![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
CBL and Associates Properties Inc | NYSE:CBL | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.07 | 0.27% | 25.56 | 982 | 11:23:12 |
Same-Center NOI Increase and Occupancy Gains Lead Strong Results in Third Quarter
CBL Properties (NYSE: CBL) announced results for the third quarter ended September 30, 2023. Results of operations as reported in the consolidated financial statements for these periods are prepared in accordance with GAAP. A description of each supplemental non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is located at the end of this news release.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Net income (loss) attributable to common shareholders
$
0.41
$
(0.47
)
$
(0.19
)
$
(3.26
)
Funds from Operations ("FFO")
$
1.93
$
1.55
$
4.79
$
3.78
FFO, as adjusted (1)
$
1.60
$
1.85
$
4.72
$
5.77
(1)
For a reconciliation of FFO to FFO, as adjusted, for the periods presented, please refer to the footnotes to the Company’s reconciliation of net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 8 of this news release.
KEY TAKEAWAYS:
“CBL posted solid results in the third quarter highlighted by same-center NOI growth of 40 basis points," said Stephen D. Lebovitz, CBL's chief executive officer. "The increase was primarily the result of contributions from occupancy improvements as well as expense savings. Operating expense is benefiting from a new lower third-party contract rate, as well as the timing of certain maintenance and repair items, several of which should impact the fourth quarter. As a result of the year-to-date performance and our expectations for the remainder of the year, we anticipate achieving full-year results near the mid-point of the FFO, as adjusted and same-center NOI guidance ranges.
"We maintained a high volume of leasing in the third quarter and new lease spreads were well into positive territory, increasing more than 25%. While renewal spreads were negative for the quarter, this was driven by a subset of portfolio renewal packages with certain underperforming tenants. The combination of rising occupancy and strong leasing demand positions us to more readily replace underperforming tenants going forward.
"Despite the challenging capital markets, we were pleased to close a new 10-year non-recourse loan secured by The Outlet Shoppes at Atlanta. This loan generated approximately $10 million in net new proceeds for our joint venture. With this loan closing and the exercise of available options for extendable loans, we have fully addressed all 2023 loan maturities successfully extending our debt maturity schedule. With the elimination of the limited corporate guaranty on our term loan on November 2nd, we also have made significant progress de-risking our balance sheet. During the third quarter, we began a disciplined execution of our stock repurchase program, taking advantage of the discount to our view of the value of CBL's stock. As we approach the end of 2023 and look forward to 2024, we are focused on achieving further operational improvements, generating greater free cash flow and maintaining a disciplined approach to capital allocation."
Same-center Net Operating Income (“NOI”) (1):
Three Months Ended September 30,
2023
2022
Total Revenues
$
159,404
$
162,577
Total Expenses
$
(52,955
)
$
(56,504
)
Total portfolio same-center NOI
$
106,449
$
106,073
Total same-center NOI percentage change
0.4
%
Estimate for uncollectable revenues (recovery)
$
2,293
$
(301
)
(1)
CBL’s definition of same-center NOI excludes the impact of lease termination fees and certain non-cash items such as straight-line rents and reimbursements, write-offs of landlord inducements and net amortization of above and below market leases.
Same-center NOI for the third quarter 2023 increased $0.4 million. Major variances impacting the quarter included a $2.6 million unfavorable variance in the estimate for uncollectable revenues and a $0.3 million decline in percentage rents. Operating expenses declined $3.6 million driven by $1.8 million lower maintenance and repair and $1.7 million lower property operating expense. The declines were primarily due to lower third-party contract expense and the timing of certain maintenance projects.
