Delaware | 1-12494 | 62-1545718 | ||
Delaware | 333-182515-01 | 62-1542285 | ||
(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
2030 Hamilton Place Blvd., Suite 500, Chattanooga, TN 37421 | ||||
(Address of principal executive office, including zip code) | ||||
423.855.0001 | ||||
(Registrant's telephone number, including area code) | ||||
N/A | ||||
(Former name, former address and former fiscal year, if changed since last report) |
£ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
£ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
£ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
£ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(a) | Financial Statements of Businesses Acquired |
(b) | Pro Forma Financial Information |
(c) | Shell Company Transactions |
(d) | Exhibits |
Exhibit Number | Description | |
99.1 | Earnings Release dated October 29, 2014 and Supplemental Financial and Operating Information - For the Three Months and Nine Months Ended September 30, 2014 | |
99.2 | Investor Conference Call Script - Third Quarter Ended September 30, 2014 |
Page | ||
Reconciliations of Non-GAAP Financial Measures: | ||
• | Same-center NOI growth accelerated to 3.0% for the third quarter in the Total Portfolio and 3.3% in the Mall Portfolio. |
• | FFO per diluted share, as adjusted, increased 5.8% to $0.55 for the third quarter 2014, over the prior-year period. |
• | Average gross rent per square foot for stabilized mall leases signed in the third quarter 2014 increased 17.6% over the prior gross rent per square foot. |
• | Same-center Mall occupancy increased 40 basis points to 93.3% in the third quarter 2014 from June 30, 2014. |
• | Same-store sales per square foot increased 0.8% during the third quarter 2014. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Funds from Operations ("FFO") per diluted share | $ | 0.63 | $ | 0.56 | $ | 1.91 | $ | 1.60 | ||||||||
FFO, as adjusted, per diluted share (1) | $ | 0.55 | $ | 0.52 | $ | 1.61 | $ | 1.60 | ||||||||
(1) FFO, as adjusted, for the three months ended September 30, 2014 excludes $16.8 million of gain on extinguishment of debt, net of non-cash default interest expense, related to the conveyance of Chapel Hill Mall in Akron, OH to the lender by a deed-in-lieu of foreclosure. FFO, as adjusted for the nine months ended September 30, 2014 excludes $59.4 million primarily related to gain on extinguishment of debt, net of non-cash default interest expense, related to the conveyance of Chapel Hill Mall and the foreclosure of Citadel Mall. It also excludes a partial litigation settlement of $0.8 million. FFO, as adjusted, for the three and nine months ended September 30, 2013 excludes a partial litigation settlement of $8.2 million and for the nine months ended September 30, 2013 also excludes a loss on extinguishment of debt of $9.1 million and a gain on investment of $2.4 million. |
1 |
Three Months Ended September 30, 2014 | |
Portfolio same-center NOI | 3.0% |
Mall same-center NOI | 3.3% |
(1) CBL's definition of same-center NOI excludes the impact of lease termination fees and certain non-cash items of straight line rents and net amortization of acquired above and below market leases. NOI is for real estate properties and excludes income of the Company's subsidiary that provides maintenance, janitorial and security services. |
• | Contributions from rent growth, including increased new and renewal lease spreads, resulted in $3.0 million of growth in minimum rent and a $2.2 million increase in tenant reimbursements compared with the prior-year period. |
• | Contributions from percentage rents turned positive in the quarter, with an increase of $0.1 million. |
• | Operating and maintenance and repair expenses improved by $0.8 million in the quarter primarily as a result of continued expense controls and cost saving measures. This was partially offset by an increase of $0.2 in real estate taxes. |
As of September 30, | ||||
2014 | 2013 | |||
Portfolio occupancy | 93.7% | 93.8% | ||
Mall portfolio | 93.5% | 93.5% | ||
Same-center stabilized malls | 93.3% | 93.6% | ||
Stabilized malls | 93.3% | 93.4% | ||
Non-stabilized malls | 97.4% | 97.1% | ||
Associated centers | 93.7% | 94.6% | ||
Community centers | 97.6% | 96.1% |
2 |
% Change in Average Gross Rent Per Square Foot | ||
Three Months Ended September 30, 2014 | ||
Stabilized Malls | 17.6% | |
New leases | 23.0% | |
Renewal leases | 15.5% |
Twelve Months Ended September 30, | |||||||||
2014 | 2013 | % Change | |||||||
Stabilized mall same-store sales per square foot | $ | 356 | $ | 363 | (1.9)% |
3 |
• | $2-3 million increase in annual interest expense (net of non-cash default interest) |
• | $2.0 million to $4.0 million of outparcel sales |
• | 0-25 basis point increase in total portfolio occupancy as well as stabilized mall occupancy at year-end |
• | No additional unannounced acquisition or disposition activity |
• | No unannounced capital markets activity - equity or debt |
Low | High | ||||||
Expected diluted earnings per common share | $ | 0.99 | $ | 1.03 | |||
Adjust to fully converted shares from common shares | (0.14 | ) | (0.15 | ) | |||
Expected earnings per diluted, fully converted common share | 0.85 | 0.88 | |||||
Depreciation and amortization | 1.64 | 1.64 | |||||
Noncontrolling interest in earnings of Operating Partnership | 0.14 | 0.15 | |||||
Impairment of real estate | 0.09 | 0.09 | |||||
Expected FFO per diluted, fully converted common share | $ | 2.72 | $ | 2.76 | |||
Net gain on debt extinguishment and litigation settlement (1) | (0.48 | ) | (0.48 | ) | |||
Expected adjusted FFO per diluted, fully converted common share | $ | 2.24 | $ | 2.28 | |||
(1) CBL anticipates receiving a $6.2 million partial insurance settlement in the fourth quarter 2014. This settlement is excluded from adjusted FFO. |
4 |
5 |
6 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
REVENUES: | |||||||||||||||
Minimum rents | $ | 169,097 | $ | 167,703 | $ | 506,005 | $ | 498,632 | |||||||
Percentage rents | 3,060 | 2,797 | 8,490 | 9,847 | |||||||||||
Other rents | 3,813 | 3,837 | 13,708 | 13,503 | |||||||||||
Tenant reimbursements | 71,330 | 70,576 | 214,322 | 213,524 | |||||||||||
Management, development and leasing fees | 3,228 | 3,118 | 9,176 | 9,042 | |||||||||||
Other | 8,186 | 9,518 | 25,189 | 27,067 | |||||||||||
Total revenues | 258,714 | 257,549 | 776,890 | 771,615 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Property operating | 36,668 | 38,375 | 112,206 | 111,170 | |||||||||||
Depreciation and amortization | 72,488 | 68,941 | 212,180 | 206,115 | |||||||||||
Real estate taxes | 22,202 | 22,607 | 65,638 | 66,411 | |||||||||||
Maintenance and repairs | 12,603 | 13,387 | 41,391 | 40,808 | |||||||||||
General and administrative | 9,474 | 10,160 | 35,583 | 36,459 | |||||||||||
Loss on impairment | 497 | — | 17,753 | 21,038 | |||||||||||
Other | 7,396 | 6,371 | 21,331 | 21,217 | |||||||||||
Total operating expenses | 161,328 | 159,841 | 506,082 | 503,218 | |||||||||||
Income from operations | 97,386 | 97,708 | 270,808 | 268,397 | |||||||||||
Interest and other income | 463 | 8,809 | 3,535 | 10,197 | |||||||||||
Interest expense | (60,214 | ) | (56,341 | ) | (179,997 | ) | (173,374 | ) | |||||||
Gain (loss) on extinguishment of debt | 18,282 | — | 60,942 | (9,108 | ) | ||||||||||
Gain on sales of real estate assets | 434 | 58 | 3,513 | 1,058 | |||||||||||
Gain on investment | — | — | — | 2,400 | |||||||||||
Equity in earnings of unconsolidated affiliates | 3,936 | 2,270 | 11,038 | 7,618 | |||||||||||
Income tax provision | (3,083 | ) | (271 | ) | (4,266 | ) | (854 | ) | |||||||
Income from continuing operations | 57,204 | 52,233 | 165,573 | 106,334 | |||||||||||
Operating income (loss) of discontinued operations | 78 | (8,346 | ) | (480 | ) | (5,195 | ) | ||||||||
Gain on discontinued operations | (2 | ) | 290 | 88 | 1,162 | ||||||||||
Net income | 57,280 | 44,177 | 165,181 | 102,301 | |||||||||||
Net income attributable to noncontrolling interests in: | |||||||||||||||
Operating Partnership | (6,576 | ) | (4,075 | ) | (18,847 | ) | (7,602 | ) | |||||||
Other consolidated subsidiaries | (1,362 | ) | (5,778 | ) | (3,740 | ) | (18,338 | ) | |||||||
Net income attributable to the Company | 49,342 | 34,324 | 142,594 | 76,361 | |||||||||||
Preferred dividends | (11,223 | ) | (11,223 | ) | (33,669 | ) | (33,669 | ) | |||||||
Net income attributable to common shareholders | $ | 38,119 | $ | 23,101 | $ | 108,925 | $ | 42,692 | |||||||
Basic and diluted per share data attributable to common shareholders: | |||||||||||||||
Income from continuing operations, net of preferred dividends | $ | 0.22 | $ | 0.18 | $ | 0.64 | $ | 0.28 | |||||||
Discontinued operations | 0.00 | (0.04 | ) | 0.00 | (0.02 | ) | |||||||||
