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Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Table of Contents


Section		Page
Earnings Release & Financial Statements
Press Release		1-16

Financial Summary
Financial Highlights		17
Financial Ratios		18
Total Market Capitalization Summary		19
Debt to EBITDA Calculation		20
Significant Accounting Policies		21-22
Other Real Estate Information		23
Reconciliation of Non-GAAP Financial Measures		24-27

Joint Venture Financial Summary
Joint Venture Investment Summary		28
Joint Venture Combining Financial Statements		29

Investment Summary
Acquisitions and Dispositions		30
Developments and Redevelopments		31-32
Projects Primarily on Hold		33

Portfolio Summary
Portfolio Characteristics		34
Brazil and Puerto Rico Portfolio Characteristics		35
Leased Rate and Average Annualized Base Rental Rates		36
Leasing Summary		37
Leasing Summary of Formerly Vacant Spaces		38
Net Effective Rents		39
Lease Expirations		40
Largest Tenants by Owned and Managed GLA		41
Largest Tenants by GLA and Base Rental Revenues		42

Debt Summary
Summary of Consolidated Debt		43
Summary of Joint Venture Debt		44
Consolidated Debt Detail		45-47
Joint Venture Debt Detail		48-50

Investor Contact Information
Investor Information		51

Property list available online at http://www.ddr.com

Developers Diversified Realty Corporation considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectations for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause the results of the Company to differ materially from those indicated by such forward-looking statements, including among other factors, local conditions such as oversupply of space or a reduction in demand for real estate in the area, competition from other available space, dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; constructing properties or expansions that produce a desired yield on investment; ability to sell assets on commercially reasonable terms; ability to secure equity or debt financing on commercially acceptable terms or at all; or 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; and the finalization of the financial statements for the three- and nine-month periods ended September 30, 2010. For additional factors that could cause the results of the Company to differ materially from these indicated in the forward-looking statements, please refer to the Company’s Form 10-K as of December 31, 2009. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

DEVELOPERS DIVERSIFIED REALTY CORPORATION

For Immediate Release:


	Media Contact:		Investor Contact:
	Scott Schroeder		Kate Deck
	216-755-5500		216-755-5500
	sschroeder@ddr.com		kdeck@ddr.com

DEVELOPERS DIVERSIFIED REALTY REPORTS OPERATING FFO PER
DILUTED SHARE OF $0.25 FOR THE QUARTER ENDED
SEPTEMBER 30, 2010 BEFORE NON-OPERATING ITEMS

BEACHWOOD, OHIO, October 25, 2010 — Developers Diversified Realty Corporation (NYSE: DDR) today announced operating results for the third quarter ended September 30, 2010.

SIGNIFICANT THIRD QUARTER ACTIVITY

	•		Reported operating FFO of $0.25 per diluted share before non-operating items

	•		Executed a Company record 503 total leases for 2.9 million square feet as compared to 477 total leases in the second quarter of 2010 and 433 total leases in the third quarter of 2009

	•		Increased the core portfolio leased rate to 92.0% at September 30, 2010 from 91.6% at June 30, 2010 and 90.9% at September 30, 2009

	•		Improved the spread on new leases to +6.9% and renewals to +4.5% for a blended overall spread of +5.0%, which compares to a blended spread of +3.9% in the second quarter of 2010

	•		Reported Same Store Net Operating Income growth of 2.0% as compared to an increase of 1.5% in the second quarter of 2010 and a decrease of 4.1% in the third quarter of 2009

	•		Issued $300 million aggregate principal amount of senior unsecured notes due September 2020

	•		Reduced consolidated indebtedness by nearly $242.7 million to $4.4 billion at September 30, 2010

	•		Invested $58.3 million in loans secured by prime shopping centers

	•		Issued 5.1 million common shares for $58.3 million

	•		Sold $76.7 million of non-prime assets, including joint venture partners’ share

	•		In October 2010, refinanced unsecured credit facilities and extended the maturity to February 2014

“Our third quarter operating results illustrate our continued focus and execution of strategic objectives. Specifically, the leasing momentum experienced in our portfolio has resulted in base rent and same store NOI growth as well as occupancy gains. Non-prime asset sales, further deleveraging of our balance sheet, the renewal of our unsecured line of credit and overall extension of our debt maturity profile also contributed to our considerable progress,” commented Developers Diversified’s president and chief executive officer, Daniel B. Hurwitz.

FINANCIAL HIGHLIGHTS

The Company’s third quarter operating Funds From Operations (“FFO”) was $63.2 million, or $0.25 per diluted share, before $26.1 million of net charges. For the nine-month period ended September 30, 2010 the Company reported operating FFO of $193.4 million, or $0.77 per diluted share, before $160.7 million of net charges.

The charges and gains, primarily non-cash, for the periods ended September 30, 2010, are summarized as follows (in millions):


	Three Months			Nine Months
Non-cash impairment charges — consolidated assets	$	5.1		$	78.2
Less portion of impairment charges allocated to non-controlling interests		—			(31.2	)
Executive separation charge		—			2.1
Gain on debt retirement, net		(0.3	)		(0.3	)
Non-cash loss on equity derivative instruments related to Otto investment		11.3			14.6
Litigation, debt extinguishment costs and other expenses, net of tax		3.9			16.0
Loss on asset sales and impairment charges — equity method investments		3.0			6.4
Consolidated loss on sales and impairment charges — discontinued operations		7.3			75.3
Gain on deconsolidation of interests, net		(5.2	)		(5.2	)
FFO associated with Mervyns joint venture, net of non-controlling interest		1.0			4.8

	$	26.1		$	160.7

FFO applicable to common shareholders for the three-month period ended September 30, 2010, including the above net charges, was $37.1 million, or $0.14 per diluted share, which compares to a FFO loss of $90.1 million, or $0.54 per diluted share, for the prior-year comparable period.

FFO applicable to common shareholders for the nine-month period ended September 30, 2010, including the above net charges, was $32.7 million, or $0.13 per diluted share, which compares to a FFO loss of $116.6 million, or $0.80 per diluted share, for the prior-year comparable period. The increase in FFO for both the three- and nine-month periods ended September 30, 2010, is primarily the result of a decrease in impairment-related charges, gain on debt retirement and the equity derivative adjustment associated with the Otto investment.

Net loss applicable to common shareholders for the three-month period ended September 30, 2010, was $24.9 million, or $0.10 per diluted share, which compares to a net loss of $148.4 million, or $0.90 per diluted share, for the prior-year comparable period.

Net loss applicable to common shareholders for the nine-month period ended September 30, 2010, was $156.8 million, or $0.65 per diluted share, which compares to a net loss of $308.7 million, or $2.11 per diluted share, for the prior-year comparable period. The decrease in net loss for both the three- and nine-month periods ended September 30, 2010, is primarily due to the same factors impacting FFO for the comparable periods.

LEASING & PORTFOLIO OPERATIONS

The following results for the three-month period ended September 30, 2010, highlight continued strong leasing activity throughout the portfolio, including a Company record for executed deals:

	•		Executed 191 new leases aggregating approximately 1.0 million square feet and 312 renewals aggregating approximately 1.9 million square feet. In total, the Company executed approximately 2.9 million square feet of leases.

	•		Total portfolio average annualized base rent per occupied square foot, excluding assets in Brazil, as of September 30, 2010 was $12.44, as compared to $12.50 at September 30, 2009. Including the Brazil portfolio, total portfolio average annualized base rent per occupied square foot as of September 30, 2010 was $13.26, as compared to $12.82 at September 30, 2009.

	•		The core portfolio leased rate was 92.0% as of September 30, 2010, as compared to 90.9% at September 30, 2009. The core portfolio and the Brazil portfolio leased rate was 92.2% at September 30, 2010.

	•		On a cash basis, including the Brazil portfolio, rental rates for new leases increased by 6.9% over prior rents and renewals increased by 4.5% as compared to an increase of 6.0% and 3.9%, respectively, for the U.S.-portion of the portfolio. On a blended basis, including the Brazil portfolio, leasing spreads increased by 5.0% during the quarter as compared to an increase of 4.3% for the U.S.-portion of the portfolio. The increase in leasing spreads for new leases marks an improvement from the increase of 3.9% for the portfolio reported in the second quarter of 2010.

	•		Same store net operating income (“NOI”) increased 2.0% for the three-month period ended September 30, 2010 over the prior-year comparable period.

DISPOSITIONS

The Company sold 11 consolidated shopping centers, aggregating approximately 0.7 million square feet, in the third quarter of 2010, generating gross proceeds of approximately $48.9 million. The Company recorded an aggregate net gain of approximately $0.9 million related to asset sales in the third quarter.

In the third quarter of 2010, one of the Company’s joint ventures sold a shopping center, aggregating approximately 0.4 million square feet, generating gross proceeds of approximately $27.2 million. The joint venture recorded an aggregate net loss of approximately $13.3 million related to the asset sale in the third quarter of which the Company’s proportionate share was approximately $2.8 million.

CAPITAL MARKETS ACTIVITIES

In October 2010, the Company entered into a new unsecured credit facility arranged by JP Morgan Chase Bank, N.A. and Wells Fargo Bank, N.A. The size of the facility was reduced to $950 million with an accordion feature up to $1.2 billion. In addition, the Company also entered into a new $65 million unsecured credit facility with PNC Bank, N.A. Both facilities mature in February 2014. The Company’s borrowings under these facilities bear interest at variable rates based on LIBOR plus 275 basis points and as determined by the Company’s current corporate credit ratings from Moody’s and S&P.

In October 2010, the Company amended its secured term loan with KeyBank National Association to conform the covenants to the new revolving credit facility provisions and repaid $200 million of the outstanding balance.

In September 2010, the Company sold approximately 5.1 million of its common shares through its continuous equity program, generating gross proceeds of $58.3 million. Proceeds from the equity issuance were used to fund $58.3 million of investments in loans secured by prime shopping centers.

In August 2010, the Company issued $300 million, aggregate principal amount of 7.875% senior unsecured notes due September 2020. Proceeds from the offering were used to repay amounts outstanding on the Company’s unsecured credit facilities.

2010 GUIDANCE

There is no change in guidance since the last update provided on April 22, 2010. The Company continues to estimate operating FFO for the year of $1.00-$1.05 per diluted share.

NON-GAAP DISCLOSURES

FFO is a supplemental non-GAAP financial measurement used as a standard in the real estate industry and a widely accepted measure of real estate investment trust (“REIT”) performance. Management believes that FFO and operating FFO provide additional indicators of the financial performance of a REIT. The Company also believes that FFO and operating FFO more appropriately measure the core operations of the Company and provide benchmarks to its peer group. Neither FFO nor operating FFO represents cash generated from operating activities in accordance with generally accepted accounting principles (“GAAP”), is necessarily indicative of cash available to fund cash needs and should be considered as an alternative to net income computed in accordance with GAAP as an indicator of the Company’s operating performance or as an alternative to cash flow as a measure of liquidity. FFO is defined and calculated by the Company as net income, adjusted to exclude: (i) preferred share dividends, (ii) gains from disposition of depreciable real estate property, except for those sold through the Company’s merchant building program, which are presented net of taxes, and those gains that represent the recapture of a previously recognized impairment charge, (iii) extraordinary items and (iv) certain non-cash items. These non-cash items principally include real property depreciation and amortization of intangibles, equity income from joint ventures and equity income from non-controlling interests and adding the Company’s proportionate share of FFO from its unconsolidated joint ventures and non-controlling interests, determined on a consistent basis. The Company calculates operating FFO by excluding the non-operating charges and gains described above. Other real estate companies may calculate FFO and operating FFO in a different manner. FFO excluding the net non-operating items detailed above is useful to investors as the Company removes these charges and gains to analyze the results of its operations and assess performance of the core operating real estate portfolio. A reconciliation of net (loss) income to FFO and operating FFO is presented in the financial highlights section.

SAFE HARBOR

Developers Diversified Realty Corporation considers portions of this information to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company’s expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, local conditions such as oversupply of space or a reduction in demand for real estate in the area; competition from other available space; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; constructing properties or expansions that produce a desired yield on investment; our ability to sell assets on commercially reasonable terms; 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; and the finalization of the financial statements for the three-month period ended September 30, 2010. For additional factors that could

cause the results of the Company to differ materially from these indicated in the forward-looking statements, please refer to the Company’s Form 10-K as of December 31, 2009. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

ABOUT DEVELOPERS DIVERSIFIED REALTY CORPORATION

Developers Diversified owns and manages approximately 590 retail operating and development properties in 41 states, Brazil, Canada and Puerto Rico. Totaling more than 134 million square feet, the Company’s shopping center portfolio features open-air, value-oriented neighborhood and community centers, mixed-use centers and lifestyle centers located in prime markets with stable populations and high-growth potential. Developers Diversified is the largest landlord in Puerto Rico and owns a premier portfolio of regional malls in and around Sao Paulo, Brazil. Developers Diversified is a self-administered and self-managed REIT operating as a fully integrated real estate company. Additional information about the Company is available at www.ddr.com.

CONFERENCE CALL INFORMATION & SUPPLEMENTAL MATERIALS

A copy of the Company’s Supplemental Financial/Operational package is available to all interested parties upon request at the Company’s corporate office to Kate Deck, Investor Relations Director, Developers Diversified Realty Corporation, 3300 Enterprise Parkway, Beachwood, Ohio 44122 or at www.ddr.com.

