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

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8-K - FORM 8-K - SITE Centers Corp.	d247232d8k.htm
EX-99.1 - EX-99.1 - SITE Centers Corp.	d247232dex991.htm

Exhibit 99.2

LOGO

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Table of Contents


Section	Page
Earnings Release & Financial Statements
Press Release		1-14

Financial Summary
Financial Highlights		15
Financial Ratios and Ratings		16
Total Market Capitalization Summary		17
Debt to EBITDA Calculation		18
Significant Accounting Policies		19-20
Other Real Estate Information		21
Reconciliation of Non-GAAP Financial Measures		22-25

Joint Venture Financial Summary
Joint Venture Investment Summary		26
Joint Venture Combining Financial Statements		27-28

Investment Summary
Acquisitions and Dispositions		29
Developments and Redevelopments		30-31
Projects Primarily on Hold		32

Portfolio Summary
Portfolio Characteristics		33-34
Lease Expirations		35
Leased Rate		36
Leasing Summary		37
Net Effective Rents		38
Largest Tenants by Square Footage		39
Largest Tenants by Base Rental Revenues		40

Debt Summary
Summary of Consolidated Debt		41
Summary of Joint Venture Debt		42
Consolidated Debt Detail		43-45
Joint Venture Debt Detail		46-48

Analyst Coverage
Contact Information		49

Property list available online at http://www.ddr.com

DDR considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s 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 three and nine months ended September 30, 2011. For additional factors that could cause the results of the Company to differ materially from these indicated in the forward-looking statements, please refer to the Company’s Form 10-K as of December 31, 2010. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For Immediate Release:


Media Contact:		Investor Contact:
Marty Richmond		Samir Khanal
Vice President Marketing and Corporate Communications		Senior Director of Investor Relations
216.755.5500		216.755.5500
mrichmond@ddr.com		skhanal@ddr.com

DDR REPORTS OPERATING FFO PER DILUTED SHARE

OF $0.24 FOR THE QUARTER ENDED SEPTEMBER 30, 2011

BEACHWOOD, OHIO, October 27, 2011 – DDR Corp. (NYSE: DDR) today announced operating results for the quarter ended September 30, 2011.

SIGNIFICANT THIRD QUARTER ACTIVITY

•

Reported operating FFO of $0.24 per diluted share, which excludes certain non-operating items

•

Continued strong leasing performance with the execution of a total of 516 new leases and renewals for over 2.5 million square feet

•

Increased the portfolio leased rate to 93.4% at September 30, 2011 from 93.0% at June 30, 2011 and 92.2% at September 30, 2010

•

Generated positive leasing spreads, with new leases up 15.8% and renewals up 5.7%, for a blended overall spread of 7.3%, which represents a continued improvement from the blended spread of 6.0% for the second quarter of 2011 and the blended spread of 5.0% for the third quarter of 2010

•

Reported same store net operating income growth of 3.7% as compared to an increase of 2.0% for the third quarter of 2010

•

Completed $59 million of sales of non-prime assets

•

Completed $110 million of acquisitions of prime assets

•

Invested $10 million in a loan collateralized by a prime shopping center

“We are pleased to report another strong quarter of operating metrics highlighted by continued momentum in leasing transactions generated from growing retailers seeking high-quality real estate in a supply constrained market,” commented DDR’s president and chief executive officer, Daniel B. Hurwitz. “In addition, our ability to source attractive investment opportunities that support the continuation of our capital recycling strategy will provide compelling returns to our shareholders and continue to improve our overall asset quality.”

FINANCIAL HIGHLIGHTS

The Company’s third quarter operating Funds From Operations (“FFO”) was $67.4 million, or $0.24 per diluted share, before $59.3 million of net adjustments. The net adjustments do not include approximately $6.6 million of gains recognized on asset sales already excluded from FFO.

The charges and gains, primarily non-cash, for the periods ended September 30, 2011, are summarized as follows (in millions):


	Three Months			Nine Months
Non-cash impairment charges – consolidated assets	$	51.2		$	68.5
Executive separation charge		0.3			11.0
Loss on debt retirement, net		0.1			0.1
Non-cash gain on equity derivative instruments (Otto Family warrants)		—			(21.9	)
Other (income) expense, net ⁽¹⁾		(0.2	)		4.8
Equity in net income of joint ventures – loss on asset sales net of gain on debt extinguishment		6.3			7.5
Impairment of joint venture investments		—			1.6
Non-cash gain on change in control of interests		—			(22.7	)
Discontinued operations – non-cash consolidated impairment charges, loss on sales and gain on debt extinguishment		10.5			27.4
Discontinued operations – non-cash gain on deconsolidation of interests		(4.7	)		(4.7	)
Gain on disposition of real estate (land), net		(0.4	)		(0.4	)
Non-controlling interest – portion of impairment charges allocated to outside partners		(3.8	)		(3.8	)
Write-off of original preferred share issuance costs		—			6.4

Total adjustments from FFO to operating FFO	$	59.3		$	73.8

(1)

Amounts included in Other (income) expense are detailed as follows:


	Three Months			Nine Months
Loss on sale of mezzanine note receivable	$	—		$	5.0
Litigation expenditures		—			2.0
Settlement gain of lease liability obligation		—			(2.6	)
Debt extinguishment gain, net		(0.5	)		(0.3	)
Other		0.3			0.7

	$	(0.2	)	$	4.8

FFO applicable to common shareholders for the three-month period ended September 30, 2011, including the above net adjustments, was $8.1 million, or $0.03 per diluted share, which compares to FFO of $37.1 million, or $0.14 per diluted share, for the prior-year comparable period. The decrease in FFO for the three-month period ended September 30, 2011, is primarily the result of an increase in the aggregate impairment charges recorded in 2011 offset by the effect of the non-cash valuation adjustments associated with the warrants issued to the Otto family that were exercised in full for cash in the first quarter of 2011.

FFO applicable to common shareholders for the nine-month period ended September 30, 2011, including the above net adjustments, was $121.3 million, or $0.36 per diluted share, which compares to FFO of $32.7 million, or $0.13 per diluted share, for the prior-year comparable period. The increase in FFO for the nine-month period ended September 30, 2011, is primarily the result of a reduction in the aggregate impairment charges recorded in 2011, the gain on change in control of interests related to the Company’s acquisition of two assets from unconsolidated joint ventures and the effect of the non-cash valuation adjustments associated with the warrants partially offset by an executive separation charge and the write-off of the original issuance costs from the redemption of the Company’s Class G cumulative redeemable preferred shares.

Net loss applicable to common shareholders for the three-month period ended September 30, 2011, was $50.0 million, or $0.18 per diluted share, which compares to a net loss of $24.9 million, or $0.10 per diluted share, for the prior-year comparable period. Net loss applicable to common shareholders for the nine-month period ended September 30, 2011, was $52.1 million, or $0.20 per diluted share, which

compares to a net loss of $156.8 million, or $0.65 per diluted share, for the prior-year comparable period. The changes in net loss applicable to common shareholders for the three- and nine-month periods ended September 30, 2011, is primarily due to the same factors impacting FFO as explained above.

LEASING & PORTFOLIO OPERATIONS

The following results for the three-month period ended September 30, 2011, highlight continued strong leasing activity throughout the portfolio:

•

Executed 220 new leases aggregating approximately 1.0 million square feet and 296 renewals aggregating approximately 1.5 million square feet.

•

Total portfolio average annualized base rent per occupied square foot as of September 30, 2011 was $13.76, as compared to $13.21 at September 30, 2010.

•

The portfolio leased rate was 93.4% at September 30, 2011, as compared to 93.0% at June 30, 2011 and 92.2% at September 30, 2010.

•

On a cash basis, rental rates for new leases increased by 15.8% over prior rents and renewals increased by 5.7%, resulting in an overall blended spread of 7.3%.

•

Same store net operating income (“NOI”) increased 3.7% for the three-month period ended September 30, 2011 over the prior-year comparable period.

ACQUISITIONS & INVESTMENTS

In the third quarter of 2011, the Company acquired three prime assets aggregating 463,677 square feet for a total purchase price of approximately $110.0 million. The Company assumed an aggregate of $67.0 million of mortgage debt in connection with these acquisitions. Two of the prime assets are in Charlotte, North Carolina (Cotswold Village and The Terraces at SouthPark) and one prime asset is in Colorado Springs, Colorado (Chapel Hills East). The assets range between 96% and 100% leased and are occupied by many high-quality retailers typically found in DDR shopping centers including Whole Foods, Marshalls, PetSmart, Best Buy, Harris Teeter, ULTA, Old Navy, and DSW.

As previously announced in the third quarter, the Company has an agreement to acquire Polaris Towne Center in Columbus, Ohio, for $80 million, including the assumption of $45 million in mortgage debt currently encumbering the property. Polaris is a 720,779 square-foot prime asset anchored by Target, Lowe’s, Kroger, Best Buy, T.J.Maxx, Old Navy and ULTA. In connection with this transaction, the Company anticipates selling Town Center Plaza in Leawood, Kansas for $139 million. The Company currently anticipates recognizing a gain, estimated to be approximately $60 million, in connection with the sale of Town Center Plaza, which amount is subject to change based on actual closing and other costs associated with the sale. It is anticipated that this transaction will close in the fourth quarter of 2011, subject to the satisfaction or waiver of customary closing conditions.

In September 2011, the Company invested $10 million in a loan collateralized by a prime shopping center in Miami, Florida.

DISPOSITIONS

The Company sold nine consolidated non-prime assets, aggregating approximately 0.9 million square feet, in the third quarter of 2011, generating gross proceeds of approximately $42.0 million. In addition, the Company sold $17.1 million of consolidated non-income producing assets. The Company recorded an aggregate net loss of approximately $1.4 million related to asset sales in the third quarter of 2011.

2011 GUIDANCE

The Company is tightening its guidance for operating FFO for 2011 to a range between $0.95—$1.00 per diluted share.

NON-GAAP DISCLOSURES

FFO is a supplemental non-GAAP financial measurement used as a standard in the real estate industry and a widely accepted measure of real estate investment trust (“REIT”) performance. Management believes that FFO and operating FFO provide additional indicators of the financial performance of a REIT. The Company also believes that FFO and operating FFO more appropriately measure the core operations of the Company and provide benchmarks to its peer group. Neither FFO nor operating FFO represents cash generated from operating activities in accordance with generally accepted accounting principles (“GAAP”), is necessarily indicative of cash available to fund cash needs and should be considered as an alternative to net income computed in accordance with GAAP as an indicator of the Company’s operating performance or as an alternative to cash flow as a measure of liquidity. FFO is defined and calculated by the Company as net income, adjusted to exclude: (i) preferred share dividends, (ii) gains 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 Company’s proportionate share of FFO from its unconsolidated joint ventures and non-controlling interests, determined on a consistent basis. The Company calculates operating FFO by excluding the non-operating charges and gains described above. 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 income (loss) to FFO and operating FFO is presented in the financial highlights section of the Company’s quarterly supplement.

SAFE HARBOR

DDR considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, local conditions such as oversupply of space or a reduction in demand for real estate in the area; competition from other available space; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; constructing properties or expansions that produce a desired yield on investment; our ability to 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 three-month period ended September 30, 2011. For additional factors that could cause the results of the Company to

differ materially from those indicated in the forward-looking statements, please refer to the Company’s Form 10-K for the year ended December 31, 2010. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

ABOUT DDR

DDR is an owner and manager of 538 value-oriented shopping centers representing 140 million square feet in 41 states, Puerto Rico and Brazil. The Company’s assets are concentrated in high barrier-to-entry markets with stable populations and high growth potential and its portfolio is actively managed to create long-term shareholder value. DDR is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol DDR. Additional information about the company is available at www.ddr.com.

CONFERENCE CALL INFORMATION & SUPPLEMENTAL MATERIALS

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

The Company will hold its quarterly conference call tomorrow, October 28, 2011, at 10:00 a.m. Eastern Daylight Time. To participate, please dial 800.638.4930 (domestic), or 617.614.3944 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the passcode: 52381365. Access to the live call and replay will also be available through the Company’s website. The replay will be available through November 4, 2011.

DDR Corp.

