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) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Low | High | ||||||
Expected diluted earnings per common share | $ | 0.88 | $ | 0.92 | |||
Adjust to fully converted shares from common shares | (0.13 | ) | (0.13 | ) | |||
Expected earnings per diluted, fully converted common share | 0.75 | 0.79 | |||||
Add: depreciation and amortization | 1.57 | 1.57 | |||||
Add: Loss on impairment | 0.32 | 0.32 | |||||
Add: noncontrolling interest in earnings of Operating Partnership | 0.13 | 0.13 | |||||
Expected FFO per diluted, fully converted common share | 2.77 | 2.81 | |||||
Adjustment for dispositions of unconsolidated affiliates | (0.43 | ) | (0.43 | ) | |||
Adjustment for litigation settlement and nonrecurring professional fees expense | 0.02 | 0.02 | |||||
Expected adjusted FFO per diluted, fully converted common share | $ | 2.36 | $ | 2.40 |
Low | High | ||||||
Expected diluted earnings per common share | $ | 0.91 | $ | 0.95 | |||
Adjust to fully converted shares from common shares | (0.13 | ) | (0.14 | ) | |||
Expected earnings per diluted, fully converted common share | 0.78 | 0.81 | |||||
Add: depreciation and amortization | 1.57 | 1.57 | |||||
Add: Loss on impairment | 0.32 | 0.32 | |||||
Add: noncontrolling interest in earnings of Operating Partnership | 0.13 | 0.14 | |||||
Less: Gain on depreciable property | (0.18 | ) | (0.18 | ) | |||
Expected FFO per diluted, fully converted common share | 2.62 | 2.66 | |||||
Adjustment for dispositions of unconsolidated affiliates | (0.28 | ) | (0.28 | ) | |||
Adjustment for litigation settlement and nonrecurring professional fees expense | 0.02 | 0.02 | |||||
Expected adjusted FFO per diluted, fully converted common share | $ | 2.36 | $ | 2.40 |
(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 July 28, 2016 and Supplemental Financial and Operating Information - For the Three Months and Six Months Ended June 30, 2016 | |
99.2 | Investor Conference Call Script - Second Quarter Ended June 30, 2016 |
Page | ||
Reconciliations of Non-GAAP Financial Measures: | ||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2016 | 2015 | % | 2016 | 2015 | % | ||||||||||||||||
Net income attributable to common shareholders per diluted share | $ | 0.30 | $ | 0.18 | 66.7 | % | $ | 0.47 | $ | 0.38 | 23.7 | % | |||||||||
Funds from Operations ("FFO") per diluted share | $ | 0.73 | $ | 0.53 | 37.7 | % | $ | 1.41 | $ | 1.15 | 22.6 | % | |||||||||
FFO, as adjusted, per diluted share (1) | $ | 0.59 | $ | 0.54 | 9.3 | % | $ | 1.15 | $ | 1.05 | 9.5 | % | |||||||||
(1) FFO, as adjusted, for the three months ended June 30, 2016 excludes a $29.2 million increase in equity in earnings related to the completed foreclosure of Gulf Coast Town Center (owned in a 50/50 joint venture) as well as $1.1 million related to non-recurring professional fees expense related to the SEC investigation. In addition to these items, FFO, as adjusted, for the six months ended June 30, 2016 excludes $1.7 million of litigation settlement expense as well as a $26.4 million increase in equity in earnings related to the sale of our 50% interest in Triangle Town Center. FFO, as adjusted, for the three months ended June 30, 2015 excludes $3.0 million of expense related to a litigation settlement and a $0.3 million gain on extinguishment of debt. FFO, as adjusted, for the six months ended June 30, 2015 excludes a partial litigation settlement, net of related expenses, of $1.7 million and a $16.6 million gain on investment related to the sale of marketable securities. |
• | Same-center NOI for the second quarter of 2016 increased 3.4% in the Total Portfolio and 3.2% in the Malls compared with the prior period. |
• | FFO per diluted share, as adjusted, increased 9.3% to $0.59 for the second quarter of 2016, compared with $0.54 in the prior-year period. |
• | Same-center mall occupancy increased 150 basis points to 91.7% as of June 30, 2016 compared with 90.2% as of June 30, 2015. |
• | Same-center sales increased 1.1% to $377 per square foot for the rolling 12-months ended June 30, 2016 over the prior-period. |
• | $304 million (at CBL's share) in mall and community center dispositions closed year-to-date. |
1 |
Three Months Ended June 30, 2016 | |
Portfolio same-center NOI | 3.4% |
Mall same-center NOI | 3.2% |
(1) | CBL's definition of same-center NOI excludes the impact of lease termination fees and certain non-cash items of straight line rents and net amortization of acquired above and below market leases. NOI is for real estate properties and excludes the Company's subsidiary that provides maintenance, janitorial and security services. |
• | NOI increased $6.1 million, generated from a $5.6 million increase in revenue and a $0.5 million decline in operating expense. |
• | Minimum rents increased $4.5 million during the quarter as a result of rent growth and occupancy increases over the prior year. |
• | Percentage rents increased by $0.2 million due to positive sales growth. |
• | Tenant reimbursement and other revenues increased by $0.9 million. |
• | Property operating expense declined $1.1 million and maintenance and repair expense declined by $0.2 million, partially offset by a $0.8 million increase in real estate tax expense. |
2 |
As of June 30, | ||||
2016 | 2015 | |||
Portfolio occupancy | 92.6% | 91.0% | ||
Mall portfolio | 91.6% | 90.0% | ||
Same-center malls | 91.7% | 90.2% | ||
Stabilized malls | 91.6% | 89.9% | ||
Non-stabilized malls (1) | 92.3% | 95.5% | ||
Associated centers | 95.6% | 94.1% | ||
Community centers | 96.8% | 96.8% |
(1) | Represents occupancy for The Outlet Shoppes at Atlanta and The Outlet Shoppes of the Bluegrass as of June 30, 2016 and Fremaux Town Center, The Outlet Shoppes at Atlanta and The Outlet Shoppes of the Bluegrass as of June 30, 2015. |
% Change in Average Gross Rent Per Square Foot | |
Three Months Ended June 30, 2016 | |
Stabilized Malls | 7.8% |
New leases | 25.8% |
Renewal leases | 0.2% |
Twelve Months Ended June 30, | ||||||||||
2016 | 2015 | % Change | ||||||||
Stabilized mall same-center sales per square foot | $ | 377 | $ | 373 | 1.1% |
3 |
• | $4.0 million to $5.0 million of outparcel sales; |
• | 75-125 basis point increase in total portfolio occupancy as well as stabilized mall occupancy throughout 2016; |
• | G&A, net of litigation expense and non-recurring professional fees, of $58 million to $60 million; and |
• | No unannounced capital markets activity. |
4 |
Low | High | ||||||
Expected diluted earnings per common share | $ | 0.91 | $ | 0.95 | |||
Adjust to fully converted shares from common shares | (0.13 | ) | (0.14 | ) | |||
Expected earnings per diluted, fully converted common share | 0.78 | 0.81 | |||||
Add: depreciation and amortization | 1.57 | 1.57 | |||||
Add: Loss on impairment | 0.32 | 0.32 | |||||
Add: noncontrolling interest in earnings of Operating Partnership | 0.13 | 0.14 | |||||
Less: Gain on depreciable property | (0.18 | ) | (0.18 | ) | |||
Expected FFO per diluted, fully converted common share | 2.62 | 2.66 | |||||
Adjustment for dispositions of unconsolidated affiliates | (0.28 | ) | (0.28 | ) | |||
Adjustment for litigation settlement and nonrecurring professional fees expense | 0.02 | 0.02 | |||||
Expected adjusted FFO per diluted, fully converted common share | $ | 2.36 | $ | 2.40 |
5 |
6 |
7 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
REVENUES: | |||||||||||||||
Minimum rents | $ | 167,216 | $ | 166,428 | $ | 337,845 | $ | 335,509 | |||||||
Percentage rents | 2,692 | 2,412 | 7,365 | 6,549 | |||||||||||
Other rents | 4,819 | 4,421 | 9,881 | 9,592 | |||||||||||
Tenant reimbursements | 70,096 | 70,224 | 143,462 | 142,357 | |||||||||||
Management, development and leasing fees | 4,067 | 2,663 | 6,648 | 5,441 | |||||||||||
Other | 6,075 | 7,695 | 12,842 | 15,304 | |||||||||||
Total revenues | 254,965 | 253,843 | 518,043 | 514,752 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Property operating | 31,060 | 32,866 | 69,688 | 71,770 | |||||||||||
Depreciation and amortization | 72,205 | 71,239 | 148,711 | 147,505 | |||||||||||
Real estate taxes | 22,834 | 22,549 | 45,862 | 45,334 | |||||||||||
Maintenance and repairs | 11,790 | 12,407 | 26,338 | 26,623 | |||||||||||
