Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CBL & ASSOCIATES PROPERTIES INC | form8k.htm |
| EX-99.2 - EXHIBIT 99.2 - CBL & ASSOCIATES PROPERTIES INC | exhibit992.htm |
| EX-99.3 - EXHIBIT 99.3 - 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 2012 RESULTS
• | Full-year 2012 FFO per share guidance increased. |
• | FFO per diluted share increased 6.0% to $0.53 for the second quarter 2012, compared with the prior-year period. |
• | Same-store sales increased 4.0% to $341 per square foot for mall tenants 10,000 square feet or less for stabilized malls for the rolling twelve months ended June 30, 2012. |
• | Portfolio occupancy at June 30, 2012, increased 170 basis points to 92.3%, from the prior-year period. |
• | Same-center NOI, excluding lease termination fees, increased 2.7% in the second quarter 2012, over the prior-year period. |
• | Average gross rent for stabilized mall leases signed in the second quarter 2012 increased 10.2% over the prior gross rent per square foot. |
CHATTANOOGA, Tenn. (July 26, 2012) - CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the second quarter ended June 30, 2012. 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.
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2,012 | 2,011 | 2,012 | 2011(1) | ||||
Funds from Operations (“FFO”) per diluted share | $0.53 | $0.50 | $1.02 | $0.97 | |||
(1) | FFO for the six months ended June 30, 2011 excludes the gain on extinguishment of debt of $0.17 per share recorded in the first quarter 2011. |
“This was a strong quarter for CBL in all respects, and we exceeded expectations in all of our primary metrics,” said Stephen Lebovitz, CBL's president and chief executive officer. “Occupancy improved year-over-year and, sequentially, rental spreads were up nicely on both new and renewal leasing and sales in the mall portfolio continued their positive trend. We enter the second half of the year with a more positive outlook. The NOI and FFO growth we generated in the quarter has enabled us to raise our full year 2012 guidance, while the significant refinancing activity has addressed almost all of our 2012 maturities and provided significant excess loan proceeds.
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CBL Reports Second Quarter 2012 Results
Page 2
July 26, 2012
“We successfully sourced attractive growth opportunities in the quarter that complement our outlet center development program. The acquisition of Dakota Square Mall and the long-term contract to manage six malls for Starwood will enable us to leverage our leasing and management capabilities. With nearly full availability on our credit facilities and potential non-core disposition activity planned, we are well-positioned to pursue additional growth opportunities and fund capital needs for the foreseeable future.”
FFO allocable to common shareholders for the second quarter of 2012 was $79,950,000, or $0.53 per diluted share, compared with $73,763,000, or $0.50 per diluted share, for the second quarter of 2011. FFO of the operating partnership for the second quarter of 2012 was $100,782,000, compared with $94,653,000, for the second quarter 2011.
Net income attributable to common shareholders for the second quarter of 2012 was $18,797,000, or $0.12 per diluted share, compared with net income of $9,782,000, or $0.07 per diluted share for the second quarter of 2011.
HIGHLIGHTS
▪ | Portfolio same-center net operating income (“NOI”), excluding lease termination fees, for the quarter ended June 30, 2012, increased 2.7% compared with an increase of 1.4% for the prior-year period. Same-center NOI, excluding lease terminations fees, for the six months ended June 30, 2012, increased 1.7% compared with an increase of 0.9% for the prior-year period. |
▪ | Average gross rent on stabilized mall leases signed during the second quarter of 2012 for tenants 10,000 square feet or less increased 10.2% over the prior gross rent per square foot. |
▪ | Same-store sales per square foot for mall tenants 10,000 square feet or less for stabilized malls for the rolling twelve months ended June 30, 2012, increased 4.0% to $341 per square foot compared with $328 per square foot in the prior year period. Same-store sales per square foot for mall tenants 10,000 square feet or less for stabilized malls year-to-date through June 30, 2012, increased 4.3%. |
▪ | Consolidated and unconsolidated variable rate debt of $933,993,000, as of June 30, 2012, represented 9.6% of the total market capitalization for the Company, compared with 13.0% in the prior-year period, and 17.2% of the Company's share of total consolidated and unconsolidated debt, compared with 22.1% in the prior-year period. |
PORTFOLIO OCCUPANCY
June 30, | |||
2012 | 2011 | ||
Portfolio occupancy | 92.3% | 90.6% | |
Mall portfolio | 92.4% | 90.4% | |
Stabilized malls | 92.3% | 90.5% | |
Non-Stabilized malls (1) | 100.0% | 85.2% | |
Associated centers | 93.4% | 91.2% | |
Community centers | 91.1% | 91.9% | |
(1) | The Non-stabilized mall category included The Outlet Shoppes at Oklahoma City for 2012 and Pearland Town Center for 2011. |
THIRD PARTY MANAGEMENT
During the quarter, CBL was awarded a two-year contract to provide management services for six malls acquired by Starwood Capital Group. CBL will provide day-to-day onsite property management and accounting services for the six malls located in California, Florida, Illinois, Nebraska, and Ohio. CBL will also provide marketing, specialty retail and branding services which includes business opportunities for cart, kiosk and temporary in-line space as well as targeted advertising and sponsorship.
