CBL Affirms 2014 FFO and Same-Center NOI Guidance
- Mall same-center NOI increased 1.6% in the first quarter of 2014
over the prior-year period.
- FFO per diluted share, as adjusted, was $0.52 for the first quarter
of 2014 compared with $0.53 for the prior-year period.
- Average gross rent per square foot for stabilized mall leases
signed in the first quarter of 2014 increased 9.5% over the prior
gross rent per square foot.
- Total portfolio occupancy increased 30 basis points to 92.5% and
same-center stabilized mall portfolio occupancy increased 10 basis
points to 92.2% in the first quarter of 2014 over the prior-year
period.
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the
first quarter ended March 31, 2014. 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 March 31, |
| | 2014 |
| 2013 |
|
Funds from Operations (“FFO”) per diluted share
| |
$
|
0.73
|
| |
$
|
0.53
|
|
FFO, as adjusted, per diluted share (1) | |
$
|
0.52
|
| |
$
|
0.53
|
(1) FFO, as adjusted, for the quarter ended March 31,
2014 excludes a partial legal settlement of $0.8 million and the
net gain on extinguishment of debt of $42.7 million primarily
related to the foreclosure of the mortgage loan secured by Citadel
Mall in January 2014.
|
|
|
CBL’s President and Chief Executive Officer Stephen Lebovitz commented,
“Results for 2014’s first quarter were in-line with our expectations and
encouraging given the impact from increased store closings and
bankruptcies as well as the harsh winter season. Looking forward, we
expect the stronger sales gains reported by retailers in April to
continue and offset the sluggish sales results in the first quarter. We
are on pace to deliver 2014 same-center NOI and FFO goals that we
recently outlined in our special update call earlier this month. As we
stated, our priorities include executing both our near-term operational
initiatives for 2014 and our longer-term strategic objectives to
position CBL for a higher sustainable growth rate.”
FFO allocable to common shareholders, as adjusted, for the first quarter
of 2014 was $87.7 million, or $0.52 per diluted share, compared with
$85.9 million, or $0.53 per diluted share, for the first quarter of
2013. FFO of the operating partnership for the first quarter of 2014 was
$102.9 million compared with $101.6 million, for the first quarter of
2013. FFO per share declined from the prior-year period primarily as a
result of dilution from the equity raised through the Company’s
At-The-Market (“ATM”) program in the second quarter 2013 and the sale of
assets in the third quarter 2013.
Net income attributable to common shareholders for the first quarter of
2014 was $44.1 million, or $0.26 per diluted share, compared with net
income of $19.1 million, or $0.12 per diluted share for the first
quarter of 2013.
Percentage change in same-center Net Operating Income (“NOI”)(1):
|
| Three Months
Ended March 31, |
| | 2014 |
|
Portfolio same-center NOI
| |
1.5%
|
|
Mall same-center NOI
| |
1.6%
|
|
|
(1) CBL's definition of NOI excludes the impact of
lease termination fees and certain non-cash items of straight line
rents and net amortization of acquired above and below market
leases. NOI is for real estate properties and excludes income of
the Company's subsidiary that provides maintenance, janitorial and
security services.
|
|
|
|
|
MAJOR VARIANCES IMPACTING SAME-CENTER NOI RESULTS FOR THE QUARTER
ENDED MARCH 31, 2014
-
Occupancy growth and contributions from new and renewal lease spreads
resulted in $4.0 million of growth in minimum rent compared with the
prior-year period.
-
Severe weather and a shortened sales calendar contributed to a decline
in percentage rents of $0.9 million compared with the
prior-year-period.
-
Operating expenses benefited from a favorable $1.1 million adjustment
to insurance reserves offset by an increase in bad debt and utility
expense of $1.5 million due to higher bankruptcy and store closure
activity.
-
Severe weather during the first quarter resulted in an increase in
snow removal expense of $1.4 million compared with the prior-year
period.
