Exhibit 99.1

DDR CORP. QUARTERLY FINANCIAL SUPPLEMENT FOR THE PERIOD ENDED JUNE 30, 2018

 

 

 


DDR Corp.

Table of Contents

 

Section

Page

 

 

Earnings Release & Financial Statements

 

Press Release

1-7

 

 

Company Summary

 

Portfolio Summary

 

8

Capital Structure

9

Same Store Metrics

10-11

DDR and Retail Value Inc. Financial Information

12-13

Leasing Summary

14 -15

Top 50 Tenants

16

Lease Expirations

17

 

 

Investments

 

Developments/Redevelopments

18

Dispositions

19

 

 

Debt Summary

 

Debt Summary

20

Consolidated Debt Detail

21

Unconsolidated Debt Detail

22-23

Debt/Adjusted EBITDA

24

 

 

Unconsolidated Joint Ventures

 

Unconsolidated Joint Ventures

25-27

 

 

Shopping Center Summary

 

Top 20 MSA Exposure

28

Property List

29-36

 

 

Reporting Policies and Other

Notable Accounting and Supplemental Policies

37-38

Non-GAAP Measures and Reconciliations

39-42

Leasing Metrics for Wholly-Owned and Unconsolidated Joint Ventures at 100%

43-47

 

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, property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from extreme weather conditions in locations where we own properties, and the ability to estimate accurately the amounts thereof; sufficiency and timing of any insurance recovery payments related to damages from extreme weather conditions; local conditions such as supply 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; redevelopment and construction activities may not achieve a desired return 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 termination of any joint venture arrangements or arrangements to manage real property; the impact of the recent spin-off of Retail Value Inc. or the portfolio transition or any change in strategy; the success of our deleveraging strategy; our ability to maintain REIT status; and the finalization of the financial statements for the period ended June 30, 2018. 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 most recent reports on Form 10-K and Form 10-Q. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

 

 

 


 

 

For immediate release:

 

DDR REPORTS SECOND QUARTER 2018 OPERATING RESULTS

 

BEACHWOOD, OHIO, July 25, 2018 – DDR Corp. (NYSE: DDR) today announced operating results for the quarter ended June 30, 2018.  

 

“I am pleased with our results, highlighted by the completion of the spin-off of Retail Value Inc., allowing DDR to retain a focused, high quality, and growth-oriented portfolio of 78 wholly-owned assets,” commented David R. Lukes, president and chief executive officer.  “Our operating performance in the quarter was also excellent, with strong leasing volumes and spreads, including notable leases with new portfolio tenants, and better than expected same store net operating income.”

 

Results for the Quarter

 

Second quarter net loss attributable to common shareholders was $11.7 million, or $0.07 per diluted share, as compared to net income of $23.2 million, or $0.13 per diluted share, in the year ago-period. The year-over-year increase in net loss is primarily attributable to spin-off transaction costs of $31.4 million and lower gain on sale of assets partially offset by lower impairment charges.

 

Second quarter operating funds from operations attributable to common shareholders (“Operating FFO” or “OFFO”) was $90.5 million, or $0.49 per diluted share, compared to $108.8 million, or $0.59 per diluted share, in the year ago-period. The year-over-year decrease in OFFO is primarily attributable to the dilutive impact of deleveraging asset sales.

 

Significant Second Quarter Activity

 

On July 1, 2018, completed the previously announced spin-off of Retail Value Inc. (“RVI”), an independent company on the New York Stock Exchange under the ticker symbol RVI. RVI owned a portfolio of 48 assets that included 36 continental U.S. assets and all 12 of DDR’s previously owned Puerto Rico assets at the time of the spin-off.  DDR has retained a preferred stock investment of $190 million and will continue to manage the RVI assets.  

 

Sold 17 shopping centers and land parcels for an aggregate sales price of $421.1 million, totaling $202.7 million at DDR’s share, including $10.3 million from the repayment of the Company’s preferred equity investment in its two joint ventures with Blackstone.  Includes two RVI shopping centers sold prior to completion of the spin-off at an aggregate sales price of $105.8 million.