Financial Highlights

(In thousands)


	Three-Month Periods Ended September 30,						Nine-Month Periods Ended September 30,
	2011			2010			2011			2010
Revenues:
Minimum rents ^(A)	$	131,457		$	129,120		$	393,146		$	388,393
Percentage and overage rents ^(A)		1,110			895			3,812			3,319
Recoveries from tenants		42,586			43,331			131,898			130,038
Ancillary and other property income		7,535			5,692			21,658			14,844
Management, development and other fee income		11,210			12,961			34,852			40,122
Other ^(B)		2,550			993			4,726			6,798

		196,448			192,992			590,092			583,514

Expenses:
Operating and maintenance ^(C)		34,027			32,473			106,937			100,277
Real estate taxes		26,465			28,747			79,217			79,956
Impairment charges ^(D)		51,245			—			68,457			59,277
General and administrative ^(E)		17,954			20,180			65,310			62,546
Depreciation and amortization		56,249			53,052			166,496			159,705

		185,940			134,452			486,417			461,761

Other income (expense):
Interest income		2,459			1,614			7,675			4,425
Interest expense ^(F)		(58,169	)		(52,014	)		(175,218	)		(161,488	)
(Loss) gain on debt retirement, net ^(F)		(134	)		333			(134	)		333
(Loss) gain on equity derivative instruments ^(G)		—			(11,278	)		21,926			(14,618	)
Other income (expense), net ^(H)		182			(3,874	)		(4,825	)		(18,357	)

		(55,662	)		(65,219	)		(150,576	)		(189,705	)

Loss before earnings from equity method investments and other items		(45,154	)		(6,679	)		(46,901	)		(67,952	)
Equity in net (loss) income of joint ventures ^(I)		(2,590	)		(4,801	)		15,951			(3,777	)
Impairment of joint venture investments ^(D)		—			—			(1,671	)		—
Gain on change in control of interests ^(J)		—			—			22,710			—
Tax (expense) benefit of taxable REIT subsidiaries and state franchise and income taxes		(299	)		(1,118	)		(1,041	)		1,527

Loss from continuing operations		(48,043	)		(12,598	)		(10,952	)		(70,202	)
Loss from discontinued operations ^(K)		(5,226	)		(3,307	)		(21,656	)		(93,371	)

Loss before gain on disposition of real estate		(53,269	)		(15,905	)		(32,608	)		(163,573	)
Gain on disposition of real estate, net of tax		6,587			145			8,036			61

Net loss		(46,682	)		(15,760	)		(24,572	)		(163,512	)
Non-controlling interests		3,693			1,450			3,512			38,380

Net loss attributable to DDR	$	(42,989	)	$	(14,310	)	$	(21,060	)	$	(125,132	)

Net loss applicable to common shareholders	$	(49,956	)	$	(24,877	)	$	(52,082	)	$	(156,834	)

Funds From Operations (“FFO”):
Net loss applicable to common shareholders	$	(49,956	)	$	(24,877	)	$	(52,082	)	$	(156,834	)
Depreciation and amortization of real estate investments		54,474			53,026			163,197			161,769
Equity in net loss (income) of joint ventures ^(I)		2,590			4,801			(15,951	)		3,777
Joint ventures’ FFO ^(I)		7,569			10,457			35,158			32,319
Non-controlling interests (OP Units)		24			8			56			24
Gain on disposition of depreciable real estate		(6,602	)		(6,339	)		(9,120	)		(8,394	)

FFO applicable to common shareholders		8,099			37,076			121,258			32,661
Write-off of original preferred share issuance costs ^(L)		—			—			6,402			—
Preferred dividends		6,967			10,567			24,620			31,702

FFO	$	15,066		$	47,643		$	152,280		$	64,363

Per share data:
Earnings per common share
Basic	$	(0.18	)	$	(0.10	)	$	(0.20	)	$	(0.65	)

Diluted	$	(0.18	)	$	(0.10	)	$	(0.20	)	$	(0.65	)

Basic – average shares outstanding		274,639			249,139			268,270			241,679

Diluted – average shares outstanding		274,639			249,139			268,270			241,679

Dividends Declared	$	0.06		$	0.02		$	0.14		$	0.06

Funds From Operations – Basic ^(M)	$	0.03		$	0.15		$	0.45		$	0.13

Funds From Operations – Diluted ^(M)	$	0.03		$	0.14		$	0.36		$	0.13

DDR Corp.

Financial Highlights

(In thousands)


Selected Balance Sheet Data
	September 30, 2011			December 31, 2010
Assets:
Real estate and rental property:
Land	$	1,852,940		$	1,837,403
Buildings		5,494,699			5,491,489
Fixtures and tenant improvements		372,670			339,129

		7,720,309			7,668,021
Less: Accumulated depreciation		(1,537,709	)		(1,452,112	)

		6,182,600			6,215,909
Land held for development and construction in progress		644,028			743,218
Real estate held for sale, net		6,284			—

Real estate, net		6,832,912			6,959,127

Investments in and advances to joint ventures		376,613			417,223
Cash		20,681			19,416
Restricted cash		4,006			4,285
Notes receivable, net		112,458			120,330
Receivables, including straight-line rent, net		118,331			123,259
Other assets, net		138,180			124,450

	$	7,603,181		$	7,768,090

Liabilities & Equity:
Indebtedness:
Revolving credit facilities	$	226,433		$	279,865
Unsecured debt		2,158,931			2,043,582
Mortgage and other secured debt		1,840,357			1,978,553

		4,225,721			4,302,000
Dividends payable		23,585			12,092
Equity derivative liability ^(G)		—			96,237
Other liabilities		249,557			223,074

Total liabilities		4,498,863			4,633,403

Preferred shares ^(L)		375,000			555,000
Common shares ^(M)		27,708			25,627
Paid-in-capital ^(G)		4,136,752			3,868,990
Accumulated distributions in excess of net income		(1,469,432	)		(1,378,341	)
Deferred compensation obligation		12,781			14,318
Accumulated other comprehensive income		1,885			25,646
Less: Common shares in treasury at cost		(13,347	)		(14,638	)
Non-controlling interests		32,971			38,085

Total equity		3,104,318			3,134,687

	$	7,603,181		$	7,768,090

DDR Corp.

Financial Highlights

(A)

Base and percentage rental revenues for the nine-month period ended September 30, 2011, as compared to the prior-year comparable period, increased $6.5 million. This increase consisted of increased leasing activity at comparable portfolio properties, contributing $4.0 million and the acquisition of interests in five shopping centers, generating an additional $3.7 million in revenues offset by a net decrease in revenues from development and redevelopment assets of $1.2 million. Included in rental revenues for the nine-month periods ended September 30, 2011 and 2010, is approximately $0.2 million and $1.7 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 Ended September 30,				Nine-Month Periods Ended September 30,
	2011		2010		2011		2010
Lease termination fees	$	2.6	$	0.5	$	3.9	$	4.1
Financing fees		—		0.3		0.3		0.7
Other miscellaneous		—		0.2		0.5		2.0

	$	2.6	$	1.0	$	4.7	$	6.8

(C)	Operating and maintenance expense, including discontinued operations, includes the following expenses (in millions):


	Three-Month Periods Ended September 30,				Nine-Month Periods Ended September 30,
	2011		2010		2011		2010
Bad debt expense	$	2.3	$	2.9	$	7.1	$	10.2
Ground rent expense ⁽¹⁾		1.1		1.2		3.2		3.7

(1)

Includes non-cash expense of approximately $0.5 million for both of the three-month periods ended September 30, 2011 and 2010, and approximately $1.5 million for both of the nine-month periods ended September 30, 2011 and 2010, related to straight-line ground rent expense.

(D)	The Company recorded impairment charges during the three- and nine-month periods ended September 30, 2011 and 2010, on the following (in millions):


	Three-Month Periods Ended September 30,				Nine-Month Periods Ended September 30,
	2011		2010		2011		2010
Land held for development ⁽¹⁾	$	40.2	$	—	$	40.2	$	54.3
Undeveloped land		2.0		—		5.9		5.0
Assets marketed for sale		9.0		—		22.4		—

Total continuing operations		51.2		—		68.5		59.3

Sold assets or assets held for sale ⁽²⁾		2.4		7.1		11.3		48.4
Assets formerly occupied by Mervyns ⁽³⁾		—		—		—		35.3

Total discontinued operations		2.4		7.1		11.3		83.7

Joint venture investments		—		—		1.6		—

Total impairment charges	$	53.6	$	7.1	$	81.4	$	143.0

DDR Corp.

Financial Highlights

(1)

The 2011 impairment charges primarily related to land held for development in Yaroslavl, Russia and Brampton, Canada. The asset impairments were triggered by the execution of agreements during the third quarter for the sale of the Company’s interest in these projects. The 2010 impairment charges related to land held for development in Togliatti and Yaroslavl, Russia. The Company’s proportionate share of the impairment charges was $36.4 million and $41.9 million after adjusting for the allocation of loss to the non-controlling interest in the consolidated joint venture that owns the Yaroslavl project for the nine months ended September 30, 2011 and 2010, respectively.

(2)

See summary of discontinued operations activity in note (K).

(3)

The Company’s proportionate share of these impairments was $16.5 million after adjusting for the allocation of loss to the non-controlling interest in this previously consolidated joint venture for the nine-month period ended September 30, 2010. These assets were deconsolidated in the third quarter of 2010 and all operating results, including the impairment charges, have been reclassified as discontinued operations. See note (K).

(E)

General and administrative expenses include internal leasing salaries, legal salaries and related expenses associated with the re-leasing of space, which are charged to operations as incurred. For the nine-month periods ended September 30, 2011 and 2010, general and administrative expenses were approximately 5.3% and 5.0% of total revenues, respectively, including joint venture and managed property revenues.

During the nine-month period ended September 30, 2011, the Company recorded a charge of $11.0 million as a result of the termination without cause of its Executive Chairman, the terms of which were pursuant to his amended and restated employment agreement. During the nine-month period ended September 30, 2010, the Company incurred a $2.1 million separation charge related to the departure of an executive officer. Excluding these separation charges, general and administrative expenses were 4.4% and 4.9% of total revenues for the nine-month periods ended September 30, 2011 and 2010, respectively.

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


	Three-Month Periods Ended September 30,				Nine-Month Periods Ended September 30,
	2011		2010		2011		2010
Non-cash interest expense related to amortization of the debt discount	$	3.8	$	1.4	$	11.5	$	5.2
Non-cash adjustment to (loss) gain on repurchase		0.1		—		0.1		4.8

(G)

Represents the non-cash impact of the valuation adjustments for the equity derivative instruments (warrants) issued as part of the share purchase transaction with the Otto Family completed in 2009. The warrants were exercised in full for cash in March 2011 and the related equity derivative liability was reclassified into paid-in-capital at the date of exercise.

DDR Corp.

Financial Highlights

(H)	Other income (expenses) were comprised of the following (in millions):


	Three-Month Periods Ended September 30,						Nine-Month Periods Ended September 30,
	2011			2010			2011			2010
Litigation-related expenses	$	—		$	(3.5	)	$	(2.0	)	$	(13.5	)
Loss on sale of mezzanine note receivable		—			—			(5.0	)		—
Debt extinguishment gain (costs)		0.5			0.3			0.3			(3.3	)
Settlement of lease liability obligation		—			—			2.6			—
Abandoned projects and other expenses		(0.3	)		(0.7	)		(0.7	)		(1.6	)

	$	0.2		$	(3.9	)	$	(4.8	)	$	(18.4	)

(I)

At September 30, 2011 and 2010, the Company had an investment in joint ventures, excluding consolidated joint ventures, in 184 and 198 shopping center properties, respectively. See pages 12-14 of this release for a summary of the combined condensed operating results and select balance sheet data of the Company’s unconsolidated joint ventures.

(J)

During the nine-month period ended September 30, 2011, the Company acquired its partners’ 50% interest in two shopping centers. The Company accounted for both of these transactions as step acquisitions. Due to the change in control that occurred, the Company recorded an aggregate gain associated with the acquisitions related to the difference between the Company’s carrying value and fair value of the previously held equity interest.

(K)	The operating results relating to assets classified as discontinued operations are summarized as follows (in thousands):


	Three-Month Periods Ended September 30,						Nine-Month Periods Ended September 30,
	2011			2010			2011			2010
Revenues from operations	$	1,563		$	7,890		$	10,782		$	27,201

Operating expenses		109			3,571			3,640			14,638
Impairment charges		2,389			7,062			11,272			83,745
Interest, net		500			4,234			3,695			14,909
Depreciation and amortization		474			2,440			3,495			9,899

Total expenses		3,472			17,307			22,102			123,191

Loss before disposition of real estate		(1,909	)		(9,417	)		(11,320	)		(95,990	)
Gain on deconsolidation of interests		4,716			5,221			4,716			5,221
(Loss) gain on disposition of real estate, net		(8,033	)		889			(15,052	)		(2,602	)

Net loss	$	(5,226	)	$	(3,307	)	$	(21,656	)	$	(93,371	)

(L)

In April 2011, the Company redeemed all of its 8.0% Class G cumulative redeemable preferred shares. The Company recorded a non-cash charge of approximately $6.4 million to net loss available to common shareholders in the second quarter of 2011 related to the write-off of the original issuance costs.

DDR Corp.

Financial Highlights

(M)	For purposes of computing FFO and operating FFO per share, the following share information was used (in millions):


	At September 30,
	2011		2010
Common shares outstanding		277.0		256.2
OP Units outstanding (“OP Units”)		0.4		0.4

	Three-Month Periods Ended September 30,				Nine-Month Periods Ended September 30,
	2011		2010		2011		2010
Weighted average common shares outstanding		276.8		251.2		270.4		243.3

Assumed conversion of OP Units		0.4		0.4		0.4		0.4

FFO Weighted average common shares and OP Units – Basic		277.2		251.6		270.8		243.7

Assumed conversion of dilutive securities		0.5		6.3		2.2		6.5

FFO and Operating FFO Weighted average common shares and OP Units – Diluted		277.7		257.9		273.0		250.2

DDR Corp.