PORTFOLIO OPERATIONAL RESULTS
Occupancy:
|
| As of March 31, |
| | 2014 |
| 2013 |
|
Portfolio occupancy
| | 92.5% | |
92.2%
|
|
Mall portfolio
| | 92.3% | |
91.8%
|
|
Same-center stabilized malls
| | 92.2% | |
92.1%
|
|
Stabilized malls
| | 92.2% | |
91.7%
|
|
Non-stabilized malls (1) | | 96.9% | |
99.3%
|
|
Associated centers
| | 94.8% | |
93.5%
|
|
Community centers
| | 94.4% | |
96.0%
|
|
|
(1) Includes The Outlet Shoppes at Oklahoma City and
The Outlet Shoppes at Atlanta as of March 31, 2014. Includes The
Outlet Shoppes at Oklahoma City as of March 31, 2013.
|
|
|
New and Renewal Leasing Activity of Same Small Shop Space Less Than
10,000 Square Feet:
|
% Change in Average Gross Rent Per Square Foot
| |
|
|
|
|
|
|
|
|
|
| Three Months Ended
March 31, 2014 |
|
Stabilized Malls
| | | | | | | | | | 9.5% |
|
New leases
| | | | | | | | | | 37.5% |
|
Renewal leases
| | | | | | | | | | 2.4% |
|
|
Same-Store Sales Per Square Foot for Mall Tenants 10,000 Square Feet or
Less:
|
| Twelve Months Ended March 31, |
| |
| | 2014 |
| 2013 | | % Change |
|
Stabilized mall same-store sales per square foot
| |
$
|
351
| | |
$
|
363
| | |
(3.2
|
)%
|
|
|
TRANSACTIONS
Consistent with CBL’s disposition strategy, the Company has entered into
a binding contract for the sale of Lakeshore Mall in Sebring, FL for
$14.0 million. The sale is expected to close in May 2014.
In March 2014, the Company exercised its right to acquire the 12.0%
noncontrolling interest in Pearland Town Center from its joint venture
partner for $17.9 million.
FINANCING ACTIVITY
In January, the foreclosure of the mortgage loan secured by Citadel Mall
was completed. CBL recorded a gain on extinguishment of debt of $44.0
million related to the foreclosure.
During the first quarter 2014, CBL retired the $122 million loan secured
by St. Clair Square in Fairview Heights, IL. CBL recorded a prepayment
fee of $1.2 million related to the early payoff.
OUTLOOK AND GUIDANCE
The Company is affirming 2014 Adjusted FFO guidance in the range of
$2.22 - $2.26 per share. CBL is assuming same-center NOI growth of
1.0-2.0% in 2014.
The guidance also assumes the following:
-
Flat interest expense
- $2.0 million to $4.0 million of outparcel sales
-
0-25 basis point increase in total portfolio occupancy as well as
stabilized mall occupancy throughout 2014
-
The sale of Lakeshore Mall in May 2014
-
No additional unannounced acquisition or disposition activity
-
No unannounced capital markets activity - equity or debt
|
| Low |
| High |
|
Expected diluted earnings per common share
| |
$
|
0.56
| | |
$
|
0.60
| |
|
Adjust to fully converted shares from common shares
| |
(0.09
|
)
| |
(0.10
|
)
|
|
Expected earnings per diluted, fully converted common share
| |
0.47
| | |
0.50
| |
|
Depreciation and amortization
| |
1.79
| | |
1.79
| |
|
Noncontrolling interest in earnings of Operating Partnership | |
0.08
| | |
0.09
| |
|
Impairment of real estate
| |
0.09
|
| |
0.09
|
|
|
Expected FFO per diluted, fully converted common share
| |
$
|
2.43
| | |
$
|
2.47
| |
|
Net gain on debt extinguishment and litigation settlement
| |
(0.21
|
)
| |
(0.21
|
)
|
|
Expected adjusted FFO per diluted, fully converted common share
| |
$
|
2.22
|
| |
$
|
2.26
|
|
|
|
INVESTOR CONFERENCE CALL AND WEBCAST
CBL & Associates Properties, Inc. will conduct a conference call at
11:00 a.m. ET on Tuesday, April 29, 2014, to discuss its first quarter
results. The number to call for this interactive teleconference is (800)
736-4594 or (212) 231-2902. A replay of the conference call will be
available through May 6, 2014, by dialing (800) 633-8284 or (402)
977-9140 and entering the confirmation number 21706208. 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., first 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 webcast and rebroadcast of its
2014 first quarter earnings release conference call. The live broadcast
of the quarterly conference call will be available online at
cblproperties.com on Tuesday, April 29, 2014 beginning at 11:00 a.m. ET.
The online replay will follow shortly after the call and continue for
one year.
ABOUT CBL & ASSOCIATES PROPERTIES, INC.
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 150 properties, including 91 regional malls/open-air centers.