General and administrative | 16,475 | 16,215 | 33,643 | 33,445 | |||||||||||
Loss on impairment | 43,493 | 2,781 | 63,178 | 2,781 | |||||||||||
Other | 5,052 | 5,928 | 14,737 | 12,404 | |||||||||||
Total operating expenses | 202,909 | 163,985 | 402,157 | 339,862 | |||||||||||
Income from operations | 52,056 | 89,858 | 115,886 | 174,890 | |||||||||||
Interest and other income | 251 | 389 | 611 | 5,663 | |||||||||||
Interest expense | (53,187 | ) | (58,754 | ) | (108,418 | ) | (117,911 | ) | |||||||
Gain on extinguishment of debt | — | 256 | 6 | 256 | |||||||||||
Gain on investment | — | — | — | 16,560 | |||||||||||
Equity in earnings of unconsolidated affiliates | 64,349 | 4,881 | 96,739 | 8,704 | |||||||||||
Income tax benefit (provision) | 51 | (2,472 | ) | 588 | (1,556 | ) | |||||||||
Income from continuing operations before gain on sales of real estate assets | 63,520 | 34,158 | 105,412 | 86,606 | |||||||||||
Gain on sales of real estate assets | 9,577 | 14,173 | 9,577 | 14,930 | |||||||||||
Net income | 73,097 | 48,331 | 114,989 | 101,536 | |||||||||||
Net (income) loss attributable to noncontrolling interests in: | |||||||||||||||
Operating Partnership | (8,483 | ) | (4,946 | ) | (13,428 | ) | (11,118 | ) | |||||||
Other consolidated subsidiaries | (1,695 | ) | (1,490 | ) | 1,432 | (2,359 | ) | ||||||||
Net income attributable to the Company | 62,919 | 41,895 | 102,993 | 88,059 | |||||||||||
Preferred dividends | (11,223 | ) | (11,223 | ) | (22,446 | ) | (22,446 | ) | |||||||
Net income attributable to common shareholders | $ | 51,696 | $ | 30,672 | $ | 80,547 | $ | 65,613 | |||||||
Basic and diluted per share data attributable to common shareholders: | |||||||||||||||
Net income attributable to common shareholders | $ | 0.30 | $ | 0.18 | $ | 0.47 | $ | 0.38 | |||||||
Weighted-average common and potential dilutive common shares outstanding | 170,792 | 170,494 | 170,731 | 170,457 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income attributable to common shareholders | $ | 51,696 | $ | 30,672 | $ | 80,547 | $ | 65,613 | |||||||
Noncontrolling interest in income of Operating Partnership | 8,483 | 4,946 | 13,428 | 11,118 | |||||||||||
Depreciation and amortization expense of: | |||||||||||||||
Consolidated properties | 72,205 | 71,239 | 148,711 | 147,505 | |||||||||||
Unconsolidated affiliates | 9,156 | 10,303 | 18,334 | 20,620 | |||||||||||
Non-real estate assets | (722 | ) | (731 | ) | (1,559 | ) | (1,573 | ) | |||||||
Noncontrolling interests' share of depreciation and amortization | (2,055 | ) | (2,151 | ) | (4,448 | ) | (4,782 | ) | |||||||
Loss on impairment | 43,493 | 2,781 | 63,178 | 2,781 | |||||||||||
Gain on depreciable property, net of tax | (35,521 | ) | (12,129 | ) | (35,521 | ) | (12,196 | ) | |||||||
FFO allocable to Operating Partnership common unitholders | 146,735 | 104,930 | 282,670 | 229,086 | |||||||||||
Litigation settlements, net of related expenses (1) | — | 3,004 | 1,707 | (1,654 | ) | ||||||||||
Nonrecurring professional fees expense (1) | 1,119 | — | 1,119 | — | |||||||||||
Gain on investment | — | — | — | (16,560 | ) | ||||||||||
Equity in earnings from disposals of unconsolidated affiliates | (29,235 | ) | — | (55,630 | ) | — | |||||||||
Gain on extinguishment of debt | — | (256 | ) | — | (256 | ) | |||||||||
FFO allocable to Operating Partnership common unitholders, as adjusted | $ | 118,619 | $ | 107,678 | $ | 229,866 | $ | 210,616 | |||||||
FFO per diluted share | $ | 0.73 | $ | 0.53 | $ | 1.41 | $ | 1.15 | |||||||
FFO, as adjusted, per diluted share | $ | 0.59 | $ | 0.54 | $ | 1.15 | $ | 1.05 | |||||||
Weighted average common and potential dilutive common shares outstanding with Operating Partnership units fully converted | 200,045 | 199,751 | 199,986 | 199,716 | |||||||||||
Reconciliation of FFO allocable to Operating Partnership common unitholders to FFO allocable to common shareholders: | |||||||||||||||
FFO allocable to Operating Partnership common unitholders | $ | 146,735 | $ | 104,930 | $ | 282,670 | $ | 229,086 | |||||||
Percentage allocable to common shareholders (2) | 85.38 | % | 85.35 | % | 85.37 | % | 85.35 | % | |||||||
FFO allocable to common shareholders | $ | 125,282 | $ | 89,558 | $ | 241,315 | $ | 195,525 | |||||||
FFO allocable to Operating Partnership common unitholders, as adjusted | $ | 118,619 | $ | 107,678 | $ | 229,866 | $ | 210,616 | |||||||
Percentage allocable to common shareholders (2) | 85.38 | % | 85.35 | % | 85.37 | % | 85.35 | % | |||||||
FFO allocable to common shareholders, as adjusted | $ | 101,277 | $ | 91,903 | $ | 196,237 | $ | 179,761 | |||||||
(1) Litigation settlement is included in Interest and Other Income in the Consolidated Statements of Operations. Litigation expense, including settlements paid, is included in General and Administrative expense in the Consolidated Statements of Operations. Nonrecurring professional fees expense is included in General and Administrative expense in the Consolidated Statements of Operations. | |||||||||||||||
(2) 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 13. | |||||||||||||||
SUPPLEMENTAL FFO INFORMATION: | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Lease termination fees | $ | 394 | $ | 1,731 | $ | 1,345 | $ | 3,037 | |||||||
Lease termination fees per share | $ | — | $ | 0.01 | $ | 0.01 | $ | 0.02 | |||||||
Straight-line rental income | $ | 1,411 | $ | 879 | $ | 1,560 | $ | 1,563 | |||||||
Straight-line rental income per share | $ | 0.01 | $ | — | $ | 0.01 | $ | 0.01 | |||||||
Gains on outparcel sales | $ | 3,783 | $ | 1,416 | $ | 3,783 | $ | 2,523 | |||||||
Gains on outparcel sales per share | $ | 0.02 | $ | 0.01 | $ | 0.02 | $ | 0.01 | |||||||
Net amortization of acquired above- and below-market leases | $ | 906 | $ | 192 | $ | 1,982 | $ | 838 | |||||||
Net amortization of acquired above- and below-market leases per share | $ | — | $ | — | $ | 0.01 | $ | — | |||||||
Net amortization of debt premiums and discounts | $ | 411 | $ | 450 | $ | 838 | $ | 1,033 | |||||||
Net amortization of debt premiums and discounts per share | $ | — | $ | — | $ | — | $ | 0.01 | |||||||
Income tax benefit (provision) | $ | 51 | $ | (2,472 | ) | $ | 588 | $ | (1,556 | ) | |||||
Income tax benefit (provision) per share | $ | — | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | |||||
Gain on extinguishment of debt | $ | — | $ | 256 | $ | 6 | $ | 256 | |||||||
Gain on extinguishment of debt per share | $ | — | $ | — | $ | — | $ | — | |||||||
Gain on investment | $ | — | $ | — | $ | — | $ | 16,560 | |||||||
Gain on investment per share | $ | — | $ | — | $ | — | $ | 0.08 | |||||||
Equity in earnings from disposals of unconsolidated affiliates | $ | 29,235 | $ | — | $ | 55,630 | $ | — | |||||||
Equity in earnings from disposals of unconsolidated affiliates per share | $ | 0.15 | $ | — | $ | 0.28 | $ | — | |||||||
Abandoned projects expense | $ | (32 | ) | $ | — | $ | (33 | ) | $ | (125 | ) | ||||
Abandoned projects expense per share | $ | — | $ | — | $ | — | $ | — | |||||||
Interest capitalized | $ | 448 | $ | 1,024 | $ | 996 | $ | 2,232 | |||||||
Interest capitalized per share | $ | — | $ | 0.01 | $ | — | $ | 0.01 | |||||||
Litigation settlements, net of related expenses | $ | — | $ | (3,004 | ) | $ | (1,707 | ) | $ | 1,654 | |||||
Litigation settlements, net of related expenses per share | $ | — | $ | (0.02 | ) | $ | (0.01 | ) | $ | 0.01 | |||||
Nonrecurring professional fees expense | $ | (1,119 | ) | $ | — | $ | (1,119 | ) | $ | — | |||||
Nonrecurring professional fees expense per share | $ | — | $ | — | $ | — | $ | — |
As of June 30, | |||||||
2016 | 2015 | ||||||
Straight-line rent receivable | $ | 68,038 | $ | 65,210 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income | $ | 73,097 | $ | 48,331 | $ | 114,989 | $ | 101,536 | |||||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 72,205 | 71,239 | 148,711 | 147,505 | |||||||||||
Depreciation and amortization from unconsolidated affiliates | 9,156 | 10,303 | 18,334 | 20,620 | |||||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (2,055 | ) | (2,151 | ) | (4,448 | ) | (4,782 | ) | |||||||
Interest expense | 53,187 | 58,754 | 108,418 | 117,911 | |||||||||||
