Exhibit 99.1
Director of Investor Relations
(423) 490-8301
CBL & ASSOCIATES PROPERTIES REPORTS SECOND QUARTER RESULTS
| • | FFO per share rose 7.0% to $0.76 in the second quarter. |
| • | Same-center NOI for the quarter and six-months ended June 30, 2006, rose 4.0% and 3.6%, respectively. |
| • | Same store sales improved by 3.8% year-to-date. |
| • | Portfolio occupancy was 91.4% as of June 30, 2006. |
CHATTANOOGA, Tenn. (August 2, 2006) CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the second quarter and six months ended June 30, 2006. 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 second quarter ended June 30, 2006, was $20,928,000 compared with $20,783,000 for the prior-year period, representing an increase of 0.7%. Net income available to common shareholders per diluted share was $0.32 in the second quarter ended June 30, 2006, compared with $0.32 for the prior-year period.
Net income available to common shareholders for the six months ended June 30, 2006, was $41,541,000 compared with $46,154,000 for the six months ended June 30, 2005, representing a decline of 10.0%. On a diluted per share basis, net income available to common shareholders for the six months ended June 30, 2006, was $0.64 compared with $0.71 in the prior-year period, representing a decline of 9.9%. Net income available to common shareholders for the six months ended June 30, 2006, declined over the prior-year period due to increases in depreciation and interest expense for the properties acquired in prior years and gains recognized in 2005 from the sale of properties.
Funds from operations (FFO) increased 6.4% to $88,535,000 for the second quarter of 2006 from $83,203,000 for the second quarter of 2005. FFO per share on a diluted fully converted basis increased 7.0% to $0.76 for the second quarter of 2006 from $0.71 in the prior-year period. FFO increased 7.8% to $185,102,000 for the six months ended June 30, 2006 from $171,664,000 for the six months ended June 30, 2005. FFO per share increased 6.8% on a diluted, fully converted basis for the six months ended June 30, 2006, to $1.58 from $1.48 per share in the prior-year period.
HIGHLIGHTS
| • | Total revenues increased 16.7% in the second quarter 2006 to $236,981,000 from $203,033,000 in the prior-year period. Total revenues increased 15.5% in the six months ended June 30, 2006 to $482,300,000 from $417,745,000 in the comparable period a year ago. |
| • | Same center net operating income for the portfolio improved for the quarter and six months ended June 30, 2006, by 4.0% and 3.6%, respectively, compared with a 2.5% and 5.9% increase, respectively, for the prior-year periods. |
-MORE-
CBL Reports Second Quarter Results
Page 2
August 2, 2006
| • | Same-store sales for mall tenants of 10,000 square feet or less for stabilized malls as of June 30, 2006, increased 3.8% to $335 per square foot for those tenants who have reported sales, compared with a 3.4% increase for the prior-year period. |
| • | The debt-to-total-market-capitalization ratio as of June 30, 2006, was 48.2% based on the common stock closing price of $38.93 and a fully converted common stock share count of 115,989,000 shares as of the same date. The debt-to-total-market-capitalization ratio as of June 30, 2005, was 40.3% based on the common stock closing price of $43.07 and a fully converted common stock share count of 115,162,000 shares as of the same date. |
| • | Variable rate debt of $1,146,063,000 represents 12.1% of the total market capitalization for the Company and 25.1% of the Company’s share of total consolidated and unconsolidated debt. |
CBL’s Chairman and Chief Executive Officer, Charles B. Lebovitz, said, “The solid performance by our portfolio in the second quarter positions us to produce strong results throughout the remainder of this year. We were pleased that the healthy leasing environment continued as we saw at this year’s ICSC’s Spring Convention in Las Vegas and at our company’s Leasing Connection event held in June in Chattanooga. We are seeing strong retailer demand for both our new development projects as well as our existing portfolio and have been able to make significant progress in the re-leasing of spaces available within our mall properties.
We have taken steps to align our development and leasing efforts to facilitate a greater concentration on our accelerating development and redevelopment program. We are continuing to focus on proactively enhancing our existing properties through the addition of lifestyle elements, non-traditional anchors, junior anchors, and full-service restaurants. These additions successfully increase demand by both retailers and consumers at our regional malls and lifestyle centers.
The record of strong performance by our portfolio of market dominant shopping centers has greatly contributed to the notable growth of our development program. With a number of exciting new developments slated to come on-line in the coming months, we believe we are well-positioned to continue our history of impressive growth. We remain committed to providing quality returns to our shareholders.”
