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)) |
(a) | Financial Statements of Businesses Acquired |
(b) | Pro Forma Financial Information |
(c) | Shell Company Transactions |
(d) | Exhibits |
Page | ||
Reconciliations of Supplementary Non-GAAP Financial Measures: | ||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2018 | 2017 | % | 2018 | 2017 | % | ||||||||||||||||
Net income (loss) attributable to common shareholders per diluted share | $ | (0.20 | ) | $ | 0.18 | (211.1 | )% | $ | (0.26 | ) | $ | 0.31 | (183.9 | )% | |||||||
Funds from Operations ("FFO") per diluted share | $ | 0.46 | $ | 0.58 | (20.7 | )% | $ | 0.88 | $ | 1.12 | (21.4 | )% | |||||||||
FFO, as adjusted, per diluted share (1) | $ | 0.46 | $ | 0.50 | (8.0 | )% | $ | 0.88 | $ | 1.02 | (13.7 | )% | |||||||||
(1) For a reconciliation of FFO to FFO, as adjusted, for the periods presented, please refer to the footnotes to the Company's reconciliation of net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 10 of this news release. |
• | FFO per diluted share, as adjusted, was $0.46 for the second quarter 2018, compared with $0.50 per share for the second quarter 2017. Second quarter 2018 FFO per share was impacted by approximately $0.01 per share of dilution from asset sales completed in 2017 and year-to-date, $0.07 per share of lower property NOI, $0.02 per share higher corporate interest expense, $0.03 per share lower property level interest expense, $0.01 lower G&A expense and $0.02 per share lower abandoned project expense. |
• | Total Portfolio Same-center NOI declined 6.9% for the second quarter 2018 and 6.8% for the six-months ended June 30, 2018. |
• | Portfolio occupancy was 91.1% as of June 30, 2018, compared with 91.6% as of June 30, 2017. Same-center mall occupancy was 89.5% as of June 30, 2018 compared with 90.4% as of June 30, 2017. |
• | Year-to-date, CBL has completed gross asset sales of $38.3 million including the sale of a Tier 3 mall for a gross sales price of $18.0 million in July. |
• | Same-center sales per square foot for the stabilized mall portfolio for the twelve-months ended June 30, 2018, were $376 per square foot compared with $375 per square foot for the prior-year period. |
• | Redevelopment activity is underway at eight properties with two redevelopment projects opened during the quarter and two new projects added to the pipeline. |
1 |
Three Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | |||
Portfolio same-center NOI | (6.9)% | (6.8)% | ||
Mall same-center NOI | (6.9)% | (7.0)% |
(1) | CBL's definition of same-center NOI excludes the impact of lease termination fees and certain non-cash items of straight-line rents, write-offs of landlord inducements and net amortization of acquired above and below market leases. |
• | Same-center NOI declined $11.5 million, due to an $8.3 million decrease in revenue and a $3.1 million increase in operating expenses. |
• | Minimum rents and tenant reimbursements declined $8.7 million during the quarter, primarily related to store closures and rent concessions for tenants in bankruptcy. |
• | Percentage rents increased $0.5 million compared with the prior year quarter due to portfolio sales growth. |
• | Property operating expenses increased $0.8 million, including a $0.5 million increase in bad debt expense. Maintenance and repair expense increased $1.1 million, including a $0.5 million increase in snow removal, and real estate tax expenses increased $1.2 million. The variance in real estate tax expense was primarily due to a favorable tax assessment that was received in the prior-year period. |
As of June 30, | |||
2018 | 2017 | ||
Portfolio occupancy | 91.1% | 91.6% | |
Mall portfolio | 89.2% | 90.2% | |
Same-center malls | 89.5% | 90.4% | |
Stabilized malls | 89.5% | 90.5% | |
Non-stabilized malls (2) | 71.9% | 81.8% | |
Associated centers | 97.9% | 95.5% | |
Community centers | 96.9% | 97.0% |
(1) | Occupancy for malls represents percentage of mall store gross leasable area 20,000 square feet and under occupied. Occupancy for associated and community centers represents percentage of gross leasable area occupied. |
(2) | Represents occupancy for The Outlet Shoppes at Laredo as of June 30, 2018. Represents occupancy for The Outlet Shoppes of the Bluegrass and The Outlet Shoppes at Laredo as of June 30, 2017. |
% Change in Average Gross Rent Per Square Foot: | |||||
Three Months Ended June 30, 2018 | Six Months Ended June 30, 2018 | ||||
Stabilized Malls | (8.2 | )% | (10.6 | )% | |
New leases | (1.4 | )% | (0.5 | )% | |
Renewal leases | (9.9 | )% | (12.6 | )% |
Twelve Months Ended June 30, | |||||||||
2018 | 2017 | % Change | |||||||
Stabilized mall same-center sales per square foot | $ | 376 | $ | 375 | 0.3% | ||||
Stabilized mall sales per square foot | $ | 376 | $ | 373 | 0.8% |
Prior Tenant | New Tenant(s) | ||
Brookfield Square | Sears | Marcus Theaters, Whirlyball | |
Eastland Mall | JCPenney | H&M, Outback, Planet Fitness | |
Frontier Mall | Sports Authority | Planet Fitness | |
Jefferson Mall | Macy's | Round 1 | |
York Galleria | JCPenney | Marshalls | |
Hanes Mall | Shops | Dave & Busters |
Low | High | ||
2018 FFO, as adjusted, per share (Includes the Reserve) | $1.70 | $1.80 | |
2018 Change in Same-Center NOI ("SC NOI") (Includes the Reserve) | (6.75)% | (5.25)% | |
Reserve for unbudgeted lost rents included in SC NOI and FFO | $20.0 million | $10.0 million | |
Gain on outparcel sales | $7.0 million | $10.0 million | |
Estimated 2018 Dividend Per Common Share (1) | $0.80 | $0.80 | |
(1) Subject to Board approval |
Low | High | ||||||
Expected diluted earnings per common share | $ | (0.25 | ) | $ | (0.15 | ) | |
Adjust to fully converted shares from common shares | 0.03 | 0.02 | |||||
Expected earnings per diluted, fully converted common share | (0.22 | ) | (0.13 | ) | |||
Add: depreciation and amortization | 1.60 | 1.60 | |||||
Less: gain on depreciable property | (0.01 | ) | (0.01 | ) | |||
Add: loss on impairment | 0.35 | 0.35 | |||||
Add: noncontrolling interest in loss of Operating Partnership | (0.03 | ) | (0.02 | ) | |||
Expected FFO, as adjusted, per diluted, fully converted common share | $ | 1.69 | $ | 1.79 | |||
Adjustment for certain significant items | 0.01 | 0.01 | |||||
Expected adjusted FFO per diluted, fully converted common share | $ | 1.70 | $ | 1.80 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
REVENUES: | |||||||||||||||
Minimum rents | $ | 148,488 | $ | 157,609 | $ | 298,849 | $ | 317,359 | |||||||
Percentage rents | 2,138 | 1,738 | 4,181 | 4,127 | |||||||||||
Other rents | 2,496 | 3,729 | 4,551 | 7,381 | |||||||||||
Tenant reimbursements | 56,614 | 62,231 | 117,227 | 129,522 | |||||||||||
Management, development and leasing fees | 2,643 | 2,577 | 5,364 | 6,029 | |||||||||||
Other | 2,219 | 1,349 | 4,626 | 2,828 | |||||||||||
Total revenues | 214,598 | 229,233 | 434,798 | 467,246 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Property operating | 29,527 | 30,041 | 62,353 | 64,955 | |||||||||||
Depreciation and amortization | 73,566 | 82,509 | 145,316 | 153,729 | |||||||||||
Real estate taxes | 20,456 | 18,687 | 42,304 | 40,770 | |||||||||||
Maintenance and repairs | 12,059 | 11,716 | 25,238 | 25,068 | |||||||||||
General and administrative | 13,490 | 15,752 | 31,794 | 31,834 | |||||||||||
Loss on impairment | 51,983 | 43,203 | 70,044 | 46,466 | |||||||||||
Other | 245 | 5,019 | 339 | 5,019 | |||||||||||
Total operating expenses | 201,326 | 206,927 | 377,388 | 367,841 | |||||||||||
Income from operations | 13,272 | 22,306 | 57,410 | 99,405 | |||||||||||
Interest and other income | 218 | 31 | 431 | 1,435 | |||||||||||
Interest expense | (54,203 | ) | (55,065 | ) | (107,970 | ) | (111,266 | ) | |||||||
Gain on extinguishment of debt | — | 20,420 | — | 24,475 | |||||||||||
Gain (loss) on investments | 387 | (5,843 | ) | 387 | (5,843 | ) | |||||||||
Income tax benefit | 2,235 | 2,920 | 2,880 | 3,720 | |||||||||||
Equity in earnings of unconsolidated affiliates | 4,368 | 6,325 | 8,107 | 11,698 | |||||||||||
Income (loss) from continuing operations before gain on sales of real estate assets | (33,723 | ) | (8,906 | ) | (38,755 | ) | 23,624 | ||||||||
Gain on sales of real estate assets | 3,747 | 79,533 | 8,118 | 85,521 | |||||||||||
Net income (loss) | (29,976 | ) | 70,627 | (30,637 | ) | 109,145 | |||||||||
Net (income) loss attributable to noncontrolling interests in: | |||||||||||||||
Operating Partnership | 5,685 | (5,093 | ) | 7,350 | (8,783 | ) | |||||||||
Other consolidated subsidiaries | 494 | (24,138 | ) | 393 | (24,851 | ) | |||||||||
Net income (loss) attributable to the Company | (23,797 | ) | 41,396 | (22,894 | ) | 75,511 | |||||||||
