BEACHWOOD, Ohio, April 30, 2013 /PRNewswire/ -- DDR Corp.
(NYSE: DDR) today announced operating results for the first quarter
ended March 31, 2013.
(Logo: http://photos.prnewswire.com/prnh/20110912/CL65938LOGO
)
SIGNIFICANT FIRST QUARTER ACTIVITY
- Generated Operating FFO of $0.27
per diluted share, an increase of 12.5% compared to the first
quarter of 2012
- Executed 431 new leases and renewals for 2.1 million square
feet
- Increased the portfolio leased rate by 20 basis points to 94.4%
at March 31, 2013, from 94.2% at
December 31, 2012 and by 70 basis
points from 93.7% at March 31,
2012
- Generated positive leasing spreads, with new leases up 10.7% at
100% ownership and 11.9% on a pro rata basis, and renewals up 7.0%
at 100% ownership and 7.5% on a pro rata basis; blended spreads
were up 7.6% at 100% ownership and 8.4% on a pro rata basis
- Generated same store net operating income growth of 3.3% at
100% ownership and 3.1% on a pro rata basis as compared to the
prior year
- Acquired $81 million of prime
assets
- Issued $40 million of common
shares to fund the net investment in prime assets
- Completed the disposition of $46
million of non-prime assets; DDR's pro rata gross proceeds
was $35 million
- Refinanced two unsecured revolving credit facilities with an
aggregate availability of $815
million and a $400 million
secured term loan
- Issued $150 million of 6.250%
preferred shares, the net proceeds of which will be used to redeem
$150 million of 7.375% preferred
shares
"We are pleased to report continued growth in Operating FFO
while simultaneously improving the quality of our portfolio and
enhancing balance sheet flexibility," commented DDR's chief
executive officer, Daniel B.
Hurwitz.
FINANCIAL HIGHLIGHTS
The Company's first quarter
Operating Funds From Operations attributable to common shareholders
("Operating FFO") increased to $86.1
million, or $0.27 per diluted
share, which compares to $66.8
million, or $0.24 per diluted
share, in the prior year. The increase in Operating FFO for
the three-month period ended March 31,
2013, as compared to 2012, primarily is due to organic
growth and shopping center acquisitions.
Funds From Operations attributable to common shareholders
("FFO") for the three-month period ended March 31, 2013, increased to $82.5 million, or $0.26 per diluted share, which compares to
$59.7 million, or $0.21 per diluted share, in the prior year.
The increase in FFO for the three-month period ended March 31, 2013, as compared to the same period in
2012, primarily is due to the same factors impacting Operating FFO
as well as the loss on debt retirement recorded in the first
quarter of 2012 related to the Company's repurchase of a portion of
its 9.625% unsecured senior notes.
Net loss attributable to common shareholders for the three-month
period ended March 31, 2013, was
$0.7 million, or $0.00 per diluted share, which compares to net
loss of $22.0 million, or
$0.08 per diluted share, in the prior
year. The increase in net income attributable to common
shareholders for the three-month period ended March 31, 2013, as compared to net income for the
same period in 2012 primarily is due to the same factors impacting
FFO as well as lower impairment charges on depreciable assets.
LEASING & PORTFOLIO OPERATIONS
The following
results for the three-month period ended March 31, 2013, highlight continued strong
leasing activity throughout the portfolio:
- Executed 198 new leases aggregating 0.9 million square feet and
233 renewals aggregating approximately 1.2 million square
feet
- Generated positive leasing spreads for the first quarter, with
new leases up 10.7% at 100% ownership and 11.9% on a pro rata
basis, and renewals up 7.0% at 100% ownership and 7.5% on a pro
rata basis; blended spreads were up 7.6% at 100% ownership and 8.4%
on a pro rata basis
- The portfolio leased rate increased to 94.4% at March 31, 2013, as compared to 93.7% at
March 31, 2012 and 94.2% at
December 31, 2012
- Same store net operating income ("NOI") increased by 3.3% at
100% ownership for the three-month period ended March 31, 2013 as compared to the prior year and
3.1% on a pro rata basis
ACQUISITIONS
In the first quarter of 2013, the
Company acquired two prime assets located in Dallas, Texas and Oakland, California. The acquisitions
were funded primarily with proceeds from asset sales as well as
common shares issued in March
2013.
