Attached files
| file | filename |
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| EX-99.2 - EXHIBIT 99.2 - CBL & ASSOCIATES PROPERTIES INC | ex992script3312017.htm |
| 8-K - 8-K - CBL & ASSOCIATES PROPERTIES INC | form8-kx33117.htm |
Exhibit 99.1
Earnings Release and
Supplemental Financial and Operating Information
For the Three Months Ended
March 31, 2017
Earnings Release and Supplemental Financial and Operating Information
Table of Contents
Page | ||
Reconciliations of Supplementary Non-GAAP Financial Measures: | ||
Contact: Katie Reinsmidt, Senior Vice President - Investor Relations/Corporate Investments, 423.490.8301, katie.reinsmidt@cblproperties.com
CBL & ASSOCIATES PROPERTIES REPORTS RESULTS FOR
FIRST QUARTER 2017
CHATTANOOGA, Tenn. (May 3, 2017) – CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the first quarter ended March 31, 2017. A description of each supplemental non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is located at the end of this news release.
Three Months Ended March 31, | ||||||||||
2017 | 2016 | % | ||||||||
Net income attributable to common shareholders per diluted share | $ | 0.13 | $ | 0.17 | (23.5 | )% | ||||
Funds from Operations ("FFO") per diluted share | $ | 0.53 | $ | 0.68 | (22.1 | )% | ||||
FFO, as adjusted, per diluted share (1) | $ | 0.52 | $ | 0.56 | (7.1 | )% | ||||
(1) For a reconciliation of FFO to FFO, as adjusted, for the periods presented, please refer to the footnotes to the Company's reconciliation of net income attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 12 of this earnings release. | ||||||||||
HIGHLIGHTS:
• | Entered into binding contract for the sale of two malls and completed the sale of an outlet center and two office buildings year-to-date. The transactions are expected to generate aggregate equity proceeds of nearly $100 million, at CBL's share. |
• | FFO per diluted share, as adjusted, was $0.52 for the first quarter 2017, compared with FFO, as adjusted, of $0.56 per share for the first quarter 2016. First quarter 2017 was impacted by approximately $0.05 per share of dilution from asset sales. |
• | Total Portfolio Same-center NOI for the first quarter 2017 declined 1.0%. |
• | Portfolio occupancy increased 50 bps to 92.1% and same-center mall occupancy declined 100 basis points to 90.5% as of March 31, 2017 compared with 91.5% as of March 31, 2016. |
• | Stabilized Mall leases were signed at an average increase of 2% over the expiring gross rent per square foot, including a 18% increase in average gross rents for more than 130,000 square feet of new leases executed in the quarter. |
1 | ||
CBL's President and Chief Executive Officer Stephen Lebovitz commented, “Our malls are evolving into suburban town centers as we add more dining, entertainment, value and off-price, health and wellness, service and non-retail uses to adapt to the changing retail landscape. We faced a challenging retail environment in the first quarter, which impacted our NOI results. However, leasing demand remains strong, and we are making major progress on our anchor redevelopment program.”
“We are improving our balance sheet through additional dispositions including the sale of The Outlet Shoppes at Oklahoma City and two office buildings as well as a binding contract for the sale of two malls. These transactions will generate equity proceeds of nearly $100 million, contributing to further reductions in debt. Coupled with our significant free cash flow, this will create additional liquidity to fund redevelopment activity.”
Net income attributable to common shareholders for the first quarter 2017 was $22.9 million, or $0.13 per diluted share, compared with net income of $28.9 million, or $0.17 per diluted share, for the first quarter 2016.
FFO allocable to common shareholders, as adjusted, for the first quarter 2017 was $88.4 million, or $0.52 per diluted share, compared with $95.0 million, or $0.56 per diluted share, for the first quarter 2016. FFO allocable to the Operating Partnership common unitholders, as adjusted, for the first quarter 2017 was $103.0 million compared with $111.2 million for the first quarter 2016.
Percentage change in same-center Net Operating Income ("NOI")(1):
Three Months Ended March 31, 2017 | |
Portfolio same-center NOI | (1.0)% |
Mall same-center NOI | (1.6)% |
(1) | CBL's definition of same-center NOI excludes the impact of lease termination fees and certain non-cash items of straight-line rents, write-offs of landlord inducements and net amortization of acquired above and below market leases. |
Major variances impacting same-center NOI for the quarter ended March 31, 2017 include:
• | NOI declined $1.8 million, due to a $2.6 million decrease in revenue, partially offset by a $0.8 million decrease in operating expense. |
• | Minimum rents increased $1.4 million during the quarter as a result of rent growth over the prior year. |
• | Percentage rents decreased $2.0 million as sales declined in the first quarter. |
• | Tenant reimbursements and other rents declined $2.0 million. |
• | Property operating expense declined $0.5 million, maintenance and repair expense declined $1.7 million, and real estate tax expense increased $1.4 million. |
PORTFOLIO OPERATIONAL RESULTS
Occupancy:
As of March 31, | ||||
2017 | 2016 | |||
Portfolio occupancy | 92.1% | 91.6% | ||
Mall portfolio | 90.5% | 90.9% | ||
Same-center malls | 90.5% | 91.5% | ||
Stabilized malls | 90.5% | 90.9% | ||
Non-stabilized malls (1) | 92.7% | 91.4% | ||
Associated centers | 97.7% | 91.5% | ||
Community centers | 98.2% | 96.0% | ||
(1) | Represents occupancy for The Outlet Shoppes of the Bluegrass as of March 31, 2017 and The Outlet Shoppes of Atlanta and The Outlet Shoppes of the Bluegrass as of March 31, 2016. |
2 | ||
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, 2017 | |
Stabilized Malls | 1.8% |
New leases | 17.9% |
Renewal leases | (3.4)% |
Same-Center Sales Per Square Foot for Mall Tenants 10,000 Square Feet or Less:
Twelve Months Ended March 31, | |||||||||
2017 | 2016 | % Change | |||||||
Stabilized mall same-center sales per square foot | $ | 372 | $ | 382 | (2.6)% | ||||
Stabilized mall sales per square foot | $ | 372 | $ | 378 | (1.6)% | ||||
DISPOSITIONS
CBL has entered into a binding contract for the sale of two malls, College Square in Morristown, TN (2016 sales psf $265) and Foothills Mall in Maryville, TN (2016 sales psf $283), for a total gross sales price of $53.5 million. The buyer has posted a significant nonrefundable deposit. The transaction is expected to close in May.
During the first quarter 2017, CBL closed on the sale of two office buildings located in Newport News, VA, generating gross proceeds of $6.25 million.
On April 28, 2017, CBL closed on the sale of The Outlet Shoppes at Oklahoma City in Oklahoma City, OK for a gross sales price of $130.0 million. Approximately $70.1 million, including defeasance costs, in loans secured by the property were retired concurrent with the closing. CBL’s share of net equity proceeds, after retirement of secured loans and closing costs, was $38.0 million. Net proceeds were used to reduce outstanding balances on the Company’s lines of credit. CBL anticipates recording a gain on sale of approximately $44.0 million in second quarter 2017 results related to the sale.
FINANCING ACTIVITY
During the quarter, CBL retired four loans totaling $158.3 million (at CBL's share) and added the properties to its unencumbered pool of assets. The loans were secured by Layton Hills Mall in Layton, UT, The Plaza at Fayette in Lexington, KY, The Shoppes at St. Clair Square in Fairview Heights, IL and Hamilton Corner in Chattanooga, TN.
During the quarter the foreclosure of Midland Mall in Midland, MI, was completed. CBL recorded a gain on extinguishment of debt of $4.1 million related to the foreclosure.
In April, the $125 million loan secured by Acadiana Mall in Lafayette, LA, matured. CBL is currently in discussions with the lender to restructure and extend the loan maturity.
OUTLOOK AND GUIDANCE
CBL is updating its 2017 FFO, as adjusted, guidance to reflect first quarter results, dilution from announced disposition activity (approximately $0.04 per share) and its current outlook. CBL anticipates FFO, as adjusted, in the range of $2.18 - $2.24 per diluted share. This FFO assumes same-center NOI growth in the range of (2.0)% - 0% in 2017, which includes an additional estimated income loss of $10.0 - 14.0 million from store closure and bankruptcy activity for the remainder of 2017.
The guidance also assumes the following:
• | $10.0 million to $12.0 million in gains on outparcel sales; |
3 | ||
• | 75 to 125 basis points lower total portfolio occupancy as well as stabilized mall occupancy at year-end; |
• | G&A expense of $62 million to $64 million for the full year; and |
• | No unannounced capital markets activity. |
Low | High | ||||||
Expected diluted earnings per common share | $ | 0.62 | $ | 0.68 | |||
Adjust to fully converted shares from common shares | (0.08 | ) | (0.09 | ) | |||
Expected earnings per diluted, fully converted common share | 0.54 | 0.59 | |||||
Add: depreciation and amortization | 1.56 | 1.56 | |||||
Add: Loss on impairment | 0.01 | 0.01 | |||||
Add: noncontrolling interest in earnings of Operating Partnership | 0.09 | 0.10 | |||||
Expected FFO per diluted, fully converted common share | 2.20 | 2.26 | |||||
Adjustment for certain significant items | (0.02 | ) | (0.02 | ) | |||
Expected adjusted FFO per diluted, fully converted common share | $ | 2.18 | $ | 2.24 | |||
INVESTOR CONFERENCE CALL AND WEBCAST
CBL & Associates Properties, Inc. will conduct a conference call on Thursday, May 4, 2017, at 11:00 a.m. ET. To access this interactive teleconference, dial (888) 317-6003 or (412) 317-6061 and enter the confirmation number, 2235998. A replay of the conference call will be available through May 11, 2017, by dialing (877) 344-7529 or (412) 317‑0088 and entering the confirmation number, 10102428. 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 the Investing section of 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 2017 first quarter earnings release conference call. The live broadcast of the quarterly conference call will be available online at cblproperties.com on Thursday, May 4, 2017 beginning at 11:00 a.m. ET. The online replay will follow shortly after the call.
ABOUT CBL & ASSOCIATES PROPERTIES, INC.
Headquartered in Chattanooga, TN, 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 125 properties, including 82 regional malls/open-air centers. The properties are located in 27 states and total 77.4 million square feet including 5.9 million square feet of non-owned shopping centers managed for third parties. Additional information can be found at cblproperties.com.
