Exhibit 99.1
{LETTERHEAD OF CBL & ASSOCIATES PROPERTIES, INC.]
Contact: Katie Reinsmidt
Director, Investor Relations
(423) 855-0001
CBL & ASSOCIATES PROPERTIES REPORTS THIRD QUARTER RESULTS
o FFO per share rose 50.8% to $0.98 in the third quarter.
o Same-center NOI for the quarter and nine-months ended September 30,
2005, rose 6.4% and 6.9%, respectively.
o Same store sales improved by 3.3% year-to-date.
o Portfolio occupancy rose 90 bps to 93.3% as of September 30, 2005.
o Declared 12.6% increase in common dividend to $1.83 per share - fourth
consecutive double-digit annual increase.
CHATTANOOGA, Tenn. (October 27, 2005) CBL & Associates Properties, Inc.
(NYSE:CBL) announced results for the third quarter ended September 30, 2005. 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. Per
share amounts have been adjusted to reflect the two-for-one split of the
Company's common shares, effective June 16, 2005.
Net income available to common shareholders for the third quarter ended
September 30, 2005, was $60,093,000 compared with $19,764,000 for the prior-year
period representing an increase of 204.1%. Net income available to common
shareholders per diluted share was $0.92 in the third quarter ended September
30, 2005, compared with $0.31 for the prior-year period, representing an
increase of 196.8%. Net income available to common shareholders for the third
quarter ended September 30, 2005 included gains and fee income of $39.8 million
($72.5 million before deduction for minority interest in earnings of the
operating partnership) resulting from the recent transaction with Galileo
America, LLC.
Net income available to common shareholders for the nine months ended
September 30, 2005, was $106,247,000 compared with $71,661,000 for the nine
months ended September 30, 2004, representing an increase of 48.3%. On a diluted
per share basis, net income available to common shareholders for the nine months
ended September 30, 2005, was $1.64 compared with $1.13 in the prior-year
period, representing an increase of 45.1%. Net income available to common
shareholders for the nine months ended September 30, 2005, included gains and
fee income of $39.8 million ($72.5 million before deduction for minority
interest in earnings of the operating partnership) resulting from the recent
transaction with Galileo America, LLC.
Funds from operations (FFO) increased 52.1% to $114,410,000 for the third
quarter of 2005 from $75,235,000 for the third quarter of 2004. FFO per share on
a diluted, fully converted basis increased 50.8% to $0.98 for the third quarter
of 2005 from $0.65 in the prior-year period. FFO increased 33.9% to $286,074,000
for the nine months ended September 30, 2005 from $213,633,000 for the nine
months ended September 30, 2004. FFO per share increased 31.6% on a diluted,
fully converted basis for the nine months ended September 30, 2005, to $2.46
from $1.87 per share in the prior-year period. FFO for the quarter and nine
months ended September 30, 2005 included gains and fee income of $0.26 per share
resulting from the recent transaction with Galileo America, LLC.
HIGHLIGHTS
|X| Effective with the fourth quarter of 2005, the regular quarterly cash
dividend for the Company's common stock will be increased 12.6% to
$0.4575 per share from $0.40625 per share. The increase represents an
annualized dividend distribution of $1.83 per share and marks CBL's
fourth consecutive annual double-digit common dividend increase.
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CBL Reports Third Quarter Results
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October 27, 2005
|X| Total revenues increased 15.8% in the third quarter 2005 to
$224,169,000 from $193,636,000 in the prior-year period. Total
revenues increased 17.1% in the nine months ended September 30, 2005
to $634,070,000 from $541,298,000 in the comparable period a year ago.
|X| Same center net operating income for the portfolio improved for the
quarter and nine months ended September 30, 2005, by 6.4% and 6.9%,
respectively, compared with a 4.1% and 1.9% increase, respectively,
for the prior-year periods.
|X| Same-store sales for mall tenants of 10,000 square feet or less for
stabilized malls for the nine months ended September 30, 2005,
increased 3.3% for those tenants who have reported sales, compared
with a 4.0% increase for the prior year period.