Net income attributable to common shareholders | $ | 0.22 | $ | 0.14 | $ | 0.64 | $ | 0.26 | |||||||
Weighted-average common and potential dilutive common shares outstanding | 170,262 | 169,906 | 170,242 | 166,048 | |||||||||||
Amounts attributable to common shareholders: | |||||||||||||||
Income from continuing operations, net of preferred dividends | $ | 38,054 | $ | 29,965 | $ | 109,259 | $ | 46,116 | |||||||
Discontinued operations | 65 | (6,864 | ) | (334 | ) | (3,424 | ) | ||||||||
Net income attributable to common shareholders | $ | 38,119 | $ | 23,101 | $ | 108,925 | $ | 42,692 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income attributable to common shareholders | $ | 38,119 | $ | 23,101 | $ | 108,925 | $ | 42,692 | |||||||
Noncontrolling interest in income of Operating Partnership | 6,576 | 4,075 | 18,847 | 7,602 | |||||||||||
Depreciation and amortization expense of: | |||||||||||||||
Consolidated properties | 72,488 | 68,941 | 212,180 | 206,115 | |||||||||||
Unconsolidated affiliates | 10,537 | 9,877 | 30,654 | 29,748 | |||||||||||
Discontinued operations | — | 1,634 | — | 6,638 | |||||||||||
Non-real estate assets | (628 | ) | (572 | ) | (1,825 | ) | (1,530 | ) | |||||||
Noncontrolling interests' share of depreciation and amortization | (1,729 | ) | (1,403 | ) | (4,831 | ) | (4,292 | ) | |||||||
Loss on impairment, net of tax benefit | 497 | 5,234 | 18,434 | 26,051 | |||||||||||
Gain on depreciable property | (3 | ) | (8 | ) | (937 | ) | (10 | ) | |||||||
Gain on discontinued operations, net of taxes | 1 | (174 | ) | (86 | ) | (714 | ) | ||||||||
Funds from operations of the Operating Partnership | 125,858 | 110,705 | 381,361 | 312,300 | |||||||||||
Litigation settlement | — | (8,240 | ) | (800 | ) | (8,240 | ) | ||||||||
Gain on investment | — | — | — | (2,400 | ) | ||||||||||
Non cash default interest expense | 1,514 | — | 1,514 | — | |||||||||||
(Gain) loss on extinguishment of debt | (18,282 | ) | — | (60,942 | ) | 9,108 | |||||||||
Funds from operations of the Operating Partnership, as adjusted | $ | 109,090 | $ | 102,465 | $ | 321,133 | $ | 310,768 | |||||||
Funds from operations per diluted share | $ | 0.63 | $ | 0.56 | $ | 1.91 | $ | 1.60 | |||||||
Funds from operations, as adjusted, per diluted share | $ | 0.55 | $ | 0.52 | $ | 1.61 | $ | 1.60 | |||||||
Weighted average common and potential dilutive common shares outstanding with Operating Partnership units fully converted | 199,631 | 199,451 | 199,699 | 195,594 | |||||||||||
Reconciliation of FFO of the Operating Partnership to FFO allocable to common shareholders: | |||||||||||||||
Funds from operations of the Operating Partnership | $ | 125,858 | $ | 110,705 | $ | 381,361 | $ | 312,300 | |||||||
Percentage allocable to common shareholders (1) | 85.29 | % | 85.19 | % | 85.25 | % | 84.89 | % | |||||||
Funds from operations allocable to common shareholders | $ | 107,344 | $ | 94,310 | $ | 325,110 | $ | 265,111 | |||||||
Funds from operations of the Operating Partnership, as adjusted | $ | 109,090 | $ | 102,465 | $ | 321,133 | $ | 310,768 | |||||||
Percentage allocable to common shareholders (1) | 85.29 | % | 85.19 | % | 85.25 | % | 84.89 | % | |||||||
Funds from operations allocable to common shareholders, as adjusted | $ | 93,043 | $ | 87,290 | $ | 273,766 | $ | 263,811 | |||||||
(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 12. | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
SUPPLEMENTAL FFO INFORMATION: | |||||||||||||||
Lease termination fees | $ | 1,044 | $ | 887 | $ | 2,395 | $ | 3,425 | |||||||
Lease termination fees per share | $ | 0.01 | $ | — | $ | 0.01 | $ | 0.02 | |||||||
Straight-line rental income | $ | 1,201 | $ | (2,755 | ) | $ | 2,484 | $ | 81 | ||||||
Straight-line rental income per share | $ | 0.01 | $ | (0.01 | ) | $ | 0.01 | $ | — | ||||||
Gains on outparcel sales | $ | 316 | $ | 35 | $ | 2,461 | $ | 1,035 | |||||||
Gains on outparcel sales per share | $ | — | $ | — | $ | 0.01 | $ | 0.01 | |||||||
Net amortization of acquired above- and below-market leases | $ | 139 | $ | 642 | $ | 544 | $ | 1,271 | |||||||
Net amortization of acquired above- and below-market leases per share | $ | — | $ | — | $ | — | $ | 0.01 | |||||||
Net amortization of debt premiums and discounts | $ | 545 | $ | 639 | $ | 1,625 | $ | 1,715 | |||||||
Net amortization of debt premiums and discounts per share | $ | — | $ | — | $ | 0.01 | $ | 0.01 | |||||||
Income tax provision | $ | (3,083 | ) | $ | (271 | ) | $ | (4,266 | ) | $ | (854 | ) | |||
Income tax provision per share | $ | (0.02 | ) | $ | — | $ | (0.02 | ) | $ | — | |||||
Loss on impairment from continuing operations | $ | (497 | ) | $ | — | $ | (17,753 | ) | $ | (21,038 | ) | ||||
Loss on impairment from continuing operations per share | $ | — | $ | — | $ | (0.09 | ) | $ | (0.11 | ) | |||||
Loss on impairment from discontinued operations | $ | — | $ | (5,234 | ) | $ | (681 | ) | $ | (5,234 | ) | ||||
Loss on impairment from discontinued operations per share | $ | — | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | |||||
Gain (loss) on extinguishment of debt | $ | 18,282 | $ | — | $ | 60,942 | $ | (9,108 | ) | ||||||
Gain (loss) on extinguishment of debt per share | $ | 0.09 | $ | — | $ | 0.31 | $ | (0.05 | ) | ||||||
Gain on investment | $ | — | $ | — | $ | — | $ | 2,400 | |||||||
Gain on investment per share | $ | — | $ | — | $ | — | $ | 0.01 | |||||||
Interest capitalized | $ | 1,672 | $ | 1,277 | $ | 4,538 | $ | 3,206 | |||||||
Interest capitalized per share | $ | 0.01 | $ | 0.01 | $ | 0.02 | $ | 0.02 | |||||||
Litigation settlement | $ | — | $ | 8,240 | $ | 800 | $ | 8,240 | |||||||
Litigation settlement per share | $ | — | $ | 0.04 | $ | — | $ | 0.04 |
As of September 30, | |||||||
2014 | 2013 | ||||||
Straight-line rent receivable | $ | 64,123 | $ | 61,640 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income attributable to the Company | $ | 49,342 | $ | 34,324 | $ | 142,594 | $ | 76,361 | |||||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 72,488 | 68,941 | 212,180 | 206,115 | |||||||||||
Depreciation and amortization from unconsolidated affiliates | 10,537 | 9,877 | 30,654 | 29,748 | |||||||||||
Depreciation and amortization from discontinued operations | — | 1,634 | — | 6,638 | |||||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (1,729 | ) | (1,403 | ) | (4,831 | ) | (4,292 | ) | |||||||
Interest expense | 60,214 | 56,341 | 179,997 | 173,374 | |||||||||||
Interest expense from unconsolidated affiliates | 9,719 | 9,840 | 28,872 | 29,677 | |||||||||||
Interest expense from discontinued operations | — | — | — | 1 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,375 | ) | (1,076 | ) | (3,993 | ) | (3,029 | ) | |||||||
Abandoned projects expense | 47 | 140 | 81 | 141 | |||||||||||
Gain on sales of real estate assets | (434 | ) | (58 | ) | (3,513 | ) | (1,058 | ) | |||||||
Gain on sales of real estate assets of unconsolidated affiliates | (698 | ) | (11 | ) | (698 | ) | (11 | ) | |||||||
Gain on investment | — | — | — | (2,400 | ) | ||||||||||
(Gain) loss on extinguishment of debt | (18,282 | ) | — | (60,942 | ) | 9,108 | |||||||||
Loss on impairment | 497 | — | 17,753 | 21,038 | |||||||||||
Loss on impairment from discontinued operations | — | 5,234 | 681 | 5,234 | |||||||||||
Income tax provision | 3,083 | 271 | 4,266 | 854 | |||||||||||
Lease termination fees | (1,044 | ) | (887 | ) | (2,395 | ) | (3,425 | ) | |||||||
Straight-line rent and above- and below-market lease amortization | (1,340 | ) | 2,113 | (3,028 | ) | (1,352 | ) | ||||||||
Net income attributable to noncontrolling interest in earnings of Operating Partnership | 6,576 | 4,075 | 18,847 | 7,602 | |||||||||||
Gain on discontinued operations | 2 | (290 | ) | (88 | ) | (1,162 | ) | ||||||||
General and administrative expenses | 9,474 | 10,160 | 35,583 | 36,459 | |||||||||||
Management fees and non-property level revenues | (4,284 | ) | (10,270 | ) | (18,736 | ) | (14,027 | ) | |||||||
Company's share of property NOI | 192,793 | 188,955 | 573,284 | 571,594 | |||||||||||
Non-comparable NOI | (17,570 | ) | (18,838 | ) | (49,942 | ) | (59,415 | ) | |||||||
Total same-center NOI (1) | $ | 175,223 | $ | 170,117 | $ | 523,342 | $ | 512,179 | |||||||
Total same-center NOI percentage change | 3.0 | % | 2.2 | % | |||||||||||
Malls | $ | 160,369 | $ | 155,211 | $ | 479,020 | $ | 468,787 | |||||||
Associated centers | 7,988 | 7,576 | 23,742 | 23,232 | |||||||||||
Community centers | 4,928 | 5,539 | 14,585 | 14,615 | |||||||||||
Offices and other | 1,938 | 1,791 | 5,995 | 5,545 | |||||||||||
Total same-center NOI (1) | $ | 175,223 | $ | 170,117 | $ | 523,342 | $ | 512,179 | |||||||
Percentage Change: | |||||||||||||||
Malls | 3.3 | % | 2.2 | % | |||||||||||
Associated centers | 5.4 | % | 2.2 | % | |||||||||||
