Quarterly Financial Supplement

Transcription

1 Quarterly Financial Supplement FOR THE QUARTER ENDED JUNE 30, 2015

2 Section DDR Corp. Table of Contents Page Earnings Release & Financial Statements Press Release 1-9 Asset Summary Portfolio Summary 10 Portfolio Detail 11 Leasing Summary 12 Top 50 Tenants 13 Top 50 Assets by ABR at DDR Share 14 Investments Transactions 15 Developments/Redevelopments 16 Joint Ventures Summary 17 Income Statement 18 Balance Sheet 19 Balance Sheet Summary Capital Structure 20 Debt/EBITDA 21 Debt Summary 22 Consolidated Debt Detail Unconsolidated Debt Detail Analyst Information and Reporting Policies Analyst Coverage 28 Notable Policies Property list available online at 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 months ended June 30, 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 for the year ended December 31, 2014, 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.

3 For immediate release: Media Contact: Investor Contact: Matt Schuler Matt Lougee DDR REPORTS A 10.7% INCREASE IN OPERATING FFO PER DILUTED SHARE TO $0.31 FOR THE QUARTER ENDED JUNE 30, 2015 BEACHWOOD, OHIO, July 29, 2015 DDR Corp. (NYSE: DDR) today announced operating results for the second quarter ended June 30, Financial Highlights Second quarter operating funds from operations attributable to common shareholders ( Operating FFO ) increased $10.1 million to $111.4 million, or $0.31 per diluted share, compared to $101.3 million, or $0.28 per diluted share, for the prior-year comparable period. Second quarter net income attributable to common shareholders was $13.0 million, or $0.03 per diluted share, which compares to net income of $67.8 million, or $0.19 per diluted share, for the prior-year comparable period. Significant Quarterly Activity Generated same store net operating income growth of 3.0% on a pro rata basis Executed 369 new leases and renewals for 2.9 million square feet The annualized base rent per occupied square foot was $14.37 at June 30, 2015 as compared to $13.72 at June 30, 2014, an increase of 4.7% on a pro rata basis Generated new leasing spreads of 25.4% on a pro rata basis, and renewal leasing spreads of 7.2% on a pro rata basis The portfolio leased rate was 95.8% at June 30, 2015 and 2014 on a pro rata basis Acquired $111 million of wholly-owned prime power centers Sold ten assets totaling $60 million at DDR s share Repaid $153 million, 5.50% senior unsecured notes at maturity Amended and restated $750 million unsecured revolving credit facility to extend the final maturity date to June 2020, including options. The smaller unsecured revolving credit facility was also amended to reduce the commitment to $50 million and modify certain other terms to conform to the primary facility. Pricing on both amended revolving credit facilities was reduced and is currently set at LIBOR plus 100 basis points, a decrease of 15 basis points from the previous rate, and is determined based upon DDR's credit ratings. Entered into a $400 million unsecured term loan with Wells Fargo Bank, as administrative agent, and PNC Bank, as syndication agent. The unsecured term loan has a maturity date of April 2020, including options. Pricing on the unsecured term loan is currently set at LIBOR plus 110 basis points and is determined based upon DDR's credit ratings. There was $300 million drawn at June 30, Repaid $257 million of mortgage debt that had encumbered four prime power centers We are pleased to report another strong quarter of operational and transactional results driving an increase in earnings, commented David J. Oakes, president and chief executive officer of DDR. Our portfolio transformation and operating platform continue to drive earnings growth and generate net asset value for our shareholders Guidance There has been no change in Operating FFO per share guidance since the initial release on January 7, The Company continues to estimate Operating FFO for 2015 between $1.20 and $1.25 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 1

4 needs and should not be considered as an alternative to net income computed in accordance with GAAP as an indicator of the Company s operating performance or as an alternative to cash flow as a measure of liquidity. FFO is defined and calculated by the Company as net income, adjusted to exclude: (i) preferred share dividends, (ii) gains 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 (v) 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 below. The Company computes FFO in accordance with the NAREIT definition. Other real estate companies may calculate FFO and Operating FFO in a different manner. Operating FFO 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 herein. Safe Harbor DDR Corp. 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 months ended June 30, 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, 2014, 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 401 value-oriented shopping centers representing 119 million square feet in 41 states and Puerto Rico. The Company's portfolio is comprised primarily of large-format power centers located in top U.S. markets, and is actively managed to create long-term shareholder value. DDR is a self-administered and selfmanaged 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 Conference Call and Supplemental Information A copy of the Company s Supplemental package is available upon request to Brooke Vanek at the Company s corporate office, 3300 Enterprise Parkway, Beachwood, Ohio or at The Company will hold its quarterly conference call tomorrow, July 30, 2015, at 10:00 a.m. Eastern Time. To participate, please dial (domestic) or (international) at least ten minutes prior to the scheduled start of the call. The conference call webcast will be recorded and available for replay through the Investors portion of DDR's website, 2

5 Income Statement: Consolidated Interests $ in thousands, except per share 2Q15 2Q14 6M15 6M14 Revenues: Minimum rents (1) $179,363 $169,395 $360,060 $335,582 Percentage rent 1, ,757 2,265 Recoveries 62,021 56, , ,831 Ancillary income 4,648 5,935 8,866 12,138 Other revenues (2) 1,528 2,176 1,898 3, , , , ,450 Expenses (3): Operating and maintenance 36,029 33,990 74,755 70,577 Real estate taxes 37,797 35,085 75,426 69,061 73,826 69, , ,638 Net operating income 175, , , ,812 Other income (expense): Fee income 8,391 7,879 16,466 16,102 Interest income 7,211 3,158 14,372 6,286 Interest expense (4) (61,287) (59,634) (124,307) (119,332) Depreciation and amortization (99,300) (95,203) (202,315) (198,823) General and administrative (5) (19,271) (19,085) (37,866) (39,338) Other income (expense), net (6) 2,368 (4,100) (1,060) (8,283) Impairment charges (7) 0 (14,342) (279,021) (16,671) Income (loss) before earnings from equity method investments and other items 13,218 (16,241) (264,230) (32,247) Equity in net income of joint ventures 1,642 1,131 1,703 6,621 Impairment of joint venture investments (9,100) (Loss) gain on sale and change in control of interests, net (6,507) 83,830 7,772 83,830 Income from discontinued operations (8) 0 7, ,357 Tax expense (573) (642) (5,473) (1,327) Gain on disposition of real estate, net of tax 11,267 1,472 36, Net income (loss) 19,047 76,895 (223,867) 58,517 Non-controlling interests (9) (449) (878) (1,322) 860 Net income (loss) attributable to DDR 18,598 76,017 (225,189) 59,377 Write-off of preferred share original issuance costs 0 (1,943) 0 (1,943) Preferred dividends (5,594) (6,259) (11,188) (12,867) Net income (loss) attributable to Common Shareholders 13,004 67,815 (236,377) 44,567 FFO: Net income (loss) attributable to common shareholders 13,004 67,815 (236,377) 44,567 Depreciation and amortization of real estate investments 97,239 97, , ,744 Equity in net income of joint ventures (1,642) (1,131) (1,703) (6,621) Joint ventures FFO 7,502 7,377 14,519 16,120 Non-controlling interests (OP units) Impairment of depreciable real estate 0 1, ,748 11,491 Gain on disposition of depreciable real estate, net (11,312) (90,937) (36,548) (102,648) FFO attributable to Common Shareholders 105,039 82, , ,938 Non-operating items, net (10) 6,357 19, ,287 34,035 Operating FFO $111,396 $101,263 $218,529 $201,973 FFO per share Diluted (11) $0.29 $0.23 $0.33 $0.47 Operating FFO per share Diluted (11) $0.31 $0.28 $0.60 $0.56 3

