CLEVELAND, April 22 /PRNewswire-FirstCall/ -- Developers
Diversified Realty (NYSE: DDR) today announced operating results
for the first quarter ended March 31,
2010.
- The Company's first quarter operating Funds From Operations
("FFO") was $65.2 million, or
$0.28 per diluted share, before
$36.8 million of net charges.
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The net charges, primarily non-cash, for the three
months ended March 31, 2010 are summarized as follows (in
millions):
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Non-cash loss on equity derivative instruments
related to Otto investment
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$ 24.9
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Executive separation charge
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2.1
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Non-cash impairment charges – consolidated
assets
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2.1
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Consolidated impairment charges and loss on sales
included in discontinued operations
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2.4
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Debt extinguishment costs and other
expenses
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3.1
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FFO associated with Mervyns joint venture, net of
non-controlling interest
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2.0
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Loss on asset sales – equity method
investments
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1.3
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Gain on repurchases of senior notes
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(1.1)
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$ 36.8
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|
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- The Company reported operating FFO for the three-month period
ended March 31, 2009 of $85.0 million, or $0.66 per diluted share, before $55.0 million of net gains.
The net gains for the three months ended March 31,
2009 are summarized as follows (in millions):
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|
|
|
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Gain on repurchases of senior notes
|
$ 72.6
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|
Non-cash impairment charges – consolidated
assets
|
(10.9)
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|
Loss on disposition of joint venture
investment
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(5.8)
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|
Non-cash impairment charge on equity method
investment
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(0.9)
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$ 55.0
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|
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- FFO applicable to common shareholders for the three-month
period ended March 31, 2010,
including the above net charges, was $28.4
million, or $0.12 per diluted
share, which compares to FFO of $140.0
million, or $1.08 per diluted
share, for the prior-year comparable period. Net loss
applicable to common shareholders for the three-month period ended
March 31, 2010 was $34.8 million, or a loss of $0.15 per diluted share, which compares to net
income of $76.8 million, or
$0.59 per diluted share, for the
prior-year comparable period.
- Executed leases during the first quarter of 2010 totaled a
Company record of approximately 2.6 million square feet, including
180 new leases and 242 renewals, which includes 0.3 million square
feet of leases executed for managed assets.
- On a cash basis, leasing spreads on new leases and renewals on
a combined basis decreased 2.9% for the first quarter, an
improvement over fourth quarter results.
- Core portfolio leased percentage at March 31, 2010 was 91.3% compared to 91.2% at
December 31, 2009.
- Same store net operating income ("NOI") for the quarter
decreased 2.6% over the prior-year comparable period.
"We are very pleased with the results from operations and the
overall performance of our platform. Leasing velocity continues to
improve as tenant sales advance, quality space becomes increasingly
scarce and newly constructed opportunities are relatively
non-existent. Moreover, in the first quarter, we continued to
enhance the strength of our balance sheet, meaningfully improve
liquidity and extend our debt maturities. This progress was
achieved through our continued focus on long-term capital market
strategies consistent with our stated goals," commented Developers
Diversified's president and chief executive officer, Daniel B. Hurwitz.
Financial Results:
Net loss applicable to common shareholders was $34.8 million, or a loss of $0.15 per share (diluted and basic), for the
three-month period ended March 31,
2010, as compared to net income of $76.8 million, or $0.59 per share (diluted and basic), for the
prior-year comparable period.
FFO applicable to common shareholders was $28.4 million, or $0.12 per share (diluted and basic), for the
three-month period ended March 31,
2010, as compared to FFO of $140.0
million, or $1.08 per share
(diluted and basic) for the three-month period ended March 31, 2009. The decrease in FFO for the
three-month period ended March 31,
2010, is primarily the result of a decrease in the gain
recognized on the repurchases of senior notes, the loss on equity
derivative instruments and the impact of 2009 asset sales.
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 those sold through
the Company's merchant building program, which are presented net of
taxes, and those gains that represent the recapture of a previously
recognized impairment charge, (iii) extraordinary items and (iv)
certain non-cash items. These non-cash items principally
include real property depreciation and amortization of intangibles,
equity income from joint ventures and equity income from
non-controlling interests and adding the Company's proportionate
share of FFO from its unconsolidated joint ventures and
non-controlling interests, determined on a consistent basis.
