CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
CBL & Associates Properties, Inc. (NYSE:CBL):
- Same-center sales per square foot increased 6.9% during the first
quarter 2015 over the prior-year period.
- Average gross rent per square foot for stabilized mall leases
signed in the first quarter 2015 increased 10.6% over the prior gross
rent per square foot.
- FFO per diluted share, as adjusted, was $0.52 for the first quarter
2015, consistent with FFO in the prior-year period.
- Same-center NOI for the first quarter increased 0.6% in the Total
Portfolio and was flat in the Mall Portfolio compared with the
prior-year period.
- Total portfolio occupancy was 90.9% as of March 31, 2015, compared
with 92.5% as of March 31, 2014.
CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the
first quarter ended March 31, 2015. 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, |
| | | 2015 |
|
| 2014 |
Funds from Operations (“FFO”) per diluted share
| | | $ | 0.62 | | |
$
|
0.73
|
|
FFO, as adjusted, per diluted share (1) | | | $ | 0.52 | | |
$
|
0.52
|
|
|
| (1) FFO, as adjusted, for the quarter ended March 31,
2015, excludes a partial litigation settlement, net of related
expenses, of $4.7 million and a $16.6 million gain on investment
related to the sale of marketable securities. FFO, as adjusted, for
the quarter ended March 31, 2014, excludes a partial litigation
settlement of $0.8 million and a 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,
“First quarter highlights include an impressive 7% increase in
same-center sales and the continuation of double-digit lease spreads.
Same-center NOI and occupancy were impacted by the lost income from
bankruptcy-related store closures; however, continued healthy demand
from higher quality retailers will result in a stronger tenant mix
across the CBL portfolio.
“We are making solid progress in executing our disposition program. We
closed on the sale of one mall this week and expect to make additional
announcements in the near future. We are growing our portfolio with
Fremaux Town Center Phase II and Ambassador Town Center now under
construction as well as expansions to our Atlanta and Bluegrass outlets.
Redevelopments, such as the former Sears at CoolSprings Galleria and
Fayette Mall, bring exciting new retailers and restaurants to our
centers and enhance our long-term growth rate.”
FFO allocable to common shareholders, as adjusted, for the first quarter
2015 was $87.9 million, or $0.52 per diluted share, compared with $87.7
million, or $0.52 per diluted share, for the first quarter 2014. FFO of
the Operating Partnership, as adjusted, for the first quarter 2015 was
$102.9 million compared with $102.9 million for the first quarter of
2014.
Net income attributable to common shareholders for the first quarter of
2015 was $34.9 million, or $0.20 per diluted share, compared with net
income of $44.1 million, or $0.26 per diluted share, for the first
quarter of 2014.
Percentage change in same-center Net Operating Income (“NOI”)(1):
|
|
| |
| | | Three Months
Ended
March 31, 2015 |
|
Portfolio same-center NOI
| | | 0.6 | % |
|
Mall same-center NOI
| | | 0.0 | % |
|
|
(1) CBL’s definition of same-center 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, 2015
-
New leasing and positive renewal spreads contributed to a $0.9 million
increase in same-center minimum rents. Minimum rents were impacted by
lost income from bankruptcy related store closures.
-
Percentage rents increased by $0.4 million due to positive sales
growth.
-
Tenant reimbursement of real estate tax expense increased by $1.4
million, offset by a $2.3 million increase in real estate tax expense.
-
Property operating expense increased by $0.8 million, primarily as a
result of a negative variance of $1.1 million due to an insurance
adjustment in the prior year period and a $0.4 million increase in bad
debt expense.
-
Maintenance and repairs declined by $1.2 million, primarily as a
result of a $0.5 million decline in snow removal expense and a decline
in other expenses.
PORTFOLIO OPERATIONAL RESULTS
Occupancy:
|
|
| |
| | | As of March 31, |
| | | 2015 |
|
| 2014 |
|
Portfolio occupancy
| | | 90.9 | % | | |
92.5
|
%
|
|
Mall portfolio
| | | 89.8 | % | | |
92.3
|
%
|
|
Same-center stabilized malls
| | | 89.5 | % | | |
92.6
|
%
|
|
Stabilized malls
| | | 89.5 | % | | |
92.2
|
%
|
|
Non-stabilized malls (1) | | | 97.1 | % | | |
96.9
|
%
|
|
Associated centers
| | | 94.2 | % | | |
94.8
|
%
|
|
Community centers
| | | 97.5 | % | | |
94.4
|
%
|
|
|
| (1) Represents occupancy for Fremaux Town Center, The
Outlet Shoppes at Atlanta and The Outlet Shoppes of the Bluegrass in
2015 and in 2014 represents The Outlet Shoppes of Oklahoma City and
The Outlet Shoppes at Atlanta.