The Company will hold its quarterly conference call tomorrow, October 26, 2010 at 10:00 a.m. Eastern Daylight Time. To participate, please dial 866.730.5764 (domestic), or 857.350.1588 (international) at least ten minutes prior to the scheduled start of the call. When prompted, provide the passcode: 27714456. Access to the live call and replay will also be available through the Company’s website. The replay will be available through November 26, 2010.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)


	Three-Month Periods						Nine-Month Periods
	Ended September 30,						Ended September 30,
	2010			2009			2010			2009
Revenues:
Minimum rents ^(A)	$	133,549		$	130,938		$	401,606		$	395,319
Percentage and overage rents ^(A)		1,016			1,183			3,700			4,397
Recoveries from tenants		44,431			42,475			133,242			131,232
Ancillary and other property income		5,846			5,223			15,330			14,884
Management, development and other fee income		12,961			14,693			40,122			43,194
Other ^(B)		995			1,191			6,803			6,172

		198,798			195,703			600,803			595,198

Expenses:
Operating and maintenance ^(C)		33,676			34,521			104,599			99,734
Real estate taxes		29,518			26,023			82,466			76,827
Impairment charges ^(D)		5,063			500			78,189			12,739
General and administrative ^(E)		20,180			25,886			62,546			73,469
Depreciation and amortization		54,903			51,379			165,544			164,017

		143,340			138,309			493,344			426,786

Other income (expense):
Interest income		1,614			3,257			4,425			9,420
Interest expense ^(F)		(53,774	)		(52,736	)		(166,809	)		(161,691	)
Gain on debt retirement, net ^(F)		333			23,881			333			142,360
Loss on equity derivative instruments ^(G)		(11,278	)		(118,174	)		(14,618	)		(198,199	)
Other income (expense) ^(H)		(3,899	)		2,235			(18,398	)		(8,897	)

		(67,004	)		(141,537	)		(195,067	)		(217,007	)

Loss from continuing operations before equity in net loss of joint ventures, tax (expense) benefit of taxable REIT subsidiaries and state franchise and income taxes, and gain on disposition of real estate, net of tax		(11,546	)		(84,143	)		(87,608	)		(48,595	)
Equity in net loss of joint ventures ^(I)		(4,801	)		(183	)		(3,777	)		(8,984	)
Impairment of joint venture investments ^(D)		—			(61,200	)		—			(101,571	)
Tax (expense) benefit of taxable REIT subsidiaries and state franchise and income taxes		(1,120	)		(610	)		1,518			(426	)

Loss from continuing operations		(17,467	)		(146,136	)		(89,867	)		(159,576	)
Income (loss) from discontinued operations ^(J)		1,562			(1,642	)		(73,704	)		(165,523	)

Loss before gain on disposition of real estate		(15,905	)		(147,778	)		(163,571	)		(325,099	)
Gain on disposition of real estate, net of tax		145			7,128			61			8,222

Net loss		(15,760	)		(140,650	)		(163,510	)		(316,877	)
Loss attributable to non-controlling interests		1,450			2,804			38,378			39,848

Net loss attributable to DDR	$	(14,310	)	$	(137,846	)	$	(125,132	)	$	(277,029	)

Net loss applicable to common shareholders	$	(24,877	)	$	(148,413	)	$	(156,834	)	$	(308,731	)

Funds From Operations (“FFO”):
Net loss applicable to common shareholders	$	(24,877	)	$	(148,413	)	$	(156,834	)	$	(308,731	)
Depreciation and amortization of real estate investments		53,026			51,635			161,769			170,236
Equity in net loss of joint ventures ^(I)		4,801			183			3,777			8,557
Joint ventures’ FFO ^(I)		10,457			13,584			32,319			32,553
Non-controlling interests (OP Units)		8			8			24			167
Gain on disposition of depreciable real estate		(6,339	)		(7,130	)		(8,394	)		(19,405	)

FFO applicable to common shareholders		37,076			(90,133	)		32,661			(116,623	)
Preferred dividends		10,567			10,567			31,702			31,702

FFO	$	47,643		$	(79,566	)	$	64,363		$	(84,921	)

Per share data:
Earnings per common share
Basic	$	(0.10	)	$	(0.90	)	$	(0.65	)	$	(2.11	)

Diluted	$	(0.10	)	$	(0.90	)	$	(0.65	)	$	(2.11	)

Basic — average shares outstanding		249,139			165,073			241,679			146,151

Diluted — average shares outstanding		249,139			165,073			241,679			146,151

Dividends Declared	$	0.02		$	0.02		$	0.06		$	0.42

Funds From Operations — Basic ^(K)	$	0.15		$	(0.54	)	$	0.13		$	(0.80	)

Funds From Operations — Diluted ^(K)	$	0.14		$	(0.54	)	$	0.13		$	(0.80	)

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)

Selected Balance Sheet Data ^(L)


	September 30, 2010			December 31, 2009
Assets:
Real estate and rental property:
Land	$	1,834,172		$	1,971,782
Buildings		5,451,694			5,694,659
Fixtures and tenant improvements		320,067			287,143

		7,605,933			7,953,584
Less: Accumulated depreciation		(1,412,607	)		(1,332,534	)

		6,193,326			6,621,050
Land held for development and construction in progress		817,742			858,900
Real estate held for sale, net		2,471			10,453

Real estate, net		7,013,539			7,490,403

Investments in and advances to joint ventures ^(M)		417,750			420,541
Cash		21,335			26,172
Restricted cash		14,383			95,673
Notes receivable, net		119,585			74,997
Receivables, including straight-line rent, net		134,066			146,809
Other assets, net		156,421			172,011

	$	7,877,079		$	8,426,606


Liabilities & Equity:
Indebtedness:
Revolving credit facilities	$	483,138		$	775,028
Unsecured debt		1,746,387			1,689,841
Mortgage and other secured debt		2,165,777			2,713,794

		4,395,302			5,178,663
Dividends payable		12,044			10,985
Equity derivative liability ^(G)		70,698			56,080
Other liabilities		229,226			227,915

Total liabilities		4,707,270			5,473,643

Redeemable operating partnership units		627			627

Preferred shares		555,000			555,000
Common shares ^(K)		25,616			20,174
Paid-in-capital		3,813,293			3,374,528
Accumulated distributions in excess of net income		(1,278,423	)		(1,098,661	)
Deferred compensation obligation		12,984			17,838
Accumulated other comprehensive income		14,283			9,549
Less: Common shares in treasury at cost		(11,887	)		(15,866	)
Non-controlling interests		38,316			89,774

Total equity		3,169,182			2,952,336

	$	7,877,079		$	8,426,606

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)


(A)		Base and percentage rental revenues for the nine-month period ended September 30, 2010, as compared to the prior-year comparable period, increased $6.2 million primarily due to the acquisition of three shopping centers and the completion of certain developments in 2009 which generated an additional $8.0 million in revenues. Store closings related to major tenant bankruptcies in the first quarter of 2009 contributed an approximate $3.0 million decrease in revenues offset by other increases in operating assets of $1.2 million. Included in rental revenues for the nine-month periods ended September 30, 2010 and 2009, is approximately $1.7 million and $2.5 million, respectively, of revenue resulting from the recognition of straight-line rents, including discontinued operations.

(B)		Other revenues were comprised of the following (in millions):


	Three-Month Periods				Nine-Month Periods
	Ended September 30,				Ended September 30,
	2010		2009		2010		2009
Lease termination fees	$	0.5	$	0.8	$	4.1	$	3.4
Financing fees		0.3		0.2		0.7		0.9
Other miscellaneous		0.2		0.2		2.0		1.9

	$	1.0	$	1.2	$	6.8	$	6.2

(C)

Operating and maintenance expense, including discontinued operations, includes the following expenses (in millions):


	Three-Month Periods				Nine-Month Periods
	Ended September 30,				Ended September 30,
	2010		2009		2010		2009
Bad debt expense	$	2.9	$	4.8	$	10.2	$	10.8
Ground rent expense ^(a)		1.2		1.3		3.7		3.5


(a)		Includes non-cash expense of approximately $0.5 million and $0.6 million for the three-month periods ended September 30, 2010 and 2009, respectively, and approximately $1.5 million and $1.4 million for the nine-month periods ended September 30, 2010 and 2009, respectively, related to straight-line ground rent expense.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)

(D)

The Company recorded impairment charges during the three- and nine-month periods ended September 30, 2010 and 2009, on the following consolidated assets and investments because the book basis of the assets was in excess of the estimated fair market value (in millions):


	Three-Month Periods				Nine-Month Periods
	Ended September 30,				Ended September 30,
	2010		2009		2010		2009
Land held for development ⁽¹⁾	$	—	$	—	$	54.3	$	—
Undeveloped land		—		—		4.9		0.4
Assets marketed for sale		5.1		0.5		19.0		12.3

	$	5.1	$	0.5	$	78.2	$	12.7


Sold assets included in discontinued operations ⁽²⁾		2.0		2.2		29.5		71.9
Assets formerly occupied by Mervyns included in discontinued operations ⁽³⁾		—		—		35.3		61.0

Total discontinued operations		2.0		2.2		64.8		132.9


Joint venture investments		—		61.2		—		101.6

Total impairment charges	$	7.1	$	63.9	$	143.0	$	247.2


(1)		Amounts reported in 2010 relate to land held for development in Togliatti and Yaroslavl, Russia, of which the Company’s proportionate share was $41.9 million after adjusting for the allocation of loss to the non-controlling interest in this consolidated joint venture.

(2)		See summary of discontinued operations activity in note (J).

(3)		The Company’s proportionate share of these impairments was $16.5 million and $29.7 million, after adjusting for the allocation of loss to the non-controlling interest in this previously consolidated joint venture for the nine-month periods ended September 30, 2010 and 2009, respectively. As discussed in note (L), these assets were deconsolidated in the third quarter of 2010 and all operating results have been reclassified as discontinued operations.

(E)

General and administrative expenses include internal leasing salaries, legal salaries and related expenses associated with the releasing of space, which are charged to operations as incurred. For the nine-month periods ended September 30, 2010 and 2009, general and administrative expenses were approximately 5.0% and 5.6% of total revenues, respectively, including joint venture and managed property revenues. During the nine months ended September 30, 2010, the Company incurred a $2.1 million separation charge relating to the departure of an executive officer. Excluding this charge, general and administrative expenses were 4.9% of total revenues for the nine months ended September 30, 2010. During the nine months ended September 30, 2009, the Company recorded a non-cash charge of $15.4 million as a result of the change in control provisions included in the Company’s equity-based award plans in 2009. Excluding this charge, general and administrative expenses were 4.5% of total revenues for the nine-month period ended September 30, 2009.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)

(F)

The Company recorded the following in connection with its outstanding convertible debt (in millions):


	Three-Month Period				Nine-Month Period
	Ended September 30,				Ended September 30,
	2010		2009		2010		2009
Non-cash interest expense related to amortization of the debt discount	$	1.4	$	2.7	$	5.2	$	9.8
Non-cash adjustment to gain on repurchase		—		2.4		4.8		17.0


(G)		Represents the non-cash impact of the valuation adjustments of the equity derivative instruments (warrants) issued as part of the share purchase transaction completed in 2009, as a result of changes in the Company’s stock price. The liability will be reclassified into equity upon ultimate exercise or expiration of the warrants.

(H)		Other (expenses) income were comprised of the following (in millions):


	Three-Month Period Ended						Nine-Month Period
	September 30,						Ended September 30,
	2010			2009			2010			2009
Litigation-related expenses ⁽¹⁾	$	(3.5	)	$	(0.6	)	$	(13.5	)	$	(4.3	)
Debt extinguishment costs		0.3			(0.3	)		(3.3	)		(0.3	)
Note receivable reserve		—			—			0.1			(5.4	)
Gain from change in control		—			0.4			—			0.4
Sale of MDT units		—			3.5			—			2.7
Abandoned projects and other expenses		(0.7	)		(0.8	)		(1.7	)		(2.0	)

	$	(3.9	)	$	2.2		$	(18.4	)	$	(8.9	)


(1)		The nine-month period ended September 30, 2010 includes a $5.1 million reserve recorded in connection with a legal matter at a property in Long Beach, California. This reserve was offset by a tax benefit of approximately $2.4 million, classified in the tax expense (benefit) line item in the statement of operations, because the asset is owned through the Company’s taxable REIT subsidiary. Total litigation-related expenditures, net of the tax benefit, were $3.5 million and $11.1 million for the three- and nine-month periods ended September 30, 2010, respectively.

(I)

At September 30, 2010 and 2009, the Company owned joint venture interests, excluding consolidated joint ventures, in 245 and 318 shopping center properties, respectively. See pages 14-16 of this release for a summary of the combined condensed operating results and select balance sheet data of the Company’s unconsolidated joint ventures.

(J)

The operating results relating to assets classified as discontinued operations are summarized as follows:


	Three-Month Periods						Nine-Month Periods
	Ended September 30,						Ended September 30,
	2010			2009			2010			2009
Revenues from operations	$	2,084		$	8,762		$	9,913		$	37,830


Operating expenses		1,571			5,326			7,754			19,275
Impairment charges		2,000			2,153			64,833			132,924
Interest, net		2,473			4,588			9,588			17,822
Depreciation and amortization		588			2,785			4,061			13,367

Total expenses		6,632			14,852			86,236			183,388

Loss before disposition of real estate		(4,548	)		(6,090	)		(76,323	)		(145,558	)
Gain on deconsolidation of interests		5,221			—			5,221			—
Gain (loss) on disposition of real estate, net		889			4,448			(2,602	)		(19,965	)

Net income (loss)	$	1,562		$	(1,642	)	$	(73,704	)	$	(165,523	)

Discontinued operations for all periods presented include the activity associated with the 50% owned joint venture, DDR MDT MV LLC (“MV LLC”), which was deconsolidated during the three-month period ended September 30, 2010. See further discussion in note (L).

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Financial Highlights
(In thousands — except per share data)

(K)

For purposes of computing FFO and operating FFO per share, the following share information was utilized (in millions):


	At September 30,
	2010		2009
Common shares outstanding		256.2		196.6
OP Units outstanding (“OP Units”)		0.4		0.4


	Three-Month Periods				Nine-Month Periods
	Ended September 30,				Ended September 30,
	2010		2009		2010		2009
Weighted average common shares outstanding		251.2		165.1		243.3		146.1

Assumed conversion of OP Units		0.4		0.4		0.4		0.4

FFO Weighted average common shares and OP Units — Basic		251.6		165.5		243.7		146.5

FFO Weighted average common shares and OP Units — Diluted for FFO Loss		N/A		165.5		N/A		146.5

Assumed conversion of dilutive securities		6.3		4.0		6.5		2.1

FFO Weighted average common shares and OP Units — Diluted for FFO Income		257.9		N/A		250.2		N/A

Operating FFO Weighted average common shares and OP Units —Diluted		257.9		169.5		250.2		148.6

(L)

The December 31, 2009 balance sheet reflects the consolidation of a 50% owned joint venture, MV LLC, which as of that date owned 31 sites formerly occupied by Mervyns.


