Developers Diversified Realty Corporation (DDR), a leading real estate investment trust (REIT), recently provided an update on its 2009 accomplishments along with an outlook for 2010. The company expects 2010 FFO (funds from operations) to range between $1.05 and $1.15 per share. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
 
Despite the challenging macroeconomic environment, Developers Diversified raised about $2.0 billion in capital in 2009 through asset sales, equity and debt. During the full fiscal year, the company sold $590 million worth of JV assets, in which its share was $380 million. Developers Diversified sold $320 million of common equity – $113 million to the Otto Group and $207 million through the continuous equity program.
 
The company purchased approximately $816 million of its senior unsecured notes in aggregate face value through tender offers and open market purchases at a discount to par of approximately $172 million. In addition, Developers Diversified issued $300 million of 9.625%, 7-year senior unsecured notes in aggregate face value, and raised over $600 million in new mortgage capital.
 
In 2009, Developers Diversified repaid approximately $350 million of consolidated mortgage debt and eliminated approximately $1.3 billion of unconsolidated mortgage debt. Total consolidated debt at year-end 2009 was $5.2 billion, an approximate $700 million reduction from year-end 2008. Developers Diversified also extended its weighted average debt maturity to more than three years. Currently, wholly owned mortgage debt maturities for 2010, excluding loans with extension options, total approximately $36 million and 2010 unsecured debt maturities total $329 million. About $530 million is currently available under revolving credit facilities.
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