Summary Results of Combined Unconsolidated Joint Ventures

(In thousands)

Combined condensed income statements


	Three-Month Periods Ended September 30,						Nine-Month Periods Ended September 30,
	2011			2010			2011			2010
Revenues from operations ^(A)	$	174,735		$	160,440		$	518,279		$	479,095

Operating expenses		57,988			57,847			172,669			181,256
Impairment charges ^(B)		63,041			65			63,041			65
Depreciation and amortization of real estate investments		45,211			46,247			140,501			138,789
Interest expense		56,574			52,532			170,580			169,330

		222,814			156,691			546,791			489,440

(Loss) income from operations before tax expense and discontinued operations		(48,079	)		3,749			(28,512	)		(10,345	)
Income tax expense		(9,434	)		(4,114	)		(26,963	)		(13,947	)

Loss from continuing operations		(57,513	)		(365	)		(55,475	)		(24,292	)
Discontinued operations:
Income (loss) from operations ^(C)		228			(7,583	)		(244	)		(19,742	)
Gain on debt forgiveness ^(D)		—			—			2,976			—
(Loss) gain on disposition ^(E)		(593	)		(13,340	)		21,300			(25,303	)

Loss before gain on disposition of assets		(57,878	)		(21,288	)		(31,443	)		(69,337	)
Gain on disposition of assets		—			—			—			17

Net loss	$	(57,878	)	$	(21,288	)	$	(31,443	)	$	(69,320	)

Non-controlling interests		(6,570	)		10			(11,564	)		(253	)

Net loss attributable to unconsolidated joint ventures		(64,448	)		(21,278	)		(43,007	)		(69,573	)

Net (loss) income at DDR’s ownership interests ^(F)	$	(6,199	)	$	(4,193	)	$	14,240		$	(4,362	)

FFO at DDR’s ownership interests ^(G)	$	7,569		$	10,457		$	35,158		$	32,319

Combined condensed balance sheets


	September 30, 2011			December 31, 2010
Land	$	1,519,924		$	1,566,682
Buildings		4,646,659			4,783,841
Fixtures and tenant improvements		162,398			154,292

		6,328,981			6,504,815
Less: Accumulated depreciation		(805,568	)		(726,291	)

		5,523,413			5,778,524
Land held for development and construction in progress ^(H)		258,986			174,237

Real estate, net		5,782,399			5,952,761
Cash and restricted cash		342,013			122,439
Receivables, including straight-line rent, net		108,486			111,569
Leasehold interests		9,426			10,296
Other assets, net		177,188			181,387

	$	6,419,512		$	6,378,452

Mortgage debt ^(I)	$	3,891,045		$	3,940,597
Notes and accrued interest payable to DDR		98,512			87,282
Other liabilities		227,569			186,333

		4,217,126			4,214,212
Accumulated equity		2,202,386			2,164,240

	$	6,419,512		$	6,378,452

DDR Corp.

Summary Results of Combined Unconsolidated Joint Ventures

(A)	Revenues for the three- and nine-month periods include the following (in millions):


	Three-Month Periods Ended September 30,				Nine-Month Periods Ended September 30,
	2011		2010		2011		2010
Straight-line rents	$	1.0	$	0.9	$	3.6	$	3.0
DDR’s proportionate share		0.2		0.1		0.9		0.4

(B)	For the three- and nine-month periods ended September 30, 2011, impairment charges were recorded on four assets being marketed for sale, of which the Company’s proportionate share of the impairment charges was approximately $6.2 million.

(C)	For the three- and nine-month periods ended September 30, 2010, impairment charges aggregating $8.8 million and $19.7 million, respectively, were reclassified to discontinued operations of which the Company’s proportionate share was approximately $0.3 million and $0.7 million, respectively.

(D)

Gain on debt forgiveness is related to one property owned by an unconsolidated joint venture that was transferred to the lender pursuant to a consensual foreclosure proceeding. The operations of the asset have been reclassified as discontinued operations in the combined condensed income statements for all periods presented.

(E)	Gain on disposition includes the sale of three properties by three separate unconsolidated joint ventures in 2011. The Company’s proportionate share of the aggregate gain for the assets sold for the nine-month period ended September 30, 2011 was approximately $10.5 million.

(F)	Adjustments to the Company’s share of joint venture equity in net income or loss primarily is related to basis differences impacting amortization and depreciation, impairment charges and (loss) gain on dispositions as follows (in millions):


	Three-Month Periods Ended September 30,					Nine-Month Periods Ended September 30,
	2011		2010			2011		2010
Income (loss)	$	3.6	$	(0.6	)	$	1.7	$	0.6

(G)	FFO from unconsolidated joint ventures are summarized as follows (in millions):


	Three-Month Periods Ended September 30,						Nine-Month Periods Ended September 30,
	2011			2010			2011			2010
Net loss attributable to unconsolidated joint ventures	$	(64.5	)	$	(21.3	)	$	(43.0	)	$	(69.6	)
Gain on sale of real estate		—			—			(22.7	)		—
Depreciation and amortization of real estate investments		45.4			47.8			138.5			149.8

FFO	$	(19.1	)	$	26.5		$	72.8		$	80.2

FFO at DDR ownership interests	$	7.6		$	10.5		$	35.2		$	32.3

Operating FFO at DDR’s ownership interests ⁽¹⁾	$	13.9		$	13.6		$	42.7		$	38.7

DDR joint venture distributions received, net ⁽²⁾	$	11.3		$	7.3		$	57.0		$	29.3

DDR Corp.

Summary Results of Combined Unconsolidated Joint Ventures

(1)

Excluded from operating FFO is the Company’s pro rata share of net charges included in equity in net income of joint ventures primarily related to impairment charges, gain on debt forgiveness and losses on the disposition of assets as disclosed on page 2 of this press release.

(2)

Includes loan repayments in 2011 of $23.0 million from the Company’s unconsolidated joint venture, which has assets located in Brazil.

(H)	The Company’s proportionate share of joint venture land held for development and construction in progress aggregated approximately $86.7 million and $71.7 million at September 30, 2011 and December 31, 2010, respectively.

(I)

The Company’s proportionate share of joint venture debt aggregated approximately $789.1 million and $833.8 million at September 30, 2011 and December 31, 2010, respectively. The $789.1 million includes approximately $48.2 million of non-recourse debt associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income, loss or FFO.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

FINANCIAL HIGHLIGHTS

(In Millions Except Per Share Information)


	Nine Months Ended September 30,			Year Ended December 31,
	2011			2010			2009
FUNDS FROM OPERATIONS:
Net Loss Applicable to Common Shareholders	$	(52.1	)	$	(251.6	)	$	(398.9	)
Depreciation and Amortization of Real Estate Investments		163.2			217.2			224.2
Equity in Net Loss (Income) of Joint Ventures		(16.0	)		(5.6	)		9.3
Joint Venture Funds From Operations		35.1			47.5			43.7
Non-Controlling Interests (OP Units)		0.1			—			0.2
Gain on Disposition of Depreciable Real Estate		(9.1	)		(18.8	)		(23.1	)

FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS		121.2			(11.3	)		(144.6	)
Write-off of Original Preferred Share Issuance Costs		6.4			—			—
Preferred Dividends		24.6			42.3			42.3

FUNDS FROM OPERATIONS	$	152.2		$	31.0		$	(102.3	)

Net non-operating items excluded from FFO (1)		73.8			275.6			442.8

OPERATING FFO AVAILABLE TO COMMON SHAREHOLDERS	$	195.0		$	264.3		$	298.2

PER SHARE INFORMATION:
Funds From Operations - Diluted	$	0.36		$	(0.05	)	$	(0.90	)
Operating FFO - Diluted	$	0.71		$	1.04		$	1.83
Net Loss - Diluted	$	(0.20	)	$	(1.03	)	$	(2.51	)
Dividends	$	0.14		$	0.08		$	0.44

COMMON SHARES & OP UNITS:
Outstanding		277.4			256.6			202.0
Weighted average - Diluted (FFO)		273.0			247.0			160.1
Weighted average - Diluted (Operating FFO)		273.0			254.4			163.2

GEN. & ADMIN. EXPENSES (2)	$	65.3		$	85.6		$	94.4

REVENUES:
DDR Revenues	$	600.9		$	815.1		$	843.3
Joint Venture & Managed Revenues		638.3			840.6			902.0

TOTAL REVENUES (3)	$	1,239.2		$	1,655.7		$	1,745.3

GEN. & ADMIN. EXPENSES AS A PERCENTAGE OF TOTAL REVENUES (2)		5.3	%		5.2	%		5.4	%

NET OPERATING INCOME:
DDR Net Operating Income	$	410.6		$	560.9		$	581.6
Joint Venture Net Operating Income (at 100%)		347.1			428.1			532.3

TOTAL NET OPERATING INCOME (3)	$	757.7		$	989.0		$	1,113.9

REAL ESTATE AT COST:
DDR Real Estate at Cost	$	8,379.7		$	8,411.2		$	8,823.7
Joint Venture Real Estate at Cost (at 100%)		6,588.0			6,679.1			7,266.8

TOTAL REAL ESTATE AT COST	$	14,967.7		$	15,090.3		$	16,090.5

(1)	See Reconciliation of Non-GAAP Financial Measures for detail of net non-operating items.

(2)

The 2011 results include an executive separation charge of $11.0 million. Excluding this charge, general and administrative expenses were approximately 4.4% of total revenues for the nine months ended September 30, 2011. The 2010 results also 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.

(3)	Includes activities from discontinued operations.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Financial Ratios and Ratings

(In Millions, Except Ratios)


	Covenant Threshold	Actual Covenants Twelve Months Ended September 30, 2011
PUBLIC DEBT COVENANTS:
Total Debt to Real Estate Assets Ratio	not to exceed 65%		49	%
Secured Debt to Assets Ratio	not to exceed 40%		21	%
Value of Unencumbered Assets to Unsecured Debt	at least 135%		221	%
Fixed Charge Coverage Ratio	at least 1.5x		1.8x


	Nine Months Ended September 30,			Year Ended December 31,
	2011			2010			2009
DIVIDEND PAYOUT RATIO:
Common Share Dividends and Operating Partnership Interests	$	38.4		$	20.2		$	64.7	(1)
Operating FFO Available to Common Shareholders	$	195.0		$	264.3		$	298.2

		19.7	%		7.7	%		21.7	%(1)



	Debt Rating	Outlook
CREDIT RATINGS:
Moody’s	Baa3	Stable
Fitch	BB	Positive
S&P	BB+	Stable

(1)	Includes the issuance of common shares with an aggregate value of $50.8 million resulting in a cash payout ratio of 3.1% in 2009.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Total Market Capitalization as of September 30, 2011

(In Millions)


	September 30, 2011					December 31, 2010
	Amount		Percentage of Total			Amount		Percentage of Total
Common Shares Equity	$	3,023.2		39	%	$	3,614.9		42	%
Perpetual Preferred Stock		375.0		5	%		555.0		7	%
Fixed-Rate Senior Convertible Notes		535.8		7	%		637.6		7	%
Fixed-Rate Unsecured Debt		1,669.6		22	%		1,464.0		17	%
Fixed-Rate Mortgage Debt		1,244.8		16	%		1,234.5		14	%
Variable-Rate Mortgage Debt		95.6		1	%		144.0		2	%
Variable-Rate Revolving Credit and Term Debt		526.4		7	%		729.9		9	%
Fixed-Rate Revolving Credit and Term Debt		200.0		3	%		150.0		2	%

Total	$	7,670.4		100	%	$	8,529.9		100	%

Debt to Market Capitalization		55.7%					51.1%

•

Market value ($10.90 per share as of September 30, 2011 and $14.09 per share as of December 31, 2010) includes common shares outstanding (277.0 million as of September 30, 2011 and 256.2 million as of December 31, 2010) and operating partnership units equivalent to approximately 0.4 million of the Company’s common shares in each year.

•

Debt outstanding excludes accretion adjustment of $46.4 million and $58.0 million recorded at September 30, 2011 and December 31, 2010, 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 $21.7 million and $22.1 million at September 30, 2011 and December 31, 2010, respectively.

•

Does not include proportionate share of unconsolidated joint venture debt aggregating $789.1 million and $833.8 million at September 30, 2011 and December 31, 2010, respectively.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011


(In Millions)	Quarter ended			Quarter ended
	September 30, 2011			December 31, 2010
Debt to EBITDA - consolidated
EBITDA:
Net loss attributable to DDR	$	(43.0	)	$	(84.2	)

Adjustments:
Impairment charges		51.2			28.9
Executive separation charges		0.3			3.2
Depreciation and amortization		56.2			57.5
Depreciation attributable to non-controlling interests		—			(0.1	)
Interest expense		58.2			59.8
Interest expense attributable to non-controlling interests		—			(0.1	)
Loss on equity derivative instruments		—			25.5
Other (income) expenses, net		(0.2	)		6.0
Equity in net loss (income) of joint ventures		2.6			(9.4	)
Impairment of joint venture investments		—			0.2
Loss (gain) on debt retirement, net		0.1			(0.2	)
Income tax expense		0.3			49.5
EBITDA adjustments from discontinued operations (1)		6.1			(8.0	)
Gain on disposition of real estate, net		(6.6	)		(1.3	)
Impairment charges applicable to non-controlling interests		(3.8	)		—

EBITDA before JVs	$	121.4		$	127.3
Pro rata share of JV FFO		7.6			15.2
Pro rata share of JV impairments and (gain) loss on disposition of assets		6.3			0.5

EBITDA Consolidated	$	135.3		$	143.0
EBITDA Consolidated - annualized	$	541.2		$	572.0

Consolidated indebtedness	$	4,225.7		$	4,302.0
Non-controlling interests’ share of consolidated debt		(21.7	)		(22.1	)
Adjustment to reflect convertible debt at face value		46.4			58.0

Total consolidated indebtedness	$	4,250.4		$	4,337.9
Cash and restricted cash		(24.7	)		(23.7	)

Total consolidated indebtedness, net of cash	$	4,225.7		$	4,314.2

Debt/EBITDA - consolidated		7.81			7.54


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

Debt to EBITDA - pro rata
EBITDA before JVs	$	121.4		$	127.3
Pro rata share of JV EBITDA		27.2			30.4

EBITDA including pro rata share of JVs	$	148.6		$	157.7
EBITDA including pro rata share of JVs - annualized	$	594.4		$	630.8

Total consolidated indebtedness, net of cash	$	4,225.7		$	4,314.2
Pro rata share of JV debt (2)		789.1			833.8

Total pro rata indebtedness	$	5,014.8		$	5,148.0
Pro rata share of JV cash and restricted cash		(96.9	)		(32.6	)

Pro rata indebtedness, net of cash	$	4,917.9		$	5,115.4

Debt/EBITDA - pro rata		8.27			8.11


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

Notes:
(1) Discontinued operations includes the following EBITDA adjustments:


Impairment charges	$	2.4		$	—
Gain on change in control of interests		(4.7	)		—
Interest expense, net		0.5			0.2
Depreciation and amortization		0.5			0.2
Loss (gain) on disposition of real estate, net		8.0			(8.4	)
Debt extinguishment gains		(0.5	)		—
Other		(0.1	)		—

	$	6.1		$	(8.0	)

(2)

Includes $48.2 million and $47.7 million at September 30, 2011 and December 31, 2010, respectively, of debt representing the Company’s 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.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

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 revenue and recognized upon termination of a tenant’s lease, which generally coincides with the receipt of cash.