	December 31, 2009
Real estate, net	$	218.7
Restricted cash	$	50.5
Mortgage debt	$	225.4
Non-controlling interests	$	22.4

In August 2010, the 25 assets owned by MV LLC were placed in the control of a court appointed receiver and as a result, the entity that holds the assets and nonrecourse mortgage loan was deconsolidated for accounting purposes pursuant to the provisions of Accounting Standards Codification No. 810, “Consolidation” (“ASC 810”). Upon deconsolidation, the Company recorded a gain of approximately $5.6 million because the carrying value of the nonrecourse debt exceeded the carrying value of the collateralized assets. Following the deconsolidation, the Company will no longer have any economic rights or obligations in MV LLC. The revenues and expenses associated with MV LLC for the current and prior periods, including the $5.6 million gain, are classified within discontinued operations in the statements of operations.

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Summary Results of Combined Unconsolidated Joint Ventures
(In thousands)

Combined condensed income statements


	Three-Month Periods						Nine-Month Periods
	Ended September 30,						Ended September 30,
	2010			2009			2010			2009
Revenues from operations ^(A)	$	169,730		$	206,423		$	507,766		$	617,278


Operating expenses		60,838			81,076			196,846			237,446
Impairment charges ^(B)		8,815			—			19,737			—
Depreciation and amortization of real estate investments		47,684			57,267			143,227			172,153
Interest expense		54,025			78,686			174,186			219,696

		171,362			217,029			533,996			629,295

Loss from operations before tax expense and discontinued operations		(1,632	)		(10,606	)		(26,230	)		(12,017	)
Income tax expense		(4,114	)		(2,513	)		(13,947	)		(7,065	)
Loss from discontinued operations, net of tax		(2,192	)		(1,682	)		(4,110	)		(35,263	)
Loss on disposition of discontinued operations, net of tax ^(C)		(13,340	)		(13,767	)		(25,303	)		(19,852	)
(Loss) gain on disposition of assets ^(D)		—			(74	)		17			(26,815	)
Other, net ^(E)		—			(3,602	)		—			5,833

Net loss	$	(21,278	)	$	(32,244	)	$	(69,573	)	$	(95,179	)

Net loss at DDR ownership interests ^(F)	$	(4,193	)	$	(1,302	)	$	(4,362	)	$	(12,375	)

FFO at DDR’s ownership interest ^(G)	$	10,457		$	13,584		$	32,319		$	32,553

Combined condensed balance sheets


	September 30, 2010			December 31, 2009
Land	$	1,605,772		$	1,782,431
Buildings		4,858,997			5,207,234
Fixtures and tenant improvements		150,455			146,716

		6,615,224			7,136,381
Less: Accumulated depreciation		(707,053	)		(636,897	)

		5,908,171			6,499,484
Land held for development and construction in progress ^(H)		173,293			130,410

Real estate, net		6,081,464			6,629,894
Receivables, including straight-line rent, net		126,394			113,630
Leasehold interests		10,586			11,455
Other assets, net		305,909			342,192

	$	6,524,353		$	7,097,171


Mortgage debt ^(I)	$	3,997,117		$	4,547,711
Notes and accrued interest payable to DDR		85,780			73,477
Other liabilities		211,362			194,065

		4,294,259			4,815,253
Accumulated equity		2,230,094			2,281,918

	$	6,524,353		$	7,097,171

DEVELOPERS DIVERSIFIED REALTY CORPORATION
Summary Results of Combined Unconsolidated Joint Ventures
(In thousands)


(A)		Revenues for the three- and nine-month periods include the following (in millions):


	Three-Month Periods				Nine-Month Periods
	Ended September 30,				Ended September 30,
	2010		2009		2010		2009
Straight-line rents	$	0.9	$	1.4	$	3.0	$	3.0
DDR’s proportionate share		0.1		0.2		0.4		0.3

(B)		For the three and nine months ended September 30, 2010, impairment charges were recorded on three and four assets, respectively, of which the Company’s proportionate share of the loss was approximately $0.3 million and $0.7 million, respectively.

(C)		Loss on disposition of discontinued operations includes the sale of properties by four separate unconsolidated joint ventures in the first nine months of 2010. In 2009, $170.9 million of impairment charges were recorded by these joint ventures in anticipation of the sales transactions. The Company’s proportionate share of the loss for the assets sold during the three- and nine-month periods ended September 30, 2010 was approximately $2.8 and $4.1 million, respectively.

		Loss on disposition of discontinued operations included the sale of 12 properties by three separate unconsolidated joint ventures for the nine months ended September 30, 2009, resulting in a loss of $19.9 million of which the Company’s proportionate share was $1.4 million.

(D)		In the first quarter of 2009, an unconsolidated joint venture disposed of a property resulting in a loss of $26.7 million, of which the Company’s proportionate share was $5.8 million.

(E)		Activity relates to the Company’s investment in the MDT units primarily liquidated in the third quarter of 2009.

(F)		Adjustments to the Company’s share of joint venture equity in net loss is related primarily to basis differences impacting amortization and depreciation, impairment charges and (loss) gain on dispositions as follows (in millions):


	Three-Month Periods					Nine-Month Periods
	Ended September 30,					Ended September 30,
	2010			2009		2010		2009
(Loss) income, net	$	(0.6	)	$	1.2	$	0.6	$	3.4

(G)

FFO from unconsolidated joint ventures are summarized as follows:


	Three-Month Periods						Nine-Month Periods
	Ended September 30,						Ended September 30,
	2010			2009			2010			2009
Net loss	$	(21,278	)	$	(32,244	)	$	(69,573	)	$	(95,179	)
Loss on sale of real estate		—			—			(47	)		—
Depreciation and amortization of real estate investments		47,814			62,434			149,815			189,472

FFO	$	26,536		$	30,190		$	80,195		$	94,293

DDR’s share of FFO	$	10,457		$	13,584		$	32,319		$	32,553

DDR joint venture distributions received, net	$	7,279		$	7,757		$	29,299		$	23,493

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

FINANCIAL HIGHLIGHTS

(In Millions Except Per Share Information)


	Nine Months
	Ended
	September 30,			Year Ended December 31,
	2010			2009			2008
FUNDS FROM OPERATIONS:
Net Loss Applicable to Common Shareholders	$	(156.8	)	$	(398.9	)	$	(114.2	)
Depreciation and Amortization of Real Estate Investments		161.8			224.2			236.3
Equity in Net Loss (Income) From Joint Ventures		3.8			9.3			(17.7	)
Joint Venture Funds From Operations		32.3			43.7			68.4
Non-Controlling Interests (OP Units)		—			0.2			1.1
Gain on Disposition of Real Estate		(8.4	)		(23.1	)		(4.2	)

FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS		32.7			(144.6	)		169.7
PREFERRED DIVIDENDS		31.7			42.3			42.3

FUNDS FROM OPERATIONS	$	64.4		$	(102.3	)	$	212.0


RECONCILIATION TO OPERATING FFO:
Non-cash impairment charges — consolidated and equity investments, net of non-controlling interests	$	47.0		$	230.0		$	163.5
Executive separation charge, change in control charge and termination of equity award plan		2.1			15.4			15.8
Non-cash loss on equity derivative instruments		14.6			199.8			—
Litigation expenditures, debt extinguishment costs, net loan loss reserve and other, net of tax		16.0			30.0			27.1
Loss on asset sales, impairment charges and derivative gains/losses — equity method investments		6.4			19.0			6.6
Loss on asset sales and consolidated impairment charges included in discontinued operations		75.3			117.6			15.3
FFO associated with Mervyns joint venture, net of non-controlling interest included in discontinued operations		4.8			—			—
Gain on deconsolidation of interests (2010) and redemption of joint venture interests (2009)		(5.2	)		(23.9	)		—
Gain on debt retirement, net		(0.3	)		(145.1	)		(10.5	)

OPERATING FFO AVAILABLE TO COMMON SHAREHOLDERS	$	193.4		$	298.2		$	387.5


PER SHARE INFORMATION:
Funds From Operations — Diluted	$	0.13		$	(0.90	)	$	1.40
Operating FFO — Diluted	$	0.77		$	1.83		$	3.20
Net Loss — Diluted	$	(0.65	)	$	(2.51	)	$	(0.96	)
Dividends	$	0.06		$	0.44		$	2.07

COMMON SHARES & OP UNITS:
Outstanding		256.6			202.0			129.0
Weighted average — Diluted (FFO)		250.2			160.1			121.0
Weighted average — Diluted (Operating FFO)		250.2			163.2			121.0

GEN. & ADMIN. EXPENSES	$	62.5		$	94.4		$	97.7

REVENUES:
DDR Revenues	$	610.7		$	843.3		$	943.7
Joint Venture & Managed Revenues		630.4			902.0			946.3

TOTAL REVENUES (2)	$	1,241.1		$	1,745.3		$	1,890.0


GEN. & ADMIN. EXPENSES AS A PERCENTAGE OF TOTAL REVENUES (1)		5.0	%		5.4	%		5.2	%

NET OPERATING INCOME:
DDR Net Operating Income	$	416.4		$	581.6		$	682.6
Joint Venture Net Operating Income		317.4			532.3			617.5

TOTAL NET OPERATING INCOME (2)	$	733.8		$	1,113.9		$	1,300.1


REAL ESTATE AT COST:
DDR Real Estate at Cost	$	8,428.1		$	8,823.7		$	9,109.6
Joint Venture Real Estate at Cost (3)		6,788.5			7,266.8			9,276.0

TOTAL REAL ESTATE AT COST	$	15,216.6		$	16,090.5		$	18,385.6


(1)		The 2010 results include an executive separation charge of $2.1 million. Excluding this charge, general and administrative expenses were approximately 4.9% of total revenues for the nine months ended September 30, 2010. The 2009 results include $15.4 million relating to a non-cash change in control charge. Excluding this charge, general and administrative expenses were approximately 4.5% of total revenues. The 2008 results include $15.8 million for a non-cash charge relating to the termination of an equity award plan. Excluding this charge, general and administrative expenses were approximately 4.3% of total revenues.

(2)		Includes activities from discontinued operations.

(3)		Periods after October 2009 include the impact of the redemption of the Company’s interest in the MDT US LLC joint venture which reduced the joint venture real estate at cost by $1.6 billion. DDR’s consolidated real estate at cost increased by $113.3 million in the fourth quarter of 2009 related to the three assets transferred to the Company in connection with the redemption.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

FINANCIAL RATIOS
(In Millions, Except Ratios)


		Actual Covenants
		Twelve Months
		Ended
	Covenant	September 30,
	Threshold	2010
PUBLIC DEBT COVENANTS:

Total Debt to Real Estate Assets Ratio	not to exceed 65%		50	%

Secured Debt to Assets Ratio	not to exceed 40%		24	%

Value of Unencumbered Assets to Unsecured Debt	at least 135%		224	%

Fixed Charge Coverage Ratio	at least 1.5x		1.7	x


	Nine Months Ended			Year Ended
	September 30,			December 31,
	2010			2009			2008
DIVIDEND PAYOUT RATIO:
Common Share Dividends and Operating Partnership Interests	$	15.1		$	64.7	(1)	$	249.8
Operating FFO Available to Common Shareholders	$	193.4		$	443.2		$	398.0

		7.8	%		14.6	%(1)		62.8	%


	Rating	Outlook
CREDIT RATINGS:
Moody’s	Baa3	negative
Fitch	BB	stable
S&P	BB	negative


(1)		Includes issuance of common shares with an aggregate value of $50.8 million resulting in an actual cash payout ratio of 3.1% in 2009.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Total Market Capitalization as of September 30, 2010
(In Millions)


	September 30, 2010					December 31, 2009
			Percentage of					Percentage of
	Amount		Total			Amount		Total
Common Shares Equity	$	2,878.5		36	%	$	1,870.9		25	%
Perpetual Preferred Stock		555.0		7	%		555.0		7	%
Fixed-Rate Senior Convertible Notes		282.6		4	%		410.6		5	%
Fixed-Rate Unsecured Debt		1,463.8		19	%		1,279.2		17	%
Fixed-Rate Mortgage Debt		1,230.7		16	%		1,594.2		22	%
Variable-Rate Mortgage Debt		135.1		2	%		319.7		4	%
Variable-Rate Revolving Credit and Term Debt		1,183.1		15	%		1,175.0		15	%
Fixed-Rate Revolving Credit and Term Debt		100.0		1	%		400.0		5	%

Total	$	7,828.8		100	%	$	7,604.6		100	%


Debt to Market Capitalization		56.1%					68.1%

	-		Market value ($11.22 per share as of September 30, 2010 and $9.26 per share as of December 31, 2009) includes common shares outstanding (256.2 million as of September 30, 2010 and 201.6 million as of December 31, 2009) and operating partnership units equivalent to approximately 0.4 million of the Company’s common shares in each year.

	-		Does not include proportionate share of unconsolidated joint venture debt aggregating $841.6 million and $917.0 million at September 30, 2010 and December 31, 2009, respectively.

	-		Consolidated debt includes 100% of consolidated joint venture debt of which the joint venture partners’ share is $22.1 million and $142.3 million at September 30, 2010 and December 31, 2009, respectively.

	-		During the third quarter of 2010, 26 assets were placed in the control of a court appointed receiver, 25 of which are assets formerly occupied by Mervyns which are owned by the MDT MV LLC joint venture. The entities that hold the assets and nonrecourse mortgage loans were deconsolidated for accounting purposes. This deconsolidation resulted in a decrease of consolidated debt of $237.4 million from September 30, 2010 as compared to December 31, 2009 of which the joint partners’ share was $112.7 million.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010


	Quarter ended			Year ended
(In Millions)	September 30, 2010			December 31, 2009
Debt to EBITDA — consolidated
EBITDA:
Net loss attributable to DDR	$	(14.3	)	$	(356.6	)

Adjustments:
Impairment charges		5.1			80.6
Non-cash change in control charge		—			15.4
Depreciation and amortization		54.9			227.2
Depreciation attributable to non-controlling interests		(0.3	)		(2.6	)
Interest expense		53.8			237.9
Interest expense attributable to non-controlling interests		(1.2	)		(6.4	)
Gain on redemption of joint venture interests		—			(23.9	)
Loss on equity derivative instruments		11.3			199.8
Other expenses, net		3.9			29.4
Other expenses attributable to non-controlling interests		(0.2	)		—
Equity in net loss of joint ventures		4.8			9.7
Impairment of joint venture investments		—			184.6
Gain on debt retirement, net		(0.3	)		(145.1	)
Income tax expense (benefit)		1.1			(0.7	)
EBITDA adjustments from discontinued operations (1)		(1.0	)		112.4
Gain on disposition of real estate, net		(0.2	)		(9.1	)
Impairment charges applicable to non-controlling interests		—			(35.2	)

EBITDA before JVs	$	117.4		$	517.5
Pro rata share of JV FFO		10.5			43.7
Pro rata share of JV impairments, loss on disposition and derivative gains/losses		3.1			19.0


EBITDA Consolidated	$	131.0		$	580.1
EBITDA Consolidated — annualized	$	524.0			n/a

Consolidated indebtedness	$	4,395.3		$	5,178.7
Non-controlling interests’ share of consolidated debt		(22.1	)		(142.3	)

Total consolidated indebtedness	$	4,373.2		$	5,036.4
Cash and restricted cash		(35.7	)		(96.2	)

Total consolidated indebtedness, net of cash	$	4,337.5		$	4,940.2


Gross Debt/EBITDA — consolidated		8.28			8.52


Ratio reflects Company’s consolidated EBITDA and pro rata share of JV FFO. The JV FFO, which is net of interest expense, reflects the earnings available to the Company to service consolidated debt. In addition, the JV debt is generally non-recourse to the Company. Operations for the month of September and debt for the quarter ended September 30, 2010 relating to the Mervyns Joint Venture have been excluded from this calculation due to the deconsolidation of the joint venture.

