Exhibit 99.1
Earnings Release and
Supplemental Financial and Operating Information
For the Three and Nine Months Ended
September 30, 2016
Earnings Release and Supplemental Financial and Operating Information
Table of Contents
Page | ||
Reconciliations of Non-GAAP Financial Measures: | ||
Contact: Katie Reinsmidt, Senior Vice President - Investor Relations/Corporate Investments, 423.490.8301, katie.reinsmidt@cblproperties.com
CBL & ASSOCIATES PROPERTIES REPORTS OUTSTANDING
THIRD QUARTER 2016 RESULTS
CHATTANOOGA, Tenn. (October 27, 2016) – CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the third quarter ended September 30, 2016. 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.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||
2016 | 2015 | % | 2016 | 2015 | % | ||||||||||||||||
Net income (loss) attributable to common shareholders per diluted share | $ | (0.06 | ) | $ | 0.15 | (140.0 | )% | $ | 0.41 | $ | 0.54 | (24.1 | )% | ||||||||
Funds from Operations ("FFO") per diluted share | $ | 0.56 | $ | 0.56 | 0.0 | % | $ | 1.97 | $ | 1.70 | 15.9 | % | |||||||||
FFO, as adjusted, per diluted share (1) | $ | 0.57 | $ | 0.56 | 1.8 | % | $ | 1.72 | $ | 1.61 | 6.8 | % | |||||||||
(1) FFO, as adjusted, for the three months ended September 30, 2016 excludes $0.7 million of nonrecurring professional fees expense, $0.6 million of litigation expense, $1.1 million of equity in losses from the disposal of unconsolidated affiliates and $1.4 million of non-cash default interest expense. FFO, as adjusted, for the nine months ended September 30, 2016 excludes a $55.6 million increase in equity in earnings, of which $29.2 million related to the foreclosure of the loan secured by Gulf Coast Town Center and $26.4 million related to the sale of our 50% interest in Triangle Town Center; $2.3 million of litigation expense and $1.8 million of nonrecurring professional fees expense. FFO, as adjusted, for the three months ended September 30, 2015 excludes $0.3 million of expense related to a litigation settlement. FFO, as adjusted, for the nine months ended September 30, 2015 excludes a partial litigation settlement, net of related expenses, of $1.3 million, a $16.6 million gain on investment related to the sale of marketable securities and a $0.3 million gain on extinguishment of debt. |
HIGHLIGHTS:
• | Closed on the sale of two Tier 3 malls and entered into a binding contract for the sale of three additional Tier 3 malls. |
• | Same-center NOI for the third quarter of 2016 increased 2.6% in the Total Portfolio and 2.3% in the Malls compared with the prior period, primarily driven by top-line revenue growth. |
• | FFO per diluted share, as adjusted, of $0.57 for the third quarter of 2016, increased 1.8% compared with the prior-year period. |
• | Same-center mall occupancy increased 90 basis points to 92.7% as of September 30, 2016 compared with 91.8% as of September 30, 2015. |
• | Stabilized Mall leases were signed at an average increase of 10.2% over the expiring gross rent per square foot. |
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CBL's President and Chief Executive Officer Stephen Lebovitz commented, "Our strong third quarter results and outstanding operating performance year-to-date is further evidence that our portfolio transformation strategy is working. Same-center NOI growth at the high-end of our guidance range was driven by top-line revenue growth as same-center mall occupancy increased 90 basis points and lease spreads improved to average 10.2%.
"We have made tremendous progress on our disposition program this year with 17 mall transactions completed or in process. These include the two Tier 3 malls sold during the quarter as well as a portfolio of three Tier 3 malls under binding contract. Our portfolio and our company are stronger today than they have ever been. We are utilizing our free cash flow and disposition proceeds to reinvest in accretive redevelopments and high-growth developments, while at the same time we are reducing debt. With $460 million lower total debt compared with the prior-year period and healthy coverage ratios, our balance sheet is only getting better. As we close out 2016 and begin to look to 2017, we are focused on building on these portfolio and balance sheet enhancements and positioning CBL for even greater success in the future."
Net loss attributable to common shareholders for the third quarter of 2016 was $10.2 million, or $(0.06) per diluted share, compared with net income of $26.3 million, or $0.15 per diluted share, for the third quarter of 2015. Net loss in the quarter included the $53.6 million impairment of properties classified as held-for-sale or properties that the Company intends to dispose of before the end of their useful lives.
FFO allocable to common shareholders, as adjusted, for the third quarter of 2016 was $98.1 million, or $0.57 per diluted share, compared with $95.0 million, or $0.56 per diluted share, for the third quarter of 2015. FFO allocable to the Operating Partnership common unitholders, as adjusted, for the third quarter of 2016 was $114.9 million compared with $111.3 million for the third quarter of 2015.
Percentage change in same-center Net Operating Income ("NOI")(1):
Three Months Ended September 30, 2016 | |
Portfolio same-center NOI | 2.6% |
Mall same-center NOI | 2.3% |
(1) | CBL's definition of same-center NOI excludes the impact of lease termination fees and certain non-cash items of straight line rents, write-offs of landlord inducements and net amortization of acquired above and below market leases. NOI is for real estate properties and excludes the Company's subsidiary that provides maintenance, janitorial and security services. |
Major variances impacting same-center NOI for the quarter ended September 30, 2016 include:
• | NOI increased $4.4 million, generated from a $3.4 million increase in revenue and a $1.0 million decline in operating expense. |
• | Minimum rents increased $4.0 million during the quarter as a result of rent growth and occupancy increases over the prior year. |
• | Percentage rents declined $0.2 million as sales softened in the third quarter. |
• | Tenant reimbursement and other revenues declined $0.4 million. |
• | Property operating expense declined $0.7 million, maintenance and repair expense declined $0.2 million, and real estate tax expense declined $0.1 million. |
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PORTFOLIO OPERATIONAL RESULTS
Occupancy:
As of June 30, | As of September 30, | ||||
2016 | 2016 | 2015 | |||
Portfolio occupancy | 92.6% | 93.5% | 92.4% | ||
Mall portfolio | 91.6% | 92.6% | 91.7% | ||
Same-center malls | 91.6% | 92.7% | 91.8% | ||
Stabilized malls | 91.6% | 92.5% | 91.6% | ||
Non-stabilized malls (1) | 92.3% | 93.6% | 95.0% | ||
Associated centers | 95.6% | 96.1% | 93.8% | ||
Community centers | 96.8% | 97.5% | 96.6% |
(1) | Represents occupancy for The Outlet Shoppes at Atlanta and The Outlet Shoppes of the Bluegrass as of June 30, 2016 and September 30, 2016 and Fremaux Town Center, The Outlet Shoppes at Atlanta and The Outlet Shoppes of the Bluegrass as of September 30, 2015. |
New and Renewal Leasing Activity of Same Small Shop Space Less Than 10,000 Square Feet:
% Change in Average Gross Rent Per Square Foot | |
Three Months Ended September 30, 2016 | |
Stabilized Malls | 10.2% |
New leases | 19.7% |
Renewal leases | 7.3% |
Same-Center Sales Per Square Foot for Mall Tenants 10,000 Square Feet or Less:
Twelve Months Ended September 30, | |||||||||
2016 | 2015 | % Change | |||||||
Stabilized mall same-center sales per square foot | $ | 377 | $ | 379 | (0.5)% |
DISPOSITIONS
During the quarter CBL entered into a contract for a portfolio of three Tier 3 enclosed malls for an aggregate sales price of $32.25 million. The buyer, Hull Property Group, has completed due diligence and posted a significant non-refundable deposit. The portfolio includes Randolph Mall in Asheboro, NC; Regency Mall in Racine, WI; and Walnut Square in Dalton, GA. The transaction is expected to close prior to year-end 2016. CBL recorded an impairment charge of $43.3 million to write down the depreciated book value of the malls to their net sales price.
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Year-to-Date Disposition Activity:
Status/Timing | Property | Location | CBL's Ownership | CBL's Share of Consideration | CBL's Share of Debt | CBL's Share of Equity | ||||||||||||
Pending/Est. Q4 | Randolph Mall; Regency Mall; Walnut Square | Asheboro, NC; Racine, WI; Dalton, GA | 100% | $ | 32.3 | $ | — | $ | 32.3 | |||||||||
Closed/July | Fashion Square/The Lakes Mall | Saginaw, MI/Muskegon, MI | 100% | 66.5 | 38.2 | 28.3 | ||||||||||||
Closed/May | Bonita Lakes Mall & Crossing | Meridian, MI | 100% | 27.9 | — | 27.9 | ||||||||||||
Closed/March | River Ridge Mall (1) | Lynchburg, VA | 100% → 25% | 33.5 | — | 33.5 | ||||||||||||
Closed/February | Triangle Town Center, Place and Commons (1) | Raleigh, NC | 50% → 10% | 69.6 | 68.4 | 1.2 | ||||||||||||
Total Malls: | 229.8 | 106.6 | 123.2 | |||||||||||||||
Closed/September | High Pointe Commons | Harrisburg, PA | 50% | 16.9 | 8.7 | 8.2 | ||||||||||||
Closed/September | Oak Branch Business Center | Greensboro, NC | 100% | 2.4 | — | 2.4 | ||||||||||||
Closed/April | Renaissance Center | Durham, NC | 50% | 64.6 | 23.8 | 40.8 | ||||||||||||
Closed/April | The Crossings at Marshall's Creek | Middle Smithfield, PA | 100% | 22.3 | — | 22.3 | ||||||||||||
Total Community Center and Office: | 106.2 | 32.5 | 73.7 | |||||||||||||||
Total Disposition Activity: | $ | 336.0 | $ | 139.1 | $ | 196.9 | ||||||||||||
(1) Joint Venture amounts are reflected net of retained interest. |
In September CBL and its joint venture partner closed on the assignment of 100% of the partnership interests in High Pointe Commons in Harrisburg, PA for a total consideration of $33.8 million. Proceeds from the transaction were used to retire existing secured loans aggregating to $17.4 million with CBL’s share of net proceeds used to reduce outstanding balances on the Company’s lines of credit.
In September, CBL completed the sale of a wholly owned office building in Greensboro, NC for a total sales price of $2.4 million.
In July, CBL completed the sale of Fashion Square in Saginaw, MI and The Lakes Mall in Muskegon, MI for an aggregate sales price of $66.5 million, including the assumption of a $38.2 million loan secured by Fashion Square. CBL recorded an impairment charge of $32.1 million in the second quarter related to the sale.
In May, CBL closed on the sale of Bonita Lakes Mall and Bonita Lakes Crossing in Meridian, MS for $27.9 million.
In April, CBL and its 50/50 joint venture partner closed on the sale of 100% of Renaissance Center, the 363,000-square-foot community shopping center located in Durham, NC. Renaissance Center was sold for a sales price of $129.2 million, including the assumption of a $16.0 million loan by the buyer and a $31.6 million loan that was retired at closing. The transaction generated net equity to CBL of $40.8 million.
In April, CBL completed the sale of The Crossings at Marshalls Creek, the 86,000-square-foot community center located in Middle Smithfield, PA, for a sales price of $22.3 million, in cash.
In March, CBL closed on the sale of a 75% interest in River Ridge in Lynchburg, VA, to Liberty University and received net cash proceeds of $33.5 million. CBL retains a 25% ownership position in the asset and is responsible for leasing and management, earning customary fees.
In February, CBL formed a new 10/90 joint venture for Triangle Town Center, Place and Commons in Raleigh, NC, with DRA Advisors LLC (DRA). The new joint venture acquired the property from the existing 50/50 joint venture between CBL and The Richard E. Jacobs Group for a total consideration of $174.0 million, including assumption of a $171.1 million loan secured by the property. CBL holds a 10% ownership position in the asset and is responsible for leasing and managing, earning customary fees.
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FINANCING ACTIVITY
During the quarter, CBL retired three loans totaling $71.9 million (at CBL's share) and added the properties to its unencumbered pool of assets. The loans were secured by Dakota Square Mall in Minot, ND and two unconsolidated joint venture properties, Kentucky Oaks in Paducah, KY and Governor's Square in Clarksville, TN. Subsequent to the quarter-end, CBL retired the $38.3 million loan secured by Southaven Town Center in Southaven, MS.
OUTLOOK AND GUIDANCE
Based on results year-to-date and its current outlook, the Company anticipates achieving 2016 FFO, as adjusted, near the high-end of its guidance range of $2.36 - $2.40 per diluted share. CBL also anticipates achieving same-center NOI growth near the high-end of its guidance range of 1.5% - 2.5% in 2016.
