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 February 3, 2015 and Supplemental Financial and Operating Information - For the Three Months and Year Ended December 31, 2014 | |
99.2 | Investor Conference Call Script - Fourth Quarter and Year Ended December 31, 2014 |
Page | ||
Earnings Release | ||
Consolidated Statements of Operations | ||
Reconciliations of Non-GAAP Financial Measures: | ||
Funds from Operations (FFO) | ||
Same-Center Net Operating Income (NOI) | ||
Selected Financial and Equity Information | ||
Consolidated Balance Sheets | ||
Condensed Combined Financial Statements - Unconsolidated Affiliates | ||
Ratio of EBITDA to Interest Expense and Reconciliation of EBITDA to Operating Cash Flows | ||
Schedule of Mortgage and Other Indebtedness | ||
Schedule of Maturities and Unsecured Debt Covenant Compliance Ratios | ||
Mall Portfolio Statistics | ||
Leasing Activity and Average Annual Base Rents | ||
Top 25 Tenants Based on Percentage of Total Annual Revenues | ||
Capital Expenditures | ||
Development Activity | ||
• | Same-center NOI increased 2.9% and 2.4% for the fourth quarter and year ended December 31, 2014, respectively over the prior-year periods. |
• | 2014 FFO per diluted share, as adjusted, grew 6.3% to $0.67 in the fourth quarter 2014 and 2.7% to $2.28 for 2014, compared with the prior-year periods. |
• | Average gross rent per square foot increased 12.6% for stabilized mall leases signed in the fourth quarter 2014 and full-year 2014 over the prior rate. |
• | Same-center stabilized mall occupancy at December 31, 2014 remained high at 94.8%, flat with the prior year-end. |
• | Same-center sales per square foot increased 3.9% for the fourth quarter 2014 and declined 0.3% for 2014. |
• | In the fourth quarter 2014, CBL's Board of Directors declared an 8.2% increase in the quarterly cash dividend for the Company’s Common Stock to $0.265 per share. |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Funds from Operations ("FFO") per diluted share | $ | 0.82 | $ | 0.63 | $ | 2.73 | $ | 2.23 | |||||||
FFO, as adjusted, per diluted share (1) | $ | 0.67 | $ | 0.63 | $ | 2.28 | $ | 2.22 | |||||||
(1) FFO, as adjusted, for the three months ended December 31, 2014 excludes a $7.0 million partial litigation settlement, net of related expenses, and a $23.8 million gain on extinguishment of debt, net of default interest expense, related to the conveyance of Columbia Place to the lender. FFO, as adjusted, for the year ended December 31, 2014 excludes an $83.2 million gain on extinguishment of debt, net of non-cash default interest expense, primarily related to the conveyance of Chapel Hill Mall and Columbia Place and the foreclosure of Citadel Mall. It also excludes a partial litigation settlement of $7.8 million, net of related expenses. FFO, as adjusted, for the year ended December 31, 2013, excludes a $9.1 million loss on extinguishment of debt, a $2.4 million gain on investment and an $8.2 million partial litigation settlement. |
1 |
Three Months Ended December 31, | Year Ended December 31, | ||||
2014 | 2014 | ||||
Portfolio same-center NOI | 2.9 | % | 2.4 | % | |
Mall same-center NOI | 2.6 | % | 2.3 | % |
▪ | Top line revenue benefited from a $2.8 million increase in minimum rents and a $1.9 million increase in tenant reimbursements primarily due to contributions from double-digit lease spreads as well as an increase in other rents including sponsorship and branding income. |
▪ | Percentage rents declined by $0.4 million during the fourth quarter 2014 compared with the prior year period. |
▪ | Maintenance and repair expenses declined $0.8 million, primarily due to a decline of $0.4 million in snow removal expenditures and a decline of $0.4 million in parking lot repairs and equipment maintenance in the fourth quarter 2014 compared with the prior-year period. |
▪ | Operating expenses were $1.2 million lower in the fourth quarter 2014 compared with the prior-year period primarily due to a $0.5 million positive variance in bad debt expense, a $0.4 million decline in utility and central energy expense and a $0.4 million decline in insurance expense. |
▪ | Real estate taxes were $1.1 million higher in the fourth quarter compared with the prior-year period. |
▪ | Top line revenues for 2014 benefited from a $13.4 million increase in minimum rent, a $4.1 million increase in tenant reimbursements and a $0.6 million increase in other rents, including sponsorship and branding, partially offset by a $1.5 million decline in other revenues primarily due to litigation settlement income received in the prior-year. |
▪ | Percentage rents declined by $1.9 million during 2014 compared with the prior year primarily due to the 0.3% decline in sales for the full year. |
▪ | Maintenance and repair expenses were relatively flat in 2014, primarily due to a decline in maintenance and supplies offset by an increase of $1.0 million in snow removal expenditures compared with 2013. |
2 |
▪ | Operating expenses were $2.2 million lower in 2014 compared with 2013 primarily due to lower insurance, security and legal/consulting expense compared with the prior year, partially offset by a $0.7 million increase in bad debt expense. |
▪ | Real estate taxes increased $0.6 million in 2014. |
As of December 31, | ||||
2014 | 2013 | |||
Portfolio occupancy | 94.7% | 94.7% | ||
Mall portfolio | 94.9% | 94.9% | ||
Same-center stabilized malls | 94.8% | 94.8% | ||
Stabilized malls | 94.8% | 94.7% | ||
Non-stabilized malls (1) | 98.1% | 98.0% | ||
Associated centers | 93.7% | 94.5% | ||
Community centers | 97.4% | 96.7% | ||
(1) Includes The Outlet Shoppes at Oklahoma City, The Outlet Shoppes at Atlanta and The Outlet Shoppes of the Bluegrass as of December 31, 2014. Includes The Outlet Shoppes at Oklahoma City and The Outlet Shoppes at Atlanta as of December 31, 2013. |
% Change in Average Gross Rent Per Square Foot | ||||
Three Months Ended December 31, | Year Ended December 31, | |||
2014 | 2014 | |||
Stabilized Malls | 12.6% | 12.6% | ||
New leases | 30.4% | 29.6% | ||
Renewal leases | 8.0% | 7.1% |
Year Ended December 31, | |||||||||
2014 | 2013 | % Change | |||||||
Stabilized mall same-center sales per square foot | $ | 360 | $ | 361 | (0.3)% |
3 |
• | $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 throughout 2015; |
• | No unannounced capital markets activity. |
4 |
Low | High | ||||||
Expected diluted earnings per common share | $ | 0.67 | $ | 0.74 | |||
Adjust to fully converted shares from common shares | (0.09 | ) | (0.10 | ) | |||
Expected earnings per diluted, fully converted common share | 0.58 | 0.64 | |||||
Add: depreciation and amortization | 1.59 | 1.59 | |||||
Add: noncontrolling interest in earnings of Operating Partnership | 0.10 | 0.11 | |||||
Adjustment for litigation settlement | (0.03 | ) | (0.03 | ) | |||
Expected FFO per diluted, fully converted common share | $ | 2.24 | $ | 2.31 |
5 |
6 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
REVENUES: | |||||||||||||||
Minimum rents | $ | 176,579 | $ | 177,237 | $ | 682,584 | $ | 675,870 | |||||||
Percentage rents | 8,386 | 8,724 | 16,876 | 18,572 | |||||||||||
Other rents | 8,606 | 8,472 | 22,314 | 21,974 | |||||||||||
Tenant reimbursements | 76,239 | 76,573 | 290,561 | 290,097 | |||||||||||
Management, development and leasing fees | 3,810 | 3,396 | 12,986 | 12,439 | |||||||||||
Other | 10,229 | 7,607 | 35,418 | 34,673 | |||||||||||
Total revenues | 283,849 | 282,009 | 1,060,739 | 1,053,625 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Property operating | 37,568 | 39,956 | 149,774 | 151,127 | |||||||||||
Depreciation and amortization | 79,093 | 72,797 | 291,273 | 278,911 | |||||||||||
Real estate taxes | 23,643 | 22,289 | 89,281 | 88,701 | |||||||||||
Maintenance and repairs | 13,451 | 15,573 | 54,842 | 56,379 | |||||||||||
General and administrative | 14,688 | 12,407 | 50,271 | 48,867 | |||||||||||
Loss on impairment | 105 | 49,011 | 17,858 | 70,049 | |||||||||||
Other | 10,966 | 7,608 | 32,297 | 28,826 | |||||||||||
Total operating expenses | 179,514 | 219,641 | 685,596 | 722,860 | |||||||||||
Income from operations | 104,335 | 62,368 | 375,143 | 330,765 | |||||||||||
Interest and other income | 10,586 | 628 | 14,121 | 10,825 | |||||||||||
