Developers Diversified Realty Reports a 31.3% Increase in FFO Per Share for the Three Month Period Ended June 30, 2004

Developers Diversified Realty Reports a 31.3% Increase in FFO Per
Share for the Three Month Period Ended June 30, 2004 


CLEVELAND, July 29  /PRNewswire-FirstCall/ -- Developers Diversified Realty
Corporation (NYSE:DDR), a real estate investment trust ("REIT"), today
announced that second quarter 2004 Funds From Operations ("FFO"), a widely
accepted measure of REIT performance, on a per share basis was $0.84 (diluted)
and $0.85 (basic) as compared to $0.64 (diluted) and $0.65 (basic) per share
for the same period in the previous year (as adjusted down by $0.03 per share
to reflect a prior impairment charge previously not included in FFO in
accordance with a recent SEC comment letter), a per share increase of 31.3%
diluted and 30.8% basic.  FFO available to common shareholders reached $81.6
million for the quarter ended June 30, 2004, as compared to $55.9 million for
2003, an increase of 46.0%.  Net income available to common shareholders for
the three month period ended June 30, 2004 increased 30.1% to $74.3 million
compared to second quarter 2003 net income of $57.1 million, or $0.77 per share
(diluted) and $0.78 (basic) in 2004 compared to $0.66 per share (diluted) and
$0.67 (basic) for the same period in 2003.  The increase in net income for the
quarter ended June 30, 2004 is primarily related to the results from operations
attributable to the acquisition of the assets from Benderson Development
Company, Inc. ("Benderson"), and an increase in gain on sales of real estate
assets offset, to some extent, by the sale of assets to the joint venture with
MDT in the fourth quarter of 2003 and the second quarter of 2004.

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On a per share basis, FFO (diluted) was $1.55 and $1.25 for the six month
periods ended June 30, 2004 and 2003, respectively, an increase of 24.0%.  FFO
available to common shareholders for the six months ended June 30, 2004 was
$144.4 million compared to FFO available to common shareholders for the six
month period ended June 30, 2003 of $100.2 million.  Net income available to
common shareholders for the six month period ended June 30, 2004 was $114.5
million, or $1.24 per share (diluted) and $1.26 (basic) in 2004, compared to
net income of $83.7 million, or $1.06 per share (diluted) and $1.08 (basic) for
the prior comparable period. The increase in net income is primarily
attributable to the merger with JDN on March 13, 2003, the acquisition of the
assets from Benderson, an increase in gain on sales of real estate assets, and
a reduction in minority interest expense associated with preferred operating
partnership units, which were redeemed in 2003.  This increase is offset by the
sale of assets to the joint venture with MDT in the fourth quarter of 2003 and
second quarter of 2004.

Scott Wolstein, DDR's Chairman and Chief Executive Officer stated, "I am
pleased to report this quarter's financial results and earnings growth.  Our
portfolio continues to generate strong and consistent cash flows and we
continue to structure and execute transactions that create substantial long-
term shareholder value, including our $2.3 billion acquisition from Benderson
Development and our $538 million sale of assets to Macquarie DDR Trust."

FFO is a supplemental non-GAAP financial measurement used as a standard in the
real estate industry.  Management believes that FFO provides an additional
indicator of the financial performance of a REIT.  The Company also believes
that FFO more appropriately measures the core operations of the Company and
provides a benchmark to its peer group.  FFO does not represent cash generated
from operating activities in accordance with generally accepted accounting
principles and is not necessarily indicative of cash available to fund cash
needs and should not be considered as an alternative to net income and an
indicator of the Company's operating performance or as an alternative to cash
flow as a measure of liquidity.  FFO available to common shareholders is
defined and calculated by the Company as net income, adjusted to exclude: (i)
preferred dividends, (ii) gains (or losses) from sales of depreciable real
estate property, except for those sold through the Company's merchant building
program, which are presented net of taxes, (iii) sales of securities, (iv)
extraordinary items, (v) cumulative effect of changes in accounting standards
and (vi) certain non-cash items.  These non-cash items principally include real
property depreciation and amortization of intangibles, equity income from joint
ventures and equity income from minority equity investments and adding the
Company's proportionate share of FFO from its unconsolidated joint ventures and
minority equity investments, determined on a consistent basis. Other real
estate companies may calculate FFO in a different manner.  A reconciliation of
net income to FFO is presented in the financial highlights section.

