-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Jfks9w6nvVYaoF3Q4jO7q0frlzKWFSpNCBeubvx64E0hGZfyuAa3V4nftfHd3kBW ICMxmJ+92aSoU+/fe6mbcQ== 0000910612-08-000045.txt : 20080208 0000910612-08-000045.hdr.sgml : 20080208 20080208165946 ACCESSION NUMBER: 0000910612-08-000045 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20080207 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20080208 DATE AS OF CHANGE: 20080208 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CBL & ASSOCIATES PROPERTIES INC CENTRAL INDEX KEY: 0000910612 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 621545718 STATE OF INCORPORATION: DE FISCAL YEAR END: 1207 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12494 FILM NUMBER: 08590006 BUSINESS ADDRESS: STREET 1: 2030 HAMILTON PLACE BVLD, SUITE 500 STREET 2: CBL CENTER CITY: CHATTANOOGA STATE: TN ZIP: 37421 BUSINESS PHONE: 4238550001 MAIL ADDRESS: STREET 1: 2030 HAMILTON PLACE BVLD, SUITE 500 STREET 2: CBL CENTER CITY: CHATTANOOGA STATE: TN ZIP: 37421 8-K 1 form8k4q07.htm FORM 8-K

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C.  20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES AND EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported):  February 7, 2008

 

CBL & ASSOCIATES PROPERTIES, INC.

 

(Exact Name of Registrant as Specified in its Charter)

 

Delaware

 

1-12494

 

                 62-154718

(State or Other Jurisdiction of

Incorporation)

 

(Commission File Number)

 

(I.R.S. Employer Identification No.)

 

 

 

 

 

Suite 500, 2030 Hamilton Place Blvd, Chattanooga, TN 37421

(Address of principal executive office, including zip code)

 

 

 

 

 

423.855.0001

(Registrant’s telephone number, including area code)

 

 

 

 

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

[ ]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

[ ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

[ ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[ ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

1

ITEM 2.02 Results of Operations and Financial Condition

 

On February 7, 2008, CBL & Associates Properties, Inc. (the "Company") reported its results for the fourth quarter and year ended December 31, 2007. The Company's earnings release for the fourth quarter and year ended December 31, 2007 is attached as Exhibit 99.1. On February 8, 2008, the Company held a conference call to discuss the results for the fourth quarter and year ended December 31, 2007. The transcript of the conference call is attached as Exhibit 99.2. The Company has posted to its website certain supplemental financial and operating information for the three months and year ended December 31, 2007, which is attached as Exhibit 99.3.

 

The information in this Form 8-K and the Exhibits attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act 1933, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01

Financial Statements and Exhibits

 

(a)

Financial Statements of Businesses Acquired

 

Not applicable

 

(b)

Pro Forma Financial Information

 

Not applicable

 

(c)

Exhibits

 

Exhibit

Number

Description

 

99.1

Earnings Release – CBL & Associates Properties Reports Fourth Quarter and Annual 2007 Results

99.2

Investor Conference Call Script – Fourth Quarter and Year Ended December 31, 2007

99.3

Supplemental Financial and Operating Information – For The Three Months and Year Ended December 31, 2007

 

 

2

SIGNATURE

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

CBL & ASSOCIATES PROPERTIES, INC.

 

/s/ John N. Foy

_______________________________

John N. Foy

 

Vice Chairman,

Chief Financial Officer and Treasurer

 

 

Date: February 8, 2008

 

3

 

 

EX-99 3 exhibit991.htm EXHIBIT 99.1 EARNINGS RELEASE

Exhibit 99.1

[CBL & Associates Properties Letterhead]

 

 

NEWS RELEASE

 

 

 

Investor Contact: Katie Reinsmidt, Director of Corporate Communications and Investor Relations, 423.490.8301, katie_reinsmidt@cblproperties.com

 

CBL & ASSOCIATES PROPERTIES REPORTS

FOURTH QUARTER AND ANNUAL 2007 RESULTS

 

 

Same center NOI increased 1.7% for the year ended December 31, 2007, over the prior-year, excluding lease termination fees.

 

Portfolio occupancy was 94.0% at December 31, 2007, excluding centers acquired in the fourth quarter 2007.

 

FFO per share was $0.99 and $3.26 in the fourth quarter and year ended

December 31, 2007, respectively, excluding a non-cash write down for marketable real estate securities.

 

Total revenues increased 8.5% and 4.5% during the fourth quarter and year

 ended  December 31, 2007, respectively, over the prior year periods.

 

CHATTANOOGA, Tenn. (February 7, 2008) – CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the fourth quarter and year ended December 31, 2007. 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.

 

Net income available to common shareholders for the fourth quarter ended December 31, 2007, was $13,418,000 or $0.20 per diluted share compared with $31,055,000 or $0.47 per diluted share for the prior-year period. Net income available to common shareholders for the year ended December 31, 2007, was $59,372,000 or $0.90 per diluted share compared with $86,933,000 or $1.33 per diluted share for the year ended December 31, 2006.

 

Net income available to common shareholders for the year ended December 31, 2007, declined by $27,561,000 primarily due to an $18,456,000 non-cash write-down of marketable securities resulting from a significant decline in their market value during the fourth quarter 2007 (“write-down”), an increase in the non-cash income tax provision, higher interest expense and the write-off of direct issuance costs related to the redemption of the Company’s 8.75% Series B Perpetual Preferred Stock on June 28, 2007.

 

Funds from Operations (“FFO”) per share on a diluted, fully converted basis was $0.83 for the fourth quarter ended December 31, 2007. FFO per share on a diluted, fully converted basis excluding the write-down was $0.99 for the fourth quarter ended December 31, 2007, compared with $0.97 in the prior-year period. FFO per share on a diluted, fully converted basis was $3.10 for the year ended December 31, 2007. FFO per share on a diluted, fully converted basis excluding the write-down was $3.26 for the year ended December 31, 2007, compared with $3.34 in the prior-year period.

 

-MORE-

 

 

CBL Reports Fourth Quarter Results

Page 2

February 7, 2008

 

FFO allocable to common shareholders was $54,316,000 for the fourth quarter ended December 31, 2007. FFO allocable to common shareholders excluding the write-down was $64,691,000 for the fourth quarter ended December 31, 2007, compared with $63,319,000 for the fourth quarter ended December 31, 2006. FFO allocable to common shareholders for the year ended December 31, 2007, was $203,613,000. FFO allocable to common shareholders excluding the write-down for the year ended December 31, 2007, was $214,007,000, compared with $215,797,000 for the year ended December 31, 2006.

 

FFO of the operating partnership for the fourth quarter ended December 31, 2007, was $96,614,000. FFO of the operating partnership excluding the write-down for the fourth quarter ended December 31, 2007, was $115,070,000, compared with $113,333,000 for the fourth quarter ended December 31, 2006. FFO of the operating partnership for the year ended December 31, 2007, was $361,528,000. FFO of the operating partnership excluding the write-down for the year ended December 31, 2007, was $379,984,000, compared with $390,089,000 for the year ended December 31, 2006.

 

HIGHLIGHTS

 

§

Total revenues increased 8.5% during the fourth quarter ended December 31, 2007, to $294,299,000 from $271,272,000 in the prior-year period. Total revenues increased 4.5% during the year ended December 31, 2007, to $1,040,627,000 from $995,502,000 in the prior year.

 

 

§

Same-center net operating income (“NOI”), excluding lease termination fees for the fourth quarter ended December 31, 2007, increased by 0.9% over the prior-year period. NOI, excluding lease termination fees for the year ended December 31, 2007, increased by 1.7% over the prior year.

 

 

§

Same-store sales growth for mall tenants of 10,000 square feet or less for stabilized malls for the year ended December 31, 2007, was flat at $346 per square foot compared with a 3.3% increase for the prior year.

 

 

§

The debt-to-total-market capitalization ratio as of December 31, 2007, was 64.0% based on the common stock closing price of $23.91 and a fully converted common stock share count of 116,814,000 shares as of the same date. The debt-to-total-market capitalization ratio as of December 31, 2006, was 47.6% based on the common stock closing price of $43.35 and a fully converted common stock share count of 116,280,000 shares as of the same date.

 

 

§

Consolidated and unconsolidated variable rate debt of $1,372,761,000 represents 14.1% of the total market capitalization for the Company and 22.0% of the Company's share of total consolidated and unconsolidated debt.

 

CBL's Chairman and Chief Executive Officer, Charles B. Lebovitz, said, “Our focus throughout 2007 was to drive same center NOI growth, establish leasing momentum and selectively expand the portfolio through strategic acquisitions and new developments. The execution of this strategy in 2007 reflected improvement in new and renewal leasing spreads while raising the total square footage of leases signed for the year to 6.6 million square feet – the most ever in our 30-year history. Same center NOI, excluding lease termination fees, was up 1.7% for the year in a challenging retail environment.

 

"We also exceeded a previous record for acquisitions with a total of $1.6 billion closed in the year, which included securing an institutional joint venture partner. These transactions add to a growth platform that today includes 15 development projects under construction totaling 4.1 million square feet and a portfolio of 84 dominant regional malls and open-air centers. We are cautiously optimistic we will be able to leverage this program in 2008 by continuing to emphasize high levels of development pre-leasing, enhance our conservative balance sheet and maintain the healthy leasing momentum into 2008 in our existing portfolio."

 

-MORE-

 

 

CBL Reports Fourth Quarter Results

Page 3

February 7, 2008

 

 

PORTFOLIO OCCUPANCY*

December 31,

 

2007

 2006 

 

Portfolio occupancy

94.0%

94.1%

 

Mall portfolio

94.0%

94.4%

 

Stabilized malls

94.2%

94.5%

 

Non-stabilized malls

90.0%

91.7%

 

Associated centers

95.9%

93.6%

 

Community centers

87.5%

85.6%

 

 

*Occupancy figures exclude all centers acquired in the fourth quarter 2007

 

SHARE REPURCHASE PROGRAM

The Company did not repurchase any shares of its common stock during the fourth quarter. During the year ended December 31, 2007, the Company repurchased 148,500 shares of its common stock at an average price of $34.81 per share.

 

OTHER SIGNIFICANT EVENTS

During the fourth quarter 2007, CBL and Teachers’ Retirement System of The State of Illinois (“TRS”), advised by Commonwealth Realty Advisors, Inc., formed a 50/50 joint venture partnership to own a portfolio of retail and office buildings in North Carolina including Friendly Center, The Shops at Friendly Center in Greensboro and six office buildings located adjacent to Friendly Center in Green Valley Office Park. The portfolio was acquired from the Starmount Company, a private real estate owner, operator and developer. Additionally, subsequent to the quarter end, the joint venture completed the acquisition of The Renaissance Center in Durham, NC. The total joint venture, including The Renaissance Center, is valued at $356.6 million.

 

During the fourth quarter, CBL also acquired from The Starmount Company, a 100% interest in a portfolio of eight community centers located in Greensboro and High Point, NC, and twelve office buildings located in Greensboro and Raleigh, NC and Newport News, VA.

 

On December 31, 2007 and January 2, 2008, the Company entered into a $250 million interest rate swap and a $150 million interest rate swap, respectively, each of which hedges the interest rate risk exposure on an amount of the Company’s debt principal equal to the swap notional amounts. The effective weighted average fixed interest rate resulting from the swaps is 4.55% with a maturity on December 30, 2009.

 

OUTLOOK AND GUIDANCE

Based on today's outlook and the Company's fourth quarter results the Company is providing guidance for 2008 FFO in the range of $3.46 to $3.56 per share. The full year guidance assumes same-center NOI growth in the range of 0.0% to 2.0%, excluding lease termination fees from both applicable periods. The guidance also assumes $0.12 to $0.16 of outparcel sales for the year. The Company expects to update its annual guidance after each quarter's results.

 

Low

High

 

Expected diluted earnings per common share

$0.77

$0.87

 

Adjust to fully converted shares from common shares

(0.33)

(0.38)

 

Expected earnings per diluted, fully converted common share

0.44

0.49

 

Add: depreciation and amortization

2.69

2.69

 

Add: minority interest in earnings of Operating Partnership

0.33

0.38

 

 

Expected FFO per diluted, fully converted common share

$3.46

$3.56

 

-MORE-

 

 

CBL Reports Fourth Quarter Results

Page 4

February 7, 2008

 

INVESTOR CONFERENCE CALL AND SIMULCAST

CBL & Associates Properties, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, February 8, 2008, to discuss the fourth quarter results. The number to call for this interactive teleconference is (800) 240-7305. A seven-day replay of the conference call will be available by dialing (303) 590-3000 and entering the passcode 11106058#. 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., fourth quarter earnings release and supplemental information please visit our website at cblproperties.com or contact Investor Relations at 423-490-8292.

 

The Company will also provide an online Web simulcast and rebroadcast of its 2007 fourth quarter and annual earnings release conference call. The live broadcast of CBL's quarterly conference call will be available online at the Company's Web site at cblproperties.com , as well as www.streetevents.com and www.earnings.com , on February 8, 2008, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and continue through February 15, 2008.

 

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 27 states and total 82.8 million square feet including 1.8 million square feet of non-owned shopping centers managed for third parties. CBL currently has fifteen projects under construction totaling 4.1 million square feet including Pearland Town Center, Houston (Pearland), TX; Settlers Ridge in Pittsburgh, PA; CBL Center II in Chattanooga, TN; The Pavilion at Port Orange in Port Orange, FL; Hammock Landing in West Melbourne, FL; two lifestyle/associated centers, seven expansions/redevelopments, and one community center. Headquartered in Chattanooga, TN, CBL has regional offices in Boston (Waltham), MA, Dallas, TX, and St. Louis, MO. Additional information can be found at cblproperties.com.

 

NON-GAAP FINANCIAL MEASURES

 

Funds From Operations

FFO is a widely used measure of the operating performance of real estate companies that supplements net income determined in accordance with GAAP. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income (computed in accordance with GAAP) excluding gains or losses on sales of operating properties, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures and minority interests. Adjustments for unconsolidated partnerships and joint ventures and minority interests are calculated on the same basis. The Company defines FFO allocable to common shareholders as defined above by NAREIT less dividends on preferred stock. The Company’s method of calculating FFO allocable to 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 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,

 

-MORE-

 

 

CBL Reports Fourth Quarter Results

Page 5

February 7, 2008

 

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 minority interest in the operating partnership. The Company believes FFO allocable to common shareholders is a useful performance measure because it is the performance measure that is most directly comparable to net income available to common shareholders.