Community centers | (11.0 | )% | (0.2 | )% | |||||||||||
Offices and other | 8.2 | % | 8.1 | % | |||||||||||
Total same-center NOI (1) | 3.0 | % | 2.2 | % | |||||||||||
(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, and amortization of above and below market lease intangibles. Same-center NOI is for real estate properties and does not include the results of operations of the Company's subsidiary that provides janitorial, security and maintenance services. We include a property in our same-center pool when we own all or a portion of the property as of September 30, 2014, 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 September 30, 2014. New properties are excluded from same-center NOI, until they meet this criteria. The only properties excluded from the same-center pool that would otherwise meet this criteria are non-core properties, properties under major redevelopment, properties where we intend to renegotiate the terms of the debt secured by the related property and properties included in discontinued operations. |
As of September 30, 2014 | ||||||||||||
Fixed Rate | Variable Rate | Total | ||||||||||
Consolidated debt | $ | 3,788,890 | $ | 922,531 | $ | 4,711,421 | ||||||
Noncontrolling interests' share of consolidated debt | (89,065 | ) | (7,109 | ) | (96,174 | ) | ||||||
Company's share of unconsolidated affiliates' debt | 673,412 | 89,220 | 762,632 | |||||||||
Company's share of consolidated and unconsolidated debt | $ | 4,373,237 | $ | 1,004,642 | $ | 5,377,879 | ||||||
Weighted average interest rate | 5.44 | % | 1.74 | % | 4.74 | % | ||||||
As of September 30, 2013 | ||||||||||||
Fixed Rate | Variable Rate | Total | ||||||||||
Consolidated debt | $ | 3,517,089 | $ | 1,350,628 | $ | 4,867,717 | ||||||
Noncontrolling interests' share of consolidated debt | (67,828 | ) | (5,684 | ) | (73,512 | ) | ||||||
Company's share of unconsolidated affiliates' debt | 655,340 | 138,042 | 793,382 | |||||||||
Company's share of consolidated and unconsolidated debt | $ | 4,104,601 | $ | 1,482,986 | $ | 5,587,587 | ||||||
Weighted average interest rate | 5.52 | % | 2.01 | % | 4.59 | % |
Shares Outstanding | Stock Price (1) | Value | |||||||||
Common stock and operating partnership units | 199,544 | $ | 17.90 | $ | 3,571,838 | ||||||
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 | 4,198,088 | ||||||||||
Company's share of total debt | 5,377,879 | ||||||||||
Total market capitalization | $ | 9,575,967 | |||||||||
Debt-to-total-market capitalization ratio | 56.2 | % | |||||||||
(1) Stock price for common stock and operating partnership units equals the closing price of the common stock on September 30, 2014. The stock prices for the preferred stocks represent the liquidation preference of each respective series. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2014: | Basic | Diluted | Basic | Diluted | ||||||||
Weighted average shares - EPS | 170,262 | 170,262 | 170,242 | 170,242 | ||||||||
Weighted average Operating Partnership units | 29,369 | 29,369 | 29,457 | 29,457 | ||||||||
Weighted average shares- FFO | 199,631 | 199,631 | 199,699 | 199,699 | ||||||||
2013: | ||||||||||||
Weighted average shares - EPS | 169,906 | 169,906 | 166,048 | 166,048 | ||||||||
Weighted average Operating Partnership units | 29,545 | 29,545 | 29,546 | 29,546 | ||||||||
Weighted average shares- FFO | 199,451 | 199,451 | 195,594 | 195,594 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Weighted average cash dividend per share | $ | 0.25313 | $ | 0.23838 | $ | 0.75938 | $ | 0.71540 | ||||||||
FFO as adjusted, per diluted fully converted share | $ | 0.55 | $ | 0.52 | $ | 1.61 | $ | 1.60 | ||||||||
Dividend payout ratio | 46.0 | % | 45.8 | % | 47.2 | % | 44.7 | % |
Consolidated Balance Sheets (Unaudited; in thousands, except share data) | |||||||
As of | |||||||
September 30, 2014 | December 31, 2013 | ||||||
ASSETS | |||||||
Real estate assets: | |||||||
Land | $ | 848,596 | $ | 858,619 | |||
Buildings and improvements | 7,138,545 | 7,125,512 | |||||
7,987,141 | 7,984,131 | ||||||
Accumulated depreciation | (2,183,912 | ) | (2,056,357 | ) | |||
5,803,229 | 5,927,774 | ||||||
Developments in progress | 151,670 | 139,383 | |||||
Net investment in real estate assets | 5,954,899 | 6,067,157 | |||||
Cash and cash equivalents | 45,071 | 65,500 | |||||
Receivables: | |||||||
Tenant, net of allowance for doubtful accounts of $2,412 and $2,379 in 2014 and 2013, respectively | 79,960 | 79,899 | |||||
Other, net of allowance for doubtful accounts of $1,158 and $1,241 in 2014 and 2013, respectively | 24,412 | 23,343 | |||||
Mortgage and other notes receivable | 19,513 | 30,424 | |||||
Investments in unconsolidated affiliates | 269,964 | 277,146 | |||||
Intangible lease assets and other assets | 238,892 | 242,502 | |||||
$ | 6,632,711 | $ | 6,785,971 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Mortgage and other indebtedness | $ | 4,711,421 | $ | 4,857,523 | |||
Accounts payable and accrued liabilities | 347,382 | 333,875 | |||||
Total liabilities | 5,058,803 | 5,191,398 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling partnership interests | 34,843 | 34,639 | |||||
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, 170,260,669 and 170,048,144 issued and outstanding in 2014 and 2013, respectively | 1,703 | 1,700 | |||||
Additional paid-in capital | 1,962,187 | 1,967,644 | |||||
Accumulated other comprehensive income | 12,805 | 6,325 | |||||
Dividends in excess of cumulative earnings | (587,000 | ) | (570,781 | ) | |||
Total shareholders' equity | 1,389,720 | 1,404,913 | |||||
Noncontrolling interests | 149,345 | 155,021 | |||||
Total equity | 1,539,065 | 1,559,934 | |||||
$ | 6,632,711 | $ | 6,785,971 |
As of | |||||||
September 30, 2014 | December 31, 2013 | ||||||
ASSETS: | |||||||
Investment in real estate assets | $ | 2,243,113 | $ | 2,167,227 | |||
Accumulated depreciation | (603,622 | ) | (555,174 | ) | |||
1,639,491 | 1,612,053 | ||||||
Developments in progress | 57,875 | 103,161 | |||||
Net investment in real estate assets | 1,697,366 | 1,715,214 | |||||
Other assets | 183,920 | 168,799 | |||||
Total assets | $ | 1,881,286 | $ | 1,884,013 | |||
LIABILITIES: | |||||||
Mortgage and other indebtedness | $ | 1,505,907 | $ | 1,468,422 | |||
Other liabilities | 47,765 | 48,203 | |||||
Total liabilities | 1,553,672 | 1,516,625 | |||||
OWNERS' EQUITY: | |||||||
The Company | 187,714 | 213,664 | |||||
Other investors | 139,900 | 153,724 | |||||
Total owners' equity | 327,614 | 367,388 | |||||
Total liabilities and owners’ equity | $ | 1,881,286 | $ | 1,884,013 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Total revenues | $ | 61,781 | $ | 59,348 | $ | 185,002 | $ | 180,091 | |||||||
Depreciation and amortization | (19,776 | ) | (18,889 | ) | (57,793 | ) | (57,158 | ) | |||||||
Operating expenses | (17,788 | ) | (18,045 | ) | (53,457 | ) | (54,240 | ) | |||||||
Income from operations | 24,217 | 22,414 | 73,752 | 68,693 | |||||||||||
Interest income | 336 | 340 | 1,015 | 1,017 | |||||||||||
Interest expense | (18,861 | ) | (19,150 | ) | (56,165 | ) | (57,861 | ) | |||||||
Gain on sales of real estate assets | 1,119 | 21 | 1,119 | 21 | |||||||||||
Net income | $ | 6,811 | $ | 3,625 | $ | 19,721 | $ | 11,870 |
Company's Share for the Three Months Ended September 30, | Company's Share for the Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Total revenues | $ | 32,371 | $ | 30,556 | $ | 96,389 | $ | 93,002 | |||||||
Depreciation and amortization | (10,537 | ) | (9,877 | ) | (30,654 | ) | (29,748 | ) | |||||||
Operating expenses | (9,134 | ) | (8,822 | ) | (27,298 | ) | (26,683 | ) | |||||||
Income from operations | 12,700 | 11,857 | 38,437 | 36,571 | |||||||||||
Interest income | 257 | 242 | 775 | 713 | |||||||||||
Interest expense | (9,719 | ) | (9,840 | ) | (28,872 | ) | (29,677 | ) | |||||||
Gain on sales of real estate assets | 698 | 11 | 698 | 11 | |||||||||||
Net income | $ | 3,936 | $ | 2,270 | $ | 11,038 | $ | 7,618 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
EBITDA: | |||||||||||||||
Net income attributable to the Company | $ | 49,342 | $ | 34,324 | $ | 142,594 | $ | 76,361 | |||||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 72,488 | 68,941 | 212,180 | 206,115 | |||||||||||
Depreciation and amortization from unconsolidated affiliates | 10,537 | 9,877 | 30,654 | 29,748 | |||||||||||
Depreciation and amortization from discontinued operations | — | 1,634 | — | 6,638 | |||||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (1,729 | ) | (1,403 | ) | (4,831 | ) | (4,292 | ) | |||||||
Interest expense | 60,214 | 56,341 | 179,997 | 173,374 | |||||||||||
Interest expense from unconsolidated affiliates | 9,719 | 9,840 | 28,872 | 29,677 | |||||||||||
