Investments in and Advances to Joint Ventures [Abstract]

Summary of Company's significant equity method joint ventures written off

The Company has a zero basis in the following equity method joint ventures at December 31, 2011 and has no intent or obligation to fund any further capital:


Unconsolidated Real Estate Ventures	Effective Ownership Percentage^(A)	Assets Owned
Coventry II Joint Ventures	0.0 – 20.0%	41 retail sites/centers in several states
DDR MDT PS LLC	0.0	Seven shopping centers in several states

(A)	Ownership may be held through different investment structures. Percentage ownerships are subject to change, as certain investments contain promoted structures.

Condensed Combined Statements of Operations of unconsolidated joint venture investments


	For the Year Ended December 31,
	2011			2010			2009
Condensed combined statements of operations
Revenues from operations	$	697,103		$	649,225		$	759,225

Operating expenses		235,370			247,408			292,375
Impairment charges⁽^B⁾		213,296			65			218,479
Depreciation and amortization		182,545			182,667			212,146
Interest expense		227,597			226,304			276,156

		858,808			656,444			999,156

Loss before other items		(161,705	)		(7,219	)		(239,931	)
Income tax expense (primarily Sonae Sierra Brasil), net		(38,850	)		(20,449	)		(10,013	)
Other income⁽^C⁾		—			10,591			7,153

Loss from continuing operations		(200,555	)		(17,077	)		(242,791	)
Discontinued operations:
Loss from discontinued operations⁽^D⁾		(57,947	)		(20,247	)		(205,565	)
Gain on debt forgiveness⁽^E⁾		2,976			—			—
Gain (loss) on disposition of real estate, net of tax		18,705			(26,674	)		(19,448	)

Loss before gain (loss) on disposition of real estate, net		(236,821	)		(63,998	)		(467,804	)
Gain (loss) on disposition of real estate, net⁽^F⁾		1,733			17			(25,973	)

Net loss	$	(235,088	)	$	(63,981	)	$	(493,777	)

Non-controlling interests		(16,132	)		(458	)		(1,178	)

Net loss attributable to unconsolidated joint ventures	$	(251,220	)	$	(64,439	)	$	(494,955	)

Company’s share of equity in net (loss) income of joint ventures⁽^G⁾	$	(12,979	)	$	6,319		$	(34,522	)

(A)	Includes cash of $222.2 million and $40.1 million at December 31, 2011 and 2010, from the Company’s proportionate share of its investment in Sonae Sierra Brasil. The increase in 2011 primarily related to proceeds generated from Sonae Sierra Brasil’s February 2011 initial public offering.

(B)

For the year ended December 31, 2011, the Company’s proportionate share of the impairment charges was $7.1 million. For the years ended December 31, 2010 and 2009, the Company’s share of the impairment charges was zero as the Company had written off its basis in those investments. The Company’s share of the impairment charges was reduced by the impact of the other than temporary impairment charges recorded on these investments as discussed below.

(C)

The 2010 activity related to debt forgiveness on one property owned by a joint venture with the Coventry II Fund (hereinafter defined) in which the Company has a zero basis. The 2009 activity related to the liquidation of the Company’s investment in the publicly traded units of a previous unconsolidated joint venture.

(D)

For the years ended December 31, 2011, 2010 and 2009, impairment charges reclassified to discontinued operations related to asset sales were $59.2 million, $21.0 million and $204.8 million, respectively, of which the Company’s proportionate share was $5.8 million, $0.7 million and $8.1 million, respectively. The Company’s share of the impairment charges was reduced by the impact of the other than temporary impairment charges recorded on these investments as discussed below.

(E)

Gain on debt forgiveness is related to one property owned by an unconsolidated joint venture that was transferred to the lender pursuant to a consensual foreclosure proceeding. The operations of the asset have been reclassified as discontinued operations in the condensed combined statements of operations.

(F)

In 2009, a joint venture with the Coventry II Fund transferred its interest in the Kansas City, Missouri, project (Ward Parkway) to the lender and recorded a loss of $26.7 million. The Company recorded a $5.8 million loss in 2009 related to the write-off of the book value of its equity investment, which is included within equity in net loss of joint ventures in the consolidated statement of operations.

(G)

The difference between the Company’s share of net income (loss), as reported above, and the amounts included in the consolidated statements of operations is attributable to the amortization of basis differentials, deferred gains and differences in gain (loss) on sale of certain assets due to the basis differentials and other than temporary impairment charges. The Company is not recording income or loss from those investments in which its investment basis is zero and the Company does not have the obligation or intent to fund any additional capital. Adjustments to the Company’s share of joint venture net income (loss) for these items are reflected as follows (in millions):

Investments in and advances to joint ventures


	For the Year Ended December 31,
	2011			2010
Company’s share of accumulated equity	$	402.2		$	480.2
Basis differentials^(A)		(145.6	)		(147.5	)
Deferred development fees, net of portion related to the Company’s interest		(3.6	)		(3.4	)
Notes receivable from investments		0.4			0.6
Notes and accrued interest payable to DDR^(B)		100.5			87.3

Investments in and Advances to Joint Ventures	$	353.9		$	417.2

(A)

This amount represents the aggregate difference between the Company’s historical cost basis and the equity basis reflected at the joint venture level. Basis differentials recorded upon transfer of assets are primarily associated with assets previously owned by the Company that have been transferred into an unconsolidated joint venture at fair value. Other basis differentials occur primarily when the Company has purchased interests in existing unconsolidated joint ventures at fair market values, which differ from its proportionate share of the historical net assets of the unconsolidated joint ventures. In addition, certain transaction and other costs, including capitalized interest, reserves on notes receivable as discussed below and impairments of the Company’s investments that were other than temporary may not be reflected in the net assets at the joint venture level. Certain basis differentials indicated above are amortized over the life of the related assets.

(B)

The Company has made advances to several joint ventures that bear annual interest at rates ranging from 10.5% to 12.0%. Maturity dates are all payment on demand. During 2011, the Company recorded a $1.6 million reserve associated with a $4.3 million construction loan advanced to a 50%-owned joint venture. The impairment was driven by the deterioration in value of the real estate collateral supporting the note. The stated terms are payable on demand from available cash flow from the property after debt service on the first mortgage. The reserve is classified as an impairment of joint venture investments in the consolidated statement of operations for the year ended December 31, 2011. The Company advanced financing of $66.9 million to one of the Coventry II Fund joint ventures, Coventry II DDR Bloomfield, related to a development project in Bloomfield Hills, Michigan (the “Bloomfield Loan”). This loan is in default and was fully reserved by the Company in 2008 as discussed below.

Total impairment charges recorded for unconsolidated joint venture investments


	For the Year Ended December 31,
	2011		2010		2009
DDR Markaz II LLC	$	1.3	$	—	$	—
Various Coventry II Fund joint ventures		—		0.2		52.4
DDRTC Core Retail Fund		—		—		55.0
DDR-SAU Retail Fund		—		—		6.2
DPG Realty Holdings		—		—		3.6
Central Park Solon/RO & SW Realty		—		—		0.5

		1.3		0.2		117.7
Loan loss reserve		1.6		—		66.9

Total impairments of joint venture investments	$	2.9	$	0.2	$	184.6