 

In the reconciliation of net income available to common shareholders to FFO allocable to common shareholders, the Company makes an adjustment to add back minority 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 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.

 

Same-Center Net Operating Income

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 minority investors' share of consolidated properties) because it believes this provides investors a clearer understanding of the Company's total debt obligations which affect the Company's liquidity. A reconciliation of the Company's pro rata share of debt to the amount of debt on the Company's consolidated balance sheet is located at the end of this earnings release.

 

Information included herein contains "forward-looking statements" within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" incorporated by reference therein, for a discussion of such risks and uncertainties.

-MORE-

CBL Reports Fourth Quarter Results

Page 6

February 7, 2008

CBL & Associates Properties, Inc.

Consolidated Statements of Operations

(Unaudited; in thousands, except per share amounts)

 

 

 

Three Months Ended
December 31,

 

 

 

Year Ended
December 31,

 

 

 

2007

 

2006

 

 

 

2007

 

2006

 

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minimum rents

 

$

181,592

 

$

161,486

 

 

 

$

646,383

 

$

616,147

 

Percentage rents

 

 

10,632

 

 

12,271

 

 

 

 

22,472

 

 

23,825

 

Other rents

 

 

11,179

 

 

9,623

 

 

 

 

23,121

 

 

20,061

 

Tenant reimbursements

 

 

83,125

 

 

80,501

 

 

 

 

318,808

 

 

307,037

 

Management, development and leasing fees

 

 

1,418

 

 

1,122

 

 

 

 

7,983

 

 

5,067

 

Other

 

 

6,353

 

 

6,269

 

 

 

 

21,860

 

 

23,365

 

Total revenues

 

 

294,299

 

 

271,272

 

 

 

 

1,040,627

 

 

995,502

 

EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating

 

 

45,817

 

 

41,913

 

 

 

 

169,688

 

 

159,827

 

Depreciation and amortization

 

 

67,844

 

 

57,985

 

 

 

 

243,790

 

 

228,531

 

Real estate taxes

 

 

22,577

 

 

20,768

 

 

 

 

87,610

 

 

80,316

 

Maintenance and repairs

 

 

16,318

 

 

14,437

 

 

 

 

58,145

 

 

54,153

 

General and administrative

 

 

8,780

 

 

11,471

 

 

 

 

37,852

 

 

39,522

 

Impairment of real estate assets

 

 

 

 

206

 

 

 

 

 

 

480

 

Other

 

 

6,437

 

 

4,808

 

 

 

 

18,525

 

 

18,623

 

Total expenses

 

 

167,773

 

 

151,588

 

 

 

 

615,610

 

 

581,452

 

Income from operations

 

 

126,526

 

 

119,684

 

 

 

 

425,017

 

 

414,050

 

Interest and other income

 

 

3,305

 

 

3,397

 

 

 

 

10,923

 

 

9,084

 

Interest expense

 

 

(80,154

)

 

(65,593

)

 

 

 

(287,884

)

 

(257,067

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

(227

)

 

(935

)

Impairment of marketable securities

 

 

(18,456

)

 

 

 

 

 

(18,456

)

 

 

Gain on sales of real estate assets

 

 

5,005

 

 

7,674

 

 

 

 

15,570

 

 

14,505

 

Equity in earnings of unconsolidated affiliates

 

 

734

 

 

1,488

 

 

 

 

3,502

 

 

5,295

 

Income tax provision

 

 

(4,030

)

 

(5,902

)

 

 

 

(8,390

)

 

(5,902

)

Minority interest in earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating partnership

 

 

(10,360

)

 

(22,393

)

 

 

 

(46,246

)

 

(70,323

)

Shopping center properties

 

 

(5,797

)

 

(1,473

)

 

 

 

(12,215

)

 

(4,136

)

Income from continuing operations

 

 

16,773

 

 

36,882

 

 

 

 

81,594

 

 

104,571

 

Operating income (loss) from discontinued operations

 

 

(54

)

 

640

 

 

 

 

1,497

 

 

4,538

 

Gain on disposal of discontinued operations

 

 

2,154

 

 

1,175

 

 

 

 

6,056

 

 

8,392

 

Net income

 

 

18,873

 

 

38,697

 

 

 

 

89,147

 

 

117,501

 

Preferred dividends

 

 

(5,455

)

 

(7,642

)

 

 

 

(29,775

)

 

(30,568

)

Net income available to common shareholders

 

$

13,418

 

$

31,055

 

 

 

$

59,372

 

$

86,933

 

Basic per share data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of preferred dividends

 

$

0.17

 

$

0.45

 

 

 

$

0.79

 

$

1.16

 

Discontinued operations

 

 

0.03

 

 

0.03

 

 

 

 

0.12

 

 

0.20

 

Net income available to common shareholders

 

$

0.20

 

$

0.48

 

 

 

$

0.91

 

$

1.36

 

Weighted average common shares outstanding

 

 

65,590

 

 

64,684

 

 

 

 

65,323

 

 

63,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted per share data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of preferred dividends

 

$

0.17

 

$

0.44

 

 

 

$

0.79

 

$

1.13

 

Discontinued operations

 

 

0.03

 

 

0.03

 

 

 

 

0.11

 

 

0.20

 

Net income available to common shareholders

 

$

0.20

 

$

0.47

 

 

 

$

0.90

 

$

1.33

 

Weighted average common and potential dilutive common shares outstanding

 

 

65,952

 

 

65,913

 

 

 

 

65,913

 

 

65,269

 

 

-MORE-

CBL Reports Fourth Quarter Results

Page 7

February 7, 2008

 

The Company's calculation of FFO allocable to Company shareholders is as follows (in thousands, except per share data):

 

 

 

Three Months Ended
December 31,

 

 

 

Year Ended
December 31,

 

 

 

2007

 

2006

 

 

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

13,418

 

$

31,055

 

 

 

$

59,372

 

$

86,933

 

Minority interest in earnings of operating partnership

 

 

10,360

 

 

22,393

 

 

 

 

46,246

 

 

70,323

 

Depreciation and amortization expense of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated properties

 

 

67,844

 

 

57,985

 

 

 

 

243,790

 

 

228,531

 

Unconsolidated affiliates

 

 

6,776

 

 

3,385

 

 

 

 

17,326

 

 

13,405

 

Discontinued operations

 

 

49

 

 

497

 

 

 

 

1,029

 

 

2,307

 

Non-real estate assets

 

 

(229

)

 

(228

)

 

 

 

(919

)

 

(851

)

Minority investors' share of depreciation and amortization

 

 

(322

)

 

(611

)

 

 

 

(132

)

 

(2,286

)

(Gain) loss on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales of operating real estate assets

 

 

 

 

32

 

 

 

 

 

 

119

 

Disposal of discontinued operations

 

 

(2,154

)

 

(1,175

)

 

 

 

(6,056

)

 

(8,392

)

Income tax provision on disposal of discontinued operations

 

 

872

 

 

 

 

 

 

872

 

 

 

Funds from operations of the operating partnership

 

$

96,614

 

$

113,333

 

 

 

$

361,528

 

$

390,089

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds from operations per diluted share

 

$

0.83

 

$

0.97

 

 

 

$

3.10

 

$

3.34

 

Weighted average common and potential dilutive common shares outstanding with operating partnership units fully converted

 

 

116,585

 

 

117,071

 

 

 

 

116,584

 

 

116,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of FFO of the operating partnership to FFO allocable to Company shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds from operations of the operating partnership

 

$

96,614

 

$

113,333

 

 

 

$

361,528

 

$

390,089

 

Percentage allocable to Company shareholders (1)

 

 

56.43

%

 

55.87

%

 

 

 

56.32

%

 

55.32

%

Funds from operations allocable to Company shareholders

 

$

54,519

 

$

63,319

 

 

 

$

203,613

 

$

215,797

 

 

 

(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 operation partnership units outstanding on page 9.

 

SUPPLEMENTAL FFO INFORMATION:

 

Lease termination fees

 

$

612

 

$

443

 

 

 

$

6,407

 

$

13,682

 

Lease termination fees per share

 

$

0.01

 

$

 

 

 

$

0.05

 

$

0.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line rental income

 

$

2,143

 

$

1,301

 

 

 

$

5,876

 

$

5,329

 

Straight-line rental income per share

 

$

0.02

 

$

0.01

 

 

 

$

0.05

 

$

0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on outparcel sales

 

$

5,478

 

$

8,315

 

 

 

$

16,651

 

$

16,448

 

Gains on outparcel sales per share

 

$

0.05

 

$

0.07

 

 

 

$

0.14

 

$

0.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired above- and below-market leases

 

$

2,304

 

$

2,842

 

 

 

$

10,584

 

$

12,572

 

Amortization of acquired above- and below-market leases per share

 

$

0.02

 

$

0.02

 

 

 

$

0.09

 

$

0.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of debt premiums

 

$

1,935

 

$

1,902

 

 

 

$

7,714

 

$

7,501

 

Amortization of debt premiums per share

 

$

0.02

 

$

0.02

 

 

 

$

0.07

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

$

(3,158

)

$

(5,902

)

 

 

$

(7,518

)

$

(5,902

)

Income tax provision per share

 

$

(0.03

)

$

(0.05

)

 

 

$

(0.06

)

$

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of marketable securities

 

$

(18,456

)

$

 

 

 

$

(18,456

)

$

 

Impairment of marketable securities

 

$

(0.16

)

$

 

 

 

$

(0.16

)

$

 

 

-MORE-

CBL Reports Fourth Quarter Results

Page 8

February 7, 2008

 

Same-Center Net Operating Income

(Dollars in thousands)

 

 

 

Three Months Ended

December 31,

 

 

Year Ended
December 31,

 

 

 

2007

 

2006

 

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

18,873

 

$

38,697

 

 

$

89,147

 

$

117,501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

67,844

 

 

57,985

 

 

 

243,790

 

 

228,531

 

Depreciation and amortization from unconsolidated affiliates

 

 

6,776

 

 

3,385

 

 

 

17,326

 

 

13,405

 

Depreciation and amortization from discontinued operations

 

 

49

 

 

497

 

 

 

1,029

 

 

2,307

 

Minority investors' share of depreciation and amortization in shopping center properties

 

 

(322

)

 

(611

)

 

 

(132

)

 

(2,286

)

Interest expense

 

 

80,154

 

 

65,593

 

 

 

287,884

 

 

257,067

 

Interest expense from unconsolidated affiliates

 

 

7,904

 

 

4,415

 

 

 

20,480

 

 

17,569

 

Minority investors' share of interest expense in shopping center properties

 

 

(466

)

 

(1,223

)

 

 

(831

)

 

(4,850

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

227

 

 

935

 

Abandoned projects expense

 

 

1,261

 

 

629

 

 

 

2,216

 

 

923

 

Gain on sales of real estate assets

 

 

(5,005

)

 

(7,674

)

 

 

(15,570

)

 

(14,505

)

Impairment of marketable securities

 

 

18,456

 

 

 

 

 

18,456

 

 

 

Impairment of real estate assets

 

 

 

 

206

 

 

 

 

 

480

 

Gain on sales of real estate assets of unconsolidated affiliates

 

 

(473

)

 

(596

)

 

 

(1,706

)

 

(2,898

)

Minority investors' share of gain on sales of real estate assets

 

 

 

 

 

 

 

621

 

 

 

Income tax provision

 

 

4,030

 

 

5,902

 

 

 

8,390

 

 

5,902

 

Minority interest in earnings of operating partnership

 

 

10,360

 

 

22,393

 

 

 

46,246

 

 

70,323

 

Gain on discontinued operations

 

 

(2,154

)

 

(1,175

)

 

 

(6,056

)

 

(8,392

)

Operating partnership's share of total NOI

 

 

207,287

 

 

188,423

 

 

 

711,517

 

 

682,012

 

General and administrative expenses

 

 

8,780

 

 

11,471

 

 

 

37,852

 

 

39,522

 

Management fees and non-property level revenues

 

 

(5,051

)

 

(7,285

)

 

 

(27,029

)

 

(21,697

)

Operating partnership's share of property NOI

 

 

211,016

 

 

192,609

 

 

 

722,340

 

 

699,837

 

NOI of non-comparable centers

 

 

(18,816

)

 

(2,359

)

 

 

(28,442

)

 

(9,946

)

Total same center NOI

 

$

192,200

 

$

190,250

 

 

$

693,898

 

$

689,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Malls

 

$

180,651

 

$

177,782

 

 

$

644,986

 

$

642,245

 

Associated centers

 

 

6,926

 

 

7,253

 

 

 

28,814

 

 

29,499

 

Community centers

 

 

905

 

 

1,032

 

 

 

4,226

 

 

3,997

 

Other

 

 

3,718

 

 

4,183

 

 

 

15,872

 

 

14,150

 

Total same center NOI

 

 

192,200

 

 

190,250

 

 

 

693,898

 

 

689,891

 

Less lease termination fees

 

 

(612

)

 

(443

)

 

 

(6,407

)

 

(13,682

)

Total same-center NOI, excluding lease termination fees

 

$

191,588

 

$

189,807

 

 

$

687,491

 

$

676,209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage Change:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Malls

 

 

1.6

%

 

 

 

 

 

0.4

%

 

 

 

Associated centers

 

 

-4.5

%

 

 

 

 

 

-2.3

%

 

 

 

Community centers

 

 

-12.3

%

 

 

 

 

 

5.7

%

 

 

 

Other

 

 

-11.1

%

 

 

 

 

 

12.2

%

 

 

 

Total same center NOI

 

 

1.0

%

 

 

 

 

 

0.6

%

 

 

 

Total same-center NOI, excluding lease termination fees

 

 

0.9

%

 

 

 

 

 

1.7

%

 

 

 

 

-MORE-

CBL Reports Fourth Quarter Results

Page 9

February 7, 2008

 

Company's Share of Consolidated and Unconsolidated Debt

(Dollars in thousands)

