DEEP DIVE: PUERTO RICO

PORTFOLIOOVERVIEW1

PUERTO RICO PORTFOLIO OVERVIEW BY THE NUMBERS

15 # of assets

5.1 MSF Total GLA (average size of 340,000 SF)

700,000 Average trade area population vs. domestic of 415,000

13.5% % of DDR NOI (pro rata)

>3.5% Estimated 5 year NOI CAGR for the portfolio

$550 PSF The sales PSF of DDR’s top 3 malls in Puerto Rico...

60% ...and those 3 malls account for 60% of the value

70% % of ABR from U.S.-based retailers

5 out of 11 # of DDR centers among the top Puerto Rico centers in terms of traffic volume

8 out of 15 # of DDR centers anchored by Walmart in Puerto Rico; all 8 are owned by DDR

10 out of 15 # of DDR centers with a grocery component

Source: Arco Publicad[ 3 ]

THE PUERTO RICO PORTFOLIO IS ACCRETIVE TO THE COMPANY’S OPERATIONAL METRICS

+ 40% vs.

DDR Prime

+ 75% vs.

DDR < 10 ksf

Rent PSF Rent PSF$20

$15

$10

$5

$0

$40

$30

$20

$10

$0DDR Puerto Rico DDR

< 10 ksfDDR Puerto Rico

< 10 ksfDDR Prime

Leased Rate

DDR Overall DDR Puerto Rico

100%98%96%94%92%90%88%86%

1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q10 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14

Steady Relative PerformanceDuring U.S. Recession

[ 4 ]

LEASING TRENDS REMAIN STRONG WITH HIGH VOLUME AND GROWING RENTS

Puerto Rico Leasing Volume 600

500

400

300

200

100

02009 2010 2011 2012 2013

(000

SF)

> 2 MILLION SF LEASED SINCE 2009 AT A BLENDED SPREAD OF 7.5%

[ 5 ]

LEASING SPREADS ARE IN EXCESS OF MAINLAND U.S., AND RECEIVABLES HAVE DECLINED DRAMATICALLY

Puerto Rico Receivables >120 days:

New Leasing Spreads (2012 - 2013) Renewal Leasing Spreads (2012 - 2013)

1401201008060402003Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13

20%

25%

15%

10%

5%

0%

8%

10%

6%

4%

2%

0%Puerto Rico Mainland U.S. Puerto Rico Mainland U.S.

Greater than a 75% decline in the last �ve yearsGreater than a 75% decline in the last �ve years

QoQ

Chan

ge (i

ndex

ed to

100

)

[ 6 ]

THREE ENCLOSED, REGIONAL MALLS MAKE UP >60% OF THE VALUE OF THE PUERTO RICO PORTFOLIO AND GENERATE AVERAGE SALES PSF OF $55O

PLAZA DEL SOL PLAZA RIO HONDO PLAZA DEL NORTE

SIZE 686 ksf 551 ksf 681 ksf

ABR (MILLIONS) $17.3 $14.4 $12.4

ANCHORS

Walmart Home Depot Bed Bath & Beyond Old Navy

Kmart Marshalls T.J.Maxx Best Buy

Walmart Sears T.J.Maxx JCPenney

• Sales performance of these three malls is comparable to top U.S. centers including Woodfield Mall (Chicago), Easton Town Center (Columbus), and Short Pump Town Center (Richmond)

• However, given the value-oriented price point of DDR’s malls on the island, a significantly greater volume of transactions is required to achieve comparable sales PSF relative to the “A” malls in the U.S.