Interest expense from unconsolidated affiliates | 7,093 | 9,587 | 13,678 | 19,272 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,678 | ) | (1,702 | ) | (3,357 | ) | (3,397 | ) | |||||||
Abandoned projects expense | 32 | — | 33 | 125 | |||||||||||
Gain on sales of real estate assets | (9,577 | ) | (14,173 | ) | (9,577 | ) | (14,930 | ) | |||||||
Gain on sales of real estate assets of unconsolidated affiliates | (58,927 | ) | (601 | ) | (85,322 | ) | (1,164 | ) | |||||||
Gain on investment | — | — | — | (16,560 | ) | ||||||||||
Gain on extinguishment of debt | — | (256 | ) | (6 | ) | (256 | ) | ||||||||
Loss on impairment | 43,493 | 2,781 | 63,178 | 2,781 | |||||||||||
Income tax (benefit) provision | (51 | ) | 2,472 | (588 | ) | 1,556 | |||||||||
Lease termination fees | (394 | ) | (1,731 | ) | (1,345 | ) | (3,037 | ) | |||||||
Straight-line rent and above- and below-market lease amortization | (2,317 | ) | (1,071 | ) | (3,542 | ) | (2,401 | ) | |||||||
Net (income) loss attributable to noncontrolling interests in other consolidated subsidiaries | (1,695 | ) | (1,490 | ) | 1,432 | (2,359 | ) | ||||||||
General and administrative expenses | 16,475 | 16,215 | 33,643 | 33,445 | |||||||||||
Management fees and non-property level revenues | (6,293 | ) | (5,580 | ) | (11,069 | ) | (17,038 | ) | |||||||
Operating Partnership's share of property NOI | 191,751 | 190,927 | 383,162 | 378,827 | |||||||||||
Non-comparable NOI | (9,468 | ) | (14,702 | ) | (23,165 | ) | (29,839 | ) | |||||||
Total same-center NOI (1) | $ | 182,283 | $ | 176,225 | $ | 359,997 | $ | 348,988 | |||||||
Total same-center NOI percentage change | 3.4 | % | 3.2 | % | |||||||||||
Malls | $ | 166,593 | $ | 161,376 | $ | 328,871 | $ | 319,642 | |||||||
Associated centers | 8,306 | 7,930 | 16,351 | 15,550 | |||||||||||
Community centers | 5,304 | 4,833 | 10,531 | 9,540 | |||||||||||
Offices and other | 2,080 | 2,086 | 4,244 | 4,256 | |||||||||||
Total same-center NOI (1) | $ | 182,283 | $ | 176,225 | $ | 359,997 | $ | 348,988 | |||||||
Percentage Change: | |||||||||||||||
Malls | 3.2 | % | 2.9 | % | |||||||||||
Associated centers | 4.7 | % | 5.2 | % | |||||||||||
Community centers | 9.7 | % | 10.4 | % | |||||||||||
Offices and other | (0.3 | )% | (0.3 | )% | |||||||||||
Total same-center NOI (1) | 3.4 | % | 3.2 | % |
(1) | CBL defines NOI as property operating revenues (rental revenues, tenant reimbursements and other income), less property operating expenses (property operating, real estate taxes and maintenance and repairs). Same-center NOI excludes lease termination income, straight-line rent adjustments, and amortization of above and below market lease intangibles. Same-center NOI is for real estate properties and does not include the results of operations of the Company's subsidiary that provides janitorial, security and maintenance services. We include a property in our same-center pool when we own all or a portion of the property as of June 30, 2016, 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 June 30, 2016. 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 properties which are either under major redevelopment, being considered for repositioning, minority interest properties in which we own an interest of 25% or less, or where we intend to renegotiate the terms of the debt secured by the related property. |
As of June 30, 2016 | |||||||||||||||||||
Fixed Rate | Variable Rate | Total per Debt Schedule | Unamortized Deferred Financing Costs | Total | |||||||||||||||
Consolidated debt | $ | 3,359,851 | $ | 1,234,099 | $ | 4,593,950 | (1) | $ | (15,234 | ) | $ | 4,578,716 | |||||||
Noncontrolling interests' share of consolidated debt | (110,236 | ) | (7,575 | ) | (117,811 | ) | 739 | (117,072 | ) | ||||||||||
Company's share of unconsolidated affiliates' debt | 551,369 | 73,870 | 625,239 | (3,001 | ) | 622,238 | |||||||||||||
Company's share of consolidated and unconsolidated debt | $ | 3,800,984 | $ | 1,300,394 | $ | 5,101,378 | $ | (17,496 | ) | $ | 5,083,882 | ||||||||
Weighted average interest rate | 5.34 | % | 1.89 | % | 4.46 | % | |||||||||||||
As of June 30, 2015 | |||||||||||||||||||
Fixed Rate | Variable Rate | Total per Debt Schedule | Unamortized Deferred Financing Costs | Total | |||||||||||||||
Consolidated debt | $ | 3,901,335 | $ | 932,870 | $ | 4,834,205 | $ | (15,284 | ) | $ | 4,818,921 | ||||||||
Noncontrolling interests' share of consolidated debt | (113,536 | ) | (7,033 | ) | (120,569 | ) | 853 | (119,716 | ) | ||||||||||
Company's share of unconsolidated affiliates' debt | 667,815 | 104,618 | 772,433 | (1,558 | ) | 770,875 | |||||||||||||
Company's share of consolidated and unconsolidated debt | $ | 4,455,614 | $ | 1,030,455 | $ | 5,486,069 | $ | (15,989 | ) | $ | 5,470,080 | ||||||||
Weighted average interest rate | 5.45 | % | 1.72 | % | 4.75 | % |
Shares Outstanding | Stock Price (1) | Value | ||||||||
Common stock and operating partnership units | 200,032 | $ | 9.31 | $ | 1,862,298 | |||||
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 | 2,488,548 | |||||||||
Company's share of total debt, excluding unamortized deferred financing costs | 5,101,378 | |||||||||
Total market capitalization | $ | 7,589,926 | ||||||||
Debt-to-total-market capitalization ratio | 67.2 | % |
(1) | Stock price for common stock and Operating Partnership units equals the closing price of the common stock on June 30, 2016. The stock prices for the preferred stocks represent the liquidation preference of each respective series. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2016: | Basic | Diluted | Basic | Diluted | |||||||
Weighted average shares - EPS | 170,792 | 170,792 | 170,731 | 170,731 | |||||||
Weighted average Operating Partnership units | 29,253 | 29,253 | 29,255 | 29,255 | |||||||
Weighted average shares- FFO | 200,045 | 200,045 | 199,986 | 199,986 | |||||||
2015: | |||||||||||
Weighted average shares - EPS | 170,494 | 170,494 | 170,457 | 170,457 | |||||||
Weighted average Operating Partnership units | 29,257 | 29,257 | 29,259 | 29,259 | |||||||
Weighted average shares- FFO | 199,751 | 199,751 | 199,716 | 199,716 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Weighted average cash dividend per share | $ | 0.27278 | $ | 0.27279 | $ | 0.54556 | $ | 0.54558 | |||||||
FFO as adjusted, per diluted fully converted share | $ | 0.59 | $ | 0.54 | $ | 1.15 | $ | 1.05 | |||||||
Dividend payout ratio | 46.2 | % | 50.5 | % | 47.4 | % | 52.0 | % |
Consolidated Balance Sheets (Unaudited; in thousands, except share data) | |||||||
As of | |||||||
June 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
Real estate assets: | |||||||
Land | $ | 851,541 | $ | 876,668 | |||
Buildings and improvements | 7,000,254 | 7,287,862 | |||||
7,851,795 | 8,164,530 | ||||||
Accumulated depreciation | (2,369,696 | ) | (2,382,568 | ) | |||
5,482,099 | 5,781,962 | ||||||
Held for sale | 65,300 | — | |||||
Developments in progress | 116,469 | 75,991 | |||||
Net investment in real estate assets | 5,663,868 | 5,857,953 | |||||
Cash and cash equivalents | 21,139 | 36,892 | |||||
Receivables: | |||||||
Tenant, net of allowance for doubtful accounts of $1,918 and $1,923 in 2016 and 2015, respectively | 99,905 | 87,286 | |||||
Other, net of allowance for doubtful accounts of $1,275 and $1,276 in 2016 and 2015, respectively | 16,711 | 17,958 | |||||
Mortgage and other notes receivable | 15,703 | 18,238 | |||||
Investments in unconsolidated affiliates | 275,101 | 276,383 | |||||
Intangible lease assets and other assets | 187,709 | 185,281 | |||||
$ | 6,280,136 | $ | 6,479,991 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Mortgage and other indebtedness | $ | 4,540,479 | $ | 4,710,628 | |||
Accounts payable and accrued liabilities | 284,219 | 344,434 | |||||
Liabilities related to assets held for sale | 38,237 | — | |||||
Total liabilities | 4,862,935 | 5,055,062 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling partnership interests | 17,833 | 25,330 | |||||
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, 170,789,867 and 170,490,948 issued and outstanding in 2016 and 2015, respectively | 1,708 | 1,705 | |||||
Additional paid-in capital | 1,971,591 | 1,970,333 | |||||
Accumulated other comprehensive income | — | 1,935 | |||||
Dividends in excess of cumulative earnings | (699,001 | ) | (689,028 | ) | |||
