99.1 Earnings Release - Second Quarter Ended June 30, 2004
[LETTERHEAD OF THE COMPANY]
Contact: John N. Foy
Vice Chairman and CFO
(423) 855-0001
CBL & ASSOCIATES PROPERTIES REPORTS SECOND QUARTER RESULTS
o Raises 2004 FFO per share guidance
o Same store sales continue progress with 5.6% increase
o Same center NOI grows by 1.5%
CHATTANOOGA, Tenn. (July 29, 2004) CBL & Associates Properties, Inc.
(NYSE:CBL) announced results for the second quarter and six months ended June
30, 2004. A description of each non-GAAP financial measure and the related
reconciliation to the comparable GAAP measure is located at the end of this
release.
Net income available to common shareholders was $21,708,000, or $0.68 per
diluted share, in the second quarter of 2004 compared with $21,022,000, or $0.68
per diluted share, in the prior-year period. Net income available to common
shareholders increased 18.5% in the first half of 2004 to $51,897,000 from
$43,798,000 in the first half of 2003. On a diluted per share basis, net income
available to common shareholders for the first six months of 2004 increased
15.5% to $1.64 compared with $1.42 in the prior-year period.
Funds from operations (FFO) increased 2.0% to $68,738,000 for the second
quarter of 2004 from $67,406,000 for the second quarter of 2003. FFO per share
on a diluted, fully converted basis increased 1.7% to $1.21 for the second
quarter of 2004 from $1.19 in the prior-year period. Gains on sales of
outparcels for the second quarter of 2004 were $0.01 per diluted, fully
converted share compared with $0.05 for the prior-year period. FFO increased
2.7% to $138,398,000 for the first half of 2004 from $134,703,000 in the first
half of 2003. FFO per share increased 2.5% on a diluted, fully converted basis
in the first six months of 2004 to $2.44 from $2.38 per share in the prior-year
period. Gains on sales of outparcels for the first six months of 2004 were $0.04
per diluted, fully converted share compared with $0.07 for the prior-year
period.
HIGHLIGHTS
|X| Revenues increased 8.5% in the second quarter to $176,196,000 from
$162,397,000 in the prior-year period. Revenues increased 7.1% in the first
six months of 2004 to $349,087,000 from $325,905,000 in the comparable
period a year ago. Second quarter revenues include $1,444,000 in lease
termination fees received from tenants compared with $1,167,000 received in
the prior-year period. Revenues for the first six months of 2004 include
$2,601,000 in lease termination fees compared with $1,562,000 in the
prior-year period.
|X| Same center net operating income for the portfolio improved in the second
quarter of 2004 by 1.5% compared with a 6.1% increase for the prior-year
period.
|X| Same-store sales for mall tenants of 10,000 square feet or less for
stabilized malls as of June 30, 2004, increased 5.6% for those tenants who
have reported year to date sales compared with a decrease of 1.5% for the
prior-year period.
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CBL Reports Second Quarter Results
Page 2
July 29, 2004
|X| The debt-to-total-market capitalization ratio as of June 30, 2004, was
49.4% based on the common stock closing price of $55.00 and a fully
converted common stock share count of 55,981,146 as of the same date. The
debt-to-total-market capitalization ratio as of June 30, 2003, was 50.3%
based on the common stock closing price of $43.00 and a fully converted
common stock share count of 55,832,021 as of the same date.
|X| Variable rate debt of $850,406,000 represents 13.1% of the total market
capitalization for the Company and 26.4% of the Company's total
consolidated and unconsolidated debt.
CBL's chairman and chief executive officer, Charles B. Lebovitz, said, "We
have built our company around a focused strategy that has led to strong,
consistent FFO and dividend growth since our IPO in 1993. This strategy includes
acquiring properties where we can add value, developing properties in market
areas that are underserved, proactively managing and investing in our existing
properties to ensure they meet the needs of our customers, and maintaining a
flexible, well positioned balance sheet that is conservative and risk-averse.