[ 7 ]

TRAFFIC VOLUMES PSF ARE WELL IN EXCESS OF THE MOST HIGHLY VISITED U.S. MALLS

DDR-OWNED PUERTO RICO MALLS

TOP TIER U.S. MALLS

PLAZA RIO HONDO

PLAZA DEL SOL

PLAZA DEL

NORTE

MALL OF AMERICA

(MN)

HOUSTON GALLERIA

(TX)

ROOSEVELTFIELD (NY)

TYSON’SCORNER

(VA)

KING OFPRUSSIA

(PA)

ANNUAL VISITORS (MILLIONS)

17 19 13 40 24 22 22 25

GLA (000 SF) 551 686 681 4,200 2,235 2,258 1,958 2,470

VISITOR PSF 31 28 19 10 11 10 11 10

Source: Company documents, property websites, Philadelphia Business Journal, Fairfax Times, Travel and Leisure[ 8 ]

SIGNIFICANT SUPPLY CONSTRAINTS AND POPULATION DENSITY

25

20

15

10

5

0United States

Retail Square Footage per Capita

Puerto Rico

THE SAN JUAN MSA CONTAINS 2.5 MILLION PEOPLE WHICH WOULD RANK IT IN THE TOP 25 U.S. MSA’S WITH A COMPARABLE POPULATION TO CHARLOTTE, DENVER, AND BALTIMORE

[ 9 ]

TOPOGRAPHY AND THE ENTITLEMENT PROCESS DRAMATICALLY LIMIT NEW SUPPLY

SAN JUAN

LEGENDP.R. Highway System

[ 10 ]

SAN JUAN

22

167

20

3

17

1

1

2

3

2222

18

66

26

26

San Juan International Airport

Old San Juan

Plaza del SolBayamón, Puerto Rico

Señorial PlazaRío Piedras, Puerto Rico

Plaza EscorialCarolina, Puerto Rico

Plaza Río HondoBayamón, Puerto Rico

Rexville PlazaBayamón, Puerto Rico

Plaza CarolinaCarolina, Puerto Rico

Plaza Las AméricasSan Juan, Puerto Rico

San Patricio PlazaSan Juan, Puerto Rico

Santa Rosa MallBayamón, Puerto Rico

Mall of San JuanSan Juan, Puerto Rico

DDR CentersCompetition

LEGEND

[ 11 ]

RETAILERPERFORMANCE2

[ 13 ]

“Our first two stores in Puerto Rico have registered higher sales volumes than any other state or market where Anna’s Linens has presence. These sales established precedents, as they surpassed our sales projections by almost 50% after the first month of operations.”

- Alan Gladstone, President, Anna’s Linens, 3Q12

[ 14 ]

“Walmart, the island’s leading retailer, with estimated total sales of $2.5 billion from their combined Walmart, Walmart Supercenter, Amigo supermarkets and Sam’s Club stores, had yet another growth year, according to Iván Báez, Walmart’s vice president of corporate communications.”

- Caribbean Business

[ 15 ]

“The stores down here are performing above our average. That’s a good thing and that’s why we’re comfortable investing. Since we’ve opened on the island, we’ve sold more than 500,000 pairs of shoes.”

– Todd Beurman, SVP of Marketing, Shoe Carnival, 4Q13

[ 16 ]

“We already celebrated a year here on the island, and during this time we have been able to prove that Shoe Carnival is a good fit in the Puerto Rico market for retail sales. We started with two stores and we’re now going to have seven.”

– Todd Beurman, SVP of Marketing, Shoe Carnival, 4Q13

PUERTO RICO IS A LOW RISK AND HIGH PRODUCTIVITY EXPANSION MARKET FOR U.S. RETAILERS

LOW RISK HIGH PRODUCTIVITY

• U.S. Rule of Law

• Potential for statehood

• Lack of currency risk

• Lack of landlord risk

• Strong brand awareness

• Culture of consumerism

• Shopping centers act as “gathering places”

Puerto Rico Sales Volume vs U.S.