The Company calculates operating FFO by excluding the
non-operating net charges and gains described above. Other
real estate companies may calculate FFO and operating FFO in a
different manner. FFO excluding the net non-operating items
detailed above is useful to investors as the Company removes these
charges and gains to analyze the results of its operations and
assess performance of the core operating real estate portfolio.
A reconciliation of net (loss) income to FFO is presented in
the financial highlights section.
Leasing:
The following results for the three-month period ended
March 31, 2010, highlight continued
strong leasing activity throughout the portfolio including a
Company record for executed deals despite the current economic
environment:
- Executed 180 new leases aggregating approximately 1.2 million
square feet and 242 renewals aggregating approximately 1.4 million
square feet, which includes 0.3 million square feet of leases
executed for managed assets.
- Total portfolio average annualized base rent per occupied
square foot, excluding assets in Brazil, as of March 31,
2010 was $12.37, as compared
to $12.29 at March 31, 2009.
- Core portfolio leased rate was 91.3% as of March 31, 2010, as compared to 90.7% at
March 31, 2009.
- On a cash basis, leasing spreads for new leases decreased by
5.9% and renewals decreased by 1.9%. This marks an
improvement from the decrease of 15.3% for new leases reported in
the fourth quarter of 2009.
Overall, the Company remains encouraged by the leasing activity
achieved during the first quarter. While the resulting rental
spreads and core occupancy levels are much less favorable than what
the Company has historically achieved, the Company is continuing to
make strides in retenanting the bankruptcy driven vacancies that
have impacted the retail sector.
Dispositions:
The Company sold five consolidated shopping center properties,
aggregating 0.9 million square feet, in the first quarter of 2010,
generating gross proceeds of approximately $30.9 million. The Company recorded an
aggregate net gain on sale of approximately $0.6 million related to these assets in the first
quarter.
In March 2010, the DDRTC Core
Retail Fund LLC, an unconsolidated investment in which the Company
has an approximate 15% ownership interest, sold 16 shopping center
assets for $424.3 million. This
transaction resulted in a loss of $8.7
million for the three months ended March 31, 2010, of which the Company's
proportionate share was $1.3
million.
Wholly-Owned and Consolidated Joint Venture
Development:
The Company currently has the following wholly-owned and
consolidated joint venture shopping center projects under
construction:
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Location
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Owned
GLA
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Expected Remaining
Cost ($ Millions)
|
|
Initial Anchor
Opening *
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Description
|
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Boise (Nampa), Idaho
|
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431.7
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|
$17.1
|
|
2H 07
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|
Community
Center
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Austin (Kyle), Texas **
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|
443.1
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|
16.5
|
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2H 09
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Community
Center
|
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Total
|
|
874.8
|
|
$33.6
|
|
|
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|
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* 2H = Second Half
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** Consolidated 50% Joint
Venture
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In addition to these projects, which will be developed in
phases, the Company and its joint venture partners intend to
commence construction on various other developments only after
substantial tenant leasing has occurred and acceptable construction
financing is available, including several international projects.
Wholly-Owned and Consolidated Joint Venture Redevelopments
and Expansions:
The Company is currently expanding/redeveloping a wholly-owned
shopping center in Miami
(Plantation), Florida, at a projected aggregate net cost of
approximately $48.1 million. At
March 31, 2010, approximately
$24.0 million of costs had been
incurred in relation to the redevelopment of this project.
Financings:
In March 2010, the Company issued
$300 million, 7.5% senior unsecured
notes due April 2017. The notes
were offered at 99.995% of par with a yield to maturity of 7.5%.
Proceeds from the offering were used to repay debt with
shorter-term maturities and to repay amounts outstanding on the
Company's unsecured credit facilities.
In the first quarter of 2010, the Company purchased
approximately $155.9 million
aggregate principal amount of its outstanding senior unsecured
notes at a discount to par, resulting in a gross gain of
approximately $4.1 million prior to
the write-off of unamortized deferred financing costs. Included in
the first quarter purchases was $83.1
million principal amount of near-term outstanding senior
unsecured notes repurchased through a cash tender offer at par in
March 2010. The first quarter
purchases primarily included debt maturing in 2010 and 2011.
The Company also prepaid $130
million of near-term secured debt as well as reduced the
amounts outstanding under its revolving credit facilities by nearly
$430 million during the first quarter
of 2010.
Through the above financing activities, the Company continued to
extend the weighted average term of its debt maturities.