Preferred dividends | (11,223 | ) | (11,223 | ) | (22,446 | ) | (22,446 | ) | |||||||
Net income (loss) attributable to common shareholders | $ | (35,020 | ) | $ | 30,173 | $ | (45,340 | ) | $ | 53,065 | |||||
Basic and diluted per share data attributable to common shareholders: | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | (0.20 | ) | $ | 0.18 | $ | (0.26 | ) | $ | 0.31 | |||||
Weighted-average common and potential dilutive common shares outstanding | 172,662 | 171,095 | 172,304 | 171,042 | |||||||||||
Dividends declared per common share | $ | 0.200 | $ | 0.265 | $ | 0.400 | $ | 0.530 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) attributable to common shareholders | $ | (35,020 | ) | $ | 30,173 | $ | (45,340 | ) | $ | 53,065 | |||||
Noncontrolling interest in income (loss) of Operating Partnership | (5,685 | ) | 5,093 | (7,350 | ) | 8,783 | |||||||||
Depreciation and amortization expense of: | |||||||||||||||
Consolidated properties | 73,566 | 82,509 | 145,316 | 153,729 | |||||||||||
Unconsolidated affiliates | 10,338 | 9,357 | 20,739 | 18,900 | |||||||||||
Non-real estate assets | (917 | ) | (792 | ) | (1,838 | ) | (1,656 | ) | |||||||
Noncontrolling interests' share of depreciation and amortization | (2,122 | ) | (2,642 | ) | (4,288 | ) | (4,621 | ) | |||||||
Loss on impairment, net of taxes | 51,983 | 43,183 | 70,044 | 45,250 | |||||||||||
Gain on depreciable property, net of taxes and noncontrolling interests' share | — | (50,797 | ) | (2,236 | ) | (50,756 | ) | ||||||||
FFO allocable to Operating Partnership common unitholders | 92,143 | 116,084 | 175,047 | 222,694 | |||||||||||
Litigation expenses (1) | — | 9 | — | 52 | |||||||||||
Nonrecurring professional fees expense (reimbursement) (1) | — | 6 | — | (919 | ) | ||||||||||
(Gain) loss on investments, net of taxes (2) | (287 | ) | 5,843 | (287 | ) | 5,843 | |||||||||
Non-cash default interest expense (3) | 916 | 1,187 | 1,832 | 2,494 | |||||||||||
Gain on extinguishment of debt, net of noncontrolling interests' share (4) | — | (23,395 | ) | — | (27,450 | ) | |||||||||
FFO allocable to Operating Partnership common unitholders, as adjusted | $ | 92,772 | $ | 99,734 | $ | 176,592 | $ | 202,714 | |||||||
FFO per diluted share | $ | 0.46 | $ | 0.58 | $ | 0.88 | $ | 1.12 | |||||||
FFO, as adjusted, per diluted share | $ | 0.46 | $ | 0.50 | $ | 0.88 | $ | 1.02 | |||||||
Weighted-average common and potential dilutive common shares outstanding with Operating Partnership units fully converted | 199,767 | 199,371 | 199,731 | 199,326 | |||||||||||
(1) Litigation expense and nonrecurring professional fees expense are included in general and administrative expense in the consolidated statements of operations. Nonrecurring professional fees reimbursement is included in interest and other income in the consolidated statements of operations. | |||||||||||||||
(2) The three months and six months ended June 30, 2018 includes a gain on investment related to the land contributed by the Company to the Self Storage at Mid Rivers 50/50 joint venture. The three months and six months ended June 30, 2017 includes a loss on investment related to the write down of the Company's 25% interest in River Ridge Mall based on the contract price to sell such interest to its joint venture partner. The sale closed in August 2017. | |||||||||||||||
(3) The three months and six months ended June 30, 2018 includes default interest expense related to Acadiana Mall. The three months and six months ended June 30, 2017 includes default interest expense related to Wausau Center and Chesterfield Mall. The six months ended June 30, 2017 also includes default interest expense related to Midland Mall. | |||||||||||||||
(4) The three months and six months ended June 30, 2017 primarily represents gain on extinguishment of debt related to the non-recourse loan secured by Chesterfield Mall, which was conveyed to the lender in the second quarter of 2017. The three months and six months ended June 30, 2017 also includes loss on extinguishment of debt related to a prepayment fee on the early retirement of the loans secured by The Outlet Shoppes at Oklahoma City, which was sold in April 2017. The six months ended June 30, 2017 also includes gain on extinguishment of debt related to the non-recourse loan secured by Midland Mall, which was conveyed to the lender in the first quarter of 2017. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Diluted EPS attributable to common shareholders | $ | (0.20 | ) | $ | 0.18 | $ | (0.26 | ) | $ | 0.31 | |||||
Eliminate amounts per share excluded from FFO: | |||||||||||||||
Depreciation and amortization expense, including amounts from consolidated properties, unconsolidated affiliates, non-real estate assets and excluding amounts allocated to noncontrolling interests | 0.40 | 0.44 | 0.80 | 0.83 | |||||||||||
Loss on impairment, net of taxes | 0.26 | 0.22 | 0.35 | 0.23 | |||||||||||
Gain on depreciable property, net of taxes and noncontrolling interests' share | — | (0.26 | ) | (0.01 | ) | (0.25 | ) | ||||||||
FFO per diluted share | $ | 0.46 | $ | 0.58 | $ | 0.88 | $ | 1.12 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
FFO allocable to Operating Partnership common unitholders | $ | 92,143 | $ | 116,084 | $ | 175,047 | $ | 222,694 | |||||||
Percentage allocable to common shareholders (1) | 86.43 | % | 85.82 | % | 86.27 | % | 85.81 | % | |||||||
FFO allocable to common shareholders | $ | 79,639 | $ | 99,623 | $ | 151,013 | $ | 191,094 | |||||||
FFO allocable to Operating Partnership common unitholders, as adjusted | $ | 92,772 | $ | 99,734 | $ | 176,592 | $ | 202,714 | |||||||
Percentage allocable to common shareholders (1) | 86.43 | % | 85.82 | % | 86.27 | % | 85.81 | % | |||||||
FFO allocable to common shareholders, as adjusted | $ | 80,183 | $ | 85,592 | $ | 152,346 | $ | 173,949 | |||||||
(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 16. |
SUPPLEMENTAL FFO INFORMATION: | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Lease termination fees | $ | 2,744 | $ | 864 | $ | 9,005 | $ | 1,111 | |||||||
Lease termination fees per share | $ | 0.01 | $ | — | $ | 0.05 | $ | 0.01 | |||||||
Straight-line rental income | $ | (725 | ) | $ | 559 | $ | (4,358 | ) | $ | 632 | |||||
Straight-line rental income per share | $ | — | $ | — | $ | (0.02 | ) | $ | — | ||||||
Gains on outparcel sales | $ | 4,338 | $ | 2,094 | $ | 6,485 | $ | 8,091 | |||||||
Gains on outparcel sales per share | $ | 0.02 | $ | 0.01 | $ | 0.03 | $ | 0.04 | |||||||
Net amortization of acquired above- and below-market leases | $ | 1,387 | $ | 1,198 | $ | 2,192 | $ | 2,416 | |||||||
Net amortization of acquired above- and below-market leases per share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.01 | |||||||
Net amortization of debt premiums and discounts | $ | 306 | $ | (206 | ) | $ | 413 | $ | (403 | ) | |||||
Net amortization of debt premiums and discounts per share | $ | — | $ | — | $ | — | $ | — | |||||||
Income tax benefit | $ | 2,235 | $ | 2,920 | $ | 2,880 | $ | 3,720 | |||||||
Income tax benefit per share | $ | 0.01 | $ | 0.01 | $ | 0.01 | $ | 0.02 | |||||||
Gain on extinguishment of debt, net of noncontrolling interests' share | $ | — | $ | 23,395 | $ | — | $ | 27,450 | |||||||
Gain on extinguishment of debt, net of noncontrolling interests' share per share | $ | — | $ | 0.12 | $ | — | $ | 0.14 | |||||||
Gain (loss) on investments, net of taxes | $ | 287 | $ | (5,843 | ) | $ | 287 | $ | (5,843 | ) | |||||
Gain (loss) on investments, net of taxes per share | $ | — | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | |||||
Non-cash default interest expense | $ | (916 | ) | $ | (1,187 | ) | $ | (1,832 | ) | $ | (2,494 | ) | |||
Non-cash default interest expense per share | $ | — | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||
Abandoned projects expense | $ | (245 | ) | $ | (5,019 | ) | $ | (339 | ) | $ | (5,019 | ) | |||
Abandoned projects expense per share | $ | — | $ | (0.03 | ) | $ | — | $ | (0.03 | ) | |||||
Interest capitalized | $ | 951 | $ | 385 | $ | 1,538 | $ | 1,224 | |||||||
Interest capitalized per share | $ | — | $ | — | $ | 0.01 | $ | 0.01 | |||||||
Litigation expenses | $ | — | $ | (9 | ) | $ | — | $ | (52 | ) | |||||
Litigation expenses per share | $ | — | $ | — | $ | — | $ | — | |||||||
Nonrecurring professional fees (expense) reimbursement | $ | — | $ | (6 | ) | $ | — | $ | 919 | ||||||
Nonrecurring professional fees (expense) reimbursement per share | $ | — | $ | — | $ | — | $ | — |
As of June 30, | |||||||
2018 | 2017 | ||||||
