EX-99.1 2 ex991erandsupplemental-331.htm EXHIBIT 99.1 Ex 99.1 ER and Supplemental - 3.31.2015
Exhibit 99.1










Earnings Release and
Supplemental Financial and Operating Information

For the Three Months Ended
March 31, 2015





Earnings Release and Supplemental Financial and Operating Information
Table of Contents


 
 
Page
 
 
 
 
 
 
 
 
Reconciliations of Non-GAAP Financial Measures:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 



Contact: Katie Reinsmidt, Senior Vice President - Investor Relations/Corporate Investments, 423.490.8301, katie_reinsmidt@cblproperties.com
CBL & ASSOCIATES PROPERTIES REPORTS
FIRST QUARTER 2015 RESULTS
•
Same-center sales per square foot increased 6.9% during the first quarter 2015 over the prior-year period.
•
Average gross rent per square foot for stabilized mall leases signed in the first quarter 2015 increased 10.6% over the prior gross rent per square foot.
•
FFO per diluted share, as adjusted, was $0.52 for the first quarter 2015, consistent with FFO in the prior-year period.
•
Same-center NOI for the first quarter increased 0.6% in the Total Portfolio and was flat in the Mall Portfolio compared with the prior-year period.
•
Total portfolio occupancy was 90.9% as of March 31, 2015 compared with 92.5% as of March 31, 2014.
 
CHATTANOOGA, Tenn. (April 28, 2015) – CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the first quarter ended March 31, 2015. A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP measure is located at the end of this news release.
 
 
Three Months Ended
March 31,
 
 
2015
 
2014
Funds from Operations ("FFO") per diluted share
 
$
0.62

 
$
0.73

FFO, as adjusted, per diluted share (1)
 
$
0.52

 
$
0.52

(1) FFO, as adjusted, for the quarter ended March 31, 2015 excludes a partial litigation settlement, net of related expenses, of $4.7 million and a $16.6 million gain on investment related to the sale of marketable securities. FFO, as adjusted, for the quarter ended March 31, 2014 excludes a partial litigation settlement of $0.8 million and a net gain on extinguishment of debt of $42.7 million primarily related to the foreclosure of the mortgage loan secured by Citadel Mall in January 2014.

CBL's President and Chief Executive Officer Stephen Lebovitz commented, "First quarter highlights include an impressive 7% increase in same-center sales and the continuation of double-digit lease spreads. Same-center NOI and occupancy were impacted by the lost income from bankruptcy-related store closures; however, continued healthy demand from higher quality retailers will result in a stronger tenant mix across the CBL portfolio.
 
"We are making solid progress in executing our disposition program. We closed on the sale of one mall this week and expect to make additional announcements in the near future. We are growing our portfolio with Fremaux Town Center Phase II and Ambassador Town Center now under construction as well as expansions to our Atlanta and Bluegrass outlets. Redevelopments, such as the former Sears at CoolSprings Galleria and Fayette Mall, bring exciting new retailers and restaurants to our centers and enhance our long-term growth rate."

 
1


FFO allocable to common shareholders, as adjusted, for the first quarter 2015 was $87.9 million, or $0.52 per diluted share, compared with $87.7 million, or $0.52 per diluted share, for the first quarter 2014. FFO of the Operating Partnership, as adjusted, for the first quarter 2015 was $102.9 million compared with $102.9 million, for the first quarter of 2014.
Net income attributable to common shareholders for the first quarter of 2015 was $34.9 million, or $0.20 per diluted share, compared with net income of $44.1 million, or $0.26 per diluted share, for the first quarter of 2014.
Percentage change in same-center Net Operating Income ("NOI")(1):
 
Three Months Ended
March 31, 2015
Portfolio same-center NOI
0.6%
Mall same-center NOI
0.0%
(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.

MAJOR VARIANCES IMPACTING SAME-CENTER NOI RESULTS FOR THE QUARTER ENDED MARCH 31, 2015

•
New leasing and positive renewal spreads contributed to a $0.9 million increase in same-center minimum rents. Minimum rents were impacted by lost income from bankruptcy related store closures.
•
Percentage rents increased by $0.4 million due to positive sales growth.
•
Tenant reimbursement of real estate tax expense increased by $1.4 million, offset by a $2.3 million increase in real estate tax expense.
•
Property operating expense increased by $0.8 million, primarily as a result of a negative variance of $1.1 million due to an insurance adjustment in the prior year period and a $0.4 million increase in bad debt expense.
•
Maintenance and repairs declined by $1.2 million, primarily as a result of a $0.5 million decline in snow removal expense and a decline in other expenses.

PORTFOLIO OPERATIONAL RESULTS

Occupancy:
 
 
As of March 31,
 
 
2015
 
2014
Portfolio occupancy
 
90.9%
 
92.5%
Mall portfolio
 
89.8%
 
92.3%
Same-center stabilized malls
 
89.5%
 
92.6%
Stabilized malls 
 
89.5%
 
92.2%
Non-stabilized malls (1)
 
97.1%
 
96.9%
Associated centers
 
94.2%
 
94.8%
Community centers
 
97.5%
 
94.4%
(1) Represents occupancy for Fremaux Town Center, The Outlet Shoppes at Atlanta and The Outlet Shoppes of the Bluegrass in 2015 and in 2014 represents The Outlet Shoppes of Oklahoma City and The Outlet Shoppes at Atlanta.

    

 
2


New and Renewal Leasing Activity of Same Small Shop Space Less Than 10,000 Square Feet:
% Change in Average Gross Rent Per Square Foot
 
 
Three Months Ended
March 31, 2015
Stabilized Malls
 
10.6%
New leases
 
35.1%
Renewal leases
 
3.4%

Same-Center Sales Per Square Foot for Mall Tenants 10,000 Square Feet or Less:
 
Twelve Months Ended March 31,
 
 
 
2015
 
2014
 
% Change
Stabilized mall same-center sales per square foot
$
365

 
$
355

 
3%


TRANSACTIONS
Subsequent to the quarter-end, CBL completed the sale of Madison Square Mall in Huntsville, AL for $5.0 million, cash.
    
CBL has additional transactions in various stages. Further updates on the disposition program will be provided on its conference call.

OUTLOOK AND GUIDANCE
Based on its current outlook, the Company is reiterating FFO guidance to the range of $2.24 - $2.31 per diluted share. CBL's guidance assumes a same-center NOI growth range of 0% -2.0% in 2015.
    The guidance also assumes the following:
•
$2.0 million to $4.0 million of outparcel sales;
•
No additional unannounced acquisition or disposition activity;
•
No unannounced capital markets activity.
 
Low
 
High
Expected diluted earnings per common share
$
0.75

 
$
0.82

Adjust to fully converted shares from common shares
(0.10
)
 
(0.11
)
Expected earnings per diluted, fully converted common share
0.65

 
0.71

Add: depreciation and amortization
1.59

 
1.59

Add: noncontrolling interest in earnings of Operating Partnership
0.10

 
0.11

Adjustment for gain on investment
(0.08
)
 
(0.08
)
Adjustment for litigation settlement
(0.02
)
 
(0.02
)
Expected adjusted FFO per diluted, fully converted common share
$
2.24

 
$
2.31


INVESTOR CONFERENCE CALL AND WEBCAST
CBL & Associates Properties, Inc. will conduct a conference call at 11:00 a.m. ET on Wednesday, April 29, 2015, to discuss its first quarter results. The number to call for this interactive teleconference is (888) 317-6003 or (412) 317-6061, and entering confirmation code 3004179. A replay of the conference call will be available through May 7, 2015, by dialing (877) 344-7529 or (412) 317-0088 and entering the confirmation number, 10061512. A transcript of the Company's prepared remarks will be furnished on a Form 8-K following the conference call.

To receive the CBL & Associates Properties, Inc., first quarter earnings release and supplemental information please visit our website at cblproperties.com or contact Investor Relations at 423-490-8312.


 
3


The Company will also provide an online webcast and rebroadcast of its 2015 first quarter earnings release conference call. The live broadcast of the quarterly conference call will be available online at cblproperties.com on Wednesday, April 29, 2015 beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for one year.

ABOUT CBL & ASSOCIATES PROPERTIES, INC.    
CBL is one of the largest and most active owners and developers of malls and shopping centers in the United States. CBL owns, holds interests in or manages 148 properties, including 89 regional malls/open-air centers. The properties are located in 30 states and total 83.6 million square feet including 6.5 million square feet of non-owned shopping centers managed for third parties. Headquartered in Chattanooga, TN, CBL has regional offices in Boston (Waltham), MA, Dallas (Irving), TX, and St. Louis, MO. Additional information can be found at cblproperties.com.

