail |
44-46 | |||
Joint Venture Debt Detail |
47-49 | |||
Investor Contact Information |
||||
Investor Information |
50 |
Property list available online 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 Companys expectations 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 the results of the Company 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; ability to sell assets on
commercially reasonable terms; ability to secure equity or debt financing on
commercially acceptable terms or at all; or 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 the year ended December 31, 2010.
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 Companys
Form 10-K as of December 31, 2009. 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
For Immediate Release:
Media Contact: | Investor Contact: | |||||
Marty Richmond | Kate Deck | |||||
216-755-5500 | 216-755-5500 | |||||
mrichmond@ddr.com | kdeck@ddr.com |
DEVELOPERS DIVERSIFIED REALTY REPORTS OPERATING FFO PER
DILUTED SHARE OF $0.27 FOR THE QUARTER ENDED
DECEMBER 31, 2010
DILUTED SHARE OF $0.27 FOR THE QUARTER ENDED
DECEMBER 31, 2010
BEACHWOOD, OHIO, February 17, 2011 - Developers Diversified Realty Corporation (NYSE: DDR) today
announced operating results for the fourth quarter and year ended December 31, 2010.
SIGNIFICANT FOURTH QUARTER ACTIVITY
| Reported operating FFO of $0.27 per diluted share, which excludes certain non-operating items | ||
| Executed 396 total leases for 2.6 million square feet | ||
| Increased the core portfolio leased rate to 92.3% at December 31, 2010 from 92.0% at September 30, 2010 and 91.2% at December 31, 2009 | ||
| Improved the spread on new leases to +8.3% and renewals to +4.8% for a blended overall spread of +5.4%, which compares to a blended spread of +5.0% in the third quarter of 2010 and -4.4% in the fourth quarter of 2009 | ||
| Reported Same Store Net Operating Income growth of 3.6% as compared to an increase of 2.0% in the third quarter of 2010 and a decrease of 3.5% in the fourth quarter of 2009 | ||
| Refinanced two senior unsecured revolving credit facilities providing $1.015 billion of borrowing capacity through February 2014 | ||
| Completed $163.4 million of asset sales, of which the Companys pro-rata share was $62.8 million | ||
| Issued $350 million aggregate principal amount of 1.75% convertible senior notes due November 2040 | ||
| Reduced consolidated indebtedness by nearly $100 million to $4.3 billion at December 31, 2010 |
We are pleased to report continued positive operational trends within our portfolio, specifically
as it relates to leasing momentum and rental rates, and the resulting growth in same store net
operating income. Furthermore, the continued execution of our strategic objectives in the capital
markets continues to improve our credit metrics, and we are keenly focused on delivering additional
progress throughout 2011, commented Developers Diversifieds president and chief executive
officer, Daniel B. Hurwitz.
1
FINANCIAL HIGHLIGHTS
The Companys fourth quarter operating Funds From Operations (FFO) was $70.9 million, or $0.27
per diluted share, before $114.8 million of net charges. The Companys operating FFO for the year
was $264.3 million, or $1.04 per diluted share, before $275.6 million of net charges.
The charges and gains, primarily non-cash, for the periods ended December 31, 2010, are summarized
as follows (in millions):
Three Months | Year | |||||||
Non-cash impairment charges consolidated
assets |
$ | 28.9 | $ | 116.5 | ||||
Charges related to employee separations |
3.5 | 5.6 | ||||||
Gain on debt retirement, net |
(0.2 | ) | (0.5 | ) | ||||
Non-cash loss on equity derivative
instruments (Otto Family warrants) |
25.5 | 40.2 | ||||||
Other expense, net (1) |
6.0 | 22.0 | ||||||
Equity in net loss of joint ventures
loss on asset sales and impairment charges |
0.4 | 6.8 | ||||||
Loss on change in control of interests |
| 0.4 | ||||||
Tax expense deferred tax assets reserve |
49.9 | 49.9 | ||||||
Discontinued operations non-cash
consolidated impairment charges and loss on
sales |
1.3 | 67.1 | ||||||
Discontinued operations FFO associated
with Mervyns Joint Venture, net of
non-controlling interest |
| 4.8 | ||||||
Discontinued operations gain on
deconsolidation of Mervyns Joint Venture |
| (5.6 | ) | |||||
Gain on disposition of real estate (land) |
(0.5 | ) | (0.4 | ) | ||||
Less non-controlling interests portion
of impairment charges allocated to outside
partners |
| (31.2 | ) | |||||
$ | 114.8 | $ | 275.6 | |||||
(1) | Amounts included in Other expense are detailed as follows: |
Three Months | Year | |||||||
Lease liability reserve primarily for cancelled
development project |
$ | 3.3 | $ | 3.3 | ||||
Litigation expenditures, net of tax benefit |
1.0 | 12.2 | ||||||
Debt extinguishment costs |
0.5 | 3.7 | ||||||
Other |
1.2 | 2.8 | ||||||
$ | 6.0 | $ | 22.0 | |||||
Included in the non-operating items detailed above is a $22.3 million non-cash charge
recognized in the fourth quarter of 2010 associated with a development project the Company no
longer plans to pursue. A subsidiary of the Companys taxable REIT subsidiary (TRS) acquired a
leasehold interest in the development located in Norwood, Massachusetts as part of a portfolio
acquisition in 2003, and no longer expects to fund the ground rent expense. The aggregate charge
includes a $19.3 million impairment and a $3.0 million lease liability associated with the ground
lease. The Company also incurred fourth quarter non-cash income tax expense of $49.9 million
recognized due to the establishment of a reserve against certain deferred tax assets within its
TRS. Based upon the continued loss activity recognized by the TRS, including the $22.3 million
charge associated with the abandoned development project described above, it was determined that it
was more likely than not that the deferred tax assets would not be utilizable, thus requiring a
current reserve.
FFO applicable to common shareholders for the three-month period ended December 31, 2010, including
the above net charges, was a loss of $43.9 million, or $0.17 per diluted share, which compares to a
FFO loss of $28.0 million, or $0.14 per diluted share, for the prior-year comparable period. The
increased FFO loss for the three-month period ended December 31, 2010, is primarily the result of
the establishment of a reserve against certain deferred tax assets and an increase in expense
2
recorded for the equity derivative instruments associated with the Otto investment, partially
offset by a decrease in impairment-related charges.
FFO applicable to common shareholders for the year ended December 31, 2010, including the above net
charges, was a loss of $11.3 million, or $0.05 per diluted share, which compares to a FFO loss of
$144.6 million, or $0.90 per diluted share, for the prior-year comparable period. The increase in
FFO for the year ended December 31, 2010, is primarily the result of a decrease in
impairment-related charges and lower expense associated with the
equity derivative instruments partially offset by the establishment of a reserve against
certain deferred tax assets in 2010 and lower gain on debt
retirement.
Net loss applicable to common shareholders for the three-month period ended December 31, 2010, was
$94.8 million, or $0.37 per diluted share, which compares to a net loss of $90.1 million, or $0.46
per diluted share, for the prior-year comparable period.
Net loss applicable to common shareholders for the year ended December 31, 2010, was $251.6
million, or $1.03 per diluted share, which compares to a net loss of $398.9 million, or $2.51 per
diluted share, for the prior-year comparable period. The decrease in net loss for the year ended
December 31, 2010, is primarily due to the same factors impacting FFO.
LEASING & PORTFOLIO OPERATIONS
The following results for the three-month period ended December 31, 2010, highlight continued
strong leasing activity throughout the portfolio:
| Executed 161 new leases aggregating approximately 1.0 million square feet and 235 renewals aggregating approximately 1.6 million square feet. In total, the Company executed approximately 2.6 million square feet of leases for the quarter and 11.3 million for the full year of 2010. | ||
| Total portfolio average annualized base rent per occupied square foot as of December 31, 2010 was $13.36, as compared to $13.01 at December 31, 2009. Excluding the Brazil portfolio, total portfolio average annualized base rent per occupied square foot as of December 31, 2010 was $12.46, as compared to $12.27 at December 31, 2009. | ||
| The core portfolio leased rate was 92.3% as of December 31, 2010, as compared to 91.2% at December 31, 2009. The core portfolio and the Brazil portfolio blended leased rate was 92.6% at December 31, 2010. | ||
| On a cash basis, rental rates for new leases increased by 8.3% over prior rents and renewals increased by 4.8%. For the U.S.-portion of the portfolio, rental rates increased 6.5% for new leases and 3.1% for renewals. On a blended basis, leasing spreads increased by 5.4% during the quarter for the total portfolio and 3.5% for the U.S.-portion of the portfolio. The increase in the overall leasing spreads marks an improvement from the increase of 5.0% for the portfolio reported in the third quarter of 2010 and an improvement from the decrease of 4.4% for the portfolio reported in the fourth quarter of 2009. Total blended leasing spreads for the full year of 2010 increased 3.7%. | ||
| Same store net operating income (NOI) increased 3.6% for the three-month comparable period and 1.1% for the full year 2010 as compared to 2009. |
3
DISPOSITIONS
The Company sold eight consolidated shopping centers, aggregating approximately 0.8 million square
feet, in the fourth quarter of 2010, generating gross proceeds of approximately $33.8 million. The
Company recorded an aggregate net gain of approximately $8.4 million related to asset sales in the
fourth quarter. The Company also sold $9.4 million in non-income producing assets.
In the fourth quarter of 2010, five of the Companys joint ventures sold ten shopping centers,
aggregating approximately 0.9 million square feet, generating gross proceeds of approximately
$120.2 million. The joint ventures recorded an aggregate net loss of approximately $1.4 million
related to these asset sales, of which the Companys proportionate share was a net gain of
approximately $4.9 million as a result of an approximate $2.0 million promoted interest recorded
related to one asset.
CAPITAL MARKETS ACTIVITIES
In November 2010, the Company issued $350 million aggregate principal amount of 1.75% convertible
senior notes due November 2040. The notes have an initial conversion rate of approximately 61
common shares per $1,000 principal amount of the notes, representing a conversion price of
approximately $16.38 per common share. The initial conversion rate is subject to adjustment under
certain circumstances. The Company may redeem the notes anytime on or after November 15, 2015 in
whole or in part for cash equal to 100% of the principal amount of the notes plus accrued and
unpaid interest. The adjusted effective interest rate for the liability component of the
convertible notes for GAAP purposes is 5.3%.
In October 2010, the Company refinanced its unsecured credit facility arranged by JP Morgan Chase
Bank, N.A. and Wells Fargo Bank, N.A. The size of the facility was reduced to $950 million with an
accordion feature up to $1.2 billion. In addition, the Company also entered into a new $65 million
unsecured credit facility with PNC Bank, N.A. Both facilities mature in February 2014. The
Companys borrowings under these facilities bear interest at variable rates based on LIBOR plus 275
basis points, subject to adjustment based on the Companys current corporate credit ratings from
Moodys and S&P.
In October 2010, the Company amended its secured term loan with KeyBank National Association to
conform the covenants to the new revolving credit facility covenants and repaid $200 million of the
outstanding balance.
2011
GUIDANCE
There has been no change in guidance since the last update provided on January 10, 2011. The Company continues to estimate operating FFO for 2011 between $0.90-$1.05 per diluted share.
4
NON-GAAP DISCLOSURES
FFO is a supplemental non-GAAP financial measurement used as a standard in the real estate industry
and a widely accepted measure of real estate investment trust (REIT) performance. Management
believes that FFO and operating FFO provide additional indicators of the financial performance of a
REIT. The Company also believes that FFO and operating FFO more appropriately measure the core
operations of the Company and provide benchmarks to its peer group. Neither FFO nor operating FFO
represents cash generated from operating activities in accordance with generally accepted
accounting principles (GAAP), is necessarily indicative of cash available to fund cash needs and
should be considered as an alternative to net income computed in accordance with GAAP as an
indicator of the Companys 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 gains generated from merchant build asset sales, 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 Companys proportionate share of FFO from its
unconsolidated joint ventures and non-controlling interests, determined on a consistent basis. The
Company calculates operating FFO by excluding the non-operating charges and gains described above.
Other real estate companies may calculate FFO and operating FFO in a different manner. FFO
excluding the net non-operating items detailed above is useful to investors as the Company removes
these charges and gains to analyze the results of its operations and assess performance of the core
operating real estate portfolio. A reconciliation of net (loss) income to FFO and operating FFO is
presented in the financial highlights section.
SAFE HARBOR
Developers Diversified Realty Corporation considers portions of the information in this press
release to be forward-looking statements within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the
Companys 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 the year ended December 31, 2010. 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 Companys Form 10-K as of December 31, 2009. The Company
undertakes no obligation to publicly revise these forward-looking statements to reflect events or
circumstances that arise after the date hereof.
5
ABOUT DEVELOPERS DIVERSIFIED REALTY
Developers Diversified owns and manages approximately 570 retail operating and development
properties in 41 states, Brazil, Canada and Puerto Rico. Totaling approximately 132 million square
feet, the Companys 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 primarily clustered 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 Companys website
at www.ddr.com.
CONFERENCE CALL INFORMATION & SUPPLEMENTAL MATERIALS
A copy of the Companys Supplemental Financial/Operational package is available to all interested
parties upon request at the Companys corporate office to Kate Deck, Investor Relations Director,
Developers Diversified Realty Corporation, 3300 Enterprise Parkway, Beachwood, Ohio 44122 or at
www.ddr.com.
The Company will hold its quarterly conference call tomorrow, February 18, 2011 at 10:00 a.m.
Eastern Daylight Time. To participate, please dial 866.831.6267 (domestic), or 617.213.8857
(international) at least ten minutes prior to the scheduled start of the call. When prompted,
provide the passcode: 33462177. Access to the live call and replay will also be available through
the Companys website. The replay will be available through March 18, 2011.
