CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE:CBL):
-- Total FFO increased 2.0% in the quarter ended June 30, 2009, from the
prior-year period.
-- Same-Center NOI increased 1.3% for the quarter ended June 30, 2009, from
the prior-year period, excluding lease-termination fees.
-- Stabilized mall occupancy was 89.1% as of June 30, 2009, unchanged from
the sequential quarter.
-- CBL raised approximately $382.0 million in follow-on equity offering.
-- CBL maintains post-offering 2009 FFO guidance range of $2.28 - $2.39 per
share.
CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the
second quarter ended June 30, 2009. 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. All share and per
share information for the periods presented have been adjusted to
reflect the issuance of common stock and common units, as applicable, in
connection with the Company's dividend payment on April 15, 2009. For
the second quarter 2009, the per share results include a weighted
average adjustment for the 66.63 million shares issued in the June 2009
equity offering discussed in more detail in the section titled - Capital
Market Activity.
Funds from Operations ("FFO") allocable to common shareholders for the
quarter ended June 30, 2009, was $59,205,000, or $0.71 per diluted
share, compared with $54,545,000, or $0.77 per diluted share for the
quarter ended June 30, 2008. FFO allocable to common shareholders for
the six months ended June 30, 2009, was $110,369,000, or $1.43 per
diluted share, compared with $108,141,000, or $1.52 per diluted share
for the six months ended June 30, 2008.
FFO of the operating partnership for the quarter ended June 30, 2009,
was $96,299,000, compared with $94,434,000 for the quarter ended June
30, 2008, representing an increase of 2.0%. FFO of the operating
partnership for the six months ended June 30, 2009, was $184,749,000,
compared with $187,289,000 for the six months ended June 30, 2008. The
decline in FFO of the operating partnership for the six months ended
June 30, 2009, was primarily the result of a $7,706,000 non-cash
impairment charge related to the Company's investment in a mall real
estate development company located in Nanjing, China.
Net income available to common shareholders for the quarter ended June
30, 2009, was $8,137,000, or $0.10 per diluted share, compared with net
income of $9,665,000, or $0.14 per diluted share for the prior-year
period. Net income available to common shareholders for the six months
ended June 30, 2009, was $9,849,000, or $0.13 per diluted share,
compared with $15,837,000, or $0.22 per diluted share, for the six
months ended June 30, 2008. The decline in net income available to
common shareholders for the six months ended June 30, 2009, was
primarily the result of a $4,373,000 (adjusted for non-controlling
interest) non-cash impairment charge related to the Company's investment
in a mall real estate development company located in Nanjing, China.
HIGHLIGHTS
-- Total revenues declined 2.2% during the second quarter ended June 30,
2009, to $266,524,000 from $272,483,000 in the prior-year period. Total
revenues declined 2.9% in the six months ended June 30, 2009 to
$537,584,000, from $553,415,000 in the prior-year period.
-- Same-center net operating income ("NOI") for the portfolio, excluding
lease termination fees, for the quarter ended June 30, 2009, increased
1.3% compared with a decline of 1.8% for the prior-year period.
Same-center NOI, excluding lease termination fees, for the six months
ended June 30, 2009, declined 0.4%, compared with a 0.4% decline in the
prior-year period.
-- Same-store sales for mall tenants of 10,000 square feet or less for
stabilized malls as of June 30, 2009, declined 6.0% to $321 per square
foot compared with $341 per square foot in the prior-year period.
-- The debt-to-total-market capitalization ratio as of June 30, 2009, was
82.6% based on the common stock closing price of $5.39 and a fully
converted common stock share count of 189,804,000shares as of the same
date. The debt-to-total-market capitalization ratio as of June 30, 2008,
was 68.6% based on the common stock closing price of $22.84 and a fully
converted common stock share count of 116,960,000 shares as of the same
date.
-- Consolidated and unconsolidated variable rate debt of $1,327,908,000
represents 17.6% of the total market capitalization for the Company and
21.2% of the Company's share of total consolidated and unconsolidated
debt.
