CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE:CBL):
-- Reported FFO per diluted share of $0.50 for the quarter ended September
30, 2009.
-- Stabilized mall occupancy increased 120 bps to 90.3% as of September 30,
2009, from the sequential quarter.
-- Same-Center NOI in the mall portfolio declined 0.3% for the nine months
ended September 30, 2009, from the prior-year period, excluding
lease-termination fees.
-- Balance sheet position improved with three-year extensions of two major
credit facilities totaling $1.1 billion.
CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the
third quarter ended September 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.
Funds from Operations ("FFO") allocable to common shareholders for the
quarter ended September 30, 2009, was $68,425,000, or $0.50 per diluted
share, compared with $55,320,000, or $0.78 per diluted share for the
quarter ended September 30, 2008. FFO allocable to common shareholders
for the nine months ended September 30, 2009, was $182,021,000, or $1.87
per diluted share, compared with $163,471,000, or $2.30 per diluted
share for the nine months ended September 30, 2008. FFO per diluted
share was diluted by the 66.63 million shares issued in the June 2009
equity offering.
FFO of the operating partnership for the quarter ended September 30,
2009, was $94,210,000, compared with $95,776,000 for the quarter ended
September 30, 2008. FFO of the operating partnership for the nine months
ended September 30, 2009, was $278,959,000, compared with $283,066,000
for the nine months ended September 30, 2008.
FFO per diluted share for the quarter and nine months ended September
30, 2009, was diluted by $0.26 per share and $0.40 per share,
respectively, as a result of the 66.63 million shares issued in the June
2009 equity offering. FFO for the quarter and nine months ended
September 30, 2009 was reduced by a non-cash impairment charge of
$1,143,000 related to the proposed sale of the Company's 60% interest in
Plaza Macae located in Macae, Brazil. FFO for the quarter and nine
months ended September 30, 2008 included $8,000,000 of one-time fee
income collected from affiliates of Centro, partially offset by a
$5,778,000 write-down of marketable securities.
Net income available to common shareholders for the quarter ended
September 30, 2009, was $11,134,000, or $0.08 per diluted share,
compared with net income of $3,985,000, or $0.06 per diluted share for
the prior-year period. Net income available to common shareholders for
the nine months ended September 30, 2009, was $20,983,000, or $0.22 per
diluted share, compared with $19,823,000, or $0.28 per diluted share,
for the nine months ended September 30, 2008. Net income available to
common shareholders per diluted share was diluted by the 66.63 million
shares issued in the June 2009 equity offering.
HIGHLIGHTS
-- Same-center net operating income ("NOI") for the total portfolio,
excluding lease termination fees, for the nine months ended September
30, 2009, declined 0.9%, compared with a 1.4% decrease in the prior-year
period.
-- Same-store sales for mall tenants of 10,000 square feet or less for
stabilized malls as of September 30, 2009, declined 6.6% to $317 per
square foot compared with $339 per square foot in the prior-year period.
-- The debt-to-total-market capitalization ratio as of September 30, 2009,
was 74.6% based on the common stock closing price of $9.70 and a fully
converted common stock share count of 189,825,000shares as of the same
date. The debt-to-total-market capitalization ratio as of September 30,
2008, was 71.2% based on the common stock closing price of $20.08 and a
fully converted common stock share count of 116,972,000 shares as of the
same date.
-- Consolidated and unconsolidated variable rate debt of $1,350,082,000
represents 16.1% of the total market capitalization for the Company and
21.6% of the Company's share of total consolidated and unconsolidated
debt.
CBL's Chairman and Chief Executive Officer, Charles B. Lebovitz, said,
"We were pleased to have announced the completion of the three year
extensions of both our $525 million secured credit facility and our $560
million new secured credit facility, maintaining their full lending
capacity. Our capital plan provides for the repayment of CMBS maturities
through 2011, and we are actively working with lenders on our other
property specific secured refinancings. We have made significant
progress in strengthening our balance sheet through these steps and
remain focused on ensuring we have the most flexible capital structure
to navigate the challenging economic environment."
"We are encouraged by the recent improving trends sequentially in sales,
traffic and occupancy in the mall portfolio and the continued strong
volume of leasing. Rental rates are still a challenge in this
environment, but we have made notable progress in strengthening
occupancy levels. These advances have carried over to backfilling junior
anchor vacancies that resulted from the 2008 retail bankruptcies, with
approximately 800,000 square feet of this available space now committed.
