Results In-line With Expectations - Guidance
Maintained
CBL Properties (NYSE: CBL) announced results for the first
quarter ended March 31, 2018. A description of each
supplemental non-GAAP financial measure and the related
reconciliation to the comparable GAAP financial measure is located
at the end of this news release.
Three Months EndedMarch 31, 2018
2017 % Net income (loss) attributable
to common shareholders per diluted share
$ (0.06
) $ 0.13 (146.2 )% Funds from Operations ("FFO") per
diluted share
$ 0.42 $ 0.53 (20.8 )%
FFO, as adjusted, per diluted share (1)
$ 0.42
$ 0.52 (19.2 )%
(1) For a reconciliation of FFO to FFO, as
adjusted, for the periods presented, please refer to the footnotes
to the Company's reconciliation of net income (loss) attributable
to common shareholders to FFO allocable to Operating Partnership
common unitholders on page 9 of this news release.
KEY TAKEAWAYS:
- Same-center sales per square foot for
the stabilized mall portfolio during the first quarter increased
4.1% compared with the prior-year quarter. For the twelve months
ended March 31, 2018, same-center sales were $376 per square
foot.
- FFO per diluted share, as adjusted, was
$0.42 for the first quarter 2018, compared with $0.52 per share for
the first quarter 2017. First quarter 2018 was impacted by
approximately $0.01 per share of dilution from asset sales
completed in 2017, $0.05 per share of lower property NOI, lower
outparcel sales of $0.02 per share, $0.03 per share higher
corporate interest expense offset by $0.04 lower property level
interest expense and $0.01 higher G&A expense primarily related
to lower capitalized overhead, a one-time favorable accrual
adjustment in the prior-year period as well as comparatively higher
legal expense.
- Total Portfolio Same-center NOI
declined 6.8% for the first quarter 2018.
- Portfolio occupancy was 91.1% as of
March 31, 2018, compared with 92.1% as of March 31, 2017.
Same-center mall occupancy was 89.5% as of March 31, 2018
compared with 90.4% as of March 31, 2017.
- CBL completed gross asset sales of
$12.3 million during the first quarter and in April entered into a
binding contract for the sale of a Tier 3 mall for a gross sales
price of $18.0 million.
- Redevelopment activity is underway at
eight properties, including five anchor redevelopments.
“First quarter results were in-line with expectations and, as
anticipated, reflect the impact from 2017 and 2018 bankruptcies and
rent reductions,” said Stephen Lebovitz, CBL’s president & CEO.
“We were encouraged by the solid 4.1% increase in retail sales in
our portfolio during the first quarter and reports from a number of
brands citing marked improvement in both traffic and sales, which
should lead to improved leasing metrics later in the year.
Operationally, our focus in 2018 is stabilizing revenues as
well as diversifying income by adding more dining, entertainment,
value and service users.
“While we are disappointed with the news of Bon-Ton liquidating,
we have been proactive by preparing for this outcome. We have
identified replacement tenants for the majority of our locations
and have several in advanced negotiations, including one lease
already executed with a supermarket that will require zero
investment by CBL. We are estimating a total investment of $60 -
$90 million for the replacement of the Bon-Ton stores in our
portfolio over several years. We had already incorporated expected
rent loss, including any co-tenancy impact, in our guidance for the
year and are on-track to perform within that range.
“Actively managing our balance sheet to maximize liquidity and
lengthen maturities is a top priority for us. We are expecting to
complete the refinancing of the loan secured by CoolSprings
Galleria shortly. We are also holding preliminary discussions to
complete early refinancings of our unsecured term loan and line of
credit that mature in 2019 and 2020, respectively, which will put
us in an even stronger financial position and provide further
flexibility to execute our strategies.”
Net loss attributable to common shareholders for the first
quarter 2018 was $10.3 million, or $(0.06) per diluted share,
compared with net income of $22.9 million, or $0.13 per diluted
share, for the first quarter 2017.
