Exhibit 99.1
[CBL & ASSOCIATES PROPERTIES LETTERHEAD]
Contact: Katie Reinsmidt
Director, Investor Relations
(423) 855-0001
CBL & ASSOCIATES PROPERTIES REPORTS FOURTH QUARTER
AND ANNUAL 2005 RESULTS
o 2005 FFO per share up 23.2% to $3.34 per share.
o FFO per share rose 6.0% to $0.89 in the fourth quarter.
o Same-center NOI for the quarter and year ended December 31, 2005,
rose 3.1% and 5.8%, respectively.
o Same store sales improved by 4.1% in 2005.
o Portfolio occupancy rose 50bps to 94.5% as of December 31, 2005.
CHATTANOOGA, Tenn. (February 8, 2006) - CBL & Associates Properties, Inc.
(NYSE:CBL) announced results for the fourth quarter and year ended December 31,
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 fourth quarter ended
December 31, 2005, was $25,659,000 compared with $31,141,000 for the prior-year
period, representing a decline of 17.6%. Net income available to common
shareholders per diluted share was $0.40 in the fourth quarter ended December
31, 2005, compared with $0.48 for the prior-year period, representing a decline
of 16.7%. Net income available to common shareholders for the quarter ended
December 31, 2005, included a one-time charge of approximately $5.2 million for
prepayment penalties and the write-off of unamortized deferred financing costs
resulting from favorable refinancing completed in the quarter.
Net income available to common shareholders for the year ended December 31,
2005, was $131,907,000 compared with $102,802,000 for the year ended December
31, 2004, representing an increase of 28.3%. On a diluted per share basis, net
income available to common shareholders for the year ended December 31, 2005,
was $2.03 compared with $1.61 in the prior year, representing an increase of
26.1%. Net income available to common shareholders for the year ended December
31, 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 year ended December 31, 2005, also
included a one-time charge of approximately $5.2 million for prepayment
penalties and the write-off of unamortized deferred financing costs resulting
from favorable refinancing completed in the fourth quarter.
Funds from operations (FFO) increased 7.3% to $103,883,000 for the fourth
quarter of 2005 from $96,772,000 for the fourth quarter of 2004. FFO per share
on a diluted, fully converted basis increased 6.0% to $0.89 for the fourth
quarter of 2005 from $0.84 in the prior-year period. FFO increased 25.6% to
$389,958,000 for the year ended December 31, 2005, from $310,405,000 for the
year ended December 31, 2004. FFO per share increased 23.2% on a diluted, fully
converted basis for the year ended December 31, 2005, to $3.34 from $2.71 per
share in the prior year. FFO for the year ended December 31, 2005, included
gains and fee income of $0.26 per share resulting from the recent transaction
with Galileo America, LLC. FFO for the quarter and year ended December 31, 2005,
included a one-time charge of approximately $0.045 per share for prepayment
penalties and the write-off of unamortized deferred financing costs resulting
from favorable refinancing completed in the quarter.
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CBL Reports Fourth Quarter Results
Page 2
February 8, 2006
HIGHLIGHTS
|X| Total revenues increased 16.9% in the fourth quarter 2005 to
$262,611,000 from $224,700,000 in the prior-year period. Total
revenues increased 16.3% in the year ended December 31, 2005, to
$908,712,000 from $781,433,000 in 2004.
|X| Same center net operating income for the portfolio improved for
the quarter and year ended December 31, 2005, by 3.1% and 5.8%,
respectively, compared with a 6.8% and 3.1% 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 year ended December 31, 2005,
increased 4.1% to $331 per square foot for those tenants who have
reported sales, compared with a 2.8% increase for the prior year
period.
|X| The debt-to-total-market capitalization ratio as of December 31,
2005, was 47.8% based on the common stock closing price of $39.51
and a fully converted common stock share count of 115,438,000
shares as of the same date. The debt-to-total-market
capitalization ratio as of December 31, 2004, was 42.4% based on
the split-adjusted common stock closing price of $38.175 and a
fully converted common stock share count of 113,928,000 shares as
of the same date.
|X| Consolidated and unconsolidated variable rate debt of $1,086,000
represents 11.4% of the total market capitalization for the
Company and 24.0% of the Company's share of total consolidated
and unconsolidated debt.