The guidance also assumes the following:
• | $8.0 million to $10.0 million in gains on outparcel sales; |
• | 75-125 basis point increase in total portfolio occupancy as well as stabilized mall occupancy; |
• | G&A, net of litigation expense and non-recurring professional fees, of $58 million to $60 million; and |
• | No unannounced capital markets activity. |
Low | High | ||||||
Expected diluted earnings per common share | $ | 0.69 | $ | 0.73 | |||
Adjust to fully converted shares from common shares | (0.10 | ) | (0.11 | ) | |||
Expected earnings per diluted, fully converted common share | 0.59 | 0.62 | |||||
Add: depreciation and amortization | 1.57 | 1.57 | |||||
Add: Loss on impairment | 0.58 | 0.58 | |||||
Add: noncontrolling interest in earnings of Operating Partnership | 0.10 | 0.11 | |||||
Less: Gain on depreciable property | (0.22 | ) | (0.22 | ) | |||
Expected FFO per diluted, fully converted common share | 2.62 | 2.66 | |||||
Adjustment for dispositions of unconsolidated affiliates | (0.28 | ) | (0.28 | ) | |||
Adjustment for litigation settlement and nonrecurring professional fees expense | 0.02 | 0.02 | |||||
Expected adjusted FFO per diluted, fully converted common share | $ | 2.36 | $ | 2.40 |
INVESTOR CONFERENCE CALL AND WEBCAST
CBL & Associates Properties, Inc. will conduct a conference call on Friday, October 28, 2016, at 11:00 a.m. ET. To access this interactive teleconference, dial (888) 317-6003 or (412) 317-6061 and enter the confirmation number, 9239777. A replay of the conference call will be available through November 4, 2016, by dialing (877) 344-7529 or (412) 317‑0088 and entering the confirmation number, 10091791. A transcript of the Company's prepared remarks will be furnished on a Form 8-K following the conference call.
To receive the CBL & Associates Properties, Inc. third quarter earnings release and supplemental information, please visit the Investing section of our website at cblproperties.com or contact Investor Relations at (423) 490-8312.
The Company will also provide an online webcast and rebroadcast of its 2016 third quarter earnings release conference call. The live broadcast of the quarterly conference call will be available online at cblproperties.com on Friday, October 28, 2016 beginning at 11:00 a.m. ET. The online replay will follow shortly after the call.
ABOUT CBL & ASSOCIATES PROPERTIES, INC.
Headquartered in Chattanooga, TN, CBL is one of the largest and most active owners and developers of malls and shopping centers in the United States. CBL owns, holds interests in or manages 139 properties, including 87 regional malls/open-air centers. The properties are located in 31 states and total 81.1 million square feet including 7.1 million square feet of non-owned shopping centers managed for third parties. Additional information can be found at cblproperties.com.
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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 (loss) determined in accordance with GAAP. The National Association of Real Estate Investment Trusts ("NAREIT") defines FFO as net income (loss) (computed in accordance with GAAP) excluding gains or losses on sales of depreciable operating properties and impairment losses of depreciable properties, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests. Adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests are calculated on the same basis. We define FFO as defined above by NAREIT less dividends on preferred stock of the Company or distributions on preferred units of the Operating Partnership, as applicable. The Company’s method of calculating FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
The Company believes that FFO provides an additional indicator of the operating performance of its properties without giving effect to real estate depreciation and amortization, which assumes the value of real estate assets declines predictably over time. Since values of well-maintained real estate assets have historically risen with market conditions, the Company believes that FFO enhances investors’ understanding of its operating performance. The use of FFO as an indicator of financial performance is influenced not only by the operations of the Company’s properties and interest rates, but also by its capital structure. The Company presents both FFO allocable to Operating Partnership common unitholders and FFO allocable to common shareholders, as it believes that both are useful performance measures. The Company believes FFO allocable to Operating Partnership common unitholders is a useful performance measure since it conducts substantially all of its business through its Operating Partnership and, therefore, it reflects the performance of the properties in absolute terms regardless of the ratio of ownership interests of the Company’s common shareholders and the noncontrolling interest in the Operating Partnership. The Company believes FFO allocable to its common shareholders is a useful performance measure because it is the performance measure that is most directly comparable to net income (loss) attributable to its common shareholders.
In the reconciliation of net income (loss) attributable to the Company's common shareholders to FFO allocable to Operating Partnership common unitholders, located in this earnings release, the Company makes an adjustment to add back noncontrolling interest in income (loss) of its Operating Partnership in order to arrive at FFO of the Operating Partnership common unitholders. The Company then applies a percentage to FFO of the Operating Partnership common unitholders to arrive at FFO allocable to its common shareholders. The percentage is computed by taking the weighted average number of common shares outstanding for the period and dividing it by the sum of the weighted average number of common shares and the weighted average number of Operating Partnership units 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 (loss) for purposes of evaluating the Company’s operating performance or to cash flow as a measure of liquidity.
As described above, during the third quarter of 2016, the Company recognized $0.7 million of nonrecurring professional expense, $0.6 million of litigation expense, $1.1 million of equity in losses from the disposals of unconsolidated affiliates and $1.4 million of non-cash default interest expense. For the nine months ended September 30, 2016, the Company recognized a $54.5 million increase in equity in earnings, of which $27.9 million related to the foreclosure of the loan secured by Gulf Coast Town Center and $26.4 million related to the sale of our 50% interest in Triangle Town Center; $2.3 million of litigation expense and $1.8 million of nonrecurring professional fees expense. During the third quarter of 2015, the Company recognized $0.3 million of expense related to a litigation settlement. Additionally, during the nine months ended September 30, 2015, the Company recognized a $16.6 million gain on investment related to the sale of marketable securities, a $0.3 million gain on extinguishment of debt and received income of $1.3 million, net of related expense, as a partial settlement of ongoing litigation. Considering the significance and nature of these items, the Company believes it is important to identify their impact on its FFO measures for readers to have a complete understanding of the Company's results of operations. Therefore, the Company has also presented adjusted FFO measures excluding these items from the applicable periods.
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Same-center Net Operating Income
NOI is a supplemental measure of the operating performance of the Company's shopping centers and other properties. The Company defines NOI as property operating revenues (rental revenues, tenant reimbursements and other income) less property operating expenses (property operating, real estate taxes and maintenance and repairs).
The Company computes NOI based on the Operating Partnership's pro rata share of both consolidated and unconsolidated properties. We believe that presenting NOI and same-center NOI (described below) based on our Operating Partnership’s pro rata share of both consolidated and unconsolidated Properties is useful since we conduct substantially all of our business through our Operating Partnership and, therefore, it reflects the performance of the Properties in absolute terms regardless of the ratio of ownership interests of our common shareholders and the noncontrolling interest in the Operating Partnership. The Company's definition of NOI may be different than that used by other companies and, accordingly, the Company's NOI may not be comparable to that of other companies.
Since NOI includes only those revenues and expenses related to the operations of its shopping center and other 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. The Company’s calculation of same-center NOI also excludes lease termination income, straight-line rent adjustments, amortization of above and below market lease intangibles and write-off of landlord inducement assets in order to enhance the comparability of results from one period to another, as these items can be impacted by one-time events that 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 and other properties. A reconciliation of same-center NOI to net income is located at the end of this earnings release.
Pro Rata Share of Debt
The Company presents debt based on its pro rata ownership share (including the Company's pro rata share of unconsolidated affiliates and excluding noncontrolling interests' share of consolidated properties) because it believes this provides investors a clearer understanding of the Company's total debt obligations which affect the Company's liquidity. A reconciliation of the Company's pro rata share of debt to the amount of debt on the Company's consolidated balance sheet is located at the end of this earnings release.
Information included herein contains "forward-looking statements" within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K, and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" included therein, for a discussion of such risks and uncertainties.
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CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months and Nine Months Ended September 30, 2016
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
REVENUES: | |||||||||||||||
Minimum rents | $ | 164,444 | $ | 170,422 | $ | 502,289 | $ | 505,931 | |||||||
Percentage rents | 3,225 | 3,869 | 10,590 | 10,418 | |||||||||||
Other rents | 3,866 | 4,156 | 13,747 | 13,748 | |||||||||||
Tenant reimbursements | 69,489 | 72,461 | 212,951 | 214,818 | |||||||||||
Management, development and leasing fees | 4,177 | 2,754 | 10,825 | 8,195 | |||||||||||
Other | 6,520 | 8,974 | 19,362 | 24,278 | |||||||||||
Total revenues | 251,721 | 262,636 | 769,764 | 777,388 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Property operating | 35,116 | 35,859 | 104,804 | 107,629 | |||||||||||
Depreciation and amortization | 71,794 | 74,045 | 220,505 | 221,550 | |||||||||||
Real estate taxes | 22,492 | 23,579 | 68,354 | 68,913 | |||||||||||
Maintenance and repairs | 13,236 | 12,480 | 39,574 | 39,103 | |||||||||||
General and administrative | 13,222 | 12,995 | 46,865 | 46,440 | |||||||||||
Loss on impairment | 53,558 | 884 | 116,736 | 3,665 | |||||||||||
Other | 5,576 | 8,787 | 20,313 | 21,191 | |||||||||||
Total operating expenses | 214,994 | 168,629 | 617,151 | 508,491 | |||||||||||
Income from operations | 36,727 | 94,007 | 152,613 | 268,897 | |||||||||||
Interest and other income | 451 | 579 | 1,062 | 6,242 | |||||||||||
Interest expense | (54,292 | ) | (56,451 | ) | (162,710 | ) | (174,362 | ) | |||||||
