99.3 Supplemental Financial and Operating Information - Second Quarter
Ended June 30, 2004
CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months and Six Months Ended June 30, 2004
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 dividend $ 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 dividend $ 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
-1-
CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months and Six Months Ended June 30, 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 $ -
-2-
CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months and Six Months Ended June 30, 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%
============ ============
-3-
CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months and Six Months Ended June 30, 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%
================= =================== ================= =================
-4-
CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months and Six Months Ended June 30, 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>
-5-
CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months and Six Months Ended June 30, 2004
Ratio of EBITDA to Interest Expense
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------------------
2004 2003 2004 2003
------------------ -----------------
EBITDA:
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)
Income taxes 819 1,046 1,265 1,539
Loss on extinguishment of debt - 167 - 167
Abandoned projects expense 1,240 115 1,685 107
Gain on sales of operating real estate assets (4,484) - (23,565) -
Minority interest in earnings of Operating
Partnership 17,840 17,979 42,874 38,616
Gain on discontinued operations (525) - (520) (2,935)
-------- --------- --------- ---------
Company's share of total EBITDA $119,387 $ 112,561 $236,020 $221,788
======== ========= ========= =========
Interest Expense:
Interest expense $ 42,798 $ 38,350 $ 83,232 $ 75,292
Interest expense from discontinued operations 9 13 20 27
Interest expense from unconsolidated affiliates 1,658 2,053 3,077 3,882
Minority investors' share of interest expense in
shopping center properties (369) (414) (702) (1,579)
-------- --------- --------- ---------
Company's share of total interest expense $ 44,096 $ 40,002 $ 85,627 $ 77,622
======== ========= ========= =========
Ratio of EBITDA to Interest Expense 2.71 2.81 2.76 2.86
======== ========= ========= =========
Reconciliation of EBITDA to Cash Flows Provided By Operating Activities
(In thousands)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------------------------
2004 2003 2004 2003
------------------ -----------------
Company's share of total EBITDA $119,387 $ 112,561 $ 236,02 $221,788
Interest expense (42,798) (38,350) (83,232) (75,292)
Minority interest's share of interest expense 369 414 702 1,579
Income taxes (819) (1,046) (1,265) (1,539)
Amortization of deferred financing costs and
non real estate depeciation included
in operating expense 1,664 1,056 3,418 2,354
Amortization of debt premiums (1,125) - (2,057) -
Amortization of above and below market leases (568) (49) (1,171) (99)
Depreciation and interest expense from
unconsolidated affiliates (3,205) (3,176) (5,820) (5,901)
Minority investors' share of depreciation and
amortization in shopping center properties 304 275 597 541
Minority interest in earnings - shopping center
properties 1,819 885 3,058 1,413
Gains on outparcel sales (782) (3,002) (1,526) (4,106)
Issuances of stock under incentive plan 269 1,129 1,268 1,203
Write-off of development projects 1,240 115 1,685 107
Amortization of deferred compensation 264 62 357 62
Accrual of deferred compensation 105 89 221 177
Changes in operating assets and liabilities 3,781 (12,331) 6,402 (17,298)
-------- --------- --------- ---------
Cash flows provided by operating activities $ 79,905 $ 58,632 $ 158,65 $124,989
======== ========= ========= =========
-6-
CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months and Six Months Ended June 30, 2004
Schedule of Mortgage and Other Notes Payable as of June 30, 2004