|X| The debt-to-total-market capitalization ratio as of September 30,
2005, was 42.3% based on the common stock closing price of $40.99 and
a fully converted common stock share count of 115,338,000 shares as of
the same date. The debt-to-total-market capitalization ratio as of
September 30, 2004, was 48.2% based on the split-adjusted common stock
closing price of $30.475 and a fully converted common stock share
count of 113,702,000 shares as of the same date.
|X| Consolidated and unconsolidated variable rate debt of $979,702,000
represents 11.0% of the total market capitalization for the Company
and 26.1% of the Company's share of total consolidated and
unconsolidated debt.
CBL's Chairman and Chief Executive Officer, Charles B. Lebovitz, said, "The
continued strong pace of year-over-year growth in funds from operations and
same-center NOI reflects the number of new, viable opportunities we have been
able to source in today's marketplace and the additional growth opportunities we
continue to generate within our existing portfolio. With approximately $1.1
billion in acquisitions and operating joint ventures announced to-date and
anticipated to close in 2005, we are well on our way to completing another year
of impressive acquisitions. We have also been able to reward our shareholders in
the form of today's common stock dividend increase and the recently announced
one-time special dividend.
"With every new investment, we assess the long-term growth potential of the
property as well as the near-term impact. In doing so, we have been able to
consistently produce higher overall returns from our acquisitions through
redevelopment and expansions, specialty leasing programs, and aggressive leasing
and marketing programs. The level of acquisition and development activity so far
this year provides a solid base on which to add significant value through these
strategies.
"In addition to the growth from our investment activities, we remain
confident in the strength of the retail environment in our markets and at our
malls and open-air centers. Retailers continue to execute active expansion plans
nationwide and introduce new concepts. Retailer demand has translated into
strong leasing activity at our properties and opportunities to retenant with
more productive retailers which should result in higher releasing and rollover
spreads. With several renovations and redevelopments underway in our portfolio,
we expect this favorable environment to provide opportunity for continued
growth."
PORTFOLIO OCCUPANCY
September 30,
2005 2004
------------- -------------
Portfolio occupancy 93.3% 92.4%
Mall portfolio 93.2% 92.7%
Stabilized malls (69) 93.4% 92.7%
Non-stabilized malls (3) 88.0% 91.3%
Associated centers (28) 94.5% 90.4%
Community centers (7) 92.8% 93.2%
ACQUISITIONS
In October, CBL announced that it had entered into a definitive agreement
to acquire Oak Park Mall in Overland Park (Kansas City), KS; Hickory Point Mall
in Decatur, IL; and Eastland Mall in Bloomington, IL. The transaction is
expected to close in November, subject to the Company's completion of customary
closing conditions.
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October 27, 2005
DISPOSITIONS
During the quarter the Company announced that it had completed the sale of
its 8.4% equity interest in and management and advisory contracts with Galileo
America, LLC, a joint venture between CBL and Galileo America Inc., for a total
consideration of approximately $100.0 million.
OTHER SIGNIFICANT EVENTS
Subsequent to the quarter end, the Richard E. Jacobs Group, Inc and CBL
announced that they have entered into a definitive agreement to form a 50/50
joint venture to own Triangle Town Center and its associated and lifestyle
centers, Triangle Town Place and Triangle Town Commons, in Raleigh, NC. Upon
closing CBL will assume management, leasing and any future development
responsibilities of the property.
In October, the Company announced that the Board of Directors had declared
a special one-time cash dividend for the Company's Common Stock of $0.09 per
share. The dividend is payable on January 16, 2006, to shareholders of record as
of December 30, 2005.