NON-GAAP FINANCIAL MEASURES
Funds From Operations
FFO is a widely used non-GAAP 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 as defined above by NAREIT less dividends on preferred stock of the Company or distributions on preferred units of the Operating Partnership, as applicable. The Company’s method of calculating FFO 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.
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The Company presents both FFO allocable to Operating Partnership common unitholders and FFO allocable to common shareholders, as it believes that both are useful performance measures. The Company believes FFO allocable to Operating Partnership common unitholders 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 (loss) attributable to the Company's common shareholders to FFO allocable to Operating Partnership common unitholders, 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 the Operating Partnership common unitholders. The Company then applies a percentage to FFO of the Operating Partnership common unitholders 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 held by noncontrolling interests during the period.
FFO does not represent cash flows from operations as defined by GAAP, 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.
The Company believes that it is important to identify the impact of certain significant items 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 adjusted FFO measures excluding these items from the applicable periods. Please refer to the reconciliation of net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 9 of this earnings release for a description of these adjustments.
Same-center Net Operating Income
NOI is a supplemental non-GAAP 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).
The Company computes NOI based on the Operating Partnership's pro rata share of both consolidated and unconsolidated properties. The Company believes that presenting NOI and same-center NOI (described below) based on its Operating Partnership’s pro rata share of both consolidated and unconsolidated properties is useful since the Company 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's definition of NOI may be different than that used by other companies and, accordingly, the Company's calculation of NOI may not be comparable to that of other companies.
Since NOI includes only those revenues and expenses related to the operations of the Company's shopping center properties, the Company believes that same-center NOI provides a measure that reflects trends in occupancy rates, rental rates, sales at the malls and operating costs and the impact of those trends on the Company's results of operations. The Company’s calculation of same-center NOI excludes lease termination income, straight-line rent adjustments, amortization of above and below market lease intangibles and write-off of landlord inducement assets in order to enhance the comparability of results from one period to another. 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 condensed 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.
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CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months Ended March 31, 2017
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
REVENUES: | |||||||
Minimum rents | $ | 159,750 | $ | 170,629 | |||
Percentage rents | 2,389 | 4,673 | |||||
Other rents | 3,652 | 5,062 | |||||
Tenant reimbursements | 67,291 | 73,366 | |||||
Management, development and leasing fees | 3,452 | 2,581 | |||||
Other | 1,479 | 6,767 | |||||
Total revenues | 238,013 | 263,078 | |||||
OPERATING EXPENSES: | |||||||
Property operating | 34,914 | 38,628 | |||||
Depreciation and amortization | 71,220 | 76,506 | |||||
Real estate taxes | 22,083 | 23,028 | |||||
Maintenance and repairs | 13,352 | 14,548 | |||||
General and administrative | 16,082 | 17,168 | |||||
Loss on impairment | 3,263 | 19,685 | |||||
Other | — | 9,685 | |||||
Total operating expenses | 160,914 | 199,248 | |||||
Income from operations | 77,099 | 63,830 | |||||
Interest and other income | 1,404 | 360 | |||||
Interest expense | (56,201 | ) | (55,231 | ) | |||
Gain on extinguishment of debt | 4,055 | 6 | |||||
Equity in earnings of unconsolidated affiliates | 5,373 | 32,390 | |||||
Income tax benefit | 800 | 537 | |||||
Income from continuing operations before gain on sales of real estate assets | 32,530 | 41,892 | |||||
Gain on sales of real estate assets | 5,988 | — | |||||
Net income | 38,518 | 41,892 | |||||
Net (income) loss attributable to noncontrolling interests in: | |||||||
Operating Partnership | (3,690 | ) | (4,945 | ) | |||
Other consolidated subsidiaries | (713 | ) | 3,127 | ||||
Net income attributable to the Company | 34,115 | 40,074 | |||||
Preferred dividends | (11,223 | ) | (11,223 | ) | |||
Net income attributable to common shareholders | $ | 22,892 | $ | 28,851 | |||
Basic and diluted per share data attributable to common shareholders: | |||||||
Net income attributable to common shareholders | $ | 0.13 | $ | 0.17 | |||
Weighted-average common and potential dilutive common shares outstanding | 170,989 | 170,669 | |||||
Dividends declared per common share | $ | 0.265 | $ | 0.265 | |||
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CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2017
The Company's reconciliation of net income attributable to common shareholders to FFO allocable to Operating Partnership common unitholders is as follows:
(in thousands, except per share data)
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net income attributable to common shareholders | $ | 22,892 | $ | 28,851 | |||
Noncontrolling interest in income of Operating Partnership | 3,690 | 4,945 | |||||
Depreciation and amortization expense of: | |||||||
Consolidated properties | 71,220 | 76,506 | |||||
Unconsolidated affiliates | 9,543 | 9,178 | |||||
Non-real estate assets | (864 | ) | (837 | ) | |||
Noncontrolling interests' share of depreciation and amortization | (1,979 | ) | (2,393 | ) | |||
Loss on impairment, net of tax | 2,067 | 19,685 | |||||
Loss on depreciable property | 41 | — | |||||
FFO allocable to Operating Partnership common unitholders | 106,610 | 135,935 | |||||
Litigation expenses (1) | 43 | 1,707 | |||||
Nonrecurring professional fees reimbursement (1) | (925 | ) | — | ||||
Equity in earnings from disposals of unconsolidated affiliates (2) | — | (26,395 | ) | ||||
Non-cash default interest expense | 1,307 | — | |||||
Gain on extinguishment of debt (3) | (4,055 | ) | — | ||||
FFO allocable to Operating Partnership common unitholders, as adjusted | $ | 102,980 | $ | 111,247 | |||
FFO per diluted share | $ | 0.53 | $ | 0.68 | |||
FFO, as adjusted, per diluted share | $ | 0.52 | $ | 0.56 | |||
Weighted average common and potential dilutive common shares outstanding with Operating Partnership units fully converted | 199,281 | 199,926 | |||||
(1) Litigation expense is included in General and administrative expense in the Consolidated Statements of Operations. Nonrecurring professional fees reimbursement is included in Interest and other income in the Consolidated Statements of Operations. | |||||||
(2) For the three months ended March 31, 2016, includes $26,373 related to the sale of a 50% interest in an unconsolidated affiliate. This amount is included in Equity in earnings of unconsolidated affiliates in the Consolidated Statements of Operations. | |||||||
(3) For the three months ended March 31, 2017, represents gain on extinguishment of debt related to the non-recourse loan secured by Midland Mall, which was conveyed to the lender in January 2017. | |||||||
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The reconciliation of diluted EPS to FFO per diluted share is as follows:
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Diluted EPS attributable to common shareholders | $ | 0.13 | $ | 0.17 | |||
Eliminate amounts per share excluded from FFO: | |||||||
Depreciation and amortization expense, including amounts from consolidated properties, unconsolidated affiliates, non-real estate assets and excluding amounts allocated to noncontrolling interests | 0.39 | 0.42 | |||||
Loss on impairment, net of tax | 0.01 | 0.09 | |||||
FFO per diluted share | $ | 0.53 | $ | 0.68 | |||
The reconciliations of FFO allocable to Operating Partnership common unitholders to FFO allocable to common shareholders, including and excluding the adjustments noted above, are as follows:
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
FFO allocable to Operating Partnership common unitholders | $ | 106,610 | $ | 135,935 | |||
Percentage allocable to common shareholders (1) | 85.80 | % | 85.37 | % | |||
FFO allocable to common shareholders | $ | 91,471 | $ | 116,048 | |||
FFO allocable to Operating Partnership common unitholders, as adjusted | $ | 102,980 | $ | 111,247 | |||
Percentage allocable to common shareholders (1) | 85.80 | % | 85.37 | % | |||
FFO allocable to common shareholders, as adjusted | $ | 88,357 | $ | 94,972 | |||
(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 12. | |||||||
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SUPPLEMENTAL FFO INFORMATION: | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Lease termination fees | $ | 247 | $ | 951 | |||
Lease termination fees per share | $ | — | $ | — | |||
Straight-line rental income | $ | 73 | $ | 149 | |||
Straight-line rental income per share | $ | — | $ | — | |||
Gains on outparcel sales | $ | 5,997 | $ | — | |||
Gains on outparcel sales per share | $ | 0.03 | $ | — | |||
Net amortization of acquired above- and below-market leases | $ | 1,218 | $ | 1,076 | |||
Net amortization of acquired above- and below-market leases per share | $ | 0.01 | $ | 0.01 | |||
Net amortization of debt premiums and discounts | $ | 623 | $ | 627 | |||
Net amortization of debt premiums and discounts per share | $ | — | $ | — | |||
Income tax benefit | $ | 800 | $ | 537 | |||
Income tax benefit per share | $ | — | $ | — | |||
Gain on extinguishment of debt | $ | 4,055 | $ | 6 | |||
Gain on extinguishment of debt per share | $ | 0.02 | $ | — | |||
Equity in earnings from disposals of unconsolidated affiliates | $ | — | $ | 26,395 | |||
Equity in earnings from disposals of unconsolidated affiliates per share | $ | — | $ | 0.13 | |||
Non-cash default interest expense | $ | (1,307 | ) | $ | — | ||
Non-cash default interest expense per share | $ | (0.01 | ) | $ | — | ||
Abandoned projects expense | $ | — | $ | (1 | ) | ||
Abandoned projects expense per share | $ | — | $ | — | |||
Interest capitalized | $ | 839 | $ | 548 | |||
Interest capitalized per share | $ | — | $ | — | |||
Litigation expenses | $ | (43 | ) | $ | (1,707 | ) | |
Litigation expenses per share | $ | — | $ | (0.01 | ) | ||
Nonrecurring professional fees reimbursement | $ | 925 | $ | — | |||
Nonrecurring professional fees reimbursement per share | $ | — | $ | — | |||
As of March 31, | |||||||
2017 | 2016 | ||||||
Straight-line rent receivable | $ | 67,029 | $ | 67,498 | |||
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CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2017
Same-center Net Operating Income
(Dollars in thousands)