PORTFOLIO OCCUPANCY | June 30, | |
| 2006 | 2005 |
| Portfolio occupancy | 91.4% | 91.9% | |
| Mall portfolio | 91.4% | 91.9% | |
| Stabilized malls | 91.4% | 92.2% | |
| Non-stabilized malls | 89.3% | 84.1% | |
| Associated centers | 91.8% | 93.8% | |
| Community centers | 88.5% | 81.1% | |
| | | | | | | | | | | |
DISPOSITIONS
In May, the Company completed the previously announced sale of Wilkes – Barre Township Marketplace in Wilkes – Barre Township, PA; Springdale Center in Mobile, AL; Fashion Square in Orange Park, FL; Chicopee Marketplace in Chicopee, MA; and Cobblestone Village at Royal Palm in West Palm Beach, FL to Galileo America, LLC for $106.5 million.
OTHER SIGNIFICANT EVENTS
Subsequent to the quarter-end, CBL announced that it had completed $317.0 million in four separate new financings, secured by Hamilton Place Mall in Chattanooga, TN; Greenbrier Mall in Chesapeake, VA; Midland Mall in Midland, MI; and Chapel Hill Mall in Akron, OH. The fixed-rate loans replaced $249.7 million in existing financing. Excess proceeds were used to reduce outstanding balances on the Company’s lines of credit. As a result of the early extinguishment of one of the loans, CBL will incur a one-time charge of
-MORE-
CBL Reports Second Quarter Results
Page 3
August 2, 2006
approximately $630,000 for prepayment fees and the write-off of unamortized deferred financing costs, which will be included in net income and FFO in the third quarter of 2006.
OUTLOOK AND GUIDANCE
Based on today’s outlook and the Company’s second quarter results, the Company is providing guidance for 2006 FFO in the range of $3.31 to $3.36 per share. The full year guidance assumes NOI growth in the range of 2.5% to 3.5% and excludes the impact of any future unannounced acquisitions, gains on sales of outparcels, future lease termination fees and gains on sales of non-operating properties. The Company expects to update its annual guidance after each quarter’s results.
| Low | High |
| Expected diluted earnings per common share | $ | 1.41 | $ | 1.46 | |
| Adjust to fully converted shares from common shares | (0.63) | (0.66) | |
| Expected earnings per diluted, fully converted common share | 0.78 | 0.80 | |
| Add: depreciation and amortization | 1.99 | 1.99 | |
| Add: gain on sales of interest in Galileo | (0.08) | (0.08) | |
| Add: minority interest in earnings of Operating Partnership | 0.62 | 0.65 | |
| Expected FFO per diluted, fully converted common share | $ | 3.31 | $ | 3.36 | |
| | | | | | | | | | | | | | | | | |
INVESTOR CONFERENCE CALL AND SIMULCAST
CBL & Associates Properties, Inc. will conduct a conference call at 10:00 a.m. EDT on August 3, 2006, to discuss the second quarter results. The number to call for this interactive teleconference is 913-981-5519. A seven-day replay of the conference call will be available by dialing 719-457-0820 and entering the passcode 4049863. 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., second 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 2006 second quarter earnings release conference call. The live broadcast of CBL’s quarterly conference call will be available online at the Company’s Web site at cblproperties.com, as well as www.streetevents.com and www.earnings.com, on August 3, 2006, beginning at 10:00 a.m. EDT. The online replay will follow shortly after the call and continue through August 17, 2006.
About CBL
CBL is one of the largest and most experienced owners and developers of malls and shopping centers in the country. CBL owns, holds interests in or manages 126 properties, including 79 regional malls/open-air centers. The properties are located in 26 states and total 72.7 million square feet including 1.6 million square feet of non-owned shopping centers managed for third parties. CBL currently has ten projects under construction totaling 2.7 million square feet including Phase II of Gulf Coast Town Center in Ft. Myers, FL; two open-air shopping centers; two community centers, four associated/lifestyle centers and a mall expansion. Headquartered in Chattanooga, TN, CBL has regional offices in Boston (Waltham), MA, and Dallas, TX. 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 generally accepted accounting principles (“GAAP”). The National Association of Real Estate Investment Trusts 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. The Company believes that FFO provides an additional
-MORE-
CBL Reports Second Quarter Results
Page 4
August 2, 2006
indicator of the operating performance of the Company’s properties without giving effect to real estate depreciation and amortization, which assumes the value of real estate assets decline predictably over time. Since values of well-maintained real estate assets have historically risen or fallen with market conditions, the Company believes that FFO enhances investors’ understanding of the Company’s operating performance.