Total shareholders' equity | 1,274,323 | 1,284,970 | |||||
Noncontrolling interests | 125,045 | 114,629 | |||||
Total equity | 1,399,368 | 1,399,599 | |||||
$ | 6,280,136 | $ | 6,479,991 |
As of | |||||||
June 30, 2016 | December 31, 2015 | ||||||
ASSETS: | |||||||
Investment in real estate assets | $ | 2,184,268 | $ | 2,357,902 | |||
Accumulated depreciation | (549,935 | ) | (677,448 | ) | |||
1,634,333 | 1,680,454 | ||||||
Developments in progress | 17,709 | 59,592 | |||||
Net investment in real estate assets | 1,652,042 | 1,740,046 | |||||
Other assets | 346,600 | 168,540 | |||||
Total assets | $ | 1,998,642 | $ | 1,908,586 | |||
LIABILITIES: | |||||||
Mortgage and other indebtedness | $ | 1,333,293 | $ | 1,546,272 | |||
Other liabilities | 85,267 | 51,357 | |||||
Total liabilities | 1,418,560 | 1,597,629 | |||||
OWNERS' EQUITY: | |||||||
The Company | 236,005 | 184,868 | |||||
Other investors | 344,077 | 126,089 | |||||
Total owners' equity | 580,082 | 310,957 | |||||
Total liabilities and owners’ equity | $ | 1,998,642 | $ | 1,908,586 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Total revenues | $ | 62,854 | $ | 63,111 | $ | 127,058 | $ | 125,583 | |||||||
Depreciation and amortization | (22,248 | ) | (19,641 | ) | (42,858 | ) | (39,122 | ) | |||||||
Operating expenses | (18,333 | ) | (17,468 | ) | (38,405 | ) | (36,774 | ) | |||||||
Income from operations | 22,273 | 26,002 | 45,795 | 49,687 | |||||||||||
Interest income | 332 | 335 | 668 | 667 | |||||||||||
Interest expense | (14,181 | ) | (18,589 | ) | (27,670 | ) | (37,383 | ) | |||||||
Gain on extinguishment of debt | 63,294 | — | 63,294 | — | |||||||||||
Gain on sales of real estate assets | 136,019 | 619 | 216,978 | 1,434 | |||||||||||
Net income | $ | 207,737 | $ | 8,367 | $ | 299,065 | $ | 14,405 |
Company's Share for the Three Months Ended June 30, | Company's Share for the Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Total revenues | $ | 29,836 | $ | 32,958 | $ | 60,100 | $ | 65,793 | |||||||
Depreciation and amortization | (9,156 | ) | (10,303 | ) | (18,334 | ) | (20,620 | ) | |||||||
Operating expenses | (8,421 | ) | (9,045 | ) | (17,183 | ) | (18,873 | ) | |||||||
Income from operations | 12,259 | 13,610 | 24,583 | 26,300 | |||||||||||
Interest income | 256 | 257 | 512 | 512 | |||||||||||
Interest expense | (7,093 | ) | (9,587 | ) | (13,678 | ) | (19,272 | ) | |||||||
Gain on sales of real estate assets | 58,927 | 601 | 85,322 | 1,164 | |||||||||||
Net income | $ | 64,349 | $ | 4,881 | $ | 96,739 | $ | 8,704 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
EBITDA: | |||||||||||||||
Net income | $ | 73,097 | $ | 48,331 | $ | 114,989 | $ | 101,536 | |||||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 72,205 | 71,239 | 148,711 | 147,505 | |||||||||||
Depreciation and amortization from unconsolidated affiliates | 9,156 | 10,303 | 18,334 | 20,620 | |||||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (2,055 | ) | (2,151 | ) | (4,448 | ) | (4,782 | ) | |||||||
Interest expense | 53,187 | 58,754 | 108,418 | 117,911 | |||||||||||
Interest expense from unconsolidated affiliates | 7,093 | 9,587 | 13,678 | 19,272 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,678 | ) | (1,702 | ) | (3,357 | ) | (3,397 | ) | |||||||
Income and other taxes | 398 | 3,267 | 743 | 2,550 | |||||||||||
Gain on investment | — | — | — | (16,560 | ) | ||||||||||
Equity in earnings from disposals of unconsolidated affiliates | (29,235 | ) | — | (55,630 | ) | — | |||||||||
Gain on extinguishment of debt | — | (256 | ) | (6 | ) | (256 | ) | ||||||||
Loss on impairment | 43,493 | 2,781 | 63,178 | 2,781 | |||||||||||
Abandoned projects | 32 | — | 33 | 125 | |||||||||||
Net (income) loss attributable to noncontrolling interests in earnings of other consolidated subsidiaries | (1,695 | ) | (1,490 | ) | 1,432 | (2,359 | ) | ||||||||
Gain on depreciable property | (35,521 | ) | (13,403 | ) | (35,521 | ) | (13,470 | ) | |||||||
Company's share of total EBITDA | $ | 188,477 | $ | 185,260 | $ | 370,554 | $ | 371,476 | |||||||
Interest Expense: | |||||||||||||||
Interest expense | $ | 53,187 | $ | 58,754 | $ | 108,418 | $ | 117,911 | |||||||
Interest expense from unconsolidated affiliates | 7,093 | 9,587 | 13,678 | 19,272 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,678 | ) | (1,702 | ) | (3,357 | ) | (3,397 | ) | |||||||
Company's share of total interest expense | $ | 58,602 | $ | 66,639 | $ | 118,739 | $ | 133,786 | |||||||
Ratio of EBITDA to Interest Expense | 3.2 | x | 2.8 | x | 3.1 | x | 2.8 | x | |||||||
Reconciliation of EBITDA to Cash Flows Provided By Operating Activities (In thousands) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Company's share of total EBITDA | $ | 188,477 | $ | 185,260 | $ | 370,554 | $ | 371,476 | |||||||
Interest expense | (53,187 | ) | (58,754 | ) | (108,418 | ) | (117,911 | ) | |||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | 1,678 | 1,702 | 3,357 | 3,397 | |||||||||||
Income and other taxes | (398 | ) | (3,267 | ) | (743 | ) | (2,550 | ) | |||||||
Net amortization of deferred financing costs and debt premiums and discounts | 757 | 1,048 | 1,482 | 2,625 | |||||||||||
Net amortization of intangible lease assets and liabilities | 334 | 208 | (288 | ) | 33 | ||||||||||
Depreciation and interest expense from unconsolidated affiliates | (16,249 | ) | (19,890 | ) | (32,012 | ) | (39,892 | ) | |||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | 2,055 | 2,151 | 4,448 | 4,782 | |||||||||||
Noncontrolling interests in earnings of other consolidated subsidiaries | 1,695 | 1,490 | (1,432 | ) | 2,359 | ||||||||||
Gains on outparcel sales | (3,494 | ) | (770 | ) | (3,494 | ) | (1,460 | ) | |||||||
Equity in earnings of unconsolidated affiliates | (5,676 | ) | (4,881 | ) | (11,671 | ) | (8,704 | ) | |||||||
Distributions of earnings from unconsolidated affiliates | 4,469 | 5,242 | 8,582 | 9,780 | |||||||||||
Share-based compensation expense | 1,049 | 918 | 2,851 | 3,406 | |||||||||||
Provision for doubtful accounts | 119 | 566 | 2,223 | 1,938 | |||||||||||
Change in deferred tax assets | (419 | ) | (354 | ) | (320 | ) | 153 | ||||||||
Changes in operating assets and liabilities | 7,174 | 2,990 | (20,958 | ) | (10,039 | ) | |||||||||
Cash flows provided by operating activities | $ | 128,384 | $ | 113,659 | $ | 214,161 | $ | 219,393 |
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | ||||||||||||||
Operating Properties: | |||||||||||||||
Greenbrier Mall | Chesapeake, VA | Aug-16 | 5.91% | $ | 71,265 | $ | 71,265 | $ | — | ||||||
Midland Mall | Midland, MI | Aug-16 | 6.10% | 32,021 | 32,021 | — | |||||||||
Chesterfield Mall | Chesterfield, MO | Sep-16 | 5.74% | 140,000 | 140,000 | — | |||||||||
Dakota Square Mall | Minot, ND | Nov-16 | 6.23% | 55,199 | 55,199 | — | |||||||||
Southaven Towne Center | Southaven, MS | Jan-17 | 5.50% | 38,568 | 38,568 | — | |||||||||
Cary Towne Center | Cary, NC | Mar-17 | 8.50% | 47,199 | 47,199 | — | |||||||||
Acadiana Mall | Lafayette, LA | Apr-17 | 5.67% | 127,456 | 127,456 | — | |||||||||
Hamilton Corner | Chattanooga, TN | Apr-17 | 5.67% | 14,442 | 14,442 | — | |||||||||
Layton Hills Mall | Layton, UT | Apr-17 | 5.66% | 91,084 | 91,084 | — | |||||||||
The Plaza at Fayette Mall | Lexington, KY | Apr-17 | 5.67% | 37,627 | 37,627 | — | |||||||||
The Shoppes at St. Clair Square | Fairview Heights, IL | Apr-17 | 5.67% | 19,070 | 19,070 | — | |||||||||
The Outlet Shoppes at Atlanta - Ridgewalk | Woodstock, GA | Jun-17 | 4.97% | 2,556 | — | 2,556 | |||||||||
Statesboro Crossing | Statesboro, GA | Jun-17 | Jun-18 | 2.22% | 11,035 | — | 11,035 | ||||||||
The Outlet Shoppes at El Paso | El Paso, TX | Dec-17 | 7.06% | 62,916 | 62,916 | — | |||||||||
Kirkwood Mall | Bismarck, ND | Apr-18 | 5.75% | 38,311 | 38,311 | — | |||||||||
The Outlet Shoppes at El Paso - Phase II | El Paso, TX | Apr-18 | 3.21% | 6,811 | — | 6,811 | |||||||||
Hanes Mall | Winston-Salem, NC | Oct-18 | 6.99% | 147,667 | 147,667 | — | |||||||||
Hickory Point Mall | Forsyth, IL | Dec-18 | Dec-19 | 5.85% | 27,446 | 27,446 | — | ||||||||
The Outlet Shoppes at Oklahoma City - Phase II | Oklahoma City, OK | Apr-19 | Apr-21 | 3.21% | 5,675 | — | 5,675 | ||||||||
