CBL & Associates Properties (CBL) 8-K CBL & Associates Properties Reports Second Quarter Results

Exhibit 99.3 Supplemental Information

CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months and Six Months Ended June 30, 2008

Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
REVENUES:
Minimum rents	$	175,390		$	154,871		$	347,268		$	309,120
Percentage rents		1,607			1,852			6,597			8,334
Other rents		4,204			3,947			9,215			8,362
Tenant reimbursements		79,567			74,975			165,818			152,646
Management, development and leasing fees		2,484			3,954			5,422			5,175
Other		6,275			6,690			13,304			11,670
Total revenues		269,527			246,289			547,624			495,307
EXPENSES:
Property operating		43,794			38,764			91,815			81,829
Depreciation and amortization		73,064			60,491			146,680			117,099
Real estate taxes		23,749			19,862			47,604			40,508
Maintenance and repairs		14,780			14,003			32,487			29,294
General and administrative		11,114			10,570			23,645			20,767
Other		6,541			4,802			13,540			8,441
Total expenses		173,042			148,492			355,771			297,938
Income from operations		96,485			97,797			191,853			197,369
Interest and other income		2,182			2,883			4,909			5,628
Interest expense		(76,455	)		(68,814	)		(156,679	)		(134,941	)
Loss on extinguishment of debt		—			—			—			(227	)
Gain on sales of real estate assets		4,273			2,698			7,349			6,228
Equity in earnings (losses) of unconsolidated affiliates		(186	)		1,084			793			1,682
Income tax provision		(3,838	)		(948	)		(4,195	)		(1,751	)
Minority interest in earnings:
Operating partnership		(7,385	)		(9,035	)		(12,127	)		(22,598	)
Shopping center properties		(6,402	)		(3,567	)		(12,451	)		(4,297	)
Income from continuing operations		8,674			22,098			19,452			47,093
Operating income of discontinued operations		3,335			590			4,183			693
Gain (loss) on discontinued operations		3,112			—			3,112			(55	)
Net income		15,121			22,688			26,747			47,731
Preferred dividends		(5,454	)		(11,223	)		(10,909	)		(18,865	)
Net income available to common shareholders	$	9,667		$	11,465		$	15,838		$	28,866
Basic per share data:
Income from continuing operations, net of preferred dividends	$	0.05		$	0.17		$	0.13		$	0.43
Discontinued operations		0.10			0.01			0.11			0.01
Net income available to common shareholders	$	0.15		$	0.18		$	0.24		$	0.44
Weighted average common shares outstanding		65,982			65,246			65,940			65,178
Diluted per share data:
Income from continuing operations, net of preferred dividends	$	0.05		$	0.16		$	0.13		$	0.43
Discontinued operations		0.10			0.01			0.11			0.01
Net income available to common shareholders	$	0.15		$	0.17		$	0.24		$	0.44
Weighted average common and potential dilutive common shares outstanding		66,206			65,922			66,146			65,905

1

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Six Months Ended June 30, 2008

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
Net income available to common shareholders	$	9,667		$	11,465		$	15,838		$	28,866
Minority interest in earnings of operating partnership		7,385			9,035			12,127			22,598
Depreciation and amortization expense of:
Consolidated properties		73,064			60,491			146,680			117,099
Unconsolidated affiliates		6,694			3,621			13,371			7,125
Discontinued operations		117			474			2,357			934
Non-real estate assets		(259	)		(234	)		(502	)		(462	)
Minority investors’ share of depreciation and amortization		(303	)		1,096			(651	)		490
(Gain) loss on discontinued operations		(3,112	)		—			(3,112	)		55
Income tax provision on disposal of discontinued operations		1,183			—			1,183			—
Funds from operations of the operating partnership	$	94,436		$	85,948		$	187,291		$	176,705
Funds from operations per diluted share	$	0.81		$	0.74		$	1.60		$	1.52
Weighted average common and potential dilutive common shares outstanding with operating partnership units fully converted		116,841			116,583			116,781			116,611
Reconciliation of FFO of the operating partnership to FFO allocable to Company shareholders:
Funds from operations of the operating partnership	$	94,436		$	85,948		$	187,291		$	176,705
Percentage allocable to Company shareholders (1)		56.58	%		56.29	%		56.56	%		56.24	%
Funds from operations allocable to Company shareholders	$	53,432		$	48,380		$	105,932		$	99,379

⁽¹⁾ Represents the weighted average number of common shares outstanding for the period divided by the sum of the weighted average number of common shares and the weighted average number of operating partnership units outstanding during the period. See the reconciliation of shares and operating partnership units on page 4.

SUPPLEMENTAL FFO INFORMATION:
Lease termination fees	$	4,458		$	2,082		$	5,918		$	5,639
Lease termination fees per share	$	0.04		$	0.02		$	0.05		$	0.05
Straight-line rental income	$	1,738		$	1,260		$	3,151		$	2,384
Straight-line rental income per share	$	0.01		$	0.01		$	0.03		$	0.02
Gains on outparcel sales	$	4,188		$	3,352		$	7,548		$	7,138
Gains on outparcel sales per share	$	0.04		$	0.03		$	0.06		$	0.06
Amortization of acquired above- and below-market leases	$	2,405		$	2,762		$	5,108		$	5,692
Amortization of acquired above- and below-market leases per share	$	0.02		$	0.02		$	0.04		$	0.05
Amortization of debt premiums	$	1,961		$	1,928		$	3,936		$	3,830
Amortization of debt premiums per share	$	0.02		$	0.02		$	0.03		$	0.03
Income tax provision	$	(2,655	)	$	(948	)	$	(3,012	)	$	(1,751	)
Income tax provision per share	$	(0.02	)	$	(0.01	)	$	(0.03	)	$	(0.02	)