Interest expense from discontinued operations | — | — | — | 1 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,375 | ) | (1,076 | ) | (3,993 | ) | (3,029 | ) | |||||||
Income and other taxes | 3,394 | 1,823 | 5,897 | 3,326 | |||||||||||
(Gain) loss on extinguishment of debt | (18,282 | ) | — | (60,942 | ) | 9,108 | |||||||||
Loss on impairment | 497 | — | 17,753 | 21,038 | |||||||||||
Loss on impairment from discontinued operations | — | 5,234 | 681 | 5,234 | |||||||||||
Abandoned projects | 47 | 140 | 81 | 141 | |||||||||||
Gain on investment | — | — | — | (2,400 | ) | ||||||||||
Net income attributable to noncontrolling interest in earnings of Operating Partnership | 6,576 | 4,075 | 18,847 | 7,602 | |||||||||||
Gain on depreciable property | (3 | ) | (8 | ) | (937 | ) | (10 | ) | |||||||
Gain on discontinued operations | 2 | (290 | ) | (88 | ) | (1,152 | ) | ||||||||
Company's share of total EBITDA | $ | 191,427 | $ | 189,452 | $ | 566,765 | $ | 557,480 | |||||||
Interest Expense: | |||||||||||||||
Interest expense | $ | 60,214 | $ | 56,341 | $ | 179,997 | $ | 173,374 | |||||||
Interest expense from unconsolidated affiliates | 9,719 | 9,840 | 28,872 | 29,677 | |||||||||||
Interest expense from discontinued operations | — | — | — | 1 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,375 | ) | (1,076 | ) | (3,993 | ) | (3,029 | ) | |||||||
Company's share of total interest expense | $ | 68,558 | $ | 65,105 | $ | 204,876 | $ | 200,023 | |||||||
Ratio of EBITDA to Interest Expense | 2.79 | 2.91 | 2.77 | 2.79 |
Reconciliation of EBITDA to Cash Flows Provided By Operating Activities (In thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Company's share of total EBITDA | $ | 191,427 | $ | 189,452 | $ | 566,765 | $ | 557,480 | |||||||
Interest expense | (60,214 | ) | (56,341 | ) | (179,997 | ) | (173,374 | ) | |||||||
Interest expense from discontinued operations | — | — | — | (1 | ) | ||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | 1,375 | 1,076 | 3,993 | 3,029 | |||||||||||
Income and other taxes | (3,394 | ) | (1,823 | ) | (5,897 | ) | (3,326 | ) | |||||||
Net amortization of deferred financing costs and debt premiums (discounts) | 1,200 | 1,148 | 4,557 | 3,650 | |||||||||||
Net amortization of deferred financing costs and debt premiums (discounts) from discontinued operations | — | — | — | 1 | |||||||||||
Net amortization of intangible lease assets and liabilities | 268 | 69 | 535 | (111 | ) | ||||||||||
Depreciation and interest expense from unconsolidated affiliates | (20,256 | ) | (19,717 | ) | (59,526 | ) | (59,425 | ) | |||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | 1,729 | 1,403 | 4,831 | 4,292 | |||||||||||
Noncontrolling interests in earnings of other consolidated subsidiaries | 1,362 | 5,778 | 3,740 | 18,338 | |||||||||||
Gains on outparcel sales | (431 | ) | (58 | ) | (2,576 | ) | (1,058 | ) | |||||||
Equity in earnings of unconsolidated affiliates | (3,936 | ) | (2,270 | ) | (11,038 | ) | (7,618 | ) | |||||||
Distributions of earnings from unconsolidated affiliates | 5,598 | 3,314 | 14,563 | 11,225 | |||||||||||
Share-based compensation expense | 713 | 421 | 3,318 | 2,308 | |||||||||||
Provision for doubtful accounts | 772 | 532 | 2,684 | 1,459 | |||||||||||
Change in deferred tax assets | 925 | (158 | ) | 1,241 | 1,666 | ||||||||||
Changes in operating assets and liabilities | 6,080 | 23,534 | (17,859 | ) | (22,497 | ) | |||||||||
Cash flows provided by operating activities | $ | 123,218 | $ | 146,360 | $ | 329,334 | $ | 336,038 |
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | ||||||||||
Fixed | Variable | |||||||||||||||
Operating Properties: | ||||||||||||||||
Columbia Place | Columbia, SC | Sep-13 | 5.45% | $ | 27,265 | (a) | $ | 27,265 | $ | — | ||||||
Mall del Norte | Laredo, TX | Dec-14 | 5.04% | 113,400 | 113,400 | — | ||||||||||
The Promenade | D'lberville, MS | Dec-14 | Dec-18 | 1.87% | 48,110 | — | 48,110 | |||||||||
Imperial Valley Mall | El Centro, CA | Sep-15 | 4.99% | 50,285 | 50,285 | — | ||||||||||
CherryVale Mall | Rockford, IL | Oct-15 | 5.00% | 78,811 | 78,811 | — | ||||||||||
Brookfield Square | Brookfield, WI | Nov-15 | 5.08% | 88,402 | 88,402 | — | ||||||||||
East Towne Mall | Madison, WI | Nov-15 | 5.00% | 67,222 | 67,222 | — | ||||||||||
West Towne Mall | Madison, WI | Nov-15 | 5.00% | 94,951 | 94,951 | — | ||||||||||
Eastland Mall | Bloomington, IL | Dec-15 | 5.85% | 59,400 | 59,400 | — | ||||||||||
Hickory Point Mall | Decatur, IL | Dec-15 | 5.85% | 28,508 | 28,508 | — | ||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | Feb-16 | 5.87% | 38,859 | 38,859 | — | ||||||||||
CoolSprings Crossing | Nashville, TN | Apr-16 | 4.54% | 12,069 | (b) | 12,069 | — | |||||||||
Gunbarrel Pointe | Chattanooga, TN | Apr-16 | 4.64% | 10,751 | (c) | 10,751 | — | |||||||||
Janesville Mall | Janesville, WI | Apr-16 | 8.38% | 2,745 | 2,745 | — | ||||||||||
Stroud Mall | Stroud, PA | Apr-16 | 4.59% | 32,291 | (d) | 32,291 | — | |||||||||
York Galleria | York, PA | Apr-16 | 4.55% | 51,566 | (e) | 51,566 | — | |||||||||
Statesboro Crossing | Statesboro, GA | Jun-16 | Jun-18 | 1.95% | 11,243 | — | 11,243 | |||||||||
Greenbrier Mall | Chesapeake, VA | Aug-16 | 5.91% | 74,325 | 74,325 | — | ||||||||||
Hamilton Place | Chattanooga, TN | Aug-16 | 5.86% | 102,203 | 102,203 | — | ||||||||||
Midland Mall | Midland, MI | Aug-16 | 6.10% | 33,362 | 33,362 | — | ||||||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | Aug-16 | Aug-18 | 2.15% | 42,264 | — | 42,264 | |||||||||
Chesterfield Mall | St. Louis, MO | Sep-16 | 5.74% | 140,000 | 140,000 | — | ||||||||||
Dakota Square Mall | Minot, ND | Nov-16 | 6.23% | 56,947 | 56,947 | — | ||||||||||
Southaven Towne Center | Southaven, MS | Jan-17 | 5.50% | 40,254 | 40,254 | — | ||||||||||
Cary Towne Center | Cary, NC | Mar-17 | 8.50% | 51,877 | 51,877 | — | ||||||||||
Acadiana Mall | Lafayette, LA | Apr-17 | 5.67% | 132,799 | 132,799 | — | ||||||||||
Hamilton Corner | Chattanooga, TN | Apr-17 | 5.67% | 15,047 | 15,047 | — | ||||||||||
Layton Hills Mall | Layton, UT | Apr-17 | 5.66% | 94,906 | 94,906 | — | ||||||||||
The Plaza at Fayette Mall | Lexington, KY | Apr-17 | 5.67% | 39,204 | 39,204 | — | ||||||||||
The Shoppes at St. Clair Square | Fairview Heights, IL | Apr-17 | 5.67% | 19,869 | 19,869 | — | ||||||||||
EastGate Crossing | Cincinnati, OH | May-17 | 5.66% | 14,788 | 14,788 | — | ||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | Dec-17 | 7.06% | 64,749 | 64,749 | — | ||||||||||
Kirkwood Mall | Bismarck, ND | Apr-18 | 5.75% | 39,392 | 39,392 | — | ||||||||||
Hanes Mall | Winston-Salem, NC | Oct-18 | 6.99% | 152,198 | 152,198 | — | ||||||||||
The Outlet Shoppes at Oklahoma City Phase II | Oklahoma City, OK | Apr-19 | Apr-21 | 2.90% | 5,948 | — | 5,948 | |||||||||
Honey Creek Mall | Terre Haute, IN | Jul-19 | 8.00% | 29,238 | 29,238 | — | ||||||||||
Volusia Mall | Daytona Beach, FL | Jul-19 | 8.00% | 50,296 | 50,296 | — | ||||||||||
The Terrace | Chattanooga, TN | Jun-20 | 7.25% | 13,755 | 13,755 | — | ||||||||||
Burnsville Center | Burnsville, MN | Jul-20 | 6.00% | 76,216 | 76,216 | — | ||||||||||
Parkway Place | Huntsville, AL | Jul-20 | 6.50% | 38,789 | 38,789 | — | ||||||||||
Valley View Mall | Roanoke, VA | Jul-20 | 6.50% | 60,031 | 60,031 | — | ||||||||||
Parkdale Mall & Crossing | Beaumont, TX | Mar-21 | 5.85% | 88,479 | 88,479 | — | ||||||||||
EastGate Mall | Cincinnati, OH | Apr-21 | 5.83% | 40,171 | 40,171 | — | ||||||||||
Hamilton Crossing & Expansion | Chattanooga, TN | Apr-21 | 5.99% | 9,910 | 9,910 | — | ||||||||||
Park Plaza Mall | Little Rock, AR | Apr-21 | 5.28% | 92,221 | 92,221 | — |
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | ||||||||||
Fixed | Variable | |||||||||||||||
Wausau Center | Wausau, WI | Apr-21 | 5.85% | 18,477 | 18,477 | — | ||||||||||
Fayette Mall | Lexington, KY | May-21 | 5.42% | 172,245 | 172,245 | — | ||||||||||
Alamance Crossing - East | Burlington, NC | Jul-21 | 5.83% | 48,839 | 48,839 | — | ||||||||||
Asheville Mall | Asheville, NC | Sep-21 | 5.80% | 73,661 | 73,661 | — | ||||||||||
Cross Creek Mall | Fayetteville, NC | Jan-22 | 4.54% | 131,456 | 131,456 | — | ||||||||||
The Outlet Shoppes at Oklahoma City | Oklahoma City, OK | Jan-22 | 5.73% | 56,888 | 56,888 | — | ||||||||||
Northwoods Mall | North Charleston, SC | Apr-22 | 5.08% | 70,477 | 70,477 | — | ||||||||||
Arbor Place | Douglasville, GA | May-22 | 5.10% | 117,965 | 117,965 | — | ||||||||||
CBL Center | Chattanooga, TN | Jun-22 | 5.00% | 20,691 | 20,691 | — | ||||||||||
Fashion Square | Saginaw, MI | Jun-22 | 4.95% | 39,975 | 39,975 | — | ||||||||||
Jefferson Mall | Louisville, KY | Jun-22 | 4.75% | 68,760 | 68,760 | — | ||||||||||
Southpark Mall | Colonial Heights, VA | Jun-22 | 4.85% | 64,754 | 64,754 | — | ||||||||||
