EX-99 3 earningsrelease.txt EXHIBIT 99.1 EARNINGS RELEASE 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. -MORE- 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." -MORE- 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. -MORE- 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. -MORE- 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. -MORE- 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
-MORE- 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 (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: 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 $ - $ - $ - $ - (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.
-MORE- 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% =============== =============
-MORE- 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% =================== (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.
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 =============== ===============
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