CBL's Chairman and Chief Executive Officer, Charles B. Lebovitz, said, "The
combination of occupancy gains, healthy rental rate increases from leasing,
continued growth in mall shop sales, and contributions from new developments and
acquisitions led to an impressive performance in the fourth quarter and a strong
finish for the year. The impressive results in 2005 are indicative of our
opportunistic strategy that emphasizes sustainable long-term growth and
financial discipline. We opened 2.5 million square feet of new developments and
expansions during the year with initial unleveraged returns ranging from 9% -
11%. We also completed more than $1.0 billion of acquisitions, all of which were
immediately accretive to earnings and were consistent with our strict investment
criteria and strategic growth objectives. We deployed our capital efficiently to
finance this growth on attractive terms.
"Looking ahead, we are excited about the continued strength in our business
and our focus on dominant regional malls in middle markets where we are
well-positioned to take advantage of continuing population and employment
growth."
PORTFOLIO OCCUPANCY
December 31,
2005 2004
------------- -------------
Portfolio occupancy 94.5% 94.0%
Mall portfolio 94.4% 94.3%
Stabilized malls (74) 94.7% 94.4%
Non-stabilized malls (5) 89.4% 92.8%
Associated centers (30) 94.1% 91.8%
Community centers (6) 95.3% 94.0%
ACQUISITIONS
In November, CBL announced that it had acquired a portfolio of three malls
for a total consideration of $516.9 million. The acquired properties included
Oak Park Mall in Overland Park (Kansas City), KS; Hickory Point Mall in Decatur,
IL; and Eastland Mall in Bloomington, IL.
CBL also announced in November that it had closed on the acquisition of
Layton Hills Mall in Layton (Salt Lake City), UT. CBL acquired the mall for
approximately $121.4 million.
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CBL Reports Fourth Quarter Results
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February 8, 2006
OTHER SIGNIFICANT EVENTS
In November, the Richard E. Jacobs Group, Inc. and CBL announced that they
had formed 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. The joint venture is valued at $283.5 million.
Additionally, during the quarter CBL announced that it had closed on five
separate ten-year fixed rate non-recourse loans totaling $452.0 million with a
weighted average interest rate of 5.0%. The financings replaced seven loans
totaling $289.5 million that had a weighted average interest rate of 7.0% and
were maturing over the next 18-months. As a result of the early extinguishment
of the loans, CBL incurred a one-time charge of approximately $5.2 million for
prepayment penalties and the write-off of unamortized deferred financing costs,
which was included in GAAP Net Income and FFO in the fourth quarter and year
ended December 31, 2005.
OUTLOOK AND GUIDANCE
Based on today's outlook and the Company's fourth quarter results, the
Company is providing guidance for 2006 FFO in the range of $3.28 to $3.33 per
share. The full year guidance assumes same center NOI growth in the range of
2.5% to 3.5% 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 $1.30 $1.35
Adjust to fully converted shares from common shares (0.59) (0.61)
-------- --------
Expected earnings per diluted, fully converted common share 0.71 0.74
Add: depreciation and amortization 1.97 1.97
Add: minority interest in earnings of Operating Partnership 0.60 0.62
-------- --------
Expected FFO per diluted, fully converted common share $3.28 $3.33
======== ========
INVESTOR CONFERENCE CALL AND SIMULCAST
CBL & Associates Properties, Inc. will conduct a conference call at 10:00
a.m. EST on February 9, 2006, to discuss the fourth 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 1458819. 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 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 fourth 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 February 9, 2006, beginning at 10:00 a.m. EST. The online replay will follow
shortly after the call and continue through February 23, 2006.
