Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CBL & ASSOCIATES PROPERTIES INC | form8k.htm |
| EX-99.2 - INVESTOR CONFERENCE CALL SCRIPT - CBL & ASSOCIATES PROPERTIES INC | exhibit992.htm |
| EX-99.3 - SUPPLEMENTAL FINANCIAL AND OPERATING INFORMATION - CBL & ASSOCIATES PROPERTIES INC | exhibit993.htm |
Exhibit
99.1
Investor Contact: Katie Reinsmidt, Vice President - Corporate Communications and Investor Relations, 423.490.8301, katie_reinsmidt@cblproperties.com
CBL
& ASSOCIATES PROPERTIES REPORTS
SECOND
QUARTER 2010 RESULTS
|
·
|
Portfolio
occupancy increased 160 basis points to 89.6% as of June 30, 2010,
compared to the prior-year period.
|
|
·
|
Reported
FFO per diluted share of $0.49 for the second quarter 2010, excluding a
non-cash impairment of real estate.
|
|
·
|
Same-store
sales per square foot for mall tenants 10,000 square feet or less for
stabilized malls for the six months ended June 30, 2010, increased
2.1%.
|
|
·
|
CBL
provides 2010 FFO guidance in the range of $1.87 - $1.95 per share, $0.05
per share higher than previously issued
guidance.
|
CHATTANOOGA,
Tenn. (August 3, 2010) – CBL & Associates Properties, Inc. (NYSE:CBL)
announced results for the second quarter ended June 30, 2010. A
description of each non-GAAP financial measure and the related reconciliation to
the comparable GAAP measure is located at the end of this news
release.
Funds
from Operations (“FFO”) allocable to common shareholders for the second quarter
ended June 30, 2010, was $68,357,000, or $0.49 per diluted share, excluding a
non-cash impairment of real estate of $0.13 per diluted share. FFO
allocable to common shareholders for the six months ended June 30, 2010, was
$136,327,000, or $0.99 per diluted share, excluding the non-cash impairment of
real estate.
FFO of
the operating partnership for the second quarter ended June 30, 2010, was
$94,078,000, excluding the non-cash impairment of real estate, compared with
$96,299,000 in the prior-year period. FFO of the operating partnership for the
six months ended June 30, 2010, was $187,649,000, excluding the non-cash
impairment of real estate, compared with $184,749,000 in the prior-year
period.
Net loss
attributable to common shareholders for the second quarter ended June 30, 2010,
was $7,242,000, or $0.05 per diluted share. Net loss in the current quarter was
impacted by the non-cash impairment of real estate related to an operating
property. Net income available to common shareholders for the six months ended
June 30, 2010, was $3,686,000, or $0.03 per diluted share.
-MORE-
CBL
Reports Second Quarter Results
Page
2
August 3,
2010
CBL’s
President and Chief Executive Officer, Stephen D. Lebovitz, commented, “Our
strategic focus on creating revenue growth in our portfolio was evident in the
quarter with the 160 basis point gain in occupancy as junior anchor and mall
shop leasing had a positive impact. While the current retail real
estate environment remains challenging, we are managing through what we see as a
slow recovery with more efficient operations, an aggressive leasing strategy and
continued success in securing capital at favorable terms.
“We are
encouraged by the expansion plans announced by many retailers at ICSC's RECon in
May as well as the 25% increase in attendance at our annual Connection leasing
conference in June. The momentum from these gatherings helped us achieve 1.3
million square feet in lease signings. During the quarter, we also announced
more than $298 million in financings that provided over $50.0 million in excess
proceeds and positioned us to address all of our remaining 2010 debt maturities
well before year-end. We will look to build on these achievements and improve
the performance of our portfolio over the balance of the year.”
HIGHLIGHTS
|
§
|
Same-store
sales per square foot for mall tenants 10,000 square feet or less for
stabilized malls for the six months ended June 30, 2010, increased 2.1%.
Same-store sales of mall tenants 10,000 square feet or less for stabilized
malls for the rolling twelve months ended June 30, 2010 declined 1.5% to
$316 per square foot compared with $321 per square foot in the prior-year
period.
|
|
§
|
Same-center
net operating income (“NOI”), excluding lease termination fees, for the
quarter ended June 30, 2010, declined 3.3% compared with a decline of 1.3%
for the prior-year period. Same-center NOI, excluding lease terminations
fees, for the six months ended June 30, 2010, declined 2.2% compared with
a decline of 0.4% for the prior-year
period.
|
|
§
|
Consolidated
and unconsolidated variable rate debt of $1,613,120,000 represented 18.3%
of the total market capitalization for the Company and 26.8% of the
Company's share of total consolidated and unconsolidated debt as of June
30, 2010.
