Published:
Developers Diversified Realty Reports an Increase of 17.9% in Diluted FFO per Share for the Quarter Ended June 30, 2006
Developers Diversified Realty Corporation
(NYSE: DDR), the nation's leading owner, manager and developer of
market-dominant community centers, today reported operating results for the
second quarter ended June 30, 2006.
-- Funds From Operations ("FFO") per diluted share increased 17.9% to
$0.99 and net income per diluted share increased 18.0% to $0.59 for the
three months ended June 30, 2006 as compared to the prior year
-- Core portfolio leased percentage increased 40 basis points over the
prior year to 96.0%
-- Executed leases during the second quarter totaled approximately 1.75
million square feet, including 116 new leases and 178 renewals
-- Base rents increased 21.0% on new leases, 10.8% on renewals and 12.9%
on a blended basis
-- Same store net operating income ("NOI") for the quarter increased 3.3%
over the prior year
Scott Wolstein, Developers Diversified's Chairman and Chief Executive
Officer stated, "I'm pleased to report this quarter's results, which
reflect approximately $33 million in merchant building gains from sales to
Macquarie DDR Trust, as well as solid portfolio fundamentals. Based on
meetings with retailers at the International Council of Shopping Centers
convention in May, we expect demand for space to remain robust for the 2007
and 2008 seasons. From a balance sheet perspective, we were upgraded to
Baa2 by Moody's during the quarter, which supported the pricing and
operating improvements we made to our unsecured credit facilities in June."
Financial Results:
FFO, a widely accepted measure of a Real Estate Investment Trust ("REIT")
performance, on a diluted and basic per share basis was $0.99 for the three
months ended June 30, 2006, as compared to $0.84 for the same period in the
previous year, an increase of 17.9%. FFO available to common shareholders
was $109.8 million, as compared to $92.5 million for the three months
ended June 30, 2006 and 2005, respectively, an increase of 18.7%. Net
income available to common shareholders was $64.9 million or $0.59 per
share (diluted and basic) for the three months ended June 30, 2006, as
compared to $54.2 million, or $0.50 per share (diluted and basic) for the
prior comparable period. The increase in net income and FFO for the three
months ended June 30, 2006, is primarily related to an increase in gain on
sale of real estate assets through the Company's merchant building program
as compared to 2005.
FFO was $1.76 (diluted) and $1.77 (basic) for the six months ended June 30,
2006, as compared to $1.73 (diluted) and $1.74 (basic) for the same period
in the previous year, an increase of 1.7% on a diluted basis. FFO
available to common shareholders was $196.0 million, as compared to $191.6
million for the six months ended June 30, 2006 and 2005, respectively, an
increase of 2.3%. Net income available to common shareholders was $100.9
million or $0.92 per share (diluted and basic) for the six months ended
June 30, 2006, as compared to $145.9 million, or $1.34 per share (diluted)
and $1.35 per share (basic) for the prior comparable period. The decrease
in net income for the six months ended June 30, 2006 is primarily related
to a decrease in gain on sale of real estate assets as compared to 2005.
FFO is a supplemental non-GAAP financial measurement used as a standard in
the real estate industry. Management believes that FFO provides an
additional indicator of the financial performance of a REIT. The Company
also believes that FFO more appropriately measures the core operations of
the Company and provides a benchmark to its peer group. FFO does not
represent cash generated from operating activities in accordance with
generally accepted accounting principles, is not necessarily indicative of
cash available to fund cash needs and should not be considered as an
alternative to net income computed in accordance with GAAP as an indicator
of the Company's operating performance or as an alternative to cash flow as
a measure of liquidity. FFO is defined and calculated by the Company as
net income, adjusted to exclude: (i) preferred dividends, (ii) gains (or
losses) from sales of depreciable real estate property, except for those
sold through the Company's merchant building program, (iii) sales of
securities, (iv) extraordinary items, (v) cumulative effect of changes in
accounting standards and (vi) 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
minority equity investments and adding the Company's proportionate share of
FFO from its unconsolidated joint ventures and minority equity investments,
determined on a consistent basis. Other real estate companies may
calculate FFO in a different manner. A reconciliation of net income to FFO
is presented in the financial highlights section.