 

 

 

December 31, 2007

 

 

 

Fixed Rate

 

 

Variable Rate

 

 

Total

 

Consolidated debt

 

$

4,543,515

 

 

$

1,325,803

 

 

$

5,869,318

 

Minority investors' share of consolidated debt

 

 

(24,236

)

 

 

(2,517

)

 

 

(26,753

)

Company's share of unconsolidated affiliates' debt

 

 

335,903

 

 

 

49,475

 

 

 

385,378

 

Company's share of consolidated and unconsolidated debt

 

$

4,855,182

 

 

$

1,372,761

 

 

$

6,227,943

 

Weighted average interest rate

 

 

5.79

%

 

 

6.14

%

 

 

5.87

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2006

 

 

 

Fixed Rate

 

 

Variable Rate

 

 

Total

 

Consolidated debt

 

$

3,517,710

 

 

$

1,046,825

 

 

$

4,564,535

 

Minority investors' share of consolidated debt

 

 

(56,612

)

 

 

 

 

 

(56,612

)

Company's share of unconsolidated affiliates' debt

 

 

218,203

 

 

 

27,816

 

 

 

246,019

 

Company's share of consolidated and unconsolidated debt

 

$

3,679,301

 

 

$

1,074,641

 

 

$

4,753,942

 

Weighted average interest rate

 

 

5.97

%

 

 

6.27

%

 

 

6.03

%

 

 

Debt-To-Total-Market Capitalization Ratio as of December 31, 2007

(In thousands, except stock price)

 

 

 

Shares

Outstanding

 

 

 

Stock

Price (1)

 

 

 

Value

 

Common stock and operating partnership units

 

116,814

 

 

 

$

23.91

 

 

 

$

2,793,023

 

7.75% Series C Cumulative Redeemable Preferred Stock

 

460

 

 

 

 

250.00

 

 

 

 

115,000

 

7.375% Series D Cumulative Redeemable Preferred Stock

 

700

 

 

 

 

250.00

 

 

 

 

175,000

 

Preferred Units Sub REIT

 

 

 

 

 

 

 

 

 

 

 

416,113

 

Total market equity

 

 

 

 

 

 

 

 

 

 

 

3,499,136

 

Company's share of total debt

 

 

 

 

 

 

 

 

 

 

 

6,227,943

 

Total market capitalization

 

 

 

 

 

 

 

 

 

 

$

9,727,079

 

Debt-to-total-market capitalization ratio

 

 

 

 

 

 

 

 

 

 

 

64.0

%

 

(1)

Stock price for common stock and operating partnership units equals the closing price of the common stock on December 31, 2007. The stock price for the preferred stock represents the liquidation preference of each respective series of preferred stock.

 

 

 

 

 

 

 

 

 

-MORE-

CBL Reports Fourth Quarter Results

Page 10

February 7, 2008

 

Reconciliation of Shares and Operating Partnership Units Outstanding

(In thousands)

 

 

 

Three Months Ended
December 31,

 

 

Year Ended
December 31,

 

2007:

 

Basic

 

 

 

Diluted

 

 

Basic

 

 

 

Diluted

 

Weighted average shares - EPS

 

65,590

 

 

 

65,952

 

 

65,323

 

 

 

65,913

 

Weighted average operating partnership units

 

50,637

 

 

 

50,633

 

 

50,671

 

 

 

50,671

 

Weighted average shares- FFO

 

116,227

 

 

 

116,585

 

 

115,994

 

 

 

116,584

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2006:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares - EPS

 

64,684

 

 

 

65,913

 

 

63,885

 

 

 

65,269

 

Weighted average operating partnership units

 

51,097

 

 

 

51,158

 

 

51,589

 

 

 

51,588

 

Weighted average shares- FFO

 

115,781

 

 

 

117,071

 

 

115,474

 

 

 

116,857

 

 

 

 

Dividend Payout Ratio

 

 

 

Three Months Ended
December 31,

 

 

 

Year Ended
December 31,

 

 

 

2007

 

 

 

2006

 

 

 

2007

 

 

 

2006

 

Weighted average dividend per share

 

$

0.55047

 

 

 

$

0.51020

 

 

 

$

2.08260

 

 

 

$

1.90170

 

FFO per diluted, fully converted share

 

$

0.83

 

 

 

$

0.97

 

 

 

$

3.10

 

 

 

$

3.34

 

Dividend payout ratio

 

 

66.3

%

 

 

 

52.6

%

 

 

 

67.2

%

 

 

 

56.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-MORE-

CBL Reports Fourth Quarter Results

Page 11

February 7, 2008

 

Consolidated Balance Sheets

 

(Unaudited, in thousands except share data)

 

 

 

December 31,
2007

 

December 31,
2006

 

ASSETS

 

 

 

 

 

 

 

Real estate assets:

 

 

 

 

 

 

 

Land

 

$

917,578

 

$

779,727

 

Buildings and improvements

 

 

7,267,112

 

 

5,944,476

 

 

 

 

8,184,690

 

 

6,724,203

 

Less: accumulated depreciation

 

 

(1,102,767

)

 

(924,297

)

 

 

 

7,081,923

 

 

5,799,906

 

Developments in progress

 

 

319,049

 

 

294,345

 

Net investment in real estate assets

 

 

7,400,972

 

 

6,094,251

 

Cash and cash equivalents

 

 

65,826

 

 

28,700

 

Receivables:

 

 

 

 

 

 

 

Tenant, net of allowance

 

 

72,570

 

 

71,573

 

Other

 

 

10,257

 

 

9,656

 

Mortgage notes receivable

 

 

135,772

 

 

21,559

 

Investment in unconsolidated affiliates

 

 

142,550

 

 

78,826

 

Intangible lease assets and other assets

 

 

273,356

 

 

214,245

 

 

 

$

8,101,303

 

$

6,518,810

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

Mortgage and other notes payable

 

$

5,869,318

 

$

4,564,535

 

Accounts payable and accrued liabilities

 

 

394,213

 

 

309,969

 

Total liabilities

 

 

6,263,531

 

 

4,874,504

 

Commitments and contingencies

 

 

 

 

 

 

 

Minority interests

 

 

917,473

 

 

559,450

 

Shareholders' equity:

 

 

 

 

 

 

 

Preferred Stock, $.01 par value, 15,000,000 shares authorized:

 

 

 

 

 

 

 

8.75% Series B Cumulative Redeemable Preferred Stock,
2,000,000 shares outstanding

 

 

 

 

20

 

7.75% Series C Cumulative Redeemable Preferred Stock,
460,000 shares outstanding

 

 

5

 

 

5

 

7.375% Series D Cumulative Redeemable Preferred Stock,
700,000 shares outstanding

 

 

7

 

 

7

 

Common Stock, $.01 par value, 180,000,000 shares authorized,
65,710,828 and 65,421,311 issued and outstanding in 2007 and
2006, respectively

 

 

662

 

 

654

 

Additional paid-in capital

 

 

989,799

 

 

1,074,450

 

Accumulated other comprehensive (loss) income

 

 

(20

)

 

19

 

(Accumulated deficit) retained earnings

 

 

(70,154

)

 

9,701

 

Total shareholders' equity

 

 

920,299

 

 

1,084,856

 

 

 

$

8,101,303

 

$

6,518,810

 

 

-END-

 

 

EX-99 4 exhibit992.htm EXHIBIT 99.2 CONFERENCE CALL SCRIPT

Exhibit 99.2

 

CBL & ASSOCIATES PROPERTIES, INC.

CONFERENCE CALL, FOURTH QUARTER

FEBRUARY 8, 2008 @ 10:00 AM EST

 

Stephen:

 

Thank you and good morning. We appreciate your participation in the CBL & Associates Properties Inc., conference call to discuss fourth quarter and year-end results. Joining me today is John Foy, Chief Financial Officer and Katie Reinsmidt, Director of Corporate Communications and Investor Relations who will begin by reading our Safe Harbor disclosure.

 

Katie:

 

This conference call 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 results, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. We direct you 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 “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included therein for a discussion of such risks and uncertainties. During our discussion today, references made to per share are based upon a fully diluted converted share.

 

A transcript of today’s comments, the earnings release and additional supplemental schedules will be furnished to the SEC on Form 8-K and will be available on our website. This call will also be available for replay on the Internet through a link on our website at cblproperties.com. This conference call is the property of CBL & Associates Properties, Inc. Any redistribution, retransmission or rebroadcast of this call without the express written consent of CBL is strictly prohibited.

 

During this conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. A description of each non-GAAP measure and a reconciliation of each non-GAAP financial measure to the comparable GAAP financial measure will be included in the earnings release that is furnished on the Form 8-K.

 

Stephen:

 

Thank you, Katie.

 

We wanted to start off the call by acknowledging that we are disappointed with the earnings results for 2007 we announced yesterday. Foremost, we are displeased that after a nearly uninterrupted thirteen year track record of solid FFO growth we have posted negative growth in 2007 and were not able to reach First Call numbers. However, we want you to know that we are more determined than ever to achieve better results in 2008 and reestablish CBL’s credibility with analysts and investors.

 

In addition, we feel that 2007’s disappointing results coupled with fears of a potential recession have fueled a fire sale on our stock. In 2007 our stock declined 45% to a three-year low.

 

There is no doubt that the state of the economy had an impact on consumer spending in 2007, with sales flat for the year vs. the 3-4% increases we experienced in recent years. Retailers are off to a slow start in 2008 based on January sales and we are certainly taking a more guarded approach to the business. However, retailer growth plans and the retail real estate business have always had a long-term perspective and we as well continue to have a long-term perspective. It is true that some retailers have reduced their growth plans for 2009. Also some retailers have announced store closures or bankruptcy this year and it is possible we may see additional announcements. All of these are part of the normal ebb and flow of the retail real estate business. Store closures and bankruptcies enhance the overall credit quality of our retailers and provide us with an opportunity to increase the productivity in our malls, both in terms of rent and sales. As we have previously stated, we see great opportunity when capital is constrained. The limit on capital availability also tends to reduce new development competition in the marketplace. Retailers will start to reallocate a larger portion of their open-to-buys to developers that are proven and have ready access to capital – like CBL.

 

DEVELOPMENT REVIEW:

 

That said, we are realistic in our expectations for 2008 and maintain a conservative approach to new development. We will continue our discipline of not starting construction on new ground up development projects until we have the anchor in place with roughly 50% of the space committed. For each project that is currently under construction, including every project that is listed in the development table included in our supplemental package as well as those that started construction after 12/31/07, we have funded our equity and have a committed funding source.

 

Let me take a few minutes to review our recent project announcements and completions during the fourth quarter.

 

In October, we celebrated the grand opening of The District at CherryVale, an 84,000 square foot lifestyle addition to CherryVale Mall in Rockford, IL. Barnes & Noble,

 

2

Chico’s, Coldwater Creek and other retailers opened in the expansion, which has had a very successful start.

 

We announced two new Barnes & Noble additions at existing centers. Barnes & Noble will be relocating from an existing store in the market to join Asheville Mall in Asheville, NC, in a larger 40,000 square foot store. Barnes & Noble will also anchor our redevelopment project at West County Center in St. Louis. We are redeveloping the former Lord &Taylor location into a 90,000 square foot lifestyle wing with a 30,000 square foot Barnes & Noble, 20,000 square feet of small shops, and four premier restaurants. This redevelopment represents one of the many opportunities we are capitalizing on from the St. Louis transaction and we look forward to sharing more with you as projects develop.

 

We recently commenced construction on the third phase of Gulf Coast Town Center. The third phase will initially include a 70,000 square foot Dick’s Sporting Goods along with 9,000 square feet of small shops. Dick’s will hold its grand opening in October.

 

We have two great joint venture projects with The Benchmark Group of Amherst, NY, under construction in Florida. The first is Hammock Landing, a 750,000-square-foot open-air shopping center to be built in West Melbourne, FL. This center will be anchored by Marshall’s, Linens ‘n Things, Michaels, and Petco, as well as two major anchors who will be announced soon, and will offer shoppers a great selection with more than 120,000 square feet of small shops and restaurants. Construction on the 460,000 square-foot first phase of the project has started with a grand opening planned for spring 2009.

 

The second joint venture project with Benchmark is The Pavilion at Port Orange a 550,000 square foot open-air development in Port Orange, FL. The project will feature Belk, a 14-screen Hollywood theater, Barnes & Noble, Circuit City, Homegoods/Marshall’s Megastore, Michaels, and about 190,000 square feet of specialty stores and restaurants. The opening is scheduled for fall 2009.

 

LEASING:

 

In 2007 we had very good results both in terms of the quality and quantity of our leasing. We set a new record for leasing the most square-footage in a single year in our Company’s history. We signed a total of approximately 6.6 million square feet of leases including approximately 3.3 million square feet of development leasing and 3.3 million square feet of leases in our operating portfolio. The 3.3 million square feet in our operating portfolio was comprised of 1.3 million square feet of new leases and 2.0 million square feet of renewal leases. This compares with a total of 4.8 million square feet of leases signed in 2006, including 2.1 million square feet of development leasing and 2.7 million square feet completed in the operating portfolio. Of the 2.7 million square feet in the operating portfolio, 1.1 million square feet were new leases and 1.6 million square feet were renewals.

 

3

 

For stabilized mall leasing in the fourth quarter on a same space basis, we achieved an average increase of 10.1% over the prior gross rent per square foot.

 

In 2007, for same-space stabilized mall leasing, we achieved an average increase of 9.7% over the prior gross rent per square foot.

 

We reported occupancy numbers for the year excluding the properties acquired in the fourth quarter since we did not have the benefit of ownership for much of the quarter. Total portfolio occupancy was 94.0%. Stabilized mall occupancy declined 30 basis points to 94.2% from 94.5% in the prior year. Total mall occupancy at the end of the quarter declined 40 bps to 94.0% from 94.4% in the prior year. Occupancy in the associated centers increased to 95.9% from 93.6% at year-end.

 

BANKRUPTCY UPDATE:

 

There have been several recent announcements regarding retail bankruptcies and store closures. Fortunately, so far there has been more smoke than fire. Ann Taylor announced last week that they would be closing over 100 underperforming stores over the next three years as their leases come up for renewal. We have been told that only one of our stores should be impacted by this.

