posted November 3, 2009
CBL & Associates Properties, Inc. announced results for the third quarter ended Sept. 30. All share and per share information for the periods presented have been adjusted to reflect the issuance of common stock and common units, as applicable, in connection with the company's dividend payment on April 15.
Funds from Operations allocable to common shareholders for the quarter ended Sept. 30, was $68,425,000, or $0.50 per diluted share, compared with $55,320,000, or $0.78 per diluted share for the quarter ended Sept. 30, 2008. FFO allocable to common shareholders for the nine months ended Sept. 30, was $182,021,000, or $1.87 per diluted share, compared with $163,471,000, or $2.30 per diluted share for the nine months ended Sept. 30, 2008. FFO per diluted share was diluted by the 66.63 million shares issued in the June 2009 equity offering.
FFO of the operating partnership for the quarter ended Sept. 30, was $94,210,000, compared with $95,776,000 for the quarter ended Sept. 30, 2008. FFO of the operating partnership for the nine months ended Sept. 30, was $278,959,000, compared with $283,066,000 for the nine months ended Sept. 30, 2008.
FFO per diluted share for the quarter and nine months ended Sept. 30, was diluted by $0.26 per share and $0.40 per share, respectively, as a result of the 66.63 million shares issued in the June 2009 equity offering. FFO for the quarter and nine months ended Sept. 30, was reduced by a non-cash impairment charge of $1,143,000 related to the proposed sale of the Company's 60% interest in Plaza Macae located in Macae, Brazil. FFO for the quarter and nine months ended Sept. 30, 2008 included $8,000,000 of one-time fee income collected from affiliates of Centro, partially offset by a $5,778,000 write-down of marketable securities.
Net income available to common shareholders for the quarter ended Sept. 30, was $11,134,000, or $0.08 per diluted share, compared with net income of $3,985,000, or $0.06 per diluted share for the prior-year period. Net income available to common shareholders for the nine months ended Sept. 30, was $20,983,000, or $0.22 per diluted share, compared with $19,823,000, or $0.28 per diluted share, for the nine months ended Sept. 30, 2008. Net income available to common shareholders per diluted share was diluted by the 66.63 million shares issued in the June 2009 equity offering.
HIGHLIGHTS
Same-center net operating income ("NOI") for the total portfolio,
excluding lease termination fees, for the nine months ended Sept. 30, declined 0.9%, compared with a 1.4% decrease in the prior-year period.
Same-store sales for mall tenants of 10,000 square feet or less for stabilized malls as of Sept. 30, declined 6.6% to $317 per square foot compared with $339 per square foot in the prior-year period.
The debt-to-total-market capitalization ratio as of Sept. 30, was 74.6% based on the common stock closing price of $9.70 and a fully converted common stock share count of 189,825,000 shares as of the same date. The debt-to-total-market capitalization ratio as of Sept. 30, 2008, was 71.2% based on the common stock closing price of $20.08 and a fully converted common stock share count of 116,972,000 shares as of the same date.
Consolidated and unconsolidated variable rate debt of $1,350,082,000
represents 16.1% of the total market capitalization for the company and 21.6% of the company's share of total consolidated and unconsolidated debt.
CBL's Chairman and Chief Executive Officer, Charles B. Lebovitz, said, "We were pleased to have announced the completion of the three year extensions of both our $525 million secured credit facility and our $560 million new secured credit facility, maintaining their full lending capacity. Our capital plan provides for the repayment of CMBS maturities through 2011, and we are actively working with lenders on our other property specific secured refinancings. We have made significant progress in strengthening our balance sheet through these steps and remain focused on ensuring we have the most flexible capital structure to navigate the challenging economic environment."
"We are encouraged by the recent improving trends sequentially in sales, traffic and occupancy in the mall portfolio and the continued strong volume of leasing. Rental rates are still a challenge in this environment, but we have made notable progress in strengthening occupancy levels. These advances have carried over to backfilling junior anchor vacancies that resulted from the 2008 retail bankruptcies, with approximately 800,000 square feet of this available space now committed. Our two recent new developments, The Promenade in Biloxi/Gulfport, Ms. and Settlers Ridge in Pittsburgh, Pa., opened in October at impressive leased and committed levels in the mid-nineties. Despite the difficult environment, we are pleased to report progress and stability in our operating results."
On Oct. 16, the company entered into an agreement to sell its 60% interest in Plaza Macae in Macae, Brazil to a third party for $24.2 million. The transaction is expected to close in the fourth quarter 2009. As a result of the anticipated sale the company has recorded a non-cash impairment charge of $1.1 million in third quarter 2009 results.
CBL closed the extension and modification of its two major credit facilities including the $525 million secured credit facility and $560 million new secured credit facility, maintaining 100% lending capacity on both. The $525 million facility was extended from February 2010 to February 2012, with an option to extend the maturity for one additional year to February 2013 (subject to continued compliance with the terms of the facility). The $560 million facility was scheduled to mature in August 2011 (assuming exercise of the remaining extension option) and has been extended to April 2014.
On Oct. 11, CBL celebrated the grand opening of The Promenade, the 700,000 square foot power center located in D'Iberville (Biloxi/Gulfport), Ms. The first phase of The Promenade, totaling approximately 480,000 square feet, opened more than 96% leased and committed. The Promenade is anchored by Target, Best Buy, Dick's Sporting Goods, Marshall's, PetSmart, and ULTA and features dozens of specialty shops and restaurants.
On Oct. 30, CBL celebrated the grand opening of Settlers Ridge, a new 600,000 square foot regional open-air center in metropolitan Pittsburgh (Robinson Township), Pa. The first phase of Settlers Ridge opened more than 94% leased and committed. Settlers Ridge is anchored by a 150,000-square-foot Giant Eagle Market District supermarket, a 16-screen Cinemark stadium seating theatre, as well as LA Fitness, REI and Barnes & Noble and offers a wide selection of specialty stores and dining options.
Based on today's outlook and the company's third quarter results, the company is maintaining 2009 FFO guidance of $2.28 to $2.39 per share. The full year guidance also assumes $6.0 million to $9.0 million of outparcel sales and same-center NOI growth in the range of (1.5%) to (3.5%), excluding the impact of lease termination fees from both applicable periods. The guidance excludes the impact of any future unannounced acquisitions or dispositions. The company expects to update its annual guidance after each quarter's results.
| Dining Out | Business | Movies | Focus | About Us |
| Church | Living Well | Memories | Outdoors | Real Estate | Student Scene | Travel |