Debt to EBITDA — pro rata
EBITDA before JVs	$	117.4		$	517.5
Pro rata share of JV EBITDA		27.4			125.8


EBITDA including pro rata share of JVs	$	144.8		$	643.3
EBITDA including pro rata share of JVs — annualized	$	579.2			n/a

Total consolidated indebtedness, net of cash	$	4,337.5		$	4,940.2
Pro rata share of JV debt (2)		841.6			917.0

Total pro rata indebtedness	$	5,179.1		$	5,857.2
Pro rata share of cash and restricted cash		(29.9	)		(40.4	)

Pro rata indebtedness, net of cash	$	5,149.2		$	5,816.8


Gross Debt/EBITDA — pro rata		8.89			9.04

Ratio includes Company’s pro rata share of JV EBITDA and the Company’s pro rata share of JV debt outstanding. Operations for the month of September and debt for the quarter ended September 30, 2010 relating to the Mervyns Joint Venture have been excluded from this calculation due to the deconsolidation of the joint venture.


Notes:

(1)	Discontinued operations includes the following EBITDA adjustments:
	Impairment charges	$	2.0		$	74.1
	Gain on deconsolidation of interests		(5.2	)		—
	Interest expense, net		2.5			7.5
	Depreciation and amortization		0.6			6.8
	(Gain) Loss on disposition of real estate, net		(0.9	)		24.0

		$	(1.0	)	$	112.4


(2) Includes $54.0 million representing the Company’s proportionate share of non recourse debt associated with equity method joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Significant Accounting Policies

Revenues

•		Percentage and overage rents are recognized after the tenants reported sales have exceeded the applicable sales breakpoint.

•		Revenues associated with tenant reimbursements are recognized in the period in which the expenses are incurred based upon the provisions of tenants’ leases.

•		Lease termination fees are included in other income and recognized upon termination of a tenant’s lease, which generally coincides with the receipt of cash.

•		Base rental revenue includes income from ground leases of $14.6 million for the nine months ended September 30, 2010.

General and Administrative Expenses

•

General and administrative expenses include internal leasing salaries, legal salaries and related expenses associated with the leasing of space which are charged to operations as incurred. For the nine months ended September 30, 2010, the Company expensed $6.4 million in internal leasing costs. All internal and external costs associated with acquisitions are expensed as incurred. The Company does not capitalize any executive officer compensation.

Deferred Financing Costs

•

Costs incurred in obtaining long-term financing are included in deferred charges and are amortized over the terms of the related debt agreements; such amortization is reflected as interest expense in the consolidated statements of operations.

Real Estate

•		Real estate assets are stated at cost less accumulated depreciation, which, in the opinion of management, is not in excess of the individual property’s estimated undiscounted future cash flows, including estimated proceeds from disposition.

•		Depreciation and amortization are provided on a straight-line basis over the estimated useful lives of the assets as follows:


Buildings		15 to 31 years
Furniture/Fixtures		Useful lives, which approximate lease
and Tenant Improvements		terms, where applicable

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Significant Accounting Policies (Continued)

•		Expenditures for maintenance and repairs are charged to operations as incurred. Renovations that improve or extend the life of the asset are capitalized.

•		Construction in progress includes shopping center developments and significant expansions and redevelopments.

Capitalization

•		The Company capitalizes interest on funds used for the construction or expansion of shopping centers and certain construction administration costs. Capitalization of interest and administration costs ceases when construction activities are completed or suspended and the property is available for occupancy by tenants.

•		Interest and real estate taxes incurred during the construction period are capitalized and depreciated over the building life.


	Nine Months
	Ended
	September 30,		Year Ended December 31,
Capitalized Costs (In Millions)	2010		2009		2008
Interest expense	$	9.5	$	21.8	$	41.1
Construction administration costs	$	7.0	$	10.9	$	13.9

•

For the nine months ended September 30, 2010, the Company expensed $4.5 million in operating costs relating to development projects that have been suspended.

Gain on Sales of Real Estate

•		Gain on sales of real estate generally related to the sale of outlots and land adjacent to existing shopping centers is recognized at closing when the earnings process is deemed to be complete.

•		Gains or losses on the sale of operating shopping centers are reflected as discontinued operations.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Other Real Estate Information

Total Capital Expenditures

•

The Company incurred the following estimated leasing and maintenance capital expenditures including costs associated with anchor store re-tenanting related to major tenant bankruptcies.


			Unconsolidated
	Consolidated		at Prorata
	Nine Months		Nine Months
	Ended		Ended
Capital Expenditures (In Millions)	September 30, 2010		September 30, 2010
Leasing	$	42.1	$	3.1
Maintenance		5.0		0.4

Total Capital Expenditures	$	47.1	$	3.5


Per Square Foot of Owned GLA
Leasing	$	0.84	$	0.07
Maintenance		0.10		0.01

Total Capital Expenditures	$	0.94	$	0.10

Undeveloped Land

•		Included in Land is undeveloped real estate, comprised primarily of outlots or expansion pads adjacent to the shopping centers owned by the Company.

•		At December 31, 2009, the Company estimated the value of its consolidated and proportionate share of joint venture undeveloped land adjacent to existing shopping centers to be approximately $40 million. This value has not been adjusted to reflect changes in market activity subsequent to December 31, 2009.

Non-Income Producing Assets

•

There are 10 consolidated shopping centers, excluding the Company’s corporate headquarters, totaling 0.7 million square feet with a land and building cost basis of approximately $100 million considered non-incoming producing at September 30, 2010.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Same Store NOI
(In Millions)

Same Store Net Operating Income (NOI) represents shopping center assets owned for comparable periods (15 months for quarter comparison and 24 months for full year comparison). Same Store NOI excludes the following:

	-		Assets under development or redevelopment

	-		Straight-line rental income and expense

	-		Income related to lease terminations

	-		Provisions for uncollectible amounts and/or recoveries thereof


	Three Months Ended								Nine Months Ended
	September 30,								September 30,
	2010			2009					2010			2009
Total Same Store NOI	$	218.3		$	214.0	⁽¹⁾	2.0	%	$	653.9		$	651.8	⁽¹⁾	0.3	%
Property NOI from other operating segments		(26.2	)		(46.5	)				(70.8	)		(146.8	)


Combined NOI — DDR & Joint Ventures	$	244.5		$	260.5				$	724.7		$	798.6

Reconciliation to Income Statement


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
Total Revenues — DDR	$	198.8		$	195.7		$	600.8		$	595.2
Total Revenues — Combined Joint Ventures		169.7			206.4	⁽¹⁾		507.8			617.3	⁽¹⁾
Operating and Maintenance — DDR		(33.7	)		(34.5	)		(104.6	)		(99.7	)
Real Estate Taxes — DDR		(29.5	)		(26.0	)		(82.5	)		(76.8	)
Operating and Maintenance and Real Estate Taxes- Combined Joint Ventures		(60.8	)		(81.1	) ⁽¹⁾		(196.8	)		(237.4	) ⁽¹⁾


Combined NOI — DDR & Joint Ventures	$	244.5		$	260.5		$	724.7		$	798.6


(1)		The actual combined joint venture results for the three and nine months ended September 30, 2009 include the activity of the MDT US LLC joint venture. However, for purposes of calculating the Same Store NOI, the results of the assets within the MDT US LLC joint venture not retained by the Company after the redemption were excluded for 2009.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

(In Millions)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
FUNDS FROM OPERATIONS:
Net Loss Applicable to Common Shareholders	$	(24.9	)	$	(148.4	)	$	(156.8	)	$	(308.7	)
Depreciation and Amortization of Real Estate Investments		53.0			51.6			161.8			170.2
Equity in Net Income From Joint Ventures		4.8			0.2			3.8			8.6
Joint Venture Funds From Operations		10.5			13.6			32.3			32.6
Non-Controlling Interests (OP Units)		—			—			—			0.1
Gain on Sales of Real Estate		(6.3	)		(7.1	)		(8.4	)		(19.4	)

FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS	$	37.1		$	(90.1	)	$	32.7		$	(116.6	)


Preferred Dividends		10.6			10.6			31.7			31.7

FUNDS FROM OPERATIONS	$	47.7		$	(79.5	)	$	64.4		$	(84.9	)


OPERATING FFO:
Non-cash impairment charges — consolidated assets	$	5.1		$	0.5		$	78.2		$	12.7
Less portion of impairment charges allocated to non-controlling interests		—			—			(31.2	)		(31.4	)
Executive separation charge		—			—			2.1			—
Gain on debt retirement, net		(0.3	)		(23.9	)		(0.3	)		(142.4	)
Non-cash loss on equity derivative instruments related to Otto investment		11.3			118.2			14.6			198.2
Litigation, debt extinguishment costs and other expenses, net of tax		3.9			—			16.0			—
Loss on asset sales and impairment charges — equity method investments		3.0			0.7			6.4			16.4
Consolidated loss on sales and impairment charges — discontinued operations		7.3			5.2			75.3			171.9
FFO associated with Mervyns joint venture, net of non-controlling interest		1.0			—			4.8			—
Gain on deconsolidation of interests, net		(5.2	)		—			(5.2	)		—
Non-cash change in control compensation charge		—			4.9			—			15.4
(Gain) loss on sale of MDT units, net loan loss reserve and other expenses		—			(2.2	)		—			9.6
Non-cash impairment charge — equity method investments		—			61.2			—			101.6

TOTAL NON-OPERATING ITEMS	$	26.1		$	164.6		$	160.7		$	352.0
FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHAREHOLDERS		37.1			(90.1	)		32.7			(116.6	)

OPERATING FFO AVAILABLE TO COMMON SHAREHOLDERS	$	63.2		$	74.5		$	193.4		$	235.4


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
	(Income)/Expense						(Income)/Expense
ADDITIONAL NON-CASH DISCLOSURES:
Below Market Rent Revenue*	$	(0.1	)	$	(0.1	)	$	(0.3	)	$	(0.4	)
Debt Premium Amortization Revenue*		(0.7	)		(0.9	)		(2.3	)		(2.7	)
Convertible Debt Accretion Expense		1.4			2.7			5.2			9.8
Straight-Line Rent Revenue		(0.4	)		(1.1	)		(1.7	)		(2.5	)
Straight-Line Ground Rent Expense*		0.5			0.6			1.5			1.4
Joint Venture Straight-Line Rent Revenue		0.9			1.4			3.0			3.0
DDR’s Proportionate Share of Straight-Line Rent Revenue		0.1			0.2			0.4			0.3


*		Prorata share of joint venture is deminis

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Consolidated Transactional Income
(In Thousands)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
Included in FFO:
Gain (Loss) on Dispositions, Net of Tax	$	124		$	(246	)	$	(567	)	$	502
Loss on Sales from Discontinued Operations		(5,457	)		(2,646	)		(10,742	)		(38,954	)
Land Sale Gain		28			7,338			374			7,304

	$	(5,305	)	$	4,446		$	(10,935	)	$	(31,148	)


NOT Included in FFO:
Gain (Loss) on Dispositions, Net of Tax	$	(7	)	$	36		$	254		$	416
Gain on Sales from Discontinued Operations		6,346			7,094			8,140			18,989

	$	6,339		$	7,130		$	8,394		$	19,405		FFO Reconciliation


Reconciliation to Income Statement

Gain on Disposition of Real Estate, Net of Tax
Gain (Loss) on Dispositions, Net of Tax	$	124		$	(246	)	$	(567	)	$	502
Land Sale Gain		28			7,338			374			7,304
Gain (Loss) on Dispositions, Net of Tax		(7	)		36			254			416

	$	145		$	7,128		$	61		$	8,222		Consolidated Income Statement


Gain (Loss) on Disposition of Real Estate From Discontinued Operations, Net of Tax
Gain (Loss) on Sales from Discontinued Operations	$	889		$	4,448		$	(2,602	)	$	(19,965	)	(Footnote J to the Press Release)

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Joint Venture Transactional Income
(In Thousands)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2010			2009			2010			2009
Included in FFO:
Gains on Dispositions, Net of Tax	$	—		$	—		$	—		$	—
Loss on Sales from Discontinued Operations		(13,340	)		(13,767	)		(25,350	)		(19,852	)
Land Sale Gain (Loss)		—			(74	)		17			(26,815	) ⁽¹⁾

	$	(13,340	)	$	(13,841	)	$	(25,333	)	$	(46,667	)

DDR’s Proportionate Share (1)	$	(2,800	)	$	(521	)	$	(4,136	)	$	(1,429	)


NOT Included in FFO:
Gains (Loss) on Dispositions, Net of Tax	$	—		$	—		$	—		$	—
Gain on Sales from Discontinued Operations		—			—			47			—

	$	—		$	—		$	47		$	—

DDR’s Proportionate Share	$	—		$	—		$	—		$	—


Reconciliation to Income Statement

Gain on Sales of Real Estate, Net of Tax
Land Sale Gain (Loss)	$	—		$	(74	)	$	17		$	(26,815	) ⁽¹⁾
Gains (Loss) on Dispositions, Net of Tax		—			—			—			—