Interest expense | (59,827 | ) | (58,482 | ) | (239,824 | ) | (231,856 | ) | |||||||
Gain (loss) on extinguishment of debt | 26,951 | — | 87,893 | (9,108 | ) | ||||||||||
Gain on investment | — | — | — | 2,400 | |||||||||||
Equity in earnings of unconsolidated affiliates | 3,765 | 3,998 | 14,803 | 11,616 | |||||||||||
Income tax provision | (233 | ) | (451 | ) | (4,499 | ) | (1,305 | ) | |||||||
Income from continuing operations before gain on sales of real estate assets | 85,577 | 8,061 | 247,637 | 113,337 | |||||||||||
Gain on sales of real estate assets | 1,829 | 922 | 5,342 | 1,980 | |||||||||||
Income from continuing operations | 87,406 | 8,983 | 252,979 | 115,317 | |||||||||||
Operating income (loss) of discontinued operations | 258 | (896 | ) | (222 | ) | (6,091 | ) | ||||||||
Gain (loss) on discontinued operations | 188 | (18 | ) | 276 | 1,144 | ||||||||||
Net income | 87,852 | 8,069 | 253,033 | 110,370 | |||||||||||
Net (income) loss attributable to noncontrolling interests in: | |||||||||||||||
Operating Partnership | (11,259 | ) | 477 | (30,106 | ) | (7,125 | ) | ||||||||
Other consolidated subsidiaries | (37 | ) | 297 | (3,777 | ) | (18,041 | ) | ||||||||
Net income attributable to the Company | 76,556 | 8,843 | 219,150 | 85,204 | |||||||||||
Preferred dividends | (11,223 | ) | (11,223 | ) | (44,892 | ) | (44,892 | ) | |||||||
Net income (loss) attributable to common shareholders | $ | 65,333 | $ | (2,380 | ) | $ | 174,258 | $ | 40,312 | ||||||
Basic and diluted per share data attributable to common shareholders: | |||||||||||||||
Income (loss) from continuing operations, net of preferred dividends | $ | 0.38 | $ | (0.01 | ) | $ | 1.02 | $ | 0.27 | ||||||
Discontinued operations | 0.00 | 0.00 | 0.00 | (0.03 | ) | ||||||||||
Net income (loss) attributable to common shareholders | $ | 0.38 | $ | (0.01 | ) | $ | 1.02 | $ | 0.24 | ||||||
Weighted average common shares outstanding | 170,261 | 169,930 | 170,247 | 167,027 | |||||||||||
Amounts attributable to common shareholders: | |||||||||||||||
Income (loss) from continuing operations, net of preferred dividends | $ | 64,952 | $ | (1,602 | ) | $ | 174,212 | $ | 44,515 | ||||||
Discontinued operations | 381 | (778 | ) | 46 | (4,203 | ) | |||||||||
Net income (loss) attributable to common shareholders | $ | 65,333 | $ | (2,380 | ) | $ | 174,258 | $ | 40,312 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income (loss) attributable to common shareholders | $ | 65,333 | $ | (2,380 | ) | $ | 174,258 | $ | 40,312 | ||||||
Noncontrolling interest in income (loss) of Operating Partnership | 11,259 | (477 | ) | 30,106 | 7,125 | ||||||||||
Depreciation and amortization expense of: | |||||||||||||||
Consolidated properties | 79,093 | 72,797 | 291,273 | 278,911 | |||||||||||
Unconsolidated affiliates | 11,152 | 9,844 | 41,806 | 39,592 | |||||||||||
Discontinued operations | — | — | — | 6,638 | |||||||||||
Non-real estate assets | (486 | ) | (547 | ) | (2,311 | ) | (2,077 | ) | |||||||
Noncontrolling interests' share of depreciation and amortization | (2,011 | ) | (1,589 | ) | (6,842 | ) | (5,881 | ) | |||||||
Loss on impairment, net of tax benefit | — | 47,213 | 18,434 | 73,485 | |||||||||||
(Gain) loss on depreciable property | — | 3 | (937 | ) | (7 | ) | |||||||||
(Gain) loss on discontinued operations, net of taxes | (187 | ) | 67 | (273 | ) | (647 | ) | ||||||||
Funds from operations of the Operating Partnership | 164,153 | 124,931 | 545,514 | 437,451 | |||||||||||
Litigation settlement, net of related expenses | (6,963 | ) | — | (7,763 | ) | (8,240 | ) | ||||||||
Gain on investment | — | — | — | (2,400 | ) | ||||||||||
Non cash default interest expense | 3,181 | — | 4,695 | — | |||||||||||
(Gain) loss on extinguishment of debt | (26,951 | ) | — | (87,893 | ) | 9,108 | |||||||||
Funds from operations of the Operating Partnership, as adjusted | $ | 133,420 | $ | 124,931 | $ | 454,553 | $ | 435,919 | |||||||
Funds from operations per diluted share | $ | 0.82 | $ | 0.63 | $ | 2.73 | $ | 2.23 | |||||||
Funds from operations, as adjusted, per diluted share | $ | 0.67 | $ | 0.63 | $ | 2.28 | $ | 2.22 | |||||||
Weighted average common and potential dilutive common shares outstanding with operating partnership units fully converted | 199,543 | 199,476 | 199,660 | 196,572 | |||||||||||
Reconciliation of FFO of the Operating Partnership to FFO allocable to common shareholders: | |||||||||||||||
Funds from operations of the Operating Partnership | $ | 164,153 | $ | 124,931 | $ | 545,514 | $ | 437,451 | |||||||
Percentage allocable to common shareholders (1) | 85.33 | % | 85.19 | % | 85.27 | % | 84.97 | % | |||||||
Funds from operations allocable to common shareholders | $ | 140,072 | $ | 106,429 | $ | 465,160 | $ | 371,702 | |||||||
Funds from operations of the Operating Partnership, as adjusted | $ | 133,420 | $ | 124,931 | $ | 454,553 | $ | 435,919 | |||||||
Percentage allocable to common shareholders (1) | 85.33 | % | 85.19 | % | 85.27 | % | 84.97 | % | |||||||
Funds from operations allocable to common shareholders, as adjusted | $ | 113,847 | $ | 106,429 | $ | 387,597 | $ | 370,400 | |||||||
(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 December 31, | Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
SUPPLEMENTAL FFO INFORMATION: | |||||||||||||||
Lease termination fees | $ | 1,413 | $ | 792 | $ | 3,808 | $ | 4,217 | |||||||
Lease termination fees per share | $ | 0.01 | $ | — | $ | 0.02 | $ | 0.02 | |||||||
Straight-line rental income | $ | (352 | ) | $ | 1,110 | $ | 2,132 | $ | 1,191 | ||||||
Straight-line rental income per share | $ | — | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||
Gains on outparcel sales | $ | 2,774 | $ | 923 | $ | 5,235 | $ | 1,958 | |||||||
Gains on outparcel sales per share | $ | 0.01 | $ | — | $ | 0.03 | $ | 0.01 | |||||||
Net amortization of acquired above- and below-market leases | $ | 683 | $ | 295 | $ | 1,227 | $ | 1,566 | |||||||
Net amortization of acquired above- and below-market leases per share | $ | — | $ | — | $ | 0.01 | $ | 0.01 | |||||||
Net amortization of debt premiums and discounts | $ | 547 | $ | (1,162 | ) | $ | 2,172 | $ | 553 | ||||||
Net amortization of debt premiums and discounts per share | $ | — | $ | (0.01 | ) | $ | 0.01 | $ | — | ||||||
Income tax provision | $ | (233 | ) | $ | (451 | ) | $ | (4,499 | ) | $ | (1,305 | ) | |||
Income tax provision per share | $ | — | $ | — | $ | (0.02 | ) | $ | (0.01 | ) | |||||
Abandoned projects expense | $ | 55 | $ | 193 | $ | 136 | $ | 334 | |||||||
Abandoned projects expense per share | $ | — | $ | — | $ | — | $ | — | |||||||
Gain (loss) on extinguishment of debt | $ | 26,951 | $ | — | $ | 87,893 | $ | (9,108 | ) | ||||||
Gain (loss) on extinguishment of debt per share | $ | 0.14 | $ | — | $ | 0.44 | $ | (0.05 | ) | ||||||
Non cash default interest expense | $ | (3,181 | ) | $ | — | $ | (4,695 | ) | $ | — | |||||
Non cash default interest expense per share | $ | (0.02 | ) | $ | — | $ | (0.02 | ) | $ | — | |||||
Gain on investment | $ | — | $ | — | $ | — | $ | 2,400 | |||||||
Gain on investment per share | $ | — | $ | — | $ | — | $ | 0.01 | |||||||
Litigation settlement, net of related expenses | $ | 6,963 | $ | — | $ | 7,763 | $ | 8,240 | |||||||
Litigation settlement, net of related expenses, per share | $ | 0.03 | $ | — | $ | 0.04 | $ | 0.04 | |||||||
Interest capitalized | $ | 2,576 | $ | 1,205 | $ | 7,288 | $ | 4,411 | |||||||
Interest capitalized per share | $ | 0.01 | $ | 0.01 | $ | 0.04 | $ | 0.02 |
As of December 31, | ||||||||
2014 | 2013 | |||||||
Straight-line rent receivable | $ | 63,731 | $ | 62,611 | ||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income attributable to the Company | $ | 76,556 | $ | 8,843 | $ | 219,150 | $ | 85,204 | |||||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 79,093 | 72,797 | 291,273 | 278,911 | |||||||||||
Depreciation and amortization from unconsolidated affiliates | 11,152 | 9,844 | 41,806 | 39,592 | |||||||||||
Depreciation and amortization from discontinued operations | — | — | — | 6,638 | |||||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (2,011 | ) | (1,589 | ) | (6,842 | ) | (5,881 | ) | |||||||
Interest expense | 59,827 | 58,482 | 239,824 | 231,856 | |||||||||||
