Salomon Smith Barney March 2003

1
Salomon Smith Barney March 2003
2
Section I
Corporate Overview and Financial Performance
3
DDRs Mission Statement
The leading owner, developer and manager of
market-dominant community shopping centers . .
. . . . provides the very best environments
for the nations most successful retailers .
. . where retailers can offer the most
convenient shopping experience for their
customers at an affordable cost.
4
Company Features
(1) Pro forma 1Q2003. (2) Includes properties
owned and managed as of March 2003. Does not
include DDRs 38 industrial and office
properties. (3) Includes managed properties and
unowned anchors at company-owned shopping
centers as of March 2003.
5
Enhanced National PresencePost-Merger Operating
Portfolio
Strengthens leasing relationships with leading
retailers and maximizes operating efficiency.
2.8 msf (3.6)
3.1 msf (4.1)
8.5 msf (11.1)
2.2 msf (2.8)
2.6 msf (3.4)
3.5 msf (4.6)
2.6 msf (3.4)
2.4 msf (3.2)
2.2 msf (2.9)
76 MSF / 44 States
2.9 msf (3.8)
2.1 msf (2.7)
7.3 msf (9.5)
4.0 msf (5.2)

5.9 msf (7.7)
6
Enhanced National PresencePost-Merger Operating
Development Portfolio
DDR
Existing Properties
Multiple Center Markets
Service Merchandise Properties
Multiple Services Merchandise
New Developments
Managed Properties
JDN
Operating Properties
Development Properties
7
National Presence
DDRs Regional Offices
Development Leasing Operations Leasing
Operations Leasing, Development
Operations Coventry Real Estate Partners
1. Long Beach, CA - Development 2. Sherman Oaks,
CA -Leasing /Operations 3. Salt Lake City, UT -
Leasing /Develop. /Operations 4. Denver, CO -
Leasing 5. Minneapolis, MN - Operations 6. St.
Louis, MO - Leasing /Operations7. Atlanta, GA
Leasing8. Cleveland, OH - Corporate Headquarters
9. New York, NY - Coventry Real Estate
10. Dallas, TX - Leasing 11. Durham, NC
Operations12. Tampa, FL - Operations 13.
Tampa, FL - Leasing 14. Orlando, FL Leasing
8
DDR Business Plan

• Focus on the ownership and management of
  high-quality market-dominant community shopping
  centers
• Cultivate premier relationships with the nations
  
• leading retailers
• Proactively replace underperforming tenants at
  significantly higher rents
• Maximize revenue generation from existing centers
  
• Expansion and redevelopment
• Ancillary income sources

9
DDR Business Plan

• Recycle capital at positive spreads
• Opportunistic acquisitions
• Development of infill sites in major markets
• Engineer innovative JV structures with
  institutional capital partners
• Additional equity source
• Maximize returns on invested equity