Leasing:
Leasing activity continues to be strong throughout the portfolio. During
the second quarter of 2006, the Company executed 116 new leases aggregating
967,351 square feet and 178 renewals aggregating 765,326 square feet.
Rental rates on new leases increased by 21.0% and rental rates on renewals
increased by 10.8%. On a blended basis, rental rates for new leases and
renewals increased by 12.9%. At June 30, 2006, the average annualized base
rent per occupied square foot, including those properties owned through
joint ventures, was $11.64, as compared to $11.27 at June 30, 2005.
At June 30, 2006, the portfolio, including those properties owned through
joint ventures, was 96.2% leased. Excluding the impact of the properties
acquired from Mervyns, the core portfolio was 96.0% leased, as compared to
95.6% at June 30, 2005. These percentages include tenants for which signed
leases have been executed and occupancy has not occurred. Based on tenants
in place and responsible for paying rent as of June 30, 2006, the portfolio
was 95.2% occupied. Excluding the impact of the properties acquired from
Mervyns, the core portfolio was 95.0% occupied, as compared to 95.0% at
June 30, 2005.
Strategic Real Estate Transactions:
MDT Joint Ventures:
During the second quarter of 2006, the Company sold seven properties,
aggregating 0.8 million owned square feet, to the MDT Preferred Joint
Venture, a newly formed joint venture with Macquarie DDR Trust, for
approximately $122.7 million and recognized gains totaling approximately
$38.5 million of which $32.5 million represented merchant building gains
from recently developed shopping centers.
Under the terms of the new MDT Preferred Joint Venture, MDT receives a 9%
return on its preferred equity investment of approximately $12.2 million
and then receives a 10% return on its common equity investment of
approximately $20.8 million before DDR receives a 10% return on its common
equity investment. DDR is then entitled to a 20% promoted interest in any
cash flow achieved above a 10% leveraged IRR on all common equity.
The Company remains responsible for all day-to-day operations of the
properties and receives ongoing fees for property management, leasing and
construction management, in addition to a promoted interest, along with
other periodic fees such as financing fees.
In addition, in July 2006, the Company sold two additional expansion areas
in McDonough, Georgia and Coons Rapids, Minnesota to the MDT Joint Venture
for approximately $10.1 million. These expansion areas are adjacent to
shopping centers currently owned by the MDT Joint Venture. The Company
anticipates recording merchant building gains of approximately $3 million
in the third quarter relating to these sales.
Coventry II Joint Venture:
In May 2006, the Coventry II Joint Ventures acquired three assets located
in Cincinnati, Ohio; Benton Harbor, Michigan and Dallas, Texas at an
aggregate cost of approximately $225 million. The Company is responsible
for all day-to-day operations of the properties and receives its share of
ongoing fees for property management, certain leasing, construction
management, and construction oversight, in addition to a promoted interest
in the three properties acquired.
Service Merchandise Joint Venture:
In June 2006, the Company exercised its purchase and sale rights under the
Service Merchandise Joint Venture agreement, and agreed to purchase its
partners' approximate 75% interest in the remaining 52 assets owned by the
Joint Venture. The Company expects to complete this acquisition in August
2006 at an expected gross purchase price of approximately $138 million
relating to our partners' approximately 75% interest, based on a total
valuation of approximately $185 million for all remaining aspects. Following this acquisition, the Company expects to sell the assets to
the Coventry II Joint Venture and anticipates recording a gain of
approximately $5 million of which $3 million will be included in FFO.
Acquisitions:
In April 2006, the Company acquired its partner's 50% ownership interest in
the Deer Valley Towne Center located in Phoenix, Arizona for approximately
$15.6 million in addition to assuming the partner's proportionate share of
the $17.3 million of existing mortgage debt (or $8.65 million). The total
shopping center was valued at approximately $48.2 million. Following the
date of acquisition, this previously unconsolidated joint venture is
consolidated into the Company's consolidated financial statements.