Leasing:

Leasing activity continues to be strong throughout the portfolio.  During the
second quarter of 2004, the Company executed 109 new leases aggregating
approximately 754,000 square feet and 146 renewals aggregating approximately
798,000 square feet.  Rental rates on new leases increased by 17.5% to $14.02
per square foot and rental rates on renewals increased by 7.6% to $10.20 per
square foot.  On a blended basis, rental rates for new leases and renewals
increased by 10.7% to $12.05 per square foot.

At June 30, 2004, the average annualized base rent per occupied square foot,
including those properties owned through joint ventures, was $10.67. Excluding
the impact of the properties acquired from Benderson, the average annualized
base rent per occupied square foot for the portfolio was $10.89, as compared to
$10.49 at June 30, 2003.

At June 30, 2004, the portfolio was 94.9% leased.  Excluding the impact of the
properties acquired from Benderson, the portfolio was 95.0% leased, as compared
to 94.3% at June 30, 2003.  These percentages include tenants for which signed
leases have been executed and occupancy has not occurred.  Based on tenants in
place and responsible for paying rent as of June 30, 2004, the portfolio was
94.4% occupied.  Excluding the impact of the properties acquired from
Benderson, the portfolio was 94.4% occupied, as compared to 93.8% at June 30,
2003.

Same store tenant sales performance over the trailing 12 month period within
the Company's portfolio, for those tenants required to report, remained strong
at approximately $227 per square foot in 2004 compared to $224 per square foot
in 2003, an increase of 1.3%.  Aggregate base and percentage rental revenues
relating to Core Portfolio Properties (i.e., shopping center properties owned
since January 1, 2003 and since April 1 with regard to JDN assets, excluding
properties under redevelopment) increased approximately $2.2 million (or 1.3%)
for the six month period ended June 30, 2004, compared to the same period in
2003.

  Strategic Real Estate Transactions:

  Benderson Transaction


In March 2004, the Company announced that it entered into an agreement to
purchase interests in 110 retail real estate assets with approximately 18.8
million square feet of GLA, from Benderson.  One of those properties was
subject to a right of first refusal, which has been exercised, so the Company
expects to acquire interests in 109 assets.  The purchase price of the assets,
including associated expenses, is expected to be approximately $2.3 billion,
less assumed debt and the value of a 2% equity interest of approximately $16.2
million that Benderson will retain as set forth below.  Benderson is
transferring to us 100% ownership in certain assets or entities owning certain
assets.  The remaining assets are held by a joint venture in which the Company
holds a 98.0% interest and Benderson holds a 2.0% interest.

Through July 29, 2004, the Company completed the purchase of 102 properties,
including 14 purchased directly by our MDT joint venture and 52 held by the
joint venture with Benderson.

With respect to the joint venture with Benderson, after 20 months from the
initial acquisition, Benderson will have the right to cause the joint venture
to redeem its 2.0% interest for a price equal to the agreed value of the
interest on the closing date of approximately $16.2 million, increased or
decreased to reflect changes in the price of the Company's common shares during
the period in which Benderson holds the 2.0% interest, less certain
distributions Benderson receives from the joint venture.  If Benderson
exercises the foregoing right, the Company will have the right to satisfy the
joint venture's obligation by purchasing Benderson's interest for cash or by
issuing DDR common shares to Benderson. If Benderson does not elect to exercise
its right to have its interest redeemed, the Company will have the right after
30 months from the initial acquisition to purchase that 2.0% interest for cash
or common shares for a price determined in the same manner as if Benderson had
elected to cause such redemption.

The Company funded the transaction through a combination of assumed debt, new
debt financing, the issuance of cumulative preferred shares and the issuance of
common shares (see "Financing") and asset transfers to the MDT joint venture
(See "MDT Joint Venture").  With respect to assumed debt, the fair value of
existing indebtedness that we have assumed or intend to assume upon closing is
approximately $408.0 million, which includes an adjustment of approximately
$30.0 million to fair value, based on rates for debt with similar terms and
remaining maturities as of May 2004.