|
PORTFOLIO
OCCUPANCY
|
June
30,
|
||||||||||
|
2010
|
2009
|
|||||||||
|
Portfolio
occupancy
|
89.6 | % | 88.0 | % | ||||||
|
Mall
portfolio
|
89.8 | % | 88.7 | % | ||||||
|
Stabilized
malls
|
90.1 | % | 89.1 | % | ||||||
|
Non-stabilized
malls
|
76.9 | % | 72.2 | % | ||||||
|
Associated
centers
|
91.9 | % | 88.7 | % | ||||||
|
Community
centers
|
86.4 | % | 78.5 | % | ||||||
PROPERTY
REVIEW
During
the course of the Company's normal quarterly review, the Company determined that
it was appropriate to write-down the depreciated book value of its operating
property, Oak Hollow Mall in High Point, NC, to its estimated fair value. The
write-down resulted in a non-cash impairment of real estate in the second
quarter 2010 of $25.4 million or $0.13 per diluted share. The Company
has entered into a contract to sell Oak Hollow Mall, subject to due diligence
and customary closing conditions. In conjunction with the anticipated
sale, the Company has also reached an agreement with the lender holding the
non-recourse loan secured by Oak Hollow Mall, to modify the balance of the loan
outstanding of $39.6 million to equal the net sales price. The
Company expects to record a gain on the extinguishment of debt of approximately
$27.6 million at the completion of the disposition.
-MORE-
CBL
Reports Second Quarter Results
Page 3
August 3,
2010
FINANCING
ACTIVITY
During
the second quarter, CBL announced $298.8 million in non-recourse financing
activity at a combined estimated weighted average interest rate of 6.58%. The
Company closed five separate non-recourse loans including one new loan and the
refinancing of four existing loans, generating total net proceeds of $51.5
million, after repayment of the existing loans.
The
Company closed a new $14.8 million loan secured by The Terrace, an associated
center in Chattanooga, TN. The ten-year loan bears a fixed interest rate of
7.25%. CBL also closed an eight-year $115.0 million loan secured by CoolSprings
Galleria in Nashville, TN, with a fixed interest rate of 6.98%. The loan
replaced the existing $120.5 million loan, which was scheduled to mature in
September 2010.
CBL
closed two separate ten-year, CMBS loans including an $83.0 million loan secured
by Burnsville Center in Minneapolis, MN, and a $21.0 million loan (representing
CBL’s 50% share) secured by Parkway Place in Huntsville, AL. Subsequent to the
quarter end, CBL closed a ten-year, $65.0 million non-recourse CMBS loan secured
by Valley View Mall in Roanoke, VA. The loan secured by Burnsville Center bears
a fixed interest rate of 6.0% and the loans secured by Parkway Place and Valley
View Mall bear a fixed interest rate of 6.5%. These loans replaced three
existing loans secured by these properties, aggregating $126.8 million that were
scheduled to mature in 2010.
In July,
CBL closed the extension and modification of its secured credit facility with
total capacity of $105.0 million. The facility was extended to June 2012 at its
existing interest rate of 300 basis points over the LIBOR with a floor rate of
4.5%. First Tennessee Bank NA serves as Administrative Agent.
Additionally,
subsequent to the quarter end, CBL repaid the $48.0 million loan secured by
Parkdale Mall and the $7.6 million loan secured by Parkdale Crossing in
Beaumont, TX. Both properties were pledged to the Company’s $560
million credit facility.
DISPOSITIONS
During
the quarter, CBL completed the sale of its interest in Plaza del Sol, a
260,000-square-foot shopping center in Del Rio, TX. The Company used
the net proceeds to reduce outstanding borrowings on its lines of
credit.
OUTLOOK
AND GUIDANCE
Based on
today's outlook and the Company's second quarter results, the Company is
providing 2010 FFO guidance of $1.87 - $1.95 per share, which is $0.05 per share
higher than the previously issued guidance. The full year guidance
incorporates the impact on FFO of the $25.4 million impairment of real estate
recognized in the second quarter 2010 as well as an estimated $27.6 million gain
on extinguishment of debt expected to be recognized before
year-end. The full year guidance also assumes $3.0 million to $5.0
million of outparcel sales and same-center NOI growth in the range of (1.5%) to
(3.5%), excluding the impact of lease termination fees from both applicable
periods. The guidance excludes the impact of any future unannounced
acquisitions or dispositions. The Company expects to update its
annual guidance after each quarter's results.
|
Low
|
High
|
||||||||
|
Expected
diluted earnings per common share
|
$ | 0.21 | $ | 0.29 | |||||
|
Adjust
to fully converted shares from common shares
|
(0.06 | ) | (0.08 | ) | |||||
|
Expected
earnings per diluted, fully converted common share
|
0.15 | 0.21 | |||||||
|
Add:
depreciation and amortization
|
1.66 | 1.66 | |||||||
|
Add:
noncontrolling interest in earnings of Operating
Partnership
|
0.06 | 0.08 | |||||||
|
Expected
FFO per diluted, fully converted common share
|
$ | 1.87 | $ | 1.95 | |||||
-MORE-
CBL
Reports Second Quarter Results
Page
4
August 3,
2010
INVESTOR
CONFERENCE CALL AND SIMULCAST
CBL &
Associates Properties, Inc. will conduct a conference call at 11:00 a.m. EDT on
Wednesday, August 4, 2010, to discuss its second quarter results. The
number to call for this interactive teleconference is
(212) 231-2900. A seven-day replay of the conference call will
be available by dialing (402) 977-9140 and entering the passcode
21463739. A transcript of the Company's prepared remarks will be
furnished on a Form 8-K following the conference call.
To
receive the CBL & Associates Properties, Inc., second quarter earnings
release and supplemental information please visit our website at cblproperties.com or
contact Investor Relations at 423-490-8312.