CBL is one of the largest and most experienced owners and developers of
malls and shopping centers in the country. CBL owns, holds interests in or
manages 132 properties, including 79 regional malls/open-air centers. The
properties are located in 26 states and total 74.0 million square feet including
2.0 million square feet of non-owned shopping centers managed for third parties.
CBL currently has eleven projects under construction totaling 2.3 million square
feet including Phase II of Gulf Coast Town Center in Ft. Myers, FL; two open-air
shopping centers; a community center, two associated center and five expansions.
In addition to its regional office in Boston (Waltham), MA, CBL's corporate
office is located in Chattanooga, TN. Additional information can be found at
cblproperties.com
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CBL Reports Fourth Quarter Results
Page 3
February 8, 2006
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.
Reclassification
Certain prior period amounts in the consolidated statements of operations
have been reclassified to present marketing fund revenues and expenses on a
gross basis in accordance with Emerging Issues Task Force Issue No. 99-19,
Reporting Revenue Gross as a Principal versus Net as an Agent. As a result, the
following amounts in the consolidated statements of operations have changed from
the previously reported amounts for the three months and year ended December 31,
2004: tenant reimbursements have increased by $9,533,000 and $27,281,000
respectively, other revenues have decreased by $789,000 and $3,093,000
respectively, and property operating expenses have increased by $8,744,000 and
$24,188,000 respectively. This reclassification did not change previously
reported amounts of net income available to common shareholders.
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
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February 8, 2006
CBL & Associates Properties, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
------------------------ ------------------------
2005 2004 2005 2004
----------- ----------- ----------- ----------
REVENUES:
Minimum rents $ 155,704 $ 133,782 $ 549,368 $ 476,568
Percentage rents 10,194 5,502 23,166 15,951
Other rents 9,354 8,776 17,674 16,102
Tenant reimbursements 78,754 69,718 278,498 246,016
Management, development and leasing fees 2,594 3,412 20,521 9,791
Other 6,011 3,510 19,485 17,005
----------- ----------- ----------- ----------
Total revenues 262,611 224,700 908,712 781,433
----------- ----------- ----------- ----------
EXPENSES:
Property operating 42,782 38,277 151,280 139,349
Depreciation and amortization 49,564 38,700 179,651 142,012
Real estate taxes 20,741 15,494 68,116 58,066
Maintenance and repairs 13,909 11,879 50,559 43,527
General and administrative 10,556 10,832 39,197 35,338
Loss on impairment of real estate assets 1,072 3,080 1,334 3,080
Other 5,188 2,737 15,444 16,373
----------- ----------- ----------- ----------
Total expenses 143,812 120,999 505,581 437,745
----------- ----------- ----------- ----------
Income from operations 118,799 103,701 403,131 343,688
Interest income 617 933 6,831 3,355
Interest expense (56,361) (47,945) (208,183) (177,219)
Loss on extinguishment of debt (5,243) - (6,171) -
Gain on sales of real estate assets 2 2,970 53,583 29,272
Gain on sales of management contracts - - 21,619 -
Equity in earnings of unconsolidated affiliates 1,726 3,355 8,495 10,308
Minority interest in earnings:
Operating partnership (24,885) (25,688) (112,061) (85,186)
Shopping center properties (1,218) (1,333) (4,879) (5,365)
----------- ----------- ----------- ----------
Income before discontinued operations 33,437 35,993 162,365 118,853
Operating income (loss) of discontinued operations (138) 209 192 1,413
Gain (loss) on discontinued operations 2 - (82) 845
----------- ----------- ----------- ----------
Net income 33,301 36,202 162,475 121,111