FFO allocable to common shareholders, as adjusted, for the first
quarter 2018 was $72.2 million, or $0.42 per diluted share,
compared with $88.4 million, or $0.52 per diluted share, for the
first quarter 2017. FFO allocable to the Operating Partnership
common unitholders, as adjusted, for the first quarter 2018 was
$83.8 million compared with $103.0 million for the first quarter
2017.
Percentage change in same-center Net
Operating Income (“NOI”)(1):
Three Months EndedMarch 31, 2018
Portfolio same-center NOI
(6.8)% Mall same-center NOI
(7.2)%
(1) CBL’s definition of same-center NOI
excludes the impact of lease termination fees and certain non-cash
items of straight-line rents, write-offs of landlord inducements
and net amortization of acquired above and below market leases.
Major variances impacting same-center NOI for the quarter ended
March 31, 2018, include:
- Same-center NOI declined $11.2 million,
due to a $10.5 million decrease in revenue and a $0.7 million
increase in operating expenses.
- Minimum rents and tenant reimbursements
declined $9.5 million during the quarter, primarily related to
store closures and rent concessions for tenants in bankruptcy.
- Percentage rents declined $0.2 million
compared with the prior year quarter.
- Other rents and other income declined
$0.8 million.
- Property operating expenses decreased
$1.3 million, maintenance and repair expense increased $1.7
million, and real estate tax expenses increased $0.3 million.
PORTFOLIO OPERATIONAL RESULTS
Occupancy:
As of March 31, 2018 2017
Portfolio occupancy
91.1% 92.1% Mall portfolio
89.3%
90.5% Same-center malls
89.5% 90.4% Stabilized malls
89.5% 90.5% Non-stabilized malls (1)
77.0% 92.7%
Associated centers
97.8% 97.7% Community centers
97.4% 98.2%
(1) Represents occupancy for The Outlet
Shoppes at Laredo as of March 31, 2018 and The Outlet Shoppes of
the Bluegrass as of March 31, 2017.
New and Renewal Leasing Activity of
Same Small Shop Space Less Than 10,000 Square Feet:
% Change in Average Gross Rent Per Square Foot:
Three Months
Ended
March 31, 2018
Stabilized Malls (13.9 )% New leases 0.4 % Renewal leases (16.0 )%
Same-Center Sales Per Square Foot for
Mall Tenants 10,000 Square Feet or Less:
Twelve Months Ended
March 31,
Three Months
Ended
March 31, 2018
2018 2017 % Change %
Change Stabilized mall same-center sales per square foot
$ 376 $ 375 0.3 %
4.1 % Stabilized mall
sales per square foot
$ 376 $ 372 1.1 %
4.4
%
DISPOSITIONS
During the quarter, CBL closed on the sale of Gulf Coast Town
Center Phase III in Ft. Myers, FL, for a gross sales price of $9.0
million. CBL also completed the sale of various outparcel locations
generating an aggregate $3.3 million in gross proceeds.
CBL has entered into a binding contract for the sale of
Janesville Mall in Janesville, WI, for $18.0 million to RockStep
Capital. The buyer has posted a significant non-refundable deposit.
The disposition is expected to close summer 2018, subject to due
diligence and customary closing conditions. CBL recorded an
impairment charge of $18.1 million in the first quarter to write
down the depreciated carrying value of the mall to its net sales
price.
FINANCING ACTIVITY
In January, CBL retired the $37.5 million loan secured by
Kirkwood Mall in Bismarck, ND, using availability on its lines of
credit. The loan bore an interest rate of 5.75% and was scheduled
to mature in April 2018.