•

Base rental revenue includes income from ground leases of $15.9 million for the nine months ended September 30, 2011.

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 nine months ended September 30, 2011, the Company expensed $6.3 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 property’s estimated undiscounted future cash flows, including estimated proceeds from disposition.

•

Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets as follows:


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

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

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.

•

The Company accounts for the acquisition of a partner’s interest in an unconsolidated joint venture in which a change in control of the asset has occurred at fair value.

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.


	Nine Months
	Ended
	September 30,		Year Ended December 31,
Capitalized Costs (In Millions)	2011		2010		2009
Interest expense	$	9.4	$	12.2	$	21.8
Construction administration costs	$	6.7	$	8.8	$	10.9

•

Interest and real estate taxes incurred during the construction period are capitalized and depreciated over the building life.

•

During the nine months ended September 30, 2011, the Company expensed $3.2 million in operating costs related to development projects that have been suspended.

Gains on Sales of Real Estate

•

Gains on sales of real estate generally related to the sale of outlots and land adjacent to existing shopping centers are recognized at closing when the earnings process is deemed to be complete.

•

Gains or losses on the sales of operating shopping centers are reflected as discontinued operations.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

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
	Nine Months		Nine Months
	Ended		Ended
Capital Expenditures (In Millions)	September 30, 2011		September 30, 2011
Leasing	$	27.5	$	4.4
Maintenance		5.6		0.7

Total Capital Expenditures	$	33.1	$	5.1


Per Square Foot of Owned GLA
Leasing	$	0.59	$	0.64
Maintenance		0.12		0.09

Total Capital Expenditures	$	0.71	$	0.73

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. This value has not been adjusted to reflect changes in market activity subsequent to December 31, 2010.

Non-Income Producing Assets

•

There are ten consolidated shopping centers and the Company’s 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 September 30, 2011.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Reconciliation of Supplemental Non-GAAP Financial Measures

Same Store NOI

(In Millions)

Same Store Net Operating Income (NOI) represents shopping center assets owned for comparable periods (15 months for quarter 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						Nine Months Ended
	September 30,						September 30,
	2011		2010				2011		2010
Total Same Store NOI	$	210.4	$	202.9	3.7	%	$	630.4	$	607.7	3.7	%
Property NOI from other operating segments		39.6		31.5				116.5		93.3

Combined NOI - DDR & Joint Ventures	$	250.0	$	234.4			$	746.9	$	701.0

Reconciliation to Income Statement


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Total Revenues - DDR	$	196.4		$	193.0		$	590.1		$	583.5
Total Revenues - Combined Joint Ventures		172.1			160.4			515.6			479.1
Operating and Maintenance - DDR		(34.0	)		(32.5	)		(106.9	)		(100.3	)
Real Estate Taxes - DDR		(26.5	)		(28.7	)		(79.2	)		(80.0	)
Operating and Maintenance and Real Estate Taxes - Combined Joint Ventures		(58.0	)		(57.8	)		(172.7	)		(181.3	)

Combined NOI - DDR & Joint Ventures	$	250.0		$	234.4		$	746.9		$	701.0

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Reconciliation of Supplemental Non-GAAP Financial Measures

(In Millions)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
FUNDS FROM OPERATIONS:
Net Loss Applicable to Common Shareholders	$	(50.0	)	$	(24.9	)	$	(52.1	)	$	(156.8	)
Depreciation and Amortization of Real Estate Investments		54.5			53.0			163.2			161.8
Equity in Net Loss (Income) of Joint Ventures		2.6			4.8			(16.0	)		3.8
Joint Venture Funds From Operations		7.6			10.5			35.1			32.3
Non-Controlling Interests (OP Units)		—			0.0			0.1			0.0
Gain on Disposition of Depreciable Real Estate		(6.6	)		(6.3	)		(9.1	)		(8.4	)

FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS	$	8.1		$	37.1		$	121.2		$	32.7

Write-off of original preferred share issuance costs		—			—			6.4			—
Preferred Dividends		7.0			10.6			24.6			31.7

FUNDS FROM OPERATIONS	$	15.1		$	47.7		$	152.2		$	64.4

OPERATING FFO:
Non-cash impairment charges - consolidated assets	$	51.2		$	—		$	68.5		$	59.3
Executive separation charges		0.3			—			11.0			2.1
Loss (gain) on debt retirement, net		0.1			(0.3	)		0.1			(0.3	)
Non-cash (gain) loss on equity derivative instruments		—			11.3			(21.9	)		14.6
Other (income) expense, net - litigation, net of tax, debt extinguishment (gain) costs, lease liability settlement, note receivable reserve and other expenses		(0.2	)		3.9			4.8			16.0
Equity in net income of joint ventures - loss on asset sales net of gain on debt forgiveness loss on asset sales and impairment charges		6.3			3.0			7.5			6.4
Impairment of joint venture investments		—			—			1.6			—
Gain on change in control of interests		—			—			(22.7	)		—
Discontinued operations - non-cash consolidated impairment charges, loss on sales and gain on debt extinguishment		10.5			12.4			27.4			94.2
Discontinued operations - FFO associated with Mervyns Joint Venture, net of non-controlling interest		—			1.0			—			4.8
Discontinued operations - gain on deconsolidation of interests		(4.7	)		(5.2	)		(4.7	)		(5.2	)
Gain on disposition of real estate (land), net		(0.4	)		—			(0.4	)		—
Non-controlling interest - portion of impairment charges allocated to outside partners		(3.8	)		—			(3.8	)		(31.2	)
Write-off of original preferred share issuance costs		—			—			6.4			—

TOTAL NON-OPERATING ITEMS	$	59.3		$	26.1		$	73.8		$	160.7
FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS		8.1			37.1			121.2			32.7

OPERATING FFO AVAILABLE TO COMMON SHAREHOLDERS	$	67.4		$	63.2		$	195.0		$	193.4


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
ADDITIONAL NON-CASH DISCLOSURES (Income)/Expense:
Below Market Rent Revenue*	$	(1.1	)	$	(0.1	)	$	(2.8	)	$	(0.3	)
Debt Premium Amortization Revenue*		(0.4	)		(0.7	)		(1.5	)		(2.3	)
Convertible Debt Accretion Expense		3.8			1.4			11.5			5.2
Straight-Line Rent Revenue		(0.1	)		(0.4	)		(0.2	)		(1.7	)
Straight-Line Ground Rent Expense*		0.5			0.5			1.5			1.5
Joint Venture Straight-Line Rent Revenue		(1.0	)		(0.9	)		(3.6	)		(3.0	)
DDR’s Prorata Share of Straight-Line Rent Revenue		(0.2	)		(0.1	)		(0.9	)		(0.4	)

*	Prorata share of joint venture is deminis

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Reconciliation of Supplemental Non-GAAP Financial Measures

Consolidated Transactional Income

(In Millions)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Included in FFO:
Gain (Loss) on Dispositions, Net of Tax	$	(0.4	)	$	0.1		$	(0.5	)	$	(0.6	)
Loss on Dispositions from Discontinued Operations		(8.4	)		(5.4	)		(16.6	)		(10.7	)
Land Sale Gain (Loss)		0.8			—			1.0			0.4

	$	(8.0	)	$	(5.3	)	$	(16.1	)	$	(10.9	)

NOT Included in FFO:
Gain on Dispositions, Net of Tax	$	6.2		$	—		$	7.5		$	0.3
Gain on Sales from Discontinued Operations		0.4			6.3			1.6			8.1

	$	6.6		$	6.3		$	9.1		$	8.4		FFO Reconciliation


Reconciliation to Income Statement

Gain on Disposition of Real Estate, Net of Tax
Gain (Loss) on Dispositions, Net of Tax	$	(0.4	)	$	0.1		$	(0.5	)	$	(0.6	)
Land Sale Gain (Loss)		0.8			—			1.0			0.4
Gain on Dispositions, Net of Tax		6.2			—			7.5			0.3

	$	6.6		$	0.1		$	8.0		$	0.1		Consolidated Income Statement

Gain (Loss) on Disposition of Real Estate From Discontinued Operations, Net of Tax
Gain (Loss) on Dispositions from Discontinued Operations	$	(8.0	)	$	0.9		$	(15.0	)	$	(2.6	)	Footnote K to the Press Release

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Reconciliation of Supplemental Non-GAAP Financial Measures

Joint Venture Transactional Income

(In Millions)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Included in FFO:
Loss on Sales from Discontinued Operations	$	(0.6	)	$	(13.3	)	$	(1.5	)	$	(25.3	)
Land Sale Gains and Loss on Disposition of Real Estate		—			—			—			—

	$	(0.6	)	$	(13.3	)	$	(1.5	)	$	(25.3	)

DDR’s Proportionate Share	$	(0.1	)	$	(2.8	)	$	(2.0	)	$	(4.1	)

NOT Included in FFO:
Gain (Loss) on Dispositions	$	—		$	—		$	—		$	—
Gain on Sales from Discontinued Operations					—			22.8			—

	$	—		$	—		$	22.8		$	—

DDR’s Proportionate Share	$	—		$	—		$	12.5		$	—

Reconciliation to Income Statement


Gain on Sales of Real Estate
Land Sale Gains and Loss on Disposition of Real Estate	$	—		$	—		$	—	$	—
Gain (Loss) on Dispositions		—			—			—		—

	$	—		$	—		$	—	$	—		Gain on Disposition of Assets

Gain (Loss) on Disposition of Real Estate From Discontinued Operations
Gain (Loss) on Sales from Discontinued Operations	$	(0.6	)	$	(13.3	)	$	21.3	$	(25.3	)	Loss on Disposition of Discontinued Operations

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Joint Venture Investment Summary ⁽¹⁾


						All Values at 100% (In Millions)
Legal Name	Partner(s)	DDR Ownership %	Number of Operating Properties			Gross Leasable Area		Total Annualized Rent		Gross Asset Book Value		Debt
Unconsolidated Joint Ventures
DDRTC Core Retail Fund, LLC	An Affiliate of TIAA-CREF	15%		42			11.6	$	134.9	$	2,231.6	$	1,212.0
DDR Domestic Retail Fund I	Various Institutional Investors	20%		63			8.2		91.0		1,480.5		951.5
Sonae Sierra Brasil BV Sarl	Sonae Sierra, SGPS, SA	33.3%		10			3.7		132.7		738.8		175.9
DDRA Community Centers Five, L.P.	DRA Advisors	50%		3			1.3		18.8		183.4		211.0
Coventry II Joint Ventures	Coventry II Fund	20%		5			2.1		26.6		442.8		297.8
RVIP Structures/ DPG Realty Holdings LLC	Prudential RE Advisors/ Prudential Insurance	10% -25.75%		3			0.5		10.7		109.3		75.0
DDR-SAU Retail Fund, LLC	State of Utah	20%		27			2.3		23.1		305.6		183.1
DDR Markaz II LLC	Kuwait Financial Centre	20%		13			1.6		15.7		206.2		150.5
TRT DDR Venture I General Partnership	Dividend Capital Total Realty Trust	10%		3			0.5		9.2		160.3		110.0
Other Unconsolidated JV Interests	Various	Various		15			2.0		16.3		192.0		110.0

				184			33.8	$	479.0	$	6,050.5	$	3,476.8

Unconsolidated Joint Ventures - No Economic Interests
Coventry II Joint Ventures	Coventry II Fund	10% -20%		41	⁽²⁾		3.2	$	28.4		415.3		328.2
Other Unconsolidated Interests	Various	0%		6			0.6		8.4		122.2		86.0

Total Unconsolidated Joint Ventures				231			37.6	$	515.8	$	6,588.0	$	3,891.0

⁽¹⁾	DDR’s 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.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Joint Venture Combining Financial Statements

(In Millions)

Combining Balance Sheets


	Total Unconsolidated JVs ⁽¹⁾
	September 30, 2011			December 31, 2010
Land	$	1,519.9		$	1,566.7
Buildings		4,646.7			4,783.8
Fixtures and tenant improvements		162.4			154.3

		6,329.0			6,504.8
Less: Accumulated depreciation		(805.6	)		(726.3	)

		5,523.4			5,778.5
Land held for development and construction in progress		259.0			174.3

Real estate, net		5,782.4			5,952.8
Cash and restricted cash		342.0			122.4
Receivables, including straight-line rent, net		108.5			111.6
Leasehold interests		9.4			10.3
Other assets, net		177.2			181.3

	$	6,419.5		$	6,378.4

Mortgage debt	$	3,891.0	⁽³⁾	$	3,940.6	⁽³⁾
Notes and accrued interest payable to DDR		98.5			87.3
Other liabilities		227.6			186.3

		4,217.1			4,214.2
Accumulated equity		2,202.4			2,164.2

	$	6,419.5		$	6,378.4


	DDR’s Proportionate Share ⁽¹⁾
	September 30, 2011			December 31, 2010
Land	$	291.7		$	320.0
Buildings		934.5			1,047.0
Fixtures and tenant improvements		39.0			44.8

		1,265.2			1,411.8
Less: Accumulated depreciation		(179.3	)		(184.3	)

		1,085.9			1,227.5
Land held for development and construction in progress		86.7			71.7

Real estate, net		1,172.6			1,299.2

Cash and restricted cash		104.3			39.0
Receivables, including straight-line rent, net		26.8			33.1
Leasehold interests		1.9			2.1
Other assets, net		42.6			48.3
Disproportionate share of equity		(21.5	)⁽²⁾		(32.8	)⁽²⁾

	$	1,326.7		$	1,388.9

Mortgage debt	$	789.1	⁽³⁾	$	833.8	⁽³⁾
Notes and accrued interest payable to DDR		11.8			10.6
Other liabilities		51.9			51.6

		852.8			896.0
Accumulated equity		490.6			525.7
Disproportionate share of equity		(16.7	)⁽²⁾		(32.8	)⁽²⁾

	$	1,326.7		$	1,388.9

⁽¹⁾	The financial statements of Sonae Sierra Brasil are translated into U.S. dollars using the exchange rate at each balance sheet date for assets and liabilities.