6
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands)
Financial Highlights
(In thousands)
Three-Month Periods | Year Ended | |||||||||||||||
Ended December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues: |
||||||||||||||||
Minimum rents (A) |
$ | 134,645 | $ | 133,831 | $ | 535,284 | $ | 528,230 | ||||||||
Percentage and overage rents (A) |
2,653 | 3,413 | 6,299 | 7,751 | ||||||||||||
Recoveries from tenants |
42,041 | 43,823 | 175,309 | 174,826 | ||||||||||||
Ancillary and other property income |
6,825 | 6,931 | 21,941 | 21,610 | ||||||||||||
Management, development and other fee income |
13,312 | 14,489 | 53,434 | 57,683 | ||||||||||||
Other (B) |
4,000 | 1,128 | 10,802 | 7,299 | ||||||||||||
203,476 | 203,615 | 803,069 | 797,399 | |||||||||||||
Expenses: |
||||||||||||||||
Operating and maintenance (C) |
33,996 | 36,191 | 137,862 | 135,153 | ||||||||||||
Real estate taxes |
25,843 | 25,623 | 108,299 | 102,391 | ||||||||||||
Impairment charges (D) |
28,877 | | 116,462 | 12,745 | ||||||||||||
General and administrative (E) |
23,028 | 20,896 | 85,573 | 94,365 | ||||||||||||
Depreciation and amortization |
57,506 | 54,362 | 222,862 | 217,841 | ||||||||||||
169,250 | 137,072 | 671,058 | 562,495 | |||||||||||||
Other income (expense): |
||||||||||||||||
Interest income |
2,873 | 2,564 | 7,346 | 11,984 | ||||||||||||
Interest expense (F) |
(59,776 | ) | (59,805 | ) | (226,464 | ) | (221,334 | ) | ||||||||
Gain on debt retirement, net (F) |
152 | 2,690 | 485 | 145,050 | ||||||||||||
Loss on equity derivative instruments (G) |
(25,539 | ) | (1,597 | ) | (40,157 | ) | (199,797 | ) | ||||||||
Other expense (H) |
(5,954 | ) | (19,888 | ) | (24,346 | ) | (29,192 | ) | ||||||||
(88,244 | ) | (76,036 | ) | (283,136 | ) | (293,289 | ) | |||||||||
Loss before earnings from equity method investments and other
items |
(54,018 | ) | (9,493 | ) | (151,125 | ) | (58,385 | ) | ||||||||
Equity in net income (loss) of joint ventures (I) |
9,377 | (749 | ) | 5,600 | (9,733 | ) | ||||||||||
Impairment of joint venture investments (D) |
(227 | ) | (83,013 | ) | (227 | ) | (184,584 | ) | ||||||||
Gain (loss) on change in control of interests (J) |
| 23,471 | (428 | ) | 23,865 | |||||||||||
Tax (expense) benefit of taxable REIT subsidiaries and state
franchise and income taxes (K) |
(49,469 | ) | 1,228 | (47,992 | ) | 767 | ||||||||||
Loss from continuing operations |
(94,337 | ) | (68,556 | ) | (194,172 | ) | (228,070 | ) | ||||||||
Income (loss) from discontinued operations (L) |
8,871 | (19,099 | ) | (54,867 | ) | (184,697 | ) | |||||||||
Loss before gain on disposition of real estate |
(85,466 | ) | (87,655 | ) | (249,039 | ) | (412,767 | ) | ||||||||
Gain on disposition of real estate, net of tax |
1,257 | 905 | 1,318 | 9,127 | ||||||||||||
Net loss |
(84,209 | ) | (86,750 | ) | (247,721 | ) | (403,640 | ) | ||||||||
(Income) loss attributable to non-controlling interests |
(17 | ) | 7,186 | 38,363 | 47,047 | |||||||||||
Net loss attributable to DDR |
$ | (84,226 | ) | $ | (79,564 | ) | $ | (209,358 | ) | $ | (356,593 | ) | ||||
Net loss applicable to common shareholders |
$ | (94,793 | ) | $ | (90,131 | ) | $ | (251,627 | ) | $ | (398,862 | ) | ||||
Funds From Operations (FFO): |
||||||||||||||||
Net loss applicable to common shareholders |
$ | (94,793 | ) | $ | (90,131 | ) | $ | (251,627 | ) | $ | (398,862 | ) | ||||
Depreciation and amortization of real estate investments |
55,399 | 53,970 | 217,168 | 224,207 | ||||||||||||
Equity in net (income) loss of joint ventures (I) |
(9,377 | ) | 749 | (5,600 | ) | 9,306 | ||||||||||
Joint ventures FFO (I) |
15,226 | 11,113 | 47,545 | 43,665 | ||||||||||||
Non-controlling interests (OP Units) |
8 | 8 | 32 | 175 | ||||||||||||
Gain on disposition of depreciable real estate |
(10,409 | ) | (3,718 | ) | (18,803 | ) | (23,123 | ) | ||||||||
FFO applicable to common shareholders |
(43,946 | ) | (28,009 | ) | (11,285 | ) | (144,632 | ) | ||||||||
Preferred dividends |
10,567 | 10,567 | 42,269 | 42,269 | ||||||||||||
FFO |
$ | (33,379 | ) | $ | (17,442 | ) | $ | 30,984 | $ | (102,363 | ) | |||||
Per share data: |
||||||||||||||||
Earnings per common share |
||||||||||||||||
Basic |
$ | (0.37 | ) | $ | (0.46 | ) | $ | (1.03 | ) | $ | (2.51 | ) | ||||
Diluted |
$ | (0.37 | ) | $ | (0.46 | ) | $ | (1.03 | ) | $ | (2.51 | ) | ||||
Basic average shares outstanding |
253,872 | 196,399 | 244,712 | 158,816 | ||||||||||||
Diluted average shares outstanding |
253,872 | 196,399 | 244,712 | 158,816 | ||||||||||||
Dividends Declared |
$ | 0.02 | $ | 0.02 | $ | 0.08 | $ | 0.44 | ||||||||
Funds From Operations Basic (M) |
$ | (0.17 | ) | $ | (0.14 | ) | $ | (0.05 | ) | $ | (0.90 | ) | ||||
Funds From Operations Diluted (M) |
$ | (0.17 | ) | $ | (0.14 | ) | $ | (0.05 | ) | $ | (0.90 | ) | ||||
7
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands)
Financial Highlights
(In thousands)
Selected Balance Sheet Data (N)
December 31, 2010 | December 31, 2009 | |||||||
Assets: |
||||||||
Real estate and rental property: |
||||||||
Land |
$ | 1,837,403 | $ | 1,971,782 | ||||
Buildings |
5,491,489 | 5,694,659 | ||||||
Fixtures and tenant improvements |
339,129 | 287,143 | ||||||
7,668,021 | 7,953,584 | |||||||
Less: Accumulated depreciation |
(1,452,112 | ) | (1,332,534 | ) | ||||
6,215,909 | 6,621,050 | |||||||
Land held for development and construction in progress |
743,218 | 858,900 | ||||||
Real estate held for sale, net |
| 10,453 | ||||||
Real estate, net |
6,959,127 | 7,490,403 | ||||||
Investments in and advances to joint ventures (O) |
417,223 | 420,541 | ||||||
Cash |
19,416 | 26,172 | ||||||
Restricted cash |
4,285 | 95,673 | ||||||
Notes receivable, net |
120,330 | 74,997 | ||||||
Receivables, including straight-line rent, net |
123,259 | 146,809 | ||||||
Other assets, net (K) |
124,450 | 172,011 | ||||||
$ | 7,768,090 | $ | 8,426,606 | |||||
Liabilities & Equity: |
||||||||
Indebtedness: |
||||||||
Revolving credit facilities |
$ | 279,865 | $ | 775,028 | ||||
Unsecured debt |
2,043,582 | 1,689,841 | ||||||
Mortgage and other secured debt |
1,978,553 | 2,713,794 | ||||||
4,302,000 | 5,178,663 | |||||||
Dividends payable |
12,092 | 10,985 | ||||||
Equity derivative liability (G) |
96,237 | 56,080 | ||||||
Other liabilities |
223,074 | 228,542 | ||||||
Total liabilities |
4,633,403 | 5,474,270 | ||||||
Preferred shares |
555,000 | 555,000 | ||||||
Common shares (M) |
25,627 | 20,174 | ||||||
Paid-in-capital |
3,868,990 | 3,374,528 | ||||||
Accumulated distributions in excess of net income |
(1,378,341 | ) | (1,098,661 | ) | ||||
Deferred compensation obligation |
14,318 | 17,838 | ||||||
Accumulated other comprehensive income |
25,646 | 9,549 | ||||||
Less: Common shares in treasury at cost |
(14,638 | ) | (15,866 | ) | ||||
Non-controlling interests |
38,085 | 89,774 | ||||||
Total equity |
3,134,687 | 2,952,336 | ||||||
$ | 7,768,090 | $ | 8,426,606 | |||||
8
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands)
Financial Highlights
(In thousands)
(A) | Base and percentage rental revenues for the year ended December 31, 2010, as compared to the prior-year comparable period, increased $7.0 million primarily due to the acquisition of three shopping centers, which generated an additional $8.5 million in revenues offset by a net decrease in operating assets of $1.5 million. Included in rental revenues for the years ended December 31, 2010 and 2009, is approximately $2.5 million and $4.3 million, respectively, of revenue resulting from the recognition of straight-line rents, including discontinued operations. | |
(B) | Other revenues were comprised of the following (in millions): |
Three-Month Periods | Year Ended | |||||||||||||||
Ended December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Lease termination fees |
$ | 3.4 | $ | 0.6 | $ | 7.5 | $ | 4.0 | ||||||||
Financing fees |
0.5 | 0.2 | 1.2 | 1.1 | ||||||||||||
Other miscellaneous |
0.1 | 0.3 | 2.1 | 2.2 | ||||||||||||
$ | 4.0 | $ | 1.1 | $ | 10.8 | $ | 7.3 | |||||||||
(C) | Operating and maintenance expense, including discontinued operations, includes the following expenses (in millions): |
Three-Month Periods | Year Ended | |||||||||||||||
Ended December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Bad debt expense |
$ | 3.2 | $ | 5.4 | $ | 13.4 | $ | 16.1 | ||||||||
Ground rent expense (1) |
1.2 | 1.3 | 4.9 | 4.8 |
(1) | Includes non-cash expense of approximately $0.5 million for the three-month periods ended December 31, 2010 and 2009, respectively, and approximately $2.0 million and $1.9 million for the years ended December 31, 2010 and 2009, respectively, related to straight-line ground rent expense. |
(D) | The Company recorded impairment charges during both the three-month periods and years ended December 31, 2010 and 2009, on the following consolidated assets and investments (in millions): |
Three-Month Periods | Year Ended | |||||||||||||||
Ended December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Land held for development (1) |
$ | | $ | | $ | 54.3 | $ | | ||||||||
Undeveloped land and CIP |
25.6 | | 30.5 | 0.4 | ||||||||||||
Assets marketed for sale |
3.3 | | 31.7 | 12.3 | ||||||||||||
$ | 28.9 | $ | | $ | 116.5 | $ | 12.7 | |||||||||
Sold assets (2) |
| 1.3 | 20.1 | 73.3 | ||||||||||||
Assets formerly occupied by Mervyns
(3) |
| 7.8 | 35.3 | 68.7 | ||||||||||||
Total discontinued operations |
| 9.1 | 55.4 | 142.0 | ||||||||||||
Joint venture investments |
0.2 | 83.0 | 0.2 | 184.6 | ||||||||||||
Total impairment charges |
$ | 29.1 | $ | 92.1 | $ | 172.1 | $ | 339.3 | ||||||||
(1) | Amounts reported relate to land held for development in Togliatti and Yaroslavl, Russia, of which the Companys proportionate share was $41.9 million after adjusting for the allocation of loss to the non-controlling interest in this consolidated joint venture. |
9
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands)
Financial Highlights
(In thousands)
(2) | See summary of discontinued operations activity in note (L). | ||
(3) | The Companys proportionate share of these impairments was $16.5 million and $33.6 million, after adjusting for the allocation of loss to the non-controlling interest in this previously consolidated joint venture for the years ended December 31, 2010 and 2009, respectively. As discussed in note (N), these assets were deconsolidated in the third quarter of 2010 and all operating results have been reclassified as discontinued operations. |
(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, 2010 and 2009, general and administrative expenses were approximately 5.2% and 5.4% of total revenues, respectively, including joint venture and managed property revenues. | |
During the year ended December 31, 2010, the Company incurred $5.3 million in employee separation charges. During the year ended December 31, 2009, the Company recorded a non-cash charge of $15.4 million as a result of the change in control provisions included in the Companys equity-based award plans. Excluding these charges, general and administrative expenses were 4.9% and 4.5% of total revenues for the years ended December 31, 2010 and 2009, respectively. | ||
(F) | The Company recorded the following in connection with its outstanding convertible debt (in millions): |
Three-Month Periods | Year Ended | |||||||||||||||
Ended December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Non-cash interest
expense related to
amortization of the
debt discount |
$ | 3.0 | $ | 2.5 | $ | 8.2 | $ | 12.2 | ||||||||
Non-cash adjustment to
gain on repurchase |
0.1 | 3.9 | 4.9 | 20.9 |
(G) | Represents the non-cash impact of the valuation adjustments of the equity derivative instruments (warrants) issued as part of the share purchase transaction with the Otto Family completed in 2009, as a result of changes in the Companys stock price. The liability will be reclassified into equity upon ultimate exercise or expiration of the warrants. | |
(H) | Other (expenses) income were comprised of the following (in millions): |
Three-Month Periods Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Litigation-related expenses (1) |
$ | (1.0 | ) | $ | (2.1 | ) | $ | (14.6 | ) | $ | (6.4 | ) | ||||
Lease liability reserve (2) |
(3.3 | ) | | (3.3 | ) | | ||||||||||
Debt extinguishment costs |
(0.5 | ) | (13.9 | ) | (3.7 | ) | (14.2 | ) | ||||||||
Note receivable reserve |
| | 0.1 | (5.4 | ) | |||||||||||
Sale of MDT units |
| | | 2.8 | ||||||||||||
Abandoned projects and other expenses |
(1.2 | ) | (3.9 | ) | (2.8 | ) | (6.0 | ) | ||||||||
$ | (6.0 | ) | $ | (19.9 | ) | $ | (24.3 | ) | $ | (29.2 | ) | |||||
(1) | The year ended December 31, 2010 includes a $5.1 million reserve recorded in connection with a legal matter at a property in Long Beach, California. This reserve was offset by a tax benefit of approximately $2.4 million, classified in the tax expense (benefit) line item in the consolidated statements of operations, because the asset is owned through the Companys TRS. Total litigation-related expenditures, net of the tax benefit, were $1.0 |
10
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands)
Financial Highlights
(In thousands)
million and $12.2 million for the three-month period and year ended December 31, 2010, respectively. | |||
(2) | Represents the liability recorded pursuant to ASC 420, Exit or Disposal Cost Obligations, primarily relating to the contractual obligations associated with the ground lease for an abandoned development project in Norwood, Massachusetts. |
(I) | At December 31, 2010 and 2009, the Company owned joint venture interests, excluding consolidated joint ventures, in 236 and 274 shopping center properties, respectively. See pages 13-15 of this press release for a summary of the combined condensed operating results and select balance sheet data of the Companys unconsolidated joint ventures. | |
(J) | In October 2009, the Companys 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. | |
(K) | The Company incurred a fourth quarter non-cash income tax expense of $49.9 million recognized due to the establishment of a reserve against certain deferred tax assets within its TRS. Based upon the continued loss activity recognized by the TRS, including a fourth quarter impairment and lease liability charge of $22.3 million associated with an abandoned development project, it was determined that it was more likely than not that the deferred tax assets would not be utilizable, thus requiring a current reserve. Net deferred tax assets are classified within Other assets on the consolidated balance sheet at December 31, 2009. | |
(L) | The operating results relating to assets classified as discontinued operations are summarized as follows: |
Three-Month Periods | Year Ended | |||||||||||||||
Ended December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues from operations |
$ | 892 | $ | 6,666 | $ | 12,015 | $ | 45,910 | ||||||||
Operating expenses |
70 | 4,844 | 8,535 | 24,915 | ||||||||||||
Impairment charges |
| 9,055 | 55,438 | 141,973 | ||||||||||||
Interest, net |
134 | 5,583 | 9,892 | 23,566 | ||||||||||||
Depreciation and amortization |
194 | 2,222 | 4,441 | 16,126 | ||||||||||||
Total expenses |
398 | 21,704 | 78,306 | 206,580 | ||||||||||||
Loss before disposition of real estate |
494 | (15,038 | ) | (66,291 | ) | (160,670 | ) | |||||||||
Gain on deconsolidation of interests |
| | 5,649 | | ||||||||||||
Gain (loss) on disposition of real
estate, net |
8,377 | (4,061 | ) | 5,775 | (24,027 | ) | ||||||||||
Net income (loss) |
$ | 8,871 | $ | (19,099 | ) | $ | (54,867 | ) | $ | (184,697 | ) | |||||
Discontinued operations for all periods presented include the activity associated with the 50% owned joint venture, DDR MDT MV LLC (MV LLC or the Mervyns Joint Venture), which was deconsolidated during the third quarter of 2010. See further discussion in note (N). |
11
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands)
Financial Highlights
(In thousands)
(M) | For purposes of computing FFO and operating FFO per share, the following share information was utilized (in millions): |
At December 31, | ||||||||
2010 | 2009 | |||||||
Common shares outstanding |
256.2 | 201.6 | ||||||
OP Units outstanding (OP Units) |
0.4 | 0.4 |
Three-Month Periods | Year Ended | |||||||||||||||
Ended December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Weighted
average common shares outstanding |
256.2 | 197.9 | 246.6 | 159.7 | ||||||||||||
Assumed conversion of OP Units |
0.4 | 0.4 | 0.4 | 0.4 | ||||||||||||
FFO Weighted average common
shares and OP Units Basic and Diluted |
256.6 | 198.3 | 247.0 | 160.1 | ||||||||||||
Assumed conversion of dilutive securities |
8.2 | 5.2 | 7.4 | 3.1 | ||||||||||||
Operating FFO Weighted
average common shares and OP Units Diluted |
264.8 | 203.5 | 254.4 | 163.2 | ||||||||||||
(N) | The December 31, 2009 balance sheet reflects the consolidation of a 50% owned joint venture, MV LLC, which as of that date owned 31 sites formerly occupied by Mervyns. |
December 31, 2009 | ||||
Real estate, net |
$ | 218.7 | ||
Restricted cash |
$ | 50.5 | ||
Mortgage debt |
$ | 225.4 | ||
Non-controlling interests |
$ | 22.4 |
The 25 assets owned by MV LLC in August 2010 were placed in the control of a court appointed receiver and as a result, the entity that holds the assets and nonrecourse mortgage loan was deconsolidated for accounting purposes pursuant to the provisions of Accounting Standards Codification No. 810, Consolidation (ASC 810). Upon deconsolidation in the third quarter of 2010, the Company recorded a gain of approximately $5.6 million because the carrying value of the nonrecourse debt exceeded the carrying value of the collateralized assets. Following the deconsolidation, the Company no longer has any economic rights or obligations in MV LLC. The revenues and expenses associated with MV LLC for the current and prior periods, including the $5.6 million gain, are classified within discontinued operations in the statements of operations. | ||
(O) | Included in the Companys balance sheet as of December 31, 2009, was $28.5 million of assets owned by a consolidated joint venture that was deconsolidated in accordance with the adoption of ASC 810 as of January 1, 2010. |
12
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Summary Results of Combined Unconsolidated Joint Ventures
(In thousands)
Summary Results of Combined Unconsolidated Joint Ventures
(In thousands)
Combined condensed income statements
Three-Month Periods | Year Ended | |||||||||||||||
Ended December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenues from operations (A) |
$ | 171,846 | $ | 172,531 | $ | 668,946 | $ | 778,770 | ||||||||
Operating expenses |
61,309 | 67,630 | 256,380 | 301,637 | ||||||||||||
Impairment charges (B) |
1,304 | 218,479 | 12,291 | 218,479 | ||||||||||||
