Exhibit 99.1
CBL & ASSOCIATES PROPERTIES, INC.
LETTERHEAD
Contact: Katie Reinsmidt
Director of Investor Relations
(423) 490-8301
CBL & ASSOCIATES PROPERTIES REPORTS THIRD QUARTER RESULTS
o Declares 10.4% increase in quarterly common dividend to $0.5050 per share
or $2.02 annually - fifth consecutive year of double-digit increase.
o FFO per share increased 8.3% to $0.78 in the third quarter over the prior
year period after adjustment for one-time gains and fee income of $0.26 per
share.
o Same-center NOI was unchanged during the quarter and increased 2.4% during
the nine months ended September 30, 2006.
o Same store sales improved by 4.5% year-to-date.
o Portfolio occupancy was 92.6% as of September 30, 2006.
CHATTANOOGA, Tenn. (November 2, 2006) - CBL & Associates Properties, Inc.
(NYSE:CBL) announced results for the third quarter and nine months ended
September 30, 2006. 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.
Net income available to common shareholders for the third quarter ended
September 30, 2006, was $14,337,000 compared with $60,093,000 for the prior-year
period. Net income available to common shareholders per diluted share was $0.22
in the third quarter ended September 30, 2006, compared with $0.92 for the
prior-year period. Net income available to common shareholders for the third
quarter ended September 30, 2005, included gains and fee income of $39,793,000
($72,541,000 before deduction for minority interest in earnings of the operating
partnership) resulting from the transaction with Galileo America, LLC
("Galileo"), which occurred in the third quarter of 2005. Additionally, net
income available to common shareholders for the third quarter ended September
30, 2006, declined over the prior-year period due to increases in depreciation
expense for the properties acquired during 2005.
Net income available to common shareholders for the nine months ended
September 30, 2006, was $55,878,000 compared with $106,247,000 for the nine
months ended September 30, 2005. Net income available to common shareholders per
diluted share for the nine months ended September 30, 2006, was $0.86 compared
with $1.64 in the prior-year period. Net income available to common shareholders
for the nine months ended September 30, 2005, included gains and fee income of
$39,793,000 ($72,541,000 before deduction for minority interest in earnings of
the operating partnership) resulting from the transaction with Galileo.
Additionally, net income available to common shareholders for the nine months
ended September 30, 2006, declined over the prior-year period due to increases
in depreciation expense for the properties acquired during 2005.
Funds from operations ("FFO") allocable to common shareholders for the
third quarter ended September 30, 2006, was $50,910,000, compared with
$62,761,000 for the third quarter ended September 30, 2005. FFO allocable to
common shareholders for the nine months ended September 30, 2006, was
$152,604,000 compared with $157,052,000 for the nine months ended September 30,
2005.
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CBL Reports Third Quarter Results
Page 2
November 2, 2006
FFO of the operating partnership was $91,654,000 for the third quarter of
2006, compared with $114,410,000 for the third quarter of 2005. FFO of the
operating partnership for the nine months ended September 30, 2006, was
$276,756,000 compared with $286,074,000 for the nine months ended September 30,
2005.
FFO per share increased 8.3% to $0.78 for the third quarter ended
September 30, 2006, compared with FFO per share in the prior-year period of
$0.72 per share after adjustment for one-time gains and fee income of $0.26 per
share related to the transaction with Galileo in 2005. FFO for the three months
ended September 30, 2005, was $0.98 per share including one-time gains and fee
income of $0.26. FFO per share for the nine months ended September 30, 2006, was
$2.37 compared with $2.20 per share in the prior-year period after adjustment
for one-time gains and fee income of $0.26 per share related to the Galileo
transaction in 2005. FFO per share for the nine months ended September 30, 2005,
was $2.46 per share including one-time gains and fee income of $0.26.
