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Salomon Smith Barney March 2003 Section I Corporate Overview and Financial Performance DDR’s Mission Statement The leading owner, developer and manager of market-dominant community shopping centers . . . . . . provides the very best environments for the nation’s most successful retailers

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slide2

Section I

Corporate Overview and Financial Performance

slide3

DDR’s Mission Statement

The leading owner, developer and manager of market-dominant community shopping centers . . .

. . . provides the very best environments for the nation’s most successful retailers

. . . where retailers can offer the most convenient shopping experience for their customers at an affordable cost.

slide4

Company Features

(1) Pro forma 1Q2003. (2) Includes properties owned and managed as of March 2003. Does not include DDR’s 38 industrial and office properties.

(3) Includes managed properties and unowned anchors at company-owned shopping centers as of March 2003.

slide5

Enhanced National PresencePost-Merger Operating Portfolio

GLA under Managementby State

Less than 500,000 SF

500,000 – 1.0 MSF

+1.0 – 2.0 MSF

+2.0 MSF

Strengthens leasing relationships with leading retailers and maximizes operating efficiency.

2.8 msf (3.6%)

3.1 msf (4.1%)

8.5 msf (11.1%)

2.2 msf (2.8%)

2.6 msf (3.4%)

3.5 msf (4.6%)

2.6 msf (3.4%)

2.4 msf (3.2%)

2.2 msf (2.9%)

76 MSF / 44 States

2.9 msf (3.8%)

2.1 msf (2.7%)

7.3 msf (9.5%)

4.0 msf (5.2%)

5.9 msf (7.7%)

slide6

Enhanced National PresencePost-Merger Operating & Development Portfolio

DDR

Existing Properties

Multiple Center Markets

Service Merchandise Properties

Multiple Services Merchandise

New Developments

Managed Properties

JDN

Operating Properties

Development Properties

slide7

5

9

8

3

4

6

11

2

1

7

10

14

12

13

National Presence

DDR’s Regional Offices

Development

Leasing

Operations

Leasing & Operations

Leasing, Development & Operations

Coventry Real Estate Partners

1. Long Beach, CA - Development 2. Sherman Oaks, CA -Leasing /Operations 3. Salt Lake City, UT - Leasing /Develop. /Operations 4. Denver, CO - Leasing 5. Minneapolis, MN - Operations 6. St. Louis, MO - Leasing /Operations7. Atlanta, GA – Leasing8. Cleveland, OH - Corporate Headquarters

9. New York, NY - Coventry Real Estate 10. Dallas, TX - Leasing 11. Durham, NC – Operations12. Tampa, FL - Operations 13. Tampa, FL - Leasing 14. Orlando, FL – Leasing

slide8

DDR Business Plan

  • Focus on the ownership and management of high-quality market-dominant community shopping centers
  • Cultivate premier relationships with the nation’s
  • leading retailers
  • Proactively replace underperforming tenants at significantly higher rents
  • Maximize revenue generation from existing centers
    • Expansion and redevelopment
    • Ancillary income sources
slide9

DDR Business Plan

  • Recycle capital at positive spreads
    • Opportunistic acquisitions
    • Development of infill sites in major markets
  • Engineer innovative JV structures with institutional capital partners
    • Additional equity source
    • Maximize returns on invested equity
slide10

Stock PriceDoublesIPO Price

Historical Stock Price

2x1 Stock SplitAugust 1998

($21.99)

slide11

Outperformance During Recession

2002 Total Returns

DDR

RMS

DJIA

S&PMid Cap

S&P

Small

Cap

Russell

2000

S&P500

NASDAQ

slide12

DDR v. Russell 2000 v. S&P 500

$10,000 invested at IPO in 1993 . . .

Compound Annual Total ReturnDDR 15.7%S&P 500 9.2%Russell 2000 4.5%

$42,464

$24,016

$15,464

S&P500

Russell2000

DDR

slide13

DDR v. Morgan Stanley REIT Index

$10,000 invested in 1996 . . .