• Walmart +135%

• Home Depot +100%

• Sally Beauty +100%

• Champs Sports +70%

• Gamestop +45%

• Old Navy +45%

• Marshalls +40%

• PetSmart +40%

• Shoe Carnival +20%

[ 17 ]

DDR’S OWNED ANCHOR STORES IN PUERTO RICO HAVE GROWN SALES PSF AT OVER 3% ANNUALLY SINCE ACQUISITION

Anchor Sales PSF (>20 ksf)$450

$425

$400

$375

$350

$325

$300

$275

$2502005 2006 2007 2008 2009 2010 2011 2012 2013

+3% CAGR

[ 18 ]

DDR’S OWNED ANCHORS SALES GROWTH IS POSITIVE DESPITE MACROECONOMIC WEAKNESS

Anchor Sales vs GDP Growth6%

5%

4%

3%

2%

1%

0%

-1%

-2%

-3%2006 2007 2008 2009 2010 2011 2012 2013

DDR Anchor Sales Growth YoY

PR GDP Growth

[ 19 ]

NUMEROUS U.S. RETAILERS HAVE LEVERAGED DDR’S PLATFORM TO ENTER THE ISLAND WITH GREAT SUCCESS…

[ 20 ]

…AND STRONG INTEREST CONTINUES FROM OTHER RETAILERS LOOKING TO EXPAND ON THE ISLAND IN THE FUTURE

[ 21 ]

REDEVELOPMENTS3

EXTENSIVE REDEVELOPMENT ACTIVITY ON THE ISLAND AT ATTRACTIVE RISK-ADJUSTED RETURNSPLAZA DEL NORTE - COMPLETED

SCOPE: Consolidated historically vacant space for the 30ksf expansion of JCPenney, a small shop consolidation of three shop units to accommodate a new PetSmart, a new upper level Caribbean Cinemas, and significant interior mall renovations

INVESTMENT: $12.6 Million YIELD: 13.5% LEASED RATE: Increased from 85% to 97%

% SMALL SHOP GLA: Decreased from 24% to 20%

PLAZA DEL SOL - COMPLETED / ACTIVE

SCOPE: Phase I: Relocated existing lower level food court to the newly expanded upper level in order to convert lower level space into highly-trafficked central corridor in-line space; Phase II: Construct an additional 125ksf of new junior anchor spaces

INVESTMENT: $65.7 Million YIELD: 9.3%PHASE I:Complete

PHASE II:Fall 2015

PLAZA SEÑORIAL - FUTURE

SCOPE: Consolidate historically vacant small shop space to accommodate a US junior anchor looking to expand on the island

INVESTMENT: $4.8 Million YIELD: >10%

PROJECTED COMPLETION:Summer 2015

TOTAL PR REDEV PROGRAM

SCOPE: Due to significant retailer demand for space in Puerto Rico, we continue to grow our successful redevelopment initiative on the island

COMPLETED PROJECTS: $57 Million YIELD: 11.8%

ACTIVE/FUTURE PROJECTS:$75 Million

YIELD:>10%

[ 23 ]

COMPLETED REDEVELOPMENT: PLAZA DEL NORTE - BEFORE

XX

XX

XX

X

X

X

XX X X

XX

XX

XMUNICIPAL RD

MUNICIPAL RD

FOODCOURT

±3,195 SFC

107

B119

E140

E141

A116

A122A125A126

A12

8

A13

0A

A13

0B

B100B102B106

B110B112B114

B116GRAN VIA5,200 SF

B118

B120

B126 B128 B129

B13

0B

132

C09

9

C100

C10

2C

104

C10

6

C10

8C

109

C11

0C

111

C11

2

D10

0D104D106D108D110

D116MARIANNE11,292 SF

D120D122

D126D130

D13

4

D14

0 D14

4D

146

D14

7

D150

E124E130

E132E136A

E136B

F100

F102

F104

F106

F108

F110 F112 F114F116

F118

F120

J122

K10

2 K108

KK1KK2

KK

3K

K3A

KK

4K

K5

KK

6

KK

7K

K8

KK9

KK

10

KK11

KK12

KK

13

KK20

L100

L102

L106

L108

L112

OP2PONDEROSA

6,000 SF

OP3OP3A

Q2 Q3

S100

W200AVAILABLE10,096 SF

A110

A112102.1'

