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8-K - CBL & ASSOCIATES PROPERTIES INCform8k.htm
EX-99.3 - SUPPLEMENTAL FINANCIAL AND OPERATING INFORMATION - CBL & ASSOCIATES PROPERTIES INCexhibit993.htm
EX-99.2 - INVESTOR CONFERENCE CALL SCRIPT - CBL & ASSOCIATES PROPERTIES INCexhibit992.htm

Exhibit 99.1
Investor Contact:  Katie Reinsmidt, Vice President - Corporate Communications and Investor Relations, 423.490.8301, katie_reinsmidt@cblproperties.com


CBL & ASSOCIATES PROPERTIES REPORTS
THIRD QUARTER RESULTS

·  
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.

CHATTANOOGA, Tenn. (November 3, 2009) – 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 Macaé located in Macaé, 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.
 
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CBL Reports Third Quarter Results
Page 2
November 3, 2009


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 189,825,000 shares 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    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%

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CBL Reports Third Quarter Results
Page 3
November 3, 2009

DISPOSITIONS
On October 16, 2009, the Company entered into an agreement to sell its 60% interest in Plaza Macaé in Macaé, 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 share  0.19      0.26  
 Add: depreciation and amortization  1.99      1.99  
 Add: noncontrolling interest in earnings of Operating Partnership  0.10      0.14  
 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.
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CBL Reports Third Quarter Results
Page 4
November 3, 2009

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.
 
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CBL Reports Third Quarter Results
Page 5
November 3, 2009

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.
 
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CBL Reports Third Quarter Results
Page 6
November 3, 2009

CBL & Associates Properties, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)

   
 Three Months Ended
September 30,
 
 Nine Months Ended
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 and leasing fees
                  1,312
 
                11,512
   
                  5,392
 
                16,934
 
 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 amortization
                71,261
 
                81,962
   
              225,365
 
              230,106
 
 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 estate assets
                  1,535
 
                  4,777
   
                  1,468
 
                12,122
 
 Equity in earnings of unconsolidated affiliates
                     271
 
                     515
   
                  1,867
 
                  1,308
 
 Income tax benefit (provision)
                  1,358
 
                (8,562
 
                     603
 
              (12,757
 Income from continuing operations
                27,722
 
                17,204
   
                67,658
 
                64,081
 
 Operating income of discontinued operations
                     112
 
                     126
   
                     132
 
                  1,462
 
 Gain (loss) on discontinued operations
                       10
 
                     676
   
                     (62
)
                  3,788
 
 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 subsidiaries
                (6,497
)
                (5,498
 
              (19,208
)
              (17,949
 Net income attributable to the Company
                16,589
 
                  9,440
   
                37,347
 
                36,187
 
 Preferred dividends
                (5,455
)
                (5,455
 
              (16,364
)
              (16,364
 Net income available to common shareholders
 $             11,134
 
 $               3,985
   
 $             20,983
 
 $             19,823
 
 Basic per share data attributable to common shareholders:
                 
 Income from continuing operations, net of preferred dividends
 $                 0.08
 
 $                 0.05
   
 $                 0.21
 
 $                 0.24
 
 Discontinued operations
                       -
 
                    0.01
   
                    0.01
 
                    0.04
 
 Net income available to common shareholders
 $                 0.08
 
 $                 0.06
   
 $                 0.22
 
 $                 0.28
 
 Weighted average common shares outstanding
              137,860
 
                71,078
   
                97,557
 
                71,044
 
                   
 Diluted per share data attributable to common shareholders:
                 
 Income from continuing operations, net of preferred dividends
 $                 0.08
 
 $                 0.05
   
 $                 0.21
 
 $                 0.24
 
 Discontinued operations
                       -
 
                    0.01
   
                    0.01
 
                    0.04
 
 Net income available to common shareholders
 $                 0.08
 
 $                 0.06
   
 $                 0.22
 
 $                 0.28
 
 Weighted average common and potential dilutive
                 
 common shares outstanding
              137,899
 
                71,215
   
                97,593
 
                71,227
 
                   
 Amounts attributable to common shareholders:
                 
 Income from continuing operations, net of preferred dividends
 $             11,059
 
 $               3,521
   
 $             20,941
 
 $             16,797
 
 Discontinued operations
                       75
 
                     464
   
                       42
 
                  3,026
 
 Net income available to common shareholders
 $             11,134
 
 $               3,985
   
 $             20,983
 
 $             19,823
 

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CBL Reports Third Quarter Results
Page 7
November 3, 2009

The Company's calculation of FFO allocable to Company shareholders is as follows:
(in thousands, except per share data)
     
 Three Months Ended
September 30,
 
 Nine Months Ended
September 30,
   
2009
 
2008
   
2009
 
2008
 
                     
Net income available to common shareholders
 
 $           11,134
 
 $               3,985
   
 $           20,983
 
 $                       19,823
 
Noncontrolling interest in earnings of operating partnership
                4,758
 