DDR acquired Marketplace at Highland
Village, a 400,000 square foot prime power center, in
Dallas, Texas, for $40 million. The trade area demographics
include an average household income of over $100,000 and population of 237,000 people, and
features anchor tenants such as Walmart, T.J. Maxx, HomeGoods, Petco, LA Fitness, and
Office Depot. Highland
Village is 90% leased, 85% of its revenue is generated by
national retailers, and the Company will leverage its operating
platform to create additional value through lease up as well as the
recapture and downsizing of space that can be marked to market.
The Company also acquired Whole Foods at Bay Place, a 57,000
square foot prime asset in Oakland,
California, for $41
million. This asset features a top-performing Whole
Foods operating in a densely populated high barrier-to-entry urban
infill location. Trade area demographics include an average
household income of approximately $90,000 and a population of 630,000 people.
The asset provides low risk current cash flow from a high credit
tenant, consistent rent growth, and long-term NOI enhancement
potential based on the quality of the location and future asset
intensification opportunities.
In April 2013, the Company
acquired its partner's 85% interest in five prime power centers for
$94 million. The Company funded its
investment primarily with proceeds from the issuance of common
shares, proceeds from asset sales and corporate debt. These
prime power centers will be unencumbered. The Company
acquired its partner's interest in The Walk at Highwoods Preserve
(Tampa, FL), Douglasville Pavilion
(Atlanta, GA), Commonwealth Center
and Chesterfield Crossing (Richmond,
VA), and Jefferson Plaza
(Norfolk, VA). The five
prime power centers aggregate 1.3 million of total square feet, are
currently 98% leased, and are anchored by national tenants such as
Walmart, Target, Costco, Home Depot, T.J.
Maxx, Ross Dress for Less,
PetSmart, Michael's, Fresh Market, Pier One and Cost Plus World
Market.
FINANCINGS
In January
2013, the Company refinanced its two unsecured revolving
credit facilities with an aggregate availability of $815 million and its $400
million secured term loan. The Company's primary
refinanced $750 million unsecured
revolving credit facility has an initial maturity of April 2017 with borrower options to extend an
additional year, and contains an accordion feature that provides
for $1.25 billion of potential total
availability. Pricing on both refinanced revolving credit
facilities was reduced and is currently set at LIBOR plus 140 basis
points, a decrease of 25 basis points from the previous rate, and
is determined based upon DDR's credit ratings from Moody's and
S&P. Further, the annual facility fee for both revolving credit
facilities has been reduced from 35 basis points to 30 basis
points.
The refinanced secured term loan has an initial maturity of
April 2017 with a borrower option to
extend an additional year. Pricing on the secured term loan
is currently set at LIBOR plus 155 basis points, a decrease of 15
basis points from the previous rate, and is determined based upon
DDR's credit ratings from Moody's and S&P.
In April 2013, the Company issued
$150 million of its newly designated
6.250% Class K Cumulative Redeemable Preferred Shares at a price of
$25.00 per depositary share. In
addition, the Company announced its intent to redeem $150 million of its Class H Cumulative Redeemable
Preferred Shares at a redemption price of $25.1127 per depositary share (the sum of
$25.00 per depositary share and
dividends per depositary share of $0.1127 prorated to the redemption date).
The Company expects to record a non-cash charge of approximately
$5.2 million to net income
attributable to common shareholders in the second quarter of 2013
related to the prorated write-off of the Class H Cumulative
Redeemable Preferred Shares' original issuance costs.
The Company accessed its at-the-market common equity program and
issued 2.3 million new common shares during the first quarter of
2013 at an average price of $17.57
per share, generating gross proceeds of $40
million, which were used to partially fund the acquisition
of prime assets. In April 2013,
the Company issued an additional 2.5 million new common shares at
an average price of $17.83 per share,
generating gross proceeds of $45
million, to partially fund the acquisition of five prime
assets.