Equity Issuances:
In February 2010, the Company
issued approximately 42.9 million of its common shares in an
underwritten offering for net proceeds of approximately
$338.1 million. In January 2010, the Company also sold approximately
5.0 million of its common shares through its continuous equity
program, generating gross proceeds of approximately $46.1 million. Substantially all net
proceeds from equity issuances were used to repay debt.
Guidance:
The Company has revised guidance to reflect the effects of
capital raising activities completed in the first quarter.
The Company estimates operating FFO for the year of
$1.00-$1.05 per diluted share.
The change in guidance is entirely attributed to capital
raising activities in the first quarter that were larger than
expected and occurred earlier in the year than budgeted.
Operational and asset sale assumptions provided in a press
release on January 12, 2010 remain
the same.
Developers Diversified owns and manages approximately 640 retail
operating and development properties in 44 states, Brazil, Canada and Puerto
Rico. Totaling more than 140 million square feet, the
Company's shopping center portfolio features open-air,
value-oriented neighborhood and community centers, mixed-use
centers and lifestyle centers located in prime markets with stable
populations and high-growth potential. Developers Diversified is
the largest landlord in Puerto
Rico and owns a premier portfolio of regional malls in and
around Sao Paulo, Brazil.
Developers Diversified is a self-administered and self-managed REIT
operating as a fully integrated real estate company. Additional
information about the Company is available on the Company's website
at www.ddr.com.
A copy of the Company's Supplemental Financial/Operational
package is available to all interested parties upon request at the
Company's corporate office to Kate
Deck, Investor Relations Director, Developers Diversified
Realty Corporation, 3300 Enterprise Parkway, Beachwood, Ohio 44122 or on the Company's Web
site at www.ddr.com.
Developers Diversified Realty Corporation considers portions of
this information to be forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, both as amended, with
respect to the Company's expectation for future periods.
Although the Company believes that the expectations reflected
in such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that its expectations will be
achieved. For this purpose, any statements contained herein
that are not historical fact may be deemed to be forward-looking
statements. There are a number of important factors that
could cause our results to differ materially from those indicated
by such forward-looking statements, including, among other factors,
local conditions such as oversupply of space or a reduction in
demand for real estate in the area; competition from other
available space; dependence on rental income from real property;
the loss of, significant downsizing of or bankruptcy of a major
tenant; constructing properties or expansions that produce a
desired yield on investment; our ability to sell assets on
commercially reasonable terms; our ability to secure equity or debt
financing on commercially acceptable terms or at all; our ability
to enter into definitive agreements with regard to our financing
and joint venture arrangements or our failure to satisfy conditions
to the completion of these arrangements; and the finalization of
the financial statements for the three-month period ended
March 31, 2010. For additional
factors that could cause the results of the Company to differ
materially from these indicated in the forward-looking statements,
please refer to the Company's Form 10-K as of December 31, 2009. The Company undertakes
no obligation to publicly revise these forward-looking statements
to reflect events or circumstances that arise after the date
hereof.
DEVELOPERS DIVERSIFIED REALTY
CORPORATION
Financial Highlights
(In thousands - except per share data)
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|
Three-Month Period
Ended March 31,
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|
Revenues:
|
2010
|
|
2009
|
|
Minimum rents
(A)
|
$136,889
|
|
$136,130
|
|
Percentage and overage
rents (A)
|
2,119
|
|
2,429
|
|
Recoveries from
tenants
|
47,434
|
|
46,476
|
|
Ancillary and other
property income
|
4,973
|
|
4,922
|
|
Management, development
and other fee income
|
14,016
|
|
14,461
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|
Other (B)
|
1,270
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|
3,248
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|
|
206,701
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|
207,666
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|
Expenses:
|
|
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Operating and
maintenance (C)
|
36,101
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|
34,320
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|
Real estate
taxes
|
28,940