FFO does not represent cash flow 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 continuing 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.
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.
Reclassification
Certain prior period amounts in the consolidated statements of operations have been reclassified to present marketing fund revenues and expenses on a gross basis in accordance with Emerging Issues Task Force Issue No. 99-19, Reporting Revenue Gross as a Principal versus Net as an Agent. As a result, the following amounts in the consolidated statements of operations have changed from the previously reported amounts for the three months and the six months ended June 30, 2006: tenant reimbursements have increased by $5,010,000 and $9,775,000, respectively; other revenues have decreased by $823,000 and $1,613,000, respectively; and property operating expenses have increased by $4,187,000 and $8,162,000, respectively. This reclassification did not change previously reported amounts of net income available to common shareholders.
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 Second Quarter Results
Page 5
August 2, 2006
CBL & Associates Properties, Inc. |
Consolidated Statements of Operations |
(Unaudited; in thousands, except per share amounts) |
| | | | | |
| | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2006 | 2005 | | 2006 | 2005 |
REVENUES: | | | | | |
Minimum rents | $ 149,458 | $ 127,250 | | $ 301,610 | $ 257,546 | |
Percentage rents | 1,950 | 1,758 | | 8,303 | 9,848 | |
Other rents | 3,573 | 2,795 | | 7,453 | 5,920 | |
Tenant reimbursements | 74,749 | 63,303 | | 150,740 | 128,830 | |
Management, development and leasing fees | 1,687 | 3,773 | | 2,764 | 6,818 | |
Other | 5,564 | 4,154 | | 11,430 | 8,783 | |
Total revenues | 236,981 | 203,033 | | 482,300 | 417,745 | |
| | | | | | |
EXPENSES: | | | | | | |
Property operating | 36,987 | 32,527 | | 77,724 | 68,167 | |
Depreciation and amortization | 54,471 | 43,321 | | 109,237 | 84,595 | |
Real estate taxes | 20,528 | 15,891 | | 39,793 | 31,312 | |
Maintenance and repairs | 13,573 | 11,915 | | 26,266 | 24,234 | |
General and administrative | 9,062 | 9,234 | | 18,649 | 18,421 | |
Loss on impairment of real estate assets | 274 | - | | 274 | 262 | |
Other | 4,519 | 3,057 | | 8,688 | 6,486 | |
Total expenses | 139,414 | 115,945 | | 280,631 | 233,477 | |
Income from operations | 97,567 | 87,088 | | 201,669 | 184,268 | |
Interest income | 1,946 | 2,594 | | 3,678 | 4,277 | |
Interest expense | (63,661) | (50,255) | | (127,590) | (99,176) | |
Loss on extinguishment of debt | - | - | | - | (884) | |
Gain on sales of real estate assets | 2,030 | 4,382 | | 2,930 | 7,096 | |
Equity in earnings of unconsolidated affiliates | 1,118 | 2,683 | | 3,186 | 5,774 | |
Minority interest in earnings: | | | | | | |
Operating partnership | (17,726) | (16,895) | | (35,855) | (37,721) | |
Shopping center properties | (673) | (1,178) | | (1,261) | (2,575) | |
Income before discontinued operations | 20,601 | 28,419 | | 46,757 | 61,059 | |
Operating income of discontinued operations | 754 | 60 | | 2,853 | 465 | |
Gain (loss) on discontinued operations | 7,215 | (54) | | 7,215 | (86) | |
Net income | 28,570 | 28,425 | | 56,825 | 61,438 | |
Preferred dividends | (7,642) | (7,642) | | (15,284) | (15,284) | |
Net income available to common shareholders | $ 20,928 | $ 20,783 | | $ 41,541 | $ 46,154 | |
Basic per share data: | | | | | |
Income before discontinued operations, net of preferred dividends | $ 0.20 | $ 0.33 | | $ 0.50 | $ 0.73 | |
Discontinued operations | 0.13 | - | | 0.16 | 0.01 | |
Net income available to common shareholders | $ 0.33 | $ 0.33 | | $ 0.66 | $ 0.74 | |
Weighted average common shares outstanding | 64,003 | 62,685 | | 63,333 | 62,567 | |
