Delaware | 1-12494 | 62-1545718 | ||
Delaware | 333-182515-01 | 62-1542285 | ||
(State or Other Jurisdiction of Incorporation or Organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
2030 Hamilton Place Blvd., Suite 500, Chattanooga, TN 37421 | ||||
(Address of principal executive office, including zip code) | ||||
423.855.0001 | ||||
(Registrant's telephone number, including area code) | ||||
N/A | ||||
(Former name, former address and former fiscal year, if changed since last report) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(a) | Financial Statements of Businesses Acquired |
(b) | Pro Forma Financial Information |
(c) | Shell Company Transactions |
(d) | Exhibits |
CBL & ASSOCIATES PROPERTIES, INC. | |
/s/ Farzana Khaleel | |
Farzana Khaleel | |
Executive Vice President - | |
Chief Financial Officer and Treasurer | |
CBL & ASSOCIATES LIMITED PARTNERSHIP | |
By: CBL HOLDINGS I, INC., its general partner | |
/s/ Farzana Khaleel | |
Farzana Khaleel | |
Executive Vice President - | |
Chief Financial Officer and Treasurer |
Page | ||
Earnings Release | ||
Consolidated Statements of Operations | ||
Reconciliations of Supplementary Non-GAAP Financial Measures: | ||
Funds from Operations (FFO) | ||
Same-center Net Operating Income (NOI) | ||
Selected Financial and Equity Information | ||
Consolidated Balance Sheets | ||
Condensed Combined Financial Statements - Unconsolidated Affiliates | ||
Ratio of Adjusted EBITDAre to Interest Expense and Reconciliation of Adjusted EBITDAre to Operating Cash Flows | ||
Schedule of Mortgage and Other Indebtedness | ||
Schedule of Maturities and Unsecured Debt Covenant Compliance Ratios | ||
Unencumbered Consolidated Portfolio Statistics | ||
Mall Portfolio Statistics | ||
Leasing Activity and Average Annual Base Rents | ||
Top 25 Tenants Based on Percentage of Total Annual Revenues | ||
Capital Expenditures | ||
Development Activity | ||
CBL Core Portfolio Exposure to Sears and Closed Bon-Ton Locations and Redevelopment Plans |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||
2018 | 2017 | % | 2018 | 2017 | % | ||||||||||||||||
Net income (loss) attributable to common shareholders per diluted share | $ | (0.39 | ) | $ | 0.15 | (360.0 | )% | $ | (0.73 | ) | $ | 0.44 | (265.9 | )% | |||||||
Funds from Operations ("FFO") per diluted share | $ | 0.44 | $ | 0.55 | (20.0 | )% | $ | 1.70 | $ | 2.18 | (22.0 | )% | |||||||||
FFO, as adjusted, per diluted share (1) | $ | 0.45 | $ | 0.56 | (19.6 | )% | $ | 1.73 | $ | 2.08 | (16.8 | )% | |||||||||
(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 attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 10 of this earnings release. |
• | In January 2019, CBL announced a new $1.185 billion secured credit facility maturing in July 2023. |
• | In 2018, CBL completed more than $340 million of financing activity. |
• | In 2018, CBL completed gross asset sales of more than $100 million, including a tier 3 mall and approximately $35 million in outparcel. |
• | FFO per diluted share, as adjusted, was $0.45 in the fourth quarter 2018 compared to $0.56 in the prior year period. Major items impacting fourth quarter 2018 FFO, as adjusted, include approximately $0.01 per share of dilution from asset sales, $0.07 per share lower property net operating income primarily due to retailer and anchor bankruptcies, $0.01 per share higher net interest expense and $0.02 per share due to lower gains on outparcel sales. |
• | FFO per diluted share, as adjusted, was $1.73 for 2018, compared with $2.08 in the prior-year period. Major items impacting 2018 FFO, as adjusted, include approximately $0.08 per share of dilution from asset sales and non-core properties, $0.20 per share lower property net operating income primarily due to retailer and anchor bankruptcies, $0.02 per share of higher G&A expense substantially related to one-time severance expense, $0.01 per share higher interest expense and $0.02 per share lower gains on outparcel sales. |
• | Same-center NOI improved sequentially to a decline of 4.4% for the fourth quarter 2018, over the prior-year quarter. For the full-year 2018 same-center NOI declined 6.0%, over the prior-year period. |
• | Average gross rent per square foot declined 10.8% for stabilized mall leases signed in 2018 over the prior rate. |
• | Total portfolio occupancy at December 31, 2018 was 93.1%, representing a sequential improvement of 110 basis points and a 10 basis point decline from the prior year-end. |
• | Same-center sales per square foot for 2018 were $377, an increase of 0.5% compared with $375 for 2017. |
1 | ![]() |
Three Months Ended December 31, | Year Ended December 31, | ||
2018 | 2018 | ||
Portfolio same-center NOI | (4.4)% | (6.0)% | |
Mall same-center NOI | (4.6)% | (6.2)% |
▪ | NOI declined $40.1 million during 2018, primarily due to a $41.7 million decrease in revenue offset by a $1.8 million decrease in expense. |
2 | ![]() |
▪ | Minimum rents, tenant reimbursements and other revenues declined $41.8 million, primarily due to store closures and rent concessions related to tenants in bankruptcy. |
▪ | Other rents, including business development and short-term specialty leasing, declined $0.2 million. |
▪ | Percentage rents increased $0.3 million, due to an increase in sales. |
▪ | Property operating expense declined $2.5 million and real estate tax expense declined $2.1 million. Maintenance and repairs expense increased $2.8 million, substantially due to a $1.8 million increase in snow removal expense. |
As of December 31, | ||||
2018 | 2017 | |||
Portfolio occupancy | 93.1% | 93.2% | ||
Mall portfolio | 91.8% | 92.0% | ||
Same-center malls | 92.1% | 92.2% | ||
Stabilized malls | 92.1% | 92.1% | ||
Non-stabilized malls (2) | 76.7% | 88.4% | ||
Associated centers | 97.4% | 97.9% | ||
Community centers | 97.2% | 96.8% | ||
(1) Occupancy for malls represents percentage of mall store gross leasable area less than 20,000 square feet 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 December 31, 2018 and occupancy for The Outlet Shoppes of the Bluegrass and The Outlet Shoppes at Laredo as of December 31, 2017. |
% Change in Average Gross Rent Per Square Foot | ||||
Three Months Ended December 31, | Year Ended December 31, | |||
2018 | 2018 | |||
Stabilized Malls | (9.1)% | (10.8)% | ||
New leases | 2.6% | (1.7)% | ||
Renewal leases | (11.3)% | (12.5)% |
Year Ended December 31, | ||||||||
2018 | 2017 | % Change | ||||||
Stabilized mall same-center sales per square foot | $ | 377 | $ | 375 | 0.5% | |||
Stabilized mall sales per square foot | $ | 377 | $ | 372 | 1.3% |
3 | ![]() |
Property | Location | Date Closed | Gross Sales Price (M) | |||||
Various Outparcels | Various | Various | $ | 35.9 | ||||
Phase III Gulf Coast Town Center | Ft. Myers, FL | March | 9.0 | |||||
Janesville Mall | Janesville, WI | July | 18.0 | |||||
Statesboro Crossing | Statesboro, GA | August | 21.5 | |||||
Parkway Plaza | Ft. Oglethorpe, GA | October | 16.5 | |||||
Total | $ | 100.9 |
4 | ![]() |
Low | High | ||
2019 FFO per share, as adjusted (includes the Reserve) | $1.41 | $1.46 | |
2019 Change in Same-Center NOI ("SC NOI") (includes the Reserve) | (7.75)% | (6.25)% | |
Reserve for unbudgeted lost rents included in SC NOI and FFO | $15.0 million | $5.0 million | |
Gains on outparcel sales | $10.0 million | $15.0 million |
Estimated Impact to 2019 SC NOI | Explanation | |||
New Leasing/Contractual Rent Increases | 3.0% | |||
Rent loss from Anchor Closures | (1.8)% | Includes 2018 actual and 2019 budgeted anchor closures | ||
Store Closures/Non-renewals | (3.1)% | Includes 2018 actual and budgeted 2019 store closures at natural lease maturation as well as mid-term store closures primarily related to tenants in bankruptcy | ||
Lease Renewals | (2.1)% | Impact of net lease renewals completed in 2018 and budgeted for 2019, including certain tenants in bankruptcy reorganization | ||
Lease Modifications/Co-tenancy | (1.4)% | Mid-term lease modifications or co-tenancy rent triggered in 2018 and budgeted for 2019 | ||
Reserve for lost rents | (1.6)% | Mid-point ($10M) of reserve for future unbudgeted lost rents | ||
Total 2019 SC NOI Change at Midpoint | (7.0)% |
2018 FFO per share, as adjusted | $ | 1.73 | |
Change in SC NOI (excluding reserve for unbudgeted lost rents) | (0.17 | ) | |
Reserve for unbudgeted lost rents ($10M) | (0.05 | ) | |
Outparcel Sales Gains | — | ||
Dilution from 2018 Asset Sales | (0.04 | ) | |
Net Interest Expense (pro rata share of consolidated and unconsolidated) | — | ||
Net Impact of Non-Core and Other Corporate Items | (0.03 | ) | |
Mid-point of 2019 FFO, per share, as adjusted guidance | $ | 1.44 |
5 | ![]() |
Low | High | ||||||
Expected diluted earnings per common share | $ | 0.42 | $ | 0.47 | |||
Adjust to fully converted shares from common shares | (0.06 | ) | (0.06 | ) | |||
Expected earnings per diluted, fully converted common share | 0.36 | 0.41 | |||||
Add: depreciation and amortization | 1.36 | 1.36 | |||||
Add: noncontrolling interest in earnings of Operating Partnership | 0.06 | 0.06 | |||||
Expected FFO per diluted, fully converted common share | 1.78 | 1.83 | |||||
Gain on extinguishment of debt | (0.37 | ) | (0.37 | ) | |||
Expected FFO, as adjusted, per diluted, fully converted common share | $ | 1.41 | $ | 1.46 |
6 | ![]() |
7 | ![]() |
8 | ![]() |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
REVENUES: | |||||||||||||||
Minimum rents | $ | 146,910 | $ | 155,966 | $ | 588,007 | $ | 624,161 | |||||||
Percentage rents | 5,149 | 4,747 | 11,759 | 11,874 | |||||||||||
Other rents | 5,136 | 7,837 | 12,034 | 19,008 | |||||||||||