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|
27,275
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Impairment charges
(D)
|
2,050
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|
7,305
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|
General and
administrative (E)
|
23,275
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|
19,171
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|
Depreciation and amortization
|
57,069
|
|
59,605
|
|
|
147,435
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|
147,676
|
|
Other income
(expense):
|
|
|
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Interest income
|
1,330
|
|
3,029
|
|
Interest expense
(F)
|
(59,909)
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|
(57,750)
|
|
Gain on repurchases of
senior notes (F)
|
1,091
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|
72,579
|
|
Loss on equity
derivative instruments (G)
|
(24,868)
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|
-
|
|
Other expenses
(H)
|
(3,079)
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|
(4,507)
|
|
|
(85,435)
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|
13,351
|
|
(Loss) income before equity in
net income of joint ventures, tax (expense) benefit of taxable REIT
subsidiaries and state franchise and income taxes, discontinued
operations and (loss) gain on disposition of real estate, net of
tax
|
(26,169)
|
|
73,341
|
|
Equity in net income of joint
ventures (I)
|
1,647
|
|
351
|
|
Tax (expense) benefit of
taxable REIT subsidiaries and state franchise and income
taxes
|
(1,017)
|
|
1,036
|
|
(Loss) income from continuing
operations
|
(25,539)
|
|
74,728
|
|
(Loss) income from
discontinued operations (J)
|
(370)
|
|
9,603
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|
(Loss) income before gain on
disposition of real estate
|
(25,909)
|
|
84,331
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|
(Loss) gain on disposition of
real estate, net of tax
|
(675)
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|
445
|
|
Net (loss) income
|
(26,584)
|
|
84,776
|
|
Loss attributable to
non-controlling interests
|
2,337
|
|
2,625
|
|
Net (loss) income attributable to
DDR
|
$ (24,247)
|
|
$ 87,401
|
|
Net (loss) income applicable to common
shareholders
|
$ (34,814)
|
|
$ 76,834
|
|
Funds From Operations
("FFO"):
|
|
|
|
|
Net (loss) income
applicable to common shareholders
|
$ (34,814)
|
|
$ 76,834
|
|
Depreciation and
amortization of real estate investments
|
54,594
|
|
61,036
|
|
Equity in net income of
joint ventures (I)
|
(1,647)
|
|
(778)
|
|
Joint ventures' FFO
(I)
|
11,555
|
|
15,159
|
|
Non-controlling
interests (OP Units)
|
8
|
|
79
|
|
Gain on disposition of
depreciable real estate
|
(1,267)
|
|
(12,334)
|
|
FFO applicable to common
shareholders
|
28,429
|
|
139,996
|
|
Preferred
dividends
|
10,567
|
|
10,567
|
|
FFO
|
$ 38,996
|
|
$150,563
|
|
Per share
data:
|
|
|
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|
Earnings per common
share
|
|
|
|
|
Basic
|
$ (0.15)
|
|
$
0.59
|
|
Diluted
|
$ (0.15)
|
|
$
0.59
|
|
Dividends
Declared
|
$
0.02
|
|
$
0.20
|
|
Funds From Operations –
Basic (K)
|
$
0.12
|
|
$
1.08
|
|
Funds From Operations –
Diluted (K)
|
$
0.12
|
|
$
1.08
|
|
Basic – average shares
outstanding
|
227,133
|
|
128,485
|
|
Diluted – average shares
outstanding
|
227,133
|
|
129,684
|
|
|
|
|
|
|
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|
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(A)
|
Base and percentage rental revenues for the
three-month period ended March 31, 2010, as compared to the
prior-year comparable period, increased $0.5 million primarily due
to the acquisition of three shopping centers and the completion of
certain developments in 2009 aggregating $3.5 million. This
increase was partially offset by store closings related to major
tenant bankruptcies in the first quarter of 2009, which
approximated $3.0 million. Also included in rental revenues
for both the three-month periods ended March 31, 2010 and 2009 is
approximately $1.0 million resulting from the recognition of
straight-line rents, including discontinued operations.
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|
|
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(B)
|
Other revenues were comprised of the following (in
millions):
|
|
|
|
|
|
|
|
Three Months Ended March
31,
|
|
|
|
2010
|
|
2009
|
|
Lease termination fees
|
|
$ 0.6
|
|
$ 1.5
|
|
Financing fees
|
|
0.2
|
|
0.3
|
|
Other miscellaneous
|
|
0.5
|
|
1.4
|
|
|
|
$ 1.3
|
|
$ 3.2
|
|
|
|
|
|
|
|
|
(C)
|
Operating and maintenance expense, including
discontinued operations, includes the following expenses (in
millions):
|
|
|
|
|
|
|
|
Three Months Ended March
31,
|
|
|
|
2010
|
|
2009
|
|
Bad debt expense
|
|
$ 3.2
|
|
$ 2.8
|
|
Ground rent expense (a)
|
|
$ 1.3
|
|
$ 1.1
|
|
|
|
(a)
|
Includes non-cash expense for the three-month
periods ended March 31, 2010 and 2009 of approximately $0.5 million
and $0.4 million, respectively, related to straight-line ground
rent expense.