 

Talbot’s announced that they would be closing their Kids and Mens divisions. We have two Talbot’s Kids store and we are currently in negotiations with replacements. Friedman’s filed bankruptcy last week. We have 23 stores representing 34,000 square feet and $1.75 million in annual base rent. Average occupancy cost for the Friedman’s stores is very reasonable at around 12%, so we don’t anticipate a material impact.

 

In October, Bombay announced that they would be entering Chapter 11 and closing their stores. We currently have 14 Bombay locations, representing 59,000 square feet and $2.1 million in annual gross rents. We have retailers lined up to back fill over a third of the space and have significant interest on the remainder.

 

RETAIL SALES

 

Same store sales growth was flat in 2007 for reporting tenants 10,000 square feet or less in stabilized malls at $346 per square foot. The holiday sales season was mixed, with healthy sales in November and disappointing sales in December.

 

Occupancy costs, as a percentage of sales, was 12.3% for the twelve months ended December 31, compared with 12.1% for the prior year.

 

Now I will turn the call over to John for our financial review.

 

4

JOHN:

 

Thank you, Stephen.

 

FINANCIAL REVIEW:

 

During the fourth quarter 2007, excluding the non-cash write down, we achieved total FFO per share of $0.99, compared with $0.97 per share in the prior year period. In 2007, we recorded FFO per share excluding the write-down of $3.26 versus FFO per share of $3.34 in the prior year period.

 

Our core portfolio NOI growth for the year was 1.7%, well within our projected levels of 1.5-2.5% excluding lease termination fees. Same center NOI in the fourth quarter increased 0.9%, excluding lease termination fees.

 

Earlier this week we made an announcement regarding items impacting our fourth quarter results. We felt that it was important to communicate these items ahead of our earnings announcement. These items included an $18.5 million non-cash write down of marketable real estate securities to reflect a year-end market value of $21.3 million, related to a decline in their market value. From time to time, we may make investments in companies whose businesses are related to our own and which businesses we understand. These investments are noted in our 10K filings in the notes to financial statements as well as in the cash flow statements. We think these are good investments, and we expect to continue to hold them for the foreseeable future. While the market value of these investments, like virtually all real estate securities, has been materially and adversely impacted by the recent market turmoil we believe that their underlying asset valuation, economic fundamentals and our investment thesis remain sound. However, GAAP requires that we record the non-cash write-down due to the material decline in the value of these securities at year-end.

 

We also made the decision to delay the recording of $7.0 million of fee income receivable from affiliates of Centro, as a result of uncertainty. We had previously indicated that this would amount to $0.04 of our FFO per share, net of the income tax provision.

 

Other non-operating items impacting results included lower than anticipated gains from the sales of outparcels and lease termination fees. Results were also impacted by a $1.3 million abandoned project expense, higher interest rate expense due to an increase in rates as well as an increase in our borrowings, and lower fee income.

 

Additional highlights include:

 

Our cost recovery ratio for the quarter ended December 31, 2007, was 98.1% compared with 104.4%, in the prior year period. For the twelve months ended December 31, 2007, the cost recovery ratio was 101.1% which is in line with our estimates, compared with 104.2%, in the prior year period.

 

5

 

G&A represented approximately 3.0% and 3.6% of total revenues in the fourth quarter and twelve months ended December 31, 2007 compared with 4.2% and 4.0% of revenues for the quarter and twelve months ended December 31, 2006. G&A declined in the fourth quarter primarily due to an adjustment for state tax reserves.

 

As a result of our lower stock price, our debt-to-total market capitalization ratio was 64% as of the end of December compared with 47.6% as of the end of the prior year period. We feel that it is important to note that all of our debt covenants are tied to a gross asset value test and not to market capitalization.

 

Variable rate debt was 14.1% of the total market capitalization as of the end of December versus 10.6% as of the end of the prior year. Variable debt represented 22% of total debt compared with 22.6% in the prior year period.

 

Our EBITDA to interest coverage ratio for the quarter and year ended December 31, 2007, was 2.22 times and 2.31 times, respectively compared with 2.9 times and 2.6 times, respectively for the prior year period. The EBITDA to interest coverage ratios for the fourth quarter and year ended December 31, 2007 were impacted by the non-cash write down.

 

GUIDANCE UPDATE:

 

We are initiating guidance for 2008 of $3.46 to $3.56 per share, which represents a 6.1% - 9.0% increase over 2007 FFO per share, excluding the impairment charge. The guidance assumes NOI growth of 0.0% to 2.0%, excluding lease termination fees from both periods. The guidance also assumes outparcel sales of $0.12 to $0.16 per share and does not include any new acquisitions or lease termination fees. We believe that our guidance represents a realistic expectation for 2008 based on the information we have today.

 

ACQUISITIONS

In November we completed the acquisition of The Friendly Center and The Shops at Friendly Center in Greensboro, NC, as well as eight community centers and 18 office buildings located throughout North Carolina and Virginia. We formed a joint venture with Teachers’ Retirement System of Illinois and placed The Friendly Center and The Shops, as well as six office buildings in the joint venture. Subsequent to the quarter-end, the joint venture completed the acquisition of Renaissance Center in Durham, NC. The remaining eight community centers and 12 office buildings are wholly owned by the Company. We are continuing to explore potential sales of these none core properties.

 

DIVIDEND INCREASE

As we announced last quarter the Board of Directors approved a 7.9% increase in the regular quarterly cash dividend for the Company's Common Stock to $2.18 per share annually from $2.02 per share. This increase was effective with our fourth quarter 2007 dividend. When management considers proposing an increase in the dividend to the Board, we review our current net taxable income levels and our forward estimates to ensure that we meet or exceed compliance requirements. This analysis includes our cash

 

6

flow and projections of capital needs. We continue to believe our dividend is well-covered. Our FFO payout ratio in 2007 was 67%, excluding the impact of the non-cash write-down.

 

 

CONCLUSION:

 

We have been pleased at our ability to readily access capital despite the turmoil in the market. We were able to secure over $500 million in commitments within 48 hours for the Starmount transaction. Our credit facilities all have extensions that are available to us and we have only about $380 million of non-recourse debt coming up to refinance in 2008 and have had positive discussions and reactions with lenders for each of these loans.

 

We are cautiously optimistic going into 2008. Our results should benefit from the expansions and enhancements we made to our existing portfolio in 2007 as well as new development projects. In addition, contributions from the centers acquired in the fourth quarter should enhance the overall growth profile of our portfolio. While we are keeping a watchful eye on the state of the economy and retailers health, we will continue our focus on running the business in a sound and prudent way and executing for long-term growth.

 

We appreciate your joining us today and would now be happy to answer any questions you may have.

 

7

 

 

EX-99 5 exhibit993.htm EXHIBIT 99.3 SUPPLEMENTAL

Exhibit 99.3

CBL & Associates Properties, Inc.

Supplemental Financial and Operating Information

For the Three Months and Year Ended December 31, 2007

 

Consolidated Statements of Operations

(Unaudited; in thousands, except per share amounts)

 

 

 

Three Months Ended
December 31,

 

 

 

Year Ended
December 31,

 

 

 

2007

 

2006

 

 

 

2007

 

2006

 

REVENUES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minimum rents

 

$

181,592

 

$

161,486

 

 

 

$

646,383

 

$

616,147

 

Percentage rents

 

 

10,632

 

 

12,271

 

 

 

 

22,472

 

 

23,825

 

Other rents

 

 

11,179

 

 

9,623

 

 

 

 

23,121

 

 

20,061

 

Tenant reimbursements

 

 

83,125

 

 

80,501

 

 

 

 

318,808

 

 

307,037

 

Management, development and leasing fees

 

 

1,418

 

 

1,122

 

 

 

 

7,983

 

 

5,067

 

Other

 

 

6,353

 

 

6,269

 

 

 

 

21,860

 

 

23,365

 

Total revenues

 

 

294,299

 

 

271,272

 

 

 

 

1,040,627

 

 

995,502

 

EXPENSES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating

 

 

45,817

 

 

41,913

 

 

 

 

169,688

 

 

159,827

 

Depreciation and amortization

 

 

67,844

 

 

57,985

 

 

 

 

243,790

 

 

228,531

 

Real estate taxes

 

 

22,577

 

 

20,768

 

 

 

 

87,610

 

 

80,316

 

Maintenance and repairs

 

 

16,318

 

 

14,437

 

 

 

 

58,145

 

 

54,153

 

General and administrative

 

 

8,780

 

 

11,471

 

 

 

 

37,852

 

 

39,522

 

Impairment of real estate assets

 

 

 

 

206

 

 

 

 

 

 

480

 

Other

 

 

6,437

 

 

4,808

 

 

 

 

18,525

 

 

18,623

 

Total expenses

 

 

167,773

 

 

151,588

 

 

 

 

615,610

 

 

581,452

 

Income from operations

 

 

126,526

 

 

119,684

 

 

 

 

425,017

 

 

414,050

 

Interest and other income

 

 

3,305

 

 

3,397

 

 

 

 

10,923

 

 

9,084

 

Interest expense

 

 

(80,154

)

 

(65,593

)

 

 

 

(287,884

)

 

(257,067

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

(227

)

 

(935

)

Impairment of marketable securities

 

 

(18,456

)

 

 

 

 

 

(18,456

)

 

 

Gain on sales of real estate assets

 

 

5,005

 

 

7,674

 

 

 

 

15,570

 

 

14,505

 

Equity in earnings of unconsolidated affiliates

 

 

734

 

 

1,488

 

 

 

 

3,502

 

 

5,295

 

Income tax provision

 

 

(4,030

)

 

(5,902

)

 

 

 

(8,390

)

 

(5,902

)

Minority interest in earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating partnership

 

 

(10,360

)

 

(22,393

)

 

 

 

(46,246

)

 

(70,323

)

Shopping center properties

 

 

(5,797

)

 

(1,473

)

 

 

 

(12,215

)

 

(4,136

)

Income from continuing operations

 

 

16,773

 

 

36,882

 

 

 

 

81,594

 

 

104,571

 

Operating income (loss) from discontinued operations

 

 

(54

)

 

640

 

 

 

 

1,497

 

 

4,538

 

Gain on disposal of discontinued operations

 

 

2,154

 

 

1,175

 

 

 

 

6,056

 

 

8,392

 

Net income

 

 

18,873

 

 

38,697

 

 

 

 

89,147

 

 

117,501

 

Preferred dividends

 

 

(5,455

)

 

(7,642

)

 

 

 

(29,775

)

 

(30,568

)

Net income available to common shareholders

 

$

13,418

 

$

31,055

 

 

 

$

59,372

 

$

86,933

 

Basic per share data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of preferred dividends

 

$

0.17

 

$

0.45

 

 

 

$

0.79

 

$

1.16

 

Discontinued operations

 

 

0.03

 

 

0.03

 

 

 

 

0.12

 

 

0.20

 

Net income available to common shareholders

 

$

0.20

 

$

0.48

 

 

 

$

0.91

 

$

1.36

 

Weighted average common shares outstanding

 

 

65,590

 

 

64,684

 

 

 

 

65,323

 

 

63,885

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted per share data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations, net of preferred dividends

 

$

0.17

 

$

0.44

 

 

 

$

0.79

 

$

1.13

 

Discontinued operations

 

 

0.03

 

 

0.03

 

 

 

 

0.11

 

 

0.20

 

Net income available to common shareholders

 

$

0.20

 

$

0.47

 

 

 

$

0.90

 

$

1.33

 

Weighted average common and potential dilutive common shares outstanding

 

 

65,952

 

 

65,913

 

 

 

 

65,913

 

 

65,269

 

 

CBL & Associates Properties, Inc.

Supplemental Financial And Operating Information

For the Three Months and Year Ended December 31, 2007

 

The Company's calculation of FFO allocable to Company shareholders is as follows (in thousands, except per share data):

 

 

 

Three Months Ended
December 31,

 

 

 

Year Ended
December 31,

 

 

 

2007

 

2006

 

 

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

13,418

 

$

31,055

 

 

 

$

59,372

 

$

86,933

 

Minority interest in earnings of operating partnership

 

 

10,360

 

 

22,393

 

 

 

 

46,246

 

 

70,323

 

Depreciation and amortization expense of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated properties

 

 

67,844

 

 

57,985

 

 

 

 

243,790

 

 

228,531

 

Unconsolidated affiliates

 

 

6,776

 

 

3,385

 

 

 

 

17,326

 

 

13,405

 

Discontinued operations

 

 

49

 

 

497

 

 

 

 

1,029

 

 

2,307

 

Non-real estate assets

 

 

(229

)

 

(228

)

 

 

 

(919

)

 

(851

)

Minority investors' share of depreciation and amortization

 

 

(322

)

 

(611

)

 

 

 

(132

)

 

(2,286

)

(Gain) loss on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales of operating real estate assets

 

 

 

 

32

 

 

 

 

 

 

119

 

Disposal of discontinued operations

 

 

(2,154

)

 

(1,175

)

 

 

 

(6,056

)

 

(8,392

)

Income tax provision on disposal of discontinued operations

 

 

872

 

 

 

 

 

 

872

 

 

 

Funds from operations of the operating partnership

 

$

96,614

 

$

113,333

 

 

 

$

361,528

 

$

390,089

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds from operations per diluted share

 

$

0.83

 

$

0.97

 

 

 

$

3.10

 

$

3.34

 

Weighted average common and potential dilutive common shares outstanding with operating partnership units fully converted

 

 

116,585

 

 

117,071

 

 

 

 

116,584

 

 

116,857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of FFO of the operating partnership to FFO allocable to Company shareholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Funds from operations of the operating partnership

 

$

96,614

 

$

113,333

 

 

 

$

361,528

 

$

390,089

 

Percentage allocable to Company shareholders (1)

 

 

56.43

%

 

55.87

%

 

 

 

56.32

%

 

55.32

%

Funds from operations allocable to Company shareholders

 

$

54,519

 

$

63,319

 

 

 

$

203,613

 

$

215,797

 

 

 

(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 operation partnership units outstanding on page 9.