2

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Six Months Ended June 30, 2008

Same-Center Net Operating Income
(Dollars in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
Net income	$	15,121		$	22,688		$	26,747		$	47,731
Adjustments:
Depreciation and amortization		73,064			60,491			146,680			117,099
Depreciation and amortization from unconsolidated affiliates		6,694			3,621			13,371			7,125
Depreciation and amortization from discontinued operations		117			474			2,357			934
Minority investors’ share of depreciation and amortization in shopping center properties		(303	)		1,096			(651	)		490
Interest expense		76,455			68,814			156,679			134,941
Interest expense from unconsolidated affiliates		7,208			4,206			13,834			8,398
Minority investors’ share of interest expense in shopping center properties		(455	)		1,294			(903	)		107
Loss on extinguishment of debt		—			—			—			227
Abandoned projects expense		1,198			551			2,911			600
Gain on sales of real estate assets		(4,273	)		(2,698	)		(7,349	)		(6,228	)
Gain on sales of real estate assets of unconsolidated affiliates		(145	)		(654	)		(429	)		(910	)
Minority investors’ share of gain on sales of shopping center real estate assets		230			—			230			—
Income tax provision		3,838			948			4,195			1,751
Minority interest in earnings of operating partnership		7,385			9,035			12,127			22,598
(Gain) loss on discontinued operations		(3,112	)		—			(3,112	)		55
Operating partnership’s share of total NOI		183,022			169,866			366,687			334,918
General and administrative expenses		11,114			10,570			23,645			20,767
Management fees and non-property level revenues		(6,136	)		(12,352	)		(14,565	)		(19,057	)
Operating partnership’s share of property NOI		188,000			168,084			375,767			336,628
NOI of non-comparable centers		(23,154	)		(1,914	)		(44,628	)		(3,112	)
Total same-center NOI	$	164,846		$	166,170		$	331,139		$	333,516
Malls	$	151,417		$	152,996		$	304,358		$	307,570
Associated centers		7,748			8,163			15,858			16,248
Community centers		1,636			1,688			3,317			3,072
Other		4,045			3,323			7,606			6,626
Total same-center NOI		164,846			166,170			331,139			333,516
Less lease termination fees		(3,758	)		(2,082	)		(4,568	)		(5,639	)
Total same-center NOI, excluding lease termination fees	$	161,088		$	164,088		$	326,571		$	327,877
Percentage Change:
Malls		-1.0	%					-1.0	%
Associated centers		-5.1	%					-2.4	%
Community centers		-3.1	%					8.0	%
Other		21.7	%					14.8	%
Total same-center NOI		-0.8	%					-0.7	%
Total same-center NOI, excluding lease termination fees		-1.8	%					-0.4	%

3

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Six Months Ended June 30, 2008

Company’s Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
	June 30, 2008
	Fixed Rate			Variable Rate			Total
Consolidated debt	$	4,653,373		$	1,344,785		$	5,998,158
Minority investors’ share of consolidated debt		(23,909	)		(910	)		(24,819	)
Company’s share of unconsolidated affiliates’ debt		409,702			74,145			483,847
Company’s share of consolidated and unconsolidated debt	$	5,039,166		$	1,418,020		$	6,457,186
Weighted average interest rate		5.79	%		3.59	%		5.30	%
	June 30, 2007
	Fixed Rate			Variable Rate			Total
Consolidated debt	$	4,066,960		$	884,746		$	4,951,706
Minority investors’ share of consolidated debt		(119,955	)		—			(119,955	)
Company’s share of unconsolidated affiliates’ debt		217,532			36,858			254,390
Company’s share of consolidated and unconsolidated debt	$	4,164,537		$	921,604		$	5,086,141
Weighted average interest rate		5.91	%		6.20	%		5.96	%
Debt-To-Total-Market Capitalization Ratio as of June 30, 2008
(In thousands, except stock price)
	Shares Outstanding			Stock Price (1)			Value
Common stock and operating partnership units		116,960		$	22.84		$	2,671,366
7.75% Series C Cumulative Redeemable Preferred Stock		460			250.00			115,000
7.375% Series D Cumulative Redeemable Preferred Stock		700			250.00			175,000
Total market equity								2,961,366
Company’s share of total debt								6,457,186
Total market capitalization							$	9,418,552
Debt-to-total-market capitalization ratio								68.6	%

(1) Stock price for common stock and operating partnership units equals the closing price of the common stock on June 30, 2008. 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 June 30,				Six Months Ended June 30,
	Basic		Diluted		Basic		Diluted
2008:
Weighted average shares - EPS		65,982		66,206		65,940		66,146
Weighted average operating partnership units		50,635		50,635		50,635		50,635
Weighted average shares- FFO		116,617		116,841		116,575		116,781
2007:
Weighted average shares - EPS		65,246		65,922		65,178		65,905
Weighted average operating partnership units		50,661		50,661		50,706		50,706
Weighted average shares- FFO		115,907		116,583		115,884		116,611

Dividend Payout Ratio	Three Months Ended June 30,						Six Months Ended June 30,
		2008			2007			2008			2007
Weighted average dividend per share	$	0.55047		$	0.51031		$	1.10094		$	1.02063
FFO per diluted, fully converted share	$	0.81		$	0.74		$	1.60		$	1.52
Dividend payout ratio		68.0	%		69.0	%		68.8	%		67.1	%

4

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Six Months Ended June 30, 2008

Consolidated Balance Sheets
(Unaudited, in thousands except share data)