 

Executed a one-for-two reverse stock split of the Company’s common shares in May 2018. All prior period per share information has been restated to reflect the impact of the reverse stock split.

 

Key Quarterly Operating Results

 

Reported 1.4% same store net operating income growth on a pro rata basis for New DDR.  The results of “New DDR” represent the results of the assets as of July 1, 2018 that remain in DDR after the completion of the spin-off of RVI.

 

Generated new leasing spreads of 24.7% and renewal leasing spreads of 5.7%, both on a pro rata basis for New DDR for the quarter, and new leasing spreads of 21.9% and renewal leasing spreads of 6.5%, both on a pro rata basis for New DDR for the trailing twelve-month period.

 

Reported a leased rate of 93.1% at June 30, 2018 for New DDR on a pro rata basis, compared to 93.2% at June 30, 2017.

 

Annualized base rent per occupied square foot on a pro rata basis was $17.36 at June 30, 2018 for New DDR, compared to $17.08 at June 30, 2017.

 


1

 


 

Guidance

There has been no change in the Company’s Operating FFO per share guidance since the update provided on June 4, 2018, for the effect of the reverse stock split. The Company continues to estimate Operating FFO for the third quarter of 2018 to be at least $0.30 per diluted share.  Disposition fees from RVI are excluded from Operating FFO guidance.

 

Reconciliation of Net Income Attributable to DDR to FFO and Operating FFO Estimate:

 

 

3Q2018E

Per Share - Diluted

Net income attributable to Common Shareholders

$0.04 - $0.06

Depreciation and amortization of real estate

0.23 - 0.26

Equity in net income of JVs

(0.02)

JVs' FFO

0.04

FFO (NAREIT)

$0.29

Transaction costs

0.01

Operating FFO

$0.30

About DDR Corp.

DDR is an owner and manager of open-air shopping centers that provide a highly-compelling shopping experience and merchandise mix for retail partners and consumers. The Company 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 and Supplemental Information

The Company will hold its quarterly conference call today at 5:00 p.m. Eastern Time. To participate with access to the slide presentation, please visit the Investors portion of DDR's website, ir.ddr.com, or for audio only, dial 888-317-6003 (U.S.), 866-284-3684 (Canada) or 412-317-6061 (international) using pass code 1536254 at least ten minutes prior to the scheduled start of the call. A replay of the conference call will also be available at ir.ddr.com for one year after the call. A copy of the Company’s Supplemental package is available on the Company’s website.

 

Non-GAAP Measures

FFO is a supplemental non-GAAP financial measure used as a standard in the real estate industry and is a widely accepted measure of real estate investment trust (“REIT”) performance. Management believes that both 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.

 

FFO is generally defined and calculated by the Company as net income (loss), adjusted to exclude:  (i) preferred share dividends, (ii) gains and losses from disposition of depreciable real estate property and related investments, which are presented net of taxes, (iii) impairment charges on depreciable real estate property and related investments and (iv) certain non-cash items. These non-cash items principally include real property depreciation and amortization of intangibles, equity income (loss) from joint ventures and equity income (loss) 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’s calculation of FFO is consistent with the NAREIT definition. The Company calculates Operating FFO by excluding certain non-operating charges and gains. Operating FFO is useful to investors as the Company removes non-comparable charges and gains to analyze the results of its operations and assess performance of the core operating real estate portfolio. Other real estate companies may calculate FFO and Operating FFO in a different manner.

The Company also uses net operating income (“NOI”), a non-GAAP financial measure, as a supplemental performance measure. NOI is calculated as property revenues less property-related expenses. The Company believes NOI provides useful information to investors regarding the Company’s financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level and, when compared across periods, reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and disposition activity on an unleveraged basis.

 

2

 


 

The Company presents NOI information herein on a same store basis or “SSNOI.” The Company defines SSNOI as property revenues less property-related expenses, which exclude straight-line rental income and expenses, lease termination income, management fee expense, fair market value of leases and expense recovery adjustments. SSNOI also excludes activity associated with development and major redevelopment and includes assets owned in comparable periods (15 months for quarter comparisons). In addition, due to the impact of Hurricane Maria on its properties in Puerto Rico in 2017, the Company also excludes its Puerto Rico NOI from SSNOI. SSNOI excludes all non-property and corporate level revenue and expenses. Other real estate companies may calculate NOI and SSNOI in a different manner. The Company believes SSNOI provides investors with additional information regarding the operating performances of comparable assets because it excludes certain non-cash and non-comparable items as noted above.