Our two recent new developments, The Promenade in Biloxi/Gulfport, MS
and Settlers Ridge in Pittsburgh, PA, opened in October at impressive
leased and committed levels in the mid-nineties. Despite the difficult
environment, we are pleased to report progress and stability in our
operating results."
PORTFOLIO OCCUPANCY June 30, September 30,
2009 2009 2008
Portfolio occupancy 88.0% 89.2% 92.2%
Mall portfolio 88.7% 89.9% 91.8%
Stabilized malls 89.1% 90.3% 92.1%
Non-stabilized malls 72.2% 74.0% 87.2%
Associated centers 88.7% 90.0% 95.1%
Community centers 78.5% 80.4% 92.1%
DISPOSITIONS
On October 16, 2009, the Company entered into an agreement to sell its
60% interest in Plaza Macae in Macae, Brazil to a third party for $24.2
million. The transaction is expected to close in the fourth quarter
2009. As a result of the anticipated sale the Company has recorded a
non-cash impairment charge of $1.1 million in third quarter 2009 results.
FINANCING
CBL closed the extension and modification of its two major credit
facilities including the $525 million secured credit facility and $560
million new secured credit facility, maintaining 100% lending capacity
on both. The $525 million facility was extended 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 $560 million facility was scheduled to mature in
August 2011 (assuming exercise of the remaining extension option) and
has been extended to April 2014.
DEVELOPMENT
On October 11, 2009, CBL celebrated the grand opening of The Promenade,
the 700,000 square foot power center located in D'Iberville
(Biloxi/Gulfport), MS. The first phase of The Promenade, totaling
approximately 480,000 square feet, opened more than 96% leased and
committed. The Promenade is anchored by Target, Best Buy, Dick's
Sporting Goods, Marshall's, PetSmart, and ULTA and features dozens of
specialty shops and restaurants.
On October 30, 2009, CBL celebrated the grand opening of Settlers Ridge,
a new 600,000 square foot regional open-air center in metropolitan
Pittsburgh (Robinson Township), PA. The first phase of Settlers Ridge
opened more than 94% leased and committed. Settlers Ridge is anchored by
a 150,000-square-foot Giant Eagle Market District supermarket, a
16-screen Cinemark stadium seating theatre, as well as LA Fitness, REI
and Barnes & Noble and offers a wide selection of specialty stores and
dining options.
OUTLOOK AND GUIDANCE
Based on today's outlook and the Company's third quarter results, the
Company is maintaining 2009 FFO guidance of $2.28 to $2.39 per share.
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 $ 0.28 $ 0.39
Adjust to fully converted shares from common shares (0.09 ) (0.13 )
Expected earnings per diluted, fully converted common 0.19 0.26
share
Add: depreciation and amortization 1.99 1.99
Add: noncontrolling interest in earnings of Operating 0.10 0.14
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, November 4, 2009, to discuss the third
quarter results. The number to call for this interactive teleconference
is (480) 629-9642. A seven-day replay of the conference call will be
available by dialing (303) 590-3030 and entering the passcode 4065656. 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., third 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 third 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=128015
on Wednesday, November 4, 2009, beginning at 11:00 a.m. ET. The online
replay will follow shortly after the call and continue through November
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 163 properties, including 88 regional malls/open-air centers.
The properties are located in 27 states and total 87.8 million square
feet including 3.0 million square feet of non-owned shopping centers
managed for third parties. CBL currently has one project under
construction totaling 500,000 square feet, The Pavilion at Port Orange
in Port Orange, FL. Headquartered in Chattanooga, TN, CBL has regional
offices in Boston (Waltham), MA, Dallas (Irving), TX, and St. Louis, MO.
Additional information can be found at cblproperties.com.