Nine Months Ended September 30,
2023
2022
Total Revenues
$
482,953
$
488,244
Total Expenses
$
(163,908
)
$
(163,769
)
Total portfolio same-center NOI
$
319,046
$
324,475
Total same-center NOI percentage change
(1.7
)%
Estimate for uncollectable revenues (recovery)
$
3,147
$
(3,719
)
Same-center NOI for nine months ended September 30, 2023, declined by $5.4 million or 1.7% from the prior-year period. The decline was driven by a $6.9 million unfavorable variance in the estimate for uncollectable revenues and a $3.1 million decline in percentage rents. Operating expenses were generally flat.
PORTFOLIO OPERATIONAL RESULTS Occupancy(1):
As of September 30,
2023
2022
Total portfolio
90.8%
90.5%
Malls, Lifestyle Centers and Outlet Centers:
Total malls
89.2%
88.7%
Total lifestyle centers
92.6%
90.6%
Total outlet centers
90.3%
90.9%
Total same-center malls, lifestyle centers and outlet centers
89.7%
89.1%
All Other:
Total open-air centers
95.0%
94.7%
Total other
82.5%
93.0%
(1)
Occupancy for malls, lifestyle centers and outlet centers represent percentage of in-line gross leasable area under 20,000 square feet occupied. Occupancy for open-air centers represents percentage of gross leasable area occupied.
New and Renewal Leasing Activity of Same Small Shop Space Less Than 10,000 Square Feet:
% Change in Average Gross Rent Per Square Foot:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2023
All Property Types
(4.0)%
1.2%
Stabilized Malls, Lifestyle Centers and Outlet Centers
(4.6)%
(0.0)%
New leases
26.9%
25.6%
Renewal leases
(6.5)%
(1.9)%
Same-Center Sales Per Square Foot for In-line Tenants 10,000 Square Feet or Less:
Sales Per Square Foot for the
Trailing Twelve Months Ended
September 30,
2023
2022
% Change
Mall, Lifestyle Center and Outlet Center same-center sales per square foot
$
420
$
440
(4.5)%
DIVIDEND On November 8, 2023, CBL’s Board of Directors declared a regular quarterly cash dividend for the three months ended December 31, 2023, of $0.375 per share. The dividend, which equates to an annual dividend payment of $1.50 per share, is payable on December 29, 2023, to shareholders of record as of December 12, 2023.
FINANCING ACTIVITY Year-to-date, CBL has completed more than $575.0 million in financing activity, successfully addressing all 2023 final loan maturities. Additionally, as of November 2, 2023, the limited guaranty provided by the Operating Partnership on the Secured Term Loan was eliminated and the loan became fully non-recourse.
In October, CBL along with its 50% joint venture partner, Horizon Group Properties, closed a new $79.3 million loan ($39.7 million at CBL’s 50% share) secured by The Outlet Shoppes of Atlanta, the premier outlet shopping destination located in Woodstock, GA. The new non-recourse ten-year loan bears a fixed interest-only rate of 7.85% and replaces two loans with an aggregate balance of $69.5 million (at 100%) that were set to mature in November 2023.
In October, CBL and it's 35% joint venture partner closed on the extension and modification of the loan secured by The Outlet Shoppes at Laredo in Laredo, TX. The loan was modified to reduce the principal balance to $33.98 million and add an additional one-year extension option through June 2025. The interest rate of SOFR plus 325 basis points remained the same.
In October, CBL exercised its option to extend the $17.6 million recourse loan secured by the Brookfield Square Anchor Redevelopment to December 2024. In connection with the extension, CBL made the optional election to reduce the outstanding principal balance by $2.0 million.
In November, CBL and the lender of the loan secured by Volusia Mall in Daytona Beach, FL, closed on the modification and extension of the loan. The loan was modified to apply escrow balances to reduce the principal balance by $1.7 million to $36.7 million and extend the maturity date two years to May 2026.
CBL is cooperating with the foreclosure or conveyance of WestGate Mall in Spartanburg, SC, ($28.7 million) and Alamance Crossing East in Burlington, NC, ($41.1 million). In September, WestGate Mall was placed into receivership and deconsolidated.