The Benderson assets are located in eleven states, with over 80.0% of the GLA
in New York and New Jersey.  The Benderson assets are approximately 94.6%
leased as of June 30, 2004, and the largest tenants, based on revenues, include
Tops Markets (Ahold USA), Wal-Mart/Sam's Club, Home Depot and Dick's Sporting
Goods.  Prior to the transaction, the Company owned less than 100,000 square
feet of GLA in New York and approximately 2.7 million square feet of GLA in New
Jersey.

Benderson has entered into a five-year master lease for vacant space that is
either covered by a letter of intent as of the closing date or a new lease with
respect to which the tenant has not begun to pay rent as of the closing date. 
During the five-year master lease, Benderson has agreed to pay the rent for
such vacant space until each applicable tenant's rent commencement date.

MDT Joint Venture

In May 2004, MDT acquired an indirect ownership interest in 23 retail
properties, which consists of over 5.6 million square feet of GLA.  The
aggregate purchase price of the properties was approximately $538.0 million.
The Company indirectly holds an effective 14.5% interest in those properties.
Eight of the properties sold to MDT were owned by the Company and one of the
properties was held by the Company through a joint venture.  Fourteen of the
properties sold to MDT were owned by Benderson.

Coventry II

In July 2004, the Company, through its joint venture with Coventry II, acquired
an effective 10% interest in a development partnership with David Berndt
Interests to develop a new shopping center in San Antonio, Texas, known as
Westover Marketplace.  The joint venture partnership acquired approximately 63
acres of land for $10.6 million and sold approximately 16 acres for $2.5
million to Target.  DDR anticipates that this shopping center will be completed
in Fall 2005.

Expansions:

For the six month period ended June 30, 2004, the Company completed four
expansion and redevelopment projects located in North Little Rock, Arkansas;
Aurora, Ohio; Tiffin, Ohio and Monaca, Pennsylvania at an aggregate cost of
approximately $21.5 million.  The Company is currently expanding/redeveloping
nine shopping centers located in Gadsden, Alabama; Brandon, Florida;
Tallahassee, Florida; Suwanee, Georgia; Starkville, Mississippi;
Hendersonville, North Carolina; Princeton, New Jersey; Brentwood, Tennessee and
Chattanooga, Tennessee at a projected incremental cost of approximately $27.0
million.  The Company is also scheduled to commence an additional expansion
project at Allentown, Pennsylvania.

For the six month period ended June 30, 2004, a joint venture of the Company
completed the expansion of its shopping center located in Deer Park, Illinois
at an aggregate cost of $13.9 million.  The Company's joint ventures are
currently expanding/redeveloping a shopping center located in Merriam, Kansas
at a projected incremental cost of approximately $1.1 million.  The Company is
also scheduled to commence four additional expansion/redevelopment projects at
shopping centers located in Phoenix, Arizona; Lancaster, California; Kansas
City, Missouri and Kirkland, Washington.

Development (Consolidated):

During the six month period ended June 30, 2004, the Company substantially
completed the construction of a 506,000 square foot shopping center located in
Hamilton, New Jersey and a 312,000 square foot shopping center located in
Irving, Texas.

The Company currently has eleven shopping center projects under construction. 
These projects are located in Long Beach, California; Fort Collins, Colorado;
Miami, Florida; Overland Park, Kansas; Chesterfield, Michigan; Lansing,
Michigan; St. Louis, Missouri; Apex, North Carolina; Mount Laurel, New Jersey;
Pittsburgh, Pennsylvania and Mesquite, Texas.  These projects are scheduled for
completion from 2004 through 2006 at a projected aggregate cost of
approximately $411.3 million and will create an additional 3.2 million square
feet of retail space.

The Company anticipates commencing construction in 2004 on three additional
shopping centers located in Norwood, Massachusetts; Freehold, New Jersey and
McKinney, Texas.

Development (Joint Ventures):

The Company has joint venture development agreements for four shopping center
projects.  These projects have an aggregate projected cost of approximately
$105.6 million.  These projects are located in Jefferson County (St. Louis,
Missouri); Apex, North Carolina (Phases III and IV), adjacent to a wholly-owned
development project; and San Antonio, Texas.  The project located in Jefferson
County (St. Louis, Missouri) will be substantially completed in 2004.  The
remaining projects are scheduled for completion in 2005.  At June 30, 2004,
approximately $7.4 million of costs were incurred in relation to these
development projects.

