Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - CBL & ASSOCIATES PROPERTIES INC | form8k.htm |
| EX-99.3 - SUPPLEMENTAL FINANCIAL & OPERATING INFORMATION - CBL & ASSOCIATES PROPERTIES INC | exhibit993.htm |
| EX-99.2 - INVESTOR CONFERENCE CALL SCRIPT - CBL & ASSOCIATES PROPERTIES INC | exhibit992.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 2010 RESULTS
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·
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Portfolio Same-Center NOI, excluding lease termination fees, increased 0.60% from the prior-year quarter.
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·
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Portfolio occupancy increased 180 basis points to 91.0% as of September 30, 2010, compared with September 30, 2009.
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·
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Reported FFO per diluted share of $0.47 for the third quarter 2010.
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·
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Same-store sales per square foot for mall tenants 10,000 square feet or less for stabilized malls for the nine months ended September 30, 2010, increased 2.7%.
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CHATTANOOGA, Tenn. (November 2, 2010) – CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the third quarter ended September 30, 2010. 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.
Funds from Operations (“FFO”) allocable to common shareholders for the third quarter ended September 30, 2010, was $65,039,000, or $0.47 per diluted share. FFO allocable to common shareholders for the nine months ended September 30, 2010, was $201,385,000, or $1.46 per diluted share, excluding the loss on impairment of real estate recorded in the second quarter 2010.
FFO of the operating partnership for the third quarter ended September 30, 2010, was $89,512,000. FFO of the operating partnership for the nine months ended September 30, 2010, was $277,161,000, excluding the loss on impairment of real estate recorded in the second quarter 2010.
Net income attributable to common shareholders for the third quarter ended September 30, 2010, was $9,580,000, or $0.07 per diluted share, compared with net income of $11,134,000, or $0.08 per diluted share for the third quarter ended September 30, 2009. Net income attributable to common shareholders for the nine months ended September 30, 2010, was $13,266,000, or $0.10 per diluted share, compared with $20,983,000, or $0.22 per diluted share, for the nine months ended September 30, 2009. Net income attributable to common shareholders for the third quarter and nine months ended September 30, 2010, was impacted by an increase in preferred dividends related to the additional 6,300,000 depositary shares, each representing 1/10th of a share of our 7.375% Series D cumulative redeemable preferred stock, that were issued in March 2010.
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CBL Reports Third Quarter Results
Page 2
November 2, 2010
CBL’s President and Chief Executive Officer, Stephen D. Lebovitz, commented, “This quarter we made excellent progress in our financial performance as a result of our ongoing focus on driving revenue growth and maintaining tight expense controls throughout our portfolio. During the quarter, occupancy increased sequentially and year-over-year in all categories, leasing spreads improved, and we posted healthy growth in same-center NOI.
“The improving outlook and solid execution of our strategies, combined with the steps we have taken to strengthen our capital structure, have positioned us to take advantage of growth opportunities on a selective basis. We completed the acquisition of our joint venture partner’s interest in Parkway Place in Huntsville, AL, at an attractive cap rate and formed a partnership to develop an outlet center project in Oklahoma City, OK, opening in late summer 2011. We intend to maintain the right balance between the pursuit of new growth opportunities and our overall goals of strengthening our balance sheet, aggressively leasing the portfolio and operating at a highly efficient level. We are confident we can continue this positive momentum to generate improving results into 2011.”
HIGHLIGHTS
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§
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Same-store sales per square foot for mall tenants 10,000 square feet or less for stabilized malls for the nine months ended September 30, 2010, increased 2.7% over the prior-year period. Same-store sales of mall tenants 10,000 square feet or less for stabilized malls for the rolling twelve months ended September 30, 2010, increased 0.6% to $319 per square foot compared with $317 per square foot in the prior-year period.
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§
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Same-center net operating income (“NOI”), excluding lease termination fees, for the quarter ended September 30, 2010, increased 0.6% compared with a decline of 2.2% for the prior-year quarter. Same-center NOI, excluding lease terminations fees, for the nine months ended September 30, 2010, declined 1.5% compared with a decline of 0.9% for the prior-year period.