| | | | | | |
Diluted per share data: | | | | | | |
Income before discontinued operations, net of preferred dividends | $ 0.20 | $ 0.32 | | $ 0.49 | $ 0.71 | |
Discontinued operations | 0.12 | - | | 0.15 | - | |
Net income available to common shareholders | $ 0.32 | $ 0.32 | | $ 0.64 | $ 0.71 | |
Weighted average common and potential dilutive | | | | | | |
common shares outstanding | 65,385 | 65,004 | | 64,857 | 64,895 | |
| |
|
| | | | | |
| | | | | | | | | | | |
-MORE-
CBL Reports Second Quarter Results
Page 6
August 2, 2006
The Company's calculation of FFO is as follows (in thousands, except per share data): | | | | |
| | | | | |
| Three Months Ended
June 30, | | Six Months Ended
June 30, |
| 2006 | 2005 | | 2006 | 2005 |
| | | | | |
Net income available to common shareholders | $ 20,928 | $ 20,783 | | $ 41,541 | $ 46,154 |
Add: | | | | | |
Depreciation and amortization from consolidated properties | 54,471 | 43,321 | | 109,237 | 84,595 |
Depreciation and amortization from unconsolidated affiliates | 3,365 | 2,210 | | 6,643 | 3,920 |
Depreciation and amortization from discontinued operations | - | 18 | | 515 | 30 |
Minority interest in earnings of operating partnership | 17,726 | 16,895 | | 35,855 | 37,721 |
Less: | | | | | |
Loss on sales of operating real estate assets | 38 | 397 | | 38 | 174 |
Minority investors' share of depreciation and amortization | (568) | (289) | | (1,107) | (651) |
(Gain) loss on discontinued operations | (7,215) | 54 | | (7,215) | 86 |
Depreciation and amortization of non-real estate assets | (210) | (186) | | (405) | (365) |
Funds from operations | $ 88,535 | $ 83,203 | | $ 185,102 | $ 171,664 |
| | | | | |
Funds from operations applicable to Company shareholders | $ 49,140 | $ 45,646 | | $ 101,732 | $ 94,228 |
Basic per share data: | | | | | |
Funds from operations | $ 0.77 | $ 0.73 | | $ 1.61 | $ 1.51 |
Weighted average common shares outstanding with operating
partnership units fully converted | 115,426 | 114,134 | | 115,288 | 113,923 |
Diluted per share data: | | | | | |
Funds from operations | $ 0.76 | $ 0.71 | | $ 1.58 | $ 1.48 |
Weighted average common and potential dilutive common shares outstanding with operating partnership units fully converted | 116,808 | 116,452 | | 116,811 | 116,251 |
| | | | | |
SUPPLEMENTAL FFO INFORMATION: | | | | | |
| | | | | |
Lease termination fees | $ 2,426 | $ 178 | | $ 8,294 | $ 2,426 |
Lease termination fees per share | $ 0.02 | $ - | | $ 0.07 | $ 0.02 |
| | | | | |
Straight-line rental income | $ 1,336 | $ 1,327 | | $ 2,226 | $ 2,852 |
Straight-line rental income per share | $ 0.01 | $ 0.01 | | $ 0.02 | $ 0.02 |
| | | | | |
Gains on outparcel sales | $ 2,873 | $ 6,023 | | $ 4,508 | $ 8,633 |
Gains on outparcel sales per share | $ 0.02 | $ 0.05 | | $ 0.04 | $ 0.07 |
| | | | | |
Amortization of acquired above- and below-market leases | $ 2,322 | $ 1,279 | | $ 4,915 | $ 2,812 |
Amortization of acquired above- and below-market leases per share | $ 0.02 | $ 0.01 | | $ 0.04 | $ 0.02 |
| | | | | |
Amortization of debt premiums | $ 1,868 | $ 1,948 | | $ 3,710 | $ 3,661 |
Amortization of debt premiums per share | $ 0.02 | $ 0.02 | | $ 0.03 | $ 0.03 |
| | | | | |
Gain on sales of non operating properties | $ - | $ 406 | | $ - | $ 1,221 |
Gain on sales of non operating properties per share | $ - | $ - | | $ - | $ 0.01 |
| | | | | |
Loss on impairment of real estate assets | $ (274) | $ - | | $ (274) | $ (262) |
Loss on impairment of real estate assets per share | $ - | $ - | | $ - | $ - |
-MORE-
CBL Reports Second Quarter Results
Page 7
August 2, 2006
Same-Center Net Operating Income | | | | | |
(Dollars in thousands) | | | | | |
| | | | | |
| Three Months Ended June 30, | | Six Months Ended
June 30, |
| 2006 | 2005 | | 2006 | 2005 |