Financings:

In conjunction with the Company's acquisition of assets from Benderson, the
following capital transactions aggregating $1.1 billion in net proceeds, in
addition to the MDT joint venture discussed above, were completed:

   * In May 2004, the Company entered into an agreement with Bank One,
     Wachovia and Wells Fargo for a $200 million three-year term loan with
     two one-year extension options at an interest rate of LIBOR plus 75
     basis points.
   * In May 2004, the Company issued and sold 15,000,000 of DDR common
     shares.  Net proceeds from the sale of the common shares were
     approximately $491 million.
   * In May 2004, the Company issued and sold 6,800,000 depository shares,
     each representing 1/20 of a share of 7.50% Class I Cumulative
     Redeemable Preferred Shares.  Net proceeds from the sale of the
     depository shares were approximately $164.5 million.
   * In April 2004, the Company issued $250 million, 5.25% seven-year notes
     through a private placement.



In July 2004, the Company expanded it unsecured revolving credit facility from
$650 million to $1.0 billion.

Developers Diversified Realty Corporation currently owns and manages over 460
retail operating and development properties in 44 states comprising of
approximately 102 million square feet of real estate.  DDR is a self-
administered and self-managed real estate investment trust (REIT) operating as
a fully integrated real estate company which acquires, develops, leases and
manages shopping centers.

A copy of the Company's Supplemental Financial/Operational package is available
to all interested parties upon request at our corporate office to Michelle A.
Mahue, Vice President of Investor Relations, Developers Diversified Realty
Corporation, 3300 Enterprise Parkway, Beachwood, OH  44122 or on our Website
which is located at http:/www.ddr.com .

Developers Diversified Realty Corporation considers portions of this
information to be forward-looking statements within the meaning of Section 27A
of the Securities Exchange Act of 1933 and Section 21 E 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 the results of the Company to
differ materially from those indicated by such forward-looking statements,
including, among other factors, local conditions such as oversupply 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 a
major tenant or inability to enter into definitive agreements with regard to
our financing arrangements or our failure to satisfy conditions to the
completion of these arrangements.  For more details on the risk factors, please
refer to the Company's Form on 10-K as of December 31, 2003.

               DEVELOPERS DIVERSIFIED REALTY CORPORATION
                           Financial Highlights
                  (In thousands - except per share data)

                                      Three Month Period  Six Month Period
                                          Ended June 30,    Ended June 30,
  Revenues:                               2004     2003     2004     2003
    Minimum rent (A)                  $ 104,800  $91,229 $193,759 $164,868
    Percentage and overage rents (A)      1,400    1,292    3,128    2,477
    Recoveries from tenants              30,040   23,109   55,831   42,790
    Ancillary income                        618      434    1,383      782
    Other property related income         1,167      233    2,073      307
    Management fee income                 3,592    2,528    6,702    5,132
    Development fees                        604      344      795      673
    Other (B)                             6,504    2,858   10,023    5,921
                                        148,725  122,027  273,694  222,950
  Expenses:
    Operating and maintenance            16,049   15,068   32,314   28,210
    Real estate taxes                    19,902   14,270   35,772   26,400
    General and administrative (C)       11,050   11,189   21,494   18,913
    Depreciation and amortization        31,930   23,970   57,031   43,733
                                         78,931   64,497  146,611  117,256
    Other income/(expense)
    Interest income                         998    1,156    2,358    2,759
    Interest expense                    (30,734) (23,042) (55,669) (41,945)
                                        (29,736) (21,886) (53,311) (39,186)