The properties are located in 30 states and total 86.9 million square
feet including 6.3 million square feet of non-owned shopping centers
managed for third parties. Headquartered in Chattanooga, TN, CBL has
regional offices in Boston (Waltham), MA, Dallas (Irving), TX, and St.
Louis, MO. Additional information can be found at cblproperties.com.
NON-GAAP FINANCIAL MEASURES
Funds From Operations
FFO is a widely used measure of the operating performance of real estate
companies that supplements net income (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 depreciable operating
properties and impairment losses of depreciable 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. We define FFO
allocable to 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.
As described above, during the first quarter of 2014, the Company
recognized a $42.7 million net gain on the extinguishment of in
connection with the foreclosure of the mortgage loan encumbering Citadel
Mall and the early retirement of the mortgage loan encumbering St. Clair
Square. Additionally, the Company received income of $0.8 million as a
partial settlement of ongoing litigation. Considering the significance
and nature of these items, the Company believes it is important to
identify their impact on 2014 FFO measures for readers to have a
complete understanding on the Company’s results of operations.
Therefore, the Company has also presented adjusted FFO measures for 2014
excluding these items.
Same-Center Net Operating Income
NOI is a supplemental measure of the operating performance of the
Company’s shopping centers and other properties. The Company defines NOI
as property 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.
Since NOI includes only those revenues and expenses related to the
operations of its shopping center and other 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. The Company’s
calculation of same-center NOI also excludes lease termination income,
straight-line rent adjustments, and amortization of above and below
market lease intangibles in order to enhance the comparability of
results from one period to another, as these items can be impacted by
one-time events that 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 and other properties. A reconciliation of
same-center NOI to net income is located at the end of this earnings
release.
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.
|
|
|
|
|
|
|
|
|
|
CBL & Associates Properties, Inc.
Consolidated
Statements of Operations
(Unaudited; in thousands, except
per share amounts)
|
|
|
|
| Three Months
Ended March 31, |
| | 2014 |
| 2013 |
| REVENUES: | | | | | | |
|
Minimum rents
| | $ | 169,277 | | |
$
|
165,418
| |
|
Percentage rents
| | 3,606 | | |
4,716
| |
|
Other rents
| | 5,282 | | |
5,144
| |
|
Tenant reimbursements
| | 72,218 | | |
72,282
| |
|
Management, development and leasing fees
| | 3,135 | | |
3,075
| |
|
Other
| | 7,725 |
| |
7,847
|
|
|
Total revenues
| | 261,243 |
| |
258,482
|
|
| OPERATING EXPENSES: | | | | | | |
|
Property operating
| | 40,011 | | |
39,133
| |
|
Depreciation and amortization
| | 69,083 | | |
69,056
| |
|
Real estate taxes
| | 21,347 | | |
22,416
| |
|
Maintenance and repairs
| | 16,165 | | |
14,190
| |
|
General and administrative
| | 14,773 | | |
13,424
| |
|
Loss on impairment
| | 17,150 | | |
—
| |
|
Other
| | 6,545 |
| |
6,656
|
|
|
Total operating expenses
| | 185,074 | | |
164,875
| |
| Income from operations | | 76,169 | | |
93,607
| |
|
Interest and other income
| | 1,528 | | |
727
| |
|
Interest expense
| | (60,506 | ) | |
(59,824
|
)
|
|
Gain on extinguishment of debt
| | 42,660 | | |
—
| |
|
Gain on sales of real estate assets
| | 1,154 | | |
543
| |
|
Equity in earnings of unconsolidated affiliates
| | 3,684 | | |
2,619