| | | | | |
Net income | $ 28,570 | $ 28,425 | | $ 56,825 | $ 61,438 |
| | | | | |
Adjustments: | | | | | |
Depreciation and amortization | 54,471 | 43,321 | | 109,237 | 84,595 |
Depreciation and amortization from unconsolidated affiliates | 3,365 | 2,210 | | 6,643 | 3,920 |
Depreciation and amortization from discontinued operations | - | 18 | | 515 | 30 |
Minority investors' share of depreciation and amortization in | | | | | |
shopping center properties | (568) | (289) | | (1,107) | (651) |
Interest expense | 63,661 | 50,255 | | 127,590 | 99,176 |
Interest expense from unconsolidated affiliates | 4,275 | 3,538 | | 8,669 | 6,060 |
Minority investors' share of interest expense in | | | | | |
shopping center properties | (1,189) | (392) | | (2,351) | (770) |
Loss on extinguishment of debt | - | - | | - | 884 |
Abandoned projects expense (income) | (60) | 17 | | (65) | 138 |
Gain on sales of real estate assets | (2,030) | (4,382) | | (2,930) | (7,096) |
Loss on impairment of real estate assets | 274 | - | | 274 | 262 |
Gain on sales of real estate assets of unconsolidated affiliates | (804) | (1,689) | | (1,537) | (2,623) |
Minority interest in earnings of operating partnership | 17,726 | 16,895 | | 35,855 | 37,721 |
(Gain) loss on discontinued operations | (7,215) | 54 | | (7,215) | 86 |
Operating partnership's share of total NOI | 160,476 | 137,981 | | 330,403 | 283,170 |
General and administrative expenses | 9,062 | 9,234 | | 18,649 | 18,421 |
Management fees and non-property level revenues | (6,204) | (7,284) | | (10,865) | (12,816) |
Operating partnership's share of property NOI | 163,334 | 139,931 | | 338,187 | 288,775 |
NOI of non-comparable centers | (21,070) | (3,122) | | (44,351) | (5,176) |
Total same center NOI | $ 142,264 | $ 136,809 | | $ 293,836 | $ 283,599 |
| | | | | |
Malls | $ 130,912 | $ 126,523 | | $ 271,107 | $ 262,759 |
Associated centers | 6,836 | 6,492 | | 13,554 | 12,764 |
Community centers | 1,096 | 1,053 | | 2,122 | 2,371 |
Other | 3,420 | 2,741 | | 7,053 | 5,705 |
Total same center NOI | $ 142,264 | $ 136,809 | | $ 293,836 | $ 283,599 |
| | | | | |
Percentage Change: | | | | | |
Malls | 3.5% | | | 3.2% | |
Associated centers | 5.3% | | | 6.2% | |
Community centers | 4.1% | | | -10.5% | |
Other | 24.8% | | | 23.6% | |
Total same center NOI | 4.0% | | | 3.6% | |
| | | | | |
| | | | | | | |
-MORE-
CBL Reports Second Quarter Results
Page 8
August 2, 2006
Company's Share of Consolidated and Unconsolidated Debt | | | | | | | |
(Dollars in thousands) | | | | | | | | | | | |
| | | | | | | June 30, 2006 | |
| | | | | | | Fixed Rate | | Variable Rate | | Total | |
Consolidated debt | | | | | | $ 3,247,156 | | $ 1,119,463 | | $ 4,366,619 | |
Minority investors' share of consolidated debt | | | | (51,436) | | - | | (51,436) | |
Company's share of unconsolidated affiliates' debt | | | | 225,447 | | 26,600 | | 252,047 | |
Company's share of consolidated and unconsolidated debt | | | $ 3,421,167 | | $ 1,146,063 | | $ 4,567,230 | |
Weighted average interest rate | | | | | 5.99% | | 6.21% | | 6.04% | |
| | | | | | | | | | | | |
| | | | | | | June 30, 2005 | |
| | | | | | | Fixed Rate | | Variable Rate | | Total | |
Consolidated debt | | | | | | $ 2,778,311 | | $ 680,530 | | $ 3,458,841 | |
Minority investors' share of consolidated debt | | | | (52,436) | | - | | (52,436) | |
Company's share of unconsolidated affiliates' debt | | | | 121,715 | | 87,167 | | 208,882 | |
Company's share of consolidated and unconsolidated debt | | | $ 2,847,590 | | $ 767,697 | | $ 3,615,287 | |
Weighted average interest rate | | | | | 6.36% | | 4.26% | | 5.91% | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Debt-To-Total-Market Capitalization Ratio as of June 30, 2006 | | | | | | | |