NON-GAAP FINANCIAL MEASURES
Funds From Operations
FFO is a widely used measure of the operating performance of real estate companies that supplements net income (loss) determined in accordance with GAAP. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income (loss) (computed in accordance with GAAP) excluding gains or losses on sales of depreciable operating properties and impairment losses of depreciable properties, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests. Adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests are calculated on the same basis. We define FFO allocable to common shareholders as defined above by NAREIT less dividends on preferred stock. The Company’s method of calculating FFO allocable to its common shareholders may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
The Company believes that FFO provides an additional indicator of the operating performance of its properties without giving effect to real estate depreciation and amortization, which assumes the value of real estate assets declines predictably over time. Since values of well-maintained real estate assets have historically risen with market conditions, the Company believes that FFO enhances investors’ understanding of its operating performance. The use of FFO as an indicator of financial performance is influenced not only by the operations of the Company’s properties and interest rates, but also by its capital structure. The Company presents both FFO of its Operating Partnership and FFO allocable to its common shareholders, as it believes that both are useful performance measures. The Company believes FFO of its Operating Partnership is a useful performance measure since it conducts substantially all of its business through its Operating Partnership and, therefore, it reflects the performance of the properties in absolute terms regardless of the ratio of ownership interests of the Company’s common shareholders and the noncontrolling interest in the Operating Partnership. The Company believes FFO allocable to its common shareholders is a useful performance measure because it is the performance measure that is most directly comparable to net income (loss) attributable to its common shareholders.
In the reconciliation of net income attributable to the Company's common shareholders to FFO allocable to its common shareholders, located in this earnings release, the Company makes an adjustment to add back noncontrolling interest in income (loss) of its Operating Partnership in order to arrive at FFO of its Operating Partnership. The Company then applies a percentage to FFO of its Operating Partnership to arrive at FFO allocable to its common shareholders. The percentage is computed by taking the weighted average number of common shares outstanding for the period and dividing it by the sum of the weighted average number of common shares and the weighted average number of Operating Partnership units outstanding during the period.
FFO does not represent cash flows from operations as defined by accounting principles generally accepted in the United States, is not necessarily indicative of cash available to fund all cash flow needs and should not be considered as an alternative to net income (loss) for purposes of evaluating the Company’s operating performance or to cash flow as a measure of liquidity.
As described above, during the first quarter of 2015, the Company recognized a $16.6 million gain on investment related to the sale of marketable securities and received income of $4.7 million, net of related expense, as a partial settlement of ongoing litigation. During the first quarter of 2014, the Company recognized a $42.7 million net gain on the extinguishment of debt in connection with the foreclosure of the mortgage loan encumbering Citadel Mall and the early retirement of the mortgage loan encumbering St. Clair Square. Additionally, the Company received income of $0.8 million as a partial settlement of ongoing litigation. Considering the significance and nature of these items, the Company believes it is important to identify their impact on its FFO measures for readers to have a complete understanding of the Company's results of operations. Therefore, the Company has also presented adjusted FFO measures excluding these items from the applicable periods.


 
4


Same-center Net Operating Income
NOI is a supplemental measure of the operating performance of the Company's shopping centers and other properties. The Company defines NOI as property operating revenues (rental revenues, tenant reimbursements and other income) less property operating expenses (property operating, real estate taxes and maintenance and repairs).
Similar to FFO, the Company computes NOI based on its pro rata share of both consolidated and unconsolidated properties. The Company's definition of NOI may be different than that used by other companies and, accordingly, the Company's NOI may not be comparable to that of other companies.
Since NOI includes only those revenues and expenses related to the operations of its shopping center and other properties, the Company believes that same-center NOI provides a measure that reflects trends in occupancy rates, rental rates and operating costs and the impact of those trends on the Company's results of operations. The Company’s calculation of same-center NOI also excludes lease termination income, straight-line rent adjustments, and amortization of above and below market lease intangibles in order to enhance the comparability of results from one period to another, as these items can be impacted by one-time events that may distort same-center NOI trends and may result in same-center NOI that is not indicative of the ongoing operations of the Company’s shopping center and other properties. A reconciliation of same-center NOI to net income is located at the end of this earnings release.
Pro Rata Share of Debt
The Company presents debt based on its pro rata ownership share (including the Company's pro rata share of unconsolidated affiliates and excluding noncontrolling interests' share of consolidated properties) because it believes this provides investors a clearer understanding of the Company's total debt obligations which affect the Company's liquidity. A reconciliation of the Company's pro rata share of debt to the amount of debt on the Company's consolidated balance sheet is located at the end of this earnings release.
Information included herein contains "forward-looking statements" within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K, and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" included therein, for a discussion of such risks and uncertainties.

    



















    

 
5

CBL & Associates Properties, Inc.
Supplemental Financial and Operating Information
For the Three Months Ended March 31, 2015
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
 
Three Months Ended
March 31,
 
2015
 
2014
REVENUES:
 
 
 
Minimum rents
$
169,081

 
$
169,277

Percentage rents
4,137

 
3,606

Other rents
5,171

 
5,282

Tenant reimbursements
72,133

 
72,218

Management, development and leasing fees
2,778

 
3,135

Other
7,609

 
7,725

Total revenues
260,909

 
261,243

OPERATING EXPENSES:
 
 
 
Property operating
38,904

 
40,011

Depreciation and amortization
76,266

 
69,083

Real estate taxes
22,785

 
21,347

Maintenance and repairs
14,216

 
16,165

General and administrative
17,230

 
14,773

Loss on impairment
—

 
17,150

Other
6,476

 
6,545

Total operating expenses
175,877

 
185,074

Income from operations
85,032

 
76,169

Interest and other income
5,274

 
1,528

Interest expense
(59,157
)
 
(60,506
)
Gain on extinguishment of debt
—

 
42,660

Gain on investment
16,560

 
—

Equity in earnings of unconsolidated affiliates
3,823

 
3,684

Income tax (provision) benefit
916

 
(397
)
Income from continuing operations before gain on sales of real estate assets
52,448

 
63,138

Gain on sales of real estate assets
757

 
1,154

Income from continuing operations
53,205

 
64,292

Operating loss of discontinued operations
—

 
(499
)
Loss on discontinued operations
—

 
(17
)
Net income
53,205

 
63,776

Net income attributable to noncontrolling interests in:
 
 
 
Operating Partnership
(6,172
)
 
(7,651
)
Other consolidated subsidiaries
(869
)
 
(831
)
Net income attributable to the Company
46,164

 
55,294

Preferred dividends
(11,223
)
 
(11,223
)
Net income attributable to common shareholders
$
34,941

 
$
44,071

Basic per share data attributable to common shareholders:
 
 
 
Income from continuing operations, net of preferred dividends
$
0.21

 
$
0.26

Discontinued operations
0.00

 
0.00

Net income attributable to common shareholders
$
0.21

 
$
0.26

Weighted-average common shares outstanding
170,420

 
170,196

 
 
 
 
Diluted per share data attributable to common shareholders:
 
 
 
Income from continuing operations, net of preferred dividends
$
0.20

 
$
0.26

Discontinued operations
0.00

 
0.00

Net income attributable to common shareholders
$
0.20

 
$
0.26

Weighted-average common and potential dilutive common shares outstanding
170,510

 
170,196

 
 
 
 
Amounts attributable to common shareholders:
 
 
 
Income from continuing operations, net of preferred dividends
$
34,941

 
$
44,511

Discontinued operations
—

 
(440
)
Net income attributable to common shareholders
$
34,941

 
$
44,071


6

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2015

The Company's calculation of FFO allocable to Company shareholders is as follows:
(in thousands, except per share data)
 
Three Months Ended
March 31,
 
2015
 
2014
Net income attributable to common shareholders
$
34,941

 
$
44,071

Noncontrolling interest in income of Operating Partnership
6,172

 
7,651

Depreciation and amortization expense of:

 
 
 Consolidated properties
76,266

 
69,083

 Unconsolidated affiliates
10,317

 
9,861

 Non-real estate assets
(842
)
 
(594
)
Noncontrolling interests' share of depreciation and amortization
(2,631
)
 
(1,533
)
Loss on impairment
—

 
17,831

Gain on depreciable property
(67
)
 
18

Funds from operations of the Operating Partnership
124,156

 
146,388

Litigation settlement, net of related expenses
(4,658
)
 
(800
)
Gain on investment
(16,560
)
 
—

Gain on extinguishment of debt
—

 
(42,660
)
Funds from operations of the Operating Partnership, as adjusted
$
102,938

 
$
102,928

 
 
 
 
Funds from operations per diluted share
$
0.62

 
$
0.73

 
 
 
 
Funds from operations, as adjusted, per diluted share
$
0.52

 
$
0.52

 
 
 
 
 Weighted average common and potential dilutive common shares
       outstanding with Operating Partnership units fully converted
199,771

 
199,741

 
 
 
 
Reconciliation of FFO of the Operating Partnership
       to FFO allocable to common shareholders:
 
 
 
Funds from operations of the Operating Partnership
$
124,156

 
$
146,388

Percentage allocable to common shareholders (1)
85.35
%
 
85.21
%
Funds from operations allocable to common shareholders
$
105,967

 
$
124,737

 
 
 
 
Funds from operations of the Operating Partnership, as adjusted
$
102,938

 
$
102,928

Percentage allocable to common shareholders (1)
85.35
%
 
85.21
%
Funds from operations allocable to common shareholders, as adjusted
$
87,858

 
$
87,705

 
 
 
 
(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 11.
 
 
 
 

7

 
Three Months Ended
March 31,
 
2015
 
2014
SUPPLEMENTAL FFO INFORMATION:
 
 
 
Lease termination fees
$
1,306

 
$
932

    Lease termination fees per share
$
0.01

 
$
—

 
 
 
 
Straight-line rental income
$
684

 
$
482

    Straight-line rental income per share
$
—

 
$
—

 
 
 
 
Gains on outparcel sales
$
1,107

 
$
1,145

    Gains on outparcel sales per share
$
0.01

 
$
0.01

 
 
 
 
Net amortization of acquired above- and below-market leases
$
646

 
$
217

Net amortization of acquired above- and below-market leases per share
$
—

 
$
—

 
 
 
 
Net amortization of debt premiums and discounts
$
583

 
$
541

    Net amortization of debt premiums and discounts per share
$
—

 
$
—

 
 
 
 
 Income tax (provision) benefit
$
916

 
$
(397
)
    Income tax (provision) benefit per share
$
—

 
$
—

 
 
 
 
 Gain on extinguishment of debt
$
—


$
42,660

    Gain on extinguishment of debt per share
$
—

 
$
0.21

 
 
 
 
 Gain on investment
$
16,560

 
$
—

     Gain on investment per share
$
0.08

 
$
—

 
 
 
 
Interest capitalized
$
1,208

 
$
1,409

     Interest capitalized per share
$
0.01

 
$
0.01

 
 
 
 
Litigation settlement, net of related expenses
$
4,658

 
$
800

     Litigation settlement, net of related expenses, per share
$
0.02

 
$
—


 
As of March 31,
 
2015
 
2014
Straight-line rent receivable
$
64,340

 
$
62,971



8

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2015

Same-center Net Operating Income
(Dollars in thousands)
 