STOCK REPURCHASE PROGRAM ACTIVITY On August 10, 2023, CBL announced that its Board of Directors authorized a stock repurchase program for the Company to buy up to $25.0 million of its common stock. Purchases may be made through the program by August 10, 2024. Year-to-date, CBL had repurchased 51,966 shares at an average price of $21.30 per share under the program.
DISPOSITIONS During the third quarter 2023, CBL completed the sale of two land parcels generating $3.6 million in gross proceeds at CBL's share. Year-to-date through the second quarter end, CBL has grossed more than $8.9 million from dispositions.
DEVELOPMENT AND REDEVELOPMENT ACTIVITY Detailed project information is available in CBL’s Financial Supplement for Q3 2023, which can be found in the Invest – Financial Reports section of CBL’s website at cblproperties.com.
OUTLOOK AND GUIDANCE Based on third quarter 2023 results and Management's expectations for the remainder of 2023, CBL is providing the following guidance for FFO, as adjusted, and same-center NOI for full-year 2023. Guidance excludes the impact of any unannounced transactions.
Reconciliation of GAAP Earnings Per Share to 2023 FFO, as Adjusted, Per Share:
Low
High
2023 FFO, as adjusted
$193 million
$208 million
2023 FFO, as adjusted, per share
$
6.00
$
6.47
Weighted Average Common Shares Outstanding
32.1 million
32.1 million
2023 Same-Center NOI ("SC NOI")
$423 million
$440 million
2023 Change in Same-Center NOI
(4.5
)%
(0.7
)%
Low
High
Expected diluted earnings per common share
(0.79
)
(0.33
)
Depreciation and amortization
6.43
6.43
Dividends allocable to unvested restricted stock
0.03
0.03
Noncontrolling interest in earnings of Operating Partnership
(0.02
)
(0.01
)
Debt discount accretion, net of noncontrolling interests' share
1.93
1.93
Adjustment for unconsolidated affiliates with negative investment
(0.04
)
(0.04
)
Adjustment for litigation settlement
(0.07
)
(0.07
)
Non-cash default interest expense
0.03
0.03
Gain on deconsolidation
(1.50
)
(1.50
)
Expected FFO, as adjusted, per diluted, fully converted common share
$
6.00
$
6.47
2023 Estimate of Capital Items:
Low
High
2023 Estimated maintenance capital/tenant allowances
$40 million
$45 million
2023 Estimated development/redevelopment expenditures
$15 million
$18 million
2023 Estimated principal amortization (including est. term loan ECF)
$75 million
$85 million
Total Estimate
$130 million
$148 million
ABOUT CBL PROPERTIES Headquartered in Chattanooga, TN, CBL Properties owns and manages a national portfolio of market-dominant properties located in dynamic and growing communities. CBL’s owned and managed portfolio is comprised of 94 properties totaling 58.5 million square feet across 22 states, including 56 high-quality enclosed malls, outlet centers and lifestyle retail centers as well as more than 30 open-air centers and other assets. CBL seeks to continuously strengthen its company and portfolio through active management, aggressive leasing and profitable reinvestment in its properties. For more information visit cblproperties.com.
NON-GAAP FINANCIAL MEASURES Funds From Operations FFO is a widely used non-GAAP measure of the operating performance of real estate companies that supplements net income (loss) determined in accordance with GAAP. The National Association of Real Estate Investment Trusts ("NAREIT") defines FFO as net income (loss) (computed in accordance with GAAP) excluding gains or losses on sales of depreciable operating properties and impairment losses of depreciable properties, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests. Adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests are calculated on the same basis. We define FFO as defined above by NAREIT. The Company’s method of calculating FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
The Company believes that FFO provides an additional indicator of the operating performance of its properties without giving effect to real estate depreciation and amortization, which assumes the value of real estate assets declines predictably over time. Since values of well-maintained real estate assets have historically risen with market conditions, the Company believes that FFO enhances investors’ understanding of its operating performance. The use of FFO as an indicator of financial performance is influenced not only by the operations of the Company’s properties and interest rates, but also by its capital structure.