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§
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Consolidated and unconsolidated variable rate debt of $1,796,334,000 represented 20.1% of the total market capitalization of $8,916,347,000 for the Company and 30.0% of the Company's share of total consolidated and unconsolidated debt of $5,987,120,000 as of September 30, 2010.
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PORTFOLIO OCCUPANCY
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September 30,
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2010
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2009
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Portfolio occupancy
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91.0 | % | 89.2 | % | |||||
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Mall portfolio
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91.3 | % | 89.9 | % | |||||
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Stabilized malls
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91.6 | % | 90.3 | % | |||||
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Non-stabilized malls
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78.0 | % | 74.0 | % | |||||
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Associated centers
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92.6 | % | 90.0 | % | |||||
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Community centers
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88.2 | % | 80.4 | % | |||||
FINANCING ACTIVITY
During the third quarter 2010, CBL repaid the $29.7 million loan secured by Stroud Mall in Stroudsburg, PA, the $47.4 million loan secured by York Galleria in York, PA, the $48.0 million loan secured by Parkdale Mall and the $7.6 million loan secured by Parkdale Crossing in Beaumont, TX. The properties were pledged as collateral to the Company’s $560 million credit facility.
ACQUISITIONS
On October 1, 2010, CBL acquired the remaining 50% interest in Parkway Place in Huntsville, AL, from its joint venture partner, Colonial Properties Trust. The interest was acquired for a total consideration of $38.8 million, comprised of $17.9 million in cash and assumption of the remaining $20.9 million interest in the loan secured by Parkway Place.
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CBL Reports Third Quarter Results
Page 3
November 2, 2010
DISPOSITIONS
In October 2010, CBL completed the disposition of Pemberton Square, a 351,000-square-foot mall located in Vicksburg, MS.
DEVELOPMENT
In October 2010, CBL announced that it had formed a 75/25 joint venture to develop The Outlet Shoppes at Oklahoma City in Oklahoma City, OK. Once complete, the 350,000-square-foot project will be the only outlet center in the state of Oklahoma and the only outlet center within a 145 mile radius. The Outlet Shoppes at Oklahoma City is currently under construction with the grand opening scheduled for late summer 2011.
CAPITAL MARKETS ACTIVITY
On October 18, 2010, CBL closed an underwritten public offering of 4,400,000 depositary shares, each representing 1/10th of a share of its 7.375% Series D Cumulative Redeemable Preferred Stock with a liquidation preference of $25.00 per depositary share. The depositary shares were priced at $23.1954 per share including accrued dividends equating to a yield of 7.949%.
On October 21, 2010, the underwriters of the offering exercised their option to purchase an additional 450,000 depositary shares. As a result of the exercise of this option, the Company sold a total of 4,850,000 depositary shares in the offering for net proceeds of approximately $108.7 million, after deducting the underwriting discount and other estimated offering expenses. The net offering proceeds were used to reduce outstanding borrowings under the Company’s credit facilities and for general corporate purposes.
OUTLOOK AND GUIDANCE
Based on today's outlook and the Company's third quarter results, the Company is increasing 2010 FFO guidance to $1.93 - $1.99 per share. The full year guidance includes the impact on FFO of the $25.4 million impairment of real estate recognized in the second quarter 2010 and the $27.6 million estimated future gain on extinguishment of debt that may be recognized before year end. The full year guidance also assumes $3.0 million to $5.0 million of outparcel sales and same-center NOI growth in the range of (1.0%) to (2.5%), excluding the impact of lease termination fees from both applicable periods. The guidance excludes the impact of any future unannounced acquisitions or dispositions. The Company expects to update its annual guidance after each quarter's results.