Three Months Ended
March 31,
 
2015
 
2014
Net income attributable to the Company
$
46,164

 
$
55,294

Adjustments:
 
 
 
Depreciation and amortization
76,266

 
69,083

Depreciation and amortization from unconsolidated affiliates
10,317

 
9,861

Noncontrolling interests' share of depreciation and amortization in
     other consolidated subsidiaries
(2,631
)
 
(1,533
)
Interest expense
59,157

 
60,506

Interest expense from unconsolidated affiliates
9,685

 
9,491

Noncontrolling interests' share of interest expense in
     other consolidated subsidiaries
(1,695
)
 
(1,311
)
Abandoned projects expense
125

 
1

Gain on sales of real estate assets
(757
)
 
(1,154
)
Gain on sales of real estate assets of unconsolidated affiliates
(563
)
 
—

Gain on investment
(16,560
)
 
—

Gain on extinguishment of debt
—

 
(42,660
)
Loss on impairment
—

 
17,150

Loss on impairment from discontinued operations
—

 
681

Income tax provision (benefit)
(916
)
 
397

Lease termination fees
(1,306
)
 
(932
)
Straight-line rent and above- and below-market lease amortization
(1,330
)
 
(698
)
Net income attributable to noncontrolling interest in
earnings of Operating Partnership
6,172

 
7,651

Loss on discontinued operations
—

 
17

General and administrative expenses
17,230

 
14,773

Management fees and non-property level revenues
(11,458
)
 
(7,706
)
Company's share of property NOI
187,900

 
188,911

Non-comparable NOI
(11,280
)
 
(13,301
)
Total same-center NOI (1)
$
176,620

 
$
175,610

Total same-center NOI percentage change
0.6
 %
 
 
 


 


Malls
$
160,642

 
$
160,712

Associated centers
8,263

 
7,855

Community centers
5,544

 
5,115

Offices and other
2,171

 
1,928

Total same-center NOI (1)
$
176,620

 
$
175,610

 
 
 
 
Percentage Change:
 
 
 
Malls
0.0
 %
 
 
Associated centers
5.2
 %
 
 
Community centers
8.4
 %
 
 
Offices and other
12.6
 %
 
 
Total same-center NOI (1)
0.6
 %
 
 
 
 
 
 
(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 March 31, 2015, and we owned it and it was in operation for both the entire preceding calendar year and the current year-to-date reporting period ending March 31, 2015. 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 being considered for repositioning and properties where we intend to renegotiate the terms of the debt secured by the related property.

9

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2015 and 2014

Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
 
 
As of March 31, 2015
 
 
Fixed Rate
 
Variable Rate
 
Total
Consolidated debt
 
$
3,984,876

 
$
684,835

 
$
4,669,711

Noncontrolling interests' share of consolidated debt
 
(114,519
)
 
(7,058
)
 
(121,577
)
Company's share of unconsolidated affiliates' debt
 
669,691

 
98,940

 
768,631

Company's share of consolidated and unconsolidated debt
 
$
4,540,048

 
$
776,717

 
$
5,316,765

Weighted average interest rate
 
5.45
%
 
1.75
%
 
4.91
%
 
 
 
 
 
 
 
 
 
As of March 31, 2014
 
 
Fixed Rate
 
Variable Rate
 
Total
Consolidated debt
 
$
3,887,298

 
$
912,519

 
$
4,799,817

Noncontrolling interests' share of consolidated debt
 
(86,931
)
 
(5,653
)
 
(92,584
)
Company's share of unconsolidated affiliates' debt
 
651,550

 
103,096

 
754,646

Company's share of consolidated and unconsolidated debt
 
$
4,451,917

 
$
1,009,962

 
$
5,461,879

Weighted average interest rate
 
5.47
%
 
1.72
%
 
4.78
%


Debt-To-Total-Market Capitalization Ratio as of March 31, 2015
(In thousands, except stock price)
 
 
Shares
Outstanding
 
Stock
Price (1)
 
Value
Common stock and operating partnership units
 
199,750

 
$
19.80

 
$
3,955,050

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
 
 
 
 
 
4,581,300

Company's share of total debt
 
 
 
 
 
5,316,765

Total market capitalization
 
 
 
 
 
$
9,898,065

Debt-to-total-market capitalization ratio
 
 
 
 
 
53.7
%
 
 
 
 
 
 
 
(1) Stock price for common stock and operating partnership units equals the closing price of the common stock on March 31, 2015. The stock prices for the preferred stocks represent the liquidation preference of each respective series.




10

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2015 and 2014



Reconciliation of Shares and Operating Partnership Units Outstanding
(In thousands)
 
 
Three Months Ended
March 31,
2015:
 
Basic
 
Diluted
Weighted average shares - EPS
 
170,420

 
170,510

Weighted average Operating Partnership units
 
29,261

 
29,261

Weighted average shares- FFO
 
199,681

 
199,771

 
 
 
 
 
2014:
 
 
 
 
Weighted average shares - EPS
 
170,196

 
170,196

Weighted average Operating Partnership units
 
29,545

 
29,545

Weighted average shares- FFO
 
199,741

 
199,741



Dividend Payout Ratio
 
 
Three Months Ended
March 31,
 
 
2015
 
2014
Weighted average cash dividend per share
 
$
0.27279

 
$
0.25312

FFO as adjusted, per diluted fully converted share
 
$
0.52

 
$
0.52

Dividend payout ratio
 
52.5
%
 
48.7
%

11

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2015
Consolidated Balance Sheets
(Unaudited; in thousands, except share data)
 
 As of
 
March 31,
2015
 
December 31,
2014
 ASSETS
 
 
 
Real estate assets:
 
 
 
Land
$
849,076

 
$
847,829

Buildings and improvements
7,228,732

 
7,221,387

 
8,077,808

 
8,069,216

Accumulated depreciation
(2,284,224
)
 
(2,240,007
)
 
5,793,584

 
5,829,209

Developments in progress
105,120

 
117,966

Net investment in real estate assets
5,898,704

 
5,947,175

Cash and cash equivalents
37,978

 
37,938

Receivables:
 
 
 
Tenant, net of allowance for doubtful accounts of $1,829
     and $2,368 in 2015 and 2014, respectively
81,052

 
81,338

Other, net of allowance for doubtful accounts of $1,239
     and $1,285 in 2015 and 2014, respectively
21,440

 
22,577

Mortgage and other notes receivable
19,609

 
19,811

Investments in unconsolidated affiliates
280,971

 
281,449

Intangible lease assets and other assets
203,846

 
226,011

 
$
6,543,600

 
$
6,616,299

 
 
 
 
 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
 
 
Mortgage and other indebtedness
$
4,669,711

 
$
4,700,460

Accounts payable and accrued liabilities
314,979

 
328,352

Total liabilities
4,984,690

 
5,028,812

Commitments and contingencies
 
 
 
 Redeemable noncontrolling partnership interests  
37,468

 
37,559

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, 170,492,985 and 170,260,273 issued and
     outstanding in 2015 and 2014, respectively
1,705

 
1,703

Additional paid-in capital
1,958,570

 
1,958,198

Accumulated other comprehensive income
607

 
13,411

Dividends in excess of cumulative earnings
(577,024
)
 
(566,785
)
Total shareholders' equity
1,383,883

 
1,406,552

Noncontrolling interests
137,559

 
143,376

Total equity
1,521,442

 
1,549,928

 
$
6,543,600

 
$
6,616,299


12

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2015

Condensed Combined Financial Statements - Unconsolidated Affiliates
(Unaudited; in thousands)
 
 As of
 
March 31,
2015
 
December 31,
2014
ASSETS:
 
 
 
Investment in real estate assets
$
2,263,221

 
$
2,266,252

Accumulated depreciation
(634,178
)
 
(619,558
)
 
1,629,043

 
1,646,694

Developments in progress
88,990

 
75,877

Net investment in real estate assets
1,718,033

 
1,722,571

Other assets
169,304

 
170,554

Total assets
$
1,887,337

 
$
1,893,125

 
 
 
 
LIABILITIES:
 
 
 
Mortgage and other indebtedness
$
1,514,503

 
$
1,512,826

Other liabilities
38,888

 
42,517

Total liabilities
1,553,391

 
1,555,343

 
 
 
 
OWNERS' EQUITY:
 
 
 
The Company
195,783

 
198,261

Other investors
138,163

 
139,521

Total owners' equity
333,946

 
337,782

Total liabilities and owners’ equity
$
1,887,337

 
$
1,893,125


 
Three Months Ended
March 31,
 
2015
 
2014
 Total revenues
$
62,472

 
$
61,821

 Depreciation and amortization
(19,481
)
 
(18,787
)
 Operating expenses
(19,306
)
 
(18,181
)
 Income from operations
23,685

 
24,853

 Interest income
332

 
340

 Interest expense
(18,794
)
 
(18,558
)
 Gain on sales of real estate assets
815

 
—

 Net income
$
6,038

 
$
6,635


 
Company's Share for the
Three Months Ended March 31,
 
2015
 
2014
 Total revenues
$
32,835

 
$
31,952

 Depreciation and amortization
(10,317
)
 
(9,861
)
 Operating expenses
(9,828
)
 
(9,175
)
 Income from operations
12,690

 
12,916

 Interest income
255

 
259

 Interest expense
(9,685
)
 
(9,491
)
 Gain on sales of real estate assets
563

 
—

 Net income
$
3,823

 
$
3,684



13

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2015


The Company presents the ratio of earnings before interest, taxes, depreciation and amortization (EBITDA) to interest because the Company believes that the EBITDA to interest coverage ratio, along with cash flows from operating activities, investing activities and financing activities, provides investors an additional indicator of the Company's ability to incur and service debt.