The Outlet Shoppes at Oklahoma City - Phase III | Oklahoma City, OK | Apr-19 | Apr-21 | 3.21% | 2,804 | — | 2,804 | ||||||||
Honey Creek Mall | Terre Haute, IN | Jul-19 | 8.00% | 27,306 | 27,306 | — | |||||||||
Volusia Mall | Daytona Beach, FL | Jul-19 | 8.00% | 46,973 | 46,973 | — | |||||||||
The Outlet Shoppes at Atlanta - Parcel Development | Woodstock, GA | Dec-19 | 2.97% | 2,142 | — | 2,142 | |||||||||
The Outlet Shoppes at Atlanta - Phase II | Woodstock, GA | Dec-19 | 2.95% | 4,063 | — | 4,063 | |||||||||
The Terrace | Chattanooga, TN | Jun-20 | 7.25% | 13,222 | 13,222 | — | |||||||||
Burnsville Center | Burnsville, MN | Jul-20 | 6.00% | 72,821 | 72,821 | — | |||||||||
The Outlet Shoppes of the Bluegrass - Phase II | Simpsonville, KY | Jul-20 | 2.96% | 10,101 | — | 10,101 | |||||||||
Parkway Place | Huntsville, AL | Jul-20 | 6.50% | 37,160 | 37,160 | — | |||||||||
Valley View Mall | Roanoke, VA | Jul-20 | 6.50% | 57,509 | 57,509 | — | |||||||||
Parkdale Mall & Crossing | Beaumont, TX | Mar-21 | 5.85% | 84,684 | 84,684 | — | |||||||||
EastGate Mall | Cincinnati, OH | Apr-21 | 5.83% | 37,835 | 37,835 | — | |||||||||
Hamilton Crossing & Expansion | Chattanooga, TN | Apr-21 | 5.99% | 9,494 | 9,494 | — | |||||||||
Park Plaza Mall | Little Rock, AR | Apr-21 | 5.28% | 88,013 | 88,013 | — | |||||||||
Wausau Center | Wausau, WI | Apr-21 | 5.85% | 17,689 | 17,689 | — | |||||||||
Fayette Mall | Lexington, KY | May-21 | 5.42% | 164,569 | 164,569 | — | |||||||||
Alamance Crossing - East | Burlington, NC | Jul-21 | 5.83% | 47,550 | 47,550 | — | |||||||||
Asheville Mall | Asheville, NC | Sep-21 | 5.80% | 70,750 | 70,750 | — | |||||||||
Cross Creek Mall | Fayetteville, NC | Jan-22 | 4.54% | 125,260 | 125,260 | — | |||||||||
The Outlet Shoppes at Oklahoma City | Oklahoma City, OK | Jan-22 | 5.73% | 54,573 | 54,573 | — | |||||||||
Northwoods Mall | North Charleston, SC | Apr-22 | 5.08% | 68,439 | 68,439 | — | |||||||||
Arbor Place | Atlanta (Douglasville), GA | May-22 | 5.10% | 114,589 | 114,589 | — | |||||||||
CBL Center | Chattanooga, TN | Jun-22 | 5.00% | 19,567 | 19,567 | — | |||||||||
Fashion Square | Saginaw, MI | Jun-22 | 4.95% | 38,237 | 38,237 | — | |||||||||
Jefferson Mall | Louisville, KY | Jun-22 | 4.75% | 66,676 | 66,676 | — | |||||||||
Southpark Mall | Colonial Heights, VA | Jun-22 | 4.85% | 62,824 | 62,824 | — | |||||||||
WestGate Mall | Spartanburg, SC | Jul-22 | 4.99% | 36,516 | 36,516 | — | |||||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | Nov-23 | 4.90% | 76,771 | 76,771 | — | |||||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | Dec-24 | 4.05% | 75,448 | 75,448 | — |
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | ||||||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | Oct-25 | 4.80% | 38,450 | 38,450 | — | |||||||||
Hamilton Place | Chattanooga, TN | Jun-26 | 4.36% | 107,000 | 107,000 | — | |||||||||
SUBTOTAL | 2,655,383 | 2,610,196 | 45,187 | ||||||||||||
Weighted-average interest rate | 5.61 | % | 5.66 | % | 2.98 | % | |||||||||
Debt Premiums (Discounts): (1) | 3,370 | 3,370 | — | ||||||||||||
Weighted-average interest rate | 4.59 | % | 4.59 | % | |||||||||||
Total Loans On Operating Properties And Debt Premiums (Discounts) | 2,658,753 | 2,613,566 | 45,187 | ||||||||||||
Weighted-average interest rate | 5.61 | % | 5.66 | % | 2.98 | % | |||||||||
Operating Partnership Debt: | |||||||||||||||
Unsecured credit facilities: | |||||||||||||||
$500,000 capacity | Oct-19 | Oct-20 | 1.65% | — | — | — | |||||||||
$100,000 capacity | Oct-19 | Oct-20 | 1.66% | 3,200 | — | 3,200 | |||||||||
$500,000 capacity | Oct-20 | 1.65% | 385,712 | — | 385,712 | ||||||||||
SUBTOTAL | 388,912 | — | 388,912 | ||||||||||||
Unsecured term loans: | |||||||||||||||
$350,000 Term Loan | Oct-17 | Oct-19 | 1.80% | 350,000 | — | 350,000 | |||||||||
$50,000 Term Loan | Feb-18 | 2.02% | 50,000 | — | 50,000 | ||||||||||
$400,000 Term Loan | Jul-18 | 1.96% | 400,000 | — | 400,000 | ||||||||||
SUBTOTAL | 800,000 | — | 800,000 | ||||||||||||
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% | (3,651 | ) | (3,651 | ) | — | ||||||||
Senior unsecured 4.60% notes | Oct-24 | 4.60% | 300,000 | 300,000 | — | ||||||||||
Senior unsecured 4.60% notes (discount) | Oct-24 | 4.60% | (64 | ) | (64 | ) | — | ||||||||
SUBTOTAL | 746,285 | 746,285 | — | ||||||||||||
Total Consolidated Debt | $ | 4,593,950 | (2) | $ | 3,359,851 | $ | 1,234,099 | ||||||||
Weighted-average interest rate | 4.53 | % | 5.51 | % | 1.86 | % | |||||||||
Plus CBL's Share Of Unconsolidated Affiliates' Debt: | |||||||||||||||
Governor's Square Mall | Clarksville, TN | Sep-16 | 8.23% | $ | 6,874 | $ | 6,874 | $ | — | ||||||
Kentucky Oaks Mall | Paducah, KY | Jan-17 | 5.27% | 9,956 | 9,956 | — | |||||||||
The Shops at Friendly Center | Greensboro, NC | Jan-17 | 5.90% | 19,061 | 19,061 | — | |||||||||
High Pointe Commons | Harrisburg, PA | May-17 | 5.74% | 6,239 | 6,239 | — | |||||||||
Gulf Coast Town Center - Phase III | Ft. Myers, FL | Jul-17 | 2.50% | 2,390 | — | 2,390 | |||||||||
High Pointe Commons - PetCo | Harrisburg, PA | Jul-17 | 3.20% | 9 | — | 9 | |||||||||
High Pointe Commons - Phase II | Harrisburg, PA | Jul-17 | 6.10% | 2,499 | 2,499 | — | |||||||||
Ambassador Town Center Infrastructure Improvements | Lafayette, LA | Dec-17 | Dec-19 | 2.47% | 11,700 | — | 11,700 | ||||||||
Hammock Landing - Phase I | West Melbourne, FL | Feb-18 | Feb-19 | 2.46% | 21,573 | — | 21,573 | ||||||||
Hammock Landing - Phase II | West Melbourne, FL | Feb-18 | Feb-19 | 2.46% | 8,339 | — | 8,339 | ||||||||
The Pavilion at Port Orange | Port Orange, FL | Feb-18 | Feb-19 | 2.46% | 29,174 | — | 29,174 | ||||||||
CoolSprings Galleria | Nashville, TN | Jun-18 | 6.98% | 51,123 | 51,123 | — | |||||||||
Triangle Town Center | Raleigh, NC | Dec-18 | Dec-20 | 4.00% | 17,087 | 17,087 | — | ||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 17,189 | 17,189 | — | |||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 3.22% | 685 | — | 685 | |||||||||
West County Center | St. Louis, MO | Dec-22 | 3.40% | 94,108 | 94,108 | — | |||||||||
Friendly Shopping Center | Greensboro, NC | Apr-23 | 3.48% | 49,842 | 49,842 | — | |||||||||
Ambassador Town Center | Lafayette, LA | Jun-23 | 3.22% | 30,979 | (3) | 30,979 | — | ||||||||
Coastal Grand Outparcel | Myrtle Beach, SC | Aug-24 | 4.09% | 2,806 | 2,806 | — | |||||||||
Coastal Grand | Myrtle Beach, SC | Aug-24 | 4.09% | 58,156 | 58,156 | — | |||||||||
Oak Park Mall | Overland Park, KS | Oct-25 | 3.97% | 138,000 | 138,000 | — | |||||||||
Fremaux Town Center - Phase I | Slidell, LA | Jun-26 | 3.69% | 47,450 | (4) | 47,450 | — | ||||||||
SUBTOTAL | 625,239 | (2) | 551,369 | 73,870 | |||||||||||
Property | Location | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | ||||||||||||||
Less Noncontrolling Interests' Share Of Consolidated Debt: | Noncontrolling Interest % | ||||||||||||||
Hamilton Corner | Chattanooga, TN | 10% | 5.67% | (1,444 | ) | (1,444 | ) | — | |||||||
The Outlet Shoppes at Atlanta - Ridgewalk | Woodstock, GA | 25% | 4.97% | (639 | ) | — | (639 | ) | |||||||
Statesboro Crossing | Statesboro, GA | 50% | 2.22% | (5,517 | ) | — | (5,517 | ) | |||||||
The Outlet Shoppes at El Paso | El Paso, TX | 25% | 7.06% | (15,729 | ) | (15,729 | ) | — | |||||||
The Outlet Shoppes at Oklahoma City - Phase II | Oklahoma City, OK | 25% | 3.21% | (1,419 | ) | — | (1,419 | ) | |||||||
The Terrace | Chattanooga, TN | 8% | 7.25% | (1,058 | ) | (1,058 | ) | — | |||||||
Hamilton Crossing & Expansion | Chattanooga, TN | 8% | 5.99% | (760 | ) | (760 | ) | — | |||||||
The Outlet Shoppes at Oklahoma City | Oklahoma City, OK | 25% | 5.73% | (13,643 | ) | (13,643 | ) | — | |||||||
CBL Center | Chattanooga, TN | 8% | 5.00% | (1,565 | ) | (1,565 | ) | — | |||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | 25% | 4.90% | (19,193 | ) | (19,193 | ) | — | |||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | 35% | 4.05% | (26,407 | ) | (26,407 | ) | — | |||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | 50% | 4.80% | (19,225 | ) | (19,225 | ) | — | |||||||
Hamilton Place | Chattanooga, TN | 10% | 4.36% | (10,700 | ) | (10,700 | ) | — | |||||||
(117,299 | ) | (109,724 | ) | (7,575 | ) | ||||||||||
Less Noncontrolling Interests' Share Of Debt Premiums: (1) | |||||||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 25% | 4.75% | (512 | ) | (512 | ) | — | |||||||