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Low
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High
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Expected diluted earnings per common share
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$ | 0.24 | $ | 0.30 | |||||
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Adjust to fully converted shares from common shares
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(0.07 | ) | (0.08 | ) | |||||
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Expected earnings per diluted, fully converted common share
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0.17 | 0.22 | |||||||
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Add: depreciation and amortization
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1.69 | 1.69 | |||||||
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Add: noncontrolling interest in earnings of Operating Partnership
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0.07 | 0.08 | |||||||
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Expected FFO per diluted, fully converted common share
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$ | 1.93 | $ | 1.99 | |||||
INVESTOR CONFERENCE CALL AND SIMULCAST
CBL & Associates Properties, Inc. will conduct a conference call at 11:00 a.m. EDT on Wednesday, November 3, 2010, to discuss its third quarter results. The number to call for this interactive teleconference is (212) 231-2901. A seven-day replay of the conference call will be available by dialing (402) 977-9140 and entering the passcode 21463753. A transcript of the Company's prepared remarks will be furnished on a Form 8-K following the conference call.
To receive the CBL & Associates Properties, Inc., third quarter earnings release and supplemental information please visit our website at cblproperties.com or contact Investor Relations at 423-490-8312.
The Company will also provide an online web simulcast and rebroadcast of its 2010 third quarter earnings release conference call. The live broadcast of the quarterly conference call will be available online at cblproperties.com on Wednesday, November 3, 2010, beginning at 11:00 a.m. EDT. The online replay will follow shortly after the call and continue through November 10, 2010.
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CBL Reports Third Quarter Results
Page 4
November 2, 2010
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 159 properties, including 84 regional malls/open-air centers. The properties are located in 28 states and total 85.6 million square feet including 2.8 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 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 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 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 at the end of this earnings release, the Company makes an adjustment to add back noncontrolling interest in earnings of its operating partnership in order to arrive at FFO of its operating partnership. The Company then applies a percentage to FFO of its operating partnership to arrive at FFO allocable to its common shareholders. The percentage is computed by taking the weighted average number of common shares outstanding for the period and dividing it by the sum of the weighted average number of common shares and the weighted average number of operating partnership units outstanding during the period.
FFO does not represent cash flows from operations as defined by accounting principles generally accepted in the United States, is not necessarily indicative of cash available to fund all cash flow needs and should not be considered as an alternative to net income for purposes of evaluating the Company’s operating performance or to cash flow as a measure of liquidity.
CBL Reports Third Quarter Results
Page 5
November 2, 2010
During the nine months ended September 30, 2010, the Company recorded a loss on impairment of real estate assets related to an operating property. Considering the significance and nature of the impairment, the Company believes that it is important to identify the impact of the change on its FFO measures for a reader to have a complete understanding of the Company's results of operations. Therefore, the Company has also presented its FFO measure excluding the impairment charge.
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 for the year ended December 31, 2009, and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" included therein, for a discussion of such risks and uncertainties.
-MORE-
CBL Reports Third Quarter Results
Page 6
November 2, 2010
CBL & Associates Properties, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2010
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2009
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2010
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2009
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REVENUES:
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Minimum rents
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$ | 171,240 | $ | 168,577 | $ | 509,911 | $ | 510,586 | ||||||||
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Percentage rents