Depreciation and amortization of real estate
investments |
47,752 | 49,619 | 187,876 | 218,547 | ||||||||||||
Interest expense |
59,285 | 63,440 | 230,649 | 280,345 | ||||||||||||
169,650 | 399,168 | 687,196 | 1,019,008 | |||||||||||||
Income (loss) from operations before tax expense
and discontinued operations |
2,196 | (226,637 | ) | (18,250 | ) | (240,238 | ) | |||||||||
Income tax expense |
(6,502 | ) | (2,948 | ) | (20,449 | ) | (10,013 | ) | ||||||||
Income (loss) from discontinued operations, net of
tax (C) |
219 | (172,417 | ) | (9,674 | ) | (206,436 | ) | |||||||||
(Loss) gain on disposition of discontinued
operations, net of tax (D) |
(1,371 | ) | 64 | (26,674 | ) | (19,448 | ) | |||||||||
Gain (loss) on disposition of assets (E) |
| 843 | 17 | (25,973 | ) | |||||||||||
Other, net (F) |
| | | 7,153 | ||||||||||||
Net loss |
$ | (5,458 | ) | $ | (401,095 | ) | $ | (75,030 | ) | $ | (494,955 | ) | ||||
Net gain (loss) at DDR ownership interests
(G) |
$ | 10,676 | $ | (22,147 | ) | $ | 6,319 | $ | (34,522 | ) | ||||||
FFO at DDRs ownership interests (H) |
$ | 15,226 | $ | 11,113 | $ | 47,545 | $ | 43,665 | ||||||||
Combined condensed balance sheets
December 31, 2010 | December 31, 2009 | |||||||
Land |
$ | 1,566,682 | $ | 1,782,431 | ||||
Buildings |
4,783,841 | 5,207,234 | ||||||
Fixtures and tenant improvements |
154,292 | 146,716 | ||||||
6,504,815 | 7,136,381 | |||||||
Less: Accumulated depreciation |
(726,291 | ) | (636,897 | ) | ||||
5,778,524 | 6,499,484 | |||||||
Land held for development and construction in progress (I) |
174,237 | 130,410 | ||||||
Real estate, net |
5,952,761 | 6,629,894 | ||||||
Receivables, including straight-line rent, net |
111,569 | 113,630 | ||||||
Leasehold interests |
10,296 | 11,455 | ||||||
Other assets, net |
303,826 | 342,192 | ||||||
$ | 6,378,452 | $ | 7,097,171 | |||||
Mortgage debt (J) |
$ | 3,950,794 | $ | 4,547,711 | ||||
Notes and accrued interest payable to DDR |
87,282 | 73,477 | ||||||
Other liabilities |
186,728 | 194,065 | ||||||
4,224,804 | 4,815,253 | |||||||
Accumulated equity |
2,153,648 | 2,281,918 | ||||||
$ | 6,378,452 | $ | 7,097,171 | |||||
13
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Summary Results of Combined Unconsolidated Joint Ventures
(In thousands)
Summary Results of Combined Unconsolidated Joint Ventures
(In thousands)
(A) | Revenues for the three-month periods and years ended reflect the following (in millions): |
Three-Month Periods | Year Ended | |||||||||||||||
Ended December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Straight-line rents |
$ | 1.0 | $ | (0.3 | ) | $ | 3.9 | $ | 2.7 | |||||||
DDRs proportionate share |
0.2 | | 0.6 | 0.2 |
The 2009 combined condensed income statement includes the results of operation of the EDT joint venture. In October 2009, the Company redeemed its ownership interest in this joint venture and are not reflected in discontinued operations. | ||
(B) | For the three months and year ended December 31, 2010, impairment charges were recorded by two of the Companys unconsolidated joint ventures relating to three assets, of which the Companys proportionate share of these impairment charges for the year ended was approximately $0.5 million. The Companys proportionate share of the fourth quarter charge was immaterial. For the three months and year ended December 31, 2009, an impairment charge of $218.5 million was recorded by one of the Companys unconsolidated joint ventures related to a suspended development project. The Companys proportionate share of the loss was zero as the Company had written off its basis in the investment in the second quarter of 2009. | |
(C) | Impairment charges reclassified to discontinued operations relating to assets sales were $8.8 million for the year ended December 31, 2010 and $170.9 million and $204.8 for the three months and year ended December 31, 2009, respectively. The Companys proportionate share of these impairment charges was $0.3 million for the year ended December 31, 2010 and $2.6 million and $8.1 million for the three months and year ended December 31, 2009, respectively. | |
(D) | For the three months ended December 31, 2010, a $4.9 million net gain was recorded for the Companys proportionate share of the assets sold during that period as a result of promoted interests from one of the asset sales. For the year ended December 31, 2010, loss on disposition of discontinued operations includes the sale of 35 properties by five separate unconsolidated joint ventures. In 2009, $170.9 million of impairment charges were recorded by these joint ventures in anticipation of the sales transactions as noted in (C) above. The Companys proportionate share of the aggregate loss for the assets sold for the year ended December 31, 2010 was a gain of approximately $0.8 million. | |
For the year ended December 31, 2009, loss on disposition of discontinued operations included the sale of 12 properties by three separate unconsolidated joint ventures resulting in a loss of $19.4 million of which the Companys proportionate share was $1.4 million. | ||
(E) | In the first quarter of 2009, an unconsolidated joint venture disposed of a property resulting in a loss of $26.7 million, of which the Companys proportionate share was $5.8 million. | |
(F) | Activity related to the Companys investment in the MDT units that were liquidated in 2009. |
14
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Summary Results of Combined Unconsolidated Joint Ventures
(In thousands)
Summary Results of Combined Unconsolidated Joint Ventures
(In thousands)
(G) | Adjustments to the Companys share of joint venture equity in net loss is related primarily to basis differences impacting amortization and depreciation, impairment charges and (loss) gain on dispositions as follows (in millions): |
Three-Month Periods | Year Ended | |||||||||||||||
Ended December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Loss) income, net |
$ | (1.2 | ) | $ | 21.4 | $ | (0.7 | ) | $ | 24.8 | ||||||
(H) FFO from unconsolidated joint ventures are summarized as follows: | ||||||||||||||||
Three-Month Periods | Year Ended | |||||||||||||||
Ended December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net loss |
$ | (5,458 | ) | $ | (401,095 | ) | $ | (75,030 | ) | $ | (494,955 | ) | ||||
Loss on sale of real estate |
(24,687 | ) | (843 | ) | (24,734 | ) | (843 | ) | ||||||||
Depreciation and amortization
of real estate investments |
48,508 | 55,528 | 198,323 | 245,000 | ||||||||||||
FFO |
$ | 18,363 | $ | (346,410 | ) | $ | 98,559 | $ | (250,798 | ) | ||||||
FFO at DDRs ownership interests |
$ | 15,226 | $ | 11,113 | $ | 47,545 | $ | 43,665 | ||||||||
Operating FFO at DDRs
ownership interests
(1) |
$ | 15,721 | $ | 13,722 | $ | 54,433 | $ | 62,690 | ||||||||
DDR joint venture distributions
received, net (2) |
$ | 24,470 | $ | 7,963 | $ | 53,768 | $ | 31,455 | ||||||||
(1) | Excluded from operating FFO is the Companys pro rata share of net charges primarily related to impairment charges and losses on the disposition of assets as disclosed on page 2 of this press release. | |
(2) | Distributions for 2009 included $2.5 million from a foreign investment that have yet to be expatriated to the United States. |
(I) | The Companys proportionate share of joint venture land held for development and construction in progress aggregated approximately $71.7 million and $37.6 million at December 31, 2010 and December 31, 2009, respectively. | |
The combined condensed balance sheet at December 31, 2010 included a joint venture under development that was deconsolidated by the Company as of January 1, 2010 due to the adoption of ASC 810 (Footnote O in this release). | ||
(J) | The Companys proportionate share of joint venture debt aggregated approximately $835.8 million and $917.0 million at December 31, 2010 and December 31, 2009, respectively. |
15
Developers
Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
FINANCIAL HIGHLIGHTS
(In Millions Except Per Share Information)
(In Millions Except Per Share Information)
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
FUNDS FROM OPERATIONS: |
||||||||||||
Net Loss Applicable to Common Shareholders |
$ | (251.6 | ) | $ | (398.9 | ) | $ | (114.2 | ) | |||
Depreciation and Amortization of Real Estate Investments |
217.2 | 224.2 | 236.3 | |||||||||
Equity in Net (Income) Loss From Joint Ventures |
(5.6 | ) | 9.3 | (17.7 | ) | |||||||
Joint Venture Funds From Operations |
47.5 | 43.7 | 68.4 | |||||||||
Non-Controlling Interests (OP Units) |
| 0.2 | 1.1 | |||||||||
Gain on Disposition of Real Estate |
(18.8 | ) | (23.1 | ) | (4.2 | ) | ||||||
FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS |
(11.3 | ) | (144.6 | ) | 169.7 | |||||||
PREFERRED DIVIDENDS |
42.3 | 42.3 | 42.3 | |||||||||
FUNDS FROM OPERATIONS |
$ | 31.0 | $ | (102.3 | ) | $ | 212.0 | |||||
Net non-operating charges excluded from FFO (1) |
275.6 | 442.8 | 217.8 | |||||||||
OPERATING FFO AVAILABLE TO COMMON SHAREHOLDERS |
$ | 264.3 | $ | 298.2 | $ | 387.5 | ||||||
PER SHARE INFORMATION: |
||||||||||||
Funds From Operations Diluted |
$ | (0.05 | ) | $ | (0.90 | ) | $ | 1.40 | ||||
Operating FFO Diluted |
$ | 1.04 | $ | 1.83 | $ | 3.20 | ||||||
Net Loss Diluted |
$ | (1.03 | ) | $ | (2.51 | ) | $ | (0.96 | ) | |||
Dividends |
$ | 0.08 | $ | 0.44 | $ | 2.07 | ||||||
COMMON SHARES & OP UNITS: |
||||||||||||
Outstanding |
256.6 | 202.0 | 129.0 | |||||||||
Weighted average Diluted (FFO) |
247.0 | 160.1 | 121.0 | |||||||||
Weighted average Diluted (Operating FFO) |
254.4 | 163.2 | 121.0 | |||||||||
GEN. & ADMIN. EXPENSES |
$ | 85.6 | $ | 94.4 | $ | 97.7 | ||||||
REVENUES: |
||||||||||||
DDR Revenues |
$ | 815.1 | $ | 843.3 | $ | 943.7 | ||||||
Joint Venture & Managed Revenues |
840.6 | 902.0 | 946.3 | |||||||||
TOTAL REVENUES (2) |
$ | 1,655.7 | $ | 1,745.3 | $ | 1,890.0 | ||||||
GEN. & ADMIN. EXPENSES AS A PERCENTAGE OF TOTAL REVENUES (3) |
5.2 | % | 5.4 | % | 5.2 | % | ||||||
NET OPERATING INCOME: |
||||||||||||
DDR Net Operating Income |
$ | 560.9 | $ | 581.6 | $ | 682.6 | ||||||
Joint Venture Net Operating Income |
428.1 | 532.3 | 617.5 | |||||||||
TOTAL NET OPERATING INCOME (2) |
$ | 989.0 | $ | 1,113.9 | $ | 1,300.1 | ||||||
REAL ESTATE AT COST: |
||||||||||||
DDR Real Estate at Cost |
$ | 8,411.2 | $ | 8,823.7 | $ | 9,109.6 | ||||||
Joint Venture Real Estate at Cost (4) |
6,679.1 | 7,266.8 | 9,276.0 | |||||||||
TOTAL REAL ESTATE AT COST |
$ | 15,090.3 | $ | 16,090.5 | $ | 18,385.6 | ||||||
(1) | See Reconciliation of Non-GAAP Financial Measures for detail of net non-operating charges. | |
(2) | Includes activities from discontinued operations. | |
(3) | The 2010 results include an employee separation charge of $5.3 million. Excluding this charge, general and administrative expenses were approximately 4.9% of total revenues for the year ended December 31, 2010. The 2009 results include $15.4 million related to a non-cash change in control charge. Excluding this charge, general and administrative expenses were approximately 4.5% of total revenues. The 2008 results include $15.8 million for a non-cash charge related to the termination of an equity award plan. Excluding this charge, general and administrative expenses were approximately 4.3% of total revenues. | |
(4) | Periods after October 2009 include the impact of the redemption of the Companys interest in the MDT US LLC joint venture which reduced the joint venture real estate at cost by $1.6 billion. DDRs consolidated real estate at cost increased by $113.3 million in the fourth quarter of 2009 related to the three assets transferred to the Company in connection with the redemption. |
16
Developers
Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
FINANCIAL RATIOS
(In Millions, Except Ratios)
(In Millions, Except Ratios)
Actual Covenants | ||||
Year Ended | ||||
Covenant | December 31, | |||
Threshold | 2010 | |||
PUBLIC DEBT COVENANTS: |
||||
Total Debt to Real Estate Assets Ratio |
not to exceed 65% | 49% | ||
Secured Debt to Assets Ratio |
not to exceed 40% | 22% | ||
Value of Unencumbered Assets to Unsecured Debt |
at least 135% | 217% | ||
Fixed Charge Coverage Ratio |
at least 1.5x | 1.8x |
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
DIVIDEND PAYOUT RATIO: |
||||||||||||
Common Share Dividends and Operating Partnership Interests |
$ | 20.2 | $ | 64.7 | (1) | $ | 249.8 | |||||
Operating FFO Available to Common Shareholders |
$ | 264.3 | $ | 298.2 | $ | 387.5 | ||||||
7.7 | % | 21.7 | %(1) | 64.6 | % |
Rating | Outlook | |||
CREDIT RATINGS:
|
||||
Moodys
|
Baa3 | negative | ||
Fitch
|
BB | stable | ||
S&P
|
BB | negative |
(1) | Includes issuance of common shares with an aggregate value of $50.8 million resulting in an actual cash payout ratio of 3.1% in 2009. |
17
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
For the year ended December 31, 2010
Total Market Capitalization as of December 31, 2010
(In Millions)
(In Millions)
December 31, 2010 | December 31, 2009 | |||||||||||||||
Percentage of | Percentage of | |||||||||||||||
Amount | Total | Amount | Total | |||||||||||||
Common Shares Equity |
$ | 3,614.9 | 42 | % | $ | 1,870.9 | 25 | % | ||||||||
Perpetual Preferred Stock |
555.0 | 7 | % | 555.0 | 7 | % | ||||||||||
Fixed-Rate Senior Convertible Notes, Face Value |
638.0 | 7 | % | 428.3 | 6 | % | ||||||||||
Fixed-Rate Unsecured Debt |
1,463.6 | 17 | % | 1,279.1 | 17 | % | ||||||||||
Fixed-Rate Mortgage Debt |
1,234.5 | 14 | % | 1,594.2 | 21 | % | ||||||||||
Variable-Rate Mortgage Debt |
144.0 | 2 | % | 319.7 | 4 | % | ||||||||||
Variable-Rate Revolving Credit and Term Debt |
729.9 | 9 | % | 1,175.0 | 15 | % | ||||||||||
Fixed-Rate Revolving Credit and Term Debt |
150.0 | 2 | % | 400.0 | 5 | % | ||||||||||
Total |
$ | 8,529.9 | 100 | % | $ | 7,622.2 | 100 | % | ||||||||
Debt to Market Capitalization |
51.1% | 68.2% |
| Market value ($14.09 per share as of December 31, 2010 and $9.26 per share as of December 31, 2009) includes common shares outstanding (256.2 million as of December 31, 2010 and 201.6 million as of December 31, 2009) and operating partnership units equivalent to approximately 0.4 million of the Companys common shares in each year. | |
| Debt outstanding excludes accretion adjustment of $58.0 million and $17.6 million recorded at December 31, 2010 and 2009, respectively, for the outstanding convertible notes as required by accounting standards due to the initial value of the equity conversion feature. | |
| Consolidated debt includes 100% of consolidated joint venture debt of which the joint venture partners share is $22.1 million and $142.3 million at December 31, 2010 and December 31, 2009, respectively. | |
| Does not include proportionate share of unconsolidated joint venture debt aggregating $835.8 million and $917.0 million at December 31, 2010 and December 31, 2009, respectively. | |
| During 2010, 25 assets formerly occupied by Mervyns which are owned by the MDT MV LLC joint venture were placed in the control of a court appointed receiver. The entities that hold the assets and nonrecourse mortgage loans were deconsolidated for accounting purposes. This deconsolidation resulted in a decrease of consolidated debt of $154.1 million from December 31, 2010 as compared to December 31, 2009 of which the joint partners share was $112.7 million. |
18
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
For the year ended December 31, 2010
Quarter ended | Quarter ended | |||||||
(In Millions) | December 31, 2010 | December 31, 2009 | ||||||
Debt to EBITDA consolidated |
||||||||
EBITDA: |
||||||||
Net loss attributable to DDR |
$ | (84.2 | ) | $ | (79.6 | ) | ||
Adjustments: |
||||||||
Impairment charges |
28.9 | 9.1 | ||||||
Employee separation charges |
3.2 | | ||||||
Depreciation and amortization |
57.5 | 56.5 | ||||||
Depreciation attributable to non-controlling interests |
(0.1 | ) | (0.5 | ) | ||||
Interest expense |
59.8 | 64.9 | ||||||
Interest expense attributable to non-controlling interests |
(0.1 | ) | (2.0 | ) | ||||
Gain on change in control of interests |
| (23.5 | ) | |||||
Loss on equity derivative instruments |
25.5 | 1.6 | ||||||
Other expenses, net |
6.0 | 19.9 | ||||||
Equity in net (income) loss of joint ventures |
(9.4 | ) | 0.7 | |||||
Impairment of joint venture investments |
0.2 | 83.0 | ||||||
Gain on debt retirement, net |
(0.2 | ) | (2.7 | ) | ||||
Income tax expense (benefit) |
49.5 | (1.2 | ) | |||||
EBITDA adjustments from discontinued operations (1) |
(8.0 | ) | 4.8 | |||||
Gain on disposition of real estate, net |
(1.3 | ) | (0.9 | ) | ||||
Impairment charges applicable to non-controlling interests |
| (3.9 | ) | |||||
EBITDA before JVs |
$ | 127.3 | $ | 126.2 | ||||
Pro rata share of JV FFO |
15.2 | 11.1 | ||||||
Pro rata share of JV impairments and loss on disposition of assets |
0.5 | 2.6 | ||||||
EBITDA Consolidated |
$ | 143.0 | $ | 139.9 | ||||
EBITDA Consolidated annualized |
$ | 572.0 | $ | 559.6 | ||||
Consolidated indebtedness |
$ | 4,302.0 | $ | 5,178.7 | ||||
Non-controlling interests share of consolidated debt |
(22.1 | ) | (142.4 | ) | ||||
Adjustment to reflect convertible debt at face value |
58.0 | 17.6 | ||||||
Total consolidated indebtedness |
$ | 4,337.9 | $ | 5,053.9 | ||||
Cash and restricted cash |
(23.7 | ) | (96.2 | ) | ||||
Total consolidated indebtedness, net of cash |
$ | 4,314.2 | $ | 4,957.7 | ||||
Gross Debt/EBITDA consolidated |
7.54 | 8.86 | ||||||
Ratio reflects Companys 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. Operations from September 1, 2010 and debt for the year ended December 31,
2010 relating to the Mervyns joint venture have been excluded from this calculation due to the deconsolidation of the
joint venture and valuation of the Companys retained interest at zero.
Debt to EBITDA pro rata |
||||||||
EBITDA before JVs |
$ | 127.3 | $ | 126.2 | ||||
Pro rata share of JV EBITDA |
30.4 | 29.8 | ||||||
EBITDA including pro rata share of JVs |
$ | 157.7 | $ | 156.0 | ||||
EBITDA including pro rata share of JVs annualized |
$ | 630.8 | $ | 624.0 | ||||
Total consolidated indebtedness, net of cash |
$ | 4,314.2 | $ | 4,957.7 | ||||
Pro rata share of JV debt (2) |
835.8 | 917.0 | ||||||
Total pro rata indebtedness |
$ | 5,150.0 | $ | 5,874.7 | ||||
Pro rata share of cash and restricted cash |
(32.6 | ) | (40.4 | ) | ||||
Pro rata indebtedness, net of cash |
$ | 5,117.4 | $ | 5,834.3 | ||||
Gross Debt/EBITDA pro rata |
8.11 | 9.35 | ||||||
Ratio includes Companys pro rata share of JV EBITDA and the Companys pro rata share of JV debt outstanding.
Operations from September 1, 2010 and debt for the year ended December 31, 2010 relating to the Mervyns joint venture
have been excluded from this calculation due to the deconsolidation of the joint venture and valuation of the
Companys retained interest at zero.