	$	—		$	(74	)	$	17		$	(26,815	)	Loss on Disposition of Assets


Gain (Loss) on Disposition of Real Estate From Discontinued Operations, Net of Tax
Gain (Loss) on Sales from Discontinued Operations	$	(13,340	)	$	(13,767	)	$	(25,303	)	$	(19,852	)	Loss on Disposition of Discontinued Operations, Net of Tax


⁽¹⁾		Included in loss of disposition of assets for the nine months ended September 30, 2009 is the Company’s transfer of its interest in a Coventry II Fund asset.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Joint Venture Investment Summary ⁽¹⁾


								All Values at 100%
								(In Millions)
								Gross		Total		Gross
		DDR			Number of			Leasable		Annualized		Asset Book
Legal Name	Partner(s)	Ownership %			Properties			Area		Rent		Value		Debt
Unconsolidated Joint Ventures

DDRTC Core Retail Fund, LLC	An Affiliate of TIAA-CREF		15	%		49			12.2	$	138.7	$	2,344.9	$	1,230.6

DDR Domestic Retail Fund I	Various Institutional Investors		20	%		63			8.3		92.8		1,469.8		965.8

Sonae Sierra Brasil BV Sarl	Sonae Sierra, SGPS, SA		47.8	%		10			3.8		105.6		638.1		94.8

DDRA Community Centers Five, L.P.	DRA Advisors		50	%		5			1.8		25.1		241.4		280.0

Coventry II Joint Ventures	Coventry II Fund		10% - 20	%		47	⁽²⁾		5.4		55.5		855.9		625.0

RVIP Structures/DPG Realty Holdings LLC	Prudential RE Advisors/Prudential Insurance		10% - 25.75	%		6			1.2		21.1		223.0		132.2

DDR-SAU Retail Fund, LLC	Special Account-U, L.P. (State of Utah)		20	%		28			2.4		23.6		309.9		196.3

DDR Markaz II LLC	Kuwait Financial Centre		20	%		13			1.6		15.6		206.2		150.5

TRT DDR Venture I General Partnership	TRT-DDR Joint Venture I Owner LLC		10	%		3			0.5		9.1		160.2		110.0

Other Unconsolidated JV Interests	Various	Various				22			3.0		28.0		339.1		211.9


Total Unconsolidated Joint Ventures						246			40.2	$	515.1	$	6,788.5	$	3,997.1


⁽¹⁾		DDR’s investment in joint ventures may be recorded at different amounts than the proportionate equity on the joint ventures’ balance sheet.

⁽²⁾		Includes one asset in which development was suspended.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Joint Venture Combining Financial Statements
(In Millions)
Combining Balance Sheets


	Total Unconsolidated JVs			DDR’s Proportionate Share
Real estate assets	$	6,788.5		$	1,492.6
Accumulated depreciation		(707.0	)		(178.5	)

Real estate, net		6,081.5			1,314.1

Receivables, net		126.4			34.8
Other assets, net		316.5			85.6
Disproportionate share of equity		—			(34.0	) ⁽¹⁾

	$	6,524.4		$	1,400.5


Mortgage debt⁽²⁾	$	3,997.1		$	841.6
Amounts payable to DDR		85.8			10.6
Other liabilities		211.4			55.5

		4,294.3			907.7
Accumulated equity		2,230.1			526.8
Disproportionate share of equity		—			(34.0	) ⁽¹⁾

	$	6,524.4		$	1,400.5

Combining Statements of Operations


	Total Unconsolidated JVs						DDR’s Proportionate Share
	Nine-Month Period			Three-Month Period			Three-Month Period
	Ended September 30, 2010			Ended September 30, 2010			Ended September 30, 2010
Revenues from operations	$	507.8		$	169.7		$	42.4
Rental operation expenses		(196.8	)		(60.8	)		(14.2	)
Impairment charges		(19.7	)		(8.8	)		(1.0	)

Net operating income		291.3			100.1			27.2
Depreciation and amortization expense		(143.2	)		(47.7	)		(10.1	)
Interest expense		(174.3	)		(54.0	)		(11.6	)

(Loss) income before gain on sale of real estate		(26.2	)		(1.6	)		5.5
Income tax expense		(13.9	)		(4.1	)		(2.1	)
Discontinued operations		(4.1	)		(2.2	)		—
Loss on disposition of discontinued operations		(25.3	)		(13.3	)		(2.8	)
Gain (loss) on sale of real estate		—			—			—
Disproportionate share of income		—			—			(4.8	)

Net income (loss)	$	(69.5	)	$	(21.2	)	$	(4.2	)

DDR ownership interests	$	(4.4	)	$	(4.2	)	$	(4.2	)
Amortization of basis differential		0.6			(0.6	)		—

	$	(3.8	)	$	(4.8	)	$	(4.2	)


Funds From Operations

Net loss	$	(69.5	)	$	(21.2	)	$	(4.2	)
Depreciation of real property		149.8			47.3			9.7
Gain on sale of real estate		(47.0	)		—			—
Disproportionate share of income		—			—			5.0	⁽¹⁾

	$	33.3		$	26.1		$	10.5

DDR ownership interests	$	32.3		$	10.5


⁽¹⁾		Adjustments represent the effect of promoted equity structures and minority interests.

⁽²⁾		Includes approximately $314.7 million of non recourse debt of which the Company’s proportionate share is $54.0 million associated with joint ventures for which the Company has written its investment down to zero and is receiving no allocation of income.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Property Acquisitions

There were no third party acquisitions for the nine months ended September 30, 2010.

Property Dispositions


			DDR’s				(In Thousands)		(In Millions)
Disposition			Effective				Total		Gross		Relinquished
Date	Location	Property Name	Ownership			Joint Venture	GLA		Sales Price		Debt
01/10	Carson City, NV	Former Mervyns		50	%	MDT MV		60.5	$	4.0	$	4.0
01/10	Lynchburg, VA	Candlers Station		100	%	—		270.8		16.2		—
01/10	Tampa, FL	Town ’N Country Promenade		100	%	—		134.5		7.8		—
02/10	Covington, LA	Covington Corners		100	%	—		15.6		2.4		—
03/10	Detroit, MI	Bel-Air Centre		100	%	—		445.3		0.6		—
03/10	Various	Portfolio of 16 assets		15	%	DDRTC Core		3,588.7		424.3		386.4
04/10	Macon, GA	Former Kmart		100	%	—		102.1		1.5		—
04/10	Baton Rouge, LA	Former Service Merchandise		20	%	Coventry II		90.0		1.3		1.7
04/10	Burbank, IL	Former Service Merchandise		20	%	Coventry II		27.2		0.2		1.0
05/10	Lexington, KY	South Farm Marketplace		100	%	—		17.8		2.3		—
05/10	Niagara Falls, NY	Regal Cinemas		100	%	—		43.2		5.6		—
06/10	Various	Portfolio of six assets		10	%	DPG Holdings		703.2		42.6		4.6
06/10	San Diego, CA	Former Mervyns		50	%	MDT MV		75.2		7.0		7.0
06/10	Fairfield, CA	Former Mervyns		50	%	MDT MV		89.2		7.0		7.0
06/10	W. Covina, CA	Former Mervyns		50	%	MDT MV		79.8		9.0		9.0
06/10	Dansville, NY	Tops Plaza		100	%	—		74.0		4.7		—
07/10	Salt Lake City, UT	Family Place at 3300 South		100	%	—		34.2		1.5		—
07/10	El Cajon, CA	Former Mervyns		50	%	MDT MV		85.7		3.0		3.0
07/10	Schertz, TX	Undeveloped Land		100	%	—		—		7.9		—
08/10	Various	Portfolio of five assets		100	%	—		59.0		12.7		—
08/10	Steubenville, OH	Lowe’s		100	%	—		130.5		9.4		—
08/10	Berlin, VT	Berlin Mall		100	%	—		174.6		13.7		—
08/10	Lancaster, CA	Valley Central		21	%	PRU		370.9		27.2		17.4
08/10	Las Vegas, NV	Former Mervyns		50	%	MDT MV		75.7		5.6		5.6
08/10	Union City, GA	Shannon Square		100	%	—		100.0		3.1		—
Various	Various	Outparcels		100	%	—		—		3.5		—

Total Dispositions								6,847.7	$	624.1	$	446.7

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

($ in millions, GLA in thousands)

Summary of Wholly-Owned and Consolidated Land Held for Development and Construction in Progress


	As of September 30, 2010						2010 Activity
							Net			Net			Placed		To Be Placed
							Expenditures			Expenditures			In Service		In Service
	Land		CIP		Total		Year to Date			4Q 2010			Year to Date		4Q 2010
Ground up Development Projects in Progress	$	44.9	$	84.7	$	129.6	$	19.7		$	(2.6	)	$	—	$	24.3
Ground up Development Projects Primarily on Hold		360.0		177.4		537.4		(6.7	)		(0.3	)		—		—
Substantially Completed Projects Pending Lease up		35.0		61.0		96.0		8.2			0.5			14.7		7.7
Expansion, Redevelopment, and Retenanting Projects		2.0		52.7		54.7		55.9			18.7			49.1		31.4

Total	$	441.9	$	375.8	$	817.7	$	77.1		$	16.3		$	63.8	$	63.4

Summary of Significant Wholly-Owned and Consolidated Development Projects in Progress


								Cost		Assets		Initial
		Total		Owned		Estimated		Incurred		Placed in		Anchor
Location	Project Name	GLA		GLA		Net Cost		To Date		Service		Opening	Major Anchors
Boise (Nampa), ID	Nampa Gateway Center		830.9		419.3	$	126.7	$	123.0	$	44.8	2H 07	JC Penney, Macy’s, The Sports Authority, Idaho Athletic Club, Regal Cinemas

Austin (Kyle), TX ⁽¹⁾	Kyle Marketplace		805.6		443.1		77.3		60.9		9.4	2H 09	Target, Kohl’s

			1,636.5		862.4	$	204.0	$	183.9	$	54.2


Total Land Held for Development and CIP for ground up development projects in progress at September 30, 2010:										$	129.6


(1)		Consolidated 50% Joint Venture

Summary of Significant Wholly-Owned and Consolidated Expansion, Redevelopment, and Retenanting Projects

Cost

Assets

Initial

Total

Owned

Estimated

Incurred

Placed in

Anchor

Location

Project Name

GLA

Net Cost

To Date

Service

Opening

Major Anchors

Miami (Plantation), FL

The Fountains

273.4

51.6

37.8

18.1

2H 09

Kohl’s, Dick’s Sporting Goods, Marshalls/HomeGoods

CIP for Plantation, FL:

19.7

CIP for other expansion, redevelopment, and retenanting projects:

35.0

Total amount included in CIP at September 30, 2010 for expansion, redevelopment, and retenanting projects:

54.7

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

($ in millions, GLA in thousands)

Summary of Joint Venture Land Held for Development and Construction in Progress


	As of September 30, 2010						2010 Activity
							Net		Net		Placed		To Be Placed
							Expenditures		Expenditures		In Service		In Service
	Land		CIP		Total		Year to Date		4Q 2010		Year to Date		4Q 2010
Ground up Development Projects in Progress	$	9.2	$	31.3	$	40.5	$	26.8	$	17.5	$	—	$	—
Land Held for Development		19.6		20.5		40.1		2.5		4.1		—		—
Ground up Development Projects Primarily on Hold		23.3		1.8		25.1		0.3		0.3		—		—
Substantially Completed Projects Pending Lease up		2.1		35.3		37.4		9.6		1.9		27.3		5.1
Expansion, Redevelopment, and Retenanting Projects		—		30.2		30.2		28.6		18.1		15.6		29.9

Total	$	54.2	$	119.1	$	173.3	$	67.8	$	41.9	$	42.9	$	35.0

Summary of Significant Joint Venture Development Projects in Progress


		DDR’s									Cost		Assets		Initial
		Effective			Total		Owned		Estimated		Incurred		Placed in		Anchor
Location	Project Name	Ownership			GLA		GLA		Net Cost		To Date		Service		Opening	Major Anchors
Uberlandia, Brazil	Patio Uberlandia		47.8	%		509.9		509.9	$	105.1	$	40.5	$	—	2H 11	Walmart, Cinemark, Centuaro, Leroy Merlin


						509.9		509.9	$	105.1	$	40.5	$	—


Total Land Held for Development and CIP for ground up development projects in progress at September 30, 2010:													$	40.5

Summary of Significant Joint Venture Expansion, Redevelopment and Retenanting Projects


		DDR’s									Cost		Assets		Initial
		Effective			Total		Owned		Estimated		Incurred		Placed in		Anchor
Location	Project Name	Ownership			GLA		GLA		Net Cost		To Date		Service		Opening	Major Anchors
Casselberry, FL	Casselberry Commons		20.0	%		90.4		90.4	$	8.7	$	5.1	$	—	2H 10	Publix Supermarket, TJ Maxx
Sao Bernardo do Campo, Brazil	Metropole Shopping Center		47.8	%		93.7		68.0		25.5		4.7		—	1H 11	Etna, Fast Shop, PlayArte
Campinas, Brazil	Parque Dom Pedro Shopping Center		37.3	%		58.7		58.7		11.8		6.7		—	2H 10	Fast Shop, Luiggi Bertolli, Siberian


						242.8		217.1	$	46.0	$	16.5	$	—


CIP for projects listed above													$	16.5
CIP for other expansion, redevelopment, and retenanting projects:														13.7

Total amount included in CIP at September 30, 2010 for expansion, redevelopment, and retenanting projects:													$	30.2

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Ground up Development Projects Primarily on Hold


	DDR’s Effective
MSA (Location)	Ownership			Total Acreage
Ukiah (Mendocino), CA		50	%		75.7
New Haven (Guilford), CT		100	%		26.0
Orlando (Lee Vista), FL		100	%		74.3
Tampa (Brandon), FL		100	%		46.3
Tampa (Wesley Chapel), FL		100	%		10.0
Atlanta (Douglasville), GA		100	%		28.5
Chicago (Grayslake), IL		50	%		106.0
Kansas City (Merriam), KS		100	%		35.1
Boston, MA (Seabrook, NH)		100	%		50.9
Gulfport, MS		100	%		86.2
Raleigh (Apex), NC		100	%		52.6
Oconomowoc, WI		50	%		121.6
Isabela, Puerto Rico		80	%		11.1
Toronto (Brampton), CAN		50	%		43.0
Toronto (East Gwillimbury — Bayview/Greenlane), CAN		50	%		39.0
Toronto (East Gwillimbury — Hwy 404/Greenlane East), CAN		50	%		44.0
Toronto (East Gwillimbury — Hwy 404/Greenlane West), CAN		50	%		29.0
Toronto (Richmond Hill), CAN		50	%		52.0
Togliatti, Russia		75	%		61.2
Yaroslavl, Russia		75	%		8.0
Other Misc. Land (9 sites)		100	%	Various

					1,007.6


	(In Millions)
Total amount for wholly-owned and consolidated projects included in Land Held for Development and CIP at September 30, 2010:	$	537.4	⁽¹⁾
Total amount for joint venture projects included in Land Held for Development and CIP at September 30, 2010:		25.1

Total Land Held for Development and CIP at September 30, 2010:	$	562.5


(1)		Includes partners’ ownership interest of $120.1 million and minority interest of $30.9 million.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Total Portfolio Characteristics


Shopping Centers and Interests in Retail Assets	586

Business Centers	6

Million Square Feet Owned and Managed (Total)	134

Million Square Feet Owned (Total)	94

Million Square Feet Owned (Pro Rata)	60

Core Portfolio % Leased	92.0	%

Core Portfolio % Leased including Brazil	92.2	%

Prime Portfolio Characteristics

Our Prime portfolio is comprised of market dominant shopping centers with high quality tenants located in attractive markets with strong demographic profiles. It is a subset of the total portfolio.