                  3,068
   
              11,173
 
                          15,195
 
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 amortization
                  (120
)
                   (292
 
                  (385
)
                             (943
(Gain) loss on discontinued operations
 
                    (10
)
                   (676
 
                      62
 
                          (3,788
Income tax provision on disposal of discontinued operations
                         -
 
                     256
   
                         -
 
                            1,439
 
Funds from operations of the operating partnership
 
 $           94,210
 
 $             95,776
   
 $        278,959
 
 $                     283,066
 
                     
Funds from operations per diluted share
 
 $               0.50
 
 $                 0.78
   
 $               1.87
 
 $                           2.30
 
Weighted average common and potential dilutive common shares
     outstanding with operating partnership units fully converted
            189,848
 
              123,188
   
            149,542
 
                        123,200
 
                     
Reconciliation of FFO of the operating partnership
                   
     to FFO allocable to Company shareholders:
                   
Funds from operations of the operating partnership
 
 $           94,210
 
 $             95,776
   
 $        278,959
 
 $                     283,066
 
Percentage allocable to Company shareholders (1)
 
72.63
%
57.76
 
65.25
 %
57.75
Funds from operations allocable to Company shareholders
 $           68,425
 
 $             55,320
   
 $        182,021
 
 $                     163,471
 
                     
(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 share
 
$                      -
 
 $                 0.03
   
 $               0.03
 
 $                           0.08
 
                     
Straight-line rental income
 
 $             2,859
 
 $                  899
   
 $             6,160
 
 $                         4,050
 
    Straight-line rental income per share
 
 $               0.02
 
 $                 0.01
   
 $               0.04
 
 $                           0.03
 
                     
Gains on outparcel sales
 
 $             1,766
 
 $               6,695
   
 $             2,345
 
 $                       14,243
 
    Gains on outparcel sales per share
 
 $               0.01
 
 $                 0.05
   
 $               0.02
 
 $                           0.12
 
                     
Amortization of acquired above- and below-market leases
 $             1,372
 
 $               1,677
   
 $             4,452
 
 $                         6,785
 
    Amortization of acquired above- and below-market leases per share
 $               0.01
 
 $                 0.01
   
 $               0.03
 
 $                           0.06
 
                     
Amortization of debt premiums
 
 $             1,615
 
 $               1,982
   
 $             5,357
 
 $                         5,918
 
    Amortization of debt premiums per share
 
 $               0.01
 
 $                 0.02
   
 $               0.04
 
 $                           0.05
 
                     
Income tax benefit (provision)
 
 $             1,358
 
 $             (8,306
 
 $                603
 
 $                     (11,318
    Income tax provision per share
 
 $               0.01
 
 $               (0.07
 
 $                      -
 
 $                         (0.09
                     
Impairment of investments
 
 $           (1,143
)
 $             (5,778
 
 $           (8,849
)
 $                       (5,778
    Impairment of  investments per share
 
 $             (0.01
)
 $               (0.05
 
 $             (0.06
)
 $                         (0.05
 
-MORE-
 
 

 

CBL Reports Third Quarter Results
Page 8
November 3, 2009

Same-Center Net Operating Income
(Dollars in thousands)

 
 Three Months Ended
 September 30,
 
 Nine Months Ended
September 30,
 
2009
 
2008
   
2009
 
2008
 
                   
Net income attributable to the Company
 $         16,589
 
 $          9,440
   
 $         37,347
 
 $        36,187
 
                   
Adjustments:
                 
Depreciation and amortization
            71,261
 
           81,962
   
          225,365
 
         230,106
 
Depreciation and amortization from unconsolidated affiliates
               7,428
 
             7,741
   
            22,492
 
           21,112
 
Depreciation and amortization from discontinued operations
                      -
 
                   -
   
                      -
 
                892
 
Noncontrolling interests' share of depreciation and amortization in
           
   other consolidated subsidiaries
                (120
)
              (292
 
                (385
)
              (943
Interest expense
            71,120
 
           77,057
   
          215,847
 
         233,736
 
Interest expense from unconsolidated affiliates
               7,398
 
             7,038
   
            22,760
 
           20,872
 
Noncontrolling interests' share of interest expense in
               
   other consolidated subsidiaries
                (233
)
              (454
 
                (695
)
           (1,357
Abandoned projects expense
               1,203
 
                  32
   
               1,346
 
             2,944
 
Gain on sales of real estate assets
             (1,535
)
           (4,777
 
             (1,468
)
         (12,122
Gain on sales of real estate assets of unconsolidated affiliates
                (231
)
           (2,287
 
                (877
)
           (2,716
Impairment of investments
               1,143
 
             5,778
   
               8,849
 
             5,778
 
Noncontrolling interests' share of gain on sales of other
               
   consolidated subsidiaries
                      -
 
                365
   
                      -
 
                595
 
Income tax (benefit) provision
             (1,358
)
             8,562
   
                (603
)
           12,757
 
Noncontrolling interests in earnings of operating partnership
               4,758
 