(In thousands, except stock price) | | | | | Shares | | | | | |
| | | | | | | Outstanding | | Stock Price (1) | | Value | |
Common stock and operating partnership units | | | | 115,989 | | $ 38.93 | | $ 4,515,452 | |
8.75% Series B Cumulative Redeemable Preferred Stock | | | 2,000 | | 50.00 | | 100,000 | |
7.75% Series C Cumulative Redeemable Preferred Stock | | | 460 | | 250.00 | | 115,000 | |
7.375% Series D Cumulative Redeemable Preferred Stock | | | 700 | | 250.00 | | 175,000 | |
Total market equity | | | | | | | | | | 4,905,452 | |
Company's share of total debt | | | | | | | | | 4,567,230 | |
Total market capitalization | | | | | | | | | | $ 9,472,682 | |
Debt-to-total-market capitalization ratio | | | | | | | | | 48.2% | |
| | | | | | | | | | | | |
(1) Stock price for common stock and operating partnership units equals the closing price of the common stock on June 30, 2006. 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 | | Six Months Ended | |
| | | | | June 30, | | June 30, | |
2006: | | | | | Basic | | Diluted | | Basic | | Diluted | |
Weighted average shares - EPS | | | 64,003 | | 65,385 | | 63,333 | | 64,857 | |
Weighted average operating partnership units | | 51,423 | | 51,423 | | 51,955 | | 51,954 | |
Weighted average shares- FFO | | | 115,426 | | 116,808 | | 115,288 | | 116,811 | |
| | | | | | | | | | | | |
2005: | | | | | | | | | | | | |
Weighted average shares - EPS | | | 62,685 | | 65,004 | | 62,567 | | 64,895 | |
Weighted average operating partnership units | | 51,449 | | 51,448 | | 51,356 | | 51,356 | |
Weighted average shares- FFO | | | 114,134 | | 116,452 | | 113,923 | | 116,251 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Dividend Payout Ratio | | | | Three Months Ended | | Six Months Ended | |
| | | | | June 30, | | June 30, | |
| | | | | 2006 | | 2005 | | 2006 | | 2005 | |
Weighted average dividend per share | | | $ 0.46388 | | $ 0.40941 | | $ 0.92777 | | $ 0.81802 | |
FFO per diluted, fully converted share | | | $ 0.76 | | $ 0.71 | | $ 1.58 | | $ 1.48 | |
Dividend payout ratio | | | | 61.0% | | 57.7% | | 58.7% | | 55.3% | |
| | | | | | | | | | | | |
-MORE-
CBL Reports Second Quarter Results
Page 9
August 2, 2006
Consolidated Balance Sheets | | | | |
(Preliminary and unaudited, in thousands) | | | | |
| | | | |
| | |
| | |
| June 30,
2006 | | December 31,
2005 | |
ASSETS | | | | |
Real estate assets: | | | | |
Land | $ 770,288 | | $ 776,989 | |
Buildings and improvements | 5,734,393 | | 5,698,669 | |
| 6,504,681 | | 6,475,658 | |
Less: accumulated depreciation | (820,581) | | (727,907) | |
| 5,684,100 | | 5,747,751 | |
Real estate assets held for sale | - | | 63,168 | |
Developments in progress | 228,473 | | 133,509 | |
Net investment in real estate assets | 5,912,573 | | 5,944,428 | |
Cash and cash equivalents | 40,068 | | 28,838 | |
Receivables: | | | | |
Tenant, net of allowance | 55,819 | | 55,056 | |
Other | 8,267 | | 6,235 | |
Mortgage notes receivable | 18,320 | | 18,117 | |
Investments in unconsolidated affiliates | 83,292 | | 84,138 | |
Other assets | | | | |
| | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
Mortgage and other notes payable | $ 4,366,619 | | $ 4,341,055 | |
Accounts payable and accrued liabilities | | | | |
Total liabilities | | | | |
Commitments and contingencies | | | | |
Minority interests | | | | |
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 | | 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,
64,612,220 and 62,512,816 issued and outstanding in 2006 and
2005, respectively | 646 | | 625 | |
Additional paid-in capital | 1,052,206 | | 1,037,764 | |
Deferred Compensation | - | | (8,895) | |
Accumulated other comprehensive income | 451 | | 288 | |
Retained earnings | | | | |
Total shareholders' equity | | | | |
| | | | |
| | | | |
-END-