WestGate Mall | Spartanburg, SC | Jul-22 | 4.99% | 38,157 | 38,157 | — | ||||||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | Nov-23 | 4.90% | 79,003 | 79,003 | — | ||||||||||
SUBTOTAL | $ | 3,436,464 | $ | 3,328,899 | $ | 107,565 | ||||||||||
Weighted average interest rate | 5.42 | % | 5.53 | % | 2.05 | % | ||||||||||
Debt Premiums (Discounts): (f) | ||||||||||||||||
Imperial Valley Mall | El Centro, CA | Sep-15 | 3.75% | $ | 614 | $ | 614 | $ | — | |||||||
Chesterfield Mall | St. Louis, MO | Sep-16 | 5.96% | (531 | ) | (531 | ) | — | ||||||||
Dakota Square Mall | Minot, ND | Nov-16 | 5.03% | 1,524 | 1,524 | — | ||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | Dec-17 | 4.75% | 4,462 | 4,462 | — | ||||||||||
Kirkwood Mall | Bismarck, ND | Apr-18 | 4.25% | 2,069 | 2,069 | — | ||||||||||
SUBTOTAL | $ | 8,138 | $ | 8,138 | $ | — | ||||||||||
Weighted average interest rate | 4.52 | % | 4.52 | % | ||||||||||||
Total Loans On Operating Properties And Debt Premiums (Discounts) | $ | 3,444,602 | $ | 3,337,037 | $ | 107,565 | ||||||||||
Weighted average interest rate | 5.42 | % | 5.53 | % | 2.05 | % | ||||||||||
Construction Loans: | ||||||||||||||||
The Outlet Shoppes at Oklahoma City Phase III | Oklahoma City, OK | Apr-19 | Apr-21 | 2.91% | $ | 2,146 | $ | — | $ | 2,146 | ||||||
The Outlet Shoppes at El Paso Phase II | El Paso, TX | Apr-18 | 2.90% | 4,596 | — | 4,596 | ||||||||||
SUBTOTAL | $ | 6,742 | $ | — | $ | 6,742 | ||||||||||
Operating Partnership Debt: | ||||||||||||||||
Unsecured credit facilities: | ||||||||||||||||
$600,000 capacity | Nov-15 | Nov-16 | 1.55% | $ | 201,841 | $ | — | $ | 201,841 | |||||||
$100,000 capacity | Feb-16 | 1.56% | 7,000 | — | 7,000 | |||||||||||
$600,000 capacity | Nov-16 | Nov-17 | 1.55% | 149,383 | — | 149,383 | ||||||||||
SUBTOTAL | $ | 358,224 | $ | — | $ | 358,224 | ||||||||||
Unsecured term loans: | ||||||||||||||||
$50,000 term loan | Feb-18 | 2.06% | $ | 50,000 | $ | — | $ | 50,000 | ||||||||
$400,000 term loan | Jul-18 | 1.65% | 400,000 | — | 400,000 | |||||||||||
SUBTOTAL | $ | 450,000 | $ | — | $ | 450,000 | ||||||||||
Senior unsecured notes: | ||||||||||||||||
Senior unsecured 5.25% notes | Dec-23 | 5.25% | $ | 450,000 | $ | 450,000 | $ | — | ||||||||
Senior unsecured 5.25% notes (discount) | Dec-23 | 5.25% | (4,322 | ) | (4,322 | ) | — | |||||||||
SUBTOTAL | $ | 445,678 | $ | 445,678 | $ | — | ||||||||||
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | ||||||||||
Fixed | Variable | |||||||||||||||
Other: | ||||||||||||||||
ERMC note (term loan) | May-17 | 3.50% | $ | 6,175 | $ | 6,175 | $ | — | ||||||||
Total Consolidated Debt | $ | 4,711,421 | $ | 3,788,890 | $ | 922,531 | ||||||||||
Weighted average interest rate | 4.75 | % | 5.49 | % | 1.69 | % | ||||||||||
Plus CBL's Share Of Unconsolidated Affiliates' Debt: | ||||||||||||||||
Gulf Coast Town Center Phase III | Ft. Myers, FL | Jul-15 | 2.75% | $ | 5,840 | $ | — | $ | 5,840 | |||||||
Hammock Landing Phase I | West Melbourne, FL | Nov-15 | Nov-17 | 2.15% | 20,218 | — | 20,218 | |||||||||
Hammock Landing Phase II | West Melbourne, FL | Nov-15 | Nov-17 | 2.40% | 5,379 | — | 5,379 | |||||||||
The Pavilion at Port Orange | Port Orange, FL | Nov-15 | Nov-17 | 2.15% | 30,551 | — | 30,551 | |||||||||
Oak Park Mall | Overland Park, KS | Dec-15 | 5.85% | 137,850 | 137,850 | — | ||||||||||
Triangle Town Center | Raleigh, NC | Dec-15 | 5.74% | 88,109 | 88,109 | — | ||||||||||
Renaissance Center Phase I | Durham, NC | Jul-16 | 5.61% | 16,304 | 16,304 | — | ||||||||||
Fremaux Town Center Phase I | Slidell, LA | Aug-16 | Aug-18 | 2.16% | 24,466 | — | 24,466 | |||||||||
Fremaux Town Center Phase II | Slidell, LA | Aug-16 | Aug-18 | 2.16% | 2,045 | — | 2,045 | |||||||||
Governor's Square | Clarksville, TN | Sep-16 | 8.23% | 8,638 | 8,638 | — | ||||||||||
Kentucky Oaks Mall | Paducah, KY | Jan-17 | 5.27% | 11,094 | 11,094 | — | ||||||||||
The Shops at Friendly Center | Greensboro, NC | Jan-17 | 5.90% | 19,852 | 19,852 | — | ||||||||||
High Pointe Commons | Harrisburg, PA | May-17 | 5.74% | 6,613 | 6,613 | — | ||||||||||
Gulf Coast Town Center Phase I | Ft. Myers, FL | Jul-17 | 5.60% | 95,400 | 95,400 | — | ||||||||||
High Pointe Commons Phase II | Harrisburg, PA | Jul-17 | 6.10% | 2,638 | 2,638 | — | ||||||||||
CoolSprings Galleria | Nashville, TN | Jun-18 | 6.98% | 53,021 | 53,021 | — | ||||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 17,982 | 17,982 | — | ||||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 2.91% | 721 | — | 721 | ||||||||||
West County Center | St. Louis, MO | Dec-22 | 3.40% | 95,000 | 95,000 | — | ||||||||||
Friendly Shopping Center | Greensboro, NC | Apr-23 | 3.48% | 50,000 | 50,000 | — | ||||||||||
Renaissance Center Phase II | Durham, NC | Apr-23 | 3.49% | 8,000 | 8,000 | — | ||||||||||
Coastal Grand-Myrtle Beach | Myrtle Beach, SC | Aug-24 | 4.09% | 60,015 | 60,015 | — | ||||||||||
Coastal Grand Outparcel-Myrtle Beach | Myrtle Beach, SC | Aug-24 | 4.09% | 2,896 | 2,896 | — | ||||||||||
SUBTOTAL | $ | 762,632 | $ | 673,412 | $ | 89,220 | ||||||||||
Less Noncontrolling Interests' Share Of Consolidated Debt: | Noncontrolling Interest % | |||||||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | 50% | 5.87% | $ | (19,429 | ) | $ | (19,429 | ) | $ | — | |||||
Statesboro Crossing | Statesboro, GA | 50% | 1.95% | (5,622 | ) | — | (5,622 | ) | ||||||||
Hamilton Place | Chattanooga, TN | 10% | 5.86% | (10,220 | ) | (10,220 | ) | — | ||||||||
Hamilton Corner | Chattanooga, TN | 10% | 5.67% | (1,505 | ) | (1,505 | ) | — | ||||||||
ERMC note (term loan) | Chattanooga, TN | 50% | 3.50% | (3,087 | ) | (3,087 | ) | — | ||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 25% | 7.06% | (16,187 | ) | (16,187 | ) | — | ||||||||
The Outlet Shoppes at Oklahoma City Phase II | Oklahoma City, OK | 25% | 2.90% | (1,487 | ) | — | (1,487 | ) | ||||||||
The Terrace | Chattanooga, TN | 8% | 7.25% | (1,100 | ) | (1,100 | ) | — | ||||||||
Hamilton Crossing & Expansion | Chattanooga, TN | 8% | 5.99% | (793 | ) | (793 | ) | — | ||||||||
The Outlet Shoppes at Oklahoma City | Oklahoma City, OK | 25% | 5.73% | (14,222 | ) | (14,222 | ) | — | ||||||||
CBL Center | Chattanooga, TN | 8% | 5.00% | (1,655 | ) | (1,655 | ) | — | ||||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | 25% | 4.90% | (19,751 | ) | (19,751 | ) | — | ||||||||
SUBTOTAL | $ | (95,058 | ) | $ | (87,949 | ) | $ | (7,109 | ) | |||||||
Less Noncontrolling Interests' Share Of Debt Premiums: (f) | ||||||||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 25% | 4.75% | $ | (1,116 | ) | $ | (1,116 | ) | $ | — | |||||
Company's Share Of Consolidated And Unconsolidated Debt | $ | 5,377,879 | $ | 4,373,237 | $ | 1,004,642 | ||||||||||
Weighted average interest rate | 4.74 | % | 5.44 | % | 1.74 | % | ||||||||||
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | ||||||||||
Fixed | Variable | |||||||||||||||
Total Debt of Unconsolidated Affiliates: | ||||||||||||||||
Gulf Coast Town Center Phase III | Ft. Myers, FL | Jul-15 | 2.75% | $ | 5,840 | $ | — | $ | 5,840 | |||||||
Hammock Landing Phase I | West Melbourne, FL | Nov-15 | Nov-17 | 2.15% | 40,435 | — | 40,435 | |||||||||
Hammock Landing Phase II | West Melbourne, FL | Nov-15 | Nov-17 | 2.40% | 10,757 | — | 10,757 | |||||||||
The Pavilion at Port Orange | Port Orange, FL | Nov-15 | Nov-17 | 2.15% | 61,102 | — | 61,102 | |||||||||
Oak Park Mall | Overland Park, KS | Dec-15 | 5.85% | 275,700 | 275,700 | — | ||||||||||
Triangle Town Center | Raleigh, NC | Dec-15 | 5.74% | 176,217 | 176,217 | — | ||||||||||
Renaissance Center Phase I | Durham, NC | Jul-16 | 5.61% | 32,607 | 32,607 | — | ||||||||||
Fremaux Town Center Phase I | Slidell, LA | Aug-16 | Aug-18 | 2.16% | 37,641 | — | 37,641 | |||||||||
Fremaux Town Center Phase II | Slidell, LA | Aug-16 | Aug-18 | 2.16% | 2,045 | — | 2,045 | |||||||||
Governor's Square | Clarksville, TN | Sep-16 | 8.23% | 18,185 | 18,185 | — | ||||||||||
Kentucky Oaks Mall | Paducah, KY | Jan-17 | 5.27% | 22,189 | 22,189 | — | ||||||||||
The Shops at Friendly Center | Greensboro, NC | Jan-17 | 5.90% | 39,704 | 39,704 | — | ||||||||||
High Pointe Commons | Harrisburg, PA | May-17 | 5.74% | 13,227 | 13,227 | — | ||||||||||
Gulf Coast Town Center Phase I | Ft. Myers, FL | Jul-17 | 5.60% | 190,800 | 190,800 | — | ||||||||||
High Pointe Commons Phase II | Harrisburg, PA | Jul-17 | 6.10% | 5,276 | 5,276 | — | ||||||||||
CoolSprings Galleria | Nashville, TN | Jun-18 | 6.98% | 106,042 | 106,042 | — | ||||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 35,965 | 35,965 | — | ||||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 2.91% | 1,442 | — | 1,442 | ||||||||||
West County Center | St. Louis, MO | Dec-22 | 3.40% | 190,000 | 190,000 | — | ||||||||||