Expansions:
During the six month period ended June 30, 2006, the Company completed
three expansions and redevelopment projects located in Ocala, Florida;
Rome, New York and Mooresville, North Carolina at an aggregate cost of
$15.9 million. The Company is currently expanding/redeveloping nine
shopping centers located in Gadsden, Alabama; Lakeland, Florida;
Stockbridge, Georgia; Ottumwa, Iowa; Gaylord, Michigan; Olean, New York;
Bayamon, Puerto Rico; Ft. Union, Utah and Brookfield, Wisconsin at a
projected aggregate cost of approximately $57.2 million. The Company
anticipates commencing construction on five additional expansion and
redevelopment projects at shopping centers located in Birmingham, Alabama;
Crystal River, Florida; Hamilton, New Jersey; Amherst, New York and Stow,
Ohio.
Five of the Company's joint ventures are currently expanding/redeveloping
their shopping centers located in Phoenix, Arizona; Lancaster, California;
Benton Harbor, Michigan; Kansas City, Missouri and Cincinnati, Ohio at a
projected incremental cost of approximately $82.8 million. Two of the
Company's joint ventures anticipate commencing expansion/redevelopment
projects at their shopping centers located in Deer Park, Illinois and
Kirkland, Washington.
Development (Wholly Owned and Consolidated Joint Ventures):
As of June 30, 2006, the Company has substantially completed the
construction of the Freehold, New Jersey shopping center, which has an
aggregate cost of $25.4 million.
The Company currently has nine shopping center projects under construction.
These projects are located in Miami, Florida; Nampa, Idaho; McHenry,
Illinois; Chesterfield, Michigan; Seabrook, New Hampshire; Horseheads, New
York; Apex, North Carolina (Beaver Creek Crossings - Phase I, which is
being developed through a joint venture with First Carolina Properties);
Pittsburgh, Pennsylvania and San Antonio, Texas, (which is being developed
through a joint venture with David Berndt Interests). These projects are
scheduled for completion during 2006 through 2007 at a projected aggregate
cost of approximately $517 million and will create an additional 4.7
million square feet of gross leasable retail space. At June 30, 2006,
approximately $257.2 million of costs were incurred in relation to these
development projects.
The Company anticipates commencing construction in 2006 on two additional
shopping centers located in Homestead, Florida and McKinney, Texas. These
projects have an estimated aggregate cost of $59.3 million and will create
an additional 0.5 million square feet of gross leasable retail space.
Development (Joint Ventures):
Four of the Company's joint ventures currently have shopping center
projects under construction. These projects have an aggregate projected
cost of approximately $210.5 million. These projects are located in
Merriam, Kansas; Apex, North Carolina (Beaver Creek Crossings - South,
adjacent to a wholly owned development project); Allen, Texas and San
Antonio, Texas. The projects located in Merriam, Kansas; Allen, Texas and
San Antonio, Texas are being developed through the Coventry II program.
The majority of the project located in San Antonio, Texas was substantially
completed during 2005. The remaining three projects are scheduled for
completion during 2007 and 2008. At June 30, 2006, approximately $72.4
million of costs were incurred in relation to these development projects.
Financing:
In June 2006, the Company amended and restated its senior unsecured credit
facility to expand the facility from $1.0 billion to $1.2 billion and add
an accordion feature to increase the facility, at the Company's option, up
to $1.4 billion. The Company reduced interest rate pricing to LIBOR plus
60 basis points, based on the Company's current corporate credit ratings
(Baa2 stable from Moody's and BBB stable from Standard and Poors) and
extended the maturity to June 2010.
The Company also amended its $60 million unsecured credit facility with
National City Bank to reflect consistent terms, pricing and maturity as in
the $1.2 billion senior unsecured credit facility, described above. In
addition, its $400 million secured term loan was amended to add an
accordion feature to increase the loan, at the Company's option, up to $500
million and make similar covenant modifications.
Developers Diversified Realty currently owns and manages approximately 500
retail operating and development properties in 44 states, plus Puerto Rico,
comprising approximately 114 million square feet of real estate.