(Dollars In thousands )
Maturity Interest Balance Balance
Property Location Date Rate 6/30/2004 Fixed Variable
- ---------------------------------------------------------------------------------------------------------
Midland, MI Midland Mall Jun-04 2.313% $ 30,000 $ - $ 30,000
Cincinnati, OH Eastgate Mall Dec-04 2.139% 41,125 - 41,125
Lexington, KY Fayette Mall Development Dec-04 2.930% 8,550 - 8,550
Brookfield, IL Brookfield Square May-05 7.498% 70,801 70,801 -
Hattiesburg, MS Turtle Creek Mall Mar-06 7.400% 30,744 30,744 -
Chesapeake, VA Greenbrier Mall Apr-06 2.188% 92,650 - 92,650
Akron, OH Chapel Hill Mall May-06 2.280% 66,500 - 66,500
Rockford, IL Cherryvale Mall Jul-06 7.375% 45,080 45,080 -
Lynchburg, VA River Ridge Mall Jan-07 9.302% 22,102 22,102 -
Madison, WI East Towne Mall Jan-07 8.010% 27,498 27,498 -
Madison, WI West Towne Mall Jan-07 8.010% 42,513 42,513 -
Chattanooga, TN Hamilton Place Mar-07 7.000% 64,546 64,546 -
Cincinnati, OH Eastgate Crossing Apr-07 6.380% 10,295 10,295 -
Charleston, SC Citadel Mall May-07 7.390% 31,353 31,353 -
Dalton, GA Walnut Square Feb-08 10.125% 438 438 -
Highpoint, NC Oak Hollow Mall Feb-08 7.310% 45,278 45,278 -
Winston-Salem, NC Hanes Mall Jul-08 7.310% 110,209 110,209 -
Nashville, TN Hickory Hollow Mall Aug-08 6.770% 88,706 88,706 -
Nashville, TN Courtyard At Hickory HolloAug-08 6.770% 4,130 4,130 -
Nashville, TN Rivergate Mall Aug-08 6.770% 71,692 71,692 -
Nashville, TN Village At Rivergate Aug-08 6.770% 3,386 3,386 -
Lansing, MI Meridian Mall Oct-08 4.520% 94,419 94,419 -
Cary , NC Cary Towne Center Mar-09 6.850% 87,789 87,789 -
Fairview Heights, ISt. Claire Square Apr-09 7.000% 68,108 68,108 -
Daytona Beach, FL Volusia Mall Apr-09 6.950% 54,660 54,660 -
Terre Haute, IN Honey Creek Mall Apr-09 6.700% 32,959 32,959 -
Meridian, MS Bonita Lakes Mall Oct-09 6.820% 26,848 26,848 -
Meridian, MS Bonita Lakes Crossing Oct-09 6.820% 8,412 8,412 -
Little Rock, AR Park Plaza Mall May-10 8.690% 41,280 41,280 -
Spartanburg, SC Westgate Crossing Jul-10 8.420% 9,619 9,619 -
Burnsville, MN Burnsville Center Aug-10 8.000% 70,299 70,299 -
Roanoke, VA Valley View Mall Sep-10 8.610% 44,662 44,662 -
Nashville, TN Coolsprings Galleria Sep-10 8.290% 59,491 59,491 -
Beaumont, TX Parkdale Mall Oct-10 5.010% 56,125 56,125 -
Beaumont, TX Parkdale Crossing Oct-10 5.010% 8,862 8,862 -
Stroud, PA Stroud Mall Dec-10 8.420% 31,682 31,682 -
Wausau, WI Wausau Center Dec-10 6.700% 13,456 13,456 -
York, PA York Galleria Dec-10 8.340% 50,665 50,665 -
Lexington, KY Fayette Mall Jul-11 7.000% 94,891 94,891 -
Chattanooga, TN Hamilton Corner Aug-11 10.125% 2,389 2,389 -
Asheville, NC Asheville Mall Sep-11 6.980% 69,124 69,124 -
Portland, ME BJ'S Plaza Dec-11 10.400% 2,472 2,472 -
Ft Smith, AR Massard Crossing Feb-12 7.540% 5,880 5,880 -
Houston, TX Willowbrook Plaza Feb-12 7.540% 30,085 30,085 -
Vicksburg, MS Pemberton Plaza Feb-12 7.540% 2,007 2,007 -
Fayetteville, NC Cross Creek Mall Apr-12 7.400% 63,683 63,683 -
Colonial Heights, VSouthpark Mall May-12 7.000% 37,709 37,709 -
7
Asheboro, NC Randolph Mall Jul-12 6.500% 15,188 15,188 -
Douglasville, GA Arbor Place Mall Jul-12 6.510% 78,846 78,846 -
Douglasville, GA The Landing At Arbor PlaceJul-12 6.510% 8,900 8,900 -
Jackson, TN Old Hickory Mall Jul-12 6.510% 34,828 34,828 -
Louisville, KY Jefferson Mall Jul-12 6.510% 43,921 43,921 -
N Charleston, SC Northwoods Mall Jul-12 6.510% 62,883 62,883 -
Racine, WI Regency Mall Jul-12 6.510% 34,441 34,441 -
Saginaw, MI Fashion Square Jul-12 6.510% 60,368 60,368 -
Spartanburg, SC Westgate Mall Jul-12 6.500% 54,560 54,560 -
Chattanooga, TN CBL Center Aug-12 6.250% 14,669 14,669 -
Panama City, FL Panama City Mall Aug-12 7.300% 39,944 39,944 -
Greensburg, PA Westmoreland Mall Jan-13 5.050% 82,811 82,811 -
Morristown, TN College Square Sep-13 6.750% 11,847 11,847 -
Columbia, SC Columbia Mall Oct-13 5.450% 33,513 33,513 -
Janesville, WI Janesville Mall Apr-16 8.375% 13,918 13,918 -
------- ------- -
2,565,809 2,326,984 238,825
---------- ---------- -------
Weighted average interest rate 6.19% 6.59% 2.25%