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CBL Reports Second Quarter 2012 Results
Page 3
July 26, 2012
ACQUISITIONS
In May, CBL closed on the acquisition of Dakota Square Mall in Minot, ND, from The Lightstone Group. The mall was acquired for a total consideration of $91.475 million, including the assumption of a $59.0 million loan that matures in November 2016 and bears a fixed interest rate of 6.23%.
In April, CBL acquired interests in The Outlet Shoppes at El Paso in El Paso, TX, and The Outlet Shoppes at Gettysburg in Gettysburg, PA, from Horizon Group Properties and its affiliates. CBL acquired a 75% interest in The Outlet Shoppes at El Paso and a 50% interest in The Outlet Shoppes at Gettysburg, for a total investment of $108.7 million, including the assumption of $70.5 million of debt.
DISPOSITIONS
In July, CBL closed on the sale of Massard Crossing, a community center in Fort Smith, AR. The property was sold for $7.8 million.
FINANCING aCTIVITY
Year-to-date, CBL has completed more than $456.2 million in mortgage financings, generating excess proceeds of approximately $140.0 million. The eight non-recourse mortgage loans were individually secured by Arbor Place in Atlanta (Douglasville), GA; Fashion Square in Saginaw, MI; Jefferson Mall in Louisville, KY; Northwoods Mall in Charleston, SC; Southpark Mall in Richmond (Colonial Heights), VA; Westgate Mall in Spartanburg, SC; York Town Center in York, PA and CBL Centers I and II in Chattanooga, TN.
During the quarter, CBL completed an extension of its $105.0 million secured line of credit to June 2015, with one 12-month extension available at the Company's option. All other material terms of the facility were unchanged.
OUTLOOK AND GUIDANCE
Based on second quarter results and today's outlook, the Company is increasing 2012 FFO to a range of $2.00 - $2.10 per share from the previously issued range of $1.95 - $2.03 per share. The Company is also increasing its assumption for same-center NOI growth to a range of 1.0% - 2.0%, excluding applicable lease termination fees, compared with the previously issued range of 0.0% - 1.0%. The full year guidance assumes $3.0 million to $5.0 million of outparcel sales and a 50 - 100 basis point increase in year-end occupancy as compared with the prior year. 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 | $ | 0.42 | $ | 0.52 | |||
Adjust to fully converted shares from common shares | (0.09 | ) | (0.11 | ) | |||
Expected earnings per diluted, fully converted common share | 0.33 | 0.41 | |||||
Add: depreciation and amortization | 1.58 | 1.58 | |||||
Add: noncontrolling interest in earnings of Operating Partnership | 0.09 | 0.11 | |||||
Expected FFO per diluted, fully converted common share | $ | 2.00 | $ | 2.10 | |||
INVESTOR CONFERENCE CALL AND SIMULCAST
CBL & Associates Properties, Inc. will conduct a conference call at 11:00 a.m. ET on Friday, July 27, 2012, to discuss its second quarter results. The numbers to call for this interactive teleconference are (800) 734-8592 or (212) 231-2900. A seven-day replay of the conference call will be available by dialing (402) 977-9140 and entering the passcode 21544168. 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.
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CBL Reports Second Quarter 2012 Results
Page 4
July 26, 2012
The Company will also provide an online web simulcast and rebroadcast of its 2012 second quarter earnings release conference call. The live broadcast of the quarterly conference call will be available online at cblproperties.com on Friday, July 27, 2012, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue through August 3, 2012.