Friendly Shopping Center | Greensboro, NC | Apr-23 | 3.48% | 100,000 | 100,000 | — | ||||||||||
Renaissance Center Phase II | Durham, NC | Apr-23 | 3.49% | 16,000 | 16,000 | — | ||||||||||
Coastal Grand-Myrtle Beach | Myrtle Beach, SC | Aug-24 | 4.09% | 120,030 | 120,030 | — | ||||||||||
Coastal Grand Outparcel-Myrtle Beach | Myrtle Beach, SC | Aug-24 | 4.09% | 5,792 | 5,792 | — | ||||||||||
$ | 1,506,996 | $ | 1,347,734 | $ | 159,262 | |||||||||||
Weighted average interest rate | 4.85 | % | 5.17 | % | 2.20 | % | ||||||||||
(a) | Subsequent to September 30, 2014, the property was transferred to the lender in a deed-in-lieu of foreclosure in satisfaction of the non-recourse mortgage loan secured by the property. | |||||||||||||||
(b) | The Company has an interest rate swap on a notional amount of $12,069, amortizing to $11,313 over the term of the swap, related to CoolSprings Crossing to effectively fix the interest rate on that variable-rate loan. Therefore, this amount is currently reflected as having a fixed rate. The swap terminates in April 2016. | |||||||||||||||
(c) | The Company has an interest rate swap on a notional amount of $10,751, amortizing to $10,083 over the term of the swap, related to Gunbarrel Pointe to effectively fix the interest rate on that variable-rate loan. Therefore, this amount is currently reflected as having a fixed rate. The swap terminates in April 2016. | |||||||||||||||
(d) | The Company has an interest rate swap on a notional amount of $32,291, amortizing to $30,276 over the term of the swap, related to Stroud Mall to effectively fix the interest rate on that variable-rate loan. Therefore, this amount is currently reflected as having a fixed rate. The swap terminates in April 2016. | |||||||||||||||
(e) | The Company has an interest rate swap on a notional amount of $51,566, amortizing to $48,337 over the term of the swap, related to York Galleria to effectively fix the interest rate on that variable-rate loan. Therefore, this amount is currently reflected as having a fixed rate. The swap terminates in April 2016. | |||||||||||||||
(f) | The weighted average interest rates used for debt premiums (discounts) reflect the market interest rate in effect as of the assumption of the related debt. |
Year | Consolidated Debt | CBL's Share of Unconsolidated Affiliates' Debt | Noncontrolling Interests' Share of Consolidated Debt | CBL's Share of Consolidated and Unconsolidated Debt | % of Total | Weighted Average Interest Rate | ||||||||||||||||
2014 | $ | 140,665 | $ | — | $ | — | $ | 140,665 | 2.62 | % | 5.12 | % | ||||||||||
2015 | 467,579 | 231,799 | — | 699,378 | 13.00 | % | 5.36 | % | ||||||||||||||
2016 | 763,959 | 24,942 | (29,649 | ) | 759,252 | 14.12 | % | 4.55 | % | |||||||||||||
2017 | 629,051 | 191,745 | (20,779 | ) | 800,017 | 14.88 | % | 4.90 | % | |||||||||||||
2018 | 747,803 | 79,532 | (5,622 | ) | 821,713 | 15.28 | % | 3.27 | % | |||||||||||||
2019 | 79,534 | — | — | 79,534 | 1.48 | % | 8.00 | % | ||||||||||||||
2020 | 188,791 | — | (1,100 | ) | 187,691 | 3.49 | % | 6.35 | % | |||||||||||||
2021 | 552,097 | — | (2,280 | ) | 549,817 | 10.22 | % | 5.58 | % | |||||||||||||
2022 | 609,123 | 113,703 | (15,877 | ) | 706,949 | 13.15 | % | 4.72 | % | |||||||||||||
2023 | 529,003 | 58,000 | (19,751 | ) | 567,252 | 10.54 | % | 5.03 | % | |||||||||||||
2024 | — | 62,911 | — | 62,911 | 1.17 | % | 4.09 | % | ||||||||||||||
Face Amount of Debt | 4,707,605 | 762,632 | (95,058 | ) | 5,375,179 | 99.95 | % | 4.81 | % | |||||||||||||
Net Premiums on Debt | 3,816 | — | (1,116 | ) | 2,700 | 0.05 | % | — | % | |||||||||||||
Total | $ | 4,711,421 | $ | 762,632 | $ | (96,174 | ) | $ | 5,377,879 | 100.00 | % | 4.81 | % |
Year | Consolidated Debt | CBL's Share of Unconsolidated Affiliates' Debt | Noncontrolling Interests' Share of Consolidated Debt | CBL's Share of Consolidated and Unconsolidated Debt | % of Total | Weighted Average Interest Rate | ||||||||||||||||
2014 | $ | 188,775 | $ | — | $ | — | $ | 188,775 | 3.51 | % | 4.29 | % | ||||||||||
2015 | 669,420 | 287,947 | — | 957,367 | 17.80 | % | 4.37 | % | ||||||||||||||
2016 | 765,008 | 51,453 | (35,271 | ) | 781,190 | 14.53 | % | 4.52 | % | |||||||||||||
2017 | 479,668 | 135,597 | (20,779 | ) | 594,486 | 11.05 | % | 5.99 | % | |||||||||||||
2018 | 646,186 | 53,021 | — | 699,207 | 13.00 | % | 3.49 | % | ||||||||||||||
2019 | 87,628 | — | (1,487 | ) | 86,141 | 1.60 | % | 7.61 | % | |||||||||||||
2020 | 188,791 | — | (1,100 | ) | 187,691 | 3.49 | % | 6.35 | % | |||||||||||||
2021 | 544,003 | — | (793 | ) | 543,210 | 10.10 | % | 5.61 | % | |||||||||||||
2022 | 609,123 | 113,703 | (15,877 | ) | 706,949 | 13.15 | % | 4.72 | % | |||||||||||||
2023 | 529,003 | 58,000 | (19,751 | ) | 567,252 | 10.55 | % | 5.03 | % | |||||||||||||
2024 | — | 62,911 | — | 62,911 | 1.17 | % | 4.09 | % | ||||||||||||||
Face Amount of Debt | 4,707,605 | 762,632 | (95,058 | ) | 5,375,179 | 99.95 | % | 4.81 | % | |||||||||||||
Net Premiums on Debt | 3,816 | — | (1,116 | ) | 2,700 | 0.05 | % | — | % | |||||||||||||
Total | $ | 4,711,421 | $ | 762,632 | $ | (96,174 | ) | $ | 5,377,879 | 100.00 | % | 4.81 | % |
Unsecured Debt Covenant Compliance Ratios | Required | Actual | ||
Debt to total asset value | <60% | 50.0% | ||
Unencumbered asset value to unsecured indebtedness | >1.60x | 2.42x | ||
Unencumbered NOI to unsecured interest expense | >1.75x | 4.47x | ||
EBITDA to fixed charges (debt service) | >1.50x | 2.20x |
Senior Unsecured 5.25% Notes Compliance Ratios | Required | Actual | ||
Total debt to total assets | < 60% | 53.8% | ||
Secured debt to total assets | < 45% | 38.9% | ||
Total unencumbered assets to unsecured debt | > 150% | 233.4% | ||
Consolidated income available for debt service to annual debt service charge | > 1.5x | 3.1x |
TIER 1 Sales > $375.00 per square foot | |||||||||||||||||||||
Property | Location | Total GLA | Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Nine Months Ended 9/30/14 | ||||||||||||||||
9/30/14 | 9/30/13 | 9/30/14 | 9/30/13 | ||||||||||||||||||
Acadiana Mall | Lafayette, LA | 991,010 | |||||||||||||||||||
CoolSprings Galleria (2) | Nashville, TN | 1,049,421 | |||||||||||||||||||
Cross Creek Mall | Fayetteville, NC | 1,032,995 | |||||||||||||||||||
Dakota Square Mall | Minot, ND | 813,111 | |||||||||||||||||||
Fayette Mall (2) | Lexington, KY | 1,030,914 | |||||||||||||||||||
Friendly Center | Greensboro, NC | 1,110,635 | |||||||||||||||||||
Hamilton Place | Chattanooga, TN | 1,161,500 | |||||||||||||||||||
Imperial Valley Mall | El Centro, CA | 825,826 | |||||||||||||||||||
Kirkwood Mall | Bismarck, ND | 849,808 | |||||||||||||||||||
Mall del Norte | Laredo, TX | 1,168,322 | |||||||||||||||||||
Oak Park Mall | Overland Park, KS | 1,606,086 | |||||||||||||||||||
Park Plaza | Little Rock, AR | 540,267 | |||||||||||||||||||
St. Clair Square | Fairview Heights, IL | 1,078,499 | |||||||||||||||||||
Sunrise Mall | Brownsville, TX | 750,789 | |||||||||||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 378,955 | |||||||||||||||||||
West County Center | Des Peres, MO | 1,207,630 | |||||||||||||||||||
West Towne Mall | Madison, WI | 828,500 | |||||||||||||||||||
Total Tier 1 Malls | 16,424,268 | $ | 443 | $ | 458 | 96.6 | % | 96.4 | % | 32.0 | % |
TIER 2 Sales of $300.01 to $375.00 per square foot | ||||||||||||||
Property | Location | Total GLA | Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Nine Months Ended 9/30/14 | |||||||||
09/30/14 | 09/30/13 | 9/30/14 | 9/30/13 | |||||||||||
Arbor Place | Douglasville, GA | 1,163,364 | ||||||||||||
Asheville Mall | Asheville, NC | 975,444 | ||||||||||||
Brookfield Square | Brookfield, WI | 1,008,340 | ||||||||||||
Burnsville Center | Burnsville, MN | 1,042,548 | ||||||||||||
CherryVale Mall | Rockford, IL | 845,230 | ||||||||||||
Coastal Grand - Myrtle Beach | Myrtle Beach, SC | 1,038,576 | ||||||||||||
East Towne Mall | Madison, WI | 788,120 | ||||||||||||
EastGate Mall | Cincinnati, OH | 845,143 | ||||||||||||
Eastland Mall | Bloomington, IL | 760,915 | ||||||||||||
Frontier Mall | Cheyenne, WY | 525,173 | ||||||||||||
Governor's Square | Clarksville, TN | 731,890 | ||||||||||||
Greenbrier Mall | Chesapeake, VA | 896,728 | ||||||||||||
Hanes Mall | Winston-Salem, NC | 1,507,137 | ||||||||||||
Harford Mall | Bel Air, MD | 505,455 | ||||||||||||
Honey Creek Mall | Terre Haute, IN | 677,370 | ||||||||||||
Jefferson Mall | Louisville, KY | 903,159 | ||||||||||||
Laurel Park Place | Livonia, MI | 489,987 | ||||||||||||
Layton Hills Mall | Layton, UT | 636,702 | ||||||||||||
Northpark Mall | Joplin, MO | 955,216 | ||||||||||||
Northwoods Mall | Charleston, SC | 772,684 |
TIER 2 Sales of $300.01 to $375.00 per square foot | |||||||||||||||||||||
Property | Location | Total GLA | Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Nine Months Ended 9/30/14 | ||||||||||||||||