SUBTOTAL | (117,811 | ) | (2) | (110,236 | ) | (7,575 | ) | ||||||||
Company's Share Of Consolidated And Unconsolidated Debt | $ | 5,101,378 | (2) | $ | 3,800,984 | $ | 1,300,394 | ||||||||
Weighted-average interest rate | 4.46 | % | 5.34 | % | 1.89 | % | |||||||||
Total Debt of Unconsolidated Affiliates: | |||||||||||||||
Governor's Square Mall | Clarksville, TN | Sep-16 | 8.23% | $ | 14,471 | $ | 14,471 | $ | — | ||||||
Kentucky Oaks Mall | Paducah, KY | Jan-17 | 5.27% | 19,912 | 19,912 | — | |||||||||
The Shops at Friendly Center | Greensboro, NC | Jan-17 | 5.90% | 38,123 | 38,123 | — | |||||||||
High Pointe Commons | Harrisburg, PA | May-17 | 5.74% | 12,478 | 12,478 | — | |||||||||
Gulf Coast Town Center - Phase III | Ft. Myers, FL | Jul-17 | 2.50% | 4,780 | — | 4,780 | |||||||||
High Pointe Commons - PetCo | Harrisburg, PA | Jul-17 | 3.20% | 19 | — | 19 | |||||||||
High Pointe Commons - Phase II | Harrisburg, PA | Jul-17 | 6.10% | 4,998 | 4,998 | — | |||||||||
Ambassador Town Center Infrastructure Improvements | Lafayette, LA | Dec-17 | Dec-19 | 2.47% | 11,700 | — | 11,700 | ||||||||
Hammock Landing Phase I | West Melbourne, FL | Feb-18 | Feb-19 | 2.46% | 43,147 | — | 43,147 | ||||||||
Hammock Landing Phase II | West Melbourne, FL | Feb-18 | Feb-19 | 2.46% | 16,677 | — | 16,677 | ||||||||
The Pavilion at Port Orange | Port Orange, FL | Feb-18 | Feb-19 | 2.46% | 58,348 | — | 58,348 | ||||||||
CoolSprings Galleria | Nashville, TN | Jun-18 | 6.98% | 102,246 | 102,246 | — | |||||||||
Triangle Town Center | Raleigh, NC | Dec-18 | Dec-20 | 4.00% | 170,871 | 170,871 | — | ||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 34,378 | 34,378 | — | |||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 3.22% | 1,369 | — | 1,369 | |||||||||
West County Center | St. Louis, MO | Dec-22 | 3.40% | 188,215 | 188,215 | — | |||||||||
Friendly Shopping Center | Greensboro, NC | Apr-23 | 3.48% | 99,684 | 99,684 | — | |||||||||
Ambassador Town Center | Lafayette, LA | Jun-23 | 3.22% | 47,660 | (3) | 47,660 | — | ||||||||
Coastal Grand Outparcel | Myrtle Beach, SC | Aug-24 | 4.09% | 5,612 | 5,612 | — | |||||||||
Coastal Grand | Myrtle Beach, SC | Aug-24 | 4.09% | 116,311 | 116,311 | — | |||||||||
Oak Park Mall | Overland Park, KS | Oct-25 | 3.97% | 276,000 | 276,000 | — | |||||||||
Fremaux Town Center | Slidell, LA | Jun-26 | 3.69% | 73,000 | (4) | 73,000 | — | ||||||||
$ | 1,339,999 | $ | 1,203,959 | $ | 136,040 | ||||||||||
Weighted-average interest rate | 4.07 | % | 4.25 | % | 2.47 | % |
(1) | 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. |
(2) | See page 11 for unamortized deferred financing costs. |
(3) | The joint venture has an interest rate swap on a notional amount of $47,660, amortizing to $38,866 over the term of the swap, related to Ambassador Town Center to effectively fix the interest rate on that variable-rate loan. Therefore, this amount is currently reflected as having a fixed rate. |
(4) | The joint venture has an interest rate swap on a notional amount of $73,000, amortizing to $52,130 over the term of the swap, related to Fremaux Town Center to effectively fix the interest rate on that variable-rate loan. Therefore, this amount is currently reflected as having a fixed rate. |
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 | ||||||||||||||||
2016 | $ | 298,485 | $ | 6,874 | $ | — | $ | 305,359 | 5.99 | % | 5.96 | % | ||||||||||
2017 | 440,918 | 40,154 | (17,812 | ) | 463,260 | 9.08 | % | 6.06 | % | |||||||||||||
2018 | 653,824 | 51,123 | (5,517 | ) | 699,430 | 13.71 | % | 3.61 | % | |||||||||||||
2019 | 457,930 | 70,786 | — | 528,716 | 10.36 | % | 2.98 | % | ||||||||||||||
2020 | 579,725 | 17,087 | (1,058 | ) | 595,754 | 11.68 | % | 3.16 | % | |||||||||||||
2021 | 529,063 | — | (2,179 | ) | 526,884 | 10.33 | % | 5.58 | % | |||||||||||||
2022 | 586,681 | 111,982 | (15,208 | ) | 683,455 | 13.40 | % | 4.72 | % | |||||||||||||
2023 | 526,771 | 80,821 | (19,193 | ) | 588,399 | 11.53 | % | 4.96 | % | |||||||||||||
2024 | 375,448 | 60,962 | (26,407 | ) | 410,003 | 8.04 | % | 4.46 | % | |||||||||||||
2025 | 38,450 | 138,000 | (19,225 | ) | 157,225 | 3.08 | % | 4.07 | % | |||||||||||||
2026 | 107,000 | 47,450 | (10,700 | ) | 143,750 | 2.82 | % | 4.14 | % | |||||||||||||
Face Amount of Debt | 4,594,295 | 625,239 | (117,299 | ) | 5,102,235 | 100.02 | % | 4.46 | % | |||||||||||||
Net Premiums on Debt | (345 | ) | — | (512 | ) | (857 | ) | (0.02 | )% | — | % | |||||||||||
Total | $ | 4,593,950 | $ | 625,239 | $ | (117,811 | ) | $ | 5,101,378 | 100.00 | % | 4.46 | % |
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 | ||||||||||||||||
2016 | $ | 298,485 | $ | 6,874 | $ | — | $ | 305,359 | 5.99 | % | 5.96 | % | ||||||||||
2017 | 801,953 | 51,854 | (23,329 | ) | 830,478 | 16.28 | % | 4.19 | % | |||||||||||||
2018 | 670,235 | 127,296 | — | 797,531 | 15.63 | % | 3.62 | % | ||||||||||||||
2019 | 92,163 | — | (1,419 | ) | 90,744 | 1.78 | % | 7.06 | % | |||||||||||||
2020 | 576,525 | — | (1,058 | ) | 575,467 | 11.28 | % | 3.14 | % | |||||||||||||
2021 | 520,584 | — | (760 | ) | 519,824 | 10.19 | % | 5.61 | % | |||||||||||||
2022 | 586,681 | 111,982 | (15,208 | ) | 683,455 | 13.40 | % | 4.72 | % | |||||||||||||
2023 | 526,771 | 80,821 | (19,193 | ) | 588,399 | 11.53 | % | 4.96 | % | |||||||||||||
2024 | 375,448 | 60,962 | (26,407 | ) | 410,003 | 8.04 | % | 4.46 | % | |||||||||||||
2025 | 38,450 | 138,000 | (19,225 | ) | 157,225 | 3.08 | % | 4.07 | % | |||||||||||||
2026 | 107,000 | 47,450 | (10,700 | ) | 143,750 | 2.82 | % | 4.14 | % | |||||||||||||
Face Amount of Debt | 4,594,295 | 625,239 | (117,299 | ) | 5,102,235 | 100.02 | % | 4.46 | % | |||||||||||||
Net Premiums on Debt | (345 | ) | — | (512 | ) | (857 | ) | (0.02 | )% | — | % | |||||||||||
Total | $ | 4,593,950 | $ | 625,239 | $ | (117,811 | ) | $ | 5,101,378 | 100.00 | % | 4.46 | % |
Unsecured Debt Covenant Compliance Ratios | Required | Actual | ||
Debt to total asset value | < 60% | 48.3% | ||
Unencumbered asset value to unsecured indebtedness | > 1.6x | 2.3x | ||
Unencumbered NOI to unsecured interest expense | > 1.75x | 5.0x | ||
EBITDA to fixed charges (debt service) | > 1.5x | 2.4x |
Senior Unsecured Notes Compliance Ratios | Required | Actual | ||
Total debt to total assets | < 60% | 53% | ||
Secured debt to total assets | < 45% | 31% | ||
Total unencumbered assets to unsecured debt | > 150% | 223% | ||
Consolidated income available for debt service to annual debt service charge | > 1.5x | 3.3x |
TIER 1 Sales ≥ $375 per square foot | |||||||||||||||||||||
Property | Location | Total GLA | Stabilized Mall Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Six Months Ended 6/30/16 | ||||||||||||||||
6/30/16 | 6/30/15 | 6/30/16 | 6/30/15 | ||||||||||||||||||
Acadiana Mall | Lafayette, LA | 991,303 | |||||||||||||||||||
Coastal Grand | Myrtle Beach, SC | 1,040,040 | |||||||||||||||||||
CoolSprings Galleria | Nashville, TN | 1,142,777 | |||||||||||||||||||
Cross Creek Mall | Fayetteville, NC | 1,045,311 | |||||||||||||||||||
Dakota Square Mall | Minot, ND | 741,193 | |||||||||||||||||||
Fayette Mall | Lexington, KY | 1,203,998 | |||||||||||||||||||
Friendly Center and The Shops at Friendly | Greensboro, NC | 1,132,352 | |||||||||||||||||||
Governor's Square | Clarksville, TN | 737,477 | |||||||||||||||||||
Hamilton Place | Chattanooga, TN | 1,150,185 | |||||||||||||||||||
Hanes Mall | Winston-Salem, NC | 1,477,242 | |||||||||||||||||||
Harford Mall | Bel Air, MD | 505,483 | |||||||||||||||||||
Jefferson Mall | Louisville, KY | 894,132 | |||||||||||||||||||
Mall del Norte | Laredo, TX | 1,178,220 | |||||||||||||||||||
Mayfaire Town Center | Wilmington, NC | 589,000 | |||||||||||||||||||
Oak Park Mall | Overland Park, KS | 1,600,497 | |||||||||||||||||||
The Outlet Shoppes at Atlanta (2) | Woodstock, GA | 414,506 | |||||||||||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 431,134 | |||||||||||||||||||
The Outlet Shoppes of the Bluegrass (2) | Simpsonville, KY | 428,073 | |||||||||||||||||||
Park Plaza | Little Rock, AR | 540,167 | |||||||||||||||||||
Post Oak Mall | College Station, TX | 759,632 | |||||||||||||||||||
St. Clair Square | Fairview Heights, IL | 1,084,258 | |||||||||||||||||||
