CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE:CBL):
-- FFO per share was $0.80 and $3.22 in the fourth quarter and year ended
December 31, 2008, respectively.
-- Portfolio occupancy was 92.3% as of December 31, 2008 compared with
93.2% as of December 31, 2007.
-- Same Center NOI declined 1.5% for the year ended December 31, 2008.
-- The Company entered into more than $1.0 billion of new financings and
loan extensions in the year ended December 31, 2008.
CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the
fourth quarter and year ended December 31, 2008. 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
fourth quarter ended December 31, 2008 was $52,774,000 or $0.80 per
diluted share, compared with $54,519,000, or $0.83 per diluted share for
the fourth quarter ended December 31, 2007. FFO allocable to common
shareholders for the year ended December 31, 2008 was $212,933,000, or
$3.22 per diluted share, compared with $203,613,000, or $3.10 per
diluted share, for the year ended December 31, 2007, representing an
increase of 3.9% on a per diluted share basis. FFO allocable to common
shareholders for the fourth quarter and year ended December 31, 2008 was
impacted by an increase in abandoned projects expense of $8,146,000 and
$10,135,000, respectively, related to the write-off of predevelopment
costs for projects the Company is no longer pursuing. The write-offs
were related to projects in various stages of pre-development, but did
not impact any projects that are currently under construction.
FFO of the operating partnership for the fourth quarter ended December
31, 2008, was $93,207,000, compared with $96,614,000 for the fourth
quarter ended December 31, 2007. FFO of the operating partnership for
the year ended December 31, 2008, was $376,273,000, compared with
$361,528,000 for the year ended December 31, 2007.
Net loss available to common shareholders for the fourth quarter ended
December 31, 2008, was ($10,055,000), or ($0.15) per diluted share,
compared with net income of $13,418,000, or $0.20 per diluted share for
the prior-year period. Net income available to common shareholders for
the year ended December 31, 2008, was $9,768,000, or $0.15 per diluted
share, compared with $59,372,000, or $0.90 per diluted share, for the
year ended December 31, 2007.
Net income (loss) available to common shareholders for the fourth
quarter and year ended December 31, 2008 included $29,298,000 and
$40,300,000, respectively, of additional depreciation expense resulting
from the write-offs of tenant improvements, deferred lease costs, and
in-place lease intangibles for tenants that closed during the fourth
quarter 2008. Net income (loss) available to common shareholders for the
fourth quarter and year ended December 31, 2008 was also impacted by an
increase in abandoned projects expense over the prior year periods of
$8,146,000 and $10,135,000, respectively, related to the write-off of
predevelopment costs for projects the Company is no longer pursuing.
HIGHLIGHTS
-- Total revenues increased 2.0% during the fourth quarter ended December
31, 2008, to $299,398,000 from $293,638,000 in the prior-year period.
Total revenues increased 9.4% during the year ended December 31, 2008 to
$1,138,218,000 from $1,039,944,000 in the prior year.
-- Same-center net operating income ("NOI"), for the fourth quarter and
year ended December 31, 2008, declined 4.0% and 1.5%, respectively, over
the prior year periods. Same-center NOI was primarily impacted by loss
of rent and an increase in bad debt expense from bankruptcy and stores
closures.
-- Same-store sales for mall tenants of 10,000 square feet or less for
stabilized malls as of December 31, 2008, declined 4.3% to $331 per
square foot compared with $346 per square foot in the prior year period.
-- The debt-to-total-market capitalization ratio as of December 31, 2008,
was 86.3% based on the common stock closing price of $6.50 and a fully
converted common stock share count of 117,010,000shares as of the same
date. The debt-to-total-market capitalization ratio as of December 31,
2007, was 64.0% based on the common stock closing price of $23.91 and a
fully converted common stock share count of 116,814,000 shares as of the
same date.
-- Consolidated and unconsolidated variable rate debt of $1,629,869,000
represents 21.2% of the total market capitalization for the Company and
24.6% of the Company's share of total consolidated and unconsolidated
debt.
CBL's Chairman and Chief Executive Officer, Charles B. Lebovitz, said,
"While 2008 represented the most challenging year in our history, the
underlying strength and resilience of our portfolio reinforces our
dominant mall strategy that has generated an impressive thirty year
track record. In the face of a record level of bankruptcy activity in
2008, we experienced only a 90 basis point decline in portfolio
occupancy and achieved a record level of lease signings at positive
spreads due to the collective efforts of the leasing and property level
management teams. We will continue this aggressive and proactive
approach in the current economic environment and are confident that we
will be successful despite the challenges that lay ahead.