	June 30, 2008			December 31, 2007
ASSETS
Real estate assets:
Land	$	861,234		$	917,578
Buildings and improvements		7,229,632			7,263,907
		8,090,866			8,181,485
Accumulated depreciation		(1,213,790	)		(1,102,767	)
		6,877,076			7,078,718
Held for Sale		137,936			—
Developments in progress		408,587			323,560
Net investment in real estate assets		7,423,599			7,402,278
Cash and cash equivalents		66,450			65,826
Cash in escrow		2,650			—
Receivables:
Tenant, net of allowance		65,738			72,570
Other		12,810			10,257
Mortgage and other notes receivable		48,883			135,137
Investments in unconsolidated affiliates		221,365			142,550
Intangible lease assets and other assets		251,406			276,429
	$	8,092,901		$	8,105,047
LIABILITIES AND SHAREHOLDERS’ EQUITY
Mortgage and other notes payable	$	5,998,158		$	5,869,318
Accounts payable and accrued liabilities		353,744			394,884
Total liabilities		6,351,902			6,264,202
Commitments and contingencies
Minority interests		875,211			920,297
Shareholders’ equity:
Preferred Stock, $.01 par value, 15,000,000 shares authorized:
7.75% Series C Cumulative Redeemable Preferred Stock, 460,000 shares outstanding		5			5
7.375% Series D Cumulative Redeemable Preferred Stock, 700,000 shares outstanding		7			7
Common Stock, $.01 par value, 180,000,000 shares authorized, 66,325,420 and 66,179,747 issued and outstanding in 2008 and 2007, respectively		663			662
Additional paid-in capital		997,821			990,048
Accumulated other comprehensive loss		(6,192	)		(20	)
Accumulated deficit		(126,516	)		(70,154	)
Total shareholders’ equity		865,788			920,548
	$	8,092,901		$	8,105,047

5

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Six Months Ended June 30, 2008

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 June 30,					Six Months Ended June 30,
	2008			2007		2008			2007
EBITDA:
Net Income	$	15,121		$	22,688	$	26,747		$	47,731
Adjustments:
Depreciation and amortization		73,064			60,491		146,680			117,099
Depreciation and amortization from unconsolidated affiliates		6,694			3,621		13,371			7,125
Depreciation and amortization from discontinued operations		117			474		2,357			934
Minority investors’ share of depreciation and amortization in shopping center properties		(303	)		1,096		(651	)		490
Interest expense		76,455			68,814		156,679			134,941
Interest expense from unconsolidated affiliates		7,208			4,206		13,834			8,398
Minority investors’ share of interest expense in shopping center properties		(455	)		1,294		(903	)		107
Income taxes		5,258			2,246		5,914			3,317
Loss on extinguishment of debt		—			—		—			227
Abandoned projects		1,198			551		2,911			600
Minority interest in earnings of operating partnership		7,385			9,035		12,127			22,598
(Gain) loss on discontinued operations		(3,112	)		—		(3,112	)		55
Company’s share of total EBITDA	$	188,630		$	174,516	$	375,954		$	343,622
Interest Expense:
Interest expense	$	76,455		$	68,814	$	156,679		$	134,941
Interest expense from unconsolidated affiliates		7,208			4,206		13,834			8,398
Minority investors’ share of interest expense in shopping center properties		(455	)		1,294		(903	)		107
Company’s share of total interest expense	$	83,208		$	74,314	$	169,610		$	143,446
Ratio of EBITDA to Interest Expense		2.27			2.35		2.22			2.40

Reconciliation of EBITDA to Cash Flows Provided By Operating Activities
(In thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2008			2007			2008			2007
Company’s share of total EBITDA	$	188,630		$	174,516		$	375,954		$	343,622
Interest expense		(76,455	)		(68,814	)		(156,679	)		(134,941	)
Minority investors’ share of interest expense in shopping center properties		455			(1,294	)		903			(107	)
Income taxes		(5,258	)		(2,246	)		(5,914	)		(3,317	)
Amortization of deferred financing costs and non-real estate depreciation included in operating expense		2,292			2,262			4,411			3,844
Amortization of debt premiums		(1,961	)		(1,928	)		(3,936	)		(3,830	)
Amortization of above- and below- market leases		(2,511	)		(2,762	)		(5,108	)		(5,692	)
Depreciation and interest expense from unconsolidated affiliates		(13,902	)		(7,827	)		(27,205	)		(15,523	)
Minority investors’ share of depreciation and amortization in shopping center properties		303			(1,096	)		651			(490	)
Minority interest in earnings - shopping center properties		6,402			3,567			12,451			4,297
Gains on outparcel sales		(4,273	)		(2,698	)		(7,349	)		(6,228	)
Income tax benefit from stock options		2,235			—			3,736			1,139
Equity in (earnings) losses of unconsolidated affiliates		186			(1,084	)		(793	)		(1,682	)
Distributions from unconsolidated affiliates		2,780			2,128			6,943			3,019
Share-based compensation expense		1,139			1,084			2,727			3,210
Changes in operating assets and liabilities		(2,082	)		12,258			(9,860	)		17,059
Cash flows provided by operating activities	$	97,980		$	106,066		$	190,932		$	204,380

6

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Six Months Ended June 30, 2008

Schedule of Mortgage and Other Notes Payable as of June 30, 2008
(Dollars in thousands )