CBL is one of the largest and most active owners and developers of malls and shopping centers in the United States. CBL owns, holds interest in or manages 164 properties, including 95 regional malls/open-air centers. The properties are located in 28 states and total 93.4 million square feet including 9.4 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 www.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 (loss) 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. In October 2011, NAREIT clarified that FFO should exclude the impact of losses on impairment of depreciable properties. The Company has calculated FFO for all periods presented in accordance with this clarification. 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 (loss) attributable to its common shareholders.
In the reconciliation of net income attributable to the Company's common shareholders to FFO allocable to its common shareholders, located in this earnings release, the Company makes an adjustment to add back noncontrolling interest in income (loss) 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 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 (loss) for purposes of evaluating the Company's operating performance or to cash flow as a measure of liquidity.
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CBL Reports Second Quarter 2012 Results
Page 5
July 26, 2012
During 2011, the Company recorded a gain on extinguishment of debt from discontinued operations. Considering the significance and nature of this item, 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 measures excluding this item.
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, and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" included therein, for a discussion of such risks and uncertainties.
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CBL Reports Second Quarter Results
Page 6
July 26, 2012
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, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
REVENUES: | |||||||||||||||
Minimum rents | $ | 167,609 | $ | 168,288 | $ | 328,397 | $ | 339,202 | |||||||
Percentage rents | 1,756 | 2,062 | 5,222 | 5,802 | |||||||||||
Other rents | 4,683 | 4,582 | 9,996 | 9,590 | |||||||||||
Tenant reimbursements | 71,732 | 77,022 | 142,219 | 153,832 | |||||||||||
Management, development and leasing fees | 1,966 | 1,568 | 4,435 | 2,905 | |||||||||||
Other | 7,852 | 8,597 | 16,001 | 17,957 | |||||||||||
Total revenues | 255,598 | 262,119 | 506,270 | 529,288 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Property operating | 36,562 | 35,984 | 74,923 | 76,143 | |||||||||||
Depreciation and amortization | 68,126 | 71,839 | 131,283 | 139,538 | |||||||||||
Real estate taxes | 23,756 | 25,124 | 46,602 | 49,450 | |||||||||||
Maintenance and repairs | 13,419 | 14,044 | 26,575 | 30,052 | |||||||||||
General and administrative | 11,993 | 11,241 | 25,793 | 23,041 | |||||||||||
Other | 6,559 | 7,046 | 13,317 | 15,349 | |||||||||||
Total operating expenses | 160,415 | 165,278 | 318,493 | 333,573 | |||||||||||
Income from operations | 95,183 | 96,841 | 187,777 | 195,715 | |||||||||||
Interest and other income | 1,298 | 612 | 2,373 | 1,157 | |||||||||||
Interest expense | (61,400 | ) | (70,914 | ) | (121,460 | ) | (139,127 | ) | |||||||
Gain on extinguishment of debt | — | — | — | 581 | |||||||||||
Gain (loss) on sales of real estate assets | 2,543 | (97 | ) | 3,130 | 712 | ||||||||||
Equity in earnings of unconsolidated affiliates | 2,073 | 1,455 | 3,339 | 3,233 | |||||||||||
Income tax (provision) benefit | (267 | ) | 4,653 | (39 | ) | 6,423 | |||||||||
Income from continuing operations | 39,430 | 32,550 | 75,120 | 68,694 | |||||||||||
Operating income (loss) of discontinued operations | (21 | ) | (3,156 | ) | (71 | ) | 24,594 | ||||||||
Gain (loss) on discontinued operations | (16 | ) | 138 | 895 | 152 | ||||||||||