DEVELOPMENT
In April, CBL commenced construction on the first phase of
redevelopment of the former Sears building at Brookfield Square in
Milwaukee, WI. The redevelopment will deliver new dining and
entertainment options, including new-to-market entertainment
concept, WhirlyBall, and BistroPlex℠ from Marcus Theatres®, which
combines dining and moviegoing in every auditorium. Planning is
underway for additional phases of the redevelopment, which will
include new dining options and other non-retail uses. More details
will be announced over the coming months.
Anchor redevelopments completed and underway in 2018 include
(complete project list can be found in the financial
supplement):
Prior Tenant
New Tenant Brookfield Square Sears Marcus
Theaters/Whirlyball Eastland Mall JCPenney H&M, Outback, Planet
Fitness Frontier Mall Sports Authority Planet Fitness Jefferson
Mall Macy's Round 1 York Galleria JCPenney Marshalls
OUTLOOK AND GUIDANCE
CBL is maintaining 2018 FFO, as adjusted, guidance in the range
of $1.70 - $1.80 per diluted share. Guidance incorporates a
full-year budgeted impact of loss in rent related to 2017 tenant
bankruptcies, store closures and rent adjustments net of expected
new leasing as well as a reserve in the range of $10.0 - $20.0
million (the “Reserve”) for potential future unbudgeted loss in
rent from tenant bankruptcies, store closures or lease
modifications that may occur in 2018. Based on bankruptcy and
leasing activity year-to-date, including the impact of any
co-tenancy, CBL expects to utilize $10.0 - $13.0 million of the
Reserve.
Detail of assumptions underlying guidance
follows:
Low High
2018 FFO, as adjusted, per share (Includes the Reserve) $1.70 $1.80
2018 Change in Same-Center NOI ("SC NOI") (Includes the Reserve)
(6.75)% (5.25)% Reserve for unbudgeted lost rents included in SC
NOI and FFO $20.0 million $10.0 million Gain on outparcel sales
$7.0 million $10.0 million Estimated 2018 Dividend Per Common Share
(1) $0.80 $0.80
(1) Subject to Board approval
Reconciliation of GAAP net income to 2018
FFO, as adjusted, per share guidance:
Low High
Expected diluted earnings per common share $ 0.04 $ 0.13 Adjust to
fully converted shares from common shares (0.01 ) (0.01 ) Expected
earnings per diluted, fully converted common share 0.03 0.12 Add:
depreciation and amortization 1.58 1.58 Less: gain on depreciable
property (0.01 ) (0.01 ) Add: loss on impairment 0.09 0.09 Add:
noncontrolling interest in earnings of Operating Partnership 0.01
0.02 Expected FFO, as adjusted, per diluted, fully
converted common share $ 1.70 $ 1.80
INVESTOR CONFERENCE CALL AND WEBCAST
CBL Properties will host a conference call on Friday, April 27,
2018, at 11:00 a.m. ET. To access this interactive
teleconference, dial (888) 317-6003 or (412) 317-6061 and
enter the confirmation number, 3192915. A replay of the conference
call will be available through May 4, 2018, by dialing
(877) 344-7529 or (412) 317-0088 and entering the
confirmation number, 10117542.
The Company will also provide an online webcast and rebroadcast
of its first quarter 2018 earnings release conference call. The
live broadcast of the quarterly conference call will be available
online at cblproperties.com on Friday, April 27, 2018,
beginning at 11:00 a.m. ET. The online replay will follow shortly
after the call.
To receive the CBL Properties first quarter earnings release and
supplemental information, please visit the Invest section of our
website at cblproperties.com or contact Investor Relations at (423)
490-8312.
ABOUT CBL PROPERTIES
Headquartered in Chattanooga, TN, CBL Properties owns and
manages a national portfolio of market-dominant properties located
in dynamic and growing communities. CBL’s portfolio is comprised of
117 properties totaling 73.4 million square feet across 26 states,
including 75 high-quality enclosed, outlet and open-air retail
centers and 11 properties managed for third parties. CBL
continuously strengthens its company and portfolio through active
management, aggressive leasing and profitable reinvestment in its
properties. For more information visit cblproperties.com.
