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 DDR Reports Fourth Quarter and Year End 2017 Operating Results
   Thursday, February 15, 2018 4:15:02 PM ET

DDR Corp. (DDR ) today announced operating results for the quarter ended December 31, 2017.

"2017 was a transformational year for DDR, highlighted by the announced spin-off of Retail Value Inc., a restructuring of our balance sheet, and a stream-lining of our organization. Our operating results decelerated from the prior year, but same store NOI growth was ahead of our original forecasts and was flat in the continental U.S. portfolio despite a significant decline in occupancy from tenant bankruptcies," commented David R. Lukes, president and chief executive officer. "Going forward, we remain energized about the prospects of realizing value through dispositions and operations of Retail Value Inc. properties and New DDR’s growth prospects as stronger 2017 operating metrics further validate."

Results for the Quarter

-- Fourth quarter net loss attributable to common shareholders was $226.4 million, or $0.62 per diluted share, as compared to net income of $28.1 million, or $0.08 per diluted share, in the year ago-period. The year-over-year decrease is primarily attributable to impairment charges of $280.1 million of which $258.6 million are a result of the change in hold-period assumptions for the Retail Value Inc. ("RVI") asset portfolio.

-- Fourth quarter operating funds from operations attributable to common shareholders ("Operating FFO" or "OFFO") was $103.8 million, or $0.28 per diluted share, compared to $111.1 million, or $0.30 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.

Results for the Year

-- Net loss attributable to common shareholders for the year ended December 31, 2017, was $270.4 million, or $0.74 per diluted share, which compares to a net income of $37.6 million, or $0.10 per diluted share for the prior year.

-- Generated Operating FFO of $1.18 per diluted share for the full year 2017, which compares to $1.28 per diluted share for 2016.

Significant Fourth Quarter Activity

-- On December 14, 2017, DDR announced its intention to spin off 50 assets, representing approximately $2.9 billion of gross book value, comprised of 38 continental U.S. assets and the entirety of the Puerto Rico portfolio, into a separate publicly-traded REIT to be named RVI. DDR recorded approximately $2.3 million of costs related to the transaction in the fourth quarter of 2017.

-- In February 2018, in connection with the strategic transformation to spin off RVI, completed $1.35 billion of mortgage financing and repaid $452 million of mortgage debt using proceeds from the new financing and commenced tender offers for any and all of its $300 million aggregate principal amount of its 3.500% senior notes due 2021 and $600 million aggregate principal amount of other series of senior unsecured notes.

-- Sold 14 shopping centers and land parcels for an aggregate sales price of $590.1 million, totaling $246.0 million at DDR’s share, including $48.6 million from the repayment of the Company’s preferred equity investment in its two joint ventures with Blackstone.

-- Repaid $104 million of mortgage debt scheduled to mature in 2018.

Key Quarterly Operating Results

-- The results of "New DDR" described herein represent the results of the assets that will remain in DDR after the completion of both the spin-off of RVI and the previously announced $900 million disposition program

-- Reported 0.8% same store net operating income growth on a pro rata basis for New DDR

-- Reported -0.4% same store net operating income on a pro rata basis, excluding Puerto Rico for the total portfolio; presentation has been adjusted to include bad debt expense on a comparable basis; these results were impacted by approximately 30 basis points of unbudgeted snow removal costs

-- Generated new leasing spreads of 23.9% and renewal leasing spreads of 5.3%, both on a pro rata basis for New DDR for the quarter, and new leasing spreads of 17.2% and renewal leasing spreads of 7.1%, both on a pro rata basis for New DDR for the trailing twelve-month period

-- Generated new leasing spreads of 23.9% and renewal leasing spreads of 2.2%, both on a pro rata basis for the total portfolio for the quarter, and new leasing spreads of 11.1% and renewal leasing spreads of 5.2%, both on a pro rata basis for the total portfolio for the trailing twelve-month period

-- Reported a leased rate of 93.6% at December 31, 2017 for New DDR on a pro rata basis, compared to 94.4% at December 31, 2016

-- Reported a leased rate of 93.2% at December 31, 2017, compared to 95.0% at December 31, 2016, on a pro rata basis for the total portfolio

-- Annualized base rent per occupied square foot on a pro rata basis was $17.20 at December 31, 2017 for New DDR, compared to $16.71 at December 31, 2016