Interest expense from unconsolidated affiliates | 9,586 | 9,723 | 38,458 | 39,399 | |||||||||||
Interest expense from discontinued operations | — | — | — | 1 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,620 | ) | (1,384 | ) | (5,613 | ) | (4,413 | ) | |||||||
Abandoned projects expense | 55 | 193 | 136 | 334 | |||||||||||
Gain on sales of real estate assets | (1,829 | ) | (922 | ) | (5,342 | ) | (1,980 | ) | |||||||
Gain on sales of real estate assets of unconsolidated affiliates | (289 | ) | (11 | ) | (987 | ) | (22 | ) | |||||||
Gain on investment | — | — | — | (2,400 | ) | ||||||||||
(Gain) loss on extinguishment of debt | (26,951 | ) | — | (87,893 | ) | 9,108 | |||||||||
Loss on impairment | 105 | 49,011 | 17,858 | 70,049 | |||||||||||
Loss on impairment from discontinued operations | — | — | 681 | 5,234 | |||||||||||
Income tax provision | 233 | 451 | 4,499 | 1,305 | |||||||||||
Lease termination fees | (1,413 | ) | (792 | ) | (3,808 | ) | (4,217 | ) | |||||||
Straight-line rent and above- and below-market lease amortization | (331 | ) | (83 | ) | (3,359 | ) | (1,502 | ) | |||||||
Net income (loss) attributable to noncontrolling interest in earnings of Operating Partnership | 11,259 | (477 | ) | 30,106 | 7,125 | ||||||||||
(Gain) loss on discontinued operations | (188 | ) | 18 | (276 | ) | (1,144 | ) | ||||||||
General and administrative expenses | 14,688 | 12,407 | 50,271 | 48,867 | |||||||||||
Management fees and non-property level revenues | (16,137 | ) | (8,029 | ) | (36,386 | ) | (23,552 | ) | |||||||
Company's share of property NOI | 211,785 | 208,482 | 783,556 | 778,512 | |||||||||||
Non-comparable NOI | (16,499 | ) | (18,623 | ) | (63,968 | ) | (75,492 | ) | |||||||
Total same-center NOI (1) | $ | 195,286 | $ | 189,859 | $ | 719,588 | $ | 703,020 | |||||||
Total same-center NOI percentage change | 2.9 | % | 2.4 | % | |||||||||||
Malls | $ | 179,900 | $ | 175,416 | $ | 659,781 | $ | 645,157 | |||||||
Associated centers | 8,336 | 7,892 | 32,077 | 31,124 | |||||||||||
Community centers | 5,153 | 4,731 | 19,802 | 19,345 | |||||||||||
Offices and other | 1,897 | 1,820 | 7,928 | 7,394 | |||||||||||
Total same-center NOI (1) | $ | 195,286 | $ | 189,859 | $ | 719,588 | $ | 703,020 | |||||||
Percentage Change: | |||||||||||||||
Malls | 2.6 | % | 2.3 | % | |||||||||||
Associated centers | 5.6 | % | 3.1 | % | |||||||||||
Community centers | 8.9 | % | 2.4 | % | |||||||||||
Offices and other | 4.2 | % | 7.2 | % | |||||||||||
Total same-center NOI (1) | 2.9 | % | 2.4 | % |
As of December 31, 2014 | ||||||||||||
Fixed Rate | Variable Rate | Total | ||||||||||
Consolidated debt | $ | 4,004,064 | $ | 696,396 | $ | 4,700,460 | ||||||
Noncontrolling interests' share of consolidated debt | (115,390 | ) | (7,083 | ) | (122,473 | ) | ||||||
Company's share of unconsolidated affiliates' debt | 671,526 | 96,776 | 768,302 | |||||||||
Company's share of consolidated and unconsolidated debt | $ | 4,560,200 | $ | 786,089 | $ | 5,346,289 | ||||||
Weighted average interest rate | 5.45 | % | 1.75 | % | 4.91 | % | ||||||
As of December 31, 2013 | ||||||||||||
Fixed Rate | Variable Rate | Total | ||||||||||
Consolidated debt | $ | 3,990,774 | $ | 866,749 | $ | 4,857,523 | ||||||
Noncontrolling interests' share of consolidated debt | (87,406 | ) | (5,669 | ) | (93,075 | ) | ||||||
Company's share of unconsolidated affiliates' debt | 653,429 | 89,111 | 742,540 | |||||||||
Company's share of consolidated and unconsolidated debt | $ | 4,556,797 | $ | 950,191 | $ | 5,506,988 | ||||||
Weighted average interest rate | 5.48 | % | 1.94 | % | 4.87 | % |
Shares Outstanding | Stock Price (1) | Value | |||||||||
Common stock and Operating Partnership units | 199,533 | $ | 19.42 | $ | 3,874,931 | ||||||
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 | 4,501,181 | ||||||||||
Company's share of total debt | 5,346,289 | ||||||||||
Total market capitalization | $ | 9,847,470 | |||||||||
Debt-to-total-market capitalization ratio | 54.3 | % | |||||||||
(1) Stock price for common stock and operating partnership units equals the closing price of the common stock on December 31, 2014. The stock prices for the preferred stocks represent the liquidation preference of each respective series. |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2014: | Basic | Diluted | Basic | Diluted | ||||||||
Weighted average shares - EPS | 170,261 | 170,261 | 170,247 | 170,247 | ||||||||
Weighted average operating partnership units | 29,282 | 29,282 | 29,413 | 29,413 | ||||||||
Weighted average shares- FFO | 199,543 | 199,543 | 199,660 | 199,660 | ||||||||
2013: | ||||||||||||
Weighted average shares - EPS | 169,930 | 169,930 | 167,027 | 167,027 | ||||||||
Weighted average operating partnership units | 29,546 | 29,546 | 29,545 | 29,545 | ||||||||
Weighted average shares- FFO | 199,476 | 199,476 | 196,572 | 196,572 |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Weighted average cash dividend per share | $ | 0.27280 | $ | 0.25313 | $ | 1.03218 | $ | 0.96853 | ||||||||
FFO as adjusted, per diluted fully converted share | $ | 0.67 | $ | 0.63 | $ | 2.28 | $ | 2.22 | ||||||||
Dividend payout ratio | 40.7 | % | 40.2 | % | 45.3 | % | 43.6 | % |
Consolidated Balance Sheets (Unaudited; in thousands, except share data) | |||||||
As of December 31, | |||||||
2014 | 2013 | ||||||
ASSETS | |||||||
Real estate assets: | |||||||
Land | $ | 847,829 | $ | 858,619 | |||
Buildings and improvements | 7,221,387 | 7,125,512 | |||||
8,069,216 | 7,984,131 | ||||||
Accumulated depreciation | (2,240,007 | ) | (2,056,357 | ) | |||
5,829,209 | 5,927,774 | ||||||
Developments in progress | 117,966 | 139,383 | |||||
Net investment in real estate assets | 5,947,175 | 6,067,157 | |||||
Cash and cash equivalents | 37,938 | 65,500 | |||||
Receivables: | |||||||
Tenant, net of allowance for doubtful accounts of $2,368 and $2,379 in 2014 and 2013, respectively | 81,338 | 79,899 | |||||
Other, net of allowance for doubtful accounts of $1,285 and $1,241 in 2014 and 2013, respectively | 22,577 | 23,343 | |||||
Mortgage and other notes receivable | 19,811 | 30,424 | |||||
Investments in unconsolidated affiliates | 281,449 | 277,146 | |||||
Intangible lease assets and other assets | 226,011 | 242,502 | |||||
$ | 6,616,299 | $ | 6,785,971 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Mortgage and other indebtedness | $ | 4,700,460 | $ | 4,857,523 | |||
Accounts payable and accrued liabilities | 328,352 | 333,875 | |||||
Total liabilities | 5,028,812 | 5,191,398 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling partnership interests | 37,559 | 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, 170,260,273 and 170,048,144 issued and outstanding in 2014 and 2013, respectively | 1,703 | 1,700 | |||||
Additional paid-in capital | 1,958,198 | 1,967,644 | |||||
Accumulated other comprehensive income | 13,411 | 6,325 | |||||
Dividends in excess of cumulative earnings | (566,785 | ) | (570,781 | ) | |||
Total shareholders' equity | 1,406,552 | 1,404,913 | |||||
Noncontrolling interests | 143,376 | 155,021 | |||||
Total equity | 1,549,928 | 1,559,934 | |||||
$ | 6,616,299 | $ | 6,785,971 |
As of December 31, | |||||||
2014 | 2013 | ||||||
ASSETS: | |||||||
Investment in real estate assets | $ | 2,266,252 | $ | 2,167,227 | |||
Accumulated depreciation | (619,558 | ) | (555,174 | ) | |||
1,646,694 | 1,612,053 | ||||||
Developments in progress | 75,877 | 103,161 | |||||
Net investment in real estate assets | 1,722,571 | 1,715,214 | |||||
Other assets | 170,554 | 168,799 | |||||
Total assets | $ | 1,893,125 | $ | 1,884,013 | |||
LIABILITIES: | |||||||
Mortgage and other indebtedness | $ | 1,512,826 | $ | 1,468,422 | |||
Other liabilities | 42,517 | 48,203 | |||||
Total liabilities | 1,555,343 | 1,516,625 | |||||
OWNERS' EQUITY: | |||||||
The Company | 198,261 | 213,664 | |||||
Other investors | 139,521 | 153,724 | |||||
Total owners' equity | 337,782 | 367,388 | |||||
Total liabilities and owners’ equity | $ | 1,893,125 | $ | 1,884,013 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Total revenues | $ | 65,246 | $ | 63,124 | $ | 250,248 | $ | 243,215 | |||||||
Depreciation and amortization | (21,266 | ) | (19,165 | ) | (79,059 | ) | (76,323 | ) | |||||||