Notes:
(1) Discontinued operations includes the following EBITDA adjustments: |
||||||||
Interest expense, net |
$ | 0.2 | $ | 0.6 | ||||
Depreciation and amortization |
0.2 | 0.1 | ||||||
(Gain) loss on disposition of real estate, net |
(8.4 | ) | 4.1 | |||||
$ | (8.0 | ) | $ | 4.8 | ||||
(2) | Includes $52.7 million representing the Companys proportionate share of non recourse debt associated with equity method joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income. |
19
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
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 tenants lease, which generally coincides with the receipt of cash. |
| Base rental revenue includes income from ground leases of $19.8 million for the year ended December 31, 2010. |
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. For the year ended December 31, 2010, the Company expensed $8.6 million in internal leasing costs. All internal and external costs associated with acquisitions are expensed as incurred. The Company does not capitalize any executive officer compensation. |
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 propertys 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 |
20
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
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 and certain construction administration costs. Capitalization of interest and administration costs ceases when construction activities are completed and the property is available for occupancy by tenants or when activities are suspended. |
Year Ended December 31, | ||||||||||||
Capitalized Costs (In Millions) | 2010 | 2009 | 2008 | |||||||||
Interest expense |
$ | 12.2 | $ | 21.8 | $ | 41.1 | ||||||
Construction administration costs |
$ | 8.8 | $ | 10.9 | $ | 13.9 |
| Interest and real estate taxes incurred during the construction period are capitalized and depreciated over the building life. |
| During the year ended December 31, 2010, the Company expensed $6.0 million in operating costs relating to development projects that have been suspended. |
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. |
| Gains or losses on the sale of operating shopping centers are reflected as discontinued operations. |
21
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Other Real Estate Information
Total Capital Expenditures
| The Company incurred the following estimated leasing and maintenance capital expenditures including costs associated with anchor store re-tenanting related to major tenant bankruptcies. |
Unconsolidated | ||||||||
Consolidated | at Prorata | |||||||
Year | Year | |||||||
Ended | Ended | |||||||
Capital Expenditures (In Millions) | December 31, 2010 | December 31, 2010 | ||||||
Leasing |
$ | 49.4 | $ | 4.8 | ||||
Maintenance |
7.1 | 0.7 | ||||||
Total Capital Expenditures |
$ | 56.5 | $ | 5.5 | ||||
Per Square Foot of Owned GLA
|
||||||||
Leasing |
$ | 1.03 | $ | 0.56 | ||||
Maintenance |
0.15 | 0.08 | ||||||
Total Capital Expenditures |
$ | 1.18 | $ | 0.64 | ||||
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. |
| At December 31, 2010, the Company estimated the value of its consolidated and proportionate share of joint venture undeveloped land adjacent to existing shopping centers to be approximately $35 million. |
Non-Income Producing Assets
| There are twelve consolidated shopping centers and the Companys corporate headquarters, which total 0.8 million square feet with a land and building cost basis of approximately $100 million, considered non-incoming producing at December 31, 2010. |
22
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Same Store NOI
(In Millions)
(In Millions)
Same Store Net Operating Income (NOI) represents shopping center assets owned for comparable periods (15 months for quarter comparison and 24 months for full year comparison). Same Store NOI excludes the
following:
| Assets under development or redevelopment | ||
| Straight-line rental income and expense | ||
| Income related to lease terminations | ||
| Provisions for uncollectible amounts and/or recoveries thereof |
Three Months Ended | Year Ended | |||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||||||
Total Same Store NOI |
$ | 226.1 | $ | 218.2 | (1) | 3.6 | % | $ | 880.0 | $ | 870.0 | (1) | 1.1 | % | ||||||||||
Property NOI from other operating segments |
(28.1 | ) | (28.5 | ) | (89.5 | ) | (167.0 | ) | ||||||||||||||||
Combined NOI DDR & Joint Ventures |
$ | 254.2 | $ | 246.7 | $ | 969.5 | $ | 1,037.0 | ||||||||||||||||
Reconciliation
to Income Statement
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Total Revenues DDR |
$ | 203.5 | $ | 203.6 | $ | 803.1 | $ | 797.4 | ||||||||
Total Revenues Combined Joint Ventures |
171.8 | 172.5 | (1) | 668.9 | 778.8 | (1) | ||||||||||
Operating and Maintenance DDR |
(34.0 | ) | (36.2 | ) | (137.9 | ) | (135.2 | ) | ||||||||
Real Estate Taxes DDR |
(25.8 | ) | (25.6 | ) | (108.3 | ) | (102.4 | ) | ||||||||
Operating
and Maintenance and Real Estate Taxes Combined Joint
Ventures |
(61.3 | ) | (67.6 | )(1) | (256.3 | ) | (301.6 | )(1) | ||||||||
Combined NOI DDR & Joint Ventures |
$ | 254.2 | $ | 246.7 | $ | 969.5 | $ | 1,037.0 | ||||||||
(1) | The actual combined joint venture results for the three months and year ended December 31, 2009 include the activity of the MDT US LLC joint venture through October 2009. However, for purposes of calculating the Same Store NOI, the results of the assets within the MDT US LLC joint venture not retained by the Company after the redemption were excluded for 2009. |
23
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
(In Millions)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
FUNDS FROM OPERATIONS: |
||||||||||||||||
Net Loss Applicable to Common Shareholders |
$ | (94.8 | ) | $ | (90.1 | ) | $ | (251.6 | ) | $ | (398.9 | ) | ||||
Depreciation and Amortization of Real Estate Investments |
55.5 | 54.0 | 217.2 | 224.2 | ||||||||||||
Equity in Net (Income) Loss From Joint Ventures |
(9.4 | ) | 0.7 | (5.6 | ) | 9.3 | ||||||||||
Joint Venture Funds From Operations |
15.2 | 11.1 | 47.5 | 43.7 | ||||||||||||
Non-Controlling Interests (OP Units) |
| | | 0.2 | ||||||||||||
Gain on Dispostion of Real Estate |
(10.4 | ) | (3.7 | ) | (18.8 | ) | (23.1 | ) | ||||||||
FUNDS FROM OPERATIONS AVAILABLE TO COMMON
SHAREHOLDERS |
$ | (43.9 | ) | $ | (28.0 | ) | $ | (11.3 | ) | $ | (144.6 | ) | ||||
Preferred Dividends |
10.6 | 10.6 | 42.3 | 42.3 | ||||||||||||
FUNDS FROM OPERATIONS |
$ | (33.3 | ) | $ | (17.4 | ) | $ | 31.0 | $ | (102.3 | ) | |||||
OPERATING FFO: |
||||||||||||||||
Non-cash impairment charges consolidated assets |
$ | 28.9 | $ | | $ | 116.5 | $ | 12.7 | ||||||||
Employee separations and related compensation and benefit charges |
3.5 | | 5.6 | 15.4 | ||||||||||||
Gain on debt retirement, net |
(0.2 | ) | (2.7 | ) | (0.5 | ) | (145.1 | ) | ||||||||
Non-cash loss on equity derivative instruments |
25.5 | 1.6 | 40.2 | 199.8 | ||||||||||||
Other expense, net litigation, net of tax, debt extinguishment
costs, loss on
sale of MDT units, net loan loss reserve, lease liabilities and other
expenses |
6.0 | 20.0 | 22.0 | 30.0 | ||||||||||||
Equity in net loss of joint ventures loss on asset sales,
impairment charges
and derivative losses (MDT) |
0.2 | 2.6 | 6.6 | 19.0 | ||||||||||||
Impairment of joint venture interests |
0.2 | 83.0 | 0.2 | 184.6 | ||||||||||||
(Gain) loss on change in control of interests |
| (23.5 | ) | 0.4 | (23.9 | ) | ||||||||||
Tax expense deferred tax assets reserve |
49.9 | | 49.9 | | ||||||||||||
Discontinued operations non-cash consolidated impairment charges and
loss on sales |
1.3 | 13.7 | 67.1 | 185.5 | ||||||||||||
Discontinued operations FFO associated with Mervyns Joint Venture,
net of non-controlling interest |
| | 4.8 | | ||||||||||||
Discontinued operations gain on deconsolidation of Mervyns Joint
Venture |
| | (5.6 | ) | | |||||||||||
Gain on disposition of real estate |
(0.5 | ) | | (0.4 | ) | | ||||||||||
Less non-controlling interest portion of impairment charges
allocated to
outside partners |
| (3.9 | ) | (31.2 | ) | (35.2 | ) | |||||||||
TOTAL NON-OPERATING ITEMS |
$ | 114.8 | $ | 90.8 | $ | 275.6 | $ | 442.8 | ||||||||
FUNDS FROM OPERATIONS AVAILABLE TO COMMON |
||||||||||||||||
SHAREHOLDERS |
(43.9 | ) | (28.0 | ) | (11.3 | ) | (144.6 | ) | ||||||||
OPERATING FFO AVAILABLE TO COMMON SHAREHOLDERS |
$ | 70.9 | $ | 62.8 | $ | 264.3 | $ | 298.2 | ||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
(Income)/Expense | (Income)/Expense | |||||||||||||||
ADDITIONAL NON-CASH DISCLOSURES: |
||||||||||||||||
Below Market Rent Revenue* |
$ | | $ | (0.1 | ) | $ | (0.3 | ) | $ | (0.5 | ) | |||||
Debt Premium Amortization Revenue* |
(0.6 | ) | (0.8 | ) | (2.9 | ) | (3.5 | ) | ||||||||
Convertible Debt Accretion Expense |
3.0 | 2.5 | 8.2 | 12.2 | ||||||||||||
Straight-Line Rent Revenue |
0.8 | 1.8 | 2.5 | 4.3 | ||||||||||||
Straight-Line Ground Rent Expense* |
0.5 | 0.5 | 2.0 | 1.9 | ||||||||||||
Joint Venture Straight-Line Rent Revenue |
1.0 | (0.3 | ) | 3.9 | 2.7 | |||||||||||
DDRs Proportionate Share of Straight-Line Rent Revenue |
0.2 | (0.1 | ) | 0.6 | 0.2 |
* | Prorata share of joint venture is deminis |
24
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Consolidated Transactional Income
(In Thousands)
(In Thousands)
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||
Included in FFO: |
||||||||||||||||||||
Gain (Loss) on Dispositions, Net of Tax |
$ | (31 | ) | $ | 27 | $ | (598 | ) | $ | 529 | ||||||||||
Loss on Sales from Discontinued Operations |
(1,329 | ) | (4,401 | ) | (12,071 | ) | (43,356 | ) | ||||||||||||
Land Sale Gain (Loss) |
585 | (2,500 | ) | 959 | 4,804 | |||||||||||||||
$ | (775 | ) | $ | (6,874 | ) | $ | (11,710 | ) | $ | (38,023 | ) | |||||||||
NOT Included in FFO: |
||||||||||||||||||||
Gain (Loss) on Dispositions, Net of Tax |
$ | 703 | $ | 3,378 | $ | 957 | $ | 3,794 | ||||||||||||
Gain on Sales from Discontinued Operations |
9,706 | 340 | 17,846 | 19,329 | ||||||||||||||||
$ | 10,409 | $ | 3,718 | $ | 18,803 | $ | 23,123 | FFO Reconciliation | ||||||||||||
Reconciliation to Income Statement |
||||||||||||||||||||
Gain on Disposition of Real Estate, Net of Tax |
||||||||||||||||||||
Gain (Loss) on Dispositions, Net of Tax |
$ | (31 | ) | $ | 27 | $ | (598 | ) | $ | 529 | ||||||||||
Land Sale Gain (Loss) |
585 | (2,500 | ) | 959 | 4,804 | |||||||||||||||
Gain (Loss) on Dispositions, Net of Tax |
703 | 3,378 | 957 | 3,794 | ||||||||||||||||
$ | 1,257 | $ | 905 | $ | 1,318 | $ | 9,127 | Consolidated Income Statement | ||||||||||||
Gain (Loss) on Disposition of Real Estate From Discontinued
Operations, Net of Tax |
||||||||||||||||||||
Gain (Loss) on Sales from Discontinued
Operations |
$ | 8,377 | $ | (4,061 | ) | $ | 5,775 | $ | (24,027 | ) | (Footnote L to the Press Release) | |||||||||
25
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Joint Venture Transactional Income
(In Thousands)
(In Thousands)
Three Months Ended | Year Ended | |||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||||||
Included in FFO: |
||||||||||||||||||||
Loss on Sales from Discontinued Operations |
$ | (26,058 | ) | $ | 64 | $ | (51,408 | ) | $ | (19,448 | ) | |||||||||
Land Sale Gains and Loss on Disposition of Real
Estate |
| | 17 | (26,816 | )(1) | |||||||||||||||
$ | (26,058 | ) | $ | 64 | $ | (51,391 | ) | $ | (46,264 | ) | ||||||||||
DDRs Proportionate Share (1) |
$ | (2,080 | ) | $ | | $ | (6,216 | ) | $ | (1,429 | ) | |||||||||
NOT Included in FFO: |
||||||||||||||||||||
Gain (Loss) on Dispositions, Net of Tax |
| $ | 843 | | $ | 843 | ||||||||||||||
Gain on Sales from Discontinued Operations |
24,687 | | 24,734 | | ||||||||||||||||
$ | 24,687 | $ | 843 | $ | 24,734 | $ | 843 | |||||||||||||
DDRs Proportionate Share |
$ | 6,997 | $ | 177 | $ | 6,997 | $ | (5,186 | ) | |||||||||||
Reconciliation to Income Statement |
||||||||||||||||||||
Gain on Sales of Real Estate, Net of Tax |
||||||||||||||||||||
Land Sale Gains and Loss on Disposition of Real
Estate |
$ | | $ | | $ | 17 | $ | (26,816 | )(1) | |||||||||||
Gain (Loss) on Dispositions, Net of Tax |
| 843 | | 843 | ||||||||||||||||
$ | | $ | 843 | $ | 17 | $ | (25,973 | ) | Loss on Disposition of Assets | |||||||||||
Gain (Loss) on Disposition of Real Estate From Discontinued Operations,
Net of Tax |
||||||||||||||||||||
Gain (Loss) on Sales from Discontinued Operations |
$ | (1,371 | ) | $ | 64 | $ | (26,674 | ) | $ | (19,448 | ) | Loss on Disposition of Discontinued Operations, Net of Tax | ||||||||
(1) | Included in loss of disposition of assets for the year ended December 31, 2009 is the Companys transfer of its interest in a Coventry II Fund asset. |
26
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Joint Venture Investment Summary (1)
All Values at 100% | ||||||||||||||||||||||||||
(In Millions) | ||||||||||||||||||||||||||
Gross | Total | |||||||||||||||||||||||||
DDR | Number of | Leasable | Annualized | Gross Asset | ||||||||||||||||||||||
Legal Name | Partner(s) | Ownership % | Properties | Area | Rent | Book Value | Debt | |||||||||||||||||||
Unconsolidated Joint Ventures |
||||||||||||||||||||||||||
DDRTC Core Retail Fund, LLC |
An Affiliate of TIAA-CREF | 15 | % | 43 | 11.7 | $ | 135.3 | $ | 2,286.1 | $ | 1,222.7 | |||||||||||||||
DDR Domestic Retail Fund I |
Various Institutional Investors | 20 | % | 63 | 8.3 | 91.9 | 1,472.4 | 965.5 | ||||||||||||||||||
Sonae Sierra Brasil BV Sarl |
Sonae Sierra, SGPS, SA | 47.9 | % | 10 | 3.9 | 113.1 | 670.4 | 109.7 | ||||||||||||||||||
DDRA Community Centers Five, L.P. |
DRA Advisors | 50 | % | 5 | 1.8 | 26.3 | 243.4 | 278.9 | ||||||||||||||||||
Coventry II Joint Ventures |
Coventry II Fund | 10% - 20 | % | 47 | (2) | 5.4 | 55.4 | 854.5 | 638.0 | |||||||||||||||||
RVIP Structures/DPG Realty Holdings
LLC |
Prudential RE Advisors/Prudential Insurance | 10% - 25.75 | % | 4 | 0.7 | 13.9 | 142.0 | 81.0 | ||||||||||||||||||
DDR-SAU Retail Fund, LLC |
Special Account-U, L.P. (State of Utah) | 20 | % | 27 | 2.4 | 23.2 | 304.5 | 183.1 | ||||||||||||||||||
DDR Markaz II LLC |
Kuwait Financial Centre | 20 | % | 13 | 1.6 | 15.5 | 206.3 | 150.5 | ||||||||||||||||||
TRT DDR Venture I General Partnership |
TRT-DDR Joint Venture I Owner LLC | 10 | % | 3 | 0.5 | 9.5 | 160.2 | 110.0 | ||||||||||||||||||
Other Unconsolidated JV Interests |
Various | Various | 22 | 3.0 | 27.9 | 339.3 | 211.4 | |||||||||||||||||||
Total Unconsolidated Joint Ventures |
237 | 39.3 | $ | 512.0 | $ | 6,679.1 | $ | 3,950.8 | ||||||||||||||||||
(1) | DDRs investment in joint ventures may be recorded at different amounts than the proportionate equity on the joint ventures balance sheet. | |
(2) | Includes one asset in which development was suspended. |
27
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Joint Venture Combining Financial Statements
(In Millions)
Combining Balance Sheets
(In Millions)
Combining Balance Sheets
Total Unconsolidated JVs | DDRs Proportionate Share | |||||||||||
Real estate assets |
$ | 6,679.1 | $ | 1,483.6 | ||||||||
Accumulated depreciation |
(726.3 | ) | (184.3 | ) | ||||||||
Real estate, net |
5,952.8 | 1,299.3 | ||||||||||
Receivables, net |
111.5 | 33.1 | ||||||||||
Other assets, net |
314.1 | 89.3 | ||||||||||
Disproportionate share of equity |
| (32.8 | ) | (1) | ||||||||
$ | 6,378.4 | $ | 1,388.9 | |||||||||
Mortgage debt (2) |
$ | 3,950.8 | $ | 835.8 | ||||||||
Amounts payable to DDR |
87.3 | 10.6 | ||||||||||
Other liabilities |
186.7 | 51.7 | ||||||||||
4,224.8 | 898.1 | |||||||||||
Accumulated equity |
2,153.6 | 523.6 | ||||||||||
Disproportionate share of equity |
| (32.8 | ) | (1) | ||||||||
$ | 6,378.4 | $ | 1,388.9 | |||||||||
Combining Statements of Operations
Total Unconsolidated JVs | DDRs Proportionate Share | |||||||||||
Year Ended | Three-Month Period | Three-Month Period | ||||||||||
December 31, 2010 | Ended December 31, 2010 | Ended December 31, 2010 | ||||||||||
Revenues from operations |
$ | 668.9 | $ | 171.8 | $ | 44.7 | ||||||
Rental operation expenses |
(256.3 | ) | (61.3 | ) | (14.2 | ) | ||||||
Impairment charges |
(12.3 | ) | (1.3 | ) | (0.2 | ) | ||||||
Net operating income |
400.3 | 109.2 | 30.3 | |||||||||
Depreciation and amortization expense |
(187.9 | ) | (47.7 | ) | (10.2 | ) | ||||||
Interest expense |
(230.6 | ) | (59.3 | ) | (11.5 | ) | ||||||
(Loss) income before
gain on sale of real
estate |
(18.2 | ) | 2.2 | 8.6 | ||||||||
Income tax expense |
(20.4 | ) | (6.5 | ) | (3.3 | ) | ||||||
Discontinued operations |
(9.7 | ) | 0.2 | | ||||||||
Loss on disposition of discontinued operations |
(26.7 | ) | (1.4 | ) | 1.3 | |||||||
Gain (loss) on sale of real estate |
| | | |||||||||
Disproportionate share of income |
| | 4.1 | (1) | ||||||||
Net (loss) income |
$ | (75.0 | ) | $ | (5.5 | ) | $ | 10.7 | ||||
DDR ownership interests |
$ | 6.3 | $ | 10.7 | $ | 10.7 | ||||||
Amortization of basis differential |
(0.7 | ) | (1.2 | ) | | |||||||
$ | 5.6 | $ | 9.5 | $ | 10.7 | |||||||
Funds From Operations |
||||||||||||
Net (loss) income |
$ | (75.0 | ) | $ | (5.5 | ) | $ | 10.7 | ||||
Depreciation of real property |
198.3 | 48.5 | 9.8 | |||||||||
Gain on sale of real estate |
(24.7 | ) | (24.7 | ) | (5.2 | ) | ||||||
Disproportionate share of income |
| | (0.1 | )(1) | ||||||||
$ | 98.6 | $ | 18.3 | $ | 15.2 | |||||||
DDR ownership interests |
$ | 47.5 | $ | 15.2 | ||||||||
(1) | Adjustments represent the effect of promoted equity structures and minority interests. | |
(2) | Includes approximately $308.5 million of non recourse debt of which the Companys proportionate share is $52.7 million associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income. |
28
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Property Acquisitions
There were no third party acquisitions for the year ended December 31, 2010.