The
Company will also provide an online web simulcast and rebroadcast of its 2010
second quarter earnings release conference call. The live broadcast
of the quarterly conference call will be available online at cblproperties.com on
Wednesday, August 4, 2010, beginning at 11:00 a.m. EDT. The online
replay will follow shortly after the call and continue through August 11,
2010.
CBL is
one of the largest and most active owners and developers of malls and shopping
centers in the United States. CBL owns, holds interests in or manages 162
properties, including 86 regional malls/open-air centers. The properties are
located in 27 states and total 85.9 million square feet including 2.2 million
square feet of non-owned shopping centers managed for third parties.
Headquartered in Chattanooga, TN, CBL has regional offices in Boston (Waltham),
MA, Dallas (Irving), TX, and St. Louis, MO. Additional information
can be found at cblproperties.com.
NON-GAAP
FINANCIAL MEASURES
Funds
From Operations
FFO is a
widely used measure of the operating performance of real estate companies that
supplements net income determined in accordance with GAAP. The National
Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net
income (loss) (computed in accordance with GAAP) excluding gains or losses on
sales of operating properties, plus depreciation and amortization, and after
adjustments for unconsolidated partnerships and joint ventures and
noncontrolling interests. Adjustments for unconsolidated partnerships and joint
ventures and noncontrolling interests are calculated on the same basis. The
Company defines FFO allocable to its common shareholders as defined above by
NAREIT less dividends on preferred stock. The Company’s method of calculating
FFO allocable to its common shareholders may be different from methods used by
other REITs and, accordingly, may not be comparable to such other
REITs.
The
Company believes that FFO provides an additional indicator of the operating
performance of its properties without giving effect to real estate depreciation
and amortization, which assumes the value of real estate assets declines
predictably over time. Since values of well-maintained real estate assets have
historically risen with market conditions, the Company believes that FFO
enhances investors’ understanding of its operating performance. The use of FFO
as an indicator of financial performance is influenced not only by the
operations of the Company’s properties and interest rates, but also by its
capital structure.
The
Company presents both FFO of its operating partnership and FFO allocable to its
common shareholders, as it believes that both are useful performance
measures. The Company believes FFO of its operating partnership is a
useful performance measure since it conducts substantially all of its business
through its operating partnership and, therefore, it reflects the performance of
the properties in absolute terms regardless of the ratio of ownership interests
of the Company’s common shareholders and the noncontrolling interest in the
operating partnership. The Company believes FFO allocable to its
common shareholders is a useful performance measure because it is the
performance measure that is most directly comparable to net income available to
its common shareholders.
In the
reconciliation of net income available to the Company's common shareholders to
FFO allocable to its common shareholders, located at the end of this earnings
release, the Company makes an adjustment to add back noncontrolling interest in
earnings of its operating partnership in order to arrive at FFO of its operating
partnership. The Company then applies a percentage to FFO of its
operating partnership to arrive at FFO allocable to its common
-MORE-
CBL
Reports Second Quarter Results
Page
5
August 3,
2010
shareholders.
The percentage is computed by taking the weighted average number of common
shares outstanding for the period and dividing it by the sum of the weighted
average number of common shares and the weighted average number of operating
partnership units outstanding during the period.
FFO does not represent cash flows from operations as defined by accounting
principles generally accepted in the United States, is not necessarily
indicative of cash available to fund all cash flow needs and should not be
considered as an alternative to net income for purposes of evaluating the
Company’s operating performance or to cash flow as a measures of
liquidity.
During
the second quarter and year to date period ended June 30, 2010, the Company
recorded a loss on impairment of real estate assets related to an operating
property. Considering the significance and nature of the impairment, the Company
believes that it is important to identify the impact of the change on its FFO
measures for a reader to have a complete understanding of the Company's results
of operations. Therefore, the Company has also presented its FFO measure
excluding the impairment charge.
Same-Center
Net Operating Income
NOI is a
supplemental measure of the operating performance of the Company's shopping
centers. The Company defines NOI as operating revenues (rental
revenues, tenant reimbursements and other income) less property operating
expenses (property operating, real estate taxes and maintenance and
repairs).
Similar
to FFO, the Company computes NOI based on its pro rata share of both
consolidated and unconsolidated properties. The Company's definition
of NOI may be different than that used by other companies and, accordingly, the
Company's NOI may not be comparable to that of other companies. A
reconciliation of same-center NOI to net income is located at the end of this
earnings release.
Since NOI
includes only those revenues and expenses related to the operations of its
shopping center properties, the Company believes that same-center NOI provides a
measure that reflects trends in occupancy rates, rental rates and operating
costs and the impact of those trends on the Company's results of operations.
Additionally, there are instances when tenants terminate their leases prior to
the scheduled expiration date and pay the Company one-time, lump-sum termination
fees. These one-time lease termination fees may distort same-center NOI trends
and may result in same-center NOI that is not indicative of the ongoing
operations of the Company's shopping center properties. Therefore, the Company
believes that presenting same-center NOI, excluding lease termination fees, is
useful to investors.