Straight-line rent receivable | $ | 57,402 | $ | 62,989 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | (29,976 | ) | $ | 70,627 | $ | (30,637 | ) | $ | 109,145 | |||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 73,566 | 82,509 | 145,316 | 153,729 | |||||||||||
Depreciation and amortization from unconsolidated affiliates | 10,338 | 9,357 | 20,739 | 18,900 | |||||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (2,122 | ) | (2,642 | ) | (4,288 | ) | (4,621 | ) | |||||||
Interest expense | 54,203 | 55,065 | 107,970 | 111,266 | |||||||||||
Interest expense from unconsolidated affiliates | 6,344 | 6,410 | 12,298 | 12,571 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (2,186 | ) | (1,870 | ) | (4,037 | ) | (3,576 | ) | |||||||
Abandoned projects expense | 245 | 5,019 | 339 | 5,019 | |||||||||||
Gain on sales of real estate assets | (3,747 | ) | (79,533 | ) | (8,118 | ) | (85,521 | ) | |||||||
(Gain) loss on sales of real estate assets of unconsolidated affiliates | (592 | ) | 3 | (592 | ) | 38 | |||||||||
Noncontrolling interests' share of gain on sales of real estate assets in other consolidated affiliates | — | 26,639 | — | 26,639 | |||||||||||
(Gain) loss on investment | (387 | ) | 5,843 | (387 | ) | 5,843 | |||||||||
Gain on extinguishment of debt | — | (20,420 | ) | — | (24,475 | ) | |||||||||
Noncontrolling interests' share of loss on extinguishment of debt in other consolidated subsidiaries | — | (2,975 | ) | — | (2,975 | ) | |||||||||
Loss on impairment | 51,983 | 43,203 | 70,044 | 46,466 | |||||||||||
Income tax benefit | (2,235 | ) | (2,920 | ) | (2,880 | ) | (3,720 | ) | |||||||
Lease termination fees | (2,744 | ) | (864 | ) | (9,005 | ) | (1,111 | ) | |||||||
Straight-line rent and above- and below-market lease amortization | (662 | ) | (1,757 | ) | 2,166 | (3,048 | ) | ||||||||
Net (income) loss attributable to noncontrolling interests in other consolidated subsidiaries | 494 | (24,138 | ) | 393 | (24,851 | ) | |||||||||
General and administrative expenses | 13,490 | 15,752 | 31,794 | 31,834 | |||||||||||
Management fees and non-property level revenues | (3,509 | ) | (2,293 | ) | (7,396 | ) | (7,550 | ) | |||||||
Operating Partnership's share of property NOI | 162,503 | 181,015 | 323,719 | 360,002 | |||||||||||
Non-comparable NOI | (5,486 | ) | (12,440 | ) | (12,020 | ) | (25,530 | ) | |||||||
Total same-center NOI (1) | $ | 157,017 | $ | 168,575 | $ | 311,699 | $ | 334,472 | |||||||
Total same-center NOI percentage change | (6.9 | )% | (6.8 | )% |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Malls | $ | 141,694 | $ | 152,119 | $ | 280,510 | $ | 301,686 | |||||||
Associated centers | 7,846 | 8,185 | 15,772 | 16,491 | |||||||||||
Community centers | 6,035 | 6,373 | 12,041 | 12,561 | |||||||||||
Offices and other | 1,442 | 1,898 | 3,376 | 3,734 | |||||||||||
Total same-center NOI (1) | $ | 157,017 | $ | 168,575 | $ | 311,699 | $ | 334,472 | |||||||
Percentage Change: | |||||||||||||||
Malls | (6.9 | )% | (7.0 | )% | |||||||||||
Associated centers | (4.1 | )% | (4.4 | )% | |||||||||||
Community centers | (5.3 | )% | (4.1 | )% | |||||||||||
Offices and other | (24.0 | )% | (9.6 | )% | |||||||||||
Total same-center NOI (1) | (6.9 | )% | (6.8 | )% |
(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, amortization of above and below market lease intangibles and write-offs of landlord inducement assets. We include a property in our same-center pool when we own all or a portion of the property as of June 30, 2018, 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, 2018. New properties are excluded from same-center NOI, until they meet this criteria. Properties excluded from the same-center pool that would otherwise meet this criteria are properties which are under major redevelopment or being considered for repositioning, where we intend to renegotiate the terms of the debt secured by the related property or return the property to the lender, or minority interest properties in which we own an interest of 25% or less. |
As of June 30, 2018 | |||||||||||||||||||
Fixed Rate | Variable Rate | Total per Debt Schedule | Unamortized Deferred Financing Costs | Total | |||||||||||||||
Consolidated debt | $ | 3,099,680 | $ | 1,089,189 | $ | 4,188,869 | $ | (16,516 | ) | $ | 4,172,353 | ||||||||
Noncontrolling interests' share of consolidated debt | (76,413 | ) | (5,387 | ) | (81,800 | ) | 642 | (81,158 | ) | ||||||||||
Company's share of unconsolidated affiliates' debt | 555,880 | 82,180 | 638,060 | (2,177 | ) | 635,883 | |||||||||||||
Company's share of consolidated and unconsolidated debt | $ | 3,579,147 | $ | 1,165,982 | $ | 4,745,129 | $ | (18,051 | ) | $ | 4,727,078 | ||||||||
Weighted-average interest rate | 5.16 | % | 3.57 | % | 4.77 | % | |||||||||||||
As of June 30, 2017 | |||||||||||||||||||
Fixed Rate | Variable Rate | Total per Debt Schedule | Unamortized Deferred Financing Costs | Total | |||||||||||||||
Consolidated debt | $ | 3,184,580 | $ | 1,081,266 | $ | 4,265,846 | $ | (16,406 | ) | $ | 4,249,440 | ||||||||
Noncontrolling interests' share of consolidated debt | (93,377 | ) | (5,449 | ) | (98,826 | ) | 765 | (98,061 | ) | ||||||||||
Company's share of unconsolidated affiliates' debt | 526,136 | 72,002 | 598,138 | (2,506 | ) | 595,632 | |||||||||||||
Company's share of consolidated and unconsolidated debt | $ | 3,617,339 | $ | 1,147,819 | $ | 4,765,158 | $ | (18,147 | ) | $ | 4,747,011 | ||||||||
Weighted-average interest rate | 5.25 | % | 2.58 | % | 4.61 | % |
Shares Outstanding | Stock Price (1) | Value | ||||||||
Common stock and Operating Partnership units | 199,428 | $ | 5.57 | $ | 1,110,814 | |||||
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 | 1,737,064 | |||||||||
Company's share of total debt, excluding unamortized deferred financing costs | 4,745,129 | |||||||||
Total market capitalization | $ | 6,482,193 | ||||||||
Debt-to-total-market capitalization ratio | 73.2 | % |
(1) | Stock price for common stock and Operating Partnership units equals the closing price of the common stock on June 29, 2018. 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, | ||||||||||
Basic | Diluted | Basic | Diluted | ||||||||
2018: | |||||||||||
Weighted-average shares - EPS | 172,662 | 172,662 | 172,304 | 172,304 | |||||||
Weighted-average Operating Partnership units | 27,105 | 27,105 | 27,427 | 27,427 | |||||||
Weighted-average shares - FFO | 199,767 | 199,767 | 199,731 | 199,731 | |||||||
2017: | |||||||||||
Weighted-average shares - EPS | 171,095 | 171,095 | 171,042 | 171,042 | |||||||
Weighted-average Operating Partnership units | 28,276 | 28,276 | 28,284 | 28,284 | |||||||
Weighted-average shares - FFO | 199,371 | 199,371 | 199,326 | 199,326 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Weighted-average cash dividend per share | $ | 0.20888 | $ | 0.27281 | $ | 0.41773 | $ | 0.54562 | |||||||
FFO, as adjusted, per diluted fully converted share | $ | 0.46 | $ | 0.50 | $ | 0.88 | $ | 1.02 | |||||||
Dividend payout ratio | 45.4 | % | 54.6 | % | 47.5 | % | 53.5 | % |
Consolidated Balance Sheets (Unaudited; in thousands, except share data) | |||||||
As of | |||||||
June 30, 2018 | December 31, 2017 | ||||||
ASSETS | |||||||
Real estate assets: | |||||||
Land | $ | 797,045 | $ | 813,390 | |||
Buildings and improvements | 6,591,966 | 6,723,194 | |||||
7,389,011 | 7,536,584 | ||||||
Accumulated depreciation | (2,501,864 | ) | (2,465,095 | ) | |||
4,887,147 | 5,071,489 | ||||||
Held for sale | 17,412 | — | |||||
Developments in progress | 109,562 | 85,346 | |||||
Net investment in real estate assets | 5,014,121 | 5,156,835 | |||||
Cash and cash equivalents | 23,428 | 32,627 | |||||
Receivables: | |||||||
Tenant, net of allowance for doubtful accounts of $2,097 and $2,011 in 2018 and 2017, respectively | 76,367 | 83,552 | |||||
Other, net of allowance for doubtful accounts of $838 in 2018 and 2017 | 6,056 | 7,570 | |||||
Mortgage and other notes receivable | 8,429 | 8,945 | |||||
Investments in unconsolidated affiliates | 278,168 | 249,192 | |||||
Intangible lease assets and other assets | 172,438 | 166,087 | |||||
$ | 5,579,007 | $ | 5,704,808 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Mortgage and other indebtedness, net | $ | 4,172,353 | $ | 4,230,845 | |||
Accounts payable and accrued liabilities | 221,507 | 228,650 | |||||
Total liabilities | 4,393,860 | 4,459,495 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests | 8,694 | 8,835 | |||||
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, 172,661,708 and 171,088,778 issued and outstanding in 2018 and 2017, respectively | 1,727 | 1,711 | |||||
Additional paid-in capital | 1,966,491 | 1,974,537 | |||||
Dividends in excess of cumulative earnings | (880,292 | ) | (836,269 | ) | |||
Total shareholders' equity | 1,087,951 | 1,140,004 | |||||