This approach has served us well and continues to be a solid foundation for the
future growth of our company.
"The second quarter is generally a good indicator for our business as we
participate in the International Council of Shopping Centers' Annual Convention
and conduct our annual Connection event for retailers in May and June,
respectively. Although leasing is one of the biggest challenges we continue to
face for both our existing shopping center portfolio and new developments, we
were encouraged by the leasing activity and the number of deals that have been
finalized since the convention. The attitude of the retailers present at both
events was vibrant and positive. While we do not expect an immediate impact from
the continued growth in sales at our malls, the improved sales performance
together with a higher level of leasing activity continues to generate
opportunities to add new retail concepts and remerchandise our malls.
"Our healthy outlook for the balance of the year is predicated upon the
progress we are making in releasing the nearly 438,000 square feet of
bankruptcies and store closings experienced in the last 12 months as well as
overcoming the loss of approximately $0.58 per share in annualized FFO from
properties contributed in the Galileo transaction. We have also been successful
in acquiring six prime malls so far this year at attractive yields. With the
impact from our recently acquired malls, the opening of new development projects
and the contribution from our releasing efforts, we believe we are positioned
for a strong performance in the second half of the year and in 2005."
PORTFOLIO OCCUPANCY* June 30,
2004 2003
------------- -------------
Portfolio occupancy: 91.1% 91.5%
Mall portfolio 91.1% 91.7%
Stabilized malls (63) 91.4% 92.2%
Non-stabilized malls (3) 85.1% 77.8%
Associated centers (24) 89.3% 91.7%
Community centers (14) 92.6% 89.1%
<FN>
*Figures do not include the community centers that were included in Phases I &
II of the Galileo joint venture transaction.
</FN>
ACQUISITIONS
During the second quarter the Company acquired the 890,000-square-foot
Greenbrier Mall located in Chesapeake, Virginia, for $102.5 million at a yield
of 8% based on income in place. Additionally, the Company paid $4.5 million to
prepay the existing debt that the Company did not assume. In May, the Company
acquired the 862,000-square-foot Chapel Hill Mall in Akron, Ohio, from Forest
City Enterprises for $78.1 million. The acquisition is expected to generate an
initial yield of 8.3% based upon current income. In June, the Company acquired
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CBL Reports Second Quarter Results
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July 29, 2004
the 547,000-square-foot Park Plaza Mall in Little Rock, Arkansas, from First
Union Real Estate Equity and Mortgage Investments for a purchase price of $77.5
million, $41.3 million of which was the assumption of a non-recourse, fixed-rate
loan, plus an estimated $9.9 million for improvements. Park Plaza Mall is
expected to generate an initial yield of 8.47% based on current income and the
total investment of $87.4 million.
Subsequent to the end of the quarter, CBL acquired the
1,128,747-square-foot Monroeville Mall in the eastern Pittsburgh suburb of
Monroeville, Pennsylvania, from Turnberry Associates for total consideration of
$231.2 million. The acquisition included the mall, a 229,588-square-foot
associated center known as the Annex, and an 86,204-square-foot open-air
expansion known as the Village. The acquisition is expected to generate an
initial yield for the mall and associated center of 7.37% based upon current
income. An additional $20.7 million will be invested for the open-air expansion,
which is expected to yield 8.18% when it opens in mid-2005. The combined return
for the entire project is expected to be 7.45%. The purchase price was comprised
of the assumption of a $134.0 million non-recourse, fixed-rate loan, $60.95
million of special common units of CBL's Operating Partnership based on $78.10
per unit value and $36.25 million in cash.
OUTLOOK AND GUIDANCE
Based on today's outlook and the Company's second quarter results,
management has increased its projection for Funds From Operations (FFO) for
2004. The Company now expects FFO to be in the range of $4.98 to $5.03 per
diluted common share for the year compared with its previous projection in the
range of $4.80 to $4.85 per diluted common share. The Company expects to update
its annual guidance after each quarter's results.
