Exhibit 99.1
[CBL & ASSOCIATES PROPERTIES, INC. LETTERHEAD]
Contact: Katie Knight
Director, Investor Relations
(423) 855-0001
CBL & ASSOCIATES PROPERTIES REPORTS FOURTH QUARTER
AND ANNUAL 2004 RESULTS
o 2004 total return to shareholders of 40.4%
o Same center NOI improves by 6.8% in the fourth quarter and 3.1% in 2004
o Fourth quarter FFO per share up 33.6% to $1.67
o 2004 FFO per share up 12.9% to $5.41
o 2005 FFO per share guidance in the range of $5.66 - $5.74
o 12.1% increase in common dividend on an annual basis
CHATTANOOGA, Tenn. (February 2, 2005) CBL & Associates Properties, Inc.
(NYSE:CBL) announced results for the fourth quarter and year ended December 31,
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 for the fourth quarter and
year ended December 31, 2003, included a one time gain associated with the sale
of 41 community centers to the Galileo America joint venture in October 2003 and
as a result, net income available to common shareholders for the fourth quarter
and year ended December 31, 2004, declined over the prior-year periods. Net
income available to common shareholders for the fourth quarter and year-ended
December 31, 2004, was $31,141,000 and $102,802,000 compared with $60,483,000
and $124,506,000 for the prior-year periods representing a decline of 48.5% and
17.4%, respectively. Net income available to common shareholders per diluted
share was $0.96 and $3.21 in the fourth quarter and year ended December 31,
2004, compared with $1.92 and $3.99 for the prior-year periods. This represents
a decline of 50.0% and 19.5%, respectively, which is primarily attributable to
the one-time gain in 2003.
Funds from operations (FFO) increased 36.1% to $96,772,000 for the fourth
quarter of 2004 from $71,085,000 for the fourth quarter of 2003. FFO per share
on a diluted fully converted basis increased 33.6% to $1.67 for the fourth
quarter of 2004 from $1.25 in the prior-year period. FFO increased 14.3% to
$310,405,000 for the year ended December 31, 2004, from $271,589,000 for the
year ended December 31, 2003. FFO per share increased 12.9% on a diluted, fully
converted basis in the year ended December 31, 2004, to $5.41 from $4.79 in the
prior-year period.
HIGHLIGHTS
|X| Total revenues increased 21.7% in the fourth quarter 2004 to
$216,405,000 from $177,773,000 in the prior-year period. Total
revenues increased 14.0% in the year ended December 31, 2004, to
$759,164,000 from $665,996,000 in the prior year period.
|X| Included in FFO for the fourth quarter 2004 was an impairment loss
on real estate of $0.05 per share compared with none for the
fourth quarter of 2003. This loss was offset by the gain on the
sale of non-operating properties of $0.05 per share compared with
none in the fourth quarter 2003. Impairment loss on real estate
for the year ended December 31, 2004 was $0.05 per share compared
with none for the year ended December 31, 2003. This loss was
offset by the gain on the sale of non-operating properties of
$0.07 per share for the year ended December 31, 2004 compared with
none for the prior-year period. See page six of this release for
additional supplemental FFO information.
|X| Same center net operating income for the portfolio improved in the
fourth quarter of 2004 by 6.8% compared with a 6.0% increase for
the prior-year period. Same center net operating income for the
year ended December 31, 2004, increased by 3.1% compared with an
increase of 5.0% for the prior year period.
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CBL Reports Fourth Quarter Results
Page 2
February 2, 2005
|X| Same-store sales for mall tenants of 10,000 square feet or less
for stabilized malls as of December 31, 2004, increased 2.8% to
$314 per square foot for those tenants who have reported sales
compared with a 1.1% increase for 2003.
|X| The debt-to-total-market capitalization ratio as of December 31,
2004, was 42.4% based on the common stock closing price of $76.35
and a fully converted common stock share count of 56,964,000 as of
the same date. The debt-to-total-market capitalization ratio as of
December 31, 2003, was 46.0% based on the common stock closing
price of $56.50 and a fully converted common stock share count of
55,546,000 as of the same date.
|X| Variable rate debt of $752,401,000 represents 9.1% of the total
market capitalization for the Company and 21.5% of the Company's
share of total consolidated and unconsolidated debt.
