Ddr Corp (DDR) SEC Filing 10-Q Quarterly report for the period ending Friday, June 30, 2017

U.S. Portfolio

(1.0%) – 0.5%

Total Portfolio

(1.5%) – 0.0%

Earnings Press Release
10-Q Quarterly Report
10-Q QoQ Changes
Ddr Corp
Ticker: DDR CIK: 894315

Exhibit 99.1

LOGO

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
Leasing Summary		11
Top 50 Tenants		12
Lease Expirations		13

Investments
Developments/Redevelopments		14
Transactions		15

Debt Summary
Debt Summary		16
Consolidated Debt Detail		17–18
Unconsolidated Debt Detail		19–20
Debt/Adjusted EBITDA		21

Unconsolidated Joint Ventures
Unconsolidated Joint Ventures		22–23

Reporting Policies and Other
Notable Accounting and Supplemental Policies		24–25
Non-GAAP Measures and Reconciliations		26–29
Leasing Metrics for Wholly-Owned and Joint Ventures at 100%		30–33

Property List		34–40

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 our results to differ materially from those indicated by such forward-looking statements, including among other factors, 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 success of our deleveraging strategy; any impact or results from the Company’s portfolio transition or any change in strategy; and the finalization of the financial statements for the period ended June 30, 2017. 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, 2016. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

LOGO

For immediate release:

DDR REPORTS SECOND QUARTER 2017 OPERATING RESULTS

BEACHWOOD, OHIO, July 26, 2017 – DDR Corp. (NYSE: DDR) today announced operating results for the quarter ended June 30, 2017.

“Our second quarter results were characterized by strong financial and operational execution. We made progress reducing leverage and lengthening our average debt maturity by selling assets and accessing the capital markets. Our operations were ahead of plan and we completed our portfolio review and strategic planning process over a compressed time-period. I am excited about continuing to execute on these plans, which should position the company for strong future growth,” commented David R. Lukes, president and chief executive officer.

Financial Highlights

●

Second quarter net income attributable to common shareholders was $23.2 million, or $0.06 per diluted share, as compared to net income of $35.5 million, or $0.10 per diluted share, in the year ago-period. The year-over-year decline in net income attributable to common shareholders is primarily attributable to impairment charges aggregating $28.1 million recorded on one shopping center and two parcels of undeveloped land.

●

Second quarter operating funds from operations attributable to common shareholders (“Operating FFO” or “OFFO”) was $108.8 million, or $0.30 per diluted share, compared to $122.4 million, or $0.33 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

Asset Sales

●

Generated total asset sales and loan repayment proceeds of $237.5 million, totaling $225.7 million at DDR’s share

●

Sold two shopping centers in Puerto Rico for an aggregate sales price of $57.3 million

●

Sold nine shopping centers in the U.S. for an aggregate sales price of $149.2 million, totaling $137.5 million at DDR’s share

Capital Markets and Investments

●

Issued $450 million aggregate principal amount of 4.700% senior unsecured notes due 2027

●

Issued $175 million aggregate principal amount of 6.375% Class A Cumulative Redeemable Preferred Shares

●

Repaid in July 2017, $300 million 4.75% senior unsecured notes due April 2018

●

Recapitalized the DDR Domestic Retail Fund I joint venture which included a new $707 million mortgage loan on 52 assets to repay all of the joint venture’s outstanding mortgage debt

Key Operating Results

●

Reported a decrease in same store net operating income, including Puerto Rico, of -0.1% on a pro rata basis; and excluding Puerto Rico, same store net operating income was flat on a pro rata basis; presentation has been adjusted to include bad debt expense on a comparable basis

●

Executed 258 new leases and renewals for 1.9 million square feet

●

Generated new leasing spreads of 10.0% and renewal leasing spreads of 5.7%, both on a pro rata basis and including Puerto Rico for the quarter, and new leasing spreads of 10.4% and renewal leasing spreads of 6.5%, both on a pro rata basis and including Puerto Rico for the trailing twelve-month period

●

Reported a portfolio leased rate of 93.7% at June 30, 2017, compared to 96.1% at June 30, 2016, on a pro rata basis

●

Annualized base rent per occupied square foot on a pro rata basis was $16.09 at June 30, 2017, compared to $14.92 at June 30, 2016

Other Significant Activity

●

Completed the previously announced portfolio review and strategic planning process.

●

As a result of a full portfolio review and subsequent decision on asset sales, the Company recorded impairment charges on one shopping center and two parcels of undeveloped land aggregating $28.1 million in the second quarter.

Guidance

The Company’s 2017 operating assumptions remain as follows:

●

Expected annual growth in same store net operating income range as follows:

●

Expected leased rate at year end of 93.0% to 93.5%

●

Expected General and Administrative expenses of $72 million to $75 million

●

Expected Fee income of $30 million to $33 million

●

Expected Interest income of $26 million to $29 million

●

Expected redevelopment activity placed in service of $80 million (approximately $40 million of incremental same store NOI) weighted towards the second half of the year at high single-digit yields

About DDR Corp.

DDR is an owner and manager of 298 value-oriented shopping centers representing 100 million square feet in 34 states and Puerto Rico. The Company owns a high-quality portfolio of open-air shopping centers in major metropolitan areas that provide a highly-compelling shopping experience and merchandise mix for retail partners and consumers. The Company actively manages its assets with a focus on creating 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 and Supplemental Information

The Company will hold its quarterly conference call today at 8:30 a.m. Eastern Time. To participate with access to the slide presentation, please visit the Investors portion of DDR’s website, www.ddr.com/events, or for audio only, dial 877-249-1119 (U.S.), 855-669-9657 (Canada) or 412-542-4143 (international) at least ten minutes prior to the scheduled start of the call. A replay of the conference call will also be available at www.ddr.com/events for one year after the call. A copy of the Company’s Supplemental package is available on the Company’s website at www.ddr.com.

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.

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. The Company presents SSNOI both with and without provisions for uncollectible amounts and/or recoveries thereof. In addition, the Company presents SSNOI both with and without the results of its Puerto Rico portfolio. SSNOI also excludes activity associated with development and major redevelopment and single tenant assets and includes assets owned in comparable periods (15 months for quarter comparisons). 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, 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 success of our deleveraging strategy; any impact or results from the Company’s portfolio transition or any change in strategy; and the finalization of the financial statements for the period ended June 30, 2017. 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, 2016. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

DDR Corp.

Income Statement: Consolidated Interests


	$ in thousands, except per share
		2Q17		2Q16		6M17		6M16
	Revenues:
	Minimum rents (1)		$164,623		$178,064		$331,852		$355,431
	Percentage rent		1,823		1,654		3,522		3,590
	Recoveries		55,633		61,376		113,109		122,975
	Other property revenues (2)		5,321		4,762		9,899		10,105

			227,400		245,856		458,382		492,101

	Expenses (3):
	Operating and maintenance		32,150		35,330		65,141		72,588
	Real estate taxes		33,744		36,534		68,073		72,318

			65,894		71,864		133,214		144,906

	Net operating income		161,506		173,992		325,168		347,195

	Other income (expense):
	Fee income		8,787		11,465		18,226		19,643
	Interest income		7,166		9,446		15,558		18,496
	Interest expense		(48,908)		(54,012)		(100,735)		(111,909)
	Depreciation and amortization		(90,276)		(97,698)		(181,160)		(194,600)
	General and administrative (4)		(22,756)		(18,499)		(53,828)		(36,375)
	Other income (expense), net		(954)		2,081		(958)		3,854
	Impairment charges		(28,096)		0		(50,069)		0

	(Loss) income before earnings from JVs and other		(13,531)		26,775		(27,798)		46,304

	Equity in net (loss) income of JVs		(717)		1,117		(2,382)		15,538
	Reserve of preferred equity interests		0		0		(76,000)		0
	Tax expense		(473)		(245)		(696)		(703)
	Gain on disposition of real estate, net		44,599		13,721		82,726		26,102

	Net income (loss)		29,878		41,368		(24,150)		87,241
	Non-controlling interests		(267)		(310)		(480)		(610)

	Net income (loss) DDR		29,611		41,058		(24,630)		86,631
	Preferred dividends		(6,399)		(5,594)		(11,993)		(11,188)

	Net income (loss) Common Shareholders		$23,212		$35,464		($36,623)		$75,443

	Weighted average shares – Basic – EPS		366,987		364,976		366,710		364,834
	Assumed conversion of dilutive securities		43		342		0		346

	Weighted average shares – Diluted – EPS		367,030		365,318		366,710		365,180

	Earnings per common share – Basic & Diluted		$0.06		$0.10		($0.10)		$0.21

	Revenue items:
(1)	Ground lease revenue		$10,796		$10,240		$21,688		$20,340
(2)	Lease termination fees		630		216		808		1,445

(3)	Operating expenses:
	Recoverable expenses		(60,237)		(65,031)		(122,354)		(131,147)
	Non-recoverable expenses		(5,325)		(5,633)		(9,604)		(11,532)
	Bad debt expense		(332)		(1,200)		(1,256)		(2,227)

(4)	General and administrative expenses:
	Separation charges		(5,081)		0		(16,552)		0
	Internal leasing expenses		(1,258)		(1,979)		(2,850)		(4,061)
	Construction administrative costs (capitalized)		1,830		1,948		4,218		3,900

DDR Corp.