Property Dispositions
(In Thousands) | (In Millions) | |||||||||||||||||||||
DDRs | ||||||||||||||||||||||
Disposition | Effective | Total | Gross | |||||||||||||||||||
Date | Location | Property Name | Ownership | Joint Venture | GLA | Sales Price | Relinquished Debt | |||||||||||||||
01/10 |
Carson City, NV | Former Mervyns | 50 | % | MDT MV | 60.5 | $ | 4.0 | $ | 4.0 | ||||||||||||
01/10 |
Lynchburg, VA | Candlers Station | 100 | % | | 270.8 | 16.2 | | ||||||||||||||
01/10 |
Tampa, FL | Town N Country Promenade | 100 | % | | 134.5 | 7.8 | | ||||||||||||||
02/10 |
Covington, LA | Covington Corners | 100 | % | | 15.6 | 2.4 | | ||||||||||||||
03/10 |
Detroit, MI | Bel-Air Centre | 100 | % | | 445.3 | 0.6 | | ||||||||||||||
03/10 |
Various | Portfolio of 16 assets | 15 | % | DDRTC Core | 3,588.7 | 424.3 | 386.4 | ||||||||||||||
04/10 |
Macon, GA | Former Kmart | 100 | % | | 102.1 | 1.5 | | ||||||||||||||
04/10 |
Baton Rouge, LA | Former Service Merchandise | 20 | % | Coventry II | 90.0 | 1.3 | 1.7 | ||||||||||||||
04/10 |
Burbank, IL | Former Service Merchandise | 20 | % | Coventry II | 27.2 | 0.2 | 1.0 | ||||||||||||||
05/10 |
Lexington, KY | South Farm Marketplace | 100 | % | | 17.8 | 2.3 | | ||||||||||||||
05/10 |
Niagara Falls, NY | Regal Cinemas | 100 | % | | 43.2 | 5.6 | | ||||||||||||||
06/10 |
Various | Portfolio of six assets | 10 | % | Prudential | 703.2 | 42.6 | 4.6 | ||||||||||||||
06/10 |
San Diego, CA | Former Mervyns | 50 | % | MDT MV | 75.2 | 7.0 | 7.0 | ||||||||||||||
06/10 |
Fairfield, CA | Former Mervyns | 50 | % | MDT MV | 89.2 | 7.0 | 7.0 | ||||||||||||||
06/10 |
W. Covina, CA | Former Mervyns | 50 | % | MDT MV | 79.8 | 9.0 | 9.0 | ||||||||||||||
06/10 |
Dansville, NY | Tops Plaza | 100 | % | | 74.0 | 4.7 | | ||||||||||||||
07/10 |
Salt Lake City, UT | Family Place at 3300 South | 100 | % | | 34.2 | 1.5 | | ||||||||||||||
07/10 |
El Cajon, CA | Former Mervyns | 50 | % | MDT MV | 85.7 | 3.0 | 3.0 | ||||||||||||||
07/10 |
Schertz, TX | Undeveloped Land | 100 | % | | | 7.9 | | ||||||||||||||
08/10 |
Various | Portfolio of five assets | 100 | % | | 59.0 | 12.7 | | ||||||||||||||
08/10 |
Steubenville, OH | Lowes | 100 | % | | 130.5 | 9.4 | | ||||||||||||||
08/10 |
Berlin, VT | Berlin Mall | 100 | % | | 174.6 | 13.7 | | ||||||||||||||
08/10 |
Lancaster, CA | Valley Central | 21 | % | Prudential | 370.9 | 27.2 | 17.4 | ||||||||||||||
08/10 |
Las Vegas, NV | Former Mervyns | 50 | % | MDT MV | 75.7 | 5.6 | 5.6 | ||||||||||||||
08/10 |
Union City, GA | Shannon Square | 100 | % | | 100.0 | 3.1 | | ||||||||||||||
10/10 |
High Ridge, MO | Gravois Village Plaza | 100 | % | | 115.0 | 2.6 | | ||||||||||||||
10/10 |
Marietta, GA | Former Blockbuster | 20 | % | SAU | 6.5 | 1.3 | 1.0 | ||||||||||||||
10/10 |
Hendersonville, TN | Exxon Outparcel | 100 | % | | 4.1 | 1.5 | | ||||||||||||||
10/10 |
Dickinson, ND | Prairie Hills Mall | 100 | % | | 267.5 | 7.3 | | ||||||||||||||
11/10 |
Southern Pines, NC | Southern Pines Marketplace | 15 | % | DDRTC Core | 57.4 | 4.6 | 2.7 | ||||||||||||||
11/10 |
Fort Worth, TX | Former CVS | 100 | % | | 9.5 | 1.2 | | ||||||||||||||
11/10 |
Columbia, SC | Target Center | 15 | % | DDRTC Core | 83.4 | 2.0 | 1.9 | ||||||||||||||
11/10 |
Pleasant Hill, CA | Downtown Pleasant Hill | 21 | % | Prudential | 345.7 | 81.0 | 48.8 | ||||||||||||||
11/10 |
Conway, SC | Gateway Plaza | 100 | % | | 62.4 | 3.9 | | ||||||||||||||
12/10 |
Culver City, CA | Sprouts Farmers Market | 100 | % | | 32.9 | 11.8 | | ||||||||||||||
12/10 |
Phoenix, AZ | Silver Creek Plaza | 50 | % | MDT MV | 76.0 | 6.5 | 6.5 | ||||||||||||||
12/10 |
Lebanon, OH | Countryside Place | 100 | % | | 17.0 | 0.2 | | ||||||||||||||
12/10 |
Lansing, Il | Former Service Merchandise | 20 | % | Coventry II | 51.2 | 2.0 | 2.6 | ||||||||||||||
12/10 |
Columbia, TN | Columbia Square | 10 | % | Prudential | 68.9 | 4.2 | | ||||||||||||||
12/10 |
Various | Porfolio of three assets | 15 | % | DDRTC Core | 264.6 | 21.3 | 2.2 | ||||||||||||||
12/10 |
Anderson, SC | North Hill Commons | 15 | % | DDRTC Core | 43.1 | 3.8 | | ||||||||||||||
12/10 |
Rowlett, TX | Rowlett Plaza | 100 | % | | 63.1 | 0.9 | | ||||||||||||||
12/10 |
Watertown, SD | Watertown Mall | 100 | % | | 240.3 | 6.1 | | ||||||||||||||
Various |
Various | Outparcels | 100 | % | | | 8.5 | | ||||||||||||||
Total Dispositions |
8,656.3 | $ | 791.3 | $ | 512.4 | |||||||||||||||||
29
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
($ in millions, GLA in thousands)
Summary of Wholly-Owned and Consolidated Land Held for Development and Construction in
Progress
As of December 31, 2010 | 2010 Activity | Projected 2011 Activity | ||||||||||||||||||||||||||
Net | Placed | Net | To Be Placed | |||||||||||||||||||||||||
Land | CIP | Total | Expenditures(1) | In Service | Expenditures (1) | In Service | ||||||||||||||||||||||
Ground up Development Projects in Progress |
$ | 39.0 | $ | 64.5 | $ | 103.5 | $ | 16.2 | $ | 30.4 | $ | 8.6 | $ | 38.2 | ||||||||||||||
Ground up Development Projects Primarily on Hold |
362.1 | 175.4 | 537.5 | (5.2 | ) | 3.0 | (72.1 | ) | | |||||||||||||||||||
Substantially Completed Projects Pending Lease up |
30.1 | 28.4 | 58.5 | 11.6 | 30.6 | 4.7 | 27.8 | |||||||||||||||||||||
Expansion, Redevelopment, and Retenanting Projects |
1.5 | 42.2 | 43.7 | 80.1 | 87.1 | 80.4 | 76.5 | |||||||||||||||||||||
Total |
$ | 432.7 | $ | 310.5 | $ | 743.2 | $ | 102.7 | $ | 151.1 | $ | 21.6 | $ | 142.5 | ||||||||||||||
Summary of Significant Wholly-Owned and Consolidated Development Projects in Progress
Cost | Assets | Initial | ||||||||||||||||||||||||||||||
Total | Owned | Estimated | Incurred | Placed in | Anchor | |||||||||||||||||||||||||||
Location | Project Name | GLA | GLA | Net Cost(2) | To Date | Service | Opening | Major Anchors | ||||||||||||||||||||||||
Boise (Nampa), ID |
Nampa Gateway Center | 830.9 | 419.3 | $ | 126.7 | $ | 127.0 | $ | 70.3 | 2H 07 | JC Penney, Macys, The Sports Authority, Idaho Athletic Club, Regal Cinemas |
|||||||||||||||||||||
Austin (Kyle), TX (3) |
Kyle Marketplace | 805.6 | 443.1 | 77.3 | 61.1 | 14.3 | 2H 09 | Target, Kohls | ||||||||||||||||||||||||
1,636.5 | 862.4 | $ | 204.0 | $ | 188.1 | $ | 84.6 | |||||||||||||||||||||||||
Total Land Held for Development
and CIP for ground up development
projects in progress
at December 31, 2010: |
$ | 103.5 | ||||||||||||||||||||||||||||||
Summary of Significant Wholly-Owned and Consolidated Expansion, Redevelopment, and
Retenanting Projects
Cost | Assets | Initial | ||||||||||||||||||||||||||||||
Total | Owned | Estimated | Incurred | Placed in | Anchor | |||||||||||||||||||||||||||
Location | Project Name | GLA | GLA | Net Cost (2) | To Date | Service | Opening | Major Anchors | ||||||||||||||||||||||||
Miami (Plantation), FL |
The Fountains | 273.4 | 273.4 | $ | 51.4 | $ | 44.0 | $ | 29.2 | 2H 09 | Kohls, Dicks Sporting Goods, Marshalls/HomeGoods | |||||||||||||||||||||
CIP for Plantation, FL: |
$ | 14.8 | ||||||||||||||||||||||||||||||
CIP for other
expansion, redevelopment,
and retenanting projects: |
28.9 | |||||||||||||||||||||||||||||||
Total amount included in
CIP at December 31, 2010
for expansion,
redevelopment, and
retenanting projects: |
$ | 43.7 | ||||||||||||||||||||||||||||||
(1) | Net expenditures include receipts from land sales and reimbursements. | |
(2) | Estimated Net Cost includes reductions for land sales and reimbursements. | |
(3) | Consolidated 50% Joint Venture |
30
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
($ in millions, GLA in thousands)
Summary of Joint Venture Land Held for Development and Construction in Progress
As of December 31, 2010 | 2010 Activity | Projected 2011 Activity | ||||||||||||||||||||||||||
Net | Placed | Net | To Be Placed | |||||||||||||||||||||||||
Land | CIP | Total | Expenditures (1) | In Service | Expenditures (1) | In Service | ||||||||||||||||||||||
Ground up Development Projects in Progress |
$ | 13.0 | $ | 47.3 | $ | 60.3 | $ | 34.0 | $ | | $ | 107.7 | $ | 111.4 | ||||||||||||||
Land Held for Development |
20.0 | 7.9 | 27.9 | 2.1 | | 41.3 | | |||||||||||||||||||||
Ground up Development Projects Primarily on Hold |
23.3 | 2.0 | 25.3 | 0.4 | | 1.1 | | |||||||||||||||||||||
Substantially Completed Projects Pending Lease up |
2.1 | 37.0 | 39.1 | 16.8 | 28.5 | 7.0 | 22.9 | |||||||||||||||||||||
Expansion, Redevelopment, and Retenanting Projects |
| 21.6 | 21.6 | 44.2 | 28.8 | 81.7 | 70.7 | |||||||||||||||||||||
Total |
$ | 58.4 | $ | 115.8 | $ | 174.2 | $ | 97.5 | $ | 57.3 | $ | 238.8 | $ | 205.0 | ||||||||||||||
Summary of Significant Joint Venture Development Projects in Progress
DDRs | Cost | Assets | Initial | ||||||||||||||||||||||||||||||||||
Effective | Total | Owned | Estimated | Incurred | Placed in | Anchor | |||||||||||||||||||||||||||||||
Location | Project Name | Ownership | GLA | GLA | Net Cost (2) | To Date | Service | Opening | Major Anchors | ||||||||||||||||||||||||||||
Uberlandia, Brazil |
Patio Uberlandia | 47.8 | % | 469.8 | 469.8 | $ | 101.5 | $ | 46.2 | $ | | | Walmart, Cinemark, Centuaro, Leroy Merlin, | ||||||||||||||||||||||||
Renner,Magic Games, Fast Shop, Luiggi | |||||||||||||||||||||||||||||||||||||
Bertolli, Kalunga | |||||||||||||||||||||||||||||||||||||
Londrina, Brazil |
Boulevard Londrina | 40.4 | % | 514.9 | 514.9 | 127.0 | 14.1 | | | Walmart, Cinemark, Centuaro, Etna, Magazine | |||||||||||||||||||||||||||
Luiza, Kalunga, Luiggi Bertolli | |||||||||||||||||||||||||||||||||||||
984.7 | 984.7 | $ | 228.5 | $ | 60.3 | | |||||||||||||||||||||||||||||||
Total Land
Held for
Development
and
CIP
for ground
up
development
projects in
progress at
December 31, 2010: |
$ | 60.3 | |||||||||||||||||||||||||||||||||||
Summary of Significant Joint Venture Expansion, Redevelopment and
Retenanting Projects
DDRs | Estimated | Cost | Assets | Initial | ||||||||||||||||||||||||||||||||
Effective | Total | Owned | Net Cost | Incurred | Placed in | Anchor | ||||||||||||||||||||||||||||||
Location | Project Name | Ownership | GLA | GLA | (2) | To Date | Service | Opening | Major Anchors | |||||||||||||||||||||||||||
Casselberry, FL |
Casselberry Commons | 20.0 | % | 90.4 | 90.4 | $ | 8.7 | $ | 6.1 | $ | 4.8 | 2H 10 | Publix Supermarket, TJ Maxx | |||||||||||||||||||||||
Sao Bernardo do Campo, Brazil |
Metropole Shopping Center | 47.8 | % | 93.7 | 93.7 | 26.3 | 6.9 | | 2H 11 | Etna, Fast Shop, PlayArte, Outback, Lojas Americanas, Renner |
||||||||||||||||||||||||||
Campinas, Brazil |
Parque Dom Pedro Shopping Center | 37.3 | % | 58.7 | 58.7 | 12.0 | 10.3 | 10.3 | 2H 10 | Fast Shop, Luiggi Bertolli, Siberian, Crawford, Nike, Adidas | ||||||||||||||||||||||||||
242.8 | 242.8 | $ | 47.0 | $ | 23.3 | $ | 15.1 | |||||||||||||||||||||||||||||
CIP for projects
listed above: |
$ | 8.2 | ||||||||||||||||||||||||||||||||||
CIP for other
expansion, redevelopment,
and retenanting projects: |
13.4 | |||||||||||||||||||||||||||||||||||
Total amount included
in CIP at December 31,
2010 for expansion,
redevelopment, and
retenanting
projects: |
$ | 21.6 | ||||||||||||||||||||||||||||||||||
(1) | Net expenditures include receipts from land sales and reimbursements. | |
(2) | Estimated Net Cost includes reductions for land sales and reimbursements. |
31
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Ground up Development Projects Primarily on Hold
DDRs | ||||||||
Effective | Total | |||||||
MSA (Location) | Ownership | Acreage | ||||||
Ukiah (Mendocino), CA |
50 | % | 75.7 | |||||
New Haven (Guilford), CT |
100 | % | 26.0 | |||||
Orlando (Lee Vista), FL |
100 | % | 74.3 | |||||
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 | |||||
Oconomowoc, WI |
50 | % | 121.6 | |||||
Isabela, Puerto Rico |
80 | % | 11.1 | |||||
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 (9 sites) |
100 | % | Various | |||||
1,007.6 | ||||||||
(In Millions) | ||||
Total amount for wholly-owned and consolidated projects included in Land Held for
Development and CIP at December 31, 2010: |
$ | 537.5 | (1) | |
Total amount for joint venture projects included in Land Held for Development and CIP
at December 31, 2010: |
25.3 | (2) | ||
Total Land Held for Development and CIP at December 31, 2010: |
$ | 562.8 | ||
(1) Includes
partners ownership interest of $122.3 million and minority interest
of $27.3 million.
(2) DDRs prorata share is $12.7 million.
32
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Total Portfolio Characteristics
Shopping Centers and Interests in Retail Assets |
571 | |||
Business Centers |
6 | |||
Million Square Feet Owned and Managed (Total) |
132 | |||
Million Square Feet Owned (Total) |
92 | |||
Million Square Feet Owned (Pro Rata) |
58 | |||
Core Portfolio % Leased |
92.3 | % | ||
Core Portfolio % Leased including Brazil |
92.6 | % |
Prime Portfolio Characteristics
Our Prime portfolio is comprised of market dominant shopping centers with high quality tenants located
in attractive markets with strong demographic profiles. It is a subset of the total portfolio.
Shopping Centers |
260 | |||
Million Square Feet (Total) |
80 | |||
% of Total Portfolio NOI |
83.3 | % | ||
Prime Portfolio % Leased |
93.6 | % | ||
Prime Portfolio % Leased including Brazil |
93.8 | % |
Total Portfolio GLA Concentration
GLA | Percentage of | |||||||||||
(in Millions) | Total GLA | |||||||||||
1. | Georgia |
13.6 | 10.3 | % | ||||||||
2. | Florida |
12.5 | 9.5 | % | ||||||||
3. | Ohio |
9.2 | 7.0 | % | ||||||||
4. | New York |
8.9 | 6.8 | % | ||||||||
5. | North Carolina |
7.8 | 6.0 | % | ||||||||
6. | Texas |
6.5 | 4.9 | % | ||||||||
7. | New Jersey |
5.7 | 4.3 | % | ||||||||
8. | Puerto Rico |
5.0 | 3.8 | % | ||||||||
9. | Brazil |
4.6 | 3.5 | % | ||||||||
10. | South Carolina |
4.5 | 3.4 | % |
33
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Sonae Sierra Brasil (SSB) Portfolio Characteristics
Sonae Sierra Brasil is a fully integrated owner, manager, and developer of shopping centers
throughout Brazil. The joint venture was established between SSB and DDR in 2007. DDRs
ownership of SSB as of 12/31/10 was 47.9%.
Shopping Centers (Development Sites) |
10 | (3) | ||
Million Square Feet Owned and Managed (Total) |
3.9 | |||
Million Square Feet Owned (Total) |
3.8 | |||
Million Square Feet Potential Development |
1.8 | |||
Total Annualized Rent (in millions) |
$ | 105.6 | ||
Average Rent Per Square Foot |
$ | 27.25 | ||
Portfolio % Leased |
97.4 | % | ||
Note: information translated utililzing average exchange rates for respective periods.