 

FFO, Operating FFO, NOI and SSNOI do not represent cash generated from operating activities in accordance with GAAP, are not necessarily indicative of cash available to fund cash needs and should not be considered as alternatives to net income computed in accordance with GAAP as indicators of the Company’s operating performance or as alternatives to cash flow as a measure of liquidity. Reconciliations of these non-GAAP measures to their most directly comparable GAAP measures are included in this release and the accompanying financial supplement.

 

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, property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from extreme weather conditions in locations where we own properties, and the ability to estimate accurately the amounts thereof; sufficiency and timing of any insurance recovery payments related to damages from extreme weather conditions; local conditions such as supply 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; redevelopment and construction activities may not achieve a desired return 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 termination of any joint venture arrangements or arrangements to manage real property; the impact of the recent spin-off of Retail Value Inc. or the portfolio transition or any change in strategy; the success of our deleveraging strategy; our ability to maintain REIT status; and the finalization of the financial statements for the period ended June 30, 2018. 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 most recent reports on Form 10-K and Form 10-Q. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

 

 

3

 


DDR Corp.

Income Statement:  Consolidated Interests

 

$ in thousands, except per share

 

 

 

 

 

2Q18

 

2Q17

 

6M18

 

6M17

 

Revenues (1):

 

 

 

 

 

 

 

 

Minimum rents (2)

$141,678

 

$164,623

 

$288,565

 

$331,852

 

Percentage rent

1,453

 

1,823

 

3,261

 

3,522

 

Recoveries

50,558

 

55,633

 

101,912

 

113,109

 

Other property revenues (3)

7,532

 

5,321

 

12,440

 

9,899

 

Business interruption income

3,100

 

0

 

5,100

 

0

 

 

204,321

 

227,400

 

411,278

 

458,382

 

Expenses (4):

 

 

 

 

 

 

 

 

Operating and maintenance

31,149

 

32,150

 

60,906

 

65,141

 

Real estate taxes

30,478

 

33,744

 

62,501

 

68,073

 

 

61,627

 

65,894

 

123,407

 

133,214

 

 

 

 

 

 

 

 

 

 

Net operating income

142,694

 

161,506

 

287,871

 

325,168

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

Fee income

7,195

 

8,787

 

15,306

 

18,226

 

Interest income

5,016

 

7,166

 

10,357

 

15,558

 

Interest expense

(44,913)

 

(48,908)

 

(88,953)

 

(100,735)

 

Depreciation and amortization

(72,462)

 

(90,276)

 

(146,886)

 

(181,160)

 

General and administrative (5)

(20,187)

 

(22,756)

 

(36,302)

 

(53,828)

 

Other income (expense), net (6)

(36,255)

 

(954)

 

(97,862)

 

(958)

 

Impairment charges

(18,060)

 

(28,096)

 

(48,504)

 

(50,069)

 

Hurricane property loss

(224)

 

0

 

(974)

 

0

 

Loss before earnings from JVs and other

(37,196)

 

(13,531)

 

(105,947)

 

(27,798)

 

 

 

 

 

 

 

 

 

 

Equity in net income (loss) of JVs

3,821

 

(717)

 

12,607

 

(2,382)

 

Adjustment (reserve) of preferred equity interests

1,625

 

0

 

(2,336)

 

(76,000)

 

Tax expense

(391)

 

(473)

 

(373)

 

(696)

 

Gain on disposition of real estate, net

29,508

 

44,599

 

39,519

 

82,726

 

Net (loss) income

(2,633)

 

29,878

 

(56,530)

 

(24,150)

 

Non-controlling interests

(696)

 

(267)

 

(952)

 

(480)

 

Net (loss) income DDR

(3,329)

 

29,611

 

(57,482)

 

(24,630)

 

Preferred dividends

(8,383)

 

(6,399)

 

(16,766)

 

(11,993)