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

and Other Financial Information


$ in thousands, except per share
	2Q17		2Q16		6M17		6M16
Net income (loss) attributable to Common Shareholders		$23,212		$35,464		($36,623)		$75,443
Depreciation and amortization of real estate		88,423		95,626		177,073		190,480
Equity in net loss (income) of JVs		717		(1,117)		2,382		(15,538)
JVs’ FFO		6,212		6,426		12,794		12,576
Non-controlling interests		76		76		152		152
Impairment of depreciable real estate		19,010		0		40,982		0
Gain on disposition of depreciable real estate, net		(44,525)		(16,154)		(81,423)		(28,250)

FFO attributable to Common Shareholders		$93,125		$120,321		$115,337		$234,863

Reserve of preferred equity interests		0		0		76,000		0
Impairment charges		9,086		0		9,086		0
Separation charges		5,081		0		16,552		0
Transaction, debt extinguishment, other, net		948		(333)		947		(361)
Joint ventures - debt extinguishment, transaction, other		604		20		684		20
(Gain) loss on disposition of non-depreciable real estate, net		(74)		2,433		(1,303)		2,148

Total non-operating items, net		15,645		2,120		101,966		1,807

Operating FFO attributable to Common Shareholders		$108,770		$122,441		$217,303		$236,670

Weighted average shares and units – Basic – FFO & OFFO		367,482		365,851		367,231		365,774
Assumed conversion of dilutive securities		43		341		66		346

Weighted average shares and units – Diluted – FFO & OFFO		367,525		366,192		367,297		366,120

FFO per share – Basic & Diluted		$0.25		$0.33		$0.31		$0.64
Operating FFO per share – Basic & Diluted		$0.30		$0.33		$0.59		$0.65
Common stock dividends declared, per share		$0.19		$0.19		$0.38		$0.38

Certain non-cash items (DDR share):
Straight-line rent, net		$223		$1,298		$657		$2,653
Amortization of (above)/below-market rent, net		4,383		1,159		8,233		1,556
Straight-line ground rent income (expense)		(53)		(182)		216		(276)
Debt fair value and loan cost amortization		(1,131)		(561)		(2,118)		(1,288)
Capitalized interest expense		478		703		876		1,947
Stock compensation expense		(1,584)		(1,690)		(3,492)		(3,298)
Non-real estate depreciation expense		(1,807)		(2,024)		(3,942)		(4,025)
Non-cash interest income		0		1,954		1,283		3,899

Capital expenditures (DDR share):
Development and redevelopment costs		14,041		26,415		29,965		50,887
Maintenance capital expenditures		3,200		6,031		4,024		7,048
Tenant allowances and landlord work		7,007		6,635		19,083		14,091
Leasing commissions		739		1,251		1,377		2,155

DDR Corp.

Balance Sheet: Consolidated Interests


	$ in thousands
		At Period End
		2Q17		4Q16
	Assets:
	Land		$1,938,589		$1,990,406
	Buildings		6,193,366		6,412,532
	Fixtures and tenant improvements		726,721		735,685

			8,858,676		9,138,623
	Depreciation		(2,001,376)		(1,996,176)

			6,857,300		7,142,447
	Construction in progress and land		113,543		105,435

	Real estate, net		6,970,843		7,247,882

	Investments in JVs		117,304		60,793
	Receivable – preferred equity interests, net		318,181		393,338
	Cash		414,074		30,430
	Restricted cash		61,462		8,795
	Notes receivable, net		19,590		49,503
	Receivables, net (1)		114,449		121,367
	Intangible assets, net		216,602		241,598
	Other assets, net		37,533		43,812

	Total Assets		8,270,038		8,197,518

	Liabilities and Equity:
	Unsecured debt		3,060,345		2,913,217
	Unsecured term loan		398,316		398,399
	Secured debt		1,108,005		1,182,352

			4,566,666		4,493,968

	Dividends payable		76,744		75,245
	Other liabilities (2)		368,412		382,293

	Total Liabilities		5,011,822		4,951,506

	Preferred shares		525,000		350,000
	Common shares		36,715		36,630
	Paid-in capital		5,499,103		5,487,212
	Distributions in excess of net income		(2,809,110)		(2,632,327)
	Deferred compensation		10,254		15,149
	Other comprehensive income		(2,632)		(4,192)
	Common shares in treasury at cost		(9,816)		(14,957)
	Non-controlling interests		8,702		8,497

	Total Equity		3,258,216		3,246,012

	Total Liabilities and Equity		$8,270,038		$8,197,518

(1)	Straight-line rents receivable, net		$63,209		$65,072

(2)	Below-market leases, net		136,638		147,941

DDR Corp.

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


$ in thousands
					At DDR Share (Non-GAAP)
	2Q17		2Q16		2Q17		2Q16
GAAP Reconciliation:
Net income attributable to DDR		$29,611		$41,058		$29,611		$41,058
Fee income		(8,787)		(11,465)		(8,787)		(11,465)
Interest income		(7,166)		(9,446)		(7,166)		(9,446)
Interest expense		48,908		54,012		48,908		54,012
Depreciation and amortization		90,276		97,698		90,276		97,698
General and administrative		22,756		18,499		22,756		18,499
Other expense		954		(2,081)		954		(2,081)
Impairment charges		28,096		0		28,096		0
Equity in net loss (income) of joint ventures		717		(1,117)		717		(1,117)
Reserve of preferred equity interests		0		0		0		0
Tax expense		473		245		473		245
Gain on disposition of real estate		(44,599)		(13,721)		(44,599)		(13,721)
Income from non-controlling interests		267		310		267		310

Consolidated NOI		161,506		173,992		161,506		173,992
DDR’s consolidated JV		0		0		(396)		(454)

Consolidated NOI, net of non-controlling interests		161,506		173,992		161,110		173,538

Net (loss) income from unconsolidated joint ventures		(33,702)		(4,933)		(1,163)		714
Interest expense		29,004		33,319		4,606		5,278
Depreciation and amortization		47,589		49,021		5,747		5,635
Impairment charges		27,850		0		1,392		0
Preferred share expense		8,239		8,305		412		415
Other expense, net		9,054		6,319		1,611		1,011
Loss (gain) on disposition of real estate, net		803		(114)		40		(22)

Unconsolidated NOI		88,837		91,917		12,645		13,031

Total Consolidated + Unconsolidated NOI		250,343		265,909		173,755		186,569
Less: Non-Same Store NOI adjustments		(16,787)		(32,167)		(16,533)		(29,157)

Total SSNOI (including Puerto Rico and bad debt expense)		$233,556		$233,742		$157,222		$157,412

Less: Puerto Rico Same Store NOI		(20,562)		(20,776)		(20,562)		(20,776)

Total SSNOI excluding Puerto Rico (including bad debt expense)		$212,994		$212,966		$136,660		$136,636

Add: bad debt expense		1,262		1,729		856		1,250

Total SSNOI (excluding bad debt expense)		$234,818		$235,471		$158,078		$158,662

SSNOI % Change (including Puerto Rico and bad debt expense)		(0.1%)				(0.1%)
SSNOI % Change excluding Puerto Rico		0.0%				0.0%
SSNOI % Change (excluding bad debt expense)		(0.3%)				(0.4%)

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

DDR Corp.