HIGHLIGHTS
|X| Total revenues increased 8.2% in the third quarter 2006 to $246,549,000
from $227,780,000 in the prior-year period. Total revenues increased
12.9% in the nine months ended September 30, 2006, to $728,849,000 from
$645,525,000 in the comparable period a year ago.
|X| Same center net operating income for the portfolio for the quarter and
nine months ended September 30, 2006, was unchanged and increased 2.4%,
respectively, compared with a 6.4% and 6.9% increase, respectively, for
the prior-year periods. Same center net operating income was impacted
by the timing necessary for the re-leasing of vacant space resulting
from significant bankruptcy and store-closures that occurred in the
first quarter of 2006.
|X| Same-store sales for mall tenants of 10,000 square feet or less for
stabilized malls for the nine months ended September 30, 2006,
increased 4.5% for those tenants who have reported sales, compared with
a 3.3% increase for the prior-year period. For the twelve months ended
September 30, 2006, sales per square foot increased 5.8% to $340 per
square foot.
|X| The debt-to-total-market-capitalization ratio as of September 30, 2006,
was 46.9% based on the common stock closing price of $41.91 and a fully
converted common stock share count of 116,137,000 shares as of the same
date. 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.
|X| Variable rate debt of $1,003,000 represents 10.1% of the total market
capitalization for the Company and 21.6% of the Company's share of
total consolidated and unconsolidated debt compared to 11.0% and 26.1%,
respectively, in the prior year period.
CBL's Chairman and Chief Executive Officer, Charles B. Lebovitz, said,
"Strong sales growth by our mall shops of 4.5% year-to-date and healthy
double-digit leasing spreads demonstrate that consumer and retailer demand in
our markets remains high. The lifestyle elements and restaurants we are
proactively adding to our properties are creating considerable excitement among
retailers and shoppers. We expect these enhancements to continue to generate
solid leasing results.
"Our pipeline of new developments continues to grow and is receiving
strong endorsement by retailers. We currently have over 1.0 million square feet
of new properties, expansions and redevelopments scheduled to open in the fourth
quarter - making for one of the most active quarters in recent years. Future
developments are accelerating at an even greater pace as we currently have a
2007 development pipeline of announced projects approaching 2.5 million square
feet. Over the next several years, these new developments should provide a
continuing source of additional growth."
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CBL Reports Third Quarter Results
Page 3
November 2, 2006
PORTFOLIO OCCUPANCY
September 30,
----------------------------------
2006 2005
------------- -------------
Portfolio occupancy 92.6% 93.3%
Mall portfolio 92.3% 93.2%
Stabilized malls 92.4% 93.4%
Non-stabilized malls 90.7% 88.0%
Associated centers 94.9% 94.5%
Community centers 88.3% 92.8%
DIVIDEND
Today CBL announced that the Board of Directors has approved a 10.4%
increase in the regular quarterly cash dividend for the Company's Common Stock
to $0.5050 per share for the quarter ending December 31, 2006. The dividend is
payable on January 16, 2007, to shareholders of record as of December 29, 2006.
The quarterly cash dividend equates to an annual dividend of $2.02 per share
compared with the previous annual dividend of $1.83 per share. This increase
represents CBL's fourteenth consecutive annual increase and the fifth
consecutive double-digit annual increase in the common dividend.
OTHER SIGNIFICANT EVENTS
During the third quarter, CBL completed $317,000,000 in four separate
new financings, secured by Hamilton Place Mall in Chattanooga, TN; Greenbrier
Mall in Chesapeake, VA; Midland Mall in Midland, MI; and Chapel Hill Mall in
Akron, OH. The fixed-rate loans replaced $249,700,000 in existing financing.
Excess proceeds were used to reduce outstanding balances on the Company's lines
of credit. As a result of the early extinguishment of the loans, CBL incurred a
one-time charge of $935,000 for prepayment fees and the write-off of
unamortized deferred financing costs, which was included in net income and FFO
in the third quarter of 2006.
OUTLOOK AND GUIDANCE
Based on today's outlook and the Company's third quarter results, the
Company is providing guidance for 2006 FFO in the range of $3.33 to $3.38 per
share. The full year guidance assumes NOI growth in the range of 1.5% to 2.5%
and excludes the impact of any future unannounced acquisitions, gains on sales
of outparcels, future lease termination fees 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 $1.35 $1.40
Adjust to fully converted shares from common shares (0.59) (0.62)
------ ------
Expected earnings per diluted, fully converted common share 0.76 0.78
Add: depreciation and amortization 2.03 2.03
Add: gain on sales of interest in Galileo (0.07) (0.07)
Add: minority interest in earnings of Operating Partnership 0.61 0.64
------ ------
Expected FFO per diluted, fully converted common share $3.33 $3.38
===== =====
INVESTOR CONFERENCE CALL AND SIMULCAST
CBL & Associates Properties, Inc. will conduct a conference call at 10:00
a.m. ET on November 3, 2006, to discuss the third quarter results. The number to
call for this interactive teleconference is (913) 981-5520. A seven-day replay
of the conference call will be available by dialing (719) 457-0820 and entering
the passcode 1564833. A transcript of the Company's prepared remarks will be
furnished on a Form 8-K following the conference call.