 

Net (loss) income Common Shareholders

($11,712)

 

$23,212

 

($74,248)

 

($36,623)

 

 

 

 

 

 

 

 

 

 

Weighted average shares – Basic – EPS (7)

184,634

 

183,493

 

184,595

 

183,355

 

Assumed conversion of diluted securities (7)

0

 

22

 

0

 

0

 

Weighted average shares – Diluted – EPS (7)

184,634

 

183,515

 

184,595

 

183,355

 

 

 

 

 

 

 

 

 

 

Earnings per common share – Basic & Diluted (7)

($0.07)

 

$0.13

 

($0.41)

 

($0.20)

 

 

 

 

 

 

 

 

 

 

Revenue items:

 

 

 

 

 

 

 

(1)

Lost revenue related to hurricane

($2,787)

 

$0

 

($6,570)

 

$0

(2)

Ground lease revenue

9,601

 

10,796

 

19,570

 

21,688

(3)

Lease termination fees

2,695

 

630

 

3,216

 

808

 

 

 

 

 

 

 

 

 

(4)

Operating expenses:

 

 

 

 

 

 

 

 

Bad debt expense

198

 

(332)

 

101

 

(1,256)

 

 

 

 

 

 

 

 

 

(5)

General and administrative expenses:

 

 

 

 

 

 

 

 

Separation charges

(4,641)

 

(5,081)

 

(4,641)

 

(16,552)

 

Internal leasing expenses

(1,382)

 

(1,258)

 

(2,578)

 

(2,850)

 

Construction administrative costs (capitalized)

1,191

 

1,830

 

2,561

 

4,218

 

 

 

 

 

 

 

 

 

(6)

Other income (expense), net

 

 

 

 

 

 

 

 

Transaction costs - spin off

(31,431)

 

0

 

(36,516)

 

0

 

Debt extinguishment costs, net

(1,968)

 

(596)

 

(58,400)

 

(596)

 

Transaction and other (income) expense, net

(2,856)

 

(358)

 

(2,946)

 

(362)

 

 

(36,255)

 

(954)

 

(97,862)

 

(958)

 

 

 

 

 

 

 

 

 

(7)

Prior periods presented have been adjusted to reflect the Company's one-for-two reverse stock split.

 

 

 

 

 

4

 


DDR Corp.

Reconciliation:  Net (Loss) Income to FFO and Operating FFO

and Other Financial Information

 

$ in thousands, except per share

 

 

 

 

 

2Q18

 

2Q17

 

6M18

 

6M17

 

Net (loss) income attributable to Common Shareholders

($11,712)

 

$23,212

 

($74,248)

 

($36,623)

 

Depreciation and amortization of real estate

70,895

 

88,423

 

143,755

 

177,073

 

Equity in net (income) loss of JVs

(3,821)

 

717

 

(12,607)

 

2,382

 

JVs' FFO

6,641

 

6,212

 

13,811

 

12,794

 

Non-controlling interests

506

 

76

 

559

 

152

 

Impairment of depreciable real estate

18,060

 

19,010

 

48,504

 

40,982

 

Gain on disposition of depreciable real estate, net

(28,997)

 

(44,525)

 

(38,685)

 

(81,423)

 

FFO attributable to Common Shareholders

$51,572

 

$93,125

 

$81,089

 

$115,337

 

 

 

 

 

 

 

 

 

 

(Adjustment) reserve of preferred equity interests

(1,625)

 

0

 

2,336

 

76,000

 

Hurricane property loss (1)

(89)

 

0

 

2,445

 

0

 

Impairment charges non-depreciable assets

0

 

9,086

 

0

 

9,086

 

Separation charges

4,641

 

5,081

 

4,641

 

16,552

 

Debt extinguishment, transaction, other, net

36,255

 

948

 

97,862

 

947

 

Joint ventures - debt extinguishment, transaction, other

249

 

604

 

703

 

684

 

Gain on disposition of non-depreciable real estate, net

(511)

 

(74)

 

(834)

 

(1,303)

 

Total non-operating items, net

38,920

 

15,645

 

107,153

 

101,966

 

Operating FFO attributable to Common Shareholders

$90,492

 