Portfolio Summary


GLA in thousands
	06/30/17		03/31/17		12/31/16		09/30/16		06/30/16

Shopping Center Summary
Operating Centers - 100%		298		309		319		327		349
Wholly Owned - Domestic		136		144		153		157		177
Wholly Owned - Puerto Rico		12		14		14		14		14
JV Portfolio		150		151		152		156		158

Owned and Ground Lease GLA - 100%		72,686		74,400		75,815		76,631		81,147
Owned and Ground Lease GLA - DDR Share		48,053		49,633		50,983		51,508		55,988
Wholly Owned - Domestic		39,307		40,515		41,871		42,380		46,857
Wholly Owned - Puerto Rico		4,441		4,807		4,807		4,807		4,807
JV Portfolio - 100%		28,938		29,078		29,137		29,444		29,483
JV Portfolio - DDR Share		4,305		4,311		4,305		4,321		4,324
Unowned GLA - 100%		27,352		28,586		29,933		30,622		31,390



Quarterly Operational Overview

DDR Share
Base Rent PSF		$16.09		$15.83		$15.46		$15.36		$14.92
Base Rent PSF < 10K		$26.72		$26.43		$26.16		$26.05		$25.53
Base Rent PSF > 10K		$13.01		$12.83		$12.49		$12.39		$12.08
Leased Rate		93.7%		94.3%		95.0%		95.4%		96.1%
Commenced Rate		91.5%		92.5%		93.8%		93.9%		94.4%
Leased Rate < 10K SF		87.9%		88.3%		89.4%		89.9%		89.6%
Leased Rate > 10K SF		95.4%		96.2%		96.6%		97.0%		98.1%

Wholly Owned Domestic (100%)
Base Rent PSF		$15.79		$15.49		$15.04		$15.01		$14.50
Leased Rate		94.0%		94.7%		95.2%		95.7%		96.6%
Leased Rate < 10K SF		89.4%		89.5%		90.5%		91.2%		90.4%
Leased Rate > 10K SF		95.3%		96.2%		96.5%		97.0%		98.3%

Wholly Owned Puerto Rico (100%)
Base Rent PSF		$20.82		$20.31		$20.59		$19.69		$19.93
Leased Rate		90.4%		90.9%		92.6%		92.6%		92.8%
Leased Rate < 10K SF		80.5%		82.0%		83.6%		83.3%		84.2%
Leased Rate > 10K SF		95.1%		95.1%		96.8%		96.8%		96.8%

Joint Venture DDR Share
Base Rent PSF		$14.71		$14.63		$14.62		$14.56		$14.55
Leased Rate		93.8%		94.6%		95.4%		94.9%		94.9%
Leased Rate < 10K SF		86.2%		87.7%		88.3%		88.0%		89.1%
Leased Rate > 10K SF		96.6%		97.2%		98.1%		97.5%		97.0%

DDR (100%)
Base Rent PSF		$15.46		$15.27		$15.00		$14.92		$14.63
Base Rent PSF < 10K		$25.39		$25.18		$24.95		$24.84		$24.43
Base Rent PSF > 10K		$12.54		$12.41		$12.17		$12.09		$11.90
Leased Rate		93.7%		94.4%		95.0%		95.1%		95.7%
Commenced Rate		91.7%		92.6%		93.6%		93.8%		94.1%
Leased Rate < 10K SF		87.6%		88.1%		88.9%		89.1%		89.1%
Leased Rate > 10K SF		95.7%		96.4%		96.9%		97.0%		97.7%

Joint Venture (100%)
Base Rent PSF		$14.34		$14.26		$14.17		$14.10		$14.09
Leased Rate		93.9%		94.7%		95.2%		94.7%		94.6%
Leased Rate < 10K SF		86.9%		87.8%		87.9%		87.6%		88.4%
Leased Rate > 10K SF		96.2%		96.9%		97.6%		97.1%		96.7%



Operational Statistics
% of Aggregate Property NOI - Wholly Owned - Domestic - DDR Share		79.3%		78.3%		79.5%		80.0%		80.9%
% of Aggregate Property NOI - Wholly Owned - Puerto Rico - DDR Share		12.4%		13.6%		12.7%		12.3%		11.8%
% of Aggregate Property NOI - Joint Venture - DDR Share		8.3%		8.1%		7.8%		7.7%		7.3%

Same Store NOI
DDR Share		-0.1%		-0.1%		2.0%		3.4%		3.1%
Wholly Owned - Domestic		0.1%		0.3%		1.7%		3.3%		3.1%
Wholly Owned - Puerto Rico		-1.0%		-3.3%		-1.1%		2.1%		-0.5%
JV Portfolio at DDR Share		-1.1%		2.2%		5.2%		4.2%		3.9%
DDR - 100%		-0.1%		0.5%		2.8%		3.3%		2.7%

TTM Total Leasing - DDR Share (000s)		6,710		6,175		5,848		6,057		6,160
TTM Blended New and Renewal Rent Spreads - DDR Share		6.9%		7.8%		9.1%		9.7%		9.3%

DDR Corp.

Capital Structure


$, shares and units in thousands, except per share
	June 30, 2017				June 30, 2016

Capital Structure	Amount		% of Total		Amount		% of Total

Common Shares Equity		$3,333,613		38%		$6,637,440		54%

Perpetual Preferred Stock – Class J		200,000		2%		200,000		2%

Perpetual Preferred Stock – Class K		150,000		2%		150,000		1%

Perpetual Preferred Stock - Class A		175,000		2%		0		0%

Unsecured Credit Facilities		0		0%		265,000		2%

Unsecured Term Loan		400,000		5%		400,000		3%

Unsecured Public Debt		3,076,797		35%		2,926,756		24%

Secured Term Loan		200,000		2%		200,000		2%

DDR Share of Unconsolidated Debt		359,281		4%		425,284		3%

Fixed Rate Mortgage Debt (excludes partners’ share)		870,451		10%		1,071,252		9%

Variable Rate Mortgage Debt		25,565		0%		77,325		0%


Total Debt		4,932,094		56%		5,365,617		43%



Total		$8,790,707		100%		$12,353,057		100%

Capital Structure Detail

Common Shares Outstanding		367,144				365,502

Operating Partnership Units		399				399

Total Outstanding Common Shares		367,543				365,901

Market Value per Share		$9.07				$18.14

Common Shares Equity		$3,333,613				$6,637,440

Partners’ Share of Consolidated Debt (excluded above)		$9,837				$9,900

DDR Share of Unconsolidated Debt (included above)		$359,281				$425,284

Debt/Adjusted EBITDA – Consolidated (1)		6.2x				6.7x

Debt/Adjusted EBITDA – Pro Rata (1)		6.5x				7.0x

Credit Ratings

Public Debt Covenants

Debt Rating

Outlook

Actual

Covenant

Threshold

Moody’s

Baa2

Negative

Total Debt to Real Estate Assets Ratio

49%

£ 65%

S&P

BBB-

Stable

Secured Debt to Assets Ratio

11%

£ 40%

Fitch

BBB-

Stable

Unencumbered Assets to Unsecured Debt

197%

³ 135%

Fixed Charge Coverage Ratio

2.7x

³ 1.5x

(1) Excludes Perpetual Preferred Stock.

DDR Corp.

Same Store Metrics (1)

$ in thousands


	Same Store at 100%								Same Store at DDR Share

	2Q17			2Q16			Change		2Q17			2Q16			Change

Leased Rate		93.7%			95.5%			-1.8%		93.6%			96.0%			-2.4%
Commenced Rate		91.9%			94.0%			-2.1%		91.9%			94.4%			-2.5%

Revenues:
Base Rents		$242,337			$241,281			0.4%		$161,969			$161,284			0.4%
Recoveries		82,717			83,227			-0.6%		56,724			57,283			-1.0%
Other		5,725			5,163			10.9%		4,673			4,341			7.6%

		330,779			329,671			0.3%		223,366			222,908			0.2%

Expenses:
Operating		(45,434	)		(45,313	)		0.3%		(30,992	)		(30,781	)		0.7%
Real Estate Taxes		(50,527	)		(48,887	)		3.4%		(34,296	)		(33,465	)		2.5%
Bad Debt Expense		(1,262	)		(1,729	)		-27.0%		(856	)		(1,250	)		-31.5%

		(97,223	)		(95,929	)		1.3%		(66,144	)		(65,496	)		1.0%

Total SSNOI including impact of bad debt expense		$233,556			$233,742			-0.1%		$157,222			$157,412			-0.1%
Total SSNOI excluding impact of bad debt expense		$234,818			$235,471			-0.3%		$158,078			$158,662			-0.4%

Less: Puerto Rico Same Store NOI (2)		(20,562	)		(20,776	)		-1.0%		(20,562	)		(20,776	)		-1.0%

Total SSNOI excluding Puerto Rico		$212,994			$212,966			0.0%		$136,660			$136,636			0.0%

Non-Same Store NOI (3)		16,787			32,167					16,533			29,157

Total Consolidated + Unconsolidated NOI		$250,343			$265,909					$173,755			$186,569

(1) See calculation definition in the Non-GAAP Measures section.

(2) Excludes management fees that are eliminated in consolidation.

(3) See Investments section for detail on major redevelopment activity. Includes results of single-tenant assets. Represents 9.5% of total NOI at DDR share.

DDR Corp.