The Company believes FFO allocable to Operating Partnership common unitholders is a useful performance measure since it conducts substantially all of its business through its Operating Partnership and, therefore, it reflects the performance of the properties in absolute terms regardless of the ratio of ownership interests of the Company’s common shareholders and the noncontrolling interest in the Operating Partnership.
In the reconciliation of net income (loss) attributable to the Company’s common shareholders to FFO allocable to Operating Partnership common unitholders, located in this earnings release, the Company makes an adjustment to add back noncontrolling interest in income (loss) of its Operating Partnership in order to arrive at FFO of the Operating Partnership common unitholders.
FFO does not represent cash flows from operations as defined by GAAP, is not necessarily indicative of cash available to fund all cash flow needs and should not be considered as an alternative to net income (loss) for purposes of evaluating the Company’s operating performance or to cash flow as a measure of liquidity.
The Company believes that it is important to identify the impact of certain significant items on its FFO measures for a reader to have a complete understanding of the Company’s results of operations. Therefore, the Company has also presented adjusted FFO measures excluding these items from the applicable periods. Please refer to the reconciliation of net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 8 of this news release for a description of these adjustments.
Same-center Net Operating Income NOI is a supplemental non-GAAP measure of the operating performance of the Company’s shopping centers and other properties. The Company defines NOI as property operating revenues (rental revenues, tenant reimbursements and other income) less property operating expenses (property operating, real estate taxes and maintenance and repairs).
The Company computes NOI based on the Operating Partnership’s pro rata share of both consolidated and unconsolidated properties. The Company believes that presenting NOI and same-center NOI (described below) based on its Operating Partnership’s pro rata share of both consolidated and unconsolidated properties is useful since the Company conducts substantially all of its business through its Operating Partnership and, therefore, it reflects the performance of the properties in absolute terms regardless of the ratio of ownership interests of the Company’s common shareholders and the noncontrolling interest in the Operating Partnership. The Company's definition of NOI may be different than that used by other companies and, accordingly, the Company's calculation of NOI may not be comparable to that of other companies.
Since NOI includes only those revenues and expenses related to the operations of the Company’s shopping center properties, the Company believes that same-center NOI provides a measure that reflects trends in occupancy rates, rental rates, sales at the malls and operating costs and the impact of those trends on the Company’s results of operations. The Company’s calculation of same-center NOI excludes lease termination income, straight-line rent adjustments, amortization of above and below market lease intangibles and write-off of landlord inducement assets in order to enhance the comparability of results from one period to another. A reconciliation of same-center NOI to net income (loss) is located at the end of this earnings release.
Pro Rata Share of Debt
The Company presents debt based on the carrying value of its pro rata ownership share (including the carrying value of the Company’s pro rata share of unconsolidated affiliates and excluding noncontrolling interests’ share of consolidated properties) because it believes this provides investors a clearer understanding of the Company’s total debt obligations which affect the Company’s liquidity. A reconciliation of the Company’s pro rata share of debt to the amount of debt on the Company’s condensed consolidated balance sheet is located at the end of this earnings release.
Information included herein contains “forward-looking statements” within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company’s various filings with the Securities and Exchange Commission, including without limitation the Company’s Annual Report on Form 10-K, and the “Management's Discussion and Analysis of Financial Condition and Results of Operations” included therein, for a discussion of such risks and uncertainties.