⁽²⁾	Adjustments represent the effect of promoted equity structures and minority interests.

⁽³⁾

Includes approximately $300.8 million and $298.4 million of mortgage debt at September 30, 2011 and December 31, 2010, respectively, of which the Company’s prorata share of non-recourse mortgage debt is $48.2 million and $47.7 million, respectively, associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Joint Venture Combining Financial Statements

(In Millions)

Combining Statements of Operations


	Total Unconsolidated JVs ⁽¹⁾						DDR’s Proportionate Share⁽¹⁾
	Nine-Month Period Ended September 30, 2011			Three-Month Period Ended September 30, 2011			Three-Month Period Ended September 30, 2011
Revenues from operations	$	518.3		$	174.7		$	39.5
Rental operation expenses		(172.7	)		(58.0	)		(11.7	)
Impairment charges		(63.0	)		(63.0	)		(9.8	)

Net operating income		282.6			53.7			18.0	⁽³⁾
Depreciation and amortization expense		(140.5	)		(45.2	)		(8.3	)
Interest expense		(170.6	)		(56.6	)		(10.7	)

Loss before gain on sale of real estate		(28.5	)		(48.1	)		(1.0	)
Income tax expense		(27.0	)		(9.4	)		(3.1	)
Discontinued operations		(0.2	)		0.2			—
Gain on debt foregiveness		3.0			—			—
Gain (loss) on disposition of discontinued operations		21.3			(0.6	)		(0.1	)
Disproportionate share of income (loss)		—			—			(2.0	)⁽²⁾⁽³⁾

Net loss	$	(31.4	)	$	(57.9	)	$	(6.2	)
Non-controlling interests	$	(11.6	)	$	(6.6	)	$	(2.2	)

Net loss attributable to unconsolidated joint ventures	$	(43.0	)	$	(64.5	)	$	(8.4	)
DDR ownership interests	$	14.2		$	(6.2	)	$	(8.4	)
Amortization of basis differential		1.7			3.6			—

	$	15.9		$	(2.6	)	$	(8.4	)

Funds From Operations

Net loss attributable to unconsolidated joint ventures	$	(43.0	)	$	(64.5	)	$	(8.4	)
Depreciation of real property		138.5			45.4			8.4
Gain on sale of real estate		(22.7	)		—			—
Disproportionate share of income		—			—			7.6	⁽²⁾

	$	72.8		$	(19.1	)	$	7.6

DDR ownership interests	$	35.2		$	7.6

⁽¹⁾	The financial statements of Sonae Sierra Brasil are translated into U.S. dollars using an average exchange rate for each period for revenues, expenses, gains and losses.

⁽²⁾	Adjustments represent the effect of promoted equity structures and minority interests.

⁽³⁾	DDR’s prorata share of NOI including discontinued operations and promoted equity structures and minority interests is $27.2 million for the three-month period ended September 30, 2011.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Summary of Property Acquisitions and Dispositions

($ In Millions, GLA in Thousands of SF)

Property Acquisitions


Acquisition Date	Location	Ownership Interest Acquired			Aggregate Proportionate Purchase Price		Total GLA
Q1 2011	OH and MN		50	%	$	39.9		520.5	⁽¹⁾
Q3 2011	CO and NC		100	%		110.0		463.7	⁽²⁾

Total Acquisitions					$	149.9		984.2

(1)	In conjunction with the acquisition of our partner’s ownership interest in one of the assets, the Company entered into a new $21 million, 11-year mortgage loan.

(2)	In conjunction with the acquisition of three properties (two located in North Carolina and one located in Colorado), the Company assumed three mortgage loans with a face value aggregating $67 million and a fair value aggregating $71.4 million.

Property Dispositions


Disposition Date	Location	DDR’s Effective Ownership			Joint Venture	Total GLA		Gross Sales Price		Relinquished Debt
01/11	Augusta, GA		15	%	DDRTC Core		22.6	$	0.7	$	0.8
02/11	Austin, TX		26	%	Prudential		282.8		29.0		21.0
02/11	Wilmington, NC		100	%	-		51.9		3.5		—
02/11	Twinsburg, OH		100	%	-		35.9		1.8		—
04/11	Chili, NY		100	%	-		120.0		6.6		—
05/11	Two Bi Lo Locations		100	%	-		105.9		13.1		—
05/11	Orangeburg, SC		100	%	-		50.8		4.3		—
05/11	Eagan, MN		50	%	DRA		277.0		50.3		35.6
05/11	Cary, NC		100	%	-		88.4		10.1		—
05/11	Two Rite Aid Locations		100	%	-		21.8		5.1		—
06/11	Gaylord, MI		100	%	-		188.2		4.0		—
06/11	East Hanover, NJ		100	%	-		70.8		15.8		—
06/11	Garland, TX		100	%	-		70.6		0.6		—
07/11	San Antonio, TX		100	%	-		88.9		7.1		—
07/11	Richmond, KY		100	%	-		134.7		5.5		—
07/11	Griffin, GA		100	%	-		64.8		0.2		—
07/11	Columbus, OH		100	%	-		356.5		13.3		10.5
07/11	Spartanburg, SC		100	%	-		10.9		2.5		—
08/11	Daytona Beach, FL		100	%	-		76.1		7.8		—
08/11	Jacksonville, FL		100	%	-		182.1		0.8		—
08/11	Xenia, OH		100	%	-		112.4		4.0		—
08/11	Elyria, OH		100	%	-		142.8		0.8		—
09/11	Raleigh, NC		100	%	-		75.9		7.7		—
09/11	Tarpon Springs, FL		100	%	-		84.2		6.5		—
Various	Various		100	%	-		—		13.2		—

Total Dispositions							2,716.0	$	214.3	$	67.9

Total Dispositions - Q3 2011							1,329.3	$	59.1	$	10.5

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Summary of Wholly-Owned and Consolidated Land Held for Development and Construction in Progress

($ In Millions, GLA in Thousands of SF)


	As of September 30, 2011						2011 Activity
	Land		CIP		Total		Net Expenditures Year to Date ⁽¹⁾			Net Projected Expenditures 4Q 2011⁽¹⁾			Placed In Service Year to Date		To Be Placed In Service 4Q 2011
Ground up Development Projects in Progress	$	34.4	$	38.7	$	73.1	$	1.0		$	(0.4	)	$	32.7	$	5.8
Ground up Development Projects Primarily on Hold		326.0		157.7		483.7		(5.8	)		(22.5	)		—		—
Substantially Completed Projects Pending Lease up		25.5		17.3		42.8		4.7			2.6			20.9		22.2
Redevelopment Projects		—		36.6		36.6		15.3			22.8			17.9		19.2
Leasing Capital Expenditures		—		7.8		7.8		27.5			16.0			33.3		16.4

Total	$	385.9	$	258.1	$	644.0	$	42.7		$	18.5		$	104.8	$	63.6

Summary of Significant Wholly-Owned and Consolidated Development Projects in Progress


Location	Project Name	Total GLA		Owned GLA		Estimated Net Cost ⁽¹⁾		Cost Incurred To Date		Assets Placed in Service		Major Anchors
Boise (Nampa), ID	Nampa Gateway Center		830.9		419.3	$	126.7	$	127.5	$	95.4	JC Penney, Macy’s, The Sports Authority, Idaho Athletic Club, Regal Cinemas
Austin (Kyle), TX ⁽²⁾	Kyle Marketplace		805.6		443.1		77.3		62.0		21.0	Target, Kohl’s

			1,636.5		862.4		$204.0		$189.5		$116.4

Total Land Held for Development and CIP for Ground up Development Projects in Progress at September 30, 2011:										$	73.1

Summary of Significant Wholly-Owned and Consolidated Redevelopment Projects


Location	Project Name	Total GLA		Owned GLA		Estimated Net Cost ⁽¹⁾		Cost Incurred To Date		Assets Placed in Service		Major Anchors
Denver, CO	Tamarac Square		151.3		12.0	$	1.7	$	2.6	$	—	Target
Miami (Plantation), FL	The Fountains		273.4		273.4		51.7		47.6		38.7	Kohl’s, Dick’s Sporting Goods, Marshalls/HomeGoods
Bayamon, PR	Rexville Plaza		43.8		43.8		6.1		0.3		—	CVS
Carolina, PR	Plaza Escorial		17.0		17.0		2.4		1.4		—	PetSmart
Hatillo, PR	Plaza Del Norte		88.7		88.7		8.2		2.4		1.2	JC Penney, Walmart, Sears
Charleston, SC	Ashley Crossings		95.0		95.0		5.0		4.0		2.7	Kohl’s, Marshalls
San Antonio, TX ⁽²⁾	Terrell Plaza		225.7		90.8		4.7		3.3		—	Target

			894.9		620.7	$	79.8	$	61.6	$	42.6

CIP for projects listed above:										$	19.0
CIP for other Redevelopment Projects:											17.6

Total amount included in CIP at September 30, 2011 for Redevelopment Projects:										$	36.6

(1)	Includes receipts and expected future reductions from land sales and reimbursements.

(2)	Consolidated 50% Joint Venture

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Summary of Joint Venture Land Held for Development and Construction in Progress

($ In Millions, GLA in Thousands of SF)


	As of September 30, 2011						2011 Activity
	Land		CIP		Total		Net Expenditures Year to Date ⁽¹⁾		Net Projected Expenditures 4Q 2011⁽¹⁾		Placed In Service Year to Date		To Be Placed In Service 4Q 2011
Ground up Development Projects in Progress	$	44.6	$	129.5	$	174.1	$	81.3	$	52.3	$	—	$	—
Ground up Development Projects Primarily on Hold		23.3		2.7		26.0		0.7		0.1		—		—
Substantially Completed Projects Pending Lease up		2.1		17.0		19.1		2.8		2.2		18.4		2.6
Redevelopment Projects		—		33.1		33.1		24.0		11.0		3.8		37.6
Leasing Capital Expenditures		—		6.7		6.7		23.7		14.0		23.3		18.6

Total	$	70.0	$	189.0	$	259.0	$	132.5	$	79.6	$	45.5	$	58.8

Summary of Significant Joint Venture Development Projects in Progress


Location	Project Name	DDR’s Effective Ownership			Total GLA		Owned GLA		Estimated Net Cost ⁽¹⁾		Cost Incurred To Date		Assets Placed in Service		Major Anchors
Goiania, Brazil	Passeio Das Aguas		33.3	%		806.4		806.4	$	212.8	$	28.7	$	—	Bretas, Cinemark, Magic Games
Londrina, Brazil	Boulevard Londrina		28.2	%		518.2		518.2		123.6		64.1		—	Walmart, Cinemark, Centuaro, Magazine Luiza, Kalunga, Luiggi Bertolli, Renner, Saraiva, Memove
Uberlandia, Brazil	Patio Uberlandia		33.3	%		487.7		487.7		104.3		81.3		—	Walmart, Cinemark, Centuaro, Leroy Merlin, Renner, Fast Shop, Kalunga, Livraria Leitura, Memove, B-Mart

						1,812.3		1,812.3	$	440.7	$	174.1	$	—

Total Land Held for Development and CIP for Ground up Development Projects in Progress at September 30, 2011:													$	174.1

Summary of Significant Joint Venture Redevelopment Projects


Location	Project Name	DDR’s Effective Ownership			Total GLA		Owned GLA		Estimated Net Cost ⁽¹⁾		Cost Incurred To Date		Assets Placed in Service		Major Anchors
Sao Paulo, Brazil	Campo Limpo Shopping Center		6.7	%		28.1		28.1	$	3.6	$	3.1	$	—	B-Mart, Parking & Games, Extra, MovieCom, Casas Bahia, C&A
Sao Paulo, Brazil	Metropole Shopping Center		33.3	%		94.0		94.0		31.5		28.0		—	Fast Shop, PlayArte, Outback, Lojas Americanas, Renner, C&A

						94.0		94.0	$	35.1	$	31.1	$	—

CIP for projects listed above:													$	28.0
CIP for other Redevelopment Projects:														5.1

Total amount included in CIP at September 30, 2011 for Redevelopment Projects:													$	33.1

(1)	Includes receipts and expected future reductions from land sales and reimbursements.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Ground up Development Projects Primarily on Hold

(In Millions)


MSA (Location)	DDR’s Effective Ownership			Total 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 (8 sites)		100	%		Various

					1,007.6


Wholly-owned and consolidated projects included in Land Held for Development and CIP:				$	483.7	⁽¹⁾
Unconsolidated joint venture projects included in Land Held for Development and CIP:					26.0	⁽²⁾

Total Ground up Development Projects Primarily on Hold at September 30, 2011:				$	509.7

(1)	Includes partners’ ownership interest of $107.7 million.