 

SUPPLEMENTAL FFO INFORMATION:

 

Lease termination fees

 

$

612

 

$

443

 

 

 

$

6,407

 

$

13,682

 

Lease termination fees per share

 

$

0.01

 

$

 

 

 

$

0.05

 

$

0.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight-line rental income

 

$

2,143

 

$

1,301

 

 

 

$

5,876

 

$

5,329

 

Straight-line rental income per share

 

$

0.02

 

$

0.01

 

 

 

$

0.05

 

$

0.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gains on outparcel sales

 

$

5,478

 

$

8,315

 

 

 

$

16,651

 

$

16,448

 

Gains on outparcel sales per share

 

$

0.05

 

$

0.07

 

 

 

$

0.14

 

$

0.14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of acquired above- and below-market leases

 

$

2,304

 

$

2,842

 

 

 

$

10,584

 

$

12,572

 

Amortization of acquired above- and below-market leases per share

 

$

0.02

 

$

0.02

 

 

 

$

0.09

 

$

0.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of debt premiums

 

$

1,935

 

$

1,902

 

 

 

$

7,714

 

$

7,501

 

Amortization of debt premiums per share

 

$

0.02

 

$

0.02

 

 

 

$

0.07

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

$

(3,158

)

$

(5,902

)

 

 

$

(7,518

)

$

(5,902

)

Income tax provision per share

 

$

(0.03

)

$

(0.05

)

 

 

$

(0.06

)

$

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment of marketable securities

 

$

(18,456

)

$

 

 

 

$

(18,456

)

$

 

Impairment of marketable securities

 

$

(0.16

)

$

 

 

 

$

(0.16

)

$

 

 

2

 

CBL & Associates Properties, Inc.

Supplemental Financial And Operating Information

For the Three Months and Year Ended December 31, 2007

 

Same-Center Net Operating Income

(Dollars in thousands)

 

 

Three Months Ended

December 31,

 

 

Year Ended
December 31,

 

 

 

2007

 

2006

 

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

18,873

 

$

38,697

 

 

$

89,147

 

$

117,501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

67,844

 

 

57,985

 

 

 

243,790

 

 

228,531

 

Depreciation and amortization from unconsolidated affiliates

 

 

6,776

 

 

3,385

 

 

 

17,326

 

 

13,405

 

Depreciation and amortization from discontinued operations

 

 

49

 

 

497

 

 

 

1,029

 

 

2,307

 

Minority investors' share of depreciation and amortization in shopping center properties

 

 

(322

)

 

(611

)

 

 

(132

)

 

(2,286

)

Interest expense

 

 

80,154

 

 

65,593

 

 

 

287,884

 

 

257,067

 

Interest expense from unconsolidated affiliates

 

 

7,904

 

 

4,415

 

 

 

20,480

 

 

17,569

 

Minority investors' share of interest expense in shopping center properties

 

 

(466

)

 

(1,223

)

 

 

(831

)

 

(4,850

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

227

 

 

935

 

Abandoned projects expense

 

 

1,261

 

 

629

 

 

 

2,216

 

 

923

 

Gain on sales of real estate assets

 

 

(5,005

)

 

(7,674

)

 

 

(15,570

)

 

(14,505

)

Impairment of marketable securities

 

 

18,456

 

 

 

 

 

18,456

 

 

 

Impairment of real estate assets

 

 

 

 

206

 

 

 

 

 

480

 

Gain on sales of real estate assets of unconsolidated affiliates

 

 

(473

)

 

(596

)

 

 

(1,706

)

 

(2,898

)

Minority investors' share of gain on sales of real estate assets

 

 

 

 

 

 

 

621

 

 

 

Income tax provision

 

 

4,030

 

 

5,902

 

 

 

8,390

 

 

5,902

 

Minority interest in earnings of operating partnership

 

 

10,360

 

 

22,393

 

 

 

46,246

 

 

70,323

 

Gain on discontinued operations

 

 

(2,154

)

 

(1,175

)

 

 

(6,056

)

 

(8,392

)

Operating partnership's share of total NOI

 

 

207,287

 

 

188,423

 

 

 

711,517

 

 

682,012

 

General and administrative expenses

 

 

8,780

 

 

11,471

 

 

 

37,852

 

 

39,522

 

Management fees and non-property level revenues

 

 

(5,051

)

 

(7,285

)

 

 

(27,029

)

 

(21,697

)

Operating partnership's share of property NOI

 

 

211,016

 

 

192,609

 

 

 

722,340

 

 

699,837

 

NOI of non-comparable centers

 

 

(18,816

)

 

(2,359

)

 

 

(28,442

)

 

(9,946

)

Total same center NOI

 

$

192,200

 

$

190,250

 

 

$

693,898

 

$

689,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Malls

 

$

180,651

 

$

177,782

 

 

$

644,986

 

$

642,245

 

Associated centers

 

 

6,926

 

 

7,253

 

 

 

28,814

 

 

29,499

 

Community centers

 

 

905

 

 

1,032

 

 

 

4,226

 

 

3,997

 

Other

 

 

3,718

 

 

4,183

 

 

 

15,872

 

 

14,150

 

Total same center NOI

 

 

192,200

 

 

190,250

 

 

 

693,898

 

 

689,891

 

Less lease termination fees

 

 

(612

)

 

(443

)

 

 

(6,407

)

 

(13,682

)

Total same-center NOI, excluding lease termination fees

 

$

191,588

 

$

189,807

 

 

$

687,491

 

$

676,209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage Change:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Malls

 

 

1.6

%

 

 

 

 

 

0.4

%

 

 

 

Associated centers

 

 

-4.5

%

 

 

 

 

 

-2.3

%

 

 

 

Community centers

 

 

-12.3

%

 

 

 

 

 

5.7

%

 

 

 

Other

 

 

-11.1

%

 

 

 

 

 

12.2

%

 

 

 

Total same center NOI

 

 

1.0

%

 

 

 

 

 

0.6

%

 

 

 

Total same-center NOI, excluding lease termination fees

 

 

0.9

%

 

 

 

 

 

1.7

%

 

 

 

 

 

3

CBL & Associates Properties, Inc.

Supplemental Financial And Operating Information

For the Three Months and Year Ended December 31, 2007

 

Company's Share of Consolidated and Unconsolidated Debt

(Dollars in thousands)

 

 

 

December 31, 2007

 

 

 

Fixed Rate

 

 

Variable Rate

 

 

Total

 

Consolidated debt

 

$

4,543,515

 

 

$

1,325,803

 

 

$

5,869,318

 

Minority investors' share of consolidated debt

 

 

(24,236

)

 

 

(2,517

)

 

 

(26,753

)

Company's share of unconsolidated affiliates' debt

 

 

335,903

 

 

 

49,475

 

 

 

385,378

 

Company's share of consolidated and unconsolidated debt

 

$

4,855,182

 

 

$

1,372,761

 

 

$

6,227,943

 

Weighted average interest rate

 

 

5.79

%

 

 

6.14

%

 

 

5.87

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2006

 

 

 

Fixed Rate

 

 

Variable Rate

 

 

Total

 

Consolidated debt

 

$

3,517,710

 

 

$

1,046,825

 

 

$

4,564,535

 

Minority investors' share of consolidated debt

 

 

(56,612

)

 

 

 

 

 

(56,612

)

Company's share of unconsolidated affiliates' debt

 

 

218,203

 

 

 

27,816

 

 

 

246,019

 

Company's share of consolidated and unconsolidated debt

 

$

3,679,301

 

 

$

1,074,641

 

 

$

4,753,942

 

Weighted average interest rate

 

 

5.97

%

 

 

6.27

%

 

 

6.03

%

 

Debt-To-Total-Market Capitalization Ratio as of December 31, 2007

(In thousands, except stock price)

 

 

 

Shares

Outstanding

 

 

 

Stock

Price (1)

 

 

 

Value

 

Common stock and operating partnership units

 

116,814

 

 

 

$

23.91

 

 

 

$

2,793,023

 

7.75% Series C Cumulative Redeemable Preferred Stock

 

460

 

 

 

 

250.00

 

 

 

 

115,000

 

7.375% Series D Cumulative Redeemable Preferred Stock

 

700

 

 

 

 

250.00

 

 

 

 

175,000

 

Preferred Units Sub REIT

 

 

 

 

 

 

 

 

 

 

 

416,113

 

Total market equity

 

 

 

 

 

 

 

 

 

 

 

3,499,136

 

Company's share of total debt

 

 

 

 

 

 

 

 

 

 

 

6,227,943

 

Total market capitalization

 

 

 

 

 

 

 

 

 

 

$

9,727,079

 

Debt-to-total-market capitalization ratio

 

 

 

 

 

 

 

 

 

 

 

64.0

%

 

(1)

Stock price for common stock and operating partnership units equals the closing price of the common stock on December 31, 2007. 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
December 31,

 

Year Ended
December 31,

 

2007:

 

Basic

 

 

 

Diluted

 

Basic

 

 

 

Diluted

 

Weighted average shares - EPS

 

65,590

 

 

 

65,952

 

65,323

 

 

 

65,913

 

Weighted average operating partnership units

 

50,637

 

 

 

50,633

 

50,671

 

 

 

50,671

 

Weighted average shares- FFO

 

116,227

 

 

 

116,585

 

115,994

 

 

 

116,584

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2006:

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares - EPS

 

64,684

 

 

 

65,913

 

63,885

 

 

 

65,269

 

Weighted average operating partnership units

 

51,097

 

 

 

51,158

 

51,589

 

 

 

51,588

 

Weighted average shares- FFO

 

115,781

 

 

 

117,071

 

115,474

 

 

 

116,857

 

 

 

Dividend Payout Ratio

 

 

 

Three Months Ended
December 31,

 

 

 

Year Ended
December 31,

 

 

 

2007

 

 

 

2006

 

 

 

2007

 

 

 

2006

 

Weighted average dividend per share

 

$

0.55047

 

 

 

$

0.51020

 

 

 

$

2.08260

 

 

 

$

1.90170

 

FFO per diluted, fully converted share

 

$

0.83

 

 

 

$

0.97

 

 

 

$

3.10

 

 

 

$

3.34

 

Dividend payout ratio

 

 

66.3

%

 

 

 

52.6

%

 

 

 

67.2

%

 

 

 

56.9

%

 

 

4

CBL & Associates Properties, Inc.

Supplemental Financial And Operating Information

For the Three Months and Year Ended December 31, 2007

 

Consolidated Balance Sheets

 

(Unaudited, in thousands except share data)

 

 

 

December 31,
2007

 

December 31,
2006

 

ASSETS

 

 

 

 

 

 

 

Real estate assets:

 

 

 

 

 

 

 

Land

 

$

917,578

 

$

779,727

 

Buildings and improvements

 

 

7,267,112

 

 

5,944,476

 

 

 

 

8,184,690

 

 

6,724,203

 

Less: accumulated depreciation

 

 

(1,102,767

)

 

(924,297

)

 

 

 

7,081,923

 

 

5,799,906

 

Developments in progress

 

 

319,049

 

 

294,345

 

Net investment in real estate assets

 

 

7,400,972

 

 

6,094,251

 

Cash and cash equivalents

 

 

65,826

 

 

28,700

 

Receivables:

 

 

 

 

 

 

 

Tenant, net of allowance

 

 

72,570

 

 

71,573

 

Other

 

 

10,257

 

 

9,656

 

Mortgage notes receivable

 

 

135,772

 

 

21,559

 

Investment in unconsolidated affiliates

 

 

142,550

 

 

78,826

 

Intangible lease assets and other assets

 

 

273,356

 

 

214,245

 

 

 

$

8,101,303

 

$

6,518,810

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

Mortgage and other notes payable

 

$

5,869,318

 

$

4,564,535

 

Accounts payable and accrued liabilities

 

 

394,213

 

 

309,969

 

Total liabilities

 

 

6,263,531

 

 

4,874,504

 

Commitments and contingencies

 

 

 

 

 

 

 

Minority interests

 

 

917,473

 

 

559,450

 

Shareholders' equity:

 

 

 

 

 

 

 

Preferred Stock, $.01 par value, 15,000,000 shares authorized:

 

 

 

 

 

 

 

8.75% Series B Cumulative Redeemable Preferred Stock,
2,000,000 shares outstanding

 

 

 

 

20

 

7.75% Series C Cumulative Redeemable Preferred Stock,
460,000 shares outstanding

 

 

5

 

 

5

 

7.375% Series D Cumulative Redeemable Preferred Stock,
700,000 shares outstanding

 

 

7

 

 

7

 

Common Stock, $.01 par value, 180,000,000 shares authorized,
65,710,828 and 65,421,311 issued and outstanding in 2007 and
2006, respectively

 

 

662

 

 

654

 

Additional paid-in capital

 

 

989,799

 

 

1,074,450

 

Accumulated other comprehensive (loss) income

 

 

(20

)

 

19

 

(Accumulated deficit) retained earnings

 

 

(70,154

)

 

9,701

 

Total shareholders' equity

 

 

920,299

 

 

1,084,856

 

 

 

$

8,101,303

 

$

6,518,810

 

 

5

CBL & Associates Properties, Inc.

Supplemental Financial And Operating Information

For the Three Months and Year Ended December 31, 2007

 

The Company presents the ratio of earnings before interest, taxes, depreciation and amortization (EBITDA) to interest because the Company believes that the 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.