CBL's Chairman and Chief Executive Officer, Charles B. Lebovitz, said,
"I am pleased to report on the significant progress we have made this
quarter enhancing our balance sheet flexibility and strengthening our
liquidity position. We have secured 99% of the underlying lending
commitments to extend the $560 million unsecured and the $525 million
secured credit facilities. In addition, we closed $91 million in
permanent financings. Combined with the $382 million in capital raised
through our June equity offering, these transactions allow us to address
all of our 2009 debt maturities and have identified capital to address
all of our CMBS maturities through 2011.
"The commitment of the CBL team and the resiliency of our properties
were also evident in the quarter. In the face of a deteriorating retail
environment, we posted an increase in NOI in the mall portfolio, signed
over one million square feet of leases and maintained the sequential
stabilized mall occupancy rate. While leasing rates continue to reflect
the tough economic climate, we remain confident in our properties and
our markets."
PORTFOLIO OCCUPANCY June 30,
2009 2008
Portfolio occupancy 88.0% 91.4%
Mall portfolio 88.7% 90.9%
Stabilized malls 89.1% 91.0%
Non-stabilized malls 72.2% 89.5%
Associated centers 88.7% 94.1%
Community centers 78.5% 92.4%
CAPITAL MARKET ACTIVITY
During the second quarter, CBL sold a total of 66,630,000 of
newly-issued common stock in an underwritten public offering for net
proceeds of approximately $382.0 million, after deducting the
underwriting discount and other estimated offering expenses. The Company
used the net proceeds from the offering to repay outstanding borrowings
under its credit facilities.
FINANCING
CBL has received commitments from lenders representing approximately 99%
of the aggregate underlying facility amounts for the extension and
modification of its $525 million secured line of credit and its $560
million unsecured line of credit. The commitments include lenders
representing $512 million of its $525 million secured facility and 100%
of its $560 million unsecured facility. The commitments reflect an
extension of the $525 million secured facility from February 2010 to
February 2012, with an option to extend the maturity for one additional
year to February 2013 (subject to continued compliance with the terms of
the facility). The commitments provide that the $560 million unsecured
facility will be converted over an 18-month period into a secured
facility, and that the maturity of the facility will be extended from
August 2011 to April 2014. The Company anticipates closing on the
extension and modification of the secured and unsecured lines of credit
in the third quarter 2009. Full terms and conditions of the facility
will be announced at that time.
The Company also announced that it had closed two 10-year, non-recourse
loans including a $33.6 million loan secured by Honey Creek Mall in
Terre Haute, IN and a $57.8 million loan secured by Volusia Mall in
Daytona Beach, FL. The loans are with the existing institutional lender
and have an interest rate of 8.0%. These loans replace an existing $30.1
million loan secured by Honey Creek Mall and a $51.2 million loan
secured by Volusia Mall. CBL used the approximately $10.1 million of
excess proceeds, plus cash on hand, to pay off the $30.2 million loan
secured by Bonita Lakes Mall in Meridian, MS. These advancements
successfully address all of the Company's 2009 loan maturities, except
for a $53.0 million non-recourse loan secured by Eastgate Mall in
Cincinnati, OH which may be paid-off using amounts made available on the
$560 million credit facility from the June equity offering.
DIVIDEND
During the quarter, CBL's Board of Directors established its Common
Stock dividend policy for the remainder of 2009. The Board determined to
reduce the dividend for the remainder of 2009 to the minimum level
required to distribute 100% of the Company's estimated taxable income.
Future dividends payable will be determined by the Company's Board of
Directors based upon circumstances at the time of declaration.
Pursuant to the 2009 Common Stock dividend policy the Board declared a
quarterly cash dividend for the Company's Common Stock of $0.11 per
share for the quarter ending June 30, 2009. The dividend was paid on
July 15, 2009, to shareholders of record as of June 30, 2009.