Pro
Rata Share of Debt
The Company presents debt based on its
pro rata ownership share (including the Company's pro rata share of
unconsolidated affiliates and excluding noncontrolling interests' share of
consolidated properties) because it believes this provides investors a clearer
understanding of the Company's total debt obligations which affect the Company's
liquidity. A reconciliation of the Company's pro rata share of debt
to the amount of debt on the Company's consolidated balance sheet is located at
the end of this earnings release.
Information
included herein contains "forward-looking statements" within the meaning of the
federal securities laws. Such statements are inherently subject to
risks and uncertainties, many of which cannot be predicted with accuracy and
some of which might not even be anticipated. Future events and actual
events, financial and otherwise, may differ materially from the events and
results discussed in the forward-looking statements. The reader is
directed to the Company's various filings with the Securities and Exchange
Commission, including without limitation the Company's Annual Report on Form
10-K for the year ended December 31, 2009 and the "Management's Discussion and
Analysis of Financial Condition and Results of Operations" included therein, for
a discussion of such risks and uncertainties.
-MORE-
CBL
Reports Second Quarter Results
Page
6
August 3,
2010
CBL
& Associates Properties, Inc.
Consolidated
Statements of Operations
(Unaudited;
in thousands, except per share amounts)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
REVENUES:
|
||||||||||||||||
|
Minimum
rents
|
$ | 170,239 | $ | 170,491 | $ | 339,060 | $ | 342,428 | ||||||||
|
Percentage
rents
|
2,127 | 1,604 | 6,140 | 6,408 | ||||||||||||
|
Other
rents
|
4,598 | 4,142 | 9,174 | 8,422 | ||||||||||||
|
Tenant
reimbursements
|
76,347 | 81,695 | 156,170 | 163,179 | ||||||||||||
|
Management,
development and leasing fees
|
1,601 | 1,615 | 3,307 | 4,080 | ||||||||||||
|
Other
|
7,234 | 6,977 | 14,471 | 13,067 | ||||||||||||
|
Total
revenues
|
262,146 | 266,524 | 528,322 | 537,584 | ||||||||||||
|
EXPENSES:
|
||||||||||||||||
|
Property
operating
|
37,514 | 39,355 | 76,411 | 83,372 | ||||||||||||
|
Depreciation
and amortization
|
70,652 | 75,793 | 142,664 | 154,104 | ||||||||||||
|
Real
estate taxes
|
24,866 | 24,449 | 49,858 | 48,603 | ||||||||||||
|
Maintenance
and repairs
|
13,561 | 13,416 | 29,745 | 29,410 | ||||||||||||
|
General
and administrative
|
10,321 | 10,893 | 21,395 | 22,372 | ||||||||||||
|
Loss
on impairment of real estate
|
25,435 | - | 25,435 | - | ||||||||||||
|
Other
|
6,415 | 5,914 | 13,116 | 11,071 | ||||||||||||
|
Total
expenses
|
188,764 | 169,820 | 358,624 | 348,932 | ||||||||||||
|
Income
from operations
|
73,382 | 96,704 | 169,698 | 188,652 | ||||||||||||
|
Interest
and other income
|
948 | 1,362 | 1,999 | 2,943 | ||||||||||||
|
Interest
expense
|
(73,341 | ) | (72,842 | ) | (146,801 | ) | (144,727 | ) | ||||||||
|
Loss
on impairment of investment
|
- | - | - | (7,706 | ) | |||||||||||
|
Gain
(loss) on sales of real estate assets
|
1,149 | 72 | 2,015 | (67 | ) | |||||||||||
|
Equity
in earnings of unconsolidated affiliates
|
409 | 62 | 948 | 1,596 | ||||||||||||
|
Income
tax benefit (provision)
|
1,911 | (152 | ) | 3,788 | (755 | ) | ||||||||||
|
Income
from continuing operations
|
4,458 | 25,206 | 31,647 | 39,936 | ||||||||||||
|
Operating
income of discontinued operations
|
59 | 86 | 73 | 20 | ||||||||||||
|
Loss
on discontinued operations
|
- | (12 | ) | - | (72 | ) | ||||||||||
|
Net
income
|
4,517 | 25,280 | 31,720 | 39,884 | ||||||||||||
|
Net
(income) loss attributable to noncontrolling interests in:
|
||||||||||||||||
|
Operating
partnership
|
2,723 | (5,109 | ) | (1,387 | ) | (6,415 | ) | |||||||||
|
Other
consolidated subsidiaries
|
(6,124 | ) | (6,580 | ) | (12,261 | ) | (12,711 | ) | ||||||||
|
Net
income attributable to the Company
|
1,116 | 13,591 | 18,072 | 20,758 | ||||||||||||
|
Preferred
dividends
|
(8,358 | ) | (5,454 | ) | (14,386 | ) | (10,909 | ) | ||||||||
|
Net
income (loss) attributable to common shareholders
|
$ | (7,242 | ) | $ | 8,137 | $ | 3,686 | $ | 9,849 | |||||||
|
Basic
per share data attributable to common shareholders:
|
||||||||||||||||
|
Income
(loss) from continuing operations, net of preferred
dividends
|
$ | (0.05 | ) | $ | 0.10 | $ | 0.03 | $ | 0.13 | |||||||
|
Discontinued
operations
|
- | - | - | - | ||||||||||||
|
Net
income (loss) attributable to common shareholders