Tenant reimbursements | 44,712 | 61,975 | 217,313 | 254,552 | |||||||||||
Management, development and leasing fees | 2,520 | 3,235 | 10,542 | 11,982 | |||||||||||
Other | 12,454 | 1,596 | 18,902 | 5,675 | |||||||||||
Total revenues | 216,881 | 235,356 | 858,557 | 927,252 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Property operating | 29,660 | 31,780 | 122,017 | 128,030 | |||||||||||
Depreciation and amortization | 68,140 | 73,629 | 285,401 | 299,090 | |||||||||||
Real estate taxes | 20,554 | 21,574 | 82,291 | 83,917 | |||||||||||
Maintenance and repairs | 11,591 | 12,284 | 48,304 | 48,606 | |||||||||||
General and administrative | 13,661 | 13,064 | 61,506 | 58,466 | |||||||||||
Loss on impairment | 91,769 | — | 176,413 | 71,401 | |||||||||||
Other | 410 | 29 | 787 | 5,180 | |||||||||||
Total operating expenses | 235,785 | 152,360 | 776,719 | 694,690 | |||||||||||
Income (loss) from operations | (18,904 | ) | 82,996 | 81,838 | 232,562 | ||||||||||
Interest and other income | 1,144 | 471 | 1,858 | 1,706 | |||||||||||
Interest expense | (56,874 | ) | (53,501 | ) | (220,038 | ) | (218,680 | ) | |||||||
Gain on extinguishment of debt | — | — | — | 30,927 | |||||||||||
Loss on investment | — | — | — | (6,197 | ) | ||||||||||
Income tax benefit (provision) | (295 | ) | (2,851 | ) | 1,551 | 1,933 | |||||||||
Equity in earnings of unconsolidated affiliates | 4,808 | 6,535 | 14,677 | 22,939 | |||||||||||
Gain on sales of real estate assets | 3,003 | 6,888 | 19,001 | 93,792 | |||||||||||
Net income (loss) | (67,118 | ) | 40,538 | (101,113 | ) | 158,982 | |||||||||
Net (income) loss attributable to noncontrolling interests in: | |||||||||||||||
Operating Partnership | 10,710 | (3,950 | ) | 19,688 | (12,652 | ) | |||||||||
Other consolidated subsidiaries | 604 | (124 | ) | 973 | (25,390 | ) | |||||||||
Net income (loss) attributable to the Company | (55,804 | ) | 36,464 | (80,452 | ) | 120,940 | |||||||||
Preferred dividends | (11,223 | ) | (11,223 | ) | (44,892 | ) | (44,892 | ) | |||||||
Net income (loss) attributable to common shareholders | $ | (67,027 | ) | $ | 25,241 | $ | (125,344 | ) | $ | 76,048 | |||||
Basic and diluted per share data attributable to common shareholders: | |||||||||||||||
Net income (loss) attributable to common shareholders | $ | (0.39 | ) | $ | 0.15 | $ | (0.73 | ) | $ | 0.44 | |||||
Weighted-average common shares outstanding | 172,665 | 171,098 | 172,486 | 171,070 | |||||||||||
Dividends declared per common share | $ | 0.075 | $ | 0.200 | $ | 0.675 | $ | 0.995 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) attributable to common shareholders | $ | (67,027 | ) | $ | 25,241 | $ | (125,344 | ) | $ | 76,048 | |||||
Noncontrolling interest in income (loss) of Operating Partnership | (10,710 | ) | 3,950 | (19,688 | ) | 12,652 | |||||||||
Depreciation and amortization expense of: | |||||||||||||||
Consolidated properties | 68,140 | 73,629 | 285,401 | 299,090 | |||||||||||
Unconsolidated affiliates | 10,681 | 9,591 | 41,858 | 38,124 | |||||||||||
Non-real estate assets | (913 | ) | (936 | ) | (3,661 | ) | (3,526 | ) | |||||||
Noncontrolling interests' share of depreciation and amortization | (2,177 | ) | (2,186 | ) | (8,601 | ) | (8,977 | ) | |||||||
Loss on impairment, net of taxes | 91,657 | — | 176,300 | 70,185 | |||||||||||
Loss on impairment of unconsolidated affiliates | — | — | 1,022 | — | |||||||||||
Gain on depreciable property, net of taxes and noncontrolling interests' share | (1,941 | ) | (222 | ) | (7,484 | ) | (48,983 | ) | |||||||
FFO allocable to Operating Partnership common unitholders | 87,710 | 109,067 | 339,803 | 434,613 | |||||||||||
Litigation expenses (1) | — | 34 | — | 103 | |||||||||||
Nonrecurring professional fees reimbursement (1) | — | — | — | (919 | ) | ||||||||||
Loss on investment (2) | — | — | — | 6,197 | |||||||||||
Non-cash default interest expense (3) | 1,669 | 921 | 5,285 | 5,319 | |||||||||||
Impact of new tax law on income tax expense | — | 2,309 | — | 2,309 | |||||||||||
Gain on extinguishment of debt, net of noncontrolling interests' share (4) | — | — | — | (33,902 | ) | ||||||||||
FFO allocable to Operating Partnership common unitholders, as adjusted | $ | 89,379 | $ | 112,331 | $ | 345,088 | $ | 413,720 | |||||||
FFO per diluted share | $ | 0.44 | $ | 0.55 | $ | 1.70 | $ | 2.18 | |||||||
FFO, as adjusted, per diluted share | $ | 0.45 | $ | 0.56 | $ | 1.73 | $ | 2.08 | |||||||
Weighted average common and potential dilutive common shares outstanding with Operating Partnership units fully converted | 199,430 | 199,314 | 199,580 | 199,322 | |||||||||||
(1) Litigation expenses 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 year ended December 31, 2017 includes a loss on investment related to the write down of our 25% interest in River Ridge Mall based on the contract price to sell such interest to our joint venture partner. The sale closed in August 2017. | |||||||||||||||
(3) The three months and year ended December 31, 2018 includes non-cash default interest expense related to Acadiana Mall, Cary Town Center and Triangle Town Center. The three months and year ended December 31, 2017 includes default interest expense related to Acadiana Mall. The year ended December 31, 2017 also includes default interest expense related to Chesterfield Mall, Midland Mall and Wausau Center. | |||||||||||||||
(4) The year ended December 31, 2017 includes a $6,851 gain on extinguishment of debt related to the non-recourse loan secured by Wausau Center, which was conveyed to the lender in the third quarter of 2017, which was partially offset by a loss on extinguishment of debt related to a prepayment fee of $371 related to the early retirement of a mortgage loan, a 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, a 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 the second quarter of 2017, and a 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 December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Diluted EPS attributable to common shareholders | $ | (0.39 | ) | $ | 0.15 | $ | (0.73 | ) | $ | 0.44 | |||||
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 | 0.38 | 0.40 | 1.58 | 1.64 | |||||||||||
Loss on impairment, net of taxes | 0.46 | — | 0.89 | 0.35 | |||||||||||
Gain on depreciable property, net of taxes and noncontrolling interests' share | (0.01 | ) | — | (0.04 | ) | (0.25 | ) | ||||||||
FFO per diluted share | $ | 0.44 | $ | 0.55 | $ | 1.70 | $ | 2.18 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
FFO allocable to Operating Partnership common unitholders | $ | 87,710 | $ | 109,067 | $ | 339,803 | $ | 434,613 | |||||||
Percentage allocable to common shareholders (1) | 86.58 | % | 85.84 | % | 86.42 | % | 85.83 | % | |||||||
FFO allocable to common shareholders | $ | 75,939 | $ | 93,623 | $ | 293,658 | $ | 373,028 | |||||||
FFO allocable to Operating Partnership common unitholders, as adjusted | $ | 89,379 | $ | 112,331 | $ | 345,088 | $ | 413,720 | |||||||
Percentage allocable to common shareholders (1) | 86.58 | % | 85.84 | % | 86.42 | % | 85.83 | % | |||||||
FFO allocable to common shareholders, as adjusted | $ | 77,384 | $ | 96,425 | $ | 298,225 | $ | 355,096 | |||||||
(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. |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
SUPPLEMENTAL FFO INFORMATION: | |||||||||||||||
Lease termination fees | $ | 317 | $ | 2,042 | $ | 10,105 | $ | 4,036 | |||||||
Lease termination fees per share | $ | — | $ | 0.01 | $ | 0.05 | $ | 0.02 | |||||||
Straight-line rental income | $ | (1,108 | ) | $ | (197 | ) | $ | (5,031 | ) | $ | 31 | ||||
Straight-line rental income per share | $ | (0.01 | ) | $ | — | $ | (0.03 | ) | $ | — | |||||
Gains on outparcel sales | $ | 1,679 | $ | 6,678 | $ | 13,138 | $ | 18,374 | |||||||
Gains on outparcel sales per share | $ | 0.01 | $ | 0.03 | $ | 0.07 | $ | 0.09 | |||||||
Net amortization of acquired above- and below-market leases | $ | 662 | $ | 903 | $ | 1,644 | $ | 4,365 | |||||||
Net amortization of acquired above- and below-market leases per share | $ | — | $ | — | $ | 0.01 | $ | 0.02 | |||||||
Net amortization of debt (premiums) discounts | $ | 316 | $ | 140 | $ | 1,043 | $ | (632 | ) | ||||||
Net amortization of debt (premiums) discounts per share | $ | — | $ | — | $ | 0.01 | $ | — | |||||||
Income tax benefit (provision) prior to impact of 2017 tax law | $ | (295 | ) | $ | (542 | ) | $ | 1,551 | $ | 4,242 | |||||
Income tax benefit (provision) prior to impact of 2017 tax law per share | $ | — | $ | — | $ | 0.01 | $ | 0.02 | |||||||
Impact of new tax law on income tax expense | $ | — | $ | (2,309 | ) | $ | — | $ | (2,309 | ) | |||||
Impact of new tax law on income tax expense per share | $ | — | $ | (0.01 | ) | $ | — | $ | (0.01 | ) | |||||
Abandoned projects expense | $ | (410 | ) | $ | (29 | ) | $ | (787 | ) | $ | (5,180 | ) | |||
Abandoned projects expense per share | $ | — | $ | — | $ | — | $ | (0.03 | ) | ||||||
Gain on extinguishment of debt, net of noncontrolling interests' share | $ | — | $ | — | $ | — | $ | 33,902 | |||||||
Gain on extinguishment of debt, net of noncontrolling interests' share, per share | $ | — | $ | — | $ | — | $ | 0.17 | |||||||
Non cash default interest expense | $ | (1,669 | ) | $ | (921 | ) | $ | (5,285 | ) | $ | (5,319 | ) | |||
Non cash default interest expense per share | $ | (0.01 | ) | $ | — | $ | (0.03 | ) | $ | (0.03 | ) | ||||
Loss on investment | $ | — | $ | — | $ | — | $ | (6,197 | ) | ||||||
Loss on investment per share | $ | — | $ | — | $ | — | $ | (0.03 | ) | ||||||