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2,602 | 2,849 | 8,743 | 9,257 | ||||||||||||
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Other rents
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4,259 | 3,377 | 13,417 | 11,788 | ||||||||||||
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Tenant reimbursements
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78,957 | 78,463 | 234,900 | 241,353 | ||||||||||||
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Management, development and leasing fees
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1,369 | 1,312 | 4,676 | 5,392 | ||||||||||||
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Other
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7,404 | 7,881 | 21,875 | 20,946 | ||||||||||||
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Total revenues
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265,831 | 262,459 | 793,522 | 799,322 | ||||||||||||
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EXPENSES:
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Property operating
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38,420 | 40,203 | 114,492 | 123,155 | ||||||||||||
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Depreciation and amortization
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73,333 | 71,161 | 215,953 | 225,069 | ||||||||||||
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Real estate taxes
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25,555 | 25,785 | 75,368 | 74,357 | ||||||||||||
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Maintenance and repairs
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13,145 | 13,116 | 42,728 | 42,350 | ||||||||||||
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General and administrative
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10,495 | 8,808 | 31,890 | 31,180 | ||||||||||||
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Loss on impairment of real estate
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- | - | 25,435 | - | ||||||||||||
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Other
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6,351 | 7,714 | 19,467 | 18,785 | ||||||||||||
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Total expenses
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167,299 | 166,787 | 525,333 | 514,896 | ||||||||||||
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Income from operations
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98,532 | 95,672 | 268,189 | 284,426 | ||||||||||||
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Interest and other income
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832 | 1,246 | 2,831 | 4,189 | ||||||||||||
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Interest expense
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(72,053 | ) | (71,120 | ) | (218,854 | ) | (215,847 | ) | ||||||||
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Loss on impairment of investments
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- | (1,143 | ) | - | (8,849 | ) | ||||||||||
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Gain on sales of real estate assets
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591 | 1,535 | 2,606 | 1,468 | ||||||||||||
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Equity in earnings (losses) of unconsolidated affiliates
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(1,558 | ) | 271 | (610 | ) | 1,867 | ||||||||||
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Income tax benefit
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1,264 | 1,358 | 5,052 | 603 | ||||||||||||
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Income from continuing operations
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27,608 | 27,819 | 59,214 | 67,857 | ||||||||||||
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Operating income (loss) of discontinued operations
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69 | 15 | 183 | (67 | ) | |||||||||||
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Gain (loss) on discontinued operations
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- | 10 | - | (62 | ) | |||||||||||
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Net income
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27,677 | 27,844 | 59,397 | 67,728 | ||||||||||||
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Net income attributable to noncontrolling interests in:
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Operating partnership
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(3,605 | ) | (4,758 | ) | (4,992 | ) | (11,173 | ) | ||||||||
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Other consolidated subsidiaries
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(6,133 | ) | (6,497 | ) | (18,394 | ) | (19,208 | ) | ||||||||
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Net income attributable to the Company
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17,939 | 16,589 | 36,011 | 37,347 | ||||||||||||