OUTLOOK AND GUIDANCE
Based on today's outlook and the Company's second quarter results, the
Company is maintaining 2009 FFO guidance of $2.28 to $2.39 per share.
The guidance incorporates the dilution from the June 2009 equity
offering and assumes the closing of the secured and unsecured credit
facilities in third quarter 2009. The full year guidance also assumes
$6.0 million to $9.0 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 $ 0.36 $ 0.46
Adjust to fully converted shares from common shares (0.12 ) (0.15 )
Expected earnings per diluted, fully converted common 0.24 0.31
share
Add: depreciation and amortization 1.91 1.91
Add: noncontrolling interest in earnings of Operating 0.13 0.17
Partnership
Expected FFO per diluted, fully converted common share $ 2.28$ 2.39
INVESTOR CONFERENCE CALL AND SIMULCAST
CBL & Associates Properties, Inc. will conduct a conference call at
11:00 a.m. ET on Wednesday, August 5, 2009, to discuss the second
quarter results. The number to call for this interactive teleconference
is (480) 629-9738. A seven-day replay of the conference call will be
available by dialing (303) 590-3030 and entering the passcode 4065610. 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 2009 second 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 http://www.talkpoint.com/viewer/starthere.asp?Pres=126803
on Wednesday, August 5, 2009, beginning at 11:00 a.m. ET. The online
replay will follow shortly after the call and continue through August
13, 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 160 properties, including 88 regional malls/open-air centers.
The properties are located in 27 states and total 86.4 million square
feet including 2.2 million square feet of non-owned shopping centers
managed for third parties. CBL currently has four projects under
construction totaling 2.3 million square feet including Settlers Ridge
in Pittsburgh, PA; The Pavilion at Port Orange in Port Orange, FL; The
Promenade in D'Iberville (Biloxi/Gulfport), MS; and one community
center. 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 determined in accordance with
GAAP. The National Association of Real Estate Investment Trusts
("NAREIT") defines FFO as net income (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, 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
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
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 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" 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 Six Months Ended
June 30, June 30,
2009 2008 2009 2008
REVENUES:
Minimum rents $ 170,491 $ 177,943 $ 342,428 $ 352,474
Percentage rents 1,604 1,610 6,408 6,606
Other rents 4,142 4,204 8,422 9,218
Tenant reimbursements 81,695 79,952 163,179 166,375
Management, development 1,615 2,484 4,080 5,422
and leasing fees
Other 6,977 6,290 13,067 13,320
Total revenues 266,524 272,483 537,584 553,415
EXPENSES:
Property operating 39,355 44,094 83,372 92,386
Depreciation and 75,793 73,064 154,104 148,144
amortization
Real estate taxes 24,449 23,898 48,603 48,077
Maintenance and repairs 13,416 15,003 29,410 32,919
General and administrative 10,893 11,114 22,372 23,645
Other 5,914 6,541 11,071 13,540
Total expenses 169,820 173,714 348,932 358,711
Income from operations 96,704 98,769 188,652 194,704
Interest and other income 1,362 2,182 2,943 4,909
Interest expense (72,842 ) (76,455 ) (144,727 ) (156,679 )
Impairment of investment - - (7,706 ) -
Gain (loss) on sales of 72 4,269 (67 ) 7,345