Leasing Summary

At DDR share except for count; $ and GLA in thousands

Leasing Activity


	Comparable Pool															Total Pool

					New		Prior					Wtd Avg								New		Wtd Avg
	Count				Rent		Rent		Rent			Term				Count				Rent		Term
	At 100%		GLA		PSF		PSF		Spread			(Years)				At 100%		GLA		PSF		(Years)

New Leases

2Q17		28		147,505		$15.16		$13.78		10.0%			9.2				73		410,093		$16.29		9.7

1Q17		39		369,603		10.90		10.60		2.8%	(1)		10.4				78		566,261		12.57		10.2

4Q16		37		117,938		18.12		15.86		14.2%			7.8				73		198,564		18.03		8.1

3Q16		42		126,485		19.95		16.47		21.1%			7.9				83		265,257		18.29		8.3

		146		761,531		$14.35		$13.00		10.4%			9.0				307		1,440,175		$15.44		9.3

Renewals

2Q17		185		1,504,824		$13.77		$13.03		5.7%			5.2				185		1,504,824		$13.77		5.2

1Q17		207		1,188,089		16.07		15.12		6.3%			4.8				207		1,188,089		16.07		4.8

4Q16		199		1,069,818		14.07		13.29		5.9%			5.2				199		1,069,818		14.07		5.2

3Q16		227		1,507,262		14.52		13.44		8.0%			5.6				227		1,507,262		14.52		5.6

		818		5,269,993		$14.56		$13.67		6.5%			5.2				818		5,269,993		$14.56		5.2

New + Renewals

2Q17		213		1,652,329		$13.89		$13.10		6.0%			5.6				258		1,914,917		$14.31		6.3

1Q17		246		1,557,692		14.84		14.05		5.6%			5.7				285		1,754,350		14.94		6.2

4Q16		236		1,187,756		14.48		13.55		6.9%			5.5				272		1,268,382		14.69		5.6

3Q16		269		1,633,747		14.94		13.67		9.3%			5.8				310		1,772,519		15.08		6.0

		964		6,031,524		$14.53		$13.59		6.9%			5.7				1,125		6,710,168		$14.75		6.1

Net Effective Rents
					Avg		TA		LL Work			Commission		Total		Net		Wtd Avg
					Rent		Capex		Capex			Capex		Capex		Effective		Term
			GLA (2)		PSF		PSF		PSF			PSF		PSF		Rent PSF		(Years)

New Leases (2)

2Q17				261,257		$17.07		$3.42		$3.79			$0.35		$7.56		$9.51		8.8

1Q17				411,594		12.67		1.91		1.38			0.22		3.51		9.16		9.8

4Q16				187,064		18.98		2.81		1.71			0.42		4.94		14.04		7.9

3Q16				253,944		18.91		2.58		2.43			0.39		5.40		13.51		8.2

				1,113,859		$16.18		$2.56		$2.21			$0.32		$5.09		$11.09		8.8

Renewals

2Q17				1,504,824		$13.93		$0.07		$0.00			$0.00		$0.07		$13.86		5.2

1Q17				1,188,089		16.19		0.01		0.00			0.00		0.01		16.18		4.8

4Q16				1,069,818		14.28		0.02		0.02			0.00		0.04		14.24		5.2

3Q16				1,507,262		14.67		0.71		0.00			0.03		0.74		13.93		5.6

				5,269,993		$14.72		$0.24		$0.01			$0.01		$0.26		$14.46		5.2

(1) Excluding the retenanting of a dark but rent-paying anchor box at Plaza del Norte, new leasing spreads for 1Q17 and TTM would be 15.8% and 15.4%, respectively. Excluding Puerto Rico, domestic new leasing spreads for 1Q17 and TTM would be 17.7% and 19.0%, respectively.

(2) New Leases exclude development and redevelopment activity.

DDR Corp.

Top 50 Tenants

$ and GLA in thousands


		Number of Units						Base Rent						Owned GLA						Credit Ratings
	Tenant	Wholly Owned		JV		Total		Pro Rata		% of Total		At 100%		Pro Rata		% of Total		At 100%		(S&P/Moody’s/Fitch)
1	TJX Companies (1)		62		40		102	$	25,711		3.8%	$	36,883		2,112		4.4%		3,204	A+/A2/NR