Low High
----- ------
2004 FFO guidance previously provided - April 27, 2004 $4.80 $4.85
Acquisitions of Chapel Hill Mall, Park Plaza Mall
and Monroeville Mall complex (for the year 2004) 0.15 0.15
Second quarter 2004 lease termination fees 0.03 0.03
----- ------
Revised FFO guidance for 2004 $4.98 $5.03
===== ======
Low High
----- ------
Expected diluted earnings per common share $1.39 $1.42
Add: real estate depreciation and amortization 2.39 2.39
Add: depreciation and amortization from unconsolidated
affiliates 0.09 0.09
Add: minority interest in earnings of Operating Partnership 1.11 1.13
----- ------
Expected FFO per diluted common share $4.98 $5.03
===== ======
INVESTOR CONFERENCE CALL AND SIMULCAST
CBL & Associates Properties, Inc. will conduct a conference call at 10:00
am EDT on July 30, 2004, to discuss the second quarter results. The number to
call for this interactive teleconference is 913-981-5507. A seven-day replay of
the conference call will be available by dialing 719-457-0820 and entering the
passcode 349212. A transcript of the Company's prepared remarks will be
furnished on a Form 8-K following the conference call.
To receive the CBL & Associates Properties, Inc. second quarter earnings
release and supplemental information please visit our website at
www.cblproperties.com or contact Investor Relations at 423-490-8292.
The Company will also provide an online Web simulcast and rebroadcast of
its 2004 second quarter earnings release conference call. The live broadcast of
CBL's quarterly conference call will be available online at the Company's Web
site at www.cblproperties.com, as well as www.streetevents.com,
www.fulldisclosure.com and www.vcall.com on July 30, 2004, beginning at 10:00
a.m. EDT. The online replay will follow shortly after the call and continue
through August 12, 2004.
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CBL Reports Second Quarter Results
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July 29, 2004
NON-GAAP FINANCIAL MEASURES
Funds From Operations
FFO is a widely used measure of the operating performance of real estate
companies that supplements net income determined in accordance with generally
accepted accounting principles ("GAAP"). The National Association of Real Estate
Investment Trusts defines FFO as net income (computed in accordance with GAAP)
excluding gains or losses on sales of operating properties, plus depreciation
and amortization, and after adjustments for unconsolidated partnerships and
joint ventures. The Company believes that FFO provides an additional indicator
of the operating performance of the Company's properties without giving effect
to real estate depreciation and amortization, which assumes the value of real
estate assets declines predictably over time. Since values of well-maintained
real estate assets have historically risen or fallen with market conditions, the
Company believes that FFO enhances investors' understanding of the Company's
operating performance.
FFO does not represent cash flow from operations as defined by accounting
principles generally accepted in the United States, is not necessarily
indicative of cash available to fund all cash flow needs and should not be
considered as an alternative to net income for purposes of evaluating the
Company's operating performance or to cash flow as a measure of liquidity.
Same-Center Net Operating Income
Net operating income ("NOI") is a supplemental measure of the operating
performance of the Company's shopping centers. The Company defines NOI as
operating revenues (rental revenues, tenant reimbursements and other income)
less property operating expenses (property operating, real estate taxes and
maintenance and repairs). Similar to FFO, the Company computes NOI based on its
pro rata share of both consolidated and unconsolidated properties. The Company's
definition of NOI may be different than that used by other companies and,
accordingly, the Company's NOI may not be comparable to that of other companies.
A reconciliation of same-center NOI to net income is located at the end of this
earnings release.
Since NOI includes only those revenues and expenses related to the
continuing operations of its shopping center properties, the Company believes
that same-center NOI provides a measure that reflects trends in occupancy rates,
rental rates and operating costs and the impact of those trends on the Company's
results of operations.