| |
|
Income tax (provision) benefit
| | (397 | ) | |
174
|
|
| Income from continuing operations | | 64,292 | | |
37,846
| |
|
Operating income (loss) of discontinued operations
| | (499 | ) | |
1,258
| |
|
Gain (loss) on discontinued operations
| | (17 | ) | |
781
|
|
| Net income | | 63,776 | | |
39,885
| |
|
Net income attributable to noncontrolling interests in:
| | | | | | |
|
Operating Partnership
| | (7,651 | ) | |
(3,491
|
)
|
|
Other consolidated subsidiaries
| | (831 | ) | |
(6,081
|
)
|
| Net income attributable to the Company | | 55,294 | | |
30,313
| |
|
Preferred dividends
| | (11,223 | ) | |
(11,223
|
)
|
| Net income attributable to common shareholders | | $ | 44,071 |
| |
$
|
19,090
|
|
| | | | | |
|
| Basic and diluted per share data attributable to common
shareholders: | | | |
|
Income from continuing operations, net of preferred dividends
| | $ | 0.26 | | |
$
|
0.11
| |
|
Discontinued operations
| | — |
| |
0.01
|
|
|
Net income attributable to common shareholders
| | $ | 0.26 |
| |
$
|
0.12
|
|
|
Weighted-average common and potential dilutive common shares
outstanding
| | 170,196 | | |
161,540
| |
| | | | | |
|
| Amounts attributable to common shareholders: | | | | | | |
|
Income from continuing operations, net of preferred dividends
| | $ | 44,511 | | |
$
|
17,366
| |
|
Discontinued operations
| | (440 | ) | |
1,724
|
|
|
Net income attributable to common shareholders
| | $ | 44,071 |
| |
$
|
19,090
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company's calculation of FFO allocable to Company
shareholders is as follows:
(in thousands, except per
share data)
|
|
|
|
| Three Months
Ended March 31, |
| | 2014 |
|
| 2013 |
|
|
Net income attributable to common shareholders
| | $ | 44,071 | | |
$
|
19,090
| |
|
Noncontrolling interest in income of Operating Partnership | | 7,651 | | |
3,491
| |
|
Depreciation and amortization expense of:
| | | | |
|
Consolidated properties
| | 69,083 | | |
69,056
| |
|
Unconsolidated affiliates
| | 9,861 | | |
9,948
| |
|
Discontinued operations
| | — | | |
2,606
| |
|
Non-real estate assets
| | (594 | ) | |
(474
|
)
|
|
Noncontrolling interests' share of depreciation and amortization
| | (1,533 | ) | |
(1,607
|
)
|
|
Loss on impairment
| | 17,831 | | |
—
| |
|
Gain on depreciable property
| | 18 | | |
(2
|
)
|
|
Gain on discontinued operations, net of taxes
| | — |
| |
(485
|
)
|
| Funds from operations of the Operating Partnership | | 146,388 | | |
101,623
| |
|
Litigation settlement
| | (800 | ) | |
—
| |
|
Gain on extinguishment of debt
| | (42,660 | ) | |
—
|
|
| Funds from operations of the Operating Partnership, as adjusted | | $ | 102,928 |
| |
$
|
101,623
|
|
| | | |
|
| Funds from operations per diluted share | | $ | 0.73 |
| |
$
|
0.53
|
|
| | | |
|
| Funds from operations, as adjusted, per diluted share | | $ | 0.52 |
| |
$
|
0.53
|
|
| | | |
|
Weighted average common and potential dilutive common shares
outstanding with Operating Partnership units fully converted
| | 199,741 | | |
191,085
| |
| | | |
|
Reconciliation of FFO of the operating partnership to FFO
allocable to common shareholders: | | | | |
| Funds from operations of the Operating Partnership | | $ | 146,388 | | |
$
|
101,623
| |
|
Percentage allocable to common shareholders (1) | | 85.21 | % | |
84.54
|
%
|
| Funds from operations allocable to common shareholders | | $ | 124,737 |
| |
$
|
85,912
|
|
| | | |
|
| Funds from operations of the Operating Partnership, as adjusted | | $ | 102,928 | | |
$
|
101,623
| |
|
Percentage allocable to common shareholders (1) | | 85.21 | % | |
84.54
|
%
|
| Funds from operations allocable to common shareholders, as
adjusted | | $ | 87,705 |
| |
$
|
85,912
|
|
| | | |
|
| (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 outstanding
on
page 11.