Developers Diversified Realty is a self-administered and self-managed real
estate investment trust (REIT) operating as a fully integrated real estate
company which acquires, develops, leases and manages shopping centers.
A copy of the Company's Supplemental Financial/Operational package is
available to all interested parties upon request at our corporate office to
Michelle M. Dawson, Vice President of Investor Relations, Developers
Diversified Realty Corporation, 3300 Enterprise Parkway, Beachwood, OH
44122 or on our Website which is located at http://www.ddr.com.
Developers Diversified Realty Corporation considers portions of this
information to be forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21 E 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 the results of the
Company to differ materially from those indicated by such forward-looking
statements, including, among other factors, local conditions such as
oversupply of space or a reduction in demand for real estate in the area,
competition from other available space, dependence on rental income from
real property, the loss of a major tenant, constructing properties or
expansions that produce a desired yield on investment or inability to enter
into definitive agreements with regard to our financing arrangements or our
failure to satisfy conditions to the completion of these arrangements. For
more details on the risk factors, please refer to the Company's Form on
10-K as of December 31, 2005.
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands - except per share data)
Three Month Period Six Month Period
Ended June 30, Ended June 30,
Revenues: 2006 2005 2006 2005
--------- --------- --------- ---------
Minimum rents (A) $ 141,898 $ 124,815 $ 281,890 $ 247,920
Percentage and overage rents
(A) 1,833 1,541 4,074 3,547
Recoveries from tenants 44,034 38,415 86,093 75,470
Ancillary income 3,197 2,015 6,192 3,792
Other property related
income 1,621 1,604 3,918 2,660
Management and other fee
income 5,989 4,983 11,682 9,275
Development fees 607 681 1,273 1,168
Other (B) 943 2,221 7,525 4,355
--------- --------- --------- ---------
200,122 176,275 402,647 348,187
--------- --------- --------- ---------
Expenses:
Operating and maintenance 28,582 23,750 54,496 47,258
Real estate taxes 23,003 20,028 46,128 40,616
General and administrative
(C) 15,422 12,712 30,832 26,042
Depreciation and
amortization 47,969 37,723 94,911 77,174
--------- --------- --------- ---------
114,976 94,213 226,367 191,090
--------- --------- --------- ---------
Other income (expense):
Interest income 2,863 2,425 5,984 3,433
Interest expense (55,829) (43,926) (109,829) (84,576)
Other income (expense) (D) 1,167 (1,252) 667 (1,865)
--------- --------- --------- ---------
(51,799) (42,753) (103,178) (83,008)
--------- --------- --------- ---------
Income before equity in net
income of joint ventures,
minority equity interests,
income tax of taxable REIT
subsidiaries and franchise
taxes, discontinued operations
and gain on sales of real
estate 33,347 39,309 73,102 74,089
Equity in net income of joint
ventures (E) 4,619 8,055 10,088 14,566
Minority equity interests (F) (1,947) (1,178) (4,221) (2,599)
Income tax benefit (expense) of
taxable REIT subsidiaries and
franchise taxes (G) 2,779 (398) 2,331 (565)
--------- --------- --------- ---------
Income from continuing
operations 38,798 45,788 81,300 85,491
Income from discontinued
operations (H) - 3,292 - 4,478
--------- --------- --------- ---------
Income before gain on sales of
real estate 38,798 49,080 81,300 89,969
Gain on sales of real estate,
net of tax 39,937 18,874 47,162 83,534
--------- --------- --------- ---------