Preferred dividends (7,642) (5,061) (30,568) (18,309)
----------- ----------- ----------- ----------
Net income available to common shareholders $ 25,659 $ 31,141 $ 131,907 $ 102,802
=========== =========== =========== ==========
Basic per share data:
Income before discontinued operations, net of preferred dividends $ 0.41 $ 0.50 $ 2.09 $ 1.63
Discontinued operations - - 0.01 0.04
----------- ----------- ----------- ----------
Net income available to common shareholders $ 0.41 $ 0.50 $ 2.10 $ 1.67
=========== =========== =========== ==========
Weighted average common shares outstanding 62,806 62,150 62,956 61,602
Diluted per share data:
Income before discontinued operations, net of preferred dividends $ 0.40 $ 0.48 $ 2.02 $ 1.57
Discontinued operations - - 0.01 0.04
----------- ----------- ----------- ----------
Net income available to common shareholders $ 0.40 $ 0.48 $ 2.03 $ 1.61
=========== =========== =========== ==========
Weighted average common and potential dilutive
common shares outstanding 64,717 64,588 65,115 64,004
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CBL Reports Fourth Quarter Results
Page 6
February 8, 2006
The Company's calculation of FFO is as follows (in thousands, except per share
data):
Three Months Ended Year Ended
December 31, December 31,
------------------------ -------------------------
2005 2004 2005 2004
---------- ----------- ----------- ----------
Net income available to common shareholders $ 25,659 $ 31,141 $131,907 $102,802
Add:
Depreciation and amortization from consolidated properties 49,564 38,700 179,651 142,012
Depreciation and amortization from unconsolidated affiliates 3,083 1,539 9,210 6,144
Depreciation and amortization from discontinued operations 1,284 125 1,860 618
Minority interest in earnings of operating partnership 24,885 25,688 112,061 85,186
Less:
(Gain) loss on sales of operating real estate assets 146 69 (42,562) (23,696)
Minority investors' share of depreciation and amortization (428) (331) (1,390) (1,230)
(Gain) loss on discontinued operations (2) - 82 (845)
Depreciation and amortization of non-real estate assets (308) (159) (861) (586)
---------- ----------- ----------- ----------
Funds from operations $103,883 $ 96,772 $389,958 $310,405
========== =========== =========== ==========
Funds from operations applicable to Company shareholders $ 56,607 $ 53,028 $213,596 $169,725
========== =========== =========== ==========
Basic per share data:
Funds from operations $ 0.90 $ 0.85 $ 3.41 $ 2.76
========== =========== =========== ==========
Weighted average common shares outstanding with operating
partnership units fully converted 115,160 113,418 114,440 112,280
Diluted per share data:
Funds from operations $ 0.89 $ 0.84 $ 3.34 $ 2.71
========== =========== =========== ==========
Weighted average common and potential dilutive common shares
outstanding with operating partnership units fully converted 117,071 115,854 116,599 114,684
SUPPLEMENTAL FFO INFORMATION:
Lease termination fees $ 1,892 $ 521 $ 5,540 $ 3,864
Lease termination fees per share $ 0.02 $ - $ 0.05 $ 0.03
Straight-line rental income $ 1,987 $ 484 $ 6,770 $ 2,684
Straight-line rental income per share $ 0.02 $ - $ 0.06 $ 0.02
Gains on outparcel sales $ 1,258 $ 1,226 $ 12,665 $ 3,449
Gains on outparcel sales per share $ 0.01 $ 0.01 $ 0.11 $ 0.03
Amortization of acquired above- and below-market leases $ 1,874 $ 1,280 $ 6,507 $ 3,656
Amortization of acquired above- and below-market leases per share $ 0.02 $ 0.01 $ 0.06 $ 0.03
Amortization of debt premiums $ 1,842 $ 1,698 $ 7,347 $ 5,418
Amortization of debt premiums per share $ 0.02 $ 0.01 $ 0.06 $ 0.05
Gain (loss) on sales of non operating properties $ (274) $ 2,965 $ 2,245 $ 4,285
Gain on sales of non operating properties per share $ - $ 0.03 $ 0.02 $ 0.04
Loss on impairment of real estate assets $ (1,072) $ (3,080) $ (1,334) $ (3,080)
Loss on impairment of real estate assets per share $ (0.01) $ (0.03) $ (0.01) $ (0.03)