NON-GAAP FINANCIAL MEASURES
Funds From Operations
FFO is a widely used non-GAAP measure of the operating
performance of real estate companies that supplements net income
(loss) determined in accordance with GAAP. The National Association
of Real Estate Investment Trusts (“NAREIT”) defines FFO as net
income (loss) (computed in accordance with GAAP) excluding gains or
losses on sales of depreciable operating properties and impairment
losses of depreciable properties, plus depreciation and
amortization, and after adjustments for unconsolidated partnerships
and joint ventures and noncontrolling interests. Adjustments for
unconsolidated partnerships and joint ventures and noncontrolling
interests are calculated on the same basis. We define FFO as
defined above by NAREIT less dividends on preferred stock of the
Company or distributions on preferred units of the Operating
Partnership, as applicable. The Company’s method of calculating FFO
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 declines predictably over time.
Since values of well-maintained real estate assets have
historically risen with market conditions, the Company believes
that FFO enhances investors’ understanding of its operating
performance. The use of FFO as an indicator of financial
performance is influenced not only by the operations of the
Company’s properties and interest rates, but also by its capital
structure.
The Company presents both FFO allocable to Operating Partnership
common unitholders and FFO allocable to common shareholders, as it
believes that both are useful performance measures. The Company
believes FFO allocable to Operating Partnership common unitholders
is a useful performance measure since it conducts substantially all
of its business through its 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 noncontrolling interest in the
Operating Partnership. The Company believes FFO allocable to its
common shareholders is a useful performance measure because it is
the performance measure that is most directly comparable to net
income (loss) attributable to its common shareholders.
In the reconciliation of net income (loss) attributable to the
Company’s common shareholders to FFO allocable to Operating
Partnership common unitholders, located in this earnings release,
the Company makes an adjustment to add back noncontrolling interest
in income (loss) of its Operating Partnership in order to arrive at
FFO of the Operating Partnership common unitholders. The Company
then applies a percentage to FFO of the Operating Partnership
common unitholders to arrive at FFO allocable to its 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 held by noncontrolling interests during the period.
FFO does not represent cash flows from operations as defined by
GAAP, is not necessarily indicative of cash available to fund all
cash flow needs and should not be considered as an alternative to
net income (loss) for purposes of evaluating the Company’s
operating performance or to cash flow as a measure of
liquidity.
The Company believes that it is important to identify the impact
of certain significant items on its FFO measures for a reader to
have a complete understanding of the Company’s results of
operations. Therefore, the Company has also presented adjusted FFO
measures excluding these items from the applicable periods. Please
refer to the reconciliation of net income (loss) attributable to
common shareholders to FFO allocable to Operating Partnership
common unitholders on page 9 of this news release for a description
of these adjustments.
Same-center Net Operating Income
NOI is a supplemental non-GAAP measure of the operating
performance of the Company’s shopping centers and other properties.
The Company defines NOI as property operating revenues (rental
revenues, tenant reimbursements and other income) less property
operating expenses (property operating, real estate taxes and
maintenance and repairs).
The Company computes NOI based on the Operating Partnership’s
pro rata share of both consolidated and unconsolidated properties.
The Company believes that presenting NOI and same-center NOI
(described below) based on its Operating Partnership’s pro rata
share of both consolidated and unconsolidated properties is useful
since the Company conducts substantially all of its business
through its 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 noncontrolling interest in the Operating Partnership. The
Company’s definition of NOI may be different than that used by
other companies and, accordingly, the Company’s calculation of NOI
may not be comparable to that of other companies.
Since NOI includes only those revenues and expenses related to
the operations of the Company’s shopping center properties, the
Company believes that same-center NOI provides a measure that
reflects trends in occupancy rates, rental rates, sales at the
malls and operating costs and the impact of those trends on the
Company’s results of operations. The Company’s calculation of
same-center NOI excludes lease termination income, straight-line
rent adjustments, amortization of above and below market lease
intangibles and write-off of landlord inducement assets in order to
enhance the comparability of results from one period to another. A
reconciliation of same-center NOI to net income is located at the
end of this earnings release.
