Investments in and Advances to Joint Ventures (Tables)

12 Months Ended

Dec. 31, 2014

Summary of Company's Equity Method Joint Ventures Included in Investments in and Advances

The Company’s equity method joint ventures, which are included in Investments in and Advances to Joint Ventures in the Company’s consolidated balance sheet at December 31, 2014, are as follows:

Unconsolidated Real Estate Ventures	Effective Ownership Percentage		Assets Owned
DDR Domestic Retail Fund I		20.0%	56 grocery-anchored retail centers in several states
DDR – SAU Retail Fund, LLC	20.0		23 grocery-anchored retail centers in several states
DDRTC Core Retail Fund, LLC	15.0		26 shopping centers in several states
BRE DDR Retail Holdings III	5.0		70 shopping centers in several states
Other Joint Venture Interests	25.25–79.45		13 shopping centers in several states and a management company
Coventry II Fund	20.0		Three shopping centers in three states

Investments in and Advances to Joint Ventures

Investments in and Advances to Joint Ventures include the following items, which represent the difference between the Company’s investment and its share of all of the unconsolidated joint ventures’ underlying net assets (in millions):

	December 31,
	2014			2013
Company's share of accumulated equity	$	122.9		$	365.3
Redeemable preferred equity and other^(A)		305.3			72.2
Basis differentials		(13.0	)		10.6
Deferred development fees, net of portion related to the Company's interest		(2.5	)		(2.8	)
Amounts payable to DDR		2.1			2.7
Investments in and Advances to Joint Ventures	$	414.8		$	448.0

(A)	Primarily related to $305.3 million and $71.8 million in preferred equity investments in joint ventures with an affiliate of The Blackstone Group L.P. (collectively “Blackstone”), at December 31, 2014 and 2013, respectively.

Schedule of Business Acquisitions

In 2014 and 2013, the Company acquired the following shopping centers (in millions):

Location or Transaction	Date Acquired	Gross Purchase Price		Face Value of Mortgage Debt Assumed
Colorado Springs, CO	April 2014	$	29.4	$	12.9
Roseville, CA	May 2014		89.5		—
Cincinnati, OH	May 2014		29.5		—
Chicago, IL	June 2014		98.0		35.5
Philadelphia, PA	August 2014		31.5		—
Blackstone II Acquisition (seven assets)^(A)	September 2014		395.3		233.3
Erie, PA^(A)	December 2014		15.6		—
Oakland, CA	February 2013		41.1		—
Dallas, TX	March 2013		40.3		—
Tampa, FL; Atlanta, GA; Newport News, VA and Richmond, VA (two assets)^(A)	April 2013		110.5		—
Parcels adjacent to existing shopping centers	June 2013		11.7		—
Orlando, FL and Atlanta, GA	July 2013		258.5		139.4
Blackstone I Acquisition (30 assets)^(A)	October 2013		1,548.4		792.9

(A)

Acquired from various unconsolidated joint ventures in separate transactions. See description of Blackstone Acquisitions below. Due to the change in control that occurred, the Company recorded an aggregate Gain on Change in Control of $4.3 million and $19.9 million for the years ended December 31, 2014 and 2013, respectively, associated with these acquisitions related to the difference between the Company’s carrying value and fair value of its previously held equity interest on the respective acquisition date.

BRE DDR Retail Holdings Joint Venture Acquisitions [Member]

Schedule of Business Acquisitions

The joint ventures were completed on similar terms as follows:

Terms	BRE DDR Retail Holdings II		BRE DDR Retail Holdings III
Date acquired	August 2013		October 2014
Number of centers		7		70
Gross leasable area ("GLA")^(A)	2.3 million		11.4 million
DDR common equity interest (5%)	$3.5 million		$19.6 million
DDR preferred equity interest	$30.0 million		$300.0 million
Preferred equity fixed dividend rate per annum		9.0%		8.5%
Transaction value at 100%	$332.0 million		$1.93 billion
Maximum preferred equity fixed distribution deferral		22.2%		23.5%
Fixed distribution rate per annum for any deferred and unpaid preferred equity distributions		9.0%		8.5%
Mortgage debt assumed at 100%	$206.6 million		$436.8 million
New mortgage financings at 100%	$28.0 million		$800.0 million

(A)	All references to GLA or square feet are unaudited.