10
Historical Stock Price
2x1 Stock SplitAugust 1998
(21.99)
11
Outperformance During Recession
2002 Total Returns
DDR
RMS
DJIA
SPMid Cap
SP Small Cap
Russell 2000
SP500
NASDAQ
12
DDR v. Russell 2000 v. SP 500
10,000 invested at IPO in 1993 . . .
Compound Annual Total ReturnDDR 15.7SP
500 9.2Russell 2000 4.5
42,464
24,016
15,464
SP500
Russell2000
DDR
13
DDR v. Morgan Stanley REIT Index
10,000 invested in 1996 . . .
Compound Annual Total Return DDR 11.7 RMS
5.7
19,402
13,944
DDR
RMS
14
Consistent FFO and Dividend Growth(1)
Based on analysts estimates for 2003,FFO will
have more thantripled dividends willhave more
than doubledsince IPO. Common share
dividendpayout ratio has declined from 82
in1993 to approximately 60 budgeted for
2003. Retained cash flow wasover 40MM in
2001, approximately 50MMin 2002, and is
estimated to exceed 50MM in 2003.
(1) Adjusted to reflect a 21 stock split in
1998.(2) Based on current First Call consensus
estimates.
15
Historical Price/FFO Multiple
DDR Avg. Multiple 10.0
16
Internal Growth Leasing Spreads
Weighted Average
New Leases
Renewals
17
Internal Growth Releasing Contractual Rent
Steps
Average Rent Spread on Releasing 12.0-16.5
Average Contractual Rent Step 7.6
Lease Revenues (Millions)
18
2002 Capital Recycling Retail Property
Acquisitions Dispositions
Acquisitions(1)
Dispositions
Total Dispositions - 313 millionDDRs pro rata
share - 143 millionTotal SF 2.3 MSFWtd.
Avg. Cap Rate 9.0
Total Acquisitions - 538 millionDDRs pro rata
share - 387 millionTotal SF - 4.8 MSFWtd.
Avg. Cap Rate 10.0
Developments Completed
Net Project Cost - 185 millionDDRs pro rata
share - 85 millionTotal SF 2.0 MSFWtd.
Avg. Unleveraged Cash on Cost Return 11.5
(1) Includes three acquisitions made in January
2003.
19
Annualized 3 Year Total Return (2000 - 2002)
20
FFO Growth Rates 2001-2003
2001
-
2002
-
-
-
2002
2003
DDR 5.0 8.0
FRT -4.0 -1.1 KIM 1.3 4.6 NXL 1.1 2.7 REG 4.
7 4.5 WRI 7.2 5.5
Source First Call (as of 3/7/02)
21
FFO Multiple / FFO Growth Rate(1)
(1) FRT (-14.17) not listed.
22
Overall Ranking
Companys Rank (Best to Worst) according to Total
Return, FFO Growth FFO Multiple/FFO Growth Rate
23
Consistent Outperformance
DDR continues to offer income at a favorable
value, outperforming expectations for the REIT
industry
Salomon Smith Barney REITUniverse DDR
Assumes DDR stock price of 22.75 per share.
24
Section II
Retail Industry Overview
25
Shifts in Consumer Preferences
DDR is well positioned to benefit from long-term
trends in the retail industry
From traditional department stores to discount
department stores From enclosed mall anchors
and specialty tenants to community shopping
center discounters From neighborhood
groceries to supercenters
26
Shift to Discount Department Stores
Discount department stores capture market share
at the expense of traditional department stores
Percent of General Merchandise Sales
Source U.S. Census, Property Portfolio
Research.
27
Retail Market Cap Analysis(in Billions, as of
4Q02)
WalMarts market cap alone is seven times larger
than that of the entire traditional department
store sector
Traditional Dept. Store Total 33 Billion
Discount Dept. Store Home Improvement Total
369 Billion
7
6
6
9
3
2
28
Shift to Community CentersRetailers Same Store
Sales Last 24 Mos.
Community Ctr Discount Dept Stores
4.5Power Ctr Hard Goods/Big Box
Retailers 4.2
Community Ctr Retailers 4.1 Mall Anchors
-2.4 Mall Specialty Retailers -3.6
15
10
5
0
(5)
(10)
Source Merrill Lynch Same Store Sales Monitor
(15)
29
Shift to Grocery Supercenters
Traditional grocers market share of U.S.
grocery sales dropped from 85 in 1992 to
approximately 40 in 2001 Supercenter and
wholesale clubs represented over 30 of retail
grocery sales in 2001 WalMarts grocery sales
of 65 billion in 2001 topped Krogers sales of
50 billion, making it the largest grocery
retailer in the country
Source Supermarket News, ICSC, USA Today.
30
WalMart Growth in Supermarket Sales
WalMarts supermarket and pharmacy-related sales
growth is expectedto increase more than 5x
faster than other industry participants sales
Growth in Sales(Percentage)
Source Goldman Sachs September 25, 2002.
31
WalMart Pricing AdvantageSupermarket Related
Sales
On a sample shopping trip, WalMarts supercenter
prices registered 22 below the market average
Avg. Premium to WalMart Prices
Source Goldman Sachs September 25, 2002.
32
WalMart Pricing AdvantageGeneral Merchandise
Sales
On a sample shopping trip, WalMarts general
merchandise prices registered 28 below the
market average
Avg. Premium to WalMart Prices
Beauty
Source Goldman Sachs September 25, 2002.
33
Growth in Retail Supply (Per Capita) v. Retail
Sales (Per Capita)
Over the last 20 years, retail sales per capita
has grownat a higher rate than retail square
feet per capita
Index 1982 100
2001
