DDR CORP. INVESTOR PRESENTATION

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Gillian Grant
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1 DDR CORP.

2 DDR Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, both as amended, with respect to the Company s expectation for future periods. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. For this purpose, any statements contained herein that are not historical fact may be deemed to be forward-looking statements. There are a number of important factors that could cause our results to differ materially from those indicated by such forward-looking statements, including, among other factors, property damage, expenses related thereto and other business and economic consequences (including the potential loss of rental revenues) resulting from extreme weather conditions in locations where we own properties, and the ability to estimate accurately the amounts thereof; sufficiency and timing of any insurance recovery payments related to damages from extreme weather conditions; local conditions such as supply of space or a reduction in demand for real estate in the area; competition from other available space; dependence on rental income from real property; the loss of, significant downsizing of or bankruptcy of a major tenant; redevelopment and construction activities may not achieve a desired return on investment; our ability to buy or sell assets on commercially reasonable terms; our ability to complete acquisitions or dispositions of assets under contract; our ability to secure equity or debt financing on commercially acceptable terms or at all; our ability to enter into definitive agreements with regard to our financing and joint venture arrangements or our failure to satisfy conditions to the completion of these arrangements; the success of our deleveraging strategy; and any impact or results from the Company s portfolio transition or any change in strategy. For additional factors that could cause the results of the Company to differ materially from those indicated in the forward-looking statements, please refer to the Company s Form 10-K for the year ended December 31, The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof. In addition, this presentation includes certain non-gaap financial measures. Reconciliations of these non-gaap financial measures to the most directly comparable GAAP measures can be found in the Company s most recent earnings press release and quarterly financial supplement which are available on our website at 2 SAFE HARBOR STATEMENT

3 SUMMARY Nine Month Progress Report - Decisive Actions Short-Term Strategy Update 2017 Guidance Balance Sheet Restructuring Leasing Update - Steady Progress Actively Managing DDR Real Estate Transactions Portfolio Review Framework Deboxing - Accretive Economics Portfolio Diversity Puerto Rico Update Priorities Current Conditions Impact to 3Q Financials Sears and Mall Proximity Analysis 3

4 NINE MONTH PROGRESS REPORT DECISIVE ACTIONS Months 1 3 Organizational Streamlining, Initial Portfolio Review & Strategy Planning - Right-sized organization: 12% head count reduction, $6MM annualized G&A reduction - Assessed / sustained disposition pipeline; began in-depth portfolio analysis - 10-year Debt and Perpetual Preferred transactions refinance near-term maturities Months 4 6 JV Transaction Execution, Portfolio Review Completion & Additional Balance Sheet Progress - Recapitalization DDRM / Manatee JV - Completed portfolio review - Repaid $300MM 2020 bonds and $200MM secured term loan with new 7-year issuance and asset sale proceeds Months 7 9 Completion of Debt Maturity Extension Process, Puerto Rico Recovery & Disposition Execution - Recast and upsized $1.0BN revolving credit facilities - Puerto Rico recovery efforts - Achieved sales threshold in Blackstone III JV - $55MM repaid YTD 4

5 SHORT-TERM STRATEGY UPDATE 2017 GUIDANCE UPDATE (AS OF NOVEMBER 2, 2017) 2017 Guidance Change Continental U.S. SSNOI - Previous: -1.0% % - Revised: -0.5% % Puerto Rico SSNOI - Withdrawing PR SSNOI guidance due to Hurricane Maria Reiterating Prior Guidance Continental U.S. Leased Rate: 93.25% % - Previous: -1.0% % - Revised: -0.5% % Fees: $30-33MM Interest Income: $26-29MM G&A Expense - Previous: $72 - $75MM - Current: $72MM 5