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Preferred dividends
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(8,359 | ) | (5,455 | ) | (22,745 | ) | (16,364 | ) | ||||||||
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Net income attributable to common shareholders
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$ | 9,580 | $ | 11,134 | $ | 13,266 | $ | 20,983 | ||||||||
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Basic per share data attributable to common shareholders:
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Income from continuing operations, net of preferred dividends
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$ | 0.07 | $ | 0.08 | $ | 0.10 | $ | 0.22 | ||||||||
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Discontinued operations
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- | - | - | - | ||||||||||||
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Net income attributable to common shareholders
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$ | 0.07 | $ | 0.08 | $ | 0.10 | $ | 0.22 | ||||||||
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Weighted average common shares outstanding
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138,075 | 137,860 | 138,037 | 95,746 | ||||||||||||
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Diluted per share data attributable to common shareholders:
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Income from continuing operations, net of preferred dividends
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$ | 0.07 | $ | 0.08 | $ | 0.10 | $ | 0.22 | ||||||||
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Discontinued operations
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- | - | - | - | ||||||||||||
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Net income attributable to common shareholders
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$ | 0.07 | $ | 0.08 | $ | 0.10 | $ | 0.22 | ||||||||
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Weighted average common and potential dilutive
common shares outstanding
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138,121 | 137,897 | 138,079 | 95,782 | ||||||||||||
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Amounts attributable to common shareholders:
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Income from continuing operations, net of preferred dividends
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$ | 9,500 | $ | 11,116 | $ | 13,133 | $ | 21,067 | ||||||||
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Discontinued operations
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80 | 18 | 133 | (84 | ) | |||||||||||
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Net income attributable to common shareholders
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$ | 9,580 | $ | 11,134 | $ | 13,266 | $ | 20,983 | ||||||||
-MORE-
CBL Reports Third Quarter Results
Page 7
November 2, 2010
CBL & Associates Properties, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
The Company's calculation of FFO allocable to Company shareholders is as follows (in thousands, except per share data):
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2010
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2009
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2010
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2009
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Net income attributable to common shareholders
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$ | 9,580 | $ | 11,134 | $ | 13,266 | $ | 20,983 | ||||||||
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Noncontrolling interest in income of operating partnership
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3,605 | 4,758 | 4,992 | 11,173 | ||||||||||||
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Depreciation and amortization expense of:
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Consolidated properties
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73,333 | 71,161 | 215,953 | 225,069 | ||||||||||||
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Unconsolidated affiliates
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5,681 | 7,428 | 21,052 | 22,492 | ||||||||||||
| Discontinued operations | 19 | 100 | 63 | 296 | ||||||||||||
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Non-real estate assets
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(2,463 | ) | (241 | ) | (2,901 | ) | (731 | ) | ||||||||
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Noncontrolling interests' share of depreciation and amortization
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(243 | ) | (120 | ) | (699 | ) | (385 | ) | ||||||||
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Gain (loss) on discontinued operations
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- | (10 | ) | - | 62 | |||||||||||
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Funds from operations of the operating partnership
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89,512 | 94,210 | 251,726 | 278,959 | ||||||||||||