Ratio of EBITDA to Interest Expense
(Dollars in thousands)

 
Three Months Ended
March 31,
 
2015
 
2014
EBITDA:
 
 
 
Net income attributable to the Company
$
46,164

 
$
55,294

 
 
 
 
Adjustments:
 
 
 
Depreciation and amortization
76,266

 
69,083

Depreciation and amortization from unconsolidated affiliates
10,317

 
9,861

Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries
(2,631
)
 
(1,533
)
Interest expense
59,157

 
60,506

Interest expense from unconsolidated affiliates
9,685

 
9,491

Noncontrolling interests' share of interest expense in other consolidated subsidiaries
(1,695
)
 
(1,311
)
Income and other taxes
(717
)
 
1,051

Gain on investment
(16,560
)
 
—

Gain on extinguishment of debt
—

 
(42,660
)
Loss on impairment
—

 
17,150

Loss on impairment from discontinued operations
—

 
681

Abandoned projects
125

 
1

Net income attributable to noncontrolling interest in earnings of Operating Partnership
6,172

 
7,651

(Gain) loss on depreciable property
(67
)
 
18

Gain on discontinued operations
—

 
(1
)
Company's share of total EBITDA
$
186,216

 
$
185,282

 
 
 
 
Interest Expense:
 
 
 
Interest expense
$
59,157

 
$
60,506

Interest expense from unconsolidated affiliates
9,685

 
9,491

Noncontrolling interests' share of interest expense in other consolidated subsidiaries
(1,695
)
 
(1,311
)
Company's share of total interest expense
$
67,147

 
$
68,686

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of EBITDA to Interest Expense
2.77

 
2.70


14

Reconciliation of EBITDA to Cash Flows Provided By Operating Activities
(In thousands)
 
Three Months Ended
March 31,
 
2015
 
2014
Company's share of total EBITDA
$
186,216

 
$
185,282

Interest expense
(59,157
)
 
(60,506
)
Noncontrolling interests' share of interest expense in other consolidated subsidiaries
1,695

 
1,311

Income and other taxes
717

 
(1,051
)
Net amortization of deferred financing costs and debt premiums and discounts
1,577

 
2,234

Net amortization of intangible lease assets and liabilities
(175
)
 
129

Depreciation and interest expense from unconsolidated affiliates
(20,002
)
 
(19,352
)
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries
2,631

 
1,533

Noncontrolling interests in earnings of other consolidated subsidiaries
869

 
831

Gains on outparcel sales
(690
)
 
(1,154
)
Equity in earnings of unconsolidated affiliates
(3,823
)
 
(3,684
)
Distributions of earnings from unconsolidated affiliates
4,538

 
3,035

Share-based compensation expense
2,488

 
1,974

Provision for doubtful accounts
1,372

 
1,206

Change in deferred tax assets
507

 
449

Changes in operating assets and liabilities
(13,029
)
 
(25,291
)
Cash flows provided by operating activities
$
105,734

 
$
86,946




15

Supplemental Financial And Operating Information
As of March 31, 2015



Schedule of Mortgage and Other Indebtedness
(Dollars in thousands )

Property
Location
Original
Maturity
Date
Optional
Extended
Maturity
Date
Interest
Rate
Balance
 
Balance
 
Fixed
 
Variable
 
 
 
 
 
 
 
 
 
 
 
Operating Properties:
 
 
 
 
 
 
 
Imperial Valley Mall
El Centro, CA
Sep-15

4.99%
$
49,602

 
$
49,602

 
$
—

CherryVale Mall
Rockford, IL
Oct-15

5.00%
77,742

 
77,742

 
—

Brookfield Square
Brookfield, IL
Nov-15

5.08%
87,222

 
87,222

 
—

East Towne Mall
Madison, WI
Nov-15

5.00%
66,317

 
66,317

 
—

West Towne Mall
Madison, WI
Nov-15

5.00%
93,672

 
93,672

 
—

Eastland Mall
Bloomington, IL
Dec-15

5.85%
59,400

 
59,400

 
—

Hickory Point Mall
Decatur, IL
Dec-15

5.85%
28,165

 
28,165

 
—

The Outlet Shoppes at Gettysburg
Gettysburg, PA
Feb-16

5.87%
38,449

 
38,449

 
—

CoolSprings Crossing
Nashville, TN
Apr-16

4.54%
11,822

(1)
11,822

 
—

Gunbarrel Pointe
Chattanooga, TN
Apr-16

4.64%
10,532

(2)
10,532

 
—

Stroud Mall
Stroud, PA
Apr-16

4.59%
31,631

(3)
31,631

 
—

York Galleria
York, PA
Apr-16

4.55%
50,508

(4)
50,508

 
—

Statesboro Crossing
Statesboro, GA
Jun-16
Jun-18
1.98%
11,181

 
—

 
11,181

Greenbrier Mall
Chesapeake, VA
Aug-16

5.91%
73,482

 
73,482

 
—

Hamilton Place
Chattanooga, TN
Aug-16

5.86%
101,037

 
101,037

 
—

Midland Mall
Midland, MI
Aug-16

6.10%
32,993

 
32,993

 
—

Chesterfield Mall
St. Louis, MO
Sep-16

5.74%
140,000

 
140,000

 
—

Dakota Square Mall
Minot, ND
Nov-16

6.23%
56,450

 
56,450

 
—

Southaven Towne Center
Southaven, MS
Jan-17

5.50%
39,789

 
39,789

 
—

Cary Towne Center
Cary, NC
Mar-17

8.50%
50,610

 
50,610

 
—

Acadiana Mall
Lafayette, LA
Apr-17

5.67%
131,326

 
131,326

 
—

Hamilton Corner
Chattanooga, TN
Apr-17

5.67%
14,881

 
14,881

 
—

Layton Hills Mall
Layton, UT
Apr-17

5.66%
93,853

 
93,853

 
—

The Plaza at Fayette Mall
Lexington, KY
Apr-17

5.67%
38,769

 
38,769

 
—

The Shoppes at St. Clair Square
Fairview Heights, IL
Apr-17

5.67%
19,649

 
19,649

 
—

EastGate Crossing
Cincinnati, OH
May-17

5.66%
14,625

 
14,625

 
—

The Outlet Shoppes at El Paso
El Paso, TX
Dec-17

7.06%
64,229

 
64,229

 
—

Kirkwood Mall
Bismarck, ND
Apr-18

5.75%
39,084

 
39,084

 
—

The Outlet Shoppes at El Paso Phase II
El Paso, TX
Apr-18

2.93%
6,385

 
—

 
6,385

Hanes Mall
Winston-Salem, NC
Oct-18

6.99%
150,959

 
150,959

 
—

Oklahoma City Phase III
Oklahoma City, OK
Apr-19
Apr-21
2.93%
2,894

 
—

 
2,894

The Outlet Shoppes at Oklahoma City Phase II
Oklahoma City, OK
Apr-19
Apr-21
2.92%
5,870

 
—

 
5,870

Honey Creek Mall
Terre Haute, IN
Jul-19

8.00%
28,713

 
28,713

 
—

Volusia Mall
Daytona Beach, FL
Jul-19

8.00%
49,392

 
49,392

 
—

The Terrace
Chattanooga, TN
Jun-20

7.25%
13,609

 
13,609

 
—

Burnsville Center
Burnsville, MN
Jul-20

6.00%
75,282

 
75,282

 
—

Parkway Place
Huntsville, AL
Jul-20

6.50%
38,342

 
38,342

 
—

Valley View Mall
Roanoke, VA
Jul-20

6.50%
59,339

 
59,339

 
—

Parkdale Mall & Crossing
Beaumont, TX
Mar-21

5.85%
87,434

 
87,434

 
—

EastGate Mall
Cincinnati, OH
Apr-21

5.83%
39,528

 
39,528

 
—

Hamilton Crossing & Expansion
Chattanooga, TN
Apr-21

5.99%
9,795

 
9,795

 
—

Park Plaza Mall
Little Rock, AR
Apr-21

5.28%
91,058

 
91,058

 
—

Wausau Center
Wausau, WI
Apr-21

5.85%
18,260

 
18,260

 
—

Fayette Mall
Lexington, KY
May-21

5.42%
170,125

 
170,125

 
—

Alamance Crossing - East
Burlington, NC
Jul-21

5.83%
48,472

 
48,472

 
—


16

Property
Location
Original
Maturity
Date
Optional
Extended
Maturity
Date
Interest
Rate
Balance
 
Balance
 
Fixed
 
Variable
 
 
 
 
 
 
 
 
 
 
 
Asheville Mall
Asheville, NC
Sep-21

5.80%
72,841

 
72,841

 
—

Cross Creek Mall
Fayetteville, NC
Jan-22

4.54%
129,735

 
129,735

 
—

The Outlet Shoppes at Oklahoma City
Oklahoma City, OK
Jan-22

5.73%
56,250

 
56,250

 
—

Northwoods Mall
North Charleston, SC
Apr-22

5.08%
69,898

 
69,898

 
—

Arbor Place
Douglasville, GA
May-22

5.10%
117,006

 
117,006

 
—

CBL Center
Chattanooga, TN
Jun-22

5.00%
20,380

 
20,380

 
—

Fashion Square
Saginaw, MI
Jun-22

4.95%
39,494

 
39,494

 
—

Jefferson Mall
Louisville, KY
Jun-22

4.75%
68,168

 
68,168

 
—

Southpark Mall
Colonial Heights, VA
Jun-22

4.85%
64,206

 
64,206

 
—

WestGate Mall
Spartanburg, SC
Jul-22

4.99%
37,703

 
37,703

 
—

The Outlet Shoppes at Atlanta
Woodstock, GA
Nov-23

4.90%
78,384

 
78,384

 
—

The Outlet Shoppes of the Bluegrass
Simpsonville, KY
Dec-24

4.05%
77,167

 
77,167

 
—

 
 
SUBTOTAL
 
 
 
3,253,709

 
3,227,379

 
26,330

Weighted-average interest rate
 
 
 