6 SHORT-TERM STRATEGY UPDATE BALANCE SHEET RESTRUCTURING Closing of $1.0B expanded and extended line of credit and term loan facilities marks conclusion of maturity extension process Remaining balance sheet restructuring will focus on leverage reduction Current weighted average debt maturity now in top quartile of peer group Debt/EBITDA expected to be in middle of peer group 7.5x $1,200 4Q16 MATURITIES ($MM) 3Q2017 MATURITIES ($MM) NET DEBT / EBITDA 7.0x 6.5x 6.0x 5.5x 5.0x DDR YE16 BRX ROIC AKR WRI RPAI UE AAT REG DDR 3Q17 FRTR KIMM $1,000 $800 $600 $400 FOCUS AREA 4.5x $ x WEIGHTED AVERAGE DEBT MATURITY Source: Green Street Advisors. Assumes 30-year maturity for perpetual preferred stock. DDR data as of 3Q2017. Peer data as of 2Q

SHORT-TERM STRATEGY UPDATE ACCESS TO CAPITAL AND LIQUIDITY 2017 capital markets activity and YTD dispositions highlight DDR s access to capital -

of perpetual preferred stock raised YTD (June offering) DEBT CAPITAL RAISED (BN) $2,500 $2,000 $1,500 $1,000 $500 CAPITAL RAISED (2012-3Q17) 2012 2013

of maturities - Outside of $82MM July 2018 maturity, no unsecured maturities until 1Q2020 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 TOTAL

7 SHORT-TERM STRATEGY UPDATE ACCESS TO CAPITAL AND LIQUIDITY 2017 capital markets activity and YTD dispositions highlight DDR s access to capital - $992MM of dispositions completed through October 2017 ($639MM Pro-Rata) - $800MM of unsecured capital raised YTD (May and August offerings) - $175MM of perpetual preferred stock raised YTD (June offering) DEBT CAPITAL RAISED (BN) $2,500 $2,000 $1,500 $1,000 $500 CAPITAL RAISED (2012-3Q17) UNSECURED DEBT PERPETUAL PREFERRED MORTGAGES COMMON EQUITY DISPOSITIONS Significant Liquidity On Hand - Capacity to fund 3+ years of maturities - Outside of $82MM July 2018 maturity, no unsecured maturities until 1Q2020 $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 TOTAL LIQUIDITY BRIDGE ($MILLIONS) $20 CASH $940 LOC AVAILABILITY $500 ACCORDIAN AMOUNT $250 REMAINING AVAILABLE UNDER ATM PROGRAM $1,710 TOTAL LIQUIDITY (9/30/17) 7

8 SHORT-TERM STRATEGY UPDATE LEVERAGE PROGRESS AND OUTLOOK Leverage Progress Repaid $300MM 2017 Notes and $300MM 2018 Notes Repaid $300MM 2020 Notes Repaid $200MM Secured Term Loan Repaid $233MM of Mortgages - Secured by $562MM of Gross Book Value (19% debt yield) - Increases and improves unencumbered asset pool Leverage Outlook Target: 6x net Debt/EBITDA (Pro-rata), excluding perpetual preferred stock Sources: $500MM of proceeds post 3Q Estimated Uses - $103MM 2018 mortgage maturities (Repaid Nov. 1) - $200MM of $400MM unsecured term loan - $82MM 2018 unsecured notes - $100MM of additional mortgage maturities Additional Sources of Potential Equity - JV asset sales - $327MM preferred equity repayment 8

9 SHORT-TERM STRATEGY UPDATE STEADY LEASING PROGRESS 339 KSF anchor space and 197 KSF shop space in LOI/negotiations 24 of the 28 former Sports Authority, HHGregg, and Golfsmith spaces now re-leased or under LOI 90% of new anchor leases represent new locations 2Q 3Q CHANGE Leased LOI Negotiating Leased LOI Negotiating Leased LOI Negotiating

SHORT-TERM STRATEGY UPDATE 2017 LEASING ECONOMICS DDR has generated doubledigit returns on over $75MM of leasing capital in 2017 excluding downtime 30% 25% 20% 24.