Sunrise Mall | Brownsville, TX | 801,392 | |||||||||||||||||||
Volusia Mall | Daytona Beach, FL | 1,067,694 | |||||||||||||||||||
West County Center | Des Peres, MO | 1,197,210 | |||||||||||||||||||
West Towne Mall | Madison, WI | 823,505 | |||||||||||||||||||
Total Tier 1 Malls | 22,976,781 | $ | 440 | $ | 440 | 94.4 | % | 93.0 | % | 43.4 | % |
TIER 2 Sales of ≥ $300 to < $375 per square foot | ||||||||||||||
Property | Location | Total GLA | Stabilized Mall Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Six Months Ended 6/30/16 | |||||||||
6/30/16 | 06/30/15 | 6/30/16 | 6/30/15 | |||||||||||
Arbor Place | Atlanta (Douglasville), GA | 1,163,432 | ||||||||||||
Asheville Mall | Asheville, NC | 974,552 | ||||||||||||
Brookfield Square | Brookfield, WI | 1,008,297 | ||||||||||||
Burnsville Center | Burnsville, MN | 1,046,359 | ||||||||||||
CherryVale Mall | Rockford, IL | 849,253 | ||||||||||||
East Towne Mall | Madison, WI | 792,165 | ||||||||||||
EastGate Mall | Cincinnati, OH | 860,830 | ||||||||||||
Eastland Mall | Bloomington, IL | 760,833 | ||||||||||||
Frontier Mall | Cheyenne, WY | 524,239 | ||||||||||||
Greenbrier Mall | Chesapeake, VA | 890,851 |
TIER 2 Sales of ≥ $300 to < $375 per square foot | |||||||||||||||||||||
Property | Location | Total GLA | Stabilized Mall Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Six Months Ended 6/30/16 | ||||||||||||||||
6/30/16 | 06/30/15 | 6/30/16 | 6/30/15 | ||||||||||||||||||
Honey Creek Mall | Terre Haute, IN | 677,322 | |||||||||||||||||||
Imperial Valley Mall | El Centro, CA | 763,494 | |||||||||||||||||||
Kirkwood Mall | Bismarck, ND | 843,640 | |||||||||||||||||||
Laurel Park Place | Livonia, MI | 494,886 | |||||||||||||||||||
Layton Hills Mall | Layton, UT | 573,945 | |||||||||||||||||||
Meridian Mall | Lansing, MI | 972,186 | |||||||||||||||||||
Mid Rivers Mall | St. Peters, MO | 1,076,184 | |||||||||||||||||||
Northgate Mall | Chattanooga, TN | 762,404 | |||||||||||||||||||
Northpark Mall | Joplin, MO | 938,027 | |||||||||||||||||||
Northwoods Mall | North Charleston, SC | 771,677 | |||||||||||||||||||
Old Hickory Mall | Jackson, TN | 538,991 | |||||||||||||||||||
The Outlet Shoppes at Oklahoma City | Oklahoma City, OK | 475,862 | |||||||||||||||||||
Parkdale Mall | Beaumont, TX | 1,248,667 | |||||||||||||||||||
Parkway Place | Huntsville, AL | 648,277 | |||||||||||||||||||
Pearland Town Center | Pearland, TX | 646,796 | |||||||||||||||||||
Richland Mall | Waco, TX | 686,628 | |||||||||||||||||||
South County Center | St. Louis, MO | 1,044,428 | |||||||||||||||||||
Southaven Towne Center | Southaven, MS | 567,640 | |||||||||||||||||||
Southpark Mall | Colonial Heights, VA | 672,975 | |||||||||||||||||||
Turtle Creek Mall | Hattiesburg, MS | 846,121 | |||||||||||||||||||
Valley View Mall | Roanoke, VA | 837,390 | |||||||||||||||||||
WestGate Mall | Spartanburg, SC | 954,084 | |||||||||||||||||||
Westmoreland Mall | Greensburg, PA | 979,576 | |||||||||||||||||||
York Galleria | York, PA | 751,902 | |||||||||||||||||||
Total Tier 2 Malls | 27,643,913 | $ | 345 | $ | 340 | 90.8 | % | 88.6 | % | 44.3 | % |
TIER 3 Sales < $300 per square foot | |||||||||||||||||||||
Property | Location | Total GLA | Stabilized Mall Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Six Months Ended 6/30/16 | ||||||||||||||||
6/30/16 | 6/30/15 | 6/30/16 | 6/30/15 | ||||||||||||||||||
Alamance Crossing | Burlington, NC | 886,700 | |||||||||||||||||||
College Square | Morristown, TN | 450,398 | |||||||||||||||||||
Fashion Square | Saginaw, MI | 748,483 | |||||||||||||||||||
Foothills Mall | Maryville, TN | 463,751 | |||||||||||||||||||
Janesville Mall | Janesville, WI | 600,710 | |||||||||||||||||||
Kentucky Oaks Mall | Paducah, KY | 1,060,586 | |||||||||||||||||||
The Lakes Mall | Muskegon, MI | 587,973 | |||||||||||||||||||
Monroeville Mall | Pittsburgh, PA | 1,077,520 | |||||||||||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | 247,622 | |||||||||||||||||||
Randolph Mall | Asheboro, NC | 380,559 | |||||||||||||||||||
Regency Mall | Racine, WI | 789,368 | |||||||||||||||||||
Stroud Mall | Stroudsburg, PA | 403,258 | |||||||||||||||||||
Walnut Square | Dalton, GA | 495,970 | |||||||||||||||||||
Total Tier 3 Malls | 8,192,898 | $ | 269 | $ | 264 | 85.7 | % | 86.5 | % | 8.5 | % | ||||||||||
Total Mall Portfolio | 58,813,592 | $ | 377 | $ | 373 | 91.6 | % | 90.0 | % | 96.2 | % |
Excluded Malls (3) | ||||||||||||||||
Property | Category | Location | Total GLA | Stabilized Mall Sales Per Square Foot for the Twelve Months Ended (1) | Mall Occupancy | % of Total Mall NOI for the Six Months Ended 6/30/16 | ||||||||||
6/30/16 | 6/30/15 | 6/30/16 | 6/30/15 | |||||||||||||
Lender Malls: | ||||||||||||||||
Chesterfield Mall | Lender | Chesterfield, MO | 1,264,857 | |||||||||||||
Midland Mall | Lender | Midland, MI | 473,634 | |||||||||||||
Wausau Center | Lender | Wausau, WI | 423,774 | |||||||||||||
2,162,265 | ||||||||||||||||
Other Excluded Malls: | ||||||||||||||||
Cary Towne Center | Repositioning | Cary, NC | 927,886 | |||||||||||||
Hickory Point Mall | Repositioning | Forsyth, IL | 815,326 | |||||||||||||
River Ridge Mall | Minority Interest | Lynchburg, VA | 763,158 | |||||||||||||
Triangle Town Center | Minority Interest | Raleigh, NC | 1,253,577 | |||||||||||||
3,759,947 | ||||||||||||||||
Total Excluded Malls | 5,922,212 | N/A | N/A | N/A | N/A | 3.8 | % |
(1) | Represents same-store sales per square foot for mall tenants 10,000 square feet or less for stabilized malls. |
(2) | The Outlet Shoppes at Atlanta and The Outlet Shoppes of the Bluegrass are non-stabilized malls and are excluded from Sales Per Square Foot. |
(3) | Excluded Malls represent malls that fall in the following categories, for which operational metrics are excluded: |
• | Lender Malls - Malls for which we are working or intend to work with the lender on the terms of the loan secured by the related Property. |
• | Repositioning Malls - Malls where we have determined that the current format of the Property no longer represents the best use of the Property and we are in the process of evaluating alternative strategies for the Property, which may include major redevelopment or an alternative retail or non-retail format, or after evaluating alternative strategies for the Property, we have determined that the Property no longer meets our criteria for long-term investment. |
• | Minority Interest Malls - Malls in which we own an interest of 25% or less. |
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) | 513,851 | $ | 42.60 | $ | 44.20 | 3.8 | % | $ | 45.90 | 7.7 | % | ||||||||||
Stabilized malls | 473,342 | 44.10 | 45.75 | 3.7 | % | 47.54 | 7.8 | % | |||||||||||||
New leases | 167,979 | 36.72 | 43.75 | 19.1 | % | 46.20 | 25.8 | % | |||||||||||||
Renewal leases | 305,363 | 48.18 | 46.84 | (2.8 | )% | 48.28 | 0.2 | % | |||||||||||||
Year-to-Date: | |||||||||||||||||||||
All Property Types (1) | 1,066,765 | $ | 40.80 | $ | 41.62 | 2.0 | % | $ | 43.00 | 5.4 | % | ||||||||||
Stabilized malls | 994,143 | 42.10 | 42.88 | 1.9 | % | 44.31 | 5.2 | % | |||||||||||||
New leases | 280,218 | 38.20 | 45.26 | 18.5 | % | 47.83 | 25.2 | % | |||||||||||||
Renewal leases | 713,925 | 43.62 | 41.94 | (3.9 | )% | 42.93 | (1.6 | )% |
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 June 30, | |||||||||||
Quarter: | Square Feet | 2016 | 2015 | ||||||||
Operating portfolio: | Same-center malls | $ | 31.82 | $ | 31.42 | ||||||
New leases | 492,265 | Stabilized malls | 31.95 | 31.26 | |||||||
Renewal leases | 673,185 | Non-stabilized malls (4) | 26.06 | 25.19 | |||||||
Development portfolio: | Associated centers (5) | 13.99 | 13.23 | ||||||||
New leases | 378,382 | Community centers (5) | 15.60 | 15.74 | |||||||
Total leased | 1,543,832 | Office buildings (5) | 19.67 | 19.50 | |||||||
Year-to-Date: | |||||||||||
Operating Portfolio: | |||||||||||
New leases | 821,864 | ||||||||||
Renewal leases | 1,434,110 | ||||||||||
Development Portfolio: | |||||||||||
New leases | 510,068 | ||||||||||
Total leased | 2,766,042 |
(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 June 30, 2016, including the impact of any rent concessions. |