Interest capitalized | $ | 919 | $ | 554 | $ | 3,655 | $ | 2,230 | |||||||
Interest capitalized per share | $ | — | $ | — | $ | 0.02 | $ | 0.01 | |||||||
Litigation expenses | $ | — | $ | (34 | ) | $ | — | $ | (103 | ) | |||||
Litigation expenses per share | $ | — | $ | — | $ | — | $ | — | |||||||
Nonrecurring professional fees reimbursement | $ | — | $ | — | $ | — | $ | 919 | |||||||
Nonrecurring professional fees reimbursement per share | $ | — | $ | — | $ | — | $ | — |
As of December 31, | ||||||||
2018 | 2017 | |||||||
Straight-line rent receivable | $ | 55,902 | $ | 61,506 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | (67,118 | ) | $ | 40,538 | $ | (101,113 | ) | $ | 158,982 | |||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 68,140 | 73,629 | 285,401 | 299,090 | |||||||||||
Depreciation and amortization from unconsolidated affiliates | 10,681 | 9,591 | 41,858 | 38,124 | |||||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (2,177 | ) | (2,186 | ) | (8,601 | ) | (8,977 | ) | |||||||
Interest expense | 56,874 | 53,501 | 220,038 | 218,680 | |||||||||||
Interest expense from unconsolidated affiliates | 6,754 | 6,268 | 25,603 | 25,083 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,837 | ) | (1,902 | ) | (7,749 | ) | (7,062 | ) | |||||||
Abandoned projects expense | 410 | 29 | 787 | 5,180 | |||||||||||
Gain on sales of real estate assets | (3,003 | ) | (6,888 | ) | (19,001 | ) | (93,792 | ) | |||||||
Gain on sales of real estate assets of unconsolidated affiliates | (1,043 | ) | (12 | ) | (1,607 | ) | (201 | ) | |||||||
Noncontrolling interests' share of gain on sales of real estate assets in other consolidated subsidiaries | — | — | — | 26,639 | |||||||||||
Loss on investment | — | — | — | 6,197 | |||||||||||
Gain on extinguishment of debt | — | — | — | (30,927 | ) | ||||||||||
Noncontrolling interests' share of loss on extinguishment of debt in other consolidated subsidiaries | — | — | — | (2,975 | ) | ||||||||||
Loss on impairment | 91,769 | — | 176,413 | 71,401 | |||||||||||
Income tax (benefit) provision | 295 | 2,851 | (1,551 | ) | (1,933 | ) | |||||||||
Lease termination fees | (317 | ) | (2,042 | ) | (10,105 | ) | (4,036 | ) | |||||||
Straight-line rent and above- and below-market lease amortization | 446 | (711 | ) | 3,387 | (4,396 | ) | |||||||||
Net (income) loss attributable to noncontrolling interest in other consolidated subsidiaries | 604 | (124 | ) | 973 | (25,390 | ) | |||||||||
General and administrative expenses | 13,661 | 13,064 | 61,506 | 58,466 | |||||||||||
Management fees and non-property level revenues | (4,501 | ) | (4,046 | ) | (14,143 | ) | (14,115 | ) | |||||||
Operating Partnership's share of property NOI | 169,638 | 181,560 | 652,096 | 714,038 | |||||||||||
Non-comparable NOI | (5,367 | ) | (9,750 | ) | (26,582 | ) | (48,420 | ) | |||||||
Total same-center NOI (1) | $ | 164,271 | $ | 171,810 | $ | 625,514 | $ | 665,618 | |||||||
Total same-center NOI percentage change | (4.4 | )% | (6.0 | )% |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Malls | $ | 148,862 | $ | 155,970 | $ | 564,855 | $ | 602,394 | |||||||
Associated centers | 8,337 | 8,282 | 32,566 | 33,173 | |||||||||||
Community centers | 5,616 | 5,609 | 21,918 | 22,618 | |||||||||||
Offices and other | 1,456 | 1,949 | 6,175 | 7,433 | |||||||||||
Total same-center NOI (1) | $ | 164,271 | $ | 171,810 | $ | 625,514 | $ | 665,618 | |||||||
Percentage Change: | |||||||||||||||
Malls | (4.6 | )% | (6.2 | )% | |||||||||||
Associated centers | 0.7 | % | (1.8 | )% | |||||||||||
Community centers | 0.1 | % | (3.1 | )% | |||||||||||
Offices and other | (25.3 | )% | (16.9 | )% | |||||||||||
Total same-center NOI (1) | (4.4 | )% | (6.0 | )% |
(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 December 31, 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 December 31, 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. |
As of December 31, 2018 | ||||||||||||||||||||
Fixed Rate | Variable Rate | Total per Debt Schedule | Unamortized Deferred Financing Costs | Total | ||||||||||||||||
Consolidated debt | $ | 3,147,108 | $ | 955,751 | $ | 4,102,859 | (1) | $ | (15,963 | ) | $ | 4,086,896 | ||||||||
Noncontrolling interests' share of consolidated debt | (94,361 | ) | — | (94,361 | ) | 804 | (93,557 | ) | ||||||||||||
Company's share of unconsolidated affiliates' debt | 550,673 | 99,904 | 650,577 | (2,687 | ) | 647,890 | ||||||||||||||
Company's share of consolidated and unconsolidated debt | $ | 3,603,420 | $ | 1,055,655 | $ | 4,659,075 | $ | (17,846 | ) | $ | 4,641,229 | |||||||||
Weighted average interest rate | 5.16 | % | 4.28 | % | 4.96 | % | ||||||||||||||
As of December 31, 2017 | ||||||||||||||||||||
Fixed Rate | Variable Rate | Total per Debt Schedule | Unamortized Deferred Financing Costs | Total | ||||||||||||||||
Consolidated debt | $ | 3,158,973 | $ | 1,090,810 | $ | 4,249,783 | $ | (18,938 | ) | $ | 4,230,845 | |||||||||
Noncontrolling interests' share of consolidated debt | (77,155 | ) | (5,418 | ) | (82,573 | ) | 687 | (81,886 | ) | |||||||||||
Company's share of unconsolidated affiliates' debt | 532,766 | 64,455 | 597,221 | (2,441 | ) | 594,780 | ||||||||||||||
Company's share of consolidated and unconsolidated debt | $ | 3,614,584 | $ | 1,149,847 | $ | 4,764,431 | $ | (20,692 | ) | $ | 4,743,739 | |||||||||
Weighted average interest rate | 5.19 | % | 2.93 | % | 4.65 | % | ||||||||||||||
(1) Includes $43,716 of debt related to Cary Town Center that is classified in liabilities related to assets held for sale in the consolidated balance sheet as of December 31, 2018. The mall was sold in January 2019. |
Shares Outstanding | Stock Price (1) | Value | |||||||||
Common stock and Operating Partnership units | 199,415 | $ | 1.92 | $ | 382,877 | ||||||
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 | 1,009,127 | ||||||||||
Company's share of total debt, excluding unamortized deferred financing costs | 4,659,075 | ||||||||||
Total market capitalization | $ | 5,668,202 | |||||||||
Debt-to-total-market capitalization ratio | 82.2 | % | |||||||||
(1) Stock price for common stock and Operating Partnership units equals the closing price of the common stock on December 31, 2018. The stock prices for the preferred stocks represent the liquidation preference of each respective series. |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||
2018: | Basic | Diluted | Basic | Diluted | ||||||||
Weighted average shares - EPS | 172,665 | 172,665 | 172,486 | 172,486 | ||||||||
Weighted average Operating Partnership units | 26,765 | 26,765 | 27,094 | 27,094 | ||||||||
Weighted average shares - FFO | 199,430 | 199,430 | 199,580 | 199,580 | ||||||||
2017: | ||||||||||||
Weighted average shares - EPS | 171,098 | 171,098 | 171,070 | 171,070 | ||||||||
Weighted average Operating Partnership units | 28,216 | 28,216 | 28,252 | 28,252 | ||||||||
Weighted average shares - FFO | 199,314 | 199,314 | 199,322 | 199,322 |
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Weighted average cash dividend per share | $ | 0.08590 | $ | 0.20888 | $ | 0.71251 | $ | 1.02731 | ||||||||
FFO as adjusted, per diluted fully converted share | $ | 0.45 | $ | 0.56 | $ | 1.73 | $ | 2.08 | ||||||||
Dividend payout ratio | 19.1 | % | 37.3 | % | 41.2 | % | 49.4 | % |
Consolidated Balance Sheets (Unaudited; in thousands, except share data) | |||||||
As of December 31, | |||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Real estate assets: | |||||||
Land | $ | 793,944 | $ | 813,390 | |||
Buildings and improvements | 6,413,003 | 6,723,194 | |||||
7,206,947 | 7,536,584 | ||||||
Accumulated depreciation | (2,493,082 | ) | (2,465,095 | ) | |||
4,713,865 | 5,071,489 | ||||||
Held for sale | 30,971 | — | |||||
Developments in progress | 38,807 | 85,346 | |||||
Net investment in real estate assets | 4,783,643 | 5,156,835 | |||||
Cash and cash equivalents | 25,138 | 32,627 | |||||
Receivables: | |||||||
Tenant, net of allowance for doubtful accounts of $2,337 and $2,011 in 2018 and 2017, respectively | 77,788 | 83,552 | |||||
Other, net of allowance for doubtful accounts of $838 in 2017 | 7,511 | 7,570 | |||||
Mortgage and other notes receivable | 7,672 | 8,945 | |||||
Investments in unconsolidated affiliates | 283,553 | 249,192 | |||||
Intangible lease assets and other assets | 153,665 | 166,087 | |||||
$ | 5,338,970 | $ | 5,704,808 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Mortgage and other indebtedness, net | $ | 4,043,180 | $ | 4,230,845 | |||
Accounts payable and accrued liabilities | 218,217 | 228,650 | |||||
Liabilities related to assets held for sale | 43,716 | — | |||||
Total liabilities | 4,305,113 | 4,459,495 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interests | 3,575 | 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, 172,656,458 and 171,088,778 issued and outstanding in 2018 and 2017, respectively | 1,727 | 1,711 | |||||
Additional paid-in capital | 1,968,280 | 1,974,537 | |||||
Dividends in excess of cumulative earnings | (1,007,778 | ) | (836,269 | ) | |||
Total shareholders' equity | 962,254 | 1,140,004 | |||||
Noncontrolling interests | 68,028 | 96,474 | |||||
Total equity | 1,030,282 | 1,236,478 | |||||
$ | 5,338,970 | $ | 5,704,808 |
As of December 31, | |||||||
2018 | 2017 | ||||||
ASSETS: | |||||||
Investment in real estate assets | $ | 2,099,108 | $ | 2,089,262 | |||
Accumulated depreciation | (674,275 | ) | (618,922 | ) | |||
1,424,833 | 1,470,340 | ||||||
Developments in progress | 12,569 | 36,765 | |||||
Net investment in real estate assets | 1,437,402 | 1,507,105 | |||||
Other assets | 186,501 | 201,114 | |||||