    Income before equity in net income
     of joint ventures, minority
     equity interests, income tax of
     taxable REIT subsidiaries and
     franchise taxes, discontinued
     operations, gain on sales of real
     estate and real estate investments
     and cumulative effect of adoption
     of a new accounting standard        40,058   35,644   73,772   66,508
  Equity in net income of joint
   ventures (D)                           6,943    6,797   25,164   16,896
  Minority equity interests (E)            (966)    (873)  (2,110)  (3,938)
  Income tax of taxable REIT
   subsidiaries and franchise taxes        (221)       -     (892)       -
  Income from continuing operations      45,814   41,568   95,934   79,466
  Loss from discontinued operations (F)       -   (1,212)    (703)    (924)
  Income before gain on sales of real
   estate and real estate investments
   and cumulative effect of adoption
   of a new accounting standard          45,814   40,356   95,231   78,542
  Gain on sales of real estate and
   real estate investments, net of tax   40,998   28,046   45,368   28,245
  Income before cumulative effect of
   adoption of a new accounting standard 86,812   68,402  140,599  106,787
  Cumulative effect of adoption of
   a new accounting standard (H)              -        -   (3,001)       -
  Net income                            $86,812  $68,402 $137,598 $106,787
  Net income, applicable to common
   shareholders                         $74,295  $57,140 $114,476  $83,650
  Funds From Operations ("FFO"):
    Net income applicable to
     common shareholders                $74,295  $57,140 $114,476  $83,650
    Depreciation and amortization
     of real estate investments          31,208   23,973   55,966   43,694
    Equity in net income of joint
     ventures                            (6,943)  (6,797) (25,164) (16,896)
    Joint ventures' FFO (D)              11,065    8,149   23,741   15,943
    Minority equity interests (OP Units)    625      482    1,197      859
    Gain on sales of depreciable
     real estate and real estate
     investments, net (G)               (28,639) (27,017) (28,799) (27,017)
    Cumulative effect of adoption
     of a new accounting standard (H)         -        -    3,001        -
    FFO available to common shareholders 81,611   55,930  144,418  100,233
    Preferred dividends                  12,517   11,262   23,122   23,137
    FFO                                 $94,128  $67,192 $167,540 $123,370
    Per share data:
      Earnings per common share
        Basic                             $0.78    $0.67    $1.26    $1.08
        Diluted                           $0.77    $0.66    $1.24    $1.06
    Dividends Declared                    $0.46    $0.41    $0.92    $0.82
    Funds From Operations - Basic (I)     $0.85    $0.65    $1.57    $1.27
    Funds From Operations - Diluted (I)   $0.84    $0.64    $1.55    $1.25
    Basic - average shares
     outstanding (thousands) (I)         95,018   85,031   90,682   77,626
    Diluted - average shares
     outstanding (thousands) (I)         97,415   87,667   93,104   79,981


   (A) Increases in base and percentage rental revenues for the six month
       period ended June 30, 2004 as compared to 2003, aggregated $28.9
       million consisting of $1.0 million related to leasing of core
       portfolio properties (an increase of 0.9% from 2003), $6.7 million
       from the acquisition of four shopping centers in 2003 and 2004, $15.9
       million from the properties acquired from Benderson, $18.9 million
       from the JDN merger and $1.5 million from the consolidation of a
       joint venture interest due to the adoption of FIN 46.  These amounts
       were offset by a decrease of $0.3 million relating to the business
       center properties, and $14.6 million due to the sale of properties to
       joint ventures in 2003 and 2004 and $0.2 million related to
       developments and redevelopments.  Included in the rental revenues for
       the six month periods ended June 30, 2004 and 2003 is approximately
       $3.5 million and $3.0 million, respectively, of revenue resulting
       from the recognition of straight line rents.


   (B) Other income for the six month periods ended June 30, 2004 and 2003
       was comprised of the following (in millions):

                              Three Month Period          Six Month Period
                                 Ended June 30,            Ended June 30,
                               2004         2003         2004         2003
           Lease termination
            and bankruptcy
            settlements        $3.5         $2.5         $7.0         $2.8
           Acquisition and
           finance fees         3.0            -          3.0            -
           Settlement of
           call option (1)        -            -            -          2.4
           Sale of option
           rights and other
           miscellaneous          -          0.4            -          0.7

                               $6.5         $2.9        $10.0         $5.9

          (1) Settlement of a call option on March 31, 2003 relating to the
              MOPPRS debt assumed from JDN, principally arising from an
              increase in interest rates from the date of acquisition,
              March 13, 2003, to the date of settlement.


   (C) General and administrative expenses include internal leasing
       salaries, legal salaries and related expenses associated with the
       releasing of space, which are charged to operations as incurred.  For
       the six month periods ended June 30, 2004 and 2003, general and
       administrative expenses were approximately 4.9% and 5.3%,
       respectively, of total revenues, including joint venture revenues,
       for each period.