 
5.59
%
 
5.62
%
 
2.52
%
 
 
 
 
 
 
 
 
 
 
Debt Premiums (Discounts): (5)
 
 
 
 
 
 
 
 
 
Imperial Valley Mall
El Centro, CA
Sep-15
 
3.75%
307

 
307

 
—

Chesterfield Mall
St. Louis, MO
Sep-16
 
5.96%
(423
)
 
(423
)
 
—

Dakota Square Mall
Minot, ND
Nov-16
 
5.03%
1,186

 
1,186

 
—

The Outlet Shoppes at El Paso
El Paso, TX
Dec-17
 
4.75%
3,787

 
3,787

 
—

Kirkwood Mall
Bismarck, ND
Apr-18
 
4.25%
1,793

 
1,793

 
—

 
 
SUBTOTAL
 
 
 
6,650

 
6,650

 
—

Weighted-average interest rate
 
 
 
 
4.54
%
 
4.54
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Loans On Operating Properties And Debt Premiums (Discounts)
 
 
3,260,359

 
3,234,029

 
26,330

Weighted-average interest rate
 
 
 
 
5.59
%
 
5.62
%
 
2.52
%
 
 
 
 
 
 
 
 
 
 
 
Construction Loan:
 
 
 
 
 
 
 
 
 
The Outlet Shoppes at Atlanta - Parcel Development
Woodstock, GA
Dec-19

2.68%
1,440

 
—

 
1,440

 
 
 
 
 
 
 
 
 
 
 
Operating Partnership Debt:
 
 
 
 
 
 
 
 
 
Unsecured credit facilities:
 
 
 
 
 
 
 
 
 
   $600,000 capacity
 
Nov-15
Nov-16
1.57%
42,598

 
—

 
42,598

   $100,000 capacity
 
Feb-16

1.57%
9,200

 
—

 
9,200

   $600,000 capacity
 
Nov-16
Nov-17
1.57%
155,267

 
—

 
155,267

 
 
SUBTOTAL
 
 

207,065

 
—

 
207,065

 
 
 
 
 
 
 
 
 
 
Unsecured term loans:
 
 
 
 
 
 
 
 
 
   $50,000 Term Loan
 
Feb-18
 
1.72%
50,000

 
—

 
50,000

   $400,000 Term Loan
 
Jul-18
 
1.68%
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%
(4,137
)
 
(4,137
)
 
—

   Senior unsecured 4.60% notes
 
Oct-24
 
4.6%
300,000

 
300,000

 
—

   Senior unsecured 4.60% notes (discount)
 
Oct-24
 
4.6%
(72
)
 
(72
)
 
—

 
 
SUBTOTAL
 
 
 
745,791

 
745,791

 
—

 
 
 
 
 
 
 
 
 
 
 
Other:
 
 
 
 
 
 
 
 
Other subsidiary term loan
May-17
 
3.50%
5,056

 
5,056

 
—

 
 
 
 
 
 
 
 
 
 
Total Consolidated Debt
 
 
 
 
$
4,669,711

 
$
3,984,876

 
$
684,835

Weighted-average interest rate
 
 
 
 
4.94
%
 
5.50
%
 
1.68
%

17

Property
Location
Original
Maturity
Date
Optional
Extended
Maturity
Date
Interest
Rate
Balance
 
Balance
 
Fixed
 
Variable
 
 
 
 
 
 
 
 
 
 
 
Plus CBL's Share Of Unconsolidated Affiliates' Debt:
 
 
 
 
 
 
 
 
Gulf Coast Town Center Phase III
Ft. Myers, FL
Jul-15

2.75%
$
5,548

 
$
—

 
$
5,548

Hammock Landing Phase I
West Melbourne, FL
Nov-15
Nov-17
2.17%
20,026

 
—

 
20,026

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%
30,263

 
—

 
30,263

Oak Park Mall
Overland Park, KS
Dec-15

5.85%
137,850

 
137,850

 
—

Triangle Town Center
Raleigh, NC
Dec-15

5.74%
87,031

 
87,031

 
—

Renaissance Center Phase I
Durham, NC
Jul-16

5.61%
16,119

 
16,119

 
—

Fremaux Town Center Phase I
Slidell, LA
Aug-16
Aug-18
2.18%
26,387

 
—

 
26,387

Fremaux Town Center Phase II
Slidell, LA
Aug-16
Aug-18
2.18%
4,849

 
—

 
4,849

Governor's Square Mall
Clarksville, TN
Sep-16

8.23%
8,157

 
8,157

 
—

Kentucky Oaks Mall
Paducah, KY
Jan-17

5.27%
10,778

 
10,778

 
—

The Shops at Friendly Center
Greensboro, NC
Jan-17

5.9%
19,634

 
19,634

 
—

High Pointe Commons
Harrisburg, PA
May-17

5.74%
6,509

 
6,509

 
—

Gulf Coast Town Center Phase I
Ft. Myers, FL
Jul-17

5.6%
95,400

 
95,400

 
—

High Pointe Commons Phase II
Harrisburg, PA
Jul-17

6.1%
2,598

 
2,598

 
—

Ambassador Town Center
Lafayette, LA
Dec-17
Dec-19
1.97%
1,455

 
—

 
1,455

Ambassador Town Center Infrastructure Improvements
Lafayette, LA
Dec-17
Dec-19
2.17%
1,002

 
—

 
1,002

CoolSprings Galleria
Nashville, TN
Jun-18

6.98%
52,488

 
52,488

 
—

York Town Center
York, PA
Feb-22

4.9%
17,759

 
17,759

 
—

York Town Center - Pier 1
York, PA
Feb-22

2.93%
710

 
—

 
710

West County Center
St. Louis, MO
Dec-22

3.4%
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 Outparcel - Myrtle Beach
Myrtle Beach, SC
Aug-24

4.09%
2,871

 
2,871

 
—

Coastal Grand-Myrtle Beach
Myrtle Beach, SC
Aug-24

4.09%
59,497

 
59,497

 
—

 
 
SUBTOTAL
 
 
 
768,631

 
669,691

 
98,940

 
 
 
 
 
 
 
 
 
 
 
Less Noncontrolling Interests' Share Of Consolidated Debt:
Noncontrolling
Interest %
 
 
 
 
 
 
The Outlet Shoppes at Gettysburg
Gettysburg, PA
50%
5.87%
(19,225
)
 
(19,225
)
 
—

Statesboro Crossing
Statesboro, GA
50%
1.98%
(5,590
)
 
—

 
(5,590
)
Hamilton Place
Chattanooga, TN
10%
5.86%
(10,104
)
 
(10,104
)
 
—

Hamilton Corner
Chattanooga, TN
10%
5.67%
(1,488
)
 
(1,488
)
 
—

Other subsidiary term loan
Chattanooga, TN
50%
3.5%
(2,528
)
 
(2,528
)
 
—

The Outlet Shoppes at El Paso
El Paso, TX
25%
7.06%
(16,057
)
 
(16,057
)
 
—

The Outlet Shoppes at Oklahoma City Phase II
Oklahoma City, OK
25%
2.92%
(1,468
)
 
—

 
(1,468
)
The Terrace
Chattanooga, TN
80%
7.25%
(1,089
)
 
(1,089
)
 
—

Hamilton Crossing & Expansion
Chattanooga, TN
8%
5.99%
(784
)
 
(784
)
 
—

The Outlet Shoppes at Oklahoma City
Oklahoma City, OK
25%
5.73%
(14,063
)
 
(14,063
)
 
—

CBL Center
Chattanooga, TN
8%
5%
(1,630
)
 
(1,630
)
 
—

The Outlet Shoppes at Atlanta
Woodstock, GA
25%
4.9%
(19,596
)
 
(19,596
)
 
—

The Outlet Shoppes of the Bluegrass
Simpsonville, KY
35%
4.05%
(27,008
)
 
(27,008
)
 
—

 
 
SUBTOTAL
 
 
 
(120,630
)
 
(113,572
)
 
(7,058
)
 
 
 
 
 
 
 
 
 
 
 
Less Noncontrolling Interests' Share Of Debt Premiums: (5)
 
 
 
 
 
 
 
The Outlet Shoppes at El Paso
El Paso, TX
25%
7.06%
(947
)
 
(947
)
 
—

 
 
 
 
 
 
 
 
 
 
 
Company's Share Of Consolidated And Unconsolidated Debt
 
 
$
5,316,765

 
$
4,540,048

 
$
776,717

Weighted-average interest rate
 
 
 
 
4.91
%
 
5.45
%
 
1.75
%

18

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%
$
5,548

 
$
—

 
$
5,548

Hammock Landing Phase I
West Melbourne, FL
Nov-15

2.17%
40,051

 
—

 
40,051

Hammock Landing Phase II
West Melbourne, FL
Nov-15

2.42%
15,556

 
—

 
15,556

The Pavilion at Port Orange
Port Orange, FL
Nov-15

2.17%
60,526

 
—

 
60,526

Oak Park Mall
Overland Park, KS
Dec-15

5.85%
275,700

 
275,700

 
—

Triangle Town Center
Raleigh, NC
Dec-15

5.74%
174,063

 
174,063

 
—

Renaissance Center Phase I
Durham, NC
Jul-16

5.61%
32,238

 
32,238

 
—

Fremaux Town Center
Slidell, LA
Aug-16

2.18%
40,596

 
—

 
40,596

Fremaux Town Center Phase II
Slidell, LA
Aug-16

2.18%
7,460

 
—

 
7,460

Governor's Square Mall
Clarksville, TN
Sep-16

8.23%
17,172

 
17,172

 
—

Kentucky Oaks Mall
Paducah, KY
Jan-17

5.27%
21,555

 
21,555

 
—

The Shops at Friendly Center
Greensboro, NC
Jan-17

5.90%
39,269

 
39,269

 
—

High Pointe Commons
Harrisburg, PA
May-17

5.74%
13,019

 
13,019

 
—

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%
5,196

 
5,196

 
—

Ambassador Town Center
Lafayette, LA
Dec-17

1.97%
1,455

 
—

 
1,455

Ambassador Town Center Infrastructure Improvements
Lafayette, LA
Dec-17

2.17%
1,002

 
—

 
1,002

CoolSprings Galleria
Nashville, TN
Jun-18

6.98%
104,975

 
104,975

 
—

York Town Center
York, PA
Feb-22

4.90%
35,518

 
35,518

 
—

York Town Center - Pier 1
York, PA
Feb-22

2.93%
1,421

 
—

 
1,421

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 Outparcel - Myrtle Beach
Myrtle Beach, SC
Aug-24

4.09%
5,742

 
5,742

 
—

Coastal Grand-Myrtle Beach
Myrtle Beach, SC
Aug-24

4.09%
118,994

 
118,994

 
—

 
 
 
 
 
$
1,513,856

 
$
1,340,241

 
$
173,615

Weighted-average interest rate
 
 
 
 
4.83
%
 
5.16
%
 
2.22
%
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
The Company has an interest rate swap on a notional amount of $11,822, 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 $10,532, 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.
(3)
The Company has an interest rate swap on a notional amount of $31,630, 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 $50,508, 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.
 