|X| On December 13, 2004, the Company completed an offering of 7.0
million depositary shares, each representing a 1/10 fractional
interest of a share of 7.375% Series D Cumulative Redeemable
Preferred Stock. The offering raised net proceeds of $169.5
million, which were used to pay down outstanding balances on the
Company's credit facilities.
|X| During the fourth quarter, the Company closed on a total of $178.4
million in long-term, non-recourse fixed rate financings. New
financing of $65.0 million was secured by Eastgate Mall in
Cincinnati, OH, which included a $57.25 million five-year loan
with an interest rate of 4.55% and a $7.75 million, interest only,
five-year B-note at 6.75%. The B-note is held by CBL. Additionally
the Company obtained a $113.4 million, ten-year interest only loan
with a rate of 5.04% secured by Mall del Norte in Laredo, TX.
CBL's Chairman and Chief Executive Officer, Charles B. Lebovitz, said,
"In CBL's 11-plus years as a public company, we have established a pattern of
delivering outstanding growth and returns for our shareholders in both
challenging and favorable markets. The year 2004 was no exception as we
experienced a large number of retailer bankruptcies at the beginning of the year
and were faced with the task of productively redeploying capital from the sale
of interests in our community centers to our joint venture with Australian-based
Galileo America. In spite of these obstacles we achieved many successes in the
year. We generated a total return to our shareholders of over 40%, the fifth
consecutive year for a greater than 30% total return. We grew FFO per share by
12.9%, the seventh time in eight years for double-digit growth, and we completed
acquisitions totaling nearly $1 billion comprising 7.7 million square feet.
"The importance of finishing the year with strong momentum heading into
the next cannot be underestimated. We will continue in 2005 and beyond to work
hard on all the fundamentals that have contributed to our prior success. We are
proud of our track record as a public company and committed to continuing to
produce enhanced value for our shareholders."
PORTFOLIO OCCUPANCY*
December 31,
2004 2003
------------- -------------
Portfolio occupancy: 94.0% 93.1%
Mall portfolio 94.3% 94.2%
Stabilized malls (66) 94.4% 94.4%
Non-stabilized malls (3) 92.8% 87.7%
Associated centers (26) 91.8% 88.4%
Community centers (12) 94.0% 89.6%
<FN>
*Figures exclude the community centers that were contributed in Phases I & II of
the Galileo America joint venture transaction.
</FN>
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CBL Reports Fourth Quarter Results
Page 3
February 2, 2005
ACQUISITIONS
The Company completed the acquisition of two malls during the quarter
for a total consideration of $249.4 million including the assumption of $41.6
million of non-recourse, fixed rate debt. Northpark Mall is a
991,076-square-foot mall located in Joplin, MO, and Mall del Norte, located in
Laredo, TX, is 1,198,199-square-feet.
PROPERTY SALES
During the fourth quarter the Company sold one community center, 34th
Street Crossing in St. Petersburg, FL.
Subsequent to quarter end, the Company completed the final phase of the
joint venture with Galileo America REIT by transferring two power centers, one
community center and one community center expansion for a total consideration of
$58.6 million. The total transaction value of the three phases of the Galileo
joint venture was approximately $562.8 million with a total estimated GAAP gain
of $99.4 million.
OUTLOOK AND GUIDANCE
Based on today's outlook and the Company's fourth quarter results, the
Company is offering guidance for 2005 FFO in the range of $5.66 to $5.74 per
share. The full year guidance assumes NOI growth in the range of 2% to 3% and
excludes the impact of any future acquisitions, termination fee income, gains on
sales of outparcels, or gains on sales of non-operating properties. The Company
expects to update its annual guidance after each quarter's results.
Low High
------ -------
Expected diluted earnings per common share $2.78 $2.86
Adjust to fully converted shares from common shares (1.23) (1.26)
------ -------
Expected earnings per diluted, fully converted common share 1.55 1.60
Add: depreciation and amortization 2.88 2.88
Add: minority interest in earnings of Operating Partnership 1.23 1.26
------ -------
Expected FFO per diluted, fully converted common share $5.66 $5.74
====== =======
INVESTOR CONFERENCE CALL AND SIMULCAST
CBL & Associates Properties, Inc. will conduct a conference call at 10:00
am EST on February 3, 2005, to discuss the fourth quarter and year-end results.