Net income $ 78,735 $ 67,954 $ 128,462 $ 173,503
========= ========= ========= =========
Net income, applicable to
common shareholders $ 64,943 $ 54,162 $ 100,878 $ 145,920
========= ========= ========= =========
Funds From Operations ("FFO"):
Net income applicable to
common shareholders $ 64,943 $ 54,162 $ 100,878 $ 145,920
Depreciation and
amortization of real estate
investments 45,804 39,492 90,836 80,335
Equity in net income of
joint ventures (E) (4,619) (8,055) (10,088) (14,566)
Joint ventures' FFO (E) 9,342 10,764 19,281 22,080
Minority equity interests
(OP Units) (F) 534 729 1,068 1,458
Gain on sales of depreciable
real estate, net (6,220) (4,557) (5,999) (43,620)
--------- --------- --------- ---------
FFO available to common
shareholders 109,784 92,535 195,976 191,607
Preferred dividends 13,792 13,792 27,584 27,583
--------- --------- --------- ---------
FFO $ 123,576 $ 106,327 $ 223,560 $ 219,190
========= ========= ========= =========
Per share data:
Earnings per common share
Basic $ 0.59 $ 0.50 $ 0.92 $ 1.35
========= ========= ========= =========
Diluted $ 0.59 $ 0.50 $ 0.92 $ 1.34
========= ========= ========= =========
Dividends Declared $ 0.59 $ 0.54 $ 1.18 $ 1.08
========= ========= ========= =========
Funds From Operations -
Basic (I) $ 0.99 $ 0.84 $ 1.77 $ 1.74
========= ========= ========= =========
Funds From Operations -
Diluted (I) $ 0.99 $ 0.84 $ 1.76 $ 1.73
========= ========= ========= =========
Basic - average shares
outstanding (thousands) (I) 109,393 108,276 109,127 108,142
========= ========= ========= =========
Diluted - average shares
outstanding (thousands) (I) 110,866 109,022 109,735 110,354
========= ========= ========= =========
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands - except per share data)
(A) Increases in base and percentage rental revenues for the six month
period ended June 30, 2006 as compared to 2005, aggregated
$32.5 million consisting of $5.9 million related to leasing of core
portfolio properties, including the Puerto Rican assets for five
months (an increase of 2.5% from 2005), $28.3 million from the
acquisition of assets, $2.5 million related to developments and
redevelopments and $2.1 million due to the consolidation of a joint
venture asset. These amounts were offset by a decrease of
$1.5 million primarily related to one business center under
redevelopment and $4.8 million due to the sale of properties in 2005
and 2006 to joint ventures. Included in the rental revenues for the
six month periods ended June 30, 2006 and 2005 is approximately
$7.8 million and $5.8 million, respectively, of revenue resulting
from the recognition of straight line rents.
(B) Other income for the three and six month periods ended June 30, 2006
and 2005 was comprised of the following (in millions):
Three Month Period Six Month Period
Ended June 30, Ended June 30,
2006 2005 2006 2005
---------- ---------- ---------- ----------
Lease termination fees $ 0.3 $ 1.0 $ 6.8 $ 1.5
Financings fees 0.4 0.9 0.4 2.3
Other miscellaneous 0.2 0.3 0.3 0.6
---------- ---------- ---------- ----------
$ 0.9 $ 2.2 $ 7.5 $ 4.4
========== ========== ========== ==========
(C) General and administrative expenses include internal leasing salaries,
legal salaries and related expenses associated with the releasing of
space, which are charged to operations as incurred. For the six month
periods ended June 30, 2006 and 2005, general and administrative
expenses were approximately 5.0% and 4.6%, respectively, of total
revenues, including joint venture revenues, for each period.
(D) Other income/expense is comprised of litigation settlements or costs
and abandoned acquisition and development project costs.