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Loss on impairment of real estate
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- | - | 25,435 | - | ||||||||||||
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Funds from operations of the operating partnership, excluding
loss on impairment of real estate
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$ | 89,512 | $ | 94,210 | $ | 277,161 | $ | 278,959 | ||||||||
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Funds from operations per diluted share
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$ | 0.47 | $ | 0.50 | $ | 1.32 | $ | 1.89 | ||||||||
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Loss on impairment of real estate per diluted share (1)
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- | - | 0.14 | - | ||||||||||||
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Funds from operations, excluding loss on impairment of real
estate, per diluted share
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$ | 0.47 | $ | 0.50 | $ | 1.46 | $ | 1.89 | ||||||||
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Weighted average common and potential dilutive common shares
outstanding with operating partnership units fully converted
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190,070 | 189,846 | 190,028 | 147,221 | ||||||||||||
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Reconciliation of FFO of the operating partnership
to FFO allocable to Company shareholders:
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Funds from operations of the operating partnership
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$ | 89,512 | $ | 94,210 | $ | 251,726 | $ | 278,959 | ||||||||
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Percentage allocable to Company shareholders (2)
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72.66 | % | 72.63 | % | 72.66 | % | 65.05 | % | ||||||||
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Funds from operations allocable to Company shareholders
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$ | 65,039 | $ | 68,425 | $ | 182,904 | $ | 181,463 | ||||||||
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Funds from operations of the operating partnership, excluding
loss on impairment of real estate
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$ | 89,512 | $ | 94,210 | $ | 277,161 | $ | 278,959 | ||||||||
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Percentage allocable to common shareholders (2)
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72.66 | % | 72.63 | % | 72.66 | % | 65.05 | % | ||||||||
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Funds from operations allocable to Company shareholders,
excluding loss on impairment of real estate
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$ | 65,039 | $ | 68,425 | $ | 201,385 | $ | 181,463 | ||||||||
| (1) |
Diluted per share amount presented for reconciliation purposes may differ from actual diluted per share amount due to rounding.
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| (2) |
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 10.
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-MORE-
CBL Reports Third Quarter Results
Page 8
November 2, 2010
CBL & Associates Properties, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
SUPPLEMENTAL FFO INFORMATION
(in thousands, except per share data)
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2010
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2009
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2010
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2009
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Lease termination fees
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$ | 429 | $ | 742 | $ | 2,577 | $ | 4,413 | ||||||||
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Lease termination fees per share
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$ | - | $ | - | $ | 0.01 | $ | 0.03 | ||||||||
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Straight-line rental income
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$ | 1,778 | $ | 2,858 | $ | 4,540 | $ | 6,166 | ||||||||
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Straight-line rental income per share
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$ | 0.01 | $ | 0.02 | $ | 0.02 | $ | 0.04 | ||||||||
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Gains on outparcel sales
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$ | 545 | $ | 1,755 | $ | 2,605 | $ | 2,406 | ||||||||
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Gains on outparcel sales per share
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$ | - | $ | 0.01 | $ | 0.01 | $ | 0.02 | ||||||||
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Amortization of acquired above- and below-market leases
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$ | 646 | $ | 1,372 | $ | 2,208 | $ | 4,452 | ||||||||
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Amortization of acquired above- and below-market leases per share