|
|
|
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, 2015 |
|
Stabilized Malls
| | | 10.6 | % |
|
New leases
| | | 35.1 | % |
|
Renewal leases
| | | 3.4 | % |
| | | |
|
Same-Center Sales Per Square Foot for Mall Tenants 10,000 Square Feet or
Less:
|
|
| |
|
| |
| | | Twelve Months Ended March 31, | | | |
| | | 2015 |
|
| 2014 | | | % Change |
|
Stabilized mall same-center sales per square foot
| | | $ | 365 | | |
$
|
355
| | |
3
|
%
|
| | | | | | | | | | | |
|
TRANSACTIONS
Subsequent to the quarter-end, CBL completed the sale of Madison Square
Mall in Huntsville, AL for $5.0 million, cash.
CBL has additional transactions in various stages. Further updates on
the disposition program will be provided on its conference call.
OUTLOOK AND GUIDANCE
Based on its current outlook, the Company is reiterating FFO guidance to
the range of $2.24 - $2.31 per diluted share. CBL’s guidance assumes a
same-center NOI growth range of 0% -2.0% in 2015.
The guidance also assumes the following:
- $2.0 million to $4.0 million of outparcel sales;
-
No additional unannounced acquisition or disposition activity;
-
No unannounced capital markets activity.
|
|
| |
|
| |
| | | Low | | | High |
|
Expected diluted earnings per common share
| | |
$
|
0.75
| | | |
$
|
0.82
| |
|
Adjust to fully converted shares from common shares
| | |
(0.10
|
)
| | |
(0.11
|
)
|
|
Expected earnings per diluted, fully converted common share
| | |
0.65
| | | |
0.71
| |
|
Add: depreciation and amortization
| | |
1.59
| | | |
1.59
| |
|
Add: noncontrolling interest in earnings of Operating Partnership | | |
0.10
| | | |
0.11
| |
|
Adjustment for gain on investment
| | |
(0.08
|
)
| | |
(0.08
|
)
|
|
Adjustment for litigation settlement
| | |
(0.02
|
)
| | |
(0.02
|
)
|
|
Expected adjusted FFO per diluted, fully converted common share
| | |
$
|
2.24
|
| | |
$
|
2.31
|
|
| | | | | | | | | |
|
INVESTOR CONFERENCE CALL AND WEBCAST
CBL & Associates Properties, Inc. will conduct a conference call at
11:00 a.m. ET on Wednesday, April 29, 2015, to discuss its first quarter
results. The number to call for this interactive teleconference is (888)
317-6003 or (412) 317-6061, and entering confirmation code 3004179. A
replay of the conference call will be available through May 7, 2015, by
dialing (877) 344-7529 or (412) 317-0088 and entering the confirmation
number, 10061512. 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
2015 first quarter earnings release conference call. The live broadcast
of the quarterly conference call will be available online at cblproperties.com
on Wednesday, April 29, 2015, 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 148 properties, including 89 regional malls/open-air centers.
The properties are located in 30 states and total 83.6 million square
feet including 6.5 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 2015, the Company
recognized a $16.6 million gain on investment related to the sale of
marketable securities and received income of $4.7 million, net of
related expense, as a partial settlement of ongoing litigation. During
the first quarter of 2014, the Company recognized a $42.7 million net
gain on the extinguishment of debt 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
its FFO measures for readers to have a complete understanding of the
Company’s results of operations. Therefore, the Company has also
presented adjusted FFO measures excluding these items from the
applicable periods.