"In addition to maximizing the performance of our existing portfolio,
strengthening our balance sheet remains a top priority. We completed
more than $1.0 billion of new financings in 2008 and are making
excellent progress in addressing 2009 loan maturities. We have continued
our efforts to reduce operating expenses and achieve efficiencies in our
organization with meaningful results to-date. The leadership of CBL will
continue to make the prudent and sometimes difficult decisions necessary
to preserve CBL's long-term shareholder value."
PORTFOLIO OCCUPANCY December 31,
2008 2007
Portfolio occupancy 92.3% 93.2%
Mall portfolio 92.6% 93.4%
Stabilized malls 92.9% 93.6%
Non-stabilized malls 86.5% 90.0%
Associated centers 92.2% 95.9%
Community centers 92.1% 86.7%
DISPOSITIONS
In December 2008, CBL completed the sale of an office building and
adjacent land in Greensboro, NC, for $14.6 million.
In 2008, CBL completed the sale of seven community centers, one
community center expansion and two office buildings for approximately
$67.8 million.
FINANCING
During the fourth quarter, CBL closed the previously announced $40.0
million term loan secured by Meridian Mall in Lansing, MI.
In 2008, CBL completed more than $1.0 billion of financings including
eight new construction loans with total capacity of approximately $331.0
million, more than $365.0 million of new financings or extensions on
maturing mortgages and approximately $344.0 million of new term
facilities.
OUTLOOK AND GUIDANCE
Based on today's outlook and the Company's fourth quarter results, the
Company is providing guidance for 2009 FFO of $3.10 to $3.25 per share.
The full year guidance assumes $0.08 to $0.11 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 $ 0.43 $ 0.58
Adjust to fully converted shares from common shares (0.18 ) (0.25 )
Expected earnings per diluted, fully converted common 0.25 0.33
share
Add: depreciation and amortization 2.67 2.67
Add: minority interest in earnings of Operating 0.18 0.25
Partnership
Expected FFO per diluted, fully converted common share $ 3.10 $ 3.25
INVESTOR CONFERENCE CALL AND SIMULCAST
CBL & Associates Properties, Inc. will conduct a conference call at
11:00 a.m. ET on Thursday, February 5, 2009, to discuss the fourth
quarter results. The number to call for this interactive teleconference
is (303) 262-2130. A seven-day replay of the conference call will be
available by dialing (303) 590-3000 and entering the passcode 11111004#.
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., fourth 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 2008 fourth quarter earnings release conference call. The live
broadcast of CBL's quarterly conference call will be available online at
the Company's Web site at cblproperties.com,
as well as www.streetevents.com
and www.earnings.com,
Thursday, February 5, 2009, beginning at 11:00 a.m. ET. The online
replay will follow shortly after the call and continue through February
12, 2009.
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 158 properties, including 87 regional malls/open-air centers.
The properties are located in 27 states and total 85.8 million square
feet including 2.2 million square feet of non-owned shopping centers
managed for third parties. CBL currently has seven projects under
construction totaling 3.0 million square feet including Settlers Ridge
in Pittsburgh, PA; The Pavilion at Port Orange in Port Orange, FL;
Hammock Landing in West Melbourne, FL; The Promenade in D'Iberville, MS;
two lifestyle/associated centers, and one mall expansion. Headquartered
in Chattanooga, TN, CBL has regional offices in Boston (Waltham), MA,
Dallas, 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 (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 minority interests. Adjustments for
unconsolidated partnerships and joint ventures and minority interests
are calculated on the same basis. The Company defines FFO allocable to
common shareholders as defined above by NAREIT less dividends on
preferred stock. The Company's method of calculating FFO allocable to
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 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 minority interest in the operating
partnership. The Company believes FFO allocable to common shareholders
is a useful performance measure because it is the performance measure
that is most directly comparable to net income (loss) available to
common shareholders.
In the reconciliation of net income (loss) available to common
shareholders to FFO allocable to common shareholders, the Company makes
an adjustment to add back minority 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 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.
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
(loss) 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 minority investors' 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" incorporated by reference therein, for a
discussion of such risks and uncertainties.