Puerto Rico Portfolio Characteristics
Shopping Centers |
15 | |||
Million Square Feet Owned and Managed (Total) |
5.0 | |||
Million Square Feet Owned (Total) |
4.1 | |||
Total Annualized Rent (in millions) |
$ | 80.2 | ||
Average Rent Per Square Foot |
$ | 16.15 | ||
Portfolio % Leased |
97.0 | % |
Trailing 12 Months NOI (DDR Share)
34
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Leased Rate and Average Annualized Base Rental Rates PSF(1)
Number of | Core | Total Annualized Base Rent / S.F. | ||||||||||||||
Period Ending | Properties | Leased Rate | Total | Shop Space | ||||||||||||
YE 2010
|
476 | 92.3 | % | $ | 12.46 | $ | 18.45 | |||||||||
YE 2009
|
534 | 91.2 | % | $ | 12.27 | $ | 18.26 | |||||||||
YE 2008
|
611 | 92.6 | % | $ | 12.34 | $ | 18.24 | |||||||||
YE 2007
|
619 | 95.8 | % | $ | 12.22 | $ | 17.92 | |||||||||
YE 2006
|
370 | 96.2 | % | $ | 11.57 | $ | 17.20 | |||||||||
YE 2005
|
379 | 96.3 | % | $ | 11.30 | $ | 16.63 | |||||||||
YE 2004
|
373 | 95.4 | % | $ | 11.13 | $ | 16.14 | |||||||||
YE 2003
|
274 | 95.1 | % | $ | 10.82 | $ | 15.55 | |||||||||
YE 2002
|
189 | 95.9 | % | $ | 10.58 | $ | 15.18 | |||||||||
YE 2001
|
192 | 95.4 | % | $ | 10.03 | $ | 14.02 | |||||||||
YE 2000
|
190 | 96.9 | % | $ | 9.66 | $ | 13.66 | |||||||||
YE 1999
|
186 | 95.7 | % | $ | 9.20 | $ | 12.69 | |||||||||
YE 1998
|
159 | 96.5 | % | $ | 8.99 | $ | 12.39 | |||||||||
YE 1997
|
123 | 96.1 | % | $ | 8.49 | $ | 11.69 | |||||||||
YE 1996
|
112 | 94.8 | % | $ | 7.85 | $ | 10.87 | |||||||||
YE 1995
|
106 | 96.3 | % | $ | 7.60 | $ | 10.54 | |||||||||
YE 1994
|
84 | 97.1 | % | $ | 5.89 | $ | 9.02 | |||||||||
YE 1993
|
69 | 96.2 | % | $ | 5.60 | $ | 8.56 | |||||||||
YE 1992
|
53 | 95.4 | % | $ | 5.37 | $ | 8.37 |
(1) | Figures exclude Brazil, Mervyns, Service Merchandise, development properties and managed but unowned properties. |
35
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
(GLA and Total Rent in Thousands)
Leasing spreads are calculated by comparing the prior tenants annual base rent in the final
year of the lease to the new tenants annual base rent in the first year of the new lease. The
calculation only includes deals that were executed within one year of the date that the prior
tenant vacated.
Leasing Summary for Fourth Quarter 2010 (1)
Change in | ||||||||||||||||||||||||||||||||||||
Base Rent | Weighted | |||||||||||||||||||||||||||||||||||
Number | New Rent | Over Prior | Average | Tenant | ||||||||||||||||||||||||||||||||
of | Year One | New Rent Year | Prior Rent | Rent in Comp | Lease Term | Improvements | ||||||||||||||||||||||||||||||
Leases | GLA | psf | One Total | psf | Prior Rent Total | Space | (in years) | psf | ||||||||||||||||||||||||||||
New leases |
||||||||||||||||||||||||||||||||||||
New leases for spaces vacant
less than one year |
57 | 161 | $ | 19.21 | $ | 3,093 | $ | 17.96 | $ | 2,892 | 6.5 | % | 6.2 | $ | 13.13 | |||||||||||||||||||||
New leases for spaces vacant
more than one year |
93 | 564 | $ | 11.09 | $ | 6,255 | N/A | N/A | N/A | 7.7 | $ | 18.44 | ||||||||||||||||||||||||
Total new leases |
150 | 725 | $ | 12.89 | $ | 9,348 | $ | 17.96 | $ | 2,892 | 6.5 | % | 7.4 | $ | 17.26 | |||||||||||||||||||||
Renewals |
220 | 1,490 | $ | 13.75 | $ | 20,488 | $ | 13.32 | $ | 19,847 | 3.1 | % | 4.6 | | ||||||||||||||||||||||
Total / Average (new leases + renewals) |
370 | 2,215 | $ | 14.28 | $ | 29,835 | $ | 13.77 | $ | 22,738 | 3.5 | % | 5.5 | $ | 5.65 |
(1) | Excludes 11 new leases aggregating 252,000 square feet and 15 renewals aggregating 85,000 square feet signed on behalf of managed but unowned properties. |
Leasing Summary for Full Year 2010 (2)
Change in | ||||||||||||||||||||||||||||||||||||
Base Rent | Weighted | |||||||||||||||||||||||||||||||||||
Number | New Rent | Over Prior | Average | Tenant | ||||||||||||||||||||||||||||||||
of | Year One | New Rent Year | Prior Rent | Rent in Comp | Lease Term | Improvements | ||||||||||||||||||||||||||||||
Leases | GLA | psf | One Total | psf | Prior Rent Total | Space | (in years) | psf | ||||||||||||||||||||||||||||
New leases |
||||||||||||||||||||||||||||||||||||
New leases for spaces vacant
less than one year |
260 | 982 | $ | 16.57 | $ | 16,276 | $ | 16.13 | $ | 15,844 | 2.6 | % | 8.1 | $ | 16.24 | |||||||||||||||||||||
New leases for spaces vacant
more than one year |
425 | 2,663 | $ | 11.71 | $ | 31,186 | N/A | N/A | N/A | 8.0 | $ | 10.54 | ||||||||||||||||||||||||
Total new leases |
685 | 3,645 | $ | 13.02 | $ | 47,461 | $ | 16.13 | $ | 15,844 | 2.6 | % | 8.0 | $ | 12.27 | |||||||||||||||||||||
Renewals |
965 | 5,687 | $ | 13.35 | $ | 75,937 | $ | 13.06 | $ | 74,268 | 2.4 | % | 4.3 | | ||||||||||||||||||||||
Total / Average (new leases + renewals) |
1,650 | 9,332 | $ | 13.83 | $ | 123,398 | $ | 13.51 | $ | 90,111 | 2.4 | % | 5.9 | $ | 4.72 |
(2) | Excludes 103 new leases aggregating 1.2 million square feet and 87 renewals aggregating 1.0 million square feet signed on behalf of managed but unowned properties. |
Figures exclude Brazil, Mervyns and managed but unowned properties.
Weighted Average Lease Term excludes renewal options.
36
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Leasing Summary of Formerly Vacant Spaces Over 20,000 Square Feet
(1)
Lease term | ||||||||
GLA | (years) | |||||||
Leased in 2008 |
110,141 | 8.2 | ||||||
Leased in 2009 |
1,334,436 | 9.4 | ||||||
Leased Q1 2010 |
280,125 | 9.5 | ||||||
Leased Q2 2010 |
470,228 | 8.2 | ||||||
Leased Q3 2010 |
397,474 | 11.1 | ||||||
Leased Q4 2010 |
301,899 | 8.7 | ||||||
Total
Leased 2008 Q4 2010 |
2,894,303 | 9.3 |
Status of Re-Tenanting Spaces Formerly Occupied by Bankrupt Tenants (1)
December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | December 31, 2010 | ||||||||||||||||
Sold/Leased |
24 | % | 30 | % | 38 | % | 43 | % | 49 | % | ||||||||||
At-Lease |
2 | % | 3 | % | 7 | % | 11 | % | 9 | % | ||||||||||
At-LOI |
34 | % | 30 | % | 29 | % | 21 | % | 22 | % | ||||||||||
Total Activity |
60 | % | 63 | % | 74 | % | 75 | % | 80 | % |
(1) | Includes Linens N Things, Circuit City, Goodys and Steve & Barrys; excludes Mervyns |
37
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Net effective rents are calculated with full consideration for all costs associated with
leasing the space rather than prorata costs. Landlord work represents property level improvements
associated with the lease transactions; however, those improvements are attributed to the
landlords property value and typically extend the life of the asset in excess of the lease term.
Net Effective Rents Related to Leased Space (Owned Properties)
Three Months | ||||||||
Ended | YTD Total / | |||||||
12/31/2010 | Average | |||||||
Number of lease transactions executed |
370 | 1,650 | ||||||
Rentable square footage leased (in thousands) |
2,215 | 9,332 | ||||||
Square footage of renewal deals (in thousands) |
1,490 | 5,687 | ||||||
Square footage of new deals (in thousands) |
725 | 3,645 | ||||||
Renewed square footage (% of total) |
67.3 | % | 60.9 | % | ||||
New leases square footage (% of total) |
32.7 | % | 39.1 | % | ||||
New Deals: |
||||||||
Weighted average per rentable square foot over the lease term: |
||||||||
Base rent |
$ | 13.67 | $ | 13.23 | ||||
Tenant allowance |
(1.94 | ) | (1.47 | ) | ||||
Landlord work |
(0.90 | ) | (0.89 | ) | ||||
Third party leasing commissions |
(0.29 | ) | (0.24 | ) | ||||
Rent concessions |
| | ||||||
Equivalent net effective rent |
$ | 10.54 | $ | 10.62 | ||||
Weighted average term in years |
7.4 | 8.0 | ||||||
Renewal Deals: |
||||||||
Weighted average per rentable square foot over the lease term: |
||||||||
Base rent |
$ | 13.89 | $ | 13.46 | ||||
Tenant allowance |
| | ||||||
Landlord work |
| | ||||||
Third party leasing commissions |
| | ||||||
Rent concessions |
| | ||||||
Equivalent net effective rent |
$ | 13.89 | $ | 13.46 | ||||
Weighted average term in years |
4.6 | 4.3 |
38
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Lease Expirations by Year as of December 31, 2010
(1)
Anchor Base Rent(2) | Shop Space Base Rent | ||||||||||||||||||||||||||||||||
Revenues | % of Total | Revenues | % of Total | ||||||||||||||||||||||||||||||
Year | Leases | ($M) | Avg. PSF | Revenue | Leases | ($M) | Avg. PSF | Revenue | |||||||||||||||||||||||||
2011 |
77 | $ | 23.9 | $ | 8.82 | 2.7 | % | 1,238 | $ | 68.3 | $ | 18.42 | 7.7 | % | |||||||||||||||||||
2012 |
117 | $ | 42.4 | $ | 8.55 | 4.8 | % | 1,198 | $ | 74.0 | $ | 18.58 | 8.3 | % | |||||||||||||||||||
2013 |
105 | $ | 35.3 | $ | 8.47 | 4.0 | % | 1,078 | $ | 68.2 | $ | 18.40 | 7.7 | % | |||||||||||||||||||
2014 |
140 | $ | 50.9 | $ | 8.58 | 5.7 | % | 800 | $ | 51.8 | $ | 18.40 | 5.8 | % | |||||||||||||||||||
2015 |
126 | $ | 49.1 | $ | 9.25 | 5.5 | % | 743 | $ | 49.4 | $ | 17.26 | 5.6 | % | |||||||||||||||||||
2016 |
105 | $ | 42.8 | $ | 9.49 | 4.8 | % | 328 | $ | 32.8 | $ | 17.73 | 3.7 | % | |||||||||||||||||||
2016 |
66 | $ | 33.5 | $ | 9.75 | 3.8 | % | 160 | $ | 17.4 | $ | 20.18 | 2.0 | % | |||||||||||||||||||
2017 |
59 | $ | 26.0 | $ | 9.07 | 2.9 | % | 196 | $ | 21.7 | $ | 19.98 | 2.4 | % | |||||||||||||||||||
2018 |
61 | $ | 32.3 | $ | 10.37 | 3.6 | % | 140 | $ | 17.7 | $ | 18.92 | 2.0 | % | |||||||||||||||||||
2019 |
46 | $ | 21.4 | $ | 9.56 | 2.4 | % | 159 | $ | 17.6 | $ | 16.65 | 2.0 | % | |||||||||||||||||||
2011 - 2020 Subtotal |
902 | $ | 357.6 | $ | 9.19 | 40.3 | % | 6,040 | $ | 418.9 | $ | 18.45 | 47.2 | % | |||||||||||||||||||
Total Rent Roll |
1,025 | $ | 438.3 | $ | 9.28 | 49.4 | % | 6,427 | $ | 449.8 | $ | 18.44 | 50.6 | % |
(1) | Excludes Brazil | |
(2) | Anchors are defined as 20,000 and above |
39
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Largest Tenants by Owned and Managed GLA (1)
Total GLA | Owned GLA | Unowned | Unowned | |||||||||||||||||||||||
Total Units | (msf) | Owned Units | (msf) | Units | GLA (msf) | |||||||||||||||||||||
1. | Walmart / Sams Club |
79 | 12.4 | 33 | 4.9 | 46 | 7.5 | |||||||||||||||||||
2. | Target |
51 | 6.4 | 7 | 0.9 | 44 | 5.5 | |||||||||||||||||||
3. | Lowes Home Improvement |
28 | 3.8 | 12 | 1.6 | 16 | 2.2 | |||||||||||||||||||
4. | Home Depot |
33 | 3.7 | 8 | 0.9 | 25 | 2.8 | |||||||||||||||||||
5. | Kohls |
36 | 3.2 | 29 | 2.6 | 7 | 0.6 | |||||||||||||||||||
6. | Kmart / Sears |
32 | 2.8 | 31 | 2.6 | 1 | 0.2 | |||||||||||||||||||
7. | Publix Supermarkets |
50 | 2.3 | 47 | 2.1 | 3 | 0.2 | |||||||||||||||||||
8. | TJX Companies |
77 | 2.4 | 77 | 2.4 | 0 | 0.0 | |||||||||||||||||||
9. | Kroger |
35 | 2.0 | 34 | 1.9 | 1 | 0.1 | |||||||||||||||||||
10. | PetSmart |
75 | 1.6 | 75 | 1.6 | 0 | 0.0 |
(1) | Based on 100% ownership of all properties. |
40
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
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/Moodys) | Major Tenant (units) | Rev. ($M) | Base Rent | (S&P/Moodys) | ||||||||||||||||||||
1. |
Walmart / Sams Club (33) | 4.1 | 6.9 | % | AA / Aa2 | 1. | Walmart / Sams Club (33) | $ | 26.3 | 4.1 | % | AA / Aa2 | |||||||||||||||
2. |
Kmart / Sears (31) | 1.6 | 2.7 | % | BB- / Ba2 | 2. | TJX Companies (77) | $ | 13.9 | 2.2 | % | A / A3 | |||||||||||||||
3. |
TJX Companies (77) | 1.6 | 2.6 | % | A / A3 | 3. | PetSmart (75) | $ | 12.2 | 1.9 | % | BB / NR | |||||||||||||||
4. |
Lowes Home Improvement (12) | 1.5 | 2.5 | % | A / A1 | 4. | Bed Bath & Beyond (55) | $ | 11.8 | 1.8 | % | BBB / NR | |||||||||||||||
5. |
Kohls (29) | 1.4 | 2.4 | % | BBB+ / Baa1 | 5. | Kohls (29) | $ | 9.9 | 1.6 | % | BBB+ / Baa1 | |||||||||||||||
6. |
Bed Bath & Beyond (55) | 1.0 | 1.7 | % | BBB / NR | 6. | Michaels (61) | $ | 9.9 | 1.5 | % | B- / B3 | |||||||||||||||
7. |
PetSmart (75) | 0.9 | 1.6 | % | BB / NR | 7. | Lowes Home Improvement (12) | $ | 9.1 | 1.4 | % | A / A1 | |||||||||||||||
8. |
Target (7) | 0.9 | 1.5 | % | A+ / A2 | 8. | Rite Aid (35) | $ | 8.4 | 1.3 | % | B- / Caa2 | |||||||||||||||
9. |
Kroger (34) | 0.8 | 1.4 | % | BBB / Baa2 | 9. | GAP / Banana Republic / Old Navy (47) | $ | 8.0 | 1.2 | % | BB+ / NR | |||||||||||||||
10. |
Michaels (61) | 0.8 | 1.4 | % | B- / B3 | 10. | OfficeMax (41) | $ | 7.9 | 1.2 | % | B / B2 | |||||||||||||||
11. |
J.C. Penney (17) | 0.8 | 1.4 | % | BB+ / Ba1 | 11. | Dicks Sporting Goods (34) | $ | 7.9 | 1.2 | % | NR / NR | |||||||||||||||
12. |
Home Depot (8) | 0.8 | 1.4 | % | BBB+ / Baa1 | 12. | Ross Stores (46) | $ | 7.4 | 1.2 | % | BBB / NR | |||||||||||||||
13. |
Toys R Us (28) | 0.7 | 1.2 | % | NR / B1 | 13. | Best Buy (23) | $ | 7.3 | 1.1 | % | BBB- / Baa2 | |||||||||||||||
14. |
Dicks Sporting Goods (34) | 0.7 | 1.2 | % | NR / NR | 14. | Tops Markets (17) (2) | $ | 7.0 | 1.1 | % | NR / NR | |||||||||||||||
15. |
Ross Stores (46) | 0.7 | 1.2 | % | BBB / NR | 15. | Kroger (34) | $ | 6.7 | 1.0 | % | BBB / Baa2 | |||||||||||||||
16. |
OfficeMax (41) | 0.6 | 1.1 | % | B / B2 | 16. | Barnes & Noble (26) | $ | 6.6 | 1.0 | % | NR / NR | |||||||||||||||
17. |
Publix (47) | 0.6 | 1.0 | % | NR / NR | 17. | Staples (35) | $ | 6.5 | 1.0 | % | BBB / Baa2 | |||||||||||||||
18. |
Dollar Tree Stores (91) | 0.6 | 1.0 | % | NR / NR | 18. | Kmart / Sears (31) | $ | 6.4 | 1.0 | % | BB- / Ba2 | |||||||||||||||
19. |
Hobby Lobby (17) | 0.6 | 1.0 | % | NR / NR | 19. | Cinemark Theatre (12) | $ | 6.4 | 1.0 | % | B+ / NR | |||||||||||||||
20. |