10 SHORT-TERM STRATEGY UPDATE 2017 LEASING ECONOMICS DDR has generated doubledigit returns on over $75MM of leasing capital in 2017 excluding downtime 30% 25% 20% 24.7% 2017 LEASING ECONOMICS Approximately 4.5MM SF of total leasing activity Significant cushion for deterioration in economics 15% 10% 5% 0% 10.1% 7.1% 7.9% NON-ANCHOR ANCHOR COMBINED COMBINED EXCLUDING COST OF DOWNTIME INCLUDING COST OF DOWNTIME 10

11 ACTIVELY MANAGING REAL ESTATE 2017 DISPOSITION ACTIVITY YTD TRANSACTION SUMMARY ($MILLIONS) # OF ASSETS SALE PRICE CAP RATE 100% PRS 100% PRS DDR has sold almost $1BN of assets YTD at a WA cap rate less than 8% POWER GROCERY-ANCHORED SINGLE TENANT / OTHER LAND PREFERRED EQUITY $463 $332 $97 $892 $45 $55 $992 $292 $157 $90 $539 $45 $55 $ % % - - Buyers for the geographically diverse group of assets included public and private REITs, institutions, and private buyers DISPOSITIONS 2017 YTD Dispositions focused on lower quality but durable assets Consolidated Assets unconsolidated Assets 11

12 ACTIVELY MANAGING REAL ESTATE ASSET REVIEW FRAMEWORK CONSUMER Spending Power RENT Mark-to-Market DEMAND Trip Generation SF USAGE Value Proposition opportunity INTERSECTION Convenience VISIBILITY Eyeballs LAYOUT Cross-Shopping DRAW Tenant Mix 12

ACTIVELY MANAGING REAL ESTATE DEBOXING EXAMPLE ACCRETIVE ECONOMICS BUENA PARK PLACE BUENA PARK PLACE BUENA PARK, CALIFORNIA TRADE AREA Population: 1,245,500 Households: 366,700 Avg.

13 ACTIVELY MANAGING REAL ESTATE DEBOXING EXAMPLE ACCRETIVE ECONOMICS BUENA PARK PLACE BUENA PARK PLACE BUENA PARK, CALIFORNIA TRADE AREA Population: 1,245,500 Households: 366,700 Avg. Household Income: $81,800 ATTRIBUTES Total GLA: 246 KSF Owned GLA: 215 KSF ABR PSF: $15.16 SITE FEATURES A. B. C. D. E. F. G. H. I. 13 Kohl s Dollar Tree PetSmart Michaels Aldi Carl s Jr. Panda Express Sprint, UPS, Subway, Starbucks Chick-Fil-A

ACTIVELY MANAGING REAL ESTATE DEBOXING EXAMPLE ACCRETIVE ECONOMICS BUENA PARK PLACE Reconfiguring entitled space is both commonplace and profitable in the shopping center industry EXTG.

14 ACTIVELY MANAGING REAL ESTATE DEBOXING EXAMPLE ACCRETIVE ECONOMICS BUENA PARK PLACE Reconfiguring entitled space is both commonplace and profitable in the shopping center industry EXTG. COMPACTOR EXTG. TRUCK DOCK H2O Dark but rent paying 39 KSF Toys R Us lease expected to be rejected in bankruptcy 12'-3" 125'-9" EXTG. RESTROOM LOCATION 49'-9" Five Below / Planet Fitness at lease. LOI with discount retailer. 35'-9" 45'-9" 35'-5 1/4" 44'-9" $3.8MM cost 29% gross // 8% incremental yield // $600k value creation 148'-1" 183'-4" FIVE BELOW DISCOUNT RETAILER ±9,000 SF ±13,750 SF PLANET FITNESS 230 ±16,425 SF 58'-0" 74'-9" 63'-3" 14