Source Economy.com, Portfolio Property
Research.
34
Growth in Retail Supply (Per Capita) v. Retail
Sales (Per SF)
Based on the growth of retail sales per square
foot, the utilityof additional retail space is
increasing at a similar rate
Index 1982 100
2001
Source Economy.com, Portfolio Property
Research.
35
Section III
Portfolio Overview
36
Community Center Portfolio
DDRs investment strategy is to own and operate
market dominant community centers that draw
shoppers from the immediate neighborhood as well
as the surrounding trade area.
250,000 - 1,000,000 square foot, open-air
shopping centers 2 or more strong national
tenant anchors such as Wal-Mart, Kohls, Target,
Home Depot, or Lowes 2 or more medium-sized
national big-box tenants such as Best Buy, Bed
Bath Beyond, TJ Maxx, or Michaels 20,000 -
80,000 square feet of small shops 2 - 4
outparcels available for sale or groundlease
37
Post Merger Reliance on Major Tenants(1)
Owned Locations
Percent
Credit
Total Base Rent
of Total
Ratings
Tenant
Units
(millions)
Wal-Mart/Sams Club 29 15.89 4.2 AA/Aa2 Lowes
Home Improvement 16 15.66 4.1 A/A3 Kohls
34 12.46 3.3 A-/A3 T.J. Maxx/Marshalls
51 9.39 2.5 A/A3 PetsMart 39 7.98 2.1 B/Ba3
Best Buy/Musicland Group 28 7.91 2.1 BBB-/Baa3
OfficeMax 37 7.47 2.0 NR/NR Bed Bath
Beyond 32 7.09 1.9 BBB-/NR AMC
Theater 5 5.90 1.5 NR/B2 Kroger
17 5.70 1.5 BBB-/Baa3 Michaels 28 5.09 1.3
BB/Ba1 Gap/Old Navy/Banana Rep. 31 4.81 1.3 BBB-
/Ba3 Barnes Noble 33 4.75 1.2 BB/Ba3 Linens
N Things 13 4.19 1.1 NR/NR Toys R
Us 16 3.66 1.0 BBB/Baa3 Subtotal 409 117.94
31.0Total 390.40 100.0
(1) Based on actual pro rata ownership of real
estate assets, calculated on owned shopping enter
GLA only. Also includes tenants in
Service Merchandise portfolio.
38
Post Merger Major Tenants by of Base
Revenues(1)
State
DDR
JDN
Pro Forma
1. WalMart/Sams Club 4.0
4.8 4.22.
Lowes Home 1.6
12.0 4.1
Improvement 3. Kohls
2.8 4.7
3.3 4. T.J Maxx/Marshalls
2.4 2.8
2.55. PetsMart
1.9 2.8
2.1 6. Best Buy/Musicland 2.3
1.5
2.1 7. Officemax
2.1 1.4
2.0 8. Bed Bath
Beyond 2.5 ---
1.99. AMC Theater
2.0 ---
1.510. Kroger
1.0
3.1 1.5Total
22.5
33.2 25.1
(1) Based on pro rata share of joint venture
assets.
39
Post Merger Major Tenants by GLA
Owned and Unowned Locations
TotalUnits
Total SF(Millions)
Owned Units
Non -Owned Units
Tenant
1. Wal-Mart/Sams
84 12.1 29
552. Lowes Home Improvement
30 3.8 16
14 3. Target/Mervyns 25
2.9 5
20 4. Home Depot
23 2.3 6
17 5. Kohls
35 2.1 34
1 6. T.J. Maxx/Marshalls 51
1.7 51
0 7. Kmart 17 1.5
15 2 8.
Kroger 20 1.2
17 3 9. Best
Buy/Musicland 29
1.1 28
1 10. Bed Bath Beyond
32 1.0 32
0
40
Post Merger Geographic Distributionby of GLA
(1)
State
DDR
JDN
Pro Forma
1. Ohio 14.3
1.1 11.12.
Georgia 1.9 32.9 9.5 3. Florida 8.2 6.4 7.7
4. Texas 5.0 5.6 5.25.
California 6.2 --- 4.6 6.
Michigan 4.2 3.9 4.1 7. South Carolina 4.5
1.9 3.8 8.
Minnesota 4.8 --- 3.69.
Utah 4.5 --- 3.410. Missouri 4.4 0.4 3.4To
tal
58.0 52.1
56.5
(1) Total square feet under management. Assumes
100 ownership of joint venture assets.
41
Case Study HomePlace Retenanting
DDR has consistently demonstrated its ability to
quickly and profitably re-tenant space left from
bankrupt tenants
42
HomePlace Retenanting
Phoenix, AZ Ashleys Furniture 2 82 The Oak
Store 12Denver, CO Cost Plus 5 68 Loehmanns
Furniture 7 Maple Grove, MN Bed Bath Beyond -
0 - 44 Michaels 2Canton, OH HHGregg - 0
- 38
Arhaus 8 Portland, OR Famous Footwear 5 27 Lin
ens N Things 6N. Olmsted, OH Bed Bath
Beyond - 0 - 24 Pier One 5
(1) From lease rejection date to final lease
execution. Letters of intent are typically
signed 30 to 90 days prior to lease execution.
43
HomePlace Retenanting
St. Louis, MO Bed Bath Beyond - 0
- 21 Davids Bridal 8Marietta, GA Ross
Dress 6 17 Cargo Furniture (Pier
1) 12Atlanta, GA Sports Authority 9 14Columbu
s, OH Michaels 8 11 Dress Barn 11 The
Avenue 11Eagan, MN Bed Bath Beyond - 0
- 7 PetsMart 10 San Antonio,
TX OfficeMax 9 4
(1) From lease rejection date to final lease
execution. Letters of intent are typically
signed 30 to 90 days prior to lease execution.
44
Average Annualized Base Rental Rates (as of 4Q02)
15.18
10.58
45
Historical Occupancy Rates
DDR has averaged nearly 96 occupancy since 1987
46
Service Merchandise (as of 4Q02)
Capital Structure
Portfolio
DDR (24.6) 19.5 Klaff Realty
(12.3) 9.7Lubert Adler (61.6)
48.6Special Member (1.5) 1.3Total
Capital 79.1Actual Debt
89.6Anticipated Debt
66.3Total Debt Equity 235.0
Fee Interests Sold, Leases Assigned, Direct
Leases and Subleases 130
Leases Expired or Rejected
76Vacant or Partially Leased 70
Major Tenants
Value City FurnitureDSW Shoe WarehouseTJ
Maxx/MarshallsBed Bath BeyondDollar Tree
PetsMart Best Buy Circuit CityA.C. Moore
Fees to DDR
Management Development
47
Section V
DDR/JDN Merger Overview
48
Traffic Generating Anchors(1)