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 noncontrolling interests’ 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 condensed 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” included therein,
for a discussion of such risks and uncertainties.
CBL & Associates Properties,
Inc.Consolidated Statements of Operations(Unaudited; in
thousands, except per share amounts)
Three Months
EndedMarch 31, 2018 2017
REVENUES: Minimum rents
$ 150,361 $ 159,750
Percentage rents
2,043 2,389 Other rents
2,055 3,652
Tenant reimbursements
60,613 67,291 Management, development
and leasing fees
2,721 3,452 Other
2,407 1,479
Total revenues
220,200 238,013
OPERATING EXPENSES: Property operating
32,826 34,914
Depreciation and amortization
71,750 71,220 Real estate
taxes
21,848 22,083 Maintenance and repairs
13,179
13,352 General and administrative
18,304 16,082 Loss on
impairment
18,061 3,263 Other
94 —
Total operating expenses
176,062 160,914
Income from operations 44,138 77,099 Interest and
other income
213 1,404 Interest expense
(53,767
) (56,201 ) Gain on extinguishment of debt
— 4,055
Income tax benefit
645 800 Equity in earnings of
unconsolidated affiliates
3,739 5,373
Income (loss) from continuing operations before gain on sales of
real estate assets (5,032 ) 32,530 Gain on sales
of real estate assets
4,371 5,988
Net
income (loss) (661 ) 38,518 Net (income) loss
attributable to noncontrolling interests in: Operating Partnership
1,665 (3,690 ) Other consolidated subsidiaries
(101
) (713 )
Net income attributable to the Company
903 34,115 Preferred dividends
(11,223 )
(11,223 )
Net income (loss) attributable to common
shareholders $ (10,320 ) $ 22,892
Basic and diluted per share data attributable to common
shareholders: Net income (loss) attributable to common
shareholders
$ (0.06 ) $ 0.13
Weighted-average common and potential
dilutive common shares outstanding
171,943 170,989 Dividends declared per common share
$ 0.200 $ 0.265
The Company’s reconciliation of net
income (loss) attributable to common shareholders to FFO allocable
to Operating Partnership common unitholders is as follows:
(in thousands, except per share data)
Three Months
EndedMarch 31, 2018 2017 Net
income (loss) attributable to common shareholders
$
(10,320 ) $ 22,892 Noncontrolling interest in income
(loss) of Operating Partnership
(1,665 ) 3,690
Depreciation and amortization expense of: Consolidated properties
71,750 71,220 Unconsolidated affiliates
10,401 9,543
Non-real estate assets
(921 ) (864 ) Noncontrolling
interests' share of depreciation and amortization
(2,166
) (1,979 ) Loss on impairment, net of taxes
18,061
2,067 (Gain) loss on depreciable property
(2,236 ) 41
FFO allocable to Operating Partnership common
unitholders 82,904 106,610 Litigation expenses (1)
— 43 Nonrecurring professional fees reimbursement (1)
— (925 ) Non-cash default interest expense (2)
916
1,307 Gain on extinguishment of debt (3)
— (4,055 )
FFO allocable to Operating Partnership common unitholders, as
adjusted $ 83,820 $ 102,980
FFO per diluted share $ 0.42 $ 0.53
FFO, as adjusted, per diluted share $
0.42 $ 0.52 Weighted-average common and
potential dilutive common shares outstanding with Operating
Partnership units fully converted
199,694 199,281
(1)
Litigation expense is included in general
and administrative expense in the consolidated statements of
operations. Nonrecurring professional fees reimbursement is
included in interest and other income in the consolidated
statements of operations.