|
|
|
|
|
|
|
|
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(D)
|
The Company recorded impairment charges during the
three-month period ended March 31, 2010, on consolidated assets
that are either under contract or being marketed for sale, as the
book basis of the assets was in excess of the estimated fair market
value. An additional $1.0 million in impairment charges were
reported for the three-month period ended March 31, 2010, as part
of discontinued operations (see footnote J).
|
|
|
|
|
(E)
|
General and administrative expenses include
internal leasing salaries, legal salaries and related expenses
associated with the releasing of space, which are charged to
operations as incurred. For the three-month periods ended
March 31, 2010 and 2009, general and administrative expenses were
approximately 5.5% and 4.3% of total revenues, respectively,
including joint venture and managed property revenues. During
the three months ended March 31, 2010, the Company incurred a $2.1
million separation charge relating to the departure of an executive
officer. Excluding this charge, general and administrative expenses
were 5.0% of total revenues for the three months ended March 31,
2010.
|
|
|
|
|
(F)
|
The Company recorded non-cash interest expense of
approximately $2.0 million and $3.9 million for the three-month
periods ended March 31, 2010 and 2009, respectively, related to
amortization of the debt discount on its convertible debt
outstanding. In addition, the gain on the repurchases of
senior notes was reduced by $2.6 million and $7.5 million for
the three-month periods ended March 31, 2010 and 2009,
respectively, related to the adjustment required for the
convertible debt.
|
|
|
|
|
(G)
|
Represents the non-cash impact of the valuation
adjustments of the equity derivative instruments issued as part of
the Otto Transaction completed in 2009.
|
|
|
|
|
(H)
|
Other (expenses) income for the three months ended
March 31, 2010, primarily related to debt extinguishment costs of
$1.1 million, litigation-related expenditures of $1.7 million and
the write off of costs related to abandoned development projects
and other transactions of $0.7 million. Other (expenses)
income for the three months ended March 31, 2009, primarily related
to the write-off of costs associated with abandoned development
projects and other transactions as well as litigation-related
expenditures aggregating $3.6 million and a $0.9 million loss on
the sale of Macquarie DDR Trust units.
|
|
|
|
|
(I)
|
The following is a summary of the combined
operating results of the Company's unconsolidated joint ventures.
The results for the three month-period ended March 31, 2009
include the MDT US LLC joint venture. The Company had its
interest in this joint venture redeemed in October 2009.
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2010
|
|
2009
|
|
Revenues from operations
(a)
|
$172,225
|
|
$214,154
|
|
|
|
|
|
|
Operating expenses
|
66,887
|
|
82,081
|
|
Depreciation and amortization
of real estate investments
|
48,058
|
|
58,727
|
|
Interest expense
|
59,995
|
|
64,500
|
|
|
174,940
|
|
205,308
|
|
(Loss) income from operations
before tax expense and discontinued operations
|
(2,715)
|
|
8,846
|
|
Income tax expense
|
(4,799)
|
|
(1,990)
|
|
Loss from discontinued
operations, net of tax
|
(584)
|
|
(246)
|
|
Loss on disposition of
discontinued operations, net of tax (b)
|
(8,752)
|
|
(29)
|
|
Loss on disposition of assets
(c)
|
-
|
|
(26,741)
|
|
Other, net
|
-
|
|
11,678
|
|
Net loss
|
$(16,850)
|
|
$ (8,482)
|
|
DDR ownership interests
(d)
|
$ 1,660
|
|
$
791
|
|
|
|
|
|
|
|
FFO from joint ventures are summarized as follows:
|
|
Net loss
|
$(16,850)
|
|
$ (8,482)
|
|
Depreciation and amortization of real estate
investments
|
50,314
|
|
64,041
|
|
|
$
33,464
|
|
$
55,559
|
|
DDR ownership interests
|
$
11,555
|
|
$
15,159
|
|
DDR joint venture distributions received,
net
|
$
10,799
|
|
$
8,675
|
|
|
|
|
|
|
|
|
(a)
|
Revenues for the three-month periods ended March
31, 2010 and 2009 reflect an approximate $1.2 million reduction and
$0.7 million increase, respectively, resulting from the
recognition of straight-line rents, of which the Company's
proportionate share was $0.2 million in 2010 and
de minimis in
2009.