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net income | $ | 38,518 | $ | 41,892 | |||
Adjustments: | |||||||
Depreciation and amortization | 71,220 | 76,506 | |||||
Depreciation and amortization from unconsolidated affiliates | 9,543 | 9,178 | |||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (1,979 | ) | (2,393 | ) | |||
Interest expense | 56,201 | 55,231 | |||||
Interest expense from unconsolidated affiliates | 6,161 | 6,585 | |||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,706 | ) | (1,679 | ) | |||
Abandoned projects expense | — | 1 | |||||
Gain on sales of real estate assets | (5,988 | ) | — | ||||
(Gain) loss on sales of real estate assets of unconsolidated affiliates | 35 | (26,395 | ) | ||||
Gain on extinguishment of debt | (4,055 | ) | (6 | ) | |||
Loss on impairment | 3,263 | 19,685 | |||||
Income tax benefit | (800 | ) | (537 | ) | |||
Lease termination fees | (247 | ) | (951 | ) | |||
Straight-line rent and above- and below-market lease amortization | (1,291 | ) | (1,225 | ) | |||
Net (income) loss attributable to noncontrolling interests in other consolidated subsidiaries | (713 | ) | 3,127 | ||||
General and administrative expenses | 16,082 | 17,168 | |||||
Management fees and non-property level revenues | (5,257 | ) | (4,776 | ) | |||
Operating Partnership's share of property NOI | 178,987 | 191,411 | |||||
Non-comparable NOI | (5,951 | ) | (16,564 | ) | |||
Total same-center NOI (1) | $ | 173,036 | $ | 174,847 | |||
Total same-center NOI percentage change | (1.0 | )% | |||||
Malls | $ | 157,390 | $ | 160,006 | |||
Associated centers | 8,352 | 8,012 | |||||
Community centers | 5,484 | 5,157 | |||||
Offices and other | 1,810 | 1,672 | |||||
Total same-center NOI (1) | $ | 173,036 | $ | 174,847 | |||
Percentage Change: | |||||||
Malls | (1.6 | )% | |||||
Associated centers | 4.2 | % | |||||
Community centers | 6.3 | % | |||||
Offices and other | 8.3 | % | |||||
Total same-center NOI (1) | (1.0 | )% | |||||
(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, amortization of above and below market lease intangibles and write-offs of landlord inducement assets. We include a property in our same-center pool when we own all or a portion of the property as of March 31, 2017, 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, 2017. Properties excluded from the same-center pool that would otherwise meet this criteria are properties which are being repositioned or properties where we are considering alternatives for repositioning, where we intend to renegotiate the terms of the debt secured by the related property or return the property to the lender and those in which we own a noncontrolling interest of 25% or less. |
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CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2017 and 2016
Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
As of March 31, 2017 | |||||||||||||||||||
Fixed Rate | Variable Rate | Total per Debt Schedule | Unamortized Deferred Financing Costs | Total | |||||||||||||||
Consolidated debt | $ | 3,389,900 | $ | 1,149,563 | $ | 4,539,463 | $ | (16,983 | ) | $ | 4,522,480 | ||||||||
Noncontrolling interests' share of consolidated debt | (107,197 | ) | (6,855 | ) | (114,052 | ) | 903 | (113,149 | ) | ||||||||||
Company's share of unconsolidated affiliates' debt | 528,040 | 72,299 | 600,339 | (2,651 | ) | 597,688 | |||||||||||||
Company's share of consolidated and unconsolidated debt | $ | 3,810,743 | $ | 1,215,007 | $ | 5,025,750 | $ | (18,731 | ) | $ | 5,007,019 | ||||||||
Weighted average interest rate | 5.28 | % | 2.31 | % | 4.56 | % | |||||||||||||
As of March 31, 2016 | |||||||||||||||||||
Fixed Rate | Variable Rate | Total per Debt Schedule | Unamortized Deferred Financing Costs | Total | |||||||||||||||
Consolidated debt | $ | 3,466,259 | $ | 1,232,515 | $ | 4,698,774 | $ | (15,287 | ) | $ | 4,683,487 | ||||||||
Noncontrolling interests' share of consolidated debt | (109,906 | ) | (7,602 | ) | (117,508 | ) | 757 | (116,751 | ) | ||||||||||
Company's share of unconsolidated affiliates' debt | 594,028 | 152,968 | 746,996 | (1,798 | ) | 745,198 | |||||||||||||
Company's share of consolidated and unconsolidated debt | $ | 3,950,381 | $ | 1,377,881 | $ | 5,328,262 | $ | (16,328 | ) | $ | 5,311,934 | ||||||||
Weighted average interest rate | 5.40 | % | 1.90 | % | 4.49 | % | |||||||||||||
Debt-To-Total-Market Capitalization Ratio as of March 31, 2017
(In thousands, except stock price)
Shares Outstanding | Stock Price (1) | Value | ||||||||
Common stock and Operating Partnership units | 199,386 | $ | 9.54 | $ | 1,902,142 | |||||
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 | 2,528,392 | |||||||||
Company's share of total debt, excluding unamortized deferred financing costs | 5,025,750 | |||||||||
Total market capitalization | $ | 7,554,142 | ||||||||
Debt-to-total-market capitalization ratio | 66.5 | % | ||||||||
(1) | Stock price for common stock and Operating Partnership units equals the closing price of the common stock on March 31, 2017. The stock prices for the preferred stocks represent the liquidation preference of each respective series. |
11
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2017 and 2016
Reconciliation of Shares and Operating Partnership Units Outstanding
(In thousands)
Three Months Ended March 31, | |||||
2017: | Basic | Diluted | |||
Weighted average shares - EPS | 170,989 | 170,989 | |||
Weighted average Operating Partnership units | 28,292 | 28,292 | |||
Weighted average shares- FFO | 199,281 | 199,281 | |||
2016: | |||||
Weighted average shares - EPS | 170,669 | 170,669 | |||
Weighted average Operating Partnership units | 29,257 | 29,257 | |||
Weighted average shares- FFO | 199,926 | 199,926 | |||
Dividend Payout Ratio
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Weighted average cash dividend per share | $ | 0.27281 | $ | 0.27278 | |||
FFO, as adjusted, per diluted fully converted share | $ | 0.52 | $ | 0.56 | |||
Dividend payout ratio | 52.5 | % | 48.7 | % | |||
12
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2017
Consolidated Balance Sheets (Unaudited; in thousands, except share data) | |||||||
As of | |||||||
March 31, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Real estate assets: | |||||||
Land | $ | 852,707 | $ | 820,979 | |||
Buildings and improvements | 6,964,854 | 6,942,452 | |||||
7,817,561 | 7,763,431 | ||||||
Accumulated depreciation | (2,477,356 | ) | (2,427,108 | ) | |||
5,340,205 | 5,336,323 | ||||||
Held for sale | — | 5,861 | |||||
Developments in progress | 185,228 | 178,355 | |||||
Net investment in real estate assets | 5,525,433 | 5,520,539 | |||||
Cash and cash equivalents | 27,553 | 18,951 | |||||
Receivables: | |||||||
Tenant, net of allowance for doubtful accounts of $1,875 and $1,910 in 2017 and 2016, respectively | 90,485 | 94,676 | |||||
Other, net of allowance for doubtful accounts of $838 in 2017 and 2016 | 11,519 | 6,227 | |||||
Mortgage and other notes receivable | 16,347 | 16,803 | |||||
Investments in unconsolidated affiliates | 262,216 | 266,872 | |||||
Intangible lease assets and other assets | 196,419 | 180,572 | |||||
$ | 6,129,972 | $ | 6,104,640 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Mortgage and other indebtedness, net | $ | 4,522,480 | $ | 4,465,294 | |||
Accounts payable and accrued liabilities | 277,568 | 280,498 | |||||
Total liabilities | 4,800,048 | 4,745,792 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling partnership interests | 15,472 | 17,996 | |||||
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, 171,093,900 and 170,792,645 issued and outstanding in 2017 and 2016, respectively | 1,711 | 1,708 | |||||
Additional paid-in capital | 1,971,155 | 1,969,059 | |||||
Dividends in excess of cumulative earnings | (764,524 | ) | (742,078 | ) | |||
Total shareholders' equity | 1,208,367 | 1,228,714 | |||||
Noncontrolling interests | 106,085 | 112,138 | |||||
Total equity | 1,314,452 | 1,340,852 | |||||
$ | 6,129,972 | $ | 6,104,640 | ||||
13
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2017
Condensed Combined Financial Statements - Unconsolidated Affiliates
(Unaudited; in thousands)
As of | |||||||
March 31, 2017 | December 31, 2016 | ||||||
ASSETS: | |||||||
Investment in real estate assets | $ | 2,142,570 | $ | 2,137,666 | |||
Accumulated depreciation | (580,084 | ) | (564,612 | ) | |||
1,562,486 | 1,573,054 | ||||||
Developments in progress | 11,182 | 9,210 | |||||
Net investment in real estate assets | 1,573,668 | 1,582,264 | |||||
Other assets | 212,682 | 223,347 | |||||
Total assets | $ | 1,786,350 | $ | 1,805,611 | |||
LIABILITIES: | |||||||
Mortgage and other indebtedness, net | $ | 1,260,645 | $ | 1,266,046 | |||
Other liabilities | 41,864 | 46,160 | |||||
Total liabilities | 1,302,509 | 1,312,206 | |||||
OWNERS' EQUITY: | |||||||
The Company | 224,340 | 228,313 | |||||
Other investors | 259,501 | 265,092 | |||||
Total owners' equity | 483,841 | 493,405 | |||||
Total liabilities and owners’ equity | $ | 1,786,350 | $ | 1,805,611 | |||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Total revenues | $ | 59,699 | $ | 64,204 | |||
Depreciation and amortization | (20,629 | ) | (20,610 | ) | |||
Operating expenses | (18,748 | ) | (20,072 | ) | |||
Income from operations | 20,322 | 23,522 | |||||
Interest and other income | 400 | 336 | |||||
Interest expense | (12,838 | ) | (13,489 | ) | |||
Gain (loss) on sales of real estate assets | (71 | ) | 80,959 | ||||
Net income | $ | 7,813 | $ | 91,328 | |||
Company's Share for the Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Total revenues | $ | 29,805 | $ | 30,264 | |||
Depreciation and amortization | (9,543 | ) | (9,178 | ) | |||
Operating expenses | (8,969 | ) | (8,762 | ) | |||
Income from operations | 11,293 | 12,324 | |||||
Interest and other income | 276 | 256 | |||||
Interest expense | (6,161 | ) | (6,585 | ) | |||
Gain (loss) on sales of real estate assets | (35 | ) | 26,395 | ||||
Net income | $ | 5,373 | $ | 32,390 | |||
14
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2017
The Company presents the ratio of earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted (Adjusted EBITDA), to interest because the Company believes that the Adjusted EBITDA to interest coverage ratio, along with cash flows from operating activities, investing activities and financing activities, provides investors an additional indicator of the Company's ability to incur and service debt. Adjusted EBITDA excludes items that are not a normal result of operations, such as gain (loss) on investment, gain (loss) on extinguishment of debt, loss on impairment, abandoned projects expense and gains from dispositions, which assists the Company and investors in distinguishing changes related to the growth or decline of operations at our properties. EBITDA and Adjusted EBITDA, as presented, may not be comparable to similar measures calculated by other companies. This non-GAAP measure should not be considered as an alternative to net income, cash from operating activities or any other measure calculated in accordance with GAAP. Pro rata amounts listed below are calculated using the Company's ownership percentage in the respective joint venture and any other applicable terms.