 
 
 
 
 
 
 
 
 
 






19

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2015

Schedule of Maturities of Mortgage and Other Indebtedness
(Dollars in thousands)

Based on Maturity Dates As Though All Extension Options Available Have Been Exercised:
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
 
$
462,120

 
$
230,429

 
$
—

 
$
692,549

 
13.03
%
 
5.36
%
2016
 
598,702

 
24,276

 
(29,329
)
 
593,649

 
11.17
%
 
5.31
%
2017
 
628,054

 
193,908

 
(20,073
)
 
801,889

 
15.08
%
 
4.86
%
2018
 
657,609

 
83,724

 
(5,590
)
 
735,743

 
13.84
%
 
3.40
%
2019
 
79,545

 
2,457

 
—

 
82,002

 
1.54
%
 
7.76
%
2020
 
186,572

 
—

 
(1,089
)
 
185,483

 
3.49
%
 
6.35
%
2021
 
546,277

 
—

 
(2,252
)
 
544,025

 
10.23
%
 
5.57
%
2022
 
602,840

 
113,469

 
(15,693
)
 
700,616

 
13.18
%
 
4.72
%
2023
 
528,384

 
58,000

 
(19,596
)
 
566,788

 
10.66
%
 
5.03
%
2024
 
377,167

 
62,368

 
(27,008
)
 
412,527

 
7.76
%
 
4.45
%
Face Amount of Debt
 
4,667,270

 
768,631

 
(120,630
)
 
5,315,271

 
99.97
%
 
4.91
%
Net Premiums on Debt
 
2,441

 
—

 
(947
)
 
1,494

 
0.03
%
 
—
%
Total
 
$
4,669,711

 
$
768,631

 
$
(121,577
)
 
$
5,316,765

 
100.00
%
 
4.91
%

Based on Original Maturity Dates:
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
 
$
504,718

 
$
289,418

 
$
—

 
$
794,136

 
14.94
%
 
4.92
%
2016
 
722,552

 
55,512

 
(34,919
)
 
743,145

 
13.98
%
 
4.59
%
2017
 
472,787

 
137,376

 
(20,073
)
 
590,090

 
11.10
%
 
5.97
%
2018
 
646,428

 
52,488

 
—

 
698,916

 
13.15
%
 
3.47
%
2019
 
88,309

 
—

 
(1,468
)
 
86,841

 
1.63
%
 
7.52
%
2020
 
186,572

 
—

 
(1,089
)
 
185,483

 
3.49
%
 
6.35
%
2021
 
537,513

 
—

 
(784
)
 
536,729

 
10.10
%
 
5.61
%
2022
 
602,840

 
113,469

 
(15,693
)
 
700,616

 
13.18
%
 
4.72
%
2023
 
528,384

 
58,000

 
(19,596
)
 
566,788

 
10.66
%
 
5.03
%
2024
 
377,167

 
62,368

 
(27,008
)
 
412,527

 
7.76
%
 
4.45
%
Face Amount of Debt
 
4,667,270

 
768,631

 
(120,630
)
 
5,315,271

 
99.97
%
 
4.91
%
Net Premiums on Debt
 
2,441

 
—

 
(947
)
 
1,494

 
0.03
%
 
—
%
Total
 
$
4,669,711

 
$
768,631

 
$
(121,577
)
 
$
5,316,765

 
100.00
%
 
4.91
%
Unsecured Debt Covenant Compliance Ratios
 
Required
 
Actual
Debt to total asset value
 
< 60%
 
49.2%
Unencumbered asset value to unsecured indebtedness
 >1.60x
 
2.6x
Unencumbered NOI to unsecured interest expense
 >1.75x
 
4.2x
EBITDA to fixed charges (debt service)
 >1.5x
 
2.2x
Senior Unsecured Notes Compliance Ratios
 
Required
 
Actual
Total debt to total assets
 
< 60%
 
53.6%
Secured debt to total assets
< 45%
 
37.0%
Total unencumbered assets to unsecured debt
> 150%
 
238.1%
Consolidated income available for debt service to annual debt service charge
> 1.5x
 
3.2x

20

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2015
Mall Portfolio Statistics
TIER 1
Sales > $375 per square foot
Property
Location
 
Total GLA
 
Sales Per Square
Foot for the Twelve
Months Ended (1)
 
Mall Occupancy
 
% of Total
Mall NOI
Q1 2015
 
 
3/31/15
 
3/31/14
 
3/31/15
 
3/31/14
 
Acadiana Mall
Lafayette, LA
 
991,196

 
 
 
 
 
 
 
 
 
 
Asheville Mall
Asheville, NC
 
974,465

 
 
 
 
 
 
 
 
 
 
CoolSprings Galleria (2)
Nashville, TN
 
1,088,399

 
 
 
 
 
 
 
 
 
 
Cross Creek Mall
Fayetteville, NC
 
1,036,056

 
 
 
 
 
 
 
 
 
 
Dakota Square Mall
Minot, ND
 
813,810

 
 
 
 
 
 
 
 
 
 
Fayette Mall
Lexington, KY
 
1,192,077

 
 
 
 
 
 
 
 
 
 
Friendly Center and The Shops at Friendly
Greensboro, NC
 
1,137,632

 
 
 
 
 
 
 
 
 
 
Governor's Square
Clarksville, TN
 
735,555

 
 
 
 
 
 
 
 
 
 
Hamilton Place
Chattanooga, TN
 
1,157,873

 
 
 
 
 
 
 
 
 
 
Jefferson Mall
Louisville, KY
 
903,045

 
 
 
 
 
 
 
 
 
 
Kirkwood Mall
Bismarck, ND
 
849,710

 
 
 
 
 
 
 
 
 
 
Mall del Norte
Laredo, TX
 
1,168,389

 
 
 
 
 
 
 
 
 
 
Oak Park Mall
Overland Park, KS
 
1,608,683

 
 
 
 
 
 
 
 
 
 
The Outlet Shoppes at El Paso
El Paso, TX
 
433,043

 
 
 
 
 
 
 
 
 
 
St. Clair Square
Fairview Heights, IL
 
1,077,805

 
 
 
 
 
 
 
 
 
 
Sunrise Mall
Brownsville, TX
 
751,132

 
 
 
 
 
 
 
 
 
 
Volusia Mall
Daytona Beach, FL
 
1,083,776

 
 
 
 
 
 
 
 
 
 
West County Center
Des Peres, MO
 
1,204,617

 
 
 
 
 
 
 
 
 
 
West Towne Mall
Madison, WI
 
827,217

 
 
 
 
 
 
 
 
 
 
Total Tier 1 Malls
 
 
19,034,480

 
$
451

 
$
437

 
93.1
%
 
95.5
%
 
34.1
%
TIER 2
Sales of $300 to $375 per square foot
Property
Location
 
Total GLA
 
Sales Per Square
Foot for the Twelve
Months Ended (1)
 
Mall Occupancy
 
% of Total
Mall NOI
Q1 2015
 
 
03/31/15
 
03/31/14
 
3/31/15
 
3/31/14
 
Arbor Place
Atlanta (Douglasville), GA
 
1,163,326

 
 
 
 
 
 
 
 
 
 
Brookfield Square
Brookfield, WI
 
1,008,340

 
 
 
 
 
 
 
 
 
 
Burnsville Center
Burnsville, MN
 
1,043,096

 
 
 
 
 
 
 
 
 
 
CherryVale Mall
Rockford, IL
 
845,249

 
 
 
 
 
 
 
 
 
 
Coastal Grand - Myrtle Beach
Myrtle Beach, SC
 
1,038,654

 
 
 
 
 
 
 
 
 
 
East Towne Mall
Madison, WI
 
788,119

 
 
 
 
 
 
 
 
 
 
EastGate Mall
Cincinnati, OH
 
855,272

 
 
 
 
 
 
 
 
 
 
Fremaux Town Center (3)
Slidell, LA
 
274,459

 
 
 
 
 
 
 
 
 
 
Frontier Mall
Cheyenne, WY
 
525,173

 
 
 
 
 
 
 
 
 
 
Greenbrier Mall
Chesapeake, VA
 
896,832

 
 
 
 
 
 
 
 
 
 
Hanes Mall
Winston-Salem, NC
 
1,504,143

 
 
 
 
 
 
 
 
 
 
Harford Mall
Bel Air, MD
 
505,515

 
 
 
 
 
 
 
 
 
 
Honey Creek Mall
Terre Haute, IN
 
677,370

 
 
 
 
 
 
 
 
 
 
Imperial Valley Mall
El Centro, CA
 
825,826

 
 
 
 
 
 
 
 
 
 
Laurel Park Place
Livonia, MI
 
490,246

 
 