(2)
The three months ended March 31, 2018
includes default interest expense related to Acadiana Mall. The
three months ended March 31, 2017 includes default interest expense
related to Chesterfield Mall, Wausau Center and Midland Mall.
(3)
The three months ended March 31, 2017
represents gain on extinguishment of debt related to the
non-recourse loan secured by Midland Mall, which was conveyed to
the lender in January 2017.
The reconciliation of diluted EPS to FFO
per diluted share is as follows:
Three Months EndedMarch 31, 2018
2017 Diluted EPS attributable to common
shareholders $ (0.06 ) $ 0.13 Eliminate
amounts per share excluded from FFO: Depreciation and amortization
expense, including amounts from consolidated properties,
unconsolidated affiliates, non-real estate assets and excluding
amounts allocated to noncontrolling interests
0.40 0.39 Loss
on impairment, net of taxes
0.09 0.01 Gain on depreciable
property
(0.01 ) —
FFO per
diluted share $ 0.42 $ 0.53
The reconciliations of FFO allocable to
Operating Partnership common unitholders to FFO allocable to common
shareholders, including and excluding the adjustments noted above,
are as follows:
Three Months EndedMarch 31, 2018
2017 FFO allocable to Operating Partnership common
unitholders $ 82,904 $ 106,610
Percentage allocable to common
shareholders (1)
86.10 % 85.80 %
FFO allocable to
common shareholders $ 71,380 $ 91,471
FFO allocable to Operating Partnership common
unitholders, as adjusted $ 83,820 $ 102,980
Percentage allocable to common shareholders (1)
86.10
% 85.80 %
FFO allocable to common shareholders, as
adjusted $ 72,169 $ 88,357
(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. See the
reconciliation of shares and Operating Partnership units
outstanding on page 15.
SUPPLEMENTAL FFO INFORMATION:
Three Months EndedMarch 31, 2018
2017 Lease termination fees
$ 6,261 $
247 Lease termination fees per share
$ 0.03 $ —
Straight-line rental income (write-offs)
$
(3,633 ) $ 73 Straight-line rental income
(write-offs) per share
$ (0.02 ) $ —
Gains on outparcel sales
$ 2,147 $ 5,997 Gains on
outparcel sales per share
$ 0.01 $ 0.03 Net
amortization of acquired above- and below-market leases
$
805 $ 1,218 Net amortization of acquired above- and
below-market leases per share
$ — $ 0.01 Net
amortization of debt premiums and discounts
$ 107 $
623 Net amortization of debt premiums and discounts per share
$ — $ — Income tax benefit
$ 645
$ 800 Income tax benefit per share
$ — $ —
Gain on extinguishment of debt
$ — $ 4,055 Gain on
extinguishment of debt per share
$ — $ 0.02
Non-cash default interest expense
$ (916 ) $
(1,307 ) Non-cash default interest expense per share
$
— $ (0.01 ) Abandoned projects expense
$
(94 ) $ — Abandoned projects expense per share
$ — $ — Interest capitalized
$
587 $ 839 Interest capitalized per share
$ — $
— Litigation expenses
$ — $ (43 ) Litigation
expenses per share
$ — $ — Nonrecurring
professional fees reimbursement
$ — $ 925
Nonrecurring professional fees reimbursement per share
$
— $ —
As of March 31,
2018 2017 Straight-line rent receivable
$
58,244 $ 67,029
Three Months
EndedMarch 31, 2018 2017 Net income
(loss) $ (661 ) $ 38,518
Adjustments: Depreciation and amortization
71,750
71,220 Depreciation and amortization from unconsolidated affiliates
10,401 9,543 Noncontrolling interests' share of depreciation
and amortization in other consolidated subsidiaries
(2,166
) (1,979 ) Interest expense
53,767 56,201 Interest
expense from unconsolidated affiliates
5,954 6,161
Noncontrolling interests' share of interest expense in other
consolidated subsidiaries
(1,851 ) (1,706 ) Abandoned
projects expense
94 — Gain on sales of real estate assets
(4,371 ) (5,988 ) Loss on sales of real estate assets
of unconsolidated affiliates
— 35 Gain on extinguishment of
debt
— (4,055 ) Loss on impairment
18,061 3,263
Income tax benefit
(645 ) (800 ) Lease termination
fees
(6,261 ) (247 ) Straight-line rent and above-