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CBL Reports Third Quarter Results
Page 4
November 2, 2006
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 2006 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 November 3, 2006, beginning at 10:00 a.m. ET. The online replay will follow
shortly after the call and continue through November 17, 2006.
About CBL
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 128 properties, including 79 regional malls/open-air centers. The
properties are located in 27 states and total 73.3 million square feet including
2.0 million square feet of non-owned shopping centers managed for third parties.
CBL currently has nine projects under construction totaling 2.2 million square
feet including Phase II of Gulf Coast Town Center in Ft. Myers, FL; one open-air
shopping center; two community centers, four associated/lifestyle centers and a
mall expansion. Headquartered in Chattanooga, TN, CBL has regional offices in
Boston (Waltham), MA, and Dallas, TX. Additional information can be found at
cblproperties.com.
NON-GAAP FINANCIAL MEASURES
Funds From Operations
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 ("NAREIT") 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 and minority interests.
Adjustments for unconsolidated partnerships and joint ventures and minority
interests are calculated on the same basis. The Company defines FFO allocable to
common shareholders as defined above by NAREIT less dividends on preferred
stock. The Company's method of calculating FFO allocable to common shareholders
may be different from methods used by other REITs and, accordingly, may not be
comparable to such other REITs.
The Company believes that FFO provides an additional indicator of the
operating performance of its 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 with market conditions, we believe that FFO
enhances investors' understanding of our operating performance. The use of FFO
as an indicator of financial performance is influenced not only by the
operations of our properties and interest rates, but also by the Company's
capital structure.
The Company presents both FFO of its operating partnership and FFO
allocable to common shareholders, as it believes that both are useful
performance measures. The Company believes FFO of its operating partnership is a
useful performance measure since it conducts substantially all of its business
through the operating partnership and, therefore, it reflects the performance of
the properties in absolute terms regardless of the ratio of ownership interests
of the Company's common shareholders and the minority interest in the operating
partnership. The Company believes FFO allocable to common shareholders is a
useful performance measure because it is the performance measure that is most
directly comparable to net income available to common shareholders.
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CBL Reports Third Quarter Results
Page 5
November 2, 2006
In the reconciliation of net income available to common shareholders to
FFO allocable to common shareholders, the Company makes an adjustment to add
back minority interest in earnings of the operating partnership in order to
arrive at FFO of the operating partnership. The Company then applies a
percentage to FFO of the operating partnership to arrive at FFO allocable to
common shareholders. The percentage is computed by taking the weighted average
number of common shares outstanding for the period and dividing it by the sum of
the weighted average number of common shares and the weighted average number of
operating partnership units outstanding during the period.
FFO does not represent cash flows 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 the nine
months ended September 30, 2005: tenant reimbursements have increased by
$5,619,000 and $15,394,000 respectively; other revenues have decreased by
$754,000 and $2,294,000, respectively; and property operating expenses have
increased by $4,865,000 and $13,100,000, 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 Third Quarter Results
Page 6
November 2, 2006
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------------------- --------------------------------
2006 2005 2006 2005
-------------------------------- --------------------------------
REVENUES:
Minimum rents $ 156,136 $ 135,645 $ 457,746 $ 393,191
Percentage rents 3,413 3,114 11,716 12,963
Other rents 3,094 2,400 10,547 8,320
Tenant reimbursements 77,046 70,820 227,786 199,650
Management, development and leasing fees 1,181 11,109 3,945 17,927
Other 5,679 4,692 17,109 13,474