DISPOSITIONS
The Company sold seven consolidated
operating shopping centers aggregating approximately 0.4 million
square feet in the first quarter of 2013, generating gross proceeds
of approximately $24.7 million.
In addition, the Company sold $7.3
million of non-income producing assets. The Company
recorded an aggregate net gain of approximately $0.5 million related to asset sales in the first
quarter of 2013.
In the first quarter of 2013, the Company's unconsolidated joint
ventures sold 15 assets, generating gross proceeds of approximately
$14.5 million, of which the Company's
proportionate share was $2.9
million. The Company had previously written down its
investment in these assets to zero.
2013 GUIDANCE
There has been no change in Operating
FFO per share guidance since the last update provided on
January 7, 2013. The Company
continues to estimate Operating FFO for 2013 between $1.07 and $1.11 per diluted share.
NON-GAAP DISCLOSURES
FFO is a supplemental non-GAAP
financial measurement used as a standard in the real estate
industry and a widely accepted measure of real estate investment
trust ("REIT") performance. Management believes that FFO and
Operating FFO provide additional indicators of the financial
performance of a REIT. The Company also believes that FFO and
Operating FFO more appropriately measure the core operations of the
Company and provide benchmarks to its peer group. Neither FFO nor
Operating FFO represents cash generated from operating activities
in accordance with generally accepted accounting principles
("GAAP"), is necessarily indicative of cash available to fund cash
needs and should be considered as an alternative to net income
computed in accordance with GAAP as an indicator of the Company's
operating performance or as an alternative to cash flow as a
measure of liquidity.
FFO is defined and calculated by the Company as net income,
adjusted to exclude: (i) preferred share dividends, (ii) gains and
losses from disposition of depreciable real estate property, which
are presented net of taxes, (iii) impairment charges on depreciable
real estate property and related investments, (iv) extraordinary
items and (iv) certain non-cash items. These non-cash items
principally include real property depreciation and amortization of
intangibles, equity income from joint ventures and equity income
from non-controlling interests and adding the Company's
proportionate share of FFO from its unconsolidated joint ventures
and non-controlling interests, determined on a consistent basis.
The Company calculates Operating FFO by excluding the non-operating
charges and gains described above. The Company computes FFO in
accordance with the NAREIT definition. Other real estate
companies may calculate FFO and Operating FFO in a different
manner. FFO excluding the net non-operating items detailed in
this release is useful to investors as the Company removes these
charges and gains to analyze the results of its operations and
assess performance of the core operating real estate portfolio. A
reconciliation of net income (loss) to FFO and Operating FFO is
presented in the financial highlights section of the Company's
quarterly supplement.
SAFE HARBOR
DDR considers portions of the information
in this press release to be forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, both as amended, with
respect to the Company's expectation for future periods.
Although the Company believes that the expectations reflected in
such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that its expectations will be
achieved. For this purpose, any statements contained herein
that are not historical fact may be deemed to be forward-looking
statements. There are a number of important factors that
could cause our results to differ materially from those indicated
by such forward-looking statements, including, among other factors,
local conditions such as oversupply of space or a reduction in
demand for real estate in the area; competition from other
available space; dependence on rental income from real property;
the loss of, significant downsizing of or bankruptcy of a major
tenant; constructing properties or expansions that produce a
desired yield on investment; our ability to buy or sell assets on
commercially reasonable terms; our ability to complete acquisitions
or dispositions of assets under contract; our ability to secure
equity or debt financing on commercially acceptable terms or at
all; our ability to enter into definitive agreements with regard to
our financing and joint venture arrangements or our failure to
satisfy conditions to the completion of these arrangements; the
success of our capital recycling strategy; and the finalization of
the financial statements for the three-month period ended
March 31, 2013. 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, 2012, as amended.