   (D) The following is a summary of the Company's share of the combined
       operating results relating to its joint ventures (in thousands):

                           Three Month Period         Six Month Period
                              Ended June 30,            Ended June 30,
                            2004         2003         2004         2003
   Revenues from
   operations (a)        $82,902      $59,358     $159,177     $119,230

  Operating expense       29,712       22,884       55,958       44,884
  Depreciation and
   amortization of real
   estate investments     14,260        9,214       25,152       19,488
  Interest expense        17,814       18,244       36,471       38,312
                          61,786       50,342      117,581      102,684

  Income from operations
   before gain on sale
   of real estate and
   real estate investments
   and discontinued
   operations             21,116        9,016       41,596       16,546
  Gain (loss) on sale of
   real estate and real
   estate investments          5          588           (8)       2,331
  (Loss) income from
   discontinued
   operations, net of tax    377         (449)          50        2,229
  (Loss) gain on sale
   of discontinued
   operations,
   net of tax               (132)       7,699       23,777       40,887
  Net income             $21,366      $16,854      $65,415      $61,993
  DDR Ownership
   interests (b)          $7,064       $7,094      $25,365      $17,531

  Funds From Operations
   from joint ventures
   are summarized as
   follows:
    Net income           $21,366      $16,854      $65,415      $61,993
    Loss (gain) on sale
     of real estate and
     real estate
     investments,
     including
     discontinued
     operations              126       (5,125)     (23,988)     (40,815)
    Depreciation and
     amortization of
     real estate
     investments          14,260       10,068       25,038       21,481
                         $35,752      $21,797      $66,465      $42,659
    DDR Ownership
     interests (b)       $11,065       $8,149      $23,741      $15,943
    DDR Partnership
     distributions
     received, net       $20,738      $12,669      $49,054      $34,110

        (a) Revenues for the three month periods ended June 30, 2004 and
            2003 included approximately $1.6 million and $0.7 million,
            respectively, resulting from the recognition of straight line
            rents of which the Company's proportionate share is $0.3 million
            and $0.1 million, respectively.   Revenues for the six month
            periods ended June 30, 2004 and 2003 included approximately $2.7
            million and $1.6 million, respectively, resulting from the
            recognition of straight line rents of which the Company's
            proportionate share is $0.5 million and $0.4 million,
            respectively.

        (b) Included in equity in net income of joint ventures for the six
            months ended June 30, 2004, is approximately $3.2 million of
            previously deferred gain related to the sale of joint venture
            property at the end of 2003.  This amount was deferred until
            certain construction and leasing obligations were achieved.

            The Company's share of joint venture net income has been reduced
            by $0.1 million and $0.3 million for the three month periods
            ended June 30, 2004 and 2003, respectively, and by $0.2 million
            and $0.7 million for the six month periods ended June 30, 2004
            and 2003, respectively, to reflect additional basis
            depreciation.

            At June 30, 2004 and 2003, the Company owned joint venture
            interests relating to 74 and 54 shopping center properties,
            respectively.  In addition, at June 30, 2004 and 2003,
            respectively, the Company, through a joint venture, owned an
            interest of approximately 25% in 69 and 80 shopping center sites
            formerly owned by Service Merchandise, respectively.


   (E) Minority Equity Interests are comprised of the following
       (in thousands):

                                      Three Month Period     Six Month
                                         Ended June 30,    Ended June 30,
                                         2004     2003     2004     2003
       Minority interests                $342    $391      $914     $843
       Preferred Operating Partnership
        Units                               -       -         -    2,236
       Operating Partnership Units        624     482     1,196      859
                                         $966    $873    $2,110   $3,938


   (F) The operating results relating to assets classified as discontinued
       operations are summarized as follows (in thousands):

                                      Three Month Period  Six Month Period
                                         Ended June 30,     Ended June 30,
                                         2004    2003      2004     2003
       Revenues                           $-     $988      $145   $1,853

       Expenses:
          Operating                        -    2,852        94    2,975
          Interest                         -      177        19      356
          Depreciation                     -      377        38      652
                                           -    3,406       151    3,983
                                           -   (2,418)       (6)  (2,130)

  Minority interests                       -        -        (4)       -
  Gain (loss) on sales of real estate      -    1,206      (693)   1,206
                                          $-  $(1,212)    $(703)   $(924)


   (G) For the three and six month periods ended June 30, 2003, the Company
       previously reported an impairment charge of $2.6 million which was
       reflected as an add back to FFO similar to a loss on sale of real
       estate.  In accordance with comments recently received from the SEC,
       this charge has been reflected in FFO available to common
       shareholders for 2003 which resulted in the previously reported FFO
       of $58.6 million and $102.9 million or $0.68 per share (basic) and
       $0.67 per share (diluted) and $1.30 per share (basic) and $1.28 per
       share (diluted) for the three and six month periods ended June 30,
       2003 being adjusted as reflected on the FFO calculation disclosed.