Gain on extinguishment of debt | (6 | ) | — | — | 256 | ||||||||||
Gain on investment | — | — | — | 16,560 | |||||||||||
Equity in earnings of unconsolidated affiliates | 10,478 | 3,508 | 107,217 | 12,212 | |||||||||||
Income tax benefit (provision) | 2,386 | (448 | ) | 2,974 | (2,004 | ) | |||||||||
Income (loss) from continuing operations before gain on sales of real estate assets | (4,256 | ) | 41,195 | 101,156 | 127,801 | ||||||||||
Gain on sales of real estate assets | 4,926 | 3,237 | 14,503 | 18,167 | |||||||||||
Net income | 670 | 44,432 | 115,659 | 145,968 | |||||||||||
Net (income) loss attributable to noncontrolling interests in: | |||||||||||||||
Operating Partnership | 1,372 | (4,665 | ) | (12,056 | ) | (15,783 | ) | ||||||||
Other consolidated subsidiaries | (983 | ) | (2,198 | ) | 449 | (4,557 | ) | ||||||||
Net income attributable to the Company | 1,059 | 37,569 | 104,052 | 125,628 | |||||||||||
Preferred dividends | (11,223 | ) | (11,223 | ) | (33,669 | ) | (33,669 | ) | |||||||
Net income (loss) attributable to common shareholders | $ | (10,164 | ) | $ | 26,346 | $ | 70,383 | $ | 91,959 | ||||||
Basic per share data attributable to common shareholders: | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | (0.06 | ) | $ | 0.15 | $ | 0.41 | $ | 0.54 | ||||||
Weighted-average common shares outstanding | 170,792 | 170,494 | 170,751 | 170,470 | |||||||||||
Diluted per share data attributable to common shareholders: | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | (0.06 | ) | $ | 0.15 | $ | 0.41 | $ | 0.54 | ||||||
Weighted-average common and potential dilutive common shares outstanding | 170,792 | 170,494 | 170,751 | 170,500 |
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CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Nine Months Ended September 30, 2016
The Company's reconciliation of net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders is as follows:
(in thousands, except per share data)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income (loss) attributable to common shareholders | $ | (10,164 | ) | $ | 26,346 | $ | 70,383 | $ | 91,959 | ||||||
Noncontrolling interest in income (loss) of Operating Partnership | (1,372 | ) | 4,665 | 12,056 | 15,783 | ||||||||||
Depreciation and amortization expense of: | |||||||||||||||
Consolidated properties | 71,794 | 74,045 | 220,505 | 221,550 | |||||||||||
Unconsolidated affiliates | 10,756 | 10,734 | 29,090 | 31,354 | |||||||||||
Non-real estate assets | (838 | ) | (711 | ) | (2,397 | ) | (2,284 | ) | |||||||
Noncontrolling interests' share of depreciation and amortization | (2,237 | ) | (2,154 | ) | (6,685 | ) | (6,936 | ) | |||||||
Loss on impairment, net of tax | 51,812 | 884 | 114,990 | 3,665 | |||||||||||
Gain on depreciable property, net of tax | (8,685 | ) | (2,849 | ) | (44,206 | ) | (15,045 | ) | |||||||
FFO allocable to Operating Partnership common unitholders | 111,066 | 110,960 | 393,736 | 340,046 | |||||||||||
Litigation settlements, net of related expenses (1) | 601 | 325 | 2,308 | (1,329 | ) | ||||||||||
Nonrecurring professional fees expense (1) | 662 | — | 1,781 | — | |||||||||||
Gain on investment | — | — | — | (16,560 | ) | ||||||||||
Equity in (earnings) losses from disposals of unconsolidated affiliates | 1,145 | — | (54,485 | ) | — | ||||||||||
Non-cash default interest expense | 1,374 | — | 1,374 | — | |||||||||||
Gain on extinguishment of debt | 6 | — | — | (256 | ) | ||||||||||
FFO allocable to Operating Partnership common unitholders, as adjusted | $ | 114,854 | $ | 111,285 | $ | 344,714 | $ | 321,901 | |||||||
FFO per diluted share | $ | 0.56 | $ | 0.56 | $ | 1.97 | $ | 1.70 | |||||||
FFO, as adjusted, per diluted share | $ | 0.57 | $ | 0.56 | $ | 1.72 | $ | 1.61 | |||||||
Weighted average common and potential dilutive common shares outstanding with Operating Partnership units fully converted | 200,004 | 199,751 | 199,992 | 199,758 | |||||||||||
(1) Litigation settlement is included in Interest and Other Income in the Consolidated Statements of Operations. Litigation expense, including settlements paid, is included in General and Administrative expense in the Consolidated Statements of Operations. Nonrecurring professional fees expense is included in General and Administrative expense in the Consolidated Statements of Operations. |
The reconciliation of diluted EPS to FFO per diluted share is as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Diluted EPS attributable to common shareholders | $ | (0.06 | ) | $ | 0.15 | $ | 0.41 | $ | 0.54 | ||||||
Eliminate amounts per share excluded from FFO: | |||||||||||||||
Depreciation and amortization expense, including amounts from consolidated properties, unconsolidated affiliates, non-real estate assets and excluding amounts allocated to noncontrolling interests | 0.40 | 0.42 | 1.21 | 1.22 | |||||||||||
Loss on impairment | 0.26 | — | 0.57 | 0.01 | |||||||||||
Gain on depreciable property, net of tax | (0.04 | ) | (0.01 | ) | (0.22 | ) | (0.07 | ) | |||||||
FFO per diluted share | $ | 0.56 | $ | 0.56 | $ | 1.97 | $ | 1.70 |
9
The reconciliations of FFO allocable to Operating Partnership common unitholders to FFO allocable to common shareholders, including and excluding the adjustments noted above, are as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
FFO allocable to Operating Partnership common unitholders | $ | 111,066 | $ | 110,960 | $ | 393,736 | $ | 340,046 | |||||||
Percentage allocable to common shareholders (1) | 85.39 | % | 85.35 | % | 85.38 | % | 85.35 | % | |||||||
FFO allocable to common shareholders | $ | 94,839 | $ | 94,704 | $ | 336,172 | $ | 290,229 | |||||||
FFO allocable to Operating Partnership common unitholders, as adjusted | $ | 114,854 | $ | 111,285 | $ | 344,714 | $ | 321,901 | |||||||
Percentage allocable to common shareholders (1) | 85.39 | % | 85.35 | % | 85.38 | % | 85.35 | % | |||||||
FFO allocable to common shareholders, as adjusted | $ | 98,074 | $ | 94,982 | $ | 294,317 | $ | 274,743 | |||||||
(1) Represents the weighted average number of common shares outstanding for the period divided by the sum of the weighted average number of common shares and the weighted average number of Operating Partnership units outstanding during the period. See the reconciliation of shares and Operating Partnership units outstanding on page 14. |
SUPPLEMENTAL FFO INFORMATION: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Lease termination fees | $ | 857 | $ | 1,346 | $ | 2,202 | $ | 4,383 | |||||||
Lease termination fees per share | $ | — | $ | 0.01 | $ | 0.01 | $ | 0.02 | |||||||
Straight-line rental income (including write-offs) | $ | (319 | ) | $ | 1,412 | $ | 1,241 | $ | 2,975 | ||||||
Straight-line rental income (including write-offs) per share | $ | — | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||
Gains on outparcel sales | $ | 4,387 | $ | 627 | $ | 8,170 | $ | 3,150 | |||||||
Gains on outparcel sales per share | $ | 0.02 | $ | — | $ | 0.04 | $ | 0.02 | |||||||
Net amortization of acquired above- and below-market leases | $ | 783 | $ | 1,043 | $ | 2,765 | $ | 1,881 | |||||||
Net amortization of acquired above- and below-market leases per share | $ | — | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||
Net amortization of debt premiums and discounts | $ | 1,162 | $ | 404 | $ | 2,000 | $ | 1,437 | |||||||
Net amortization of debt premiums and discounts per share | $ | 0.01 | $ | — | $ | 0.01 | $ | 0.01 | |||||||
Income tax benefit (provision) | $ | 2,386 | $ | (448 | ) | $ | 2,974 | $ | (2,004 | ) | |||||
Income tax benefit (provision) per share | $ | 0.01 | $ | — | $ | 0.01 | $ | (0.01 | ) | ||||||
Gain on extinguishment of debt | $ | (6 | ) | $ | — | $ | — | $ | 256 | ||||||
Gain on extinguishment of debt per share | $ | — | $ | — | $ | — | $ | — | |||||||
Gain on investment | $ | — | $ | — | $ | — | $ | 16,560 | |||||||
Gain on investment per share | $ | — | $ | — | $ | — | $ | 0.08 | |||||||
Equity in earnings (losses) from disposals of unconsolidated affiliates | $ | (1,145 | ) | $ | — | $ | 54,485 | $ | — | ||||||
Equity in earnings (losses) from disposals of unconsolidated affiliates per share | $ | (0.01 | ) | $ | — | $ | 0.27 | $ | — |
10
SUPPLEMENTAL FFO INFORMATION: | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Non-cash default interest expense | $ | (1,374 | ) | $ | — | $ | (1,374 | ) | $ | — | |||||
Non-cash default interest expense per share | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | $ | — | |||||
Abandoned projects expense | $ | (11 | ) | $ | (2,058 | ) | $ | (44 | ) | $ | (2,183 | ) | |||
Abandoned projects expense per share | $ | — | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | |||||
Interest capitalized | $ | 616 | $ | 909 | $ | 1,612 | $ | 3,141 | |||||||
Interest capitalized per share | $ | — | $ | — | $ | 0.01 | $ | 0.02 | |||||||
Litigation settlements, net of related expenses | $ | (601 | ) | $ | (325 | ) | $ | (2,308 | ) | $ | 1,329 | ||||
Litigation settlements, net of related expenses per share | $ | — | $ | — | $ | (0.01 | ) | $ | — | ||||||
Nonrecurring professional fees expense | $ | (662 | ) | $ | — | $ | (1,781 | ) | $ | — | |||||
Nonrecurring professional fees expense per share | $ | — | $ | — | $ | (0.01 | ) | $ | — |
As of September 30, | |||||||
2016 | 2015 | ||||||
Straight-line rent receivable | $ | 67,861 | $ | 66,334 |
11
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Nine Months Ended September 30, 2016
Same-center Net Operating Income
(Dollars in thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 670 | $ | 44,432 | $ | 115,659 | $ | 145,968 | |||||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 71,794 | 74,045 | 220,505 | 221,550 | |||||||||||
Depreciation and amortization from unconsolidated affiliates | 10,756 | 10,734 | 29,090 | 31,354 | |||||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (2,237 | ) | (2,154 | ) | (6,685 | ) | (6,936 | ) | |||||||
Interest expense | 54,292 | 56,451 | 162,710 | 174,362 | |||||||||||
Interest expense from unconsolidated affiliates | 6,109 | 9,601 | 19,787 | 28,873 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,769 | ) | (1,693 | ) | (5,126 | ) | (5,090 | ) | |||||||
Abandoned projects expense | 11 | 2,058 | 44 | 2,183 | |||||||||||
Gain on sales of real estate assets | (4,926 | ) | (3,237 | ) | (14,503 | ) | (18,167 | ) | |||||||
Gain on sales of real estate assets of unconsolidated affiliates | (8,018 | ) | (566 | ) | (93,340 | ) | (1,730 | ) | |||||||
Gain on investment | — | — | — | (16,560 | ) | ||||||||||
Gain on extinguishment of debt | 6 | — | — | (256 | ) | ||||||||||
Loss on impairment | 53,558 | 884 | 116,736 | 3,665 | |||||||||||
Income tax (benefit) provision | (2,386 | ) | 448 | (2,974 | ) | 2,004 | |||||||||
Lease termination fees | (857 | ) | (1,346 | ) | (2,202 | ) | (4,383 | ) | |||||||
Straight-line rent and above- and below-market lease amortization | (464 | ) | (2,455 | ) | (4,006 | ) | (4,856 | ) | |||||||
Net (income) loss attributable to noncontrolling interests in other consolidated subsidiaries | (983 | ) | (2,198 | ) | 449 | (4,557 | ) | ||||||||
General and administrative expenses | 13,222 | 12,995 | 46,865 | 46,440 | |||||||||||
Management fees and non-property level revenues | (1,379 | ) | (5,876 | ) | (12,429 | ) | (22,914 | ) | |||||||
Operating Partnership's share of property NOI | 187,399 | 192,123 | 570,580 | 570,950 | |||||||||||
Non-comparable NOI | (10,816 | ) | (19,975 | ) | (39,526 | ) | (55,557 | ) | |||||||
Total same-center NOI (1) | $ | 176,583 | $ | 172,148 | $ | 531,054 | $ | 515,393 | |||||||
Total same-center NOI percentage change | 2.6 | % | 3.0 | % | |||||||||||
Malls | $ | 161,066 | $ | 157,372 | $ | 485,111 | $ | 471,945 | |||||||
Associated centers | 8,245 | 7,807 | 24,597 | 23,357 | |||||||||||