$108,770

 

$188,242

 

$217,303

 

 

 

 

 

 

 

 

 

 

Weighted average shares & units Basic: FFO & OFFO (2)

184,786

 

183,741

 

184,760

 

183,615

 

Assumed conversion of dilutive securities (2)

6

 

22

 

7

 

33

 

Weighted average shares & units – Diluted: FFO & OFFO (2)

184,792

 

183,763

 

184,767

 

183,648

 

 

 

 

 

 

 

 

 

 

FFO per share – Basic & Diluted (2)

$0.28

 

$0.51

 

$0.44

 

$0.63

 

Operating FFO per share – Basic & Diluted (2)

$0.49

 

$0.59

 

$1.02

 

$1.18

 

Common stock dividends declared, per share (2)

$0.38

 

$0.38

 

$0.76

 

$0.76

 

 

 

 

 

 

 

 

 

 

Certain non-cash items (DDR share):

 

 

 

 

 

 

 

 

Straight-line rent, net

$277

 

$223

 

($91)

 

$657

 

Amortization of (above)/below-market rent, net

(1,317)

 

4,383

 

526

 

8,233

 

Straight-line ground rent (expense) income

(25)

 

(53)

 

(76)

 

216

 

Debt fair value and loan cost amortization

(2,575)

 

(1,131)

 

(5,274)

 

(2,118)

 

Capitalized interest expense

345

 

478

 

668

 

876

 

Stock compensation expense

(1,392)

 

(1,584)

 

(3,084)

 

(3,492)

 

Non-real estate depreciation expense

(1,525)

 

(1,807)

 

(3,048)

 

(3,942)

 

Non-cash interest income

0

 

0

 

0

 

1,283

 

 

 

 

 

 

 

 

 

 

Capital expenditures (DDR share):

 

 

 

 

 

 

 

 

Development and redevelopment costs

13,043

 

9,865

 

33,517

 

19,520

 

Maintenance capital expenditures

3,049

 

3,200

 

3,570

 

4,024

 

Tenant allowances and landlord work

10,460

 

11,058

 

19,878

 

29,182

 

Leasing commissions

943

 

864

 

1,840

 

1,723

 

 

 

 

 

 

 

 

 

(1)

Hurricane property loss (DDR Share):

 

 

 

 

 

 

 

 

Lost tenant revenue

(2,787)

 

0

 

(6,570)

 

0

 

Business interruption income

3,100

 

0

 

5,100

 

0

 

Clean up costs and other expenses, net

(224)

 

0

 

(975)

 

0

 

 

89

 

0

 

(2,445)

 

0

 

 

 

 

 

 

 

 

 

(2)

Prior periods presented have been adjusted to reflect the Company's one-for-two reverse stock split.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 


DDR Corp.

Balance Sheet:  Consolidated Interests

 

$ in thousands

 

 

 

 

 

At Period End

 

 

2Q18

 

4Q17

 

Assets:

 

 

 

 

Land

$1,667,258

 

$1,738,792

 

Buildings

5,439,822

 

5,733,451

 

Fixtures and tenant improvements

701,439

 

693,280

 

 

7,808,519

 

8,165,523

 

Depreciation

(1,970,100)

 

(1,953,479)

 

 

5,838,419

 

6,212,044

 

Construction in progress and land

83,348

 

82,480

 

Real estate, net

5,921,767

 

6,294,524

 

 

 

 

 

 

Investments in JVs

93,027

 

106,037

 

Receivable – preferred equity interests, net

228,077

 

277,776

 

Cash

32,067

 

92,611

 

Restricted cash

74,730

 

2,113

 

Notes receivable, net

19,670

 

19,675

 

Receivables, net (1)

103,781

 

108,695

 

Property insurance receivable

49,202

 

58,583

 

Intangible assets, net

149,896

 

182,407

 

Other assets, net

32,172

 

27,652

 

Total Assets

6,704,389

 

7,170,073

 

 

 

 

 

 

Liabilities and Equity:

 

 

 

 

Revolving credit facilities

45,000

 

0

 

Unsecured debt

1,918,263

 

2,810,100

 

Unsecured term loan

198,461

 