								Balance
		Maturity Date	Interest Rate
Location	Property				Balance			Fixed		Variable
Operating Properties:
Winston-Salem, NC	Hanes Mall	Jul-08	7.31	%	$	97,849		$	97,849	$	—
Nashville, TN	Hickory Hollow Mall	Aug-08	6.77	%		81,205			81,205		—
Nashville, TN	The Courtyard at Hickory Hollow Mall	Aug-08	6.77	%		3,780			3,780		—
Nashville, TN	Rivergate Mall	Aug-08	6.77	%		65,629			65,629		—
Nashville, TN	The Village at Rivergate	Aug-08	6.77	%		3,100			3,100		—
Lansing, MI	Meridian Mall	Oct-08	4.52	%		85,018			85,018		—
Stillwater, OK	Lakeview Pointe	Nov-08	3.48	%		19,239			—		19,239
Milford, CT	Milford Marketplace	Dec-08	3.63	%		18,690			—		18,690
High Point, NC	Oak Hollow Mall	Feb-09	7.31	%		38,810			38,810		—
Cary, NC	Cary Towne Center	Mar-09	6.85	%		82,912			82,912		—
Daytona Beach, FL	Volusia Mall	Mar-09	4.75	%		51,931			51,931		—
Fairview Heights, IL	St. Clair Square	Apr-09	7.00	%		60,778			60,778		—
Terre Haute, IN	Honey Creek Mall	May-09	4.75	%		30,681			30,681		—
Chattanooga, TN	CBL Center II	Aug-09	3.71	%		11,379			—		11,379
Burlington, NC	Alamance Crossing	Sep-09	3.70	%		73,791			—		73,791
Meridian, MS	Bonita Lakes Mall	Oct-09	6.82	%		23,767			23,767		—
Meridian, MS	Bonita Lakes Crossing	Oct-09	6.82	%		7,447			7,447		—
Cincinnati, OH	Eastgate Mall	Dec-09	4.55	%		53,856	(a)		53,856		—
Little Rock, AR	Park Plaza Mall	May-10	4.90	%		39,647			39,647		—
Spartanburg, SC	WestGate Crossing	Jul-10	8.42	%		9,215			9,215		—
Burnsville, MN	Burnsville Center	Aug-10	8.00	%		64,307			64,307		—
Roanoke, VA	Valley View Mall	Sep-10	5.10	%		42,212			42,212		—
Beaumont, TX	Parkdale Mall	Sep-10	5.01	%		50,864			50,864		—
Beaumont, TX	Parkdale Crossing	Sep-10	5.01	%		8,031			8,031		—
Nashville, TN	CoolSprings Galleria	Sep-10	6.22	%		124,247			124,247		—
Stroud, PA	Stroud Mall	Dec-10	8.42	%		30,399			30,399		—
Wausau, WI	Wausau Center	Dec-10	6.70	%		11,917			11,917		—
York, PA	York Galleria	Dec-10	8.34	%		48,577			48,577		—
Lexington, KY	Fayette Mall	Jul-11	7.00	%		89,455			89,455		—
St. Peters, MO	Mid Rivers Mall	Jul-11	5.66	%		78,748			78,748		—
Panama City, FL	Panama City Mall	Aug-11	7.30	%		38,020			38,020		—
Asheville, NC	Asheville Mall	Sep-11	6.98	%		65,205			65,205		—
Ft. Smith, AR	Massard Crossing	Feb-12	7.54	%		5,614			5,614		—
Houston, TX	Willowbrook Plaza	Feb-12	7.54	%		28,724			28,724		—
Vicksburg, MS	Pemberton Plaza	Feb-12	7.54	%		1,918			1,918		—
Fayetteville, NC	Cross Creek Mall	Apr-12	5.00	%		60,526			60,526		—
Colonial Heights, VA	Southpark Mall	May-12	5.10	%		34,634			34,634		—
Asheboro, NC	Randolph Mall	Jul-12	6.50	%		13,891			13,891		—
Douglasville, GA	Arbor Place	Jul-12	6.51	%		72,119			72,119		—
Douglasville, GA	The Landing at Arbor Place	Jul-12	6.51	%		8,141			8,141		—
Jackson, TN	Old Hickory Mall	Jul-12	6.51	%		31,856			31,856		—
Louisville, KY	Jefferson Mall	Jul-12	6.51	%		40,174			40,174		—
North Charleston, SC	Northwoods Mall	Jul-12	6.51	%		57,518			57,518		—
Racine, WI	Regency Mall	Jul-12	6.51	%		31,502			31,502		—
Saginaw, MI	Fashion Square	Jul-12	6.51	%		55,217			55,217		—
Spartanburg, SC	WestGate Mall	Jul-12	6.50	%		49,900			49,900		—
Chattanooga, TN	CBL Center	Aug-12	6.25	%		13,802			13,802		—
Livonia, MI	Laurel Park Place	Dec-12	5.00	%		48,493			48,493		—
Monroeville, PA	Monroeville Mall	Jan-13	5.30	%		122,464			122,464		—