Shopping Centers	265

Million Square Feet (Total)	80

% of Total Portfolio NOI	82.6	%

Prime Portfolio % Leased	93.6	%

Prime Portfolio % Leased including Brazil	93.9	%

Total Portfolio GLA Concentration


		GLA		Percentage of
		(in Millions)		Total GLA
1.	Georgia		13.6		10.2	%
2.	Florida		12.5		9.4	%
3.	Ohio		9.3		7.1	%
4.	New York		8.9		6.8	%
5.	North Carolina		8.5		6.5	%
6.	Texas		6.6		5.0	%
7.	Puerto Rico		5.0		3.8	%
8.	South Carolina		4.9		3.7	%
9.	Brazil		4.4		3.3	%
10.	New Jersey		4.2		3.2	%

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Sonae Sierra Brasil (SSB) Portfolio Characteristics

Sonae Sierra Brasil is a fully integrated owner, manager, and developer of shopping centers throughout Brazil. The joint venture was established between SSB and DDR in 2007. DDR’s ownership of SSB is 47.8%.


Shopping Centers (Development Sites)		10	(3)

Million Square Feet Owned and Managed (Total)		3.9

Million Square Feet Owned (Total)		3.8

Million Square Feet Potential Development		1.8

Total Annualized Rent (in millions)	$	105.6

Average Rent Per Square Foot	$	27.02

Portfolio % Leased		98.0	%

Puerto Rico Portfolio Characteristics


Shopping Centers		15

Million Square Feet Owned and Managed (Total)		5.0

Million Square Feet Owned (Total)		4.1

Total Annualized Rent (in millions)	$	80.2

Average Rent Per Square Foot	$	16.15

Portfolio % Leased		97.0	%

Trailing 12 Month NOI (DDR Share)

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Leased Rate and Average Annualized Base Rental Rates PSF ⁽¹⁾


	Number of		Core			Total Annualized Base Rent / S.F.
Period Ending	Properties		Leased Rate			Total		Shop Space

Q3 2010		492		92.0	%	$	12.44	$	18.59
YE 2009		534		91.2	%	$	12.27	$	18.26
YE 2008		611		92.6	%	$	12.34	$	18.24
YE 2007		619		95.8	%	$	12.22	$	17.92
YE 2006		370		96.2	%	$	11.57	$	17.20
YE 2005		379		96.3	%	$	11.30	$	16.63
YE 2004		373		95.4	%	$	11.13	$	16.14
YE 2003		274		95.1	%	$	10.82	$	15.55
YE 2002		189		95.9	%	$	10.58	$	15.18
YE 2001		192		95.4	%	$	10.03	$	14.02
YE 2000		190		96.9	%	$	9.66	$	13.66
YE 1999		186		95.7	%	$	9.20	$	12.69
YE 1998		159		96.5	%	$	8.99	$	12.39
YE 1997		123		96.1	%	$	8.49	$	11.69
YE 1996		112		94.8	%	$	7.85	$	10.87
YE 1995		106		96.3	%	$	7.60	$	10.54
YE 1994		84		97.1	%	$	5.89	$	9.02
YE 1993		69		96.2	%	$	5.60	$	8.56
YE 1992		53		95.4	%	$	5.37	$	8.37


(1)		Figures exclude Brazil, Mervyns, Service Merchandise, development properties and managed but unowned properties.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

(GLA and Total Rent in Thousands)

Leasing spreads are calculated by comparing the prior tenant’s annual base rent in the final year of the lease to the new tenant’s annual base rent in the first year of the new lease. The calculation only includes deals that were executed within one year of the date that the prior tenant vacated.

Leasing Summary for Third Quarter 2010 ⁽¹⁾


													Change in
													Base Rent			Weighted
	Number				New Rent								Over Prior			Average		Tenant
	of				Year One		New Rent Year		Prior Rent				Rent in Comp			Lease Term		Improvements
	Leases		GLA		psf		One Total		psf		Prior Rent Total		Space			(in years)		psf

New leases
New leases for spaces vacant less than one year		62		273	$	16.15	$	4,409	$	15.24	$	4,161		6.0	%		8.5	$	12.49
New leases for spaces vacant more than one year		118		731	$	11.34	$	8,290		N/A		N/A		N/A			9.0	$	12.39
Total new leases		180		1,004	$	12.65	$	12,698	$	15.24	$	4,161		6.0	%		8.9	$	12.42

Renewals		282		1,580	$	13.83	$	21,851	$	13.40	$	21,172		3.9	%		4.1		—

Total / Average (new leases + renewals)		462		2,584	$	13.37	$	34,550	$	9.80	$	25,333		4.3	%		6.0	$	4.82


(1)		Excludes 36 leases aggregating 313,000 square feet signed on behalf of managed but unowned properties.

Leasing Summary for Year-To-Date 2010 ⁽²⁾


													Change in
													Base Rent			Weighted
	Number				New Rent								Over Prior			Average		Tenant
	of				Year One		New Rent Year		Prior Rent				Rent in Comp			Lease Term		Improvements
	Leases		GLA		psf		One Total		psf		Prior Rent Total		Space			(in years)		psf

New leases
New leases for spaces vacant less than one year		203		821	$	16.06	$	13,183	$	15.78	$	12,952		1.8	%		8.5	$	16.85
New leases for spaces vacant more than one year		332		2,099	$	11.88	$	24,931		N/A		N/A		N/A			8.7	$	8.42
Total new leases		535		2,920	$	13.05	$	38,114	$	15.78	$	12,952		1.8	%		9.0	$	10.79

Renewals		745		4,197	$	13.24	$	55,450	$	12.96	$	54,421		2.1	%		4.2		—

Total / Average (new leases + renewals)		1,280		7,117	$	13.15	$	93,563	$	9.47	$	67,373		2.1	%		6.1	$	4.43


(2)		Excludes 92 leases aggregating 930,000 square feet signed on behalf of managed but unowned properties.

Figures exclude Brazil, Mervyns and managed but unowned properties.

Weighted Average Lease Term excludes renewal options.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Leasing Summary of Formerly Vacant Spaces Over 20,000 Square Feet⁽¹⁾


			Lease term
	GLA		(years) ⁽²⁾

Leased in 2008		110,141		8.2

Leased in 2009		1,334,436		9.4

Leased Q1 2010		280,125		9.5

Leased Q2 2010		470,228		8.2

Leased Q3 2010		397,474		11.1

Total Leased 2008 – Q3 2010		2,592,404		9.4

Status of Re-Tenanting Spaces Formerly Occupied by Bankrupt Tenants ⁽¹⁾


	September 30, 2009			December 31, 2009			March 31, 2010			June 30, 2010			September 30, 2010

Sold/Leased		18	%		24	%		30	%		38	%		43	%
At-Lease		6	%		2	%		3	%		7	%		11	%
At-LOI		28	%		34	%		30	%		29	%		21	%


Total Activity		52	%		60	%		63	%		74	%		75	%


(1)		Includes Linens ‘N Things, Circuit City, Goody’s and Steve & Barry’s; excludes Mervyns

(2)		Excludes renewal options

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Net effective rents are calculated with full consideration for all costs associated with leasing the space rather than prorata costs. Landlord work represents property level improvements associated with the lease transactions; however, those improvements are attributed to the landlord’s property value and typically extend the life of the asset in excess of the lease term.

Net Effective Rents Related to Leased Space (Owned Properties)


	Three Months
	Ended:			YTD Total /
	9/30/2010			Average
Number of lease transactions executed		462			1,280
Rentable square footage leased (in thousands)		2,583			7,117
Square footage of renewal deals (in thousands)		1,580			4,197
Square footage of new deals (in thousands)		1,004			2,920
Renewed square footage (% of total)		61.1	%		59.0	%
New leases square footage (% of total)		38.9	%		41.0	%

New Deals:
Weighted average per rentable square foot over the lease term:
Base rent	$	13.34		$	13.08
Tenant allowance		(1.50	)		(1.32	)
Landlord work		(1.00	)		(0.89	)
Third party leasing commissions		(0.26	)		(0.23	)
Rent concessions		—			—

Equivalent net effective rent	$	10.58		$	10.64

Weighted average term in years		8.8			8.2

Renewal Deals:
Weighted average per rentable square foot over the lease term:
Base rent	$	13.92		$	13.31
Tenant allowance		—			—
Landlord work		—			—
Third party leasing commissions		—			—
Rent concessions		—			—

Equivalent net effective rent	$	13.92		$	13.31

Weighted average term in years		4.1			4.2

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Lease Expirations by Year as of September 30, 2010⁽¹⁾


	Anchor Base Rent									Shop Space Base Rent
			Revenues				% of Total					Revenues				% of Total
Year	Leases		($M)		Avg. PSF		Revenue			Leases		($M)		Avg. PSF		Revenue

2010		13	$	4.0	$	9.10		0.4	%		455	$	22.1	$	19.92		2.4	%
2011		92	$	28.3	$	8.73		3.1	%		1,360	$	77.9	$	18.27		8.6	%
2012		121	$	43.3	$	8.54		4.8	%		1,207	$	73.5	$	18.33		8.1	%
2013		106	$	35.3	$	8.27		3.9	%		1,074	$	68.4	$	18.27		7.5	%
2014		141	$	51.1	$	8.58		5.6	%		794	$	51.3	$	18.38		5.6	%
2015		126	$	49.5	$	9.18		5.4	%		665	$	45.2	$	17.36		5.0	%
2016		99	$	41.8	$	9.65		4.6	%		259	$	26.1	$	18.67		2.9	%
2017		67	$	33.3	$	9.59		3.7	%		159	$	16.7	$	20.55		1.8	%
2018		56	$	24.4	$	9.12		2.7	%		194	$	21.4	$	19.91		2.4	%
2019		61	$	32.5	$	10.28		3.6	%		145	$	18.6	$	18.92		2.0	%

2010 - 2019 Subtotal		882	$	339.5	$	9.10		37.4	%		6,312	$	421.2	$	18.74		46.3	%

Total Rent Roll		1,042	$	455.0	$	9.24		50.1	%		6,575	$	453.9	$	18.56		49.9	%


(1)		Excludes Brazil

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Largest Tenants by GLA and Base Rental Revenues ⁽¹⁾


			% of
	Owned		Total			Credit Ratings		Base Rental		% of Total			Credit Ratings
Major Tenant (units)	GLA		GLA			(S&P/Moody’s)	Major Tenant (units)	Rev. ($M)		Base Rent			(S&P/Moody’s)

1. Walmart / Sam’s Club (34)		4.2		7.1	%	AA / Aa2	1. Walmart / Sam’s Club (34)	$	27.7		4.3	%	AA / Aa2
2. Kmart / Sears (32)		1.7		2.9	%	BB- / Ba2	2. TJX Companies (76)	$	12.5		2.0	%	A / A3
3. TJX Companies (76)		1.5		2.5	%	A / A3	3. Bed Bath & Beyond (55)	$	11.7		1.8	%	BBB / NR
4. Lowe’s Home Improvement (12)		1.5		2.5	%	A / A1	4. PetSmart (76)	$	11.5		1.8	%	BB / NR
5. Kohl’s (30)		1.5		2.5	%	BBB+ / Baa1	5. Michael’s (63)	$	10.0		1.6	%	B- / B3
6. Bed Bath & Beyond (55)		1.0		1.7	%	BBB / NR	6. Kohl’s (30)	$	9.7		1.5	%	BBB+ / Baa1
7. PetSmart (76)		0.9		1.5	%	BB / NR	7. Lowe’s Home Improvement (12)	$	9.1		1.4	%	A / A1
8. Target (7)		0.9		1.5	%	A+ / A2	8. Rite Aid (35)	$	8.4		1.3	%	B- / Caa2
9. Kroger (35)		0.9		1.5	%	BBB / Baa2	9. GAP / Banana Republic / Old Navy (47)	$	7.8		1.2	%	BB+ / NR
10. J.C. Penney (19)		0.8		1.3	%	BB+ / Ba1	10. OfficeMax (41)	$	7.7		1.2	%	B / B1
11. Michael’s (63)		0.8		1.3	%	B- / B3	11. Ross Stores (47)	$	7.5		1.2	%	BBB / NR
12. Home Depot (8)		0.8		1.3	%	BBB+ / Baa1	12. Dick’s Sporting Goods (33)	$	7.3		1.1	%	NR / NR
13. Toys R Us (29)		0.7		1.2	%	B / B1	13. Tops Markets (17) ⁽²⁾	$	7.0		1.1	%	B / NR
14. Dick’s Sporting Goods (33)		0.7		1.2	%	NR / NR	14. Best Buy (22)	$	6.8		1.1	%	BBB- / Baa2
15. Ross Stores (47)		0.7		1.2	%	BBB / NR	15. Kroger (35)	$	6.8		1.1	%	BBB / Baa2
16. Burlington Coat Factory (12)		0.7		1.2	%	B- / B3	16. Kmart / Sears (32)	$	6.7		1.0	%	BB- / Ba2
17. OfficeMax (41)		0.6		1.0	%	B / B1	17. Cinemark Theatre (14)	$	6.7		1.0	%	B+ / B1
18. Publix (49)		0.6		1.0	%	B- / B3	18. Barnes & Noble (26)	$	6.6		1.0	%	NR / NR
19. Hobby Lobby (16)		0.6		1.0	%	NR / NR	19. Staples (36)	$	6.5		1.0	%	BBB / Baa2
20. Dollar Tree Stores (93)		0.6		1.0	%	NR / NR	20. Regal Cinemas (10)	$	6.3		1.0	%	B+ / B3

Subtotal 1-20		21.7		36.5	%		Subtotal 1-20	$	184.3		28.8	%

Total Portfolio		59.5		100.0	%		Total Portfolio	$	640.6		100.0	%


(1)		Based on 100% ownership of wholly-owned properties and pro rata ownership of joint venture properties.