-- Annualized base rent per occupied square foot on a pro rata basis was $16.46 at December 31, 2017, compared to $15.46 at December 31, 2016 for the total portfolio

Fourth Quarter Update - Hurricane Casualty and Operating

The Company’s 12 shopping centers in Puerto Rico were significantly impacted by Hurricane Maria, which occurred in September 2017. The Company maintains insurance on its assets in Puerto Rico with policy limits of approximately $330 million for property damage and business interruption. The Company has been actively working with its insurer relating to both the property damage and business interruption claims. The Company believes its insurance policies provide adequate coverage of lost revenue related to hurricane damage and related store closures. The Company’s insurance policies remain subject to various terms and conditions, including a deductible of approximately $6 million, which was recorded in the third quarter of 2017. The financial impact on the fourth quarter results is summarized as follows:

-- Received payments from its insurer for its estimated business interruption losses for $8.5 million, which are recorded as business interruption income within revenues on the income statement.

-- Reported a reduction of revenues from tenants of $9.3 million for the quarter ended December 31, 2017. This loss was netted against the $8.5 million in business interruption income recorded and a $0.2 million true up of uninsured expenses during the quarter with the net impact of $0.6 million excluded from Operating FFO provided later in this release.

-- Recorded an additional write-off of real estate assets of $6.4 million based on updated damage assessments of the properties. The aggregate estimated net book value written off year-to-date related to hurricane damage is $71.0 million and remains subject to change.

-- The corresponding receivable of $58.6 million at December 31, 2017 related to the estimated casualty insurance recovery reflects the aggregate year-to-date write-off of real estate assets of $71.0 million and other expenses expected to be covered by insurance reduced by the $5.1 million insurance deductible and $10 million advance received by the insurer in the fourth quarter of 2017.

Guidance

The Company’s guidance for 2018, except for OFFO which is for the third quarter of 2018, for New DDR, after an assumed spin-off date of July 2018, is as follows (in millions, except per share data):

                                                      
                                                                                                                                            Guidance                Actual        
                                                                                                                                              2018                                                                                                    FY
                                                                                                                                                                                                                                               2017      
                                                                                                                                   -------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Same Store NOI growth(1)                                                                                                                  At least 1.5%                                                                                                                                                    0.0%
                                                                                                                                                               
Joint venture fee income                                                                                                             $23 - $25                                                                                                                                                $33.6
                                                                                                                                                               
Interest income                                                                                                                      $18 - $22                                                                                                                                                $28.4
                                                                                                                                                               
Additional items(2):
----------------------------------------------
RVI fee income                                                                                                                                 $10                                                                                                                                                          N/A
                                                                                                                                                               
General and administrative expenses(3)                                                                                                         $70                                                                                                                                                         $72.0
                                                                                                                                                               
3Q18 Estimates:
----------------------------------------------
Net income attributable to Common Shareholders                                                                                     $0.02 - $0.03                                                                                                                                               N/A
                                                                                                                                                               
OFFO per share (basic and diluted)                                                                                                       At least $0.15                                                                                                                                                     N/A
                                                                                                                                                               
(1)   Excludes major redevelopment. 2018 represents New DDR. 2017
                         represents DDR.
(2)                      Assumes no dispositions and a 3Q18 spin effective date.
(3)                      2017 actual excludes separation charges.
                          
                                                            
Reconciliation of Net Income Attributable to DDR to FFO and
Operating FFO Estimate
                                                                                                                                                                                                   
                                                                                                                                                                                                               3Q2018E
                                                                                                                                                                                                   Per Share - Diluted
                                                                                                                                                                                                  --------------------
Net income attributable to Common Shareholders                                                                                                                                                           $0.02 - $0.03
Depreciation and amortization of real estate                                                                                                                                                               0.11 - 0.13
Equity in net income of JVs                                                                                                                                                                                     (0.01)
JVs’ FFO                                                                                                                                                                                                          0.02
                                                                                                                                                                                                  --------------------
FFO (NAREIT) and Operating FFO                                                                                                                                                                                   $0.15
                                                                                                                                                                                                   

About DDR Corp.