(E) The following is a summary of the Company's share of the combined
operating results relating to its joint ventures (in thousands):
Three Month Period Six Month Period
Ended June 30, Ended June 30,
2006 2005 2006 2005
----------- ----------- ----------- -----------
Revenues from
operations (a) $ 104,734 $ 106,496 $ 207,018 $ 206,650
----------- ----------- ----------- -----------
Operating expense 34,472 37,283 67,473 71,966
Depreciation and
amortization of real
estate investments 20,476 22,059 40,324 40,670
Interest expense 30,626 31,336 59,405 56,125
----------- ----------- ----------- -----------
85,574 90,678 167,202 168,761
----------- ----------- ----------- -----------
Income from operations
before gain on sales
of real estate and
discontinued
operations 19,160 15,818 39,816 37,889
Gain on sales of real
estate - 456 43 759
(Loss) income from
discontinued
operations, net of tax (173) (734) 113 (424)
(Loss) gain on sales of
discontinued
operations, net of tax (1,762) 7,721 (1,550) 8,722
----------- ----------- ----------- -----------
Net income $ 17,225 $ 23,261 $ 38,422 $ 46,946
=========== =========== =========== ===========
DDR Ownership interests
(b) $ 4,462 $ 7,502 $ 9,777 $ 13,997
=========== =========== =========== ===========
Funds From Operations from
joint ventures are summarized
as follows:
Net income $ 17,225 $ 23,261 $ 38,422 $ 46,946
Loss (gain) on sales
of real estate,
including
discontinued
operations 11 (7,443) (19) (7,773)
Depreciation and
amortization of real
estate investments 20,586 23,042 40,612 42,925
------------ ----------- ----------- -----------
$ 37,822 $ 38,860 $ 79,015 $ 82,098
============ =========== =========== ===========
DDRC Ownership
interests (b) $ 9,342 $ 10,764 $ 19,281 $ 22,080
============ =========== =========== ===========
DDRC Partnership
distributions
received (c) $ 11,656 $ 12,330 $ 19,680 $ 23,470
============ =========== =========== ===========
(a) Revenues for the three month periods ended June 30, 2006 and 2005
included approximately $1.1 million and $2.1 million, respectively,
resulting from the recognition of straight line rents of which the
Company's proportionate share is $0.2 million and $0.3 million,
respectively. Revenues for the six month periods ended June 30,
2006 and 2005 included approximately $2.5 million and $3.6 million,
respectively, resulting from the recognition of straight line rents
of which the Company’s proportionate share is $0.5 million and $0.6
million, respectively.
(b) The Company's share of joint venture net income has been increased
by $0.1 million and $0.5 million for the three month periods ended
June 30, 2006 and 2005, respectively, and $0.2 million and $0.6
million for the six month periods ended June 30, 2006 and 2005,
respectively, to reflect adjustments for basis differences
impacting amortization and depreciation and gain on sales.
At June 30, 2006 and 2005, the Company owned joint venture
interests, excluding consolidated joint ventures, relating to 111
and 113 shopping center properties, respectively. In addition, at
June 30, 2006 and 2005, respectively, the Company, through a joint
venture, owned an interest of approximately 25% in 52 and 59
shopping center sites formerly owned by Service Merchandise,
respectively.
(c) Distributions include funds received from asset sales and
refinancings in addition to ongoing operating distributions.
(F) Minority equity interests are comprised of the following (in
thousands):
Three Month Period Six Month Period
Ended June 30, Ended June 30,
2006 2005 2006 2005
-------- -------- -------- --------
Minority interests $ 1,413 $ 449 $ 3,153 $ 1,141
Operating partnership units 534 729 1,068 1,458
-------- -------- -------- --------
$ 1,947 $ 1,178 $ 4,221 $ 2,599
======== ======== ======== ========
(G) Interest costs within taxable REIT subsidiaries are subject to certain
limitations based upon taxable income as required under Internal
Revenue Code Section 163(j). The 2006 income tax benefit is primarily
attributable to the Company’s ability to deduct interest costs due to
the increased gain on sales.
(H) The operating results relating to assets classified as discontinued
operations are summarized as follows (in thousands):
Three Month Six Month
Period Period
Ended Ended
June 30, June 30,
2005 2005
----------- -----------
Revenues $ 7,135 $ 14,271
----------- -----------
Expenses:
Operating 2,854 5,558
Interest, net 1,949 3,263
Depreciation 1,964 3,910
Minority interests 75 61
----------- -----------
Total expenses 6,842 12,792
----------- -----------
Income before gain on sales of real estate 293 1,479
Gain on sales of real estate 2,999 2,999
----------- -----------
Net income $ 3,292 $ 4,478
=========== ===========
(I) For purposes of computing FFO per share (basic), the weighted average
shares outstanding were adjusted to reflect the conversion of
approximately 0.9 million and 1.3 million of Operating Partnership
Units (OP Units) outstanding at June 30, 2006 and 2005, respectively,
into 0.9 million and 1.3 million common shares of the Company for the
three month periods ended June 30, 2006 and 2005, respectively, and
1.2 million and 1.3 million for the six month periods ended June 30,
2006 and 2005, respectively, on a weighted average basis. The weighted
average diluted shares and OP Units outstanding, for purposes of
computing FFO, were approximately 111.1 million and 110.7 million for
the three month periods ended June 30, 2006 and 2005, respectively, and
111.2 million and 110.6 million for the six month periods ended June 30,
2006 and 2005, respectively.