Pro Rata Share of Debt
The Company presents debt based on its pro rata ownership share (including
the Company's pro rata share of unconsolidated affiliates and excluding minority
investors' share of consolidated properties) because it believes this provides
investors a clearer understanding of the Company's total debt obligations which
affects 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.
CBL & Associates Properties, Inc. is one of the top five owners of shopping
centers in North America and the largest owner of malls and shopping centers in
the Southeast, ranked by GLA owned. CBL owns, holds interests in or manages 167
properties, including 67 enclosed regional malls. The properties are located in
27 states and total 69.1 million square feet including 2.0 million square feet
of non-owned shopping centers managed for third parties. CBL has nine projects
under construction totaling approximately 2.0 million square feet including one
regional mall - Imperial Valley Mall in the Imperial Valley region of
California, an open-air shopping center in Southaven, MS, one community center
and six expansions. In addition to its office in Chattanooga, TN, CBL has a
regional office in Boston (Waltham), MA. Additional information can be found at
www.cblproperties.com.
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CBL Reports Second Quarter Results
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July 29, 2004
Information included herein contains "forward-looking statements" within
the meaning of the federal securities laws. Such statements are inherently
subject to risks and uncertainties, many of which cannot be predicted with
accuracy and some of which might not even be anticipated. Future events and
actual events, financial and otherwise, may differ materially from the events
and results discussed in the forward-looking statements. The reader is directed
to the Company's various filings with the Securities and Exchange Commission,
including without limitation the Company's Annual Report on Form 10-K and the
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" incorporated by reference therein, for a discussion of such risks
and uncertainties.
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CBL Reports Second Quarter Results
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July 29, 2004
CBL & Associates Properties, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
2004 2003 2004 2003
---------- ---------- ---------- ----------
REVENUES:
Minimum rents $ 114,044 $ 104,272 $ 223,031 $ 206,923
Percentage rents 1,474 1,198 8,168 7,521
Other rents 2,456 1,762 5,242 3,790
Tenant reimbursements 50,657 49,961 98,839 97,797
Management, development and leasing fees 1,716 1,406 3,511 2,725
Other 5,849 3,798 10,296 7,149
---------- ---------- ---------- ----------
Total revenues 176,196 162,397 349,087 325,905
---------- ---------- ---------- ----------
EXPENSES:
Property operating 26,401 25,817 54,137 52,005
Depreciation and amortization 33,026 27,593 65,759 53,807
Real estate taxes 14,157 12,760 27,326 26,699
Maintenance and repairs 10,217 9,585 20,503 20,109
General and administrative 7,992 6,644 16,225 12,997
Other 4,923 2,315 7,955 4,656
---------- ---------- ---------- ----------
Total expenses 96,716 84,714 191,905 170,273
---------- ---------- ---------- ----------
Income from operations 79,480 77,683 157,182 155,632
Interest income 706 592 1,586 1,165
Interest expense (42,798) (38,350) (83,232) (75,292)
Loss on extinguishment of debt - (167) - (167)
Gain on sales of real estate assets 4,955 3,002 24,780 4,096
Equity in earnings of unconsolidated affiliates 2,682 731 5,546 2,487
Minority interest in earnings:
Operating partnership (17,840) (17,979) (42,874) (38,616)
Shopping center properties (1,819) (885) (3,058) (1,413)
---------- ---------- ---------- ----------
Income before discontinued operations 25,366 24,627 59,930 47,892
Operating income of discontinued operations 233 87 279 355
Gain on discontinued operations 525 - 520 2,935
---------- ---------- ---------- ----------
Net income 26,124 24,714 60,729 51,182
Preferred dividends (4,416) (3,692) (8,832) (7,384)
---------- ---------- ---------- ----------
Net income available to common shareholders $ 21,708 $ 21,022 $ 51,897 $ 43,798
========== ========== ========== ==========
Basic per share data:
Net income before discontinued operations,
net of preferred dividends $ 0.69 $ 0.70 $ 1.68 $ 1.36
Discontinued operations 0.02 0.00 0.02 0.11
---------- ---------- ---------- ----------
Net income available to common shareholders $ 0.71 $ 0.70 $ 1.70 $ 1.47
========== ========== ========== ==========
Weighted average common shares outstanding 30,600 29,886 30,464 29,806
Diluted per share data:
Net income before discontinued operations,
net of preferred dividends $ 0.66 $ 0.67 $ 1.61 $ 1.31
Discontinued operations 0.02 0.01 0.03 0.11
---------- ---------- ---------- ----------
Net income available to common shareholders $ 0.68 $ 0.68 $ 1.64 $ 1.42
========== ========== ========== ==========
Weighted average common and potential dilutive
common shares outstanding 31,755 31,066 31,686 30,942
<FN>
(1) The amounts for the prior year periods have been reclassified to conform
with the current year presentation. This reclassification did not impact income
from operations or net income available to common shareholders.