 

Ratio of EBITDA to Interest Expense

(Dollars in thousands)

 

 

 

Three Months Ended

December 31,

 

 

 

Year Ended
December 31,

 

 

 

2007

 

2006

 

 

 

2007

 

2006

 

EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

18,873

 

$

38,697

 

 

 

$

89,147

 

$

117,501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

67,844

 

 

57,985

 

 

 

 

243,790

 

 

228,531

 

Depreciation and amortization from unconsolidated affiliates

 

 

6,776

 

 

3,385

 

 

 

 

17,326

 

 

13,405

 

Depreciation and amortization from discontinued operations

 

 

49

 

 

497

 

 

 

 

1,029

 

 

2,307

 

Minority investors' share of depreciation and amortization in shopping center properties

 

 

(322

)

 

(611

)

 

 

 

(132

)

 

(2,286

)

Interest expense

 

 

80,154

 

 

65,593

 

 

 

 

287,884

 

 

257,067

 

Interest expense from unconsolidated affiliates

 

 

7,904

 

 

4,415

 

 

 

 

20,480

 

 

17,569

 

Minority investors' share of interest expense in shopping center properties

 

 

(466

)

 

(1,223

)

 

 

 

(831

)

 

(4,850

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

227

 

 

935

 

Abandoned projects expense

 

 

1,261

 

 

629

 

 

 

 

2,216

 

 

923

 

Impairment of real estate assets

 

 

 

 

206

 

 

 

 

 

 

480

 

Income taxes

 

 

4,271

 

 

6,195

 

 

 

 

10,570

 

 

8,875

 

Loss on sales of operating real estate assets

 

 

 

 

32

 

 

 

 

 

 

119

 

Minority interest in earnings of operating partnership

 

 

10,360

 

 

22,393

 

 

 

 

46,246

 

 

70,323

 

Gain on disposal of discontinued operations

 

 

(2,154

)

 

(1,175

)

 

 

 

(6,056

)

 

(8,392

)

Company's share of total EBITDA

 

$

194,550

 

$

197,018

 

 

 

$

711,896

 

$

702,507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

80,154

 

$

65,593

 

 

 

$

287,884

 

$

257,067

 

Interest expense from unconsolidated affiliates

 

 

7,904

 

 

4,415

 

 

 

 

20,480

 

 

17,569

 

Minority investors' share of interest expense in shopping center properties

 

 

(466

)

 

(1,223

)

 

 

 

(831

)

 

(4,850

)

Company's share of total interest expense

 

$

87,592

 

$

68,785

 

 

 

$

307,533

 

$

269,786

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of EBITDA to Interest Expense

 

 

2.22

 

 

2.86

 

 

 

 

2.31

 

 

2.60

 

 

 

Reconciliation of EBITDA to Cash Flows Provided By Operating Activities

(In thousands)

 

 

 

Three Months Ended

December 31,

 

 

 

Year Ended
December 31,

 

 

 

2007

 

2006

 

 

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company's share of total EBITDA

 

$

194,550

 

$

197,018

 

 

 

$

711,896

 

$

702,507

 

Interest expense

 

 

(80,154

)

 

(65,593

)

 

 

 

(287,884

)

 

(257,067

)

Minority investors' share of interest expense in shopping center properties

 

 

466

 

 

1,223

 

 

 

 

831

 

 

4,850

 

Income taxes

 

 

(4,271

)

 

(6,195

)

 

 

 

(10,570

)

 

(8,875

)

Amortization of deferred financing costs and non real estate
depreciation included in operating expense

 

 

1,806

 

 

1,556

 

 

 

 

7,270

 

 

7,014

 

Amortization of debt premiums

 

 

(1,935

)

 

(1,902

)

 

 

 

(7,714

)

 

(7,501

)

Amortization of above and below market leases

 

 

(2,304

)

 

(2,842

)

 

 

 

(10,584

)

 

(12,572

)

Depreciation and interest expense from unconsolidated affiliates

 

 

(14,680

)

 

(7,800

)

 

 

 

(37,806

)

 

(30,974

)

Minority investors' share of depreciation and amortization in shopping center properties

 

 

322

 

 

611

 

 

 

 

132

 

 

2,286

 

Minority interest in earnings - shopping center properties

 

 

5,797

 

 

1,473

 

 

 

 

12,215

 

 

4,136

 

Gains on outparcel sales

 

 

(5,005

)

 

(7,706

)

 

 

 

(15,570

)

 

(14,624

)

Realized gain on available for sale securities

 

 

 

 

(1,073

)

 

 

 

 

 

(1,073

)

Impairment of marketable securities

 

 

18,456

 

 

 

 

 

 

18,456

 

 

 

Income tax benefit from stock options

 

 

1,892

 

 

5,750

 

 

 

 

6,031

 

 

5,750

 

Equity in earnings of unconsolidated affiliates

 

 

(734

)

 

(1,488

)

 

 

 

(3,502

)

 

(5,295

)

Distributions from unconsolidated affiliates

 

 

2,526

 

 

5,768

 

 

 

 

9,450

 

 

12,285

 

Share-based compensation expense

 

 

2,327

 

 

1,256

 

 

 

 

6,854

 

 

6,190

 

Changes in operating assets and liabilities

 

 

34,902

 

 

206

 

 

 

 

64,232

 

 

(18,126

)

Cash flows provided by operating activities

 

$

153,961

 

$

120,262

 

 

 

$

463,737

 

$

388,911

 

 

 

6

CBL & Associates Properties, Inc.

Supplemental Financial And Operating Information

For the Three Months and Year Ended December 31, 2007

 

 

Schedule of Mortgage and Other Notes Payable as of December 31, 2007

 

(Dollars in thousands )

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance 

 

Location

 

Property

 

Maturity

Date

 

Interest

Rate

 

Balance

 

 

Fixed

 

Variable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Properties:     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High Point, NC     

 

Oak Hollow Mall

 

Feb-08

 

7.31

%

$

39,723

 

 

$

39,723

 

$

 

Winston-Salem, NC     

 

Hanes Mall

 

Jul-08

 

7.31

%

 

99,598

 

 

 

99,598

 

 

 

Nashville, TN     

 

Hickory Hollow Mall

 

Aug-08

 

6.77

%

 

82,254

 

 

 

82,254

 

 

 

Nashville, TN     

 

The Courtyard At Hickory Hollow Mall

 

Aug-08

 

6.77

%

 

3,829

 

 

 

3,829

 

 

 

Nashville, TN     

 

Rivergate Mall

 

Aug-08

 

6.77

%

 

66,477

 

 

 

66,477

 

 

 

Nashville, TN     

 

The Village At Rivergate

 

Aug-08

 

6.77

%

 

3,140

 

 

 

3,140

 

 

 

Lansing, MI      

 

Meridian Mall

 

Oct-08

 

4.52

%

 

86,288

 

 

 

86,288

 

 

 

Stillwater, OK     

 

Lakeview Pointe

 

Nov-08

 

5.97

%

 

19,239

 

 

 

 

 

19,239

 

Cary, NC     

 

Cary Towne Center

 

Mar-09

 

6.85

%

 

83,597

 

 

 

83,597

 

 

 

Daytona Beach, FL     

 

Volusia Mall

 

Mar-09

 

4.75

%

 

52,314

 

 

 

52,314

 

 

 

Fairview Heights, IL     

 

St. Clair Square

 

Apr-09

 

7.00

%

 

61,810

 

 

 

61,810

 

 

 

Terre Haute, IN     

 

Honey Creek Mall

 

May-09

 

4.75

%

 

31,002

 

 

 

31,002

 

 

 

Burlington, NC     

 

Alamance Crossing

 

Sep-09

 

6.20

%

 

62,528

 

 

 

 

 

62,528

 

Meridian, MS     

 

Bonita Lakes Mall

 

Oct-09

 

6.82

%

 

24,199

 

 

 

24,199

 

 

 

Meridian, MS     

 

Bonita Lakes Crossing

 

Oct-09

 

6.82

%

 

7,582

 

 

 

7,582

 

 

 

Cincinnati, OH     

 

Eastgate Mall

 

Dec-09

 

4.55

%

 

54,374

(a)

 

 

54,374

 

 

 

Little Rock, AR     

 

Park Plaza Mall

 

May-10

 

4.90

%

 

39,885

 

 

 

39,885

 

 

 

Spartanburg, SC     

 

WestGate Crossing

 

Jul-10

 

8.42

%

 

9,272

 

 

 

9,272

 

 

 

Burnsville, MN     

 

Burnsville Center

 

Aug-10

 

8.00

%

 

65,164

 

 

 

65,164

 

 

 

Roanoke, VA     

 

Valley View Mall

 

Sep-10

 

5.10

%

 

42,567

 

 

 

42,567

 

 

 

Beaumont, TX     

 

Parkdale Mall

 

Sep-10

 

5.01

%

 

51,581

 

 

 

51,581

 

 

 

Beaumont, TX     

 

Parkdale Crossing

 

Sep-10

 

5.01

%

 

8,144

 

 

 

8,144

 

 

 

Nashville, TN     

 

CoolSprings Galleria

 

Sep-10

 

6.22

%

 

125,161

 

 

 

125,161

 

 

 

Stroud, PA     

 

Stroud Mall

 

Dec-10

 

8.42

%

 

30,581

 

 

 

30,581

 

 

 

Wausau, WI     

 

Wausau Center

 

Dec-10

 

6.70

%

 

12,133

 

 

 

12,133

 

 

 

York, PA     

 

York Galleria

 

Dec-10

 

8.34

%

 

48,874

 

 

 

48,874

 

 

 

Lexington, KY     

 

Fayette Mall

 

Jul-11

 

7.00

%

 

90,220

 

 

 

90,220

 

 

 

St. Peters, MO     

 

Mid Rivers Mall

 

Jul-11

 

5.66

%

 

78,748

 

 

 

78,748

 

 

 

Panama City, FL     

 

Panama City Mall

 

Aug-11

 

7.30

%

 

38,290

 

 

 

38,290

 

 

 

Asheville, NC     

 

Asheville Mall

 

Sep-11

 

6.98

%

 

65,757

 

 

 

65,757

 

 

 

Ft. Smith, AR     

 

Massard Crossing

 

Feb-12

 

7.54

%

 

5,657

 

 

 

5,657

 

 

 

Houston, TX     

 

Willowbrook Plaza

 

Feb-12

 

7.54

%

 

28,945

 

 

 

28,945

 

 

 

Vicksburg, MS     

 

Pemberton Plaza

 

Feb-12

 

7.54

%

 

1,933

 

 

 

1,933

 

 

 

Fayetteville, NC     

 

Cross Creek Mall

 

Apr-12

 

5.00

%

 

60,983

 

 

 

60,983

 

 

 

Colonial Heights, VA     

 

Southpark Mall

 

May-12

 

5.10

%

 

35,067

 

 

 

35,067

 

 

 

Asheboro, NC     

 

Randolph Mall

 

Jul-12

 

6.50

%

 

14,072

 

 

 

14,072

 

 

 

Douglasville, GA     

 

Arbor Place

 

Jul-12

 

6.51

%

 

73,058

 

 

 

73,058

 

 

 

Douglasville, GA     

 

The Landing At Arbor Place

 

Jul-12

 

6.51

%

 

8,247

 

 

 

8,247

 

 

 

Jackson, TN     

 

Old Hickory Mall

 

Jul-12

 

6.51

%

 

32,271

 

 

 

32,271

 

 

 

Louisville, KY     

 

Jefferson Mall

 

Jul-12

 

6.51

%

 

40,697

 

 

 

40,697

 

 

 

North Charleston, SC     

 

Northwoods Mall

 

Jul-12

 

6.51

%

 

58,267

 

 

 

58,267

 

 

 

Racine, WI     

 

Regency Mall

 

Jul-12

 

6.51

%

 

31,913

 

 

 

31,913

 

 

 

Saginaw, MI     

 

Fashion Square

 

Jul-12

 

6.51

%

 

55,937

 

 

 

55,937

 

 

 

Spartanburg, SC     

 

WestGate Mall

 

Jul-12

 

6.50

%

 

50,551

 

 

 

50,551

 

 

 

Chattanooga, TN     

 

CBL Center

 

Aug-12

 

6.25

%

 

13,922

 

 

 

13,922

 

 

 

Livonia, MI     

 

Laurel Park Place

 

Dec-12

 

5.00

%

 

48,881

 

 

 

48,881

 

 

 

 

 

7

 

Monroeville, PA     

 

Monroeville Mall

 

Jan-13

 

5.30

%

 

124,050

 

 

 

124,050

 

 

 

Greensburg, PA     

 

Westmoreland Mall

 

Jan-13

 

5.05

%

 

75,895

 

 

 

75,895

 

 

 

St. Louis, MO     

 

West County Center

 

Apr-13

 

5.82

%

 

158,209

 

 

 

158,209

 

 

 

Columbia, SC     

 

Columbia Place

 

Sep-13

 

5.45

%

 

30,945

 

 

 

30,945

 

 

 

St. Louis, MO     

 

South County Center

 

Oct-13

 

5.50

%

 

80,514

 

 

 

80,514

 

 

 

Joplin, MO     

 

Northpark Mall

 

Mar-14

 

5.50

%

 

38,991

 

 

 

38,991

 

 

 

Laredo, TX     

 

Mall del Norte

 

Dec-14

 

5.04

%

 

113,400

 

 

 

113,400

 

 

 

Rockford, IL     

 

CherryVale Mall

 

Oct-15

 

5.00

%

 

90,905

 

 

 

90,905

 

 

 

Brookfield, IL     

 

Brookfield Square

 

Nov-15

 

5.08

%

 

101,726

 

 

 

101,726

 

 

 

Madison, WI     

 

East Towne Mall

 

Nov-15

 

5.00

%

 

77,473

 

 

 

77,473

 

 

 

Madison, WI     

 

West Towne Mall

 

Nov-15

 

5.00

%

 

109,430

 

 

 

109,430

 

 

 

Bloomington, IL     

 

Eastland Mall

 

Dec-15

 

5.85

%

 

59,400

 

 

 

59,400

 

 

 

Decatur, IL     

 

Hickory Point Mall

 

Dec-15

 

5.85

%

 

32,288

 

 

 

32,288

 

 

 

Overland Park, KS     

 

Oak Park Mall

 

Dec-15

 

5.85

%

 

275,700

 

 

 

275,700

 

 

 

Janesville, WI     

 

Janesville Mall

 

Apr-16

 

8.38

%

 

11,115

 

 

 

11,115

 

 

 

Akron, OH     

 

Chapel Hill Mall

 

Aug-16

 

6.10

%

 

75,750

 

 

 

75,750

 

 

 

Chattanooga, TN     

 

Hamilton Place

 

Aug-16

 

5.86

%

 

115,014

 

 

 

115,014

 

 

 

Chesapeake, VA     

 

Greenbrier Mall

 

Aug-16

 

5.91

%

 

83,570

 

 

 

83,570

 

 

 

Midland, MI     

 

Midland Mall

 

Aug-16

 

6.10

%

 