DDR is an owner and manager of 273 value-oriented shopping centers representing 92 million square feet in 33 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 4:45 p.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 888-317-6003 (U.S.), 866-284-3684 (Canada) or 412-317-6061 (international) using pass code 7769620 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. 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). In addition, due to the impact of Hurricanes Irma and Maria on its properties in Puerto Rico in 2017, the Company also excludes its Puerto Rico NOI from SSNOI. SSNOI excludes all non-property and corporate level revenue and expenses. Other real estate companies may calculate NOI and SSNOI in a different manner. The Company believes SSNOI provides investors with additional information regarding the operating performances of comparable assets because it excludes certain non-cash and non-comparable items as noted above.

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

Safe Harbor

DDR Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from extreme weather conditions in locations where we own properties, and the ability to estimate accurately the amounts thereof; sufficiency and timing of any insurance recovery payments related to damages from extreme weather conditions; local conditions such as supply of space or a reduction in demand for real estate in the area; competition from other available space; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; redevelopment and construction activities may not achieve a desired return on investment; our ability to buy or sell assets on commercially reasonable terms; our ability to complete acquisitions or dispositions of assets under contract; our ability to secure equity or debt financing on commercially acceptable terms or at all; our ability to enter into definitive agreements with regard to our financing and joint venture arrangements or our failure to satisfy conditions to the completion of these arrangements; the success of our deleveraging strategy; any change in strategy; our ability to complete our previously announced plan to spin-off certain of our assets in a timely manner; the impact of such spin-off on our business and that of the spun-off company; and the ability of the Company and the spin-off company to execute their respective strategies following consummation of the spin-off, including the ability of the spin-off company to sell assets on commercially reasonable terms; entering into management agreements with RVI on commercially reasonable terms; and the finalization of the financial statements for the period ended December 31, 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 and subsequent reports on Form 10-Q. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

                                                                                                             DDR Corp.
                                                                                             Income Statement: Consolidated Interests
                                                                                                                    
                                                                                                                                                                               
                         $ in thousands, except per share
                                                                                                                      4Q17       4Q16                           12M17                  12M16
                                                                                                                ----------                      --------                      ----------                      --------------------
                         Revenues (1):
                         Minimum rents (2)                                                                        $147,140                      $167,933                        $632,917                                  $701,208
                         Percentage rent                                                                             2,556                         2,827                           7,094                                     7,610
                         Recoveries                                                                                 47,465                        55,701                         211,942                                   238,419
                         Other property revenues (3)                                                                 3,771                         5,707                          27,494                                    22,270
                         Business interruption income                                                                8,500                             0                           8,500                                         0
                                                                                                                ----------                      --------                      ----------                      --------------------
                                                                                                                   209,432                       232,168                         887,947                                   969,507
                         Expenses (4):
                         Operating and maintenance                                                                  28,224                        29,697                         122,315                                   134,297
                         Real estate taxes                                                                          29,911                        34,312                         128,602                                   142,787
                                                                                                                ----------                      --------                      ----------                      --------------------
                                                                                                                    58,135                        64,009                         250,917                                   277,084
                                                                                                                                                                                                               
                         Net operating income                                                                      151,297                       168,159                         637,030                                   692,423
                                                                                                                                                                                                               
                         Other income (expense):
                         Fee income                                                                                  8,124                         8,093                          33,641                                    36,298
                         Interest income                                                                             5,999                         9,254                          28,364                                    37,054
                         Interest expense                                                                         (41,616)                      (51,740)                       (188,647)                                 (217,589)
                         Depreciation and amortization                                                            (79,834)                      (99,468)                       (346,204)                                 (389,519)
                         General and administrative (5)                                                           (19,601)                      (20,941)                        (89,854)                                  (76,101)
                         Other income (expense), net                                                               (2,705)                         (148)                        (68,003)                                     3,322
                         Impairment charges                                                                      (280,127)                       (6,029)                       (340,480)                                 (110,906)
                         Hurricane casualty and impairment loss (6)                                                    159                             0                         (5,930)                                         0
                                                                                                                ----------                      --------                      ----------                      --------------------
                         (Loss) income before earnings from JVs and other                                        (258,304)                         7,180                       (340,083)                                  (25,018)
                                                                                                                                                                                                               