Noncontrolling interests | 88,502 | 96,474 | |||||
Total equity | 1,176,453 | 1,236,478 | |||||
$ | 5,579,007 | $ | 5,704,808 |
As of | |||||||
June 30, 2018 | December 31, 2017 | ||||||
ASSETS: | |||||||
Investment in real estate assets | $ | 2,096,677 | $ | 2,089,262 | |||
Accumulated depreciation | (650,239 | ) | (618,922 | ) | |||
1,446,438 | 1,470,340 | ||||||
Developments in progress | 62,711 | 36,765 | |||||
Net investment in real estate assets | 1,509,149 | 1,507,105 | |||||
Other assets | 195,749 | 201,114 | |||||
Total assets | $ | 1,704,898 | $ | 1,708,219 | |||
LIABILITIES: | |||||||
Mortgage and other indebtedness, net | $ | 1,312,520 | $ | 1,248,817 | |||
Other liabilities | 41,488 | 41,291 | |||||
Total liabilities | 1,354,008 | 1,290,108 | |||||
OWNERS' EQUITY: | |||||||
The Company | 185,687 | 216,292 | |||||
Other investors | 165,203 | 201,819 | |||||
Total owners' equity | 350,890 | 418,111 | |||||
Total liabilities and owners’ equity | $ | 1,704,898 | $ | 1,708,219 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Total revenues | $ | 55,083 | $ | 58,156 | $ | 112,264 | $ | 117,855 | |||||||
Depreciation and amortization | (19,525 | ) | (19,496 | ) | (39,312 | ) | (40,125 | ) | |||||||
Operating expenses | (16,831 | ) | (16,639 | ) | (36,811 | ) | (35,387 | ) | |||||||
Income from operations | 18,727 | 22,021 | 36,141 | 42,343 | |||||||||||
Interest and other income | 351 | 430 | 704 | 830 | |||||||||||
Interest expense | (13,019 | ) | (13,146 | ) | (25,477 | ) | (25,984 | ) | |||||||
Gain (loss) on sales of real estate assets | 1,183 | (6 | ) | 1,183 | (77 | ) | |||||||||
Net income | $ | 7,242 | $ | 9,299 | $ | 12,551 | $ | 17,112 |
Company's Share for the Three Months Ended June 30, | Company's Share for the Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Total revenues | $ | 28,520 | $ | 29,663 | $ | 58,141 | $ | 59,468 | |||||||
Depreciation and amortization | (10,338 | ) | (9,357 | ) | (20,739 | ) | (18,900 | ) | |||||||
Operating expenses | (8,302 | ) | (7,843 | ) | (18,072 | ) | (16,812 | ) | |||||||
Income from operations | 9,880 | 12,463 | 19,330 | 23,756 | |||||||||||
Interest and other income | 240 | 275 | 483 | 551 | |||||||||||
Interest expense | (6,344 | ) | (6,410 | ) | (12,298 | ) | (12,571 | ) | |||||||
Gain (loss) on sales of real estate assets | 592 | (3 | ) | 592 | (38 | ) | |||||||||
Net income | $ | 4,368 | $ | 6,325 | $ | 8,107 | $ | 11,698 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | (29,976 | ) | $ | 70,627 | $ | (30,637 | ) | $ | 109,145 | |||||
Depreciation and amortization | 73,566 | 82,509 | 145,316 | 153,729 | |||||||||||
Depreciation and amortization from unconsolidated affiliates | 10,338 | 9,357 | 20,739 | 18,900 | |||||||||||
Interest expense | 54,203 | 55,065 | 107,970 | 111,266 | |||||||||||
Interest expense from unconsolidated affiliates | 6,344 | 6,410 | 12,298 | 12,571 | |||||||||||
Income taxes | (1,885 | ) | (2,507 | ) | (2,455 | ) | (3,122 | ) | |||||||
Loss on impairment | 51,983 | 43,203 | 70,044 | 46,466 | |||||||||||
Gain on depreciable property | — | (77,469 | ) | (2,236 | ) | (77,430 | ) | ||||||||
(Gain) loss on investments | (387 | ) | 5,843 | (387 | ) | 5,843 | |||||||||
EBITDAre (1) | 164,186 | 193,038 | 320,652 | 377,368 | |||||||||||
Gain on extinguishment of debt, net of noncontrolling interests' share | — | (23,395 | ) | — | (27,450 | ) | |||||||||
Abandoned projects | 245 | 5,019 | 339 | 5,019 | |||||||||||
Net (income) loss attributable to noncontrolling interests in other consolidated subsidiaries | 494 | (24,138 | ) | 393 | (24,851 | ) | |||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (2,122 | ) | (2,642 | ) | (4,288 | ) | (4,621 | ) | |||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (2,186 | ) | (1,870 | ) | (4,037 | ) | (3,576 | ) | |||||||
Noncontrolling interests' share of gain on depreciable property | — | 26,639 | — | 26,639 | |||||||||||
Company's share of Adjusted EBITDAre | $ | 160,617 | $ | 172,651 | $ | 313,059 | $ | 348,528 | |||||||
(1) Includes $4,339 and $2,061 for the three months ended June 30, 2018 and 2017, respectively, and $6,474 and $8,053 for the six months ended June 30, 2018 and 2017, respectively, related to sales of non-depreciable real estate assets. | |||||||||||||||
Interest Expense: | |||||||||||||||
Interest expense | $ | 54,203 | $ | 55,065 | $ | 107,970 | $ | 111,266 | |||||||
Interest expense from unconsolidated affiliates | 6,344 | 6,410 | 12,298 | 12,571 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (2,186 | ) | (1,870 | ) | (4,037 | ) | (3,576 | ) | |||||||
Company's share of interest expense | $ | 58,361 | $ | 59,605 | $ | 116,231 | $ | 120,261 | |||||||
Ratio of Adjusted EBITDAre to Interest Expense | 2.8 | x | 2.9 | x | 2.7 | x | 2.9 | x |
Reconciliation of Adjusted EBITDAre to Cash Flows Provided By Operating Activities (In thousands) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Company's share of Adjusted EBITDAre | $ | 160,617 | $ | 172,651 | $ | 313,059 | $ | 348,528 | |||||||
Interest expense | (54,203 | ) | (55,065 | ) | (107,970 | ) | (111,266 | ) | |||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | 2,186 | 1,870 | 4,037 | 3,576 | |||||||||||
Income taxes | 1,885 | 2,507 | 2,455 | 3,122 | |||||||||||
Net amortization of deferred financing costs, debt premiums and discounts | 1,884 | 1,013 | 3,593 | 2,126 | |||||||||||
Net amortization of intangible lease assets and liabilities | (961 | ) | (135 | ) | (1,436 | ) | (883 | ) | |||||||
Depreciation and interest expense from unconsolidated affiliates | (16,682 | ) | (15,767 | ) | (33,037 | ) | (31,471 | ) | |||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | 2,122 | 2,642 | 4,288 | 4,621 | |||||||||||
Net income (loss) attributable to noncontrolling interests in other consolidated subsidiaries | (494 | ) | 24,138 | (393 | ) | 24,851 | |||||||||
Gains on outparcel sales | (3,747 | ) | (2,064 | ) | (5,882 | ) | (8,091 | ) | |||||||
Noncontrolling interests' share of loss on extinguishment of debt | — | 2,975 | — | 2,975 | |||||||||||
Noncontrolling interests' share of gain on depreciable property | — | (26,639 | ) | — | (26,639 | ) | |||||||||
Equity in earnings of unconsolidated affiliates | (4,368 | ) | (6,325 | ) | (8,107 | ) | (11,698 | ) | |||||||
Distributions of earnings from unconsolidated affiliates | 5,658 | 5,645 | 9,669 | 9,640 | |||||||||||
Share-based compensation expense | 1,084 | 1,410 | 3,398 | 3,324 | |||||||||||
Provision for doubtful accounts | 745 | 630 | 2,786 | 2,374 | |||||||||||
Change in deferred tax assets | (1,364 | ) | 2,142 | (1,993 | ) | 3,750 | |||||||||
Changes in operating assets and liabilities | (12,707 | ) | (11,177 | ) | (4,585 | ) | (13,512 | ) | |||||||
Cash flows provided by operating activities | $ | 81,655 | $ | 100,451 | $ | 179,882 | $ | 205,327 |
Property | Location | Non- controlling Interest % | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | |||||||||||||||
Operating Properties: | ||||||||||||||||
Acadiana Mall | Lafayette, LA | Apr-17 | 5.67% | $ | 122,143 | (1) | $ | 122,143 | $ | — | ||||||
Cary Towne Center | Cary, NC | Jun-18 | 4.00% | 46,716 | (2) | 46,716 | — | |||||||||
The Outlet Shoppes at El Paso - Phase II | El Paso, TX | Jul-18 | 4.73% | 6,547 | — | 6,547 | ||||||||||
Hickory Point Mall | Forsyth, IL | Dec-18 | Dec-19 | 5.85% | 27,446 | 27,446 | — | |||||||||
The Outlet Shoppes at Laredo | Laredo, TX | May-19 | May-21 | 4.63% | 60,000 | — | 60,000 | |||||||||
Statesboro Crossing | Statesboro, GA | Jun-19 | 4.24% | 10,774 | — | 10,774 | ||||||||||
Honey Creek Mall | Terre Haute, IN | Jul-19 | 8.00% | 24,736 | 24,736 | — | ||||||||||
Volusia Mall | Daytona Beach, FL | Jul-19 | 8.00% | 42,551 | 42,551 | — | ||||||||||
Greenbrier Mall | Chesapeake, VA | Dec-19 | Dec-20 | 5.00% | 69,451 | 69,451 | — | |||||||||
The Outlet Shoppes at Atlanta - Phase II | Woodstock, GA | Dec-19 | 4.48% | 4,641 | — | 4,641 | ||||||||||
The Terrace | Chattanooga, TN | Jun-20 | 7.25% | 12,525 | 12,525 | — | ||||||||||
Burnsville Center | Burnsville, MN | Jul-20 | 6.00% | 68,481 | 68,481 | — | ||||||||||
The Outlet Shoppes of the Bluegrass - Phase II | Simpsonville, KY | Jul-20 | 4.48% | 9,602 | — | 9,602 | ||||||||||
Parkway Place | Huntsville, AL | Jul-20 | 6.50% | 35,056 | 35,056 | — | ||||||||||
Valley View Mall | Roanoke, VA | Jul-20 | 6.50% | 54,253 | 54,253 | — | ||||||||||
Parkdale Mall & Crossing | Beaumont, TX | Mar-21 | 5.85% | 79,845 | 79,845 | — | ||||||||||
EastGate Mall | Cincinnati, OH | Apr-21 | 5.83% | 34,858 | 34,858 | — | ||||||||||
Hamilton Crossing & Expansion | Chattanooga, TN | Apr-21 | 5.99% | 8,964 | 8,964 | — | ||||||||||