OUTLOOK AND GUIDANCE
Based on today's outlook and the Company's third quarter results, the
Company is providing guidance for 2005 FFO in the range of $3.33 to $3.37 per
share. The full year guidance assumes NOI growth in the range of 4.5% to 5.5%
and excludes the impact of any future unannounced acquisitions, lease
termination fee income, gains on sales of outparcels, and 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 $2.10 $2.14
Adjust to fully converted shares from common shares (0.92) (0.94)
----- -----
Expected earnings per diluted, fully converted common share 1.18 1.20
Add: depreciation and amortization 1.56 1.56
Add: minority interest in earnings of Operating Partnership 0.96 0.98
Less: gain on sales of interest in Galileo (0.37) (0.37)
----- -----
Expected FFO per diluted, fully converted common share $3.33 $3.37
===== =====
INVESTOR CONFERENCE CALL AND SIMULCAST
CBL & Associates Properties, Inc. will conduct a conference call at 10:00
a.m. EDT on October 28, 2005, to discuss the third quarter results. The number
to call for this interactive teleconference is 913-981-5532. A seven-day replay
of the conference call will be available by dialing 719-457-0820 and entering
the passcode 4757878. 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 our website at
cblproperties.com or contact Investor Relations at 423-490-8292.
The Company will also provide an online Web simulcast and rebroadcast of
its 2005 third 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 cblproperties.com, as well as www.streetevents.com and www.earnings.com,
on October 28, 2005, beginning at 10:00 a.m. EDT. The online replay will follow
shortly after the call and continue through November 11, 2005.
CBL is the fourth largest mall REIT in North America and the largest owner
of malls and shopping centers in the Southeast, ranked by GLA. CBL owns, holds
interests in or manages 123 properties, including 73 regional malls/open-air
centers. The properties are located in 24 states and total 68.0 million square
feet including 2.0 million square feet of non-owned shopping centers managed for
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CBL Reports Third Quarter Results
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October 27, 2005
third parties. CBL currently has eight projects under construction totaling 2.0
million square feet including open-air shopping centers located in Ft. Myers,
FL, and Stillwater, OK, one community center, one associated center and four
expansions. Additionally, CBL has three malls under contract for purchase and
one mall under contract for joint venture ownership comprising approximately 4.4
million square feet. In addition to its office in Chattanooga, TN, CBL has a
regional office in Boston (Waltham), MA. Additional information can be found at
cblproperties.com.
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 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.
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 Third Quarter Results
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October 27, 2005
CBL & Associates Properties, Inc.
Consolidated Statements of Operatiosn
(Unaudited; in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
-----------------------------------------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
REVENUES:
Minimum rents $ 136,676 $ 120,859 $ 394,485 $ 342,796
Percentage rents 3,114 2,290 12,972 10,447
Other rents 2,400 2,084 8,320 7,326
Tenant reimbursements 65,498 60,032 184,598 158,551
Management, development and leasing fees 11,109 2,868 17,927 6,379
Other 5,372 5,503 15,768 15,799
---------- ---------- ---------- ----------
Total revenues 224,169 193,636 634,070 541,298
---------- ---------- ---------- ----------
EXPENSES:
Property operating 35,513 31,642 95,539 85,637
Depreciation and amortization 46,038 37,901 130,663 103,335
Real estate taxes 16,283 15,407 47,626 42,582
Maintenance and repairs 12,402 11,283 36,673 31,650
General and administrative 10,221 8,280 28,641 24,505
Loss on impairment of real estate assets - - 262 -
Other 3,769 5,681 10,256 13,636
---------- ---------- ---------- ----------
Total expenses 124,226 110,194 349,660 301,345
---------- ---------- ---------- ----------
Income from operations 99,943 83,442 284,410 239,953
Interest income 1,937 836 6,214 2,422
Interest expense (52,646) (46,042) (151,822) (129,274)
Loss on extinguishment of debt (44) - (928) -
Gain on sales of real estate assets 46,485 1,522 53,581 26,302
Gain on sales of management contracts 21,619 - 21,619 -