Compound Annual Total Return DDR 11.7% RMS 5.7%

$19,402

$13,944

DDR

RMS

slide14

FFO (diluted) / Share

Dividends / Share

$2.70(2)

$1.64

(Estimated)

Consistent FFO and Dividend Growth(1)

Based on analyst’s estimates for 2003,FFO will have more thantripled & dividends willhave more than doubledsince IPO.

Common share dividendpayout ratio has declined from 82% in1993 to approximately 60% budgeted for 2003.

Retained cash flow wasover $40MM in 2001,

approximately $50MMin 2002, and is estimated to exceed $50MM in 2003.

(1) Adjusted to reflect a 2:1 stock split in 1998.(2) Based on current First Call consensus estimates.

slide15

Historical Price/FFO Multiple

DDR Avg. Multiple = 10.0

slide16

9%Avg. Increase

on Renewals

23%

Avg. Increase on New Leases

Internal Growth:

Leasing Spreads

Weighted Average

Renewals

New Leases

slide17

Lease Revenues Expiring

Lease Revenues Subject to Steps

Internal Growth:

Releasing & Contractual Rent Steps

Average Rent

Spread on Releasing 12.0%-16.5%

Average

Contractual Rent

Step 7.6%

Lease Revenues (Millions)

slide18

2002 Capital Recycling

Retail Property Acquisitions & Dispositions

Acquisitions(1)

Dispositions

Total Dispositions - $313 millionDDR’s pro rata share - $143 millionTotal SF – 2.3 MSFWtd. Avg. Cap Rate – 9.0%

Total Acquisitions - $538 millionDDR’s pro rata share - $387 millionTotal SF - 4.8 MSFWtd. Avg. Cap Rate – 10.0%

Developments – Completed

Net Project Cost - $185 millionDDR’s pro rata share - $85 millionTotal SF – 2.0 MSFWtd. Avg. Unleveraged Cash on Cost Return – 11.5%

(1)Includes three acquisitions made in January 2003.

slide19

DDR Total Returns

2002 – 23.4%

2001 – 56.7%

2000 – 14.7%

Annualized 3 Year Total Return

(2000 - 2002)

slide20

FFO Growth Rates 2001-2003

2001

-

-

2002

-

-

2002

2003

DDR 5.0% 8.0%

FRT -4.0% -1.1%

KIM 1.3% 4.6%

NXL 1.1% 2.7%

REG 4.7% 4.5%

WRI 7.2% 5.5%

Source: First Call (as of 3/7/02)

slide21

FFO Multiple / FFO Growth Rate(1)

(1) FRT (-14.17) not listed.

slide22

Overall Ranking

Company’s Rank (Best to Worst) according to Total Return, FFO Growth & FFO Multiple/FFO Growth Rate

slide23

Consistent Outperformance

DDR continues to offer income at a favorable value, outperforming expectations for the REIT industry

Salomon Smith Barney REITUniverse

DDR

Assumes DDR stock price of $22.75 per share.

slide24

Section II

Retail Industry Overview

slide25

Shifts in Consumer Preferences

DDR is well positioned to benefit from long-term trends in the retail industry:

From traditional department stores to discount department stores

From enclosed mall anchors and specialty tenants to community shopping center discounters

From neighborhood groceries to supercenters

slide26

Shift to Discount Department Stores

Discount department stores capture market share at the expense of traditional department stores

Percent of General Merchandise Sales

Source: U.S. Census, Property & Portfolio Research.

slide27

Sears

May Co.

JC Penney

Federated

Nordstroms

Saks

Retail Market Cap Analysis(in Billions, as of 4Q02)

Wal*Mart’s market cap alone is seven times larger than that of the entire traditional department store sector

Traditional Dept. Store Total: $33 Billion

Discount Dept. Store & Home Improvement Total: $369 Billion

$7

$6

$6

$9

$3

$2

slide28

Shift to Community CentersRetailers’ Same Store Sales – Last 24 Mos.