and below-market lease amortization
2,828 (1,291 ) Net
income attributable to noncontrolling interests in other
consolidated subsidiaries
(101 ) (713 ) General and
administrative expenses
18,304 16,082 Management fees and
non-property level revenues
(3,887 )
(5,257 )
Operating Partnership's share of property NOI
161,216 178,987 Non-comparable NOI
(6,420
) (12,954 )
Total same-center NOI (1)
$ 154,796 $ 166,033
Total
same-center NOI percentage change (6.8 )%
Same-center Net Operating
Income(Continued)
Three Months
EndedMarch 31, 2018 2017
Malls
$ 138,931 $ 149,705 Associated centers
7,925 8,305 Community centers
6,006 6,188 Offices and
other
1,934 1,835
Total same-center NOI
(1) $ 154,796 $ 166,033
Percentage Change: Malls
(7.2)% Associated centers
(4.6)% Community centers
(2.9)% Offices and other
5.4% Total same-center NOI (1) (6.8)%
(1)
CBL defines NOI as property operating revenues (rental
revenues, tenant reimbursements and other income), less property
operating expenses (property operating, real estate taxes and
maintenance and repairs). Same-center NOI excludes lease
termination income, straight-line rent adjustments, amortization of
above and below market lease intangibles and write-offs of landlord
inducement assets. We include a property in our same-center pool
when we own all or a portion of the property as of March 31, 2018,
and we owned it and it was in operation for both the entire
preceding calendar year and the current year-to-date reporting
period ending March 31, 2018. New properties are excluded from
same-center NOI, until they meet this criteria. Properties excluded
from the same-center pool that would otherwise meet this criteria
are properties which are either under major redevelopment, being
considered for repositioning, where we intend to renegotiate the
terms of the debt secured by the related property or return the
property to the lender, or minority interest properties in which we
own an interest of 25% or less.
Company’s Share of Consolidated and
Unconsolidated Debt(Dollars in thousands)
As of March 31, 2018 Fixed
Rate
Variable
Rate
Total per Debt
Schedule
Unamortized
Deferred
Financing
Costs
Total Consolidated debt
$
3,110,446 $ 1,114,969 $
4,225,415 $ (17,730 ) $
4,207,685 Noncontrolling interests' share of consolidated
debt
(76,785 ) (5,403 ) (82,188
) 670 (81,518 ) Company's share of
unconsolidated affiliates' debt
529,722
67,754 597,476
(2,319 ) 595,157 Company's share
of consolidated and unconsolidated debt
$ 3,563,383
$ 1,177,320 $ 4,740,703
$ (19,379 ) $ 4,721,324
Weighted-average interest rate
5.19 %
3.23 % 4.70 % As of
March 31, 2017 Fixed Rate
Variable
Rate
Total per Debt
Schedule
Unamortized
Deferred
Financing
Costs
Total Consolidated debt $ 3,389,900 $ 1,149,563 $ 4,539,463
$ (16,983 ) $ 4,522,480 Noncontrolling interests' share of
consolidated debt (107,197 ) (6,855 ) (114,052 ) 903 (113,149 )
Company's share of unconsolidated affiliates' debt 528,040
72,299 600,339 (2,651 )
597,688 Company's share of consolidated and
unconsolidated debt $ 3,810,743 $ 1,215,007 $
5,025,750 $ (18,731 ) $ 5,007,019 Weighted-average
interest rate 5.28 % 2.31 % 4.56 %
Debt-To-Total-Market Capitalization
Ratio as of March 31, 2018(In thousands, except stock
price)
Shares
Outstanding
Stock
Price (1)
Value Common stock and Operating Partnership units 199,950 $
4.17 $ 833,792 7.375% Series D Cumulative Redeemable Preferred
Stock 1,815 250.00 453,750 6.625% Series E Cumulative Redeemable
Preferred Stock 690 250.00 172,500 Total market
equity 1,460,042 Company's share of total debt, excluding
unamortized deferred financing costs 4,740,703 Total
market capitalization $ 6,200,745 Debt-to-total-market
capitalization ratio 76.5 %
(1)
Stock price for common stock and Operating Partnership units
equals the closing price of the common stock on March 29, 2018. The
stock prices for the preferred stocks represent the liquidation
preference of each respective series.