Equity in earnings of unconsolidated affiliates 995 1,407 6,769 6,953
Minority interest in earnings:
Operating partnership (49,455) (16,624) (87,176) (59,498)
Shopping center properties (1,086) (974) (3,661) (4,034)
---------- ---------- ---------- ----------
Income before discontinued operations 67,748 23,567 129,006 82,824
Operating income (loss) of discontinued operations (15) 288 251 1,240
Gain (loss) on discontinued operations 2 325 (84) 845
---------- ---------- ---------- ----------
Net income 67,735 24,180 129,173 84,909
Preferred dividends (7,642) (4,416) (22,926) (13,248)
---------- ---------- ---------- ----------
Net income available to common shareholders $ 60,093 $ 19,764 $ 106,247 $ 71,661
========== ========== ========== ==========
Basic per share data:
Income before discontinued operations,
net of preferred dividends $ 0.95 $ 0.31 $ 1.69 $ 1.14
Discontinued operations - 0.01 - 0.03
---------- ---------- ---------- ----------
Net income available to common shareholders $ 0.95 $ 0.32 $ 1.69 $ 1.17
========== ========== ========== ==========
Weighted average common shares outstanding 62,940 61,540 62,693 61,130
Diluted per share data:
Income before discontinued operations,
net of preferred dividends $ 0.92 $ 0.30 $ 1.63 $ 1.09
Discontinued operations - 0.01 0.01 0.04
---------- ---------- ---------- ----------
Net income available to common shareholders $ 0.92 $ 0.31 $ 1.64 $ 1.13
========== ========== ========== ==========
Weighted average common and potential dilutive
common shares outstanding 65,253 63,966 64,973 63,554
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CBL Reports Third Quarter Results
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The Company's calculation of FFO is as follows (in thousands, except per share
data):
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------- --------------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Net income available to common shareholders $ 60,093 $ 19,764 $ 106,247 $ 71,661
Add:
Depreciation and amortization from consolidated properties 46,038 37,901 130,663 103,335
Depreciation and amortization from unconsolidated affiliates 2,207 1,862 6,127 4,605
Depreciation and amortization from discontinued operations - 125 - 470
Minority interest in earnings of operating partnership 49,455 16,624 87,176 59,498
Less:
Gain on sales of operating real estate assets (42,882) (200) (42,708) (23,765)
Minority investors' share of depreciation and amortization (311) (302) (962) (899)
(Gain) loss on discontinued operations (2) (325) 84 (845)
Depreciation and amortization of non-real estate assets (188) (214) (553) (427)
---------- ---------- ---------- ----------
Funds from operations $ 114,410 $ 75,235 $ 286,074 $ 213,633
========== ========== ========== ==========
Funds from operations applicable to Company shareholders $ 62,761 $ 40,883 $ 157,052 $ 116,708
========== ========== ========== ==========
Basic per share data:
Funds from operations $ 1.00 $ 0.66 $ 2.51 $ 1.91
========== ========== ========== ==========
Weighted average common shares outstanding with operating
partnership units fully converted 114,737 113,248 114,197 111,898
Diluted per share data:
Funds from operations $ 0.98 $ 0.65 $ 2.46 $ 1.87
========== ========== ========== ==========
Weighted average common and potential dilutive common shares
outstanding with operating partnership units fully converted 117,050 115,674 116,477 114,322
SUPPLEMENTAL FFO INFORMATION:
Lease termination fees $ 1,221 $ 736 $ 3,648 $ 3,336
Lease termination fees per share $ 0.01 $ 0.01 $ 0.03 $ 0.03
Straight-line rental income $ 1,671 $ 965 $ 4,765 $ 2,207
Straight-line rental income per share $ 0.01 $ 0.01 $ 0.04 $ 0.02
Gains on outparcel sales $ 2,544 $ 42 $ 11,177 $ 2,078
Gains on outparcel sales per share $ 0.02 $ - $ 0.10 $ 0.02
Amortization of acquired above- and below-market leases $ 2,186 $ 1,139 $ 4,629 $ 2,381
Amortization of acquired above- and below-market
leases per share $ 0.02 $ 0.01 $ 0.04 $ 0.02
Amortization of debt premiums $ 1,948 $ 1,584 $ 5,605 $ 3,720
Amortization of debt premiums per share $ 0.02 $ 0.01 $ 0.05 $ 0.03
Gain on sales of non operating properties $ 1,288 $ 1,313 $ 2,509 $ 1,313
Gain on sales of non operating properties per share $ 0.01 $ 0.01 $ 0.02 $ 0.01
Loss on impairment of real estate assets $ - $ - $ (262) $ -
Loss on impairment of real estate assets per share $ - $ - $ - $ -
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October 27, 2005
Same-Center Net Operating Income
(Dollars in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Net income $ 67,735 $ 24,180 $ 129,173 $ 84,909