Total assets | $ | 1,623,903 | $ | 1,708,219 | |||
LIABILITIES: | |||||||
Mortgage and other indebtedness, net | $ | 1,319,949 | $ | 1,248,817 | |||
Other liabilities | 39,777 | 41,291 | |||||
Total liabilities | 1,359,726 | 1,290,108 | |||||
OWNERS' EQUITY: | |||||||
The Company | 191,050 | 216,292 | |||||
Other investors | 73,127 | 201,819 | |||||
Total owners' equity | 264,177 | 418,111 | |||||
Total liabilities and owners’ equity | $ | 1,623,903 | $ | 1,708,219 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Total revenues | $ | 58,230 | $ | 61,357 | $ | 225,073 | $ | 236,607 | |||||||
Depreciation and amortization | (19,256 | ) | (19,826 | ) | (78,174 | ) | (80,102 | ) | |||||||
Loss on impairment | — | — | (89,826 | ) | — | ||||||||||
Other operating expenses | (18,030 | ) | (18,475 | ) | (72,056 | ) | (71,293 | ) | |||||||
Income (loss) from operations | 20,944 | 23,056 | (14,983 | ) | 85,212 | ||||||||||
Interest income | 356 | 485 | 1,415 | 1,671 | |||||||||||
Interest expense | (13,958 | ) | (12,952 | ) | (52,803 | ) | (51,843 | ) | |||||||
Gain on sales of real estate assets | 1,928 | 26 | 3,056 | 555 | |||||||||||
Net income (loss) | $ | 9,270 | $ | 10,615 | $ | (63,315 | ) | $ | 35,595 |
Company's Share for the Three Months Ended December 31, | Company's Share for the Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Total revenues | $ | 29,653 | $ | 30,999 | $ | 115,851 | $ | 118,915 | |||||||
Depreciation and amortization | (10,681 | ) | (9,591 | ) | (41,858 | ) | (38,124 | ) | |||||||
Loss on impairment | — | — | (1,022 | ) | — | ||||||||||
Other operating expenses | (8,699 | ) | (8,928 | ) | (35,274 | ) | (34,078 | ) | |||||||
Income from operations | 10,273 | 12,480 | 37,697 | 46,713 | |||||||||||
Interest income | 246 | 311 | 976 | 1,108 | |||||||||||
Interest expense | (6,754 | ) | (6,268 | ) | (25,603 | ) | (25,083 | ) | |||||||
Gain on sales of real estate assets | 1,043 | 12 | 1,607 | 201 | |||||||||||
Net income | $ | 4,808 | $ | 6,535 | $ | 14,677 | $ | 22,939 |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Net income (loss) | $ | (67,118 | ) | $ | 40,538 | $ | (101,113 | ) | $ | 158,982 | |||||
Depreciation and amortization | 68,140 | 73,629 | 285,401 | 299,090 | |||||||||||
Depreciation and amortization from unconsolidated affiliates | 10,681 | 9,591 | 41,858 | 38,124 | |||||||||||
Interest expense | 56,874 | 53,501 | 220,038 | 218,680 | |||||||||||
Interest expense from unconsolidated affiliates | 6,754 | 6,268 | 25,603 | 25,083 | |||||||||||
Income taxes | 353 | 3,605 | (909 | ) | 1,313 | ||||||||||
Loss on impairment | 91,769 | — | 176,413 | 71,401 | |||||||||||
Loss on impairment of unconsolidated affiliates | — | — | 1,022 | — | |||||||||||
Gain on depreciable property | (1,941 | ) | (211 | ) | (7,484 | ) | (75,640 | ) | |||||||
Loss on investment | — | — | — | 6,197 | |||||||||||
EBITDAre (1) | 165,512 | 186,921 | 640,829 | 743,230 | |||||||||||
Gain on extinguishment of debt, net of noncontrolling interests' share | — | — | — | (33,902 | ) | ||||||||||
Abandoned projects | 410 | 29 | 787 | 5,180 | |||||||||||
Net (income) loss attributable to noncontrolling interest in other consolidated subsidiaries | 604 | (124 | ) | 973 | (25,390 | ) | |||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | (2,177 | ) | (2,186 | ) | (8,601 | ) | (8,977 | ) | |||||||
Noncontrolling interests' share of interest expense in earnings of other consolidated subsidiaries | (1,837 | ) | (1,902 | ) | (7,749 | ) | (7,062 | ) | |||||||
Noncontrolling interests' share of gain on depreciable property | — | — | — | 26,639 | |||||||||||
Company's share of Adjusted EBITDAre | $ | 162,512 | $ | 182,738 | $ | 626,239 | $ | 699,718 | |||||||
(1) Includes $1,679 and $6,677 for the three months ended December 31, 2018 and 2017, respectively, and $13,138 and $18,378 for the year ended December 31, 2018 and 2017, respectively, related to sales of non-depreciable real estate assets. | |||||||||||||||
Interest Expense: | |||||||||||||||
Interest expense | $ | 56,874 | $ | 53,501 | $ | 220,038 | $ | 218,680 | |||||||
Interest expense from unconsolidated affiliates | 6,754 | 6,268 | 25,603 | 25,083 | |||||||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | (1,837 | ) | (1,902 | ) | (7,749 | ) | (7,062 | ) | |||||||
Company's share of total interest expense | $ | 61,791 | $ | 57,867 | $ | 237,892 | $ | 236,701 | |||||||
Ratio of Adjusted EBITDAre to Interest Expense | 2.6 | x | 3.2 | x | 2.6 | x | 3.0 | x |
Reconciliation of EBITDAre to Cash Flows Provided By Operating Activities (In thousands) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Company's share of Adjusted EBITDAre | $ | 162,512 | $ | 182,738 | $ | 626,239 | $ | 699,718 | |||||||
Interest expense | (56,874 | ) | (53,501 | ) | (220,038 | ) | (218,680 | ) | |||||||
Noncontrolling interests' share of interest expense in other consolidated subsidiaries | 1,837 | 1,902 | 7,749 | 7,062 | |||||||||||
Income taxes | (353 | ) | (3,605 | ) | 909 | (1,313 | ) | ||||||||
Net amortization of deferred financing costs, debt premiums and discounts | 1,712 | 2,049 | 7,163 | 4,953 | |||||||||||
Net amortization of intangible lease assets and liabilities | (390 | ) | (553 | ) | (192 | ) | (1,788 | ) | |||||||
Depreciation and interest expense from unconsolidated affiliates | (17,435 | ) | (15,859 | ) | (67,461 | ) | (63,207 | ) | |||||||
Loss on impairment of unconsolidated affiliates | — | — | (1,022 | ) | — | ||||||||||
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries | 2,177 | 2,186 | 8,601 | 8,977 | |||||||||||
Noncontrolling interests in earnings (losses) of other consolidated subsidiaries | (604 | ) | 124 | (973 | ) | 25,390 | |||||||||
Gain on outparcel sales | (675 | ) | (6,677 | ) | (11,517 | ) | (18,152 | ) | |||||||
Gain on insurance proceeds | (912 | ) | — | (912 | ) | — | |||||||||
Noncontrolling interests' share of loss on extinguishment of debt | — | — | — | 2,975 | |||||||||||
Noncontrolling interests' share of gain on depreciable property | — | — | — | (26,639 | ) | ||||||||||
Equity in earnings of unconsolidated affiliates | (4,808 | ) | (6,535 | ) | (14,677 | ) | (22,939 | ) | |||||||
Distributions of earnings from unconsolidated affiliates | 7,452 | 6,012 | 20,026 | 22,373 | |||||||||||
Share-based compensation expense | 1,076 | 1,223 | 5,386 | 5,792 | |||||||||||
Provision for doubtful accounts | 1,544 | 429 | 4,817 | 3,782 | |||||||||||
Change in deferred tax assets | (199 | ) | 1,615 | (2,905 | ) | 4,526 | |||||||||
Changes in operating assets and liabilities | (726 | ) | (25,751 | ) | 14,161 | (10,083 | ) | ||||||||
Cash flows provided by operating activities | $ | 95,334 | $ | 85,797 | $ | 375,354 | $ | 422,747 |
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% | $ | 119,760 | (1) | $ | 119,760 | $ | — | ||||||
Cary Towne Center | Cary, NC | Jun-18 | 4.00% | 43,716 | (2) | 43,716 | — | |||||||||
The Outlet Shoppes at Laredo | Laredo, TX | May-19 | May-21 | 5.00% | 54,550 | — | 54,550 | |||||||||
Honey Creek Mall | Terre Haute, IN | Jul-19 | 8.00% | 24,027 | 24,027 | — | ||||||||||
Volusia Mall | Daytona Beach, FL | Jul-19 | 8.00% | 41,332 | 41,332 | — | ||||||||||
Greenbrier Mall | Chesapeake, VA | Dec-19 | Dec-20 | 5.41% | 68,101 | 68,101 | — | |||||||||
Hickory Point Mall | Forsyth, IL | Dec-19 | 5.85% | 27,446 | 27,446 | — | ||||||||||
The Outlet Shoppes at Atlanta - Phase II | Woodstock, GA | Dec-19 | 4.85% | 4,575 | — | 4,575 | ||||||||||
The Terrace | Chattanooga, TN | Jun-20 | 7.25% | 12,334 | 12,334 | — | ||||||||||
Burnsville Center | Burnsville, MN | Jul-20 | 6.00% | 67,312 | 67,312 | — | ||||||||||
The Outlet Shoppes of the Bluegrass - Phase II | Simpsonville, KY | Jul-20 | 4.85% | 9,482 | — | 9,482 | ||||||||||
Parkway Place | Huntsville, AL | Jul-20 | 6.50% | 34,486 | 34,486 | — | ||||||||||
Valley View Mall | Roanoke, VA | Jul-20 | 6.50% | 53,372 | 53,372 | — | ||||||||||
Parkdale Mall & Crossing | Beaumont, TX | Mar-21 | 5.85% | 78,544 | 78,544 | — | ||||||||||
EastGate Mall | Cincinnati, OH | Apr-21 | 5.83% | 34,057 | 34,057 | — | ||||||||||
Hamilton Crossing & Expansion | Chattanooga, TN | Apr-21 | 5.99% | 8,821 | 8,821 | — | ||||||||||
Park Plaza | Little Rock, AR | Apr-21 | 5.28% | 81,287 | 81,287 | — | ||||||||||
Fayette Mall | Lexington, KY | May-21 | 5.42% | 152,264 | 152,264 | — | ||||||||||
Alamance Crossing - East | Burlington, NC | Jul-21 | 5.83% | 45,464 | 45,464 | — | ||||||||||
Asheville Mall | Asheville, NC | Sep-21 | 5.80% | 66,038 | 66,038 | — | ||||||||||
Cross Creek Mall | Fayetteville, NC | Jan-22 | 4.54% | 115,513 | 115,513 | — | ||||||||||
Northwoods Mall | North Charleston, SC | Apr-22 | 5.08% | 65,193 | 65,193 | — | ||||||||||
Arbor Place | Atlanta (Douglasville), GA | May-22 | 5.10% | 109,209 | 109,209 | — | ||||||||||
CBL Center | Chattanooga, TN | Jun-22 | 5.00% | 17,780 | 17,780 | — | ||||||||||
Jefferson Mall | Louisville, KY | Jun-22 | 4.75% | 63,379 | 63,379 | — | ||||||||||
Southpark Mall | Colonial Heights, VA | Jun-22 | 4.85% | 59,766 | 59,766 | — | ||||||||||
WestGate Mall | Spartanburg, SC | Jul-22 | 4.99% | 33,910 | 33,910 | — | ||||||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | Nov-23 | 4.90% | 73,233 | 73,233 | — | ||||||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | Dec-24 | 4.05% | 71,739 | 71,739 | — | ||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | Oct-25 | 4.80% | 37,762 | 37,762 | — | ||||||||||
Hamilton Place | Chattanooga, TN | Jun-26 | 4.36% | 102,429 | 102,429 | — | ||||||||||
The Outlet Shoppes at El Paso | El Paso, TX | Oct-28 | 5.10% | 74,823 | 74,823 | — | ||||||||||