15 ACTIVELY MANAGING REAL ESTATE PORTFOLIO DIVERSITY VALUE/DISCOUNT TILT ASSET WITH SIGNIFICANT GROCERY COMPONENT SHOP TO ANCHOR BALANCE 35% Centers With No Major Discount Component 65% Centers Anchored by A QUALITY Discounter 34% NON-GROCERY COMPONENT 12% specialty grocer 25% traditional GROCER 29% mass merchant 24% Shop BY GLA 38% Shop By ABR 62% Anchor By ABR 76% Anchor By GLA High quality discounters, including Ross, T.J. Maxx brands, and Burlington anchor wholly-owned centers comprising 65% of our ABR Two thirds of centers are anchored by traditional grocers, specialty grocers or mass merchants with a grocery component including Walmart, Target, and Costco DDR s centers derive roughly almost 40% of ABR from in-line tenants, even though only 24% of the space is leased to shop tenants 15

16 PUERTO RICO UPDATE PUERTO RICO PRIORITIES Account for and aid DDR team in Puerto Rico Remove debris and initiate generator power Get tenants open Work with insurance company and arrange payments Complete permanent repairs 16

17 PUERTO RICO UPDATE PUERTO RICO CURRENT CONDITIONS Power fully/partially restored at 9 of 12 properties, including all enclosed mall assets 75% of leased GLA open for business, excluding Palma Real - 24 of 33 anchors open using grid and/or generator power - Remaining shop openings generally dependent on grid restoration and/or repairs to damage Work with insurers to develop an initial cost estimate = $ MM, including: - Physical repair of properties and tenant spaces for which DDR is responsible - Approximately 33% of the estimate is expected costs related to the restoration of Palma Real Initial estimate excludes: - Physical repair of spaces which are separately insured by anchor tenants (Approx. $30MM) - Higher costs associated with labor and material scarcity DDR CARRIES PROPERTY, CASUALTY, AND BUSINESS INTERRUPTION INSURANCE WITH LIMITS OF $330MM 17

18 PUERTO RICO UPDATE PUERTO RICO HURRICANE FINANCIAL STATEMENT IMPACT $6MM Hurricane Casualty and Impairment loss - Includes $1MM of Hurricane Irma expenses (debris removal) $2.6MM of lost revenues attributable to Hurricane Irma and Maria - $1MM will not be reimbursed due to insurance deductible Received a $2MM business interruption insurance advance after quarter end - Will be recorded in 4Q17 with other expected advances $65MM initial write-off of historical cost basis associated with damaged property - Partially offset by $60MM increase in accounts receivable representing expected insurance reimbursement 3Q HURRICANE IMPACT FFO SSNOI Lost Revenue Related to Hurricanes $2,558 $2,571 $888 Bad Debt Expense $888 $888 Impairment Charge (Property Damage Deductible) $5,100 Clean Up Costs and Other Expenses $989 $1,045 Hurricane Casualty and Impairment Loss $6,089 $1,045 Valuation Allowance of Prepaid Tax Asset $8,777 $8,777 * Financials in (000s) 18

SEARS AND MALL PROXIMITY ANALYSIS DDR has low exposure to B-mall and Sears/Kmart shadow supply Most anchors consider 1-2 miles the maximum distance

MALL, SEARS, OR KMART LOCATIONS 50% 40% 30% 20% 10% 0% A-THROUGH B-MALL SEARS (A-THROUGH B MALLS + NON-MALL LOCATIONS) KMART (ALL LOCATIONS) 1 MILE 2

19 SEARS AND MALL PROXIMITY ANALYSIS DDR has low exposure to B-mall and Sears/Kmart shadow supply Most anchors consider 1-2 miles the maximum distance for replacement locations - A greater distance is generally seen as a new store rather than a substitute location % OF DDR ASSETS WITHIN 1-2 MILES OF MALL, SEARS, OR KMART LOCATIONS 50% 40% 30% 20% 10% 0% A-THROUGH B-MALL SEARS (A-THROUGH B MALLS + NON-MALL LOCATIONS) KMART (ALL LOCATIONS) 1 MILE 2 MILES Limited Proximity to Potentially Competitive GLA Roughly 70% of Sears locations within 1-2 miles of a DDR center are also located in A- to B-malls 19

DDR CORP. CONFERENCE CALL

DDR CORP. CONFERENCE CALL DDR CORP. 17 CONFERENCE CALL DDR Corp. considers portions of the information in this press release to be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section