real estate assets
Equity in earnings
(losses) of unconsolidated 62 (186 ) 1,596 793
affiliates
Income tax provision (152 ) (3,838 ) (755 ) (4,195 )
Income from continuing 25,206 24,741 39,936 46,877
operations
Operating income of 86 1,053 20 1,335
discontinued operations
Gain (loss) on (12 ) 3,112 (72 ) 3,112
discontinued operations
Net income 25,280 28,906 39,884 51,324
Net income attributable to
noncontrolling interests:
Operating partnership (5,109 ) (7,385 ) (6,415 ) (12,127 )
Other consolidated (6,580 ) (6,402 ) (12,711 ) (12,451 )
subsidiaries
Net income attributable to 13,591 15,119 20,758 26,746
the Company
Preferred dividends (5,454 ) (5,454 ) (10,909 ) (10,909 )
Net income available to $ 8,137 $ 9,665 $ 9,849 $ 15,837
common shareholders
Basic per share data
attributable to common
shareholders:
Income from continuing
operations, net of $ 0.10 $ 0.10 $ 0.13 $ 0.19
preferred dividends
Discontinued operations - 0.04 - 0.03
Net income available to $ 0.10 $ 0.14 $ 0.13 $ 0.22
common shareholders
Weighted average common 82,918 71,062 77,072 71,027
shares outstanding
Diluted per share data
attributable to common
shareholders:
Income from continuing
operations, net of $ 0.10 $ 0.10 $ 0.13 $ 0.19
preferred dividends
Discontinued operations - 0.04 - 0.03
Net income available to $ 0.10 $ 0.14 $ 0.13 $ 0.22
common shareholders
Weighted average common
and potential dilutive 82,957 71,250 77,109 71,209
common shares outstanding
Amounts attributable to
common shareholders:
Income from continuing
operations, net of $ 8,092 $ 7,259 $ 9,880 $ 13,269
preferred dividends
Discontinued operations 45 2,406 (31 ) 2,568
Net income available to $ 8,137 $ 9,665 $ 9,849 $ 15,837
common shareholders
The Company's calculation of FFO allocable to Company shareholders is as
follows:
(in thousands, except per
share data)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
Net income available to $ 8,137 $ 9,665 $ 9,849 $ 15,837
common shareholders
Noncontrolling interest in
earnings of operating 5,109 7,385 6,415 12,127
partnership
Depreciation and
amortization expense of:
Consolidated properties 75,793 73,064 154,104 148,144
Unconsolidated affiliates 7,555 6,694 15,064 13,371
Discontinued operations - 117 - 892
Non-real estate assets (243 ) (259 ) (490 ) (502 )
Noncontrolling interests'
share of depreciation and (64 ) (303 ) (265 ) (651 )
amortization
(Gain) loss on discontinued 12 (3,112 ) 72 (3,112 )
operations
Income tax provision on
disposal of discontinued - 1,183 - 1,183
operations
Funds from operations of the $ 96,299 $ 94,434 $ 184,749 $ 187,289
operating partnership
Funds from operations per $ 0.71 $ 0.77 $ 1.43 $ 1.52
diluted share
Weighted average common and
potential dilutive common
shares outstanding with 134,906 123,223 129,058 123,183
operating partnership units
fully converted
Reconciliation of FFO of the
operating partnership to FFO
allocable to Company
shareholders:
Funds from operations of the $ 96,299 $ 94,434 $ 184,749 $ 187,289
operating partnership
Percentage allocable to 61.48 % 57.76 % 59.74 % 57.74 %
Company shareholders(1)
Funds from operations
allocable to Company $ 59,205 $ 54,545 $ 110,369 $ 108,141
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 $ 1,129 $ 4,458 $ 3,671 $ 5,918
Lease termination fees per $ 0.01 $ 0.04 $ 0.03 $ 0.05
share
Straight-line rental income $ 1,570 $ 1,837 $ 3,301 $ 3,338
Straight-line rental income $ 0.01 $ 0.01 $ 0.03 $ 0.03
per share
Gains on outparcel sales $ 154 $ 4,188 $ 579 $ 7,548