Ratio of Adjusted EBITDA to Interest Expense
(Dollars in thousands)
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Adjusted EBITDA: | |||||||
Net income | $ | 38,518 | $ | 41,892 | |||
Adjustments: | |||||||
Depreciation and amortization | 71,220 | 76,506 | |||||
Depreciation and amortization from unconsolidated affiliates | 9,543 | 9,178 | |||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (1,979 | ) | (2,393 | ) | |||
Interest expense | 56,201 | 55,231 | |||||
Interest expense from unconsolidated affiliates | 6,161 | 6,585 | |||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,706 | ) | (1,679 | ) | |||
Income and other taxes | 50 | 345 | |||||
Equity in earnings from disposals of unconsolidated affiliates | — | (26,395 | ) | ||||
Gain on extinguishment of debt | (4,055 | ) | (6 | ) | |||
Loss on impairment | 3,263 | 19,685 | |||||
Abandoned projects | — | 1 | |||||
Net (income) loss attributable to noncontrolling interests in other consolidated subsidiaries | (713 | ) | 3,127 | ||||
Loss on depreciable property | 41 | — | |||||
Company's share of total Adjusted EBITDA | $ | 176,544 | $ | 182,077 | |||
Interest Expense: | |||||||
Interest expense | $ | 56,201 | $ | 55,231 | |||
Interest expense from unconsolidated affiliates | 6,161 | 6,585 | |||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,706 | ) | (1,679 | ) | |||
Company's share of total interest expense | $ | 60,656 | $ | 60,137 | |||
Ratio of Adjusted EBITDA to Interest Expense | 2.9 | x | 3.0 | x | |||
15
Reconciliation of Adjusted EBITDA to Cash Flows Provided By Operating Activities (In thousands) | |||||||
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Company's share of total Adjusted EBITDA | $ | 176,544 | $ | 182,077 | |||
Interest expense | (56,201 | ) | (55,231 | ) | |||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | 1,706 | 1,679 | |||||
Income and other taxes | (50 | ) | (345 | ) | |||
Net amortization of deferred financing costs, debt premiums and discounts | 1,113 | 725 | |||||
Net amortization of intangible lease assets and liabilities | (748 | ) | (622 | ) | |||
Depreciation and interest expense from unconsolidated affiliates | (15,704 | ) | (15,763 | ) | |||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | 1,979 | 2,393 | |||||
Net income (loss) attributable to noncontrolling interests in other consolidated subsidiaries | 713 | (3,127 | ) | ||||
Gains on outparcel sales | (6,029 | ) | — | ||||
Equity in earnings of unconsolidated affiliates | (5,373 | ) | (5,995 | ) | |||
Distributions of earnings from unconsolidated affiliates | 3,995 | 4,113 | |||||
Share-based compensation expense | 1,912 | 1,802 | |||||
Provision for doubtful accounts | (1,744 | ) | 2,104 | ||||
Change in deferred tax assets | 1,608 | 99 | |||||
Changes in operating assets and liabilities | 1,155 | (28,132 | ) | ||||
Cash flows provided by operating activities | $ | 104,876 | $ | 85,777 | |||
16
Supplemental Financial And Operating Information
As of March 31, 2017
Schedule of Mortgage and Other Indebtedness
(Dollars in thousands )
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | ||||||||||||||
Operating Properties: | |||||||||||||||
Chesterfield Mall | Chesterfield, MO | Sep-16 | 5.74% | $ | 140,000 | (1) | $ | 140,000 | $ | — | |||||
Acadiana Mall | Lafayette, LA | Apr-17 | 5.67% | 124,998 | 124,998 | — | |||||||||
The Outlet Shoppes at El Paso | El Paso, TX | Dec-17 | 7.06% | 62,048 | 62,048 | — | |||||||||
Statesboro Crossing | Statesboro, GA | Jun-18 | 2.58% | 10,930 | — | 10,930 | |||||||||
Kirkwood Mall | Bismarck, ND | Apr-18 | 5.75% | 37,809 | 37,809 | — | |||||||||
The Outlet Shoppes at El Paso - Phase II | El Paso, TX | Apr-18 | 3.53% | 6,712 | — | 6,712 | |||||||||
Hanes Mall | Winston-Salem, NC | Oct-18 | 6.99% | 145,550 | 145,550 | — | |||||||||
Hickory Point Mall | Forsyth, IL | Dec-18 | Dec-19 | 5.85% | 27,446 | 27,446 | — | ||||||||
Cary Towne Center | Cary, NC | Mar-19 | Mar-21 | 4.00% | 46,716 | 46,716 | — | ||||||||
The Outlet Shoppes at Oklahoma City - Phase II | Oklahoma City, OK | Apr-19 | Apr-21 | 3.53% | 5,558 | — | 5,558 | ||||||||
The Outlet Shoppes at Oklahoma City - Phase III | Oklahoma City, OK | Apr-19 | Apr-21 | 3.53% | 2,714 | — | 2,714 | ||||||||
Honey Creek Mall | Terre Haute, IN | Jul-19 | 8.00% | 26,388 | 26,388 | — | |||||||||
Volusia Mall | Daytona Beach, FL | Jul-19 | 8.00% | 45,394 | 45,394 | — | |||||||||
Greenbrier Mall | Chesapeake, VA | Dec-19 | Dec-20 | 5.00% | 70,801 | 70,801 | — | ||||||||
The Outlet Shoppes at Atlanta - Phase II | Woodstock, GA | Dec-19 | 3.28% | 4,806 | — | 4,806 | |||||||||
The Terrace | Chattanooga, TN | Jun-20 | 7.25% | 12,972 | 12,972 | — | |||||||||
Burnsville Center | Burnsville, MN | Jul-20 | 6.00% | 71,255 | 71,255 | — | |||||||||
The Outlet Shoppes of the Bluegrass - Phase II | Simpsonville, KY | Jul-20 | 3.48% | 10,495 | — | 10,495 | |||||||||
Parkway Place | Huntsville, AL | Jul-20 | 6.50% | 36,403 | 36,403 | — | |||||||||
Valley View Mall | Roanoke, VA | Jul-20 | 6.50% | 56,337 | 56,337 | — | |||||||||
Parkdale Mall & Crossing | Beaumont, TX | Mar-21 | 5.85% | 82,935 | 82,935 | — | |||||||||
EastGate Mall | Cincinnati, OH | Apr-21 | 5.83% | 36,759 | 36,759 | — | |||||||||
Hamilton Crossing & Expansion | Chattanooga, TN | Apr-21 | 5.99% | 9,303 | 9,303 | — | |||||||||
Park Plaza Mall | Little Rock, AR | Apr-21 | 5.28% | 86,087 | 86,087 | — | |||||||||
Wausau Center | Wausau, WI | Apr-21 | 5.85% | 17,689 | (1) | 17,689 | — | ||||||||
Fayette Mall | Lexington, KY | May-21 | 5.42% | 161,051 | 161,051 | — | |||||||||
Alamance Crossing - East | Burlington, NC | Jul-21 | 5.83% | 46,950 | 46,950 | — | |||||||||
Asheville Mall | Asheville, NC | Sep-21 | 5.80% | 69,252 | 69,252 | — | |||||||||
Cross Creek Mall | Fayetteville, NC | Jan-22 | 4.54% | 122,451 | 122,451 | — | |||||||||
The Outlet Shoppes at Oklahoma City | Oklahoma City, OK | Jan-22 | 5.73% | 53,507 | 53,507 | — | |||||||||
Northwoods Mall | North Charleston, SC | Apr-22 | 5.08% | 67,500 | 67,500 | — | |||||||||
Arbor Place | Atlanta (Douglasville), GA | May-22 | 5.10% | 113,033 | 113,033 | — | |||||||||
CBL Center | Chattanooga, TN | Jun-22 | 5.00% | 18,996 | 18,996 | — | |||||||||
Jefferson Mall | Louisville, KY | Jun-22 | 4.75% | 65,720 | 65,720 | — | |||||||||
Southpark Mall | Colonial Heights, VA | Jun-22 | 4.85% | 61,938 | 61,938 | — | |||||||||
WestGate Mall | Spartanburg, SC | Jul-22 | 4.99% | 35,768 | 35,768 | — | |||||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | Nov-23 | 4.90% | 75,755 | 75,755 | — | |||||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | Dec-24 | 4.05% | 74,374 | 74,374 | — | |||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | Oct-25 | 4.80% | 38,450 | 38,450 | — | |||||||||
17
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | ||||||||||||||
Hamilton Place | Chattanooga, TN | Jun-26 | 4.36% | 105,681 | 105,681 | — | |||||||||
SUBTOTAL | 2,288,531 | 2,247,316 | 41,215 | ||||||||||||
Weighted-average interest rate | 5.49 | % | 5.53 | % | 3.24 | % | |||||||||
Debt Premiums : (2) | 1,620 | 1,620 | — | ||||||||||||
Total Loans On Operating Properties And Debt Premiums | 2,290,151 | 2,248,936 | 41,215 | ||||||||||||
Weighted-average interest rate | 5.49 | % | 5.53 | % | 3.24 | % | |||||||||
Construction Loan: | |||||||||||||||
The Outlet Shoppes at Laredo | Laredo, TX | May-19 | May-21 | 3.28% | 56,243 | — | 56,243 | ||||||||
Operating Partnership Debt: | |||||||||||||||
Unsecured credit facilities: | |||||||||||||||
$500,000 capacity | Oct-19 | Oct-20 | 2.01% | — | — | — | |||||||||
$100,000 capacity | Oct-19 | Oct-20 | 2.18% | 27,400 | — | 27,400 | |||||||||
$500,000 capacity | Oct-20 | 2.01% | 224,705 | — | 224,705 | ||||||||||
SUBTOTAL | 252,105 | — | 252,105 | ||||||||||||
Unsecured term loans: | |||||||||||||||
$350,000 term loan | Oct-17 | Oct-19 | 2.13% | 350,000 | — | 350,000 | |||||||||
$50,000 term loan | Feb-18 | 2.53% | 50,000 | — | 50,000 | ||||||||||