6 Balance Sheet: Consolidated Interests $ in thousands At Period End 2Q15 4Q14 Assets: Land $2,208,102 $2,208,468 Buildings 6,988,655 7,087,040 Fixtures and tenant improvements 672, ,035 9,869,369 9,940,543 Less: Accumulated depreciation (1,998,760) (1,909,585) 7,870,609 8,030,958 Construction in progress and land 311, ,242 Real estate, net 8,181,614 8,426,200 Investments in and advances to joint ventures 399, ,848 Cash 25,268 20,937 Restricted cash 11,417 11,375 Notes receivable, net 47,304 56,245 Receivables, including straight-line rent, net 128, ,661 Other assets, net (12) 432, ,629 Total Assets 9,225,587 9,541,895 Liabilities and Equity: Revolving credit facilities 241,474 29,009 Unsecured debt 3,115,459 2,765,893 Unsecured term loan 300, ,000 Mortgage and other secured debt 1,603,231 2,089,805 5,260,164 5,234,707 Dividends payable 67,884 61,468 Other liabilities (13) 450, ,192 Total Liabilities 5,778,118 5,744,367 Preferred shares 350, ,000 Common shares 36,117 36,071 Paid-in-capital 5,448,298 5,438,778 Accumulated distributions in excess of net income (2,408,151) (2,047,212) Deferred compensation obligation 16,980 16,609 Accumulated other comprehensive income (6,137) (7,352) Less: Common shares in treasury at cost (16,819) (16,646) Non-controlling interests 27,181 27,280 Total Equity 3,447,469 3,797,528 Total Liabilities and Equity $9,225,587 $9,541,895 4

7 Income Statement: Unconsolidated Interests at 100% $ in thousands 2Q15 2Q14 6M15 6M14 Revenues: Minimum rents $98,437 $82,910 $202,174 $181,475 Percentage rent Recoveries 30,603 21,309 61,462 43,192 Other revenues 3,673 7,598 6,088 23, , , , ,641 Expenses: Operating and maintenance 30,944 26,611 63,655 61,746 Real estate taxes 17,470 12,584 35,741 25,256 48,414 39,195 99,396 87,002 Net operating income 84,652 72, , ,639 Other income (expense): Interest expense (33,593) (41,787) (74,496) (91,844) Depreciation and amortization (51,482) (34,517) (108,219) (75,730) Impairment charges 0 (600) (448) (600) Tax expense 0 (2,425) 0 (6,565) Other income (expense), net (217) 252 (584) (2,790) (85,292) (79,077) (183,747) (177,529) Loss from continuing operations (640) (6,131) (12,477) (15,890) Loss from discontinued operations 0 (1,695) 0 (4,187) Gain on disposition of discontinued operations, net 0 2, ,511 Loss on disposition of real estate, net (1,358) 0 (1,571) 0 Non-controlling interests 0 (535) 0 (2,023) Net (loss) income attributable to unconsolidated joint ventures (1,998) (6,323) (14,048) 1,411 Depreciation and amortization of real estate investments 51,482 38, ,219 82,447 Impairment of depreciable real estate Loss (gain) on disposition of depreciable real estate, net 1,358 (1,947) 1,571 (23,420) FFO 50,842 30,602 96,190 61,038 FFO at DDR s ownership interests 7,502 7,377 14,519 16,120 Operating FFO at DDR s ownership interests 7,501 7,158 14,523 16,253 Net income at DDR s ownership interests 1,317 1,436 1,070 6,167 Basis differences 325 (305) Equity in net income of joint ventures $1,642 $1,131 $1,703 $6,621 5

8 Balance Sheet: Unconsolidated Interests at 100% $ in thousands Assets: 2Q15 At Period End 4Q14 Land $1,346,862 $1,439,849 Buildings 3,566,004 3,854,585 Fixtures and tenant improvements 184, ,696 5,097,527 5,495,130 Less: Accumulated depreciation (770,122) (773,256) 4,327,405 4,721,874 Land held for development and construction in progress 54,209 55,698 Real estate, net 4,381,614 4,777,572 Cash and restricted cash 80, ,812 Receivables, including straight-line rent, net 48,814 80,508 Other assets, net 346, ,751 Total Assets 4,857,257 5,353,643 Liabilities and Equity: Mortgage debt 3,247,337 3,552,764 Notes and accrued interest payable to DDR 3, ,831 Other liabilities 205, ,998 Total Liabilities 3,456,292 3,974,593 Redeemable preferred equity 309, ,310 Accumulated equity 1,091,815 1,073,740 Total Liabilities and Equity $4,857,257 $5,353,643 6