</FN>
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CBL Reports Second Quarter Results
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July 29, 2004
The Company's calculation of FFO is as follows (in thousands, except per share
data):
Three Months Ended Six Months Ended
June 30, June 30,
--------------------------- ---------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
Net income available to common shareholders $ 21,708 $ 21,022 $ 51,897 $ 43,798
Add:
Depreciation and amortization from consolidated properties 33,026 27,593 65,759 53,807
Depreciation and amortization from unconsolidated affiliates 1,547 1,123 2,743 2,019
Depreciation and amortization from discontinued operations 8 97 20 205
Minority interest in earnings of operating partnership 17,840 17,979 42,874 38,616
Less:
Gain on disposal of operating real estate assets (4,484) - (23,565) -
Minority investors' share of depreciation and amortization (304) (275) (597) (541)
Gain on disposal of discontinued operations (525) - (520) (2,935)
Depreciation and amortization of non-real estate assets (78) (133) (213) (266)
------------ ------------ ------------ ------------
Funds from operations $ 68,738 $ 67,406 $ 138,398 $ 134,703
============ ============ ============ ============
Funds from operations applicable to Company shareholders $ 37,732 $ 36,252 $ 75,814 $ 72,356
============ ============ ============ ============
Basic per share data:
Funds from operations $ 1.23 $ 1.21 $ 2.49 $ 2.43
============ ============ ============ ============
Weighted average common shares outstanding with operating
partnership units fully converted 55,745 55,568 55,610 55,489
Diluted per share data:
Funds from operations $ 1.21 $ 1.19 $ 2.44 $ 2.38
============ ============ ============ ============
Weighted average common and potential dilutive common
shares outstanding with operating partnership
units fully converted 56,901 56,748 56,832 56,625
SUPPLEMENTAL FFO INFORMATION:
Lease termination fees $ 1,444 $ 1,167 $ 2,601 $ 1,562
Lease termination fees per share $ 0.03 $ 0.02 $ 0.05 $ 0.03
Straight-line rental income $ 596 $ 1,201 $ 1,242 $ 2,222
Straight-line rental income per share $ 0.01 $ 0.02 $ 0.02 $ 0.04
Gains on outparcel sales $ 705 $ 2,875 $ 2,041 $ 3,976
Gains on outparcel sales per share $ 0.01 $ 0.05 $ 0.04 $ 0.07
Amortization of above- and below-market leases $ 607 $ 49 $ 1,242 $ 99
Amortization of above- and below-market leases per share $ 0.01 $ - $ 0.02 $ -
Amortization of debt premiums $ 1,166 $ - $ 2,139 $ -
Amortization of debt premiums per share $ 0.02 $ - $ 0.04 $ -
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July 29, 2004
Same-Center Net Operating Income
(Dollars in thousands)
Three Months Six Months
Ended June 30, Ended June 30,
------------------------- --------------------------
2004 2003 2004 2003
------------------------- --------------------------
Net income $ 26,124 $ 24,714 $ 60,729 $ 51,182
Adjustments:
Depreciation and amortization 33,026 27,593 65,759 53,807
Depreciation and amortization from unconsolidated affiliates 1,547 1,123 2,743 2,019
Depreciation and amortization from discontinued operations 8 97 20 205
Minority investors' share of depreciation and amortization in
shopping center properties (304) (275) (597) (541)
Interest expense 42,798 38,350 83,232 75,292
Interest expense from unconsolidated affiliates 1,658 2,053 3,077 3,882
Interest expense from discontinued operations 9 13 20 27
Minority investors' share of interest expense in
shopping center properties (369) (414) (702) (1,579)
Loss on extinguishment of debt - 167 - 167
Loss on extinguishment of debt in discontinued operations 58 - 58 -
Abandoned projects expense 1,240 115 1,685 107
Gain on sales of real estate assets (4,955) (3,002) (24,780) (4,096)