Other operating expenses | (19,761 | ) | (17,926 | ) | (73,218 | ) | (72,166 | ) | |||||||
Income from operations | 24,219 | 26,033 | 97,971 | 94,726 | |||||||||||
Interest income | 343 | 342 | 1,358 | 1,359 | |||||||||||
Interest expense | (18,589 | ) | (19,073 | ) | (74,754 | ) | (76,934 | ) | |||||||
Gain on sales of real estate assets | 578 | 81 | 1,697 | 102 | |||||||||||
Net income | $ | 6,551 | $ | 7,383 | $ | 26,272 | $ | 19,253 |
Company's Share for the Three Months Ended December 31, | Company's Share for the Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Total revenues | $ | 34,069 | $ | 32,150 | $ | 130,458 | $ | 125,152 | |||||||
Depreciation and amortization | (11,152 | ) | (9,844 | ) | (41,806 | ) | (39,592 | ) | |||||||
Other operating expenses | (10,117 | ) | (8,851 | ) | (37,415 | ) | (35,533 | ) | |||||||
Income from operations | 12,800 | 13,455 | 51,237 | 50,027 | |||||||||||
Interest income | 262 | 211 | 1,037 | 923 | |||||||||||
Interest expense | (9,586 | ) | (9,723 | ) | (38,458 | ) | (39,399 | ) | |||||||
Gain on sales of real estate assets | 289 | 54 | 987 | 65 | |||||||||||
Net income | $ | 3,765 | $ | 3,997 | $ | 14,803 | $ | 11,616 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
EBITDA: | |||||||||||||||
Net income attributable to the Company | $ | 76,556 | $ | 8,843 | $ | 219,150 | $ | 85,204 | |||||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 79,093 | 72,797 | 291,273 | 278,911 | |||||||||||
Depreciation and amortization from unconsolidated affiliates | 11,152 | 9,844 | 41,806 | 39,592 | |||||||||||
Depreciation and amortization from discontinued operations | — | — | — | 6,638 | |||||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (2,011 | ) | (1,589 | ) | (6,842 | ) | (5,881 | ) | |||||||
Interest expense | 59,827 | 58,482 | 239,824 | 231,856 | |||||||||||
Interest expense from unconsolidated affiliates | 9,586 | 9,723 | 38,458 | 39,399 | |||||||||||
Interest expense from discontinued operations | — | — | — | 1 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,620 | ) | (1,384 | ) | (5,613 | ) | (4,413 | ) | |||||||
Income and other taxes | 298 | (1,101 | ) | 6,195 | 2,225 | ||||||||||
(Gain) loss on extinguishment of debt | (26,951 | ) | — | (87,893 | ) | 9,108 | |||||||||
Loss on impairment | 105 | 49,011 | 17,858 | 70,049 | |||||||||||
Loss on impairment from discontinued operations | — | — | 681 | 5,234 | |||||||||||
Abandoned projects | 55 | 193 | 136 | 334 | |||||||||||
Gain on investment | — | — | — | (2,400 | ) | ||||||||||
Net income (loss) attributable to noncontrolling interest in earnings of Operating Partnership | 11,259 | (477 | ) | 30,106 | 7,125 | ||||||||||
(Gain) loss on depreciable property | — | 3 | (937 | ) | (7 | ) | |||||||||
(Gain) loss on discontinued operations | (188 | ) | 18 | (276 | ) | (1,144 | ) | ||||||||
Company's share of total EBITDA | $ | 217,161 | $ | 204,363 | $ | 783,926 | $ | 761,831 | |||||||
Interest Expense: | |||||||||||||||
Interest expense | $ | 59,827 | $ | 58,482 | $ | 239,824 | $ | 231,856 | |||||||
Interest expense from unconsolidated affiliates | 9,586 | 9,723 | 38,458 | 39,399 | |||||||||||
Interest expense from discontinued operations | — | — | — | 1 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,620 | ) | (1,384 | ) | (5,613 | ) | (4,413 | ) | |||||||
Company's share of total interest expense | $ | 67,793 | $ | 66,821 | $ | 272,669 | $ | 266,843 | |||||||
Ratio of EBITDA to Interest Expense | 3.20 | 3.06 | 2.88 | 2.85 |
Reconciliation of EBITDA to Cash Flows Provided by Operating Activities | |||||||||||||||
(In thousands) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Company's share of total EBITDA | $ | 217,161 | $ | 204,363 | $ | 783,926 | $ | 761,831 | |||||||
Interest expense | (59,827 | ) | (58,482 | ) | (239,824 | ) | (231,856 | ) | |||||||
Interest expense from discontinued operations | — | — | — | (1 | ) | ||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | 1,620 | 1,384 | 5,613 | 4,413 | |||||||||||
Income and other taxes | (298 | ) | 1,101 | (6,195 | ) | (2,225 | ) | ||||||||
Net amortization of deferred financing costs and debt premiums and discounts | (152 | ) | 1,130 | 4,405 | 4,781 | ||||||||||
Net amortization of deferred financing costs and debt premiums and discounts from discontinued operations | — | 2 | — | 2 | |||||||||||
Net amortization of intangible lease assets and liabilities | (167 | ) | 176 | 368 | 63 | ||||||||||
Depreciation and interest expense from unconsolidated affiliates | (20,738 | ) | (19,567 | ) | (80,264 | ) | (78,991 | ) | |||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | 2,011 | 1,589 | 6,842 | 5,881 | |||||||||||
Noncontrolling interests in earnings of other consolidated subsidiaries | 37 | (297 | ) | 3,777 | 18,041 | ||||||||||
Gains on outparcel sales | (1,829 | ) | (925 | ) | (4,405 | ) | (1,973 | ) | |||||||
Equity in earnings of unconsolidated affiliates | (3,765 | ) | (3,998 | ) | (14,803 | ) | (11,616 | ) | |||||||
Distributions of earnings from unconsolidated affiliates | 7,303 | 4,770 | 21,866 | 15,995 | |||||||||||
Share-based compensation expense | 661 | 417 | 3,979 | 2,725 | |||||||||||
Provision for doubtful accounts | (41 | ) | 357 | 2,643 | 1,816 | ||||||||||
Change in deferred tax assets | 88 | 158 | 1,329 | 1,824 | |||||||||||
Changes in operating assets and liabilities | (3,337 | ) | 5,315 | (21,196 | ) | (17,182 | ) | ||||||||
Cash flows provided by operating activities | $ | 138,727 | $ | 137,493 | $ | 468,061 | $ | 473,528 | |||||||
Original Maturity | Optional Extended Maturity | Interest | Balance | |||||||||||||
Property | Location | Date | Date | Rate | Balance | Fixed | Variable | |||||||||
Operating Properties: | ||||||||||||||||
Imperial Valley Mall | El Centro, CA | Sep-15 | 4.99% | $ | 49,945 | $ | 49,945 | $ | — | |||||||
CherryVale Mall | Rockford, IL | Oct-15 | 5.00% | 78,280 | 78,280 | — | ||||||||||
Brookfield Square | Brookfield, IL | Nov-15 | 5.08% | 87,816 | 87,816 | — | ||||||||||
East Towne Mall | Madison, WI | Nov-15 | 5.00% | 66,772 | 66,772 | — | ||||||||||
West Towne Mall | Madison, WI | Nov-15 | 5.00% | 94,316 | 94,316 | — | ||||||||||
Eastland Mall | Bloomington, IL | Dec-15 | 5.85% | 59,400 | 59,400 | — | ||||||||||
Hickory Point Mall | Decatur, IL | Dec-15 | 5.85% | 28,338 | 28,338 | — | ||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | Feb-16 | 5.87% | 38,659 | 38,659 | — | ||||||||||
CoolSprings Crossing | Nashville, TN | Apr-16 | 4.54% | 11,946 | (1) | 11,946 | — | |||||||||
Gunbarrel Pointe | Chattanooga, TN | Apr-16 | 4.64% | 10,641 | (2) | 10,641 | — | |||||||||
Stroud Mall | Stroud, PA | Apr-16 | 4.59% | 31,960 | (3) | 31,960 | — | |||||||||
York Galleria | York, PA | Apr-16 | 4.55% | 51,037 | (4) | 51,037 | — | |||||||||
Statesboro Crossing | Statesboro, GA | Jun-16 | Jun-18 | 1.97% | 11,212 | — | 11,212 | |||||||||
Greenbrier Mall | Chesapeake, VA | Aug-16 | 5.91% | 73,907 | 73,907 | — | ||||||||||
Hamilton Place | Chattanooga, TN | Aug-16 | 5.86% | 101,624 | 101,624 | — | ||||||||||
Midland Mall | Midland, MI | Aug-16 | 6.10% | 33,179 | 33,179 | — | ||||||||||
Chesterfield Mall | St. Louis, MO | Sep-16 | 5.74% | 140,000 | 140,000 | — | ||||||||||
Dakota Square Mall | Minot, ND | Nov-16 | 6.23% | 56,705 | 56,705 | — | ||||||||||
Southaven Towne Center | Southaven, MS | Jan-17 | 5.50% | 40,023 | 40,023 | — | ||||||||||
Cary Towne Center | Cary, NC | Mar-17 | 8.50% | 51,250 | 51,250 | — | ||||||||||
Acadiana Mall | Lafayette, LA | Apr-17 | 5.67% | 132,068 | 132,068 | — | ||||||||||
Hamilton Corner | Chattanooga, TN | Apr-17 | 5.67% | 14,966 | 14,966 | — | ||||||||||
Layton Hills Mall | Layton, UT | Apr-17 | 5.66% | 94,383 | 94,383 | — | ||||||||||
The Plaza at Fayette Mall | Lexington, KY | Apr-17 | 5.67% | 38,988 | 38,988 | — | ||||||||||
The Shoppes at St. Clair Square | Fairview Heights, IL | Apr-17 | 5.67% | 19,760 | 19,760 | — | ||||||||||
EastGate Crossing | Cincinnati, OH | May-17 | 5.66% | 14,707 | 14,707 | — | ||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | Dec-17 | 7.06% | 64,497 | 64,497 | — | ||||||||||
Kirkwood Mall | Bismarck, ND | Apr-18 | 5.75% | 39,196 | 39,196 | — | ||||||||||
The Outlet Shoppes at El Paso Phase II | El Paso, TX | Apr-18 | 2.91% | 5,068 | — | 5,068 | ||||||||||