9 Financial Statements: Footnotes $ in millions, except per share Includes discontinued operations 2Q15 2Q14 6M15 6M14 (1) Minimum rents: Straight-line rent, net $0.7 $1.5 $2.1 $2.5 Below-market rent, net Ground lease revenue (2) Other revenues: Lease termination fees Other miscellaneous (3) Operating expenses: Recoverable expenses (2014 excludes sold assets) (67.8) (62.4) (138.5) (125.3) Non-recoverable expenses (2014 excludes sold assets) (6.0) (6.7) (11.7) (14.3) Straight-line ground rent expense (0.1) (0.3) (0.3) (0.6) Expensed costs of suspended developments (0.2) (0.3) (0.3) (0.7) (4) Non-cash interest expense: Convertible debt accretion (3.0) (2.8) (5.9) (5.6) Debt fair value amortization Loan cost amortization (2.4) (3.1) (5.0) (6.3) Interest expense (capitalized) (5) General and administrative expenses: Executive separation charges (1.7) (0.0) (2.3) (0.0) Stock compensation expenses (1.5) (2.0) (3.6) (3.9) Internal leasing expenses (1.7) (1.8) (3.7) (3.8) Construction administrative costs (capitalized) (6) Other income (expense): Transactions and other, net (0.0) (3.4) (0.2) (7.3) Litigation expenses (0.0) (0.7) (0.0) (1.0) Debt extinguishment, net (0.9) 0.0 (7) Impairment charges: Assets marketed for sale (0.0) (1.1) (179.7) (11.5) Land previously held for development (0.0) (13.2) (99.3) (13.7) 7

10 Financial Statements: Footnotes $ in millions, except per share Includes discontinued operations 2Q15 2Q14 6M15 6M14 (8) Discontinued operations: Revenues n/a $11.5 n/a $25.6 Expenses n/a (6.0) n/a (13.5) Impairments n/a (0.0) n/a (8.5) Depreciation n/a (4.7) n/a (10.4) Gain on disposition of real estate, net n/a 6.5 n/a 17.2 Net income n/a 7.3 n/a 10.4 Note: Presented for 2014 only as DDR adopted the new accounting guidance on January 1, 2015, which changed the definition for reporting. (9) Non-controlling interests: FFO attributable to non-controlling interests (0.3) (0.2) (0.9) (0.4) Operating FFO attributable to non-controlling interests (0.3) (0.2) (0.5) (0.4) (10) Non-operating items excluded from Operating FFO: Non-cash impairment charges non-depreciable assets Executive separation charges Transaction, debt extinguishment, litigation, other, net (1.9) Joint ventures transaction, currency, other 0.0 (0.2) Non-cash loss (gain) on sale and change in control of interests, net (7.8) 0.0 Tax expense (primarily Puerto Rico restructuring) Loss (gain) on sale of non-depreciable real estate, net 0.1 (0.3) 0.6 (0.1) Non-cash write-off of preferred share original issuance costs (11) Outstanding per share information: Common shares (at quarter end) OP units (at quarter end) Total shares and units (at quarter end) Weighted average shares and units Basic EPS Assumed conversion of dilutive securities Weighted average shares and units Diluted EPS Weighted average shares and units Basic FFO & OFFO Assumed conversion of dilutive securities Weighted average shares and units Diluted FFO & OFFO Earnings per common share Basic & Diluted $0.03 $0.19 $(0.66) $0.12 FFO per share Basic & Diluted $0.29 $0.23 $0.33 $0.47 Operating FFO per share Diluted $0.31 $0.28 $0.60 $0.56 Common stock dividends declared, per share $ $0.155 $0.345 $0.31 (12) Intangible assets, net (at quarter and year end) (13) Below-market leases, net (at quarter and year end)

11 Financial Statements: Footnotes Additional financial information 2Q15 2Q14 6M15 6M14 Capital expenditures (DDR share): Retenanting $10.7 $9.3 $22.7 $20.6 Maintenance total Maintenance PSF of owned GLA non reimbursable Miscellaneous (DDR share): Est. value of land owned adjacent to existing centers (at quarter end) 26.5 Cost basis of headquarters (non-income producing at quarter end)

12 Portfolio Summary $, GLA in millions, except PSF At At 100% DDR Share Portfolio Metrics Operating Centers Owned GLA Ground Lease GLA Additional Unowned Base Rent PSF $14.09 $14.37 Leased Rate 95.5% 95.8% Commenced Rate 93.9% 94.0% Same Store NOI at 100% Same Store NOI at DDR Share 2Q15 2Q14 Change 2Q15 2Q14 Change Same Store Leased Rate 95.5% 95.4% 0.1% 95.8% 95.7% 0.1% Revenues: Base Rents $213.5 $ % $168.4 $ % Recoveries % % Other % % % % Expenses: Operating (39.1) (39.0) 0.4% (30.7) (30.7) 0.2% Real Estate Taxes (42.1) (40.8) 3.1% (34.4) (33.4) 3.0% (81.2) (79.8) 1.8% (65.1) (64.0) 1.7% Same Store NOI $209.6 $ % $166.3 $ % Non-Same Store NOI $259.8 $238.0 $187.8 $179.7 Same Store NOI Reconciliation to Income Statement Consolidated at 100%: Consolidated at DDR Share: Revenues $248.9 $234.2 DDR Share $175.1 $165.1 Expenses (73.8) (69.1) JV Share (0.4) (0.4) $175.1 $165.1 $174.7 $164.7 Unconsolidated at 100%: Unconsolidated at DDR Share: Revenues $133.1 $112.1 Revenues $20.0 $22.8 Expenses (48.4) (39.2) Expenses (6.9) (7.8) $84.7 $72.9 $13.1 $15.0 Total $259.8 $238.0 Total $187.8 $

13 Portfolio Detail (at 100% unless otherwise noted) Lease Expiration Schedule Greater than 10,000 SF Less than 10,000 SF ABR Rent % of ABR Rent % of Year Leases (mil) PSF ABR Leases (mil) PSF ABR $10.2 $ % 358 $19.2 $ % % % % % % % % % % % % % % % % % % % ,584 $587.5 $ % 5,100 $345.7 $ % Total Rent Roll 1,706 $658.5 $ % 5,420 $366.4 $ % Annual Metrics Leased Rate Breakdown at 100% Period Leased ABR Leased % of % of Ending Centers Rate PSF SF Rate GLA Vacancy 2Q % $14.09 < 5, % 14.8% 46.5% YE % ,000-9, % 8.6% 16.9% YE % > 10, % 76.6% 36.6% YE % Total 95.5% 100.0% 100.0% YE % YE % Leased Rate Breakdown at DDR Share YE % YE % Leased % of % of YE % SF Rate GLA Vacancy YE % < 5, % 14.2% 47.2% YE % ,000-9, % 8.7% 18.6% YE % > 10, % 77.1% 34.2% YE % Total 95.8% 100.0% 100.0% YE % YE % Portfolio Concentration at 100% YE % 9.66 YE % 9.20 % of % of YE % 8.99 ABR MSF GLA YE % 8.49 Florida 10.9% % YE % 7.85 Georgia 9.4% % YE % 7.60 Puerto Rico 7.5% % YE % 5.89 Ohio 7.4% % YE % 5.60 N. Carolina 6.7% % YE % 5.37 California 5.1% % New Jersey 4.6% % Illinois 4.5% % Texas 4.3% % New York 3.9% % 11