Tops Markets (17) (2) | 0.6 | 1.0 | % | NR / NR | 20. | Regal Cinemas (10) | $ | 6.4 | 1.0 | % | B+ / B3 | |||||||||||||||
Subtotal 1-20 | 21.3 | 36.0 | % | Subtotal 1-20 | $ | 186.0 | 29.0 | % | |||||||||||||||||||
Total Portfolio | 59.0 | 100.0 | % | Total Portfolio | $ | 643.3 | 100.0 | % | |||||||||||||||||||
(1) | Based on 100% ownership of wholly-owned properties and pro rata ownership of joint venture properties. | |
(2) | 15 leases are guaranteed by Koninklijke Ahold NV, rated BBB / Baa3. |
41
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Summary of Consolidated Debt
(In Millions)
December 31, 2009 | December 31, 2010 | |||||||||||||||
December 31, 2009 | DDR Pro Rata | December 31, 2010 | DDR Pro Rata | |||||||||||||
Total Debt Outstanding | Aggregate | Share | Aggregate | Share | ||||||||||||
Mortgage Loans Payable: |
||||||||||||||||
Fixed rate secured loans |
$ | 1,594.2 | $ | 1,479.9 | $ | 1,234.5 | $ | 1,224.6 | ||||||||
Variable rate secured loans |
319.7 | 291.6 | 144.0 | 131.8 | ||||||||||||
Secured Term Loan |
800.0 | 800.0 | 600.0 | 600.0 | ||||||||||||
Unsecured Public Debt |
1,689.8 | 1,689.8 | 2,043.6 | 2,043.6 | ||||||||||||
Unsecured Credit Facilities |
775.0 | 775.0 | 279.9 | 279.9 | ||||||||||||
Total |
$ | 5,178.7 | $ | 5,036.3 | $ | 4,302.0 | $ | 4,279.9 | ||||||||
Scheduled | Secured | Unsecured | ||||||||||||||||||
Principal | Debt | Debt | Aggregate | DDR Pro Rata | ||||||||||||||||
Schedule of Maturities by Year (1) | Payments | Maturities | Maturities | Total | Share | |||||||||||||||
2011 |
$ | 28.5 | $ | 149.3 | $ | 180.5 | $ | 358.3 | $ | 358.3 | ||||||||||
2012 |
28.6 | 704.5 | 417.3 | 1,150.4 | 1,128.4 | |||||||||||||||
2013 |
24.0 | 469.1 | | 493.1 | 493.1 | |||||||||||||||
2014 |
15.6 | 370.5 | 279.9 | 666.0 | 666.0 | |||||||||||||||
2015 |
23.0 | 2.7 | 467.4 | 493.1 | 493.1 | |||||||||||||||
2016 |
12.9 | 2.3 | 298.7 | 313.9 | 313.8 | |||||||||||||||
2017 |
12.5 | | 300.0 | 312.5 | 312.5 | |||||||||||||||
2018 |
8.7 | | 82.2 | 90.9 | 90.9 | |||||||||||||||
2019 |
3.8 | 74.7 | | 78.5 | 78.5 | |||||||||||||||
2020 |
2.0 | | 297.5 | 299.5 | 299.5 | |||||||||||||||
2021 and beyond |
1.1 | 44.7 | | 45.8 | 45.8 | |||||||||||||||
$ | 160.7 | $ | 1,817.8 | $ | 2,323.5 | $ | 4,302.0 | $ | 4,279.9 | |||||||||||
Percentage of Total Debt | December 31, 2009 | December 31, 2010 | ||||||
Fixed |
71.1 | % | 79.7 | % | ||||
Variable |
28.9 | % | 20.3 | % | ||||
Percentage of Total Debt | December 31, 2009 | December 31, 2010 | ||||||
Recourse to DDR |
69.5 | % | 69.2 | % | ||||
Non-recourse to DDR |
30.5 | % | 30.8 | % |
(1) | Assumes borrower extension options are exercised. |
42
Developers
Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Summary of Joint Venture Debt
(In Millions)
December 31, 2009 | December 31, 2010 | |||||||||||||||
December 31, 2009 | DDR Pro Rata | December 31, 2010 | DDR Pro Rata | |||||||||||||
Total Debt Outstanding | Aggregate | Share | Aggregate | Share | ||||||||||||
Mortgage Loans Payable: |
||||||||||||||||
Fixed rate secured loans |
$ | 3,807.2 | $ | 785.4 | $ | 3,289.3 | $ | 707.3 | ||||||||
Variable rate secured loans |
740.5 | 131.6 | 661.5 | 128.5 | ||||||||||||
Total |
$ | 4,547.7 | $ | 917.0 | $ | 3,950.8 | $ | 835.8 | ||||||||
Scheduled | Mortgage | |||||||||||||||
Principal | Loan | Aggregate | DDR Pro Rata | |||||||||||||
Schedule of Maturities by Year (1) | Payments | Maturities | Total | Share | ||||||||||||
2011 |
$ | 7.2 | $ | 263.7 | $ | 270.9 | $ | 67.0 | ||||||||
2012 |
5.9 | 1,554.9 | 1,560.8 | 355.6 | ||||||||||||
2013 |
5.7 | 234.0 | 239.7 | 30.6 | ||||||||||||
2014 |
5.7 | 150.5 | 156.2 | 31.1 | ||||||||||||
2015 |
2.3 | 190.4 | 192.7 | 41.8 | ||||||||||||
2016 |
2.4 | 16.2 | 18.6 | 8.1 | ||||||||||||
2017 |
2.6 | 1,372.2 | 1,374.8 | 254.4 | ||||||||||||
2018 |
1.9 | | 1.9 | 0.3 | ||||||||||||
2019 |
0.8 | 34.1 | 34.9 | 5.1 | ||||||||||||
2020 |
0.9 | 67.2 | 68.1 | 32.3 | ||||||||||||
2021 and beyond |
| 32.2 | 32.2 | 9.5 | ||||||||||||
$ | 35.4 | $ | 3,915.4 | $ | 3,950.8 | $ | 835.8 | |||||||||
Percentage of Total Debt | December 31, 2009 | December 31, 2010 | ||||||
Fixed |
83.7 | % | 83.3 | % | ||||
Variable |
16.3 | % | 16.7 | % | ||||
Percentage of Total Debt | December 31, 2009 | December 31, 2010 | ||||||
Recourse to DDR |
4.8 | % | 4.9 | % | ||||
Non-recourse to DDR |
95.2 | % | 95.1 | % |
(1) | Assumes borrower extension options are exercised. |
43
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Consolidated Debt Detail
(In Millions)
(In Millions)
Loan | DDR | Final Maturity | Interest | |||||||||||||||||
Balance | Proportionate Share | Date (1) | Rate (2) | |||||||||||||||||
SENIOR DEBT |
||||||||||||||||||||
Unsecured Credit Facilities: |
||||||||||||||||||||
$950 Million Revolving Credit Facility |
$ | 279.9 | $ | 279.9 | 02/14 | LIBOR + 275 | ||||||||||||||
$65 Million Revolving Credit Facility |
| | 02/14 | LIBOR + 275 | ||||||||||||||||
Secured Credit Facility: |
||||||||||||||||||||
$800 Million Term Loan |
600.0 | 600.0 | 02/12 | LIBOR + 120 | ||||||||||||||||
Total Term and Credit Facility Debt |
$ | 879.9 | $ | 879.9 | ||||||||||||||||
PUBLIC DEBT |
||||||||||||||||||||
Medium Term Notes |
$ | 93.0 | $ | 93.0 | 04/11 | 5.25 | ||||||||||||||
Convertible Notes |
87.5 | (3 | ) | 87.5 | 08/11 | 3.50 | ||||||||||||||
Convertible Notes |
194.1 | (4 | ) | 194.1 | 03/12 | 3.00 | ||||||||||||||
Medium Term Notes |
223.2 | 223.2 | 10/12 | 5.38 | ||||||||||||||||
Medium Term Notes |
169.4 | 169.4 | 05/15 | 5.50 | ||||||||||||||||
Convertible Notes |
298.0 | (5 | ) | 298.0 | 11/15 | 1.75 | ||||||||||||||
Medium Term Notes |
298.7 | 298.7 | 03/16 | 9.63 | ||||||||||||||||
Medium Term Notes |
300.0 | 300.0 | 04/17 | 7.50 | ||||||||||||||||
Medium Term Notes |
82.2 | 82.2 | 07/18 | 7.50 | ||||||||||||||||
Medium Term Notes |
297.5 | 297.5 | 09/20 | 7.88 | ||||||||||||||||
Total Public Debt |
$ | 2,043.6 | $ | 2,043.6 | ||||||||||||||||
MORTGAGE DEBT |
||||||||||||||||||||
Peach Street Square I & II, Erie, PA |
$ | 23.7 | $ | 23.7 | 04/11 | 6.88 | ||||||||||||||
Southland Crossings, Boardman, OH |
22.1 | 22.1 | 04/11 | 6.88 | ||||||||||||||||
The Promenade at Brentwood, St. Louis, MO |
21.3 | 21.3 | 04/11 | 6.88 | ||||||||||||||||
Centennial Promenade, Denver, CO |
31.9 | 31.9 | 04/11 | 6.88 | ||||||||||||||||
Merriam Village, Merriam, KS |
14.7 | (6 | ) | 14.7 | 05/11 | LIBOR + 400 | ||||||||||||||
Union Town Center, Indian Train, NC |
6.4 | 6.4 | 10/11 | 7.00 | ||||||||||||||||
Westgate Plaza, Gates, NY |
23.0 | 23.0 | 10/11 | 7.24 | ||||||||||||||||
Ashtabula Commons, Ashtabula, OH |
6.3 | 6.3 | 12/11 | 7.00 | ||||||||||||||||
Kyle Crossing, Kyle, TX |
24.4 | (6 | ) | 12.2 | 01/12 | LIBOR + 350 | ||||||||||||||
Paradise Village Gateway, Phoenix, AZ |
30.0 | 20.1 | 03/12 | 5.39 | ||||||||||||||||
University Hills, Denver, CO |
25.1 | 25.1 | 07/12 | 7.30 | ||||||||||||||||
N. Charleston Center, N. Charleston, SC |
9.5 | 9.5 | 07/12 | 7.37 | ||||||||||||||||
Cortez Plaza, Bradenton, FL |
11.1 | 11.1 | 07/12 | 7.15 | ||||||||||||||||
Walgreens, Dearborn Hts, MI |
3.5 | 3.5 | 11/12 | 4.86 | ||||||||||||||||
Walgreens, Livonia, MI |
2.5 | 2.5 | 11/12 | 4.86 | ||||||||||||||||
Walgreens, Westland, MI |
2.6 | 2.6 | 03/13 | 4.86 | ||||||||||||||||
Perimeter Pointe, Atlanta, GA |
27.4 | (6 | ) | 27.4 | 04/13 | LIBOR + 350 | ||||||||||||||
Town Center Prado, Marietta, GA |
19.2 | (6 | ) | 19.2 | 04/13 | LIBOR + 350 | ||||||||||||||
Plaza Escorial, Carolina, PR |
57.5 | 57.5 | 04/13 | 5.00 | ||||||||||||||||
Plaza Rio Hondo, Bayamon, PR |
109.5 | 109.5 | 04/13 | 5.00 | ||||||||||||||||
Paseo Colorado, Pasadena, CA |
79.1 | 79.1 | 04/13 | 5.00 | ||||||||||||||||
Meridian Crossroads & Family Center, Meridian, ID |
37.2 | 37.2 | 04/13 | 5.00 | ||||||||||||||||
University Center, Wilmington, NC |
24.5 | 24.5 | 04/13 | 5.00 | ||||||||||||||||
Aspen Grove, Littleton, CO |
42.2 | 42.2 | 04/13 | 5.00 | ||||||||||||||||
Victor Square, Victor, NY |
6.1 | 6.1 | 04/13 | 5.80 | ||||||||||||||||
DDRC Headquarters, Beachwood, OH |
35.3 | 35.3 | 04/13 | LIBOR + 110 | ||||||||||||||||
Wrangleboro Consumer Sq. I & II, Mays Landing, NJ |
38.1 | 38.1 | 05/13 | 6.99 |
44
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Consolidated Debt Detail (continued)
(In Millions)
(In Millions)
Loan | DDR | Final Maturity | Interest | |||||||||||||||||
Balance | Proportionate Share | Date (1) | Rate (2) | |||||||||||||||||
Monmouth Consumer Sq., W. Long Branch, NJ |
5.9 | 5.9 | 07/13 | 8.57 | ||||||||||||||||
Rotonda Plaza, Englewood, FL |
0.8 | 0.8 | 07/13 | 5.80 | ||||||||||||||||
Crossroads Center, Gulfport, MS |
25.9 | 25.9 | 10/14 | 4.23 | ||||||||||||||||
The Commons, Salisbury, MD |
9.2 | 9.2 | 10/14 | 4.23 | ||||||||||||||||
Chillicothe Place, Chillicothe, OH |
4.5 | 4.5 | 10/14 | 4.23 | ||||||||||||||||
Deer Valley Towne Center, Phoenix, AZ |
18.5 | 18.5 | 10/14 | 4.23 | ||||||||||||||||
Plaza at Sunset Hills, Sunset Hills, MO |
29.4 | 29.4 | 10/14 | 4.23 | ||||||||||||||||
North Pointe Plaza, North Charleston, SC |
11.5 | 11.5 | 10/14 | 4.23 | ||||||||||||||||
Wando Crossing, Mount Pleasant, SC |
12.6 | 12.6 | 10/14 | 4.23 | ||||||||||||||||
Brook Highland Plaza, Birmingham, AL |
25.9 | 25.9 | 10/14 | 4.23 | ||||||||||||||||
Mooresville Consumer Sq., Mooresville, NC |
19.1 | 19.1 | 10/14 | 4.23 | ||||||||||||||||
Town Center Plaza, Leawood, KS |
53.3 | 53.3 | 10/14 | 4.23 | ||||||||||||||||
Warner Robins Place, Warner Robins, GA |
7.2 | 7.2 | 10/14 | 4.23 | ||||||||||||||||
Cross Pointe Center, Fayetteville, NC |
10.5 | 10.5 | 10/14 | 4.23 | ||||||||||||||||
Overlook at Hamilton Place, Chattanooga, TN |
10.5 | 10.5 | 10/14 | 4.23 | ||||||||||||||||
Bermuda Square, Chester, VA |
7.9 | 7.9 | 10/14 | 4.23 | ||||||||||||||||
Home Depot Center, Orlando Park, IL |
7.1 | 7.1 | 10/14 | 4.23 | ||||||||||||||||
Delaware Consumer Square, Buffalo, NY |
10.8 | 10.8 | 10/14 | 4.23 | ||||||||||||||||
Hamilton Marketplace, Hamilton, NJ |
43.6 | 43.6 | 10/14 | 4.23 | ||||||||||||||||
Marketplace at Delta Twp, Lansing, MI |
7.0 | 7.0 | 10/14 | 4.23 | ||||||||||||||||
Clearwater Collection, Clearwater, FL |
7.5 | 7.5 | 10/14 | 4.23 | ||||||||||||||||
Wendover Village, Greensboro, NC |
5.0 | 5.0 | 10/14 | 4.23 | ||||||||||||||||
Lexington Place, Lexington, SC |
4.5 | 4.5 | 10/14 | 4.23 | ||||||||||||||||
Downtown Short Pump, Richmond, VA |
13.2 | 13.2 | 10/14 | 4.23 | ||||||||||||||||
Loisdale Center, Springfield, VA |
11.7 | 11.7 | 10/14 | 4.23 | ||||||||||||||||
Windsor Court, Windsor, CT |
7.7 | 7.7 | 10/14 | 4.23 | ||||||||||||||||
Abernathy Square, Atlanta, GA |
12.7 | 12.7 | 10/14 | 4.23 | ||||||||||||||||
Sams Club, Worcester, MA |
5.7 | 5.7 | 10/14 | 4.23 | ||||||||||||||||
Walmart Supercenter, Alliance, OH |
7.6 | 7.6 | 10/14 | 4.23 | ||||||||||||||||
Kroger, Allentown, PA |
2.7 | 2.7 | 10/14 | 4.23 | ||||||||||||||||
Reno Riverside, Reno, NV |
3.0 | (6 | ) | 3.0 | 02/15 | Prime + 170 | ||||||||||||||
Hamilton Commons, Mays Landing, NJ |
8.4 | 8.4 | 09/15 | 4.70 | ||||||||||||||||
Consumer Square West, Columbus, OH |
10.8 | 10.8 | 11/15 | 8.00 | ||||||||||||||||
Tops Plaza, Lockport, NY |
7.8 | 7.8 | 01/16 | 8.00 | ||||||||||||||||
Merriam Town Center, Merriam, KS (TIF) |
2.3 | 2.3 | 02/16 | 6.90 | ||||||||||||||||
Freedom Plaza, Rome, NY |
2.9 | 2.9 | 09/16 | 7.85 | ||||||||||||||||
Walmart Supercenter, Winston-Salem, NC |
7.5 | 7.5 | 09/17 | 6.00 | ||||||||||||||||
Thruway Plaza (Walmart), Cheektowaga, NY |
3.3 | 3.3 | 10/17 | 6.78 | ||||||||||||||||
Tops Plaza, Ithaca, NY |
13.2 | 13.2 | 01/18 | 7.05 | ||||||||||||||||
Walmart Supercenter, Greenville, SC |
7.2 | 7.2 | 02/18 | 6.00 | ||||||||||||||||
Mohawk Commons, Niskayuna, NY |
17.5 | 17.5 | 12/18 | 5.75 | ||||||||||||||||
Lowes, Hendersonville, TN |
6.6 | 6.6 | 01/19 | 7.66 | ||||||||||||||||
Plaza Isabela, Isabela, PR |
23.2 | 23.2 | 06/19 | 7.59 | ||||||||||||||||
Plaza Cayey, Cayey, PR |
21.9 | 21.9 | 06/19 | 7.59 | ||||||||||||||||
Plaza Walmart, Guayama, PR |
12.3 | 12.3 | 06/19 | 7.59 | ||||||||||||||||
Plaza Fajardo, Fajardo, PR |
26.4 | 26.4 | 06/19 | 7.59 | ||||||||||||||||
Mariner Square, Spring Hill, FL |
4.0 | 4.0 | 09/19 | 9.75 | ||||||||||||||||
Northland Square, Cedar Rapids, IA |
7.6 | 7.6 | 01/20 | 9.38 |
45
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Consolidated Debt Detail (continued)
(In Millions)
(In Millions)
Loan | DDR | Final Maturity | Interest | |||||||||||||
Balance | Proportionate Share | Date (1) | Rate (2) | |||||||||||||
Connecticut Commons, Plainville, CT (TIF) |
6.2 | 6.2 | 04/21 | 7.13 | ||||||||||||
West Valley Marketplace, Allentown, PA |
14.2 | 14.2 | 07/21 | 6.95 | ||||||||||||
Liberty Fair Mall, Martinsville, VA |
18.5 | 18.5 | 12/29 | 10.46 | ||||||||||||
Gulfport Promenade, Gulfport, MS |
20.0 | 20.0 | 12/37 | SIFMA + 5bp | ||||||||||||
Total Mortgage Debt |
$ | 1,378.5 | $ | 1,356.4 | ||||||||||||
Total Consolidated Debt |
$ | 4,302.0 | $ | 4,279.9 | ||||||||||||
Wtd. Avg. | Wtd. Avg. | |||||||||||||||
Maturity | Interest Rate | |||||||||||||||
Fixed Rate |
$ | 3,428.1 | $ | 3,418.2 | 4.3 years | 5.77 | % | |||||||||
Variable Rate |
873.9 | 861.7 | 2.4 years | 2.34 | % | |||||||||||
$ | 4,302.0 | $ | 4,279.9 | 3.9 years | 5.07 | % | ||||||||||
CUMULATIVE REDEEMABLE PREFERRED SHARES
Outstanding Amount | ||||
