Correction: Fitch Ratings Affirms JDN Realty Corporation At 'BB'.

Business Editors

NEW YORK--(BUSINESS WIRE)--April 25, 2002

(This is a revised version of a press release issued April 24, 2002, containing updated information in paragraph 4)

Fitch Ratings has affirmed its 'BB' rating for JDN Realty Corporation's outstanding $235 million of senior unsecured debt, its 'B+' rating for $50 million of outstanding preferred stock, and has removed the ratings from Rating Watch Negative. The Rating Outlook is Stable.

Fitch's ratings reflect the quality of JDN Realty's (NYSE: JDN) core portfolio of discount and grocery anchored shopping centers, financial strength of its anchor tenants, long remaining lease terms, geographic diversification and solid property fundamentals. The ratings are balanced by JDN's sizeable development pipeline, near-term refinancing risk, and a secured financing strategy, that limits the company's overall financial flexibility.

Removal of the Rating Watch Negative status reflects the settlement of JDN's class action lawsuit and recent resolution to the SEC's investigation of prior management's undisclosed compensation and financial restatement. The new management team can now focus on its strategy of incorporating more grocery anchored centers.

JDN's secured financing strategy is viewed as a rating constraint, with a heavy reliance on its bank borrowings comprised of a $150 term loan and a $150 million revolver ($80 million outstanding as of Dec. 31, 2001) that are collateralized with approximately $500 million of stabilized JDN assets (market value). The conversion of its bank debt to a secured facility has reduced the quality and quantity of unencumbered assets. As of year-end 2001, JDN exhibited a modest 1.1 times (x) coverage of unencumbered net operating income (NOI) to interest on unsecured debt obligations.

While Fitch remains concerned with JDN's ability to meet its near term debt maturities, specifically the $300 million secured term loan and revolver, both due December 2002, and $75 million of unsecured notes, subject to mandatory redemption in March 2003, a review of JDN's development pipeline and realization of expected cash flow will provide additional financial flexibility. Fitch believes JDN should be able to renew or refinance its secured credit facility at expiration, potentially with more favorable terms or lower collateral requirements. However, the attainment of longer-term financial flexibility is conditioned upon obtaining an unsecured line of credit, and expanding its unencumbered asset base relative to unsecured debt obligations.

JDN's development pipeline (total cost $265 million as of Dec. 31, 2001) is approximately 70% pre-leased and consists of 21 projects, including 17 unencumbered projects. Based on leases signed and projected completions as of year-end 2001, Fitch estimates JDN's development pipeline should generate an annualized $9 million of unencumbered net operating income (NOI) by March 2003. In total, management projects its pipeline will generate an additional $20 million of unencumbered NOI upon stabilization.

JDN has a diversified tenant base, and its largest tenant concentrations are Lowe's Companies (rated 'A', Rating Outlook Stable by Fitch) representing 16% of total annualized base rents and Wal-Mart (rated 'AA', Rating Outlook Stable) at 5% of total annualized base rents. Operating performance has been solid in a recessionary environment with relatively flat NOI growth and stable occupancy at 95%, as of year-end 2001. The company's lease maturity schedule is considered a credit strength with no more than 7% (annualized base rents) of its leases maturing in any one year over the next five years.

JDN's debt plus preferred to un-depreciated book capital is 55%, and its interest and fixed charge coverage (including capital expenditures and capitalized interest) are 1.9x and 1.7x, respectively, and considered satisfactory for its ratings category. Fitch continues to monitor the execution of JDN's development pipeline, the seasoning of its new management team, ability to incorporate more grocery anchor centers into its portfolio, asset sales, and the use of mortgage and construction financing.

JDN Realty Corporation specializes in the development and asset management of retail shopping centers anchored by value-oriented retailers (necessity item retailers). JDN owns and operates 100 shopping center properties containing approximately 11 million square feet of gross leasable area (GLA) located within 20 states, as of February 2002. JDN had a total market capitalization of $1.1 billion, as of year-end 2001.