(2)	DDR’s prorata share is $13 million.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Total Portfolio Characteristics


			MSF at		MSF at
			100%		Prorata
Operating Shopping Centers with Economic Interest	450			80.6		53.6
Additional Ground Lease GLA				4.9		3.5
Additional Unowned GLA				30.3		0.0
Operating Shopping Centers with No Economic Interest	88			18.4		0.0
Additional Ground Lease GLA				1.2		0.0
Additional Unowned GLA				4.8		0.0
Business Centers	6			0.7		0.7
Portfolio % Leased	93.4	%
Portfolio % Commenced	90.8	%

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.


			MSF at		MSF at
			100%		Prorata
Operating Shopping Centers	267			60.5		43.4
Additional Ground Lease GLA				3.8		2.7
Additional Unowned GLA				23.5		0.0
Prime Portfolio % Leased	94.7	%
% of Total Portfolio NOI	88.3	%

Total Portfolio Concentration


	% of					% of
	ABR			MSF		GLA
Rk Location	at 100%			at 100%		at 100%
1 Brazil		13.3	%		3.7		4.8	%
2 Georgia		9.4	%		9.2		11.4	%
3 Florida		8.5	%		8.8		10.9	%
4 Puerto Rico		7.8	%		4.0		5.0	%
5 New York		6.2	%		6.4		7.9	%
6 North Carolina		6.2	%		5.3		6.6	%
7 New Jersey		5.4	%		3.2		4.0	%
8 Ohio		5.1	%		5.2		6.4	%
9 Pennsylvania		3.4	%		2.8		3.5	%
10 California		3.1	%		2.2		2.7	%

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

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 and the joint venture completed an IPO in 2011. DDR’s ownership of SSB as of 9/30/11 was 33.3%. All information was translated using average exchange rates for the respective periods.


				MSF at 100%		MSF at Prorata
Operating Shopping Centers		10			3.7		0.9
Additional Ground Lease GLA					0.2		0.1
Development Sites		3			1.8		0.6
Total Annualized Rent (in millions)	$	132.7
Average Rent Per Occupied Square Foot	$	36.06
Portfolio % Leased		98.8	%

Puerto Rico Portfolio Characteristics


				MSF at 100%		MSF at Prorata
Operating Shopping Centers		15			4.0		4.0
Additional Ground Lease GLA					0.7		0.7
Additional Unowned GLA					1.0		0.0
Total Annualized Rent (in millions)	$	77.7
Average Rent Per Occupied Square Foot	$	18.88
Portfolio % Leased		96.8	%

Trailing 12 Month NOI (DDR Share)

LOGO

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Lease Expirations By Year

($ in millions, except per square foot)

Greater than 10,000 SF


Year	Leases		ABR at 100%		Avg PSF		% of ABR at 100%
2011		33	$	8.9	$	9.49		0.9	%
2012		134		41.5		9.16		4.3	%
2013		175		46.4		9.34		4.9	%
2014		202		61.4		9.34		6.4	%
2015		184		57.1		9.72		6.0	%
2016		210		67.1		10.64		7.0	%
2017		127		51.5		10.48		5.4	%
2018		79		29.2		10.34		3.1	%
2019		96		40.7		11.74		4.3	%
2020		75		25.6		10.40		2.7	%

2011-2020
Subtotal		1,315	$	429.4	$	10.02		44.9	%

Total
Rent Roll		1,541	$	529.4	$	9.96		55.4	%

Less than 10,000 SF


							% of
			ABR		Avg		ABR
Year	Leases		at 100%		PSF		at 100%
2011		464	$	23.0	$	28.19		2.4	%
2012		1,444		81.6		26.70		8.5	%
2013		1,280		68.6		23.45		7.2	%
2014		1,225		66.0		27.50		6.9	%
2015		949		56.0		25.44		5.9	%
2016		791		50.2		24.50		5.3	%
2017		185		14.5		22.66		1.5	%
2018		170		16.0		26.33		1.7	%
2019		119		10.1		24.04		1.1	%
2020		121		9.6		21.98		1.0	%

2011-2020
Subtotal		6,748	$	395.6	$	25.44		41.4	%

Total
Rent Roll		7,488	$	426.1	$	23.43		44.6	%

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Leased Rates and Average Annualized Base Rental Rates PSF


Period Ending	Properties		Leased Rate			ABR PSF
Q3 2011		450		93.4	%	$	13.76
YE 2010		487		92.6	%		13.36
YE 2009		544		91.4	%		13.01
YE 2008		621		92.7	%		12.60
YE 2007		628		96.0	%		12.54
YE 2006		379		96.1	%		11.90
YE 2005		379		96.3	%		11.30
YE 2004		373		95.4	%		11.13
YE 2003		274		95.1	%		10.82
YE 2002		189		95.9	%		10.58
YE 2001		192		95.4	%		10.03
YE 2000		190		96.9	%		9.66
YE 1999		186		95.7	%		9.20
YE 1998		159		96.5	%		8.99
YE 1997		123		96.1	%		8.49
YE 1996		112		94.8	%		7.85
YE 1995		106		96.3	%		7.60
YE 1994		84		97.1	%		5.89
YE 1993		69		96.2	%		5.60
YE 1992		53		95.4	%		5.37

Leased Rate by Tenant Size


	Leased Rate			% of GLA			% of Vacancy
< 2,499 SF		82.5	%		8.8	%		23.2	%
2,500 - 4,999 SF		83.4	%		8.4	%		21.0	%
5,000 - 9,999 SF		87.3	%		9.2	%		17.7	%
10,000 - 20,000 SF		95.4	%		9.9	%		6.8	%
> 20,000 SF		96.7	%		63.6	%		31.3	%

Total		93.4	%		100	%		100	%

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

($, GLA in thousands, except per square foot)

Leasing spreads are calculated by comparing the prior tenant’s annual base rent in the final year of the lease to the new tenant’s 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: Third Quarter 2011


					New Rent				Prior Rent
									Final		Final					Wtd
					Year 1		Year 1		Year		Year		Comp			Avg
	# of				Rent		Total		Rent		Total		Space			Term		TI
	Leases		GLA		PSF		Rent		PSF		Rent		Spread			(Yrs)		PSF
New Leases
Vacant < 1 Year		81		266	$	18.87	$	5,026	$	16.29	$	4,340		15.8	%		8.3	$	15.89
Vacant > 1 Year		139		707		13.79		9,746		N/A		N/A		N/A			8.2		12.57

New Leases - Total		220		973		15.18		14,772		N/A		N/A		15.8	%		8.3		13.47
Renewals		296		1,572		15.63		24,570		14.79		23,240		5.7	%		4.5		0.00

Total		516		2,545	$	15.46	$	39,342	$	15.01	$	27,580		7.3	%		5.9	$	5.18

Leasing Summary: Year-to-Date 2011


					New Rent				Prior Rent
									Final		Final					Wtd
					Year 1		Year 1		Year		Year		Comp			Avg
	# of				Rent		Total		Rent		Total		Space			Term		TI
	Leases		GLA		PSF		Rent		PSF		Rent		Spread			(Yrs)		PSF
New Leases
Vacant < 1 Year		229		625	$	22.89	$	14,311	$	20.43	$	12,774		12.0	%		7.4	$	14.45
Vacant > 1 Year		367		2,108		13.24		27,912		N/A		N/A		N/A			8.1		13.57

New Leases - Total		596		2,733		15.45		42,223		N/A		N/A		12.0	%		7.9		13.77
Renewals		831		5,026		14.61		73,417		13.89		69,815		5.2	%		4.6		0.00

Total		1,427		7,759	$	14.90	$	115,640	$	14.61	$	82,589		6.2	%		5.8	$	4.92

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

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 landlord’s 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 9/30/2011			2011 YTD Average
Number of lease transactions executed		516			1,427
Rentable square footage leased (in thousands)		2,545			7,760
Square footage of renewal deals (in thousands)		1,572			5,026
Square footage of new deals (in thousands)		973			2,733
Renewed square footage (% of total)		61.8	%		64.8	%
New leases square footage (% of total)		38.2	%		35.2	%

New Deals:
Weighted average per rentable square foot over the lease term:
Base rent	$	15.85		$	16.11
Tenant allowance		(1.58	)		(1.65	)
Landlord work		(0.71	)		(0.61	)
Third party leasing commissions		(0.28	)		(0.29	)
Rent concessions		—			—

Equivalent net effective rent	$	13.28		$	13.56

Weighted average term in years		8.3			7.9

Renewal Deals:
Weighted average per rentable square foot over the lease term:
Base rent	$	15.72		$	14.81
Tenant allowance		—			—
Landlord work		—			—
Third party leasing commissions		—			—
Rent concessions		—			—

Equivalent net effective rent	$	15.72		$	14.81

Weighted average term in years		4.5			4.6

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Largest Tenants by GLA

($ in millions)


Rk	Tenant (Concept)	Owned Units		Owned GLA at 100%		% of GLA at 100%			Owned GLA at Prorata		Unowned Units		Total Units		Credit Ratings (S&P/Mdy’s/Fitch)
1	Walmart (26) / Sam’s Club (5)		31		4.8		5.6	%		4.1		52		83	AA / Aa2/ AA
2	Kohl’s		26		2.3		2.7	%		1.4		17		43	BBB+ / Baa1 / BBB+
3	Sears (6) / Kmart (19) / Others (2)		27		2.1		2.5	%		1.5		5		32	B+ / Ba3 / B
4	Publix		44		2.1		2.5	%		0.6		3		47	NR
5	TJ Maxx (32) / Marshalls (23) / Homegoods (11)		66		2.1		2.5	%		1.4		22		88	A / A3 / NR
6	Kroger		29		1.6		1.9	%		0.7		2		31	BBB / Baa2 / BBB
7	Lowe’s		12		1.6		1.9	%		1.5		24		36	A / A1 / A
8	PetSmart		65		1.4		1.6	%		0.9		24		89	BB / NR / NR
9	Bed Bath & Beyond (39) / Others (4)		43		1.4		1.6	%		0.9		16		59	BBB+ / NR / NR
10	Ross Stores		41		1.3		1.5	%		0.7		4		45	BBB+ / NR / NR
11	Michael’s		53		1.2		1.4	%		0.8		12		65	B- / B3 / NR
12	Dick’s Sporting Goods		24		1.1		1.3	%		0.7		9		33	NR
13	Tops Markets¹		16		1.0		1.2	%		0.5		1		17	NR
14	OfficeMax		40		0.9		1.1	%		0.7		10		50	B- / B1 / NR
15	Toys R Us (8) / Babies R Us (16)		24		0.9		1.1	%		0.7		12		36	B / B1 / B
16	Home Depot		8		0.9		1.1	%		0.8		33		41	BBB+ / A3 / BBB+
17	J.C. Penney		16		0.8		0.9	%		0.8		2		18	BB+ / NR / BBB-
18	Best Buy		20		0.8		0.9	%		0.5		12		32	BBB- / Baa2 / BBB-
19	Target		6		0.8		0.9	%		0.8		53		59	A+ / A2 / A-
20	Dollar Tree Stores		83		0.8		0.9	%		0.5		11		94	NR

	Top 20 Tenants		674		29.9		35.0	%		20.5		324		998

21	Gap (5) / Old Navy (38) / Banana Republic (4)		47		0.8		0.9	%		0.5		8		55	BB+ /Baa3 / BBB-
22	Burlington Coat Factory		9		0.8		0.9	%		0.6		1		10	B- / B3 / B-
23	Hobby Lobby		14		0.8		0.9	%		0.6		3		17	NR
24	Staples		34		0.7		0.8	%		0.5		1		35	BBB / Baa2 / BBB
25	JoAnn Fabric		24		0.7		0.8	%		0.6		8		32	NR
26	Beall’s		18		0.7		0.8	%		0.4		3		21	NR
27	Barnes & Noble		25		0.6		0.7	%		0.4		2		27	NR
28	Cinemark		12		0.6		0.7	%		0.5		2		14	BB- / NR / NR
29	AMC Theaters		7		0.6		0.7	%		0.2		2		9	NR / Caa1 / B
30	Regal Cinemas		11		0.6		0.7	%		0.4		2		13	B+ / B1 / B+
31	Sports Authority		13		0.5		0.6	%		0.4		3		16	B- / NR / NR
32	Stein Mart		13		0.5		0.6	%		0.3		1		14	NR
33	Giant Eagle		6		0.5		0.6	%		0.3		0		6	NR
34	Office Depot		18		0.5		0.6	%		0.3		6		24	B- / B2 / NR
35	Petco		30		0.4		0.5	%		0.3		0		30	B / B2 / NR
36	H.H. Gregg		13		0.4		0.5	%		0.3		6		19	NR
37	BJ’s Wholesale Club		4		0.4		0.5	%		0.4		2		6	B+ / B1 / NR
38	DSW		16		0.4		0.5	%		0.2		6		22	NR
39	Party City (23) / Others (7)		30		0.4		0.5	%		0.2		8		38	NR
40	Rite Aid		32		0.4		0.5	%		0.3		0		32	B- / Caa2 / B-