Net income | 39,393 | 29,532 | 75,944 | 93,440 | |||||||||||
Net income attributable to noncontrolling interests in: | |||||||||||||||
Operating partnership | (5,197 | ) | (2,752 | ) | (9,559 | ) | (13,203 | ) | |||||||
Other consolidated subsidiaries | (4,805 | ) | (6,404 | ) | (10,945 | ) | (12,542 | ) | |||||||
Net income attributable to the Company | 29,391 | 20,376 | 55,440 | 67,695 | |||||||||||
Preferred dividends | (10,594 | ) | (10,594 | ) | (21,188 | ) | (21,188 | ) | |||||||
Net income attributable to common shareholders | $ | 18,797 | $ | 9,782 | $ | 34,252 | $ | 46,507 | |||||||
Basic per share data attributable to common shareholders: | |||||||||||||||
Income from continuing operations, net of preferred dividends | $ | 0.12 | $ | 0.08 | $ | 0.22 | $ | 0.18 | |||||||
Discontinued operations | — | (0.01 | ) | 0.01 | 0.13 | ||||||||||
Net income attributable to common shareholders | $ | 0.12 | $ | 0.07 | $ | 0.23 | $ | 0.31 | |||||||
Weighted average common shares outstanding | 150,913 | 148,356 | 149,704 | 148,214 | |||||||||||
Diluted earnings per share data attributable to common shareholders: | |||||||||||||||
Income from continuing operations, net of preferred dividends | $ | 0.12 | $ | 0.08 | $ | 0.22 | $ | 0.18 | |||||||
Discontinued operations | — | (0.01 | ) | 0.01 | 0.13 | ||||||||||
Net income attributable to common shareholders | $ | 0.12 | $ | 0.07 | $ | 0.23 | $ | 0.31 | |||||||
Weighted average common and potential dilutive common shares outstanding | 150,954 | 148,398 | 149,746 | 148,262 | |||||||||||
Amounts attributable to common shareholders: | |||||||||||||||
Income from continuing operations, net of preferred dividends | $ | 18,826 | $ | 12,134 | $ | 33,603 | $ | 27,233 | |||||||
Discontinued operations | (29 | ) | (2,352 | ) | 649 | 19,274 | |||||||||
Net income attributable to common shareholders | $ | 18,797 | $ | 9,782 | $ | 34,252 | $ | 46,507 | |||||||
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CBL Reports Second Quarter Results
Page 7
July 26, 2012
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, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income attributable to common shareholders | $ | 18,797 | $ | 9,782 | $ | 34,252 | $ | 46,507 | |||||||
Noncontrolling interest in income of operating partnership | 5,197 | 2,752 | 9,559 | 13,203 | |||||||||||
Depreciation and amortization expense of: | |||||||||||||||
Consolidated properties | 68,126 | 71,839 | 131,283 | 139,538 | |||||||||||
Unconsolidated affiliates | 11,008 | 8,597 | 22,119 | 14,112 | |||||||||||
Discontinued operations | — | 272 | 116 | 640 | |||||||||||
Non-real estate assets | (471 | ) | (589 | ) | (888 | ) | (1,227 | ) | |||||||
Noncontrolling interests' share of depreciation and amortization | (1,883 | ) | (153 | ) | (2,329 | ) | (302 | ) | |||||||
Loss on impairment of real estate, net of tax benefit | — | 2,256 | 196 | 5,002 | |||||||||||
Gain on depreciable property | — | — | (493 | ) | — | ||||||||||
(Gain) loss on discontinued operations, net of tax provision | 8 | (103 | ) | (557 | ) | (117 | ) | ||||||||
Funds from operations of the operating partnership | 100,782 | 94,653 | 193,258 | 217,356 | |||||||||||
Gain on extinguishment of debt | — | — | — | (32,015 | ) | ||||||||||
Funds from operations of the operating partnership, as adjusted | $ | 100,782 | $ | 94,653 | $ | 193,258 | $ | 185,341 | |||||||
Funds from operations per diluted share | $ | 0.53 | $ | 0.50 | $ | 1.02 | $ | 1.14 | |||||||
Gain on extinguishment of debt(1) | — | — | — | (0.17 | ) | ||||||||||
Funds from operations, as adjusted, per diluted share | $ | 0.53 | $ | 0.50 | $ | 1.02 | $ | 0.97 | |||||||
Weighted average common and potential dilutive common shares outstanding with operating partnership units fully converted | 190,277 | 190,415 | 190,218 | 190,338 | |||||||||||
Reconciliation of FFO of the operating partnership to FFO allocable to common shareholders: | |||||||||||||||