   (H) The cumulative effect of adoption of a new accounting standard
       (FIN 46) of approximately $3.0 million is attributable to the
       consolidation of a 50% owned shopping center property in
       Martinsville, Virginia and the minority partner's share of cumulative
       losses.

   (I) For purposes of computing FFO per share (basic), the weighted average
       shares outstanding were adjusted to reflect the conversion, on a
       weighted average basis of 1.4 million and 1.1 million Operating
       Partnership Units (OP Units) outstanding at June 30, 2004 and 2003
       into 1.3 million and 1.1 million common shares of the Company for the
       three month periods ended June 30, 2004 and 2003, respectively and
       1.2 million and 1.0 million for the six month periods ended June 30,
       2004 and 2003.  The weighted average diluted shares and OP Units
       outstanding were 97.6 million and 87.8 million for the three month
       periods ended June 30, 2004 and 2003, respectively and 93.2 million
       and 80.1 million for the six month periods ended June 30, 2004 and
       2003, respectively.


                DEVELOPERS DIVERSIFIED REALTY CORPORATION
                           Financial Highlights
                              (In thousands)

  Selected Balance Sheet Data:
                                             June 30, 2004 December 31, 2003
  Assets:
  Real estate and rental property:
     Land                                       $1,372,811       $821,893
     Buildings                                   4,116,399      2,719,764
     Fixtures and tenant improvements               95,726         90,384
     Construction in progress                      288,388        252,870
                                                 5,873,324      3,884,911

  Less accumulated depreciation                   (518,399)      (458,213)
  Real estate, net                               5,354,925      3,426,698

  Cash                                              21,520         11,693
  Restricted cash                                        -         99,340
  Advances to and investments in joint ventures    260,182        260,143
  Notes receivable                                  18,133         11,741
  Receivables, including straight line rent, net    92,543         76,509
  Other assets, net                                 87,333         55,027
                                                $5,834,636     $3,941,151

  Liabilities:
  Indebtedness:
    Revolving credit facilities                   $449,500       $186,500
    Variable rate unsecured term debt              350,000        300,000
    Unsecured debt                               1,360,322        838,996
    Mortgage and other secured debt              1,075,292        757,635
                                                 3,235,114      2,083,131
    Dividends payable                               53,063         43,520

    Other liabilities                              180,998        152,992
                                                 3,469,175      2,279,643

  Minority interests                                57,671         47,438
  Shareholders' equity                           2,307,790      1,614,070
                                                $5,834,636     $3,941,151


  Combined condensed balance sheets relating to
   the Company's joint ventures are as follows:
                                                  June 30,     December 31,
                                                    2004           2003

  Land                                            $697,755       $519,846
  Buildings                                      1,915,782      1,692,367
  Fixtures and tenant improvements                  35,834         24,985
  Construction in progress                          38,102         38,018
                                                 2,687,473      2,275,216
  Accumulated depreciation                        (114,148)      (118,755)
  Real estate, net                               2,573,325      2,156,461
  Receivables, including straight line rent, net    44,877         47,165
  Leasehold interests                               27,656         28,895
  Other assets                                     102,906         83,776
                                                $2,748,764     $2,316,297

  Mortgage debt (a)                             $1,593,210     $1,321,117
  Notes and accrued interest payable to DDRC        18,360         31,683
  Amounts payable to other partners                 42,026         32,121
  Other liabilities                                 67,051         80,681
                                                 1,720,647      1,465,602
      Accumulated equity                         1,028,117        850,695
                                                $2,748,764     $2,316,297

  (a) The Company's proportionate share of joint venture debt aggregated
      approximately $381.2 million and $368.5 million at June 30, 2004 and
      December 31, 2003, respectively.


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DATASOURCE: Developers Diversified Realty Corporation



CONTACT:  Scott A. Wolstein, Chairman, Chief Executive Officer,

[phone], or Michelle A. Mahue, Vice President of Investor Relations,

[phone], both of Developers Diversified Realty Corporation 



Web site:  http://www.ddr.com/ 

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