2	Bed Bath & Beyond (2)		56		30		86		22,600		3.4%		30,982		1,783		3.7%		2,479	BBB+/Baa1/NR

3	PetSmart		53		32		85		18,739		2.8%		28,161		1,178		2.5%		1,807	B+/B1/NR

4	Dick’s Sporting Goods (3)		23		17		40		16,766		2.5%		25,684		1,164		2.4%		1,891	NR

5	AMC Theatres		7		5		12		16,144		2.4%		22,310		646		1.3%		936	B+/B1/B

6	Walmart (4)		17		4		21		15,762		2.4%		19,102		2,397		5.0%		2,857	AA/Aa2/AA

7	Best Buy		25		13		38		15,532		2.3%		22,491		1,027		2.1%		1,450	BBB-/Baa1/BBB-

8	Kohl’s		20		9		29		15,024		2.2%		20,318		1,901		4.0%		2,565	BBB-/Baa2/BBB

9	Ross Stores (5)		40		34		74		13,172		2.0%		21,265		1,302		2.7%		2,170	A-/A3/NR

10	Michaels		37		25		62		12,749		1.9%		18,706		954		2.0%		1,453	BB-/Ba2/NR

11	Gap (6)		38		24		62		11,342		1.7%		16,492		682		1.4%		1,004	BB+/Baa2/BB+

12	Ulta		38		19		57		9,749		1.5%		13,950		422		0.9%		611	NR

13	Ascena (7)		70		26		96		8,941		1.3%		11,462		439		0.9%		572	BB-/Ba3/NR

14	Office Depot (8)		24		15		39		8,420		1.3%		12,405		548		1.1%		815	NR/B1/NR

15	Toys “R” Us (9)		16		6		22		8,240		1.2%		9,220		749		1.6%		919	B-/B3/CCC

16	Barnes & Noble		14		9		23		7,624		1.1%		10,814		382		0.8%		570	NR

17	Kroger (10)		7		12		19		6,974		1.0%		11,374		591		1.2%		1,116	BBB/Baa1/BBB

18	Nordstrom Rack		10		2		12		6,686		1.0%		7,881		367		0.8%		431	BBB+/Baa1/BBB+

19	Lowe’s		7		1		8		6,555		1.0%		7,257		935		1.9%		1,047	A-/A3/NR

20	Jo-Ann		18		10		28		6,524		1.0%		9,056		594		1.2%		873	B/Caa1/NR

21	Petco		22		10		32		6,373		1.0%		8,402		324		0.7%		443	B/B2/NR

22	Mattress Firm		44		17		61		6,340		0.9%		8,315		222		0.5%		297	NR

23	Five Below		39		18		57		6,137		0.9%		8,219		360		0.7%		488	NR

24	Cinemark		5		3		8		6,102		0.9%		7,976		403		0.8%		520	BB/NR/NR

25	LA Fitness		9		3		12		6,004		0.9%		8,246		440		0.9%		554	NR

26	DSW		16		10		26		5,934		0.9%		8,780		373		0.8%		564	NR

27	Regal Cinemas		7		1		8		5,903		0.9%		8,003		388		0.8%		457	B+/B1/B+

28	Pier 1 Imports		21		13		34		5,410		0.8%		7,620		240		0.5%		349	B/NR/NR

29	Home Depot		6		3		9		5,293		0.8%		6,768		685		1.4%		1,042	A/A2/A

30	Party City		23		15		38		5,214		0.8%		7,763		300		0.6%		470	NR

31	Dollar Tree Stores		37		28		65		5,035		0.8%		7,760		428		0.9%		654	BB+/Ba1/NR

32	Staples		13		16		29		5,031		0.8%		8,707		332		0.7%		588	BBB-/Baa2/BB+

33	AT&T		48		21		69		4,745		0.7%		6,078		126		0.3%		174	BBB+/Baa1/A-

34	Whole Foods		3		3		6		4,702		0.7%		6,363		210		0.4%		311	BBB-/Baa3/NR

35	Famous Footwear		27		11		38		4,439		0.7%		5,613		225		0.5%		287	BB/Ba3/NR

36	Burlington		7		3		10		4,340		0.6%		5,930		466		1.0%		693	BB/NR/NR

37	Hobby Lobby		8		8		16		3,902		0.6%		7,156		499		1.0%		877	NR

38	Publix		2		33		35		3,557		0.5%		15,457		405		0.8%		1,698	NR

39	Carter’s Childrenswear		28		10		38		3,316		0.5%		4,041		126		0.3%		158	BB+/Ba1/NR

40	Panera		21		14		35		3,247		0.5%		4,966		108		0.2%		168	NR

41	Tailored Brands (11)		20		8		28		3,082		0.5%		4,168		137		0.3%		190	B/NR/NR

42	Rainbow Apparel		26		8		34		2,915		0.4%		3,638		140		0.3%		188	NR

43	Ahold Delhaize (12)		4		6		10		2,911		0.4%		8,393		231		0.5%		539	BBB/Baa2/BBB

44	Chili’s Restaurant		20		5		25		2,910		0.4%		3,572		125		0.3%		152	BB+/Ba1/BB+

45	Footlocker		20		0		20		2,829		0.4%		2,829		78		0.2%		78	BB+/Ba1/NR

46	Stein Mart		7		8		15		2,759		0.4%		4,630		310		0.6%		521	NR

47	L Brands (13)		24		14		38		2,738		0.4%		3,751		101		0.2%		136	BB+/Ba1/BB+

48	Sprint		27		16		43		2,645		0.4%		3,616		66		0.1%		102	B/B2/B+

49	Giant Eagle		2		3		5		2,587		0.4%		5,289		219		0.5%		449	NR

50	BJ’s Wholesale Club		2		1		3		2,521		0.4%		3,780		229		0.5%		339	B-/B3/NR
	Top 50 Total		1,120		642		1,762	$	382,175		57.0%	$	551,642		28,469		59.2%		42,256

	Total Portfolio							$	670,635		100.0%	$	985,592		48,053		100.0%		72,686



⁽¹⁾ T.J. Maxx (38) / Marshalls (42) / HomeGoods (21) / Sierra Trading (1)		⁽⁸⁾ Office Depot (16) / OfficeMax (23)

⁽²⁾ Bed Bath (52) / World Market (22) / buybuy Baby (10) / CTS (2)		⁽⁹⁾ Toys “R” Us (6) / Babies “R” Us (12) / Toys-Babies Combo (4)

⁽³⁾ Dick’s Sporting Goods (37) / Golf Galaxy (3)		⁽¹⁰⁾ Kroger (10) / Harris Teeter (5) / King Soopers (1) / Pick ‘n Save (2) / Mariano’s (1)

⁽⁴⁾ Walmart (16) / Sam’s Club (2) / Neighborhood Market (3)		⁽¹¹⁾ Men’s Wearhouse (19) / Jos. A. Bank (7) / K&G Fashion Superstore (2)

⁽⁵⁾ Ross Dress for Less (71) / dd’s Discounts (3)		⁽¹²⁾ Stop & Shop (5) / Martin’s (2) / Food Lion (2) / Other (1)

⁽⁶⁾ Gap (5) / Old Navy (55) / Banana Republic (2)		⁽¹³⁾ Bath & Body Works (33) / Victoria’s Secret (5)

⁽⁷⁾Ann Taylor (4) / Catherine’s (6) / Dress Barn (28) / Justice (21) / Lane Bryant (26) / Maurice’s (11)

DDR Corp.

Lease Expirations

At DDR share except for count; $ and GLA in thousands


Assumes no exercise of lease options

	Greater than 10K SF					Less than 10K SF					Total
Year	# of Leases	Expiring SF	ABR	Rent PSF	% of ABR > 10K	# of Leases	Expiring SF	ABR	Rent PSF	% of ABR < 10K	# of Leases	Expiring SF	ABR	Rent PSF	% of ABR Total

MTM	6	142	$1,901	$13.39	0.5%	138	156	$4,755	$30.48	2.0%	144	298	$6,656	$22.34	1.1%
2017	27	678	6,570	$9.69	1.7%	296	456	10,867	$23.83	4.7%	323	1,134	17,437	$15.38	2.8%
2018	160	3,208	40,283	$12.56	10.3%	834	1,512	39,943	$26.42	17.2%	994	4,720	80,226	$17.00	12.9%
2019	189	4,162	50,639	$12.17	13.0%	731	1,177	31,321	$26.61	13.5%	920	5,339	81,960	$15.35	13.1%
2020	166	3,477	44,496	$12.80	11.4%	677	1,095	29,834	$27.25	12.8%	843	4,572	74,330	$16.26	11.9%
2021	227	4,645	57,952	$12.48	14.8%	706	1,160	29,662	$25.57	12.8%	933	5,805	87,614	$15.09	14.1%
2022	233	4,970	61,096	$12.29	15.6%	503	920	25,273	$27.47	10.9%	736	5,890	86,369	$14.66	13.9%
2023	140	2,845	34,058	$11.97	8.7%	212	601	15,231	$25.34	6.6%	352	3,446	49,289	$14.30	7.9%
2024	93	1,868	23,483	$12.57	6.0%	199	570	15,306	$26.85	6.6%	292	2,438	38,789	$15.91	6.2%
2025	65	1,188	17,736	$14.93	4.5%	160	418	11,137	$26.64	4.8%	225	1,606	28,873	$17.98	4.6%
2026	56	909	13,599	$14.96	3.5%	150	420	12,252	$29.17	5.3%	206	1,329	25,851	$19.45	4.1%
Thereafter	89	2,376	39,027	$16.43	10.0%	108	262	6,949	$26.52	3.0%	197	2,638	45,976	$17.43	7.4%

Total	1,451	30,468	$390,840	$12.83	100.0%	4,714	8,747	$232,530	$26.58	100.0%	6,165	39,215	$623,370	$15.90	100.0%


Assumes all lease options are exercised

	Greater than 10K SF					Less than 10K SF					Total
Year	# of Leases	Expiring SF	ABR	Rent PSF	% of ABR > 10K	# of Leases	Expiring SF	ABR	Rent PSF	% of ABR < 10K	# of Leases	Expiring SF	ABR	Rent PSF	% of ABR Total

MTM	4	61	$904	$14.82	0.2%	121	141	$4,487	$31.82	1.9%	125	202	$5,391	$26.69	0.9%
2017	7	115	1,059	$9.21	0.3%	187	285	6,895	$24.19	3.0%	194	400	7,954	$19.89	1.3%
2018	30	363	4,025	$11.09	1.0%	469	789	22,338	$28.31	9.6%	499	1,152	26,363	$22.88	4.2%
2019	19	244	3,649	$14.95	0.9%	422	650	18,331	$28.20	7.9%	441	894	21,980	$24.59	3.5%
2020	25	272	4,831	$17.76	1.2%	376	522	16,145	$30.93	6.9%	401	794	20,976	$26.42	3.4%
2021	26	322	5,566	$17.29	1.4%	415	550	15,117	$27.49	6.5%	441	872	20,683	$23.72	3.3%
2022	37	447	7,341	$16.42	1.9%	350	517	15,329	$29.65	6.6%	387	964	22,670	$23.52	3.6%
2023	20	290	4,937	$17.02	1.3%	289	511	13,886	$27.17	6.0%	309	801	18,823	$23.50	3.0%
2024	23	385	5,496	$14.28	1.4%	267	428	12,763	$29.82	5.5%	290	813	18,259	$22.46	2.9%
2025	27	467	5,862	$12.55	1.5%	252	444	11,710	$26.37	5.0%	279	911	17,572	$19.29	2.8%
2026	38	470	7,621	$16.21	1.9%	253	431	12,028	$27.91	5.2%	291	901	19,649	$21.81	3.2%
Thereafter	1,195	27,032	339,549	$12.56	86.9%	1,313	3,479	83,501	$24.00	35.9%	2,508	30,511	423,050	$13.87	67.9%

Total	1,451	30,468	$390,840	$12.83	100.0%	4,714	8,747	$232,530	$26.58	100.0%	6,165	39,215	$623,370	$15.90	100.0%

DDR Corp.

Developments/Redevelopments

$ in thousands


	DDR Own %			Project Yield			Est. Total Net Cost		Cost Incurred To Date		Est. Remain Costs		Placed In Service		CIP (1)		Initial Occupancy		Est. Stabilized Quarter	Key Tenants

Consolidated Summary

Redevelopments - Major (2)					8	%		$133,557		$73,435		$60,122		$33,989		$39,446

Redevelopments -Minor (3)					11	%		108,076		36,138		71,938		18,412		17,726

Other (4)					N/A			N/A		27,301		0		0		27,301

Undeveloped land (5)					N/A			N/A		29,070		0		0		29,070

								$241,633		$165,944		$132,060		$52,401		$113,543
Redevelopments - Major

Lee Vista Promenade (Orlando, FL)		100	%					$39,241		$22,937		$16,304		$0		$22,937		1Q18	1Q19	Academy Sports, Bealls

Kenwood Square (Cincinnati, OH)		100	%					30,928		20,936		9,992		19,384		1,552		4Q16	2Q18	Dick’s Sporting Goods, T.J. Maxx, Five Below, Marshalls

West Bay Plaza (Cleveland, OH)		100	%					27,792		1,474		26,318		0		1,474		4Q18	3Q19	Fresh Thyme

Belgate Shopping Center (expansion) (Charlotte, NC)		100	%					23,778		19,117		4,661		13,181		5,936		3Q16	4Q17	Burlington, T.J. Maxx

Plaza del Sol (expansion) (San Juan, PR)		100	%					11,818		8,971		2,847		1,424		7,547		4Q17	4Q17	Dave & Busters

								$133,557		$73,435		$60,122		$33,989		$39,446

(1)	Balance is in addition to DDR’s pro rata share of joint venture CIP of $6 million.

(2)	Projects excluded from same store NOI.

(3)	Projects included in same store NOI.

(4)	Includes predevelopment and retenanting expenditures.

(5)	Balance is in addition to owned land adjacent to existing centers with an estimated value of $27 million and cost basis of the headquarters (non-income producing) of $41 million.

DDR Corp.

Transactions

$ and GLA in thousands


							Total
				DDR			Owned		At 100%				At DDR Share
	Property Name	City, State		Own %			GLA		Price		Debt		Price		Debt

Acquisitions

01/10/17	3030 North Broadway		Chicago, IL		100.0	%		132		$81,000		$0		$81,000		$0
02/28/17	Arrowhead Crossing outparcel		Phoenix, AZ		100.0	%		9		6,250		0		6,250		0

			Total Year to Date					141		$87,250		$0		$87,250		$0


Dispositions

01/24/17	The Junction		Jackson, MS		100.0	%		108		$7,000		$0		$7,000		$0
01/25/17	Morris Corners		Springfield, MO		100.0	%		56		1,500		0		1,500		0
02/03/17	Valley Park Centre		Russellville, AR		100.0	%		296		22,390		0		22,390		0
02/16/17	Chesterfield Crossing		Richmond, VA		100.0	%		89		14,350		0		14,350		0
02/17/17	Shops at Turner Hill/Turner Hill Marketplace		Lithonia, GA		100.0	%		157		8,750		0		8,750		0
02/22/17	Indian Springs Market Center		Cincinnati, OH		100.0	%		146		7,300		0		7,300		0
03/24/17	Southland Crossings		Youngstown, OH		100.0	%		537		41,700		23,403		41,700		23,403
03/24/17	Shelby Corners (BRE DDR Retail Holdings III)		Utica, MI		5.0	%		76		5,500		4,187		275		209
03/28/17	Barrington Town Center		Cleveland, OH		100.0	%		113		13,100		0		13,100		0
			Non-operating sales							2,105				2,105

			1Q Total					1,578		$123,695		$27,590		$118,470		$23,612

04/07/17	Warner Robins Place		Warner Robins, GA		100.0	%		119		$17,910		$0		$17,910		$0
04/14/17	Loan repayment (Northridge Plaza)		Olathe, KS		100.0	%				30,901				30,901
05/08/17	Telegraph Plaza (BRE DDR Retail Holdings III)		Monroe, MI		5.0	%		141		12,350		0		618		0
05/26/17	The Marketplace at Delta Township		Lansing, MI		100.0	%		174		19,000		0		19,000		0
05/31/17	Jefferson Plaza		Newport News, VA		100.0	%		47		7,887		0		7,887		0
06/12/17	New Tampa Commons		Tampa, FL		100.0	%		10		4,100		0		4,100		0
06/13/17	Northland Square		Cedar Rapids, IA		100.0	%		187		22,025		0		22,025		0
06/27/17	Mooresville Consumer Square		Mooresville, NC		100.0	%		472		48,230		0		48,230		0
06/29/17	Jefferson County Plaza		Arnold, MO		100.0	%		42		1,000		0		1,000		0
06/29/17	Walmart		Alliance, OH		100.0	%		200		16,710		0		16,710		0
06/30/17	Plaza del Oeste & Rexville Plaza		San German & Bayamon, PR		100.0	%		365		57,250		0		57,250		0
			Non-operating sales							100				100

			2Q Total					1,757		$237,463		$0		$225,731		$0

07/13/17	Cordova Commons (BRE DDR Retail Holdings III)		Pensacola, FL		5.0	%		164		$35,200		$26,096		$1,760		$1,305
07/13/17	Bellview Plaza (BRE DDR Retail Holdings III)		Pensacola, FL		5.0	%		83		11,555		4,145		578		207
07/13/17	Shops at Cedar Point (1)		Allentown, PA		0.3	%		131		19,150		12,000		57		36
07/13/17	Wedgewood Commons (1)		Stuart, FL		0.3	%		165		23,200		13,011		70		39
07/14/17	Del Monte Plaza (BRE DDR Retail Holdings III)		Reno, NV		5.0	%		83		24,100		9,616		1,205		481
	Preferred equity repayment		Various		100.0	%				2,600				2,600

			3Q Total					626		$115,805		$64,868		$6,270		$2,068

			Total Year to Date					3,961		$476,963		$92,458		$350,471		$25,680

(1)	Asset included in the collateral for BRE DDR Retail Holdings IV preferred interest. The Company does not have a material interest, but provides property asset management services.

DDR Corp.

Debt Summary

$ in thousands


	Consolidated							Unconsolidated					Total Pro Rata
Debt Composition	Total 100%			Total DDR Share			GAAP Interest Rate DDR Share	Total 100%	Total DDR Share			GAAP Interest Rate DDR Share	Total DDR Share			GAAP Interest Rate

Unsecured Credit Facilities		$0			$0		2.22%							$0		2.22%
Unsecured Term Loan		400,000			400,000		2.32%							400,000		2.32%
Unsecured Public Debt		3,076,797			3,076,797		4.75%							3,076,797		4.75%
Secured Term Loan		200,000			200,000		2.57%							200,000		2.57%
Fixed Rate Mortgage Loans		880,288			870,451		4.50%	$984,089		$146,840		4.27%		1,017,291		4.47%
Variable Rate Mortgage Loans		25,565			25,565		2.18%	1,714,243		212,441		3.12%		238,006		3.02%

Subtotal		$4,582,650			$4,572,813		4.38%	$2,698,332		$359,281		3.59%		$4,932,094		4.32%
Fair Market Value Adjustment		4,521			4,521			13,442		672				5,193
Unamortized Loan Costs, Net		(20,505	)		(20,402	)		(21,107)		(3,857	)			(24,259	)

Total		$4,566,666			$4,556,932		4.38%	$2,690,667		$356,096		3.59%		$4,913,028		4.32%

Consolidated Maturity Schedule (1)							Principal Payments	Secured Maturities	Unsecured Maturities			Total 100%	Total Pro Rata			Pro Rata GAAP Interest Rate

2017							$11,758	$126,465		$0		$138,223		$138,223		3.55%
2018 (2)							19,359	302,605		382,196		704,160		704,160		4.49%
2019							15,407	169,348		0		184,755		184,755		5.41%
2020							7,314	279,894		700,000		987,208		987,208		4.61%
2021							4,366	126,459		300,000		430,825		430,825		3.97%
2022							59	42,819		450,000		492,878		483,041		4.68%
2023							0	0		300,000		300,000		300,000		3.52%
2024							0	0		0		0		0		0.00%
2025							0	0		500,000		500,000		500,000		3.79%
2026 and beyond							0	0		850,000		850,000		850,000		4.43%
Unsecured debt discount										(5,399	)	(5,399)		(5,399	)

Total							$58,263	$1,047,590		$3,476,797		$4,582,650		$4,572,813		4.38%

Unconsolidated Maturity Schedule (1)							Principal Payments	Secured Maturities	Unsecured Maturities			Total 100%	Total Pro Rata			Pro Rata GAAP Interest Rate

2017							$2,968	$28,371		$0		$31,339		$5,684		4.75%
2018							4,787	106,548		0		111,335		10,081		4.38%
2019							4,824	623,088		0		627,912		31,187		2.91%
2020							5,535	403,673		0		409,208		56,251		2.89%
2021							5,057	255,172		0		260,229		60,521		4.58%
2022							3,468	1,038,028		0		1,041,496		157,966		3.43%
2023							2,930	93,177		0		96,107		4,803		4.25%
2024							1,352	83,688		0		85,040		13,038		4.31%
2025							903	0		0		903		0		0.00%
2026 and beyond							2,148	32,615		0		34,763		19,750		0.00%

Total							$33,972	$2,664,360		$0		$2,698,332		$359,281		3.59%


% of Total (3)							Consolidated	Wtd Avg GAAP Rate	Unconsolidated			Wtd Avg GAAP Rate	Total			Wtd Avg GAAP Rate

Fixed							86.8%	4.7%		40.9%		4.3%		83.5%		4.7%
Variable							13.2%	2.4%		59.1%		3.1%		16.5%		2.6%

Recourse to DDR							81.0%	4.4%		0.0%		0.0%		75.1%		4.4%
Non-recourse to DDR							19.0%	4.5%		100.0%		3.6%		24.9%		4.2%

(1)	Assumes borrower extension options are exercised.

(2)	Includes $300 million unsecured notes that were repaid in July 2017.

(3)	Calculations based on Pro Rata.

DDR Corp.

Consolidated Debt Detail


$ in thousands	Balance 100%		Balance DDR Share		Maturity Date (1)		GAAP Interest Rate (2)

Bank Debt (3)

Unsecured Revolver ($750m)		$0		$0		06/20		L+100

Unsecured Revolver ($50m)		0		0		06/20		L+100

Secured Term Loan ($200m)		200,000		200,000		04/18		L+135

Unsecured Term Loan ($400m)		400,000		400,000		04/20		L+110

		$600,000		$600,000

Public Debt

Unsecured Notes (4)		$299,773		$299,773		04/18		5.07%

Unsecured Notes		82,196		82,196		07/18		7.54%

Unsecured Notes		299,186		299,186		09/20		8.07%

Unsecured Notes		298,990		298,990		01/21		3.71%

Unsecured Notes		454,380		454,380		07/22		4.63%

Unsecured Notes		298,930		298,930		05/23		3.52%

Unsecured Notes		497,194		497,194		02/25		3.79%

Unsecured Notes		396,965		396,965		02/26		4.43%

Unsecured Notes		449,183		449,183		06/27		4.81%

		$3,076,797		$3,076,797

Mortgage Debt

Walmart Supercenter, NC		$336		$336		08/17		8.89%

Connecticut Commons, CT		45,129		45,129		10/17		3.54%

Riverdale Village, MN		24,758		24,758		10/17		3.54%

Riverdale Village Perimeter, MN		31,028		31,028		10/17		3.54%

Lake Brandon Village, FL		8,919		8,919		10/17		3.54%

Shoppers World Brookfield, WI		5,574		5,574		10/17		3.54%

Marketplace of Brown Deer, WI		3,978		3,978		10/17		3.54%

Brown Deer Center, WI		7,527		7,527		10/17		3.54%

Falcon Ridge Town Center, CA		13,897		13,897		01/18		3.67%

Walmart Supercenter, SC		804		804		01/18		8.01%

Fortuna Center, VA		12,120		12,120		02/18		3.74%

Johns Creek Town Center, GA		23,277		23,277		03/18		5.20%

The Promenade at Brentwood, MO		29,544		29,544		03/18		5.18%

DDR Headquarters, OH		25,565		25,565		03/18		2.18%

Lowe’s, TN		1,974		1,974		01/19		1.34%

Nassau Park Pavilion, NJ		54,344		54,344		02/19		3.56%

Bandera Pointe, TX		23,644		23,644		02/19		3.59%

Presidential Commons, GA		20,212		20,212		02/19		3.57%

Plaza Cayey, PR		20,115		20,115		06/19		7.82%

Plaza Fajardo, PR		24,186		24,186		06/19		7.74%

Plaza Isabela, PR		21,245		21,245		06/19		7.75%

Plaza Walmart, PR		11,306		11,306		06/19		7.81%

Mariner Square, FL		1,368		1,368		09/19		10.08%

DDR Corp.

Consolidated Debt Detail


$ in thousands	Balance 100%		Balance DDR Share		Maturity Date (1)		GAAP Interest Rate (2)

Plaza Rio Hondo, PR		120,149		120,149		01/20		4.03%

Easton Marketplace, OH		47,983		47,983		01/20		4.05%

The Fountains, FL		43,778		43,778		01/20		4.16%

Perimeter Pointe, GA		41,388		41,388		01/20		4.03%

Polaris Towne Center, OH		41,988		41,988		04/20		5.00%

Chapel Hills West, CO		11,275		11,275		06/21		3.70%

West Valley Marketplace, PA		6,734		6,734		07/21		6.17%

Plaza Escorial, PR		69,300		69,300		07/21		3.72%

Wrangleboro Consumer Sq, NJ		56,855		56,855		10/21		5.37%

Chapel Hills East, CO		7,635		7,635		12/21		4.74%

Paradise Village Gateway, AZ		29,810		19,973		01/22		4.89%

Macedonia Commons, OH		18,108		18,108		02/22		5.83%

		$905,853		$896,016

Consolidated Debt Subtotal		$4,582,650		$4,572,813

FMV Adjustment – Assumed Debt		4,521		4,521

Unamortized Loan Costs, Net		(20,505)		(20,402)

Total Consolidated Debt		$4,566,666		$4,556,932

Rate Type

Fixed		$3,980,362		$3,970,525		5.0 years		4.68%

Variable		602,288		602,288		2.0 years		2.40%

		$4,582,650		$4,572,813		4.7 years		4.38%
Perpetual Preferred Stock

Class J		$200,000		$200,000		August 2017 (5)		6.50%

Class K		150,000		150,000		April 2018 (5)		6.25%

Class A		175,000		175,000		June 2022 (5)		6.38%

Interest Rate Swaps	Notional Amount		Rate Hedged		Fixed Rate		Termination Date

Variable Rate Debt		$76,098		1 mo. LIBOR		2.81%		09/17


(1) Assumes borrower extension options are exercised.		(4) Repaid in July 2017.

(2) L = LIBOR		(5) Earliest redemption date.

(3) Excludes loan fees and unamortized loan costs.

DDR Corp.

Unconsolidated Debt Detail


$ in thousands	Balance 100%		Balance DDR Share		Maturity Date (1)		GAAP Interest Rate

BRE DDR Retail Holdings III
Camp Creek, GA		$42,000		$2,100		12/18		3.65	%

May 2019 Loan Pool (2 assets) (2)		20,093		1,005		05/19		3.28	%

November 2019 Loan Pool (28 assets) (3)		603,650		30,183		11/19		2.90	%

Whittwood Town Center, CA		43,000		2,150		12/20		4.05	%

January 2022 Loan Pool (3 assets)		22,965		1,148		01/22		3.76	%

Kyle Marketplace, TX		24,750		1,238		03/22		3.70	%

March 2022 Loan Pool (3 assets)		23,400		1,170		03/22		4.14	%

Eastland Center, CA		90,000		4,500		07/22		3.97	%

Greenway Commons, TX		33,000		1,650		07/22		3.73	%

July 2022 Loan Pool (4 assets) (4)		17,035		852		07/22		3.74	%

White Oak Village, VA		34,250		1,713		09/22		1.93	%

Midtowne Park, SC		15,736		787		01/23		4.34	%

Kingsbury Center, IL		14,500		725		06/23		4.35	%

Valley Bend, AL		43,500		2,175		06/23		4.22	%

		$1,027,879		$51,396

BRE DDR Retail Holdings IV

Ashbridge Square, PA		$34,177		$1,709		03/18		4.22	%

The Hub, NY		28,500		1,425		01/22		3.84	%

Fountains of Miramar, FL		24,770		1,239		01/22		3.73	%

Southmont Plaza, PA		34,000		1,700		01/22		3.84	%

Millenia Crossing, FL		22,326		1,116		01/23		4.20	%

Concourse Village, FL		13,948		697		02/24		4.32	%

		$157,721		$7,886

DDRM Properties

July 2022 Loan Pool (13 Assets)		$218,730		$43,746		07/22		3.77	%

July 2022 Loan Pool (21 Assets)		274,760		54,952		07/22		3.13	%

July 2022 Loan Pool (18 Assets)		213,170		42,634		07/22		3.39	%

		$706,660		$141,332

DDRTC Core Retail Fund

July 2020 Loan Pool (10 assets) (5)		$195,373		$29,306		07/20		2.77	%

July 2020 Loan Pool (6 assets) (5)		165,300		24,795		07/20		2.94	%

November 2021 Loan Pool (7 assets)		174,719		26,208		11/21		3.37	%

Birkdale Village, NC		82,275		12,341		04/24		4.31	%

		$617,667		$92,650

DDR Corp.

Unconsolidated Debt Detail


$ in thousands	Balance 100%			Balance DDR Share		Maturity Date (1)			GAAP Interest Rate


DDR-SAU Retail Fund

September 2017 Loan Pool (7 assets)		$28,420			$5,683		09/17			4.75%

April 2018 Loan Pool (5 assets)		31,359			6,271		04/18			4.66%

		$59,779			$11,954

Other Joint Ventures

Sun Center Limited, OH		$21,160			$16,812		05/21			6.14%

RVIP IIIB, Deer Park, IL		67,966			17,501		09/21			4.91%

Lennox Town Center Limited, OH		39,500			19,750		04/28			3.49%

		$128,626			$54,063

Unconsolidated Debt Subtotal		$2,698,332			$359,281

FMV Adjustment – Assumed Debt		13,442			672

Unamortized Loan Costs, Net		(21,107	)		(3,857)

Total Unconsolidated Debt		$2,690,667			$356,096

Rate Type

Fixed		$984,089			$146,840		5.2 years			4.27%

Variable		1,714,243			212,441		4.0 years			3.12%

		$2,698,332			$359,281		4.5 years			3.59%

Interest Rate Swaps	Notional Amount			Rate Hedged		Fixed Rate			Termination Date

Mortgage Loan Camp Creek		$42,000			1 mo. LIBOR		1.87	%		12/18

(1) Assumes borrower extension options are exercised.

(2) Repaid $12.6 million (at 100%) in July 2017.

(3) Repaid $28.9 million (at 100%) in July 2017.

(4) Repaid $4.1 million (at 100%) in July 2017.

(5) Loans have interest rate floors of 1 month LIBOR at 0.25%.

DDR Corp.

Debt/Adjusted EBITDA


$ in thousands
	2Q17		2Q16

Consolidated
Net income to DDR		$29,611		$41,058
Interest expense		48,908		54,012
Income tax expense		473		245
Depreciation and amortization		90,276		97,698
Adjustments for non-controlling interests		(174)		(174)

EBITDA – current quarter		169,094		192,839
Separation charges		5,081		0
Impairments		28,096		0
Equity in net loss (income) of JVs		717		(1,117)
Gain on disposition of real estate, net		(44,599)		(13,721)
Other expense (income), net		948		(7)
Adjustments for non-controlling interests		0		(6)
JV FFO (at DDR Share)		6,816		6,446

Adjusted EBITDA – current quarter (1)		166,153		184,434
Adjusted EBITDA – annualized		664,612		737,736

Consolidated debt		4,566,666		4,938,807
Partner share of consolidated debt		(9,837)		(9,900)
Loan costs, net		20,505		21,148
Face value adjustments		(4,521)		(9,722)
Cash and restricted cash		(474,986)		(26,785)

Net effective debt		$4,097,827		$4,913,548

Debt/Adjusted EBITDA – Consolidated (2)		6.2x		6.7x

Pro rata including JVs
Adjusted EBITDA – current quarter		170,843		189,874
Adjusted EBITDA – annualized		683,372		759,496

Consolidated net debt		4,097,827		4,913,548
JV debt (at DDR Share)		359,281		425,284
Cash and restricted cash		(17,991)		(9,683)

Net effective debt		$4,439,117		$5,329,149

Debt/Adjusted EBITDA – Pro Rata (2)		6.5x		7.0x

(1) See definition in the Non-GAAP Measures section.

(2) Excludes Perpetual Preferred Stock.

DDR Corp.

Unconsolidated Joint Ventures

$ and GLA in thousands


	Partner	DDR Own %		Operating Properties		Owned GLA		2Q17 NOI at 100% (1)			Gross Book Value		Face Value Debt (2)		DDR Preferred Equity (At 100%)

BRE DDR Retail Holdings III	Blackstone Real Estate Partners		5%		48		9,521		$30,922			$1,473,403		$1,027,879		$249,649	(3)

BRE DDR Retail Holdings IV	Blackstone Real Estate Partners		5%		6		1,259		4,164			220,199		157,721		68,532	(4)

DDRM Properties	Madison International Realty		20%		52		7,012		17,337			1,208,481		706,660		0
DDRTC Core Retail Fund	TIAA-CREF		15%		25		8,206		23,828			1,502,930		617,667		0

DDR–SAU	State of Utah		20%		12		979		2,373			135,365		59,779		0
Retail Fund

DDR Domestic	Various		20%		3		620		1,250			98,799		0		0
Retail Fund I

Other	Various		Various		3		1,046		4,270			195,488		128,626		0

Total					149 (5)		28,643		$84,144			$4,834,665		$2,698,332		$318,181
Property management fees									4,598	(1)
Assets sold in 2017									95	(1)

Net operating income									$88,837	(6)

(1) Property management fees charged by DDR to the joint venture are included as an expense in NOI, although presented in the combined income statement on the next page in the line item Other Expense. The NOI for BRE DDR III is adjusted to reflect the impact of assets sold.

(2) Fair market value of debt adjustment and net unamortized loan costs ($7.7 million or $3.2 million at DDR’s Share) are excluded from above.

(3) Amount is net of $70.0 million valuation allowance. Face value of $319.6 million including accrued interest of $5.1 million. The 8.5% dividend rate has two components, a cash dividend rate of 6.5% and an accrued payment in kind (“PIK”) of 2.0%. The Company no longer recognizes the accrued PIK as income due to the valuation allowance. Repayment from net asset sale proceeds is first subject to a remaining minimum sales threshold of $34.3 million payable to common members; subsequent net asset sale proceeds are allocated 49.0% to the preferred member unless certain financial covenants have been triggered, in which event 100% to the preferred member.

(4) Amount is net of $6.0 million valuation allowance. Face value of $74.5 million including accrued interest of $1.2 million. The 8.5% dividend rate has two components, a cash dividend rate of 6.5% and an accrued PIK of 2.0%. The Company no longer recognizes the accrued PIK as income due to the valuation allowance. Repayment from net asset sale proceeds is first subject to a minimum sales threshold of $26.0 million of which $6.0 million is allocated to the preferred member; subsequent net asset sale proceeds are expected to be available to repay the preferred member. Included in the collateral for the preferred equity interest is 95% of the value of the six joint venture properties and 100% of the value of six properties in which the Company does not have a material interest, but to which DDR provides property asset management services.

(5) Excludes one consolidated joint venture asset in which the Company has an effective 67% interest.

(6) Amount agrees to the combined income statement of the joint ventures which includes a reconciliation of the Non-GAAP measure to the applicable GAAP measure. See calculation definition in the Non-GAAP Measures section.

Combined DDR JV Pro Rata Adjustments (7)



Income Statement Pro Rata Adjustments 2Q17		Balance Sheet Pro Rata Adjustments 2Q17
Revenues:		Assets:
Minimum rents	$13,565	Land	$169,030
Percentage rent	52	Buildings	453,042
Recoveries	4,328	Improvements	33,831
Other property revenue	207		655,903
	18,152	Depreciation	(164,569)
Expenses:			491,334
Operating and maintenance	2,837	Construction in progress and land	6,076
Real estate taxes	2,670	Real estate, net	497,410
	5,507	Investment in JVs	1,239
Net Operating Income	12,645	Cash and restricted cash	17,953
Other Income (expense):		Receivables, net	7,167
Fee Income	(951)	Other assets, net	17,687
Interest income	(412)	Total Assets	$541,456
Impairment Charges	(1,392)	Liabilities and Equity:
Interest expense	(4,606)	Mortgage debt	$356,096
Depreciation and amortization	(5,747)	Notes payable to DDR	501
Other income (expense), net	(660)	Other liabilities	17,546
Loss before earnings from JVs	(1,123)	Total Liabilities	374,143
Equity in net loss of JVs	717	JVs share of equity	21,078
Basis differences of JVs	446	Distributions in excess of net income	146,235
Loss on disposition of real estate	(40)	Total Equity	167,313
Net income	$0	Total Liabilities and Equity	$541,456



FFO Reconciliation 2Q17
Loss before earnings from JVs			($1,123)
Depreciation and amortization			5,747
Impairment of depreciable real estate			1,392
Basis differences of JVs			196
FFO at DDR’s Ownership Interests			$6,212

(7) Information provided for DDR’s share of JV investments and can be combined with DDR’s consolidated financial statements for the same period.

DDR Corp.

Unconsolidated Joint Ventures at 100%


$ in thousands	Income Statement

	2Q17		2Q16		6M17		6M16
Revenues:
Minimum rents		$94,609		$96,960		$190,052		$193,535
Percentage rent		567		573		959		904
Recoveries		29,930		30,312		59,745		60,281
Other property revenues		1,422		1,045		2,820		2,080

		126,528		128,890		253,576		256,800
Expenses:
Operating and maintenance		18,805		18,644		36,612		37,643
Real estate taxes		18,886		18,329		37,747		36,986

		37,691		36,973		74,359		74,629

Net operating income		88,837		91,917		179,217		182,171

Other income (expense):
Interest expense		(29,004)		(33,319)		(59,1