Gain on sales of real estate assets of unconsolidated affiliates - - (592) -
Minority interest in earnings of Operating Partnership 17,840 17,979 42,874 38,616
Gain on discontinued operations (525) - (520) (2,935)
------------ ---------- ------------ -----------
Operating Partnership's share of total NOI 118,155 108,513 233,006 216,153
General and administrative expenses 7,992 6,644 16,225 12,997
Management fees and non-property level revenues (2,224) (3,058) (8,761) (3,640)
------------ ---------- ------------ -----------
Operating Partnership's share of property NOI 123,923 112,099 240,470 225,510
NOI of non-comparable centers (21,645) (11,317) (34,374) (21,611)
------------ ---------- ------------ -----------
Total same center NOI $ 102,278 $ 100,782 $ 206,096 $ 203,899
============ ========== ============ ===========
Malls $ 92,286 $ 92,306 $ 186,219 $ 187,731
Associated centers 4,117 4,215 9,642 8,318
Community centers 1,769 1,619 3,410 3,148
Other 4,106 2,642 6,825 4,702
------------ ---------- ------------ -----------
Total same center NOI $ 102,278 $ 100,782 $ 206,096 $ 203,899
============ ========== ============ ===========
Percentage Change:
Malls 0.0% -0.8%
Associated centers -2.3% 15.9%
Community centers 9.3% 8.3%
Other 55.4% 45.2%
------------ ------------
Total same center NOI 1.5% 1.1%
============ ============
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CBL Reports Second Quarter Results
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July 29, 2004
Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
June 30, 2004
-------------------------------------------------------
Fixed Rate Variable Rate Total
------------------- ----------------- -----------------
Consolidated debt $ 2,366,070 $ 729,365 $ 3,095,435
Minority investors' share of consolidated debt (53,365) - (53,365)
Company's share of unconsolidated affiliates' debt 58,885 121,041 179,926
------------------- ----------------- -----------------
Company's share of consolidated and unconsolidated debt $ 2,371,590 $ 850,406 $ 3,221,996
=================== ================= =================
Weighted average interest rate 6.56% 2.36% 5.45%
=================== ================= =================
June 30, 2003
-------------------------------------------------------
Fixed Rate Variable Rate Total
------------------- ----------------- -----------------
Consolidated debt $ 1,973,945 $ 566,969 $ 2,540,914
Minority investors' share of consolidated debt (19,857) - (19,857)
Company's share of unconsolidated affiliates' debt 37,924 44,197 82,121
------------------- ----------------- -----------------
Company's share of consolidated and unconsolidated debt $ 1,992,012 $ 611,166 $ 2,603,178
=================== ================= =================
Weighted average interest rate 7.05% 3.01% 6.10%
=================== ================= =================
Debt-To-Total-Market Capitalization Ration as of June 30, 2004 (In thousands,
except stock price)
Shares
Outstanding Stock Price (1) Value
------------------- ----------------- -----------------
Common stock and operating partnership units 55,981 $ 55.00 $ 3,078,955
8.75% Series B Cumulative Redeemable Preferred Stock 2,000 $ 50.00 100,000
7.75% Series C Cumulative Redeemable Preferred Stock 460 $ 250.00 115,000
-----------------
Total market equity 3,293,955
Company's share of total debt 3,221,996
-----------------
Total market capitalization $ 6,515,951
=================
Debt-to-total-market capitalization ratio 49.4%
=================
<FN>
(1) Stock price for common stock and operating partnership units equals the
closing price of the common stock on June 30, 2004. The stock price for the
preferred stock represents the face value of each respective series of preferred
stock.