Hanes Mall | Winston-Salem, NC | Oct-18 | 6.99% | 151,584 | 151,584 | — | ||||||||||
The Outlet Shoppes at Oklahoma City Phase II | Oklahoma City, OK | Apr-19 | Apr-21 | 2.91% | 5,909 | — | 5,909 | |||||||||
The Outlet Shoppes at Oklahoma City Phase III | Oklahoma City, OK | Apr-19 | Apr-21 | 2.91% | 2,570 | — | 2,570 | |||||||||
Honey Creek Mall | Terre Haute, IN | Jul-19 | 8.00% | 28,978 | 28,978 | — | ||||||||||
Volusia Mall | Daytona Beach, FL | Jul-19 | 8.00% | 49,849 | 49,849 | — | ||||||||||
The Terrace | Chattanooga, TN | Jun-20 | 7.25% | 13,683 | 13,683 | — | ||||||||||
Burnsville Center | Burnsville, MN | Jul-20 | 6.00% | 75,752 | 75,752 | — | ||||||||||
Parkway Place | Huntsville, AL | Jul-20 | 6.50% | 38,567 | 38,567 | — | ||||||||||
Valley View Mall | Roanoke, VA | Jul-20 | 6.50% | 59,688 | 59,688 | — | ||||||||||
Parkdale Mall & Crossing | Beaumont, TX | Mar-21 | 5.85% | 87,961 | 87,961 | — | ||||||||||
EastGate Mall | Cincinnati, OH | Apr-21 | 5.83% | 39,852 | 39,852 | — | ||||||||||
Hamilton Crossing & Expansion | Chattanooga, TN | Apr-21 | 5.99% | 9,853 | 9,853 | — | ||||||||||
Park Plaza Mall | Little Rock, AR | Apr-21 | 5.28% | 91,643 | 91,643 | — | ||||||||||
Wausau Center | Wausau, WI | Apr-21 | 5.85% | 18,369 | 18,369 | — | ||||||||||
Fayette Mall | Lexington, KY | May-21 | 5.42% | 171,192 | 171,192 | — | ||||||||||
Alamance Crossing - East | Burlington, NC | Jul-21 | 5.83% | 48,660 | 48,660 | — | ||||||||||
Asheville Mall | Asheville, NC | Sep-21 | 5.80% | 73,260 | 73,260 | — |
Original Maturity | Optional Extended Maturity | Interest | Balance | |||||||||||||
Property | Location | Date | Date | Rate | Balance | Fixed | Variable | |||||||||
Cross Creek Mall | Fayetteville, NC | Jan-22 | 4.54% | 130,600 | 130,600 | — | ||||||||||
The Outlet Shoppes at Oklahoma City | Oklahoma City, OK | Jan-22 | 5.73% | 56,571 | 56,571 | — | ||||||||||
Northwoods Mall | North Charleston, SC | Apr-22 | 5.08% | 70,194 | 70,194 | — | ||||||||||
Arbor Place | Douglasville, GA | May-22 | 5.10% | 117,496 | 117,496 | — | ||||||||||
CBL Center | Chattanooga, TN | Jun-22 | 5.00% | 20,485 | 20,485 | — | ||||||||||
Fashion Square | Saginaw, MI | Jun-22 | 4.95% | 39,736 | 39,736 | — | ||||||||||
Jefferson Mall | Louisville, KY | Jun-22 | 4.75% | 68,470 | 68,470 | — | ||||||||||
Southpark Mall | Colonial Heights, VA | Jun-22 | 4.85% | 64,486 | 64,486 | — | ||||||||||
WestGate Mall | Spartanburg, SC | Jul-22 | 4.99% | 37,931 | 37,931 | — | ||||||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | Nov-23 | 4.90% | 78,695 | 78,695 | — | ||||||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | Dec-24 | 4.05% | 77,398 | 77,398 | — | ||||||||||
SUBTOTAL | $ | 3,270,075 | $ | 3,245,316 | $ | 24,759 | ||||||||||
Weighted average interest rate | 5.49 | % | 5.51 | % | 2.48 | % | ||||||||||
Debt Premiums (Discounts): (5) | ||||||||||||||||
Imperial Valley Mall | El Centro, CA | Sep-15 | 3.75% | $ | 461 | $ | 461 | $ | — | |||||||
Chesterfield Mall | St. Louis, MO | Sep-16 | 5.96% | (453 | ) | (453 | ) | — | ||||||||
Dakota Square Mall | Minot, ND | Nov-16 | 5.03% | 1,354 | 1,354 | — | ||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | Dec-17 | 4.75% | 4,122 | 4,122 | — | ||||||||||
Kirkwood Mall | Bismarck, ND | Apr-18 | 4.25% | 1,930 | 1,930 | — | ||||||||||
SUBTOTAL | $ | 7,414 | $ | 7,414 | $ | — | ||||||||||
Weighted average interest rate | 4.53 | % | 4.53 | % | ||||||||||||
Total Loans On Operating Properties And Debt Premiums (Discounts) | $ | 3,277,489 | $ | 3,252,730 | $ | 24,759 | ||||||||||
Weighted average interest rate | 5.48 | % | 5.51 | % | 2.48 | % | ||||||||||
Construction Loan: | ||||||||||||||||
The Outlet Shoppes at Atlanta - Parcel Development | Woodstock, GA | Dec-19 | 2.66% | $ | 454 | $ | — | $ | 454 | |||||||
Operating Partnership Debt: | ||||||||||||||||
Unsecured credit facilities: | ||||||||||||||||
$600,000 capacity | Nov-15 | Nov-16 | 1.56% | $ | 63,716 | $ | — | $ | 63,716 | |||||||
$100,000 capacity | Feb-16 | 1.55% | 2,200 | — | 2,200 | |||||||||||
$600,000 capacity | Nov-16 | Nov-17 | 1.56% | 155,267 | — | 155,267 | ||||||||||
SUBTOTAL | $ | 221,183 | $ | — | $ | 221,183 | ||||||||||
Unsecured term loans: | ||||||||||||||||
$50,000 term loan | Feb-18 | 2.05% | $ | 50,000 | $ | — | $ | 50,000 | ||||||||
$400,000 term loan | Jul-18 | 1.67% | 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% | (4,230 | ) | (4,230 | ) | — | |||||||||
Senior Unsecured 4.60% Notes | Oct-24 | 4.60% | 300,000 | 300,000 | — | |||||||||||
Senior Unsecured 4.60% Notes (discount) | Oct-24 | 4.60% | (75 | ) | (75 | ) | — | |||||||||
SUBTOTAL | $ | 745,695 | $ | 745,695 | $ | — | ||||||||||
Original Maturity | Optional Extended Maturity | Interest | Balance | |||||||||||||
Property | Location | Date | Date | Rate | Balance | Fixed | Variable | |||||||||
Other: | ||||||||||||||||
ERMC note (term loan) | May-17 | 3.50% | $ | 5,639 | $ | 5,639 | $ | — | ||||||||
Total Consolidated Debt | $ | 4,700,460 | $ | 4,004,064 | $ | 696,396 | ||||||||||
Weighted average interest rate | 4.86 | % | 5.41 | % | 1.69 | % | ||||||||||
Plus CBL's Share Of Unconsolidated Affiliates' Debt: | ||||||||||||||||
Gulf Coast Town Center Phase III | Ft. Myers, FL | Jul-15 | 2.75% | $ | 5,694 | $ | — | $ | 5,694 | |||||||
Hammock Landing Phase I | West Melbourne, FL | Nov-15 | Nov-17 | 2.17% | 20,121 | — | 20,121 | |||||||||
Hammock Landing Phase II | West Melbourne, FL | Nov-15 | Nov-17 | 2.42% | 8,700 | — | 8,700 | |||||||||
The Pavilion at Port Orange | Port Orange, FL | Nov-15 | Nov-17 | 2.17% | 30,407 | — | 30,407 | |||||||||
Oak Park Mall | Overland Park, KS | Dec-15 | 5.85% | 137,850 | 137,850 | — | ||||||||||
Triangle Town Center | Raleigh, NC | Dec-15 | 5.74% | 87,574 | 87,574 | — | ||||||||||
Renaissance Center Phase I | Durham, NC | Jul-16 | 5.61% | 16,213 | 16,213 | — | ||||||||||
Fremaux Town Center Phase I | Slidell, LA | Aug-16 | Aug-18 | 2.17% | 27,071 | — | 27,071 | |||||||||
Fremaux Town Center Phase II | Slidell, LA | Aug-16 | Aug-18 | 2.17% | 2,627 | — | 2,627 | |||||||||
Governor's Square Mall | Clarksville, TN | Sep-16 | 8.23% | 8,401 | 8,401 | — | ||||||||||
Kentucky Oaks Mall | Paducah, KY | Jan-17 | 5.27% | 10,938 | 10,938 | — | ||||||||||
The Shops at Friendly Center | Greensboro, NC | Jan-17 | 5.90% | 19,744 | 19,744 | — | ||||||||||
High Pointe Commons | Harrisburg, PA | May-17 | 5.74% | 6,549 | 6,549 | — | ||||||||||
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% | 2,619 | 2,619 | — | ||||||||||
Ambassador Town Center | Lafayette, LA | Dec-17 | Dec-19 | 1.96% | 715 | — | 715 | |||||||||
Ambassador Town Center Infrastructure Improvements | Lafayette, LA | Dec-17 | Dec-19 | 2.17% | 725 | — | 725 | |||||||||
CoolSprings Galleria | Nashville, TN | Jun-18 | 6.98% | 52,761 | 52,761 | — | ||||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 17,837 | 17,837 | — | ||||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 2.91% | 716 | — | 716 | ||||||||||
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% | 59,757 | 59,757 | — | ||||||||||
Coastal Grand Outparcel-Myrtle Beach | Myrtle Beach, SC | Aug-24 | 4.09% | 2,883 | 2,883 | — | ||||||||||
SUBTOTAL | $ | 768,302 | $ | 671,526 | $ | 96,776 | ||||||||||
Less Noncontrolling Interests' Share Of Consolidated Debt: | Noncontrolling Interest % | |||||||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | 50% | 4.99% | $ | (19,329 | ) | $ | (19,329 | ) | $ | — | |||||
Statesboro Crossing | Statesboro, GA | 50% | 1.97% | (5,606 | ) | — | (5,606 | ) | ||||||||
Hamilton Place | Chattanooga, TN | 10% | 5.86% | (10,162 | ) | (10,162 | ) | — | ||||||||
Hamilton Corner | Chattanooga, TN | 10% | 5.67% | (1,497 | ) | (1,497 | ) | — | ||||||||
ERMC note (term loan) | Chattanooga, TN | 50% | 3.50% | (2,819 | ) | (2,819 | ) | — | ||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 25% | 7.06% | (16,124 | ) | (16,124 | ) | — | ||||||||
The Outlet Shoppes at Oklahoma City Phase II | Oklahoma City, OK | 25% | 2.91% | (1,477 | ) | — | (1,477 | ) | ||||||||
The Terrace | Chattanooga, TN | 8% | 7.25% | (1,095 | ) | (1,095 | ) | — | ||||||||
Hamilton Crossing & Expansion | Chattanooga, TN | 8% | 5.99% | (788 | ) | (788 | ) | — | ||||||||