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$ | - | $ | 0.01 | $ | 0.01 | $ | 0.03 | ||||||||
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Amortization of debt premiums
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$ | 1,279 | $ | 1,615 | $ | 4,209 | $ | 5,357 | ||||||||
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Amortization of debt premiums per share
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$ | 0.01 | $ | 0.01 | $ | 0.02 | $ | 0.04 | ||||||||
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Income tax benefit
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$ | 1,264 | $ | 1,358 | $ | 5,052 | $ | 603 | ||||||||
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Income tax benefit per share
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$ | - | $ | - | $ | 0.03 | $ | - | ||||||||
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Abandoned projects expense
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$ | (61 | ) | $ | (1,203 | ) | $ | (420 | ) | $ | (1,346 | ) | ||||
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Abandoned projects expense per share
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$ | - | $ | - | $ | - | $ | - | ||||||||
|
Loss on impairment of real estate
|
$ | - | $ | - | $ | (25,435 | ) | $ | - | |||||||
|
Loss on impairment of real estate per share
|
$ | - | $ | - | $ | (0.13 | ) | $ | - | |||||||
|
Loss on impairment of investments
|
$ | - | $ | (1,143 | ) | $ | - | $ | (8,849 | ) | ||||||
|
Loss on impairment of investments per share
|
$ | - | $ | - | $ | - | $ | (0.06 | ) | |||||||
-MORE-
CBL Reports Third Quarter Results
Page 9
November 2, 2010
CBL & Associates Properties, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
Same-Center Net Operating Income
(Dollars in thousands)
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||
|
Net income attributable to the Company
|
$ | 17,939 | $ | 16,589 | $ | 36,011 | $ | 37,347 | ||||||||
|
Adjustments:
|
||||||||||||||||
|
Depreciation and amortization
|
73,333 | 71,161 | 215,953 | 225,069 | ||||||||||||
|
Depreciation and amortization from unconsolidated affiliates
|
5,681 | 7,428 | 21,052 | 22,492 | ||||||||||||
|
Depreciation and amortization from discontinued operations
|
19 | 100 | 63 | 296 | ||||||||||||
|
Noncontrolling interests' share of depreciation and amortization in
other consolidated subsidiaries |
(243 | ) | (120 | ) | (699 | ) | (385 | ) | ||||||||
|
Interest expense
|
72,053 | 71,120 | 218,854 | 215,847 | ||||||||||||
|
Interest expense from unconsolidated affiliates
|
5,658 | 7,398 | 21,389 | 22,760 | ||||||||||||
|
Noncontrolling interests' share of interest expense in
other consolidated subsidiaries |
(313 | ) | (233 | ) | (926 | ) | (695 | ) | ||||||||
|
Abandoned projects expense
|
61 | 1,203 | 420 | 1,346 | ||||||||||||
|
Gain on sales of real estate assets
|
(591 | ) | (1,535 | ) | (2,606 | ) | (1,468 | ) | ||||||||
|
(Gain) loss on sales of real estate assets of unconsolidated affiliates
|
46 | (220 | ) | 1 | (938 | ) | ||||||||||
|
Loss on impairment of investments
|
- | 1,143 | - | 8,849 | ||||||||||||
|
Loss on impairment of real estate
|
- | - | 25,435 | - | ||||||||||||
|
Income tax benefit
|
(1,264 | ) | (1,358 | ) | (5,052 | ) | (603 | ) | ||||||||
|
Net income attributable to noncontrolling interests
in operating partnership |
3,605 | 4,758 | 4,992 | 11,173 | ||||||||||||
|
Gain (loss) on discontinued operations
|
- | (10 | ) | - | 62 | |||||||||||
|
Operating partnership's share of total NOI
|
175,984 | 177,424 | 534,887 | 541,152 | ||||||||||||
|
General and administrative expenses
|
10,495 | 8,808 | 31,890 | 31,180 | ||||||||||||
|
Management fees and non-property level revenues
|
(1,665 | ) | (3,886 | ) | (15,731 | ) | (13,581 | ) | ||||||||
|
Operating partnership's share of property NOI
|
184,814 | 182,346 | 551,046 | 558,751 | ||||||||||||
|
Non-comparable NOI
|
(4,747 | ) | (2,944 | ) | (11,279 | ) | (10,697 | ) | ||||||||
|
Total same-center NOI
|
$ | 180,067 | $ | 179,402 | $ | 539,767 | $ | 548,054 | ||||||||
|
Total same-center NOI percentage change
|
0.4 | % | -1.5 | % | ||||||||||||
|
Total same-center NOI
|
180,067 | 179,402 | 539,767 | 548,054 | ||||||||||||
|
Less lease termination fees
|
(422 | ) | (750 | ) | (2,569 | ) | (2,564 | ) | ||||||||
|
Total same-center NOI, excluding lease termination fees
|
$ | 179,645 | $ | 178,652 | $ | 537,198 | $ | 545,490 | ||||||||
|
Malls
|
$ | 160,131 | $ | 160,138 | $ | 483,320 | $ | 489,472 | ||||||||
|
Associated centers
|
8,196 | 7,546 | 23,883 | 23,498 | ||||||||||||
|
Community centers
|
4,311 | 4,379 | 12,839 | 13,105 | ||||||||||||
|
Offices and other
|
7,007 | 6,589 | 17,156 | 19,415 | ||||||||||||
|
Total same-center NOI, excluding lease termination fees
|
$ | 179,645 | $ | 178,652 | $ | 537,198 | $ | 545,490 | ||||||||
|
Percentage Change:
|
||||||||||||||||
|
Malls
|
0.0 | % | -1.3 | % | ||||||||||||
|
Associated centers
|
8.6 | % | 1.6 | % | ||||||||||||
|
Community centers
|
-1.6 | % | -2.0 | % | ||||||||||||
|
Offices and other
|
6.3 | % | -11.6 | % | ||||||||||||
|
Total same-center NOI, excluding lease termination fees
|
0.6 | % | -1.5 | % | ||||||||||||
-MORE-