NON-GAAP FINANCIAL MEASURES
Funds From Operations
FFO is a widely used measure of the operating performance of real estate
companies that supplements net income determined in accordance with
GAAP. The National Association of Real Estate Investment Trusts
("NAREIT") defines FFO as net income (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 Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
REVENUES:
Minimum rents $ 168,765 $ 175,796 $ 511,193 $ 528,270
Percentage rents 2,851 3,260 9,259 9,866
Other rents 3,382 4,297 11,804 13,515
Tenant reimbursements 78,577 84,615 241,756 250,990
Management, development 1,312 11,512 5,392 16,934
and leasing fees
Other 7,881 5,925 20,948 19,245
Total revenues 262,768 285,405 800,352 838,820
EXPENSES:
Property operating 40,379 48,488 123,751 140,874
Depreciation and 71,261 81,962 225,365 230,106
amortization
Real estate taxes 25,812 23,658 74,415 71,735
Maintenance and repairs 13,219 15,440 42,629 48,359
General and administrative 8,808 9,623 31,180 33,268
Other 7,714 5,150 18,785 18,690
Total expenses 167,193 184,321 516,125 543,032
Income from operations 95,575 101,084 284,227 295,788
Interest and other income 1,246 2,225 4,189 7,134
Interest expense (71,120 ) (77,057 ) (215,847 ) (233,736 )
Impairment of investments (1,143 ) (5,778 ) (8,849 ) (5,778 )
Gain on sales of real 1,535 4,777 1,468 12,122
estate assets
Equity in earnings of 271 515 1,867 1,308
unconsolidated affiliates
Income tax benefit 1,358 (8,562 ) 603 (12,757 )
(provision)
Income from continuing 27,722 17,204 67,658 64,081
operations
Operating income of 112 126 132 1,462
discontinued operations
Gain (loss) on 10 676 (62 ) 3,788
discontinued operations
Net income 27,844 18,006 67,728 69,331
Net income attributable to
noncontrolling interests:
Operating partnership (4,758 ) (3,068 ) (11,173 ) (15,195 )
Other consolidated (6,497 ) (5,498 ) (19,208 ) (17,949 )
subsidiaries
Net income attributable to 16,589 9,440 37,347 36,187
the Company
Preferred dividends (5,455 ) (5,455 ) (16,364 ) (16,364 )
Net income available to $ 11,134 $ 3,985 $ 20,983 $ 19,823
common shareholders
Basic per share data
attributable to common
shareholders:
Income from continuing
operations, net of $ 0.08 $ 0.05 $ 0.21 $ 0.24
preferred dividends
Discontinued operations - 0.01 0.01 0.04
Net income available to $ 0.08 $ 0.06 $ 0.22 $ 0.28
common shareholders
Weighted average common 137,860 71,078 97,557 71,044
shares outstanding
Diluted per share data
attributable to common
shareholders:
Income from continuing
operations, net of $ 0.08 $ 0.05 $ 0.21 $ 0.24
preferred dividends
Discontinued operations - 0.01 0.01 0.04
Net income available to $ 0.08 $ 0.06 $ 0.22 $ 0.28
common shareholders
Weighted average common
and potential dilutive 137,899 71,215 97,593 71,227
common shares outstanding
Amounts attributable to
common shareholders:
Income from continuing
operations, net of $ 11,059 $ 3,521 $ 20,941 $ 16,797
preferred dividends
Discontinued operations 75 464 42 3,026
Net income available to $ 11,134 $ 3,985 $ 20,983 $ 19,823
common shareholders
The Company's calculation of FFO allocable to Company shareholders is as
follows:
(in thousands, except per
share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net income available to $ 11,134 $ 3,985 $ 20,983 $ 19,823
common shareholders
Noncontrolling interest in
earnings of operating 4,758 3,068 11,173 15,195
partnership
Depreciation and
amortization expense of:
Consolidated properties 71,261 81,962 225,365 230,106
Unconsolidated affiliates 7,428 7,741 22,492 21,112
Discontinued operations - - - 892
Non-real estate assets (241 ) (268 ) (731 ) (770 )
Noncontrolling interests'
share of depreciation and (120 ) (292 ) (385 ) (943 )
amortization
(Gain) loss on discontinued (10 ) (676 ) 62 (3,788 )
operations
Income tax provision on
disposal of discontinued - 256 - 1,439
operations
Funds from operations of the $ 94,210 $ 95,776 $ 278,959 $ 283,066
operating partnership