$400,000 term loan | Jul-18 | 2.28% | 400,000 | — | 400,000 | ||||||||||
SUBTOTAL | 800,000 | — | 800,000 | ||||||||||||
Senior unsecured notes: | |||||||||||||||
Senior unsecured 5.25% notes | Dec-23 | 5.25% | 450,000 | 450,000 | — | ||||||||||
Senior unsecured 5.25% notes (discount) | Dec-23 | 5.25% | (3,344 | ) | (3,344 | ) | — | ||||||||
Senior unsecured 4.60% notes | Oct-24 | 4.60% | 300,000 | 300,000 | — | ||||||||||
Senior unsecured 4.60% notes (discount) | Oct-24 | 4.60% | (59 | ) | (59 | ) | — | ||||||||
Senior unsecured 5.95% notes | Dec-26 | 5.95% | 400,000 | 400,000 | — | ||||||||||
Senior unsecured 5.95% notes (discount) | Dec-26 | 5.95% | (5,633 | ) | (5,633 | ) | — | ||||||||
SUBTOTAL | 1,140,964 | 1,140,964 | — | ||||||||||||
Total Consolidated Debt | $ | 4,539,463 | (3) | $ | 3,389,900 | $ | 1,149,563 | ||||||||
Weighted-average interest rate | 4.65 | % | 5.46 | % | 2.28 | % | |||||||||
Plus CBL's Share Of Unconsolidated Affiliates' Debt: | |||||||||||||||
Gulf Coast Town Center - Phase III | Ft. Myers, FL | Jul-17 | 3.00% | $ | 2,142 | $ | — | $ | 2,142 | ||||||
Ambassador Town Center Infrastructure Improvements | Lafayette, LA | Dec-17 | Dec-19 | 2.79% | 11,035 | — | 11,035 | ||||||||
Hammock Landing - Phase I | West Melbourne, FL | Feb-18 | Feb-19 | 2.78% | 21,348 | — | 21,348 | ||||||||
Hammock Landing - Phase II | West Melbourne, FL | Feb-18 | Feb-19 | 2.78% | 8,249 | — | 8,249 | ||||||||
The Pavilion at Port Orange | Port Orange, FL | Feb-18 | Feb-19 | 2.78% | 28,859 | — | 28,859 | ||||||||
CoolSprings Galleria | Nashville, TN | Jun-18 | 6.98% | 50,225 | 50,225 | — | |||||||||
Triangle Town Center | Raleigh, NC | Dec-18 | Dec-20 | 4.00% | 14,019 | 14,019 | — | ||||||||
18
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | ||||||||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 16,786 | 16,786 | — | |||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 3.56% | 666 | — | 666 | |||||||||
West County Center | St. Louis, MO | Dec-22 | 3.40% | 92,727 | 92,727 | — | |||||||||
The Shops at Friendly Center | Greensboro, NC | Apr-23 | 3.34% | 30,000 | 30,000 | — | |||||||||
Friendly Shopping Center | Greensboro, NC | Apr-23 | 3.48% | 49,118 | 49,118 | — | |||||||||
Ambassador Town Center | Lafayette, LA | Jun-23 | 3.22% | 30,495 | (4) | 30,495 | — | ||||||||
Coastal Grand Outparcel | Myrtle Beach, SC | Aug-24 | 4.09% | 2,766 | 2,766 | — | |||||||||
Coastal Grand | Myrtle Beach, SC | Aug-24 | 4.09% | 57,317 | 57,317 | — | |||||||||
Oak Park Mall | Overland Park, KS | Oct-25 | 3.97% | 138,000 | 138,000 | — | |||||||||
Fremaux Town Center - Phase I | Slidell, LA | Jun-26 | 3.70% | 46,587 | 46,587 | — | |||||||||
SUBTOTAL | 600,339 | (3) | 528,040 | 72,299 | |||||||||||
Less Noncontrolling Interests' Share Of Consolidated Debt: | Noncontrolling Interest % | ||||||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 25% | 7.06% | (15,512 | ) | (15,512 | ) | — | |||||||
Statesboro Crossing | Statesboro, GA | 50% | 2.58% | (5,465 | ) | — | (5,465 | ) | |||||||
The Outlet Shoppes at Oklahoma City - Phase II | Oklahoma City, OK | 25% | 3.53% | (1,390 | ) | — | (1,390 | ) | |||||||
The Terrace | Chattanooga, TN | 8% | 7.25% | (1,038 | ) | (1,038 | ) | — | |||||||
Hamilton Crossing & Expansion | Chattanooga, TN | 8% | 5.99% | (744 | ) | (744 | ) | — | |||||||
The Outlet Shoppes at Oklahoma City | Oklahoma City, OK | 25% | 5.73% | (13,377 | ) | (13,377 | ) | — | |||||||
CBL Center | Chattanooga, TN | 8% | 5.00% | (1,520 | ) | (1,520 | ) | — | |||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | 25% | 4.90% | (18,939 | ) | (18,939 | ) | — | |||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | 35% | 4.05% | (26,031 | ) | (26,031 | ) | — | |||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | 50% | 4.80% | (19,225 | ) | (19,225 | ) | — | |||||||
Hamilton Place | Chattanooga, TN | 10% | 4.36% | (10,568 | ) | (10,568 | ) | — | |||||||
(113,809 | ) | (106,954 | ) | (6,855 | ) | ||||||||||
Less Noncontrolling Interests' Share Of Debt Premiums: (2) | |||||||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 25% | 4.75% | (243 | ) | (243 | ) | — | |||||||
SUBTOTAL | (114,052 | ) | (3) | (107,197 | ) | (6,855 | ) | ||||||||
Company's Share Of Consolidated And Unconsolidated Debt | $ | 5,025,750 | (3) | $ | 3,810,743 | $ | 1,215,007 | ||||||||
Weighted-average interest rate | 4.56 | % | 5.28 | % | 2.31 | % | |||||||||
Total Debt of Unconsolidated Affiliates: | |||||||||||||||
Gulf Coast Town Center - Phase III | Ft. Myers, FL | Jul-17 | 3.00% | $ | 4,284 | $ | — | $ | 4,284 | ||||||
Ambassador Town Center Infrastructure Improvements | Lafayette, LA | Dec-17 | Dec-19 | 2.79% | 11,035 | — | 11,035 | ||||||||
Hammock Landing - Phase I | West Melbourne, FL | Feb-18 | Feb-19 | 2.78% | 42,697 | — | 42,697 | ||||||||
Hammock Landing - Phase II | West Melbourne, FL | Feb-18 | Feb-19 | 2.78% | 16,497 | — | 16,497 | ||||||||
The Pavilion at Port Orange | Port Orange, FL | Feb-18 | Feb-19 | 2.78% | 57,718 | — | 57,718 | ||||||||
CoolSprings Galleria | Nashville, TN | Jun-18 | 6.98% | 100,450 | 100,450 | — | |||||||||
Triangle Town Center | Raleigh, NC | Dec-18 | Dec-20 | 4.00% | 140,196 | 140,196 | — | ||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 33,571 | 33,571 | — | |||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 3.56% | 1,331 | — | 1,331 | |||||||||
19
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | ||||||||||||||
West County Center | St. Louis, MO | Dec-22 | 3.40% | 185,454 | 185,454 | — | |||||||||
The Shops at Friendly Center | Greensboro, NC | Apr-23 | 3.34% | 60,000 | 60,000 | — | |||||||||
Friendly Shopping Center | Greensboro, NC | Apr-23 | 3.48% | 98,237 | 98,237 | — | |||||||||
Ambassador Town Center | Lafayette, LA | Jun-23 | 3.22% | 46,916 | (4) | 46,916 | — | ||||||||
Coastal Grand Outparcel | Myrtle Beach, SC | Aug-24 | 4.09% | 5,531 | 5,531 | — | |||||||||
Coastal Grand | Myrtle Beach, SC | Aug-24 | 4.09% | 114,634 | 114,634 | — | |||||||||
Oak Park Mall | Overland Park, KS | Oct-25 | 3.97% | 276,000 | 276,000 | — | |||||||||
Fremaux Town Center | Slidell, LA | Jun-26 | 3.70% | 71,672 | 71,672 | — | |||||||||
$ | 1,266,223 | $ | 1,132,661 | $ | 133,562 | ||||||||||
Weighted-average interest rate | 3.93 | % | 4.06 | % | 2.80 | % | |||||||||
(1) | The nonrecourse loan secured by the property is in default and receivership. |
(2) | The weighted-average interest rates used for debt premiums reflects the market interest rate in effect as of the assumption of the related debt. |
(3) | See page 11 for unamortized deferred financing costs. |
(4) | The joint venture has an interest rate swap on a notional amount of $46,916, amortizing to $38,866 over the term of the swap, related to Ambassador Town Center to effectively fix the interest rate on that variable-rate loan. Therefore, this amount is currently reflected as having a fixed rate. |
20
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2017
Schedule of Maturities of Mortgage and Other Indebtedness
(Dollars in thousands)
Based on Maturity Dates As Though All Extension Options Available Have Been Exercised:
Year | Consolidated Debt | CBL's Share of Unconsolidated Affiliates' Debt | Noncontrolling Interests' Share of Consolidated Debt | CBL's Share of Consolidated and Unconsolidated Debt | % of Total | Weighted Average Interest Rate | ||||||||||||||||
2016 | $ | 140,000 | (1) | $ | — | $ | — | $ | 140,000 | 2.79 | % | 5.74 | % | |||||||||
2017 | 187,046 | 2,142 | (15,512 | ) | 173,676 | 3.45 | % | 6.00 | % | |||||||||||||
2018 | 651,001 | 50,225 | (5,465 | ) | 695,761 | 13.84 | % | 3.83 | % | |||||||||||||
2019 | 454,034 | 69,491 | — | 523,525 | 10.42 | % | 3.23 | % | ||||||||||||||
2020 | 510,368 | 14,019 | (1,038 | ) | 523,349 | 10.41 | % | 3.97 | % | |||||||||||||
2021 | 621,257 | (2) | — | (2,134 | ) | 619,123 | 12.32 | % | 5.25 | % | ||||||||||||
2022 | 538,913 | 110,179 | (14,897 | ) | 634,195 | 12.62 | % | 4.70 | % | |||||||||||||
2023 | 525,755 | 109,613 | (18,939 | ) | 616,429 | 12.26 | % | 4.88 | % | |||||||||||||