|
|
|
|
|
|
|
|
|
|
|
|
|
| SUPPLEMENTAL FFO INFORMATION: |
|
| | |
| | |
|
Lease termination fees
| | | $ | 932 | | | |
$
|
813
|
|
Lease termination fees per share
| | | $ | — | | | |
$
|
—
|
| | | | | | |
|
|
Straight-line rental income
| | | $ | 482 | | | |
$
|
1,090
|
|
Straight-line rental income per share
| | | $ | — | | | |
$
|
0.01
|
| | | | | | |
|
|
Gains on outparcel sales
| | | $ | 1,145 | | | |
$
|
543
|
|
Gains on outparcel sales per share
| | | $ | 0.01 | | | |
$
|
—
|
| | | | | | |
|
|
Net amortization of acquired above- and below-market leases
| | | $ | 217 | | | |
$
|
586
|
|
Net amortization of acquired above- and below-market leases per share
| | | $ | — | | | |
$
|
—
|
| | | | | | |
|
|
Net amortization of debt premiums and discounts
| | | $ | 541 | | | |
$
|
376
|
|
Net amortization of debt premiums and discounts per share
| | | $ | — | | | |
$
|
—
|
| | | | | | |
|
|
Income tax (provision) benefit
| | | $ | (397 | ) | | |
$
|
174
|
|
Income tax (provision) benefit per share
| | | $ | — | | | |
$
|
—
|
| | | | | | |
|
|
Loss on impairment from continuing operations
| | | $ | (17,150 | ) | | |
$
|
—
|
|
Loss on impairment from continuing operations per share
| | | $ | (0.09 | ) | | |
$
|
—
|
| | | | | | |
|
|
Loss on impairment from discontinued operations
| | | $ | (681 | ) | | |
$
|
—
|
|
Loss on impairment from discontinued operations per share
| | | $ | — | | | |
$
|
—
|
| | | | | | |
|
|
Gain on extinguishment of debt from continuing operations
| | | $ | 42,660 | | | |
$
|
—
|
|
Gain on extinguishment of debt from continuing operations per share
| | | $ | 0.21 | | | |
$
|
—
|
| | | | | | |
|
|
Litigation settlement
| | | $ | 800 | | | |
$
|
—
|
|
Litigation settlement per share
| | | $ | — | | | |
$
|
—
|
|
|
|
|
|
|
| | | As of March 31, |
| | | 2014 | |
| 2013 |
|
Straight-line rent receivable
| | | $ | 62,971 | | | |
$
|
62,611
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same-Center Net Operating Income
(Dollars in thousands)
|
|
|
|
|
| Three Months
Ended March 31, |
| | | 2014 |
|
|
| 2013 |
|
|
Net income attributable to the Company
| | | $ | 55,294 | | | |
$
|
30,313
| |
|
Adjustments:
| | | | | | |
|
Depreciation and amortization
| | | 69,083 | | | |
69,056
| |
|
Depreciation and amortization from unconsolidated affiliates
| | | 9,861 | | | |
9,948
| |
|
Depreciation and amortization from discontinued operations
| | | — | | | |
2,606
| |
Noncontrolling interests' share of depreciation and amortization
in other consolidated subsidiaries
| | | (1,533 | ) | | |
(1,607
|
)
|
|
Interest expense
| | | 60,506 | | | |
59,824
| |
|
Interest expense from unconsolidated affiliates
| | | 9,491 | | | |
10,072
| |
Noncontrolling interests' share of interest expense in other
consolidated subsidiaries
| | | (1,311 | ) | | |
(976
|
)
|
|
Abandoned projects expense
| | | 1 | | | |
2
| |
|
Gain on sales of real estate assets
| | | (1,154 | ) | | |
(543
|
)
|
|
Gain on extinguishment of debt
| | | (42,660 | ) | | |
—
| |
|
Loss on impairment
| | | 17,150 | | | |
—
| |
|
Loss on impairment from discontinued operations
| | | 681 | | | |
—
| |
|
Income tax provision (benefit)
| | | 397 | | | |
(174
|
)
|
|
Lease termination fees
| | | (932 | ) | | |
(813
|
)
|
|
Straight-line rent and above- and below-market lease amortization
| | | (698 | ) | | |
(1,675
|
)
|
Net income attributable to noncontrolling interest in earnings of
operating partnership
| | | 7,651 | | | |
3,491
| |
|
(Gain) loss on discontinued operations
| | | 17 | | | |
(781
|
)
|
|
General and administrative expenses
| | | 14,773 | | | |
13,424
| |
|
Management fees and non-property level revenues
| | | (6,555 | ) | | |
(6,785
|
)
|
|
Company's share of property NOI
| | | 190,062 | | | |
185,382
| |
|
Non-comparable NOI
| | | (18,953 | ) | | |
(16,843
|
)
|
|
Total same-center NOI (1) | | | 171,109 |
| | |
168,539
|
|
|
Total same-center NOI percentage change
| | | 1.5 | % | | | |
| | | | | |
|
|
Malls
| | | 156,175 | | | |
153,756
| |
|
Associated centers
| | | 8,212 | | | |
8,284
| |
|
Community centers
| | | 4,805 | | | |
4,636
| |
|
Offices and other
| | | 1,917 |
| | |
1,863
|
|
|
Total same-center NOI (1) | | | $ | 171,109 |
| | |
$
|
168,539
|
|
| | | | | |
|
| Percentage Change: | | | | | | |
|
Malls
| | | 1.6 | % | | | |
|
Associated centers
| | | (0.9 | )% | | | |
|
Community centers
| | | 3.6 | % | | | |
|
Offices and other
| | | 2.9 | % | | | |
| Total same-center NOI (1) | | | 1.5 | % | | | |
| | | | | |
|
(1) CBL defines NOI as property operating revenues
(rental revenues, tenant reimbursements and other income), less
property operating expenses (property operating, real estate taxes
and maintenance and repairs). Same-center NOI excludes lease
termination income, straight-line rent adjustments, and
amortization of above and below market lease intangibles.