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CBL Reports Fourth Quarter Results
Page 7
February 8, 2006
Same-Center Net Operating Income
(Dollars in thousands)
Three Months Ended Year Ended
December 31, December 31,
--------------------- --------------------
2005 2004 2005 2004
---------- ---------- --------- ----------
Net income $ 33,301 $ 36,202 $162,475 $121,111
Adjustments:
Depreciation and amortization 49,564 38,700 179,651 142,012
Depreciation and amortization from unconsolidated affiliates 3,083 1,539 9,210 6,144
Depreciation and amortization from discontinued operations 1,284 125 1,860 618
Minority investors' share of depreciation and amortization in
shopping center properties (428) (331) (1,390) (1,230)
Interest expense 56,361 47,945 208,183 177,219
Interest expense from unconsolidated affiliates 3,514 2,433 12,583 7,169
Interest expense from discontinued operations - - - 20
Minority investors' share of interest expense in
shopping center properties (799) (319) (1,959) (1,451)
Loss on extinguishment of debt 5,243 - 6,171 53
Abandoned projects expense 86 400 560 3,714
Gain on sales of real estate assets and management contracts (2) (2,970) (75,202) (29,272)
Loss on impairment of real estate assets 1,072 3,080 1,334 3,080
Gain on sales of real estate assets of unconsolidated affiliates (821) (1,147) (3,671) (1,886)
Minority interest in earnings of operating partnership 24,885 25,688 112,061 85,186
(Gain) loss on discontinued operations (2) - 82 (845)
---------- ---------- --------- ----------
Operating partnership's share of total NOI 176,341 151,345 611,948 511,642
General and administrative expenses 10,556 10,832 39,197 35,338
Management fees and non-property level revenues (4,916) (5,322) (29,113) (17,878)
---------- ---------- --------- ----------
Operating partnership's share of property NOI 181,981 156,855 622,032 529,102
NOI of non-comparable centers (41,778) (20,886) (120,872) (55,577)
---------- ---------- --------- ----------
Total same center NOI $140,203 $135,969 $501,160 $473,525
========== ========== ========= ==========
Malls $130,365 $127,132 $ 463,475 $437,305
Associated centers 5,101 5,212 21,607 21,723
Community centers 1,166 771 4,668 3,976
Other 3,571 2,854 11,410 10,521
---------- ---------- --------- ----------
Total same center NOI $140,203 $135,969 $501,160 $473,525
========== ========== ========= ==========
Percentage Change:
Malls 2.5% 6.0%
Associated centers -2.1% -0.5%
Community centers 51.2% 17.4%
Other 25.1% 8.4%
---------- ---------
Total same center NOI 3.1% 5.8%
========== =========
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CBL Reports Fourth Quarter Results
Page 8
February 8, 2006
Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
December 31, 2005
------------------------------------------------------
Fixed Rate Variable Rate Total
------------------- ------------- ------------------
Consolidated debt $ 3,281,939 $ 1,059,116 $ 4,341,055
Minority investors' share of consolidated debt (51,950) - (51,950)
Company's share of unconsolidated affiliates' debt 216,026 26,600 242,626
------------------- ------------- ------------------
Company's share of consolidated and unconsolidated debt $ 3,446,015 $ 1,085,716 $ 4,531,731
=================== ============= ==================
Weighted average interest rate 5.99% 5.33% 5.83%
=================== ============= ==================
December 31, 2004
------------------------------------------------------
Fixed Rate Variable Rate Total
------------------- ------------- ------------------
Consolidated debt $ 2,688,186 $ 683,493 $ 3,371,679
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 $ 2,739,386 $ 752,401 $ 3,491,787
=================== ============= ==================
Weighted average interest rate 6.35% 3.44% 5.72%
=================== ============= ==================
Debt-To-Total-Market Capitalization Ratio as of December 31, 2005