The Company undertakes no obligation to publicly revise these
forward-looking statements to reflect events or circumstances that
arise after the date hereof.
ABOUT DDR CORP.
DDR is an owner and manager of 445
value-oriented shopping centers representing 116 million square
feet in 39 states, Puerto Rico and
Brazil. The Company's assets are
concentrated in high barrier-to-entry markets with stable
populations and high growth potential and its portfolio is actively
managed to create long-term shareholder value. DDR is a
self-administered and self-managed REIT operating as a fully
integrated real estate company, and is publicly traded on the New
York Stock Exchange under the ticker symbol DDR. Additional
information about the Company is available at www.ddr.com.
CONFERENCE CALL INFORMATION & SUPPLEMENTAL
MATERIALS
A copy of the Company's Supplemental
Financial/Operational package is available to all interested
parties upon request to Samir
Khanal, at the Company's corporate office, 3300 Enterprise
Parkway, Beachwood, Ohio 44122 or
at www.ddr.com.
The Company will hold its quarterly conference call tomorrow,
May 1, 2013, at 10:00 a.m. Eastern Time. To participate,
please dial 800.299.8538 (domestic), or 617.786.2902
(international) at least ten minutes prior to the scheduled start
of the call. When prompted, provide the passcode:
87099285. Access to the live call and replay will also be
available through the Company's website. The replay will be
available through May 8, 2013.
DDR
Corp.
Financial Highlights
(In
Thousands)
|
|
|
|
Three-Month Periods
Ended
March 31,
|
|
2013
|
|
2012
|
Revenues:
|
|
|
|
Minimum rents (A)
|
$
144,596
|
|
$
128,279
|
Percentage and overage rents
(A)
|
1,784
|
|
1,414
|
Recoveries from tenants
|
47,390
|
|
42,496
|
Ancillary and other property income
|
5,712
|
|
6,061
|
Management, development and other fee
income
|
10,721
|
|
11,754
|
Other (B)
|
634
|
|
580
|
|
210,837
|
|
190,584
|
Expenses:
|
|
|
|
Operating and maintenance
|
33,659
|
|
32,851
|
Real estate taxes
|
27,940
|
|
24,844
|
Impairment charges (C)
|
6,926
|
|
1,541
|
General and administrative
|
19,760
|
|
19,012
|
Depreciation and amortization
|
68,980
|
|
58,779
|
|
157,265
|
|
137,027
|
Other
income (expense):
|
|
|
|
Interest income
|
7,877
|
|
1,841
|
Interest expense (D)
|
(54,894)
|
|
(55,521)
|
Loss on debt retirement, net
|
—
|
|
(5,602)
|
Other income (expense), net (E)
|
(2,901)
|
|
(1,602)
|
|
(49,918)
|
|
(60,884)
|
Income
(loss) before earnings from equity method investments and other
items
|
3,654
|
|
(7,327)
|
Equity in
net income of joint ventures (F)
|
2,954
|
|
8,248
|
Impairment
of joint venture investments (C)
|
—
|
|
(560)
|
Tax
expense of taxable REIT subsidiaries and state franchise and income
taxes
|
(367)
|
|
(177)
|
Income
from continuing operations
|
6,241
|
|
184
|
Income
(loss) from discontinued operations (G)
|
310
|
|
(15,730)
|
Income
(loss) before (loss) gain on disposition of real estate
|
6,551
|
|
(15,546)
|
(Loss)
gain on disposition of real estate, net of tax
|
(57)
|
|
665
|
Net income
(loss)
|
6,494
|
|
(14,881)
|
Income
attributable to non-controlling interests
|
(191)
|
|
(176)
|
Net
income (loss) income attributable to DDR
|
$
6,303
|
|
$
(15,057)
|
Preferred dividends
|
(7,030)
|
|
(6,967)
|
Net
loss attributable to common shareholders
|
$
(727)
|
|
$
(22,024)
|
Funds
From Operations ("FFO"):
|
|
|
|
Net loss attributable to common
shareholders
|
$
(727)
|
|
$
(22,024)
|
Depreciation and amortization of real estate
investments
|
67,016
|
|
58,447
|
Equity in net income of joint ventures
(F)
|
(2,954)
|
|
(8,248)
|
Impairment of depreciable joint venture
investments
|
—
|
|
560
|
Joint ventures' FFO (F)
|
12,226
|
|
13,985
|
Non-controlling interests (OP Units)
|
54
|
|
48
|
Impairment of depreciable real estate
assets
|
7,679
|
|
17,340
|
Gain on disposition of depreciable real estate,
net
|
(778)
|
|
(360)
|
FFO attributable to common
shareholders
|
82,516
|
|
59,748
|
Non-operating items, net (H)
|
3,536
|
|
7,058
|
Operating FFO
|
$
86,052
|
|
$
66,806
|
|
|
|
|
Earnings per share – Diluted
(I)
|
$
—
|
|
$
(0.08)
|
Funds From Operations – Diluted
(I)
|
$
0.26
|
|
$
0.21
|
Operating Funds From Operations – Diluted
(I)
|
$
0.27
|
|
$
0.24
|
DDR
Corp.