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, |
| | | 2015 |
|
| 2014 |
| REVENUES: | | | | | | |
|
Minimum rents
| | | $ | 169,081 | | | |
$
|
169,277
| |
|
Percentage rents
| | | 4,137 | | | |
3,606
| |
|
Other rents
| | | 5,171 | | | |
5,282
| |
|
Tenant reimbursements
| | | 72,133 | | | |
72,218
| |
|
Management, development and leasing fees
| | | 2,778 | | | |
3,135
| |
|
Other
| | | 7,609 |
| | |
7,725
|
|
|
Total revenues
| | | 260,909 |
| | |
261,243
|
|
| OPERATING EXPENSES: | | | | | | |
|
Property operating
| | | 38,904 | | | |
40,011
| |
|
Depreciation and amortization
| | | 76,266 | | | |
69,083
| |
|
Real estate taxes
| | | 22,785 | | | |
21,347
| |
|
Maintenance and repairs
| | | 14,216 | | | |
16,165
| |
|
General and administrative
| | | 17,230 | | | |
14,773
| |
|
Loss on impairment
| | | — | | | |
17,150
| |
|
Other
| | | 6,476 |
| | |
6,545
|
|
|
Total operating expenses
| | | 175,877 |
| | |
185,074
|
|
| Income from operations | | | 85,032 | | | |
76,169
| |
|
Interest and other income
| | | 5,274 | | | |
1,528
| |
|
Interest expense
| | | (59,157 | ) | | |
(60,506
|
)
|
|
Gain on extinguishment of debt
| | | — | | | |
42,660
| |
|
Gain on investment
| | | 16,560 | | | |
—
| |
|
Equity in earnings of unconsolidated affiliates
| | | 3,823 | | | |
3,684
| |
|
Income tax (provision) benefit
| | | 916 |
| | |
(397
|
)
|
| Income from continuing operations before gain on sales of real
estate assets | | | 52,448 | | | |
63,138
| |
|
Gain on sales of real estate assets
| | | 757 |
| | |
1,154
|
|
| Income from continuing operations | | | 53,205 | | | |
64,292
| |
|
Operating loss of discontinued operations
| | | — | | | |
(499
|
)
|
|
Loss on discontinued operations
| | | — |
| | |
(17
|
)
|
| Net income | | | 53,205 | | | |
63,776
| |
|
Net income attributable to noncontrolling interests in:
| | | | | | |
|
Operating Partnership
| | | (6,172 | ) | | |
(7,651
|
)
|
|
Other consolidated subsidiaries
| | | (869 | ) | | |
(831
|
)
|
| Net income attributable to the Company | | | 46,164 | | | |
55,294
| |
|
Preferred dividends
| | | (11,223 | ) | | |
(11,223
|
)
|
| Net income attributable to common shareholders | | | $ | 34,941 |
| | |
$
|
44,071
|
|
| | | | | |
|
| Basic per share data attributable to common shareholders: | | | | | | |
|
Income from continuing operations, net of preferred dividends
| | | $ | 0.21 | | | |
$
|
0.26
| |
|
Discontinued operations
| | | 0.00 |
| | |
0.00
|
|
|
Net income attributable to common shareholders
| | | $ | 0.21 |
| | |
$
|
0.26
|
|
|
Weighted-average common shares outstanding
| | | 170,420 | | | |
170,196
| |
| | | | | |
|
| Diluted per share data attributable to common shareholders: | | | | | | |
|
Income from continuing operations, net of preferred dividends
| | | $ | 0.20 | | | |
$
|
0.26
| |
|
Discontinued operations
| | | 0.00 |
| | |
0.00
|
|
|
Net income attributable to common shareholders
| | | $ | 0.20 |
| | |
$
|
0.26
|
|
|
Weighted-average common and potential dilutive common shares
outstanding
| | | 170,510 | | | |
170,196
| |
| | | | | |
|
| Amounts attributable to common shareholders: | | | | | | |
|
Income from continuing operations, net of preferred dividends
| | | $ | 34,941 | | | |
$
|
44,511
| |
|
Discontinued operations
| | | — |
| | |
(440
|
)
|
|
Net income attributable to common shareholders
| | | $ | 34,941 |
| | |
$
|
44,071
|
|
| | | | | | | | | |
|
|
|
The Company’s calculation of FFO allocable to Company
shareholders is as follows:
(in thousands, except per share data)
|
|
|
|
|