The number to call for this interactive teleconference is 913-981-5508. A
seven-day replay of the conference call will be available by dialing
719-457-0820 and entering the passcode 508154. 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., fourth quarter and
year-end 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 fourth quarter and year-end 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 February 3, 2005, beginning at 10:00
a.m. EST. The online replay will follow shortly after the call and continue
through February 17, 2005.
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
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CBL Reports Fourth Quarter Results
Page 4
February 2, 2005
of the operating performance of the Company's properties without giving effect
to real estate depreciation and amortization, which assumes the value of real
estate assets decline predictably over time. Since values of well-maintained
real estate assets have historically risen or fallen with market conditions, the
Company believes that FFO enhances investors' understanding of the Company's
operating performance.
FFO does not represent cash flow from operations as defined by accounting
principles generally accepted in the United States, is not necessarily
indicative of cash available to fund all cash flow needs and should not be
considered as an alternative to net income for purposes of evaluating the
Company's operating performance or to cash flow as a measure of liquidity.
Same-Center Net Operating Income
Net operating income ("NOI") is a supplemental measure of the operating
performance of the Company's shopping centers. The Company defines NOI as
operating revenues (rental revenues, tenant reimbursements and other income)
less property operating expenses (property operating, real estate taxes and
maintenance and repairs). Similar to FFO, the Company computes NOI based on its
pro rata share of both consolidated and unconsolidated properties. The Company's
definition of NOI may be different than that used by other companies and,
accordingly, the Company's NOI may not be comparable to that of other companies.
A reconciliation of same-center NOI to net income is located at the end of this
earnings release.
Since NOI includes only those revenues and expenses related to the
continuing operations of its shopping center properties, the Company believes
that same-center NOI provides a measure that reflects trends in occupancy rates,
rental rates and operating costs and the impact of those trends on the Company's
results of operations.
Pro Rata Share of Debt
The Company presents debt based on its pro rata ownership share
(including the Company's pro rata share of unconsolidated affiliates and
excluding minority investors' share of consolidated properties) because it
believes this provides investors a clearer understanding of the Company's total
debt obligations which affect the Company's liquidity. A reconciliation of the
Company's pro rata share of debt to the amount of debt on the Company's
consolidated balance sheet is located at the end of this earnings release.
CBL & Associates Properties, Inc. is the fourth largest mall REIT 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 170
properties, including 69 enclosed regional malls. The properties are located in
28 states and total 73.0 million-square-feet including 2.0 million-square-feet
of non-owned shopping centers managed for third parties. CBL has ten projects
under construction totaling approximately 1.9 million-square-feet including one
regional mall - Imperial Valley Mall in the Imperial Valley region of
California, an open-air shopping center in Southaven (Memphis, TN), MS, one
associated center, three community centers and four 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.
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 Fourth Quarter Results
Page 5
February 2, 2005
CBL & Associates Properties, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
--------- --------- --------- ---------
REVENUES:
Minimum rents $ 134,126 $ 115,267 $ 478,011 $ 427,733
Percentage rents 5,502 3,158 15,957 12,907
Other rents 8,776 7,220 16,102 12,633
Tenant reimbursements 60,290 47,114 219,205 193,022
Management, development and leasing fees 3,412 1,579 9,791 5,525
Other 4,299 3,435 20,098 14,176
--------- --------- --------- ---------
Total revenues 216,405 177,773 759,164 665,996
--------- --------- --------- ---------
EXPENSES:
Property operating 29,587 26,762 115,345 103,037
Depreciation and amortization 38,812 31,297 142,509 113,307
Real estate taxes 15,555 11,854 58,301 51,573
Maintenance and repairs 11,913 10,082 43,726 39,774
General and administrative 10,832 10,170 35,338 30,395
Loss on impairment of real estate assets 3,080 - 3,080 -
Other 2,737 4,130 16,373 11,489