Financial Highlights
(In Thousands)
|
|
|
|
|
Selected Balance Sheet Data
|
|
|
|
|
March
31, 2013
|
|
December 31, 2012
|
Assets:
|
|
|
|
Real
estate and rental property:
|
|
|
|
Land
|
$
1,894,986
|
|
$
1,900,401
|
Buildings
|
5,824,030
|
|
5,773,961
|
Fixtures and tenant improvements
|
498,390
|
|
489,626
|
|
8,217,406
|
|
8,163,988
|
Less:
Accumulated depreciation
|
(1,721,378)
|
|
(1,670,717)
|
|
6,496,028
|
|
6,493,271
|
Land held
for development and construction in progress
|
489,381
|
|
475,123
|
Real
estate held for sale, net
|
7,255
|
|
—
|
Real
estate, net
|
6,992,664
|
|
6,968,394
|
|
|
|
|
Investments in and advances to joint
ventures
|
617,010
|
|
613,017
|
Cash
|
18,872
|
|
31,174
|
Restricted
cash
|
22,498
|
|
23,658
|
Notes
receivable, net
|
57,558
|
|
68,718
|
Receivables, including straight-line rent,
net
|
113,934
|
|
126,228
|
Other
assets, net
|
239,286
|
|
224,648
|
|
$
8,061,822
|
|
$
8,055,837
|
|
|
|
|
Liabilities & Equity:
|
|
|
|
Indebtedness:
|
|
|
|
Revolving credit facilities
|
$
190,468
|
|
$
147,905
|
Unsecured debt
|
2,149,724
|
|
2,147,097
|
Unsecured term loan
|
350,000
|
|
350,000
|
Mortgage and other secured debt
|
1,663,900
|
|
1,674,141
|
|
4,354,092
|
|
4,319,143
|
Dividends payable
|
49,813
|
|
44,210
|
Other liabilities
|
290,330
|
|
326,024
|
Total liabilities
|
4,694,235
|
|
4,689,377
|
|
|
|
|
Preferred
shares
|
405,000
|
|
405,000
|
Common
shares
|
31,747
|
|
31,524
|
Paid-in-capital
|
4,668,142
|
|
4,629,257
|
Accumulated distributions in excess of net
income
|
(1,738,333)
|
|
(1,694,822)
|
Deferred
compensation obligation
|
15,532
|
|
15,556
|
Accumulated other comprehensive income
|
(24,136)
|
|
(27,925)
|
Less: Common shares in treasury at
cost
|
(14,445)
|
|
(16,452)
|
Non-controlling interests
|
24,080
|
|
24,322
|
Total equity
|
3,367,587
|
|
3,366,460
|
|
$
8,061,822
|
|
$
8,055,837
|
DDR
Corp. Financial Highlights
|
|
|
|
(A) The
increase in base and percentage rental revenues for the three-month
period ended March 31,
2013, is as follows (in millions):
|
|
|
|
|
|
Increase
(Decrease)
|
Acquisition of shopping centers
|
|
$
12.2
|
Comparable
portfolio properties
|
|
3.0
|
Development or redevelopment properties
|
|
0.6
|
|
|
$
15.8
|
Revenue
resulting from the recognition of straight-line rents, including
discontinued operations,
is as follows (in millions):
|
|
|
|
|
|
Three-Month Periods
Ended March 31,
|
|
|
2013
|
|
2012
|
Straight-line rents
|
|
$
1.4
|
|
$
0.4
|
(B) Other
revenues were comprised of the following (in millions):
|
|
|
|
|
|
Three-Month Periods
Ended March 31,
|
|
|
2013
|
|
2012
|
Lease
termination fees
|