100'100'

200'

159.1'

200'

36.3' 40.5'

75'

22.3

'

30.3'

24'

70'

31.7

'

83'

59'

24.8'16.2'

27.5'15.8' 33.4'

40.8

'

22.1

'

23.8'

95.2

'

30.5

'55.4'

42'

18.2

'13.1'

25.7'

53.4

'

2.7'

21.6' 22' 29' 24' 20' 20.2' 20.2' 20' 31'

21.6'

67.2'

15.2'10.7' 22'

18.7'24'24'

24.4'

25.6'

30.5'

55'

68.2

'

103'

13.2

'30

.6'

18'

21'

21'

24'

24'

28.7

'

33.6

'

26.3'

20'

103'

25'

62.9' 14.1'

32.5'55.9'

20.7'

70.5'

98.2'

96.3'

71.6'

83.5'

66.8'

12.8'

33.5'26.9'57.1'

211.7'

26.4' 43.5' 31.4' 33' 42.3' 13.2'21.1'

103.6'

23.8' 23.8'

14.4'

14.5'

44.7'

102.2'

340'

18.8

'49

.3'

20'

20'

40'

20'

39.2

'

88.7

'

111.

2'20

'20

'20

'23.4' 30

.9'

212.

3'

27'

45.6'

41.7

'

87.2

'

89.9

'

25'

47'

23'

29.4

'40'

25.4

'

45.1

'

182.

2'

19.8

'

34'

50'

29.1'

38' 112.4' 22.2' 16' 36.4' 29' 22.6'

388.8'

35.7'

81.5'

73'

49.4

'

260'

147.

7' 39.7'

77.9

'

76.8' 79.8'

46.8'

53.2'

59.9'

147.8'

103'

36.2'

42.8'

23.6'

34.1

'

138.

1'

105.

3'16

.6'

41.6'

101.

4'

41.7'

30'

24.6

'31

.6'

40.6

'

78.2

'

27.2'

17.3'

84.9

'

AVAILABLE

Pre - Redevelopment

[ 24 ]

COMPLETED REDEVELOPMENT: PLAZA DEL NORTE - AFTER

Post - RedevelopmentX

XX

XX

X

X

X

X

XX X X

XX

XX

X

MUNICIPAL RDMUNICIPAL RD

FOODCOURT

±3,195 SF

6

8

C10

7

B119

E140

E141

A116

A122A125A126

A12

8

A13

0A

A13

0B

B100B102B106

B110B112B114

B116GRAN VIA5,200 SF

B118

B120

B126 B128 B129

B13

0B

132

C09

9

C100

C10

2C

104

C10

6

C10

8C

109

C11

0C

111

C11

2

D10

0D104D106D108D110

D116MARIANNE11,292 SF

D120D122

D126D130

D13

4

D14

0 D14

4D

146

D14

7

D150

E124E130

E132E136A

E136B

F100

F102

F104

F106

F108

F110 F112 F114F116

F118

F120

J122

K10

2 K108

KK1KK2

KK

3K

K3A

KK

4K

K5

KK

6

KK

7K

K8

KK9

KK

10

KK11

KK12

KK

13

KK20

L100

L102

L106

L108

L112

OP2

OP3OP3A

Q2 Q3

S100

W200AVAILABLE10,096 SF

A110

A112102.1'

100'100'

200'

159.1'

200'

36.3' 40.5'

75'

22.3

'

30.3'

24'

70'

31.7

'

83'

59'

24.8'16.2'

27.5'15.8' 33.4'

40.8

'

22.1

'

23.8'

95.2

'

30.5

'55.4'

42'

18.2

'13.1'

25.7'

53.4

'

2.7'

21.6' 22' 29' 24' 20' 20.2' 20.2' 20' 31'

21.6'

67.2'

15.2'10.7' 22'

18.7'24'24'

24.4'

25.6'

30.5'

55'

68.2

'

103'