Consolidated Statements of Operations (Unaudited; in thousands, except per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
REVENUES:
Rental revenues
$
124,783
$
131,642
$
379,949
$
398,806
Management, development and leasing fees
1,840
1,783
6,096
5,338
Other
2,728
2,855
9,532
9,256
Total revenues
129,351
136,280
395,577
413,400
EXPENSES:
Property operating
(22,621
)
(24,390
)
(68,742
)
(69,046
)
Depreciation and amortization
(45,118
)
(61,050
)
(148,129
)
(194,469
)
Real estate taxes
(13,794
)
(13,880
)
(43,063
)
(42,569
)
Maintenance and repairs
(8,487
)
(10,272
)
(30,002
)
(31,068
)
General and administrative
(14,398
)
(14,625
)
(49,783
)
(51,149
)
Loss on impairment
—
—
—
(252
)
Litigation settlement
2,060
36
2,178
182
Other
—
—
(198
)
(834
)
Total expenses
(102,358
)
(124,181
)
(337,739
)
(389,205
)
OTHER INCOME (EXPENSES):
Interest and other income
3,628
152
9,260
1,216
Interest expense
(42,891
)
(37,652
)
(130,588
)
(183,428
)
Gain on deconsolidation
19,728
—
47,879
36,250
Loss on available-for-sale securities
—
(39
)
—
(39
)
Gain on sales of real estate assets
3,414
3,528
4,896
3,547
Reorganization items, net
—
1,220
—
262
Income tax provision
(1,263
)
(2,422
)
(1,381
)
(2,751
)
Equity in earnings of unconsolidated affiliates
3,266
5,702
2,822
16,308
Total other expenses
(14,118
)
(29,511
)
(67,112
)
(128,635
)
Net income (loss)
12,875
(17,412
)
(9,274
)
(104,440
)
Net (income) loss attributable to noncontrolling interests in:
Operating Partnership
6
(25
)
6
34
Other consolidated subsidiaries
381
3,143
4,001
8,002
Net income (loss) attributable to the Company
13,262
(14,294
)
(5,267
)
(96,404
)
Earnings allocable to unvested restricted stock
(305
)
(216
)
(837
)
(426
)
Net income (loss) attributable to common shareholders
$
12,957
$
(14,510
)
$
(6,104
)
$
(96,830
)
Basic and diluted per share data attributable to common shareholders:
Basic earnings per share
$
0.41
$
(0.47
)
$
(0.19
)
$
(3.26
)
Diluted earnings per share
0.41
(0.47
)
(0.19
)
(3.26
)
Weighted-average basic shares
31,305
30,973
31,307
29,725
Weighted-average diluted shares
31,305
30,973
31,307
29,725
The Company's reconciliation of net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders is as follows: (in thousands, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Net income (loss) attributable to common shareholders
$
12,957
$
(14,510
)
$
(6,104
)
$
(96,830
)
Noncontrolling interest in loss of Operating Partnership
(6
)
25
(6
)
(34
)
Earnings allocable to unvested restricted stock
305
216
837
426
Depreciation and amortization expense of:
Consolidated properties
45,118
61,050
148,129
194,469
Unconsolidated affiliates
4,192
3,665
13,263
21,004
Non-real estate assets
(221
)
(123
)
(673
)
(524
)
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries
(562
)
(829
)
(1,935
)
(2,666
)
Loss on impairment, net of taxes
—
—
—
186
Gain on depreciable property
—
—
—
(629
)
FFO allocable to Operating Partnership common unitholders
61,783
49,494
153,511
115,402
Debt discount accretion, including our share of unconsolidated affiliates and net of noncontrolling interests' share (1)
14,689
25,425
47,879
153,924
Adjustment for unconsolidated affiliates with negative investment (2)
(3,659
)
(13,116
)
(1,180
)
(36,123
)
Senior secured notes fair value adjustment (3)
—
—
—
(395
)
Litigation settlement (4)
(2,060
)
(36
)
(2,178
)
(182
)
Non-cash default interest expense (5)
191
(1,585
)
972
(19,805
)
Gain on deconsolidation (6)
(19,728
)
—
(47,879
)
(36,250
)
Loss on available-for-sale securities
—
39
—
39
Reorganization items, net (7)
—
(1,220
)
—
(262
)
FFO allocable to Operating Partnership common unitholders, as adjusted
$
51,216
$
59,001
$
151,125
$
176,348
FFO per diluted share
$
1.93
$
1.55
$
4.79
$
3.78
FFO, as adjusted, per diluted share
$
1.60
$
1.85
$
4.72
$
5.77
Weighted-average common and potential dilutive common shares outstanding with Operating Partnership units fully converted
32,054
31,831
32,018
30,568
(1)
In conjunction with fresh start accounting upon emergence from bankruptcy, the Company recognized debt discounts equal to the difference between the outstanding balance of mortgage notes payable and the estimated fair value of such mortgage notes payable. The debt discounts are accreted as additional interest expense over the terms of the respective mortgage notes payable using the effective interest method.