|
$
0.5
|
|
$
0.5
|
Other
miscellaneous
|
|
0.1
|
|
0.1
|
|
|
$
0.6
|
|
$
0.6
|
(C) The
Company recorded impairment charges on the following (in
millions):
|
|
|
|
|
|
Three-Month Periods
Ended March 31,
|
|
|
2013
|
|
2012
|
|
|
|
|
|
Assets
marketed for sale
|
|
$
6.9
|
|
$
1.5
|
Total continuing operations
|
|
6.9
|
|
1.5
|
|
|
|
|
|
Sold
assets or assets held for sale
|
|
0.8
|
|
15.8
|
Total discontinued operations
|
|
0.8
|
|
15.8
|
Joint
venture investments
|
|
—
|
|
0.6
|
Total
impairment charges
|
|
$
7.7
|
|
$
17.9
|
(D) The
Company recorded the following in connection with its outstanding
convertible debt (in
millions):
|
|
|
|
|
|
Three-Month Periods
Ended March 31,
|
|
|
2013
|
|
2012
|
Non-cash
interest expense related to amortization of the debt
discount
|
|
$
2.6
|
|
$
3.2
|
(E) Other
income (expense) was comprised of the following (in
millions):
|
|
|
|
|
|
Three-Month Periods
Ended March 31,
|
|
|
2013
|
|
2012
|
Transaction and other (expenses) income
|
|
$
(0.5)
|
|
$
(0.6)
|
Litigation-related expenses
|
|
(0.3)
|
|
(0.7)
|
Debt
extinguishment costs, net
|
|
(2.1)
|
|
(0.3)
|
|
|
$
(2.9)
|
|
$
(1.6)
|
(F) At
March 31, 2013 and 2012, the Company had investments in joint
ventures, excluding
consolidated joint ventures, in 206 and 172 shopping center
properties, respectively.
|
|
|
(G) The
operating results related to assets classified as discontinued
operations are summarized
as follows (in millions):
|
|
|
|
Three-Month Periods Ended
March 31,
|
|
2013
|
|
2012
|
Revenues
from operations
|
$
0.8
|
|
$
6.1
|
|
|
|
|
Operating
expenses
|
—
|
|
2.9
|
Impairment
charges
|
0.8
|
|
15.8
|
Interest,
net
|
0.1
|
|
1.4
|
Depreciation and amortization
|
0.2
|
|
1.8
|
Total expenses
|
1.1
|
|
21.9
|
Loss
before gain on disposition of real estate
|
(0.3)
|
|
(15.8)
|
Gain on
disposition of real estate, net
|
0.6
|
|
0.1
|
Net income
(loss)
|
$
0.3
|
|
$
(15.7)
|
(H) The
gains and charges excluded from Operating FFO for the three-month
periods ended March
31, 2013 and 2012, respectively, are summarized as follows (in
millions):
|
|
|
|
Three-Month Periods Ended
March 31,
|
|
2013
|
|
2012
|
Loss on
debt retirement, net
|
$
—
|
|
$
5.6
|
Other
expense (income), net – transaction costs, litigation
costs and debt extinguishment costs
|
3.2
|
|
1.7
|
Equity in
net loss of joint ventures – currency adjustments,
debt extinguishment and other expenses
|
0.2
|
|
0.1
|
Non-cash
loss (gain) on disposition of non-depreciable
real estate, net
|
0.2
|
|
(0.3)
|
Total adjustments from FFO to Operating
FFO
|
$
3.6
|
|
$
7.1
|
(I) The
Company's per share information is as follows:
|
|
|
|