</FN>
Reconciliation of Shares and Operating Partnership Units Outstanding
(In thousands)
Three Months Ended Six Months Ended
June 30, June 30,
------------------------------------- -----------------------------------
Basic Diluted Basic Diluted
----------------- ------------------- ----------------- -----------------
2004:
Weighted average shares - EPS 30,600 31,755 30,464 31,686
Weighted average operating partnership units 25,145 25,146 25,146 25,146
----------------- ------------------- ----------------- -----------------
Weighted average shares- FFO 55,745 56,901 55,610 56,832
================= =================== ================= =================
2003:
Weighted average shares - EPS 29,886 31,066 29,806 30,942
Weighted average operating partnership units 25,682 25,682 25,683 25,683
----------------- ------------------- ----------------- -----------------
Weighted average shares- FFO 55,568 56,748 55,489 56,625
================= =================== ================= =================
Three Months Ended Six Months Ended
Dividend Payout Ratio June 30, June 30,
------------------------------------- -----------------------------------
2004 2003 2004 2003
----------------- ------------------- ----------------- -----------------
Dividend per share $ 0.725 $ 0.655 $ 1.45 $ 1.31
FFO per diluted, fully converted share $ 1.21 $ 1.19 $ 2.44 $ 2.38
----------------- ------------------- ----------------- -----------------
Dividend payout ratio 59.9% 55.0% 59.4% 55.0%
================= =================== ================= =================
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CBL Reports Second Quarter Results
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July 29, 2004
Consolidated Balance Sheets
(Preliminary and unaudited, in thousands)
June 30, December 31,
2004 2003
------------ ------------
ASSETS
Real estate assets:
Land $ 604,904 $ 578,310
Buildings and improvements 4,155,864 3,678,074
------------ ------------
4,760,768 4,256,384
Less: accumulated depreciation (519,045) (467,614)
------------ ------------
4,241,723 3,788,770
Real estate assets held for sale 67,811 64,354
Developments in progress 76,616 59,096
------------ ------------
Net investment in real estate 4,386,150 3,912,220
Cash, restricted cash and cash equivalents 30,042 20,332
Cash in escrow - 78,476
Receivables:
Tenant, net of allowance 35,800 42,165
Other 14,832 3,033
Mortgage notes receivable 27,555 36,169
Investment in unconsolidated affiliates 88,638 96,450
Other assets 85,030 75,465
------------ ------------
$ 4,668,047 $ 4,264,310
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage and other notes payable $ 3,092,963 $ 2,709,348
Mortgage notes payable on real estate assets
held for sale 2,472 28,754
Accounts payable and accrued liabilities 177,674 161,478
------------ ------------
Total liabilities 3,273,109 2,899,580
------------ ------------
Commitments and contingencies
Minority interests 540,894 526,993
------------ ------------
Shareholders' equity:
Preferred Stock, $.01 par value 25 25
Common Stock, $.01 par value 308 303
Additional paid-in capital 828,984 818,051
Deferred compensation (3,549) (1,607)
Retained earnings 28,276 20,965
------------ ------------
Total shareholders' equity 854,044 837,737
------------ ------------
$ 4,668,047 $ 4,264,310
============ ============
<FN>
The balance sheet above is preliminary as of the date of this report. Please
refer to the Company's Quarterly Report on Form 10-Q when filed for a complete
balance sheet as of June 30, 2004.
</FN>