(In thousands, except stock price)
Shares
Outstanding Stock Price (1) Value
------------------- ------------- ------------------
Common stock and operating partnership units 115,438 $ 39.51 $ 4,560,955
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
7.375% Series D Cumulative Redeemable Preferred Stock 700 $ 250.00 175,000
------------------
Total market equity 4,950,955
Company's share of total debt 4,531,731
------------------
Total market capitalization $ 9,482,686
==================
Debt-to-total-market capitalization ratio 47.8%
==================
<FN>
(1) Stock price for common stock and operating partnership units equals the
closing price of the common stock on December 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 Year Ended
December 31, December 31,
---------------------------------- ---------------------------------
2005: Basic Diluted Basic Diluted
------------- ------------------- ------------- ------------------
Weighted average shares - EPS 62,806 64,717 62,956 65,115
Weighted average operating partnership units 52,354 52,354 51,484 51,484
------------- ------------------- ------------- ------------------
Weighted average shares- FFO 115,160 117,071 114,440 116,599
============= =================== ============= ==================
2004:
Weighted average shares - EPS 62,150 64,588 61,602 64,004
Weighted average operating partnership units 51,268 51,266 50,678 50,680
------------- ------------------- ------------- ------------------
Weighted average shares- FFO 113,418 115,854 112,280 114,684
============= =================== ============= ==================
Dividend Payout Ratio
Three Months Ended Year Ended
December 31, December 31,
---------------------------------- ---------------------------------
2005 2004 2005 2004
------------- ------------------- ------------- ------------------
Weighted average dividend per share $ 0.5478 $ 0.4094 $ 1.7769 $ 1.5012
FFO per diluted, fully converted share $ 0.89 $ 0.84 $ 3.34 $ 2.71
------------- ------------------- ------------- ------------------
Dividend payout ratio 61.6% 48.7% 53.2% 55.4%
============= =================== ============= ==================
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CBL Reports Fourth Quarter Results
Page 9
February 8, 2006
Consolidated Balance Sheets
(Preliminary and unaudited, in thousands)
December 31, December 31,
2005 2004
------------ ------------
ASSETS
Real estate assets:
Land $ 776,989 $ 659,782
Buildings and improvements 5,698,669 4,670,462
------------ ------------
6,475,658 5,330,244
Less: accumulated depreciation (727,907) (575,464)
------------ ------------
5,747,751 4,754,780
Real estate assets held for sale 63,168 61,607
Developments in progress 133,509 78,393
------------ ------------
Net investment in real estate assets 5,944,428 4,894,780
Cash and cash equivalents 30,056 25,766
Receivables:
Tenant, net of allowance 55,038 38,409
Other 6,235 13,706
Mortgage notes receivable 18,117 27,804
Investment in unconsolidated affiliates 84,138 84,782
Other assets 214,292 119,253
------------ ------------
$6,352,304 $5,204,500
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage and other notes payable $4,341,055 $3,359,466
Mortgage notes payable on real estate assets held for sale - 12,213
Accounts payable and accrued liabilities 320,252 212,064
------------ ------------
Total liabilities 4,661,307 3,583,743
------------ ------------
Commitments and contingencies
Minority interests 609,475 566,606
------------ ------------
Shareholders' equity:
Preferred stock, $.01 par value 32 32
Common stock, $.01 par value 625 626
Additional paid-in capital 1,037,764 1,025,479
Deferred compensation (8,895) (3,081)
Other comprehensive income 288 -
Retained earnings 51,708 31,095
------------ ------------
Total shareholders' equity 1,081,522 1,054,151
------------ ------------
$6,352,304 $5,204,500
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9