Same-center NOI is for real estate properties and does not include
the results of operations of the Company's subsidiary that
provides janitorial, security and maintenance services. We include
a property in our same-center pool when we own all or a portion of
the property as of March 31, 2014, and we owned it and it was in
operation for both the entire preceding calendar year and the
current year-to-date reporting period ending March 31, 2014. New
properties are excluded from same-center NOI, until they meet this
criteria. The only properties excluded from the same-center pool
that would otherwise meet this criteria are non-core properties,
properties under major redevelopment, properties where we intend
to renegotiate the terms of the debt secured by the related
property and properties included in discontinued operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
Company's Share of Consolidated and Unconsolidated Debt
(Dollars
in thousands)
|
|
|
|
| As of March 31, 2014 |
| | Fixed Rate |
| Variable Rate |
| Total |
|
Consolidated debt
| | $ | 3,887,298 | | | $ | 912,519 | | | $ | 4,799,817 | |
|
Noncontrolling interests' share of consolidated debt
| | (86,931 | ) | | (5,653 | ) | | (92,584 | ) |
|
Company's share of unconsolidated affiliates' debt
| | 651,550 |
| | 103,096 |
| | 754,646 |
|
|
Company's share of consolidated and unconsolidated debt
| | $ | 4,451,917 |
| | $ | 1,009,962 |
| | $ | 5,461,879 |
|
|
Weighted average interest rate
| | 5.47 | % | | 1.72 | % | | 4.78 | % |
| | | | | |
|
| | As of March 31, 2013 |
| | Fixed Rate | | Variable Rate | | Total |
|
Consolidated debt
| |
$
|
3,712,645
| | |
$
|
967,876
| | |
$
|
4,680,521
| |
|
Noncontrolling interests' share of consolidated debt
| |
(89,079
|
)
| |
—
| | |
(89,079
|
)
|
|
Company's share of unconsolidated affiliates' debt
| |
658,942
|
| |
129,784
|
| |
788,726
|
|
|
Company's share of consolidated and unconsolidated debt
| |
$
|
4,282,508
|
| |
$
|
1,097,660
|
| |
$
|
5,380,168
|
|
|
Weighted average interest rate
| |
5.40
|
%
| |
2.39
|
%
| |
4.79
|
%
|
|
|
|
|
Debt-To-Total-Market Capitalization Ratio as of March 31, 2014
(In
thousands, except stock price)
|
|
|
| | Shares
Outstanding | | Stock Price (1) | | Value |
|
Common stock and operating partnership units
| |
199,812
| | |
$
|
17.75
| | |
$
|
3,546,663
| |
|
7.375% Series D Cumulative Redeemable Preferred Stock
| |
1,815
| | |
250.00
| | |
453,750
| |
|
6.625% Series E Cumulative Redeemable Preferred Stock
| |
690
| | |
250.00
| | |
172,500
|
|
|
Total market equity
| | | | | | | |
4,172,913
| |
|
Company's share of total debt
| | | | | | | |
5,461,879
|
|
|
Total market capitalization
| | | | | | | |
$
|
9,634,792
|
|
|
Debt-to-total-market capitalization ratio
| | | | | | | |
56.7
|
%
|
|
|
(1) Stock price for common stock and operating
partnership units equals the closing price of the common stock on
March 31, 2014. 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 March 31, |
| 2014: | | | Basic |
|
| Diluted |
|
Weighted average shares - EPS
| | | 170,196 | | | | 170,196 | |
|
Weighted average Operating Partnership units
| | | 29,545 |
| | | 29,545 |
|
|
Weighted average shares- FFO
| | | 199,741 |
| | | 199,741 |
|
| | | | | |
|
| 2013: | | | | | | |
|
Weighted average shares - EPS