|
|
|
|
|
|
|
(b)
|
Loss on disposition of discontinued operations
includes the sale of 16 properties by one of the Company's unconsolidated joint ventures
in the first quarter of 2010. This disposition of assets
resulted in a loss of $8.7 million for the three months ended March 31, 2010
in addition to the $145.0 million impairment charge recorded by
this joint venture in the fourth quarter of 2009.
|
|
|
|
|
|
|
(c)
|
An unconsolidated joint venture in the first
quarter of 2009 disposed of a property resulting in a loss of $26.7
million, of which the Company's proportionate share was $5.8
million.
|
|
|
|
|
|
|
(d)
|
The Company's share of joint venture equity in net
loss was decreased by $0.4 million for the three-month period ended March 31,
2009. This adjustment related primarily to basis differences
impacting amortization and depreciation, impairment charges and
(loss) gain on dispositions
|
|
|
|
|
|
|
|
At March 31, 2010 and 2009, the Company owned
joint venture interests, excluding consolidated joint ventures,
in 258 and 327 shopping center properties, respectively.
|
|
|
|
|
(J)
|
The operating results relating
to assets classified as discontinued operations are summarized as
follows:
|
|
|
|
|
|
|
Three Months Ended
March
31,
|
|
|
2010
|
|
2009
|
|
Revenues from operations
|
$ 657
|
|
$ 12,241
|
|
|
|
|
|
|
Operating expenses
|
379
|
|
4,039
|
|
Impairment charges
|
1,022
|
|
3,600
|
|
Interest, net
|
90
|
|
3,133
|
|
Depreciation and amortization of real estate
investments
|
102
|
|
3,475
|
|
Total expenses
|
1,593
|
|
14,247
|
|
Loss before gain on disposition of real
estate
|
(936)
|
|
(2,006)
|
|
Gain on disposition of real estate, net
|
566
|
|
11,609
|
|
Net (loss) income
|
$ (370)
|
|
$ 9,603
|
|
|
|
|
|
|
|
(K)
|
For purposes of computing FFO per share (basic),
the weighted average shares outstanding were adjusted to reflect
the assumed conversion of approximately 0.4 million Operating
Partnership Units ("OP Units") outstanding at March 31, 2010 and
2009, into 0.4 million common shares for the three-month periods
ended March 31, 2010 and 2009, on a weighted-average basis.
The weighted average diluted shares and OP Units outstanding,
for purposes of computing both FFO and operating FFO, were
approximately 236.2 million and 129.7 million for the three-month
periods ended March 31, 2010 and 2009, respectively.
|
|
|
|
DEVELOPERS DIVERSIFIED REALTY
CORPORATION
Financial
Highlights
(In thousands)
|
|
Selected Balance Sheet Data (A):
|
|
|
|
|
|
March 31, 2010
|
|
December 31, 2009
|
|
Assets:
|
|
|
|
|
Real estate and rental property:
|
|
|
|
|
Land
|
$1,963,032
|
|
$1,971,782
|
|
Buildings
|
5,674,571
|
|
5,694,659
|
|
Fixtures and tenant
improvements
|
297,114
|
|
287,143
|
|
|
7,934,717
|
|
7,953,584
|
|
Less: Accumulated depreciation
|
(1,358,870)
|
|
(1,332,534)
|
|
|
6,575,847
|
|
6,621,050
|
|
Land held for development and construction in
progress
|
848,552
|
|
858,900
|
|
Assets held for sale
|
2,430
|
|
10,453
|
|
Real estate, net
|
7,426,829
|
|
7,490,403
|
|
|
|
|
|
|
Investments in and advances to joint
ventures
|
409,639
|
|
420,541
|
|
Cash
|
25,748
|
|
26,172
|
|
Restricted cash (B)
|
57,782
|
|
95,673
|
|
Notes receivable
|
59,234
|
|
74,997
|
|
Receivables, including straight-line rent,
net
|
137,955
|
|
146,809
|
|
Other assets, net
|
170,816
|
|
172,011
|
|
|
$8,288,003
|
|
$8,426,606
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
Indebtedness:
|
|
|
|
|
Revolving credit
facilities
|
$ 346,015
|
|
$ 775,028
|
|
Unsecured debt
|
1,840,275
|
|