Funds from operations of the operating partnership | $ | 100,782 | $ | 94,653 | $ | 193,258 | $ | 217,356 | |||||||
Percentage allocable to common shareholders (2) | 79.33 | % | 77.93 | % | 78.72 | % | 77.89 | % | |||||||
Funds from operations allocable to common shareholders | $ | 79,950 | $ | 73,763 | $ | 152,133 | $ | 169,299 | |||||||
Funds from operations of the operating partnership, as adjusted | $ | 100,782 | $ | 94,653 | $ | 193,258 | $ | 185,341 | |||||||
Percentage allocable to common shareholders (2) | 79.33 | % | 77.93 | % | 78.72 | % | 77.89 | % | |||||||
Funds from operations allocable to Company shareholders, as adjusted | $ | 79,950 | $ | 73,763 | $ | 152,133 | $ | 144,362 | |||||||
(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 outstanding on page 4. |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
SUPPLEMENTAL FFO INFORMATION: | |||||||||||||||
Lease termination fees | $ | 1,408 | $ | 610 | $ | 2,158 | $ | 2,239 | |||||||
Lease termination fees per share | $ | 0.01 | $ | — | $ | 0.01 | $ | 0.01 | |||||||
Straight-line rental income | $ | 1,812 | $ | 557 | $ | 2,222 | $ | 1,685 | |||||||
Straight-line rental income per share | $ | 0.01 | $ | — | $ | 0.01 | $ | 0.01 | |||||||
Gains on outparcel sales | $ | 2,754 | $ | 1,184 | $ | 2,853 | $ | 1,993 | |||||||
Gains on outparcel sales per share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||
Net amortization of acquired above- and below-market leases | $ | 638 | $ | 692 | $ | 780 | $ | 1,206 | |||||||
Net amortization of acquired above- and below-market leases per share | $ | — | $ | — | $ | — | $ | 0.01 | |||||||
Net amortization of debt premiums (discounts) | $ | 603 | $ | 604 | $ | 1,055 | $ | 1,357 | |||||||
Net amortization of debt premiums (discounts) per share | $ | — | $ | — | $ | 0.01 | $ | 0.01 | |||||||
Income tax (provision) benefit | $ | (267 | ) | $ | 4,653 | $ | (39 | ) | $ | 6,423 | |||||
Income tax (provision) benefit per share | $ | — | $ | 0.02 | $ | — | $ | 0.03 | |||||||
Loss on impairment of real estate from discontinued operations | $ | — | $ | (3,950 | ) | $ | (293 | ) | $ | (6,696 | ) | ||||
Loss on impairment of real estate from discontinued operations per share | $ | — | $ | (0.02 | ) | $ | — | $ | (0.04 | ) | |||||
Gain on extinguishment of debt from discontinued operations | $ | — | $ | — | $ | — | $ | 31,434 | |||||||
Gain on extinguishment of debt from discontinued operations per share | $ | — | $ | — | $ | — | $ | 0.17 | |||||||
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CBL Reports Second Quarter Results
Page 8
July 26, 2012
Same-Center Net Operating Income
(Dollars in thousands)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income attributable to the Company | $ | 29,391 | $ | 20,376 | $ | 55,440 | $ | 67,695 | |||||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 68,126 | 71,839 | 131,283 | 139,538 | |||||||||||
Depreciation and amortization from unconsolidated affiliates | 11,008 | 8,597 | 22,119 | 14,112 | |||||||||||
Depreciation and amortization from discontinued operations | — | 272 | 116 | 640 | |||||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (1,883 | ) | (153 | ) | (2,329 | ) | (302 | ) | |||||||
Interest expense | 61,400 | 70,914 | 121,460 | 139,127 | |||||||||||
Interest expense from unconsolidated affiliates | 11,093 | 8,658 | 22,296 | 14,460 | |||||||||||
Interest expense from discontinued operations | 1 | 1 | 2 | 179 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,002 | ) | (256 | ) | (1,462 | ) | (500 | ) | |||||||
Abandoned projects expense | 1 | 51 | (123 | ) | 51 | ||||||||||
(Gain) loss on sales of real estate assets | (2,543 | ) | 97 | (3,130 | ) | (712 | ) | ||||||||
Gain on sales of real estate assets of unconsolidated affiliates | (220 | ) | (1,246 | ) | (215 | ) | (1,246 | ) | |||||||
Gain on extinguishment of debt | — | — | — | (581 | ) | ||||||||||