	Tenants 21-40		376		11.3		13.2	%		7.7		64		440

	Top 40 Tenants		1,050		41.2		48.2	%		28.2		388		1,438

	Total Portfolio				85.5		100.0	%		57.1

⁽¹⁾	15 leases are guaranteed by Koninklijke Ahold NV, rated BBB / Baa3 / BBB

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Largest Tenants by Base Rental Revenues

($ in millions)


Rk	Tenant	Owned Units		ABR at 100%		% of ABR at 100%			ABR at Prorata		Unowned Units		Total Units		Credit Ratings (S&P/Mdy’s/Fitch)
1	Walmart (26) / Sam’s Club (5)		31	$	31.4		3.2	%	$	26.0		52		83	AA / Aa2 / AA
2	TJ Maxx (32) / Marshalls (23) / Homegoods (11)		66		20.7		2.1	%		14.2		22		88	A / A3 / NR
3	PetSmart		65		19.0		1.9	%		12.4		24		89	BB / NR / NR
4	Publix		44		18.5		1.9	%		5.0		3		47	NR
5	Kohl’s		26		17.3		1.8	%		10.6		17		43	BBB+ / Baa1 / BBB+
6	Bed Bath & Beyond (39) / Others (4)		43		15.9		1.6	%		11.6		16		59	BBB+ / NR / NR
7	Michael’s		53		14.7		1.5	%		10.0		12		65	B- / B3 / NR
8	Ross Stores		41		13.6		1.4	%		7.3		4		45	BBB+ / NR / NR
9	AMC Theaters		7		12.7		1.3	%		5.4		2		9	NR / Caa1 / B
10	Dick’s Sporting Goods		24		12.5		1.3	%		7.4		9		33	NR
11	Best Buy		20		11.8		1.2	%		7.2		12		32	BBB- / Baa2 / BBB-
12	Tops Markets¹		16		11.7		1.2	%		6.7		1		17	NR
13	Kroger		29		11.7		1.2	%		5.3		2		31	BBB / Baa2 / BBB
14	Gap (5) / Old Navy (38) / Banana Republic (4)		47		11.1		1.1	%		7.9		8		55	BB+ / Baa3 / BBB-
15	OfficeMax		40		11.0		1.1	%		7.9		10		50	B- / B1 / NR
16	Lowe’s		12		9.8		1.0	%		9.1		24		36	A / A1 / A
17	Barnes & Noble		25		9.8		1.0	%		6.5		2		27	NR
18	Staples		34		9.4		1.0	%		6.5		1		35	BBB / Baa2 / BBB
19	Regal Cinemas		11		9.0		0.9	%		6.5		2		13	B+ / B1 / B+
20	Cinemark		12		8.3		0.8	%		6.4		2		14	BB- / NR / NR

	Top 20 Tenants		646	$	279.9		28.3	%	$	179.9		225		871

21	Dollar Tree Stores		84	$	8.1		0.8	%	$	5.3		11		95	NR
22	Sears (6) / Kmart (19) / Others (2)		27		8.1		0.8	%		5.5		5		32	B+ / Ba3 / B
23	Rite Aid		32		7.8		0.8	%		7.4		0		32	B- / Caa2 / B-
24	JoAnn Fabric		24		7.5		0.8	%		5.4		8		32	NR
25	Toys R Us (8) / Babies R Us (16)		24		7.4		0.7	%		5.8		12		36	B / B1 / B
26	Petco		30		7.1		0.7	%		4.7		0		30	B / B2 / NR
27	DSW		16		6.8		0.7	%		3.7		6		22	NR
28	Home Depot		8		6.5		0.7	%		6.3		33		41	BBB+ / A3 / BBB+
29	Sports Authority		13		6.4		0.6	%		6.2		3		16	B- / NR / NR
30	Party City (23) / Others (7)		30		5.7		0.6	%		3.8		8		38	NR
31	Royal Ahold - Stop N Shop (4) / Martin’s (1)		5		5.2		0.5	%		1.9		0		5	BBB / Baa3 / BBB
32	Hobby Lobby		14		5.2		0.5	%		3.3		3		17	NR
33	Pier 1 Imports		27		5.0		0.5	%		3.4		11		38	NR
34	Office Depot		18		4.9		0.5	%		3.0		6		24	B- / B2 / NR
35	Gamestop		105		4.8		0.5	%		3.5		12		117	BB+ / Ba1 / NR
36	Famous Footwear (29) / Others (2)		31		4.7		0.5	%		3.2		10		41	B+ / B2 / BB+
37	Beall’s		18		4.6		0.5	%		2.3		3		21	NR
38	Ulta		20		4.5		0.5	%		2.9		3		23	NR
39	Giant Eagle		6		4.3		0.4	%		2.7		0		6	NR
40	Payless (60) / Stride Rite (2)		62		4.3		0.4	%		3.2		8		70	B+ / B1 / NR

	Tenants 21-40		594	$	118.9		12.0	%	$	83.5		142		736

	Top 40 Tenants		1,240	$	398.8		40.4	%	$	263.4		367		1,607

	Total Portfolio			$	988.1		100.0	%	$	655.7

⁽¹⁾	15 leases are guaranteed by Koninklijke Ahold NV, rated BBB / Baa3 / BBB

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Summary of Consolidated Debt

(In Millions)


Total Debt Outstanding	September 30, 2011 Aggregate		September 30, 2011 DDR Pro Rata Share		September 30, 2011 DDR Pro Rata Wtd. Avg. Interest			December 31, 2010 Aggregate			December 31, 2010 DDR Pro Rata Share
Mortgage Loans Payable:
Fixed rate secured loans	$	1,244.8	$	1,234.9		5.60	%	$	1,234.5		$	1,224.6
Variable rate secured loans		95.6		83.8		2.04	%		144.0			131.8
Secured Term Loan		500.0		500.0		3.01	%		600.0			600.0
Unsecured Public Debt		2,158.9		2,158.9		5.89	%		2,043.6			2,043.6
Unsecured Credit Facilities		226.4		226.4		2.24	%		279.9			279.9

Total	$	4,225.7	$	4,204.0		5.09	%	$	4,302.0		$	4,279.9


Schedule of Maturities by Year (1)	Scheduled Principal Payments		Secured Debt Maturities		Unsecured Debt Maturities			Aggregate Total			DDR Pro Rata Share
2011	$	6.9	$	—	$	—		$	6.9		$	6.9
2012		28.0		109.2		409.2			546.4			524.7
2013		27.1		392.8		—			419.9			419.9
2014		25.2		364.4		—			389.6			389.6
2015		19.6		517.7		519.7			1,057.0			1,057.0
2016		16.9		48.8		526.4			592.1			592.1
2017		16.7		0.3		300.0			317.0			317.0
2018		11.3		75.5		382.2			469.0			469.0
2019		6.7		74.6		—			81.3			81.3
2020		4.8		0.3		300.0			305.1			305.1
2021 and beyond		3.6		90.0		—			93.6			93.6
Unsecured debt discount		—		—		(52.2	)		(52.2	)		(52.2	)

	$	166.8	$	1,673.6	$	2,385.3		$	4,225.7		$	4,204.0



Percentage of Total Debt	September 30, 2011			December 31, 2010
Fixed		85.3	%		79.7	%
Variable		14.7	%		20.3	%

Recourse to DDR		69.7	%		69.2	%
Non-recourse to DDR		30.3	%		30.8	%

(1)	Assumes borrower extension options are exercised.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Summary of Joint Venture Debt

(In Millions)


Total Debt Outstanding	September 30, 2011 Aggregate			September 30, 2011 DDR Pro Rata Share			September 30, 2011 DDR Pro Rata Wtd. Avg. Interest			December 31, 2010 Aggregate		December 31, 2010 DDR Pro Rata Share
Mortgage Loans Payable:
Fixed rate secured loans	$	3,218.3		$	662.3			5.64	%	$	3,279.1	$	705.3
Variable rate secured loans		672.7			126.8			5.42	%		661.5		128.5

Total	$	3,891.0	(1)	$	789.1	(1)		5.60	%	$	3,940.6	$	833.8


Schedule of Maturities by Year (2)				Scheduled Principal Payments			Mortgage Loan Maturities			Aggregate Total		DDR Pro Rata Share
2011				$	2.1		$	74.8		$	76.9	$	7.6
2012					6.6			1,327.9			1,334.5		287.7
2013					4.6			412.2			416.8		61.6
2014					4.4			170.9			175.3		36.4
2015					3.8			188.7			192.5		40.2
2016					3.8			40.8			44.6		16.1
2017					3.8			1,372.2			1,376.0		255.1
2018					3.0			29.4			32.4		5.8
2019					2.1			34.1			36.2		5.8
2020					2.2			71.0			73.2		24.5
2021 and beyond					1.3			131.3			132.6		48.3

				$	37.7		$	3,853.3		$	3,891.0	$	789.1



Percentage of Total Debt	September 30, 2011			December 31, 2010
Fixed		82.7	%		83.2	%
Variable		17.3	%		16.8	%

Recourse to DDR		4.5	%		5.0	%
Non-recourse to DDR		95.5	%		95.0	%

(1)	Includes approximately $300.8 million of mortgage debt of which the Company’s prorata share of non-recourse mortgage debt is $48.2 million associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income.

(2)	Assumes borrower extension options are exercised.

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Consolidated Debt Detail

(In Millions)


	Loan Balance			DDR Proportionate Share		Final Maturity Date (1)	Interest Rate (2)
SENIOR DEBT
Unsecured Credit Facilities:
$750 Million Revolving Credit Facility	$	214.9		$	214.9	02/16		LIBOR + 165
$65 Million Revolving Credit Facility		11.5			11.5	02/16		LIBOR + 165
Secured Credit Facility:
$500 Million Term Loan		500.0			500.0	09/15		LIBOR + 170

Total Term and Credit Facility Debt	$	726.4		$	726.4

PUBLIC DEBT
Convertible Notes		184.1	(3)		184.1	03/12		3.00
Unsecured Notes		223.3			223.3	10/12		5.38
Unsecured Notes		169.5			169.5	05/15		5.50
Convertible Notes		305.2	(4)		305.2	11/15		1.75
Unsecured Notes		298.8			298.8	03/16		9.63
Unsecured Notes		300.0			300.0	04/17		7.50
Unsecured Notes		298.1			298.1	04/18		4.75
Medium Term Notes		82.2			82.2	07/18		7.50
Unsecured Notes		297.7			297.7	09/20		7.88

Total Public Debt	$	2,158.9		$	2,158.9

MORTGAGE DEBT
Kyle Crossing, Kyle, TX		23.5	(5)		11.7	01/12		LIBOR + 350
Paradise Village Gateway, Phoenix, AZ		30.0			20.1	03/12		5.39
University Hills, Denver, CO		24.5			24.5	07/12		7.30
N. Charleston Center, N. Charleston, SC		9.3			9.3	07/12		7.37
Cortez Plaza, Bradenton, FL		10.7			10.7	07/12		7.15
Walgreen’s, Dearborn Hts, MI		3.5			3.5	11/12		4.86
Walgreen’s, Livonia, MI		2.5			2.5	11/12		4.86
Terraces at Southpark, Charlotte, NC		6.6			6.6	12/12		5.72
Walgreen’s, Westland, MI		2.6			2.6	03/13		4.86
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		5.9			5.9	04/13		5.80
DDRC Headquarters, Beachwood, OH		34.1			34.1	04/13		LIBOR + 110
Monmouth Consumer Sq., W. Long Branch, NJ		4.3			4.3	07/13		8.57
Rotonda Plaza, Englewood, FL		0.6			0.6	07/13		5.80
Crossroads Center, Gulfport, MS		25.5			25.5	10/14		4.23
The Commons, Salisbury, MD		9.1			9.1	10/14		4.23
Chillicothe Place, Chillicothe, OH		4.5			4.5	10/14		4.23
Deer Valley Towne Center, Phoenix, AZ		18.3			18.3	10/14		4.23
Plaza at Sunset Hills, Sunset Hills, MO		29.0			29.0	10/14		4.23
North Pointe Plaza, North Charleston, SC		11.4			11.4	10/14		4.23
Wando Crossing, Mount Pleasant, SC		12.4			12.4	10/14		4.23
Brook Highland Plaza, Birmingham, AL		25.6			25.6	10/14		4.23
Mooresville Consumer Sq., Mooresville, NC		18.9			18.9	10/14		4.23
Town Center Plaza, Leawood, KS		52.5			52.5	10/14		4.23
Warner Robins Place, Warner Robins, GA		7.1			7.1	10/14		4.23