|
$ | (0.05 | ) | $ | 0.10 | $ | 0.03 | $ | 0.13 | |||||||
|
Weighted
average common shares outstanding
|
138,068 | 82,187 | 138,018 | 74,341 | ||||||||||||
|
Diluted
per share data attributable to common shareholders:
|
||||||||||||||||
|
Income
(loss) from continuing operations, net of preferred
dividends
|
$ | (0.05 | ) | $ | 0.10 | $ | 0.03 | $ | 0.13 | |||||||
|
Discontinued
operations
|
- | - | - | - | ||||||||||||
|
Net
income (loss) attributable to common shareholders
|
$ | (0.05 | ) | $ | 0.10 | $ | 0.03 | $ | 0.13 | |||||||
|
|
||||||||||||||||
|
Weighted
average common and potential dilutive common shares
outstanding
|
138,112 | 82,226 | 138,059 | 74,378 | ||||||||||||
|
Amounts
attributable to common shareholders:
|
||||||||||||||||
|
Income
(loss) from continuing operations, net of preferred
dividends
|
$ | (7,285 | ) | $ | 8,092 | $ | 3,633 | $ | 9,880 | |||||||
|
Discontinued
operations
|
43 | 45 | 53 | (31 | ) | |||||||||||
|
Net
income (loss) attributable to common shareholders
|
$ | (7,242 | ) | $ | 8,137 | $ | 3,686 | $ | 9,849 | |||||||
-MORE-
CBL
Reports Second Quarter Results
Page
7
August 3,
2010
CBL
& Associates Properties, Inc.
Consolidated
Statements of Operations
(Unaudited;
in thousands, except per share amounts)
The
Company's calculation of FFO allocable to Company shareholders is as
follows:
(in
thousands, except per share data)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Net
income (loss) attributable to common shareholders
|
$ | (7,242 | ) | $ | 8,137 | $ | 3,686 | $ | 9,849 | |||||||
|
Noncontrolling
interest in income (loss) of operating partnership
|
(2,723 | ) | 5,109 | 1,387 | 6,415 | |||||||||||
|
Depreciation
and amortization expense of:
|
||||||||||||||||
|
Consolidated
properties
|
70,652 | 75,793 | 142,664 | 154,104 | ||||||||||||
|
Unconsolidated
affiliates
|
8,486 | 7,555 | 15,371 | 15,064 | ||||||||||||
|
Non-real
estate assets
|
(219 | ) | (243 | ) | (438 | ) | (490 | ) | ||||||||
|
Noncontrolling
interests' share of depreciation and amortization
|
(311 | ) | (64 | ) | (456 | ) | (265 | ) | ||||||||
|
Loss
on discontinued operations
|
- | 12 | - | 72 | ||||||||||||
|
Funds
from operations of the operating partnership
|
68,643 | 96,299 | 162,214 | 184,749 | ||||||||||||
|
Loss
on impairment of real estate
|
25,435 | - | 25,435 | - | ||||||||||||
|
Funds
from operations of the operating partnership, excluding
loss
on impairment of real estate
|
$ | 94,078 | $ | 96,299 | $ | 187,649 | $ | 184,749 | ||||||||
|
Funds
from operations per diluted share
|
$ | 0.36 | $ | 0.72 | $ | 0.85 | $ | 1.47 | ||||||||
|
Loss
on impairment of real estate per diluted share (1)
|
0.13 | - | 0.14 | - | ||||||||||||
|
Funds
from operations, excluding loss on impairment of real
estate,
per diluted share
|
$ | 0.49 | $ | 0.72 | $ | 0.99 | $ | 1.47 | ||||||||
|
Weighted
average common and potential dilutive common shares
outstanding
with operating partnership units fully converted
|
190,061 | 133,969 | 190,008 | 125,558 | ||||||||||||
|
Reconciliation
of FFO of the operating partnership
|
||||||||||||||||
|
to
FFO allocable to Company shareholders:
|
||||||||||||||||
|
Funds
from operations of the operating partnership
|
$ | 68,643 | $ | 96,299 | $ | 162,214 | $ | 184,749 | ||||||||
|
Percentage
allocable to common shareholders (2)
|
72.66 | % | 61.37 | % | 72.65 | % | 59.23 | % | ||||||||
|
Funds
from operations allocable to common shareholders
|
$ | 49,876 | $ | 59,099 | $ | 117,848 | $ | 109,427 | ||||||||
|
Funds
from operations of the operating partnership, excluding
loss
on impairment of real estate
|
$ | 94,078 | $ | 96,299 | $ | 187,649 | $ | 184,749 | ||||||||
|
Percentage
allocable to common shareholders (2)
|
72.66 | % | 61.37 | % | 72.65 | % | 59.23 | % | ||||||||
|
Funds
from operations allocable to Company shareholders,
excluding
loss on impairment of real estate
|
$ | 68,357 | $ | 59,099 | $ | 136,327 | $ | 109,427 | ||||||||
|
(1)
|
Diluted
per share amounts presented for reconciliation purposes may differ from
actual diluted per share amounts due to rounding.
|
|
(2)
|
Represents
the weighted average number of common shares outstanding for the period
divided by the sum of the weighted average number of common shares and the
weighted average number of operating partnership units outstanding during
the period. See the reconciliation of shares and operating
partnership units on page 11.
|
-MORE-
CBL
Reports Second Quarter Results
Page
8
August 3,
2010
CBL
& Associates Properties, Inc.