| Three Months Ended
March 31, |
| | | 2015 |
|
| 2014 |
|
Net income attributable to common shareholders
| | | $ | 34,941 | | | |
$
|
44,071
| |
|
Noncontrolling interest in income of Operating Partnership | | | 6,172 | | | |
7,651
| |
|
Depreciation and amortization expense of:
| | | | | | |
|
Consolidated properties
| | | 76,266 | | | |
69,083
| |
|
Unconsolidated affiliates
| | | 10,317 | | | |
9,861
| |
|
Non-real estate assets
| | | (842 | ) | | |
(594
|
)
|
Noncontrolling interests’ share of depreciation and amortization
| | | (2,631 | ) | | |
(1,533
|
)
|
|
Loss on impairment
| | | — | | | |
17,831
| |
|
Gain on depreciable property
| | | (67 | ) | | |
18
|
|
| Funds from operations of the Operating Partnership | | | 124,156 | | | |
146,388
| |
|
Litigation settlement, net of related expenses
| | | (4,658 | ) | | |
(800
|
)
|
|
Gain on investment
| | | (16,560 | ) | | |
—
| |
|
Gain on extinguishment of debt
| | | — |
| | |
(42,660
|
)
|
| Funds from operations of the Operating Partnership, as adjusted | | | $ | 102,938 |
| | |
$
|
102,928
|
|
| | | | | |
|
| Funds from operations per diluted share | | | $ | 0.62 |
| | |
$
|
0.73
|
|
| | | | | |
|
| Funds from operations, as adjusted, per diluted share | | | $ | 0.52 |
| | |
$
|
0.52
|
|
| | | | | |
|
Weighted average common and potential dilutive common shares
outstanding with Operating Partnership units fully converted
| | | 199,771 | | | |
199,741
| |
| | | | | |
|
Reconciliation of FFO of the Operating Partnership to FFO
allocable to common shareholders: | | | | | | |
| Funds from operations of the Operating Partnership | | | $ | 124,156 | | | |
$
|
146,388
| |
|
Percentage allocable to common shareholders (1) | | | 85.35 | % | | |
85.21
|
%
|
| Funds from operations allocable to common shareholders | | | $ | 105,967 |
| | |
$
|
124,737
|
|
| | | | | |
|
| Funds from operations of the Operating Partnership, as adjusted | | | $ | 102,938 | | | |
$
|
102,928
| |
|
Percentage allocable to common shareholders (1) | | | 85.35 | % | | |
85.21
|
%
|
| Funds from operations allocable to common shareholders, as
adjusted | | | $ | 87,858 |
| | |
$
|
87,705
|
|
| | | | | |
|
| (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.
|
|
|
|
|
| |
| | | Three Months Ended
March 31, |
| | | 2015 |
|
| 2014 |
| SUPPLEMENTAL FFO INFORMATION: | | | | | | |
|
Lease termination fees
| | | $ | 1,306 | | | |
$
|
932
| |
|
Lease termination fees per share
| | | $ | 0.01 | | | |
$
|
—
| |
| | | | | |
|
|
Straight-line rental income
| | | $ | 684 | | | |
$
|
482
| |
|
Straight-line rental income per share
| | | $ | — | | | |
$
|
—
| |
| | | | | |
|
|
Gains on outparcel sales
| | | $ | 1,107 | | | |
$
|
1,145
| |
|
Gains on outparcel sales per share
| | | $ | 0.01 | | | |
$
|
0.01
| |
| | | | | |
|
|
Net amortization of acquired above- and below-market leases
| | | $ | 646 | | | |
$
|
217
| |
|
Net amortization of acquired above- and below-market leases per share
| | | $ | — | | | |
$
|
—
| |
| | | | | |
|
|
Net amortization of debt premiums and discounts
| | | $ | 583 | | | |
$
|
541
| |
|
Net amortization of debt premiums and discounts per share
| | | $ | — | | | |
$
|
—
| |
| | | | | |
|
|
Income tax (provision) benefit
| | | $ | 916 | | | |
$
|
(397
|
)
|
|
Income tax (provision) benefit per share
| | | $ | — | | | |
$
|
—
| |
| | | | | |
|
|
Gain on extinguishment of debt
| | | $ | — | | | |
$
|
42,660
| |
|
Gain on extinguishment of debt per share
| | | $ | — | | | |
$
|
0.21
| |
| | | | | |
|
|
Gain on investment
| | | $ | 16,560 | | | |