7

								Balance
		Maturity Date	Interest Rate
Location	Property				Balance			Fixed			Variable
Greensburg, PA	Westmoreland Mall	Jan-13	5.05	%		74,804			74,804			—
St. Louis, MO	West County Center	Apr-13	5.82	%		156,773			156,773			—
Columbia, SC	Columbia Place	Sep-13	5.45	%		30,537			30,537			—
St. Louis, MO	South County Center	Oct-13	5.50	%		79,779			79,779			—
Joplin, MO	Northpark Mall	Mar-14	5.50	%		38,540			38,540			—
Laredo, TX	Mall del Norte	Dec-14	5.04	%		113,400			113,400			—
Rockford, IL	CherryVale Mall	Oct-15	5.00	%		90,142			90,142			—
Brookfield, IL	Brookfield Square	Nov-15	5.08	%		100,888			100,888			—
Madison, WI	East Towne Mall	Nov-15	5.00	%		76,826			76,826			—
Madison, WI	West Towne Mall	Nov-15	5.00	%		108,517			108,517			—
Bloomington, IL	Eastland Mall	Dec-15	5.85	%		59,400			59,400			—
Decatur, IL	Hickory Point Mall	Dec-15	5.85	%		32,056			32,056			—
Overland Park, KS	Oak Park Mall	Dec-15	5.85	%		275,700			275,700			—
Janesville, WI	Janesville Mall	Apr-16	8.38	%		10,644			10,644			—
Akron, OH	Chapel Hill Mall	Aug-16	6.10	%		75,254			75,254			—
Chattanooga, TN	Hamilton Place	Aug-16	5.86	%		114,229			114,229			—
Chesapeake, VA	Greenbrier Mall	Aug-16	5.91	%		83,004			83,004			—
Midland, MI	Midland Mall	Aug-16	6.10	%		37,138			37,138			—
St. Louis, MO	Chesterfield Mall	Sep-16	5.96	%		140,000			140,000			—
Southaven, MS	Southaven Towne Center	Jan-17	5.50	%		45,112			45,112			—
Charleston, SC	Citadel Mall	Apr-17	5.68	%		74,051			74,051			—
Chattanooga, TN	Hamilton Corner	Apr-17	5.67	%		16,798			16,798			—
Fairview Heights, IL	The Shoppes at St. Clair Square	Apr-17	5.67	%		22,156			22,156			—
Lafayette, LA	Mall of Acadiana	Apr-17	5.67	%		148,096			148,096			—
Layton, UT	Layton Hills Mall	Apr-17	5.66	%		105,851			105,851			—
Lexington, KY	The Plaza at Fayette Mall	Apr-17	5.67	%		43,720			43,720			—
Cincinnati, OH	Eastgate Crossing	May-17	5.66	%		16,482			16,482			—
	SUBTOTAL				$	4,357,096		$	4,233,997		$	123,099
Weighted average interest rate						5.87	%		5.93	%		3.65	%
Debt Premiums (Discounts):
Daytona Beach, FL	Volusia Mall	Mar-09	4.75	%	$	741		$	741		$	—
Terre Haute, IN	Honey Creek Mall	May-09	4.75	%		598			598			—
Little Rock, AR	Park Plaza Mall	May-10	4.90	%		2,519			2,519			—
Roanoke, VA	Valley View Mall	Sep-10	5.10	%		3,093			3,093			—
St. Peters, MO	Mid Rivers Mall	Jul-11	5.66	%		3,957			3,957			—
Fayetteville, NC	Cross Creek Mall	Apr-12	5.00	%		4,903			4,903			—
Colonial Heights, VA	Southpark Mall	May-12	5.10	%		2,212			2,212			—
Livonia, MI	Laurel Park Place	Dec-12	5.00	%		6,464			6,464			—
Monroeville, PA	Monroeville Mall	Jan-13	5.30	%		2,021			2,021			—
St. Louis, MO	West County Center	Apr-13	5.82	%		(3,860	)		(3,860	)		—
St. Louis, MO	South County Center	Oct-13	5.50	%		(1,888	)		(1,888	)		—
Joplin, MO	Northpark Mall	Mar-14	5.50	%		435			435			—
St. Louis, MO	Chesterfield Mall	Sep-16	5.96	%		(2,203	)		(2,203	)		—
	SUBTOTAL				$	18,992		$	18,992		$	—
Weighted average interest rate						4.85	%		4.85	%
Total Loans On Operating Properties And Debt Premiums (Discounts)					$	4,376,088		$	4,252,989		$	123,099
Weighted average interest rate						5.86	%		5.93	%		3.65	%