Community Ctr – Discount Dept Stores 4.5%Power Ctr – Hard Goods/Big Box Retailers 4.2%

Community Ctr Retailers 4.1%

Mall Anchors -2.4%

Mall Specialty Retailers -3.6%

15%

10%

5%

0%

(5%)

(10%)

Source: Merrill Lynch “Same Store Sales Monitor”

(15%)

slide29

Shift to Grocery Supercenters

Traditional grocers’ market share of U.S. grocery sales dropped from 85% in 1992 to approximately 40% in 2001

Supercenter and wholesale clubs represented over 30% of retail grocery sales in 2001

Wal*Mart’s grocery sales of $65 billion in 2001 topped Kroger’s sales of $50 billion, making it the largest grocery retailer in the country

Source: Supermarket News, ICSC, USA Today.

slide30

Wal*Mart Growth in Supermarket Sales

Wal*Mart’s supermarket and pharmacy-related sales growth is expectedto increase more than 5x faster than other industry participants’ sales

Growth in Sales(Percentage)

Source: Goldman Sachs; September 25, 2002.

slide31

Wal*Mart Pricing AdvantageSupermarket Related Sales

On a sample shopping trip, Wal*Mart’s supercenter prices registered 22% below the market average

Avg. Premium to Wal*Mart Prices

Source: Goldman Sachs; September 25, 2002.

slide32

Wal*Mart Pricing AdvantageGeneral Merchandise Sales

On a sample shopping trip, Wal*Mart’s general merchandise prices registered 28% below the market average

Avg. Premium to Wal*Mart Prices

Beauty

Source: Goldman Sachs; September 25, 2002.

slide33

Growth in Retail Supply (Per Capita)

v. Retail Sales (Per Capita)

Over the last 20 years, retail sales per capita has grownat a higher rate than retail square feet per capita

Index 1982 = 100

2001

Source: Economy.com, Portfolio & Property Research.

slide34

Growth in Retail Supply (Per Capita)

v. Retail Sales (Per SF)

Based on the growth of retail sales per square foot, the utilityof additional retail space is increasing at a similar rate

Index 1982 = 100

2001

Source: Economy.com, Portfolio & Property Research.

slide35

Section III

Portfolio Overview

slide36

Community Center Portfolio

DDR’s investment strategy is to own and operate market dominant community centers that draw shoppers from the immediate neighborhood as well as the surrounding trade area.

250,000 - 1,000,000 square foot, open-air shopping centers

2 or more strong national tenant anchors such as Wal-Mart, Kohl’s, Target, Home Depot, or Lowe’s

2 or more medium-sized national big-box tenants such as Best Buy, Bed Bath & Beyond, TJ Maxx, or Michael’s

20,000 - 80,000 square feet of small shops

2 - 4 outparcels available for sale or groundlease

slide37

Post Merger Reliance on Major Tenants(1)

Owned Locations

Percent

Total Base Rent

Credit

of Total

Ratings

Units

Tenant

(millions)

Wal-Mart/Sam’s Club 29 $15.89 4.2% AA/Aa2

Lowe’s Home Improvement 16 $15.66 4.1% A/A3

Kohl’s 34 $12.46 3.3% A-/A3

T.J. Maxx/Marshall’s 51 $9.39 2.5% A/A3

PetsMart 39 $7.98 2.1% B+/Ba3

Best Buy/Musicland Group 28 $7.91 2.1% BBB-/Baa3

OfficeMax 37 $7.47 2.0% NR/NR

Bed Bath & Beyond 32 $7.09 1.9% BBB-/NR

AMC Theater 5 $5.90 1.5% NR/B2

Kroger 17 $5.70 1.5% BBB-/Baa3 Michael’s 28 $5.09 1.3% BB/Ba1

Gap/Old Navy/Banana Rep. 31 $4.81 1.3% BBB-/Ba3

Barnes & Noble 33 $4.75 1.2% BB/Ba3

Linens ‘N Things 13 $4.19 1.1% NR/NR

Toys “R” Us 16 $3.66 1.0% BBB/Baa3

Subtotal 409 $117.94 31.0%Total $390.40 100.0%

(1) Based on actual pro rata ownership of real estate assets, calculated on owned shopping enter GLA only. Also includes tenants in Service Merchandise portfolio.