Reconciliation of Shares and Operating
Partnership Units Outstanding(In thousands)
Three Months
EndedMarch 31, Basic Diluted
2018: Weighted-average shares - EPS
171,943
171,943 Weighted-average Operating Partnership units
27,751 27,751 Weighted-average
shares- FFO
199,694 199,694
2017: Weighted-average shares - EPS 170,989
170,989 Weighted-average Operating Partnership units 28,292
28,292 Weighted-average shares- FFO
199,281 199,281
Dividend Payout Ratio
Three Months EndedMarch 31, 2018
2017 Weighted-average cash dividend per share
$
0.20885 $ 0.27281 FFO, as adjusted, per diluted fully
converted share
$ 0.42 $ 0.52 Dividend
payout ratio
49.7 % 52.5 %
Consolidated Balance
Sheets(Unaudited; in thousands, except share data)
As of
March 31,
2018
December 31,
2017
ASSETS Real estate assets: Land
$ 808,228 $
813,390 Buildings and improvements
6,688,716
6,723,194
7,496,944 7,536,584 Accumulated
depreciation
(2,496,629 ) (2,465,095 )
5,000,315 5,071,489 Developments in progress
100,481 85,346 Net investment in real
estate assets
5,100,796 5,156,835 Cash and cash equivalents
23,346 32,627 Receivables:
Tenant, net of allowance for doubtful
accounts of $2,062 and $2,011 in 2018 and 2017, respectively
78,788 83,552 Other, net of allowance for doubtful accounts
of $838 in 2018 and 2017
8,726 7,570 Mortgage and other
notes receivable
8,677 8,945 Investments in unconsolidated
affiliates
306,191 249,192 Intangible lease assets and other
assets
164,613 166,087
$
5,691,137 $ 5,704,808
LIABILITIES,
REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY Mortgage and
other indebtedness, net
$ 4,207,685 $ 4,230,845
Accounts payable and accrued liabilities
232,431
228,650 Total liabilities
4,440,116 4,459,495 Commitments and
contingencies Redeemable noncontrolling interests
6,365 8,835 Shareholders' equity:
Preferred stock, $.01 par value, 15,000,000 shares authorized:
7.375% Series D Cumulative Redeemable
Preferred Stock, 1,815,000 shares outstanding
18 18
6.625% Series E Cumulative Redeemable
Preferred Stock, 690,000 shares outstanding
7 7
Common stock, $.01 par value, 350,000,000
shares authorized, 172,656,783 and 171,088,778 issued and
outstanding in 2018 and 2017, respectively
1,727 1,711 Additional paid-in capital
1,971,983
1,974,537 Dividends in excess of cumulative earnings
(822,173 ) (836,269 ) Total shareholders'
equity
1,151,562 1,140,004 Noncontrolling interests
93,094 96,474 Total equity
1,244,656 1,236,478
$
5,691,137 $ 5,704,808
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180426006758/en/
CBL PropertiesKatie Reinsmidt, 423-490-8301Executive Vice
President - Chief Investment Officerkatie.reinsmidt@cblproperties.com
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