The Outlet Shoppes at Oklahoma City | Oklahoma City, OK | 25% | 5.73% | (14,143 | ) | (14,143 | ) | — | ||||||||
CBL Center | Chattanooga, TN | 8% | 5.00% | (1,639 | ) | (1,639 | ) | — | ||||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | 25% | 4.90% | (19,674 | ) | (19,674 | ) | — | ||||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | 35% | 4.05% | (27,089 | ) | (27,089 | ) | — | ||||||||
SUBTOTAL | $ | (121,442 | ) | $ | (114,359 | ) | $ | (7,083 | ) | |||||||
Original Maturity | Optional Extended Maturity | Interest | Balance | |||||||||||||
Property | Location | Date | Date | Rate | Balance | Fixed | Variable | |||||||||
Less Noncontrolling Interests' Share Of Debt Premium: (5) | Noncontrolling Interest % | |||||||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 25% | 7.06% | $ | (1,031 | ) | $ | (1,031 | ) | $ | — | |||||
Company's Share Of Consolidated And Unconsolidated Debt | $ | 5,346,289 | $ | 4,560,200 | $ | 786,089 | ||||||||||
Weighted average interest rate | 4.91 | % | 5.45 | % | 1.75 | % | ||||||||||
Total Debt of Unconsolidated Affiliates: | ||||||||||||||||
Gulf Coast Town Center Phase III | Ft. Myers, FL | Jul-15 | 2.75% | $ | 5,694 | $ | — | $ | 5,694 | |||||||
Hammock Landing Phase I | West Melbourne, FL | Nov-15 | Nov-17 | 2.17% | 40,243 | — | 40,243 | |||||||||
Hammock Landing Phase II | West Melbourne, FL | Nov-15 | Nov-17 | 2.42% | 13,579 | — | 13,579 | |||||||||
The Pavilion at Port Orange | Port Orange, FL | Nov-15 | Nov-17 | 2.17% | 60,814 | — | 60,814 | |||||||||
Oak Park Mall | Overland Park, KS | Dec-15 | 5.85% | 275,700 | 275,700 | — | ||||||||||
Triangle Town Center | Raleigh, NC | Dec-15 | 5.74% | 175,148 | 175,148 | — | ||||||||||
Renaissance Center Phase I | Durham, NC | Jul-16 | 5.61% | 32,427 | 32,427 | — | ||||||||||
Fremaux Town Center Phase I | Slidell, LA | Aug-16 | Aug-18 | 2.17% | 41,648 | — | 41,648 | |||||||||
Fremaux Town Center Phase II | Slidell, LA | Aug-16 | Aug-18 | 2.17% | 4,041 | — | 4,041 | |||||||||
Governor's Square Mall | Clarksville, TN | Sep-16 | 8.23% | 17,685 | 17,685 | — | ||||||||||
Kentucky Oaks Mall | Paducah, KY | Jan-17 | 5.27% | 21,876 | 21,876 | — | ||||||||||
The Shops at Friendly Center | Greensboro, NC | Jan-17 | 5.90% | 39,488 | 39,488 | — | ||||||||||
High Pointe Commons | Harrisburg, PA | May-17 | 5.74% | 13,097 | 13,097 | — | ||||||||||
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% | 5,236 | 5,236 | — | ||||||||||
Ambassador Town Center | Lafayette, LA | Dec-17 | Dec-19 | 1.96% | 715 | — | 715 | |||||||||
Ambassador Town Center Infrastructure Improvements | Lafayette, LA | Dec-17 | Dec-19 | 2.17% | 725 | — | 725 | |||||||||
CoolSprings Galleria | Nashville, TN | Jun-18 | 6.98% | 105,523 | 105,523 | — | ||||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 35,675 | 35,675 | — | ||||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 2.91% | 1,431 | — | 1,431 | ||||||||||
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% | 119,514 | 119,514 | — | ||||||||||
Coastal Grand Outparcel-Myrtle Beach | Myrtle Beach, SC | Aug-24 | 4.09% | 5,767 | 5,767 | — | ||||||||||
$ | 1,512,826 | $ | 1,343,936 | $ | 168,890 | |||||||||||
Weighted average interest rate | 4.84 | % | 5.17 | % | 2.21 | % |
(1) | The Company has an interest rate swap on a notional amount of $11,946, 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. |
(2) | The Company has an interest rate swap on a notional amount of $10,641, amortizing to $10,083 over the term of the swap, related to Gunbarrel Point 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. |
(3) | The Company has an interest rate swap on a notional amount of $31,960, 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. |
(4) | The Company has an interest rate swap on a notional amount of $51,037, 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. |
(5) | 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 | ||||||||||||||||
2015 | $ | 464,867 | $ | 231,118 | $ | — | $ | 695,985 | 13.02 | % | 5.36 | % | ||||||||||
2016 | 615,574 | 24,614 | (29,491 | ) | 610,697 | 11.42 | % | 5.22 | % | |||||||||||||
2017 | 631,548 | 194,478 | (20,440 | ) | 805,586 | 15.07 | % | 4.86 | % | |||||||||||||
2018 | 657,060 | 82,459 | (5,606 | ) | 733,913 | 13.73 | % | 3.43 | % | |||||||||||||
2019 | 79,281 | 1,440 | — | 80,721 | 1.51 | % | 7.86 | % | ||||||||||||||
2020 | 187,690 | — | (1,095 | ) | 186,595 | 3.49 | % | 6.35 | % | |||||||||||||
2021 | 549,269 | — | (2,265 | ) | 547,004 | 10.23 | % | 5.57 | % | |||||||||||||
2022 | 605,969 | 113,553 | (15,782 | ) | 703,740 | 13.16 | % | 4.72 | % | |||||||||||||
2023 | 528,695 | 58,000 | (19,674 | ) | 567,021 | 10.61 | % | 5.03 | % | |||||||||||||
2024 | 377,398 | 62,640 | (27,089 | ) | 412,949 | 7.72 | % | 4.45 | % | |||||||||||||
Face Amount of Debt | 4,697,351 | 768,302 | (121,442 | ) | 5,344,211 | 99.96 | % | 4.91 | % | |||||||||||||
Net Premiums on Debt | 3,109 | — | (1,031 | ) | 2,078 | 0.04 | % | — | ||||||||||||||
Total | $ | 4,700,460 | $ | 768,302 | $ | (122,473 | ) | $ | 5,346,289 | 100.00 | % | 4.91 | % |
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 | ||||||||||||||||
2015 | $ | 528,583 | $ | 290,346 | $ | — | $ | 818,929 | 15.32 | % | 4.83 | % | ||||||||||
2016 | 718,337 | 54,312 | (35,097 | ) | 737,552 | 13.80 | % | 4.62 | % | |||||||||||||
2017 | 476,281 | 136,690 | (20,440 | ) | 592,531 | 11.08 | % | 5.98 | % | |||||||||||||
2018 | 645,848 | 52,761 | — | 698,609 | 13.07 | % | 3.49 | % | ||||||||||||||
2019 | 87,760 | — | (1,477 | ) | 86,283 | 1.61 | % | 7.56 | % | |||||||||||||
2020 | 187,690 | — | (1,095 | ) | 186,595 | 3.49 | % | 6.35 | % | |||||||||||||
2021 | 540,790 | — | (788 | ) | 540,002 | 10.10 | % | 5.61 | % | |||||||||||||
2022 | 605,969 | 113,553 | (15,782 | ) | 703,740 | 13.16 | % | 4.72 | % | |||||||||||||
2023 | 528,695 | 58,000 | (19,674 | ) | 567,021 | 10.61 | % | 5.03 | % | |||||||||||||
2024 | 377,398 | 62,640 | (27,089 | ) | 412,949 | 7.72 | % | 4.45 | % | |||||||||||||
Face Amount of Debt | 4,697,351 | 768,302 | (121,442 | ) | 5,344,211 | 99.96 | % | 4.91 | % | |||||||||||||
Net Premiums on Debt | 3,109 | — | (1,031 | ) | 2,078 | 0.04 | % | — | ||||||||||||||
Total | $ | 4,700,460 | $ | 768,302 | $ | (122,473 | ) | $ | 5,346,289 | 100.00 | % | 4.91 | % |
Covenant | Required | Actual | ||
Debt to total asset value | <60% | 49.1% | ||
Unencumbered asset value to unsecured indebtedness | >1.60x | 2.52x | ||
Unencumbered NOI to unsecured interest expense | >1.75x | 4.08x | ||
EBITDA to fixed charges (debt service) | >1.50x | 2.21x |
Covenant | Required | Actual | ||
Total debt to total assets | <60% | 53.7% | ||
Secured debt to total assets | <45% | 37.0% | ||
Total unencumbered assets to unsecured debt | >150% | 235.5% | ||
Consolidated income available for debt service to annual debt service charge | >1.5x | 3.1x |
TIER 1 Sales > $375.00 per square foot | ||||||||||||||||||||||
Location | Total GLA | Sales Per Square Foot for the Year Ended (1) | Mall Occupancy | % of Total Mall NOI for the Year Ended 12/31/14 | ||||||||||||||||||
Property | 12/31/14 | 12/31/13 | 12/31/14 | 12/31/13 | ||||||||||||||||||
Acadiana Mall | Lafayette, LA | 991,196 | ||||||||||||||||||||
Asheville Mall | Asheville, NC | 974,465 | ||||||||||||||||||||
CoolSprings Galleria (2) | Nashville, TN | 1,055,582 | ||||||||||||||||||||
Cross Creek Mall | Fayetteville, NC | 1,032,995 | ||||||||||||||||||||
Dakota Square Mall | Minot, ND | 813,111 | ||||||||||||||||||||
Fayette Mall | Lexington, KY | 1,173,744 | ||||||||||||||||||||
Friendly Center | Greensboro, NC | 1,137,632 | ||||||||||||||||||||
Governor's Square | Clarksville, TN | 732,075 | ||||||||||||||||||||
Hamilton Place | Chattanooga, TN | 1,160,868 | ||||||||||||||||||||
Jefferson Mall | Louisville, KY | 903,158 | ||||||||||||||||||||
Kirkwood Mall | Bismarck, ND | 849,808 | ||||||||||||||||||||
Mall del Norte | Laredo, TX | 1,168,422 | ||||||||||||||||||||
Oak Park Mall | Overland Park, KS | 1,607,803 | ||||||||||||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 433,045 | ||||||||||||||||||||
St. Clair Square | Fairview Hts, IL | 1,077,319 | ||||||||||||||||||||
Sunrise Mall | Brownsville, TX | 750,791 | ||||||||||||||||||||