------------ ------------ ----------- -----------
Total revenues 246,549 227,780 728,849 645,525
------------ ------------ ----------- -----------
EXPENSES:
Property operating 41,389 40,306 119,113 108,473
Depreciation and amortization 62,604 45,453 171,841 130,048
Real estate taxes 20,266 16,020 60,059 47,332
Maintenance and repairs 13,846 12,373 40,112 36,607
General and administrative 9,402 10,221 28,051 28,641
Loss on impairment of real estate assets - - 274 262
Other 5,127 3,769 13,815 10,256
------------ ------------ ----------- -----------
Total expenses 152,634 128,142 433,265 361,619
------------ ------------ ----------- -----------
Income from operations 93,915 99,638 295,584 283,906
Interest income 2,009 1,937 5,687 6,214
Interest expense (63,884) (52,646) (191,474) (151,822)
Loss on extinguishment of debt (935) (44) (935) (928)
Gain on sales of real estate assets 3,901 46,485 6,831 53,581
Gain on sales of management contracts - 21,619 - 21,619
Equity in earnings of unconsolidated affiliates 621 995 3,807 6,769
Minority interest in earnings:
Operating partnership (12,075) (49,455) (47,930) (87,176)
Shopping center properties (1,402) (1,086) (2,663) (3,661)
------------ ------------ ----------- -----------
Income before discontinued operations 22,150 67,443 68,907 128,502
Operating income (loss) of discontinued operations (173) 290 2,680 755
Gain (loss) on discontinued operations 2 2 7,217 (84)
------------ ------------ ----------- -----------
Net income 21,979 67,735 78,804 129,173
Preferred dividends (7,642) (7,642) (22,926) (22,926)
Net income available to common shareholders $ 14,337 $ 60,093 $ 55,878 $ 106,247
============ ============ =========== ===========
Basic per share data:
Income before discontinued operations, net of preferred
dividends $ 0.23 $ 0.95 $ 0.72 $ 1.68
Discontinued operations (0.01) - 0.16 0.01
------------ ------------ ----------- -----------
Net income available to common shareholders $ 0.22 $ 0.95 $ 0.88 $ 1.69
============ ============ =========== ===========
Weighted average common shares outstanding 64,174 62,940 63,616 62,693
Diluted per share data:
Income before discontinued operations, net of preferred
dividends $ 0.22 $ 0.92 $ 0.71 $ 1.62
Discontinued operations - - 0.15 0.02
------------ ------------ ----------- -----------
Net income available to common shareholders $ 0.22 $ 0.92 $ 0.86 $ 1.64
============ ============ =========== ===========
Weighted average common and potential dilutive
common shares outstanding 65,496 65,253 65,086 64,973
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CBL Reports Third Quarter Results
Page 7
November 2, 2006
The Company's calculation of FFO allocable to Company shareholders is as follows
(in thousands, except per share data):
Three Months Ended Nine Months Ended
September 30, September 30,
2006 2005 2006 2005
----------------------------------------------------------------------
Net income available to common shareholders $ 14,337 $ 60,093 $ 55,878 $ 106,247
Minority interest in earnings of operating partnership 12,075 49,455 47,930 87,176
Depreciation and amortization expense of:
Consolidated properties 62,604 45,453 171,841 130,048
Unconsolidated affiliates 3,377 2,207 10,020 6,127
Discontinued operations - 585 515 615
Non-real estate assets (218) (188) (623) (553)
Minority investors' share of depreciation and amortization (568) (311) (1,675) (962)
(Gain) loss on:
Sales of operating real estate assets 49 (42,882) 87 (42,708)
Discontinued operations (2) (2) (7,217) 84
----------------- ---------------- ----------------- --------------
Funds from operations of the operating partnership 91,654 114,410 276,756 286,074
Percentage allocable to Company shareholders (1) 55.55% 54.86% 55.14% 54.90%
----------------- ---------------- ----------------- --------------
Funds from operations allocable to Company
shareholders $ 50,910 $ 62,761 $ 152,604 $ 157,052
================= ================ ================= ==============
Basic per share data:
Funds from operations $ 0.79 $ 1.00 $ 2.40 $ 2.51
================= ================ ================= ==============
Weighted average common shares outstanding with
operating partnership units fully converted 115,534 114,737 115,371 114,197
Diluted per share data:
Funds from operations $ 0.78 $ 0.98 $ 2.37 $ 2.46
================= ================ ================= ==============
Weighted average common and potential dilutive
common shares outstanding with operating
partnership units fully converted 116,856 117,050 116,840 116,477
<FN>
(1) Represents the weighted average number of common shares outstanding for the