14 Leasing Summary Leases, GLA, and net effective rents at 100% All other figures at DDR share Leasing Activity New Wtd Avg Vacant < 12 months # of GLA Rent Rent Term # of GLA Leases (000) PSF Spread (Years) Leases (000) New Leases 1Q $ % Q % ,515 $ % Renewals 1Q ,931 $ % ,931 2Q , % , ,961 $ % ,961 New + Renewals 1Q ,611 $ % ,256 2Q , % , ,476 $ % ,658 Net Effective Rents Base Net Wtd Avg GLA Rent Capex Effective Term (000) PSF PSF Rent PSF (Years) New Leases 1Q $18.40 ($6.14) $ Q (5.28) ,202 $18.97 ($5.71) $ Renewals 1Q15 1,931 $13.78 ($0.03) $ Q15 2, (0.01) ,961 $14.70 ($0.02) $

15 $, GLA in millions DDR Corp. Top 50 Tenants # of Units Base Rent GLA Credit Ratings Tenant Owned Total at 100% % of Total Pro Rata at 100% % of Total Pro Rata (S&P/Moody's/Fitch) 1 TJX Companies (1) $ % $ % 2.4 A+ / A3 / NR 2 Bed Bath & Beyond (2) % % 1.9 A- / Baa1 / NR 3 PetSmart % % 1.4 B+ / NR / NR 4 Walmart (3) % % 4.0 AA / Aa2 / AA 5 Kohl's % % 2.4 BBB / Baa1 / BBB+ 6 Dick's Sporting Goods (4) % % 1.1 NR 7 Ross Stores (5) % % 1.3 A- / A3 / NR 8 Best Buy % % 1.1 BB / Baa2 / BB 9 AMC Theatres % % 0.6 B+ / NR / NR 10 Michaels % % 1.0 B+ / NR / NR 11 Gap (6) % % 0.8 BBB- / Baa3 / BBB- 12 Office Depot (7) % % 0.8 B- / B2 / NR 13 Publix % % 0.4 NR 14 Ulta % % 0.4 NR 15 Ascena (8) % % 0.5 BB / Ba2 / NR 16 Kroger (9) % % 0.5 BBB / Baa2 / BBB 17 Jo-Ann % % 0.8 B / Caa1 / NR 18 Lowe's % % 1.5 A- / A3 / NR 19 Barnes & Noble % % 0.4 NR 20 Staples % % 0.5 BBB- / Baa2 / BBB- 21 LA Fitness % % 0.4 NR 22 Toys "R" Us (10) % % 0.9 B- / B3 / CCC 23 Hobby Lobby % % 0.7 NR 24 Dollar Tree Stores % % 0.6 BB / Ba2 / NR 25 Petco % % 0.4 B / B3 / NR 26 Home Depot % % 1.0 A / A2 / A 27 Regal Cinemas % % 0.5 B+ / B1 / B+ 28 DSW % % 0.4 NR 29 Cinemark % % 0.5 BB / NR / NR 30 Sports Authority % % 0.6 NR / Caa1 / NR 31 Party City % % 0.4 NR 32 Royal Ahold (11) % % 0.2 BBB / Baa3 / BBB 33 Nordstrom Rack % % 0.3 A- / Baa1 / BBB+ 34 Burlington % % 0.7 B+ / NR / NR 35 Pier 1 Imports % % 0.2 B+ / NR / NR 36 Five Below % % 0.3 NR 37 Whole Foods % % 0.2 BBB- / NR / NR 38 hhgregg % % 0.4 NR 39 Giant Eagle % % 0.3 NR 40 BJ's Wholesale Club % % 0.3 B- / B3 / NR 41 AT&T % % 0.1 BBB+ / Baa1 / A- 42 Mattress Firm % % 0.1 B / B2 / NR 43 Panera % % 0.1 NR 44 Beall's % % 0.4 NR 45 Famous Footwear % % 0.2 BB / Ba3 / NR 46 Stein Mart % % 0.4 NR 47 Gamestop % % 0.1 BB+ / Ba1 / NR 48 Sears (12) % % 0.9 CCC+ / Caa1 / CC 49 Shoe Carnival % % 0.2 NR 50 Men's Wearhouse % % 0.2 B+ / Ba3 / NR Top 50 Total 1,895 2,068 $ % $ % 35.8 Total Portfolio $1, % $ % 59.6 (1) T.J. Maxx (49) / Marshalls (44) / HomeGoods (17) / Sierra Trading (1) (2) Bed Bath (59) / World Market (21) / buybuy Baby (11) / CTS (2) (3) Walmart (24) / Sam's Club (3) / Neighborhood Market (2) (4) Dick's Sporting Goods (37) / Golf Galaxy (2) / Field & Stream (1) (5) Ross Dress For Less (69) / dd's Discounts (3) (6) Gap (5) / Old Navy (58) / Banana Republic (3) (7) Office Depot (18) / OfficeMax (32) (8) Catherine's (8) / Dress Barn (30) / Justice (26) / Lane Bryant (29) / Maurice's (17) (9) Kroger (17) / Harris Teeter (7) / King Soopers (1) (10) Toys "R" Us (7) / Babies "R" Us (15) / Toys-Babies Combo (5) (11) Stop & Shop (4) / Martin's (3) / Others (2) (12) Sears (5) / Kmart (9) 13