Funds from operations per $ 0.50 $ 0.78 $ 1.87 $ 2.30
diluted share
Weighted average common and
potential dilutive common
shares outstanding with 189,848 123,188 149,542 123,200
operating partnership units
fully converted
Reconciliation of FFO of the
operating partnership to FFO
allocable to Company
shareholders:
Funds from operations of the $ 94,210 $ 95,776 $ 278,959 $ 283,066
operating partnership
Percentage allocable to 72.63 % 57.76 % 65.25 % 57.75 %
Company shareholders (1)
Funds from operations
allocable to Company $ 68,425 $ 55,320 $ 182,021 $ 163,471
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 $ 742 $ 3,338 $ 4,413 $ 9,256
Lease termination fees per $ - $ 0.03 $ 0.03 $ 0.08
share
Straight-line rental income $ 2,859 $ 899 $ 6,160 $ 4,050
Straight-line rental income $ 0.02 $ 0.01 $ 0.04 $ 0.03
per share
Gains on outparcel sales $ 1,766 $ 6,695 $ 2,345 $ 14,243
Gains on outparcel sales per $ 0.01 $ 0.05 $ 0.02 $ 0.12
share
Amortization of acquired
above- and below-market $ 1,372 $ 1,677 $ 4,452 $ 6,785
leases
Amortization of acquired
above- and below-market $ 0.01 $ 0.01 $ 0.03 $ 0.06
leases per share
Amortization of debt $ 1,615 $ 1,982 $ 5,357 $ 5,918
premiums
Amortization of debt $ 0.01 $ 0.02 $ 0.04 $ 0.05
premiums per share
Income tax benefit $ 1,358 $ (8,306 ) $ 603 $ (11,318 )
(provision)
Income tax provision per $ 0.01 $ (0.07 ) $ - $ (0.09 )
share
Impairment of investments $ (1,143 ) $ (5,778 ) $ (8,849 ) $ (5,778 )
Impairment of investments $ (0.01 ) $ (0.05 ) $ (0.06 ) $ (0.05 )
per share
Same-Center Net Operating Income
(Dollars in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net income attributable to $ 16,589 $ 9,440 $ 37,347 $ 36,187
the Company
Adjustments:
Depreciation and 71,261 81,962 225,365 230,106
amortization
Depreciation and
amortization from 7,428 7,741 22,492 21,112
unconsolidated affiliates
Depreciation and
amortization from - - - 892
discontinued operations
Noncontrolling interests'
share of depreciation and (120 ) (292 ) (385 ) (943 )
amortization in other
consolidated subsidiaries
Interest expense 71,120 77,057 215,847 233,736
Interest expense from 7,398 7,038 22,760 20,872
unconsolidated affiliates
Noncontrolling interests'
share of interest expense in (233 ) (454 ) (695 ) (1,357 )
other consolidated
subsidiaries
Abandoned projects expense 1,203 32 1,346 2,944
Gain on sales of real estate (1,535 ) (4,777 ) (1,468 ) (12,122 )
assets
Gain on sales of real estate
assets of unconsolidated (231 ) (2,287 ) (877 ) (2,716 )
affiliates
Impairment of investments 1,143 5,778 8,849 5,778
Noncontrolling interests'
share of gain on sales of - 365 - 595
other consolidated
subsidiaries
Income tax (benefit) (1,358 ) 8,562 (603 ) 12,757
provision
Noncontrolling interests in
earnings of operating 4,758 3,068 11,173 15,195
partnership
(Gain) loss on discontinued (10 ) (676 ) 62 (3,788 )
operations
Operating partnership's 177,413 192,557 541,213 559,248
share of total NOI
General and administrative 8,808 9,623 31,180 33,268
expenses
Management fees and (4,953 ) (16,571 ) (15,599 ) (30,564 )
non-property level revenues
Operating partnership's 181,268 185,609 556,794 561,952
share of property NOI
NOI of non-comparable (4,289 ) (2,060 ) (11,732 ) (7,414 )
centers
Total same-center NOI $ 176,979 $ 183,549 $ 545,062 $ 554,538
Total same-center NOI -3.6 % -1.7 %
percentage change
Total same-center NOI $ 176,979 $ 183,549 $ 545,062 $ 554,538
Less lease termination fees (742 ) (3,338 ) (4,413 ) (9,134 )
Total same-center NOI,
excluding lease termination $ 176,237 $ 180,211 $ 540,649 $ 545,404
fees
Malls $ 159,535 $ 162,425 $ 489,995 $ 491,611
Associated centers 7,546 8,548 23,498 26,019
Community centers 3,389 4,016 10,283 11,149
Other 5,767 5,222 16,873 16,625
Total same-center NOI,
excluding lease termination $ 176,237 $ 180,211 $ 540,649 $ 545,404
fees
Percentage Change:
Malls -1.8 % -0.3 %
Associated centers -11.7 % -9.7 %
Community centers -15.6 % -7.8 %