8

								Balance
		Maturity	Interest
Location	Property	Date	Rate		Balance			Fixed			Variable
Construction Loans:
Pearland, TX	Pearland Town Center	Jul-10	3.65	%	$	88,574		$	—		$	88,574
Pittsburgh, PA	Settler’s Ridge	Dec-10	3.38	%		9,496			—			9,496
Statesboro, GA	Statesboro Crossing	Feb-11	3.48	%		9,059			—			9,059
St. Louis, MO	West County Center Former Lord & Taylor	Mar-11	3.48	%		9,911			—			9,911
	SUBTOTAL				$	117,040			—		$	117,040
Credit Facilities;
Unsecured credit facility		Aug-08	3.38	%	$	407,000	(b)	$	—		$	407,000
Secured credit facilities		Feb-09 to Mar-10	4.10	%		629,700	(c)		400,000			229,700
Unsecured term facilities		Nov-10 to Apr-11	3.83	%		467,946			—			467,946
	SUBTOTAL				$	1,504,646		$	400,000		$	1,104,646
Other					$	384		$	384			—
Total Consolidated Debt					$	5,998,158		$	4,653,373		$	1,344,785
Weighted average interest rate						5.31	%		5.81	%		3.57	%
Plus CBL’s Share Of Unconsolidated Affiliates’ Debt:
West Melbourne, FL	Hammock Landing	Sep-08	4.50	%	$	1,537		$	—		$	1,537
West Melbourne, FL	Hammock Landing	Nov-08	4.50	%		3,693			—			3,693
Huntsville, AL	Parkway Place	Jun-09	3.48	%		26,600			—			26,600
Ft. Myers, FL	Gulf Coast Town Center Phase III	Apr-10	3.97	%		3,061			—			3,061
Lee’s Summit, MO	Summit Fair	Jun-10	5.09	%		7,513	(d)		—			7,513
Del Rio, TX	Plaza del Sol	Aug-10	9.15	%		788			788			—
Port Orange, FL	The Pavilion at Port Orange	Jun-11	5.02	%		7,587			—			7,587
Port Orange, FL	The Pavilion at Port Orange	Jun-11	4.25	%		4,150			—			4,150
York, PA	York Town Center	Oct-11	3.70	%		20,004			—			20,004
Greensboro, NC	Friendly Center	Apr-13	5.33	%		38,812			38,812			—
Greensboro, NC	Renaissance Center Phase II	Apr-13	5.22	%		7,850			7,850			—
Greensboro, NC	Friendly Center Office Building	Apr-13	5.33	%		1,100			1,100			—
Greensboro, NC	First National Bank Building	Apr-13	5.33	%		405			405			—
Greensboro, NC	Green Valley Office Building	Apr-13	5.33	%		971			971			—
Greensboro, NC	First Citizens Bank Building	Apr-13	5.33	%		2,555			2,555			—
Greensboro, NC	Bank of America Building	Apr-13	5.33	%		4,625			4,625			—
Greensboro, NC	Wachovia Office Building	Apr-13	5.33	%		1,533			1,533			—
Myrtle Beach, SC	Coastal Grand-Myrtle Beach	Oct-14	5.09	%		46,002	(e)		46,002			—
El Centro, CA	Imperial Valley Mall	Sep-15	4.99	%		34,519			34,519			—
Raleigh, NC	Triangle Town Center	Dec-15	5.74	%		99,268			99,268			—
Greensboro, NC	Renaissance Center Phase I	Jul-16	5.61	%		18,175			18,175			—
Clarksville, TN	Governor’s Square Mall	Sep-16	8.23	%		13,219			13,219			—
Paducah, KY	Kentucky Oaks Mall	Jan-17	5.27	%		14,376			14,376			—
Greensboro, NC	Shops at Friendly Center	Jan-17	5.90	%		22,096			22,096			—
Harrisburg, PA	High Pointe Commons	May-17	5.74	%		7,685			7,685			—
Harrisburg, PA	High Pointe Commons Phase II	Jul-17	6.10	%		323			323			—
Ft. Myers, FL	Gulf Coast Town Center	Jul-17	5.60	%		95,400			95,400			—
	SUBTOTAL				$	483,847		$	409,702		$	74,145
		Minority Interest %
Less Minority Interests’ Share Of Consolidated Debt:
Chattanooga, TN	CBL Center	8.00%	6.25	%	$	(1,104	)	$	(1,104	)	$	—
Chattanooga, TN	CBL Center II	8.00%	3.71	%		(910	)		—			(910	)
Chattanooga, TN	Hamilton Corner	10.00%	5.67	%		(1,680	)		(1,680	)		—
Chattanooga, TN	Hamilton Place	10.00%	5.86	%		(11,423	)		(11,423	)		—
Highpoint, NC	Oak Hollow Mall	25.00%	7.31	%		(9,702	)		(9,702	)		—
	SUBTOTAL					(24,819	)		(23,909	)		(910	)
Company’s Share Of Consolidated And Unconsolidated Debt					$	6,457,186		$	5,039,166		$	1,418,020
Weighted average interest rate						5.30	%		5.79	%		3.59	%

9

								Balance
		Maturity	Interest
Location	Property	Date	Rate		Balance			Fixed			Variable
Total Debt of Unconsolidated Affiliates:
West Melbourne, FL	Hammock Landing	Sep-08	4.50	%	$	3,075		$	—		$	3,075
West Melbourne, FL	Hammock Landing	Nov-08	4.50	%		7,385			—			7,385
Huntsville, AL	Parkway Place	Jun-09	3.48	%		53,200			—			53,200
Ft. Myers, FL	Gulf Coast Town Center Phase III	Apr-10	3.97	%		3,061			—			3,061
Lee’s Summit, MO	Summit Fair	Jun-10	5.09	%		27,827			—			27,827
Del Rio, TX	Plaza del Sol	Aug-10	9.15	%		1,558			1,558			—
Port Orange, FL	The Pavilion at Port Orange	Jun-11	5.02	%		15,174			—			15,174
Port Orange, FL	The Pavilion at Port Orange	Jun-11	4.25	%		8,300			—			8,300
York, PA	York Town Center	Oct-11	3.70	%		40,008			—			40,008
Greensboro, NC	Friendly Center	Apr-13	5.33	%		77,625			77,625			—
Greensboro, NC	Renaissance Center Phase II	Apr-13	5.22	%		15,700			15,700			—
Greensboro, NC	Friendly Center Office Building	Apr-13	5.33	%		2,199			2,199			—
Greensboro, NC	First National Bank Building	Apr-13	5.33	%		809			809			—
Greensboro, NC	Green Valley Office Building	Apr-13	5.33	%		1,941			1,941			—
Greensboro, NC	First Citizens Bank Building	Apr-13	5.33	%		5,110			5,110			—
Greensboro, NC	Bank of America Building	Apr-13	5.33	%		9,250			9,250			—
Greensboro, NC	Wachovia Office Building	Apr-13	5.33	%		3,066			3,066			—
Myrtle Beach, SC	Coastal Grand-Myrtle Beach	Oct-14	5.09	%		92,004			92,004			—
El Centro, CA	Imperial Valley Mall	Sep-15	4.99	%		57,531			57,531			—
Raleigh, NC	Triangle Town Center	Dec-15	5.74	%		198,536			198,536			—
Greensboro, NC	Renaissance Center Phase I	Jul-16	5.61	%		36,349			36,349			—
Clarksville, TN	Governor’s Square Mall	Sep-16	8.23	%		27,831			27,831			—
Paducah, KY	Kentucky Oaks Mall	Jan-17	5.27	%		28,754			28,754			—
Greensboro, NC	Shops at Friendly Center	Jan-17	5.90	%		44,192			44,192			—
Harrisburg, PA	High Pointe Commons	May-17	5.74	%		15,369			15,369			—
Harrisburg, PA	High Pointe Commons Phase II	Jul-17	6.10	%		647			647			—
Ft. Myers, FL	Gulf Coast Town Center	Jul-17	5.60	%		190,800			190,800			—
					$	967,301		$	809,271		$	158,030
Weighted average interest rate						5.35	%		5.60	%		4.09	%