16 $, GLA in thousands DDR Corp. Top 50 Assets by ABR at DDR Share Base Rent Total GLA Asset Location MSA Pro Rata % of Pro Rata Pro Rata % of Pro Rata 1 Plaza Del Sol Bayamon, PR San Juan $16, % % 2 Shoppers World Framingham, MA Boston 16, % % 3 Plaza Rio Hondo Bayamon, PR San Juan 13, % % 4 Winter Garden Village Winter Garden, FL Orlando 13, % 1, % 5 Plaza Del Norte Hatillo, PR San Juan 12, % % 6 Ahwatukee Foothills Phoenix, AZ Phoenix 10, % % 7 Wrangleboro Consumer Square Mays Landing, NJ Atlantic City 10, % % 8 Riverdale Village Coon Rapids, MN Minneapolis 10, % % 9 Tucson Spectrum Tucson, AZ Tucson 9, % % 10 Nassau Park Pavilion Princeton, NJ Trenton 9, % 1, % 11 Hamilton Marketplace Hamilton, NJ Trenton 9, % % 12 Woodfield Village Green Schaumburg, IL Chicago 8, % % 13 Carolina Pavilion Charlotte, NC Charlotte 8, % % 14 Great Northern Plaza North Olmsted, OH Cleveland 8, % % 15 Plaza Escorial Carolina, PR San Juan 8, % % 16 The Shops at Midtown Miami Miami, FL Miami 8, % % 17 Plaza Palma Real Humacao, PR San Juan 7, % % 18 Polaris Towne Center Columbus, OH Columbus 7, % % 19 Connecticut Commons Plainville, CT Hartford 6, % % 20 Centennial Promenade Centennial, CO Denver 6, % % 21 Easton Market Columbus, OH Columbus 6, % % 22 Paseo Colorado Pasadena, CA Los Angeles 6, % % 23 Hamilton Commons Mays Landing, NJ Atlantic City 6, % % 24 Falcon Ridge Town Center Fontana, CA Los Angeles 5, % % 25 Crossroads Center Gulfport, MS Gulfport 5, % % 26 Silver Springs Square Mechanicsburg, PA Harrisburg 5, % % 27 Belden Park Crossings North Canton, OH Cleveland 5, % % 28 Aspen Grove Littleton, CO Denver 5, % % 29 Sycamore Crossing Cincinnati, OH Cincinnati 5, % % 30 Ridge at Creekside Roseville, CA Sacramento 5, % % 31 The Fountains Plantation, FL Miami 5, % % 32 Cotswold Village Charlotte, NC Charlotte 5, % % 33 Perimeter Pointe Atlanta, GA Atlanta 5, % % 34 The Maxwell Chicago, IL Chicago 5, % % 35 Peach Street Square Erie, PA Erie 5, % % 36 Bandera Pointe San Antonio, TX San Antonio 5, % % 37 Big Flats Consumer Square Big Flats, NY Elmira 5, % % 38 Merriam Village Merriam, KS Kansas City 5, % % 39 Independence Commons Independence, MO Kansas City 5, % % 40 Beaver Creek Crossings Apex, NC Raleigh 5, % % 41 Homestead Pavilion Homestead, FL Miami 5, % % 42 Mohawk Commons Niskayuna, NY Albany 5, % % 43 Fairfax Towne Center Fairfax, VA Balt-Wash DC 4, % % 44 Gateway Center Everett, MA Boston 4, % % 45 Arrowhead Crossing Phoenix, AZ Phoenix 4, % % 46 Willowbrook Plaza Houston, TX Houston 4, % % 47 Village at Stone Oak San Antonio, TX San Antonio 4, % % 48 Cumming Town Center Cumming, GA Atlanta 4, % % 49 Meridian Crossroads Meridian, ID Boise 4, % % 50 Brookside Marketplace Tinley Park, IL Chicago 4, % % Top 50 Total $364, % 29, % Total Portfolio $764, % 91, % 14

17 $ in millions, GLA in thousands DDR Corp. Transactions Total DDR Owned At 100% At DDR Share Own. % GLA Price Debt Price Debt Anchors Acquisitions 03/15 Los Angeles, CA 100% 208 $49.2 $0.0 $49.2 $0.0 Kohl's, Michaels, PetSmart 04/15 Wilmington, NC 100% /15 Orlando, FL 100% Bed Bath & Beyond, T.J. Maxx, Ross Dress For Less 06/15 Houston, TX 100% AMC Theaters, Bed Bath & Beyond Total Year to Date 785 $160.1 $0.0 $160.1 $0.0 Dispositions 01/15 Morgantown, WV 100% Michaels, Shop 'N Save 02/15 Camden, SC 100% Belk 03/15 Charlotte, NC 100% Bi-Lo 03/15 Bedford, IN 100% Goody's, JCPenney 03/15 Ashtabula, OH 100% /15 Fayetteville, NC 100% Bed Bath & Beyond, T.J. Maxx 03/15 Northville, MI 5% /15 Apex, NC 100% hhgregg 03/15 San Diego, CA 100% Regal 03/15 Frisco, TX 100% Kohl's 03/15 Phoenix, AZ 20% Target, Walmart, Costco, JCPenney 03/15 Kirkland, WA 20% Hour Fitness, My Home Furniture 03/15 SM Portfolio (16 assets) 20% Various 03/15 Benton Harbor, MI 20% Dunham's, T.J. Maxx, PetSmart, Michaels 03/15 Orange County, CA 20% Krikorian Premiere Theatres, T.J. Maxx 03/15 Bloomfield Hills, MI 20% Q Total 4,116 $402.7 $211.2 $162.6 $ /15 Middletown, RI 100% Barnes & Noble, Michaels, Sports Authority 04/15 Columbus, GA 100% Michaels, PetSmart, The Fresh Market 05/15 Napa, CA 5% Kohl's 05/15 Clarence, NY 100% Big Lots, Jo-Ann, OfficeMax 05/15 Homosassa, FL 5% Publix 06/15 Macon, GA 100% hhgregg, PetSmart 06/15 Cleveland, OH 5% Toys "R" Us/Babies "R" Us 2Q Land Sales Q Total 568 $101.8 $23.2 $60.2 $1.2 Total Year to Date 4,684 $504.5 $234.4 $222.8 $

18 Developments/Redevelopments $ in millions, GLA in thousands Est. Cost Est. Est. Est. Owned Total Net Incurred Remain Placed Anchor Stabilized SF Cost To Date Costs In Service CIP (a) Opening Quarter Key Tenants Consolidated Summary Developments in Progress $308 $249 $59 $121 $128 Redevelopments - Major Redevelopments - Minor Retenanting CIP and Land (b) N/A $766 $504 $352 $193 $311 Developments in Progress Orlando, FL 208 $62 $40 $22 $0 $40 2Q16 2Q16 Epic Theater, Five Below, Petco, HomeGoods, Michaels, Ulta, Ross Dress for Less New Haven, CT Q15 4Q16 Fresh Market, Michaels, Ulta, Bed Bath & Beyond, DSW Other Developments N/A N/A - (primarily placed in service) 340 $308 $249 $59 $121 $128 Redevelopments - Major Pasadena, CA $92 $10 $82 $0 $10 N/A 2Q18 Hyatt Place, H&M, West Elm, Victoria's Secret, Chico's Long Beach, CA N/A 2Q16 Restoration Hardware, H&M, Forever 21, Nike, Converse, Gap Factory Cincinnati, OH N/A 2Q17 Dick's Sporting Goods, Staples Richmond, VA N/A 3Q17 Martin's, Petco San Juan, PR (Del Sol) N/A 1Q17 Dave & Busters $217 $56 $161 $14 $42 (a) This balance is in addition to DDR's pro rata share of joint venture CIP of $6.1 million. (b) This balance is in addition to owned land adjacent to existing centers that has an estimated value of $26.5 million. 16