Community centers | 5,165 | 4,772 | 15,133 | 13,766 | |||||||||||
Offices and other | 2,107 | 2,197 | 6,213 | 6,325 | |||||||||||
Total same-center NOI (1) | $ | 176,583 | $ | 172,148 | $ | 531,054 | $ | 515,393 | |||||||
Percentage Change: | |||||||||||||||
Malls | 2.3 | % | 2.8 | % | |||||||||||
Associated centers | 5.6 | % | 5.3 | % | |||||||||||
Community centers | 8.2 | % | 9.9 | % | |||||||||||
Offices and other | (4.1 | )% | (1.8 | )% | |||||||||||
Total same-center NOI (1) | 2.6 | % | 3.0 | % |
(1) | CBL defines NOI as property operating revenues (rental revenues, tenant reimbursements and other income), less property operating expenses (property operating, real estate taxes and maintenance and repairs). Same-center NOI excludes lease termination income, straight-line rent adjustments, amortization of above and below market lease intangibles and write-offs of landlord inducement assets. Same-center NOI is for real estate properties and does not include the results of operations of the Company's subsidiary that provides janitorial, security and maintenance services. We include a property in our same-center pool when we own all or a portion of the property as of September 30, 2016, and we owned it and it was in operation for both the entire preceding calendar year and the current year-to-date reporting period ending September 30, 2016. New properties are excluded from same-center NOI, until they meet this criteria. The only properties excluded from the same-center pool that would otherwise meet this criteria are properties which are either under major redevelopment, being considered for repositioning, minority interest properties in which we own an interest of 25% or less, or where we intend to renegotiate the terms of the debt secured by the related property. |
12
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of September 30, 2016 and 2015
Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
As of September 30, 2016 | |||||||||||||||||||
Fixed Rate | Variable Rate | Total per Debt Schedule | Unamortized Deferred Financing Costs | Total | |||||||||||||||
Consolidated debt | $ | 3,251,443 | $ | 1,294,531 | $ | 4,545,974 | $ | (14,705 | ) | $ | 4,531,269 | ||||||||
Noncontrolling interests' share of consolidated debt | (109,701 | ) | (7,537 | ) | (117,238 | ) | 1,015 | (116,223 | ) | ||||||||||
Company's share of unconsolidated affiliates' debt | 523,833 | 73,562 | 597,395 | (2,286 | ) | 595,109 | |||||||||||||
Company's share of consolidated and unconsolidated debt | $ | 3,665,575 | $ | 1,360,556 | $ | 5,026,131 | $ | (15,976 | ) | $ | 5,010,155 | ||||||||
Weighted average interest rate | 5.30 | % | 1.96 | % | 4.39 | % | |||||||||||||
As of September 30, 2015 | |||||||||||||||||||
Fixed Rate | Variable Rate | Total per Debt Schedule | Unamortized Deferred Financing Costs | Total | |||||||||||||||
Consolidated debt | $ | 3,502,337 | $ | 1,319,138 | $ | 4,821,475 | $ | (14,768 | ) | $ | 4,806,707 | ||||||||
Noncontrolling interests' share of consolidated debt | (112,554 | ) | (7,007 | ) | (119,561 | ) | 787 | (118,774 | ) | ||||||||||
Company's share of unconsolidated affiliates' debt | 665,912 | 118,033 | 783,945 | (1,442 | ) | 782,503 | |||||||||||||
Company's share of consolidated and unconsolidated debt | $ | 4,055,695 | $ | 1,430,164 | $ | 5,485,859 | $ | (15,423 | ) | $ | 5,470,436 | ||||||||
Weighted average interest rate | 5.48 | % | 1.70 | % | 4.49 | % |
Debt-To-Total-Market Capitalization Ratio as of September 30, 2016
(In thousands, except stock price)
Shares Outstanding | Stock Price (1) | Value | ||||||||
Common stock and Operating Partnership units | 199,083 | $ | 12.14 | $ | 2,416,868 | |||||
7.375% Series D Cumulative Redeemable Preferred Stock | 1,815 | 250.00 | 453,750 | |||||||
6.625% Series E Cumulative Redeemable Preferred Stock | 690 | 250.00 | 172,500 | |||||||
Total market equity | 3,043,118 | |||||||||
Company's share of total debt, excluding unamortized deferred financing costs | 5,026,131 | |||||||||
Total market capitalization | $ | 8,069,249 | ||||||||
Debt-to-total-market capitalization ratio | 62.3 | % |
(1) | Stock price for common stock and Operating Partnership units equals the closing price of the common stock on September 30, 2016. The stock prices for the preferred stocks represent the liquidation preference of each respective series. |
13
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of September 30, 2016 and 2015
Reconciliation of Shares and Operating Partnership Units Outstanding
(In thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2016: | Basic | Diluted | Basic | Diluted | |||||||
Weighted average shares - EPS | 170,792 | 170,792 | 170,751 | 170,751 | |||||||
Weighted average Operating Partnership units | 29,212 | 29,212 | 29,241 | 29,241 | |||||||
Weighted average shares- FFO | 200,004 | 200,004 | 199,992 | 199,992 | |||||||
2015: | |||||||||||
Weighted average shares - EPS | 170,494 | 170,494 | 170,470 | 170,500 | |||||||
Weighted average Operating Partnership units | 29,257 | 29,257 | 29,258 | 29,258 | |||||||
Weighted average shares- FFO | 199,751 | 199,751 | 199,728 | 199,758 |
Dividend Payout Ratio
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Weighted average cash dividend per share | $ | 0.27282 | $ | 0.27279 | $ | 0.81838 | $ | 0.81837 | |||||||
FFO, as adjusted, per diluted fully converted share | $ | 0.57 | $ | 0.56 | $ | 1.72 | $ | 1.61 | |||||||
Dividend payout ratio | 47.9 | % | 48.7 | % | 47.6 | % | 50.8 | % |
14
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of September 30, 2016
Consolidated Balance Sheets (Unaudited; in thousands, except share data) | |||||||
As of | |||||||
September 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Real estate assets: | |||||||
Land | $ | 839,114 | $ | 876,668 | |||
Buildings and improvements | 6,906,736 | 7,287,862 | |||||
7,745,850 | 8,164,530 | ||||||
Accumulated depreciation | (2,370,768 | ) | (2,382,568 | ) | |||
5,375,082 | 5,781,962 | ||||||
Held for sale | 32,250 | — | |||||
Developments in progress | 141,099 | 75,991 | |||||
Net investment in real estate assets | 5,548,431 | 5,857,953 | |||||
Cash and cash equivalents | 24,468 | 36,892 | |||||
Receivables: | |||||||
Tenant, net of allowance for doubtful accounts of $1,993 and $1,923 in 2016 and 2015, respectively | 95,518 | 87,286 | |||||
Other, net of allowance for doubtful accounts of $1,332 and $1,276 in 2016 and 2015, respectively | 14,109 | 17,958 | |||||
Mortgage and other notes receivable | 13,581 | 18,238 | |||||
Investments in unconsolidated affiliates | 287,791 | 276,383 | |||||
Intangible lease assets and other assets | 190,423 | 185,281 | |||||
$ | 6,174,321 | $ | 6,479,991 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Mortgage and other indebtedness | $ | 4,531,269 | $ | 4,710,628 | |||
Accounts payable and accrued liabilities | 303,642 | 344,434 | |||||
Total liabilities | 4,834,911 | 5,055,062 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling partnership interests | 22,742 | 25,330 | |||||
Shareholders' equity: | |||||||
Preferred stock, $.01 par value, 15,000,000 shares authorized: | |||||||
7.375% Series D Cumulative Redeemable Preferred Stock, 1,815,000 shares outstanding | 18 | 18 | |||||
6.625% Series E Cumulative Redeemable Preferred Stock, 690,000 shares outstanding | 7 | 7 | |||||
Common stock, $.01 par value, 350,000,000 shares authorized, 170,790,979 and 170,490,948 issued and outstanding in 2016 and 2015, respectively | 1,708 | 1,705 | |||||
Additional paid-in capital | 1,959,007 | 1,970,333 | |||||
Accumulated other comprehensive income | — | 1,935 | |||||
Dividends in excess of cumulative earnings | (754,425 | ) | (689,028 | ) | |||
Total shareholders' equity | 1,206,315 | 1,284,970 | |||||
Noncontrolling interests | 110,353 | 114,629 | |||||
Total equity | 1,316,668 | 1,399,599 | |||||
$ | 6,174,321 | $ | 6,479,991 |
15
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of September 30, 2016
Condensed Combined Financial Statements - Unconsolidated Affiliates
(Unaudited; in thousands)
As of | |||||||
September 30, 2016 | December 31, 2015 | ||||||
ASSETS: | |||||||
Investment in real estate assets | $ | 2,137,092 | $ | 2,357,902 | |||
Accumulated depreciation | (550,103 | ) | (677,448 | ) | |||
1,586,989 | 1,680,454 | ||||||
Held for sale | 25,392 | — | |||||
Developments in progress | 28,995 | 59,592 | |||||
Net investment in real estate assets | 1,641,376 | 1,740,046 | |||||
Other assets | 229,516 | 168,540 | |||||
Total assets | $ | 1,870,892 | $ | 1,908,586 | |||
LIABILITIES: | |||||||
Mortgage and other indebtedness | $ | 1,278,160 | $ | 1,546,272 | |||
Other liabilities | 60,687 | 51,357 | |||||
Total liabilities | 1,338,847 | 1,597,629 | |||||
OWNERS' EQUITY: | |||||||
The Company | 241,892 | 184,868 | |||||
Other investors | 290,153 | 126,089 | |||||
Total owners' equity | 532,045 | 310,957 | |||||
Total liabilities and owners’ equity | $ | 1,870,892 | $ | 1,908,586 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Total revenues | $ | 59,104 | $ | 62,098 | $ | 186,162 | $ | 187,681 | |||||||
Depreciation and amortization | (20,227 | ) | (20,313 | ) | (63,085 | ) | (59,435 | ) | |||||||
Operating expenses | (18,216 | ) | (18,918 | ) | (56,621 | ) | (55,692 | ) | |||||||
Income from operations | 20,661 | 22,867 | 66,456 | 72,554 | |||||||||||
Interest income | 295 | 331 | 963 | 998 | |||||||||||
Interest expense | (14,281 | ) | (18,616 | ) | (41,951 | ) | (55,999 | ) | |||||||
Gain (loss) on extinguishment of debt | (393 | ) | — | 62,901 | — | ||||||||||
Gain on sales of real estate assets | 16,854 | 710 | 158,190 | 2,144 | |||||||||||
Net income | $ | 23,136 | $ | 5,292 | $ | 246,559 | $ | 19,697 |
Company's Share for the Three Months Ended September 30, | Company's Share for the Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Total revenues | $ | 27,427 | $ | 32,660 | $ | 87,527 | $ | 98,453 | |||||||
Depreciation and amortization | (10,756 | ) | (10,734 | ) | (29,090 | ) | (31,354 | ) | |||||||
Operating expenses | (8,112 | ) | (9,638 | ) | (25,295 | ) | (28,511 | ) | |||||||
Income from operations | 8,559 | 12,288 | 33,142 | 38,588 | |||||||||||
Interest income | 207 | 255 | 719 | 767 | |||||||||||
Interest expense | (6,109 | ) | (9,601 | ) | (19,787 | ) | (28,873 | ) | |||||||
Loss on extinguishment of debt | (197 | ) | — | (197 | ) | — | |||||||||
Gain on sales of real estate assets | 8,018 | 566 | 93,340 | 1,730 | |||||||||||
Net income | $ | 10,478 | $ | 3,508 | $ | 107,217 | $ | 12,212 |
16
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Nine Months Ended September 30, 2016
The Company presents the ratio of earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted (Adjusted EBITDA), to interest because the Company believes that the Adjusted EBITDA to interest coverage ratio, along with cash flows from operating activities, investing activities and financing activities, provides investors an additional indicator of the Company's ability to incur and service debt. Adjusted EBITDA excludes items that are not a normal result of operations, such as gain (loss) on investment, gain (loss) on extinguishment of debt, loss on impairment, abandoned projects expense and gains from dispositions, which assists the Company and investors in distinguishing changes related to the growth or decline of operations at our properties. EBITDA and Adjusted EBITDA, as presented, may not be comparable to similar measures calculated by other companies. This non-GAAP measure should not be considered as an alternative to net income, cash from operating activities or any other measure calculated in accordance with GAAP. Pro rata amounts listed below are calculated using the Company's ownership percentage in the respective joint venture and any other applicable terms.