slide38

Post Merger Major Tenants by % of Base Revenues(1)

State

DDR

JDN

Pro Forma

1. Wal*Mart/Sam’s Club 4.0% 4.8% 4.2%2. Lowe’s Home 1.6 12.0 4.1 Improvement

3. Kohl’s 2.8 4.7 3.3

4. T.J Maxx/Marshall’s 2.4 2.8 2.55. PetsMart 1.9 2.8 2.1

6. Best Buy/Musicland 2.3 1.5 2.1

7. Officemax 2.1 1.4 2.0 8. Bed Bath & Beyond 2.5 --- 1.99. AMC Theater 2.0 --- 1.510. Kroger 1.0 3.1 1.5Total 22.5% 33.2% 25.1%

(1) Based on pro rata share of joint venture assets.

slide39

Post Merger Major Tenants by GLA

Owned and Unowned Locations

TotalUnits

Total SF(Millions)

Owned Units

Non -Owned Units

Tenant

1. Wal-Mart/Sam’s 84 12.1 29 552. Lowe’s Home Improvement 30 3.8 16 14

3. Target/Mervyn’s 25 2.9 5 20

4. Home Depot 23 2.3 6 17

5. Kohl’s 35 2.1 34 1

6. T.J. Maxx/Marshall’s 51 1.7 51 0

7. Kmart 17 1.5 15 2

8. Kroger 20 1.2 17 3

9. Best Buy/Musicland 29 1.1 28 1

10. Bed Bath & Beyond 32 1.0 32 0

slide40

Post Merger Geographic Distributionby % of GLA(1)

State

DDR

JDN

Pro Forma

1. Ohio 14.3% 1.1% 11.1%2. Georgia 1.9 32.9 9.5

3. Florida 8.2 6.4 7.7

4. Texas 5.0 5.6 5.25. California 6.2 --- 4.6

6. Michigan 4.2 3.9 4.1

7. South Carolina 4.5 1.9 3.8 8. Minnesota 4.8 --- 3.69. Utah 4.5 --- 3.410. Missouri 4.4 0.4 3.4Total 58.0% 52.1% 56.5%

(1) Total square feet under management. Assumes 100% ownership of joint venture assets.

slide41

Received 630,000 sf in 12 twelve locations in April and July of 2001

By year-end 2001, DDR had nearly 550,000 sf leased or under LOI, representing the recapture of 100% of the HomePlace rent

Case Study: HomePlace Retenanting

DDR has consistently demonstrated its ability to quickly and profitably re-tenant space left from bankrupt tenants

slide42

Months to Re-lease (1)

% Increase

in Rent

New Tenants

Center

HomePlace Retenanting

Phoenix, AZ Ashley’s Furniture 2 82% The Oak Store 12Denver, CO Cost Plus 5 68% Loehmann’s Furniture 7 Maple Grove, MN Bed Bath & Beyond - 0 - 44% Michael’s 2Canton, OH HHGregg - 0 - 38% Arhaus 8 Portland, OR Famous Footwear 5 27% Linens N’ Things 6N. Olmsted, OH Bed Bath & Beyond - 0 - 24% Pier One 5

(1)From lease rejection date to final lease execution. Letters of intent are typically signed 30 to 90 days prior to lease execution.

slide43

Months to Re-lease (1)

% Increase

in Rent

New Tenants

Center

HomePlace Retenanting

St. Louis, MO Bed Bath & Beyond - 0 - 21% David’s Bridal 8Marietta, GA Ross Dress 6 17% Cargo Furniture (Pier 1) 12Atlanta, GA Sports Authority 9 14%Columbus, OH Michael‘s 8 11% Dress Barn 11 The Avenue 11Eagan, MN Bed Bath & Beyond - 0 - 7% PetsMart 10 San Antonio, TX OfficeMax 9 4%

(1)From lease rejection date to final lease execution. Letters of intent are typically signed 30 to 90 days prior to lease execution.