 
 
 
 
 
 
 
 
Layton Hills Mall
Layton, UT
 
636,702

 
 
 
 
 
 
 
 
 
 
Meridian Mall
Lansing, MI
 
968,228

 
 
 
 
 
 
 
 
 
 
Northpark Mall
Joplin, MO
 
955,216

 
 
 
 
 
 
 
 
 
 
Northwoods Mall
Charleston, SC
 
772,668

 
 
 
 
 
 
 
 
 
 


21

Mall Portfolio Statistics (continued)
TIER 2
Sales of $300 to $375 per square foot
Property
Location
 
Total GLA
 
Sales Per Square
Foot for the Twelve
Months Ended (1)
 
Mall Occupancy
 
% of Total
Mall NOI
Q1 2015
 
 
03/31/15
 
03/31/14
 
3/31/15
 
3/31/14
 
Old Hickory Mall
Jackson, TN
 
538,991

 
 
 
 
 
 
 
 
 
 
The Outlet Shoppes at Atlanta (3)
Woodstock, GA
 
371,376

 
 
 
 
 
 
 
 
 
 
The Outlet Shoppes at Oklahoma City 
Oklahoma City, OK
 
394,661

 
 
 
 
 
 
 
 
 
 
The Outlet Shoppes of the Bluegrass (3)
Simpsonville, KY
 
374,683

 
 
 
 
 
 
 
 
 
 
Park Plaza
Little Rock, AR
 
540,335

 
 
 
 
 
 
 
 
 
 
Parkdale Mall
Beaumont, TX
 
1,246,090

 
 
 
 
 
 
 
 
 
 
Parkway Place
Huntsville, AL
 
648,264

 
 
 
 
 
 
 
 
 
 
Pearland Town Center
Pearland, TX
 
644,913

 
 
 
 
 
 
 
 
 
 
Post Oak Mall
College Station, TX
 
774,932

 
 
 
 
 
 
 
 
 
 
Richland Mall
Waco, TX
 
685,730

 
 
 
 
 
 
 
 
 
 
South County Center
St. Louis, MO
 
1,044,260

 
 
 
 
 
 
 
 
 
 
Southpark Mall
Colonial Heights, VA
 
672,900

 
 
 
 
 
 
 
 
 
 
Turtle Creek Mall
Hattiesburg, MS
 
845,932

 
 
 
 
 
 
 
 
 
 
Valley View Mall
Roanoke, VA
 
844,393

 
 
 
 
 
 
 
 
 
 
Westmoreland Mall
Greensburg, PA
 
999,971

 
 
 
 
 
 
 
 
 
 
York Galleria
York, PA
 
764,716

 
 
 
 
 
 
 
 
 
 
Total Tier 2 Malls
 
 
27,166,581

 
$
345

 
$
336

 
89.5
%
 
92.0
%
 
45.4
%
TIER 3
Sales < $300 per square foot
Property
Location
 
Total GLA
 
Sales Per Square
Foot for the Twelve
Months Ended (1)
 
Mall Occupancy
 
% of Total
Mall NOI
Q1 2015
 
 
03/31/15
 
03/31/14
 
3/31/15
 
3/31/14
 
Alamance Crossing
Burlington, NC
 
874,585

 
 
 
 
 
 
 
 
 
 
Bonita Lakes Mall
Meridian, MS
 
631,920

 
 
 
 
 
 
 
 
 
 
Cary Towne Center
Cary, NC
 
910,190

 
 
 
 
 
 
 
 
 
 
Chesterfield Mall (2)
Chesterfield, MO
 
1,294,081

 
 
 
 
 
 
 
 
 
 
College Square
Morristown, TN
 
450,465

 
 
 
 
 
 
 
 
 
 
Eastland Mall
Bloomington, IL
 
759,895

 
 
 
 
 
 
 
 
 
 
Fashion Square
Saginaw, MI
 
745,163

 
 
 
 
 
 
 
 
 
 
Foothills Mall
Maryville, TN
 
463,591

 
 
 
 
 
 
 
 
 
 
Hickory Point Mall
Forsyth, IL
 
814,092

 
 
 
 
 
 
 
 
 
 
Janesville Mall
Janesville, WI
 
613,884

 
 
 
 
 
 
 
 
 
 
Kentucky Oaks Mall
Paducah, KY
 
1,063,005

 
 
 
 
 
 
 
 
 
 
The Lakes Mall
Muskegon, MI
 
587,963

 
 
 
 
 
 
 
 
 
 
Mid Rivers Mall
St. Peters, MO
 
1,089,323

 
 
 
 
 
 
 
 
 
 
Midland Mall
Midland, MI
 
470,974

 
 
 
 
 
 
 
 
 
 
Monroeville Mall
Pittsburgh, PA
 
1,087,836

 
 
 
 
 
 
 
 
 
 
Northgate Mall
Chattanooga, TN
 
790,305

 
 
 
 
 
 
 
 
 
 
The Outlet Shoppes at Gettysburg
Gettysburg, PA
 
249,937

 
 
 
 
 
 
 
 
 
 
Randolph Mall
Asheboro, NC
 
382,216

 
 
 
 
 
 
 
 
 
 



22

Mall Portfolio Statistics (continued)
TIER 3
Sales < $300 per square foot
Property
Location
 
Total GLA
 
Sales Per Square
Foot for the Twelve
Months Ended (1)
 
Mall Occupancy
 
% of Total
Mall NOI
Q1 2015
 
 
03/31/15
 
03/31/14
 
3/31/15
 
3/31/14
 
Regency Mall
Racine, WI
 
789,371

 
 
 
 
 
 
 
 
 
 
River Ridge Mall
Lynchburg, VA
 
766,408

 
 
 
 
 
 
 
 
 
 
Southaven Towne Center
Southaven, MS
 
567,640

 
 
 
 
 
 
 
 
 
 
Stroud Mall
Stroudsburg, PA
 
398,249

 
 
 
 
 
 
 
 
 
 
Walnut Square
Dalton, GA
 
495,970

 
 
 
 
 
 
 
 
 
 
Wausau Center (2)
Wausau, WI
 
423,774

 
 
 
 
 
 
 
 
 
 
WestGate Mall
Spartanburg, SC
 
954,228

 
 
 
 
 
 
 
 
 
 
Total Tier 3 Malls
 
 
17,675,065

 
$
273

 
$
267

 
86.1
%
 
89.3
%
 
18.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Mall Portfolio
 
 
63,876,126

 
$
365

 
$
355

 
89.8
%
 
92.3
%
 
98.1
%

Non-Core/Lender Malls
 
 
 
 
 
 
 
 
 
 
 
 
 
Property
Location
 
Total GLA
 
Sales Per Square
Foot for the Twelve
Months Ended (1)
 
Mall Occupancy
 
% of Total
Mall NOI
Q1 2015
 
 
03/31/15
 
03/31/14
 
3/31/15
 
3/31/14
 
Gulf Coast Town Center
Ft. Myers, FL
 
1,233,459

 
 
 
 
 
 
 
 
 
 
Madison Square
Huntsville, AL
 
928,533

 
 
 
 
 
 
 
 
 
 
Triangle Town Center
Raleigh, NC
 
1,264,240

 
 
 
 
 
 
 
 
 
 
Total Non-Core/Lender Malls
 
 
3,426,232

 
N/A
 
N/A
 
N/A
 
N/A
 
1.9
%

(1)
Represents same-store sales per square foot for mall tenants 10,000 square feet or less for stabilized malls.
(2)
Property is under redevelopment in 2015. Operational metrics have been excluded for Chesterfield Mall and Wausau Center, due to proposed significant repositioning.
(3)
Fremaux Town Center, The Outlet Shoppes at Atlanta and The Outlet Shoppes of the Bluegrass are non-stabilized malls and are excluded from Sales Per Square Foot.



23

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2015

New and Renewal Leasing Activity of Same Small Shop Space Less Than 10,000 Square Feet
Property Type
 
Square
Feet
 
Prior Gross
Rent PSF
 
New
Initial Gross
Rent PSF
 
% Change
Initial
 
New
Average Gross
Rent PSF (2)
 
% Change
Average
All Property Types (1)
 
608,132

 
$
40.67

 
$
43.59

 
7.2
%
 
$
45.08

 
10.8
%
Stabilized malls
 
581,413

 
41.45

 
44.34

 
7.0
%
 
45.86

 
10.6
%
  New leases
 
121,546

 
45.04

 
57.50

 
27.7
%
 
60.87

 
35.1
%
  Renewal leases
 
459,867

 
40.50

 
40.86

 
0.9
%
 
41.89

 
3.4
%

 
 
 
 
Average Annual Base Rents Per Square Foot (3) By Property Type For Small Shop Space Less Than 10,000 Square Feet:
Total Leasing Activity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of March 31,
 
 
Square Feet
 
 
 
2015
 
2014
Operating portfolio:
 
 

Same-center stabilized malls
 
$
31.14

 
$
30.44

New leases
 
360,795


Stabilized malls
 
31.14

 
30.32

Renewal leases
 
751,071

 
Non-stabilized malls (4)
 
21.61

 
24.58

Development portfolio:
 
 
 
Associated centers
 
12.88

 
12.42

New leases
 
173,036

 
Community centers
 
15.54

 
15.81

Total leased
 
1,284,902

 
Office buildings
 
19.37

 
19.52

 
 
 
 
 
 
 
 
 

(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 March 31, 2015, including the impact of any rent concessions.
(4) 
Includes Fremaux Town Center, The Outlet Shoppes of the Bluegrass and The Outlet Shoppes at Atlanta as of March 31, 2015 and The Outlet Shoppes at Atlanta and The Outlet Shoppes at Oklahoma City as of March 31, 2014.