Other 10.4 % 1.5 %
Total same-center NOI,
excluding lease termination -2.2 % -0.9 %
fees
Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
September 30, 2009
Fixed Rate Variable Rate Total
Consolidated $ 4,521,262 $ 1,157,299 $ 5,678,561
debt
Noncontrolling interests' share (23,370 ) (928 ) (24,298 )
of consolidated debt
Company's share of unconsolidated 405,597 193,711 599,308
affiliates' debt
Company's share of consolidated $ 4,903,489 $ 1,350,082 $ 6,253,571
and unconsolidated debt
Weighted average interest rate 5.84 % 1.91 % 4.99 %
September 30, 2008
Fixed Rate Variable Rate Total
Consolidated $ 4,499,557 $ 1,524,192 $ 6,023,749
debt
Noncontrolling interests' share (23,743 ) (919 ) (24,662 )
of consolidated debt
Company's share of unconsolidated 408,719 121,952 530,671
affiliates' debt
Company's share of consolidated $ 4,884,533 $ 1,645,225 $ 6,529,758
and unconsolidated debt
Weighted average interest rate 5.79 % 4.32 % 5.42 %
Debt-To-Total-Market
Capitalization Ratio as of
September 30, 2009
(In thousands, except stock Shares
price)
Outstanding Stock Price (1) Value
Common stock and operating 189,825 $ 9.70 $ 1,841,303
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 2,131,303
Company's share of total debt 6,253,571
Total market capitalization $ 8,384,874
Debt-to-total-market 74.6 %
capitalization ratio
(1) Stock price for common stock and operating partnership units equals the
closing price of the common stock on September 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 Nine Months Ended
September 30, September 30,
2009: Basic Diluted Basic Diluted
Weighted average 137,860 137,899 97,557 97,593
shares - EPS
Weighted average
operating 51,948 51,949 51,949 51,949
partnership
units
Weighted average 189,808 189,848 149,506 149,542
shares- FFO
2008:
Weighted average 71,078 71,215 71,044 71,227
shares - EPS
Weighted average
operating 51,976 51,973 51,975 51,973
partnership
units
Weighted average 123,054 123,188 123,019 123,200
shares- FFO
Dividend Payout Three Months Ended Nine Months Ended
Ratio
September 30, September 30,
2009 2008 2009 2008
Weighted average
dividend per $ 0.10370 $ 0.55047 $ 0.63661 $ 0.16514
share
FFO per diluted,
fully converted $ 0.50 $ 0.78 $ 1.87 $ 2.30
share
Dividend payout 20.7 % 70.6 % 34.0 % 7.2 %
ratio
Consolidated Balance Sheets
(Unaudited, in thousands except share data)
September 30, December 31,
2009 2008
ASSETS
Real estate assets:
Land $ 936,617 $ 902,504
Buildings and improvements 7,584,632 7,503,334
8,521,249 8,405,838
Accumulated depreciation (1,499,619 ) (1,310,173 )
7,021,630 7,095,665
Developments in progress 246,191 225,815
Net investment in real estate assets 7,267,821 7,321,480
Cash and cash equivalents 63,502 51,227
Cash in escrow - 2,700
Receivables:
Tenant, net of allowance 73,833 74,402
Other 11,088 12,145
Mortgage and other notes receivable 41,962 58,961
Investments in unconsolidated affiliates 193,655 207,618
Intangible lease assets and other assets 281,823 305,802
$ 7,933,684 $ 8,034,335
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Mortgage and other notes payable $ 5,678,561 $ 6,095,676
Accounts payable and accrued liabilities 288,206 329,991
Total liabilities 5,966,767 6,425,667
Commitments and contingencies
Redeemable noncontrolling interests:
Redeemable noncontrolling partnership interests 96,120 18,393
Redeemable noncontrolling preferred joint 421,514 421,279
venture interest
Total redeemable noncontrolling interests 517,634 439,672
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, 137,876,744 and 66,394,844 issued 1,379 664
and outstanding in 2009 and 2008, respectively
Additional paid-in capital 1,409,580 993,941
Accumulated other comprehensive loss (2,386 ) (12,786 )
Accumulated deficit (218,954 ) (193,307 )
Total shareholders' equity 1,189,631 788,524
Noncontrolling interests 259,652 380,472
Total equity 1,449,283 1,168,996
$ 7,933,684 $ 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