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011


Consolidated Debt Detail (In Millions)
	Loan Balance			DDR Proportionate Share		Final Maturity Date (1)	Interest Rate (2)
Cross Pointe Center, Fayetteville, NC		10.3			10.3	10/14		4.23
Overlook at Hamilton Place, Chattanooga, TN		10.3			10.3	10/14		4.23
Bermuda Square, Chester, VA		7.8			7.8	10/14		4.23
Home Depot Center, Orland Park, IL		7.0			7.0	10/14		4.23
Delaware Consumer Square, Buffalo, NY		10.6			10.6	10/14		4.23
Hamilton Marketplace, Hamilton, NJ		43.0			43.0	10/14		4.23
Marketplace at Delta Twp, Lansing, MI		6.9			6.9	10/14		4.23
Clearwater Collection, Clearwater, FL		7.4			7.4	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		13.0			13.0	10/14		4.23
Loisdale Center, Springfield, VA		11.5			11.5	10/14		4.23
Windsor Court, Windsor, CT		7.6			7.6	10/14		4.23
Abernathy Square, Atlanta, GA		12.6			12.6	10/14		4.23
Sam’s Club, Worcester, MA		5.6			5.6	10/14		4.23
Walmart Supercenter, Alliance, OH		7.4			7.4	10/14		4.23
Kroger, Cincinnati, OH		2.7			2.7	10/14		4.23
Reno Riverside, Reno, NV		2.9	(5)		2.9	02/15		Prime + 170
Merriam Village, Merriam, KS		15.0			15.0	03/15		LIBOR + 250
Hamilton Commons, Mays Landing, NJ		7.2			7.2	09/15		4.70
Tops Plaza, Lockport, NY		6.9			6.9	01/16		8.00
Merriam Town Center, Merriam, KS (TIF)		1.0			1.0	02/16		6.90
Cotswold Village, Charlotte, NC		50.8			50.8	05/16		5.83
Freedom Plaza, Rome, NY		2.5			2.5	09/16		7.85
Walmart Supercenter, Winston-Salem, NC		6.9			6.9	08/17		6.00
Thruway Plaza (Walmart), Cheektowaga, NY		3.0			3.0	10/17		6.78
Tops Plaza, Ithaca, NY		12.1			12.1	01/18		7.05
Walmart Supercenter, Greenville, SC		6.6			6.6	01/18		6.00
Southland Crossings, Boardman, OH		25.8			25.8	03/18		5.06
The Promenade at Brentwood, St. Louis, MO		32.8			32.8	03/18		5.06
Johns Creek Town Center, Suwanee, GA		25.8			25.8	03/18		5.06
Mohawk Commons, Niskayuna, NY		16.2			16.2	12/18		5.75
Lowes, Hendersonville, TN		6.2			6.2	01/19		7.66
Plaza Isabela, Isabela, PR		23.0			23.0	06/19		7.59
Plaza Cayey, Cayey, PR		21.8			21.8	06/19		7.59
Plaza Walmart, Guayama, PR		12.2			12.2	06/19		7.59
Plaza Fajardo, Fajardo, PR		26.2			26.2	06/19		7.59
Mariner Square, Spring Hill, FL		3.8			3.8	09/19		9.75
Northland Square, Cedar Rapids, IA		7.2			7.2	01/20		9.38
West Valley Marketplace, Allentown, PA		13.5			13.5	07/21		6.95
Wrangleboro Consumer Sq. I & II, Mays Landing, NJ		65.0			65.0	10/21		5.41
Chapel Hills East, Colorado Springs, CO		9.6			9.6	12/21		5.24
Macedonia Commons, Macedonia, OH		20.8			20.8	02/22		5.71
Gulfport Promenade, Gulfport, MS		20.0			20.0	12/37		SIFMA + 5bp

Total Mortgage Debt	$	1,340.4		$	1,318.7

Total Consolidated Debt	$	4,225.7		$	4,204.0

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011


Consolidated Debt Detail (In Millions)
	Loan Balance		DDR Proportionate Share		Final Maturity Date (1)	Interest Rate (2)
					Wtd. Avg. Maturity	Wtd. Avg. Interest Rate
Fixed Rate	$	3,603.7	$	3,593.8	4.4 years		5.60	%
Variable Rate		622.0		610.2	4.7 years		2.04	%

	$	4,225.7	$	4,204.0	4.5 years		5.09	%

CUMULATIVE REDEEMABLE PREFERRED SHARES


	Outstanding Amount
Class H - 7.375%	$	205.0
Class I - 7.5%		170.0

	$	375.0

DERIVATIVE INSTRUMENTS


	Notional Amount		Underlying Debt Hedged	Rate Hedged	Fixed Rate			Termination Date
Interest Rate Swap	$	100.0	Secured Term Loan	1 mo. LIBOR		4.82	%	February 21, 2012
Interest Rate Swap	$	100.0	Secured Term Loan	1 mo. LIBOR		1.01	%	June 28, 2014
Interest Rate Swap	$	84.4	Mortgage Portfolio	1 mo. LIBOR		2.81	%	September 1, 2017

Notes:

(1)	Assumes borrower extension options are exercised.

(2)	Interest rate figures reflect coupon rates of interest and do not include discounts or premiums. Annualized deferred finance cost amortization of approximately $14.7 million is partially offset by approximately $2.1 million of fair market value adjustments.

(3)

The convertible notes may be net settled with DDR’s common stock once the stock price rises above $74.56 per share. The principal balance on these notes is to be settled in cash. Included in this amount is a $1.6 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 DDR’s common stock once the stock price rises above $16.27 per share at September 30, 2011 and is 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 $44.8 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 following loans have floor interest rates:


Loan	Floor
Kyle Crossing, Kyle, TX		4.00	%
Reno Riverside, Reno, NV		5.95	%

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Joint Venture Debt Detail

(In Millions)


	Loan Balance			DDR Proportionate Share		Final Maturity Date (1)	Interest Rate
DDRTC Core Retail Fund, LLC
DDRTC Holdings Pool 5, LLC (13 assets)	$	178.0		$	26.7	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
Cox Creek Shopping Center, Florence, AL		13.6			2.0	03/12		7.09
Cypress Trace, Fort Myers, FL		16.0			2.4	04/12		5.00
Waterfront Marketplace, Homestead, PA		27.5			4.1	08/12		6.35
Waterfront Town Center, Homestead, PA		36.3			5.4	08/12		6.35
Creeks at Virginia Center, Glen Allen, VA		24.5			3.7	08/12		6.37
Willoughby Hills Shop Ctr, Willoughby Hills, OH		10.9			1.6	07/18		6.98

Total DDRTC Core Retail Fund LLC	$	1,212.0		$	181.7

DDR Domestic Retail Fund I
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		10.4			2.1	01/13		5.87
Meadows Square, Boynton Beach, FL		1.3			0.3	07/13		6.72
Village Center, Racine, WI		11.9			2.4	04/15		4.21
Paradise Promenade, Davie, FL		6.1			1.2	04/15		4.21
West Falls Plaza, West Patterson, NJ		11.6			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	$	951.5		$	190.3

Coventry II
Bloomfield Park, Bloomfield Hills, MI	$	39.8	(2)	$	—	12/08		Prime + 300
Westover Marketplace, San Antonio, TX		20.4	(3)		4.1	11/11		LIBOR + 350
Coventry II DDR SM (31 assets)		71.8	(2)		14.3	09/12		LIBOR + 225
Buena Park, Buena Park, CA		61.0			12.2	11/12		7.25
Marley Creek Square, Orland Park, IL		10.6	(2)		1.1	12/12		5.49
Watters Creek, Allen, TX		136.3	(3)		22.5	01/13		LIBOR + 300
Fairplain Plaza, Benton Harbor, MI		15.1			3.0	05/13		LIBOR + 350
Totem Lake Mall, Kirkland, WA		27.4			5.5	05/13		LIBOR + 350
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		150.6	(2)		30.1	02/15		5.66
Coventry II DDR SM (7 assets)		28.0	(2)		5.6	08/16		6.75

Total Coventry II	$	626.0		$	111.4

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Joint Venture Debt Detail

(In Millions)


	Loan Balance		DDR Proportionate Share		Final Maturity Date (1)	Interest 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		10.3		2.0	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	$	36.6

Sonae Sierra Brasil BV Sarl
Sonae Sierra Brasil Limitadas, Brazil	$	10.5	$	3.5	11/15		CDI + 285
Patio Boavista, Brazil		14.3		4.8	11/16		CDI + 330
Shopping Metropole, Brazil		29.2		9.7	05/18		TR + 1030
Manaura Shopping, Brazil		71.0		23.7	12/20		10.00
Patio Londrina, Brazil		22.0		7.3	10/25		TR + 1090
Patio Uberlandia, Brazil		28.8		9.6	10/25		TR + 1130

Total Sonae Sierra Brasil BV Sarl	$	175.8	$	58.6

DDRA Ahwatukee Foothills LLC, Phoenix, AZ		106.4		53.2	08/12		5.30
DDRA Arrowhead Crossing LLC, Phoenix, AZ		47.5		23.7	08/12		5.30
DDRA Tanasbourne Town Center LLC, Portland, OR		57.1		28.6	08/12		5.30
Jefferson County Plaza LLC, Arnold, MO		3.5		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
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

DDR

Quarterly Financial Supplement

For the nine months ended September 30, 2011

Joint Venture Debt Detail

(In Millions)


	Loan Balance		DDR Proportionate Share		Final Maturity Date (1)		Interest Rate
Cole DDR MT Independence, Independence, MO	$	34.1	$	5.0		01/19		5.95
RO & SW Realty LLC (9 assets)		21.9		5.5		10/20		5.25
Sun Center Limited, Columbus, OH		23.6		18.8		04/21		5.99
RVIP IIIB, Deer Park, IL		75.0		19.3		09/21		4.84

Total	$	742.6	$	210.5

Total Joint Venture Debt	$	3,891.0	$	789.1

					Wtd. Avg. Maturity		Wtd. Avg. Interest Rate
Total Joint Venture Debt:
Fixed Rate	$	3,218.3	$	662.3		3.9 years		5.64	%
Variable Rate		672.7		126.8		3.5 years		5.42	%

	$	3,891.0	$	789.1		3.8 years		5.60	%

DERIVATIVE INSTRUMENTS

Notional Amount

Underlying Debt Hedged

Rate Hedged

Capped Rate

Termination Date

Interest Rate Cap

76.1

Coventry II DDR SM

1 mo. LIBOR

3.00

September 1, 2012

Interest Rate Cap

65.0

Coventry II Christown Spectrum Mall

1 mo. LIBOR

2.85

November 22, 2013

Notes:

(1)	Assumes borrower extension options are exercised.

(2)	Includes approximately $300.8 million of mortgage debt of which the Company’s prorata share of non-recourse mortgage debt is $48.2 million associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income.

(3)	The following loans have floor interest rates:


Loan		Floor
Westover Marketplace, San Antonio, TX		1 month LIBOR of 1.50%
Watters Creek, Allen, TX		1 month LIBOR of 0.50%
Christown Spectrum Mall, Phoenix, AZ		1 month LIBOR of 0.26%

DDR

Quarterly Financial Supplement


Corporate Headquarters	Investor Relations
DDR Corp.	Samir Khanal
3300 Enterprise Parkway	Toll Free: (877) 225-5337
Beachwood, Ohio 44122	Main: (216) 755-5500
Website: www.ddr.com	Email: skhanal@ddr.com

Equity Research Coverage
BofA Merrill Lynch
Craig Schmidt	craig.schmidt@baml.com	(646) 855-3640
Lindsay Schroll	lindsay.schroll@baml.com	(646) 855-1829

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

Cowen & Company
Jim Sullivan	james.sullivan@cowen.com	(646) 562-1380
Mike Gorman	michael.gorman@cowen.com	(646) 562-1381

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
Cedrik Lachance	clachance@greensteetadvisors.com	(949) 640-8780
Jason White	jwhite@greenstreetadvisors.com	(949) 640-8780

Hilliard Lyons
Carol Kemple	ckemple@hilliard.com	(502) 588-1839

ISI Group
Steve Sakwa	ssakwa@isigrp.com	(212) 446-9462
Samit Parikh	sparikh@isigrp.com	(212) 888-3796

Jefferies and Company
Tayo Okusanya	tokusanya@jefferies.com	(212) 336-7076

J.P. Morgan
Michael Mueller	michael.w.mueller@jpmorgan.com	(212) 622-6689

Macquarie
Ki Bin Kim	kibin.kim@macquarie.com	(212) 231-6386

Morgan Stanley
Paul Morgan	paul.b.morgan@morganstanley.com	(415) 576-2627
Stephen Bakke	stephen.bakke@morganstanley.com	(415) 576-2696

RBC Capital Markets
Rich Moore	rich.moore@rbccm.com	(440) 715-2646
Wes Golladay	wes.golladay@rbccm.com	(440) 715-2650

Sandler O’Neill
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@wellsfargo.com	(617) 603-4262
Tamara Fique	tamara.fique@wellsfargo.com	(443) 263-6568

Fixed Income Research Coverage

BofA Merrill Lynch
Tom Truxillo	thomas.c.truxillo_jr@baml.com	(980) 386-5212

Citigroup
Tom Cook	thomas.n.cook@citigroup.com	(212) 723-1112

J.P. Morgan
Mark Streeter	mark.streeter@jpmorgan.com	(212) 834-5086

RBC Capital Markets
Seth Levine	seth.levine@rbccm.com	(212) 618-3523

Wells Fargo
Thierry Perrein	thierry.perrein@wachovia.com	(704) 715-8455

SITE Centers Corp. - FORM 8-K - EX-99.2 - October 27, 2011

Attached files

SITE Centers Corp. Reports