CBL & Associates Properties, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
REVENUES:
Minimum rents $ 188,300 $ 181,000 $ 716,570 $ 645,753
Percentage rents 8,509 10,632 18,375 22,472
Other rents 9,372 11,179 22,887 23,121
Tenant reimbursements 85,183 83,056 336,173 318,755
Management, development 2,459 1,418 19,393 7,983
and leasing fees
Other 5,575 6,353 24,820 21,860
Total revenues 299,398 293,638 1,138,218 1,039,944
EXPENSES:
Property operating 49,274 45,646 190,148 169,489
Depreciation and 102,369 67,576 332,475 243,522
amortization
Real estate taxes 23,658 22,518 95,393 87,552
Maintenance and repairs 17,258 16,285 65,617 58,111
General and 11,973 8,780 45,241 37,852
administrative
Other 14,643 6,437 33,333 18,525
Total expenses 219,175 167,242 762,207 615,051
Income from operations 80,223 126,396 376,011 424,893
Interest and other 2,942 3,305 10,076 10,923
income
Interest expense (79,473 ) (80,154 ) (313,209 ) (287,884 )
Loss on extinguishment - - - (227 )
of debt
Impairment of marketable (11,403 ) (18,456 ) (17,181 ) (18,456 )
securities
Gain on sales of real 279 5,005 12,401 15,570
estate assets
Equity in earnings of
unconsolidated 1,523 734 2,831 3,502
affiliates
Income tax provision (738 ) (4,030 ) (13,495 ) (8,390 )
Minority interest in
(earnings) losses:
Operating partnership 7,700 (10,360 ) (7,495 ) (46,246 )
Shopping center (6,010 ) (5,797 ) (23,959 ) (12,215 )
properties
Income (loss) from (4,957 ) 16,643 25,980 81,470
continuing operations
Operating income of 347 76 1,809 1,621
discontinued operations
Gain on discontinued 10 2,154 3,798 6,056
operations
Net income (loss) (4,600 ) 18,873 31,587 89,147
Preferred dividends (5,455 ) (5,455 ) (21,819 ) (29,775 )
Net income (loss)
available to common $ (10,055 ) $ 13,418 $ 9,768 $ 59,372
shareholders
Basic per share data:
Income (loss) from
continuing operations, $ (0.16 ) $ 0.17 $ 0.06 $ 0.79
net of preferred
dividends
Discontinued operations 0.01 0.03 0.09 0.12
Net income (loss)
available to common $ (0.15 ) $ 0.20 $ 0.15 $ 0.91
shareholders
Weighted average common 66,085 65,590 66,005 65,323
shares outstanding
Diluted per share data:
Income (loss) from
continuing operations, $ (0.16 ) $ 0.17 $ 0.06 $ 0.78
net of preferred
dividends
Discontinued operations 0.01 0.03 0.09 0.12
Net income (loss)
available to common $ (0.15 ) $ 0.20 $ 0.15 $ 0.90
shareholders
Weighted average common
and potential dilutive 66,085 65,952 66,148 65,913
common shares
outstanding
The Company's calculation of FFO allocable to Company shareholders is as
follows:
(in thousands, except per share data)
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
Net income (loss) available $ (10,055 ) $ 13,418 $ 9,768 $ 59,372
to common shareholders
Minority interest in
earnings (losses) of (7,700 ) 10,360 7,495 46,246
operating partnership
Depreciation and
amortization expense of:
Consolidated properties 102,369 67,576 332,475 243,522
Unconsolidated affiliates 8,875 6,776 29,987 17,326
Discontinued operations - 317 892 1,297
Non-real estate assets (257 ) (229 ) (1,027 ) (919 )
Minority investors' share of
depreciation and (15 ) (322 ) (958 ) (132 )
amortization
Gain on discontinued (10 ) (2,154 ) (3,798 ) (6,056 )
operations
Income tax provision on
disposal of discontinued - 872 1,439 872
operations
Funds from operations of the $ 93,207 $ 96,614 $ 376,273 $ 361,528
operating partnership
Funds from operations per $ 0.80 $ 0.83 $ 3.22 $ 3.10
diluted share
Weighted average common and
potential dilutive common
shares outstanding with 116,806 116,585 116,781 116,584
operating partnership units
fully converted
Reconciliation of FFO of the
operating partnership to FFO
allocable to Company
shareholders:
Funds from operations of the $ 93,207 $ 96,614 $ 376,273 $ 361,528
operating partnership
Percentage allocable to 56.62 % 56.43 % 56.59 % 56.32 %
Company shareholders (1)
Funds from operations
allocable to Company $ 52,774 $ 54,519 $ 212,933 $ 203,613
shareholders
(1) 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 9.