1,689,841
|
|
Mortgage and other secured
debt
|
2,544,611
|
|
2,713,794
|
|
|
4,730,901
|
|
5,178,663
|
|
Dividends payable
|
11,968
|
|
10,985
|
|
Other liabilities (C)
|
280,226
|
|
283,995
|
|
|
5,023,095
|
|
5,473,643
|
|
Redeemable operating partnership units
|
627
|
|
627
|
|
Equity
|
3,264,281
|
|
2,952,336
|
|
|
$8,288,003
|
|
$8,426,606
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Amounts include the consolidation of a 50% owned
joint venture, DDR MDT MV LLC ("MV LLC"), that owns 30 sites
formerly occupied by Mervyns at March 31, 2010, which includes the
following (in millions):
|
|
|
|
|
|
|
March 31, 2010
|
|
December 31, 2009
|
|
|
|
|
|
|
Real estate, net
|
$214.2
|
|
$218.7
|
|
Restricted cash
|
43.3
|
|
50.5
|
|
Mortgage debt
|
220.6
|
|
225.4
|
|
Non-controlling interests
|
20.0
|
|
22.4
|
|
|
|
In addition, included in the Company's balance
sheet as of December 31, 2009, was $28.5 million of assets owned by
a consolidated joint venture that was deconsolidated in accordance
with the adoption of Accounting Standard Codification No. 810,
"Amendments to FASB Interpretation No. 46(R)" ("ASC 810") as of
January 1, 2010.
|
|
|
|
|
|
(B)
|
Included in restricted cash are amounts held by a
lender on behalf of MV LLC as noted above. Also included in
restricted cash is $14.5 million and $45.2 million at March 31, 2010 and December 31, 2009,
respectively, relating to the terms of a bond issue for one of the
Company's projects in Mississippi.
|
|
|
|
|
(C)
|
Includes an $81.0 million and $56.1 million non-cash liability
relating to the warrants issued in connection with the Otto
Transaction as of March 31, 2010 and December 31, 2009,
respectively. The liability will be reclassified into equity
upon ultimate exercise or expiration of the warrants.
|
|
|
|
Selected Balance Sheet Data (continued):
Combined condensed balance sheets relating to the Company's
joint ventures are as follows:
|
|
|
March 31, 2010
|
|
December 31, 2009
|
|
|
|
|
|
|
Land
|
$1,645,455
|
|
$1,782,431
|
|
Buildings
|
4,879,556
|
|
5,207,234
|
|
Fixtures and tenant improvements
|
144,493
|
|
146,716
|
|
|
6,669,504
|
|
7,136,381
|
|
Less: Accumulated depreciation
|
(637,662)
|
|
(636,897)
|
|
|
6,031,842
|
|
6,499,484
|
|
Land held for development and construction in
progress (A)
|
159,249
|
|
130,410
|
|
Real estate, net
|
6,191,091
|
|
6,629,894
|
|
Receivables, including straight-line rent,
net
|
114,758
|
|
113,630
|
|
Leasehold interests
|
11,166
|
|
11,455
|
|
Other assets
|
328,014
|
|
342,192
|
|
|
$6,645,029
|
|
$7,097,171
|
|
|
|
|
|
|
Mortgage debt (B)
|
$4,151,864
|
|
$4,547,711
|
|
Notes and accrued interest payable to
DDR
|
74,724
|
|
73,477
|
|
Other liabilities
|
195,498
|
|
194,065
|
|
|
4,422,086
|
|
4,815,253
|
|
Accumulated equity
|
2,222,943
|
|
2,281,918
|
|
|
$6,645,029
|
|
$7,097,171
|
|
|
|
|
|
|
|
(A)
|
The Company's proportionate share of joint venture
land held for development and construction in progress aggregated
approximately $51.5 million and $37.6 million at March 31, 2010 and
December 31, 2009, respectively.
|
|
|
|
|
|
The combined condensed balance sheet at March 31,
2010 included a joint venture under development with assets of
approximately $24.9 million that was deconsolidated by the Company
as of January 1, 2010 due to the adoption of ASC 810.
|
|
|
|
|
(B)
|
The Company's proportionate share of joint venture
debt aggregated approximately $855.3 million and $917.0 million at
March 31, 2010 and December 31, 2009, respectively.
|
|
|
|
SOURCE Developers Diversified Realty