Ratio of Adjusted EBITDA to Interest Expense
(Dollars in thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Adjusted EBITDA: | |||||||||||||||
Net income | $ | 670 | $ | 44,432 | $ | 115,659 | $ | 145,968 | |||||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 71,794 | 74,045 | 220,505 | 221,550 | |||||||||||
Depreciation and amortization from unconsolidated affiliates | 10,756 | 10,734 | 29,090 | 31,354 | |||||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (2,237 | ) | (2,154 | ) | (6,685 | ) | (6,936 | ) | |||||||
Interest expense | 54,292 | 56,451 | 162,710 | 174,362 | |||||||||||
Interest expense from unconsolidated affiliates | 6,109 | 9,601 | 19,787 | 28,873 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,769 | ) | (1,693 | ) | (5,126 | ) | (5,090 | ) | |||||||
Income and other taxes | (1,813 | ) | 666 | (1,070 | ) | 3,216 | |||||||||
Gain on investment | — | — | — | (16,560 | ) | ||||||||||
Equity in (earnings) losses from disposals of unconsolidated affiliates | 1,846 | — | (53,784 | ) | — | ||||||||||
Gain on extinguishment of debt | 6 | — | — | (256 | ) | ||||||||||
Loss on impairment | 53,558 | 884 | 116,736 | 3,665 | |||||||||||
Abandoned projects | 11 | 2,058 | 44 | 2,183 | |||||||||||
Net (income) loss attributable to noncontrolling interests in other consolidated subsidiaries | (983 | ) | (2,198 | ) | 449 | (4,557 | ) | ||||||||
Gain on depreciable property | (8,685 | ) | (2,783 | ) | (44,206 | ) | (16,253 | ) | |||||||
Company's share of total Adjusted EBITDA | $ | 183,555 | $ | 190,043 | $ | 554,109 | $ | 561,519 | |||||||
Interest Expense: | |||||||||||||||
Interest expense | $ | 54,292 | $ | 56,451 | $ | 162,710 | $ | 174,362 | |||||||
Interest expense from unconsolidated affiliates | 6,109 | 9,601 | 19,787 | 28,873 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,769 | ) | (1,693 | ) | (5,126 | ) | (5,090 | ) | |||||||
Company's share of total interest expense | $ | 58,632 | $ | 64,359 | $ | 177,371 | $ | 198,145 | |||||||
Ratio of Adjusted EBITDA to Interest Expense | 3.1 | x | 3.0 | x | 3.1 | x | 2.8 | x |
17
Reconciliation of Adjusted EBITDA to Cash Flows Provided By Operating Activities (In thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Company's share of total Adjusted EBITDA | $ | 183,555 | $ | 190,043 | $ | 554,109 | $ | 561,519 | |||||||
Interest expense | (54,292 | ) | (56,451 | ) | (162,710 | ) | (174,362 | ) | |||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | 1,769 | 1,693 | 5,126 | 5,090 | |||||||||||
Income and other taxes | 1,813 | (666 | ) | 1,070 | (3,216 | ) | |||||||||
Net amortization of deferred financing costs and debt premiums and discounts | 537 | 1,120 | 2,019 | 3,745 | |||||||||||
Net amortization of intangible lease assets and liabilities | 84 | (646 | ) | (204 | ) | (613 | ) | ||||||||
Depreciation and interest expense from unconsolidated affiliates | (16,865 | ) | (20,335 | ) | (48,877 | ) | (60,227 | ) | |||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | 2,237 | 2,154 | 6,685 | 6,936 | |||||||||||
Net income (loss) attributable to noncontrolling interests in other consolidated subsidiaries | 983 | 2,198 | (449 | ) | 4,557 | ||||||||||
Gains on outparcel sales | (6,808 | ) | (454 | ) | (10,302 | ) | (1,914 | ) | |||||||
Equity in earnings of unconsolidated affiliates | (1,757 | ) | (3,508 | ) | (13,428 | ) | (12,212 | ) | |||||||
Distributions of earnings from unconsolidated affiliates | 3,755 | 5,917 | 12,337 | 15,697 | |||||||||||
Share-based compensation expense | 1,160 | 917 | 4,011 | 4,323 | |||||||||||
Provision for doubtful accounts | 1,154 | (275 | ) | 3,377 | 1,663 | ||||||||||
Change in deferred tax assets | (1,460 | ) | (212 | ) | (1,780 | ) | (59 | ) | |||||||
Changes in operating assets and liabilities | 9,599 | 18,994 | (11,359 | ) | 8,955 | ||||||||||
Cash flows provided by operating activities | $ | 125,464 | $ | 140,489 | $ | 339,625 | $ | 359,882 |
18
Supplemental Financial And Operating Information
As of September 30, 2016
Schedule of Mortgage and Other Indebtedness
(Dollars in thousands )
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | ||||||||||||||
Operating Properties: | |||||||||||||||
Greenbrier Mall | Chesapeake, VA | Aug-16 | 5.91% | $ | 70,801 | $ | 70,801 | $ | — | ||||||
Midland Mall | Midland, MI | Aug-16 | 6.10% | 31,953 | 31,953 | — | |||||||||
Chesterfield Mall | Chesterfield, MO | Sep-16 | 5.74% | 140,000 | 140,000 | — | |||||||||
Southaven Towne Center | Southaven, MS | Jan-17 | 5.50% | 38,314 | 38,314 | — | |||||||||
Cary Towne Center | Cary, NC | Mar-17 | 8.50% | 46,472 | 46,472 | — | |||||||||
Acadiana Mall | Lafayette, LA | Apr-17 | 5.67% | 126,648 | 126,648 | — | |||||||||
Hamilton Corner | Chattanooga, TN | Apr-17 | 5.67% | 14,351 | 14,351 | — | |||||||||
Layton Hills Mall | Layton, UT | Apr-17 | 5.66% | 90,506 | 90,506 | — | |||||||||
The Plaza at Fayette Mall | Lexington, KY | Apr-17 | 5.67% | 37,388 | 37,388 | — | |||||||||
The Shoppes at St. Clair Square | Fairview Heights, IL | Apr-17 | 5.67% | 18,949 | 18,949 | — | |||||||||
The Outlet Shoppes at Atlanta - Ridgewalk | Woodstock, GA | Jun-17 | 5.02% | 2,526 | — | 2,526 | |||||||||
Statesboro Crossing | Statesboro, GA | Jun-17 | Jun-18 | 2.32% | 10,993 | — | 10,993 | ||||||||
The Outlet Shoppes at El Paso | El Paso, TX | Dec-17 | 7.06% | 62,644 | 62,644 | — | |||||||||
Kirkwood Mall | Bismarck, ND | Apr-18 | 5.75% | 38,152 | 38,152 | — | |||||||||
The Outlet Shoppes at El Paso - Phase II | El Paso, TX | Apr-18 | 3.27% | 6,778 | — | 6,778 | |||||||||
Hanes Mall | Winston-Salem, NC | Oct-18 | 6.99% | 146,974 | 146,974 | — | |||||||||
Hickory Point Mall | Forsyth, IL | Dec-18 | Dec-19 | 5.85% | 27,446 | 27,446 | — | ||||||||
The Outlet Shoppes at Oklahoma City - Phase II | Oklahoma City, OK | Apr-19 | Apr-21 | 3.27% | 5,636 | — | 5,636 | ||||||||
The Outlet Shoppes at Oklahoma City - Phase III | Oklahoma City, OK | Apr-19 | Apr-21 | 3.27% | 2,774 | — | 2,774 | ||||||||
Honey Creek Mall | Terre Haute, IN | Jul-19 | 8.00% | 27,007 | 27,007 | — | |||||||||
Volusia Mall | Daytona Beach, FL | Jul-19 | 8.00% | 46,459 | 46,459 | — | |||||||||
The Outlet Shoppes at Atlanta - Parcel Development | Woodstock, GA | Dec-19 | 3.02% | 2,131 | — | 2,131 | |||||||||
The Outlet Shoppes at Atlanta - Phase II | Woodstock, GA | Dec-19 | 3.02% | 4,063 | — | 4,063 | |||||||||
The Terrace | Chattanooga, TN | Jun-20 | 7.25% | 13,140 | 13,140 | — | |||||||||
Burnsville Center | Burnsville, MN | Jul-20 | 6.00% | 72,307 | 72,307 | — | |||||||||
The Outlet Shoppes of the Bluegrass - Phase II | Simpsonville, KY | Jul-20 | 3.02% | 10,101 | — | 10,101 | |||||||||
Parkway Place | Huntsville, AL | Jul-20 | 6.50% | 36,911 | 36,911 | — | |||||||||
Valley View Mall | Roanoke, VA | Jul-20 | 6.50% | 57,125 | 57,125 | — | |||||||||
Parkdale Mall & Crossing | Beaumont, TX | Mar-21 | 5.85% | 84,110 | 84,110 | — | |||||||||
EastGate Mall | Cincinnati, OH | Apr-21 | 5.83% | 37,481 | 37,481 | — | |||||||||
Hamilton Crossing & Expansion | Chattanooga, TN | Apr-21 | 5.99% | 9,432 | 9,432 | — | |||||||||
Park Plaza Mall | Little Rock, AR | Apr-21 | 5.28% | 87,379 | 87,379 | — | |||||||||
Wausau Center | Wausau, WI | Apr-21 | 5.85% | 17,689 | 17,689 | — | |||||||||
Fayette Mall | Lexington, KY | May-21 | 5.42% | 163,412 | 163,412 | — | |||||||||
Alamance Crossing - East | Burlington, NC | Jul-21 | 5.83% | 47,360 | 47,360 | — | |||||||||
Asheville Mall | Asheville, NC | Sep-21 | 5.80% | 70,164 | 70,164 | — | |||||||||
Cross Creek Mall | Fayetteville, NC | Jan-22 | 4.54% | 124,334 | 124,334 | — | |||||||||
The Outlet Shoppes at Oklahoma City | Oklahoma City, OK | Jan-22 | 5.73% | 54,222 | 54,222 | — | |||||||||
Northwoods Mall | North Charleston, SC | Apr-22 | 5.08% | 68,140 | 68,140 | — | |||||||||
Arbor Place | Atlanta (Douglasville), GA | May-22 | 5.10% | 114,093 | 114,093 | — | |||||||||
CBL Center | Chattanooga, TN | Jun-22 | 5.00% | 19,341 | 19,341 | — |
19
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | ||||||||||||||
Jefferson Mall | Louisville, KY | Jun-22 | 4.75% | 66,370 | 66,370 | — | |||||||||
Southpark Mall | Colonial Heights, VA | Jun-22 | 4.85% | 62,541 | 62,541 | — | |||||||||
WestGate Mall | Spartanburg, SC | Jul-22 | 4.99% | 36,270 | 36,270 | — | |||||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | Nov-23 | 4.90% | 76,437 | 76,437 | — | |||||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | Dec-24 | 4.05% | 75,094 | 75,094 | — | |||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | Oct-25 | 4.80% | 38,450 | 38,450 | — | |||||||||
Hamilton Place | Chattanooga, TN | Jun-26 | 4.36% | 106,565 | 106,565 | — | |||||||||
SUBTOTAL | 2,547,433 | 2,502,431 | 45,002 | ||||||||||||
Weighted-average interest rate | 5.61 | % | 5.66 | % | 3.05 | % | |||||||||
Debt Premiums : (1) | 2,624 | 2,624 | — | ||||||||||||
Weighted-average interest rate | 4.57 | % | 4.57 | % | |||||||||||
Total Loans On Operating Properties And Debt Premiums | 2,550,057 | 2,505,055 | 45,002 | ||||||||||||
Weighted-average interest rate | 5.61 | % | 5.66 | % | 3.05 | % | |||||||||
Construction Loan: | |||||||||||||||
The Outlet Shoppes at Laredo | Laredo, TX | May-19 | May-21 | 3.03% | 10,573 | — | 10,573 | ||||||||
Operating Partnership Debt: | |||||||||||||||
Unsecured credit facilities: | |||||||||||||||
$500,000 capacity | Oct-19 | Oct-20 | 1.72% | — | — | — | |||||||||
$100,000 capacity | Oct-19 | Oct-20 | 1.72% | 38,200 | — | 38,200 | |||||||||
$500,000 capacity | Oct-20 | 1.72% | 400,756 | — | 400,756 | ||||||||||
SUBTOTAL | 438,956 | — | 438,956 | ||||||||||||
Unsecured term loans: | |||||||||||||||
$350,000 Term Loan | Oct-17 | Oct-19 | 1.88% | 350,000 | — | 350,000 | |||||||||
$50,000 Term Loan | Feb-18 | 2.07% | 50,000 | — | 50,000 | ||||||||||
$400,000 Term Loan | Jul-18 | 2.02% | 400,000 | — | 400,000 | ||||||||||
SUBTOTAL | 800,000 | — | 800,000 | ||||||||||||
Senior unsecured notes: | |||||||||||||||
Senior unsecured 5.25% notes | Dec-23 | 5.25% | 450,000 | 450,000 | — | ||||||||||
Senior unsecured 5.25% notes (discount) | Dec-23 | 5.25% | (3,550 | ) | (3,550 | ) | — | ||||||||
Senior unsecured 4.60% notes | Oct-24 | 4.60% | 300,000 | 300,000 | — | ||||||||||
Senior unsecured 4.60% notes (discount) | Oct-24 | 4.60% | (62 | ) | (62 | ) | — | ||||||||
SUBTOTAL | 746,388 | 746,388 | — | ||||||||||||
Total Consolidated Debt | $ | 4,545,974 | (2) | $ | 3,251,443 | $ | 1,294,531 | ||||||||
Weighted-average interest rate | 4.49 | % | 5.50 | % | 1.93 | % | |||||||||
Plus CBL's Share Of Unconsolidated Affiliates' Debt: | |||||||||||||||