| | |
161,540
| | | |
161,540
| |
|
Weighted average Operating Partnership units
| | |
29,545
|
| | |
29,545
|
|
|
Weighted average shares- FFO
| | |
191,085
|
| | |
191,085
|
|
|
|
|
|
Dividend Payout Ratio |
|
|
| | | Three Months
Ended March 31, |
| | | 2014 |
| | | 2013 |
|
|
Weighted average cash dividend per share
| | | $ | 0.25312 | | | |
$
|
0.23864
| |
|
FFO as adjusted, per diluted fully converted share
| | | $ | 0.52 |
| | |
$
|
0.53
|
|
|
Dividend payout ratio
| | | 48.7 | % | | |
45.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated Balance Sheets
(Unaudited; in thousands, except share data)
|
|
|
| As of |
| | | March 31, 2014 |
|
| December 31, 2013 |
| ASSETS | | | | | | |
|
Real estate assets:
| | | | | | |
|
Land
| | | $ | 854,711 | | |
$
|
858,619
|
|
Buildings and improvements
| | | 7,069,967 | | |
7,125,512
|
| | | 7,924,678 | | |
7,984,131
|
|
Accumulated depreciation
| | | (2,069,964) | | |
(2,056,357)
|
| | | 5,854,714 | | |
5,927,774
|
|
Developments in progress
| | | 157,879 | | |
139,383
|
|
Net investment in real estate assets
| | | 6,012,593 | | |
6,067,157
|
|
Cash and cash equivalents
| | | 56,190 | | |
65,500
|
|
Receivables:
| | | | | | |
Tenant, net of allowance for doubtful accounts of $2,251 and
$2,379 in 2014 and 2013, respectively
| | | 76,111 | | |
79,899
|
Other, net of allowance for doubtful accounts of $1,249 and $1,241
in 2014 and 2013, respectively
| | | 19,001 | | |
23,343
|
|
Mortgage and other notes receivable
| | | 30,201 | | |
30,424
|
|
Investments in unconsolidated affiliates
| | | 276,710 | | |
277,146
|
|
Intangible lease assets and other assets
| | | 233,043 | | |
242,502
|
| | | $ | 6,703,849 | | |
$
|
6,785,971
|
| | | | | |
|
| LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | | | |
|
Mortgage and other indebtedness
| | | $ | 4,799,817 | | |
$
|
4,857,523
|
|
Accounts payable and accrued liabilities
| | | 305,924 | | |
333,875
|
|
Total liabilities
| | | 5,105,741 | | |
5,191,398
|
|
Commitments and contingencies
| | | | | | |
|
Redeemable noncontrolling partnership interests
| | | 34,881 | | |
34,639
|
|
Shareholders' equity:
| | | | | | |
|
Preferred stock, $.01 par value, 15,000,000 shares authorized:
| | | | | | |
7.375% Series D Cumulative Redeemable Preferred Stock, 1,815,000
shares outstanding
| | | 18 | | |
18
|
6.625% Series E Cumulative Redeemable Preferred Stock, 690,000
shares outstanding
| | | 7 | | |
7
|
Common stock, $.01 par value, 350,000,000 shares authorized,
170,266,206 and 170,048,144 issued and outstanding in 2014 and
2013, respectively
| | | 1,703 | | |
1,700
|
|
Additional paid-in capital
| | | 1,967,970 | | |
1,967,644
|
|
Accumulated other comprehensive income
| | | 7,754 | | |
6,325
|
|
Dividends in excess of cumulative earnings
| | | (568,426) | | |
(570,781)
|
|
Total shareholders' equity
| | | 1,409,026 | | |
1,404,913
|
|
Noncontrolling interests
| | | 154,201 | | |
155,021
|
|
Total equity
| | | 1,563,227 | | |
1,559,934
|
| | | $ | 6,703,849 | | |
$
|
6,785,971
|
| | | | | | | |
|
| | | | | | | |
|
CBL & Associates Properties, Inc.
Katie Reinsmidt, 423-490-8301
Senior
Vice President - Investor Relations/Corporate Investments
katie_reinsmidt@cblproperties.com
Source: CBL & Associates Properties, Inc.