$
|
—
| |
|
Gain on investment per share
| | | $ | 0.08 | | | |
$
|
—
| |
| | | | | |
|
|
Interest capitalized
| | | $ | 1,208 | | | |
$
|
1,409
| |
|
Interest capitalized per share
| | | $ | 0.01 | | | |
$
|
0.01
| |
| | | | | |
|
|
Litigation settlement, net of related expenses
| | | $ | 4,658 | | | |
$
|
800
| |
|
Litigation settlement, net of related expenses, per share
| | | $ | 0.02 | | | |
$
|
—
| |
| | | | | | | | | |
|
| | | | | | | | | |
|
| | | As of March 31, |
| | | 2015 | | | 2014 |
Straight-line rent receivable
| | | $ | 64,340 | | | |
$
|
62,971
| |
| | | | | | | | | |
|
|
|
Same-center Net Operating Income
(Dollars in thousands)
|
|
|
|
|
| Three Months Ended
March 31, |
| | | 2015 |
|
| 2014 |
|
Net income attributable to the Company
| | | $ | 46,164 | | | |
$
|
55,294
| |
| | | | | |
|
|
Adjustments:
| | | | | | |
|
Depreciation and amortization
| | | 76,266 | | | |
69,083
| |
|
Depreciation and amortization from unconsolidated affiliates
| | | 10,317 | | | |
9,861
| |
Noncontrolling interests’ share of depreciation and amortization
in other consolidated subsidiaries
| | | (2,631 | ) | | |
(1,533
|
)
|
|
Interest expense
| | | 59,157 | | | |
60,506
| |
|
Interest expense from unconsolidated affiliates
| | | 9,685 | | | |
9,491
| |
Noncontrolling interests’ share of interest expense in other
consolidated subsidiaries
| | | (1,695 | ) | | |
(1,311
|
)
|
|
Abandoned projects expense
| | | 125 | | | |
1
| |
|
Gain on sales of real estate assets
| | | (757 | ) | | |
(1,154
|
)
|
|
Gain on sales of real estate assets of unconsolidated affiliates
| | | (563 | ) | | |
—
| |
|
Gain on investment
| | | (16,560 | ) | | |
—
| |
|
Gain on extinguishment of debt
| | | — | | | |
(42,660
|
)
|
|
Loss on impairment
| | | — | | | |
17,150
| |
|
Loss on impairment from discontinued operations
| | | — | | | |
681
| |
|
Income tax provision (benefit)
| | | (916 | ) | | |
397
| |
|
Lease termination fees
| | | (1,306 | ) | | |
(932
|
)
|
|
Straight-line rent and above- and below-market lease amortization
| | | (1,330 | ) | | |
(698
|
)
|
Net income attributable to noncontrolling interest in earnings of
Operating Partnership | | | 6,172 | | | |
7,651
| |
|
Loss on discontinued operations
| | | — | | | |
17
| |
|
General and administrative expenses
| | | 17,230 | | | |
14,773
| |
|
Management fees and non-property level revenues
| | | (11,458 | ) | | |
(7,706
|
)
|
Company’s share of property NOI
| | | 187,900 | | | |
188,911
| |
|
Non-comparable NOI
| | | (11,280 | ) | | |
(13,301
|
)
|
|
Total same-center NOI (1) | | | $ | 176,620 |
| | |
$
|
175,610
|
|
|
Total same-center NOI percentage change
| | | 0.6 | % | | | |
| | | | | |
|
|
Malls
| | | $ | 160,642 | | | |
$
|
160,712
| |
|
Associated centers
| | | 8,263 | | | |
7,855
| |
|
Community centers
| | | 5,544 | | | |
5,115
| |
|
Offices and other
| | | 2,171 |
| | |
1,928
|
|
|
Total same-center NOI (1) | | | $ | 176,620 |
| | |
$
|
175,610
|
|
| | | | | |
|
| Percentage Change: | | | | | | |
|
Malls
| | | 0.0 | % | | | |
|
Associated centers
| | | 5.2 | % | | | |
|
Community centers
| | | 8.4 | % | | | |
|
Offices and other
| | | 12.6 | % | | | |
| Total same-center NOI (1) | | | 0.6 | % | | | |
| | | | | |
|
(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 2015, 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, 2015. 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 being considered
for repositioning and properties where we intend to renegotiate
the terms of the debt secured by the related property.