Park Plaza Mall | Little Rock, AR | Apr-21 | 5.28% | 82,704 | 82,704 | — | ||||||||||
Fayette Mall | Lexington, KY | May-21 | 5.42% | 154,860 | 154,860 | — | ||||||||||
Alamance Crossing - East | Burlington, NC | Jul-21 | 5.83% | 45,903 | 45,903 | — | ||||||||||
Asheville Mall | Asheville, NC | Sep-21 | 5.80% | 67,032 | 67,032 | — | ||||||||||
Cross Creek Mall | Fayetteville, NC | Jan-22 | 4.54% | 117,551 | 117,551 | — | ||||||||||
Northwoods Mall | North Charleston, SC | Apr-22 | 5.08% | 65,873 | 65,873 | — | ||||||||||
Arbor Place | Atlanta (Douglasville), GA | May-22 | 5.10% | 110,335 | 110,335 | — | ||||||||||
CBL Center | Chattanooga, TN | Jun-22 | 5.00% | 18,156 | 18,156 | — | ||||||||||
Jefferson Mall | Louisville, KY | Jun-22 | 4.75% | 64,067 | 64,067 | — | ||||||||||
Southpark Mall | Colonial Heights, VA | Jun-22 | 4.85% | 60,405 | 60,405 | — | ||||||||||
WestGate Mall | Spartanburg, SC | Jul-22 | 4.99% | 34,457 | 34,457 | — | ||||||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | Nov-23 | 4.90% | 73,976 | 73,976 | — | ||||||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | Dec-24 | 4.05% | 72,511 | 72,511 | — | ||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | Oct-25 | 4.80% | 38,061 | 38,061 | — | ||||||||||
Hamilton Place | Chattanooga, TN | Jun-26 | 4.36% | 103,383 | 103,383 | — | ||||||||||
Total Loans On Operating Properties | 1,827,863 | 1,736,299 | 91,564 | |||||||||||||
Weighted-average interest rate | 5.29 | % | 5.32 | % | 4.57 | % | ||||||||||
Operating Partnership Debt: | ||||||||||||||||
Unsecured credit facilities: | ||||||||||||||||
$500,000 capacity | Oct-19 | Oct-20 | 3.18% | — | — | — | ||||||||||
$100,000 capacity | Oct-19 | Oct-20 | 3.18% | 56,606 | — | 56,606 | ||||||||||
$500,000 capacity | Oct-20 | 3.18% | 56,019 | — | 56,019 | |||||||||||
SUBTOTAL | 112,625 | — | 112,625 |
Property | Location | Non- controlling Interest % | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | |||||||||||||||
Unsecured term loans: | ||||||||||||||||
$350,000 term loan | Oct-18 | Oct-19 | 3.33% | 350,000 | — | 350,000 | ||||||||||
$490,000 term loan | Jul-20 | Jul-21 | 3.48% | 490,000 | (3) | — | 490,000 | |||||||||
$45,000 term loan | Jun-21 | Jun-22 | 3.63% | 45,000 | — | 45,000 | ||||||||||
SUBTOTAL | 885,000 | — | 885,000 | |||||||||||||
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% | (2,804 | ) | (2,804 | ) | — | |||||||||
Senior unsecured 4.60% notes | Oct-24 | 4.60% | 300,000 | 300,000 | — | |||||||||||
Senior unsecured 4.60% notes (discount) | Oct-24 | 4.60% | (51 | ) | (51 | ) | — | |||||||||
Senior unsecured 5.95% notes | Dec-26 | 5.95% | 625,000 | 625,000 | — | |||||||||||
Senior unsecured 5.95% notes (discount) | Dec-26 | 5.95% | (8,764 | ) | (8,764 | ) | — | |||||||||
SUBTOTAL | 1,363,381 | 1,363,381 | — | |||||||||||||
Total Consolidated Debt | $ | 4,188,869 | (4) | $ | 3,099,680 | $ | 1,089,189 | |||||||||
Weighted-average interest rate | 4.88 | % | 5.37 | % | 3.50 | % | ||||||||||
Plus CBL's Share Of Unconsolidated Affiliates' Debt: | ||||||||||||||||
Triangle Town Center | Raleigh, NC | Dec-18 | Dec-20 | 4.00% | $ | 13,900 | $ | 13,900 | $ | — | ||||||
Ambassador Town Center Infrastructure Improvements | Lafayette, LA | Aug-20 | 3.74% | 10,605 | (5) | 10,605 | — | |||||||||
Hammock Landing - Phase I | West Melbourne, FL | Feb-21 | Feb-23 | 4.34% | 20,966 | — | 20,966 | |||||||||
Hammock Landing - Phase II | West Melbourne, FL | Feb-21 | Feb-23 | 4.34% | 8,094 | — | 8,094 | |||||||||
The Pavilion at Port Orange | Port Orange, FL | Feb-21 | Feb-23 | 4.34% | 28,322 | — | 28,322 | |||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 16,145 | 16,145 | — | ||||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 4.75% | 640 | — | 640 | ||||||||||
West County Center | St. Louis, MO | Dec-22 | 3.40% | 90,362 | 90,362 | — | ||||||||||
Friendly Shopping Center | Greensboro, NC | Apr-23 | 3.48% | 47,870 | 47,870 | — | ||||||||||
The Shops at Friendly Center | Greensboro, NC | Apr-23 | 3.34% | 30,000 | 30,000 | — | ||||||||||
Ambassador Town Center | Lafayette, LA | Jun-23 | 3.22% | 29,552 | (6) | 29,552 | — | |||||||||
Coastal Grand | Myrtle Beach, SC | Aug-24 | 4.09% | 55,862 | 55,862 | — | ||||||||||
Coastal Grand Outparcel | Myrtle Beach, SC | Aug-24 | 4.09% | 2,695 | 2,695 | — | ||||||||||
Oak Park Mall | Overland Park, KS | Oct-25 | 3.97% | 136,382 | 136,382 | — | ||||||||||
Fremaux Town Center - Phase I | Slidell, LA | Jun-26 | 3.70% | 45,103 | 45,103 | — | ||||||||||
CoolSprings Galleria | Nashville, TN | May-28 | 4.84% | 77,404 | 77,404 | — | ||||||||||
SUBTOTAL | 613,902 | (4) | 555,880 | 58,022 | ||||||||||||
Plus CBL's Share of Unconsolidated Affiliates' Construction Loans: | ||||||||||||||||
The Shoppes at Eagle Point | Cookeville, TN | Oct-20 | Oct-22 | 4.83% | 22,647 | — | 22,647 | |||||||||
EastGate Mall - Self-Storage Development | Cincinnati, OH | Dec-22 | 4.73% | 1,511 | — | 1,511 | ||||||||||
Mid Rivers Mall - Self-Storage Development | St. Peters, MO | Apr-23 | —% | — | — | — | ||||||||||
SUBTOTAL | 24,158 | — | 24,158 | |||||||||||||
CBL's Share of Unconsolidated Affiliates' Debt | 638,060 | 555,880 | 82,180 | |||||||||||||
Property | Location | Non- controlling Interest % | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | |||||||||||||||
Less Noncontrolling Interests' Share Of Consolidated Debt: | ||||||||||||||||
Statesboro Crossing | Statesboro, GA | 50% | Jun-19 | 4.24% | (5,387 | ) | — | (5,387 | ) | |||||||
The Terrace | Chattanooga, TN | 8% | Jun-20 | 7.25% | (1,002 | ) | (1,002 | ) | — | |||||||
Hamilton Crossing & Expansion | Chattanooga, TN | 8% | Apr-21 | 5.99% | (717 | ) | (717 | ) | — | |||||||
CBL Center | Chattanooga, TN | 8% | Jun-22 | 5.00% | (1,452 | ) | (1,452 | ) | — | |||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | 25% | Nov-23 | 4.90% | (18,494 | ) | (18,494 | ) | — | |||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | 35% | Dec-24 | 4.05% | (25,379 | ) | (25,379 | ) | — | |||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | 50% | Oct-25 | 4.80% | (19,031 | ) | (19,031 | ) | — | |||||||
Hamilton Place | Chattanooga, TN | 10% | Jun-26 | 4.36% | (10,338 | ) | (10,338 | ) | — | |||||||
(81,800 | ) | (76,413 | ) | (5,387 | ) | |||||||||||
Company's Share Of Consolidated And Unconsolidated Debt | $ | 4,745,129 | (4) | $ | 3,579,147 | $ | 1,165,982 | |||||||||
Weighted-average interest rate | 4.77 | % | 5.16 | % | 3.57 | % | ||||||||||
Total Debt of Unconsolidated Affiliates: | ||||||||||||||||
Triangle Town Center | Raleigh, NC | Dec-18 | Dec-20 | 4.00% | $ | 139,000 | $ | 139,000 | $ | — | ||||||
Ambassador Town Center Infrastructure Improvements | Lafayette, LA | Aug-20 | 3.74% | 10,605 | (5) | 10,605 | — | |||||||||
Hammock Landing - Phase I | West Melbourne, FL | Feb-21 | Feb-23 | 4.34% | 41,932 | — | 41,932 | |||||||||
Hammock Landing - Phase II | West Melbourne, FL | Feb-21 | Feb-23 | 4.34% | 16,187 | — | 16,187 | |||||||||
The Pavilion at Port Orange | Port Orange, FL | Feb-21 | Feb-23 | 4.34% | 56,645 | — | 56,645 | |||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 32,289 | 32,289 | — | ||||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 4.75% | 1,279 | — | 1,279 | ||||||||||
West County Center | St. Louis, MO | Dec-22 | 3.40% | 180,725 | 180,725 | — | ||||||||||
Friendly Shopping Center | Greensboro, NC | Apr-23 | 3.48% | 95,741 | 95,741 | — | ||||||||||
The Shops at Friendly Center | Greensboro, NC | Apr-23 | 3.34% | 60,000 | 60,000 | — | ||||||||||
Ambassador Town Center | Lafayette, LA | Jun-23 | 3.22% | 45,464 | (6) | 45,464 | — | |||||||||
Coastal Grand | Myrtle Beach, SC | Aug-24 | 4.09% | 111,723 | 111,723 | — | ||||||||||
Coastal Grand Outparcel | Myrtle Beach, SC | Aug-24 | 4.09% | 5,391 | 5,391 | — | ||||||||||
Oak Park Mall | Overland Park, KS | Oct-25 | 3.97% | 272,764 | 272,764 | — | ||||||||||
Fremaux Town Center - Phase I | Slidell, LA | Jun-26 | 3.70% | 69,389 | 69,389 | — | ||||||||||
CoolSprings Galleria | Nashville, TN | May-28 | 4.84% | 154,808 | 154,808 | — | ||||||||||
SUBTOTAL | 1,293,942 | 1,177,899 | 116,043 | |||||||||||||
Total Construction Loans of Unconsolidated Affiliates | ||||||||||||||||
The Shoppes at Eagle Point | Cookeville, TN | Oct-20 | Oct-22 | 4.83% | 22,647 | — | 22,647 | |||||||||
EastGate Mall - Self-Storage Development | Cincinnati, OH | Dec-22 | 4.73% | 1,511 | — | 1,511 | ||||||||||
Mid Rivers Mall - Self-Storage Development | St. Peters, MO | Apr-23 | —% | — | — | — | ||||||||||
SUBTOTAL | 24,158 | — | 24,158 | |||||||||||||
$ | 1,318,100 | $ | 1,177,899 | $ | 140,201 | |||||||||||
Weighted-average interest rate | 3.97 | % | 3.92 | % | 4.43 | % |