Consolidated
Statements of Operations
(Unaudited;
in thousands, except per share amounts)
SUPPLEMENTAL
FFO INFORMATION
(in
thousands, except per share data)
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Lease
termination fees
|
$ | 1,617 | $ | 1,129 | $ | 2,148 | $ | 3,671 | ||||||||
|
Lease
termination fees per share
|
$ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.03 | ||||||||
|
Straight-line
rental income
|
$ | 1,446 | $ | 1,570 | $ | 2,762 | $ | 3,301 | ||||||||
|
Straight-line
rental income per share
|
$ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.03 | ||||||||
|
Gains
on outparcel sales
|
$ | 1,244 | $ | 154 | $ | 2,060 | $ | 579 | ||||||||
|
Gains
on outparcel sales per share
|
$ | 0.01 | $ | - | $ | 0.01 | $ | - | ||||||||
|
Amortization
of acquired above- and below-market leases
|
$ | 724 | $ | 1,532 | $ | 1,562 | $ | 3,080 | ||||||||
|
Amortization
of acquired above- and below-market leases per share
|
$ | - | $ | 0.01 | $ | 0.01 | $ | 0.02 | ||||||||
|
Amortization
of debt premiums
|
$ | 1,268 | $ | 1,707 | $ | 2,930 | $ | 3,742 | ||||||||
|
Amortization
of debt premiums per share
|
$ | 0.01 | $ | 0.01 | $ | 0.02 | $ | 0.03 | ||||||||
|
Income
tax benefit (provision)
|
$ | 1,911 | $ | (152 | ) | $ | 3,788 | $ | (755 | ) | ||||||
|
Income
tax benefit (provision) per share
|
$ | 0.01 | $ | - | $ | 0.02 | $ | (0.01 | ) | |||||||
|
Abandoned
projects expense
|
$ | 260 | $ | 67 | $ | 359 | $ | 143 | ||||||||
|
Abandoned
projects expense per share
|
$ | - | $ | - | $ | - | $ | - | ||||||||
|
Loss
on impairment of real estate
|
$ | (25,435 | ) | $ | - | $ | (25,435 | ) | $ | - | ||||||
|
Loss
on impairment of real estate per share
|
$ | (0.13 | ) | $ | - | $ | (0.13 | ) | $ | - | ||||||
|
Loss
on impairment of investment
|
$ | - | $ | - | $ | - | $ | (7,706 | ) | |||||||
|
Loss
on impairment of investment per share
|
$ | - | $ | - | $ | - | $ | (0.06 | ) | |||||||
-MORE-
CBL
Reports Second Quarter Results
Page
9
August 3,
2010
CBL
& Associates Properties, Inc.
Consolidated
Statements of Operations
(Unaudited;
in thousands, except per share amounts)
Same-Center
Net Operating Income
(Dollars
in thousands)
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Net
income attributable to the Company
|
$ | 1,116 | $ | 13,591 | $ | 18,072 | $ | 20,758 | ||||||||
|
Adjustments:
|
||||||||||||||||
|
Depreciation
and amortization
|
70,652 | 75,793 | 142,664 | 154,104 | ||||||||||||
|
Depreciation
and amortization from unconsolidated affiliates
|
8,486 | 7,555 | 15,371 | 15,064 | ||||||||||||
|
Noncontrolling
interests' share of depreciation and amortization
in other consolidated subsidiaries |
(311 | ) | (64 | ) | (456 | ) | (265 | ) | ||||||||
|
Interest
expense
|
73,341 | 72,842 | 146,801 | 144,727 | ||||||||||||
|
Interest
expense from unconsolidated affiliates
|
8,503 | 7,497 | 15,731 | 15,362 | ||||||||||||
|
Noncontrolling
interests' share of interest expense
in other consolidated subsidiaries |
(379 | ) | (189 | ) | (613 | ) | (462 | ) | ||||||||
|
Abandoned
projects expense
|
260 | 67 | 359 | 143 | ||||||||||||
|
(Gain)
loss on sales of real estate assets
|
(1,149 | ) | (72 | ) | (2,015 | ) | 67 | |||||||||
|
Gain
on sales of real estate assets of unconsolidated
affiliates
|
(160 | ) | (82 | ) | (110 | ) | (646 | ) | ||||||||
|
Loss
on impairment of investment
|
- | - | - | 7,706 | ||||||||||||
|
Loss
on impairment of real estate
|
25,435 | - | 25,435 | - | ||||||||||||
|
Income
tax (benefit) provision
|
(1,911 | ) | 152 | (3,788 | ) | 755 | ||||||||||
|
Net
income (loss) attributable to noncontrolling
interests in operating partnership |
(2,723 | ) | 5,109 | 1,387 | 6,415 | |||||||||||
|
Loss
on discontinued operations
|
- | 12 | - | 72 | ||||||||||||
|
Operating
partnership's share of total NOI
|
181,160 | 182,211 | 358,838 | 363,800 | ||||||||||||
|
General
and administrative expenses