Total Loans on Operating Properties | 1,851,704 | 1,783,097 | 68,607 | |||||||||||||
Weighted-average interest rate | 5.32 | % | 5.33 | % | 4.97 | % | ||||||||||
Construction Loan: | ||||||||||||||||
Brookfield Square Anchor Redevelopment | Brookfield, WI | Oct-21 | Oct-22 | 5.25% | 8,172 | — | 8,172 | |||||||||
Property | Location | Non- controlling Interest % | Original Maturity Date | Optional Extended Maturity Date | Interest Rate | Balance | Balance | |||||||||
Fixed | Variable | |||||||||||||||
Operating Partnership Debt: | ||||||||||||||||
Unsecured credit facilities: (3) | ||||||||||||||||
$500,000 capacity | Oct-19 | Oct-20 | 3.90% | — | — | — | ||||||||||
$100,000 capacity | Oct-19 | Oct-20 | 3.90% | 51,896 | — | 51,896 | ||||||||||
$500,000 capacity | Oct-20 | 3.90% | 132,076 | — | 132,076 | |||||||||||
SUBTOTAL | 183,972 | — | 183,972 | |||||||||||||
Unsecured term loans: (3) | ||||||||||||||||
$350,000 term loan | Oct-19 | 4.10% | 350,000 | — | 350,000 | |||||||||||
$300,000 term loan | Jul-20 | Jul-21 | 4.35% | 300,000 | — | 300,000 | ||||||||||
$45,000 term loan | Jun-21 | Jun-22 | 4.17% | 45,000 | — | 45,000 | ||||||||||
SUBTOTAL | 695,000 | — | 695,000 | |||||||||||||
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% | (2,577 | ) | (2,577 | ) | — | |||||||||
Senior unsecured 4.60% notes | Oct-24 | 4.60% | 300,000 | 300,000 | — | |||||||||||
Senior unsecured 4.60% notes (discount) | Oct-24 | 4.60% | (47 | ) | (47 | ) | — | |||||||||
Senior unsecured 5.95% notes | Dec-26 | 5.95% | 625,000 | 625,000 | — | |||||||||||
Senior unsecured 5.95% notes (discount) | Dec-26 | 5.95% | (8,365 | ) | (8,365 | ) | — | |||||||||
SUBTOTAL | 1,364,011 | 1,364,011 | — | |||||||||||||
Total Consolidated Debt | $ | 4,102,859 | (4) | $ | 3,147,108 | $ | 955,751 | |||||||||
Weighted-average interest rate | 5.10 | % | 5.37 | % | 4.21 | % | ||||||||||
Plus CBL's Share Of Unconsolidated Affiliates' Debt: | ||||||||||||||||
Triangle Town Center | Raleigh, NC | Dec-18 | 4.00% | 13,900 | (5) | 13,900 | — | |||||||||
Ambassador Town Center Infrastructure Improvements | Lafayette, LA | Aug-20 | 3.74% | 10,605 | (6) | 10,605 | — | |||||||||
The Shoppes at Eagle Point | Cookeville, TN | Oct-20 | Oct-22 | 5.26% | 33,826 | — | 33,826 | |||||||||
Hammock Landing - Phase I | West Melbourne, FL | Feb-21 | Feb-23 | 4.60% | 20,294 | — | 20,294 | |||||||||
Hammock Landing - Phase II | West Melbourne, FL | Feb-21 | Feb-23 | 4.60% | 8,004 | — | 8,004 | |||||||||
The Pavilion at Port Orange | Port Orange, FL | Feb-21 | Feb-23 | 4.60% | 28,043 | — | 28,043 | |||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 15,886 | 15,886 | — | ||||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 5.10% | 623 | — | 623 | ||||||||||
EastGate Mall - Self-Storage Development | Cincinnati, OH | Dec-22 | 5.10% | 5,222 | — | 5,222 | ||||||||||
West County Center | St. Louis, MO | Dec-22 | 3.40% | 89,390 | 89,390 | — | ||||||||||
Friendly Shopping Center | Greensboro, NC | Apr-23 | 3.48% | 47,356 | 47,356 | — | ||||||||||
The Shops at Friendly Center | Greensboro, NC | Apr-23 | 3.34% | 30,000 | 30,000 | — | ||||||||||
Ambassador Town Center | Lafayette, LA | Jun-23 | 3.22% | 29,161 | (7) | 29,161 | — | |||||||||
Coastal Grand | Myrtle Beach, SC | Aug-24 | 4.09% | 55,258 | 55,258 | — | ||||||||||
Coastal Grand Outparcel | Myrtle Beach, SC | Aug-24 | 4.09% | 2,666 | 2,666 | — | ||||||||||
Oak Park Mall | Overland Park, KS | Oct-25 | 3.97% | 135,141 | 135,141 | — | ||||||||||
Fremaux Town Center - Phase I | Slidell, LA | Jun-26 | 3.70% | 44,490 | 44,490 | — | ||||||||||
CoolSprings Galleria | Nashville, TN | May-28 | 4.84% | 76,820 | 76,820 | — | ||||||||||
SUBTOTAL | 646,685 | (4) | 550,673 | 96,012 | ||||||||||||
Plus CBL's Share Of Unconsolidated Affiliates' Construction Loans: | ||||||||||||||||
Mid Rivers Mall - Self-Storage Development | St. Peters, MO | Apr-23 | 5.10% | 3,892 | — | 3,892 | ||||||||||
CBL's Share Of Unconsolidated Affiliates' Debt: | 650,577 | 550,673 | 99,904 | |||||||||||||
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: | ||||||||||||||||
The Terrace | Chattanooga, TN | 8% | Jun-20 | 7.25% | (987 | ) | (987 | ) | — | |||||||
Hamilton Crossing & Expansion | Chattanooga, TN | 8% | Apr-21 | 5.99% | (706 | ) | (706 | ) | — | |||||||
CBL Center | Chattanooga, TN | 8% | Jun-22 | 5.00% | (1,422 | ) | (1,422 | ) | — | |||||||
The Outlet Shoppes at Atlanta | Woodstock, GA | 25% | Nov-23 | 4.90% | (18,308 | ) | (18,308 | ) | — | |||||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | 35% | Dec-24 | 4.05% | (25,109 | ) | (25,109 | ) | — | |||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | 50% | Oct-25 | 4.80% | (18,881 | ) | (18,881 | ) | — | |||||||
Hamilton Place | Chattanooga, TN | 10% | Jun-26 | 4.36% | (10,243 | ) | (10,243 | ) | — | |||||||
The Outlet Shoppes at El Paso | El Paso, TX | 25% | Oct-28 | 5.10% | (18,705 | ) | (18,705 | ) | — | |||||||
(94,361 | ) | (94,361 | ) | — | ||||||||||||
Company's Share Of Consolidated And Unconsolidated Debt | $ | 4,659,075 | (4) | $ | 3,603,420 | $ | 1,055,655 | |||||||||
Weighted-average interest rate | 4.96 | % | 5.16 | % | 4.28 | % | ||||||||||
Total Debt of Unconsolidated Affiliates: | ||||||||||||||||
Triangle Town Center | Raleigh, NC | Dec-18 | 4.00% | $ | 139,000 | (5) | $ | 139,000 | $ | — | ||||||
Ambassador Town Center Infrastructure Improvements | Lafayette, LA | Aug-20 | 3.74% | 10,605 | (6) | 10,605 | — | |||||||||
The Shoppes at Eagle Point | Cookeville, TN | Oct-20 | Oct-22 | 5.26% | 33,826 | — | 33,826 | |||||||||
Hammock Landing - Phase I | West Melbourne, FL | Feb-21 | Feb-23 | 4.60% | 40,587 | — | 40,587 | |||||||||
Hammock Landing - Phase II | West Melbourne, FL | Feb-21 | Feb-23 | 4.60% | 16,007 | — | 16,007 | |||||||||
The Pavilion at Port Orange | Port Orange, FL | Feb-21 | Feb-23 | 4.60% | 56,087 | — | 56,087 | |||||||||
York Town Center | York, PA | Feb-22 | 4.90% | 31,772 | 31,772 | — | ||||||||||
York Town Center - Pier 1 | York, PA | Feb-22 | 5.10% | 1,247 | — | 1,247 | ||||||||||
Eastgate Mall - Self-Storage Development | Cincinnati, OH | Dec-22 | 5.10% | 5,222 | — | 5,222 | ||||||||||
West County Center | St. Louis, MO | Dec-22 | 3.40% | 178,779 | 178,779 | — | ||||||||||
Friendly Shopping Center | Greensboro, NC | Apr-23 | 3.48% | 94,712 | 94,712 | — | ||||||||||
The Shops at Friendly Center | Greensboro, NC | Apr-23 | 3.34% | 60,000 | 60,000 | — | ||||||||||
Ambassador Town Center | Lafayette, LA | Jun-23 | 3.22% | 44,863 | (7) | 44,863 | — | |||||||||
Coastal Grand | Myrtle Beach, SC | Aug-24 | 4.09% | 110,516 | 110,516 | — | ||||||||||
Coastal Grand Outparcel | Myrtle Beach, SC | Aug-24 | 4.09% | 5,333 | 5,333 | — | ||||||||||
Oak Park Mall | Overland Park, KS | Oct-25 | 3.97% | 270,281 | 270,281 | — | ||||||||||
Fremaux Town Center - Phase I | Slidell, LA | Jun-26 | 3.70% | 68,446 | 68,446 | — | ||||||||||
CoolSprings Galleria | Nashville, TN | May-28 | 4.84% | 153,641 | 153,641 | — | ||||||||||
SUBTOTAL | 1,320,924 | 1,167,948 | 152,976 | |||||||||||||
Total Construction Loans of Unconsolidated Affiliates: | ||||||||||||||||
Mid Rivers Mall - Self-Storage Development | St. Peters, MO | Apr-23 | 5.10% | 3,892 | — | 3,892 | ||||||||||
$ | 1,324,816 | $ | 1,167,948 | $ | 156,868 | |||||||||||
Weighted-average interest rate | 4.02 | % | 3.92 | % | 4.77 | % |
(1) | The non-recourse loan matured in 2017 and was in default and receivership. The lender received title to the mall in January 2019. |
(2) | The non-recourse loan was in default as the maturity date was accelerated due to a change in redevelopment plans. The Company and the lender executed a forbearance agreement in August 2018. The mall securing the loan was classified as held for sale as of December 31, 2018. The mall was sold in January 2019 and the lender received the sale proceeds in satisfaction of the loan. |
(3) | Subsequent to December 31, 2018, our unsecured credit facilities and term loans were replaced with a new secured credit facility. |
(4) | See page 15 for unamortized deferred financing costs. |
(5) | The non-recourse loan matured in the fourth quarter of 2018 and is in default. |
(6) | 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. |
(7) | The joint venture has an interest rate swap on a notional amount of $44,863, 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 | $ | 119,760 | (1) | $ | — | $ | — | $ | 119,760 | 2.57 | % | 5.67 | % | |||||||||
2018 | 43,716 | (1) | 13,900 | (1) | — | 57,616 | 1.24 | % | 4.00 | % | ||||||||||||
2019 | 447,380 | — | — | 447,380 | 9.60 | % | 4.78 | % | ||||||||||||||
2020 | 429,059 | 10,605 | (987 | ) | 438,677 | 9.42 | % | 5.08 | % | |||||||||||||
2021 | 821,025 | — | (706 | ) | 820,319 | 17.60 | % | 5.10 | % | |||||||||||||
2022 | 517,922 | 144,947 | (1,422 | ) | 661,447 | 14.20 | % | 4.65 | % | |||||||||||||
2023 | 523,233 | 166,750 | (18,308 | ) | 671,675 | 14.42 | % | 4.87 | % | |||||||||||||
2024 | 371,739 | 57,924 | (25,109 | ) | 404,554 | 8.68 | % | 4.46 | % | |||||||||||||
2025 | 37,762 | 135,141 | (18,881 | ) | 154,022 | 3.31 | % | 4.07 | % | |||||||||||||
2026 | 727,429 | 44,490 | (10,243 | ) | 761,676 | 16.35 | % | 5.62 | % | |||||||||||||
2028 | 74,823 | 76,820 | (18,705 | ) | 132,938 | 2.85 | % | 4.95 | % | |||||||||||||
Face Amount of Debt | 4,113,848 | 650,577 | (94,361 | ) | 4,670,064 | 100.24 | % | 4.96 | % | |||||||||||||
Discounts | (10,989 | ) | — | — | (10,989 | ) | (0.24 | )% | ||||||||||||||
Total | $ | 4,102,859 | $ | 650,577 | $ | (94,361 | ) | $ | 4,659,075 | 100.00 | % | 4.96 | % |