Volusia Mall | Daytona Beach, FL | 1,083,762 | ||||||||||||||||||||
West County Center | Des Peres, MO | 1,207,630 | ||||||||||||||||||||
West Towne Mall | Madison, WI | 828,602 | ||||||||||||||||||||
Total Tier 1 Malls | 18,982,008 | $ | 445 | $ | 445 | 97.0 | % | 97.0 | % | 33.9 | % |
TIER 2 Sales of $300.01 to $375.00 per square foot | |||||||||||||||
Location | Total GLA | Sales Per Square Foot for the Year Ended (1) | Mall Occupancy | % of Total Mall NOI for the Year Ended 12/31/14 | |||||||||||
Property | 12/31/14 | 12/31/13 | 12/31/14 | 12/31/13 | |||||||||||
Arbor Place | Douglasville, GA | 1,163,324 | |||||||||||||
Brookfield Square | Brookfield, WI | 1,008,340 | |||||||||||||
Burnsville Center | Burnsville, MN | 1,043,136 | |||||||||||||
CherryVale Mall | Rockford, IL | 845,250 | |||||||||||||
Coastal Grand - Myrtle Beach | Myrtle Beach, SC | 1,038,576 | |||||||||||||
East Towne Mall | Madison, WI | 788,120 | |||||||||||||
EastGate Mall | Cincinnati, OH | 845,143 | |||||||||||||
Frontier Mall | Cheyenne, WY | 525,173 | |||||||||||||
Greenbrier Mall | Chesapeake, VA | 896,738 | |||||||||||||
Hanes Mall | Winston-Salem, NC | 1,505,336 | |||||||||||||
Harford Mall | Bel Air, MD | 505,456 | |||||||||||||
Honey Creek Mall | Terre Haute, IN | 677,370 | |||||||||||||
Imperial Valley Mall | El Centro, CA | 825,826 | |||||||||||||
Laurel Park Place | Livonia, MI | 489,987 | |||||||||||||
Layton Hills Mall | Layton, UT | 636,702 | |||||||||||||
Meridian Mall | Lansing, MI | 968,228 | |||||||||||||
Northpark Mall | Joplin, MO | 955,216 | |||||||||||||
Northwoods Mall | N. 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 Year Ended (1) | Mall Occupancy | % of Total Mall NOI for the Year Ended 12/31/14 | |||||||||||||||||
12/31/14 | 12/31/13 | 12/31/14 | 12/31/13 | |||||||||||||||||||
Old Hickory Mall | Jackson, TN | 538,991 | ||||||||||||||||||||
The Outlet Shoppes at Atlanta (3) | Woodstock, GA | 371,376 | ||||||||||||||||||||
The Outlet Shoppes at Oklahoma City (3) | Oklahoma City, OK | 394,661 | ||||||||||||||||||||
The Outlet Shoppes of the Bluegrass (3) | Simpsonville, KY | 374,683 | ||||||||||||||||||||
Park Plaza | Little Rock, AR | 540,331 | ||||||||||||||||||||
Parkdale Mall | Beaumont, TX | 1,278,141 | ||||||||||||||||||||
Parkway Place | Huntsville, AL | 648,264 | ||||||||||||||||||||
Pearland Town Center | Pearland, TX | 644,920 | ||||||||||||||||||||
Post Oak Mall | College Station, TX | 774,922 | ||||||||||||||||||||
Richland Mall | Waco, TX | 685,730 | ||||||||||||||||||||
South County Center | St. Louis, MO | 1,044,247 | ||||||||||||||||||||
Southpark Mall | Colonial Heights, VA | 672,902 | ||||||||||||||||||||
Turtle Creek Mall | Hattiesburg, MS | 845,946 | ||||||||||||||||||||
Valley View Mall | Roanoke, VA | 844,193 | ||||||||||||||||||||
Westmoreland Mall | Greensburg, PA | 999,641 | ||||||||||||||||||||
York Galleria | York, PA | 764,710 | ||||||||||||||||||||
Total Tier 2 Malls | 26,914,263 | $ | 339 | $ | 341 | 95.0 | % | 95.2 | % | 44.8 | % |
TIER 3 Sales < $300.01 per square foot | |||||||||||||||
Property | Location | Total GLA | Sales Per Square Foot for the Year Ended (1) | Mall Occupancy | % of Total Mall NOI for the Year Ended 12/31/14 | ||||||||||
12/31/14 | 12/31/13 | 12/31/14 | 12/31/13 | ||||||||||||
Alamance Crossing | Burlington, NC | 875,368 | |||||||||||||
Bonita Lakes Mall | Meridian, MS | 631,924 | |||||||||||||
Cary Towne Center | Cary, NC | 910,200 | |||||||||||||
Chesterfield Mall | Chesterfield, MO | 1,293,445 | |||||||||||||
College Square | Morristown, TN | 450,465 | |||||||||||||
Eastland Mall | Bloomington, IL | 760,915 | |||||||||||||
Fashion Square | Saginaw, MI | 745,134 | |||||||||||||
Foothills Mall | Maryville, TN | 463,591 | |||||||||||||
Hickory Point Mall | Forsyth, IL | 814,213 | |||||||||||||
Janesville Mall | Janesville, WI | 615,506 | |||||||||||||
Kentucky Oaks Mall | Paducah, KY | 1,054,508 | |||||||||||||
The Lakes Mall | Muskegon, MI | 588,764 | |||||||||||||
Mid Rivers Mall | St. Peters, MO | 1,089,090 | |||||||||||||
Midland Mall | Midland, MI | 468,221 | |||||||||||||
Monroeville Mall | Pittsburgh, PA | 1,086,557 | |||||||||||||
Northgate Mall (2) | Chattanooga, TN | 790,299 | |||||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PS | 249,937 | |||||||||||||
Randolph Mall | Asheboro, NC | 382,218 | |||||||||||||
Regency Mall | Racine, WI | 789,336 | |||||||||||||
River Ridge Mall | Lynchburg, VA | 764,243 | |||||||||||||
Southaven Towne Center | Southaven, MS | 567,640 |
TIER 3 Sales < $300.01 per square foot | ||||||||||||||||||||||
Property | Location | Total GLA | Sales Per Square Foot for the Year Ended (1) | Mall Occupancy | % of Total Mall NOI for the Year Ended 12/31/14 | |||||||||||||||||
12/31/14 | 12/31/13 | 12/31/14 | 12/31/13 | |||||||||||||||||||
Stroud Mall | Stroudsburg, PA | 398,146 | ||||||||||||||||||||
Walnut Square | Dalton, GA | 495,516 | ||||||||||||||||||||
Wausau Center | Wausau, WI | 423,768 | ||||||||||||||||||||
Westgate Mall | Spartanburg, SC | 954,228 | ||||||||||||||||||||
Total Tier 3 Malls | 17,663,232 | $ | 269 | $ | 273 | 92.2 | % | 91.7 | % | 19.1 | % | |||||||||||
Total Mall Portfolio | 63,559,503 | $ | 360 | $ | 361 | 94.9 | % | 94.9 | % | 97.8 | % |
Non-Core/Lender Malls | ||||||||||||||||
Property | Location | Total GLA | Sales Per Square Foot for the Year Ended (1) | Mall Occupancy | % of Total Mall NOI for the Year Ended 12/31/14 | |||||||||||
12/31/14 | 12/31/13 | 12/31/14 | 12/31/13 | |||||||||||||
Gulf Coast Town Center | Ft Myers, FL | 1,233,459 | ||||||||||||||
Madison Square | Huntsville, AL | 928,538 | ||||||||||||||
Triangle Town Center | Raleigh, NC | 1,264,285 | ||||||||||||||
Total Non-Core/Lender Malls | 3,426,282 | N/A | N/A | N/A | N/A | 2.2 | % |
(1) | Represents same-store sales per square foot for mall tenants 10,000 square feet or less for stabilized malls. |
(2) | Properties were under development in 2014. Operational metrics have been excluded for Chesterfield Mall and Wausau Center, due to proposed significant redevelopment. |
(3) | The Outlet Shoppes at Atlanta, The Outlet Shoppes at Oklahoma City and The Outlet Shoppes of the Bluegrass are non-stabilized malls and are excluded from Sales Per Square Foot. |
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) | 652,728 | $ | 44.02 | $ | 47.97 | 9.0 | % | $ | 49.52 | 12.5 | % | ||||||||||
Stabilized malls | 608,551 | 45.31 | 49.45 | 9.1 | % | 51.04 | 12.6 | % | |||||||||||||
New leases | 138,390 | 41.29 | 50.78 | 23.0 | % | 53.83 | 30.4 | % | |||||||||||||
Renewal leases | 470,161 | 46.49 | 49.05 | 5.5 | % | 50.22 | 8.0 | % | |||||||||||||
Year-to-Date: | |||||||||||||||||||||
All Property Types (1) | 2,224,762 | $ | 39.90 | $ | 43.46 | 8.9 | % | $ | 44.84 | 12.4 | % | ||||||||||
Stabilized malls | 2,024,659 | 41.54 | 45.31 | 9.1 | % | 46.76 | 12.6 | % | |||||||||||||
New leases | 502,951 | 40.51 | 49.52 | 22.2 | % | 52.51 | 29.6 | % | |||||||||||||
Renewal leases | 1,521,708 | 41.88 | 43.92 | 4.9 | % | 44.86 | 7.1 | % |
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 December 31, | ||||||||||||
Quarter: | 2014 | 2013 | |||||||||||
Operating portfolio: | Same-center stabilized malls | $ | 31.17 | $ | 30.66 | ||||||||
New leases | 285,989 | Stabilized malls | 31.17 | 30.35 | |||||||||
Renewal leases | 761,939 | Non-stabilized malls (4) | 25.10 | 24.52 | |||||||||
Development portfolio: | Associated centers | 12.99 | 12.06 | ||||||||||
New leases | 275,245 | Community centers | 15.98 | 15.77 | |||||||||
Total leased | 1,323,173 | Office buildings | 19.27 | 19.38 | |||||||||
Year-to-Date: | |||||||||||||
Operating Portfolio: | |||||||||||||
New leases | 1,323,875 | ||||||||||||
Renewal leases | 2,931,971 | ||||||||||||
Development Portfolio: | |||||||||||||
New leases | 822,539 | ||||||||||||
Total leased | 5,078,385 | ||||||||||||
(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 December 31, 2014, including the impact of any rent concessions. | |||||||||||||
(4) Includes The Outlet Shoppes of the Bluegrass, The Outlet Shoppes at Atlanta and The Outlet Shoppes at Oklahoma City as of December 31, 2014 and The Outlet Shoppes at Atlanta and The Outlet Shoppes at Oklahoma City as of December 31, 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 | 226 | 561,940 | 8.07 | $ | 46.68 | $ | 49.46 | $ | 38.12 | $ | 8.56 | 22.5% | $ | 11.34 | 29.7% | ||||||||||||||||||