At
March 31,
|
|
2013
|
|
2012
|
Common
shares outstanding
|
317.5
|
|
277.5
|
OP Units
outstanding ("OP Units")
|
0.4
|
|
0.4
|
|
|
|
|
|
|
|
|
|
Three-Month Periods
Ended
March 31,
|
|
2013
|
|
2012
|
Earnings per common share:
|
|
|
|
Basic
|
$
—
|
|
$
(0.08)
|
Diluted
|
$
—
|
|
$
(0.08)
|
Basic – average shares outstanding
|
313.2
|
|
275.2
|
Diluted – average shares outstanding
|
313.2
|
|
275.2
|
Dividends Declared:
|
$
0.135
|
|
$
0.12
|
|
|
|
|
FFO per
share:
|
|
|
|
Basic
|
$
0.26
|
|
$
0.22
|
Diluted
|
$
0.26
|
|
$
0.21
|
Weighted average common shares outstanding
|
315.5
|
|
277.2
|
Assumed conversion of OP Units
|
0.4
|
|
0.4
|
FFO Weighted average common shares and OP Units –
Basic
|
315.9
|
|
277.6
|
Assumed conversion of dilutive securities
|
0.7
|
|
2.5
|
FFO Weighted average common shares and OP Units –
Diluted
|
316.6
|
|
280.1
|
|
|
|
|
Operating FFO:
|
|
|
|
Diluted
|
$
0.27
|
|
$
0.24
|
Operating FFO Weighted average common shares and OP
Units – Diluted
|
316.6
|
|
280.1
|
|
|
|
|
DDR Corp.
Summary
Results of Combined Unconsolidated Joint Ventures
(In
Thousands)
|
|
|
Combined condensed income
statements
|
|
|
|
Three-Month Periods
Ended
March 31,
|
|
2013
|
|
2012
|
Revenues:
|
|
|
|
Minimum rents (A)
|
$
134,880
|
|
$
114,712
|
Percentage and overage rents
|
1,040
|
|
241
|
Recoveries from tenants
|
33,898
|
|
24,691
|
Other
|
17,093
|
|
19,462
|
|
186,911
|
|
159,106
|
Expenses:
|
|
|
|
Operating and maintenance
|
42,706
|
|
36,126
|
Real estate taxes
|
22,320
|
|
15,956
|
|
65,026
|
|
52,082
|
Net
operating income
|
121,885
|
|
107,024
|
Depreciation and amortization of real estate
investments
|
65,361
|
|
39,786
|
Interest expense
|
62,119
|
|
55,094
|
(Loss)
income before other items
|
(5,595)
|
|
12,144
|
Income tax
expense
|
(6,615)
|
|
(5,972)
|
(Loss)
income from continuing operations
|
(12,210)
|
|
6,172
|
Discontinued operations:
|
|
|
|
Loss from operations
|
(39)
|
|
(1,902)
|
Loss on disposition, net
|
(5,537)
|
|
(139)
|
(Loss)
income before gain on disposition of assets
|
(17,786)
|
|
4,131
|
Gain on
disposition of assets, net
|
479
|
|
13,852
|
Net (loss)
income
|
$
(17,307)
|
|
$
17,983
|
Non-controlling interests
|
(7,219)
|
|
(8,934)
|
Net (loss)
income attributable to unconsolidated joint ventures
|
$
(24,526)
|
|
$
9,049
|
|
|
|
|
Net income
at DDR's ownership interests
|
$
3,049
|
|
$
10,180
|
Basis
differences
|
(95)
|
|
(1,932)
|
Equity in
net income of joint ventures
|
$
2,954
|
|
$
8,248
|
FFO at
DDR's ownership interests (B)
|
$
12,226
|
|
$
13,985
|
Operating
FFO at DDR's ownership interests (B)
|
$
12,442
|
|
$
14,103
|
DDR
Corp.