|
10,321 | 10,893 | 21,395 | 22,372 | ||||||||||||
|
Management
fees and non-property level revenues
|
(6,826 | ) | (4,594 | ) | (12,143 | ) | (10,657 | ) | ||||||||
|
Operating
partnership's share of property NOI
|
184,655 | 188,510 | 368,090 | 375,515 | ||||||||||||
|
Non-comparable
NOI
|
(4,831 | ) | (3,130 | ) | (8,390 | ) | (6,454 | ) | ||||||||
|
Total
same-center NOI
|
$ | 179,824 | $ | 185,380 | $ | 359,700 | $ | 369,061 | ||||||||
|
Total
same-center NOI percentage change
|
-3.0 | % | -2.5 | % | ||||||||||||
|
Total
same-center NOI
|
$ | 179,824 | $ | 185,380 | $ | 359,700 | $ | 369,061 | ||||||||
|
Less
lease termination fees
|
(1,617 | ) | (1,141 | ) | (2,148 | ) | (3,614 | ) | ||||||||
|
Total
same-center NOI, excluding lease termination fees
|
$ | 178,207 | $ | 184,239 | $ | 357,552 | $ | 365,447 | ||||||||
|
Malls
|
$ | 160,884 | $ | 165,669 | $ | 323,189 | $ | 329,335 | ||||||||
|
Associated
centers
|
7,892 | 8,131 | 15,686 | 15,951 | ||||||||||||
|
Community
centers
|
4,414 | 4,449 | 8,529 | 8,726 | ||||||||||||
|
Office
and other
|
5,017 | 5,990 | 10,148 | 11,435 | ||||||||||||
|
Total
same-center NOI, excluding lease termination fees
|
$ | 178,207 | $ | 184,239 | $ | 357,552 | $ | 365,447 | ||||||||
|
Percentage
Change:
|
||||||||||||||||
|
Malls
|
-2.9 | % | -1.9 | % | ||||||||||||
|
Associated
centers
|
-2.9 | % | -1.7 | % | ||||||||||||
|
Community
centers
|
-0.8 | % | -2.3 | % | ||||||||||||
|
Office
and other
|
-16.2 | % | -11.3 | % | ||||||||||||
|
Total
same-center NOI, excluding lease termination fees
|
-3.3 | % | -2.2 | % | ||||||||||||
-MORE-
CBL
Reports Second Quarter Results
Page
10
August 3,
2010
CBL
& Associates Properties, Inc.
Consolidated
Statements of Operations
(Unaudited;
in thousands, except per share amounts)
Company's Share of Consolidated and Unconsolidated Debt
(Dollars
in thousands)
|
June
30, 2010
|
||||||||||||
|
Fixed
Rate
|
Variable
Rate
|
Total
|
||||||||||
|
Consolidated
debt
|
$ | 4,009,395 | $ | 1,446,472 | $ | 5,455,867 | ||||||
|
Noncontrolling
interests' share of consolidated debt
|
(24,850 | ) | (928 | ) | (25,778 | ) | ||||||
|
Company's
share of unconsolidated affiliates' debt
|
422,013 | 167,576 | 589,589 | |||||||||
|
Company's
share of consolidated and unconsolidated debt
|
$ | 4,406,558 | $ | 1,613,120 | $ | 6,019,678 | ||||||
|
Weighted
average interest rate
|
5.90 | % | 2.75 | % | 5.06 | % | ||||||
|
June
30, 2009
|
||||||||||||
|
Fixed
Rate
|
Variable
Rate
|
Total
|
||||||||||
|
Consolidated
debt
|
$ | 4,541,048 | $ | 1,147,554 | $ | 5,688,602 | ||||||
|
Noncontrolling
interests' share of consolidated debt
|
(23,424 | ) | (928 | ) | (24,352 | ) | ||||||
|
Company's
share of unconsolidated affiliates' debt
|
407,022 | 181,282 | 588,304 | |||||||||
|
Company's
share of consolidated and unconsolidated debt
|
$ | 4,924,646 | $ | 1,327,908 | $ | 6,252,554 | ||||||
|
Weighted
average interest rate
|
5.98 | % | 1.68 | % | 5.06 | % | ||||||
Debt-To-Total-Market Capitalization
Ratio as of June 30,
2010
(In
thousands, except stock price)
|
Shares
Outstanding
|
Stock Price (1)
|
Value
|
||||||||||
|
Common
stock and operating partnership units
|
190,024 | $ | 12.44 | $ | 2,363,899 | |||||||
|
7.75%
Series C Cumulative Redeemable Preferred Stock
|
460 | 250.00 | 115,000 | |||||||||
|
7.375%
Series D Cumulative Redeemable Preferred Stock
|
1,330 | 250.00 | 332,500 | |||||||||
|
Total
market equity
|
2,811,399 | |||||||||||
|
Company's
share of total debt
|
6,019,678 | |||||||||||
|
Total
market capitalization
|
$ | 8,831,077 | ||||||||||
|
Debt-to-total-market
capitalization ratio
|
68.2 | % | ||||||||||
|
(1)
|
Stock
price for common stock and operating partnership units equals the closing
price of the common stock on June 30, 2010. The stock price for
the preferred stock represents the liquidation preference of each
respective series of preferred
stock.