19 Unconsolidated Joint Ventures $, GLA in millions Gross DDR Operating Owned Book Partner Own % Properties GLA ABR Value Debt BRE DDR Retail Blackstone Real 5% (1) $142.4 $1,691.4 $1,219.3 Holdings III Estate Partners VII DDRTC Core TIAA-CREF 15% , Retail Fund DDR Domestic Various 20% , Retail Fund I DDR-SAU State of Utah 20% Retail Fund Other Various Various Total $378.8 $5,151.8 $3,247.3 (1) In addition to DDR's 5% common equity, DDR has $309.2 million of Preferred Equity with an interest rate of 8.5%. 17

20 $ in millions DDR Corp. Joint Venture Income Statement At 100% At DDR Share 6M15 2Q15 2Q15 Revenues: Minimum rents (1) $202.2 $98.4 $14.3 Percentage rent Recoveries Other revenues Expenses: Operating and maintenance Real estate taxes Net operating income Other income (expense): Interest expense (2) (74.5) (33.6) (5.6) Depreciation and amortization (108.2) (51.5) (6.1) Impairment charges (0.4) Other expense, net (0.6) (0.2) 0.0 (183.7) (85.3) (11.7) (Loss) income from continuing operations (12.4) (0.6) 1.4 Loss on disposition of real estate, net (1.6) (1.4) (0.1) Net (loss) income attributable to unconsolidated joint ventures (14.0) (2.0) 1.3 Depreciation and amortization of real estate investments Impairment of depreciable real estate Loss on disposition of depreciable real estate, net Funds From Operations: $96.2 $50.9 $7.5 Net income at DDR ownership interests $1.1 $1.3 $1.3 Basis differences Equity in net income of joint ventures FFO at DDR's ownership interests $14.5 $7.5 Operating FFO at DDR's ownership interests $14.5 $7.5 (1) Straight-line rent, net (2) Non-cash interest expense (1.6) (0.8)

21 $ in millions DDR Corp. Joint Venture Balance Sheet At 100% 2Q15 4Q14 Land $1,346.8 $1,439.8 Buildings 3, ,854.6 Fixtures and tenant improvements , ,495.1 Less: Accumulated depreciation (770.1) (773.2) 4, ,721.9 Land held for development and construction in progress Real estate, net 4, ,777.6 Cash and restricted cash Receivables, including straight-line rent, net Other assets, net , ,353.6 Mortgage debt 3, ,552.8 Notes and accrued interest payable to DDR Other liabilities , ,974.6 Redeemable preferred equity Accumulated equity 1, ,073.7 $4,857.3 $5,353.6 At DDR Share 2Q15 4Q14 Land $186.9 $202.5 Buildings Fixtures and tenant improvements Less: Accumulated depreciation (145.6) (150.2) Land held for development and construction in progress Real estate, net Cash and restricted cash Receivables, including straight-line rent, net Other assets, net (1) Disproportionate share of equity (2) (2.2) (2.2) Mortgage debt (3) (4) Notes and accrued interest payable to DDR Other liabilities Accumulated equity Disproportionate share of equity (2) $619.1 $704.6 (1) Intangible assets at DDR share (2) Adjustments represent promoted equity and minority interests (3) Fair market value of debt adjustment at DDR share (ASC 820) (4) Non-recourse mortgage debt with a zero basis at DDR share

22 Capital Structure $, shares and units in millions, except per share June 30, 2015 June 30, 2014 Capital Structure Amount % of Total Amount % of Total Common Shares Equity $5, % $6, % Perpetual Preferred Stock % % Unsecured Credit Facilities % % Unsecured Term Loan % % Unsecured Public Debt 3, % 2, % Secured Term Loan % % Fixed Rate Mortgage Debt 1, % 1, % Variable Rate Mortgage Debt % % 5, % 5, % Total $11, % $12, % Capital Structure Detail Debt to Market Capitalization 46.8% 44.2% Common Shares Outstanding Operating Partnership Units Market Value per Share $15.46 $17.63 Accretion on Convertible Notes (excluded above) $4.0 $15.7 Partners' Share of Consolidated Debt (included above) $9.9 $9.9 DDR Share of Unconsolidated Debt (excluded above) $452.1 $494.3 Credit Ratings Covenants Covenant Actual Debt Rating Outlook Threshold Covenant Moody's Baa2 Stable Total Debt to Real Estate Assets Ratio 65% 50% S&P BBB- Stable Secured Debt to Assets Ratio 40% 14% Fitch BBB- Stable Unencumbered Assets to Unsecured Debt 135% 197% Fixed Charge Coverage Ratio 1.5x 2.2x 20

23 Debt/EBITDA $ in millions 2Q15 2Q14 Consolidated Net income to DDR $18.6 $76.0 Impairments Depreciation and amortization Interest expense Loss (gain) on change in control of interests 6.5 (83.8) Other (income) expense, net (0.2) 4.5 Equity in net income of JVs (1.6) (1.1) Income tax expense EBITDA adjustments from discontinued operations Gain on disposition of real estate, net (11.3) (1.5) Adjustments for non-controlling interests (0.2) 0.3 JV FFO (at DDR share) Other JV adjustments (at DDR share) 0.0 (0.2) EBITDA - current quarter EBITDA - annualized Consolidated debt 5, ,328.9 Partner share of consolidated debt (9.9) (9.9) Face value adjustments (13.5) (14.9) Cash and restricted cash (36.3) (389.4) Net adjusted debt $5,200.5 $4,914.7 Debt/EBITDA - Consolidated 7.20x 7.12x Pro rata including JVs EBITDA - current quarter EBITDA - annualized Consolidated net debt 5, ,914.7 JV debt (at DDR share) Cash and restricted cash (10.2) (17.2) Net adjusted debt $5,641.5 $5,391.3 Debt/EBITDA - Pro rata 7.57x 7.43x 21