Class G 8.0% |
$ | 180.0 | ||
Class H 7.375% |
205.0 | |||
Class I 7.5% |
170.0 | |||
$ | 555.0 |
DERIVATIVE INSTRUMENTS
Notional Amount | Underlying Debt Hedged | Rate Hedged | Fixed Rate | Termination Date | ||||||||||||||||
Interest Rate
Swap |
$ | 100.0 | Secured Credit Facility | 1 mo. LIBOR | 4.82 | % | February 21, 2012 | |||||||||||||
Interest Rate
Swap |
$ | 50.0 | $950 Million Revolving Credit Facility | 1 mo. LIBOR | 0.64 | % | November 20, 2012 |
Notes:
(1) | Assumes borrower extension options are exercised. | |
(2) | Interest rate figures reflect coupon rates of interest and do not include discounts or premiums. Deferred finance cost amortization | |
of approximately $13.3 million is partially offset by approximately $2.9 million of fair market value adjustments. | ||
(3) | The convertible notes may be net settled with DDRs 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 a $1.2 million reduction as compared to the face | ||
value of the convertible notes as required by accounting standards due to the initial value of the equity conversion feature. | ||
(4) | The convertible notes may be net settled with DDRs 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 a $4.8 million reduction as compared to the face | ||
value of the convertible notes as required by accounting standards due to the initial value of the equity conversion feature. | ||
(5) | The convertible notes may be net settled with DDRs common stock once the stock price rises above $16.38 per share at December 31, 2010 and subject to adjustments resulting from changes in the quarterly dividend per share. The principal balance on these notes is to be settled in cash. Included in this amount is a $52.0 million reduction as compared to the face value of the convertible notes as required by accounting standards due to the initial value of the equity conversion feature. | |
(6) | The following loans have floor interest rates: |
Loan | Floor | |
Merriam Village, Merriam, KS
|
1 month LIBOR of 1.00% | |
Kyle Crossing, Kyle, TX
|
4.00% | |
Perimeter Pointe, Atlanta, GA
|
1 month LIBOR of 2.00% | |
Town Center Prado, Marietta, GA
|
1 month LIBOR of 2.00% | |
Reno Riverside, Reno, NV
|
5.95% |
46
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Joint Venture Debt Detail
(In Millions)
(In Millions)
Loan | DDR | Final Maturity | Interest | |||||||||||||
Balance | Proportionate Share | Date (1) | Rate | |||||||||||||
DDRTC Core Retail Fund, LLC |
||||||||||||||||
DDRTC Holdings Pool 5, LLC (13 assets) |
$ | 178.8 | $ | 26.8 | 02/12 | LIBOR + 65 | ||||||||||
DDRTC Holdings Pool 3, LLC (17 assets) |
555.0 | 83.3 | 03/12 | 5.48 | ||||||||||||
DDRTC Holdings Pool 1, LLC (9 assets) |
350.2 | 52.5 | 03/17 | 5.45 | ||||||||||||
DDRTC Holdings Pool 6, LLC |
||||||||||||||||
Aiken Exchange, Aiken, SC |
7.4 | 1.1 | 05/10 | 9.37 | ||||||||||||
Cox Creek Shopping Center, Florence, AL |
13.7 | 2.1 | 03/12 | 7.09 | ||||||||||||
Cypress Trace, Fort Myers, FL |
16.0 | 2.4 | 04/12 | 5.00 | ||||||||||||
Waterfront Marketplace, Homestead, PA |
28.0 | 4.2 | 08/12 | 6.35 | ||||||||||||
Waterfront Town Center, Homestead, PA |
36.8 | 5.5 | 08/12 | 6.35 | ||||||||||||
Creeks at Virginia Center, Glen Allen, VA |
24.9 | 3.7 | 08/12 | 6.37 | ||||||||||||
Willoughby Hills Shop Ctr, Willoughby Hills, OH |
11.8 | 1.8 | 07/18 | 6.98 | ||||||||||||
Total DDRTC Core Retail Fund LLC |
$ | 1,222.7 | $ | 183.4 | ||||||||||||
DDR Domestic Retail Fund I |
||||||||||||||||
Southampton Village, Tyrone, GA |
$ | 6.7 | $ | 1.3 | 05/11 | 4.66 | ||||||||||
Village Center Outlot, Racine, WI |
2.1 | 0.4 | 07/11 | 5.17 | ||||||||||||
Center Pointe Plaza, Easley, SC |
4.3 | 0.9 | 08/11 | 5.32 | ||||||||||||
Shoppes on the Ridge, Lake Wales, FL |
9.6 | 1.9 | 12/11 | 4.74 | ||||||||||||
Publix Brooker Creek, Palm Harbor, FL |
5.0 | 1.0 | 12/11 | 4.61 | ||||||||||||
Watercolor Crossing, Santa Rosa, FL |
4.4 | 0.9 | 01/12 | 4.76 | ||||||||||||
Heather Island Plaza, Ocala, FL |
6.2 | 1.2 | 12/12 | 5.00 | ||||||||||||
Hilliard Rome, Columbus, OH |
10.6 | 2.1 | 01/13 | 5.87 | ||||||||||||
Meadows Square, Boynton Beach, FL |
1.8 | 0.4 | 07/13 | 6.72 | ||||||||||||
Village Center, Racine, WI |
12.1 | 2.4 | 04/15 | 4.21 | ||||||||||||
Paradise Promenade, Davie, FL |
6.2 | 1.2 | 04/15 | 4.21 | ||||||||||||
West Falls Plaza, West Patterson, NJ |
11.7 | 2.3 | 04/15 | 4.21 | ||||||||||||
DDR Domestic Retail Fund I (52 assets) |
885.0 | 177.0 | 07/17 | 5.60 | ||||||||||||
Total DDR Domestic Retail Fund I |
$ | 965.5 | $ | 193.0 | ||||||||||||
Coventry II |
||||||||||||||||
Bloomfield Park, Bloomfield Hills, MI |
$ | 39.5 | (2) | $ | | 12/08 | Prime + 300 | |||||||||
Fairplain Plaza, Benton Harbor, MI |
15.7 | 3.1 | 05/11 | LIBOR + 300 | ||||||||||||
Totem Lake Mall, Kirkland, WA |
27.9 | 5.6 | 05/11 | LIBOR + 300 | ||||||||||||
Westover Marketplace, San Antonio, TX |
20.6 | (3) | 4.1 | 11/11 | LIBOR + 350 | |||||||||||
Watters Creek, Allen, TX |
115.9 | (3) | 23.2 | 02/12 | LIBOR + 300 | |||||||||||
Watters Creek, Allen, TX |
23.3 | (3) | 4.7 | 02/12 | LIBOR + 600 | |||||||||||
Coventry II DDR SM (38 assets) |
64.3 | (2) | 12.9 | 09/12 | LIBOR + 225 | |||||||||||
Coventry II DDR SM |
32.7 | (2) | 6.5 | 09/12 | LIBOR + 225 | |||||||||||
Buena Park, Buena Park, CA |
61.0 | 12.2 | 11/12 | 6.00 | ||||||||||||
Marley Creek Square, Orland Park, IL |
10.7 | (2) | 1.1 | 12/12 | LIBOR + 125 | |||||||||||
Christown Spectrum Mall, Phoenix, AZ |
46.0 | (3) | 9.2 | 11/13 | LIBOR + 343 | |||||||||||
Christown Spectrum Mall, Phoenix, AZ |
19.0 | (3) | 3.8 | 11/13 | LIBOR + 1000 | |||||||||||
Tri-County Mall, Cincinnati, OH |
10.2 | (2) | 2.0 | 02/15 | 10.30 | |||||||||||
Tri-County Mall, Cincinnati, OH |
151.1 | (2) | 30.2 | 02/15 | 5.66 | |||||||||||
Total Coventry II |
$ | 638.0 | $ | 118.6 |
47
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Joint Venture Debt Detail (continued)
(In Millions)
(In Millions)
Loan | DDR | Final Maturity | Interest | |||||||||||||
Balance | Proportionate Share | Date (1) | Rate | |||||||||||||
DDR SAU Retail Fund, LLC |
||||||||||||||||
Lewandowski Commons, Lyndhurst, NJ |
$ | 12.5 | $ | 2.5 | 03/12 | 5.77 | ||||||||||
South Square, Durham, NC |
12.6 | 2.5 | 10/12 | 5.06 | ||||||||||||
Shoppes at Wendover II, Greensboro,
NC |
14.4 | 2.9 | 10/12 | 5.06 | ||||||||||||
North Hampton Market (Phase I & II),
Taylors, SC |
10.5 | 2.1 | 10/12 | 5.08 | ||||||||||||
Oakland Market Place, Oakland, TN |
3.6 | 0.7 | 10/12 | 5.04 | ||||||||||||
Crossroads Square, Morristown, TN |
4.9 | 1.0 | 12/12 | 5.31 | ||||||||||||
Cascade Corners, Atlanta, GA |
4.0 | 0.8 | 12/12 | 5.42 | ||||||||||||
Hilander Village, Roscoe, IL |
9.4 | 1.9 | 12/12 | 5.41 | ||||||||||||
Glenlake Plaza, Indianapolis, IN |
8.2 | 1.6 | 12/12 | 5.44 | ||||||||||||
Broadmoor Plaza, South Bend, IN |
11.0 | 2.2 | 12/12 | 5.44 | ||||||||||||
Milan Plaza, Milan, MI |
2.2 | 0.4 | 12/12 | 5.49 | ||||||||||||
West Towne Commons, Jackson, TN |
4.8 | 1.0 | 12/12 | 5.44 | ||||||||||||
American Way, Memphis, TN |
6.7 | 1.3 | 12/12 | 5.44 | ||||||||||||
Kroger Junction, Pasadena, TX |
3.8 | 0.8 | 12/12 | 5.44 | ||||||||||||
Kroger Plaza, Virginia Beach, VA |
1.8 | 0.4 | 12/12 | 5.44 | ||||||||||||
Willowbrook Commons, Nashville, TN |
7.0 | 1.4 | 03/13 | 5.41 | ||||||||||||
Harper Hill Commons, Winston Salem,
NC |
10.4 | 2.1 | 04/13 | 5.79 | ||||||||||||
The Point, Greenville, SC |
15.8 | 3.2 | 04/13 | 5.64 | ||||||||||||
Plaza at Carolina Forest, Myrtle
Beach, SC |
14.2 | 2.8 | 05/13 | 5.97 | ||||||||||||
Alexander Pointe, Salisbury, NC |
5.1 | 1.0 | 08/13 | 5.92 | ||||||||||||
Patterson Place, Durham, NC |
20.3 | 4.1 | 12/13 | 5.67 | ||||||||||||
Total DDR SAU Retail Fund LLC |
$ | 183.1 | $ | 36.7 | ||||||||||||
Sonae Sierra Brasil BV Sarl |
||||||||||||||||
Campo Limpo Shopping, Brazil |
$ | 0.2 | $ | 0.1 | 06/11 | TJLP+ 250 | ||||||||||
Sonae Sierra Brasil Limitadas, Brazil |
12.0 | 5.7 | 10/15 | CDI + 285 | ||||||||||||
Shopping Metropole, Brazil |
16.1 | 7.7 | 10/16 | CDI + 330 | ||||||||||||
Manaura Shopping, Brazil |
67.2 | 32.1 | 12/20 | 8.50 | ||||||||||||
Patio Uberlandia, Brazil |
14.2 | 6.8 | 10/25 | TR + 1130 | ||||||||||||
Total Sonae Sierra Brasil BV Sarl |
$ | 109.7 | $ | 52.4 | ||||||||||||
Sun Center Limited, Columbus, OH |
$ | 11.6 | $ | 9.2 | 04/11 | 8.48 | ||||||||||
Sun Center Limited, Columbus, OH |
5.7 | 4.5 | 05/11 | 5.42 | ||||||||||||
RO & SW Realty LLC (11 assets) |
22.5 | 5.7 | 06/11 | 5.96 | ||||||||||||
DOTRS LLC, Macedonia, OH |
21.0 | 10.5 | 08/11 | 6.05 | ||||||||||||
RVIP IIIB, Deer Park, IL |
60.0 | 15.5 | 10/11 | 5.59 | ||||||||||||
RVIP VIII, Austin, TX |
21.0 | 5.4 | 01/12 | LIBOR + 350 | ||||||||||||
DDRA Ahwatukee Foothills LLC, Phoenix, AZ |
108.3 | 54.1 | 08/12 | 5.30 | ||||||||||||
DDRA Arrowhead Crossing LLC, Phoenix, AZ |
47.6 | 23.8 | 08/12 | 5.30 | ||||||||||||
DDRA Maple Grove Crossing LLC |
29.3 | 14.7 | 08/12 | 5.30 | ||||||||||||
DDRA Tanasbourne Town Center LLC |
57.9 | 29.0 | 08/12 | 5.30 | ||||||||||||
DDRA Eagan Promenade LLC |
35.8 | 17.9 | 08/12 | 5.30 | ||||||||||||
Jefferson County Plaza LLC, Arnold, MO |
3.6 | 1.8 | 08/12 | LIBOR + 200 | ||||||||||||
DDR MDT PS, LLC (7 assets) |
86.0 | | 07/13 | 6.00 | ||||||||||||
DDR Markaz II (13 assets) |
150.5 | 30.1 | 11/14 | 5.15 | ||||||||||||
TRT DDR Holdings I LLC (3 assets) |
110.0 | 11.0 | 05/17 | 5.51 |
48
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31, 2010
Quarterly Financial Supplement
For the year ended December 31, 2010
Joint Venture Debt Detail (continued)
(In Millions)
(In Millions)
Loan | DDR | Final Maturity | Interest | |||||||||||||
Balance | Proportionate Share | Date (1) | Rate | |||||||||||||
Lennox Town Center Limited, Columbus, OH |
1.0 | 0.5 | 06/17 | 6.44 | ||||||||||||
Lennox Town Center Limited, Columbus, OH |
26.0 | 13.0 | 06/17 | 5.64 | ||||||||||||
Cole DDR MT Independence, Independence, MO |
34.1 | 5.0 | 01/19 | 5.95 | ||||||||||||
Total |
$ | 3,950.8 | $ | 835.8 | ||||||||||||
Wtd. Avg. | Wtd. Avg. | |||||||||||||||||
Maturity | Interest Rate | |||||||||||||||||
Total Joint Venture Debt: |
||||||||||||||||||
Fixed Rate |
$ | 3,289.3 | $ | 707.3 | 4.1 years | 5.64 | % | |||||||||||
Variable Rate |
661.5 | 128.5 | 1.8 years | 3.97 | % | |||||||||||||
$ | 3,950.8 | $ | 835.8 | 3.7 years | 5.36 | % | ||||||||||||
Notes:
(1) | Assumes borrower extension options are exercised. | |
(2) | The Company has written its investment down to zero on these Coventry II investments and is receiving no allocation of income. | |
(3) | The following loans have floor interest rates: |
Loan | Floor | |
Christown Spectrum Mall, Phoenix, AZ
|
1 month LIBOR of 0.2563% | |
Westover Marketplace, San Antonio, TX
|
1 month LIBOR of 1.50% | |
Watters Creek, Allen, TX
|
1 month LIBOR of 1.50% |
49
Developers Diversified Realty
Quarterly Financial Supplement
For the year ended December 31,2010
Quarterly Financial Supplement
For the year ended December 31,2010
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 |
Equity Research Coverage |
||||
Banc of America / Merrill Lynch |
||||
Craig Schmidt |
craig.schmidt@baml.com | (646) 855-3640 | ||
Lindsay Schroll |
lindsay.schroll@baml.com | (646) 855-1829 | ||
Cowen & Company |
||||
Jim Sullivan |
james.sullivan@cowen.com | (646) 562-1380 | ||
Mike Gorman |
michael.gorman@cowen.com | (646) 562-1381 | ||
Citigroup |
||||
Michael Bilerman |
michael.bilerman@citi.com | (212) 816-1383 | ||
Quentin Velleley |
quentin.velleley@citi.com | (212) 816-6981 | ||
Deutsche Bank |
||||
John Perry |
john.perry@db.com | (212) 250-4912 | ||
Vincent Chao |
vincent.chao@db.com | (212) 250-6799 | ||
DISCERN, Inc. |
||||
Dave Wigginton |
dwigginton@discern.com | (646) 863-4177 | ||
Goldman Sachs |
||||
Jay Habermann |
jonathan.habermann@gs.com | (917) 343-4260 | ||
Ji Young Kim |
jiyoung.kim@gs.com | (212) 902-4736 | ||
Green Street Advisors |
||||
Jim Sullivan |
jsullivan@greenst.com | (949) 640-8780 | ||
Laura Clark |
lclark@greenst.com | (949) 640-8780 | ||
Hilliard Lyons |
||||
Carol Kemple |
ckemple@hilliard.com | (502) 588-1142 | ||
Jefferies and Company |
||||
Tayo Okusanya |
tokusanya@jefferies.com | (212) 336-7076 | ||
J.P. Morgan |
||||
Michael Mueller |
michael.w.mueller@jpmorgan.com | (212) 622-6689 | ||
Joe Dazio |
joseph.c.dazio@jpmorgan.com | (212) 622-6416 | ||
Macquarie |
||||
Ki Bin Kim |
kibin.kim@macquarie.com | (212) 231-6386 | ||
RBC Capital Markets |
||||
Rich Moore |
rich.moore@rbccm.com | (440) 715-2646 | ||
Wes Golladay |
wes.golladay@rbccm.com | (440) 715-2650 | ||
Sandler ONeill |
||||
Alex Goldfarb |
agoldfarb@sandleroneill.com | (212) 466-7937 | ||
James Milam |
jmilam@sandleroneill.com | (212) 466-8066 | ||
UBS |
||||
Ross Nussbaum |
ross.nussbaum@ubs.com | (212) 713-2484 | ||
Christy McElroy |
christy.mcelroy@ubs.com | (203) 719-7831 | ||
Wells Fargo |
||||
Jeff Donnelly |
jeff.donnelly@wachovia.com | (617) 603-4262 | ||
Robert Laquaglia |
robert.laquaglia@wachovia.com | (617) 603-4280 | ||
Fixed Income Research Coverage |
||||
Citigroup |
||||
Tom Cook |
thomas.n.cook@citigroup.com | (212) 723-1112 | ||
J.P. Morgan |
||||
Mark Streeter |
mark.streeter@jpmorgan.com | (212) 834-5086 | ||
Wells Fargo |
||||
Thierry Perrein |
thierry.perrein@wachovia.com | (704) 715-8455 |
50