13.2

'30

.6'

18'

21'

21'

24'

24'

28.7

'

33.6

'

26.3'

20'

103'

25'

62.9' 14.1'

32.5'55.9'

20.7'

70.5'

98.2'

96.3'

71.6'

83.5'

66.8'

12.8'

33.5'26.9'57.1'

211.7'

26.4' 43.5' 31.4' 33' 42.3' 13.2'21.1'

103.6'

23.8' 23.8'

14.4'

14.5'

44.7'

102.2'

340'

18.8

'49

.3'

20'

20'

40'

20'

39.2

'

88.7

'

111.

2'20

'20

'20

'

23.4' 30.9

'

212.

3'

27'

45.6'

41.7

'

87.2

'

89.9

'

25'

47'

23'

29.4

'40'

25.4

'

45.1

'

182.

2'

19.8

'

34'

50'

29.1'

38' 112.4' 22.2' 16' 36.4' 29' 22.6'

388.8'

35.7'

81.5'

73'

49.4

'

260'

147.

7' 39.7'

77.9

'

76.8' 79.8'

46.8'

53.2'

59.9'

147.8'

103'

36.2'

42.8'

23.6'

34.1

'

138.

1'

105.

3'16

.6'

41.6'

101.

4'

41.7'

30'

24.6

'31

.6'

40.6

'

78.2

'

27.2'

17.3'

84.9

'

EXPANDED JCP; RENOVATED MALL; NEW LEASES WITH:

[ 25 ]

ACTIVE (PHASE I) REDEVELOPMENT: PLAZA DEL SOL

ABOVEOPEN TO

KK10BKK12 KK14 KK15

KK16KK16A

KK17

FOOD COURT

BELOWOPEN TO

KK19 KK18

CA

SA

MO

FON

GO

TRAFFIC SIGNALEXISTING TRAFFIC SIGNAL

PR 29

PR 1

67

TRAFFIC SIGNAL

20'42.8'

26.34'

110.

84'

5

9

12

26 32 32

14

10 3 27 13

11

4

3

15

15

2434

9

9

9

5661

62 6169

6

7474 75

28

3162

70

85

7

9796

40

10

617

19

38

46

6

34

60

64

36

27

4

197

36

56

15

15

21

21

11

15

7

37

12

28

50

22

8

5

6

25

22

12

12

5

16

2924

36

19

13

4

20

4

19

7

47

269

622

519

1090

123

47

30

61

228

TRAFFIC SIGNAL

18.7'

FOOD COURT

1580

1585

1570

1200

1000

1575

1608

1005

1010

1020

1030

1035

104010501055

10601065107010801085

1100

1100A1100B

1120

1125

11271130

11401145

1170

12051210

1215

1230

1240

1260

1280

1415142014301460

1480

14901500150515101520

1530

1535

1540

1600

164016031601

1604

1605

1606

1607

1610

1620A1620B

1625

1630

CHARLOTTE

RUSSE

7,142 SF

1710

1720

1770KK01

KK02

KK03 KK04

KK4A

KK05

KK06

KK07

KK08

KK10

KK09

KK10B

KK11

KK12

KK13

KK14 KK15KK16

KK16A

KK17KK17A

KK20

KK21KK23

KK22

KK24

49.1' 20' 50' 25.9' 18.3'

20.9'

28'

102.5'

43.7'

101'

79.3'

30'

38.8'

99.2'

23.6'

147.3'

114'80'

22.7'20'

23.7'20'

61.9'

41'

43.2'45.5'

108.3'

29.1'

36.9'

44.2'

62.3'

65.9'

21.1'39'60'21'30'28'

22'22'23'

92.7'

101'

24.2'29.1'

30'31.1'

26.8'35.6'

40'

20'

20'

23.7'

25'

21.8'

51.9'

27.1'35'

20'

65.7'37.7'

33.5'

40'

15'15'

110'

38.5' 43'

32'

12'

115.