24 Debt Summary $ in millions Consolidated Unconsolidated Interest Interest Total Total Rate Total Total Rate Debt Composition 100% DDR Share DDR Share 100% DDR Share DDR Share Unsecured Credit Facilities $241.5 $ % Unsecured Term Loan % Unsecured Public Debt 3, , % Secured Term Loan % Fixed Rate Mortgage Loans 1, , % $ 2,061.8 $ % Variable Rate Mortgage Loans % 1, % Subtotal 5, , % 3, % Fair Market Value Adjustment Total $5,260.2 $5, % $ 3,247.3 $ % Scheduled Secured Unsecured Cash Interest GAAP Interest Principal Debt Debt Total Total Rate Rate Payments Maturities Maturities 100% Pro Rata Pro Rata Pro Rata Consolidated Maturity Schedule (1) 2015 $17.3 $174.3 $350.0 $541.6 $ % 4.50% % 7.49% % 5.83% % 4.07% % 5.25% , , % 3.75% % 3.82% % 4.67% % 3.38% 2024 and beyond % 3.53% Unsecured debt discount (6.7) (6.7) (6.7) $128.8 $1,257.0 $3,857.0 $5,242.8 $5, % 4.44% Unconsolidated Maturity Schedule (1) 2015 $4.1 $0.0 $0.0 $4.1 $ % 0.00% % 5.99% , , % 5.46% % 4.34% % 1.82% % 2.18% % 5.41% % 3.38% % 4.32% 2024 and beyond % 4.30% Total $38.7 $3,190.5 $0.0 $3,229.2 $ % 4.52% % of Total Consolidated Unconsolidated Fixed 84.0% 63.8% Variable 16.0% 36.2% Recourse to DDR 74.4% 0.0% Non-recourse to DDR 25.6% 100.0% (1) Assumes borrower extension options are exercised. 22

25 Consolidated Debt Detail $ in millions Balance Balance Maturity Cash Interest 100% DDR Share Date (1) Rate (2) (3) Senior Debt Unsecured Revolver ($750m) $241.5 $ /20 L Unsecured Revolver ($50m) /20 L Secured Term Loan ($200m) /18 L Unsecured Term Loan ($400m) /20 L $741.5 $741.5 Public Debt Convertible Notes (4) $346.0 $ / % Unsecured Notes / % Unsecured Notes / % Unsecured Notes / % Unsecured Notes / % Unsecured Notes / % Unsecured Notes / % Unsecured Notes / % Unsecured Notes / % Unsecured Notes / % $3,115.5 $3,115.5 Mortgage Debt Hamilton Commons, NJ $0.5 $0.5 09/ % Winter Garden Village, FL / % Cumming Town Center, GA / % Silver Spring Square, PA / % Tops Plaza, NY / % Freedom Plaza, NY / % Sycamore Crossing, OH / % The Maxwell, IL /16 L Falcon Ridge Town Center, CA / % Vista Village, CA / % Walmart Supercenter, NC / % Connecticut Commons, CT / % Riverdale Village, MN / % Riverdale Village Perimeter, MN / % Lake Brandon Village, FL / % Shoppers World Brookfield, WI / % Marketplace of Brown Deer, WI / % Brown Deer Center, WI / % Thruway Plaza (Walmart), NY / % Tops Plaza, NY / % Falcon Ridge Town Center, CA / % Walmart Supercenter, SC / % Fortuna Center, VA / % 23

26 Consolidated Debt Detail $ in millions Balance Balance Maturity Cash Interest 100% DDR Share Date (1) Rate (2) (3) Johns Creek Town Center, GA / % Southland Crossings, OH / % The Promenade at Brentwood, MO / % DDR Headquarters, OH /18 L Mohawk Commons, NY / % Lowe's, TN / % Nassau Park Pavilion, NJ / % Bandera Pointe, TX / % Presidential Commons, GA / % Plaza Cayey, PR / % Plaza Fajardo, PR / % Plaza Isabela, PR / % Plaza Walmart, PR / % Mariner Square, FL / % Northland Square, IA / % Plaza Rio Hondo, PR / % Easton Marketplace, OH / % The Fountains, FL / % Perimeter Pointe, GA / % Polaris Towne Center, OH / % Chapel Hills West, CO / % West Valley Marketplace, PA / % Plaza Escorial, PR / % Wrangleboro Consumer Sq, NJ / % Chapel Hills East, CO / % Paradise Village Gateway, AZ / % Macedonia Commons, OH / % Gulfport Promenade, MS /37 S + 37 $1,385.8 $1,375.9 FMV adjustment - assumed debt Total $1,403.2 $1,393.3 Rate Type Fixed $4,402.7 $4, years 5.03% Variable years 1.34% $5,242.8 $5, years 4.44% 24

27 Consolidated Debt Detail $ in millions Balance Balance Maturity Cash Interest 100% DDR Share Date (1) Rate (2) (3) Perpetual Preferred Stock Class J $200.0 $200.0 Perpetual 6.500% Class K Perpetual 6.250% Interest Rate Swaps Notional Rate Fixed Termination Underlying Debt Hedged: Amount Hedged Rate Date Mortgage Portfolio $ mo. LIBOR 2.81% 9/1/17 (1) Assumes borrower extension options are exercised. (2) L = LIBOR, S = SIFMA. (3) Does not include discounts or premiums. (4) The $350 million face value of the convertible notes is to be settled in cash. Any premium may be net settled prior to November 2015 with DDR's common stock or cash at DDR s option once the stock price rises above 125% of the $14.59 conversion price (as of June 30, 2015) for a specified period of time as outlined in the Prospectus Supplement dated November 1, The conversion price is subject to future adjustments, including the declaration of a quarterly dividend. No dilution assumed for purposes of calculating FFO or Operating FFO as of June 30, 2015, since the market trigger has not been achieved and the notes were not convertible. Included in this amount is a $4.0 million reduction as compared to the face value of the convertible notes representing the remaining accretion of the initial conversion valuation. 25