Adjustments:
Depreciation and amortization 46,038 37,901 130,663 103,335
Depreciation and amortization from unconsolidated affiliates 2,207 1,862 6,127 4,605
Depreciation and amortization from discontinued operations - 125 - 470
Minority investors' share of depreciation and amortization in
shopping center properties (311) (302) (962) (899)
Interest expense 52,646 46,042 151,822 129,274
Interest expense from unconsolidated affiliates 3,009 1,658 9,069 4,734
Interest expense from discontinued operations - - - 20
Minority investors' share of interest expense in
shopping center properties (390) (348) (1,160) (1,049)
Loss on extinguishment of debt 44 - 928 -
Abandoned projects expense 336 1,629 474 3,314
Gain on sales of real estate assets and management contracts (68,104) (1,522) (75,200) (26,302)
Loss on impairment of real estate assets - - 262 -
Gain on sales of real estate assets of unconsolidated affiliates (227) - (2,850) (592)
Minority interest in earnings of operating partnership 49,455 16,624 87,176 59,498
(Gain) loss on discontinued operations (2) (325) 84 (845)
---------- ---------- ---------- ----------
Operating partnership's share of total NOI 152,436 127,524 435,606 360,472
General and administrative expenses 10,221 8,280 28,641 24,505
Management fees and non-property level revenues (12,270) (4,886) (24,973) (12,697)
---------- ---------- ---------- ----------
Operating partnership's share of property NOI 150,387 130,918 439,274 372,280
NOI of non-comparable centers (30,016) (17,811) (78,121) (34,289)
---------- ---------- ---------- ----------
Total same center NOI $ 120,371 $ 113,107 $ 361,153 $ 337,991
========== ========== ========== =========
Malls $ 111,212 $ 103,873 $ 333,172 $ 310,455
Associated centers 5,424 5,163 16,519 16,540
Community centers 1,627 2,316 4,976 4,693
Other 2,108 1,755 6,486 6,303
---------- ---------- ---------- ----------
Total same center NOI $ 120,371 $ 113,107 $ 361,153 $ 337,991
========== ========== ========== =========
Percentage Change:
Malls 7.1% 7.3%
Associated centers 5.1% -0.1%
Community centers -29.7% 6.0%
Other 20.1% 2.9%
---------- ----------
Total same center NOI 6.4% 6.9%
========== ==========
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Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
September 30, 2005
----------------------------------------------------
Fixed Rate Variable Rate Total
------------------ -------------- -----------------
Consolidated debt $ 2,710,984 $ 953,102 $ 3,664,086
Minority investors' share of consolidated debt (52,168) - (52,168)
Company's share of unconsolidated affiliates' debt 116,637 26,600 143,237
------------------ -------------- -----------------
Company's share of consolidated and unconsolidated debt $ 2,775,453 $ 979,702 $ 3,755,155
================== ============== =================
Weighted average interest rate 6.37% 4.81% 5.96%
================== ============== =================
September 30, 2004
----------------------------------------------------
Fixed Rate Variable Rate Total
------------------ -------------- -----------------
Consolidated debt $ 2,489,892 $ 804,656 $ 3,294,548
Minority investors' share of consolidated debt (53,144) - (53,144)
Company's share of unconsolidated affiliates' debt 118,588 58,174 176,762
------------------ -------------- -----------------
Company's share of consolidated and unconsolidated debt $ 2,555,336 $ 862,830 $ 3,418,166
================== ============== =================
Weighted average interest rate 6.46% 2.83% 5.54%
================== ============== =================
Debt-To-Total-Market Capitalization Ratio as of September 30, 2005
(In thousands, except stock price)
Shares
Outstanding Stock Price (1) Value
------------------ -------------- -----------------
Common stock and operating partnership units 115,338 $ 40.99 $44,727,705
8.75% Series B Cumulative Redeemable Preferred Stock 2,000 $ 50.00 50.100,000
7.75% Series C Cumulative Redeemable Preferred Stock 460 $ 250.00 250.115,000
7.375% Series D Cumulative Redeemable Preferred Stock 700 $ 250.00 250.175,000
-----------------
Total market equity 5,117,705
Company's share of total debt 3,755,155
-----------------
Total market capitalization $ 8,872,860
=================
Debt-to-total-market capitalization ratio 42.3%
=================
<FN>
(1) Stock price for common stock and operating partnership units equals the
closing price of the common stock on September 30, 2005. The stock price for the
preferred stock represents the liquidation preference of each respective series
of preferred stock.