(2)
Represents the Company’s share of the earnings (losses) before depreciation and amortization expense of unconsolidated affiliates where the Company is not recognizing equity in earnings (losses) because its investment in the unconsolidated affiliate is below zero.
(3)
Represents the fair value adjustment recorded on the senior secured notes as interest expense.
(4)
Represents a credit to litigation settlement expense, in each of the three- and nine-month periods ended September 30, 2023 and 2022, related to claim amounts that were released pursuant to the terms of the settlement agreement related to the settlement of a class action lawsuit.
(5)
The three and nine months ended September 30, 2023 includes default interest on loans past their maturity dates. The three and nine months ended September 30, 2022 includes the reversal of default interest expense when waivers or forbearance agreements were obtained.
(6)
For the three and nine months ended September 30, 2023, the Company deconsolidated WestGate Mall due to a loss of control when the property was placed into receivership in connection with the foreclosure process. For the nine months ended September 30, 2023, the Company deconsolidated Alamance Crossing East due to a loss of control when the property was placed into receivership in connection with the foreclosure process. For the nine months ended September 30, 2022, the Company deconsolidated Greenbrier Mall due to a loss of control when the property was placed into receivership in connection with the foreclosure process.
(7)
Represents costs incurred subsequent to the Company filing the chapter 11 cases associated with the Company's reorganization efforts, which consists of professional fees, legal fees and U.S. Trustee fees.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Diluted EPS attributable to common shareholders
$
0.41
$
(0.47
)
$
(0.19
)
$
(3.26
)
Add amounts per share included in FFO:
Unvested restricted stock
0.02
0.02
0.02
0.09
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
1.50
2.00
4.96
6.96
Loss on impairment, net of taxes
—
—
—
0.01
Gain on depreciable property
—
—
—
(0.02
)
FFO per diluted share
$
1.93
$
1.55
$
4.79
$
3.78
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
SUPPLEMENTAL FFO INFORMATION:
Lease termination fees
$
127
$
1,572
$
2,081
$
4,020
Straight-line rental income adjustment
$
2,053
$
2,058
$
5,408
$
9,400
Gain on outparcel sales, net of taxes and noncontrolling interests' share
$
3,073
$
3,561
$
5,378
$
3,580
Net amortization of acquired above- and below-market leases
$
(4,665
)
$
(5,438
)
$
(15,110
)
$
(16,487
)
Income tax provision
$
(1,263
)
$
(2,422
)
$
(1,381
)
$
(2,751
)
Abandoned projects expense
$
—
$
—
$
(17
)
$
(834
)
Interest capitalized
$
125
$
156
$
342
$
531
Estimate of uncollectable revenues
$
(2,692
)
$
(368
)
$
(4,194
)
$
3,850
As of September 30,
2023
2022
Straight-line rent receivable
$
21,205
$
12,343
Same-center Net Operating Income (Dollars in thousands)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Net income (loss)
$
12,875
$
(17,412
)
$
(9,274
)
$
(104,440
)
Adjustments:
Depreciation and amortization
45,118
61,050
148,129
194,469
Depreciation and amortization from unconsolidated affiliates