period divided by the sum of the weighted average number of common shares and
the weighted average number of operating partnership units outstanding during
the period. SUPPLEMENTAL FFO INFORMATION:
</FN>
Lease termination fees (2) $ 4,945 $ 1,221 $ 13,239 $ 3,648
Lease termination fees per share $ 0.04 $ 0.01 $ 0.11 $ 0.03
Straight-line rental income $ 1,767 $ 1,667 $ 3,986 $ 4,755
Straight-line rental income per share $ 0.02 $ 0.01 $ 0.03 $ 0.04
Gains on outparcel sales $ 3,625 $ 2,544 $ 8,133 $ 11,177
Gains on outparcel sales per share $ 0.03 $ 0.02 $ 0.07 $ 0.10
Amortization of acquired above- and below-market leases (3) $ 4,815 $ 1,668 $ 9,730 $ 4,532
Amortization of acquired above- and below-market leases $ 0.08
per share $ 0.04 $ 0.01 $ 0.04
Amortization of debt premiums $ 1,889 $ 1,948 $ 5,599 $ 5,605
Amortization of debt premiums per share $ 0.02 $ 0.02 $ 0.05 $ 0.05
Gain on sales of non operating properties $ - $ 1,288 $ - $ 2,509
Gain on sales of non operating properties per share $ - $ 0.01 $ - $ 0.02
Loss on impairment of real estate assets $ - $ - $ (274) $ (262)
Loss on impairment of real estate assets per share $ - $ - $ - $ -
<FN>
(2) The amounts for the three months and nine months ended September 30, 2006,
include $3,415 and $5,223, respectively, that is attributable to properties
that are not included in same-center comparisons.
(3) The amounts for the three months and nine months ended September 30, 2006,
include $3,711 and $5,152, respectively, that is attributable to properties
that are not included in same-center comparisons.
</FN>
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CBL Reports Third Quarter Results
Page 8
November 2, 2006
Same-Center Net Operating Income
(Dollars in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- -------------------------
2006 2005 2006 2005
--------------------------- -------------------------
Net income $ 21,979 $ 67,735 $ 78,804 $129,173
Adjustments:
Depreciation and amortization 62,604 45,453 171,841 130,048
Depreciation and amortization from unconsolidated affiliates 3,377 2,207 10,020 6,127
Depreciation and amortization from discontinued operations - 585 515 615
Minority investors' share of depreciation and amortization in
shopping center properties (568) (311) (1,675) (962)
Interest expense 63,884 52,646 191,474 151,822
Interest expense from unconsolidated affiliates 4,485 3,009 13,154 9,069
Minority investors' share of interest expense in
shopping center properties (1,276) (390) (3,627) (1,160)
Loss on extinguishment of debt 935 44 935 928
Abandoned projects expense 359 336 294 475
Gain on sales of real estate assets (3,901) (68,104) (6,831) (75,200)
Loss on impairment of real estate assets - - 274 262
Gain on sales of real estate assets of unconsolidated affiliates (795) (227) (2,302) (2,850)
Minority interest in earnings of operating partnership 12,075 49,455 47,930 87,176
(Gain) loss on discontinued operations (2) (2) (7,217) 84
-------------- ----------- ------------- ----------
Operating partnership's share of total NOI 163,156 152,436 493,589 435,607
General and administrative expenses 9,402 10,221 28,051 28,641
Management fees and non-property level revenues (4,527) (12,385) (15,433) (25,202)
-------------- ----------- ------------- ----------
Operating partnership's share of property NOI 168,031 150,272 506,207 439,046
NOI of non-comparable centers (24,645) (6,848) (69,009) (12,022)
-------------- ----------- ------------- ----------
Total same center NOI $ 143,386 $143,424 $ 437,198 $427,024
============== =========== ============= ==========
Malls $ 132,541 $133,226 $ 403,624 $395,986
Associated centers 7,108 6,373 20,642 19,136
Community centers 843 1,131 2,965 3,502
Other 2,894 2,694 9,967 8,400
-------------- ----------- ------------- ----------
Total same center NOI $ 143,386 $143,424 $ 437,198 $427,024
============== =========== ============= ==========
Percentage Change:
Malls -0.5% 1.9%
Associated centers 11.5% 7.9%
Community centers -25.5% -15.3%
Other 7.4% 18.7%
--------------- -------------
Total same center NOI 0.0% 2.4%
=============== =============
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CBL Reports Third Quarter Results
Page 9
November 2, 2006
Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
September 30, 2006
--------------------------------------------------------------
Fixed Rate Variable Rate Total
--------------------- -------------------- -------------------
Consolidated debt $ 3,488,207 $ 976,209 $ 4,464,416
Minority investors' share of consolidated debt (56,862) - (56,862)