                         Equity in net income of JVs                                                                 6,408                         1,618                           8,837                                    15,699
                         Reserve of preferred equity interests                                                       (377)                             0                        (61,000)                                         0
                         Gain (loss) on sale and change in control                                                     368                             0                             368                                   (1,087)
                         Valuation allowance of prepaid tax asset                                                  (2,017)                             0                        (10,794)                                         0
                         Tax expense                                                                                 (438)                         (680)                         (1,624)                                   (1,781)
                         Gain on disposition of real estate, net                                                    34,147                        25,916                         161,164                                    73,386
                                                                                                                ----------                      --------                      ----------                      --------------------
                         Net (loss) income                                                                       (220,213)                        34,034                       (243,132)                                    61,199
                         Non-controlling interests                                                                   2,175                         (293)                           1,447                                   (1,187)
                                                                                                                ----------                      --------                      ----------                      --------------------
                         Net (loss) income DDR                                                                   (218,038)                        33,741                       (241,685)                                    60,012
                         Preferred dividends                                                                       (8,383)                       (5,594)                        (28,759)                                  (22,375)
                                                                                                                ----------                      --------                      ----------                      --------------------
                         Net (loss) income Common Shareholders                                                  ($226,421)                       $28,147                      ($270,444)                                   $37,637
                                                                                                                                                                                                               
                         Weighted average shares - Basic - EPS                           368,320                       365,965                         367,362                                   365,294
                         Assumed conversion of dilutive securities                                                       0                           110                               0                                       267
                                                                                                                ----------                      --------                      ----------                      --------------------
                         Weighted average shares - Diluted - EPS                         368,320                       366,075                         367,362                                   365,561
                                                                                                                                                                                                               
                         Earnings per common share - Basic & Diluted                                  ($0.62)                         $0.08                         ($0.74)                                     $0.10
                                                                                                                                                                                                               
                         Revenue items:
(1)                      Lost revenue related to hurricanes                                                       ($9,249)                            $0                       ($11,806)                                        $0
(2)                      Ground lease revenue                                                                       10,313                        10,267                          42,626                                    40,874
(3)                      Lease termination fees                                                                        317                           383                          10,505                                     3,512
                                                                                                                                                                                                               
(4)                      Operating expenses:
                         Recoverable expenses                                                                     (53,422)                      (59,195)                       (229,776)                                 (253,144)
                         Non-recoverable expenses                                                                  (4,075)                       (4,544)                        (17,911)                                  (21,037)
                         Bad debt expense                                                                            (638)                         (270)                         (3,229)                                   (2,903)
                                                                                                                                                                                                               
(5)                      General and administrative expenses:
                         Separation charges                                                                        (1,320)                             0                        (17,872)                                         0
                         Internal leasing expenses                                                                 (1,252)                       (1,527)                         (5,292)                                   (7,698)
                         Construction administrative costs (capitalized)                                             1,462                         2,411                           7,361                                     8,084
                                                                                                                                                                                                               
(6)                      Hurricane casualty and impairment loss
                         Impairment charge (property damage deductible)                                                  0                             0                         (5,100)                                         0
                         Clean up costs and other expenses                                                             159                             0                           (830)                                         0
                                                                                                                ----------                      --------                      ----------                      --------------------
                                                                                                                       159                             0                         (5,930)                                         0
                                                                                                                                                                                                               
                                                                                                                                       
                                                                                                                       DDR Corp.
                                                                                              Reconciliation: Net (Loss) Income to FFO and Operating FFO
                                                                                                            and Other Financial Information
                                                                                                                                                                                                  
                           $ in thousands, except per share
                                                                                                                                         4Q17       4Q16                           12M17                  12M16
                                                                                                                                   ----------                      --------                      ----------                      --------------------
                           Net (loss) income attributable to Common Shareholders                                                   ($226,421)                       $28,147                      ($270,444)                                   $37,637
                           Depreciation and amortization of real estate                                                                78,209                        97,356                         336,346                                   381,170
                           Equity in net (income) loss of JVs                                                                         (6,408)                       (1,618)                         (8,837)                                  (15,699)
                           JVs’ FFO                                                                                                     8,257                         6,868                          29,319                                    26,025
                           Non-controlling interests                                                                                       76                            76                             303                                       303
                           Impairment of depreciable real estate (1)                                                                  275,890                         6,029                         330,493                                   110,906
                           Gain on disposition of depreciable real estate, net                                                       (34,457)                      (25,698)                       (160,357)                                  (74,182)
                                                                                                                                   ----------                      --------                      ----------                      --------------------
                           FFO attributable to Common Shareholders                                                                    $95,146                      $111,160                        $256,823                                  $466,160
                                                                                                                                                                                                                                  