SUPPLEMENTAL FFO
INFORMATION:
Lease termination fees $ 1,994 $ 612 $ 11,250 $ 6,407
Lease termination fees per $ 0.02 $ 0.01 $ 0.10 $ 0.05
share
Straight-line rental income $ 2,056 $ 2,143 $ 6,137 $ 5,876
Straight-line rental income $ 0.02 $ 0.02 $ 0.05 $ 0.05
per share
Gains on outparcel sales $ 1,720 $ 5,600 $ 15,963 $ 16,651
Gains on outparcel sales per $ 0.01 $ 0.05 $ 0.14 $ 0.14
share
Amortization of acquired
above- and below-market $ 3,850 $ 2,299 $ 10,735 $ 10,579
leases
Amortization of acquired
above- and below-market $ 0.03 $ 0.02 $ 0.09 $ 0.09
leases per share
Amortization of debt $ 1,991 $ 1,935 $ 7,909 $ 7,714
premiums
Amortization of debt $ 0.02 $ 0.02 $ 0.07 $ 0.07
premiums per share
Income tax provision $ (738 ) $ (3,158 ) $ (12,056 ) $ (7,518 )
Income tax provision per $ (0.01 ) $ (0.03 ) $ (0.10 ) $ (0.06 )
share
Impairment of marketable $ (11,403 ) $ (18,456 ) $ (17,181 ) $ (18,456 )
securities
Impairment of marketable $ (0.10 ) $ (0.16 ) $ (0.15 ) $ (0.16 )
securities per share
Abandoned projects $ (9,407 ) $ (1,261 ) $ (12,351 ) $ (2,216 )
Abandoned projects per share $ (0.08 ) $ (0.01 ) $ (0.11 ) $ (0.02 )
(Dollars in thousands)
Three Months Ended Year Ended
December 31, December 31,
2008 2007 2008 2007
Net income (loss) $ (4,600 ) $ 18,873 $ 31,587 $ 89,147
Adjustments:
Depreciation and 102,369 67,576 332,475 243,522
amortization
Depreciation and
amortization from 8,875 6,776 29,987 17,326
unconsolidated affiliates
Depreciation and
amortization from - 317 892 1,297
discontinued operations
Minority investors' share of
depreciation and (15 ) (322 ) (958 ) (132 )
amortization in shopping
center properties
Interest expense 79,473 80,154 313,209 287,884
Interest expense from 7,653 7,904 28,525 20,480
unconsolidated affiliates
Minority investors' share of
interest expense in shopping (135 ) (466 ) (1,492 ) (831 )
center properties
Loss on extinguishment of - - - 227
debt
Abandoned projects expense 9,407 1,261 12,351 2,216
Gain on sales of real estate (279 ) (5,005 ) (12,401 ) (15,570 )
assets
Gain on sales of real estate
assets of unconsolidated (832 ) (473 ) (3,548 ) (1,706 )
affiliates
Impairment of marketable 11,403 18,456 17,181 18,456
securities
Minority investors' share of
gain on sales of shopping - - - 621
center real estate assets
Income tax provision 738 4,030 13,495 8,390
Minority interest in
earnings (losses) of (7,700 ) 10,360 7,495 46,246
operating partnership
Gain on discontinued (10 ) (2,154 ) (3,798 ) (6,056 )
operations
Operating partnership's 206,347 207,287 765,000 711,517
share of total NOI
General and administrative 11,973 8,780 45,241 37,852
expenses
Management fees and (8,025 ) (10,020 ) (36,607 ) (35,756 )
non-property level revenues
Operating partnership's 210,295 206,047 773,634 713,613
share of property NOI
NOI of non-comparable (25,317 ) (13,379 ) (89,121 ) (18,934 )
centers
Total same-center NOI $ 184,978 $ 192,668 $ 684,513 $ 694,679
Malls $ 171,871 $ 178,979 $ 630,616 $ 639,439
Associated centers 7,445 8,068 31,340 32,592
Community centers 1,815 1,903 7,682 6,922
Other 3,847 3,718 14,875 15,726
Total same-center NOI 184,978 192,668 684,513 694,679
Less lease termination fees (601 ) (600 ) (8,425 ) (6,397 )
Total same-center NOI,
excluding lease termination $ 184,377 $ 192,068 $ 676,088 $ 688,282
fees
Percentage Change:
Malls -4.0 % -1.4 %
Associated centers -7.7 % -3.8 %
Community centers -4.6 % 11.0 %
Other 3.5 % -5.4 %
Total same-center NOI -4.0 % -1.5 %
Total same-center NOI,
excluding lease termination -4.0 % -1.8 %
fees
Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
December 31, 2008
Fixed Rate Variable Rate Total
Consolidated debt $ 4,608,347 $ 1,487,329 $ 6,095,676
Minority investors' share of (23,648 ) (928 ) (24,576 )
consolidated debt
Company's share of unconsolidated 418,761 143,468 562,229
affiliates' debt
Company's share of consolidated $ 5,003,460 $ 1,629,869 $ 6,633,329
and unconsolidated debt
Weighted average interest rate 5.96 % 2.02 % 4.99 %
December 31, 2007
Fixed Rate Variable Rate Total
Consolidated debt $ 4,543,515 $ 1,325,803 $ 5,869,318