09/30/14 | 09/30/13 | 9/30/14 | 9/30/13 | ||||||||||||||||||
Old Hickory Mall | Jackson, TN | 538,991 | |||||||||||||||||||
Parkdale Mall | Beaumont, TX | 1,246,076 | |||||||||||||||||||
Parkway Place | Huntsville, AL | 648,211 | |||||||||||||||||||
Post Oak Mall | College Station, TX | 774,922 | |||||||||||||||||||
Richland Mall | Waco, TX | 685,679 | |||||||||||||||||||
South County Center | St. Louis, MO | 1,053,956 | |||||||||||||||||||
Southaven Towne Center | Southaven, MS | 567,640 | |||||||||||||||||||
Southpark Mall | Colonial Heights, VA | 672,902 | |||||||||||||||||||
The Outlet Shoppes at Atlanta (3) | Woodstock, GA | 371,098 | |||||||||||||||||||
The Outlet Shoppes at Oklahoma City (4) | Oklahoma City, OK | 376,424 | |||||||||||||||||||
The Outlet Shoppes of the Bluegrass (5) | Simpsonville, KY | 374,681 | |||||||||||||||||||
Turtle Creek Mall | Hattiesburg, MS | 845,945 | |||||||||||||||||||
Valley View Mall | Roanoke, VA | 844,191 | |||||||||||||||||||
Volusia Mall | Daytona Beach, FL | 1,065,830 | |||||||||||||||||||
Westmoreland Mall | Greensburg, PA | 999,641 | |||||||||||||||||||
York Galleria | York, PA | 764,710 | |||||||||||||||||||
Total Tier 2 Malls | 28,900,078 | $ | 339 | $ | 344 | 94.1 | % | 94.1 | % | 45.6 | % |
TIER 3 Sales < $300.01 per square foot | ||||||||||||||
Property | Location | Total GLA | Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Nine Months Ended 9/30/14 | |||||||||
09/30/14 | 09/30/13 | 9/30/14 | 9/30/13 | |||||||||||
Alamance Crossing | Burlington, NC | 874,585 | ||||||||||||
Bonita Lakes Mall | Meridian, MS | 631,962 | ||||||||||||
Cary Towne Center | Cary, NC | 910,200 | ||||||||||||
Chesterfield Mall (2) | Chesterfield, MO | 1,289,962 | ||||||||||||
College Square | Morristown, TN | 450,465 | ||||||||||||
Fashion Square | Saginaw, MI | 745,134 | ||||||||||||
Foothills Mall | Maryville, TN | 464,225 | ||||||||||||
Hickory Point Mall | Decatur, IL | 814,213 | ||||||||||||
Janesville Mall | Janesville, WI | 615,506 | ||||||||||||
Kentucky Oaks Mall | Paducah, KY | 1,028,925 | ||||||||||||
Meridian Mall | Lansing, MI | 949,358 | ||||||||||||
Mid Rivers Mall | St. Peters, MO | 1,089,126 | ||||||||||||
Midland Mall | Midland, MI | 468,221 | ||||||||||||
Monroeville Mall | Pittsburgh, PA | 1,037,337 | ||||||||||||
Northgate Mall (2) | Chattanooga, TN | 789,029 | ||||||||||||
Pearland Town Center | Pearland, TX | 644,913 | ||||||||||||
Randolph Mall | Asheboro, NC | 381,307 | ||||||||||||
Regency Mall | Racine, WI | 789,336 | ||||||||||||
River Ridge Mall | Lynchburg, VA | 764,243 |
TIER 3 Sales < $300.01 per square foot | |||||||||||||||||||||
Property | Location | Total GLA | Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Nine Months Ended 9/30/14 | ||||||||||||||||
09/30/14 | 09/30/13 | 9/30/14 | 9/30/13 | ||||||||||||||||||
Stroud Mall | Stroudsburg, PA | 398,146 | |||||||||||||||||||
The Lakes Mall | Muskegon, MI | 588,764 | |||||||||||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | 249,937 | |||||||||||||||||||
Walnut Square | Dalton, GA | 495,508 | |||||||||||||||||||
Wausau Center (2) | Wausau, WI | 423,768 | |||||||||||||||||||
WestGate Mall | Spartanburg, SC | 954,228 | |||||||||||||||||||
Total Tier 3 Malls | 17,848,398 | $ | 269 | $ | 273 | 89.0 | % | 90.4 | % | 20.1 | % | ||||||||||
Total Mall Portfolio | 63,172,744 | $ | 356 | $ | 363 | 93.5 | % | 93.8 | % | 97.7 | % |
Non-Core/Lender Malls | |||||||||||||||
Property | Location | Total GLA | Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Nine Months Ended 9/30/14 | ||||||||||
09/30/14 | 09/30/13 | 9/30/14 | 9/30/13 | ||||||||||||
Columbia Place | Columbia, SC | 1,027,756 | |||||||||||||
Gulf Coast Town Center | Ft. Myers, FL | 1,233,459 | |||||||||||||
Madison Square | Huntsville, AL | 928,536 | |||||||||||||
Triangle Town Center | Raleigh, NC | 1,264,285 | |||||||||||||
Total Non-Core/Lender Malls | 4,454,036 | N/A | N/A | N/A | N/A | 2.3 | % |
(1) | Represents same-store sales per square foot for mall tenants 10,000 square feet or less for stabilized malls. |
(2) | Properties are under redevelopment in 2014. The Fayette Mall redevelopment project only includes the former Sears building. Operational metrics have been excluded for Chesterfield Mall and Wausau Center, due to proposed significant redevelopment. |
(3) | The Outlet Shoppes at Atlanta opened in July 2013 and is excluded from Sales Per Square Foot. It is included in Tier 2 based on a projection of 12-month sales. |
(4) | The Outlet Shoppes at Oklahoma City is non-stabilized and is excluded from Sales Per Square Foot. |
(5) | The Outlet Shoppes of the Bluegrass opened in July 2014 and is excluded from Sales Per Square Foot. It is included in Tier 2 based on a projection of 12-month sales. |
Property Type | Square Feet | Prior Gross Rent PSF | New Initial Gross Rent PSF | % Change Initial | New Average Gross Rent PSF (2) | % Change Average | |||||||||||||||
Quarter: | |||||||||||||||||||||
All Property Types (1) | 482,611 | $ | 35.73 | $ | 40.61 | 13.7 | % | $ | 42.06 | 17.7 | % | ||||||||||
Stabilized malls | 441,528 | 37.30 | 42.36 | 13.6 | % | 43.85 | 17.6 | % | |||||||||||||
New leases | 98,698 | 45.55 | 52.90 | 16.1 | % | 56.01 | 23.0 | % | |||||||||||||
Renewal leases | 342,830 | 34.92 | 39.32 | 12.6 | % | 40.35 | 15.5 | % | |||||||||||||
Year-to-Date: | |||||||||||||||||||||
All Property Types (1) | 1,572,034 | $ | 38.19 | $ | 41.59 | 8.9 | % | $ | 42.90 | 12.3 | % | ||||||||||
Stabilized malls | 1,416,108 | 39.92 | 43.54 | 9.1 | % | 44.92 | 12.5 | % | |||||||||||||
New leases | 364,561 | 40.21 | 49.04 | 22.0 | % | 52.01 | 29.3 | % | |||||||||||||
Renewal leases | 1,051,547 | 39.82 | 41.63 | 4.6 | % | 42.47 | 6.7 | % |
Average Annual Base Rents Per Square Foot (3) By Property Type For Small Shop Space Less Than 10,000 Square Feet: | |||||||||||||
Total Leasing Activity: | |||||||||||||
Square Feet | As of September 30, | ||||||||||||
Quarter: | 2014 | 2013 | |||||||||||
Operating portfolio: | Same-center stabilized malls | $ | 30.74 | $ | 30.19 | ||||||||
New leases | 376,019 | Stabilized malls | 30.74 | 29.97 | |||||||||
Renewal leases | 687,830 | Non-stabilized malls (4) | 25.25 | 24.61 | |||||||||
Development portfolio: | Associated centers | 12.87 | 11.97 | ||||||||||
New leases | 131,993 | Community centers | 16.09 | 15.76 | |||||||||
Total leased | 1,195,842 | Office buildings | 19.38 | 19.26 | |||||||||
Year-to-Date: | |||||||||||||
Operating Portfolio: | |||||||||||||
New leases | 1,037,886 | ||||||||||||
Renewal leases | 2,170,032 | ||||||||||||
Development Portfolio: | |||||||||||||
New leases | 547,294 | ||||||||||||
Total leased | 3,755,212 |
(1) | Includes stabilized malls, associated centers, community centers and other. |
(2) | Average gross rent does not incorporate allowable future increases for recoverable common area expenses. |
(3) | Average annual base rents per square foot are based on contractual rents in effect as of September 30, 2014, including the impact of any |
(4) | Includes The Outlet Shoppes of the Bluegrass, The Outlet Shoppes at Atlanta and The Outlet Shoppes at Oklahoma City as of September 30, 2014 and The Outlet Shoppes at Atlanta and The Outlet Shoppes at Oklahoma City as of September 30, 2013. |
Number of Leases | Square Feet | Term (in years) | Initial Rent PSF | Average Rent PSF | Expiring Rent PSF | Initial Rent Spread | Average Rent Spread | ||||||||||||||||||||||||||||
Commencement 2014: | |||||||||||||||||||||||||||||||||||
New | 214 | 556,094 | 8.19 | $ | 46.09 | $ | 48.81 | $ | 37.17 | $ | 8.92 | 24.0 | % | $ | 11.64 | 31.3 | % | ||||||||||||||||||
Renewal | 537 | 1,536,532 | 4.10 | 38.72 | 39.62 | 36.60 | 2.12 | 5.8 | % | 3.02 | 8.3 | % | |||||||||||||||||||||||
Commencement 2014 Total | 751 | 2,092,626 | 5.27 | $ | 40.68 | $ | 42.06 | $ | 36.75 | $ | 3.93 | 10.7 | % | $ | 5.31 | 14.4 | % | ||||||||||||||||||
Commencement 2015: | |||||||||||||||||||||||||||||||||||
New | 33 | 85,256 | 9.68 | $ | 51.34 | $ | 54.71 | $ | 40.44 | $ | 10.90 | 27.0 | % | $ | 14.27 | 35.3 | % | ||||||||||||||||||
Renewal | 123 | 383,481 | 4.48 | 36.36 | 37.25 | 33.56 | 2.80 | 8.3 | % | 3.69 | 11.0 | % | |||||||||||||||||||||||
Commencement 2015 Total | 156 | 468,737 | 5.58 | $ | 39.08 | $ | 40.42 | $ | 34.81 | $ | 4.27 | 12.3 | % | $ | 5.61 | 16.1 | % | ||||||||||||||||||
Total 2014/2015 | 907 | 2,561,363 | 5.32 | $ | 40.39 | $ | 41.76 | $ | 36.40 | $ | 3.99 | 11.0 | % | $ | 5.36 | 14.7 | % | ||||||||||||||||||
Tenant | Number of Stores | Square Feet | Percentage of Total Annualized Revenues | |||||||
1 | Limited Brands, LLC | 156 | (1) | 814,358 | 3.21% | |||||
2 | Signet Jewelers Limited | 218 | (2) | 322,840 | 2.84% | |||||
3 | Foot Locker, Inc. | 137 | 574,480 | 2.25% | ||||||