                           Reserve of preferred equity interests                                                                          377                             0                          61,000                                         0
                           Hurricane casualty loss (2)                                                                                    576                             0                           4,192                                         0
                           Impairment charges - non-depreciable assets                                                     1,803                             0                          12,653                                         0
                           Separation charges                                                                                           1,320                             0                          17,872                                         0
                           Transaction, debt extinguishment, other, net                                                                 2,330                           146                          69,112                                       651
                           Joint ventures - debt extinguishment, transaction, other                                                      (52)                           (2)                             726                                        24
                           Valuation allowance of Puerto Rico prepaid tax asset                                                         2,017                             0                          10,794                                     (326)
                           Loss (gain) on disposition of non-depreciable real estate, net                                                 310                         (218)                           (807)                                     1,883
                                                                                                                                   ----------                      --------                      ----------                      --------------------
                           Total non-operating items, net                                                                               8,681                          (74)                         175,542                                     2,232
                                                                                                                                   ----------                      --------                      ----------                      --------------------
                           Operating FFO attributable to Common Shareholders                                                         $103,827                      $111,086                        $432,365                                  $468,392
                                                                                                                                                                                                                                  
                           Weighted average shares and units - Basic - FFO & OFFO                           368,793                       366,630                         367,859                                   366,101
                           Assumed conversion of dilutive securities                                                                       18                           110                              46                                       267
                                                                                                                                   ----------                      --------                      ----------                      --------------------
                           Weighted average shares and units - Diluted - FFO & OFFO                         368,811                       366,740                         367,905                                   366,368
                                                                                                                                                                                                                                  
                           FFO per share - Basic & Diluted                                                                 $0.26                         $0.30                           $0.70                                     $1.27
                           Operating FFO per share - Basic & Diluted                                                       $0.28                         $0.30                           $1.18                                     $1.28
                           Common stock dividends declared, per share                                                                   $0.19                         $0.19                           $0.76                                     $0.76
                                                                                                                                                                                                                                  
                           Certain non-cash items (DDR share):
                           Straight-line rent, net                                                                                     ($121)                        $1,003                          ($328)                                    $4,805
                           Amortization of (above)/below-market rent, net                                                               1,553                         2,085                          12,156                                     5,934
                           Straight-line ground rent income (expense)                                                                    (51)                           594                             112                                       229
                           Debt fair value and loan cost amortization                                                                 (1,654)                         (580)                         (4,875)                                   (2,421)
                           Capitalized interest expense                                                                                   474                           440                           1,879                                     3,059
                           Stock compensation expense                                                                                 (1,537)                       (2,320)                         (6,590)                                   (7,012)
                           Non-real estate depreciation expense                                                                       (1,581)                       (2,064)                         (9,624)                                   (8,156)
                           Non-cash interest income                                                                                         0                         1,853                           1,283                                     7,737
                           Capital expenditures (DDR share):
                           Development and redevelopment costs                                                                         12,767                        14,803                          63,047                                    91,427
                           Maintenance capital expenditures                                                                             4,491                         2,439                          14,356                                    17,368
                           Tenant allowances and landlord work                                                                          7,300                         6,082                          32,257                                    28,017
                           Leasing commissions                                                                                            804                         1,188                           2,770                                     4,267
                                                                                                                                                                                                                                  
(1)                        Impairment charges:
                           Hurricane impairment charge (property damage deductible)                                                         0                             0                           5,100                                         0
                           Impairment charge on shopping centers marketed for sale                                                    275,890                         6,029                         325,393                                   110,906
                                                                                                                                   ----------                      --------                      ----------                      --------------------
                                                                                                                                      275,890                         6,029                         330,493                                   110,906
(2)                        Hurricane casualty loss (DDR Share):
                           Lost tenant revenue                                                                                          9,288                             0                          11,859                                         0
                           Business interruption income                                                                               (8,500)                             0                         (8,500)                                         0
                           Clean up costs and other expenses, net                                                                       (212)                             0                             833                                         0
                                                                                                                                   ----------                      --------                      ----------                      --------------------
                                                                                                                                          576                             0                           4,192                                         0
                                                                                                                                                                                                                                  
                                                                                                
                                                                                                                         DDR Corp.
                                                                                                           Balance Sheet: Consolidated Interests
                                                                                                                                                                                                                                       