85'

31.3'

304'

153'38'

73'24'152'

81'

38'

58'

38'

180'

40'

36'

379'

129'

151'

60'99'

100'

49'64'

22.2'20'

24'

20'

23.2'25.7'

19.5'47.5'

73.1'

Post - Redevelopment26K SF of New Lower Level Retail

Opened Fall 2013

Post - RedevelopmentNew Upper Level Food Court

Opened Winter 2012

Pre - Redevelopment

Activ

e Ey

e

RELOCATED FOOD COURT AND ADDED 26,000 SF OF NEW LOWER LEVEL RETAIL FOR:

[ 26 ]

ACTIVE (PHASE II) REDEVELOPMENT: PLAZA DEL SOL FUTURE EXPANSION TO ACCOMMODATE FOUR JUNIOR BOXES (125KSF)

EXISTING CONDITION

FUTURE PARKING GARAGE ADDITION

FUTURE THIRD LEVEL RETAIL

[ 27 ]

FUTURE REDEVELOPMENT: SEÑORIAL PLAZACONSOLIDATE CHRONICALLY VACANT SHOP SPACE FOR A U.S.-BASED SOFTLINES RETAILER LOOKING TO EXPAND ON THE ISLAND DRIVING DEMAND AND RENT FOR SHOP SPACE.

ELEC.

30'

40'

19.5

'P A R A N A S T

MALL CORRIDOR

NO 3 ST

NE

W

LO

MA

SV

ER

DE

12.7'

MALL CORRIDOR

128

441

351

24

6

23

9

43

48

64

16

20

10

33

12

34

22

26 7

3

31

21

10

9

6

9

3

20

9

9

11

25

17

18

19

16

60

40

3523

40

5

17

17

18

CAR

ITE

STNO

3A

ST

SA

VE

(PR 177)

WIN

STO

NC

HU

RC

HIL

LA

VE

MALLENTRANCE

MALLENTRANCE

FOODCOURT

MALLENTRANCE

MALLENTRANCE

ELEC.RM.

E002

E002

AE0

03K

RE

SS

5,40

0 S

F

E004

E005

MA

RIA

NN

E5,

250

SF

E006

LA E

SQ

UIN

A F

AM

OS

A6,

600

SF

E006

AE0

07E0

08E0

09

E019

E020E021

AE0

21B

E021

C

E022

E023

E024

E025

E026

E028E029

E030

E031

E032

A

E033

E039

E043

E044

E045

E047

E049

120'

'4.16'4.46

22' 23'

20' 60'

45' 20' 40' 55'

20'

60'

37.5

'

33.5'

22'

18'

25'

14'

40'

14'

20.8'

50'

30'

100'

40'

30'

30'14'

21.5

'

30.1'

35.3

'

13'

10'

15'

55' 55'

90'

25'

44'

109'

143.

8'

15'

85'

62.5

'

35'5'

33.6'

40'

25'30'30'

49.5

'

38.7'

22'

49.5

'

36.5

'

40' '02'03

75'

30'

28.3

'

15'

18'

120'

90'

75'

80'

201.

5'

14.7'

30'

45'

147'

32'

68.5'

38.8'

55'

50.5'

208'

167'

70.5'

31.7

'

86.7'

35.8'

39.3

'

300'

22'

21.9'

21.2'

39.6'

22.5' 22.2'

34.1'

14.6'

30.8'

115.

6'

Post - Redevelopment

Pre - Redevelopment

VACANT

VACANT

VAC

AN

T

VACANT

VACANTVACANT

VACANT

VAC

AN

T

VAC

AN

T

Future Jr. Anchor

[ 28 ]

SUMMARY

• Tenant sales and NOI growth remain accretive to the domestic portfolio

• Significant supply constraints + strong demand from U.S. retailers allow for continued rent growth and the ability to upgrade the credit quality of cash flows

• A number of redevelopment opportunities exist to achieve attractive risk-adjusted returns greater than 10%

[ 29 ]