24

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2015


New and Renewal Leasing Activity of Same Small Shop Space Less Than 10,000 Square Feet
For the Three Months Ended March 31, 2015 Based on Commencement Date
 
 
Number
of Leases
 
Square
Feet
 
Term
(in years)
 
Initial
Rent
PSF
 
Average
Rent
PSF
 
Expiring
Rent
PSF
 
Initial Rent
Spread
 
 Average Rent
Spread
Commencement 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New
 
123

 
344,596

 
8.91

 
$
49.97

 
$
52.95

 
$
39.23

 
$
10.74

 
27.4
%
 
$
13.72

 
35.0
%
Renewal
 
367

 
1,114,915

 
4.05

 
39.05

 
40.04

 
37.64

 
1.41

 
3.7
%
 
2.40

 
6.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commencement 2015 Total
 
490

 
1,459,511

 
5.27

 
$
41.63

 
$
43.09

 
$
38.01

 
$
3.62

 
9.5
%
 
$
5.08

 
13.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commencement 2016:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
New
 
8

 
13,735

 
7.98

 
$
74.58

 
$
77.64

 
$
60.54

 
$
14.04

 
23.2
%
 
$
17.10

 
28.2
%
Renewal
 
73

 
201,094

 
3.54

 
47.81

 
48.76

 
45.29

 
2.52

 
5.6
%
 
3.47

 
7.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commencement 2016 Total
 
81

 
214,829

 
3.98

 
$
49.52

 
$
50.60

 
$
46.27

 
$
3.25

 
7.0
%
 
$
4.33

 
9.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total 2015/2016
 
571

 
1,674,340

 
5.08

 
$
42.64

 
$
44.05

 
$
39.07

 
$
3.57

 
9.1
%
 
$
4.98

 
12.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


25

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2015

  
Top 25 Tenants Based On Percentage Of Total Annual Revenues
 
Tenant
Number of
Stores
 
Square Feet
 
Percentage of
Total Annualized
Revenues
1
Limited Brands, LLC (1)
157

 
 
821,066

 
 
3.21%
2
Signet Jewelers Limited (2)
217

 
 
322,195

 
 
2.82%
3
Foot Locker, Inc.
137

 
 
580,665

 
 
2.24%
4
Ascena Retail Group, Inc. (3)
182

 
 
912,765

 
 
2.14%
5
AE Outfitters Retail Company
80

 
 
492,940

 
 
1.98%
6
Genesco Inc. (4)
194

 
 
307,820

 
 
1.64%
7
Dick's Sporting Goods, Inc. (5)
26

 
 
1,429,353

 
 
1.63%
8
The Gap, Inc.
66

 
 
741,339

 
 
1.61%
9
Luxottica Group, S.P.A. (6)
123

 
 
270,835

 
 
1.24%
10
JC Penney Company, Inc. (7)
64

 
 
7,263,726

 
 
1.23%
11
Express Fashions
43

 
 
353,278

 
 
1.16%
12
Abercrombie & Fitch, Co.
53

 
 
358,613

 
 
1.15%
13
Finish Line, Inc.
62

 
 
319,706

 
 
1.12%
14
Forever 21 Retail, Inc.
24

 
 
449,486

 
 
1.10%
15
Charlotte Russe Holding, Inc.
52

 
 
338,831

 
 
1.06%
16
Aeropostale, Inc.
71

 
 
265,160

 
 
1.04%
17
The Buckle, Inc.
50

 
 
255,561

 
 
1.00%
18
Best Buy Co., Inc. (8)
63

 
 
548,312

 
 
0.98%
19
New York & Company, Inc.
42

 
 
281,893

 
 
0.83%
20
Claire's Stores, Inc.
111

 
 
138,559

 
 
0.80%
21
The Children's Place Retail Stores, Inc.
61

 
 
265,624

 
 
0.78%
22
Shoe Show, Inc.
51

 
 
621,150

 
 
0.75%
23
Barnes & Noble Inc.
19

 
 
579,099

 
 
0.74%
24
BonTon
21

 
 
2,263,002

 
 
0.68%
25
The Gymboree Corporation
90

 
 
193,382

 
 
0.66%
 
 
2,059

 
 
20,374,360

 
 
33.59%
 
 
 
 
 
 
 
 
 
(1)
Limited Brands, LLC operates Victoria's Secret, PINK and Bath & Body Works.
(2)
Signet Jewelers Limited operates Kay Jewelers, Marks & Morgan, JB Robinson, Shaw's Jewelers, Osterman's Jewelers, LeRoy's Jewelers, Jared Jewelers, Belden Jewelers, Ultra Diamonds and Rogers Jewelers. 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 Journeys, 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)
Luxottica Group, S.P.A. operates Lenscrafters, Sunglass Hut, and Pearle Vision.
(7)
JC Penney Co., Inc. owns 32 of these stores. JC Penney plans to close three leased stores over the remainder of 2015. The three stores are included in the above chart as the stores were in operation as of March 31, 2015 and JC Penney remains obligated for rent under the terms of the respective leases.
(8)
Best Buy Co., Inc. operates Best Buy and Best Buy Mobile.


26

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
For the Three Months Ended March 31, 2015

Capital Expenditures
(In thousands)
 
 
Three Months Ended
March 31,
 
 
2015
 
2014
Tenant allowances (1)
 
$
12,696

 
$
11,412

 
 
 
 
 
Renovations (2)
 
2,163

 
1,805

 
 
 
 
 
Deferred maintenance: (3)
 
 
 
 
Parking lot and parking lot lighting
 
1,912

 
1,294

Roof repairs and replacements
 
931

 
232

Other capital expenditures
 
1,066

 
2,349

Total deferred maintenance expenditures
 
3,909

 
3,875

 
 
 
 
 
Total capital expenditures
 
$
18,768

 
$
17,092


(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.

 

Deferred Leasing Costs Capitalized
(In thousands)
 
 
2015
 
2014
Quarter ended:
 
 
 
 
March 31,
 
$
695

 
$
773

June 30,
 


 
807

September 30,
 

 
770

December 31,
 

 
913

 
 
$
695

 
$
3,263



27

CBL & Associates Properties, Inc.
Supplemental Financial And Operating Information
As of March 31, 2015


Properties Opened During the Three Months Ended March 31, 2015
(Dollars in thousands)
Property
 
Location
 
Total Project
Square Feet
 
Total
Cost (1)
 
Cost to
Date (2)
 
Opening Date
 
Initial
Unleveraged
Yield
Community Center:
 
 
 
 
 
 
 
 
 
 
 
 
Parkway Plaza
 
Fort Oglethorpe, GA
 
134,050

 
$
17,325

 
$
15,806

 
March-15
 
8.5%
 
 
 
 
 
 
 
 
 
 
 
 
 
Community Center Expansion:
 
 
 
 
 
 
 
 
 
 
 
 
Hammock Landing - Academy Sports (3)
 
West Melbourne, FL
 
63,092

 
9,903

 
5,928

 
March-15
 
8.6%
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Properties Opened
 
 
 
197,142

 
$
27,228

 
$
21,734

 
 
 
 

Properties Under Development at March 31, 2015
(Dollars in thousands)
Property
 
Location
 
Total Project
Square Feet
 
Total
Cost (1)
 
Cost to
Date (2)
 
Expected
Opening Date
 
Initial
Unleveraged
Yield
Community Center:
 
 
 
 
 
 
 
 
 
 
 
 
Ambassador Town Center (4)
 
Lafayette, LA
 
438,057

 
$
61,456

 
$
16,995

 
 Spring-16
 
8.8%
 
 
 
 
 
 
 
 
 
 
 
 
 
Mall/Outlet Center Expansions:
 
 
 
 
 
 
 
 
 
 
 
 
Fremaux Town Center - Phase II (4)
 
Slidell, LA
 
279,791

 
38,334

 
15,002

 
Fall-15
 
9.6%
The Outlet Shoppes at Atlanta - Parcel Development (5)
 
Woodstock, GA
 
9,600

 
3,542

 
3,496

 
Spring-15
 
9.3%
The Outlet Shoppes at Atlanta-Phase II (5)
 
Woodstock, GA
 
32,944

 
5,421

 
336

 
Fall-15
 
14.2%
The Outlet Shoppes of the Bluegrass-Phase II (4)
 
Simpsonville, KY
 
53,378

 
11,802

 
2,203

 
 Fall-15
 
11.0%
Sunrise Mall-Dick's Sporting Goods
 
Brownsville, TX
 
50,000

 
8,348

 
239

 
Winter-15
 
8.7%
 
 
 
 
425,713

 
67,447

 
21,276

 
 
 
 
Mall Redevelopment:
 
 
 
 
 
 
 
 
 
 
 
 
Brookfield Square - Sears Redevelopment
 
Brookfield, WI
 
21,814

 
7,704

 
1,858

 
 Fall-15
 
8.3%
Coolsprings Galleria - Sears Redevelopment (3)
 
Nashville, TN
 
182,163

 
66,398

 
31,647

 
 Spring-15/Summer-16
 
7.0%
Hickory Point Mall - JCP Redevelopment
 
Forsyth, IL
 
60,000

 
2,764

 
1,201

 
 Fall-15
 
10.7%
Janesville Mall - JCP Redevelopment
 
Janesville, WI
 
149,522

 
17,128

 
1,642

 
 Fall-15
 
8.7%
Meridian Mall - Gordmans
 
Lansing, MI
 
50,000

 
7,193

 
4,251

 
 Fall-15
 
10.3%
Northgate Mall - Streetscape/ULTA
 
Chattanooga, TN
 
50,852

 
8,989

 
4,687

 
Fall-14/Summer-15
 
10.5%
 
 
 
 
514,351

 
110,176

 
45,286

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Properties Under Development
 
 
 
1,378,121

 
$
239,079

 
$
83,557

 
 
 
 

(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 50/50 joint venture. Total cost and cost to date are reflected at 100%.
(4)
This property is a 65/35 joint venture. Total cost and cost to date are reflected at 100%.
(5)
This property is a 75/25 joint venture. Total cost and cost to date are reflected at 100%.


28