(1) | The non-recourse loan matured in 2017 and is in default and receivership. The lender has initiated foreclosure proceedings. |
(2) | The non-recourse loan is in default as the maturity date was accelerated due to a change in redevelopment plans. |
(3) | $190,000 of the $490,000 unsecured term loan was paid in July 2018, and the remainder will be due July 2020 with a final extended maturity date of July 2021. |
(4) | See page 14 for unamortized deferred financing costs. |
(5) | The joint venture has an interest rate swap on a notional amount of $10,605, amortizing to $9,360 over the term of the swap, related to Ambassador Town Center Infrastructure Improvements to effectively fix the interest rate on that variable-rate loan. Therefore, this amount is currently reflected as having a fixed rate. |
(6) | The joint venture has an interest rate swap on a notional amount of $45,464, 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. |
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 | ||||||||||||||||
2017 | $ | 122,143 | (1) | $ | — | $ | — | $ | 122,143 | 2.57 | % | 5.67 | % | |||||||||
2018 | 243,263 | — | — | 243,263 | 5.13 | % | 3.61 | % | ||||||||||||||
2019 | 460,148 | — | (5,387 | ) | 454,761 | 9.58 | % | 4.20 | % | |||||||||||||
2020 | 361,993 | 24,505 | (1,002 | ) | 385,496 | 8.12 | % | 4.98 | % | |||||||||||||
2021 | 834,166 | — | (717 | ) | 833,449 | 17.56 | % | 4.77 | % | |||||||||||||
2022 | 515,844 | 131,305 | (1,452 | ) | 645,697 | 13.61 | % | 4.57 | % | |||||||||||||
2023 | 523,976 | 164,804 | (18,494 | ) | 670,286 | 14.13 | % | 4.84 | % | |||||||||||||
2024 | 372,511 | 58,557 | (25,379 | ) | 405,689 | 8.55 | % | 4.46 | % | |||||||||||||
2025 | 38,061 | 136,382 | (19,031 | ) | 155,412 | 3.28 | % | 4.07 | % | |||||||||||||
2026 | 728,383 | 45,103 | (10,338 | ) | 763,148 | 16.08 | % | 5.62 | % | |||||||||||||
2028 | — | 77,404 | — | 77,404 | 1.63 | % | 4.84 | % | ||||||||||||||
Face Amount of Debt | 4,200,488 | 638,060 | (81,800 | ) | 4,756,748 | 100.24 | % | 4.77 | % | |||||||||||||
Discounts | (11,619 | ) | — | — | (11,619 | ) | (0.24 | )% | — | % | ||||||||||||
Total | $ | 4,188,869 | $ | 638,060 | $ | (81,800 | ) | $ | 4,745,129 | 100.00 | % | 4.77 | % |
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 | ||||||||||||||||
2017 | $ | 122,143 | (1) | $ | — | $ | — | $ | 122,143 | 2.57 | % | 5.67 | % | |||||||||
2018 | 620,709 | 13,900 | — | 634,609 | 13.37 | % | 3.56 | % | ||||||||||||||
2019 | 268,759 | — | (5,387 | ) | 263,372 | 5.55 | % | 5.27 | % | |||||||||||||
2020 | 535,936 | 33,252 | (1,002 | ) | 568,186 | 11.97 | % | 4.38 | % | |||||||||||||
2021 | 519,166 | 57,382 | (717 | ) | 575,831 | 12.14 | % | 5.32 | % | |||||||||||||
2022 | 470,844 | 108,658 | (1,452 | ) | 578,050 | 12.18 | % | 4.64 | % | |||||||||||||
2023 | 523,976 | 107,422 | (18,494 | ) | 612,904 | 12.92 | % | 4.89 | % | |||||||||||||
2024 | 372,511 | 58,557 | (25,379 | ) | 405,689 | 8.55 | % | 4.46 | % | |||||||||||||
2025 | 38,061 | 136,382 | (19,031 | ) | 155,412 | 3.28 | % | 4.07 | % | |||||||||||||
2026 | 728,383 | 45,103 | (10,338 | ) | 763,148 | 16.08 | % | 5.62 | % | |||||||||||||
2028 | — | 77,404 | — | 77,404 | 1.63 | % | 4.84 | % | ||||||||||||||
Face Amount of Debt | 4,200,488 | 638,060 | (81,800 | ) | 4,756,748 | 100.24 | % | 4.77 | % | |||||||||||||
Discounts | (11,619 | ) | — | — | (11,619 | ) | (0.24 | )% | — | % | ||||||||||||
Total | $ | 4,188,869 | $ | 638,060 | $ | (81,800 | ) | $ | 4,745,129 | 100.00 | % | 4.77 | % |
(1) | Represents a non-recourse loan that is in default. |
Unsecured Debt Covenant Compliance Ratios | Required | Actual | |||||
Debt to total asset value | < 60% | 52 | % | ||||
Unsecured indebtedness to unencumbered asset value | < 60% | 49 | % | (1) | |||
Unencumbered NOI to unsecured interest expense | > 1.75x | 2.9 | x | ||||
EBITDA to fixed charges (debt service) | > 1.5x | 2.3 | x |
(1) | The debt covenant limits the total amount of unsecured indebtedness the Company may have outstanding, which varies over time based on the ratio. Based on the Company’s outstanding unsecured indebtedness as of June 30, 2018, the total amount available to the Company to borrow on its lines of credit was $667,045. Therefore, the Company had additional availability of $549,587 based on the outstanding balances of the lines of credit as of June 30, 2018. |
Senior Unsecured Notes Compliance Ratios | Required | Actual | |||||
Total debt to total assets | < 60% | 52 | % | ||||
Secured debt to total assets | < 45% | (1) | 23 | % | |||
Total unencumbered assets to unsecured debt | > 150% | 214 | % | ||||
Consolidated income available for debt service to annual debt service charge | > 1.5x | 2.9 | x |
(1) | On January 1, 2020 and thereafter, secured debt to total assets must be less than 40% for the 2023 Notes and the 2024 Notes. The required ratio of secured debt to total assets for the 2026 Notes is 40% or less. |
Sales Per Square Foot for the Twelve Months Ended (1) (2) | Occupancy (2) | % of Consolidated Unencumbered NOI for the Six Months Ended 6/30/18 (3) | ||||||||||||||||
6/30/18 | 6/30/17 | 6/30/18 | 6/30/17 | |||||||||||||||
Unencumbered consolidated properties: | ||||||||||||||||||
Tier 1 Malls | $ | 410 | $ | 420 | 93.4 | % | 92.4 | % | 22.5 | % | ||||||||
Tier 2 Malls | 337 | 340 | 89.5 | % | 88.8 | % | 52.6 | % | ||||||||||
Tier 3 Malls | 277 | 283 | 86.6 | % | 87.3 | % | 13.4 | % | ||||||||||
Total Malls | $ | 341 | $ | 346 | 89.6 | % | 89.2 | % | 88.5 | % | ||||||||
Total Associated Centers | N/A | N/A | 97.4 | % | 94.0 | % | 7.2 | % | ||||||||||
Total Community Centers | N/A | N/A | 99.0 | % | 99.3 | % | 3.1 | % | ||||||||||
Total Office Buildings and Other | N/A | N/A | 89.2 | % | 94.1 | % | 1.2 | % | ||||||||||
Total Unencumbered Consolidated Portfolio | $ | 341 | $ | 346 | 91.6 | % | 90.7 | % | 100.0 | % |
(1) | Represents same-center sales per square foot for mall tenants 10,000 square feet or less for stabilized malls. |
(2) | Operating metrics are included for unencumbered consolidated operating properties and do not include sales or occupancy of unencumbered parcels. |
(3) | Our consolidated unencumbered properties generated approximately 60.0% of total consolidated NOI of $283,027,200 (which excludes NOI related to dispositions) for the six months ended June 30, 2018. |
TIER 1 Sales ≥ $375 per square foot | |||||||||||||||||||||
Property | Location | Total Center SF (1) | Sales Per Square Foot for the Twelve Months Ended (2) | Mall Occupancy | % of Total Mall NOI for the Six Months Ended 6/30/18 (3) | ||||||||||||||||
6/30/18 | 6/30/17 | 6/30/18 | 6/30/17 | ||||||||||||||||||
Coastal Grand | Myrtle Beach, SC | 1,036,848 | |||||||||||||||||||
CoolSprings Galleria | Nashville, TN | 1,164,923 | |||||||||||||||||||
Cross Creek Mall | Fayetteville, NC | 1,022,560 | |||||||||||||||||||
Fayette Mall | Lexington, KY | 1,158,061 | |||||||||||||||||||
Friendly Center and The Shops at Friendly | Greensboro, NC | 1,340,403 | |||||||||||||||||||
Hamilton Place | Chattanooga, TN | 1,153,482 | |||||||||||||||||||
Jefferson Mall | Louisville, KY | 885,782 | |||||||||||||||||||
Mall del Norte | Laredo, TX | 1,199,539 | |||||||||||||||||||
Northwoods Mall | North Charleston, SC | 779,366 | |||||||||||||||||||
Oak Park Mall | Overland Park, KS | 1,599,247 | |||||||||||||||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | 404,906 | |||||||||||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | 433,046 | |||||||||||||||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | 428,074 | |||||||||||||||||||
St. Clair Square | Fairview Heights, IL | 1,076,904 | |||||||||||||||||||
Sunrise Mall | Brownsville, TX | 802,906 | |||||||||||||||||||
West County Center | Des Peres, MO | 1,197,850 | |||||||||||||||||||
West Towne Mall | Madison, WI | 855,133 | |||||||||||||||||||
Total Tier 1 Malls | 16,539,030 | $ | 453 | $ | 446 | 93.0 | % | 93.9 | % | 35.7 | % |
TIER 2 Sales of ≥ $300 to < $375 per square foot | ||||||||||||||
Property | Location | Total Center SF (1) | Sales Per Square Foot for the Twelve Months Ended (2) | Mall Occupancy | % of Total Mall NOI for the Six Months Ended 6/30/18 (3) | |||||||||
6/30/18 | 6/30/17 | 6/30/18 | 6/30/17 | |||||||||||
Arbor Place | Atlanta (Douglasville), GA | 1,161,931 | ||||||||||||
Asheville Mall | Asheville, NC | 973,344 | ||||||||||||
Burnsville Center | Burnsville, MN | 1,045,723 | ||||||||||||
CherryVale Mall | Rockford, IL | 844,383 | ||||||||||||
Dakota Square Mall | Minot, ND | 804,388 | ||||||||||||
East Towne Mall | Madison, WI | 801,248 | ||||||||||||
EastGate Mall | Cincinnati, OH | 847,550 | ||||||||||||
Frontier Mall | Cheyenne, WY | 519,271 | ||||||||||||
Governor's Square | Clarksville, TN | 685,755 | ||||||||||||