(2)		15 leases are guaranteed by Koninklijke Ahold NV, rated BBB / Baa3.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Summary of Consolidated Debt
(In Millions)


			December 31, 2009				September 30, 2010
	December 31, 2009		DDR Pro Rata		September 30, 2010		DDR Pro Rata
Total Debt Outstanding	Aggregate		Share		Aggregate		Share
Mortgage Loans Payable:
Fixed rate secured loans	$	1,594.2	$	1,479.9	$	1,230.7	$	1,220.8
Variable rate secured loans		319.7		291.6		135.1		122.9
Secured Term Loan		800.0		800.0		800.0		800.0
Unsecured Public Debt		1,689.8		1,689.8		1,746.4		1,746.4
Unsecured Credit Facilities		775.0		775.0		483.1		483.1

Total	$	5,178.7	$	5,036.3	$	4,395.3	$	4,373.2


	Scheduled		Secured		Unsecured
	Principal		Debt		Debt		Aggregate		DDR Pro Rata
Schedule of Maturities by Year (1)	Payments		Maturities		Maturities		Total		Share
2010	$	7.1	$	—	$	—	$	7.1	$	7.1
2011		27.3		149.2		180.6		357.1		357.1
2012		27.2		904.5		418.2		1,349.9		1,327.8
2013		23.1		451.2		—		474.3		474.3
2014		14.7		370.6		483.1		868.5		868.5
2015		15.3		2.7		169.4		187.4		187.4
2016		12.9		2.3		298.6		313.8		313.8
2017		12.5		—		300.0		312.5		312.5
2018		8.7		—		82.2		90.9		90.9
2019		3.8		74.8		—		78.6		78.6
2020 and beyond		3.1		54.8		297.4		355.3		355.3

	$	155.7	$	2,010.1	$	2,229.5	$	4,395.3	$	4,373.2


Percentage of Total Debt	December 31, 2009			September 30, 2010
Fixed		71.1	%		70.0	%
Variable		28.9	%		30.0	%


Percentage of Total Debt	December 31, 2009			September 30, 2010
Recourse to DDR		69.5	%		70.2	%
Non-recourse to DDR		30.5	%		29.8	%


(1)		Assumes borrower extension options are exercised.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Summary of Joint Venture Debt
(In Millions)


			December 31, 2009				September 30, 2010
	December 31, 2009		DDR Pro Rata		September 30, 2010		DDR Pro Rata
Total Debt Outstanding	Aggregate		Share		Aggregate		Share
Mortgage Loans Payable:
Fixed rate secured loans	$	3,807.2	$	785.4	$	3,305.9	$	710.6
Variable rate secured loans		740.5		131.6		691.2		131.0

Total	$	4,547.7	$	917.0	$	3,997.1	$	841.6


	Scheduled		Mortgage
	Principal		Loan		Aggregate		DDR Pro Rata
Schedule of Maturities by Year (1)	Payments		Maturities		Total		Share
2010	$	1.1	$	141.1	$	142.2	$	24.4
2011		7.2		347.4		354.6		93.8
2012		5.9		1,468.9		1,474.8		337.1
2013		5.7		169.0		174.7		17.6
2014		5.7		150.5		156.2		31.1
2015		2.3		179.1		181.4		36.2
2016		2.4		—		2.4		0.4
2017		2.6		1,372.2		1,374.8		254.4
2018		1.9		—		1.9		0.3
2019		0.8		34.1		34.9		5.1
2020 and beyond		—		99.1		99.1		41.2

	$	35.7	$	3,961.4	$	3,997.1	$	841.6


Percentage of Total Debt	December 31, 2009			September 30, 2010
Fixed		83.7	%		82.7	%
Variable		16.3	%		17.3	%


Percentage of Total Debt	December 31, 2009			September 30, 2010
Recourse to DDR		4.8	%		5.2	%
Non-recourse to DDR		95.2	%		94.8	%


(1)		Assumes borrower extension options are exercised.

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Consolidated Debt Detail
(In Millions)


	Loan			DDR		Final Maturity		Interest
	Balance			Proportionate Share		Date (1)		Rate (2)
SENIOR DEBT
Unsecured Credit Facilities:
$950 Million Revolving Credit Facility	$	463.6		$	463.6		02/14	LIBOR + 275
$65 Million Revolving Credit Facility		19.5			19.5		02/14	LIBOR + 275
Secured Credit Facility:
$800 Million Term Loan		800.0			800.0		02/12	LIBOR + 120

Total Term and Credit Facility Debt	$	1,283.1		$	1,283.1

PUBLIC DEBT
Medium Term Notes	$	93.0		$	93.0		04/11		5.25
Convertible Notes		87.6	(3)		87.6		08/11		3.50
Convertible Notes		195.0	(4)		195.0		03/12		3.00
Medium Term Notes		223.2			223.2		10/12		5.38
Medium Term Notes		169.4			169.4		05/15		5.50
Medium Term Notes		298.6			298.6		03/16		9.63
Medium Term Notes		300.0			300.0		04/17		7.50
Medium Term Notes		82.2			82.2		07/18		7.50
Medium Term Notes		297.4			297.4		09/20		7.88

Total Public Debt	$	1,746.4		$	1,746.4

MORTGAGE DEBT (5)
Peach Street Square I & II, Erie, PA	$	23.8		$	23.8		04/11		6.88
Southland Crossings, Boardman, OH		22.2			22.2		04/11		6.88
The Promenade at Brentwood, St. Louis, MO		21.3			21.3		04/11		6.88
Centennial Promenade, Denver, CO		32.0			32.0		04/11		6.88
Merriam Village, Merriam, KS		14.7	(6)		14.7		05/11	LIBOR + 400
Union Town Center, Indian Train, NC		6.4			6.4		10/11		7.00
Westgate Plaza, Gates, NY		23.1			23.1		10/11		7.24
Ashtabula Commons, Ashtabula, OH		6.3			6.3		12/11		7.00
Kyle Crossing, Kyle, TX		24.4	(6)		12.2		01/12	LIBOR + 350
Paradise Village Gateway, Phoenix, AZ		30.0			20.1		03/12		5.39
University Hills, Denver, CO		25.3			25.3		07/12		7.30
N. Charleston Center, N. Charleston, SC		9.6			9.6		07/12		7.37
Cortez Plaza, Bradenton, FL		11.3			11.3		07/12		7.15
Walgreen’s, Dearborn Hts, MI		3.5			3.5		11/12		4.86
Walgreen’s, Livonia, MI		2.5			2.5		11/12		4.86
Walgreen’s, Westland, MI		2.6			2.6		03/13		4.86
Perimeter Pointe, Atlanta, GA		27.6	(6)		27.6		04/13	LIBOR + 350
Town Center Prado, Marietta, GA		0.1	(6)		0.1		04/13	LIBOR + 350
Plaza Escorial, Carolina, PR		57.5			57.5		04/13		5.00
Plaza Rio Hondo, Bayamon, PR		109.5			109.5		04/13		5.00
Paseo Colorado, Pasadena, CA		79.1			79.1		04/13		5.00
Meridian Crossroads & Family Center, Meridian, ID		37.2			37.2		04/13		5.00
University Center, Wilmington, NC		24.5			24.5		04/13		5.00
Aspen Grove, Littleton, CO		42.2			42.2		04/13		5.00
Victor Square, Victor, NY		6.1			6.1		04/13		5.80
DDRC Headquarters, Beachwood, OH		35.2			35.2		04/13	LIBOR + 110
Wrangleboro Consumer Sq. I & II, Mays Landing, NJ		38.8			38.8		05/13		6.99

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Consolidated Debt Detail (con’t)
(In Millions)


	Loan			DDR		Final Maturity		Interest
	Balance			Proportionate Share		Date (1)		Rate (2)
Monmouth Consumer Sq., W. Long Branch, NJ		6.4			6.4		07/13		8.57
Rotonda Plaza, Englewood, FL		0.9			0.9		07/13		5.80
Crossroads Center, Gulfport, MS		26.0			26.0		10/14		4.23
The Commons, Salisbury, MD		9.2			9.2		10/14		4.23
Chillicothe Place, Chillicothe, OH		4.5			4.5		10/14		4.23
Deer Valley Towne Center, Phoenix, AZ		18.6			18.6		10/14		4.23
Plaza at Sunset Hills, Sunset Hills, MO		29.6			29.6		10/14		4.23
North Pointe Plaza, North Charleston, SC		11.6			11.6		10/14		4.23
Wando Crossing, Mount Pleasant, SC		12.7			12.7		10/14		4.23
Brook Highland Plaza, Birmingham, AL		26.0			26.0		10/14		4.23
Mooresville Consumer Sq., Mooresville, NC		19.2			19.2		10/14		4.23
Town Center Plaza, Leawood, KS		53.5			53.5		10/14		4.23
Warner Robins Place, Warner Robins, GA		7.2			7.2		10/14		4.23
Cross Pointe Center, Fayetteville, NC		10.5			10.5		10/14		4.23
Overlook at Hamilton Place, Chattanooga, TN		10.5			10.5		10/14		4.23
Bermuda Square, Chester, VA		7.9			7.9		10/14		4.23
Home Depot Center, Orlando Park, IL		7.1			7.1		10/14		4.23
Delaware Consumer Square, Buffalo, NY		10.8			10.8		10/14		4.23
Hamilton Marketplace, Hamilton, NJ		43.8			43.8		10/14		4.23
Marketplace at Delta Twp, Lansing, MI		7.0			7.0		10/14		4.23
Clearwater Collection, Clearwater, FL		7.5			7.5		10/14		4.23
Wendover Village, Greensboro, NC		5.1			5.1		10/14		4.23
Lexington Place, Lexington, SC		4.6			4.6		10/14		4.23
Downtown Short Pump, Richmond, VA		13.2			13.2		10/14		4.23
Loisdale Center, Springfield, VA		11.7			11.7		10/14		4.23
Windsor Court, Windsor, CT		7.7			7.7		10/14		4.23
Abernathy Square, Atlanta, GA		12.8			12.8		10/14		4.23
Sam’s Club, Worcester, MA		5.7			5.7		10/14		4.23
Walmart Supercenter, Alliance, OH		7.6			7.6		10/14		4.23
Kroger, Allentown, PA		2.8			2.8		10/14		4.23
Reno Riverside, Reno, NV		3.1	(6)		3.1		02/15	Prime + 170
Hamilton Commons, Mays Landing, NJ		8.7			8.7		09/15		4.70
Tops Plaza, Lockport, NY		8.1			8.1		01/16		8.00
Merriam Town Center, Merriam, KS (TIF)		2.3			2.3		02/16		6.90
Freedom Plaza, Rome, NY		3.0			3.0		09/16		7.85
Walmart, Winston-Salem, NC		7.8			7.8		09/17		6.00
Thruway Plaza (Walmart), Cheektowaga, NY		3.4			3.4		10/17		6.78
Tops Plaza, Ithaca, NY		13.6			13.6		01/18		7.05
Walmart, Greenville, SC		7.4			7.4		02/18		6.00
Mohawk Commons, Niskayuna, NY		18.0			18.0		12/18		5.75
Lowes, Hendersonville, TN		6.8			6.8		01/19		7.66
Plaza Isabela, Isabela, PR		23.2			23.2		06/19		7.59
Plaza Cayey, Cayey, PR		22.0			22.0		06/19		7.59
Plaza Walmart, Guayama, PR		12.4			12.4		06/19		7.59
Plaza Fajardo, Fajardo, PR		26.4			26.4		06/19		7.59
Mariner Square, Spring Hill, FL		4.1			4.1		09/19		9.75
Northland Square, Cedar Rapids, IA		7.8			7.8		01/20		9.38
Connecticut Commons, Plainville, CT (TIF)		6.2			6.2		04/21		7.13

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Consolidated Debt Detail (con’t)
(In Millions)


	Loan		DDR		Final Maturity		Interest
	Balance		Proportionate Share		Date (1)		Rate (2)
West Valley Marketplace, Allentown, PA		14.4		14.4		07/21		6.95
Liberty Fair Mall, Martinsville, VA		18.5		18.5		12/29		10.46
Gulfport Promenade, Gulfport, MS		30.0		30.0		12/37	SIFMA + 5bp

Total Mortgage Debt	$	1,365.8	$	1,343.7

Total Consolidated Debt	$	4,395.3	$	4,373.2


					Wtd. Avg.	Wtd. Avg.
					Maturity	Interest Rate
Fixed Rate	$	3,077.1	$	3,067.2	4.4 years		6.19	%
Variable Rate		1,318.2		1,306.0	2.7 years		2.18	%

	$	4,395.3	$	4,373.2	3.9 years		4.99	%


CUMULATIVE REDEEMABLE PREFERRED SHARES	Outstanding Amount
Class G - 8.0%	$	180.0
Class H - 7.375%		205.0
Class I - 7.5%		170.0

	$	555.0

DERIVATIVE INSTRUMENTS

Notional Amount

Underlying Debt Hedged

Rate Hedged

Fixed Rate

Termination Date

Interest Rate Swap

100.0

Secured Credit Facility

1 mo. LIBOR

4.815

February 21, 2012


Notes:

(1)		Assumes borrower extension options are exercised.

(2)		Interest rate figures reflect coupon rates of interest and do not include discounts or premiums. Annualized deferred finance cost amortization of approximately $13.0 million is offset by approximately $3.0 million of fair market value adjustments.