398,130

 

Secured debt

1,428,025

 

641,082

 

 

3,589,749

 

3,849,312

 

Dividends payable

78,690

 

78,549

 

Other liabilities (2)

343,612

 

344,774

 

Total Liabilities

4,012,051

 

4,272,635

 

 

 

 

 

 

Preferred shares

525,000

 

525,000

 

Common shares

18,465

 

18,426

 

Paid-in capital

5,543,006

 

5,531,249

 

Distributions in excess of net income

(3,397,993)

 

(3,183,134)

 

Deferred compensation

7,718

 

8,777

 

Other comprehensive income

(1,457)

 

(1,106)

 

Common shares in treasury at cost

(7,304)

 

(8,280)

 

Non-controlling interests

4,903

 

6,506

 

Total Equity

2,692,338

 

2,897,438

 

 

 

 

 

 

Total Liabilities and Equity

$6,704,389

 

$7,170,073

 

 

 

 

 

(1)

Straight-line rents receivable, net

$56,354

 

$59,439

 

 

 

 

 

(2)

Below-market leases, net

110,268

 

127,513

 

 

 

6

 


DDR Corp.

Reconciliation of Net Income Attributable to DDR to Same Store NOI (1)

 

 

$ in thousands

 

 

 

 

 

 

 

 

 

 

 

 

At DDR Share

(Non-GAAP)

 

2Q18

 

2Q17

 

2Q18

 

2Q17

GAAP Reconciliation:

 

 

 

 

 

 

 

Net (loss) income attributable to DDR

($3,329)

 

$29,611

 

($3,329)

 

$29,611

Fee income

(7,195)

 

(8,787)

 

(7,195)

 

(8,787)

Interest income

(5,016)

 

(7,166)

 

(5,016)

 

(7,166)

Interest expense

44,913

 

48,908

 

44,913

 

48,908

Depreciation and amortization

72,462

 

90,276

 

72,462

 

90,276

General and administrative

20,187

 

22,756

 

20,187

 

22,756

Other expense, net

36,255

 

954

 

36,255

 

954

Impairment charges

18,060

 

28,096

 

18,060

 

28,096

Hurricane property loss

224

 

0

 

224

 

0

Equity in net (income) loss of joint ventures

(3,821)

 

717

 

(3,821)

 

717

(Adjustment) reserve of preferred equity interests

(1,625)

 

0

 

(1,625)

 

0

Tax expense

391

 

473

 

391

 

473

Gain on disposition of real estate

(29,508)

 

(44,599)

 

(29,508)

 

(44,599)

Income from non-controlling interests

696

 

267

 

696

 

267

Consolidated NOI

142,694

 

161,506

 

142,694

 

161,506

DDR's consolidated JV

0

 

0

 

(383)

 

(396)

Consolidated NOI, net of non-controlling interests

142,694

 

161,506

 

142,311

 

161,110

 

 

 

 

 

 

 

 

Net income (loss) from unconsolidated joint ventures

12,623

 

(33,702)

 

3,529

 

(1,163)

Interest expense

24,946

 

29,004

 

3,806

 

4,606

Depreciation and amortization

37,299

 

47,589

 

4,957

 

5,747

Impairment charges

0

 

27,850

 

0

 

1,392

Preferred share expense

6,317

 

8,239

 

316

 

412

Other expense, net

6,616

 

9,054

 

1,044

 

1,611

(Gain) loss on disposition of real estate, net

(12,356)

 

803

 

(1,877)

 

40

Unconsolidated NOI

75,445

 

88,837

 

11,775

 

12,645

 

 

 

 

 

 

 

 

Total Consolidated + Unconsolidated NOI

218,139

 

250,343

 

154,086

 

173,755

Less:  Non-Same Store NOI adjustments including Puerto Rico NOI

(34,276)

 

(68,246)

 

(31,429)

 

(52,363)

Total SSNOI

$183,863

 

$182,097

 

$122,657

 

$121,392

Less:  RVI continental U.S. and disposition assets

(33,664)

 

(33,664)

 

(33,664)

 

(33,664)

Total New DDR SSNOI

$150,199

 

$148,433

 

$88,993

 

$87,728

 

 

 

 

 

 

 

 

SSNOI % Change – DDR at share (excluding Puerto Rico)

1.0%

 

 

 

1.0%

 

 

SSNOI % Change – New DDR at share

1.2%

 

 

 

1.4%

 

 

 

 

 

 

 

 

 

 

(1) Excludes major redevelopment activity; see Investments section for additional detail. See calculation definition in the Non-GAAP Measures

section.