Gains on outparcel sales per $ - $ 0.03 $ - $ 0.06
share
Amortization of acquired
above- and below-market $ 1,532 $ 2,506 $ 3,080 $ 5,103
leases
Amortization of acquired
above- and below-market $ 0.01 $ 0.02 $ 0.02 $ 0.04
leases per share
Amortization of debt $ 1,707 $ 1,961 $ 3,742 $ 3,936
premiums
Amortization of debt $ 0.01 $ 0.02 $ 0.03 $ 0.03
premiums per share
Income tax provision $ (152 ) $ (2,655 ) $ (755 ) $ (3,012 )
Income tax provision per $ - $ (0.02 ) $ (0.01 ) $ (0.02 )
share
Impairment of investment $ - $ - $ (7,706 ) $ -
Impairment of investment per $ - $ - $ (0.06 ) $ -
share
Abandoned projects $ (67 ) $ (1,199 ) $ (143 ) $ (2,912 )
Abandoned projects per share $ - $ (0.01 ) $ - $ (0.02 )
Same-Center Net Operating Income
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
Net income attributable to $ 13,591 $ 15,119 $ 20,758 $ 26,746
the Company
Adjustments:
Depreciation and 75,793 73,064 154,104 148,144
amortization
Depreciation and
amortization from 7,555 6,694 15,064 13,371
unconsolidated affiliates
Depreciation and
amortization from - 117 - 892
discontinued operations
Noncontrolling interests'
share of depreciation and (64 ) (303 ) (265 ) (651 )
amortization in other
consolidated subsidiaries
Interest expense 72,842 76,455 144,727 156,679
Interest expense from 7,497 7,208 15,362 13,834
unconsolidated affiliates
Noncontrolling interests'
share of interest expense in (189 ) (455 ) (462 ) (903 )
other consolidated
subsidiaries
Abandoned projects expense 67 1,199 143 2,912
(Gain) loss on sales of real (72 ) (4,269 ) 67 (7,345 )
estate assets
Gain on sales of real estate
assets of unconsolidated (82 ) (145 ) (646 ) (429 )
affiliates
Impairment of investment - - 7,706 -
Noncontrolling interests'
share of gain on sales of - 230 - 230
other consolidated
subsidiaries
Income tax provision 152 3,838 755 4,195
Noncontrolling interests in
earnings of operating 5,109 7,385 6,415 12,127
partnership
(Gain) loss on discontinued 12 (3,112 ) 72 (3,112 )
operations
Operating partnership's 182,211 183,025 363,800 366,690
share of total NOI
General and administrative 10,893 11,114 22,372 23,645
expenses
Management fees and (4,574 ) (6,357 ) (10,606 ) (14,328 )
non-property level revenues
Operating partnership's 188,530 187,782 375,566 376,007
share of property NOI
NOI of non-comparable (4,442 ) (2,660 ) (8,380 ) (5,233 )
centers
Total same-center NOI $ 184,088 $ 185,122 $ 367,186 $ 370,774
Malls $ 166,601 $ 166,420 $ 333,226 $ 334,797
Associated centers 8,134 8,865 15,955 17,472
Community centers 3,508 3,732 6,899 7,133
Other 5,845 6,105 11,106 11,372
Total same-center NOI 184,088 185,122 367,186 370,774
Less lease termination fees (1,129 ) (4,438 ) (3,671 ) (5,762 )
Total same-center NOI,
excluding lease termination $ 182,959 $ 180,684 $ 363,515 $ 365,012
fees
Percentage Change:
Malls 0.1 % -0.5 %
Associated centers -8.2 % -8.7 %
Community centers -6.0 % -3.3 %
Other -4.3 % -2.3 %
Total same-center NOI -0.6 % -1.0 %
Total same-center NOI,
excluding lease termination 1.3 % -0.4 %
fees
Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
June 30, 2009
Fixed Rate Variable Rate Total
Consolidated debt $ 4,541,048 $ 1,147,554 $ 5,688,602
Noncontrolling interests' share of (23,424 ) (928 ) (24,352 )
consolidated debt
Company's share of unconsolidated 407,022 181,282 588,304
affiliates' debt
Company's share of consolidated $ 4,924,646 $ 1,327,908 $ 6,252,554
and unconsolidated debt
Weighted average interest rate 5.98 % 1.68 % 5.06 %
June 30, 2008
Fixed Rate Variable Rate Total