             3,068
   
            11,173
 
           15,195
 
(Gain) loss on discontinued operations
                   (10
)
              (676
 
                    62
 
           (3,788
Operating partnership's share of total NOI
          177,413
 
         192,557
   
          541,213
 
         559,248
 
General and administrative expenses
               8,808
 
             9,623
   
            31,180
 
           33,268
 
Management fees and non-property level revenues
             (4,953
)
         (16,571
 
           (15,599
)
         (30,564
Operating partnership's share of property NOI
          181,268
 
         185,609
   
          556,794
 
         561,952
 
NOI of non-comparable centers
             (4,289
)
           (2,060
 
           (11,732
)
           (7,414
Total same-center NOI
 $       176,979
 
 $      183,549
   
 $       545,062
 
 $      554,538
 
Total same-center NOI percentage change
-3.6%
       
-1.7%
     
                   
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 fees
 $       176,237
 
 $      180,211
   
 $       540,649
 
 $      545,404
 
                   
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 fees
 $       176,237
 
 $      180,211
   
 $       540,649
 
 $      545,404
 
                   
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 fees
-2.2%
       
-0.9%
     
 
-MORE-
 
 

 

CBL Reports Third Quarter Results
Page 9
November 3, 2009

Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)

         
September 30, 2009
 
         
Fixed Rate
     
Variable Rate
 
Total
 
Consolidated debt
       
 $     4,521,262
   
 $     1,157,299
   
 $     5,678,561
 
Noncontrolling interests' share of consolidated debt
   
            (23,370
)  
                  (928
)  
            (24,298
)
Company's share of unconsolidated affiliates' debt
     
            405,597
   
            193,711
   
            599,308
 
Company's share of consolidated and unconsolidated debt
   
 $     4,903,489
   
 $     1,350,082
   
 $     6,253,571
 
Weighted average interest rate
       
5.84
%  
1.91
%  
4.99
%
                         
         
September 30, 2008
 
         
Fixed Rate
     
Variable Rate
 
Total
 
Consolidated debt
       
 $        4,499,557
   
 $        1,524,192
   
 $        6,023,749
 
Noncontrolling interests' share of consolidated debt
   
              (23,743
 
                   (919
 
              (24,662
Company's share of unconsolidated affiliates' debt
     
              408,719
   
              121,952
   
              530,671
 
Company's share of consolidated and unconsolidated debt
   
 $        4,884,533
   
 $        1,645,225
   
 $        6,529,758
 
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 price)
                       
         
Shares Outstanding
Stock Price (1)
Value
 
Common stock and operating partnership units
       
              189,825
   
 $                 9.70
   
 $        1,841,303
 
7.75% Series C Cumulative Redeemable Preferred Stock
   
                     460
   
                250.00
   
115,000
 
7.375% Series D Cumulative Redeemable Preferred Stock
   
                     700
   
                250.00
   
175,000
 
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 capitalization ratio
                   
74.6
                         
(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 shares - EPS
 
         137,860
   
            137,899
   
              97,557
   
              97,593
 
Weighted average operating partnership units
 
           51,948
   
              51,949
   
              51,949
   
              51,949
 
Weighted average shares- FFO
 
         189,808
   
            189,848
   
            149,506
   
            149,542
 
                         
2008:
                       
Weighted average shares - EPS
 
             71,078
   
                71,215
   
                71,044
   
                71,227
 
Weighted average operating partnership units
 
             51,976
   
                51,973
   
                51,975
   
                51,973
 
Weighted average shares- FFO
 
           123,054
   
              123,188
   
              123,019
   
              123,200
 
                         
                         
Dividend Payout Ratio
 
 Three Months Ended
   
 Nine Months Ended
 
   
 September 30,
   
 September 30,
 
   
2009
   
2008
   
2009
   
2008
 
Weighted average dividend per share
 
 $        0.10370
   
 $           0.55047
   
 $           0.63661
   
 $           0.16514
 
FFO per diluted, fully converted share
 
 $               0.50
   
 $                 0.78
   
 $                  1.87
   
 $                 2.30
 
Dividend payout ratio
 
20.7
%  
70.6
 
34.0
%  
7.2
 
-MORE-
 
 

 

CBL Reports Third Quarter Results
Page 10
November 3, 2009
 
Consolidated Balance Sheets
(Unaudited,  in thousands except share data)

 
September 30,
2009
 
December 31,
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 venture interest
                       421,514
 
                   421,279
 
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 Stock,
       460,000 shares outstanding
                                  5
 
                              5
 
7.375% Series D Cumulative Redeemable Preferred Stock,
       700,000 shares outstanding
                                  7
 
                              7
 
Common Stock, $.01 par value, 180,000,000 shares authorized,
       137,876,744 and 66,394,844 issued and outstanding in 2009 and
   2008, respectively
                           1,379
 
                          664
 
 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
 
 
-END-