 

 

 

7

 


DDR Corp.

Portfolio Summary

 

GLA in thousands

 

 

 

 

 

 

 

 

 

 

 

 

6/30/2018

 

3/31/2018

 

12/31/2017

 

9/30/2017

 

6/30/2017

Shopping Center Count

 

 

 

 

 

 

 

 

 

 

Operating Centers - 100%

 

241

 

258

 

273

 

286

 

298

Wholly Owned - DDR (ex RVI as of 4Q17)

 

78

 

82

 

86

 

131

 

136

JV Portfolio

 

115

 

126

 

137

 

143

 

150

Wholly Owned RVI - continental U.S.

 

36

 

38

 

38

 

n/a

 

n/a

Wholly Owned - Puerto Rico (RVI as of 4Q17)

 

12

 

12

 

12

 

12

 

12

 

 

 

 

 

 

 

 

 

 

 

Gross Leasable Area (GLA)

 

 

 

 

 

 

 

 

 

 

Owned and Ground Lease - 100%

 

62,668

 

65,254

 

67,410

 

71,118

 

72,686

Owned and Ground Lease - DDR Share

 

42,754

 

43,999

 

45,118

 

47,039

 

48,053

Wholly Owned - DDR (ex RVI as of 4Q17)

 

22,884

 

23,535

 

24,476

 

38,314

 

39,307

JV Portfolio - DDR Share

 

3,879

 

3,994

 

4,167

 

4,284

 

4,305

Wholly Owned - RVI - continental U.S.

 

11,560

 

12,040

 

12,034

 

n/a

 

n/a

Wholly Owned - Puerto Rico (RVI as of 4Q17)

 

4,431

 

4,431

 

4,441

 

4,441

 

4,441

Unowned - 100%

 

21,410

 

23,604

 

24,758

 

26,104

 

27,352

 

 

 

 

 

 

 

 

 

 

 

Quarterly Operational Overview

 

 

 

 

 

 

 

 

 

 

DDR Share

 

 

 

 

 

 

 

 

 

 

Base Rent PSF

 

$16.62

 

$16.49

 

$16.46

 

$16.16

 

$16.09

Base Rent PSF < 10K

 

$27.49

 

$27.29

 

$27.11

 

$26.93

 

$26.72

Base Rent PSF > 10K

 

$13.52

 

$13.41

 

$13.36

 

$13.09

 

$13.01

Leased Rate

 

92.3%

 

92.9%

 

93.2%

 

93.4%

 

93.7%

Commenced Rate

 

90.3%

 

90.8%

 

91.3%

 

91.4%

 

91.5%

Leased Rate < 10K SF

 

86.9%

 

87.1%

 

87.6%

 

87.8%

 

87.9%

Leased Rate > 10K SF

 

94.0%

 

94.6%

 

94.9%

 

95.1%

 

95.4%

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned DDR (ex RVI as of 4Q17)

 

 

 

 

 

 

 

 

 

 

Base Rent PSF

 

$17.72

 

$17.52

 

$17.41

 

$15.87

 

$15.79

Leased Rate

 

93.2%

 

93.6%

 

93.5%

 

93.7%

 

94.0%

Leased Rate < 10K SF

 

91.2%

 

90.7%

 

90.3%

 

89.1%

 

89.4%

Leased Rate > 10K SF

 

93.7%

 

94.5%

 

94.4%

 

95.0%

 

95.3%

 

 

 

 

 

 

 

 

 

 

 

Joint Venture DDR Share

 

 

 

 

 

 

 

 

 

 

Base Rent PSF

 

$15.23

 

$15.02

 

$14.93

 

$14.81

 

$14.71

Leased Rate

 

92.8%

 

93.3%

 

93.6%

 

93.3%

 

93.8%

Leased Rate < 10K SF

 

85.3%

 

85.4%

 

86.3%

 

86.1%

 

86.2%

Leased Rate > 10K SF

 

95.6%

 

96.2%

 

96.4%

 

96.0%

 

96.6%

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned RVI - continental U.S.