Greenbrier Mall | Chesapeake, VA | 897,067 | ||||||||||||
Hanes Mall | Winston-Salem, NC | 1,469,683 | ||||||||||||
Harford Mall | Bel Air, MD | 505,559 | ||||||||||||
Honey Creek Mall | Terre Haute, IN | 676,377 | ||||||||||||
Imperial Valley Mall | El Centro, CA | 826,623 | ||||||||||||
Kirkwood Mall | Bismarck, ND | 860,914 | ||||||||||||
Laurel Park Place | Livonia, MI | 496,877 | ||||||||||||
Layton Hills Mall | Layton, UT | 482,156 | ||||||||||||
Mayfaire Town Center | Wilmington, NC | 638,713 | ||||||||||||
Meridian Mall | Lansing, MI | 943,904 | ||||||||||||
Northgate Mall | Chattanooga, TN | 796,254 |
TIER 2 Sales of ≥ $300 to < $375 per square foot | |||||||||||||||||||||
Property | Location | Total Center SF (1) | Sales Per Square Foot for the Twelve Months Ended (2) | Mall Occupancy | % of Total Mall NOI for the Six Months Ended 6/30/18 (3) | ||||||||||||||||
6/30/18 | 6/30/17 | 6/30/18 | 6/30/17 | ||||||||||||||||||
Northpark Mall | Joplin, MO | 877,834 | |||||||||||||||||||
Old Hickory Mall | Jackson, TN | 542,005 | |||||||||||||||||||
The Outlet Shoppes at Laredo (4) | Laredo, TX | 358,122 | |||||||||||||||||||
Park Plaza | Little Rock, AR | 563,778 | |||||||||||||||||||
Parkdale Mall | Beaumont, TX | 1,290,966 | |||||||||||||||||||
Parkway Place | Huntsville, AL | 648,220 | |||||||||||||||||||
Pearland Town Center | Pearland, TX | 686,222 | |||||||||||||||||||
Post Oak Mall | College Station, TX | 772,805 | |||||||||||||||||||
Richland Mall | Waco, TX | 693,450 | |||||||||||||||||||
South County Center | St. Louis, MO | 1,028,473 | |||||||||||||||||||
Southpark Mall | Colonial Heights, VA | 672,941 | |||||||||||||||||||
Turtle Creek Mall | Hattiesburg, MS | 845,571 | |||||||||||||||||||
Valley View Mall | Roanoke, VA | 864,373 | |||||||||||||||||||
Volusia Mall | Daytona Beach, FL | 1,046,931 | |||||||||||||||||||
WestGate Mall | Spartanburg, SC | 954,743 | |||||||||||||||||||
Westmoreland Mall | Greensburg, PA | 978,609 | |||||||||||||||||||
York Galleria | York, PA | 748,868 | |||||||||||||||||||
Total Tier 2 Malls | 29,851,631 | $ | 342 | $ | 345 | 88.2 | % | 88.7 | % | 51.0 | % |
TIER 3 Sales < $300 per square foot | |||||||||||||||||||||
Property | Location | Total Center SF (1) | Sales Per Square Foot for the Twelve Months Ended (2) | Mall Occupancy | % of Total Mall NOI for the Six Months Ended 6/30/18 (3) | ||||||||||||||||
6/30/18 | 6/30/17 | 6/30/18 | 6/30/17 | ||||||||||||||||||
Alamance Crossing | Burlington, NC | 904,704 | |||||||||||||||||||
Brookfield Square | Brookfield, WI | 997,820 | |||||||||||||||||||
Eastland Mall | Bloomington, IL | 751,430 | |||||||||||||||||||
Janesville Mall | Janesville, WI | 600,137 | |||||||||||||||||||
Kentucky Oaks Mall | Paducah, KY | 890,968 | |||||||||||||||||||
Mid Rivers Mall | St. Peters, MO | 1,029,754 | |||||||||||||||||||
Monroeville Mall | Pittsburgh, PA | 983,948 | |||||||||||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | 249,937 | |||||||||||||||||||
Southaven Towne Center | Southaven, MS | 559,379 | |||||||||||||||||||
Stroud Mall | Stroudsburg, PA | 414,552 | |||||||||||||||||||
Total Tier 3 Malls | 7,382,629 | $ | 270 | $ | 278 | 84.2 | % | 85.3 | % | 9.9 | % | ||||||||||
Total Mall Portfolio | 53,773,290 | $ | 376 | $ | 375 | 89.2 | % | 90.0 | % | 96.6 | % |
Excluded Malls (5) | ||||||||||||||||
Property | Category | Location | Total Center SF (1) | Sales Per Square Foot for the Twelve Months Ended (2) | Mall Occupancy | % of Total Mall NOI for the Six Months Ended 6/30/18 (3) | ||||||||||
6/30/18 | 6/30/17 | 6/30/18 | 6/30/17 | |||||||||||||
Lender Malls: | ||||||||||||||||
Acadiana Mall | Lender | Lafayette, LA | 991,339 | |||||||||||||
Cary Towne Center | Lender | Cary, NC | 901,914 | |||||||||||||
1,893,253 | ||||||||||||||||
Other Excluded Malls: | ||||||||||||||||
Hickory Point Mall | Repositioning | Forsyth, IL | 741,648 | |||||||||||||
Triangle Town Center | Minority Interest | Raleigh, NC | 1,255,236 | |||||||||||||
1,996,884 | ||||||||||||||||
Total Excluded Malls | 3,890,137 | N/A | N/A | N/A | N/A | 3.4 | % |
(1) | Total Center Square Footage includes square footage of shops, owned and leased adjacent junior anchors and anchor locations and leased freestanding locations immediately adjacent to the center. |
(2) | Represents same-center sales per square foot for mall tenants 10,000 square feet or less for stabilized malls. |
(3) | Based on total mall NOI of $292,362,355 for the malls listed in the table above for the six months ended June 30, 2018. |
(4) | The Outlet Shoppes at Laredo is a non-stabilized mall and is excluded from Sales Per Square Foot. |
(5) | 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, or after attempting a restructure, we have determined that the property no longer meets our criteria for long-term investment. |
• | 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) | 454,596 | $ | 45.04 | $ | 41.15 | (8.6 | )% | $ | 41.50 | (7.9 | )% | ||||||||||
Stabilized malls | 436,911 | 45.81 | 41.70 | (9.0 | )% | 42.04 | (8.2 | )% | |||||||||||||
New leases | 84,624 | 45.38 | 42.91 | (5.4 | )% | 44.76 | (1.4 | )% | |||||||||||||
Renewal leases | 352,287 | 45.91 | 41.41 | (9.8 | )% | 41.38 | (9.9 | )% | |||||||||||||
Year-to-Date: | |||||||||||||||||||||
All Property Types (1) | 1,155,382 | $ | 42.40 | $ | 37.41 | (11.8 | )% | $ | 37.98 | (10.4 | )% | ||||||||||
Stabilized malls | 1,122,105 | 42.84 | 37.71 | (12.0 | )% | 38.28 | (10.6 | )% | |||||||||||||
New leases | 177,830 | 42.66 | 40.46 | (5.2 | )% | 42.46 | (0.5 | )% | |||||||||||||
Renewal leases | 944,275 | 42.88 | 37.19 | (13.3 | )% | 37.49 | (12.6 | )% |
Average Annual Base Rents Per Square Foot (3) By Property Type For Small Shop Space Less Than 10,000 Square Feet: | ||||||||||||
Total Leasing Activity: | ||||||||||||
Square Feet | As of June 30, | |||||||||||
Quarter: | 2018 | 2017 | ||||||||||
Operating portfolio: | Same-center stabilized malls | $ | 32.64 | $ | 32.86 | |||||||
New leases | 366,697 | Stabilized malls | 32.64 | 33.16 | ||||||||
Renewal leases | 463,470 | Non-stabilized malls (4) | 25.71 | 25.69 | ||||||||
Development portfolio: | Associated centers | 13.74 | 13.84 | |||||||||
New leases | 19,054 | Community centers | 16.15 | 16.06 | ||||||||
Total leased | 849,221 | Office buildings | 18.64 | 19.06 | ||||||||
Year-to-Date: | ||||||||||||
Operating Portfolio: | ||||||||||||
New leases | 608,136 | |||||||||||
Renewal leases | 1,316,951 | |||||||||||
Development Portfolio: | ||||||||||||
New leases | 103,658 | |||||||||||
Total leased | 2,028,745 | |||||||||||
(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, 2018, including the impact of any rent concessions. Average base rents for associated centers, community centers and office buildings include all leased space, regardless of size. |
(4) | Includes The Outlet Shoppes at Laredo as of June 30, 2018 and The Outlet Shoppes of the Bluegrass and The Outlet Shoppes at Laredo as of June 30, 2017. |
Number of Leases | Square Feet | Term (in years) | Initial Rent PSF | Average Rent PSF | Expiring Rent PSF | Initial Rent Spread | Average Rent Spread | ||||||||||||||||||||||||||||
Commencement 2018: | |||||||||||||||||||||||||||||||||||
New | 89 | 235,794 | 7.41 | $ | 41.07 | $ | 42.90 | $ | 41.71 | $ | (0.64 | ) | (1.5 | )% | $ | 1.19 | 2.9 | % | |||||||||||||||||
Renewal | 409 | 1,316,703 | 2.98 | 33.34 | 33.76 | 39.45 | (6.11 | ) | (15.5 | )% | (5.69 | ) | (14.4 | )% | |||||||||||||||||||||
Commencement 2018 Total | 498 | 1,552,497 | 3.77 | 34.52 | 35.15 | 39.79 | (5.27 | ) | (13.2 | )% | (4.64 | ) | (11.7 | )% | |||||||||||||||||||||
Commencement 2019: | |||||||||||||||||||||||||||||||||||
New | 3 | 11,889 | 10.00 | 47.51 | 50.39 | 24.38 | 23.13 | 94.9 | % | 26.01 | 106.7 | % | |||||||||||||||||||||||
Renewal | 54 | 202,898 | 3.76 | 32.21 | 37.65 | 40.15 | (7.94 | ) | (19.8 | )% | (2.50 | ) | (6.2 | )% | |||||||||||||||||||||
Commencement 2019 Total | 57 | 214,787 | 4.09 | 37.78 | 38.36 | 39.27 | (1.49 | ) | (3.8 | )% | (0.91 | ) | (2.3 | )% | |||||||||||||||||||||
Total 2018/2019 | 555 | 1,767,284 | 3.81 | $ | 34.91 | $ | 35.54 | $ | 39.73 | $ | (4.82 | ) | (12.1 | )% | $ | (4.19 | ) | (10.5 | )% | ||||||||||||||||
Tenant | Number of Stores | Square Feet | Percentage of Total Annualized Revenues (1) | ||||||||
1 | L Brands, Inc. (2) | 134 | 808,329 | 4.10% | |||||||
2 | Signet Jewelers Limited (3) | 175 | 256,264 | 2.81% | |||||||
3 | Foot Locker, Inc. | 114 | 530,463 | 2.60% | |||||||
4 | Ascena Retail Group, Inc. (4) | 168 | 861,026 | 2.16% | |||||||
5 | AE Outfitters Retail Company | 65 | 399,921 | 1.98% | |||||||
6 | Dick's Sporting Goods, Inc. (5) | 27 | 1,512,861 | 1.87% | |||||||