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 | $ | 119,760 | (1) | $ | — | $ | — | $ | 119,760 | 2.57 | % | 5.67 | % | |||||||||
2018 | 43,716 | (1) | 13,900 | (1) | — | 57,616 | 1.24 | % | 4.00 | % | ||||||||||||
2019 | 621,927 | — | — | 621,927 | 13.35 | % | 4.80 | % | ||||||||||||||
2020 | 609,062 | 44,431 | (987 | ) | 652,506 | 14.01 | % | 4.81 | % | |||||||||||||
2021 | 519,647 | 56,341 | (706 | ) | 575,282 | 12.34 | % | 5.39 | % | |||||||||||||
2022 | 464,750 | 111,121 | (1,422 | ) | 574,449 | 12.33 | % | 4.64 | % | |||||||||||||
2023 | 523,233 | 110,409 | (18,308 | ) | 615,334 | 13.21 | % | 4.89 | % | |||||||||||||
2024 | 371,739 | 57,924 | (25,109 | ) | 404,554 | 8.68 | % | 4.46 | % | |||||||||||||
2025 | 37,762 | 135,141 | (18,881 | ) | 154,022 | 3.31 | % | 4.07 | % | |||||||||||||
2026 | 727,429 | 44,490 | (10,243 | ) | 761,676 | 16.35 | % | 5.62 | % | |||||||||||||
2028 | 74,823 | 76,820 | (18,705 | ) | 132,938 | 2.85 | % | 4.95 | % | |||||||||||||
Face Amount of Debt | 4,113,848 | 650,577 | (94,361 | ) | 4,670,064 | 100.24 | % | 4.96 | % | |||||||||||||
Discounts | (10,989 | ) | — | — | (10,989 | ) | (0.24 | )% | ||||||||||||||
Total | $ | 4,102,859 | $ | 650,577 | $ | (94,361 | ) | $ | 4,659,075 | 100.00 | % | 4.96 | % |
(1) | Represents a non-recourse loan that is in default. Both consolidated loans were extinguished in January 2019. |
Senior Unsecured Notes Compliance Ratios | Required | Actual | |||
Total debt to total assets | <60% | 53% | |||
Secured debt to total assets | <40% | (1) | 24% | ||
Total unencumbered assets to unsecured debt | >150% | 212% | |||
Consolidated income available for debt service to annual debt service charge | >1.5x | 2.5x |
Pro Forma - Senior Unsecured Notes Compliance Ratios (2) | Required | Actual | |||
Total debt to total assets | < 60% | 53% | |||
Secured debt to total assets | <40% | (1) | 35% | ||
Total unencumbered assets to unsecured debt | >150% | 198% | |||
Consolidated income available for debt service to annual debt service charge | > 1.5x | 2.5x |
(1) | Secured debt to total assets must be less than 45% for the 2023 Notes and the 2024 Notes until January 1, 2020. |
(2) | Represents covenants as of December 31, 2018 after giving effect to the $1.185 billion secured credit facility that closed in January 2019, the transfer of Acadiana Mall in January 2019, the sale of Cary Towne Center in January 2019 and the extinguishment of the debt that was secured by these two properties. |
Sales Per Square Foot for the Year Ended (1) (2) | Occupancy (2) | % of Consolidated Unencumbered NOI for the Year Ended 12/31/18 (3) | ||||||||||||||||
12/31/18 | 12/31/17 | 12/31/18 | 12/31/17 | |||||||||||||||
Unencumbered consolidated properties: | ||||||||||||||||||
Tier 1 Malls | $ | 407 | $ | 394 | 96.5 | % | 95.1 | % | 21.1 | % | ||||||||
Tier 2 Malls | 339 | 347 | 90.4 | % | 91.2 | % | 49.8 | % | ||||||||||
Tier 3 Malls | 281 | 293 | 92.6 | % | 91.5 | % | 17.8 | % | ||||||||||
Total Malls | 337 | 342 | 91.9 | % | 91.9 | % | 88.7 | % | ||||||||||
Total Associated Centers | N/A | N/A | 97.1 | % | 97.3 | % | 7.4 | % | ||||||||||
Total Community Centers | N/A | N/A | 98.1 | % | 98.3 | % | 2.8 | % | ||||||||||
Total Office Buildings & Other | N/A | N/A | 98.3 | % | 94.2 | % | 1.1 | % | ||||||||||
Total Unencumbered Consolidated Portfolio | $ | 337 | $ | 342 | 93.5 | % | 93.4 | % | 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 58.2% of total consolidated NOI of $565,516,906 (which excludes NOI related to dispositions) for the year ended December 31, 2018. |
Sales Per Square Foot for the Year Ended (1) (2) | Occupancy (2) | % of Consolidated Unencumbered NOI for the Year Ended 12/31/18 (3) | |||||||||||||||||
12/31/18 | 12/31/17 | 12/31/18 | 12/31/17 | ||||||||||||||||
Unencumbered consolidated properties: | |||||||||||||||||||
Tier 1 Malls | N/A | N/A | N/A | N/A | 6.6 | % | (4) | ||||||||||||
Tier 2 Malls | $ | 336 | $ | 341 | 88.4 | % | 89.0 | % | 43.6 | % | |||||||||
Tier 3 Malls | 276 | 286 | 91.8 | % | 90.4 | % | 29.2 | % | |||||||||||
Total Malls | 311 | 318 | 90.0 | % | 89.6 | % | 79.4 | % | |||||||||||
Total Associated Centers | N/A | N/A | 97.4 | % | 97.0 | % | 13.3 | % | |||||||||||
Total Community Centers | N/A | N/A | 98.1 | % | 98.3 | % | 5.8 | % | |||||||||||
Total Office Buildings & Other | N/A | N/A | 97.5 | % | 93.1 | % | 1.5 | % | |||||||||||
Total Unencumbered Consolidated Portfolio | $ | 311 | $ | 318 | 93.3 | % | 92.9 | % | 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 28.4% of total consolidated NOI of $565,516,906 (which excludes NOI related to dispositions) for the year ended December 31, 2018. |
(4) | NOI is derived from unencumbered portions of Tier One properties, including outparcels and anchors, that are otherwise secured by a loan. |
TIER 1 Sales > $375 per square foot | ||||||||||||||||||||||
Property | Location | Total Center SF (1) | Sales Per Square Foot for the Year Ended (2) | Mall Occupancy | % of Total Mall NOI for the Year Ended 12/31/18 (3) | |||||||||||||||||
12/31/18 | 12/31/17 | 12/31/18 | 12/31/17 | |||||||||||||||||||
Coastal Grand | Myrtle Beach, SC | 1,036,848 | ||||||||||||||||||||
CoolSprings Galleria | Nashville, TN | 1,165,821 | ||||||||||||||||||||
Cross Creek Mall | Fayetteville, NC | 983,695 | ||||||||||||||||||||
Fayette Mall | Lexington, KY | 1,158,185 | ||||||||||||||||||||
Friendly Center and The Shops at Friendly | Greensboro, NC | 1,367,451 | ||||||||||||||||||||
Hamilton Place | Chattanooga, TN | 1,160,815 | ||||||||||||||||||||
Hanes Mall | Winston-Salem, NC | 1,435,259 | ||||||||||||||||||||
Jefferson Mall | Louisville, KY | 783,639 | ||||||||||||||||||||
Mall del Norte | Laredo, TX | 1,199,361 | ||||||||||||||||||||
Northwoods Mall | North Charleston, SC | 748,159 | ||||||||||||||||||||
Oak Park Mall | Overland Park, KS | 1,518,197 | ||||||||||||||||||||
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 | 428,072 | ||||||||||||||||||||
Richland Mall | Waco, TX | 693,450 | ||||||||||||||||||||
Southpark Mall | Colonial Heights, VA | 672,941 | ||||||||||||||||||||
Sunrise Mall | Brownsville, TX | 802,906 | ||||||||||||||||||||
West County Center | Des Peres, MO | 1,196,796 | ||||||||||||||||||||
Total Tier 1 Malls | 17,189,547 | $ | 458 | $ | 439 | 95.5 | % | 95.4 | % | 37.7 | % |
TIER 2 Sales of $300 to $375 per square foot | |||||||||||||||
Property | Location | Total Center SF (1) | Sales Per Square Foot for the Year Ended (2) | Mall Occupancy | % of Total Mall NOI for the Year Ended 12/31/18 (3) | ||||||||||
12/31/18 | 12/31/17 | 12/31/18 | 12/31/17 | ||||||||||||
Arbor Place | Atlanta (Douglasville), GA | 1,161,932 | |||||||||||||
Asheville Mall | Asheville, NC | 973,344 | |||||||||||||
Dakota Square Mall | Minot, ND | 764,671 | |||||||||||||
East Towne Mall | Madison, WI | 801,248 | |||||||||||||
EastGate Mall | Cincinnati, OH | 837,550 | |||||||||||||
Frontier Mall | Cheyenne, WY | 519,271 | |||||||||||||
Governor's Square | Clarksville, TN | 689,563 | |||||||||||||
Greenbrier Mall | Chesapeake, VA | 897,037 | |||||||||||||
Harford Mall | Bel Air, MD | 505,559 | |||||||||||||
Imperial Valley Mall | El Centro, CA | 761,958 | |||||||||||||
Kirkwood Mall | Bismarck, ND | 815,442 | |||||||||||||
Laurel Park Place | Livonia, MI | 496,877 | |||||||||||||
Layton Hills Mall | Layton, UT | 482,156 | |||||||||||||
Mayfaire Town Center | Wilmington, NC | 657,339 | |||||||||||||
Northgate Mall | Chattanooga, TN | 666,783 | |||||||||||||
Northpark Mall | Joplin, MO | 892,426 |
TIER 2 Sales of $300 to $375 per square foot | ||||||||||||||||||||||
Property | Location | Total Center SF (1) | Sales Per Square Foot for the Year Ended (2) | Mall Occupancy | % of Total Mall NOI for the Year Ended 12/31/18 (3) | |||||||||||||||||
12/31/18 | 12/31/17 | 12/31/18 | 12/31/17 | |||||||||||||||||||
Old Hickory Mall | Jackson, TN | 538,934 | ||||||||||||||||||||
The Outlet Shoppes at Laredo (4) | Laredo, TX | 358,122 | ||||||||||||||||||||
Park Plaza | Little Rock, AR | 539,936 | ||||||||||||||||||||
Parkdale Mall | Beaumont, TX | 1,087,380 | ||||||||||||||||||||
Parkway Place | Huntsville, AL | 647,802 | ||||||||||||||||||||
Pearland Town Center | Pearland, TX | 663,773 | ||||||||||||||||||||
Post Oak Mall | College Station, TX | 788,105 | ||||||||||||||||||||
South County Center | St. Louis, MO | 1,028,473 | ||||||||||||||||||||
Southaven Towne Center | Southaven, MS | 607,550 | ||||||||||||||||||||
St. Clair Square | Fairview Heights, IL | 1,068,998 | ||||||||||||||||||||
Turtle Creek Mall | Hattiesburg, MS | 845,571 | ||||||||||||||||||||
Valley View Mall | Roanoke, VA | 863,443 | ||||||||||||||||||||
Volusia Mall | Daytona Beach, FL | 1,045,835 | ||||||||||||||||||||
West Towne Mall | Madison, WI | 829,635 | ||||||||||||||||||||
WestGate Mall | Spartanburg, SC | 950,777 | ||||||||||||||||||||
Westmoreland Mall | Greensburg, PA | 973,421 | ||||||||||||||||||||
York Galleria | York, PA | 748,868 | ||||||||||||||||||||
Total Tier 2 Malls | 25,509,779 | $ | 344 | $ | 349 | 90.3 | % | 91.1 | % | 44.7 | % |
TIER 3 Sales < $300 per square foot | ||||||||||||||||||||||
Property | Location | Total Center SF (1) | Sales Per Square Foot for the Year Ended (2) | Mall Occupancy | % of Total Mall NOI for the Year Ended 12/31/18 (3) | |||||||||||||||||
12/31/18 | 12/31/17 | 12/31/18 | 12/31/17 | |||||||||||||||||||
Alamance Crossing | Burlington, NC | 904,704 | ||||||||||||||||||||
Brookfield Square | Brookfield, WI | 860,192 | ||||||||||||||||||||
Burnsville Center | Burnsville, MN | 1,045,836 | ||||||||||||||||||||
CherryVale Mall | Rockford, IL | 844,383 | ||||||||||||||||||||