|
|
|
|
|
Company’s Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
|
|
|
|
|
| As of March 31, 2015 |
| | | Fixed Rate |
|
| Variable
Rate |
|
| Total |
|
Consolidated debt
| | | $ | 3,984,876 | | | | $ | 684,835 | | | | $ | 4,669,711 | |
Noncontrolling interests’ share of consolidated debt
| | | (114,519 | ) | | | (7,058 | ) | | | (121,577 | ) |
Company’s share of unconsolidated affiliates’ debt
| | | 669,691 |
| | | 98,940 |
| | | 768,631 |
|
Company’s share of consolidated and unconsolidated debt
| | | $ | 4,540,048 |
| | | $ | 776,717 |
| | | $ | 5,316,765 |
|
|
Weighted average interest rate
| | | 5.45 | % | | | 1.75 | % | | | 4.91 | % |
| | | | | | | | |
|
| | | 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
|
%
|
| | | | | | | | | | | |
|
|
|
Debt-To-Total-Market Capitalization Ratio as of March 31, 2015
(In thousands, except stock price)
|
|
|
|
|
| Shares
Outstanding |
|
| Stock
Price (1) |
|
| Value |
|
Common stock and operating partnership units
| | |
199,750
| | |
$
|
19.80
| | |
$
|
3,955,050
| |
|
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
| | | | | | | | |
4,581,300
| |
Company’s share of total debt
| | | | | | | | |
5,316,765
|
|
|
Total market capitalization
| | | | | | | | |
$
|
9,898,065
|
|
|
Debt-to-total-market capitalization ratio
| | | | | | | | |
53.7
|
%
|
| | | | | | | | |
|
| (1) Stock price for common stock and operating
partnership units equals the closing price of the common stock on
March 31, 2015. 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, |
| 2015: | | | Basic |
|
| Diluted |
|
Weighted average shares - EPS
| | | 170,420 | | | 170,510 |
|
Weighted average Operating Partnership units
| | | 29,261 | | | 29,261 |
|
Weighted average shares- FFO
| | | 199,681 | | | 199,771 |
| | | | | |
|
| 2014: | | | | | | |
|
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
|
| | | | | |
|
|
|
Dividend Payout Ratio |
|
|
|
|
| Three Months Ended
March 31, |
| | | 2015 |
|
| 2014 |
|
Weighted average cash dividend per share
| | | $ | 0.27279 | | | |
$
|
0.25312
| |
|
FFO as adjusted, per diluted fully converted share
| | | $ | 0.52 |
| | |
$
|
0.52
|
|
|
Dividend payout ratio
| | | 52.5 | % | | |
48.7
|
%
|
| | | | | | | |
|
|
|
| Consolidated Balance Sheets
(Unaudited; in thousands, except share data)
|
|
|
| |
| | | As of |
| | | March 31, 2015 |
|
| December 31,
2014 |
| ASSETS | | | | | | |
|
Real estate assets:
| | | | | | |
|
Land
| | | $ | 849,076 | | | |
$
|
847,829
| |
|
Buildings and improvements
| | | 7,228,732 |
| | |
7,221,387
|
|
| | | 8,077,808 | | | |
8,069,216
| |
|
Accumulated depreciation
| | | (2,284,224 | ) | | |
(2,240,007
|
)
|
| | | 5,793,584 | | | |
5,829,209
| |
|
Developments in progress
| | | 105,120 |
| | |
117,966
|
|
|
Net investment in real estate assets
| | | 5,898,704 | | | |
5,947,175
| |
|
Cash and cash equivalents
| | | 37,978 | | | |
37,938
| |
|
Receivables:
| | | | | | |
Tenant, net of allowance for doubtful accounts of $1,829 and
$2,368 in 2015 and 2014, respectively
| | | 81,052 | | | |
81,338
| |
Other, net of allowance for doubtful accounts of $1,239 and $1,285
in 2015 and 2014, respectively
| | | 21,440 | | | |
22,577
| |
|
Mortgage and other notes receivable
| | | 19,609 | | | |
19,811
| |
|
Investments in unconsolidated affiliates
| | | 280,971 | | | |
281,449
| |
|
Intangible lease assets and other assets
| | | 203,846 |
| | |
226,011
|
|
| | | $ | 6,543,600 |
| | |
$
|
6,616,299
|
|
| LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | | | | | | |
|
Mortgage and other indebtedness
| | | $ | 4,669,711 | | | |
$
|
4,700,460
| |
|
Accounts payable and accrued liabilities
| | | 314,979 |
| | |
328,352
|
|
|
Total liabilities
| | | 4,984,690 |
| | |
5,028,812
|
|
|
Commitments and contingencies
| | | | | | |
|
Redeemable noncontrolling partnership interests
| | | 37,468 |
| | |
37,559
|
|
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,
170,492,985 and 170,260,273 issued and outstanding in 2015 and
2014, respectively
| | | 1,705 | | | |
1,703
| |
|
Additional paid-in capital
| | | 1,958,570 | | | |
1,958,198
| |
|
Accumulated other comprehensive income
| | | 607 | | | |
13,411
| |
|
Dividends in excess of cumulative earnings
| | | (577,024 | ) | | |
(566,785
|
)
|
Total shareholders’ equity
| | | 1,383,883 | | | |
1,406,552
| |
|
Noncontrolling interests
| | | 137,559 |
| | |
143,376
|
|
|
Total equity
| | | 1,521,442 |
| | |
1,549,928
|
|
| | | $ | 6,543,600 |
| | |
$
|
6,616,299
|
|
| | | | | | | | | |
|
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.