7 | Genesco Inc. (6) | 166 | 273,276 | 1.84% | |||||||
8 | The Gap, Inc. | 55 | 655,708 | 1.44% | |||||||
9 | Express Fashions | 40 | 331,347 | 1.38% | |||||||
10 | Luxottica Group, S.P.A. (7) | 112 | 248,589 | 1.36% | |||||||
11 | H&M | 40 | 839,713 | 1.26% | |||||||
12 | Finish Line, Inc. | 47 | 244,378 | 1.20% | |||||||
13 | Forever 21 Retail, Inc. | 20 | 410,070 | 1.18% | |||||||
14 | The Buckle, Inc. | 46 | 237,790 | 1.12% | |||||||
15 | Charlotte Russe Holding, Inc. | 44 | 280,834 | 1.03% | |||||||
16 | JC Penney Company, Inc. (8) | 49 | 5,881,853 | 1.01% | |||||||
17 | Abercrombie & Fitch, Co. | 45 | 299,937 | 0.98% | |||||||
18 | Shoe Show, Inc. | 42 | 523,766 | 0.86% | |||||||
19 | Barnes & Noble Inc. | 19 | 579,660 | 0.83% | |||||||
20 | Sears, Roebuck and Co. (9) | 40 | 5,528,493 | 0.82% | |||||||
21 | Cinemark | 9 | 467,229 | 0.82% | |||||||
22 | Hot Topic, Inc. | 93 | 211,210 | 0.81% | |||||||
23 | Claire's Stores, Inc. | 85 | 107,470 | 0.77% | |||||||
24 | The Children's Place Retail Stores, Inc. | 47 | 205,959 | 0.75% | |||||||
25 | Ulta | 29 | 298,397 | 0.70% | |||||||
1,711 | 21,994,543 | 35.68% | |||||||||
(1) | Includes the Company's proportionate share of revenues from unconsolidated affiliates based on the Company's ownership percentage in the respective joint venture and any other applicable terms. | ||||||||||
(2) | L Brands, Inc. operates Bath & Body Works, PINK, Victoria's Secret and White Barn Candle. | ||||||||||
(3) | Signet Jewelers Limited operates Belden Jewelers, Gordon's Jewelers, Jared Jewelers, JB Robinson, Kay Jewelers, LeRoy's Jewelers, Marks & Morgan, Osterman's Jewelers, Piercing Pagoda, Rogers Jewelers, Shaw's Jewelers, Silver & Gold Connection, Ultra Diamonds and Zales. | ||||||||||
(4) | Ascena Retail Group, Inc. operates Ann Taylor, Catherines, Dressbarn, Justice, Lane Bryant, LOFT, Lou & Grey and Maurices. | ||||||||||
(5) | Dick's Sporting Goods, Inc. operates Dick's Sporting Goods, Field & Stream and Golf Galaxy. | ||||||||||
(6) | Genesco Inc. operates Clubhouse, Hat Shack, Hat Zone, Johnston & Murphy, Journey's, Journey's Kidz, Lids, Lids Locker Room, Shi by Journey's and Underground by Journeys. | ||||||||||
(7) | Luxottica Group, S.P.A. operates Lenscrafters, Pearle Vision and Sunglass Hut. | ||||||||||
(8) | JC Penney Co., Inc. owns 29 of these stores. | ||||||||||
(9) | In 2017, the Company acquired five Sears locations (four are included in the table above and one is in development) located at its malls, for future redevelopment. Of the 40 stores in the Company's portfolio, Sears owns 21 and Seritage Growth Properties owns 4. Two closed stores are included in the above chart as Sears remains obligated for rent under the respective leases. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Tenant allowances (1) | $ | 13,097 | $ | 10,600 | $ | 28,221 | $ | 20,116 | |||||||
Renovations (2) | — | 3,563 | 563 | 4,065 | |||||||||||
Deferred maintenance: (3) | |||||||||||||||
Parking lot and parking lot lighting | 321 | 2,436 | 665 | 4,261 | |||||||||||
Roof repairs and replacements | 1,799 | 2,449 | 3,424 | 3,063 | |||||||||||
Other capital expenditures | 3,902 | 5,002 | 9,780 | 10,217 | |||||||||||
Total deferred maintenance expenditures | 6,022 | 9,887 | 13,869 | 17,541 | |||||||||||
Total capital expenditures | $ | 19,119 | $ | 24,050 | $ | 42,653 | $ | 41,722 |
(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. |
2018 | 2017 | ||||||
Quarter ended: | |||||||
March 31, | $ | 1,810 | $ | 492 | |||
June 30, | 636 | 794 | |||||
September 30, | 544 | ||||||
December 31, | 565 | ||||||
$ | 2,446 | $ | 2,395 |
CBL's Share of | |||||||||||||||||||||||
Property | Location | CBL Ownership Interest | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | 2018 Cost | Opening Date | Initial Unleveraged Yield | |||||||||||||||
Mall Expansion: | |||||||||||||||||||||||
Parkdale Mall - Restaurant Addition | Beaumont, TX | 100% | 4,700 | $ | 1,315 | $ | 1,409 | $ | 266 | Feb-18/ Mar-18 | 10.4% | ||||||||||||
Other - Outparcel Development: | |||||||||||||||||||||||
Laurel Park Place - Panera Bread (3) | Livonia, MI | 100% | 4,500 | 1,772 | 1,586 | 346 | May-18 | 9.7% | |||||||||||||||
Total Properties Opened | 9,200 | $ | 3,087 | $ | 2,995 | $ | 612 | ||||||||||||||||
(1) Total Cost is presented net of reimbursements to be received. | |||||||||||||||||||||||
(2) Cost to Date does not reflect reimbursements until they are received. | |||||||||||||||||||||||
(3) Outparcel development adjacent to the mall. |
CBL's Share of | |||||||||||||||||||||||
Property | Location | CBL Ownership Interest | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | 2018 Cost | Opening Date | Initial Unleveraged Yield | |||||||||||||||
Mall Redevelopments: | |||||||||||||||||||||||
Frontier Mall - Sports Authority Redevelopment (Planet Fitness) | Cheyenne, WY | 100% | 24,750 | $ | 1,385 | $ | 898 | $ | 676 | Feb-18 | 29.8% | ||||||||||||
York Galleria - Partial JC Penney Redevelopment (Marshalls) | York, PA | 100% | 21,026 | 2,870 | 2,373 | 1,896 | Apr-18 | 11.0% | |||||||||||||||
Total Redevelopments Completed | 45,776 | $ | 4,255 | $ | 3,271 | $ | 2,572 | ||||||||||||||||
(1) Total Cost is presented net of reimbursements to be received. | |||||||||||||||||||||||
(2) Cost to Date does not reflect reimbursements until they are received. |
CBL's Share of | |||||||||||||||||||||||
Property | Location | CBL Ownership Interest | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | 2018 Cost | Expected Opening Date | Initial Unleveraged Yield | |||||||||||||||
Other Developments: | |||||||||||||||||||||||
EastGate Mall - CubeSmart Self-storage (3) (4) | Cincinnati, OH | 50% | 93,501 | $ | 4,514 | $ | 2,334 | $ | 1,480 | Summer-18 | 9.9% | ||||||||||||
Mid Rivers Mall - CubeSmart Self-storage (3) (4) | St. Peters, MO | 50% | 93,540 | 4,122 | 713 | 713 | Fall-18 | 8.9% | |||||||||||||||
The Shoppes at Eagle Point (5) | Cookeville, TN | 50% | 233,454 | 45,098 | 37,485 | 17,152 | Fall-18 | 8.2% | |||||||||||||||
420,495 | 53,734 | 40,532 | 19,345 | ||||||||||||||||||||
CBL's Share of | |||||||||||||||||||||||
Property | Location | CBL Ownership Interest | Total Project Square Feet | Total Cost (1) | Cost to Date (2) | 2018 Cost | Expected Opening Date | Initial Unleveraged Yield | |||||||||||||||
Mall Redevelopments: | |||||||||||||||||||||||
Brookfield Square - Sears Redevelopment (Whirlyball/ Marcus Theaters) (6) | Brookfield, WI | 100% | 126,845 | 27,112 | 4,750 | 4,164 | Spring-19 | 10.7% | |||||||||||||||
Eastland Mall - JC Penney Redevelopment (H&M/Outback/Planet Fitness) | Bloomington, IL | 100% | 52,827 | 10,999 | 4,745 | 4,253 | Fall-18 | 6.3% | |||||||||||||||
East Towne Mall - Flix Brewhouse | Madison, WI | 100% | 40,795 | 9,966 | 8,689 | 2,816 | Summer-18 | 8.4% | |||||||||||||||
East Towne Mall - Portillo's | Madison, WI | 100% | 9,000 | 2,956 | 2,095 | 1,574 | Winter-18 | 8.0% | |||||||||||||||
Friendly Center - O2 Fitness | Greensboro, NC | 50% | 27,048 | 2,285 | 1,036 | 920 | Winter-18 | 10.3% | |||||||||||||||
Hanes Mall - Dave & Buster's | Winston-Salem, NC | 100% | 44,922 | 5,963 | 1,112 | 915 | Spring-19 | 11.0% | |||||||||||||||
Jefferson Mall - Macy's Redevelopment (Round 1) | Louisville, KY | 100% | 50,070 | 9,392 | 4,541 | 3,463 | Winter-18 | 6.9% | |||||||||||||||
Northgate Mall - Sears Auto Center Redevelopment (Aubrey's/Panda Express) | Chattanooga, TN | 100% | 7,500 | 1,797 | 636 | 455 | Winter-18 | 7.6% | |||||||||||||||
Volusia Mall - Sears Auto Center Redevelopment (Bonefish Grill/Metro Diner) | Daytona Beach, FL | 100% | 23,341 | 9,632 | 3,632 | 2,504 | Winter-18 | 8.2% | |||||||||||||||
382,348 | 80,102 | 31,236 | 21,064 | ||||||||||||||||||||
Total Properties Under Development | 802,843 | $ | 133,836 | $ | 71,768 | $ | 40,409 | ||||||||||||||||
(1) Total Cost is presented net of reimbursements to be received. | |||||||||||||||||||||||
(2) Cost to Date does not reflect reimbursements until they are received. | |||||||||||||||||||||||
(3) Yield is based on the expected yield of the stabilized project. | |||||||||||||||||||||||
(4) Outparcel development adjacent to the mall. | |||||||||||||||||||||||
(5) The Company will fund 100% of the required equity contribution so costs in the above table are shown at 100%. A portion of the community center project will be funded through a construction loan with a total borrowing capacity of $36,400. | |||||||||||||||||||||||
(6) The return reflected represents a pro forma incremental return as Total Cost excludes the cost related to the acquisition of the Sears building in 2017. |
Q2 2018 CONFERENCE CALL - THURSDAY, AUGUST 2, 2018 |