4,192
3,665
13,263
21,004
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries
(562
)
(829
)
(1,935
)
(2,666
)
Interest expense
42,891
37,652
130,588
183,428
Interest expense from unconsolidated affiliates
18,058
25,297
54,114
65,454
Noncontrolling interests' share of interest expense in other consolidated subsidiaries
(1,106
)
(2,688
)
(5,067
)
(7,783
)
Abandoned projects expense
—
—
17
834
Gain on sales of real estate assets, net of taxes and noncontrolling interests' share
(3,073
)
(3,528
)
(4,610
)
(3,547
)
Gain on sales of real estate assets of unconsolidated affiliates
—
(33
)
(768
)
(662
)
Adjustment for unconsolidated affiliates with negative investment
(3,659
)
(13,116
)
(1,180
)
(36,123
)
Gain on deconsolidation
(19,728
)
—
(47,879
)
(36,250
)
Loss on available-for-sale securities
—
39
—
39
Loss on impairment, net of taxes
—
—
—
186
Litigation settlement
(2,060
)
(36
)
(2,178
)
(182
)
Reorganization items, net
—
(1,220
)
—
(262
)
Income tax provision
1,263
2,422
1,381
2,751
Lease termination fees
(127
)
(1,572
)
(2,081
)
(4,020
)
Straight-line rent and above- and below-market lease amortization
2,612
3,380
9,702
7,087
Net loss attributable to noncontrolling interests in other consolidated subsidiaries
381
3,143
4,001
8,002
General and administrative expenses
14,398
14,625
49,783
51,149
Management fees and non-property level revenues
(4,709
)
(683
)
(14,727
)
(1,732
)
Operating Partnership's share of property NOI
106,764
110,156
321,279
336,736
Non-comparable NOI
(315
)
(4,083
)
(2,233
)
(12,261
)
Total same-center NOI (1)
$
106,449
$
106,073
$
319,046
$
324,475
Total same-center NOI percentage change
0.4
%
(1.7
)%
(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). 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 September 30, 2023, 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 September 30, 2023. New properties are excluded from same-center NOI, until they meet these criteria. Properties excluded from the same-center pool that would otherwise meet these 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.
Same-center Net Operating Income (Continued)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023
2022
2023
2022
Malls
$
72,878
$
73,562
$
218,575
$
227,255
Outlet centers
5,125
4,956
15,539
14,486
Lifestyle centers
8,913
8,415
26,586
25,685
Open-air centers
14,034
13,534
41,596
39,793
Outparcels and other
5,499
5,606
16,750
17,256
Total same-center NOI (1)
$
106,449
$
106,073
$
319,046
$
324,475
Percentage Change:
Malls
(0.9
)%
(3.8
)%
Outlet centers
3.4
%
7.3
%
Lifestyle centers
5.9
%
3.5
%
Open-air centers
3.7
%
4.5
%
Outparcels and other
(1.9
)%
(2.9
)%
Total same-center NOI (1)
0.4
%
(1.7
)%
(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). 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 September 30, 2023, and we owned it and it was in operation for both the entire preceding calendar year and the current year-to-date reporting period ended September 30, 2023. New properties are excluded from same-center NOI, until they meet these criteria. Properties excluded from the same-center pool that would otherwise meet these 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.