(a)	Represents a first mortgage securing the property. In addition to the first mortgage, there is also a $7,750 B-note that is held by the Company.
(b)	The Company intends to exercise one of the three, one-year extension options available on this line of credit to extend the maturity date to August 2009.
(c)	The Company has entered into interest rate swaps on a total notional amount of $400,000 related to its largest secured credit facility to effectively fix the interest rate on that portion of the credit line. Therefore, this amount is currently reflected as having a fixed rate.
(d)	Represents the 27% share of the outstanding balance of the construction financing that the Company has guaranteed. The maximum amount that the Company has guaranteed is $31,554.
(e)	Represents a first mortgage securing the property. In addition to the first mortgage, there is also $18,000 of B-notes that are payable to the Company and its joint venture partner, each of which hold $9,000.

10

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Six Months Ended June 30, 2008

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)		642,400	$	36.22	$	38.33		5.8	%	$	39.61		9.4	%
Stabilized malls		555,570		38.99		41.44		6.3	%		42.89		10.0	%
New leases		207,535		40.23		44.89		11.6	%		47.45		17.9	%
Renewal leases		348,035		38.26		39.39		3.0	%		40.17		5.0	%
Year to Date:
All Property Types (1)		1,515,351	$	35.84	$	38.84		8.4	%	$	39.88		11.3	%
Stabilized malls		1,375,961		37.60		40.86		8.7	%		41.98		11.6	%
New leases		376,297		42.17		49.05		16.3	%		51.47		22.1	%
Renewal leases		999,664		35.88		37.78		5.3	%		38.41		7.1	%
Total Leasing Activity

	Square Feet
Quarter:
Total Leased	1,420,088
Operating Portfolio	862,740
Development Portfolio	557,348
Year to Date:
Total Leased	3,052,928
Operating Portfolio	1,735,691
Development Portfolio	1,317,237

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

	As of June 30,
	2008		2007
Stabilized malls	$	29.17	$	28.00
Non-stabilized malls		24.84		28.29
Associated centers		11.60		12.09
Community centers		14.05		15.09
Other		17.52		19.53

(1)	Includes Stabilized malls, Associated centers, Community centers and Other.
(2)	Average Gross Rent does not incorporate allowable future increases for recoverable common area expenses.

11

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Six Months Ended June 30, 2008

Top 25 Tenants Based on Percentage of Annualized Total Revenues as of June 30, 2008

	Tenant	Number of Stores	Square Feet	Annual Gross Rentals (1)		Percentage of Total Annualized Revenues
1	Limited Brands, LLC	157	771,269	$	31,841,886		2.70	%
2	Foot Locker, Inc.	187	707,014		29,554,214		2.50	%
3	The Gap Inc.	105	1,105,430		27,372,167		2.32	%
4	Abercrombie & Fitch, Co.	96	646,066		23,712,158		2.01	%
5	AE Outfitters Retail Company	81	467,195		21,184,833		1.80	%
6	Signet Group plc (2)	118	197,744		19,162,897		1.62	%
7	Luxottica Group, S.P.A. (3)	155	340,250		17,005,076		1.44	%
8	Finish Line, Inc.	90	441,012		16,893,267		1.43	%
9	Zale Corporation	145	151,162		16,365,874		1.39	%
10	Genesco Inc. (4)	182	250,003		15,457,640		1.31	%
11	JC Penney Co. Inc. (5)	75	8,512,233		14,803,830		1.25	%
12	Express Fashions	53	437,062		14,716,560		1.25	%
13	New York & Company, Inc.	56	397,360		14,604,109		1.24	%
14	Dick’s Sporting Goods, Inc.	16	954,973		13,035,042		1.10	%
15	The Regis Corporation	211	249,086		12,805,362		1.09	%
16	Charlotte Russe Holding, Inc.	49	338,641		11,991,538		1.02	%
17	Christopher & Banks, Inc.	89	302,351		11,197,151		0.95	%
18	Aeropostale, Inc.	76	258,479		10,879,747		0.92	%
19	Charming Shoppes, Inc. (6)	54	321,426		10,479,920		0.89	%
20	Pacific Sunwear of California	69	253,091		9,797,344		0.83	%
21	The Buckle, Inc.	48	238,186		9,449,680		0.80	%
22	The Children’s Place Retail Stores, Inc. (7)	53	222,170		9,143,805		0.77	%
23	Claire’s Stores, Inc.	120	141,966		9,016,867		0.76	%
24	Sun Capital Partners, Inc. (8)	56	712,475		8,998,059		0.76	%
25	Tween Brands, Inc. (9)	64	259,324		8,658,752		0.73	%
		2,405	18,675,968	$	388,127,778		32.88	%

(1)	Includes annual minimum rent and tenant reimbursements based on amounts in effect at June 30, 2008.
(2)	Signet Group plc operates Kay Jewelers, Marks & Morgan, JB Robinson, Shaw’s Jewelers, Osterman’s Jewelers, LeRoy’s Jewelers, Jared Jewelers, Belden Jewelers and 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)	Charming Shoppes, Inc. operates Lane Bryant, Fashion Bug and Catherine’s.
(7)	The Children’s Place Retail Stores, Inc. also operates certain of The Disney Stores.
(8)	Sun Capital Partners, Inc. operates Anchor Blue, Fazoli’s, Friendly’s, Life Uniform, Mattress Firm, Mervyn’s, Shopko, Smokey Bones, Souper Salad and The Limited.
(9)	Tween Brands, Inc. operates Limited Too and Justice.