--------- --------- --------- ---------
Total expenses 112,516 94,295 414,672 349,575
--------- --------- --------- ---------
Income from operations 103,889 83,478 344,492 316,421
Interest income 933 681 3,355 2,485
Interest expense (47,945) (39,990) (177,219) (153,321)
Loss on extinguishment of debt - - - (167)
Gain on sales of real estate assets 2,970 72,832 29,272 77,765
Equity in earnings of unconsolidated affiliates 3,355 1,531 10,308 4,941
Minority interest in earnings:
Operating partnership (25,688) (50,681) (85,186) (106,532)
Shopping center properties (1,333) (747) (5,365) (2,758)
--------- --------- --------- ---------
Income before discontinued operations 36,181 67,104 119,657 138,834
Operating income of discontinued operations 21 471 609 1,263
Gain on discontinued operations - 474 845 4,042
--------- --------- --------- ---------
Net income 36,202 68,049 121,111 144,139
Preferred dividends (5,061) (7,566) (18,309) (19,633)
--------- --------- --------- ---------
Net income available to common shareholders $ 31,141 $ 60,483 $102,802 $124,506
========= ========= ========= =========
Basic per share data:
Income before discontinued operations, net of preferred dividends $ 1.00 $ 1.98 $ 3.29 $ 3.98
Discontinued operations 0.00 0.03 0.05 0.18
--------- --------- --------- ---------
Net income available to common shareholders $ 1.00 $ 2.01 $ 3.34 $ 4.16
========= ========= ========= =========
Weighted average common shares outstanding 31,075 30,101 30,801 29,936
Diluted per share data:
Income before discontinued operations, net of preferred dividends $ 0.96 $ 1.89 $ 3.17 $ 3.82
Discontinued operations 0.00 0.03 0.04 0.17
--------- --------- --------- ---------
Net income available to common shareholders $ 0.96 $ 1.92 $ 3.21 $ 3.99
========= ========= ========= =========
Weighted average common and potential dilutive
common shares outstanding 32,294 31,511 32,002 31,193
CBL Reports Fourth Quarter Results
Page 6
February 2, 2005
The Company's calculation of FFO is as follows (in thousands, except per share
data):
Three Months Ended Year Ended
December 31, December 31,
----------------------------------------------------
2004 2003 2004 2003
--------- --------- ---------- ----------
Net income available to common shareholders $ 31,141 $ 60,483 $ 102,802 $ 124,506
Add:
Depreciation and amortization from consolidated properties 38,812 31,297 142,509 113,307
Depreciation and amortization from unconsolidated affiliates 1,539 1,306 6,144 4,307
Depreciation and amortization from discontinued operations 13 91 121 484
Minority interest in earnings of operating partnership 25,688 50,681 85,186 106,532
Less:
(Gain) loss on sales of operating real estate assets 69 (71,886) (23,696) (71,886)
Minority investors' share of depreciation and amortization (331) (288) (1,230) (1,111)
Gain on discontinued operations - (474) (845) (4,042)
Depreciation and amortization of non-real estate assets (159) (125) (586) (508)
--------- --------- ---------- ----------
Funds from operations $ 96,772 $ 71,085 $ 310,405 $ 271,589
========= ========= ========== ==========
Funds from operations applicable to Company shareholders $ 53,028 $ 38,676 $ 169,725 $ 146,552
========= ========= ========== ==========
Basic per share data:
Funds from operations $ 1.71 $ 1.28 $ 5.53 $ 4.90
========= ========= ========== ==========
Weighted average common shares outstanding with operating
partnership units fully converted 56,709 55,324 56,140 55,477
Diluted per share data:
Funds from operations $ 1.67 $ 1.25 $ 5.41 $ 4.79
========= ========= ========== ==========
Weighted average common and potential dilutive common shares
outstanding with operating partnership units fully converted 57,927 56,734 57,342 56,735
SUPPLEMENTAL FFO INFORMATION:
Lease termination fees $ 521 $ 2,451 $ 3,864 $ 4,552
Lease termination fees per share $ 0.01 $ 0.04 $ 0.07 $ 0.08
Straight-line rental income $ 484 $ 605 $ 2,688 $ 3,908
Straight-line rental income per share $ 0.01 $ 0.01 $ 0.05 $ 0.07
Gains on outparcel sales $ 1,226 $ 1,392 $ 3,449 $ 6,195
Gains on outparcel sales per share $ 0.02 $ 0.02 $ 0.06 $ 0.11
Amortization of acquired above- and below-market leases $ 1,280 $ 250 $ 3,656 $ 332
Amortization of acquired above- and below-market leases per share $ 0.02 $ - $ 0.06 $ 0.01
Amortization of debt premiums $ 1,698 $ 646 $ 5,418 $ 646
Amortization of debt premiums per share $ 0.03 $ 0.01 $ 0.09 $ 0.01
Gain on sales of non operating properties $ 2,965 $ - $ 4,285 $ -
Gain on sales of non operating properties per share $ 0.05 $ - $ 0.07 $ -
Loss on impairment of real estate assets $ (3,080) $ - $ (3,080) $ -
Loss on impairment of real estate assets per share $ (0.05) $ - $ (0.05) $ -
CBL Reports Fourth Quarter Results
Page 7
February 2, 2005
Same-Center Net Operating Income
(Dollars in thousands)