                         $ in thousands
                                                                                                                                                                                                                     At Period End
                                                                                                                                                                                                            4Q17                                      4Q16
                                                                                                                                                                                            --------------------                      --------------------
                         Assets:
                         Land                                                                                                                                                                         $1,738,792                                $1,990,406
                         Buildings                                                                                                                                                                     5,733,451                                 6,412,532
                         Fixtures and tenant improvements                                                                                                                                                693,280                                   735,685
                                                                                                                                                                                            --------------------                      --------------------
                                                                                                                                                                                                       8,165,523                                 9,138,623
                         Depreciation                                                                                                                                                                (1,953,479)                               (1,996,176)
                                                                                                                                                                                            --------------------                      --------------------
                                                                                                                                                                                                       6,212,044                                 7,142,447
                         Construction in progress and land                                                                                                                                                82,480                                   105,435
                                                                                                                                                                                            --------------------                      --------------------
                         Real estate, net                                                                                                                                                              6,294,524                                 7,247,882
                                                                                                                                                                                                                                       
                         Investments in JVs                                                                                                                                                              106,037                                    60,793
                         Receivable - preferred equity interests, net                                                                                                                       277,776                                   393,338
                         Cash                                                                                                                                                                             92,611                                    30,430
                         Restricted cash                                                                                                                                                                   2,113                                     8,795
                         Notes receivable, net                                                                                                                                                            19,675                                    49,503
                         Receivables, net (1)                                                                                                                                                            108,695                                   121,367
                         Casualty insurance receivable                                                                                                                                                    58,583                                         0
                         Intangible assets, net                                                                                                                                                          182,407                                   241,598
                         Other assets, net                                                                                                                                                                27,652                                    43,812
                                                                                                                                                                                            --------------------                      --------------------
                         Total Assets                                                                                                                                                                  7,170,073                                 8,197,518
                                                                                                                                                                                                                                       
                         Liabilities and Equity:
                         Revolving credit facilities                                                                                                                                                           0                                         0
                         Unsecured debt                                                                                                                                                                2,810,100                                 2,913,217
                         Unsecured term loan                                                                                                                                                             398,130                                   398,399
                         Secured debt                                                                                                                                                                    641,082                                 1,182,352
                                                                                                                                                                                            --------------------                      --------------------
                                                                                                                                                                                                       3,849,312                                 4,493,968
                         Dividends payable                                                                                                                                                                78,549                                    75,245
                         Other liabilities (2)                                                                                                                                                           344,774                                   382,293
                                                                                                                                                                                            --------------------                      --------------------
                         Total Liabilities                                                                                                                                                             4,272,635                                 4,951,506
                                                                                                                                                                                                                                       
                         Preferred shares                                                                                                                                                                525,000                                   350,000
                         Common shares                                                                                                                                                                    36,851                                    36,630
                         Paid-in capital                                                                                                                                                               5,513,197                                 5,487,212
                         Distributions in excess of net income                                                                                                                                       (3,183,134)                               (2,632,327)
                         Deferred compensation                                                                                                                                                             8,777                                    15,149
                         Other comprehensive income                                                                                                                                                      (1,106)                                   (4,192)
                         Common shares in treasury at cost                                                                                                                                               (8,653)                                  (14,957)
                         Non-controlling interests                                                                                                                                                         6,506                                     8,497
                                                                                                                                                                                            --------------------                      --------------------
                         Total Equity                                                                                                                                                                  2,897,438                                 3,246,012
                                                                                                                                                                                                                    
                                                                                                                                                                                            --------------------                      --------------------
                         Total Liabilities and Equity                                                                                                                                                 $7,170,073                                $8,197,518
                                                                                                                                                                                                                                       
(1)                      Straight-line rents receivable, net                                                                                                                                             $59,439                                   $65,072
                                                                                                                                                                                                                                       
(2)                      Below-market leases, net                                                                                                                                                        127,513                                   147,941
                                                                                                                                                                                                                                       
                                                                                                                           
                                                                                                 DDR Corp.
                                                                    Reconciliation of Net Income Attributable to DDR to Same Store NOI
                                                                                                    (1)
                                                                                                                                                                                      