28 Unconsolidated Debt Detail $ in millions Balance Balance Maturity Cash Interest 100% DDR Share Date (1) Rate (2) (3) BRE DDR Retail Holdings III Telegraph Plaza, MI $4.8 $0.2 12/ % Camp Creek, GA / % May 2019 Loan Pool (2 assets) / % November 2019 Loan Pool (42 assets) /19 L Whittwood Town Center, CA / % January 2022 Loan Pool (3 assets) / % Kyle Marketplace, TX / % March 2022 Loan Pool (3 assets) / % Eastland Center, CA / % Greenway Commons, TX / % July 2022 Loan Pool (4 assets) / % White Oak Village, VA / % January 2023 Loan Pool (4 assets) / % Kingsbury Center, IL / % Valley Bend, AL / % $1,201.2 $60.0 DDR Domestic Retail Fund I Village Center, WI $10.7 $2.1 02/17 L West Falls Plaza, NJ /17 L Additional Assets / % Heather Island, FL / % Hilliard Rome, OH / % $920.4 $184.1 DDRTC Core Retail Fund Pool 1 (9 assets) $350.2 $ / % Pool 5 (11 assets) (3) /20 L Pool 3 (6 assets) (3) /20 L Birkdale Village, NC / % $815.0 $122.3 DDR-SAU Retail Fund DDR-SAU Retail Fund (14 assets) $83.3 $ / % DDR-SAU Retail Fund (9 assets) / % $153.5 $30.7 Other Joint Ventures Lennox Town Center Limited, OH $1.0 $0.5 07/ % Lennox Town Center Limited, OH / % RO & SW Realty (9 assets) / % Sun Center Limited, OH / % RVIP IIIB, Deer Park, IL / % $139.1 $

29 Unconsolidated Debt Detail $ in millions Balance Balance Maturity Cash Interest 100% DDR Share Date (1) Rate (2) (3) Subtotal $3,229.2 $451.2 FMV Adjustment - Assumed Debt Total $3,247.3 $452.1 Rate Type Fixed $2,061.8 $ years 5.34% Variable 1, years 1.92% $3,229.2 $ years 4.58% Interest Rate Swaps Notional Rate Fixed Termination Underlying Debt Hedged: Amount Hedged Rate Date Mortgage Loan $ mo. LIBOR 1.87% 12/1/18 (1) Assumes borrower extension options are exercised. (2) L = LIBOR (3) Loans with floor interest rates: Floor: DDRTC Holdings Pool 5 (11 assets) 1 mo. LIBOR of 0.25% DDRTC Holdings Pool 3 (6 assets) 1 mo. LIBOR of 0.25% 27

30 Analyst Coverage Corporate Headquarters Investor Relations DDR Corp. Matt Lougee 3300 Enterprise Parkway Toll Free: (877) Beachwood, Ohio Main: (216) Website: Equity Research Bank of America Merrill Lynch Craig Schmidt (646) Canaccord Genuity Paul Morgan (415) Capital One Chris Lucas (571) Citigroup Michael Bilerman (212) Christy McElroy (212) Cowen & Company Jim Sullivan (646) Credit Suisse Ian Weissman (212) George Auerbach (212) Deutsche Bank Vincent Chao (212) DISCERN Dave Wigginton (646) Evercore ISI Steve Sakwa (212) Samir Khanal (212) Goldman Sachs Andrew Rosivach (212) Caitlin Burrows (212) Green Street Advisors Jason White (949) Hilliard Lyons Carol Kemple (502) Jefferies and Company Tayo Okusanya (212) J.P. Morgan Michael Mueller (212) KeyBanc Capital Markets Jordan Sadler (917) Todd Thomas (917) Morgan Stanley Haendel St. Juste (212) Catherine Klinchuch (212) RBC Capital Markets Rich Moore (440) Sandler O'Neill Alex Goldfarb (212) SunTrust Robinson Humphrey Ki Bin Kim (212) UBS Ross Nussbaum (212) Jeremy Metz (212) Wells Fargo Jeff Donnelly (617) Tamara Fique (443) Fixed Income Research Barclays Peter Troisi (212) Citigroup Tom Cook (212) J.P. Morgan Mark Streeter (212) Wells Fargo Thierry Perrein (704)

31 Revenues DDR Corp. Notable Accounting and Supplemental Policies Percentage and overage rents are recognized after the tenants reported sales have exceeded the applicable sales breakpoint. Tenant reimbursements are recognized in the period in which the expenses are incurred. Lease termination fees are recognized upon termination of a tenant s lease when the Company has no further obligations under the lease. General and Administrative Expenses General and administrative expenses include certain internal leasing salaries, legal salaries and related expenses associated with the leasing of space which are charged to operations as incurred. All internal and external acquisition costs are expensed as incurred. The Company does not capitalize any executive officer compensation. General and administrative expenses include executive property management compensation and related expenses. Property management services direct compensation is reflected in operating and maintenance expenses. Deferred Financing Costs Costs incurred in obtaining financing are included in deferred charges and amortized on a straight-line basis over the term of the related debt agreement; 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. Construction in progress includes shopping center developments and significant expansions and redevelopments. Acquisitions of a partner s interest in an unconsolidated joint venture in which a change of control has occurred are recorded at fair value. Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets as follows: Buildings Building Improvements Furniture/Fixtures/ Tenant Improvements 20 to 40 years 5 to 20 years Shorter of economic life or lease terms 29

32 Capitalization DDR Corp. Notable Accounting and Supplemental Policies Expenditures for maintenance and repairs are charged to operations as incurred. Renovations and expenditures that improve or extend the life of the asset are capitalized. 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. Interest expense and real estate taxes incurred during construction are capitalized and depreciated over the building life. The Company does not capitalize interest on land held for development which is on hold and is not undergoing any development activities. 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. Effective in 2015, the operating activity and the gains or losses on the sales of operating shopping centers are generally no longer reflected as discontinued operations. Leasing Spreads Leasing spreads are calculated by comparing the prior tenant's annual base rent in the final year of the old lease to the new tenant's annual base rent in the first year of the new lease. The reported calculation, "Comparable", only includes deals executed within one year of the date that the prior tenant vacated. "Non-comp" deals consist of deals not executed within one year of the date the prior tenant vacated, deals which resulted in a significant difference in size, or deals for space which was vacant at acquisition. Same Store NOI ( SSNOI ) Excludes development, major redevelopment, straight-line rental income and expenses, lease termination income, FMV of leases and provisions for uncollectible amounts and/or recoveries thereof; includes assets owned in comparable periods (15 months for quarter comparisons). Net Effective Rents Net effective rents are calculated as a weighted average per rentable square foot over the lease term with full consideration for all costs associated with leasing the space rather than pro rata 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. 30

33 Investor Relations Department 3300 Enterprise Parkway Beachwood, Ohio P F