 

 

 

 

 

 

 

 

 

 

Base Rent PSF

 

$13.56

 

$13.63

 

$13.60

 

n/a

 

n/a

Leased Rate

 

92.5%

 

93.4%

 

93.6%

 

n/a

 

n/a

Leased Rate < 10K SF

 

83.5%

 

85.0%

 

86.4%

 

n/a

 

n/a

Leased Rate > 10K SF

 

95.1%

 

95.8%

 

95.6%

 

n/a

 

n/a

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned - Puerto Rico (RVI as of 4Q17)

 

 

 

 

 

 

 

 

 

 

Base Rent PSF

 

$20.71

 

$20.89

 

$21.12

 

$20.60

 

$20.82

Leased Rate

 

87.1%

 

87.0%

 

89.6%

 

90.7%

 

90.4%

Leased Rate < 10K SF

 

79.0%

 

79.3%

 

80.6%

 

81.3%

 

80.5%

Leased Rate > 10K SF

 

91.0%

 

90.7%

 

93.9%

 

95.1%

 

95.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operational Statistics

 

 

 

 

 

 

 

 

 

 

% of Aggregate Property NOI - Wholly Owned – DDR Share

 

90.6%

 

90.6%

 

90.5%

 

91.6%

 

91.7%

% of Aggregate Property NOI - Joint Venture – DDR Share

 

9.4%

 

9.4%

 

9.5%

 

8.4%

 

8.3%

 

 

 

 

 

 

 

 

 

 

 

Same Store NOI

 

 

 

 

 

 

 

 

 

 

DDR at share (excluding Puerto Rico)

 

1.0%

 

1.5%

 

-0.4%

 

0.0%

 

0.0%

New DDR at share

 

1.4%

 

2.6%

 

0.8%

 

n/a

 

n/a

 

 

 

 

 

 

 

 

 

 

 

TTM Total Leasing - New DDR at share (GLA in 000's)

 

3,501

 

3,289

 

3,648

 

4,570

 

4,647

TTM Blended New and Renewal Rent Spreads - New DDR at share

 

8.4%

 

8.9%

 

8.4%

 

7.9%

 

9.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 


DDR Corp.

Capital Structure

 

$, shares and units in thousands, except per share

 

 

 

 

 

 

 

 

June 30, 2018

 

December 31, 2017

 

December 31, 2016

Capital Structure

 

 

 

 

 

 

Market Value Per Share

 

$14.78

 

$17.92

 

$30.54

 

 

 

 

 

 

 

Common Shares Outstanding

 

184,651

 

184,237

 

183,132

Operating Partnership Units

 

141

 

186

 

199

Total Outstanding Common Shares

 

184,792

 

184,423

 

183,331

 

 

 

 

 

 

 

Common Shares Equity

 

$2,730,302

 

$3,304,857

 

$5,598,939

 

 

 

 

 

 

 

Perpetual Preferred Stock - Class J

 

200,000

 

200,000

 

200,000

Perpetual Preferred Stock - Class K

 

150,000

 

150,000

 

150,000

Perpetual Preferred Stock - Class A

 

175,000

 

175,000

 

0

Total Perpetual Preferred Stock

 

$525,000

 

$525,000

 

$350,000

 

 

 

 

 

 

 

Unsecured Credit Facilities

 

45,000

 

0

 

0

Unsecured Term Loan

 

200,000

 

400,000

 

400,000

Unsecured Notes Payable

 

1,929,632

 

2,827,052

 

2,927,185

Mortgage Debt (includes JVs at DDR share)

 

1,770,620

 

988,740

 

1,382,483

Total Debt (includes JVs at DDR share)

 

3,945,252

 

4,215,792

 

4,709,668

Less: Cash (including restricted cash)

 

106,797

 

94,724

 

39,225

Net Debt

 

$3,838,455