Gain on extinguishment of debt from discontinued operations | — | — | — | (31,434 | ) | ||||||||||
Writedown of mortgage notes receivable | — | — | — | 1,500 | |||||||||||
Loss on impairment of real estate from discontinued operations | — | 3,950 | 293 | 6,696 | |||||||||||
Income tax provision (benefit) | 267 | (4,653 | ) | 39 | (6,423 | ) | |||||||||
Net income attributable to noncontrolling interest in earnings of operating partnership | 5,197 | 2,752 | 9,559 | 13,203 | |||||||||||
(Gain) loss on discontinued operations | 16 | (138 | ) | (895 | ) | (152 | ) | ||||||||
Operating partnership's share of total NOI | 180,852 | 181,061 | 354,453 | 355,851 | |||||||||||
General and administrative expenses | 11,993 | 11,241 | 25,793 | 23,041 | |||||||||||
Management fees and non-property level revenues | (6,523 | ) | (7,857 | ) | (13,285 | ) | (10,344 | ) | |||||||
Operating partnership's share of property NOI | 186,322 | 184,445 | 366,961 | 368,548 | |||||||||||
Non-comparable NOI | (7,957 | ) | (11,385 | ) | (13,220 | ) | (20,775 | ) | |||||||
Total same-center NOI | $ | 178,365 | $ | 173,060 | $ | 353,741 | $ | 347,773 | |||||||
Total same-center NOI percentage change | 3.1 | % | 1.7 | % | |||||||||||
Total same-center NOI | $ | 178,365 | $ | 173,060 | $ | 353,741 | $ | 347,773 | |||||||
Less lease termination fees | (1,186 | ) | (500 | ) | (1,942 | ) | (2,014 | ) | |||||||
Total same-center NOI, excluding lease termination fees | $ | 177,179 | $ | 172,560 | $ | 351,799 | $ | 345,759 | |||||||
Malls | $ | 159,328 | $ | 154,768 | $ | 315,203 | $ | 309,284 | |||||||
Associated centers | 8,194 | 7,742 | 16,287 | 15,589 | |||||||||||
Community centers | 4,991 | 4,749 | 10,123 | 9,909 | |||||||||||
Offices and other | 4,666 | 5,301 | 10,186 | 10,977 | |||||||||||
Total same-center NOI, excluding lease termination fees | $ | 177,179 | $ | 172,560 | $ | 351,799 | $ | 345,759 | |||||||
Percentage Change: | |||||||||||||||
Malls | 2.9 | % | 1.9 | % | |||||||||||
Associated centers | 5.8 | % | 4.5 | % | |||||||||||
Community centers | 5.1 | % | 2.2 | % | |||||||||||
Offices and other | (12.0 | )% | (7.2 | )% | |||||||||||
Total same-center NOI, excluding lease termination fees | 2.7 | % | 1.7 | % | |||||||||||
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CBL Reports Second Quarter Results
Page 9
July 26, 2012
Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
As of June 30, 2012 | ||||||||||||
Fixed Rate | Variable Rate | Total | ||||||||||
Consolidated debt | $ | 3,886,105 | $ | 807,103 | $ | 4,693,208 | ||||||
Noncontrolling interests' share of consolidated debt | (69,684 | ) | — | (69,684 | ) | |||||||
Company's share of unconsolidated affiliates' debt | 673,154 | 126,890 | 800,044 | |||||||||
Company's share of consolidated and unconsolidated debt | $ | 4,489,575 | $ | 933,993 | $ | 5,423,568 | ||||||
Weighted average interest rate | 5.47 | % | 2.53 | % | 4.96 | % | ||||||
As of June 30, 2011 | ||||||||||||
Fixed Rate | Variable Rate | Total | ||||||||||
Consolidated debt | $ | 4,079,044 | $ | 1,115,053 | $ | 5,194,097 | ||||||
Noncontrolling interests' share of consolidated debt | (15,554 | ) | (928 | ) | (16,482 | ) | ||||||
Company's share of unconsolidated affiliates' debt | 395,222 | 150,203 | 545,425 | |||||||||
Company's share of consolidated and unconsolidated debt | $ | 4,458,712 | $ | 1,264,328 | $ | 5,723,040 | ||||||
Weighted average interest rate | 5.64 | % | 2.59 | % | 4.97 | % | ||||||
Debt-To-Total-Market Capitalization Ratio as of June 30, 2012
(In thousands, except stock price)
Shares Outstanding | Stock Price (1) | Value | |||||||
Common stock and operating partnership units | 190,194 | $19.54 | $ | 3,716,391 | |||||
7.75% Series C Cumulative Redeemable Preferred Stock | 460 | 250.00 | 115,000 | ||||||
7.375% Series D Cumulative Redeemable Preferred Stock | 1,815 | 250.00 | 453,750 | ||||||
Total market equity | 4,285,141 | ||||||||