Three Months Ended Year Ended
December 31, December 31,
-------------------------------------------
2004 2003 2004 2003
--------------------- --------------------
Net income $ 36,202 $ 68,049 $ 121,111 $144,139
Adjustments:
Depreciation and amortization 38,812 31,297 142,509 113,307
Depreciation and amortization from unconsolidated affiliates 1,539 1,306 6,144 4,307
Depreciation and amortization from discontinued operations 13 91 121 484
Minority investors' share of depreciation and amortization in
shopping center properties (331) (288) (1,230) (1,111)
Interest expense 47,945 39,990 177,219 153,321
Interest expense from unconsolidated affiliates 2,433 2,075 7,169 8,563
Interest expense from discontinued operations - 13 20 52
Minority investors' share of interest expense in
shopping center properties (319) (397) (1,451) (1,650)
Loss on extinguishment of debt - - - 167
Loss on extinguishment of debt in discontinued operations - - 53 -
Abandoned projects expense 400 1,903 3,714 2,056
Gain on sales of real estate assets (2,970) (72,832) (29,272) (77,765)
Loss on impairment of real estate assets 3,080 - 3,080 -
Gain on sales of real estate assets of unconsolidated affiliates (1,147) - (1,886) -
Minority interest in earnings of operating partnership 25,688 50,681 85,186 106,532
Gain on discontinued operations - (474) (845) (4,042)
----------- --------- ---------- ---------
Operating partnership's share of total NOI 151,345 121,414 511,642 448,360
General and administrative expenses 10,832 10,170 35,338 30,395
Management fees and non-property level revenues (3,525) (2,628) (14,248) (10,959)
----------- --------- ---------- ---------
Operating partnership's share of property NOI 158,652 128,956 532,732 467,796
NOI of non-comparable centers (35,472) (13,638) (104,561) (52,653)
----------- --------- ---------- ---------
Total same center NOI $ 123,180 $115,318 $ 428,171 $415,143
=========== ========= ========== =========
Malls $ 113,679 $106,163 $ 389,378 $381,017
Associated centers 5,118 5,291 19,237 18,156
Community centers 1,557 1,447 9,104 8,437
Other 2,826 2,417 10,452 7,533
----------- --------- ---------- ---------
Total same center NOI $ 123,180 $115,318 $ 428,171 $415,143
=========== ========= ========== =========
Percentage Change:
Malls 7.1% 2.2%
Associated centers -3.3% 6.0%
Community centers 7.6% 7.9%
Other 16.9% 38.7%
----------- ----------
Total same center NOI 6.8% 3.1%
=========== ==========
CBL Reports Fourth Quarter Results
Page 8
February 2, 2005
Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
December 31, 2004
----------------------------------------------------
Fixed Rate Variable Rate Total
------------------ -------------- -----------------
Consolidated debt $ 2,688,192 $ 683,493 $ 3,371,685
Minority investors' share of consolidated debt (52,914) - (52,914)
Company's share of unconsolidated affiliates' debt 104,114 68,908 173,022
------------------ -------------- -----------------
Company's share of consolidated and unconsolidated debt $ 2,739,392 $ 752,401 $ 3,491,793
================== ============== =================
Weighted average interest rate 6.35% 3.44% 5.72%
================== ============== =================
December 31, 2003
----------------------------------------------------
Fixed Rate Variable Rate Total
------------------ -------------- -----------------
Consolidated debt $ 2,256,544 $ 481,558 $ 2,738,102
Minority investors' share of consolidated debt (19,577) - (19,577)
Company's share of unconsolidated affiliates' debt 57,985 77,136 135,121
------------------ -------------- -----------------
Company's share of consolidated and unconsolidated debt $ 2,294,952 $ 558,694 $ 2,853,646
================== ============== =================
Weighted average interest rate 6.64% 2.39% 5.81%
================== ============== =================
Debt-To-Total-Market Capitalization Ratio as of December 31, 2004
(In thousands, except stock price)
Shares
Outstanding Stock Price (1) Value
------------------ -------------- -----------------
Common stock and operating partnership units 56,964 $ 76.35 $74,349,201
8.75% Series B Cumulative Redeemable Preferred Stock 2,000 50.00 100,000
7.75% Series C Cumulative Redeemable Preferred Stock 460 250.00 115,000
7.375% Series D Cumulative Redeemable Preferred Stock 700 250.00 175,000
-----------------
Total market equity 4,739,201
Company's share of total debt 3,491,793
-----------------
Total market capitalization $ 8,230,994
=================
Debt-to-total-market capitalization ratio 42.4%
=================
(1) Stock price for common stock and operating partnership units equals the
closing price of the common stock on December 31, 2004. The stock price for the
preferred stock represents the liquidation preference of each respective series
of preferred stock.