Unconsolidated Joint Ventures [Member]

Condensed Combined Financial Information of Company's Unconsolidated Joint Venture Investments

Condensed combined financial information of the Company’s unconsolidated joint venture investments is as follows (in thousands):

	December 31,
	2014			2013
Condensed Combined Balance Sheets
Land	$	1,439,849		$	1,275,232
Buildings		3,854,585			3,940,806
Fixtures and tenant improvements		200,696			266,851
		5,495,130			5,482,889
Less: Accumulated depreciation		(773,256	)		(839,867	)
		4,721,874			4,643,022
Land held for development and construction in progress		55,698			116,088
Real estate, net		4,777,572			4,759,110
Cash and restricted cash		100,812			282,866
Receivables, net		80,508			101,003
Other assets		394,751			196,615
	$	5,353,643		$	5,339,594

Mortgage debt	$	3,552,764		$	3,282,643
Notes and accrued interest payable to DDR^(A)		144,831			127,679
Other liabilities		276,998			245,368
		3,974,593			3,655,690
Redeemable preferred equity		305,310			71,771
Accumulated equity		1,073,740			1,612,133
	$	5,353,643		$	5,339,594
Company's share of Accumulated Equity	$	122,937		$	365,297

(A)	The Company had net amounts receivable from several joint ventures aggregating $2.1 million and $2.7 million at December 31, 2014 and 2013, respectively, which were included in Investments in and Advances to Joint Ventures on the consolidated balance sheets.

Condensed Combined Statements of Operations of Unconsolidated Joint Venture Investments

	For the Year Ended December 31,
	2014			2013			2012
Condensed Combined Statements of Operations
Revenues from operations	$	485,764		$	635,933		$	622,771
Expenses from operations:
Operating expenses		167,691			210,829			200,662
Impairment charges^(A)		21,583			43,913			840
Depreciation and amortization		151,651			201,021			175,225
Interest expense		171,803			204,893			203,205
Other (income) expense, net		18,249			2,298			10,435
		530,977			662,954			590,367
(Loss) income before tax expense and discontinued operations		(45,213	)		(27,021	)		32,404
Income tax expense (primarily Sonae Sierra Brasil), net		(6,565	)		(27,553	)		(25,444	)
(Loss) income from continuing operations		(51,778	)		(54,574	)		6,960
Discontinued operations:
Loss from discontinued operations^(B)		(13,955	)		(65,951	)		(79,705	)
Gain (loss) on disposition of real estate, net of tax^(C)		55,020			(19,190	)		11,739
Loss before gain on disposition of real estate, net		(10,713	)		(139,715	)		(61,006	)
Gain on disposition of real estate, net		10,116			794			54,582
Net loss	$	(597	)	$	(138,921	)	$	(6,424	)
Income attributable to non-controlling interests		(2,022	)		(26,005	)		(42,995	)
Net loss attributable to unconsolidated joint ventures	$	(2,619	)	$	(164,926	)	$	(49,419	)
Company's share of equity in net income of joint ventures^(D)	$	9,218		$	3,314		$	33,512
Basis differential adjustments^(E)		1,771			3,505			1,738
Equity in net income of joint ventures^(D)	$	10,989		$	6,819		$	35,250

(A)	For the years ended December 31, 2014, 2013 and 2012, the Company’s proportionate share was $4.4 million, $6.6 million and $0.4 million, respectively.

(B)

For the years ended December 31, 2014, 2013 and 2012, impairment charges included in discontinued operations related to asset sales were $11.1 million, $49.3 million and $56.3 million, respectively, of which the Company’s proportionate share was $0.8 million, $4.0 million and $0.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. The Company’s share of the impairment charges was reduced by the impact of the other than temporary impairment charges recorded on these investments, as appropriate, as discussed below.

(C)

For the year ended December 31, 2013, the loss primarily was attributable to an investment in the Coventry II Fund in which the Company had a 20% interest. The joint venture recorded a loss of $32.6 million on the transfer of its ownership of one of its properties to the lender. The Company’s share of the loss was zero as the Company had previously written off its investment in this operating property.

(D)	The Company is not recording income or loss from those investments in which its investment basis is zero as the Company does not have the intent or obligation to fund any additional capital in the joint ventures.

(E)

The difference between the Company’s share of net income, as reported above, and the amounts included in the consolidated statements of operations is attributable to the amortization of basis differentials, the recognition of deferred gains and differences in gain (loss) on sale of certain assets recognized due to the basis differentials and other than temporary impairment charges.

Service Fees and Income Earned by Company's Unconsolidated Joint Ventures

Service fees and income earned by the Company through management, financing, leasing and development activities performed related to all of the Company’s unconsolidated joint ventures are as follows (in millions):

	For the Year Ended December 31,
	2014		2013		2012
Management and other fees	$	24.9	$	29.3	$	28.6
Development fees and leasing commissions		6.4		10.0		8.7
Interest income		11.0		16.1		9.7