2024 | 374,374 | 60,083 | (26,031 | ) | 408,426 | 8.13 | % | 4.46 | % | |||||||||||||
2025 | 38,450 | 138,000 | (19,225 | ) | 157,225 | 3.13 | % | 4.07 | % | |||||||||||||
2026 | 505,681 | 46,587 | (10,568 | ) | 541,700 | 10.78 | % | 5.47 | % | |||||||||||||
Face Amount of Debt | 4,546,879 | 600,339 | (113,809 | ) | 5,033,409 | 100.15 | % | 4.56 | % | |||||||||||||
Net Premiums (Discounts) | (7,416 | ) | — | (243 | ) | (7,659 | ) | (0.15 | )% | — | % | |||||||||||
Total | $ | 4,539,463 | $ | 600,339 | $ | (114,052 | ) | $ | 5,025,750 | 100.00 | % | 4.56 | % | |||||||||
Based on Original Maturity Dates:
Year | Consolidated Debt | CBL's Share of Unconsolidated Affiliates' Debt | Noncontrolling Interests' Share of Consolidated Debt | CBL's Share of Consolidated and Unconsolidated Debt | % of Total | Weighted Average Interest Rate | ||||||||||||||||
2016 | $ | 140,000 | (1) | $ | — | $ | — | $ | 140,000 | 2.79 | % | 5.74 | % | |||||||||
2017 | 537,046 | 13,177 | (15,512 | ) | 534,711 | 10.64 | % | 3.40 | % | |||||||||||||
2018 | 678,447 | 122,700 | (5,465 | ) | 795,682 | 15.83 | % | 3.82 | % | |||||||||||||
2019 | 286,020 | — | (1,390 | ) | 284,630 | 5.66 | % | 4.92 | % | |||||||||||||
2020 | 412,167 | — | (1,038 | ) | 411,129 | 8.18 | % | 3.90 | % | |||||||||||||
2021 | 510,026 | (2) | — | (744 | ) | 509,282 | 10.13 | % | 5.61 | % | ||||||||||||
2022 | 538,913 | 110,179 | (14,897 | ) | 634,195 | 12.62 | % | 4.70 | % | |||||||||||||
2023 | 525,755 | 109,613 | (18,939 | ) | 616,429 | 12.26 | % | 4.88 | % | |||||||||||||
2024 | 374,374 | 60,083 | (26,031 | ) | 408,426 | 8.13 | % | 4.46 | % | |||||||||||||
2025 | 38,450 | 138,000 | (19,225 | ) | 157,225 | 3.13 | % | 4.07 | % | |||||||||||||
2026 | 505,681 | 46,587 | (10,568 | ) | 541,700 | 10.78 | % | 5.47 | % | |||||||||||||
Face Amount of Debt | 4,546,879 | 600,339 | (113,809 | ) | 5,033,409 | 100.15 | % | 4.56 | % | |||||||||||||
Net Premiums (Discounts) | (7,416 | ) | — | (243 | ) | (7,659 | ) | (0.15 | )% | — | % | |||||||||||
Total | $ | 4,539,463 | $ | 600,339 | $ | (114,052 | ) | $ | 5,025,750 | 100.00 | % | 4.56 | % | |||||||||
(1) | Represents a non-recourse loan that is in default and receivership. |
(2) | Includes a non-recourse loan with a principal balance of $17,689 that is in default and receivership. |
21
Unsecured Debt Covenant Compliance Ratios | Required | Actual | ||
Debt to total asset value | < 60% | 49% | ||
Unencumbered asset value to unsecured indebtedness | > 1.6x | 2.3x | ||
Unencumbered NOI to unsecured interest expense | > 1.75x | 3.7x | ||
EBITDA to fixed charges (debt service) | > 1.5x | 2.5x | ||
Senior Unsecured Notes Compliance Ratios | Required | Actual | ||
Total debt to total assets | < 60% | 53% | ||
Secured debt to total assets | < 45% | (1) | 27% | |
Total unencumbered assets to unsecured debt | > 150% | 211% | ||
Consolidated income available for debt service to annual debt service charge | > 1.5x | 3.1x | ||
(1) | The required ratio of secured debt to total assets for the 2026 Notes is 40% or less. |
22
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2017
Mall Portfolio Statistics
TIER 1 Sales ≥ $375 per square foot | |||||||||||||||||||||
Property | Location | Total GLA | Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Three Months Ended 3/31/17 (2) | ||||||||||||||||
3/31/17 | 3/31/16 | 3/31/17 | 3/31/16 | ||||||||||||||||||
Coastal Grand | Myrtle Beach, SC | 1,039,740 | |||||||||||||||||||
CoolSprings Galleria | Nashville, TN | 1,142,750 | |||||||||||||||||||
Cross Creek Mall | Fayetteville, NC | 1,045,311 | |||||||||||||||||||
Fayette Mall | Lexington, KY | 1,201,868 | |||||||||||||||||||
Friendly Center and The Shops at Friendly | Greensboro, NC | 1,132,352 | |||||||||||||||||||
Governor's Square | Clarksville, TN | 719,562 | |||||||||||||||||||
Hamilton Place | Chattanooga, TN | 1,150,185 | |||||||||||||||||||
Hanes Mall | Winston-Salem, NC | 1,476,849 | |||||||||||||||||||
Jefferson Mall | Louisville, KY | 900,417 | |||||||||||||||||||
Mall del Norte | Laredo, TX | 1,178,220 | |||||||||||||||||||
Mayfaire Town Center | Wilmington, NC | 616,389 | |||||||||||||||||||
Northwoods Mall | North Charleston, SC | 771,526 | |||||||||||||||||||
Oak Park Mall | Overland Park, KS | 1,609,095 | |||||||||||||||||||
Old Hickory Mall | Jackson, TN | 538,991 | |||||||||||||||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | 414,506 | |||||||||||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 433,046 | |||||||||||||||||||
The Outlet Shoppes of the Bluegrass (3) | Simpsonville, KY | 428,073 | |||||||||||||||||||
Post Oak Mall | College Station, TX | 759,632 | |||||||||||||||||||
Richland Mall | Waco, TX | 686,628 | |||||||||||||||||||
Sunrise Mall | Brownsville, TX | 801,392 | |||||||||||||||||||
Volusia Mall | Daytona Beach, FL | 1,067,694 | |||||||||||||||||||
West County Center | Des Peres, MO | 1,197,210 | |||||||||||||||||||
West Towne Mall | Madison, WI | 823,505 | |||||||||||||||||||
Total Tier 1 Malls | 21,134,941 | $ | 435 | $ | 443 | 92.8 | % | 92.9 | % | 41.4 | % | ||||||||||
TIER 2 Sales of ≥ $300 to < $375 per square foot | ||||||||||||||
Property | Location | Total GLA | Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Three Months Ended 3/31/17 (2) | |||||||||
3/31/17 | 3/31/16 | 3/31/17 | 3/31/16 | |||||||||||
Acadiana Mall | Lafayette, LA | 991,564 | ||||||||||||
Arbor Place | Atlanta (Douglasville), GA | 1,163,432 | ||||||||||||
Asheville Mall | Asheville, NC | 974,223 | ||||||||||||
Brookfield Square | Brookfield, WI | 1,032,242 | ||||||||||||
Burnsville Center | Burnsville, MN | 1,046,359 | ||||||||||||
CherryVale Mall | Rockford, IL | 849,253 | ||||||||||||
Dakota Square Mall | Minot, ND | 812,372 | ||||||||||||
East Towne Mall | Madison, WI | 787,389 | ||||||||||||
EastGate Mall | Cincinnati, OH | 860,830 | ||||||||||||
Eastland Mall | Bloomington, IL | 760,842 | ||||||||||||
Frontier Mall | Cheyenne, WY | 524,075 | ||||||||||||
Greenbrier Mall | Chesapeake, VA | 890,852 | ||||||||||||
Harford Mall | Bel Air, MD | 505,483 | ||||||||||||
Honey Creek Mall | Terre Haute, IN | 677,322 | ||||||||||||
Imperial Valley Mall | El Centro, CA | 827,648 | ||||||||||||
23
Mall Portfolio Statistics (continued)
TIER 2 Sales of ≥ $300 to < $375 per square foot | |||||||||||||||||||||
Property | Location | Total GLA | Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Three Months Ended 3/31/17 (2) | ||||||||||||||||
3/31/17 | 3/31/16 | 3/31/17 | 3/31/16 | ||||||||||||||||||
Kirkwood Mall | Bismarck, ND | 842,426 | |||||||||||||||||||
Laurel Park Place | Livonia, MI | 494,886 | |||||||||||||||||||
Layton Hills Mall | Layton, UT | 557,333 | |||||||||||||||||||
Meridian Mall | Lansing, MI | 972,186 | |||||||||||||||||||
Mid Rivers Mall | St. Peters, MO | 1,076,184 | |||||||||||||||||||
Northgate Mall | Chattanooga, TN | 762,381 | |||||||||||||||||||
Northpark Mall | Joplin, MO | 934,548 | |||||||||||||||||||
The Outlet Shoppes at Oklahoma City | Oklahoma City, OK | 394,240 | |||||||||||||||||||
Park Plaza | Little Rock, AR | 540,167 | |||||||||||||||||||
Parkdale Mall | Beaumont, TX | 1,248,667 | |||||||||||||||||||
Parkway Place | Huntsville, AL | 648,271 | |||||||||||||||||||
Pearland Town Center | Pearland, TX | 646,995 | |||||||||||||||||||
South County Center | St. Louis, MO | 1,044,109 | |||||||||||||||||||
Southaven Towne Center | Southaven, MS | 567,640 | |||||||||||||||||||
Southpark Mall | Colonial Heights, VA | 672,975 | |||||||||||||||||||
St. Clair Square | Fairview Heights, IL | 1,084,872 | |||||||||||||||||||
Turtle Creek Mall | Hattiesburg, MS | 846,121 | |||||||||||||||||||
Valley View Mall | Roanoke, VA | 837,428 | |||||||||||||||||||
WestGate Mall | Spartanburg, SC | 955,682 | |||||||||||||||||||
Westmoreland Mall | Greensburg, PA | 979,631 | |||||||||||||||||||
York Galleria | York, PA | 751,892 | |||||||||||||||||||
Total Tier 2 Malls | 29,562,520 | $ | 336 | $ | 351 | 89.6 | % | 91.2 | % | 49.2 | % | ||||||||||