12

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Six Months Ended June 30, 2008

Capital Expenditures for the Three Months and Six Months Ended June 30, 2008
(In thousands)
	Three Months		Six Months
Tenant allowances	$	13,954	$	23,534
Renovations		6,801		12,087
Deferred maintenance:
Parking lot and parking lot lighting		1,307		2,314
Roof repairs and replacements		921		1,723
Other capital expenditures		1,111		2,635
Total deferred maintenance expenditures		3,339		6,672
Total capital expenditures	$	24,094	$	42,293

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)
	2008		2007
Quarter ended:
March 31,	$	596	$	1,001
June 30,		990		1,593
September 30,		—		548
December 31,		—		1,478
	$	1,586	$	4,620

13

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Six Months Ended June 30, 2008

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:
Cary Towne Center - Mimi’s Café	Cary, NC	6,674	$	2,243	$	1,069	Spring-08	15.0	%
Coastal Grand - Ulta Cosmetics	Myrtle Beach, SC	10,000		1,494		1,494	Spring-08	8.7	%
Coastal Grand - JCPenney (g)	Myrtle Beach, SC	103,395		NA		NA	Spring-08	NA
Brookfield Square - Claim Jumpers	Brookfield, WI	12,000		3,430		2,802	Summer-08	11.9	%
Office:
CBL Center II	Chattanooga, TN	74,598		17,120		12,580	January-08	8.6	%
		206,667	$	24,287	$	17,945

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)
Redevelopments:
Parkdale Mall - Former Dillards (Phases I & II)	Beaumont, TX	70,220	$	29,266	$	14,723	Jan-08/Fall-08	6.6	%
West County Center - Former Lord & Taylor	St. Louis, MO	90,687		34,149		14,371	Spring-09	9.9	%
Mall Renovations:
Brookfield Square	Brookfield, WI	1,132,984		18,100		13,100	Fall-08	NA
Georgia Square	Athens, GA	674,738		16,900		13,801	Spring-08	NA
		1,968,629	$	98,415	$	55,995

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Properties Under Development at June 30, 2008
(Dollars in thousands)

			CBL’s Share of
Property	Location	Total Project Square Feet	Total Cost		Cost To Date		Opening Date	Initial Yield (a)
Mall Expansions:
Asheville Mall - Barnes & Noble	Asheville, NC	40,000	$	11,684	$	2,617	Spring-09	5.3	%
High Pointe Commons - Christmas Tree Shops	Harrisburg, PA	34,938		6,247		1,781	Fall-08	9.0	%
Laurel Park Place - Food Court	Detroit, MI	30,051		4,802		1,661	Winter-08	11.2	%
Oak Park Mall - Barnes & Noble	Kansas City, KS	35,539		9,619		4,111	Spring-09	6.9	%
Southpark Mall - Food Court	Colonial Heights, VA	17,150		7,755		5,199	Summer-08	11.0	%
Associated/Lifestyle Centers:
Brookfield Square - Corner Development	Brookfield, WI	19,745		8,372		1,537	Winter-08	8.0	%
Imperial Valley Commons (Phase I) (b)	El Centro, CA	610,966		11,471		22,568	Summer-10/Summer-11	8.1	%
Mixed -Use Center:
Pearland Town Center (Retail Portion)	Pearland, TX	692,604		150,015		124,732	Summer-08	7.8	%
Pearland Town Center (Hotel Portion)	Pearland, TX	72,500		17,712		10,226	Summer-08	8.4	%
Pearland Town Center (Residential Portion)	Pearland, TX	68,110		10,529		6,081	Summer-08	8.8	%
Pearland Town Center (Office Portion)	Pearland, TX	51,560		9,385		248	Summer-08	8.7	%
Community/Open-Air Centers:
Alamance Crossing - Theater/Shops	Burlington, NC	82,997		18,882		11,342	Spring-08	8.4	%
Hammock Landing (Phase I) (d)	West Melbourne, FL	446,369		38,648		36,174	Spring-09	7.5	%
Settlers Ridge (b)	Robinson Township, PA	508,192		117,105		40,195	Summer-09	7.8	%
Statesboro Crossing (e)	Statesboro, GA	160,238		26,206		16,732	Fall-08/Summer-10	8.3	%
Summit Fair (c)	Lee’s Summit, MO	482,051		22,000		22,000	Fall-08/Summer-09	9.8	%
The Pavilion at Port Orange (Phase I) (d)	Port Orange, FL	490,132		71,836		36,094	Fall-09	7.3	%
The Promenade (f)	D’Iberville, MS	696,762		86,161		36,964	Fall-09	8.5	%
		4,539,904	$	628,429	$	380,262

(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 cost and cost to date as CBL has funded all costs to date. Cost to date may be gross of applicable reimbursements that have not yet been received.
(c)	CBL’s interest represents 27% of project cost.
(d)	50/50 joint venture.
(e)	50/50 joint venture. Amounts shown are 100% of total cost and cost to date as CBL has funded all costs to date. Cost to date may be gross of applicable reimbursements that have not yet been received.
(f)	85/15 joint venture. Amounts shown are 100% of total cost and cost to date as CBL has funded all costs to date. Cost to date may be gross of applicable reimbursements that have not yet been received.
(g)	The Company owns the land and is ground leasing it to JCPenney, which owns the building and improvements.

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