Company's share of unconsolidated affiliates' debt 217,585 26,600 244,185
--------------------- -------------------- -------------------
Company's share of consolidated and unconsolidated debt $ 3,648,930 $ 1,002,809 $ 4,651,739
===================== ==================== ===================
Weighted average interest rate 5.97% 6.26% 6.03%
===================== ==================== ===================
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%
===================== ==================== ===================
Debt-To-Total-Market Capitalization Ratio as of September 30, 2006
(In thousands, except stock price)
Shares
Outstanding Stock Price (1) Value
--------------------- -------------------- -------------------
Common stock and operating partnership units 116,137 $ 41.91 $ 4,867,302
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 5,257,302
Company's share of total debt 4,651,739
-------------------
Total market capitalization $ 9,909,041
===================
Debt-to-total-market capitalization ratio 46.9%
===================
<FN>
(1) Stock price for common stock and operating partnership units equals the
closing price of the common stock on September 29, 2006. 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,
------------------------------------------- --------------------------------------
2006: Basic Diluted Basic Diluted
--------------------- ------------------- ---------------- -------------------
Weighted average shares - EPS 64,174 65,496 63,616 65,086
Weighted average operating partnership units 51,360 51,360 51,755 51,754
--------------------- ------------------- ---------------- -------------------
Weighted average shares- FFO 115,534 116,856 115,371 116,840
===================== =================== ================ ===================
2005:
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
=========================================== ================ ===================
Dividend Payout Ratio Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------------------- --------------------------------------
2006 2005 2006 2005
------------------------------------------- ---------------- -------------------
Weighted average dividend per share $ 0.46387 $ 0.41110 $ 1.39164 $ 1.22910
FFO per diluted, fully converted share $ 0.78 $ 0.98 $ 2.37 $ 2.46
------------------------------------------- ---------------- -------------------
Dividend payout ratio 59.5% 41.9% 58.7% 50.0%
=========================================== ================ ===================
-MORE-
CBL Reports Third Quarter Results
Page 10
November 2, 2006
Consolidated Balance Sheets
(Unaudited, in thousands except share data)
September 30, December 31,
2006 2005
--------------- ---------------
ASSETS
Real estate assets:
Land $ 769,655 $ 776,989
Buildings and improvements 5,781,710 5,698,669
--------------- ---------------
6,551,365 6,475,658
Less: accumulated depreciation (872,048) (727,907)
--------------- ---------------
5,679,317 5,747,751
Real estate assets held for sale - 63,168
Developments in progress 318,033 133,509
--------------- ---------------
Net investment in real estate assets 5,997,350 5,944,428
Cash and cash equivalents 33,560 28,838
Receivables:
Tenant, net of allowance 61,068 55,056
Other 9,304 6,235
Mortgage notes receivable 19,373 18,117
Investment in unconsolidated affiliates 87,819 84,138
Other assets 207,737 215,510
--------------- ---------------
$ 6,416,211 $ 6,352,322
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Mortgage and other notes payable $ 4,464,416 $ 4,341,055
Accounts payable and accrued liabilities 314,054 320,270
--------------- ---------------
Total liabilities 4,778,470 4,661,325
--------------- ---------------
Commitments and contingencies
Minority interests 562,722 609,475
--------------- ---------------
Shareholders' equity:
Preferred Stock, $.01 par value, 15,000,000 shares authorized:
8.75% Series B Cumulative Redeemable Preferred Stock,
2,000,000 shares outstanding 20 20
7.75% Series C Cumulative Redeemable Preferred Stock,
460,000 shares outstanding 5 5
7.375% Series D Cumulative Redeemable Preferred Stock,
700,000 shares outstanding 7 7
Common Stock, $.01 par value, 180,000,000 shares authorized,
64,778,624 and 62,512,816 issued and outstanding in 2006 and
2005, respectively 648 625
Additional paid-in capital 1,054,487 1,037,764
Deferred Compensation - (8,895)
Accumulated other comprehensive income 907 288
Retained earnings 18,945 51,708
--------------- ---------------
Total shareholders' equity 1,075,019 1,081,522
--------------- ---------------
$ 6,416,211 $ 6,352,322
=============== ===============
-END-