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands)
Selected Balance Sheet Data:
June 30, December 31,
2006 (A) 2005 (A)
------------ ------------
Assets:
Real estate and rental property:
Land $ 1,776,488 $ 1,721,321
Buildings 4,979,519 4,806,373
Fixtures and tenant improvements 181,900 152,958
Construction in progress 385,795 348,685
------------ ------------
7,323,702 7,029,337
Less accumulated depreciation (783,871) (692,823)
------------ ------------
Real estate, net 6,539,831 6,336,514
Cash 43,119 30,655
Advances to and investments in joint ventures
(B) 240,704 275,136
Notes receivable 24,005 24,996
Receivables, including straight line rent, net 108,358 112,464
Assets held for sale 5,167 -
Other assets, net 97,867 83,212
------------ ------------
$ 7,059,051 $ 6,862,977
============ ============
Liabilities:
Indebtedness:
Revolving credit facilities $ 160,000 $ 150,000
Variable rate unsecured term debt 200,000 200,000
Unsecured debt 1,966,894 1,966,268
Mortgage and other secured debt 1,749,313 1,574,733
------------ ------------
4,076,207 3,891,001
Dividends payable 71,690 65,799
Other liabilities 205,177 204,447
------------ ------------
4,353,074 4,161,247
Minority interests 123,270 131,449
Shareholders' equity 2,582,707 2,570,281
------------ ------------
$ 7,059,051 $ 6,862,977
============ ============
(A) Amounts include the consolidation of the Mervyns, 50% owned joint
venture, formed in September 2005, which includes $405.8 million and
$394.7 million of real estate assets at June 30, 2006 and December 31,
2005, respectively, $258.5 million of mortgage debt at June 30, 2006
and December 31, 2005, and $78.8 million and $75.1 million of minority
interests at June 30, 2006 and December 31, 2005, respectively.
(B) Includes $90.5 million and $91.6 million of advances to the
Service Merchandise Joint Venture at June 30, 2006 and December 31,
2005, respectively, funded in the second quarter of 2005.
DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(in thousands)
Selected Balance Sheet Data (Continued):
Combined condensed balance sheets relating to the Company's joint ventures
are as follows:
June 30, December 31,
2006 2005
------------ ------------
Land $ 967,927 $ 894,477
Buildings 2,580,224 2,480,025
Fixtures and tenant improvements 67,438 58,060
Construction in progress 45,014 37,550
------------ ------------
3,660,603 3,470,112
Accumulated depreciation (210,339) (195,708)
------------ ------------
Real estate, net 3,450,264 3,274,404
Receivables, including straight line rent, net 75,248 76,744
Leasehold interests 22,326 23,297
Other assets 127,059 109,490
------------ ------------
$ 3,674,897 $ 3,483,935
============ ============
Mortgage debt (a) $ 2,307,096 $ 2,173,401
Notes and accrued interest payable to DDR 111,981 108,020
Other liabilities 164,045 78,406
------------ ------------
2,583,122 2,359,827
Accumulated equity 1,091,775 1,124,108
------------ ------------
$ 3,674,897 $ 3,483,935
============ ============
(a) The Company's proportionate share of joint venture debt aggregated
approximately $497.0 million and $510.5 million at June 30, 2006 and
December 31, 2005, respectively.
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Copyright © 2008, NewsBlaze,
Daily NewsTags: ,RealEstate and Construction:CommercialRealEstate, ,NYSE0001,NYSE0001,OH,CLEVELAND, OH
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