The Shops at Friendly Center | Greensboro, NC | Jan-17 | 5.90% | $ | 18,942 | $ | 18,942 | $ | — | ||||||
Gulf Coast Town Center - Phase III | Ft. Myers, FL | Jul-17 | 2.63% | 2,309 | — | 2,309 | |||||||||
Ambassador Town Center Infrastructure Improvements | Lafayette, LA | Dec-17 | Dec-19 | 2.52% | 11,700 | — | 11,700 | ||||||||
Hammock Landing - Phase I | West Melbourne, FL | Feb-18 | Feb-19 | 2.52% | 21,498 | — | 21,498 | ||||||||
Hammock Landing - Phase II | West Melbourne, FL | Feb-18 | Feb-19 | 2.52% | 8,309 | — | 8,309 |
20
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | ||||||||||||||
The Pavilion at Port Orange | Port Orange, FL | Feb-18 | Feb-19 | 2.52% | 29,069 | — | 29,069 | ||||||||
CoolSprings Galleria | Nashville, TN | Jun-18 | 6.98% | 50,837 | 50,837 | — | |||||||||
Triangle Town Center | Raleigh, NC | Dec-18 | Dec-20 | 4.00% | 17,060 | 17,060 | — | ||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 17,030 | 17,030 | — | |||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 3.27% | 677 | — | 677 | |||||||||
West County Center | St. Louis, MO | Dec-22 | 3.40% | 93,660 | 93,660 | — | |||||||||
Friendly Shopping Center | Greensboro, NC | Apr-23 | 3.48% | 49,603 | 49,603 | — | |||||||||
Ambassador Town Center | Lafayette, LA | Jun-23 | 3.22% | 30,859 | (3) | 30,859 | — | ||||||||
Coastal Grand Outparcel | Myrtle Beach, SC | Aug-24 | 4.09% | 2,793 | 2,793 | — | |||||||||
Coastal Grand | Myrtle Beach, SC | Aug-24 | 4.09% | 57,879 | 57,879 | — | |||||||||
Oak Park Mall | Overland Park, KS | Oct-25 | 3.97% | 138,000 | 138,000 | — | |||||||||
Fremaux Town Center - Phase I | Slidell, LA | Jun-26 | 1.55% | 47,170 | (4) | 47,170 | — | ||||||||
SUBTOTAL | 597,395 | (2) | 523,833 | 73,562 | |||||||||||
Less Noncontrolling Interests' Share Of Consolidated Debt: | Noncontrolling Interest % | ||||||||||||||
Hamilton Corner | Chattanooga, TN | 10% | 5.67% | (1,435 | ) | (1,435 | ) | — | |||||||
The Outlet Shoppes at Atlanta - Ridgewalk | Woodstock, GA | 25% | 5.02% | (632 | ) | — | (632 | ) | |||||||
Statesboro Crossing | Statesboro, GA | 50% | 2.32% | (5,496 | ) | — | (5,496 | ) | |||||||
The Outlet Shoppes at El Paso | El Paso, TX | 25% | 7.06% | (15,661 | ) | (15,661 | ) | — | |||||||
The Outlet Shoppes at Oklahoma City - Phase II | Oklahoma City, OK | 25% | 3.27% | (1,409 | ) | — | (1,409 | ) | |||||||
The Terrace | Chattanooga, TN | 8% | 7.25% | (1,051 | ) | (1,051 | ) | — | |||||||
Hamilton Crossing & Expansion | Chattanooga, TN | 8% | 5.99% | (755 | ) | (755 | ) | — | |||||||
The Outlet Shoppes at Oklahoma City | Oklahoma City, OK | 25% | 5.73% | (13,556 | ) | (13,556 | ) | — | |||||||
CBL Center | Chattanooga, TN | 8% | 5.00% | (1,547 | ) | (1,547 | ) | — | |||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | 25% | 4.90% | (19,109 | ) | (19,109 | ) | — | |||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | 35% | 4.05% | (26,283 | ) | (26,283 | ) | — | |||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | 50% | 4.80% | (19,225 | ) | (19,225 | ) | — | |||||||
Hamilton Place | Chattanooga, TN | 10% | 4.36% | (10,656 | ) | (10,656 | ) | — | |||||||
(116,815 | ) | (109,278 | ) | (7,537 | ) | ||||||||||
Less Noncontrolling Interests' Share Of Debt Premiums: (1) | |||||||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 25% | 4.75% | (423 | ) | (423 | ) | — | |||||||
SUBTOTAL | (117,238 | ) | (2) | (109,701 | ) | (7,537 | ) | ||||||||
Company's Share Of Consolidated And Unconsolidated Debt | $ | 5,026,131 | (2) | $ | 3,665,575 | $ | 1,360,556 | ||||||||
Weighted-average interest rate | 4.39 | % | 5.30 | % | 1.96 | % | |||||||||
Total Debt of Unconsolidated Affiliates: | |||||||||||||||
The Shops at Friendly Center | Greensboro, NC | Jan-17 | 5.90% | $ | 37,883 | $ | 37,883 | $ | — | ||||||
Gulf Coast Town Center - Phase III | Ft. Myers, FL | Jul-17 | 2.63% | 4,617 | — | 4,617 | |||||||||
Ambassador Town Center Infrastructure Improvements | Lafayette, LA | Dec-17 | Dec-19 | 2.52% | 11,700 | — | 11,700 | ||||||||
Hammock Landing Phase I | West Melbourne, FL | Feb-18 | Feb-19 | 2.52% | 42,997 | — | 42,997 | ||||||||
Hammock Landing Phase II | West Melbourne, FL | Feb-18 | Feb-19 | 2.52% | 16,617 | — | 16,617 | ||||||||
The Pavilion at Port Orange | Port Orange, FL | Feb-18 | Feb-19 | 2.52% | 58,138 | — | 58,138 | ||||||||
CoolSprings Galleria | Nashville, TN | Jun-18 | 6.98% | 101,675 | 101,675 | — | |||||||||
Triangle Town Center | Raleigh, NC | Dec-18 | Dec-20 | 4.00% | 170,600 | 170,600 | — |
21
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | ||||||||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 34,061 | 34,061 | — | |||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 3.27% | 1,354 | — | 1,354 | |||||||||
West County Center | St. Louis, MO | Dec-22 | 3.40% | 187,320 | 187,320 | — | |||||||||
Friendly Shopping Center | Greensboro, NC | Apr-23 | 3.48% | 99,206 | 99,206 | — | |||||||||
Ambassador Town Center | Lafayette, LA | Jun-23 | 3.22% | 47,476 | (3) | 47,476 | — | ||||||||
Coastal Grand Outparcel | Myrtle Beach, SC | Aug-24 | 4.09% | 5,586 | 5,586 | — | |||||||||
Coastal Grand | Myrtle Beach, SC | Aug-24 | 4.09% | 115,758 | 115,758 | — | |||||||||
Oak Park Mall | Overland Park, KS | Oct-25 | 3.97% | 276,000 | 276,000 | — | |||||||||
Fremaux Town Center | Slidell, LA | Jun-26 | 1.55% | 72,569 | (4) | 72,569 | — | ||||||||
$ | 1,283,557 | $ | 1,148,134 | $ | 135,423 | ||||||||||
Weighted-average interest rate | 3.87 | % | 4.03 | % | 2.53 | % |
(1) | The weighted average interest rates used for debt premiums reflects the market interest rate in effect as of the assumption of the related debt. |
(2) | See page 13 for unamortized deferred financing costs. |
(3) | The joint venture has an interest rate swap on a notional amount of $47,476, amortizing to $38,866 over the term of the swap, related to Ambassador Town Center to effectively fix the interest rate on that variable-rate loan. Therefore, this amount is currently reflected as having a fixed rate. |
(4) | The joint venture has an interest rate swap on a notional amount of $72,569, amortizing to $52,130 over the term of the swap, related to Fremaux Town Center to effectively fix the interest rate on that variable-rate loan. Therefore, this amount is currently reflected as having a fixed rate. |
22
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of September 30, 2016
Schedule of Maturities of Mortgage and Other Indebtedness
(Dollars in thousands)
Based on Maturity Dates As Though All Extension Options Available Have Been Exercised:
Year | Consolidated Debt | CBL's Share of Unconsolidated Affiliates' Debt | Noncontrolling Interests' Share of Consolidated Debt | CBL's Share of Consolidated and Unconsolidated Debt | % of Total | Weighted Average Interest Rate | ||||||||||||||||
2016 | $ | 242,754 | $ | — | $ | — | $ | 242,754 | 4.83 | % | 5.84 | % | ||||||||||
2017 | 437,798 | 21,251 | (17,728 | ) | 441,321 | 8.78 | % | 6.08 | % | |||||||||||||
2018 | 652,897 | 50,837 | (5,496 | ) | 698,238 | 13.89 | % | 3.65 | % | |||||||||||||
2019 | 457,106 | 70,576 | — | 527,682 | 10.50 | % | 3.04 | % | ||||||||||||||
2020 | 628,540 | 17,060 | (1,051 | ) | 644,549 | 12.82 | % | 3.08 | % | |||||||||||||
2021 | 536,010 | — | (2,164 | ) | 533,846 | 10.62 | % | 5.53 | % | |||||||||||||
2022 | 545,311 | 111,367 | (15,103 | ) | 641,575 | 12.76 | % | 4.70 | % | |||||||||||||
2023 | 526,437 | 80,462 | (19,109 | ) | 587,790 | 11.69 | % | 4.96 | % | |||||||||||||
2024 | 375,094 | 60,672 | (26,283 | ) | 409,483 | 8.15 | % | 4.46 | % | |||||||||||||
2025 | 38,450 | 138,000 | (19,225 | ) | 157,225 | 3.13 | % | 4.07 | % | |||||||||||||
2026 | 106,565 | 47,170 | (10,656 | ) | 143,079 | 2.85 | % | 3.43 | % | |||||||||||||
Face Amount of Debt | 4,546,962 | 597,395 | (116,815 | ) | 5,027,542 | 100.03 | % | 4.39 | % | |||||||||||||
Net Premiums (Discounts) | (988 | ) | — | (423 | ) | (1,411 | ) | (0.03 | )% | — | % | |||||||||||
Total | $ | 4,545,974 | $ | 597,395 | $ | (117,238 | ) | $ | 5,026,131 | 100.00 | % | 4.39 | % |
Based on Original Maturity Dates:
Year | Consolidated Debt | CBL's Share of Unconsolidated Affiliates' Debt | Noncontrolling Interests' Share of Consolidated Debt | CBL's Share of Consolidated and Unconsolidated Debt | % of Total | Weighted Average Interest Rate | ||||||||||||||||
2016 | $ | 242,754 | $ | — | $ | — | $ | 242,754 | 4.83 | % | 5.84 | % | ||||||||||
2017 | 798,791 | 32,951 | (23,224 | ) | 808,518 | 16.09 | % | 4.19 | % | |||||||||||||
2018 | 669,350 | 126,773 | — | 796,123 | 15.84 | % | 3.66 | % | ||||||||||||||
2019 | 136,843 | — | (1,409 | ) | 135,434 | 2.69 | % | 5.37 | % | |||||||||||||
2020 | 590,340 | — | (1,051 | ) | 589,289 | 11.72 | % | 3.15 | % | |||||||||||||
2021 | 517,027 | — | (755 | ) | 516,272 | 10.27 | % | 5.61 | % | |||||||||||||
2022 | 545,311 | 111,367 | (15,103 | ) | 641,575 | 12.76 | % | 4.70 | % | |||||||||||||
2023 | 526,437 | 80,462 | (19,109 | ) | 587,790 | 11.69 | % | 4.96 | % | |||||||||||||
2024 | 375,094 | 60,672 | (26,283 | ) | 409,483 | 8.15 | % | 4.46 | % | |||||||||||||
2025 | 38,450 | 138,000 | (19,225 | ) | 157,225 | 3.13 | % | 4.07 | % | |||||||||||||
2026 | 106,565 | 47,170 | (10,656 | ) | 143,079 | 2.85 | % | 3.43 | % | |||||||||||||
Face Amount of Debt | 4,546,962 | 597,395 | (116,815 | ) | 5,027,542 | 100.03 | % | 4.39 | % | |||||||||||||
Net Premiums (Discounts) | (988 | ) | — | (423 | ) | (1,411 | ) | (0.03 | )% | — | % | |||||||||||
Total | $ | 4,545,974 | $ | 597,395 | $ | (117,238 | ) | $ | 5,026,131 | 100.00 | % | 4.39 | % |
Unsecured Debt Covenant Compliance Ratios | Required | Actual | ||
Debt to total asset value | < 60% | 49% | ||
Unencumbered asset value to unsecured indebtedness | > 1.6x | 2.4x | ||
Unencumbered NOI to unsecured interest expense | > 1.75x | 4.6x | ||
EBITDA to fixed charges (debt service) | > 1.5x | 2.5x |
Senior Unsecured Notes Compliance Ratios | Required | Actual | ||
Total debt to total assets | < 60% | 53% | ||
Secured debt to total assets | < 45% | 30% | ||
Total unencumbered assets to unsecured debt | > 150% | 217% | ||
Consolidated income available for debt service to annual debt service charge | > 1.5x | 3.3x |
23
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Nine Months Ended September 30, 2016
Mall Portfolio Statistics
TIER 1 Sales ≥ $375 per square foot | |||||||||||||||||||||
Property | Location | Total GLA | Stabilized Mall Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Nine Months Ended 9/30/16 (2) | ||||||||||||||||
9/30/16 | 9/30/15 | 9/30/16 | 9/30/15 | ||||||||||||||||||
Acadiana Mall | Lafayette, LA | 991,576 | |||||||||||||||||||
Coastal Grand | Myrtle Beach, SC | 1,039,590 | |||||||||||||||||||
CoolSprings Galleria | Nashville, TN | 1,142,750 | |||||||||||||||||||
Cross Creek Mall | Fayetteville, NC | 1,045,311 | |||||||||||||||||||
Dakota Square Mall | Minot, ND | 743,752 | |||||||||||||||||||
Fayette Mall | Lexington, KY | 1,203,998 | |||||||||||||||||||
Friendly Center and The Shops at Friendly | Greensboro, NC | 1,140,260 | |||||||||||||||||||
Governor's Square | Clarksville, TN | 734,510 | |||||||||||||||||||
Hamilton Place | Chattanooga, TN | 1,150,185 | |||||||||||||||||||
Hanes Mall | Winston-Salem, NC | 1,477,242 | |||||||||||||||||||
Harford Mall | Bel Air, MD | 505,483 | |||||||||||||||||||
Jefferson Mall | Louisville, KY | 894,132 | |||||||||||||||||||
Mall del Norte | Laredo, TX | 1,178,220 | |||||||||||||||||||
Mayfaire Town Center | Wilmington, NC | 590,594 | |||||||||||||||||||
Oak Park Mall | Overland Park, KS | 1,600,212 | |||||||||||||||||||
The Outlet Shoppes at Atlanta (3) | Woodstock, GA | 412,055 | |||||||||||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 433,046 | |||||||||||||||||||
The Outlet Shoppes of the Bluegrass (3) | Simpsonville, KY | 428,073 | |||||||||||||||||||
Park Plaza | Little Rock, AR | 540,167 | |||||||||||||||||||
Post Oak Mall | College Station, TX | 759,632 | |||||||||||||||||||
St. Clair Square | Fairview Heights, IL | 1,084,954 | |||||||||||||||||||
Sunrise Mall | Brownsville, TX | 801,392 | |||||||||||||||||||
Volusia Mall | Daytona Beach, FL | 1,067,694 | |||||||||||||||||||
West County Center | Des Peres, MO | 1,197,210 | |||||||||||||||||||
West Towne Mall | Madison, WI | 823,505 | |||||||||||||||||||
Total Tier 1 Malls | 22,985,543 | $ | 436 | $ | 444 | 95.2 | % | 93.7 | % | 44.1 | % |
TIER 2 Sales of ≥ $300 to < $375 per square foot | ||||||||||||||
Property | Location | Total GLA | Stabilized Mall Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Nine Months Ended 9/30/16 (2) | |||||||||
9/30/16 | 09/30/15 | 9/30/16 | 9/30/15 | |||||||||||
Arbor Place | Atlanta (Douglasville), GA | 1,163,432 | ||||||||||||
Asheville Mall | Asheville, NC | 974,223 | ||||||||||||
Brookfield Square | Brookfield, WI | 1,032,242 | ||||||||||||
Burnsville Center | Burnsville, MN | 1,046,359 | ||||||||||||
CherryVale Mall | Rockford, IL | 849,253 | ||||||||||||
East Towne Mall | Madison, WI | 792,165 | ||||||||||||
EastGate Mall | Cincinnati, OH | 860,830 | ||||||||||||
Eastland Mall | Bloomington, IL | 760,799 | ||||||||||||
Frontier Mall | Cheyenne, WY | 524,239 | ||||||||||||
Greenbrier Mall | Chesapeake, VA | 890,852 | ||||||||||||
Honey Creek Mall | Terre Haute, IN | 677,322 | ||||||||||||
Imperial Valley Mall | El Centro, CA | 763,171 |
24
Mall Portfolio Statistics (continued)
TIER 2 Sales of ≥ $300 to < $375 per square foot | |||||||||||||||||||||
Property | Location | Total GLA | Stabilized Mall Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Nine Months Ended 9/30/16 (2) | ||||||||||||||||
9/30/16 | 09/30/15 | 9/30/16 | 9/30/15 | ||||||||||||||||||
Kirkwood Mall | Bismarck, ND | 842,518 | |||||||||||||||||||
Laurel Park Place | Livonia, MI | 494,886 | |||||||||||||||||||
Layton Hills Mall | Layton, UT | 574,013 | |||||||||||||||||||
Meridian Mall | Lansing, MI | 972,186 | |||||||||||||||||||
Mid Rivers Mall | St. Peters, MO | 1,076,184 | |||||||||||||||||||
Northgate Mall | Chattanooga, TN | 762,381 | |||||||||||||||||||
Northpark Mall | Joplin, MO | 938,027 | |||||||||||||||||||
Northwoods Mall | North Charleston, SC | 771,676 | |||||||||||||||||||
Old Hickory Mall | Jackson, TN | 538,991 | |||||||||||||||||||
The Outlet Shoppes at Oklahoma City | Oklahoma City, OK | 475,862 | |||||||||||||||||||
Parkdale Mall | Beaumont, TX | 1,248,667 | |||||||||||||||||||
Parkway Place | Huntsville, AL | 648,271 | |||||||||||||||||||
Pearland Town Center | Pearland, TX | 646,995 | |||||||||||||||||||
Richland Mall | Waco, TX | 686,628 | |||||||||||||||||||
South County Center | St. Louis, MO | 1,044,443 | |||||||||||||||||||
Southaven Towne Center | Southaven, MS | 567,640 | |||||||||||||||||||
Southpark Mall | Colonial Heights, VA | 672,975 | |||||||||||||||||||
Turtle Creek Mall | Hattiesburg, MS | 846,121 | |||||||||||||||||||
Valley View Mall | Roanoke, VA | 837,390 | |||||||||||||||||||
WestGate Mall | Spartanburg, SC | 954,084 | |||||||||||||||||||
Westmoreland Mall | Greensburg, PA | 979,576 | |||||||||||||||||||
York Galleria | York, PA | 751,902 | |||||||||||||||||||
Total Tier 2 Malls | 27,666,303 | $ | 345 | $ | 343 | 92.1 | % | 91.7 | % | 44.8 | % |
TIER 3 Sales < $300 per square foot | |||||||||||||||||||||
Property | Location | Total GLA | Stabilized Mall Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Nine Months Ended 9/30/16 (2) | ||||||||||||||||
9/30/16 | 9/30/15 | 9/30/16 | 9/30/15 | ||||||||||||||||||
Alamance Crossing | Burlington, NC | 886,700 | |||||||||||||||||||
College Square | Morristown, TN | 450,398 | |||||||||||||||||||
Foothills Mall | Maryville, TN | 463,751 | |||||||||||||||||||
Janesville Mall | Janesville, WI | 600,710 | |||||||||||||||||||
Kentucky Oaks Mall | Paducah, KY | 1,066,151 | |||||||||||||||||||
Monroeville Mall | Pittsburgh, PA | 1,077,520 | |||||||||||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | 247,622 | |||||||||||||||||||
Randolph Mall | Asheboro, NC | 380,559 | |||||||||||||||||||
Regency Mall | Racine, WI | 789,368 | |||||||||||||||||||
Stroud Mall | Stroudsburg, PA | 403,258 | |||||||||||||||||||
Walnut Square | Dalton, GA | 495,970 | |||||||||||||||||||
Total Tier 3 Malls | 6,862,007 | $ | 266 | $ | 263 | 84.8 | % | 87.0 | % | 7.2 | % | ||||||||||
Total Mall Portfolio | 57,513,853 | $ | 377 | $ | 379 | 92.6 | % | 91.7 | % | 96.1 | % |
25
Mall Portfolio Statistics (continued)
Excluded Malls (4) | ||||||||||||||||
Property | Category | Location | Total GLA | Stabilized Mall Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Nine Months Ended 9/30/16 (2) | ||||||||||
9/30/16 | 9/30/15 | 9/30/16 | 9/30/15 | |||||||||||||
Lender Malls: | ||||||||||||||||
Chesterfield Mall | Lender | Chesterfield, MO | 1,264,857 | |||||||||||||
Midland Mall | Lender | Midland, MI | 473,634 | |||||||||||||
Wausau Center | Lender | Wausau, WI | 423,774 | |||||||||||||
2,162,265 | ||||||||||||||||
Other Excluded Malls: | ||||||||||||||||
Cary Towne Center | Repositioning | Cary, NC | 927,887 | |||||||||||||
Hickory Point Mall | Repositioning | Forsyth, IL | 815,326 | |||||||||||||
River Ridge Mall | Minority Interest | Lynchburg, VA | 761,133 | |||||||||||||
Triangle Town Center | Minority Interest | Raleigh, NC | 1,254,274 | |||||||||||||
3,758,620 | ||||||||||||||||
Total Excluded Malls | 5,920,885 | N/A | N/A | N/A | N/A | 3.9 | % |
(1) | Represents same-store sales per square foot for mall tenants 10,000 square feet or less for stabilized malls. |
(2) | Total mall NOI, excluding dispositions and developments, is based on total mall NOI of $510,490,703 for the nine months ended September 30, 2016. |
(3) | The Outlet Shoppes at Atlanta and The Outlet Shoppes of the Bluegrass are non-stabilized malls and are excluded from Sales Per Square Foot. |
(4) | Excluded Malls represent malls that fall in the following categories, for which operational metrics are excluded: |
• | Lender Malls - Malls for which we are working or intend to work with the lender on the terms of the loan secured by the related property. |
• | Repositioning Malls - Malls where we have determined that the current format of the property no longer represents the best use of the property and we are in the process of evaluating alternative strategies for the property, which may include major redevelopment or an alternative retail or non-retail format, or after evaluating alternative strategies for the Property, we have determined that the property no longer meets our criteria for long-term investment. |
• | Minority Interest Malls - Malls in which we own an interest of 25% or less. |
26
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Nine Months Ended September 30, 2016
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) | 352,402 | $ | 44.85 | $ | 47.86 | 6.7 | % | $ | 49.25 | 9.8 | % | ||||||||||
Stabilized malls | 329,875 | 46.12 | 49.35 | 7.0 | % | 50.81 | 10.2 | % | |||||||||||||
New leases | 82,967 | 42.60 | 47.62 | 11.8 | % | 51.01 | 19.7 | % | |||||||||||||
Renewal leases | 246,908 | 47.31 | 49.93 | 5.5 | % | 50.74 | 7.3 | % | |||||||||||||
Year-to-Date: | |||||||||||||||||||||
All Property Types (1) | 1,419,167 | $ | 41.80 | $ | 43.17 | 3.3 | % | $ | 44.55 | 6.6 | % | ||||||||||
Stabilized malls | 1,324,018 | 43.10 | 44.49 | 3.2 | % | 45.93 | 6.6 | % | |||||||||||||
New leases | 363,185 | 39.21 | 45.80 | 16.8 | % | 48.56 | 23.8 | % | |||||||||||||
Renewal leases | 960,833 | 44.57 | 44.00 | (1.3 | )% | 44.94 | 0.8 | % |
Average Annual Base Rents Per Square Foot (3) By Property Type For Small Shop Space Less Than 10,000 Square Feet: | ||||||||||||
Total Leasing Activity: | ||||||||||||
As of September 30, | ||||||||||||
Quarter: | Square Feet | 2016 | 2015 | |||||||||
Operating portfolio: | Same-center malls | $ | 32.06 | $ | 31.41 | |||||||
New leases | 334,006 | Stabilized malls | 32.18 | 30.93 | ||||||||
Renewal leases | 429,350 | Non-stabilized malls (4) | 26.48 | 25.53 | ||||||||
Development portfolio: | Associated centers (5) | 13.90 | 13.32 | |||||||||
New leases | 28,701 | Community centers (5) | 15.55 | 15.65 | ||||||||
Total leased | 792,057 | Office buildings (5) | 20.01 | 19.45 | ||||||||
Year-to-Date: | ||||||||||||
Operating Portfolio: | ||||||||||||
New leases | 1,155,870 | |||||||||||
Renewal leases | 1,863,460 | |||||||||||
Development Portfolio: | ||||||||||||
New leases | 538,769 | |||||||||||
Total leased | 3,558,099 |
(1) | Includes stabilized malls, associated centers, community centers and other. |
(2) | Average gross rent does not incorporate allowable future increases for recoverable common area expenses. |
(3) | Average annual base rents per square foot are based on contractual rents in effect as of September 30, 2016, including the impact of any rent concessions. |
(4) | Includes The Outlet Shoppes of the Bluegrass and The Outlet Shoppes at Atlanta as of September 30, 2016 and The Outlet Shoppes of the Bluegrass, The Outlet Shoppes at Atlanta and Fremaux Town Center as of September 30, 2015. |
(5) | Includes annual base rent per square foot for all leased locations regardless of size. |
27
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Nine Months Ended September 30, 2016
New and Renewal Leasing Activity of Same Small Shop Space Less Than 10,000 Square Feet
For the Nine Months Ended September 30, 2016 Based on Commencement Date
Number of Leases | Square Feet | Term (in years) | Initial Rent PSF | Average Rent PSF | Expiring Rent PSF | Initial Rent Spread | Average Rent Spread | ||||||||||||||||||||||||||||
Commencement 2016: | |||||||||||||||||||||||||||||||||||
New | 122 | 376,275 | 8.78 | $ | 47.21 | $ | 49.86 | $ | 39.55 | $ | 7.66 | 19.4 | % | $ | 10.31 | 26.1 | % | ||||||||||||||||||
Renewal | 448 | 1,295,436 | 3.68 | 41.82 | 42.70 | 42.03 | (0.21 | ) | (0.5 | )% | 0.67 | 1.6 | % | ||||||||||||||||||||||
Commencement 2016 Total | 570 | 1,671,711 | 4.77 | $ | 43.03 | $ | 44.31 | $ | 41.47 | $ | 1.56 | 3.8 | % | $ | 2.84 | 6.8 | % | ||||||||||||||||||
Commencement 2017: | |||||||||||||||||||||||||||||||||||
New | 21 | 44,984 | 9.00 | $ | 61.73 | $ | 66.21 | $ | 51.62 | $ | 10.11 | 19.6 | % | $ | 14.59 | 28.3 | % | ||||||||||||||||||
Renewal | 78 | 201,484 | 3.89 | 41.12 | 41.75 | 40.45 | 0.67 | 1.7 | % | 1.30 | 3.2 | % | |||||||||||||||||||||||
Commencement 2017 Total | 99 | 246,468 | 4.97 | $ | 44.89 | $ | 46.21 | $ | 42.49 | $ | 2.40 | 5.6 | % | $ | 3.72 | 8.8 | % | ||||||||||||||||||
Total 2016/2017 | 669 | 1,918,179 | 4.80 | $ | 43.27 | $ | 44.56 | $ | 41.60 | $ | 1.67 | 4.0 | % | $ | 2.96 | 7.1 | % | ||||||||||||||||||
28
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of September 30, 2016
Top 25 Tenants Based On Percentage Of Total Annual Revenues
Tenant | Number of Stores | Square Feet | Percentage of Total Annualized Revenues (1) | ||||||||
1 | L Brands, Inc. (2) | 147 | 843,880 | 3.49% | |||||||
2 | Signet Jewelers Limited (3) | 205 | 297,582 | 2.79% | |||||||
3 | Ascena Retail Group, Inc. (4) | 194 | 983,012 | 2.50% | |||||||
4 | Foot Locker, Inc. | 125 | 558,463 | 2.34% | |||||||
5 | AE Outfitters Retail Company | 74 | 456,541 | 1.90% | |||||||
6 | Dick's Sporting Goods, Inc. (5) | 27 | 1,564,274 | 1.71% | |||||||
7 | Genesco Inc. (6) | 179 | 286,095 | 1.69% | |||||||
8 | The Gap, Inc. | 60 | 679,341 | 1.58% | |||||||
9 | Luxottica Group, S.P.A. (7) | 112 | 245,335 | 1.22% | |||||||
10 | Forever 21 Retail, Inc. | 23 | 460,658 | 1.22% | |||||||
11 | Express Fashions | 40 | 332,070 | 1.20% | |||||||
12 | Abercrombie & Fitch, Co. | 49 | 333,198 | 1.13% | |||||||
13 | JC Penney Company, Inc. (8) | 54 | 6,317,869 | 1.06% | |||||||
14 | Finish Line, Inc. | 54 | 283,390 | 1.06% | |||||||
15 | Charlotte Russe Holding, Inc. | 51 | 325,896 | 1.01% | |||||||
16 | The Buckle, Inc. | 47 | 244,767 | 0.98% | |||||||
17 | Aeropostale, Inc. | 58 | 221,594 | 0.85% | |||||||
18 | Best Buy Co., Inc. (9) | 52 | 462,876 | 0.83% | |||||||
19 | H&M | 29 | 599,669 | 0.80% | |||||||
20 | Cinemark | 10 | 524,764 | 0.79% | |||||||
21 | Shoe Show, Inc. | 47 | 588,669 | 0.77% | |||||||
22 | Barnes & Noble Inc. | 19 | 579,660 | 0.77% | |||||||
23 | Claire's Stores, Inc. | 101 | 126,808 | 0.76% | |||||||
24 | New York & Company, Inc. | 35 | 235,583 | 0.76% | |||||||
25 | The Children's Place Retail Stores, Inc. | 58 | 253,906 | 0.74% | |||||||
1,850 | 17,805,900 | 33.95% | |||||||||
(1) | Includes the Company's proportionate share of revenues from unconsolidated affiliates based on the Company's ownership percentage in the respective joint venture and any other applicable terms. | ||||||||||
(2) | L Brands, Inc. operates Victoria's Secret, PINK, White Barn Candle and Bath & Body Works. | ||||||||||
(3) | Signet Jewelers Limited operates Kay Jewelers, Marks & Morgan, JB Robinson, Shaw's Jewelers, Osterman's Jewelers, LeRoy's Jewelers, Jared Jewelers, Belden Jewelers, Ultra Diamonds, Rogers Jewelers, Zales, Peoples and Piercing Pagoda. | ||||||||||
(4) | Ascena Retail Group, Inc. operates Justice, Dressbarn, Maurices, Lane Bryant, Catherines, Ann Taylor, LOFT, and Lou & Grey. | ||||||||||
(5) | Dick's Sporting Goods, Inc. operates Dick's Sporting Goods, Golf Galaxy and Field & Stream stores. | ||||||||||
(6) | Genesco Inc. operates Journey's, Underground by Journeys, Shi by Journey's, Johnston & Murphy, Hat Shack, Lids, Hat Zone and Clubhouse stores. | ||||||||||
(7) | Luxottica Group, S.P.A. operates Lenscrafters, Sunglass Hut, and Pearle Vision. | ||||||||||
(8) | JC Penney Co., Inc. owns 28 of these stores. The above chart includes one store which has closed but for which JC Penney remains obligated to pay rent under the terms of the lease. | ||||||||||
(9) | Best Buy Co., Inc. operates Best Buy and Best Buy Mobile. |
29
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months and Nine Months Ended September 30, 2016
Capital Expenditures
(In thousands)
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Tenant allowances (1) | $ | 17,811 | $ | 17,685 | $ | 50,707 | $ | 49,725 | |||||||
Renovations (2) | 6,390 | 11,227 | 11,011 | 23,273 | |||||||||||
Deferred maintenance: (3) | |||||||||||||||
Parking lot and parking lot lighting | 9,171 | 10,689 | 11,936 | 18,136 | |||||||||||
Roof repairs and replacements | 2,178 | 545 | 3,221 | 2,654 | |||||||||||
Other capital expenditures | 1,464 | 4,610 | 7,292 | 6,769 | |||||||||||
Total deferred maintenance expenditures | 12,813 | 15,844 | 22,449 | 27,559 | |||||||||||
Total capital expenditures | $ | 37,014 | $ | 44,756 | $ | 84,167 | $ | 100,557 |
(1) | Tenant allowances, sometimes made to third-generation tenants, are recovered through minimum rents from the tenants over the term of the lease. |
(2) | Renovation capital expenditures for remodelings and upgrades to enhance our competitive position in the market area. A portion of these expenditures covering items such as new floor coverings, painting, lighting and new seating areas are also recovered through tenant billings. The costs of other items such as new entrances, new ceilings and skylights are not recovered from tenants. We estimate that 30% of our renovation expenditures are recoverable from our tenants over a ten to fifteen year period. |
(3) | The capital expenditures incurred for maintenance such as parking lot repairs, parking lot lighting and roofs are classified as deferred maintenance expenditures. These expenditures are billed to tenants as common area maintenance expense and the majority is recovered over a five to fifteen year period. |
Deferred Leasing Costs Capitalized
(In thousands)
2016 | 2015 | ||||||
Quarter ended: | |||||||
March 31, | $ | 658 | $ | 695 | |||
June 30, | 426 | 284 | |||||
September 30, | 421 | 806 | |||||
December 31, | 880 | ||||||
$ | 1,505 | $ | 2,665 |
30
CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of September 30, 2016
Properties Opened During the Nine Months Ended September 30, 2016
(Dollars in thousands)
CBL's Share of | |||||||||||||||||||
Property | Location | CBL Ownership Interest | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | Opening Date | Initial Unleveraged Yield | ||||||||||||
Community Center: | |||||||||||||||||||
Ambassador Town Center | Lafayette, LA | 65% | 431,139 | $ | 40,295 | $ | 33,444 | Apr-16 | 8.5% | ||||||||||
Mall Expansion: | |||||||||||||||||||
Hamilton Place - Theatre | Chattanooga, TN | 90% | 30,169 | 4,868 | 3,239 | Sep-16 | 9.1% | ||||||||||||
Kirkwood Mall - Self Development (Panera Bread, Verizon, Caribou Coffee) | Bismarck, ND | 100% | 12,570 | 3,702 | 4,189 | Mar-16 | 10.5% | ||||||||||||
42,739 | 8,570 | 7,428 | |||||||||||||||||
Community Center Expansion: | |||||||||||||||||||
High Pointe Commons (Petco) (3) | Harrisburg, PA | 50% | 12,885 | 1,012 | 797 | Sep-16 | 10.5% | ||||||||||||
Mall Redevelopments: | |||||||||||||||||||
CoolSprings Galleria - Sears Redevelopment (American Girl, Cheesecake Factory) | Nashville, TN | 50% | 208,976 | 32,307 | 34,066 | May-16 | 7.2% | ||||||||||||
Oak Park Mall - Self Development | Overland Park, KS | 50% | 6,735 | 1,230 | 1,100 | Jul/Aug-16 | 8.2% | ||||||||||||
Randolph Mall - JCP Redevelopment (Ross/ULTA) | Asheboro, NC | 100% | 33,796 | 4,513 | 4,257 | May/Jul-16 | 7.8% | ||||||||||||
249,507 | 38,050 | 39,423 | |||||||||||||||||
Total Properties Opened | 736,270 | $ | 87,927 | $ | 81,092 | ||||||||||||||
(1) Total Cost is presented net of reimbursements to be received. | |||||||||||||||||||
(2) Cost to Date does not reflect reimbursements until they are received. | |||||||||||||||||||
(3) This community center was sold in September 2016. |
31
Properties Under Development at September 30, 2016
(Dollars in thousands)
CBL's Share of | |||||||||||||||||||
Property | Location | CBL Ownership Interest | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | Expected Opening Date | Initial Unleveraged Yield | ||||||||||||
Outlet Center: | |||||||||||||||||||
The Outlet Shoppes at Laredo | Laredo, TX | 65% | 357,756 | $ | 69,926 | $ | 20,738 | Spring-17 | 9.6% | ||||||||||
Mall Expansions: | |||||||||||||||||||
Dakota Square Mall - Expansion | Minot, ND | 100% | 23,922 | 7,284 | 2,932 | Fall-16 | 7.5% | ||||||||||||
Friendly Center - Cheesecake Factory | Greensboro, NC | 50% | 9,156 | 2,330 | 1,191 | Fall-16 | 10.8% | ||||||||||||
Friendly Center - Shops | Greensboro, NC | 50% | 12,765 | 2,546 | 1,931 | Fall-16 | 8.1% | ||||||||||||
Mayfaire Town Center - Phase I | Wilmington, NC | 100% | 67,766 | 19,395 | 6,058 | Spring-17 | 8.4% | ||||||||||||
113,609 | 31,555 | 12,112 | |||||||||||||||||
Community Center Expansions: | |||||||||||||||||||
The Forum at Grandview - Expansion | Madison, MS | 75% | 24,516 | 5,486 | 1,589 | Fall-16 | 8.5% | ||||||||||||
Hammock Landing - Expansion | West Melbourne, FL | 50% | 23,717 | 2,351 | 1,575 | Fall-16 | 10.7% | ||||||||||||
48,233 | 7,837 | 3,164 | |||||||||||||||||
Mall Redevelopments: | |||||||||||||||||||
College Square - JCP Redevelopment (Dick's/ULTA) | Morristown, TN | 100% | 90,879 | 14,881 | 7,534 | Fall-16 | 7.6% | ||||||||||||
East Towne Mall (Planet Fitness/Shops) | Madison, WI | 100% | 27,692 | 2,142 | 983 | Winter-16 | 12.1% | ||||||||||||
Hickory Point Mall (T.J. Maxx/Shops) | Forsyth, IL | 100% | 50,030 | 3,581 | 43 | Fall-17 | 10.0% | ||||||||||||
Northpark Mall (Dunham's Sports) | Joplin, MO | 100% | 80,524 | 4,007 | 3,809 | Fall-16 | 9.5% | ||||||||||||
York Galleria - Partial JCP Redevelopment (H&M/Shops) | York, PA | 100% | 42,672 | 5,597 | 205 | Winter-16 | 7.8% | ||||||||||||
York Galleria - Partial JCP Redevelopment (Gold's Gym/Shops) | York, PA | 100% | 40,832 | 5,658 | 115 | Spring-17 | 12.8% | ||||||||||||
332,629 | 35,866 | 12,689 | |||||||||||||||||
Total Properties Under Development | 852,227 | $ | 145,184 | $ | 48,703 | ||||||||||||||
(1) Total Cost is presented net of reimbursements to be received. | |||||||||||||||||||
(2) Cost to Date does not reflect reimbursements until they are received. |
32