Consolidated debt $ 4,653,373 $ 1,344,785 $ 5,998,158
Noncontrolling interests' share of (23,909 ) (910 ) (24,819 )
consolidated debt
Company's share of unconsolidated 409,702 74,145 483,847
affiliates' debt
Company's share of consolidated $ 5,039,166 $ 1,418,020 $ 6,457,186
and unconsolidated debt
Weighted average interest rate 5.79 % 3.59 % 5.30 %
Debt-To-Total-Market Capitalization Ratio as of June 30, 2009
(In thousands, except stock price)
Shares
Outstanding Stock Price(1) Value
Common stock and operating 189,804 $ 5.39 $ 1,023,044
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 1,313,044
Company's share of total debt 6,252,554
Total market capitalization $ 7,565,598
Debt-to-total-market 82.6 %
capitalization ratio
(1) Stock price for common stock and operating partnership units equals the
closing price of the common stock on June 30, 2009. 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 Six Months Ended
June 30, June 30,
2009: Basic Diluted Basic Diluted
Weighted average 82,918 82,957 77,072 77,109
shares - EPS
Weighted average
operating partnership 51,949 51,949 51,949 51,949
units
Weighted average 134,867 134,906 129,021 129,058
shares - FFO
2008:
Weighted average 71,062 71,250 71,027 71,209
shares - EPS
Weighted average
operating partnership 51,976 51,973 51,976 51,972
units
Weighted average 123,038 123,223 123,003 123,183
shares - FFO
Dividend Payout Ratio Three Months Ended Six Months Ended
June 30, June 30,
2009 2008 2009 2008
Weighted average $ 0.15385 $ 0.55047 $ 0.53291 $ 1.10094
dividend per share
FFO per diluted, $ 0.71 $ 0.77 $ 1.43 $ 1.52
fully converted share
Dividend payout ratio 21.7 % 71.5 % 37.3 % 72.4 %
Consolidated Balance Sheets
(Unaudited, in thousands except share data)
June 30, December 31,
2009 2008
ASSETS
Real estate assets:
Land $ 926,588 $ 902,504
Buildings and improvements 7,567,502 7,503,334
8,494,090 8,405,838
Accumulated depreciation (1,433,863 ) (1,310,173 )
7,060,227 7,095,665
Developments in progress 217,207 225,815
Net investment in real estate assets 7,277,434 7,321,480
Cash and cash equivalents 50,789 51,227
Cash in escrow - 2,700
Receivables:
Tenant, net of allowance 69,386 74,402
Other 12,725 12,145
Mortgage and other notes receivable 51,380 58,961
Investments in unconsolidated affiliates 196,106 207,618
Intangible lease assets and other assets 285,712 305,802
$ 7,943,532 $ 8,034,335
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS
AND EQUITY
Mortgage and other notes payable $ 5,688,602 $ 6,095,676
Accounts payable and accrued liabilities 291,152 329,991
Total liabilities 5,979,754 6,425,667
Commitments and contingencies
Redeemable noncontrolling interests:
Redeemable noncontrolling partnership interests 91,792 18,393
Redeemable noncontrolling preferred joint 421,457 421,279
venture interest
Total redeemable noncontrolling interests 513,249 439,672
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, 137,855,513 and 66,394,844 issued 1,378 664
and outstanding in 2009 and 2008, respectively
Additional paid-in capital 1,420,214 993,941
Accumulated other comprehensive loss (6,968 ) (12,786 )
Accumulated deficit (223,202 ) (193,307 )
Total shareholders' equity 1,191,434 788,524
Noncontrolling interests 259,095 380,472
Total equity 1,450,529 1,168,996
$ 7,943,532 $ 8,034,335
Source: CBL & Associates Properties, Inc.
Contact: CBL & Associates Properties, Inc.
Investor Contact:
Katie Reinsmidt
Vice President - Corporate Communications and Investor Relations
423-490-8301
katie_reinsmidt@cblproperties.com