Summary
Results of Combined Unconsolidated Joint Ventures
(In
Thousands)
|
|
|
|
|
Combined condensed balance sheets
|
|
|
|
|
|
March
31, 2013
|
|
December 31, 2012
|
|
|
|
|
Land
|
$
1,568,719
|
|
$
1,569,548
|
Buildings
|
4,684,265
|
|
4,681,462
|
Fixtures
and tenant improvements
|
248,372
|
|
244,293
|
|
6,501,356
|
|
6,495,303
|
Less:
Accumulated depreciation
|
(870,903)
|
|
(833,816)
|
|
5,630,453
|
|
5,661,487
|
Land held
for development and construction in progress
(C)
|
409,242
|
|
348,822
|
Real
estate, net
|
6,039,695
|
|
6,010,309
|
Cash and
restricted cash
|
435,297
|
|
467,200
|
Receivables, including straight-line rent,
net
|
101,823
|
|
99,098
|
Other
assets, net
|
402,977
|
|
427,014
|
|
$
6,979,792
|
|
$
7,003,621
|
|
|
|
|
Mortgage
debt (D)
|
$
4,269,039
|
|
$
4,246,407
|
Notes and
accrued interest payable to DDR
|
147,885
|
|
143,338
|
Other
liabilities
|
302,202
|
|
342,614
|
|
4,719,126
|
|
4,732,359
|
Redeemable
preferred equity
|
155,252
|
|
154,556
|
Accumulated equity
|
2,105,414
|
|
2,116,706
|
|
$
6,979,792
|
|
$
7,003,621
|
DDR
Corp.
Summary
Results of Combined Unconsolidated Joint Ventures
|
|
(A)
Revenue resulting from the recognition of straight-line rents,
including discontinued operations,
is as follows (in millions):
|
|
|
|
Three-Month Periods
Ended March 31,
|
|
2013
|
|
2012
|
Straight-line rents
|
$
1.6
|
|
$
0.9
|
DDR's
proportionate share
|
0.3
|
|
0.2
|
(B) FFO
and Operating FFO from unconsolidated joint ventures are summarized
as follows (in
millions):
|
|
|
|
Three-Month Periods
Ended
March 31,
|
|
2013
|
|
2012
|
Net (loss)
income attributable to unconsolidated joint ventures
|
$
(24.5)
|
|
$
9.1
|
Depreciation and amortization of real estate
investments
|
64.8
|
|
45.3
|
Impairment
of depreciable real estate assets
|
—
|
|
1.3
|
Loss
(gain) on sale of depreciable real estate
|
5.0
|
|
(13.7)
|
FFO
|
$
45.3
|
|
$
42.0
|
FFO at DDR
ownership interests
|
$
12.2
|
|
$
14.0
|
Operating
FFO at DDR's ownership interests (1)
|
$
12.4
|
|
$
14.1
|
DDR joint
venture distributions received, net
|
$
2.5
|
|
$
4.5
|
|
|
|
|
(1) Excluded from
Operating FFO is the Company's proportionate share of net activity
related to
foreign currency adjustments, debt
extinguishments and other expenses as disclosed above
in
this press release.
|
(C) Land
held for development and construction in progress consists of the
following (in millions):
|
|
|
|
|
|
March
31, 2013
|
|
December 31, 2012
|
Company's
proportionate share
|
$
120.3
|
|
$
100.9
|
(D)
Mortgage debt consists of the following (in millions):
|
|
|
|
|
|
March
31, 2013
|
|
December 31, 2012
|
Company's
proportionate share
|
$
734.5
|
|
$
724.9
|
Non-recourse debt included above for which the
Company
has written its investment down to zero and is receiving
no allocation of income, loss or FFO
|
47.3
|
|
48.2
|
SOURCE DDR Corp.