$ in thousands
                                                                                                                                                                         At DDR Share
                                                                                                                                                                          (Non-GAAP)
                                                                                 4Q17                                      4Q16                            4Q17                                      4Q16
                                                                 --------------------                      --------------------                      ----------                      --------------------
GAAP Reconciliation:
----------------------------------------------------------------
Net (loss) income attributable to DDR                                      ($218,038)                                   $33,741                      ($218,038)                                   $33,741
Fee income                                                                    (8,124)                                   (8,093)                         (8,124)                                   (8,093)
Interest income                                                               (5,999)                                   (9,254)                         (5,999)                                   (9,254)
Interest expense                                                               41,616                                    51,740                          41,616                                    51,740
Depreciation and amortization                                                  79,834                                    99,468                          79,834                                    99,468
General and administrative                                                     19,601                                    20,941                          19,601                                    20,941
Other expense, net                                                              2,705                                       148                           2,705                                       148
Impairment charges                                                            280,127                                     6,029                         280,127                                     6,029
Hurricane casualty and impairment loss                                          (159)                                         0                           (159)                                         0
Equity in net income of joint ventures                                        (6,408)                                   (1,618)                         (6,408)                                   (1,618)
Reserve of preferred equity interests                                             377                                         0                             377                                         0
Gain on sale and change in control                                              (368)                                         0                           (368)                                         0
Valuation allowance of prepaid tax asset                                        2,017                                         0                           2,017                                         0
Tax expense                                                                       438                                       680                             438                                       680
Gain on disposition of real estate                                           (34,147)                                  (25,916)                        (34,147)                                  (25,916)
(Loss) income from non-controlling interests                                  (2,175)                                       293                         (2,175)                                       293
                                                                 --------------------                      --------------------                      ----------                      --------------------
Consolidated NOI                                                              151,297                                   168,159                         151,297                                   168,159
DDR’s consolidated JV                                                                                               (381)                                     (419)
                                                                 --------------------                      --------------------                      ----------                      --------------------
Consolidated NOI, net of non-controlling interests                            151,297                                   168,159                         150,916                                   167,740
                                                                                                                                                                                      
Net income from unconsolidated joint ventures                                  71,955                                     1,200                           6,041                                     1,251
Interest expense                                                               23,920                                    32,735                           3,723                                     5,237
Depreciation and amortization                                                  42,361                                    49,187                           5,318                                     5,661
Impairment charges                                                              7,930                                         0                             397                                         0
Preferred share expense                                                         7,577                                     8,411                             379                                       421
Other expense, net                                                              3,782                                     5,554                             763                                     1,008
Gain on disposition of real estate, net                                      (71,042)                                   (3,006)                         (3,654)                                     (151)
                                                                 --------------------                      --------------------                      ----------                      --------------------
Unconsolidated NOI                                                             86,483                                    94,081                          12,967                                    13,427
                                                                                                                                                                                      
Total Consolidated + Unconsolidated NOI                                       237,780                                   262,240                         163,883                                   181,167
Less: Non-Same Store NOI adjustments including Puerto Rico NOI               (36,539)                                  (59,238)                        (31,407)                                  (48,215)
                                                                 --------------------                      --------------------                      ----------                      --------------------
Total SSNOI (including bad debt expense)                                     $201,241                                  $203,002                        $132,476                                  $132,952
                                                                                                                                                                                      
Add: bad debt expense                                                             944                                       509                             670                                       533
                                                                 --------------------                      --------------------                      ----------                      --------------------
Total SSNOI (excluding bad debt expense)                                     $202,185                                  $203,511                        $133,146                                  $133,485
                                                                                                                                                                                      
Total SSNOI (including bad debt expense)                                     $201,241                                  $203,002                        $132,476                                  $132,952
Less: RVI - continental U.S. and disposition assets             (36,963)                                  (38,187)                        (36,963)                                  (38,187)
                                                                 --------------------                      --------------------                      ----------                      --------------------
Total New DDR SSNOI (including bad debt expense)                             $164,278                                  $164,815                         $95,513                                   $94,765
                                                                                                                                                                                      
SSNOI % Change (including bad debt expense)                                    (0.9%)                                                                    (0.4%)
SSNOI % Change (excluding bad debt expense)                                    (0.7%)                                                                    (0.3%)
SSNOI % Change (New DDR)                                                       (0.3%)                                                                      0.8%
                                                                                                                                                                                      
(1)   Excludes major redevelopment activity; see Investments section for
                         additional detail. See calculation definition in the Non-GAAP
                         Measures section.
                          

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180215006215r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180215006215/en/

SOURCE: DDR Corp.

DDR Corp. 
Matthew Ostrower, 212-755-5500 
EVP and Chief Financial Officer


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