</FN>
Reconciliation of Shares and Operating Partnership Units Outstanding
(In thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------------- ---------------------------------
2005: Basic Diluted Basic Diluted
-------------- ------------------ -------------- -----------------
Weighted average shares - EPS 62,940 65,253 62,693 64,973
Weighted average operating partnership units 51,797 51,797 51,504 51,504
-------------- ------------------ -------------- -----------------
Weighted average shares- FFO 114,737 117,050 114,197 116,477
============== ================== ============== =================
2004:
Weighted average shares - EPS 61,540 63,966 61,130 63,554
Weighted average operating partnership units 51,708 51,708 50,768 50,768
-------------- ------------------ -------------- -----------------
Weighted average shares- FFO 113,248 115,674 111,898 114,322
============== ================== ============== =================
Dividend Payout Ratio Three Months Ended Nine Months Ended
September 30, September 30,
---------------------------------- ---------------------------------
2005 2004 2005 2004
-------------- ------------------ -------------- -----------------
Weighted average dividend per share $ 0.4111 $ 0.3664 $ 1.2291 $ 1.0956
FFO per diluted, fully converted share $ 0.98 $ 0.65 $ 2.46 $ 1.87
-------------- ------------------ -------------- -----------------
Dividend payout ratio 41.9% 56.4% 50.0% 58.6%
============== ================== ============== =================
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CBL Reports Third Quarter Results
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October 27, 2005
Consolidated Balance Sheets
(Preliminary and unaudited, in thousands)
September 30, December 31,
2005 2004
------------- -------------
ASSETS
Real estate assets:
Land $ 702,250 $ 659,782
Buildings and improvements 5,066,292 4,670,462
------------- -------------
5,768,542 5,330,244
Less: accumulated depreciation (683,390) (575,464)
------------- -------------
5,085,152 4,754,780
Real estate assets held for sale - 61,607
Developments in progress 216,318 78,393
------------- -------------
Net investment in real estate assets 5,301,470 4,894,780
Cash and cash equivalents 36,802 25,766
Receivables:
Tenant, net of allowance 41,232 38,409
Other 3,915 13,706
Mortgage notes receivable 18,104 27,804
Investment in unconsolidated affiliates 80,059 84,782
Other assets 140,507 119,253
------------- -------------
$ 5,622,089 $ 5,204,500
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage and other notes payable $ 3,664,086 $ 3,359,466
Mortgage notes payable on real estate assets held for sale - 12,213
Accounts payable and accrued liabilities 247,273 212,064
------------- -------------
Total liabilities 3,911,359 3,583,743
------------- -------------
Commitments and contingencies
Minority interests 606,179 566,606
------------- -------------
Shareholders' equity:
Preferred stock, $.01 par value 32 32
Common stock, $.01 par value 636 626
Additional paid-in capital 1,052,988 1,025,479
Deferred compensation (9,691) (3,081)
Comprehensive income 310 -
Retained earnings 60,276 31,095
------------- -------------
Total shareholders' equity 1,104,551 1,054,151
------------- -------------
$ 5,622,089 $ 5,204,500
============= =============
<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 September 30, 2005.
</FN>
-END-