(4) | Includes The Outlet Shoppes of the Bluegrass and The Outlet Shoppes at Atlanta as of June 30, 2016 and The Outlet Shoppes of the Bluegrass, The Outlet Shoppes at Atlanta and Fremaux Town Center as of June 30, 2015. |
(5) | Includes annual base rent per square foot for all leased locations regardless of size. |
Number of Leases | Square Feet | Term (in years) | Initial Rent PSF | Average Rent PSF | Expiring Rent PSF | Initial Rent Spread | Average Rent Spread | ||||||||||||||||||||||||||||
Commencement 2016: | |||||||||||||||||||||||||||||||||||
New | 104 | 324,391 | 8.65 | $ | 48.76 | $ | 51.42 | $ | 40.46 | $ | 8.30 | 20.5 | % | $ | 10.96 | 27.1 | % | ||||||||||||||||||
Renewal | 401 | 1,190,328 | 3.67 | 40.81 | 41.65 | 41.44 | (0.63 | ) | (1.5 | )% | 0.21 | 0.5 | % | ||||||||||||||||||||||
Commencement 2016 Total | 505 | 1,514,719 | 4.70 | $ | 42.51 | $ | 43.74 | $ | 41.23 | $ | 1.28 | 3.1 | % | $ | 2.51 | 6.1 | % | ||||||||||||||||||
Commencement 2017: | |||||||||||||||||||||||||||||||||||
New | 7 | 14,147 | 9.70 | $ | 73.43 | $ | 77.84 | $ | 67.62 | $ | 5.81 | 8.6 | % | $ | 10.22 | 15.1 | % | ||||||||||||||||||
Renewal | 40 | 113,927 | 4.38 | 40.97 | 41.77 | 39.64 | 1.33 | 3.4 | % | 2.13 | 5.4 | % | |||||||||||||||||||||||
Commencement 2017 Total | 47 | 128,074 | 5.17 | $ | 44.56 | $ | 45.76 | $ | 42.73 | $ | 1.83 | 4.3 | % | $ | 3.03 | 7.1 | % | ||||||||||||||||||
Total 2016/2017 | 552 | 1,642,793 | 4.74 | $ | 42.67 | $ | 43.90 | $ | 41.35 | $ | 1.32 | 3.2 | % | $ | 2.55 | 6.2 | % | ||||||||||||||||||
Tenant | Number of Stores | Square Feet | Percentage of Total Annualized Revenues | ||||||||
1 | L Brands, Inc (1) | 159 | 870,934 | 3.53% | |||||||
2 | Signet Jewelers Limited (2) | 213 | 312,566 | 2.82% | |||||||
3 | Ascena Retail Group, Inc. (3) | 206 | 1,043,671 | 2.54% | |||||||
4 | Foot Locker, Inc. | 130 | 575,960 | 2.29% | |||||||
5 | AE Outfitters Retail Company | 78 | 481,521 | 1.93% | |||||||
6 | Dick's Sporting Goods, Inc. (4) | 28 | 1,609,274 | 1.80% | |||||||
7 | Genesco Inc. (5) | 191 | 306,750 | 1.71% | |||||||
8 | The Gap, Inc. | 61 | 687,853 | 1.54% | |||||||
9 | Luxottica Group, S.P.A. (6) | 117 | 264,346 | 1.23% | |||||||
10 | Express Fashions | 43 | 358,701 | 1.21% | |||||||
11 | Forever 21 Retail, Inc. | 23 | 460,658 | 1.20% | |||||||
12 | Abercrombie & Fitch, Co. | 50 | 339,998 | 1.15% | |||||||
13 | JC Penney Company, Inc. (7) | 58 | 6,752,125 | 1.11% | |||||||
14 | Finish Line, Inc. | 57 | 299,298 | 1.07% | |||||||
15 | Charlotte Russe Holding, Inc. | 54 | 347,229 | 1.04% | |||||||
16 | The Buckle, Inc. | 51 | 264,369 | 1.02% | |||||||
17 | Aeropostale, Inc. | 68 | 259,326 | 0.93% | |||||||
18 | Best Buy Co., Inc. (8) | 58 | 469,920 | 0.87% | |||||||
19 | Claire's Stores, Inc. | 107 | 134,691 | 0.79% | |||||||
20 | Shoe Show, Inc. | 50 | 641,938 | 0.78% | |||||||
21 | Cinemark | 10 | 524,803 | 0.77% | |||||||
22 | Barnes & Noble Inc. | 20 | 604,028 | 0.76% | |||||||
23 | H&M | 27 | 552,091 | 0.75% | |||||||
24 | The Children's Place Retail Stores, Inc. | 60 | 260,834 | 0.73% | |||||||
25 | New York & Company, Inc. | 37 | 249,047 | 0.69% | |||||||
1,956 | 18,671,931 | 34.26% | |||||||||
(1) | L Brands, Inc operates Victoria's Secret, PINK, White Barn Candle 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, Rogers Jewelers, Zales, Peoples and Piercing Pagoda. | ||||||||||
(3) | Ascena Retail Group, Inc. operates Justice, Dressbarn, Maurices, Lane Bryant and Catherines, Ann Taylor, LOFT, and Lou & Grey. | ||||||||||
(4) | Dick's Sporting Goods, Inc. operates Dick's Sporting Goods, Golf Galaxy and Field & Stream stores. | ||||||||||
(5) | Genesco Inc. operates Journey's, Underground by Journeys, Shi by Journey's, Johnston & Murphy, Hat Shack, Lids, Hat Zone and Clubhouse stores. | ||||||||||
(6) | Luxottica Group, S.P.A. operates Lenscrafters, Sunglass Hut, and Pearle Vision. | ||||||||||
(7) | JC Penney Co., Inc. owns 30 of these stores. The above chart includes one leased store at College Square Mall that the Company terminated in April 2016 for redevelopment. | ||||||||||
(8) | Best Buy Co., Inc. operates Best Buy and Best Buy Mobile. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Tenant allowances (1) | $ | 21,251 | $ | 19,344 | $ | 32,896 | $ | 32,040 | |||||||
Renovations (2) | 1,507 | 9,883 | 4,621 | 12,046 | |||||||||||
Deferred maintenance: (3) | |||||||||||||||
Parking lot and parking lot lighting | 2,045 | 5,535 | 2,765 | 7,447 | |||||||||||
Roof repairs and replacements | 374 | 1,178 | 1,043 | 2,109 | |||||||||||
Other capital expenditures | 1,703 | 1,093 | 5,828 | 2,159 | |||||||||||
Total deferred maintenance expenditures | 4,122 | 7,806 | 9,636 | 11,715 | |||||||||||
Total capital expenditures | $ | 26,880 | $ | 37,033 | $ | 47,153 | $ | 55,801 |
(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. |
2016 | 2015 | ||||||
Quarter ended: | |||||||
March 31, | $ | 658 | $ | 695 | |||
June 30, | 426 | 284 | |||||
September 30, | 806 | ||||||
December 31, | 880 | ||||||
$ | 1,084 | $ | 2,665 |
CBL's Share of | |||||||||||||||||||
Property | Location | CBL Ownership Interest | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | Opening Date | Initial Unleveraged Yield | ||||||||||||
Community Center: | |||||||||||||||||||
Ambassador Town Center | Lafayette, LA | 65% | 431,139 | $ | 40,295 | $ | 28,929 | Apr-16 | 8.5% | ||||||||||
Mall Expansion: | |||||||||||||||||||
Kirkwood Mall - Self Development (Panera Bread, Verizon, Caribou Coffee) | Bismarck, ND | 100% | 12,570 | 3,702 | 3,382 | Mar-16 | 10.5% | ||||||||||||
Mall Redevelopment: | |||||||||||||||||||
CoolSprings Galleria - Sears Redevelopment (American Girl, Cheesecake Factory) | Nashville, TN | 50% | 193,137 | 37,091 | 9,269 | May-16 | 7.2% | ||||||||||||
Total Properties Opened | 636,846 | $ | 81,088 | $ | 41,580 |
CBL's Share of | |||||||||||||||||||
Property | Location | CBL Ownership Interest | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | Expected Opening Date | Initial Unleveraged Yield | ||||||||||||
Outlet Center: | |||||||||||||||||||
The Outlet Shoppes at Laredo | Laredo, TX | 65% | 357,756 | $ | 69,630 | $ | 10,515 | Spring-17 | 9.6% | ||||||||||
Mall Expansions: | |||||||||||||||||||
Dakota Square expansion | Minot, ND | 100% | 23,922 | 7,453 | 1,068 | Fall-16 | 7.5% | ||||||||||||
Friendly Center - Cheesecake Factory | Greensboro, NC | 50% | 9,156 | 2,307 | 807 | Fall-16 | 10.8% | ||||||||||||
Friendly Center - Shops | Greensboro, NC | 50% | 12,765 | 2,638 | 1,423 | Fall-16 | 8.1% | ||||||||||||
Hamilton Place - Theatre | Chattanooga, TN | 100% | 30,169 | 5,409 | 3,085 | Fall-16 | 9.1% | ||||||||||||
Mayfaire Town Center - Phase I | Wilmington, NC | 100% | 67,766 | 19,072 | 2,791 | Fall-16 | 8.4% | ||||||||||||
143,778 | 36,879 | 9,174 | |||||||||||||||||
Community Center Expansions: | |||||||||||||||||||
The Forum at Grandview - Expansion | Madison, MS | 75% | 24,516 | 5,624 | 653 | Fall-16 | 8.5% | ||||||||||||
Hammock Landing - Expansion | West Melbourne, FL | 50% | 23,717 | 2,351 | 1,374 | Fall-16 | 10.7% | ||||||||||||
High Pointe Commons - (Petco) | Harrisburg, PA | 50% | 12,885 | 1,055 | 452 | Oct-16 | 10.5% | ||||||||||||
61,118 | 9,030 | 2,479 | |||||||||||||||||
Mall Redevelopments: | |||||||||||||||||||
College Square - JCP Redevelopment (Dick's/ULTA) | Morristown, TN | 100% | 90,879 | 14,992 | 5,677 | Fall-16 | 7.6% | ||||||||||||
Northpark Mall - (Dunham's Sports) | Joplin, MO | 100% | 80,524 | 3,362 | 1,523 | Fall-16 | 9.5% | ||||||||||||
Oak Park Mall - Self Development | Overland Park, KS | 50% | 6,735 | 1,210 | 915 | Summer-16 | 8.2% | ||||||||||||
Randolph Mall - JCP Redevelopment (Ross/ULTA) | Asheboro, NC | 100% | 33,796 | 4,372 | 3,928 | Summer-16 | 7.8% | ||||||||||||
York Galleria Mall - Partial JCP Redevelopment (H&M/Shops) | York, PA | 100% | 42,672 | 5,582 | 913 | Fall-16 | 7.8% | ||||||||||||
York Galleria Mall - Partial JCP Redevelopment (Gold's Gym/Shops) | York, PA | 100% | 40,832 | 5,658 | 90 | Spring-17 | 12.8% | ||||||||||||
295,438 | 35,176 | 13,046 | |||||||||||||||||
Total Properties Under Development | 858,090 | $ | 150,715 | $ | 35,214 | ||||||||||||||
(1) Total Cost is presented net of reimbursements to be received. | |||||||||||||||||||
(2) Cost to Date does not reflect reimbursements until they are received. |