Debt Premiums:
Lynchburg, VA River Ridge Mall Jan-07 4.000% 2,119 2,119 -
Daytona Beach, FL Volusia Mall Apr-09 4.750% 4,402 4,402 -
Terre Haute, IN Honey Creek Mall Apr-09 4.750% 3,050 3,050 -
Little Rock, AR Park Plaza Mall May-10 4.900% 7,737 7,737 -
Roanoke, VA Valley View Mall Sep-10 5.100% 8,054 8,054 -
Fayetteville, NC Cross Creek Mall Apr-12 5.000% 9,427 9,427 -
Colonial Heights, VSouthpark Mall May-12 5.100% 4,297 4,297 -
---------- ---------- -
39,086 39,086 -
---------- ---------- -
Weighted average interest rate 4.91% 4.91%
SUBTOTAL 2,604,895 2,366,070 238,825
---------- ---------- -------
Weighted average interest rate 6.17% 6.56% 2.25%
CONSTRUCTION LOANS
Southaven, MS Southaven Towne Center Jun-07 2.913% 9,140 - 9,140
---------- ---------- -------
LINES OF CREDIT 2.240% 481,400 - 481,400
---------- ---------- -------
TOTAL BALANCE SHEET $3,095,435 $2,366,070 $729,365
Weighted average interest rate 5.55% 6.56% 2.25%
Plus CBL's Share Of Unconsolidated Affiliates:
Huntsville, AL Parkway Place Dec-04 2.780% 28,915 - 28,915
Myrtle Beach, SC Coastal Grand May-06 2.963% 75,933 - 75,933
El Centro, CA Imperial Valley Mall Dec-06 2.970% 11,293 - 11,293
Paducah, KY Kentucky Oaks Jun-07 9.000% 15,849 15,849 -
Del Rio, TX Plaza Del Sol Aug-10 9.150% 1,892 1,892 -
Clarksville, TN Governors Square Sep-16 8.230% 15,317 15,317 -
Galileo America LLCPortfolio various 5.076% 30,727 25,827 4,900
---------- ---------- -------
179,926 58,885 121,041
---------- ---------- -------
-8-
Less Minority Interest's Share: Minority Interest
Chattanooga, TN CBL Center 8.0% 6.2500% (1,174) (1,174) -
Chattanooga, TN Hamilton Corner 10.0% 10.1250% (239) (239) -
Chattanooga, TN Hamilton Place 10.0% 7.0000% (6,455) (6,455) -
Ft Smith, AR Massard Crossing 90.0% 7.5400% (5,292) (5,292) -
Highpoint, NC Oak Hollow Mall 25.0% 7.3100% (11,320) (11,320) -
Houston, TX Willowbrook Plaza 90.0% 7.5400% (27,077) (27,077) -
Vicksburg, MS Pemberton Plaza 90.0% 7.5400% (1,808) (1,808) -
----------- ----------- -
(53,365) (53,365) -
----------- ----------- -
TOTAL OBLIGATIONS $3,221,996 $2,371,590 $850,406
========== =========== ========
Weighted average interest rate 5.45% 6.56% 2.36%
Total Debt of Unconsolidated Affiliates:
Clarksville, TN Governors Square Sep-16 8.230% $ 32,247 $ 32,247 $ -
Del Rio, TX Plaza Del Sol Aug-10 9.150% 3,739 3,739 -
El Centro, CA Imperial Valley Mall Dec-06 2.840% 11,293 - 11,293
Galileo America LLCPortfolio various 5.074% 307,270 258,270 49,000
Huntsville, AL Parkway Place Dec-04 2.780% 57,830 - 57,830
Myrtle Beach, SC Coastal Grand May-06 2.963% 75,933 - 75,933
Paducah, KY Kentucky Oaks Jun-07 9.000% 31,697 31,697 -
---------- ---------- ---------
$ 520,009 $ 325,953 $194,056
========== ========== =========
Weighted average interest rate 4.93% 5.82% 3.43%
-9-
CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months and Six Months Ended June 30, 2004
Comparable New and Renewal Leasing Activity as of June 30, 2004
New New
Square Prior PSF PSF Base % Change PSF Base % Change
Property Type Feet Base Rent Rent - Initial Initial Rent - Average Average
- ------------------- ------------ ------------- ------------- ------------- ------------- ----------
Quarter:
Stabilized malls 366,289 $ 24.74 $ 25.71 3.9% $ 26.41 6.8%
Associated centers 4,000 13.60 14.50 6.6% 14.62 7.5%
Community centers 9,040 9.73 12.08 24.2% 12.34 26.8%
Year To Date:
Stabilized malls 998,495 24.85 25.41 2.3% 25.95 4.4%
Associated centers 10,480 14.55 14.81 1.8% 14.86 2.1%
Community centers 13,600 9.58 11.43 19.3% 11.60 21.1%
Comparable Stabilized Mall Leasing Activity as of June 30, 2004
New New
Square Prior PSF PSF Base % Change PSF Base % Change
Stabilized Malls Feet Base Rent Rent - Initial Initial Rent - Average Average
- ------------------- ------------ ------------- --------------------------- -------------------------
Quarter:
New leases 175,394 $ 25.58 $ 27.49 7.5% $ 28.72 12.3%
Renewal leases 190,895 23.96 24.07 0.5% 24.28 1.3%
Year To Date:
New leases 385,199 25.38 28.54 12.5% 29.61 16.7%