• 75 of DDR assets and approximately 55 of JDN
  assets have either a discount or traditional
  department store
• 50 of DDR assets and approximately 40 of JDN
  assets have a grocery component
• 40 of DDR assets and over 20 of JDN assets have
  both a home improvement store and a discount or
  traditional department store
• Over 45 of DDR revenues and over 60 of JDN
  revenues are generated by short term leases to
  specialty store tenants
• (1)Includes unowned anchors

49
Highly Accretive Use of DDR Stock
Overall capitalization rate of 9.8, or 10.6
after adjusting for the impact of non-income
producing land assets Estimated annual accretion
of 5 reflects dilutive impact of land
assets Further accretion potential as
development is completed and pipeline is built
out However, anticipated sales of certain
non-core retail assets will dilute total accretion
50
Land and Development PortfoliosProvide Future
Upside
DDR uniquely qualified to incorporate JDNs
development portfolio into its existing
operations Properties currently under
development create embedded growth DDRs strong
tenant relationships will enhance the
profitability of the development
pipeline Potential sale of land and outparcel
portfolio, comprised of over 600 acres, provides
additional opportunity to raise capital
accretively
51
Development Portfolio
52
JDN Development Portfolio

• JDN has 19 development projects currently under
  construction
• Total GLA is 6.3 MSF. Total owned GLA is 3.0
  MSF, of which over 1.5 MSF is open and
  operating
• Total cost to complete as of 1Q03 is
  approximately 46MM
• Over 80 pre-leased
• Estimated annual NOI of over 33MM
• DDR will pursue 9 former JDN pipeline development
  projects
• Total GLA is approximately 1.9 MSF
• Total project cost is approximately 120MM
• Estimated annual NOI of approximately 13MM

53
DDR Development Portfolio

• DDR has 7 development projects currently under
  construction
• Total GLA is 3.0 MSF. Total owned GLA is
  approximately 2.0 MSF, of which approximately
  900,000 square feet is open and operating
• Total cost to DDR to complete as of 1Q03 was
  estimated to be approximately 104MM
• DDR has 6 pipeline development projects
• Total GLA is approximately 2.6 MSF
• Total estimated project cost of approximately
  260MM

54
Leverages Existing Platform
55
Improves Industry Position
Transaction represents an excellent fit of core
assets for DDR, plus a pipeline of development
opportunities where DDR can use its core skills
to add value on an ongoing basis Strengthens
DDRs position as the nations leading owner,
operator and developer of market-dominant
community shopping centers Increases DDRs
market capitalization by over 35 to 5
billion Creates the largest shopping center REIT
by market capitalization and by GLA under
management
56
(No Transcript)