4 | Ascena Retail Group, Inc. | 184 | (3) | 921,074 | 2.19% | |||||
5 | AE Outfitters Retail Company | 82 | 501,968 | 2.02% | ||||||
6 | The Gap, Inc. | 71 | 779,718 | 1.68% | ||||||
7 | Genesco Inc. | 193 | (4) | 306,643 | 1.64% | |||||
8 | Dick's Sporting Goods, Inc. | 26 | (5) | 1,429,353 | 1.61% | |||||
9 | JC Penney Company, Inc. | 68 | (6) | 7,826,402 | 1.35% | |||||
10 | Abercrombie & Fitch, Co. | 59 | 395,863 | 1.28% | ||||||
11 | Aeropostale, Inc. | 92 | 337,596 | 1.28% | ||||||
12 | Luxottica Group, S.P.A. | 125 | (7) | 271,138 | 1.24% | |||||
13 | Express Fashions | 44 | 359,278 | 1.17% | ||||||
14 | Finish Line, Inc. | 62 | 319,706 | 1.14% | ||||||
15 | Charlotte Russe Holding, Inc. | 53 | 345,499 | 1.09% | ||||||
16 | Forever 21 Retail, Inc. | 23 | 437,415 | 1.01% | ||||||
17 | The Buckle, Inc. | 50 | 255,561 | 0.99% | ||||||
18 | Best Buy Co., Inc. | 63 | (8) | 548,048 | 0.97% | |||||
19 | Sun Capital Partners, Inc. | 44 | (9) | 623,217 | 0.91% | |||||
20 | New York & Company, Inc. | 43 | 290,321 | 0.89% | ||||||
21 | Claire's Stores, Inc. | 111 | 137,334 | 0.81% | ||||||
22 | The Children's Place Retail Stores, Inc. | 62 | 270,839 | 0.80% | ||||||
23 | Barnes & Noble Inc. | 19 | 579,099 | 0.75% | ||||||
24 | Cinemark | 10 | 524,772 | 0.75% | ||||||
25 | Shoe Show, Inc. | 50 | 576,860 | 0.72% | ||||||
2,045 | 19,749,382 | 34.59% | ||||||||
(1) | Limited Brands, LLC operates Victoria's Secret, Bath & Body Works and PINK. | |||||||||
(2) | Signet Jewelers Limited operates Kay Jewelers, Marks & Morgan, JB Robinson, Shaw's Jewelers, Osterman's Jewelers, LeRoy's Jewelers, Jared Jewelers, Belden Jewelers, Rogers Jewelers and Ultra Diamonds. In May 2014, Signet Jewelers acquired Zale Corporation which operates Zale, Peoples and Piercing Pagoda. | |||||||||
(3) | Ascena Retail Group, Inc. operates Justice, dressbarn, maurices, Lane Bryant and Catherines. | |||||||||
(4) | Genesco Inc. operates Journey's, Underground by Journey's, Hat World, Lids, Hat Zone, and Cap Factory stores. | |||||||||
(5) | Dick's Sporting Goods, Inc. operates Dick's Sporting Goods, Field & Stream and Golf Galaxy stores. | |||||||||
(6) | JC Penney Company, Inc. owns 32 of these stores. Of the 36 leased stores, JC Penney Company, Inc. closed three in May 2014 but remains obligated for rent under the terms of the respective leases. | |||||||||
(7) | Luxottica Group, S.P.A. operates Lenscrafters, Sunglass Hut, and Pearle Vision. | |||||||||
(8) | Best Buy Co., Inc. operates Best Buy and Best Buy Mobile. | |||||||||
(9) | Sun Capital Partners, Inc. operates Gordmans, Limited Stores, Fazoli's Restaurants, Smokey Bones, Johnny Rockets and Bar Louie Restaurants. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Tenant allowances (1) | $ | 10,275 | $ | 14,796 | $ | 34,054 | $ | 36,410 | ||||||||
Renovations (2) | 6,130 | 10,488 | 15,441 | 22,421 | ||||||||||||
Deferred maintenance: (3) | ||||||||||||||||
Parking lot and parking lot lighting | 17,325 | 5,980 | 23,263 | 7,085 | ||||||||||||
Roof repairs and replacements | 1,904 | 2,607 | 3,086 | 5,374 | ||||||||||||
Other capital expenditures | 4,351 | 3,127 | 6,238 | 5,990 | ||||||||||||
Total deferred maintenance expenditures | 23,580 | 11,714 | 32,587 | 18,449 | ||||||||||||
Total capital expenditures | $ | 39,985 | $ | 36,998 | $ | 82,082 | $ | 77,280 |
(1) | Tenant allowances, sometimes made to third-generation tenants, are recovered through minimum rents from the tenants over the term of the lease. |
(2) | Renovation capital expenditures for remodelings and upgrades to enhance our competitive position in the market area. A portion of these expenditures covering items such as new floor coverings, painting, lighting and new seating areas are also recovered through tenant billings. The costs of other items such as new entrances, new ceilings and skylights are not recovered from tenants. We estimate that 30% of our renovation expenditures are recoverable from our tenants over a ten to fifteen year period. |
(3) | The capital expenditures incurred for maintenance such as parking lot repairs, parking lot lighting and roofs are classified as deferred maintenance expenditures. These expenditures are billed to tenants as common area maintenance expense and the majority is recovered over a five to fifteen year period. |
2014 | 2013 | |||||||
Quarter ended: | ||||||||
March 31, | $ | 773 | $ | 461 | ||||
June 30, | 807 | 356 | ||||||
September 30, | 770 | 734 | ||||||
December 31, | 876 | |||||||
$ | 2,350 | $ | 2,427 |
Property | Location | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | Opening Date | Initial Unleveraged Yield | |||||||||||
Outlet Center: | |||||||||||||||||
The Outlet Shoppes of the Bluegrass (3) | Simpsonville, KY | 374,597 | $ | 76,890 | $ | 70,918 | July-14 | 12.0% | |||||||||
Mall/Outlet Center Expansions: | |||||||||||||||||
The Outlet Shoppes at El Paso - Phase II (4) | El Paso, TX | 44,014 | 7,663 | 6,574 | August-14 | 12.0% | |||||||||||
The Outlet Shoppes at Oklahoma City - Phase III (4) | Oklahoma City, OK | 18,182 | 3,713 | 2,496 | August-14 | 12.8% | |||||||||||
Parkdale Mall - shops | Beaumont, TX | 6,500 | 1,439 | 1,139 | September-14 | 10.2% | |||||||||||
68,696 | 12,815 | 10,209 | |||||||||||||||
Community Center: | |||||||||||||||||
Fremaux Town Center - Phase I (3) | Slidell, LA | 341,002 | 55,777 | 49,549 | March-14 | 8.3% | |||||||||||
Community Center Expansion: | |||||||||||||||||
Hammock Landing - Carmike (5) | West Melbourne, FL | 47,000 | 12,232 | 9,740 | August-14 | 7.5% | |||||||||||
Total Properties Opened | 831,295 | $ | 157,714 | $ | 140,416 |
Property | Location | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | Opening Date | Initial Unleveraged Yield | |||||||||||
Mall Redevelopment: | |||||||||||||||||
College Square - Longhorn Steakhouse & T.J. Maxx | Morristown, TN | 30,271 | $ | 3,078 | $ | 2,858 | April-14 | 10.6% | |||||||||
Monroeville Mall - Dick's Sporting Goods | Pittsburgh, PA | 86,000 | 8,649 | 6,430 | August-14 | 8.6% | |||||||||||
Northgate Mall - Burlington | Chattanooga, TN | 63,000 | 7,554 | 5,373 | September-14 | 7.4% | |||||||||||
Total Redevelopment | 179,271 | $ | 19,281 | $ | 14,661 |
Property | Location | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | Expected Opening Date | Initial Unleveraged Yield | |||||||||||
Community Center: | |||||||||||||||||
Parkway Plaza | Fort Oglethorpe, GA | 134,045 | $ | 17,250 | $ | 8,504 | Spring-15 | 8.6% | |||||||||
Community Center Expansions: | |||||||||||||||||
Fremaux Town Center - Phase II (3) | Slidell, LA | 280,108 | 38,254 | 9,899 | Fall-15 | 9.3% | |||||||||||
Hammock Landing - Academy Sports (5) | West Melbourne, FL | 63,092 | 10,158 | 430 | Spring-15 | 8.8% | |||||||||||
343,200 | 48,412 | 10,329 | |||||||||||||||
Associated Center Redevelopment: | |||||||||||||||||
West Towne Crossing - Nordstrom Rack | Madison, WI | 30,750 | 5,693 | 4,909 | October-14 | 10.3% | |||||||||||
Mall Redevelopment: | |||||||||||||||||
CoolSprings Galleria - Sears Redevelopment (5) | Nashville, TN | 179,048 | 55,888 | 20,875 | 2015/2016 | 7.8% | |||||||||||
Fayette Mall - Sears Redevelopment | Lexington, KY | 114,285 | 72,646 | 42,252 | Fall-14/ Spring-15 | 7.7% | |||||||||||
Northgate Mall - Streetscape | Chattanooga, TN | 49,084 | 8,989 | 448 | Fall-14 | 10.5% | |||||||||||
342,417 | 137,523 | 63,575 | |||||||||||||||
Total Properties Under Development | 850,412 | $ | 208,878 | $ | 87,317 |
Shadow Pipeline of Properties Under Development at September 30, 2014 | |||||||||||||
(Dollars in thousands) | |||||||||||||
Property | Location | Total Project Square Feet | Estimated Total Cost (1) | Expected Opening Date | Initial Unleveraged Yield | ||||||||
Community Center: | |||||||||||||
Ambassador Town Center (3) | Lafayette, LA | 400,000 | $60,000 - $65,000 | Spring-16 | 8% - 9% | ||||||||
Mall Redevelopment: | |||||||||||||
Janesville Mall - JCP Redevelopment | Janesville, WI | 140,000 | $15,000 - $20,000 | Fall-15 | 9% - 10% | ||||||||
Hickory Point Mall - JCP Redevelopment | Decatur, IL | 100,000 | $3,000 - $4,000 | Fall-15 | 8% - 9% | ||||||||
Meridian Mall - Gordmans | Lansing, MI | 50,000 | $7,000 - $8,000 | Summer-15 | 9% - 10% | ||||||||
290,000 | $25,000 - $32,000 | ||||||||||||
Total Shadow Pipeline | 690,000 | $85,000 - $97,000 |
(1) | Total Cost is presented net of reimbursements to be received. |
(2) | Cost to Date does not reflect reimbursements until they are received. |
(3) | This property is a 65/35 joint venture. Total cost and cost to date are reflected at 100%. |
(4) | This property is a 75/25 joint venture. Total cost and cost to date are reflected at 100%. |
(5) | This property is a 50/50 joint venture. Total cost and cost to date are reflected at 100%. |