Minority investors' share of (24,236 ) (2,517 ) (26,753 )
consolidated debt
Company's share of unconsolidated 335,903 49,475 385,378
affiliates' debt
Company's share of consolidated $ 4,855,182 $ 1,372,761 $ 6,227,943
and unconsolidated debt
Weighted average interest rate 5.79 % 6.14 % 5.87 %
Debt-To-Total-Market
Capitalization Ratio as of
December 31, 2008
(In thousands, except stock price) Shares
Outstanding Stock Price Value
(1)
Common stock and operating 117,010 $ 6.50 $ 760,565
partnership units
7.75% Series C Cumulative 460 250.00 115,000
Redeemable Preferred Stock
7.375% Series D Cumulative 700 250.00 175,000
Redeemable Preferred Stock
Total market equity 1,050,565
Company's share of 6,633,329
total debt
Total market $ 7,683,894
capitalization
Debt-to-total-market 86.3 %
capitalization ratio
(1) Stock price for common stock and operating partnership units equals the
closing price of the common stock on December 31, 2008. 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 Year Ended
December 31, December 31,
2008: Basic Diluted Basic Diluted
Weighted average 66,085 66,085 66,005 66,148
shares - EPS
Weighted average
dilutive shares for - 93 - -
FFO (1)
Weighted average
operating 50,628 50,628 50,633 50,633
partnership units
Weighted average 116,713 116,806 116,638 116,781
shares- FFO
2007:
Weighted average 65,590 65,952 65,323 65,913
shares - EPS
Weighted average
operating 50,637 50,633 50,671 50,671
partnership units
Weighted average 116,227 116,585 115,994 116,584
shares- FFO
Dividend Payout Three Months Ended Year Ended
Ratio
December 31, December 31,
2008 2007 2008 2007
Weighted average $ 0.37255 $ 0.55047 $ 2.02396 $ 2.08260
dividend per share
FFO per diluted,
fully converted $ 0.80 $ 0.83 $ 3.22 $ 3.10
share
Dividend payout 46.7 % 66.3 % 62.8 % 67.2 %
ratio
(1) Because the Company incurred a net loss during the three months ended
December 31, 2008, there are no potentially dilutive shares recognized in the
number of diluted weighted average shares for EPS purposes for that period due
to their anti-dilutive nature. However, because FFO was positive during the
fourth quarter of 2008, the dilutive shares are recognized in the number of
diluted weighted average shares for purposes of calculating FFO per share.
Consolidated Balance Sheets
(Unaudited, in thousands except share data)
December 31, December 31,
2008 2007
ASSETS
Real estate assets:
Land $ 902,504 $ 917,578
Buildings and improvements 7,503,334 7,263,907
8,405,838 8,181,485
Accumulated depreciation (1,310,173 ) (1,102,767 )
7,095,665 7,078,718
Developments in progress 225,815 323,560
Net investment in real estate assets 7,321,480 7,402,278
Cash and cash equivalents 51,227 65,826
Cash in escrow 2,700 -
Receivables:
Tenant, net of allowance 74,402 72,570
Other 12,145 10,257
Mortgage and other notes receivable 58,961 135,137
Investments in unconsolidated affiliates 207,618 142,550
Intangible lease assets and other assets 305,802 276,429
$ 8,034,335 $ 8,105,047
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage and other notes payable $ 6,095,676 $ 5,869,318
Accounts payable and accrued liabilities 329,991 394,884
Total liabilities 6,425,667 6,264,202
Commitments and contingencies
Minority interests 815,010 920,297
Shareholders' equity:
Preferred Stock, $.01 par value, 15,000,000
shares authorized:
7.75% Series C Cumulative Redeemable Preferred 5 5
Stock, 460,000 shares outstanding
7.375% Series D Cumulative Redeemable Preferred 7 7
Stock, 700,000 shares outstanding
Common Stock, $.01 par value, 180,000,000 shares
authorized, 66,394,844 and 66,179,747 issued and 664 662
outstanding in 2008 and 2007, respectively
Additional paid-in capital 1,008,883 990,048
Accumulated other comprehensive loss (22,594 ) (20 )
Accumulated deficit (193,307 ) (70,154 )
Total shareholders' equity 793,658 920,548
$ 8,034,335 $ 8,105,047
Source: CBL & Associates Properties, Inc.
Contact: CBL & Associates Properties, Inc.
Katie Reinsmidt, 423-490-8301
Director of Corporate Communications and Investor Relations
katie_reinsmidt@cblproperties.com