TIER 3 Sales < $300 per square foot | |||||||||||||||||||||
Property | Location | Total GLA | Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Three Months Ended 3/31/17 (2) | ||||||||||||||||
3/31/17 | 3/31/16 | 3/31/17 | 3/31/16 | ||||||||||||||||||
Alamance Crossing | Burlington, NC | 886,709 | |||||||||||||||||||
College Square | Morristown, TN | 450,398 | |||||||||||||||||||
Foothills Mall | Maryville, TN | 463,751 | |||||||||||||||||||
Janesville Mall | Janesville, WI | 600,710 | |||||||||||||||||||
Kentucky Oaks Mall | Paducah, KY | 1,064,750 | |||||||||||||||||||
Monroeville Mall | Pittsburgh, PA | 1,077,520 | |||||||||||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | 249,937 | |||||||||||||||||||
Stroud Mall | Stroudsburg, PA | 403,258 | |||||||||||||||||||
Total Tier 3 Malls | 5,197,033 | $ | 265 | $ | 266 | 85.3 | % | 86.6 | % | 6.1 | % | ||||||||||
Total Mall Portfolio | 55,894,494 | $ | 372 | $ | 382 | 90.5 | % | 90.9 | % | 96.7 | % | ||||||||||
24
Mall Portfolio Statistics (continued)
Excluded Malls (4) | ||||||||||||||||
Property | Category | Location | Total GLA | Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Three Months Ended 3/31/17 (2) | ||||||||||
3/31/17 | 3/31/16 | 3/31/17 | 3/31/16 | |||||||||||||
Lender Malls: | ||||||||||||||||
Chesterfield Mall | Lender | Chesterfield, MO | 1,264,857 | |||||||||||||
Wausau Center | Lender | Wausau, WI | 423,774 | |||||||||||||
1,688,631 | ||||||||||||||||
Other Excluded Malls: | ||||||||||||||||
Cary Towne Center | Repositioning | Cary, NC | 927,914 | |||||||||||||
Hickory Point Mall | Repositioning | Forsyth, IL | 815,323 | |||||||||||||
River Ridge Mall | Minority Interest | Lynchburg, VA | 768,303 | |||||||||||||
Triangle Town Center | Minority Interest | Raleigh, NC | 1,255,413 | |||||||||||||
3,766,953 | ||||||||||||||||
Total Excluded Malls | 5,455,584 | N/A | N/A | N/A | N/A | 3.3 | % | |||||||||
(1) | Represents same-center sales per square foot for mall tenants 10,000 square feet or less for stabilized malls. |
(2) | Based on total mall NOI of $162,783,080 for the malls listed in the table above for the three months ended March 31, 2017. |
(3) | The Outlet Shoppes of the Bluegrass is a non-stabilized mall and is excluded from Sales Per Square Foot. |
(4) | Excluded Malls represent malls that fall in the following categories, for which operational metrics are excluded: |
• | Lender Malls - Malls for which we are working or intend to work with the lender on the terms of the loan secured by the related property. |
• | Repositioning Malls - Malls where we have determined that the current format of the property no longer represents the best use of the property and we are in the process of evaluating alternative strategies for the property, which may include major redevelopment or an alternative retail or non-retail format, or after evaluating alternative strategies for the property, we have determined that the property no longer meets our criteria for long-term investment. |
• | Minority Interest Malls - Malls in which we own an interest of 25% or less. |
25
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2017
Unencumbered Portfolio Statistics
Sales Per Square Foot for the Twelve Months Ended (1) (2) | Occupancy (2) | % of Consolidated Unencumbered NOI for the Three Months Ended 03/31/17 (3) | ||||||||||||||||
03/31/17 | 03/31/16 | 03/31/17 | 03/31/16 | |||||||||||||||
Unencumbered consolidated properties: | ||||||||||||||||||
Tier 1 Malls | $ | 424 | $ | 439 | 91.1 | % | 88.8 | % | 28.5 | % | ||||||||
Tier 2 Malls | 327 | 343 | 88.9 | % | 91.6 | % | 52.9 | % | ||||||||||
Tier 3 Malls | 264 | 266 | 87.4 | % | 87.1 | % | 7.9 | % | ||||||||||
Total Malls | $ | 343 | $ | 357 | 89.3 | % | 90.4 | % | 89.3 | % | ||||||||
Total Associated Centers | N/A | N/A | 97.6 | % | 92.7 | % | 6.0 | % | ||||||||||
Total Community Centers | N/A | N/A | 99.0 | % | 99.0 | % | 3.5 | % | ||||||||||
Total Office Buildings and Other | N/A | N/A | 90.3 | % | 94.1 | % | 1.2 | % | ||||||||||
Total Unencumbered Consolidated Portfolio | $ | 343 | $ | 357 | 91.4 | % | 91.4 | % | 100.0 | % | ||||||||
(1) | Represents same-center sales per square foot for mall tenants 10,000 square feet or less for stabilized malls. |
(2) | Operating metrics are included for unencumbered operating properties and do not include sales or occupancy of unencumbered parcels. |
(3) | Our consolidated unencumbered properties generated approximately 51.6% of total consolidated NOI of $164,689 (which excludes NOI related to dispositions) for the three months ended March 31, 2017. |
26
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2017
New and Renewal Leasing Activity of Same Small Shop Space Less Than 10,000 Square Feet
Property Type | Square Feet | Prior Gross Rent PSF | New Initial Gross Rent PSF | % Change Initial | New Average Gross Rent PSF (2) | % Change Average | |||||||||||||||
All Property Types (1) | 575,849 | $ | 41.52 | $ | 41.12 | (1.0 | )% | $ | 42.33 | 2.0 | % | ||||||||||
Stabilized malls | 527,407 | 42.76 | 42.28 | (1.1 | )% | 43.55 | 1.8 | % | |||||||||||||
New leases | 131,342 | 42.27 | 47.65 | 12.7 | % | 49.84 | 17.9 | % | |||||||||||||
Renewal leases | 396,065 | 42.92 | 40.50 | (5.6 | )% | 41.46 | (3.4 | )% | |||||||||||||
Average Annual Base Rents Per Square Foot (3) By Property Type For Small Shop Space Less Than 10,000 Square Feet: | ||||||||||||
Total Leasing Activity: | ||||||||||||
Operating Portfolio: | As of March 31, | |||||||||||
New leases | 288,972 | 2017 | 2016 | |||||||||
Renewal leases | 549,569 | Same-center stabilized malls | $ | 32.61 | $ | 32.02 | ||||||
Development Portfolio: | Stabilized malls | 32.76 | 31.76 | |||||||||
New leases | 101,088 | Non-stabilized malls (4) | 25.65 | 26.09 | ||||||||
Total leased | 939,629 | Associated centers | 13.74 | 13.93 | ||||||||
Community centers | 15.98 | 15.87 | ||||||||||
Office buildings | 19.03 | 19.69 | ||||||||||
(1) | Includes stabilized malls, associated centers, community centers and other. |
(2) | Average gross rent does not incorporate allowable future increases for recoverable common area expenses. |
(3) | Average annual base rents per square foot are based on contractual rents in effect as of March 31, 2017, including the impact of any rent concessions. Average base rents for associated centers, community centers and office buildings include all leased space, regardless of size. |
(4) | Includes The Outlet Shoppes of the Bluegrass as of March 31, 2017 and The Outlet Shoppes of the Bluegrass and The Outlet Shoppes at Atlanta as of March 31, 2016. |
27
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2017
New and Renewal Leasing Activity of Same Small Shop Space Less Than 10,000 Square Feet
For the Three Months Ended March 31, 2017 Based on Commencement Date
Number of Leases | Square Feet | Term (in years) | Initial Rent PSF | Average Rent PSF | Expiring Rent PSF | Initial Rent Spread | Average Rent Spread | ||||||||||||||||||||||||||||
Commencement 2017: | |||||||||||||||||||||||||||||||||||
New | 95 | 261,997 | 8.35 | $ | 49.90 | $ | 52.61 | $ | 41.87 | $ | 8.03 | 19.2 | % | $ | 10.74 | 25.7 | % | ||||||||||||||||||
Renewal | 261 | 739,011 | 3.68 | 37.94 | 38.70 | 39.27 | (1.33 | ) | (3.4 | )% | (0.57 | ) | (1.5 | )% | |||||||||||||||||||||
Commencement 2017 Total | 356 | 1,001,008 | 4.92 | $ | 41.07 | $ | 42.34 | $ | 39.95 | $ | 1.12 | 2.8 | % | $ | 2.39 | 6.0 | % | ||||||||||||||||||
Commencement 2018: | |||||||||||||||||||||||||||||||||||
New | 3 | 14,598 | 7.86 | $ | 48.39 | $ | 49.23 | $ | 39.20 | $ | 9.19 | 23.4 | % | $ | 10.03 | 25.6 | % | ||||||||||||||||||
Renewal | 38 | 114,389 | 4.95 | 48.32 | 49.82 | 46.09 | 2.23 | 4.8 | % | 3.73 | 8.1 | % | |||||||||||||||||||||||
Commencement 2018 Total | 41 | 128,987 | 5.16 | $ | 48.33 | $ | 49.75 | $ | 45.31 | $ | 3.02 | 6.7 | % | $ | 4.44 | 9.8 | % | ||||||||||||||||||
Total 2017/2018 | 397 | 1,129,995 | 4.95 | $ | 41.90 | $ | 43.19 | $ | 40.56 | $ | 1.34 | 3.3 | % | $ | 2.63 | 6.5 | % | ||||||||||||||||||