Eastland Mall | Bloomington, IL | 732,647 | ||||||||||||||||||||
Honey Creek Mall | Terre Haute, IN | 679,578 | ||||||||||||||||||||
Kentucky Oaks Mall | Paducah, KY | 719,419 | ||||||||||||||||||||
Meridian Mall | Lansing, MI | 943,762 | ||||||||||||||||||||
Mid Rivers Mall | St. Peters, MO | 1,034,302 | ||||||||||||||||||||
Monroeville Mall | Pittsburgh, PA | 983,997 | ||||||||||||||||||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | 249,937 | ||||||||||||||||||||
Stroud Mall | Stroudsburg, PA | 414,565 | ||||||||||||||||||||
Total Tier 3 Malls | 9,413,322 | $ | 276 | $ | 290 | 88.3 | % | 87.7 | % | 14.3 | % | |||||||||||
Total Mall Portfolio | 52,112,648 | $ | 377 | $ | 375 | 91.8 | % | 92.0 | % | 96.7 | % |
Excluded Malls (5) | |||||||||||||||||
Property | Category | Location | Total Center SF (1) | Sales Per Square Foot for the Year Ended (2) | Mall Occupancy | % of Total Mall NOI for the Year Ended 12/31/18 (3) | |||||||||||
12/31/18 | 12/31/17 | 12/31/18 | 12/31/17 | ||||||||||||||
Lender Malls: | |||||||||||||||||
Acadiana Mall | Lender | Lafayette, LA | 991,339 | ||||||||||||||
Cary Towne Center | Lender | Cary, NC | 897,448 | ||||||||||||||
Triangle Town Center | Lender | Raleigh, NC | 1,255,263 | ||||||||||||||
3,144,050 | |||||||||||||||||
Other Excluded Mall: | |||||||||||||||||
Hickory Point Mall | Repositioning | Forsyth, IL | 735,848 | ||||||||||||||
Total Excluded Malls | 3,879,898 | N/A | N/A | N/A | N/A | 3.3 | % |
(1) | Total Center Square Footage includes square footage of attached shops, immediately adjacent junior anchors and anchor locations and leased immediately adjacent 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 $587,257,857 for the year ended December 31, 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. |
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) | 621,086 | $ | 35.53 | $ | 31.87 | (10.3 | )% | $ | 32.47 | (8.6 | )% | ||||||||||
Stabilized malls | 603,806 | 35.77 | 31.93 | (10.7 | )% | 32.52 | (9.1 | )% | |||||||||||||
New leases | 73,840 | 46.38 | 44.33 | (4.4 | )% | 47.60 | 2.6 | % | |||||||||||||
Renewal leases | 529,966 | 34.29 | 30.20 | (11.9 | )% | 30.42 | (11.3 | )% | |||||||||||||
Year-to-Date: | |||||||||||||||||||||
All Property Types (1) | 2,269,270 | $ | 39.87 | $ | 35.19 | (11.7 | )% | $ | 35.72 | (10.4 | )% | ||||||||||
Stabilized malls | 2,174,298 | 40.46 | 35.57 | (12.1 | )% | 36.10 | (10.8 | )% | |||||||||||||
New leases | 310,858 | 45.28 | 42.14 | (6.9 | )% | 44.52 | (1.7 | )% | |||||||||||||
Renewal leases | 1,863,440 | 39.65 | 34.48 | (13.0 | )% | 34.70 | (12.5 | )% |
Average Annual Base Rents Per Square Foot (3) By Property Type For Small Shop Space Less Than 10,000 Square Feet: | |||||||||||||
Total Leasing Activity: | |||||||||||||
Square Feet | As of December 31, | ||||||||||||
Quarter: | 2018 | 2017 | |||||||||||
Operating portfolio: | Same-center malls | $ | 32.59 | $ | 32.52 | ||||||||
New leases | 367,953 | Stabilized malls | 32.59 | 32.56 | |||||||||
Renewal leases | 719,686 | Non-stabilized malls (4) | 25.02 | 26.22 | |||||||||
Development portfolio: | Associated centers | 13.82 | 13.85 | ||||||||||
New leases | 250,643 | Community centers | 16.72 | 15.79 | |||||||||
Total leased | 1,338,282 | Other | 17.22 | 19.11 | |||||||||
Year-to-Date: | |||||||||||||
Operating portfolio: | |||||||||||||
New leases | 1,131,057 | ||||||||||||
Renewal leases | 2,627,560 | ||||||||||||
Development portfolio: | |||||||||||||
New leases | 441,594 | ||||||||||||
Total leased | 4,200,211 | ||||||||||||
(1) | Includes stabilized malls, associated centers, community centers and other. |
(2) | Average gross rent does not incorporate allowable future increases for recoverable common area expenses. |
(3) | Average annual base rents per square foot are based on contractual rents in effect as of December 31, 2018, including the impact of any rent concessions. Average base rents for associated centers and community centers include all leased space, regardless of size. |
(4) | Includes The Outlet Shoppes of Laredo as of December 31, 2018 and The Outlet Shoppes of the Bluegrass and The Outlet Shoppes of Laredo as of December 31, 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 | 134 | 331,512 | 7.11 | $ | 40.29 | $ | 42.38 | $ | 41.70 | $ | (1.41 | ) | (3.4)% | $ | 0.68 | 1.6% | |||||||||||||||
Renewal | 524 | 1,579,158 | 2.84 | 34.21 | 34.63 | 40.45 | (6.24 | ) | (15.4)% | (5.82 | ) | (14.4)% | |||||||||||||||||||
Commencement 2018 Total | 658 | 1,910,670 | 3.71 | 35.27 | 35.97 | 40.67 | (5.40 | ) | (13.3)% | (4.70 | ) | (11.6)% | |||||||||||||||||||
Commencement 2019: | |||||||||||||||||||||||||||||||
New | 28 | 73,396 | 7.88 | 39.74 | 42.03 | 42.03 | (2.29 | ) | (5.4)% | — | —% | ||||||||||||||||||||
Renewal | 210 | 772,318 | 2.84 | 28.48 | 28.68 | 32.49 | (4.01 | ) | (12.3)% | (3.81 | ) | (11.7)% | |||||||||||||||||||
Commencement 2019 Total | 238 | 845,714 | 3.43 | 29.45 | 29.83 | 33.32 | (3.87 | ) | (11.6)% | (3.49 | ) | (10.5)% | |||||||||||||||||||
Total 2018/2019 | 896 | 2,756,384 | 3.63 | $ | 33.48 | $ | 34.09 | $ | 38.41 | $ | (4.93 | ) | (12.8)% | $ | (4.32 | ) | (11.2)% | ||||||||||||||
Tenant | Number of Stores | Square Feet | Percentage of Total Revenues (1) | ||||||||||
1 | L Brands, Inc. (2) | 137 | 812,407 | 4.20 | % | ||||||||
2 | Signet Jewelers Limited (3) | 172 | 254,859 | 2.85 | % | ||||||||
3 | Foot Locker, Inc. | 114 | 530,463 | 2.65 | % | ||||||||
4 | Ascena Retail Group, Inc. (4) | 164 | 840,079 | 2.09 | % | ||||||||
5 | AE Outfitters Retail Company | 64 | 402,917 | 1.98 | % | ||||||||
6 | Genesco Inc. (5) | 165 | 271,118 | 1.82 | % | ||||||||
7 | Dick's Sporting Goods, Inc. | 26 | 1,467,844 | 1.74 | % | ||||||||
8 | The Gap, Inc. | 55 | 655,708 | 1.42 | % | ||||||||
9 | H&M | 43 | 916,688 | 1.36 | % | ||||||||
10 | Luxottica Group, S.P.A. (6) | 110 | 245,338 | 1.33 | % | ||||||||
11 | Express Fashions | 40 | 331,347 | 1.23 | % | ||||||||
12 | Finish Line, Inc. | 47 | 245,046 | 1.17 | % | ||||||||
13 | Forever 21 Retail, Inc. | 20 | 410,070 | 1.16 | % | ||||||||
14 | The Buckle, Inc. | 45 | 233,639 | 1.11 | % | ||||||||
15 | JC Penney Company, Inc. (7) | 49 | 5,881,853 | 1.02 | % | ||||||||
16 | Charlotte Russe Holding, Inc. | 44 | 280,834 | 0.97 | % | ||||||||
17 | Abercrombie & Fitch, Co. | 45 | 299,937 | 0.93 | % | ||||||||
18 | Shoe Show, Inc. | 42 | 532,919 | 0.92 | % | ||||||||
19 | Cinemark | 9 | 467,190 | 0.84 | % | ||||||||
20 | Barnes & Noble Inc. | 19 | 579,660 | 0.84 | % | ||||||||
21 | Hot Topic, Inc. | 97 | 222,301 | 0.80 | % | ||||||||
22 | The Children's Place Retail Stores, Inc. | 47 | 205,959 | 0.77 | % | ||||||||
23 | Claire's Stores, Inc. | 84 | 106,510 | 0.72 | % | ||||||||
24 | Ulta | 28 | 288,394 | 0.67 | % | ||||||||
25 | GNC Holdings, Inc. | 65 | 91,519 | 0.62 | % | ||||||||
1,731 | 16,574,599 | 35.21 | % | ||||||||||
(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) | 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. | ||||||||||||
(6) | Luxottica Group, S.P.A. operates Lenscrafters, Pearle Vision and Sunglass Hut. | ||||||||||||
(7) | JC Penney Co., Inc. owns 29 of these stores. |
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Tenant allowances (1) | $ | 5,163 | $ | 5,899 | $ | 40,362 | $ | 35,673 | |||||||
Renovations (2) | 400 | 3,825 | 963 | 13,080 | |||||||||||
Deferred maintenance: (3) | |||||||||||||||
Parking lot and parking lot lighting | 609 | 4,736 | 1,480 | 13,057 | |||||||||||
Roof repairs and replacements | 647 | 4,229 | 4,341 | 8,836 | |||||||||||
Other capital expenditures | 7,722 | 6,764 | 22,757 | 22,597 | |||||||||||
Total deferred maintenance expenditures | 8,978 | 15,729 | 28,578 | 44,490 | |||||||||||
Total capital expenditures | $ | 14,541 | $ | 25,453 | $ | 69,903 | $ | 93,243 |
(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, | 689 | 544 | |||||
December 31, | 983 | 565 | |||||
$ | 4,118 | $ | 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 | $ | 282 | Feb-18/Mar-18 | 10.4% | ||||||||||||
Other - Outparcel Development: | |||||||||||||||||||||||
EastGate Mall - CubeSmart Self-storage (3) (4) | Cincinnati, OH | 50% | 93,501 | 4,514 | 3,747 | 2,893 | Sep-18 | 9.9% | |||||||||||||||
Laurel Park Place - Panera Bread (3) | Livonia, MI | 100% | 4,500 | 1,772 | 1,592 | 351 | May-18 | 9.7% | |||||||||||||||
98,001 | 6,286 | 5,339 | 3,244 | ||||||||||||||||||||
Other Development: | |||||||||||||||||||||||
The Shoppes at Eagle Point (5) | Cookeville, TN | 50% | 235,820 | 47,721 | 46,971 | 26,637 | Nov-18 | 8.1% | |||||||||||||||
Total Properties Opened | 338,521 | $ | 55,322 | $ | 53,719 | $ | 30,163 |
(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. |
(4) | Yield is based on the expected yield of the stabilized project. |
(5) | The Company funded 100% of the required equity contribution. The remainder of the project was funded through a construction loan with a total borrowing capacity of $36,400. |
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: | |||||||||||||||||||||||
Eastland Mall - JCP Redevelopment (H&M/Outback/Planet Fitness) | Bloomington, IL | 100% | 52,827 | $ | 10,999 | $ | 8,478 | $ | 7,986 | Dec-18 | 6.3% | ||||||||||||
East Towne Mall - Flix Brewhouse | Madison, WI | 100% | 40,795 | 9,966 | 9,818 | 3,945 | Jul-18 | 8.4% | |||||||||||||||
Frontier Mall - Sports Authority Redevelopment (Planet Fitness) | Cheyenne, WY | 100% | 24,750 | 1,385 | 901 | 679 | Feb-18 | 29.8% | |||||||||||||||
Jefferson Mall - Macy's Redevelopment (Round1) | Louisville, KY | 100% | 50,070 | 9,392 | 5,475 | 4,397 | Nov-18 | 6.9% | |||||||||||||||
York Galleria - Partial JC Penney Redevelopment (Marshalls) | York, PA | 100% | 21,026 | 2,870 | 2,409 | 1,932 | Apr-18 | 11.0% | |||||||||||||||
Total Redevelopment Completed | 189,468 | $ | 34,612 | $ | 27,081 | $ | 18,939 |
(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 Development: | |||||||||||||||||||||||
Mid Rivers Mall - CubeSmart Self-storage (3) (4) | St. Peters, MO | 50% | 93,540 | $ | 4,122 | $ | 2,673 | $ | 2,673 | Winter-19 | 9.0% | ||||||||||||
Mall Redevelopments: | |||||||||||||||||||||||
Brookfield Square - Sears Redevelopment (Whirlyball/Marcus Theaters) (5) | Brookfield, WI | 100% | 126,710 | 26,627 | 11,566 | 10,980 | Fall-19 | 10.7% | |||||||||||||||
East Towne Mall - Portillo's | Madison, WI | 100% | 9,000 | 2,956 | 2,416 | 1,894 | Spring-19 | 8.0% | |||||||||||||||
Friendly Center - O2 Fitness | Greensboro, NC | 50% | 27,048 | 2,285 | 1,405 | 1,290 | Spring-19 | 10.3% | |||||||||||||||
Hanes Mall - Dave & Buster's | Winston-Salem, NC | 100% | 44,922 | 5,932 | 2,127 | 1,930 | Spring-19 | 11.0% | |||||||||||||||
Northgate Mall - Sears Auto Center Redevelopment (Aubrey's/Panda Express) | Chattanooga, TN | 100% | 10,000 | 1,797 | 513 | 332 | Winter-19 | 7.6% | |||||||||||||||
Parkdale Mall - Macy's Redevelopment (Dick's Sporting Goods/Five Below/HomeGoods) (5) | Beaumont, TX | 100% | 86,136 | 20,899 | 6,479 | 5,958 | Summer-19 | 6.4% | |||||||||||||||
Volusia Mall - Sears Auto Center Redevelopment (Bonefish Grill/Metro Diner) | Daytona Beach, FL | 100% | 23,341 | 9,635 | 5,414 | 4,287 | Spring-19 | 8.0% | |||||||||||||||
327,157 | 70,131 | 29,920 | 26,671 | ||||||||||||||||||||
Total Properties Under Development | 420,697 | $ | 74,253 | $ | 32,593 | $ | 29,344 |
(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 return reflected represents a pro forma incremental return as Total Cost excludes the cost related to the acquisition of the Sears (Brookfield) and Macy's (Parkdale) buildings in 2017. |
Shadow Pipeline of Properties Under Development at December 31, 2018 | ||||||||||||
(Dollars in thousands) | ||||||||||||
Property | Location | CBL Ownership Interest | Total Project Square Feet | CBL's Share of Estimated Total Cost (1) | Expected Opening Date | Initial Unleveraged Yield | ||||||
Other - Outparcel Development: | ||||||||||||
Parkdale Mall - Self-storage (2) | Beaumont, TX | 50% | 68,000 - 70,000 | $4,000 - $5,000 | Winter-19 | 10% - 11% |
(1) | Total Cost is presented net of reimbursements to be received. |
(2) | Yield is based on expected yield once project stabilizes. |
TIER 1 Sales ≥ $375 per square foot | |||||
Property | Location | Sears Status as of December 31, 2018 (1) | Sears Redevelopment Plans | Bon-Ton Redevelopment Plans | |
Coastal Grand | Myrtle Beach, SC | Open (O) | Owned by Sears | ||
CoolSprings Galleria | Nashville, TN | Redeveloped in 2015 | |||
Cross Creek Mall | Fayetteville, NC | Expected to Close | Executed leases for new Entertainment/Restaurants. Construction expected to start in 2019. | ||
Fayette Mall | Lexington, KY | Redeveloped in 2016 | |||
Friendly Center and The Shops at Friendly | Greensboro, NC | Open (O) | Owned by Sears. Whole Foods sub-leases 1/3 of the box. | ||
Hamilton Place | Chattanooga, TN | Closed 1/19 - CBL Terminated Lease to start redevelopment | Cheesecake Factory Open. Executed leases for restaurant, hotel, Dick's Sporting Goods and Dave & Busters. Construction expected to start in 2019. | ||
Hanes Mall | Winston-Salem, NC | Closed 1/19 | Owned by Third Party. Novant Health, Inc. purchased Sears and Sears TBA for future medical office. | ||
Jefferson Mall | Louisville, KY | Closed 1/19 | Purchased in Jan 2017 sale-leaseback for future redevelopment. Under negotiation/LOIs with tenants. | ||
Mall del Norte | Laredo, TX | Open (O) | Owned by Sears | ||
Northwoods Mall | North Charleston, SC | Redeveloped (O) | Owned by Seritage. Redeveloped with Burlington. | ||
Oak Park Mall | Overland Park, KS | ||||
The Outlet Shoppes at Atlanta | Woodstock, GA | ||||
The Outlet Shoppes at El Paso | El Paso, TX | ||||
The Outlet Shoppes of the Bluegrass | Simpsonville, KY | ||||
Richland Mall | Waco, TX | Expected to Close (O) | Location sold in 2018 to third party user. | ||
Southpark Mall | Colonial Heights, VA | Closed | Under negotiation/LOIs with tenants. | ||
Sunrise Mall | Brownsville, TX | Open (O) | Owned by Sears | ||
West County Center | Des Peres, MO |
TIER 2 Sales ≥ $300 to < $375 per square foot | |||||
Property | Location | Sears Status as of December 31, 2018 (1) | Sears Redevelopment Plans | Bon-Ton Redevelopment Plans | |
Arbor Place | Atlanta (Douglasville), GA | Open (O) | Owned by Sears. | ||
Asheville Mall | Asheville, NC | Closed (O) | Owned by Seritage. Under negotiation/LOI with non-retail users. | ||
Dakota Square Mall | Minot, ND | Closed | Under negotiation/LOIs with tenants. | Lease executed with value retailer. | |
East Towne Mall | Madison, WI | Open (O) | Owned by Sears. Under negotiation/LOI with non-retail/entertainment uses. | Owned by Third Party | |
EastGate Mall | Cincinnati, OH | Open | Purchased in January 2017 sale-leaseback for future redevelopment. Under negotiation/LOIs with tenants. | ||
Frontier Mall | Cheyenne, WY | Closed (O) | Owned by 3rd Party. |
TIER 2 Sales ≥ $300 to < $375 per square foot | |||||
Property | Location | Sears Status as of December 31, 2018 (1) | Sears Redevelopment Plans | Bon-Ton Redevelopment Plans | |
Governor's Square | Clarksville, TN | Expected to Close | 50/50 Joint Venture Property. Under negotiation/LOIs with tenants. | ||
Greenbrier Mall | Chesapeake, VA | Closed (O) | Owned by Seritage | ||
Harford Mall | Bel Air, MD | Open | Potential sporting goods/ entertainment/restaurants | ||
Imperial Valley Mall | El Centro, CA | Expected to Close (O) | Owned by Seritage. Lease executed with box user. | ||
Kirkwood Mall | Bismarck, ND | Under negotiation/LOIs with tenants. | |||
Laurel Park Place | Livonia, MI | Under negotiation/LOIs with tenants. | |||
Layton Hills Mall | Layton, UT | ||||
Mayfaire Town Center | Wilmington, NC | ||||
Northgate Mall | Chattanooga, TN | Expected to Close (O) | Owned by Sears | ||
Northpark Mall | Joplin, MO | Open (O) | Building owned by Sears | ||
Old Hickory Mall | Jackson, TN | Expected to Close | Potential box user | ||
The Outlet Shoppes at Laredo | Laredo, TX | ||||
Park Plaza | Little Rock, AR | ||||
Parkdale Mall | Beaumont, TX | Open (O) | Owned by Sears | ||
Parkway Place | Huntsville, AL | ||||
Pearland Town Center | Pearland, TX | ||||
Post Oak Mall | College Station, TX | Closed (O) | Owned by Sears. Under negotiation with retail use. | ||
South County Center | St. Louis, MO | Closed | Executed lease with entertainment user. | ||
Southaven Towne Center | Southaven, MS | ||||
St. Clair Square | Fairview Heights, IL | Expected to close (O) | Building Owned by Sears. Under Negotiation with Entertainment User | ||
Turtle Creek Mall | Hattiesburg, MS | Closed (O) | Owned by Sears | ||
Valley View Mall | Roanoke, VA | Open (O) | Owned by Sears. Sporting Goods/Entertainment interest. | ||
Volusia Mall | Daytona Beach, FL | Expected to Close (O) | Owned by Sears. Sporting Goods/Entertainment interest. | ||
West Towne Mall | Madison, WI | Redeveloped (O) | Owned by Seritage. Redeveloped with Dave & Busters and Total Wine. | Owned by Third Party. LOI with retailer. | |
WestGate Mall | Spartanburg, SC | Closed (O) | Owned by Sears | ||
Westmoreland Mall | Greensburg, PA | Expected to Close (O) | Building owned by Sears. LOI with tenant. | Executed lease with casino. Est. 2019 open. | |
York Galleria | York, PA | Closed | Lease out for signature with tenant. | Owned by Third Party |
TIER 3 Sales < $300 per square foot | |||||
Property | Location | Sears Status as of December 31, 2018 (1) | Sears Redevelopment Plans | Bon-Ton Redevelopment Plans | |
Alamance Crossing | Burlington, NC | ||||
Brookfield Square | Brookfield, WI | Under Construction | Purchased in Jan 2017 sale-leaseback for future redevelopment. Under construction to add Marcus, Whirlyball, restaurants, Conference Center and hotel. | Owned by Third Party. Under negotiation with new use. | |
Burnsville Center | Burnsville, MN | Closed (O) | Owned by Seritage. LOI with non-retail use. | ||
CherryVale Mall | Rockford, IL | Expected to Close | Lease with entertainment use OFS. | Choice Home Center - Opened Q4 '18. | |
Eastland Mall | Bloomington, IL | Closed | Under negotiation/LOIs with tenants. | Under negotiation/LOIs with tenants. |
TIER 3 Sales < $300 per square foot | |||||
Property | Location | Sears Status as of December 31, 2018 (1) | Sears Redevelopment Plans | Bon-Ton Redevelopment Plans | |
Honey Creek Mall | Terre Haute, IN | Expected to Close (O) | Building Owned by Sears. | Vendors Village - Opened Q4 '18. | |
Kentucky Oaks Mall | Paducah, KY | Under Construction (O) | Owned by Seritage. Burlington is under construction. | 50/50 JV asset. Leases out for signature with value retailer and national home furniture store. | |
Meridian Mall | Lansing, MI | Under negotiation/LOIs with tenants. | |||
Mid Rivers Mall | St. Peters, MO | Open (O) | Owned by Sears | ||
Monroeville Mall | Pittsburgh, PA | ||||
The Outlet Shoppes at Gettysburg | Gettysburg, PA | ||||
Stroud Mall | Stroudsburg, PA | Expected to Close | Under negotiation with non-retail use | Shoprite executed. Est. summer 2019 open. |
(1) | Sears boxes owned by the department store or a third party are noted with the following symbol next to the status (O). |
Q4 2018 CONFERENCE CALL - FRIDAY, FEBRUARY 8, 2019 |