Renewal | 590 | 1,600,766 | 4.11 | 40.74 | 41.71 | 38.21 | 2.53 | 6.6% | 3.50 | 9.2% | |||||||||||||||||||||||
Commencement 2014 Total | 816 | 2,162,706 | 5.21 | $ | 42.28 | $ | 43.72 | $ | 38.18 | $ | 4.10 | 10.7% | $ | 5.54 | 14.5% | ||||||||||||||||||
Commencement 2015: | |||||||||||||||||||||||||||||||||
New | 80 | 225,267 | 8.96 | $ | 48.09 | $ | 50.95 | $ | 37.90 | $ | 10.19 | 26.9% | $ | 13.05 | 34.4% | ||||||||||||||||||
Renewal | 244 | 697,258 | 4.16 | 39.15 | 40.12 | 36.93 | 2.22 | 6.0% | 3.19 | 8.6% | |||||||||||||||||||||||
Commencement 2015 Total | 324 | 922,525 | 5.35 | $ | 41.33 | $ | 42.77 | $ | 37.17 | $ | 4.16 | 11.2% | $ | 5.60 | 15.1% | ||||||||||||||||||
Total 2014/2015 | 1,140 | 3,085,231 | 5.25 | $ | 42.00 | $ | 43.44 | $ | 37.88 | $ | 4.12 | 10.9% | $ | 5.56 | 14.7% | ||||||||||||||||||
Tenant | Number of Stores | Square Feet | Percentage of Total Revenues | |||||||||
1 | Limited Brands, LLC (1) | 163 | 835,221 | 3.21 | % | |||||||
2 | Signet Jewelers Limited (2) | 217 | 321,661 | 2.84 | % | |||||||
3 | Foot Locker, Inc. | 138 | 576,776 | 2.24 | % | |||||||
4 | Ascena Retail Group, Inc. (3) | 183 | 916,598 | 2.19 | % | |||||||
5 | AE Outfitters Retail Company | 81 | 496,925 | 2.01 | % | |||||||
6 | The Gap, Inc. | 70 | 768,850 | 1.69 | % | |||||||
7 | Genesco Inc. (4) | 195 | 307,846 | 1.67 | % | |||||||
8 | Dick's Sporting Goods, Inc. (5) | 26 | 1,429,353 | 1.63 | % | |||||||
9 | JC Penney Company, Inc. (6) | 65 | 7,412,922 | 1.27 | % | |||||||
10 | Aeropostale, Inc. | 91 | 333,310 | 1.26 | % | |||||||
11 | Luxottica Group, S.P.A. (7) | 125 | 271,139 | 1.26 | % | |||||||
12 | Abercrombie & Fitch, Co. | 59 | 395,863 | 1.26 | % | |||||||
13 | Express Fashions | 44 | 359,278 | 1.17 | % | |||||||
14 | Finish Line, Inc. | 62 | 319,706 | 1.13 | % | |||||||
15 | Charlotte Russe Holding, Inc. | 53 | 344,591 | 1.09 | % | |||||||
16 | Forever 21 Retail, Inc. | 23 | 437,415 | 1.07 | % | |||||||
17 | The Buckle, Inc. | 50 | 255,561 | 0.99 | % | |||||||
18 | Best Buy Co., Inc. (8) | 63 | 548,048 | 0.99 | % | |||||||
19 | New York & Company, Inc. | 43 | 290,321 | 0.89 | % | |||||||
20 | Sun Capital Partners, Inc. (9) | 45 | 627,939 | 0.89 | % | |||||||
21 | The Children's Place Retail Stores, Inc. | 62 | 270,839 | 0.80 | % | |||||||
22 | Claire's Stores, Inc. | 112 | 139,241 | 0.80 | % | |||||||
23 | Barnes & Noble Inc. | 19 | 579,099 | 0.76 | % | |||||||
24 | Cinemark | 10 | 524,772 | 0.76 | % | |||||||
25 | Shoe Show, Inc. | 51 | 621,150 | 0.73 | % | |||||||
2,050 | 19,384,424 | 34.60 | % | |||||||||
(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 and Golf Galaxy stores. | |||||||||||
(6) | JC Penney Co., Inc. owns 32 of these stores. JC Penney plans to close four stores in 2015 including three leased locations and one location that was recently sold to a third party as a redevelopment opportunity. The four stores are included in the above chart as the stores were in operation as of December 31, 2014 and JC Penney 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, Shopko Stores and Bar Louie Restaurants. |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Tenant allowances | $ | 12,783 | $ | 10,530 | $ | 46,837 | $ | 46,940 | ||||||||
Renovations | 11,844 | 14,172 | 27,285 | 36,592 | ||||||||||||
Deferred maintenance: | ||||||||||||||||
Parking lot and parking lot lighting | 8,148 | 8,833 | 31,411 | 15,867 | ||||||||||||
Roof repairs and replacements | 2,458 | 3,771 | 5,544 | 9,145 | ||||||||||||
Other capital expenditures | 5,114 | 7,368 | 11,352 | 13,409 | ||||||||||||
Total deferred maintenance expenditures | 15,720 | 19,972 | 48,307 | 38,421 | ||||||||||||
Total capital expenditures | $ | 40,347 | $ | 44,674 | $ | 122,429 | $ | 121,953 |
(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, | 913 | 876 | ||||||
$ | 3,263 | $ | 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 | $ | 77,234 | $ | 76,013 | July-14 | 12.1% | |||||||||
Mall/Outlet Center Expansions: | |||||||||||||||||
The Outlet Shoppes at El Paso - Phase II (4) | El Paso, TX | 44,014 | 7,663 | 6,747 | August-14 | 12.0% | |||||||||||
The Outlet Shoppes at Oklahoma City - Phase III (4) | Oklahoma City, OK | 18,182 | 3,713 | 3,041 | August-14 | 12.8% | |||||||||||
Parkdale Mall - shops | Beaumont, TX | 6,500 | 1,439 | 1,152 | September-14 | 10.2% | |||||||||||
The Promenade - Ross, Bed Bath & Beyond, Ashley Furniture (5) | D'Ilberville, MS | 68,400 | 8,373 | 6,843 | Spring/Fall-14 | 10.3% | |||||||||||
137,096 | 21,188 | 17,783 | |||||||||||||||
Community Center: | |||||||||||||||||
Fremaux Town Center - Phase I (3) | Slidell, LA | 341,002 | 55,030 | 52,408 | March-14 | 8.4% | |||||||||||
Community Center Expansion: | |||||||||||||||||
Hammock Landing - Carmike (6) | West Melbourne, FL | 47,000 | 12,232 | 9,931 | August-14 | 7.5% | |||||||||||
Total Properties Opened | 899,695 | $ | 165,684 | $ | 156,135 |
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% | |||||||||
Fayette Mall - Sears Redevelopment | Lexington, KY | 114,297 | 68,517 | 55,693 | Fall-14/ Spring-15 | 8.1% | |||||||||||
Monroeville Mall - Dick's Sporting Goods | Pittsburgh, PA | 86,000 | 8,649 | 6,532 | August-14 | 8.6% | |||||||||||
Northgate Mall - Burlington | Chattanooga, TN | 63,000 | 7,538 | 6,353 | September-14 | 7.4% | |||||||||||
293,568 | 87,782 | 71,436 | |||||||||||||||
Associated Center Redevelopment: | |||||||||||||||||
West Towne Crossing - Nordstrom Rack | Madison, WI | 30,750 | 5,693 | 5,708 | October-14 | 10.3% | |||||||||||
Total Redevelopment Completed | 324,318 | $ | 93,475 | $ | 77,144 |
Property | Location | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | Expected Opening Date | Initial Unleveraged Yield | |||||||||||
Outlet Center Expansion: | |||||||||||||||||
The Outlet Shoppes at Atlanta - Parcel Development (4) | Woodstock, GA | 9,600 | $ | 3,542 | $ | 594 | Spring-15 | 9.3% | |||||||||
Community Centers: | |||||||||||||||||
Ambassador Town Center (3) | Lafayette, LA | 438,057 | 61,456 | 2,611 | Spring-16 | 8.8% | |||||||||||
Parkway Plaza | Fort Oglethorpe, GA | 134,050 | 17,325 | 13,001 | Spring-15 | 8.5% | |||||||||||
572.107 | 78,781 | 15,612 | |||||||||||||||
Community Center Expansions: | |||||||||||||||||
Fremaux Town Center - Phase II (3) | Slidell, LA | 279,791 | 38,334 | 11,779 | Fall-15 | 9.6% | |||||||||||
Hammock Landing - Academy Sports (6) | West Melbourne, FL | 63,092 | 9,903 | 4,175 | Spring-15 | 8.6% | |||||||||||
342,883 | 48,237 | 15,954 | |||||||||||||||
Mall Redevelopment: | |||||||||||||||||
CoolSprings Galleria - Sears Redevelopment (6) | Nashville, TN | 182,163 | 66,398 | 28,292 | Spring-15 | 7.0% | |||||||||||
Janesville Mall - JCP Redevelopment | Janesville, WI | 149,522 | 15,925 | 545 | Fall-15 | 8.7% | |||||||||||
Meridian Mall - Gordmans | Lansing, MI | 50,000 | 7,372 | 2,995 | Fall-15 | 10.2% | |||||||||||
Northgate Mall - Streetscape/ULTA | Chattanooga, TN | 50,852 | 8,989 | 3,848 | Fall-14/Spring-15 | 10.5% | |||||||||||
432,537 | 98,684 | 35,680 | |||||||||||||||
Total Properties Under Development | 1,357,127 | $ | 229,244 | $ | 67,840 |
Shadow Pipeline of Properties Under Development at December 31, 2014 | |||||||||||||
(Dollars in thousands) | |||||||||||||
Property | Location | Total Project Square Feet | Estimated Total Cost (1) | Expected Opening Date | Initial Unleveraged Yield | ||||||||
Outlet Center Expansions: | |||||||||||||
The Outlet Shoppes at Atlanta - Phase II (4) | Woodstock, GA | 35,000 | $5,000 - $6,000 | Fall-15 | 12% - 13% | ||||||||
The Outlet Shoppes of the Bluegrass - Phase II (3) | Simpsonville, KY | 50,000 | $9,000 - $10,000 | Fall-15 | 11% - 12% | ||||||||
85,000 | $14,000 - $16,000 | ||||||||||||
Mall Redevelopment: | |||||||||||||
Hickory Point Mall - JCP Redevelopment | Decatur, IL | 100,000 | $3,000 - $4,000 | Fall-15 | 8% - 9% | ||||||||
Total Shadow Pipeline | 185,000 | $17,000 - $20,000 |
(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 85/15 joint venture. Total cost and cost to date are reflected at 100%. |
(6) | This property is a 50/50 joint venture. Total cost and cost to date are reflected at 100%. |