Company's Share of Consolidated and Unconsolidated Debt (Dollars in thousands)
As of September 30, 2023
Fixed Rate
Variable
Rate
Total per
Debt
Schedule
Unamortized
Deferred
Financing
Costs
Unamortized
Debt
Discounts (1)
Total
Consolidated debt
$
925,963
$
1,036,975
$
1,962,938
$
(14,264
)
$
(48,201
)
$
81,900,473
Noncontrolling interests' share of consolidated debt
(25,122
)
(13,072
)
(38,194
)
274
4,192
(33,728
)
Company's share of unconsolidated affiliates' debt
618,477
62,256
680,733
(3,185
)
—
677,548
Other debt (2)
69,783
—
69,783
—
—
69,783
Company's share of consolidated, unconsolidated and other debt
$
1,589,101
$
1,086,159
$
2,675,260
$
(17,175
)
$
(44,009
)
$
2,614,076
Weighted-average interest rate
5.18
%
8.40
%
6.49
%
As of September 30, 2022
Fixed Rate
Variable
Rate
Total per
Debt
Schedule
Unamortized
Deferred
Financing
Costs
Unamortized
Debt
Discounts (1)
Total
Consolidated debt
$
1,049,307
$
1,074,839
$
2,124,146
$
(16,621
)
$
(90,821
)
$
2,016,704
Noncontrolling interests' share of consolidated debt
(32,594
)
(13,493
)
(46,087
)
85
13,548
(32,454
)
Company's share of unconsolidated affiliates' debt
624,670
73,356
698,026
(2,294
)
—
695,732
Other debt (2)
61,647
—
61,647
—
—
61,647
Company's share of consolidated, unconsolidated and other debt
$
1,703,030
$
1,134,702
$
2,837,732
$
(18,830
)
$
(77,273
)
$
2,741,629
Weighted-average interest rate
4.85
%
5.53
%
5.12
%
(1)
In conjunction with fresh start accounting, the Company estimated the fair value of its mortgage notes with the assistance of a third-party valuation advisor. This resulted in recognizing debt discounts upon emergence from bankruptcy. The debt discounts are accreted over the term of the respective debt using the effective interest method.
(2)
Represents the outstanding loan balance for properties that were deconsolidated due to a loss of control when the properties were placed into receivership in connection with the foreclosure process.
Consolidated Balance Sheets (Unaudited; in thousands, except share data)
September 30,
December 31,
2023
2022
ASSETS
Real estate assets:
Land
$
585,476
$
596,715
Buildings and improvements
1,208,266
1,198,597
1,793,742
1,795,312
Accumulated depreciation
(205,547
)
(136,901
)
1,588,195
1,658,411
Developments in progress
6,555
5,576
Net investment in real estate assets
1,594,750
1,663,987
Cash and cash equivalents
34,509
44,718
Restricted cash
85,167
97,231
Available-for-sale securities - at fair value (amortized cost of $258,507 and $293,476 as of September 30, 2023 and December 31, 2022, respectively)
258,254
292,422
Receivables:
Tenant
36,927
40,620
Other
3,786
3,876
Investments in unconsolidated affiliates
73,434
77,295
In-place leases, net
175,579
247,497
Above market leases, net
130,047
171,265
Intangible lease assets and other assets
43,898
39,332
$
2,436,351
$
2,678,243
LIABILITIES AND EQUITY
Mortgage and other indebtedness, net
$
1,900,473
$
2,000,186
Below market leases, net
86,167
110,616
Accounts payable and accrued liabilities
120,741
200,312
Total liabilities
2,107,381
2,311,114
Shareholders' equity:
Common stock, $.001 par value, 200,000,000 shares authorized, 32,014,631 and 31,780,075 issued and outstanding as of September 30, 2023 and December 31, 2022, respectively (in each case, excluding 34 treasury shares)
32
32
Additional paid-in capital
717,559
710,497
Accumulated other comprehensive income (loss)
957
(1,054
)
Accumulated deficit
(380,258
)
(338,934
)
Total shareholders' equity
338,290
370,541
Noncontrolling interests
(9,320
)
(3,412
)
Total equity
328,970
367,129
$
2,436,351
$
2,678,243
View source version on businesswire.com: https://www.businesswire.com/news/home/20231109025799/en/
Katie Reinsmidt Executive Vice President - Chief Operating Officer 423.490.8301 katie.reinsmidt@cblproperties.com
1 Year CBL and Associates Prope... Chart |
1 Month CBL and Associates Prope... Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions