BEACHWOOD, Ohio, Oct. 27,
2014 /PRNewswire/ -- DDR Corp. (NYSE: DDR) today announced
operating results for the third quarter ended September 30, 2014.
(Logo: http://photos.prnewswire.com/prnh/20131217/DDRLOGO )
Significant Third Quarter Activity
- Generated Operating FFO of $0.29
per diluted share, a 3.6% increase from the third quarter of
2013
- Executed 342 new leases and renewals for 2.7 million square
feet
- Increased the U.S. portfolio leased rate by 30 basis points to
95.6% from 95.3% at June 30, 2014 and
by 80 basis points from 94.8% at September
30, 2013
- Generated positive new leasing spreads of 23.6% on a pro rata
basis, and positive renewal leasing spreads of 8.2% on a pro rata
basis
- Generated same store net operating income growth of 3.1% at
100% ownership and on a pro rata basis compared to the prior
year
- Acquired sole ownership of eight prime power centers, including
seven from an existing joint venture with Blackstone, for
$409 million at DDR's share
- Sold $297 million of assets;
DDR's pro rata gross proceeds were $290
million
- In October, closed on a new unconsolidated joint venture with
Blackstone that acquired a portfolio of 71 shopping centers with a
total cost of $1.93 billion
"The continued execution of our strategic plan has resulted in
another consistently strong quarter," commented Daniel B. Hurwitz, DDR's chief executive
officer. "Our portfolio and operating platform continue to
perform at a high level and the outlook for our business remains
robust."
Financial Highlights
- Third quarter operating funds from operations attributable to
common shareholders ("Operating FFO") increased $16.2 million to $106.2
million, or $0.29 per diluted
share, compared to $90.0 million, or
$0.28 per diluted share, for the
prior-year comparable period.
- Third quarter net income attributable to common shareholders
was $63.0 million, or $0.17 per diluted share, which compares to net
loss of $7.0 million, or $0.02 per diluted share, for the prior-year
comparable period.
Significant Third Quarter Operating Activity
- Executed 148 new leases totaling 0.7 million square feet at
positive spreads of 23.6% on a pro rata basis
- Executed 194 renewal leases totaling 2.0 million square feet at
positive spreads of 8.2% on a pro rata basis
- Increased the annualized base rent per occupied square foot to
$13.65 at September 30, 2014 as compared to $13.19 at September 30,
2013
Significant Third Quarter Transactional Activity
- Acquired sole ownership of a portfolio of seven prime power
centers totaling 2.3 million square feet that were previously owned
in a joint venture with Blackstone for $377
million at DDR's share. The investment was funded through a
combination of preferred equity repayment, the assumption of
existing mortgage debt and cash.
- Acquired one consolidated prime power center totaling 0.2
million square feet for $31.5
million.
- Sold seven consolidated operating shopping centers totaling 2.0
million square feet and two land parcels generating gross proceeds
of $263 million. A net gain of
$59.4 million was recorded related to
these sales. One of the land parcels sold was the entire remaining
acreage of land held for development in Russia. The Company no longer has any real
estate investments in Russia.
- In October, acquired (through a joint venture with partner,
Blackstone) a portfolio of 71 shopping centers from American Realty
Capital Properties, Inc. The joint venture assumed approximately
$437 million of senior non-recourse
debt and has also originated an additional $800 million non-recourse loan facility. The
Company's investment includes $20
million of common equity and $300
million in preferred equity with a fixed dividend rate of
8.5% and the Company will provide customary leasing and management
services. An affiliate of Blackstone owns 95% of the common equity
of the joint venture and an affiliate of DDR owns the remaining 5%.
DDR has the right of first offer to acquire ten of the assets under
specified conditions consistent with past transactions with
Blackstone.
CEO Succession
- As previously announced, Daniel B.
Hurwitz, chief executive officer, and the Board of Directors
agreed not to renew Mr. Hurwitz's employment agreement, which
expires December 31, 2015. The
Board of Directors has retained an executive search firm to assist
in the process of securing Mr. Hurwitz's successor.
2014 Guidance
- The Company is revising its 2014 guidance for Operating FFO to
a range between $1.15 to $1.17 per
diluted share from $1.14 to $1.18 per
diluted share.
Non-GAAP Disclosures
FFO is a supplemental non-GAAP
financial measurement used as a standard in the real estate
industry and a widely accepted measure of real estate investment
trust ("REIT") performance. Management believes that FFO and
Operating FFO provide additional indicators of the financial
performance of a REIT. The Company also believes that FFO and
Operating FFO more appropriately measure the core operations of the
Company and provide benchmarks to its peer group. Neither FFO
nor Operating FFO represents cash generated from operating
activities in accordance with generally accepted accounting
principles ("GAAP"), is necessarily indicative of cash available to
fund cash needs and should be considered as an alternative to net
income computed in accordance with GAAP as an indicator of the
Company's operating performance or as an alternative to cash flow
as a measure of liquidity.
FFO is defined and calculated by the Company as net income,
adjusted to exclude: (i) preferred share dividends, (ii)
gains and losses from disposition of depreciable real estate
property, which are presented net of taxes, (iii) impairment
charges on depreciable real estate property and related
investments, (iv) extraordinary items and (v) certain non-cash
items. These non-cash items principally include real property
depreciation and amortization of intangibles, equity income from
joint ventures and equity income from non-controlling interests and
the Company's proportionate share of FFO from its unconsolidated
joint ventures and non-controlling interests, determined on a
consistent basis. The Company calculates Operating FFO by
excluding the non-operating charges and gains described below.
The Company computes FFO in accordance with the NAREIT
definition. Other real estate companies may calculate FFO and
Operating FFO in a different manner. Operating FFO is useful
to investors as the Company removes these charges and gains to
analyze the results of its operations and assess performance of the
core operating real estate portfolio. A reconciliation of net
income (loss) to FFO and Operating FFO is presented herein.
Safe Harbor
DDR Corp. considers portions of the
information in this press release to be forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, both as
amended, with respect to the Company's expectation for future
periods. Although the Company believes that the expectations
reflected in such forward-looking statements are based upon
reasonable assumptions, it can give no assurance that its
expectations will be achieved. For this purpose, any
statements contained herein that are not historical fact may be
deemed to be forward-looking statements. There are a number
of important factors that could cause our results to differ
materially from those indicated by such forward-looking statements,
including, among other factors, local conditions such as oversupply
of space or a reduction in demand for real estate in the area;
competition from other available space; dependence on rental income
from real property; the loss of, significant downsizing of or
bankruptcy of a major tenant; constructing properties or expansions
that produce a desired yield on investment; our ability to buy or
sell assets on commercially reasonable terms; our ability to
complete acquisitions or dispositions of assets under contract; our
ability to secure equity or debt financing on commercially
acceptable terms or at all; our ability to enter into definitive
agreements with regard to our financing and joint venture
arrangements or our failure to satisfy conditions to the completion
of these arrangements; the success of our capital recycling
strategy; and the finalization of the financial statements for the
three-month period ended September
30, 2014. 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,
2013, as amended. The Company undertakes no obligation
to publicly revise these forward-looking statements to reflect
events or circumstances that arise after the date hereof.
About DDR Corp.
DDR is an owner and manager of 456
value-oriented shopping centers representing 125 million square
feet in 42 states and Puerto Rico.
The Company's assets are concentrated in high
barrier-to-entry markets with stable populations and high growth
potential and its portfolio is actively managed to create long-term
shareholder value. DDR is a self-administered and self-managed REIT
operating as a fully integrated real estate company, and is
publicly traded on the New York Stock Exchange under the ticker
symbol DDR. Additional information about the Company is
available at www.ddr.com, as well as on Twitter, LinkedIn and
Facebook.
Conference Call and Supplemental Information
A copy
of the Company's Supplemental package is available upon request to
Brooke Vanek at the Company's
corporate office, 3300 Enterprise Parkway, Beachwood, Ohio 44122 or at www.ddr.com.
The Company will hold its quarterly conference call tomorrow,
October 28, 2014, at 10:00 a.m. Eastern Time. To participate,
please dial 866.318.8614 (domestic) or 617.399.5133 (international)
at least ten minutes prior to the scheduled start of the call.
When prompted, provide the passcode: 73809437. The
conference call webcast will be recorded and available for replay
beginning at 12:00 p.m. ET on
October 28, 2014 through the
Investors portion of DDR's website,
http://ir.ddr.com/events.cfm.
DDR
Corp.
|
Income
Statement: Consolidated Interests
|
|
|
|
|
|
$ in thousands,
except per share
|
|
|
|
|
|
|
3Q14
|
|
3Q13
|
|
9M14
|
|
9M13
|
Revenues:
|
|
|
|
|
|
|
|
|
Minimum rents
(1)
|
|
$175,771
|
|
$140,389
|
|
$518,838
|
|
$406,274
|
Percentage
rent
|
|
519
|
|
854
|
|
2,810
|
|
3,116
|
Recoveries
|
|
59,261
|
|
45,963
|
|
175,353
|
|
133,234
|
Ancillary
income
|
|
6,476
|
|
7,795
|
|
18,829
|
|
20,698
|
Other revenues
(2)
|
|
922
|
|
1,116
|
|
5,403
|
|
6,626
|
|
|
242,949
|
|
196,117
|
|
721,233
|
|
569,948
|
Expenses
(3):
|
|
|
|
|
|
|
|
|
Operating and
maintenance
|
|
37,311
|
|
33,107
|
|
109,448
|
|
96,257
|
Real estate
taxes
|
|
35,681
|
|
26,694
|
|
106,132
|
|
77,434
|
|
|
72,992
|
|
59,801
|
|
215,580
|
|
173,691
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
|
169,957
|
|
136,316
|
|
505,653
|
|
396,257
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Fee income
|
|
7,594
|
|
10,283
|
|
23,696
|
|
31,195
|
Interest
income
|
|
2,652
|
|
6,692
|
|
8,937
|
|
20,365
|
Interest expense
(4)
|
|
(58,115)
|
|
(54,740)
|
|
(179,908)
|
|
(157,346)
|
Depreciation and
amortization
|
|
(99,480)
|
|
(70,015)
|
|
(302,901)
|
|
(198,609)
|
General and
administrative (5)
|
|
(19,540)
|
|
(19,246)
|
|
(58,878)
|
|
(59,123)
|
Other income
(expense), net (6)
|
|
(2,758)
|
|
(2,282)
|
|
(11,881)
|
|
(3,287)
|
Impairment charges
(7)
|
|
(1,813)
|
|
(9,260)
|
|
(18,898)
|
|
(22,902)
|
(Loss) income before
earnings from equity method
investments and other items
|
|
(1,503)
|
|
(2,252)
|
|
(34,180)
|
|
6,550
|
|
|
|
|
|
|
|
|
|
Equity in net income
of joint ventures
|
|
3,620
|
|
3,780
|
|
10,241
|
|
5,543
|
Impairment of joint
venture investments
|
|
0
|
|
0
|
|
(9,100)
|
|
0
|
Gain on sale and
change in control of interests, net
|
|
3,984
|
|
0
|
|
87,814
|
|
1,066
|
Income (loss) from
discontinued operations (8)
|
|
57,906
|
|
(3,258)
|
|
68,697
|
|
(27,872)
|
Tax benefit
(expense)
|
|
212
|
|
(404)
|
|
(1,120)
|
|
(2,463)
|
Gain on disposition
of real estate, net of tax
|
|
2,262
|
|
1,929
|
|
2,645
|
|
347
|
Net income
(loss)
|
|
66,481
|
|
(205)
|
|
124,997
|
|
(16,829)
|
Income (loss)
attributable to non-controlling interests
|
|
2,125
|
|
(170)
|
|
2,985
|
|
(556)
|
Net income (loss)
attributable to DDR
|
|
68,606
|
|
(375)
|
|
127,982
|
|
(17,385)
|
Write-off of
preferred share original issuance costs
|
|
0
|
|
0
|
|
(1,943)
|
|
(5,246)
|
Preferred
dividends
|
|
(5,594)
|
|
(6,608)
|
|
(18,460)
|
|
(21,113)
|
Net income (loss)
attributable to Common Shareholders
|
|
63,012
|
|
(6,983)
|
|
107,579
|
|
(43,744)
|
FFO:
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to common shareholders
|
|
63,012
|
|
(6,983)
|
|
107,579
|
|
(43,744)
|
Depreciation and
amortization of real estate investments
|
|
99,542
|
|
72,421
|
|
304,286
|
|
207,560
|
Equity in net income
of joint ventures
|
|
(3,620)
|
|
(3,780)
|
|
(10,241)
|
|
(5,543)
|
Joint ventures'
FFO
|
|
8,387
|
|
12,731
|
|
24,507
|
|
37,103
|
Non-controlling
interests (OP units)
|
|
223
|
|
54
|
|
509
|
|
162
|
Impairment of
depreciable real estate
|
|
365
|
|
24,136
|
|
11,856
|
|
64,237
|
Gain on disposition
of depreciable real estate, net
|
|
(57,105)
|
|
(8,701)
|
|
(159,753)
|
|
(7,417)
|
FFO attributable
to Common Shareholders
|
|
110,804
|
|
89,878
|
|
278,743
|
|
252,358
|
Non-operating items,
net (9)
|
|
(4,589)
|
|
147
|
|
29,445
|
|
9,814
|
Operating
FFO
|
|
$106,215
|
|
$90,025
|
|
$308,188
|
|
$262,172
|
FFO per share –
Diluted (10)
|
|
$0.31
|
|
$0.28
|
|
$0.77
|
|
$0.79
|
Operating FFO per
share – Diluted (10)
|
|
$0.29
|
|
$0.28
|
|
$0.85
|
|
$0.82
|
DDR
Corp.
|
|
Balance Sheet:
Consolidated Interests
|
|
|
|
$ in
thousands
|
At Quarter
End
|
|
3Q14
|
|
4Q13
|
Assets:
|
|
|
|
Land
|
$2,251,513
|
|
$2,209,970
|
Buildings
|
7,167,118
|
|
6,949,440
|
Fixtures and tenant
improvements
|
628,407
|
|
599,221
|
|
10,047,038
|
|
9,758,631
|
Less: Accumulated
depreciation
|
(1,893,315)
|
|
(1,823,199)
|
|
8,153,723
|
|
7,935,432
|
Land held for
development and construction in progress
|
449,822
|
|
452,980
|
Real estate held for
sale, net
|
0
|
|
12,670
|
Real estate,
net
|
8,603,545
|
|
8,401,082
|
|
|
|
|
Investments in and
advances to joint ventures
|
161,737
|
|
448,008
|
Cash
|
134,320
|
|
86,664
|
Restricted
cash
|
8,250
|
|
33,476
|
Notes receivable,
net
|
57,645
|
|
78,338
|
Receivables,
including straight-line rent, net
|
128,414
|
|
129,513
|
Other assets, net
(11)
|
531,780
|
|
515,992
|
Total
Assets
|
9,625,691
|
|
9,693,073
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
Revolving credit
facilities
|
23,457
|
|
29,133
|
Unsecured
debt
|
2,762,893
|
|
2,754,120
|
Unsecured term
loan
|
350,000
|
|
350,000
|
Mortgage and other
secured debt
|
2,099,694
|
|
2,161,421
|
|
5,236,044
|
|
5,294,674
|
Dividends
payable
|
61,323
|
|
55,107
|
Other liabilities
(12)
|
459,787
|
|
415,413
|
Total
Liabilities
|
5,757,154
|
|
5,765,194
|
|
|
|
|
Preferred
shares
|
350,000
|
|
405,000
|
Common
shares
|
36,034
|
|
35,938
|
Paid-in-capital
|
5,434,217
|
|
5,417,363
|
Accumulated
distributions in excess of net income
|
(1,975,043)
|
|
(1,915,638)
|
Deferred compensation
obligation
|
17,057
|
|
16,702
|
Accumulated other
comprehensive income
|
(8,445)
|
|
(36,493)
|
Less: Common shares
in treasury at cost
|
(18,475)
|
|
(18,211)
|
Non-controlling
interests
|
33,192
|
|
23,218
|
Total
Equity
|
3,868,537
|
|
3,927,879
|
|
|
|
|
Total Liabilities
and Equity
|
$9,625,691
|
|
$9,693,073
|
DDR
Corp.
|
Income
Statement: Unconsolidated Interests at 100%
|
|
|
|
|
$ in
thousands
|
|
|
|
|
3Q14
|
|
3Q13
|
|
9M14
|
|
9M13
|
Revenues:
|
|
|
|
|
|
|
|
Minimum
rents
|
$87,526
|
|
$127,576
|
|
$286,974
|
|
$383,650
|
Percentage
rent
|
315
|
|
393
|
|
1,090
|
|
1,451
|
Recoveries
|
24,056
|
|
31,288
|
|
72,668
|
|
93,817
|
Other
revenues
|
8,076
|
|
16,744
|
|
31,791
|
|
48,881
|
|
119,973
|
|
176,001
|
|
392,523
|
|
527,799
|
Expenses:
|
|
|
|
|
|
|
|
Operating and
maintenance
|
25,535
|
|
40,750
|
|
94,260
|
|
120,884
|
Real estate
taxes
|
14,489
|
|
20,349
|
|
43,527
|
|
61,246
|
|
40,024
|
|
61,099
|
|
137,787
|
|
182,130
|
|
|
|
|
|
|
|
|
Net operating
income
|
79,949
|
|
114,902
|
|
254,736
|
|
345,669
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
expense
|
(41,764)
|
|
(56,453)
|
|
(141,776)
|
|
(169,935)
|
Depreciation and
amortization
|
(35,579)
|
|
(56,502)
|
|
(119,641)
|
|
(173,333)
|
Impairment
charges
|
(11,093)
|
|
(13,390)
|
|
(11,693)
|
|
(51,713)
|
Tax
expense
|
0
|
|
(6,446)
|
|
(6,565)
|
|
(20,299)
|
Other expense,
net
|
(188)
|
|
(1,916)
|
|
(3,024)
|
|
(2,229)
|
|
(88,624)
|
|
(134,707)
|
|
(282,699)
|
|
(417,509)
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
(8,675)
|
|
(19,805)
|
|
(27,963)
|
|
(71,840)
|
Loss from
discontinued operations
|
(55)
|
|
(11,196)
|
|
(844)
|
|
(22,604)
|
Gain (loss) on
disposition of discontinued operations, net
|
4,713
|
|
(21,228)
|
|
28,224
|
|
(27,133)
|
Gain on disposition
of real estate, net
|
3,833
|
|
151
|
|
3,833
|
|
794
|
Net (loss)
income
|
(184)
|
|
(52,078)
|
|
3,250
|
|
(120,783)
|
Loss attributable to
non-controlling interests
|
0
|
|
(5,800)
|
|
(2,023)
|
|
(19,715)
|
Net (loss) income
attributable to unconsolidated joint
ventures
|
(184)
|
|
(57,878)
|
|
1,227
|
|
(140,498)
|
Depreciation and
amortization of real estate
investments
|
35,574
|
|
58,544
|
|
118,020
|
|
180,909
|
Impairment of
depreciable real estate
|
11,093
|
|
21,874
|
|
11,693
|
|
66,437
|
(Gain) loss on
disposition of depreciable real estate, net
|
(8,546)
|
|
21,228
|
|
(31,965)
|
|
26,655
|
FFO
|
37,937
|
|
43,768
|
|
98,975
|
|
133,503
|
FFO at DDR's
ownership interests
|
8,387
|
|
12,731
|
|
24,507
|
|
37,103
|
Operating FFO at
DDR's ownership interests
|
8,387
|
|
12,331
|
|
24,643
|
|
36,413
|
|
|
|
|
|
|
|
|
Net income at DDR's
ownership interests
|
3,316
|
|
2,800
|
|
9,483
|
|
4,328
|
Basis
differences
|
304
|
|
980
|
|
758
|
|
1,215
|
Equity in net income
of joint ventures
|
$3,620
|
|
$3,780
|
|
$10,241
|
|
$5,543
|
DDR
Corp.
|
Balance Sheet:
Unconsolidated Interests at 100%
|
|
|
$ in
thousands
|
At Quarter
End
|
|
3Q14
|
|
4Q13
|
Assets:
|
|
|
|
Land
|
$1,080,086
|
|
$1,275,232
|
Buildings
|
2,917,565
|
|
3,940,806
|
Fixtures and tenant
improvements
|
168,575
|
|
266,851
|
|
4,166,226
|
|
5,482,889
|
Less: Accumulated
depreciation
|
(814,365)
|
|
(839,867)
|
|
3,351,861
|
|
4,643,022
|
Land held for
development and construction in progress
|
56,713
|
|
116,088
|
Real estate,
net
|
3,408,574
|
|
4,759,110
|
Cash and restricted
cash
|
95,768
|
|
282,866
|
Receivables,
including straight-line rent, net
|
68,951
|
|
101,003
|
Other assets,
net
|
97,959
|
|
196,615
|
Total
Assets
|
3,671,252
|
|
5,339,594
|
|
|
|
|
Liabilities and
Equity:
|
|
|
|
Mortgage
debt
|
2,572,521
|
|
3,282,643
|
Notes and accrued
interest payable to DDR
|
142,502
|
|
127,679
|
Other
liabilities
|
142,521
|
|
245,368
|
Total
Liabilities
|
2,857,544
|
|
3,655,690
|
|
|
|
|
Redeemable preferred
equity
|
38,635
|
|
71,771
|
Accumulated
equity
|
775,073
|
|
1,612,133
|
Total Liabilities
and Equity
|
$3,671,252
|
|
$5,339,594
|
DDR
Corp.
|
Financial
Statements: Footnotes
|
|
|
|
|
$ in millions, except
per share
|
|
|
|
Includes discontinued
operations
|
3Q14
|
|
3Q13
|
|
9M14
|
|
9M13
|
|
|
|
|
|
|
|
|
|
(1)
|
Minimum
rents:
|
|
|
|
|
|
|
|
|
Straight-line rent,
net
|
$1.5
|
|
$1.2
|
|
$4.0
|
|
$4.3
|
|
Below-market rent,
net
|
0.3
|
|
0.3
|
|
0.8
|
|
0.2
|
|
Ground lease
revenue
|
8.5
|
|
6.5
|
|
24.5
|
|
18.1
|
|
|
|
|
|
|
|
|
|
(2)
|
Other
revenues:
|
|
|
|
|
|
|
|
|
Lease termination
fees
|
0.7
|
|
1.0
|
|
4.1
|
|
6.2
|
|
Other
miscellaneous
|
0.2
|
|
0.1
|
|
1.3
|
|
0.4
|
|
|
|
|
|
|
|
|
|
(3)
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Recoverable expenses
(excludes discontinued operations)
|
(65.5)
|
|
(51.3)
|
|
(193.5)
|
|
(148.6)
|
|
Non-recoverable
expenses (excludes discontinued operations)
|
(7.5)
|
|
(8.5)
|
|
(22.1)
|
|
(25.1)
|
|
Straight-line ground
rent expense
|
(0.2)
|
|
(0.3)
|
|
(0.8)
|
|
(0.9)
|
|
Expensed costs of
suspended developments
|
(0.1)
|
|
(0.6)
|
|
(0.8)
|
|
(1.7)
|
|
|
|
|
|
|
|
|
|
(4)
|
Non-cash interest
expense:
|
|
|
|
|
|
|
|
|
Convertible debt
accretion
|
(2.9)
|
|
(2.7)
|
|
(8.5)
|
|
(8.0)
|
|
Debt fair value
amortization
|
4.1
|
|
1.3
|
|
12.5
|
|
2.5
|
|
Loan cost
amortization
|
(3.1)
|
|
(3.0)
|
|
(9.5)
|
|
(9.0)
|
|
Interest expense
(capitalized)
|
2.7
|
|
2.0
|
|
6.6
|
|
6.8
|
|
|
|
|
|
|
|
|
|
(5)
|
General and
administrative expenses:
|
|
|
|
|
|
|
|
|
Stock compensation
expenses
|
(1.9)
|
|
(1.9)
|
|
(5.8)
|
|
(5.6)
|
|
Internal leasing
expenses
|
(1.7)
|
|
(1.8)
|
|
(5.6)
|
|
(5.7)
|
|
Construction
administrative costs (capitalized)
|
2.5
|
|
2.4
|
|
7.3
|
|
6.9
|
|
|
|
|
|
|
|
|
|
(6)
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Transactions and
other
|
(1.6)
|
|
(1.9)
|
|
(9.7)
|
|
(2.4)
|
|
Litigation
expenses
|
(1.2)
|
|
(0.4)
|
|
(2.2)
|
|
(1.2)
|
|
Debt extinguishment,
net
|
0.0
|
|
0.0
|
|
0.0
|
|
0.3
|
|
|
|
|
|
|
|
|
|
(7)
|
Impairment
charges:
|
|
|
|
|
|
|
|
|
Land held for
development
|
0.0
|
|
0.0
|
|
13.2
|
|
0.0
|
|
Undeveloped
land
|
1.4
|
|
0.0
|
|
1.8
|
|
2.6
|
|
Assets marketed for
sale
|
0.4
|
|
9.2
|
|
3.9
|
|
20.3
|
|
|
|
|
|
|
|
|
|
(8)
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
Revenues
|
5.6
|
|
15.1
|
|
21.2
|
|
50.9
|
|
Expenses
|
(4.8)
|
|
(12.2)
|
|
(18.7)
|
|
(42.1)
|
|
Impairments
|
(0.0)
|
|
(14.9)
|
|
(8.1)
|
|
(43.9)
|
|
Gain on disposition
of real estate, net
|
57.1
|
|
8.7
|
|
74.3
|
|
7.2
|
|
Net income
(loss)
|
57.9
|
|
(3.3)
|
|
68.7
|
|
(27.9)
|
DDR
Corp.
|
Financial
Statements: Footnotes
|
|
|
|
|
$ in millions, except
per share
|
|
|
|
Includes discontinued
operations
|
3Q14
|
|
3Q13
|
|
9M14
|
|
9M13
|
|
|
|
|
|
|
|
|
|
(9)
|
Non-operating
items excluded from Operating FFO:
|
|
|
|
|
|
|
|
|
Non-cash impairment
charges – non-depreciable assets
|
$1.4
|
|
$0.0
|
|
$24.2
|
|
$2.6
|
|
Transaction,
litigation, debt extinguishment costs, other
|
2.8
|
|
2.4
|
|
12.1
|
|
4.0
|
|
Joint ventures –
currency, other
|
0.0
|
|
(0.4)
|
|
0.1
|
|
(0.7)
|
|
Non-cash gain on sale
of non-depreciable real estate, net of non-
controlling interests and foreign currency
|
(4.8)
|
|
(1.9)
|
|
(4.9)
|
|
(0.2)
|
|
Non-cash gain on sale
and change in control of interests, net
|
(4.0)
|
|
0.0
|
|
(4.0)
|
|
(1.1)
|
|
Non-cash write-off of
preferred share original issuance costs
|
0.0
|
|
0.0
|
|
1.9
|
|
5.2
|
|
|
(4.6)
|
|
0.1
|
|
29.4
|
|
9.8
|
|
|
|
|
|
|
|
|
|
(10)
|
Outstanding per
share information:
|
|
|
|
|
|
|
|
|
Common shares (at
quarter end)
|
360.2
|
|
324.1
|
|
360.2
|
|
324.1
|
|
OP units (at quarter
end)
|
1.4
|
|
0.4
|
|
1.4
|
|
0.4
|
|
Total shares and
units (at quarter end)
|
361.6
|
|
324.5
|
|
361.6
|
|
324.5
|
|
Weighted average
shares and units – Basic – EPS
|
358.0
|
|
318.2
|
|
357.8
|
|
316.1
|
|
Assumed conversion of
dilutive securities
|
0.5
|
|
0.0
|
|
0.5
|
|
0.0
|
|
Weighted average
shares and units – Diluted – EPS
|
358.5
|
|
318.2
|
|
358.3
|
|
316.1
|
|
Weighted average
shares and units – Basic – FFO & OFFO
|
361.0
|
|
320.6
|
|
360.2
|
|
318.7
|
|
Assumed conversion of
dilutive securities
|
0.5
|
|
0.5
|
|
0.5
|
|
0.5
|
|
Weighted average
shares and units – Diluted – FFO & OFFO
|
361.5
|
|
321.1
|
|
360.7
|
|
319.2
|
|
Earnings per common
share – Basic
|
$0.17
|
|
$(0.02)
|
|
$0.30
|
|
$(0.14)
|
|
Earnings per common
share – Diluted
|
$0.17
|
|
$(0.02)
|
|
$0.30
|
|
$(0.14)
|
|
FFO per share –
Basic
|
$0.31
|
|
$0.28
|
|
$0.77
|
|
$0.79
|
|
FFO per share –
Diluted
|
$0.31
|
|
$0.28
|
|
$0.77
|
|
$0.79
|
|
Operating FFO per
share – Diluted
|
$0.29
|
|
$0.28
|
|
$0.85
|
|
$0.82
|
|
Common stock
dividends declared, per share
|
$0.155
|
|
$0.135
|
|
$0.465
|
|
$0.405
|
|
|
|
|
|
|
|
|
|
(11)
|
Intangible assets,
net (at quarter and year end)
|
|
|
|
|
428.1
|
|
409.6
|
|
|
|
|
|
|
|
|
|
(12)
|
Below-market
leases, net (at quarter and year end)
|
|
|
|
|
139.6
|
|
123.9
|
|
|
|
|
|
|
|
|
|
Additional
financial information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures (DDR share):
|
|
|
|
|
|
|
|
|
Leasing
|
$9.8
|
|
$9.2
|
|
$30.5
|
|
$29.5
|
|
Maintenance –
total
|
6.0
|
|
2.9
|
|
9.2
|
|
5.4
|
|
Maintenance PSF of
owned GLA – non reimbursable
|
|
|
|
|
0.16
|
|
0.10
|
|
|
|
|
|
|
|
|
|
|
Miscellaneous
(DDR share):
|
|
|
|
|
|
|
|
|
Est. value of land
owned adjacent to existing centers (at 12/31/13)
|
|
|
|
|
$35.0
|
|
|
|
Cost basis of
headquarters (non-income producing, at quarter end)
|
|
|
|
|
40.0
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ddr-reports-operating-ffo-per-diluted-share-of-029-for-the-quarter-ended-september-30-2014-447318762.html
SOURCE DDR Corp.