slide44

Shop Space

Total Portfolio

Average Annualized Base Rental Rates(as of 4Q02)

$15.18

$10.58

slide45

Historical Occupancy Rates

DDR has averaged nearly 96% occupancy since 1987

slide46

Leasing Disposition

Service Merchandise(as of 4Q02)

Capital Structure

Portfolio

DDR (24.6%) $19.5 Klaff Realty (12.3%) 9.7Lubert Adler (61.6%) 48.6Special Member (1.5%) 1.3Total Capital $79.1Actual Debt $89.6Anticipated Debt 66.3Total Debt & Equity $235.0

Fee Interests Sold, Leases Assigned, Direct Leases and Subleases 130 Leases Expired or Rejected 76Vacant or Partially Leased 70

Major Tenants

PetsMart Best Buy Circuit CityA.C. Moore

Value City FurnitureDSW Shoe WarehouseTJ Maxx/MarshallsBed Bath & BeyondDollar Tree

Fees to DDR

Management Development

slide47

Section V

DDR/JDN Merger Overview

slide48

Traffic Generating Anchors(1)

  • 75% of DDR assets and approximately 55% of JDN assets have either a discount or traditional department store
  • 50% of DDR assets and approximately 40% of JDN assets have a grocery component
  • 40% of DDR assets and over 20% of JDN assets have both a home improvement store and a discount or traditional department store
  • Over 45% of DDR revenues and over 60% of JDN revenues are generated by short term leases to specialty store tenants
  • (1)Includes unowned anchors
slide49

Highly Accretive Use of DDR Stock

Overall capitalization rate of 9.8%, or 10.6% after adjusting for the impact of non-income producing land assets

Estimated annual accretion of 5% reflects dilutive impact of land assets

Further accretion potential as development is completed and pipeline is built out

However, anticipated sales of certain non-core retail assets will dilute total accretion

slide50

Land and Development PortfoliosProvide Future Upside

DDR uniquely qualified to incorporate JDN’s development portfolio into its existing operations

Properties currently under development create embedded growth

DDR’s strong tenant relationships will enhance the profitability of the development pipeline

Potential sale of land and outparcel portfolio, comprised of over 600 acres, provides additional opportunity to raise capital accretively

slide52

JDN Development Portfolio

  • JDN has 19 development projects currently under construction
    • Total GLA is 6.3 MSF. Total owned GLA is 3.0 MSF, of which over 1.5 MSF is open and operating
    • Total cost to complete as of 1Q03 is approximately $46MM
    • Over 80% pre-leased
    • Estimated annual NOI of over $33MM
  • DDR will pursue 9 former JDN pipeline development projects
    • Total GLA is approximately 1.9 MSF
    • Total project cost is approximately $120MM
    • Estimated annual NOI of approximately $13MM
slide53

DDR Development Portfolio

  • DDR has 7 development projects currently under construction
    • Total GLA is 3.0 MSF. Total owned GLA is approximately 2.0 MSF, of which approximately 900,000 square feet is open and operating
    • Total cost to DDR to complete as of 1Q03 was estimated to be approximately $104MM
  • DDR has 6 pipeline development projects
    • Total GLA is approximately 2.6 MSF
    • Total estimated project cost of approximately $260MM
slide54

Broadens DDR’s existing relationships with the nation’s leading retailers, particularly Wal*Mart, Sam’s Club, Lowe’s Home Improvement, Kohl’s and TJX

    • DDR’s top 10 tenants comprise nearly 30% of JDN’s GLA and 20% of JDN’s revenue base
  • Maintains a geographically diverse portfolio, with centers located across 44 states

Leverages Existing Platform

slide55

Improves Industry Position

Transaction represents an excellent fit of core assets for DDR, plus a pipeline of development opportunities where DDR can use its core skills to add value on an ongoing basis

Strengthens DDR’s position as the nation’s leading owner, operator and developer of market-dominant community shopping centers

Increases DDR’s market capitalization by over 35% to $5 billion

Creates the largest shopping center REIT by market capitalization and by GLA under management