37,383

 

 

 

37,383

 

 

 

St. Louis, MO     

 

Chesterfield Mall

 

Sep-16

 

5.96

%

 

140,000

 

 

 

140,000

 

 

 

Southaven, MS     

 

Southaven Towne Center

 

Jan-17

 

5.50

%

 

45,434

 

 

 

45,434

 

 

 

Charleston, SC     

 

Citadel Mall

 

Apr-17

 

5.68

%

 

74,553

 

 

 

74,553

 

 

 

Chattanooga, TN     

 

Hamilton Corner

 

Apr-17

 

5.67

%

 

16,904

 

 

 

16,904

 

 

 

Fairview Heights, IL     

 

The Shoppes at St. Clair Square

 

Apr-17

 

5.67

%

 

22,306

 

 

 

22,306

 

 

 

Lafayette, LA     

 

Mall of Acadiana

 

Apr-17

 

5.67

%

 

149,102

 

 

 

149,102

 

 

 

Layton, UT     

 

Layton Hills Mall

 

Apr-17

 

5.66

%

 

106,571

 

 

 

106,571

 

 

 

Lexington, KY     

 

The Plaza at Fayette Mall

 

Apr-17

 

5.67

%

 

44,017

 

 

 

44,017

 

 

 

Cincinnati, OH     

 

Eastgate Crossing

 

May-17

 

5.66

%

 

16,594

 

 

 

16,594

 

 

 

 

 

SUBTOTAL

 

 

 

 

 

$

4,351,971

 

 

$

4,270,204

 

$

81,767

 

Weighted average interest rate     

 

 

 

 

 

 

5.94

%

 

 

5.93

%

 

6.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Premiums:     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daytona Beach, FL     

 

Volusia Mall

 

Mar-09

 

4.75

%

$

1,225

 

 

$

1,225

 

$

 

Terre Haute, IN     

 

Honey Creek Mall

 

Apr-09

 

4.75

%

 

919

 

 

 

919

 

 

 

Little Rock, AR     

 

Park Plaza Mall

 

May-10

 

4.90

%

 

3,208

 

 

 

3,208

 

 

 

Roanoke, VA     

 

Valley View Mall

 

Sep-10

 

5.10

%

 

3,750

 

 

 

3,750

 

 

 

St. Peters, MO     

 

Mid Rivers Mall

 

Jul-11

 

5.66

%

 

4,603

 

 

 

4,603

 

 

 

Fayetteville, NC     

 

Cross Creek Mall

 

Apr-12

 

5.00

%

 

5,502

 

 

 

5,502

 

 

 

Colonial Heights, VA     

 

Southpark Mall

 

May-12

 

5.10

%

 

2,483

 

 

 

2,483

 

 

 

Livonia, MI     

 

Laurel Park Place

 

Dec-12

 

5.00

%

 

7,153

 

 

 

7,153

 

 

 

Monroeville, PA     

 

Monroeville Mall

 

Jan-13

 

5.30

%

 

2,234

 

 

 

2,234

 

 

 

St. Louis, MO     

 

West County Center

 

Apr-13

 

5.82

%

 

(4,338

)

 

 

(4,338

)

 

 

St. Louis, MO     

 

South County Center

 

Oct-13

 

5.50

%

 

(1,949

)

 

 

(1,949

)

 

 

Joplin, MO     

 

Northpark Mall

 

Mar-14

 

5.50

%

 

471

 

 

 

471

 

 

 

St. Louis, MO     

 

Chesterfield Mall

 

Sep-16

 

5.96

%

 

(2,334

)

 

 

(2,334

)

 

 

 

 

SUBTOTAL

 

 

 

 

 

$

22,927

 

 

$

22,927

 

$

 

Weighted average interest rate     

 

 

 

 

 

 

4.87

%

 

 

4.87

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans On Operating Properties And Debt Premiums     

 

 

 

 

4,374,898

 

 

 

4,293,131

 

 

81,767

 

Weighted average interest rate     

 

 

 

 

 

 

5.93

%

 

 

5.93

%

 

6.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction Loans:     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Port Orange, FL     

 

The Pavilion At Port Orange

 

Jun-08

 

6.38

%

 

6,059

 

 

 

 

 

6,059

 

West Melbourne, FL     

 

Hammock Landing

 

Jun-08

 

6.38

%

 

2,999

 

 

 

 

 

2,999

 

Milford, CT     

 

Milford Marketplace

 

Dec-08

 

6.06

%

 

16,257

 

 

 

 

 

16,257

 

Chattanooga, TN     

 

CBL Center II

 

Aug-09

 

6.49

%

 

7,503

 

 

 

 

 

7,503

 

Pearland, TX     

 

Pearland Town Center

 

Jul-10

 

6.21

%

 

42,992

 

 

 

 

 

42,992

 

Pittsburgh, PA     

 

Settler's Ridge

 

Dec-10

 

5.54

%

 

3,194

 

 

 

 

 

3,194

 

 

 

SUBTOTAL

 

 

 

 

 

 

79,004

 

 

 

 

 

79,004

 

 

 

8

 

Lines Of Credit     

 

 

 

 

 

5.04

%

 

1,415,032

 

 

 

250,000

 

 

1,165,032

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other     

 

 

 

 

 

 

 

 

384

 

 

 

384

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Consolidated Debt     

 

 

 

 

 

$

5,869,318

 

 

$

4,543,515

 

$

1,325,803

 

Weighted average interest rate     

 

 

 

 

 

 

5.88

%

 

 

5.80

%

 

6.13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus CBL's Share Of Unconsolidated Affiliates' Debt:     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Huntsville, AL     

 

Parkway Place

 

Jun-08

 

6.10

%

$

26,600

 

 

$

 

$

26,600

 

Lee's Summit, MO     

 

Summit Fair

 

Jun-10

 

7.19

%

 

5,371

(b)

 

 

 

 

5,371

 

Del Rio, TX     

 

Plaza del Sol

 

Aug-10

 

9.15

%

 

949

 

 

 

949

 

 

 

York, PA     

 

York Town Center

 

Oct-11

 

6.50

%

 

17,504

 

 

 

 

 

17,504

 

Myrtle Beach, SC     

 

Coastal GrandMyrtle Beach

 

Oct-14

 

5.09

%

 

46,592

(c)

 

 

46,592

 

 

 

El Centro, CA     

 

Imperial Valley Mall

 

Sep-15

 

4.99

%

 

34,812

 

 

 

34,812

 

 

 

Raleigh, NC     

 

Triangle Town Center

 

Dec-15

 

5.74

%

 

100,000

 

 

 

100,000

 

 

 

Clarksville, TN     

 

Governor's Square Mall

 

Sep-16

 

8.23

%

 

13,540

 

 

 

13,540

 

 

 

Paducah, KY     

 

Kentucky Oaks Mall

 

Jan-17

 

5.27

%

 

14,611

 

 

 

14,611

 

 

 

Greensboro, NC     

 

Shops at Friendly Center

 

Jan-17

 

5.90

%

 

22,242

 

 

 

22,242

 

 

 

Harrisburg, PA     

 

High Pointe Commons

 

May-17

 

5.74

%

 

7,757

 

 

 

7,757

 

 

 

Ft. Myers, FL     

 

Gulf Coast Town Center Phase I

 

Jul-17

 

5.60

%

 

95,400

 

 

 

95,400

 

 

 

 

 

SUBTOTAL

 

 

 

 

 

$

385,378

 

 

$

335,903

 

$

49,475

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Minority Interests' Share Of Consolidated Debt:     

 

Minority Interest %

 

 

 

 

 

 

 

 

 

 

 

 

 

Chattanooga, TN     

 

CBL Center

 

8.00

%

6.25

%

$

(1,114

)

 

$

(1,114

)

$

 

Chattanooga, TN     

 

CBL Center II

 

8.00

%

6.49

%

 

(600

)

 

 

 

 

(600

)

Pittsburgh, PA     

 

Settler's Ridge

 

60.00

%

5.54

%

 

(1,917

)

 

 

 

 

(1,917

)

Chattanooga, TN     

 

Hamilton Corner

 

10.00

%

5.67

%

 

(1,690

)

 

 

(1,690

)

 

 

Chattanooga, TN     

 

Hamilton Place

 

10.00

%

5.86

%

 

(11,501

)

 

 

(11,501

)

 

 

Highpoint, NC     

 

Oak Hollow Mall

 

25.00

%

7.31

%

 

(9,931

)

 

 

(9,931

)

 

 

 

 

SUBTOTAL

 

 

 

 

 

 

(26,753

)

 

 

(24,236

)

 

(2,517

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Company's Share Of Consolidated And Unconsolidated Debt     

 

 

 

$

6,227,943

 

 

$

4,855,182

 

$

1,372,761

 

Weighted average interest rate     

 

 

 

 

 

 

5.87

%

 

 

5.79

%

 

6.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt of Unconsolidated Affiliates:     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Huntsville, AL     

 

Parkway Place

 

Jun-08

 

6.10

%

$

53,200

 

 

$

 

$

53,200

 

Del Rio, TX     

 

Plaza del Sol

 

Aug-10

 

9.15

%

 

1,876

 

 

 

1,876

 

 

 

York, PA     

 

York Town Center

 

Oct-11

 

6.50

%

 

35,008

 

 

 

 

 

35,008

 

Myrtle Beach, SC     

 

Coastal GrandMyrtle Beach

 

Oct-14

 

5.09

%

 

93,184

 

 

 

93,184

 

 

 

El Centro, CA     

 

Imperial Valley Mall

 

Sep-15

 

4.99

%

 

58,019

 

 

 

58,019

 

 

 

Raleigh, NC     

 

Triangle Town Center

 

Dec-15

 

5.74

%

 

200,000

 

 

 

200,000

 

 

 

Clarksville, TN     

 

Governor's Square Mall

 

Sep-16

 

8.23

%

 

28,506

 

 

 

28,506

 

 

 

Paducah, KY     

 

Kentucky Oaks Mall

 

Jan-17

 

5.27

%

 

29,222

 

 

 

29,222

 

 

 

Greensboro, NC     

 

Shops at Friendly Center

 

Jan-17

 

5.90

%

 

44,485

 

 

 

44,485

 

 

 

Harrisburg, PA     

 

High Pointe Commons

 

May-17

 

5.74

%

 

15,513

 

 

 

15,513

 

 

 

Ft. Myers, FL     

 

Gulf Coast Town Center Phase I

 

Jul-17

 

5.60

%

 

190,800

 

 

 

190,800

 

 

 

 

 

 

 

 

 

 

 

$

749,813

 

 

$

661,605

 

$

88,208

 

Weighted average interest rate     

 

 

 

 

 

 

5.72

%

 

 

5.65

%

 

6.26

%

 

 

9

CBL & Associates Properties, Inc.

Supplemental Financial And Operating Information

For the Three Months and Year Ended December 31, 2007

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Property Types (1)

 

764,458

 

 

 

$

34.59

 

 

$

37.33

 

 

7.9

%

 

 

$

38.06

 

 

10.0

%

Stabilized malls

 

727,735

 

 

 

 

35.41

 

 

 

38.23

 

 

8.0

%

 

 

 

38.98

 

 

10.1

%

New leases

 

236,566

 

 

 

 

38.26

 

 

 

44.41

 

 

16.1

%

 

 

 

45.72

 

 

19.5

%

Renewal leases

 

491,169

 

 

 

 

34.04

 

 

 

35.26

 

 

3.6

%

 

 

 

35.73

 

 

5.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Property Types (1)

 

2,857,412

 

 

 

$

34.23

 

 

$

36.77

 

 

7.4

%

 

 

$

37.52

 

 

9.6

%

Stabilized malls

 

2,674,937

 

 

 

 

35.33

 

 

 

38.01

 

 

7.6

%

 

 

 

38.76

 

 

9.7

%

New leases

 

972,808

 

 

 

 

37.58

 

 

 

44.27

 

 

17.8

%

 

 

 

45.56

 

 

21.2

%

Renewal leases

 

1,702,129

 

 

 

 

34.05

 

 

 

34.44

 

 

1.1

%

 

 

 

34.88

 

 

2.4

%

 

 

Average Annual Base Rents Per Square Foot By Property Type of Small Shop Space Less Than 10,000 Square Feet

 

 

 

 

As of December 31,

 

 

 

 

 

2007

 

 

 

2006

 

Stabilized malls

 

 

 

$

29.20

 

 

 

$

28.03

 

Non-stabilized malls

 

 

 

 

26.70

 

 

 

 

27.77

 

Associated centers

 

 

 

 

11.78

 

 

 

 

11.32

 

Community centers

 

 

 

 

11.76

 

 

 

 

14.21

 

Other

 

 

 

 

17.08

 

 

 

 

19.48

 

 

(1)

Includes Stabilized malls, Associated centers, Community centers and Other.

(2)

Average Gross Rent does not incorporate future annual increases for common area maintenance expense reimbursements.

 

 

10

CBL & Associates Properties, Inc.

Supplemental Financial And Operating Information

For the Three Months and Year Ended December 31, 2007

 

 

 

Top 25 Tenants Based On Percentage Of Total Revenues For The Year Ended December 31, 2007:

 

 

 

Tenant

 

Number of

Stores

 

Square

Feet

 

Annual

Gross

Rentals (1)

 

Percentage

of Total Revenues

 

1

 

Limited Brands, LLC

 

162

 

803,523

 

$

31,329,844

 

3.01

%

2

 

Foot Locker, Inc.

 

198

 

760,640

 

 

31,021,076

 

2.98

%

3

 

The Gap Inc.

 

107

 

1,116,668

 

 

27,450,816

 

2.64

%

4

 

Abercrombie & Fitch, Co.

 

90

 

608,047

 

 

22,689,087

 

2.18

%

5

 

AE Outfitters Retail Company

 

80

 

462,375

 

 

20,551,015

 

1.97

%

6

 

Signet Group plc (2)

 

122

 

204,473

 

 

19,282,615

 

1.85

%

7

 

Finish Line, Inc.