Renewal leases 613,296 24.50 23.43 -4.4% 23.65 -3.5%
Total Leasing Activity Compared to Tenants Vacating as of June 30, 2004
Leased Vacated
Leased Average Base Vacated Average Base
Property Type Sq. Ft. Rent PSF Sq. Ft. Rent PSF
- ------------------- ------------ ------------- ------------- -------------
Quarter:
Malls 490,100 $ 25.85 215,376 $ 21.38
Associated centers 39,540 14.40 15,673 15.92
Community centers 14,281 9.29 1,800 7.78
Year To Date:
Malls 1,150,235 $ 26.26 742,819 $ 21.47
Associated centers 47,464 14.56 28,499 15.64
Community centers 18,841 9.50 8,550 8.40
Average Annual Base Rents Per Square Foot By Property Type
June 30,
----------------------------
2004 2003
------------- -------------
Stabilized malls $ 25.26 $ 23.98
Non-stabilized malls 27.01 26.52
Associated centers 9.70 9.88
Community centers 7.99 8.70
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CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months and Six Months Ended June 30, 2004
Capital Expenditures for Three Months and Six Months Ended June 30, 2004
(In thousands)
Three Months Six Months
------------- ------------
Tenant allowances $ 7,390 $ 13,546
------------- ------------
Renovations 10,471 13,191
------------- ------------
Deferred maintenance: *
Parking lot and parking lot lighting 1,605 1,605
Roof repairs and replacements 1,303 1,491
Other capital expenditures 1,115 4,288
------------- ------------
Total deferred maintenancee expenditures 4,023 7,384
------------- ------------
Total capital expenditures $ 21,884 $ 34,121
============= ============
The capital expenditures incurred for maintenance such as parking lot repairs,
parking lot lighting and roofs are classified as deferred maintenance
expenditures. These expenditures are billed to tenants as common area
maintenance expense and the majority is recovered over a five to fifteen year
period. Renovation capital expenditures are for remodelings and upgrades for
enhancing our competitive position in the market area. A portion of these
expenditures covering items such as new floor coverings, painting, lighting and
new seating areas are also recovered through tenant billings. The costs of other
items such as new entrances, new ceilings and skylights are not recovered from
tenants. We estimate that 30% of our renovation expenditures are recoverable
from our tenants over a ten to fifteen year period. The third category of
capital expenditures is tenant allowances, sometimes made to third-generation
tenants. Tenant allowances are recovered through minimum rents from the tenants
over the term of the lease.
Deferred Leasing Costs Capitalized
(In thousands)
2004 2003
------------- ------------
Quarter ended:
March 31, $ 492 $ 490
June 30, 242 333
------------- ------------
$ 734 $ 823
============= ============
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CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months and Six Months Ended June 30, 2004
Properties Under Development at June 30, 2004
(Dollars in thousands)
Gross CBL's Cost Cost
Leasable or Share of Spent Opening Initial
Property Location Area Cost To Date Date Yield
- --------------------------------- ---------------------- ------------ ------------ ---------- -------------- ------
New Mall Developments:
Imperial Valley Mall El Centro, CA 752,000 $ 45,557 $ 20,278 May-05 10%
(60/40 joint venture)
Mall Expansions:
East Towne Mall Madison, WI 139,000 21,206 11,505 October-04 7%
West Towne Mall Madison, WI 115,000 21,541 6,163 October-04 9%
Arbor Place Rich's-Macy's Douglasville, GA 140,000 10,000 4,206 November-04
The Lakes Mall Muskegon, MI 45,000 4,771 1,286 November-04 10%
Open Air Centers:
Southaven Towne Center Southaven, MS 407,000 23,885 12,630 October-05 10%
Associated Centers:
CoolSprings Crossing - Tweeter's Nashville, TN 10,000 1,415 13 November-04 14%
Community Centers:
Charter Oak Marketplace Hartford, CT 334,000 12,836 7,781 November-04 10%
------------ ------------ ----------
1,942,000 $ 141,211 $ 63,862
============ ============ ==========
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