Company's share of total debt | 5,423,568 | ||||||||
Total market capitalization | $ | 9,708,709 | |||||||
Debt-to-total-market capitalization ratio | 55.9 | % | |||||||
(1) Stock price for common stock and operating partnership units equals the closing price of the common stock on June 29, 2012. The stock prices for the preferred stocks represent the liquidation preference of each respective series. | |||||||||
Reconciliation of Shares and Operating Partnership Units Outstanding
(In thousands)
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2012: | Basic | Diluted | Basic | Diluted | |||||||
Weighted average shares - EPS | 150,913 | 150,954 | 149,704 | 149,746 | |||||||
Weighted average operating partnership units | 39,323 | 39,323 | 40,472 | 40,472 | |||||||
Weighted average shares- FFO | 190,236 | 190,277 | 190,176 | 190,218 | |||||||
2011: | |||||||||||
Weighted average shares - EPS | 148,356 | 148,398 | 148,214 | 148,262 | |||||||
Weighted average operating partnership units | 42,017 | 42,017 | 42,076 | 42,076 | |||||||
Weighted average shares- FFO | 190,373 | 190,415 | 190,290 | 190,338 | |||||||
Dividend Payout Ratio
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Weighted average cash dividend per share | $ | 0.22896 | $ | 0.21913 | $ | 0.45792 | $ | 0.44947 | |||||||
FFO per diluted, fully converted share, as adjusted | $ | 0.53 | $ | 0.50 | $ | 1.02 | $ | 0.97 | |||||||
Dividend payout ratio | 43.2 | % | 43.8 | % | 44.9 | % | 46.3 | % | |||||||
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CBL Reports Second Quarter Results
Page 10
July 26, 2012
Consolidated Balance Sheets
(Unaudited; in thousands, except share data)
June 30, 2012 | December 31, 2011 | ||||||
ASSETS | |||||||
Real estate assets: | |||||||
Land | $ | 888,084 | $ | 851,303 | |||
Buildings and improvements | 7,020,394 | 6,777,776 | |||||
7,908,478 | 7,629,079 | ||||||
Accumulated depreciation | (1,873,310 | ) | (1,762,149 | ) | |||
6,035,168 | 5,866,930 | ||||||
Held for sale | — | 14,033 | |||||
Developments in progress | 139,500 | 124,707 | |||||
Net investment in real estate assets | 6,174,668 | 6,005,670 | |||||
Cash and cash equivalents | 71,537 | 56,092 | |||||
Receivables: | |||||||
Tenant, net of allowance for doubtful accounts of $2,051 and $1,760 in 2012 and 2011, respectively | 71,520 | 74,160 | |||||
Other, net of allowance for doubtful accounts of $1,248 and $1,400 in 2012 and 2011, respectively | 8,156 | 11,592 | |||||
Mortgage and other notes receivable | 25,442 | 34,239 | |||||
Investments in unconsolidated affiliates | 304,663 | 304,710 | |||||
Intangible lease assets and other assets | 257,625 | 232,965 | |||||
$ | 6,913,611 | $ | 6,719,428 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Mortgage and other indebtedness | $ | 4,693,208 | $ | 4,489,355 | |||
Accounts payable and accrued liabilities | 323,470 | 303,577 | |||||
Total liabilities | 5,016,678 | 4,792,932 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests: | |||||||
Redeemable noncontrolling partnership interests | 38,218 | 32,271 | |||||
Redeemable noncontrolling preferred joint venture interest | 423,777 | 423,834 | |||||
Total redeemable noncontrolling interests | 461,995 | 456,105 | |||||
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, 1,815,000 shares outstanding | 18 | 18 | |||||
Common stock, $.01 par value, 350,000,000 shares authorized, 158,560,145 and 148,364,037 issued and outstanding in 2012 and 2011, respectively | 1,586 | 1,484 | |||||
Additional paid-in capital | 1,697,943 | 1,657,927 | |||||
Accumulated other comprehensive income | 4,146 | 3,425 | |||||
Dividends in excess of cumulative earnings | (432,908 | ) | (399,581 | ) | |||
Total shareholders' equity | 1,270,790 | 1,263,278 | |||||
Noncontrolling interests | 164,148 | 207,113 | |||||
Total equity | 1,434,938 | 1,470,391 | |||||
$ | 6,913,611 | $ | 6,719,428 | ||||
-END-