 

89

 

446,013

 

 

17,123,420

 

1.65

%

8

 

Zale Corporation

 

151

 

157,038

 

 

16,255,012

 

1.56

%

9

 

Luxottica Group, S.P.A. (3)

 

155

 

340,917

 

 

16,216,445

 

1.56

%

10

 

Genesco Inc. (4)

 

183

 

249,437

 

 

14,737,664

 

1.42

%

11

 

New York & Company, Inc.

 

56

 

397,360

 

 

14,540,697

 

1.40

%

12

 

JC Penney Co. Inc. (5)

 

74

 

8,424,596

 

 

14,516,094

 

1.39

%

13

 

Express Fashions

 

46

 

398,762

 

 

13,709,803

 

1.32

%

14

 

Dick's Sporting Goods, Inc.

 

15

 

902,638

 

 

12,913,156

 

1.24

%

15

 

The Regis Corporation

 

211

 

249,598

 

 

12,566,224

 

1.21

%

16

 

The Children's Place Retail Store (6)

 

70

 

292,355

 

 

11,937,328

 

1.15

%

17

 

Pacific Sunwear of California

 

80

 

286,286

 

 

10,936,043

 

1.05

%

18

 

Charming Shoppes, Inc. (7)

 

58

 

341,837

 

 

10,867,992

 

1.04

%

19

 

Charlotte Russe Holding, Inc.

 

46

 

318,334

 

 

10,812,545

 

1.04

%

20

 

Christopher & Banks, Inc.

 

87

 

297,170

 

 

10,805,405

 

1.04

%

21

 

Aeropostale, Inc.

 

74

 

250,666

 

 

10,275,445

 

0.99

%

22

 

Sun Capital Partners, Inc. (8)

 

57

 

732,572

 

 

9,743,391

 

0.94

%

23

 

The Buckle, Inc.

 

49

 

242,120

 

 

9,140,201

 

0.88

%

24

 

Claire's Stores, Inc.

 

121

 

142,552

 

 

8,734,815

 

0.84

%

25

 

Hallmark Cards, Inc.

 

68

 

269,551

 

 

8,618,394

 

0.82

%

 

 

 

 

2,449

 

18,695,527

 

$

386,774,527

 

37.17

%

 

 

(1)

Includes annual minimum rent and tenant reimbursements based on amounts in effect at December 31, 2007.

 

(2)

Signet Group PLC operates Kay Jewelers, Marks & Morgan, JB Robinson, Shaw's Jewelers, Osterman's Jewelers, LeRoy's Jewelers, Jared Jewelers, Belden Jewelers, & Rogers Jewelers.

 

(3)

Luxottica Group, S.P.A. operates Lenscrafters, Sunglass Hut, and Pearl Vision.

 

(4)

Genesco Inc. operates Journey's, Jarman, Underground Station, Hat World, Lids, Hat Zone, and Cap Factory stores.

 

(5)

JC Penney Co. Inc. owns 30 of these stores.

 

(6)

The Children's Place Retail Stores, Inc. also operates The Disney Stores.

 

(7)

Charming Shoppes, Inc. operates Lane Bryant, Fashion Bug, and Catherine's.

 

(8)

SunCapital Partners, Inc. operates Anchor Blue, Fazoli's, Friendly's, Life Uniform, Mattress Firm, Mervyn's, Shopko, Smokey Bones, Souper Salad, and The Limited.

11

CBL & Associates Properties, Inc.

Supplemental Financial And Operating Information

For the Three Months and Year Ended December 31, 2007

 

 

Capital Expenditures for Three Months and Year Ended December 31, 2007

(In thousands)

 

 

 

Three

Months

 

 

 

Year

 

Tenant allowances

 

$

19,811

 

 

 

$

65,165

 

 

 

 

 

 

 

 

 

 

 

Renovations

 

 

9,289

 

 

 

 

41,362

 

 

 

 

 

 

 

 

 

 

 

Deferred maintenance:

 

 

 

 

 

 

 

 

 

Parking lot and parking lot lighting

 

 

5,635

 

 

 

 

7,870

 

Roof repairs and replacements

 

 

9,159

 

 

 

 

21,957

 

Other capital expenditures

 

 

2,734

 

 

 

 

8,064

 

Total deferred maintenance expenditures

 

 

17,528

 

 

 

 

37,891

 

 

 

 

 

 

 

 

 

 

 

Total capital expenditures

 

$

46,628

 

 

 

$

144,418

 

 

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. Renovation capital expenditures are 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. The third category of capital expenditures is tenant allowances, sometimes made to third-generation tenants. Tenant allowances are recovered through minimum rents from the tenants over the term of the lease.

 

 

Deferred Leasing Costs Capitalized

(In thousands)

 

 

 

2007

 

 

 

2006

 

Quarter ended:

 

 

 

 

 

 

 

 

 

March 31,

 

$

1,001

 

 

 

$

388

 

June 30,

 

 

1,593

 

 

 

 

950

 

September 30,

 

 

548

 

 

 

 

401

 

December 31,

 

 

1,478

 

 

 

 

832

 

 

 

$

4,620

 

 

 

$

2,571

 

 

 

12

CBL & Associates Properties, Inc.

Supplemental Financial And Operating Information

For The Year Ended December 31, 2007

 

Properties Opened Year-to-date

(Dollars in thousands)

 

 

 

 

 

 

 

CBL's  Share  of

 

 

 

 

 

Property

Location

Total

Project

Square

Feet

 

 

Total  Cost

 

 

Cost  To

Date

 

Date
Opened

 

Initial

Yield(a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mall Expansions:     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brookfield Square - Mitchell's Fish

   Market     

Brookfield, WI

7,500

 

 

$

3,044

 

 

$

3,044

 

April-07

 

8.4

%

Southpark Mall - Regal Cinema    

Colonial Heights, VA

68,242

 

 

 

11,322

 

 

 

11,322

 

July-07

 

11.0

%

The District at Valley View - shops     

Roanoke, VA

61,200

 

 

 

18,026

 

 

 

17,227

 

July/Fall-07

 

7.6

%

Brookfield Square - Fresh Market     

Brookfield, WI

22,400

 

 

 

4,960

 

 

 

4,960

 

August-07

 

7.6

%

Harford Mall - lifestyle expansion     

Bel Air, MD

39,222

(b)

 

 

9,736

 

 

 

8,269

 

September-07

 

6.1

%

The District at CherryVale     

Rockford, IL

84,541

 

 

 

21,099

 

 

 

19,537

 

Fall-07

 

7.4

%

Coastal Grand - Old Navy     

Myrtle Beach, SC

23,269

 

 

 

1,813

 

 

 

1,763

 

October-07

 

7.9

%

      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Community/Open-Air Centers:     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alamance Crossing East     

Burlington, NC

571,700

 

 

 

79,300

(e)

 

 

82,605

 

August-07

 

8.4

%

York Town Center (c)     

York, PA

274,495

 

 

 

21,085

 

 

 

19,511

 

September-07

 

9.8

%

Cobblestone Village at Palm Coast     

Palm Coast, FL

277,770

 

 

 

10,520

(e)

 

 

17,324

 

October-07

 

7.7

%

      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Open-Air Center Expansion:     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gulf Coast Town Center -  

Phase II-shops/Costco(d)   

Ft. Myers, FL

595,990

 

 

 

83,286

 

 

 

83,286

 

Spring-07

 

9.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Associated/Lifestyle Centers:     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Shoppes at St. Clair Square     

Fairview Heights, IL

84,080

 

 

 

27,487

(e)

 

 

31,964

 

March-07

 

7.0

%

Milford Marketplace     

Milford, CT

105,638

 

 

 

25,729

 

 

 

22,567

 

October-07

 

8.3

%

      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mall Renovations:     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mall del Norte     

Laredo, TX

1,207,687

 

 

 

20,400

 

 

 

20,400

 

Fall-07

 

N/A

 

Honey Creek Mall     

Terre Haute, IN

678,763

 

 

 

5,600

 

 

 

4,842

 

Fall-07

 

N/A

 

      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Associated Center Renovation:     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Madison Plaza     

Huntsville, AL

153,085

 

 

 

1,320

 

 

 

1,320

 

June-07

 

N/A

 

      

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopments:     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mall del Norte - Theater      

Laredo, TX

82,500

 

 

 

14,403

 

 

 

11,379

 

Spring-07

 

7.4

%

Westgate Mall - Former Proffits     

Spartanburg, SC

153,000

 

 

 

N/A

 

 

 

N/A

 

August-07

 

N/A

 

Northpark Mall - Former Wards     

Joplin, MO

90,688

 

 

 

9,750

 

 

 

7,900

 

October-07

 

7.8

%

Columbia Place - Former JCPenney     

Columbia, SC

124,819

 

 

 

12,831

 

 

 

11,604

 

Aug/Oct-07

 

7.0

%

 

 

4,706,589

 

 

$

381,711

 

 

$

380,824

 

 

 

 

 

 

 

13

Announced Property Renovations and Redevelopments

(Dollars in thousands)

 

 

 

 

 

CBL's  Share  of 

 

 

 

 

 

Property

Location

Total

Project

Square

Feet

 

Total

Cost

 

Cost  To

Date

 

Opening

Date

 

Initial

Yield(a)

 

Mall Renovations:     

 

 

 

 

 

 

 

 

 

 

 

 

 

Brookfield Square     

Brookfield, WI

1,132,984

 

$

18,100

 

$

6,068

 

Fall-08

 

N/A

 

Georgia Square     

Athens, GA

674,738

 

 

16,900

 

 

9,060

 

Spring-08

 

N/A

 

Redevelopments:     

 

 

 

 

 

 

 

 

 

 

 

 

 

Parkdale Mall - Former Dillards

(Phase I & II)     

Beaumont, TX

50,720

 

 

14,679

 

 

9,612

 

Jan-08/Fall-08

 

6.6

%

      

 

 

 

 

 

 

 

 

 

 

 

 

 

      

 

1,858,442

 

$

49,679

 

$

24,740

 

 

 

 

 

 

(a)

Pro forma initial yields represented here may be lower than actual initial returns as they are reduced for management and development fees.

(b)

Total square footage includes redevelopement and expansion of 2,641 square feet.

 

(c)

50/50 Joint Venture.

(d)

50/50 Joint Venture. Amounts shown are 100% of total costs and cost to date as CBL has funded all costs to date.

(e)

Cost-to-date higher than total cost due to pending reimbursements.

 

 

14

Properties Under Development at December 31, 2007

(Dollars in thousands)

 

 

 

 

 

CBLs  Share  of

 

 

 

 

 

Property

Location

Total

Project

Square

Feet

 

Total

Cost

 

Cost  To

Date

 

Opening

Date

 

Initial

Yield(a)

 

Mall Expansions:     

 

 

 

 

 

 

 

 

 

 

 

 

 

Southpark Mall - Foodcourt     

Colonial Heights, VA

17,150

 

 

4,188

 

 

939

 

Spring-08

 

11.0

%

Coastal Grand - JCPenney     

Myrtle Beach, SC

103,395

 

 

N/A

 

 

N/A

 

Spring-08

 

N/A

 

Coastal Grand - Ulta Cosmetics     

Myrtle Beach, SC

10,000

 

 

1,449

 

 

1,498

 

Spring-08

 

8.7

%

Cary Towne Center - Mimi's Caf     

Cary, NC

6,674

 

 

2,243

 

 

948

 

Spring-08

 

15.0

%

Brookfield Square

Claim Jumpers     

Brookfield, WI

12,000

 

 

3,430

 

 

707

 

Fall-08

 

11.9

%

      

 

 

 

 

 

 

 

 

 

 

 

 

 

Associated/Lifestyle Centers:     

 

 

 

 

 

 

 

 

 

 

 

 

 

Brookfield Square - Corner Development     

Brookfield, WI

19,745

 

 

8,372

 

 

1,478

 

Fall-08

 

8.0

%

Imperial Valley Commons

(Phase I) (b)     

El Centro, CA

610,966

 

 

11,471

 

 

19,802

 

Fall-08/

Summer-09

 

8.1

%

      

 

 

 

 

 

 

 

 

 

 

 

 

 

Office:     

 

 

 

 

 

 

 

 

 

 

 

 

 

CBL Center II     

Chattanooga, TN

74,598

 

 

17,120

 

 

10,711

 

January-08

 

8.6

%

      

 

 

 

 

 

 

 

 

 

 

 

 

 

Mixed -Use Center:     

 

 

 

 

 

 

 

 

 

 

 

 

 

Pearland Town Center

(Retail Portion)     

Pearland, TX

694,417

 

 

160,248

 

 

95,842

 

Fall-08

 

7.4

%

Pearland Town Center

(Hotel Portion)     

Pearland, TX

72,500

 

 

17,886

 

 

2,882

 

Fall-08

 

8.3

%

Pearland Town Center

(Residential Portion)     

Pearland, TX

68,110

 

 

11,312

 

 

958

 

Fall-08

 

8.4

%

Pearland Town Center

(Office Portion)     

Pearland, TX

51,560

 

 

9,385

 

 

316

 

Fall-08

 

8.7

%

      

 

 

 

 

 

 

 

 

 

 

 

 

 

Community/Open-Air Centers:     

 

 

 

 

 

 

 

 

 

 

 

 

 

Alamance Crossing -

Theater/Shops     

Burlington, NC

82,997

 

 

18,882

 

 

2,669

 

Spring-08

 

8.4

%

Statesboro Crossing (d)     

Statesboro, GA

162,450

 

 

20,465

 

 

4,956

 

Fall-08

 

8.2

%

Summit Fair (c)     

Lee's Summit, MO

512,551

 

 

22,000

 

 

22,000

 

Fall-08/

Summer-09

 

9.6

%

Settlers Ridge (b)     

Robinson Township, PA

515,444

 

 

119,146

 

 

31,137

 

Summer-09

 

8.6

%

      

 

3,014,557

 

$

427,597

 

$

196,843

 

 

 

 

 

 

(a)

Pro forma initial yields represented here may be lower than actual initial returns as they are reduced for management and development fees.

(b)

60/40 Joint Venture. Amounts shown are 100% of total costs and cost to date as CBL has funded all costs to date. Costs to date are gross of applicable reimbursements.

(c)

CBL's interest represent 27% of project cost.

 

(d)

50/50 Joint Venture

 

 

15

 

 

-----END PRIVACY-ENHANCED MESSAGE-----