(3)		The convertible notes may be net settled with DDR’s common stock once the stock price rises above $64.23 per share.

		The principal balance on these notes is to be settled in cash. Included in this amount is $1.6 million recorded at September 30, 2010 for the accretion of the convertible debt to comply with accounting standards.

(4)		The convertible notes may be net settled with DDR’s common stock once the stock price rises above $74.56 per share.

		The principal balance on these notes is to be settled in cash. Included in this amount is $5.9 million recorded at September 30, 2010 for the accretion of the convertible debt to comply with accounting standards.

(5)		Mortgage debt listed on this schedule excludes an $11.1 million mortgage encumbering the Consumer Square West Shopping Center. This center was placed in the control of a court appointed receiver in July 2010 and the entity that holds the shopping center and nonrecourse mortgage loan was deconsolidated for accounting purposes. The Company is currently in negotiations with the lender to modify and/or terminate the receivership agreement, which could result in the Company obtaining control of the entity. Should this occur, the Company may be required to consolidate the nonrecourse obligation and real estate asset in subsequent periods.

(6)		The following loans have floor interest rates:


Loan		Floor
Merriam Village, Merriam, KS		1 month LIBOR of 1.00%
Kyle Crossing, Kyle, TX		4.00%
Perimeter Pointe, Atlanta, GA		1 month LIBOR of 2.00%
Town Center Prado, Marietta, GA		1 month LIBOR of 2.00%
Reno Riverside, Reno, NV		5.95%

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Joint Venture Debt Detail
(In Millions)


	Loan			DDR		Final Maturity		Interest
	Balance			Proportionate Share		Date (1)		Rate
DDRTC Core Retail Fund, LLC
DDRTC Holdings Pool 5, LLC (16 assets)	$	186.0		$	27.9		02/12	LIBOR + 65
DDRTC Holdings Pool 3, LLC (17 assets)		555.0			83.3		03/12		5.48
DDRTC Holdings Pool 1, LLC (9 assets)		350.2			52.5		03/17		5.45
DDRTC Holdings Pool 6, LLC
Aiken Exchange, Aiken, SC		7.4			1.1		05/10		9.37
Cox Creek Shopping Center, Florence, AL		13.8			2.1		03/12		7.09
Cypress Trace, Fort Myers, FL		16.0			2.4		04/12		5.00
Waterfront Marketplace, Homestead, PA		28.1			4.2		08/12		6.35
Waterfront Town Center, Homestead, PA		37.0			5.6		08/12		6.35
Creeks at Virginia Center, Glen Allen, VA		25.0			3.7		08/12		6.37
Willoughby Hills Shop Ctr, Willoughby Hills, OH		12.1			1.8		07/18		6.98

Total DDRTC Core Retail Fund LLC	$	1,230.6		$	184.6

DDR Domestic Retail Fund I
Southampton Village, Tyrone, GA	$	6.7		$	1.3		05/11		4.66
Village Center Outlot, Racine, WI		2.1			0.4		07/11		5.17
Center Pointe Plaza, Easley, SC		4.3			0.9		08/11		5.32
Shoppes on the Ridge, Lake Wales, FL		9.6			1.9		12/11		4.74
Publix Brooker Creek, Palm Harbor, FL		5.0			1.0		12/11		4.61
Watercolor Crossing, Santa Rosa, FL		4.4			0.9		01/12		4.76
Heather Island Plaza, Ocala, FL		6.2			1.2		12/12		5.00
Hilliard Rome, Columbus, OH		10.7			2.1		01/13		5.87
Meadows Square, Boynton Beach, FL		1.9			0.4		07/13		6.72
Village Center, Racine, WI		12.1			2.4		04/15		4.21
Paradise Promenade, Davie, FL		6.2			1.2		04/15		4.21
West Falls Plaza, West Patterson, NJ		11.8			2.4		04/15		4.21
DDR Domestic Retail Fund I (52 assets)		885.0			177.0		07/17		5.60

Total DDR Domestic Retail Fund I	$	965.8		$	193.1

Coventry II
Bloomfield Park, Bloomfield Hills, MI	$	39.4		$	—		12/08	Prime + 300
Buena Park, Buena Park, CA		61.0			12.2		10/10		9.00
Christown Spectrum Mall, Phoenix, AZ		46.0			9.2		01/11	LIBOR + 70
Fairplain Plaza, Benton Harbor, MI		15.9			3.2		05/11	LIBOR + 300
Totem Lake Mall, Kirkland, WA		27.9			5.6		05/11	LIBOR + 300
Westover Marketplace, San Antonio, TX		20.6	(2)		4.1		11/11	LIBOR + 350
Watters Creek, Allen, TX		115.9	(2)		23.2		07/12	LIBOR + 300
Watters Creek, Allen, TX		23.0	(2)		4.6		07/12	LIBOR + 600
Marley Creek Square, Orland Park, IL		10.8			1.1		07/12	LIBOR + 525
Coventry II DDR SM (39 assets)		68.2			13.6		09/12	LIBOR + 225
Coventry II DDR SM		32.7			6.5		09/12	LIBOR + 225
Tri-County Mall, Cincinnati, OH		11.7			2.3		02/15		10.30
Tri-County Mall, Cincinnati, OH		152.0			30.4		02/15		5.66

Total Coventry II	$	625.0		$	116.0

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Joint Venture Debt Detail (con’t)
(In Millions)


	Loan		DDR		Final Maturity		Interest
	Balance		Proportionate Share		Date (1)		Rate
DDR SAU Retail Fund, LLC
Shops at John’s Creek, Suwanee, GA	$	2.8	$	0.6		10/10		4.89
Brookhaven, Atlanta, GA		10.4		2.1		12/10		4.89
Lewandowski Commons, Lyndhurst, NJ		12.5		2.5		03/11		5.77
South Square, Durham, NC		12.6		2.5		10/12		5.06
Shoppes at Wendover II, Greensboro, NC		14.4		2.9		10/12		5.06
North Hampton Market (Phase I & II), Taylors, SC		10.5		2.1		10/12		5.08
Oakland Market Place, Oakland, TN		3.6		0.7		10/12		5.04
Crossroads Square, Morristown, TN		4.9		1.0		12/12		5.31
Cascade Corners, Atlanta, GA		4.0		0.8		12/12		5.42
Hilander Village, Roscoe, IL		9.4		1.9		12/12		5.41
Glenlake Plaza, Indianapolis, IN		8.2		1.6		12/12		5.44
Broadmoor Plaza, South Bend, IN		11.0		2.2		12/12		5.44
Milan Plaza, Milan, MI		2.2		0.4		12/12		5.49
West Towne Commons, Jackson, TN		4.8		1.0		12/12		5.44
American Way, Memphis, TN		6.7		1.3		12/12		5.44
Kroger Junction, Pasadena, TX		3.8		0.8		12/12		5.44
Kroger Plaza, Virginia Beach, VA		1.8		0.4		12/12		5.44
Willowbrook Commons, Nashville, TN		7.0		1.4		03/13		5.41
Harper Hill Commons, Winston Salem, NC		10.4		2.1		04/13		5.79
The Point, Greenville, SC		15.8		3.2		04/13		5.64
Plaza at Carolina Forest, Myrtle Beach, SC		14.2		2.8		05/13		5.97
Alexander Pointe, Salisbury, NC		5.1		1.0		08/13		5.92
Patterson Place, Durham, NC		20.3		4.1		12/13		5.67

Total DDR SAU Retail Fund LLC	$	196.3	$	39.4

Sonae Sierra Brasil Limitadas	$	14.6	$	7.0		10/10	CDI + 322
RVIP VIII, Austin, TX		23.4		6.0		01/11	LIBOR + 100
RVIP VII, Pleasant Hill, CA		48.8		10.3		04/11	LIBOR + 400
Sun Center Limited, Columbus, OH		11.8		9.3		04/11		8.48
Sun Center Limited, Columbus, OH		5.7		4.5		05/11		5.42
RO & SW Realty LLC (11 assets)		22.7		5.7		06/11		5.96
DOTRS LLC, Macedonia, OH		21.0		10.5		08/11		6.05
RVIP IIIB, Deer Park, IL		60.0		15.5		10/11		5.59
DDRA Ahwatukee Foothills LLC, Phoenix, AZ		108.9		54.5		08/12		5.30
DDRA Arrowhead Crossing LLC, Phoenix, AZ		47.6		23.8		08/12		5.30
DDRA Maple Grove Crossing LLC		29.4		14.7		08/12		5.30
DDRA Tanasbourne Town Center LLC		58.0		29.0		08/12		5.30
DDRA Eagan Promenade LLC		36.1		18.1		08/12		5.30
Jefferson County Plaza LLC, Arnold, MO		3.6		1.8		08/12	LIBOR + 200
DDR MDT PS, LLC (7 assets)		86.0		—		07/13		6.00
DDR Markaz II (13 assets)		150.5		30.1		11/14		5.15
TRT DDR Holdings I LLC (3 assets)		110.0		11.0		05/17		5.51
Lennox Town Center Limited, Columbus, OH		1.0		0.5		06/17		6.44
Lennox Town Center Limited, Columbus, OH		26.0		13.0		06/17		5.64

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010

Joint Venture Debt Detail (con’t)
(In Millions)


	Loan		DDR		Final Maturity		Interest
	Balance		Proportionate Share		Date (1)		Rate
Cole DDR MT Independence, Independence, MO		34.1		5.0		01/19		5.95
Sonae Sierra Brasil Limitadas		65.7		31.4		12/20		8.50
Sonae Sierra Brasil Limitadas		14.5		6.9		10/25	TR + 1130

Total	$	3,997.1	$	841.6


					Wtd. Avg.		Wtd. Avg.
					Maturity		Interest Rate
Total Joint Venture Debt:
Fixed Rate	$	3,305.9	$	710.6	4.2 years			5.70	%
Variable Rate		691.2		131.0	1.5 years			3.32	%

	$	3,997.1	$	841.6	3.8 years			5.29	%


Notes:

(1)		Assumes borrower extension options are exercised.

(2)		The following loans have floor interest rates:


Loan		Floor
Westover Marketplace, San Antonio, TX		1 month LIBOR of 1.50%
Watters Creek, Allen, TX		1 month LIBOR of 1.50%

Developers Diversified Realty
Quarterly Financial Supplement
For the nine months ended September 30, 2010


Corporate Headquarters	Investor Relations

3300 Enterprise Parkway	Kate Deck
Beachwood, Ohio 44122	Toll Free: (877) 225-5337
Main: (216) 755-5500	Direct: (216) 755-6408
Website: www.ddr.com	Email: kdeck@ddr.com

Equity Research Coverage

Banc of America / Merrill Lynch
Craig Schmidt	craig_schmidt@ml.com	(646) 855-3640
Lindsay Schroll	lindsay_schroll@ml.com	(646) 855-1829

Cowen & Company
Jim Sullivan	james.sullivan@cowen.com	(646) 562-1380
Steve Boyd	stephen.boyd@cowen.com	(646) 562-1382

Citigroup
Michael Bilerman	michael.bilerman@citi.com	(212) 816-1383
Quentin Velleley	quentin.velleley@citi.com	(212) 816-6981

Deutsche Bank
John Perry	john.perry@db.com	(212) 250-4912
Vincent Chao	vincent.chao@db.com	(212) 250-6799

Goldman Sachs
Jay Habermann	jonathan.habermann@gs.com	(917) 343-4260
Jehan Mahmood	jehan.mahmood@gs.com	(212) 902-2646

Green Street Advisors
Jim Sullivan	jsullivan@greenst.com	(949) 640-8780
Laura Clark	lclark@greenst.com	(949) 640-8780

Hilliard Lyons
Carol Kemple	ckemple@hilliard.com	(502) 588-1142

J.P. Morgan
Michael Mueller	michael.w.mueller@jpmorgan.com	(212) 622-6689
Joe Dazio	joseph.c.dazio@jpmorgan.com	(212) 622-6416

Macquarie
Ki Bin Kim	kibin.kim@macquarie.com	(212) 231-6386

RBC Capital Markets
Rich Moore	rich.moore@rbccm.com	(440) 715-2646
Wes Golladay	wes.golladay@rbccm.com	(440) 715-2650

Sandler O’Neill
Alex Goldfarb	agoldfarb@sandleroneill.com	(212) 466-7937
James Milam	jmilam@sandleroneill.com	(212) 466-8066

UBS
Ross Nussbaum	ross.nussbaum@ubs.com	(212) 713-2484
Christy McElroy	christy.mcelroy@ubs.com	(203) 719-7831

Wells Fargo
Jeff Donnelly	jeff.donnelly@wachovia.com	(617) 603-4262
Robert Laquaglia	robert.laquaglia@wachovia.com	(617) 603-4280

Fixed Income Research Coverage

Citigroup
Tom Cook	thomas.n.cook@citigroup.com	(212) 723-1112

J.P. Morgan
Mark Streeter	mark.streeter@jpmorgan.com	(212) 834-5086

Wells Fargo
Thierry Perrein	thierry.perrein@wachovia.com	(704) 715-8455

(H)		The Company’s proportionate share of joint venture land held for development and construction in progress aggregated approximately $69.9 million and $37.6 million at September 30, 2010 and December 31, 2009, respectively.

		The combined condensed balance sheet at September 30, 2010 included a joint venture under development that was deconsolidated by the Company as of January 1, 2010 due to the adoption of ASC 810 (Footnote M on page 13 of this release).

(I)		The Company’s proportionate share of joint venture debt aggregated approximately $841.6 million and $917.0 million at September 30, 2010 and December 31, 2009, respectively.



			Total GLA				Owned GLA		Unowned		Unowned
	Total Units		(msf)		Owned Units		(msf)		Units		GLA (msf)

1. Walmart / Sam’s Club		84		13.2		34		5.0		50		8.2
2. Target		53		6.7		7		0.9		46		5.8
3. Lowe’s Home Improvement		30		4.1		12		1.6		18		2.5
4. Home Depot		34		3.8		8		0.9		26		2.9
5. Kohl’s		37		3.2		30		2.6		7		0.6
6. Kmart / Sears		33		2.9		32		2.7		1		0.2
7. Publix Supermarkets		52		2.4		49		2.2		3		0.2
8. TJX Companies		76		2.4		76		2.4		0		0.0
9. Kroger		36		2.0		35		1.9		1		0.1
10. PetSmart		76		1.7		76		1.7		0		0.0