Reconciliation of Shares and Operating Partnership Units Outstanding
(In thousands)
Three Months Ended Year Ended
December 31, December 31,
---------------------------------- ---------------------------------
2004: Basic Diluted Basic Diluted
-------------- ------------------ -------------- -----------------
Weighted average shares - EPS 31,075 32,294 30,801 32,002
Weighted average operating partnership units 25,634 25,633 25,339 25,340
-------------- ------------------ -------------- -----------------
Weighted average shares- FFO 56,709 57,927 56,140 57,342
============== ================== ============== =================
2003:
Weighted average shares - EPS 30,101 31,511 29,936 31,193
Weighted average operating partnership units 25,223 25,223 25,541 25,542
-------------- ------------------ -------------- -----------------
Weighted average shares- FFO 55,324 56,734 55,477 56,735
============== ================== ============== =================
Dividend Payout Ratio Three Months Ended Year Ended
December 31, December 31,
---------------------------------- ---------------------------------
2004 2003 2004 2003
-------------- ------------------ -------------- -----------------
Dividend per share $ 0.8125 $ 0.655 $ 2.9875 $ 2.690
FFO per diluted, fully converted share $ 1.67 $ 1.25 $ 5.41 $ 4.79
-------------- ------------------ -------------- -----------------
Dividend payout ratio 48.7% 52.4% 55.2% 56.2%
============== ================== ============== =================
CBL Reports Fourth Quarter Results
Page 9
February 2, 2005
Consolidated Balance Sheets
(Preliminary and unaudited, in thousands)
December 31,
2004 2003
----------- -----------
ASSETS
Real estate assets:
Land $ 659,782 $ 578,310
Buildings and improvements 4,676,301 3,678,074
----------- -----------
5,336,083 4,256,384
Less: accumulated depreciation (581,303) (467,614)
----------- -----------
4,754,780 3,788,770
Real estate assets held for sale 61,607 64,354
Developments in progress 78,393 59,096
----------- -----------
Net investment in real estate 4,894,780 3,912,220
Cash and cash equivalents 25,766 20,332
Cash in escrow - 78,476
Receivables:
Tenant, net of allowance 38,409 42,165
Other 13,706 3,033
Mortgage notes receivable 27,804 36,169
Investment in unconsolidated affiliates 84,782 96,450
Other assets 119,253 75,465
----------- -----------
$5,204,500 $4,264,310
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage and other notes payable $ 3,359,466 $ 2,709,348
Mortgage notes payable on real estate assets held for sale 12,213 28,754
Accounts payable and accrued liabilities 212,064 161,477
----------- -----------
Total liabilities 3,583,743 2,899,579
----------- -----------
Commitments and contingencies
Minority interests 566,606 527,431
----------- -----------
Shareholders' equity:
Preferred stock, $.01 par value 32 25
Common stock, $.01 par value 313 303
Additional paid-in capital 1,025,792 817,613
Deferred compensation (3,081) (1,607)
Retained earnings 31,095 20,966
----------- -----------
Total shareholders' equity 1,054,151 837,300
----------- -----------
$5,204,500 $4,264,310
=========== ===========
<FN>
The balance sheet above is preliminary as of the date of this report. Please
refer to the Company's Annual Report on Form 10-K when filed for a complete
balance sheet as of December 31, 2004.
</FN>