CBL Reports Third Quarter Results
Page 10
November 2, 2010
CBL & Associates Properties, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
|
September 30, 2010
|
|||||||||||||||||
|
Fixed Rate
|
Variable Rate
|
Total
|
|||||||||||||||
|
Consolidated debt
|
$ | 3,795,104 | $ | 1,629,766 | $ | 5,424,870 | |||||||||||
|
Noncontrolling interests' share of consolidated debt
|
(24,863 | ) | (928 | ) | (25,791 | ) | |||||||||||
|
Company's share of unconsolidated affiliates' debt
|
420,545 | 167,496 | 588,041 | ||||||||||||||
|
Company's share of consolidated and unconsolidated debt
|
$ | 4,190,786 | $ | 1,796,334 | $ | 5,987,120 | |||||||||||
|
Weighted average interest rate
|
5.78 | % | 2.93 | % | 4.93 | % | |||||||||||
|
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 | % | |||||||||||
Debt-To-Total-Market Capitalization Ratio as of September 30, 2010
(In thousands, except stock price)
| Shares Outstanding | Stock Price (1) | Value | ||||||||||||||
|
Common stock and operating partnership units
|
190,025 | $ | 13.06 | $ | 2,481,727 | |||||||||||
|
7.75% Series C Cumulative Redeemable Preferred Stock
|
460 | 250.00 | 115,000 | |||||||||||||
|
7.375% Series D Cumulative Redeemable Preferred Stock
|
1,330 | 250.00 | 332,500 | |||||||||||||
|
Total market equity
|
2,929,227 | |||||||||||||||
|
Company's share of total debt
|
5,987,120 | |||||||||||||||
|
Total market capitalization
|
$ | 8,916,347 | ||||||||||||||
|
Debt-to-total-market capitalization ratio
|
67.1 | % | ||||||||||||||
| (1) | Stock price for common stock and operating partnership units equals the closing price of the common stock on September 30, 2010. 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
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
|
2010:
|
Basic
|
Diluted
|
Basic
|
Diluted
|
||||||||||||
|
Weighted average shares - EPS
|
138,075 | 138,121 | 138,037 | 138,079 | ||||||||||||
|
Weighted average operating partnership units
|
51,949 | 51,949 | 51,949 | 51,949 | ||||||||||||
|
Weighted average shares- FFO
|
190,024 | 190,070 | 189,986 | 190,028 | ||||||||||||
|
2009:
|
||||||||||||||||
|
Weighted average shares - EPS
|
137,860 | 137,897 | 95,746 | 95,782 | ||||||||||||
|
Weighted average operating partnership units
|
51,948 | 51,949 | 51,439 | 51,439 | ||||||||||||
|
Weighted average shares- FFO
|
189,808 | 189,846 | 147,185 | 147,221 | ||||||||||||
Dividend Payout Ratio
| Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
|
Weighted average dividend per share
|
$ | 0.22690 | $ | 0.10370 | $ | 0.68486 | $ | 0.63661 | ||||||||
|
FFO per diluted, fully converted share
|
$ | 0.47 | $ | 0.50 | $ | 1.32 | $ | 1.89 | ||||||||
|
Dividend payout ratio
|
48.3 | % | 20.7 | % | 51.9 | % | 33.7 | % | ||||||||
-MORE-
CBL Reports Third Quarter Results
Page 11
November 2, 2010
CBL & Associates Properties, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
Consolidated Balance Sheets
(Unaudited, in thousands except share data)
|
September 30,
2010
|
December 31,
2009
|
|||||||
|
ASSETS
|
||||||||
|
Real estate assets:
|
||||||||
|
Land
|
$ | 944,821 | $ | 946,750 | ||||
|
Buildings and improvements
|
7,568,635 | 7,569,015 | ||||||
| 8,513,456 | 8,515,765 | |||||||
|
Accumulated depreciation
|
(1,665,563 | ) | (1,505,840 | ) | ||||
| 6,847,893 | 7,009,925 | |||||||
|
Held for sale
|
1,366 | - | ||||||
|
Developments in progress
|
121,299 | 85,110 | ||||||
|
Net investment in real estate assets
|
6,970,558 | 7,095,035 | ||||||
|
Cash and cash equivalents
|
56,668 | 48,062 | ||||||
|
Receivables:
|
||||||||
|
Tenant, net of allowance
|
73,942 | 73,170 | ||||||
|
Other
|
12,671 | 8,162 | ||||||
|
Mortgage and other notes receivable
|
37,866 | 38,208 | ||||||
|
Investments in unconsolidated affiliates
|
196,083 | 186,523 | ||||||
|
Intangible lease assets and other assets
|
267,692 | 279,950 | ||||||
| $ | 7,615,480 | $ | 7,729,110 | |||||
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
|
||||||||
|
Mortgage and other indebtedness
|
$ | 5,424,870 | $ | 5,616,139 | ||||
|
Accounts payable and accrued liabilities
|
306,929 | 248,333 | ||||||
|
Total liabilities
|
5,731,799 | 5,864,472 | ||||||
|
Commitments and contingencies
|
||||||||
|
Redeemable noncontrolling interests:
|
||||||||
|
Redeemable noncontrolling partnership interests
|
27,650 | 22,689 | ||||||
|
Redeemable noncontrolling preferred joint venture interest
|
423,834 | 421,570 | ||||||
|
Total redeemable noncontrolling interests
|
451,484 | 444,259 | ||||||
|
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,
1,330,000 and 700,000 shares outstanding in 2010 and
2009, respectively
|
13 | 7 | ||||||
|
Common Stock, $.01 par value, 350,000,000 shares authorized,
138,075,818 and 137,888,408 issued and outstanding in 2010
and 2009, respectively
|
1,381 | 1,379 | ||||||
|
Additional paid-in capital
|
1,504,421 | 1,399,654 | ||||||
|
Accumulated other comprehensive income
|
5,398 | 491 | ||||||
|
Accumulated deficit
|
(353,208 | ) | (283,640 | ) | ||||
|
Total shareholders' equity
|
1,158,010 | 1,117,896 | ||||||
|
Noncontrolling interests
|
274,187 | 302,483 | ||||||
|
Total equity
|
1,432,197 | 1,420,379 | ||||||
| $ | 7,615,480 | $ | 7,729,110 | |||||
-END-