28
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2017
Top 25 Tenants Based On Percentage Of Total Annual Revenues
Tenant | Number of Stores | Square Feet | Percentage of Total Annualized Revenues (1) | ||||||||
1 | L Brands, Inc. (2) | 146 | 842,116 | 3.66% | |||||||
2 | Signet Jewelers Limited (3) | 196 | 285,419 | 2.93% | |||||||
3 | Foot Locker, Inc. | 120 | 544,060 | 2.46% | |||||||
4 | Ascena Retail Group, Inc. (4) | 185 | 942,693 | 2.40% | |||||||
5 | AE Outfitters Retail Company | 71 | 441,332 | 1.97% | |||||||
6 | Genesco Inc. (5) | 176 | 285,066 | 1.71% | |||||||
7 | Dick's Sporting Goods, Inc. (6) | 27 | 1,534,783 | 1.65% | |||||||
8 | The Gap, Inc. | 59 | 671,222 | 1.55% | |||||||
9 | Luxottica Group, S.P.A. (7) | 107 | 240,372 | 1.24% | |||||||
10 | Express Fashions | 40 | 332,070 | 1.21% | |||||||
11 | Forever 21 Retail, Inc. | 22 | 436,011 | 1.17% | |||||||
12 | Finish Line, Inc. | 51 | 269,844 | 1.17% | |||||||
13 | The Buckle, Inc. | 47 | 244,767 | 1.05% | |||||||
14 | Charlotte Russe Holding, Inc. | 49 | 311,906 | 1.02% | |||||||
15 | Abercrombie & Fitch, Co. | 44 | 292,229 | 1.02% | |||||||
16 | JC Penney Company, Inc. (8) | 53 | 6,244,617 | 0.99% | |||||||
17 | H&M | 34 | 701,888 | 0.93% | |||||||
18 | Shoe Show, Inc. | 44 | 562,702 | 0.84% | |||||||
19 | Barnes & Noble Inc. | 19 | 579,660 | 0.76% | |||||||
20 | Claire's Stores, Inc. | 95 | 120,010 | 0.76% | |||||||
21 | Cinemark | 9 | 496,713 | 0.76% | |||||||
22 | Best Buy Co., Inc. (9) | 47 | 455,343 | 0.75% | |||||||
23 | The Children's Place Retail Stores, Inc. | 54 | 235,673 | 0.74% | |||||||
24 | Aeropostale, Inc. | 44 | 175,168 | 0.70% | |||||||
25 | Hot Topic, Inc. | 84 | 185,016 | 0.68% | |||||||
1,823 | 17,430,680 | 34.12% | |||||||||
(1) | Includes the Company's proportionate share of revenues from unconsolidated affiliates based on the Company's ownership percentage in the respective joint venture and any other applicable terms. | ||||||||||
(2) | L Brands, Inc. operates Victoria's Secret, PINK, White Barn Candle and Bath & Body Works. | ||||||||||
(3) | Signet Jewelers Limited operates Kay Jewelers, Marks & Morgan, JB Robinson, Shaw's Jewelers, Osterman's Jewelers, LeRoy's Jewelers, Jared Jewelers, Belden Jewelers, Ultra Diamonds, Rogers Jewelers, Zales, Peoples and Piercing Pagoda. | ||||||||||
(4) | Ascena Retail Group, Inc. operates Justice, Dressbarn, Maurices, Lane Bryant, Catherines, Ann Taylor, LOFT, and Lou & Grey. | ||||||||||
(5) | Genesco Inc. operates Journey's, Underground by Journeys, Shi by Journey's, Johnston & Murphy, Hat Shack, Lids, Hat Zone and Clubhouse stores. | ||||||||||
(6) | Dick's Sporting Goods, Inc. operates Dick's Sporting Goods, Golf Galaxy and Field & Stream stores. | ||||||||||
(7) | Luxottica Group, S.P.A. operates Lenscrafters, Sunglass Hut, and Pearle Vision. | ||||||||||
(8) | JC Penney Co., Inc. owns 30 of these stores. | ||||||||||
(9) | Best Buy Co., Inc. operates Best Buy and Best Buy Mobile. | ||||||||||
29
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2017
Capital Expenditures
(In thousands)
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Tenant allowances (1) | $ | 9,516 | $ | 11,645 | |||
Renovations (2) | 502 | 3,114 | |||||
Deferred maintenance: (3) | |||||||
Parking lot and parking lot lighting | 1,825 | 720 | |||||
Roof repairs and replacements | 614 | 669 | |||||
Other capital expenditures | 5,215 | 4,125 | |||||
Total deferred maintenance expenditures | 7,654 | 5,514 | |||||
Total capital expenditures | $ | 17,672 | $ | 20,273 | |||
(1) | Tenant allowances, sometimes made to third-generation tenants, are recovered through minimum rents from the tenants over the term of the lease. |
(2) | Renovation capital expenditures for remodelings and upgrades to enhance our competitive position in the market area. A portion of these expenditures covering items such as new floor coverings, painting, lighting and new seating areas are also recovered through tenant billings. The costs of other items such as new entrances, new ceilings and skylights are not recovered from tenants. We estimate that 30% of our renovation expenditures are recoverable from our tenants over a ten to fifteen year period. |
(3) | The capital expenditures incurred for maintenance such as parking lot repairs, parking lot lighting and roofs are classified as deferred maintenance expenditures. These expenditures are billed to tenants as common area maintenance expense and the majority is recovered over a five to fifteen year period. |
Deferred Leasing Costs Capitalized
(In thousands)
2017 | 2016 | ||||||
Quarter ended: | |||||||
March 31, | $ | 315 | $ | 658 | |||
June 30, | 426 | ||||||
September 30, | 421 | ||||||
December 31, | 594 | ||||||
$ | 315 | $ | 2,099 | ||||
30
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2017
Properties Opened During the Three Months Ended March 31, 2017
(Dollars in thousands)
CBL's Share of | |||||||||||||||||||
Property | Location | CBL Ownership Interest | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | Opening Date | Initial Unleveraged Yield | ||||||||||||
Mall Expansion: | |||||||||||||||||||
Mayfaire Town Center - Phase I | Wilmington, NC | 100% | 67,766 | $ | 19,073 | $ | 9,627 | Feb-17 | 8.4% | ||||||||||
Mall Redevelopment: | |||||||||||||||||||
College Square - Partial Belk Redevelopment (Planet Fitness) | Morristown, TN | 100% | 20,000 | 1,549 | 1,444 | Mar-17 | 9.9% | ||||||||||||
Total Properties Opened | 87,766 | $ | 20,622 | $ | 11,071 | ||||||||||||||
(1) Total Cost is presented net of reimbursements to be received. | |||||||||||||||||||
(2) Cost to Date does not reflect reimbursements until they are received. | |||||||||||||||||||
Properties Under Development at March 31, 2017
(Dollars in thousands)
CBL's Share of | |||||||||||||||||||
Property | Location | CBL Ownership Interest | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | Expected Opening Date | Initial Unleveraged Yield | ||||||||||||
Outlet Center: | |||||||||||||||||||
The Outlet Shoppes at Laredo | Laredo, TX | 65% | 357,756 | $ | 69,936 | $ | 62,619 | April-17 | 9.6% | ||||||||||
Mall Expansions: | |||||||||||||||||||
Kirkwood Mall - Lucky 13 (Lucky's Pub) | Bismarck, ND | 100% | 6,500 | 3,200 | 710 | Fall-17 | 7.6% | ||||||||||||
Parkdale Mall - Restaurant Addition | Beaumont, TX | 100% | 4,700 | 1,277 | 5 | Winter-17 | 10.7% | ||||||||||||
11,200 | 4,477 | 715 | |||||||||||||||||
Mall Redevelopments: | |||||||||||||||||||
Dakota Square Mall - Partial Miracle Mart Redevelopment (T.J. Maxx) | Minot, ND | 100% | 20,755 | 1,929 | 1,571 | Summer-17 | 12.3% | ||||||||||||
Hickory Point Mall - T.J. Maxx/Shops | Forsyth, IL | 100% | 50,030 | 4,070 | 448 | Fall-17 | 8.9% | ||||||||||||
Pearland Town Center - Sports Authority Redevelopment (Dick's Sporting Goods) | Pearland, TX | 100% | 48,582 | 7,069 | 4,344 | April-17 | 12.2% | ||||||||||||
South County Center - DXL | St. Louis, MO | 100% | 6,817 | 1,358 | 789 | Summer-17 | 19.7% | ||||||||||||
Stroud Mall - Beauty Academy | Stroudsburg, PA | 100% | 10,494 | 2,167 | 1,682 | May-17 | 6.6% | ||||||||||||
Turtle Creek Mall - ULTA | Hattiesburg, MS | 100% | 20,782 | 3,050 | 1,488 | Spring-17 | 6.7% | ||||||||||||
York Galleria - Partial JCP Redevelopment (H&M/Shops) | York, PA | 100% | 42,672 | 5,582 | 4,226 | Spring-17 | 7.8% | ||||||||||||
York Galleria - Partial JCP Redevelopment (Gold's Gym/Shops) | York, PA | 100% | 40,832 | 6,476 | 3,008 | Spring-17 | 11.5% | ||||||||||||
240,964 | 31,701 | 17,556 | |||||||||||||||||
Associated Center Redevelopment: | |||||||||||||||||||
The Landing at Arbor Place - Ollie's | Atlanta (Douglasville), GA | 100% | 28,446 | 1,946 | 1,273 | Fall-17 | 8.0% | ||||||||||||
Total Properties Under Development | 638,366 | $ | 108,060 | $ | 82,163 | ||||||||||||||
(1) Total Cost is presented net of reimbursements to be received. | |||||||||||||||||||
(2) Cost to Date does not reflect reimbursements until they are received. | |||||||||||||||||||
31