|
|||||||
Reconciliation
of Shares and Operating Partnership Units Outstanding
(In
thousands)
|
Three
Months Ended June 30, |
Six
Months Ended June 30, |
|||||||||||||||
|
2010:
|
Basic
|
Diluted
|
Basic
|
Diluted
|
||||||||||||
|
Weighted
average shares - EPS
|
138,068 | 138,112 | 138,018 | 138,059 | ||||||||||||
|
Weighted
average operating partnership units
|
51,949 | 51,949 | 51,949 | 51,949 | ||||||||||||
|
Weighted
average shares- FFO
|
190,017 | 190,061 | 189,967 | 190,008 | ||||||||||||
|
2009:
|
||||||||||||||||
|
Weighted
average shares - EPS
|
82,187 | 82,226 | 74,341 | 74,378 | ||||||||||||
|
Weighted
average operating partnership units
|
51,743 | 51,743 | 51,180 | 51,180 | ||||||||||||
|
Weighted
average shares- FFO
|
133,930 | 133,969 | 125,521 | 125,558 | ||||||||||||
Dividend
Payout Ratio
|
Three
Months Ended June 30, |
Six
Months Ended June 30, |
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
|
Weighted
average dividend per share
|
$ | 0.22690 | $ | 0.15385 | $ | 0.45796 | $ | 0.53291 | ||||||||
|
FFO
per diluted, fully converted share
|
$ | 0.36 | $ | 0.72 | $ | 0.85 | $ | 1.47 | ||||||||
|
Dividend
payout ratio
|
63.0 | % | 21.4 | % | 53.9 | % | 36.3 | % | ||||||||
-MORE-
CBL
Reports Second Quarter Results
Page
11
August 3,
2010
CBL
& Associates Properties, Inc.
Consolidated
Statements of Operations
(Unaudited;
in thousands, except per share amounts)
Consolidated
Balance Sheets
(Unaudited, in
thousands except share data)
|
ASSETS
|
June 30,
2010
|
December 31,
2009
|
||||||
|
Real
estate assets:
|
||||||||
|
Land
|
$ | 943,492 | $ | 946,750 | ||||
|
Buildings
and improvements
|
7,557,570 | 7,569,015 | ||||||
| 8,501,062 | 8,515,765 | |||||||
|
Accumulated
depreciation
|
(1,612,950 | ) | (1,505,840 | ) | ||||
| 6,888,112 | 7,009,925 | |||||||
|
Developments
in progress
|
99,748 | 85,110 | ||||||
|
Net
investment in real estate assets
|
6,987,860 | 7,095,035 | ||||||
|
Cash
and cash equivalents
|
60,649 | 48,062 | ||||||
|
Receivables:
|
||||||||
|
Tenant,
net of allowance
|
69,268 | 73,170 | ||||||
|
Other
|
13,240 | 8,162 | ||||||
|
Mortgage
and other notes receivable
|
38,025 | 38,208 | ||||||
|
Investments
in unconsolidated affiliates
|
214,682 | 186,523 | ||||||
|
Intangible
lease assets and other assets
|
273,253 | 279,950 | ||||||
| $ | 7,656,977 | $ | 7,729,110 | |||||
|
LIABILITIES,
REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
|
||||||||
|
Mortgage
and other indebtedness
|
$ | 5,455,867 | $ | 5,616,139 | ||||
|
Accounts
payable and accrued liabilities
|
290,347 | 248,333 | ||||||
|
Total
liabilities
|
5,746,214 | 5,864,472 | ||||||
|
Commitments
and contingencies
|
||||||||
|
Redeemable
noncontrolling interests:
|
||||||||
|
Redeemable
noncontrolling partnership interests
|
25,933 | 22,689 | ||||||
|
Redeemable
noncontrolling preferred joint venture interest
|
421,562 | 421,570 | ||||||
|
Total
redeemable noncontrolling interests
|
447,495 | 444,259 | ||||||
|
Shareholders'
equity:
|
||||||||
|
Preferred
Stock, $.01 par value, 15,000,000 shares authorized:
|
||||||||
|
7.75%
Series C Cumulative Redeemable Preferred Stock,
460,000
shares outstanding
|
5 | 5 | ||||||
|
7.375%
Series D Cumulative Redeemable Preferred Stock,
1,330,000
and 700,000 shares outstanding in 2010 and
2009,
respectively
|
13 | 7 | ||||||
|
Common
Stock, $.01 par value, 350,000,000 shares authorized,
138,075,609
and 137,888,408 issued and outstanding in 2010
and
2009, respectively
|
1,381 | 1,379 | ||||||
|
Additional
paid-in capital
|
1,508,116 | 1,399,654 | ||||||
|
Accumulated
other comprehensive income
|
4,310 | 491 | ||||||
|
Accumulated
deficit
|
(335,173 | ) | (283,640 | ) | ||||
|
Total
shareholders' equity
|
1,178,652 | 1,117,896 | ||||||
|
Noncontrolling
interests
|
284,616 | 302,483 | ||||||
|
Total
equity
|
1,463,268 | 1,420,379 | ||||||
| $ | 7,656,977 | $ | 7,729,110 | |||||
-END-