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 | |
---|---|---|---|---|---|---|---|---|
0.13 | 0.60% | 21.66 | 21.87 | 21.63 | 21.67 | 75,089 | 22:34:41 |
Please replace the release with the revised version to correct certain Q2 2020 financial information issued on August 6, 2020, at 4:15 p.m. ET. Please refer to Form 8-K/A furnished on August 18, 2020, for additional information.
The corrected release reads:
CBL PROPERTIES REPORTS RESULTS FOR SECOND QUARTER 2020
CBL Properties (NYSE:CBL) announced results for the second quarter ended June 30, 2020. 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 June 30,
Six Months Ended June 30,
2020
2019
%
2020
2019
%
Net loss attributable to common shareholders per diluted share
$
(0.42
)
$
(0.20
)
(110.0
)%
$
(1.16
)
$
(0.49
)
(136.7
)%
Funds from Operations ("FFO") per diluted share
$
(0.03
)
$
0.34
(108.8
)%
$
0.23
$
0.56
(58.9
)%
FFO, as adjusted, per diluted share (1)
$
0.02
$
0.34
(94.1
)%
$
0.28
$
0.64
(56.3
)%
(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 loss attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 9 of this news release.
KEY TAKEAWAYS:
“With all but one of our properties and the vast majority of retailers now open, we are seeing improved traffic levels,” said Stephen Lebovitz, Chief Executive Officer. “While our properties and our tenants have extensive safety protocols in place, shoppers appear to be more deliberate in their visits, resulting in lower traffic numbers compared to last year. However, retailers are reporting higher conversion rates with many equaling or exceeding pre-pandemic levels. In addition to traditional in-store shopping, retailers have innovated by adding curbside pick-up, order-online and pick-up in-store and other programs designed to ease the shopping experience. These conveniences are an increasingly important part of successful retailing.
“Our financial and operating results for the second quarter reflect the temporary closure of the CBL portfolio for a significant period due to government mandates. Revenues for the quarter were impacted by a major increase in the estimate for uncollectible revenues related to rents due from tenants that recently filed for bankruptcy or are struggling financially, as well as amounts that were abated as part of negotiations. Store closures and rent loss from prior tenant bankruptcies and lower percentage rent related to lower retail sales also impacted revenues. We offset a portion of this decline through aggressive actions to reduce costs both at the property and corporate levels, including company-wide salary reductions, furloughs, reductions-in-force and other expense reduction initiatives. However, the pandemic has accelerated a number of tenant bankruptcies, resulting in an expectation of additional store closures and lost rent through the remainder of the year. As a result of the difficulty in accurately predicting the impact to our business, we expect our visibility over the next few quarters to remain limited. Accordingly, we are continuing the suspension of full-year guidance until there are signs of more stability in our operating environment.
“Leasing activity for the quarter was muted as we shifted our focus to negotiating with existing tenants. To date, we have completed or are finalizing negotiations with retailers representing the majority of second quarter rent. These agreements generally include flexible terms on second quarter rent to certain retailers that require assistance, such as rent deferrals, while at the same time preserving current and future income to CBL. As we complete these negotiations, rent collections have improved with retailers paying all or a portion of past-due amounts as well as paying current rents.
“While the events to date in 2020 have dramatically impacted our business in the near-term, these events also underscore the importance of our portfolio transformation and tenant diversification strategy as well as the prudent actions we’ve taken to preserve and strengthen our cash position. Most traditional retailers have paused on new store plans until they can stabilize their existing store base and have better clarity on the outlook. However, a number of local and other users, primarily non-apparel, are viewing this as an opportunity to identify attractive new growth opportunities. Our leasing team is more creative than ever in pursuing these leads to continue the all-important diversification to our tenants and properties, and we are confident that, over time, our revenues will stabilize due to these efforts.
“Finally, while our corporate policy is to not comment on the unfortunate rumors and speculation reported by the media, we want to confirm that over the past few months we have been holding constructive discussions with our lenders. In June, we deliberately elected to withhold the interest payments on two issuances of senior unsecured notes that were due as part of our discussions with certain holders of our bonds as well as the lenders under our credit facility. We first entered the 30-day grace periods provided for in the indenture and subsequently entered into forbearance agreements with certain holders of our notes and lenders under our credit facility. On August 5th, we elected to make these payments, which total $30.4 million and accordingly are current on all unsecured debt service. Discussions are ongoing, and we are hopeful that a positive and mutually beneficial outcome will be reached.”
FINANCIAL RESULTS
Net loss attributable to common shareholders for the second quarter 2020 was $81.5 million, or $0.42 per diluted share, compared with a net loss of $35.4 million, or a loss of $0.20 per diluted share, for the second quarter 2019. Net loss for the second quarter 2020 was impacted by a $13.3 million loss on impairment of real estate to write down the carrying value of Asheville Mall in Asheville, NC, to the property’s estimated fair value. Net loss for the second quarter 2020 also included establishing a full valuation allowance of $15.8 million on the deferred tax asset.
Net loss attributable to common shareholders for the six months ended June 30, 2020, was $215.3 million, or $1.16 per diluted share, compared with a net loss of $85.6 million, or a loss of $0.49 per diluted share, for the six months ended 2019.
FFO allocable to common shareholders, as adjusted, for the second quarter 2020 was $4.7 million, or $0.02 per diluted share, compared with $59.4 million, or $0.34 per diluted share, for the second quarter 2019. FFO allocable to the Operating Partnership common unitholders, as adjusted, for the second quarter 2020 was $4.9 million compared with $68.5 million for the second quarter 2019.
FFO allocable to common shareholders, as adjusted, for the six months ended June 30, 2020 was $52.0 million or $0.28 per diluted share, compared with $111.8 million or $0.64 per diluted share, for the six months ended June 30, 2019. FFO allocable to the Operating Partnership common unitholders, as adjusted, for the six months ended June 30, 2020, was $56.5 million compared with $129.1 million for the six months ended June 30, 2019.
Percentage change in same-center Net Operating Income (“NOI”) (1):
Three Months Ended June 30,
Six Months Ended June 30,
2020
2019
Portfolio same-center NOI
(32.0
)%
(20.4
)%
Mall same-center NOI
(33.7
)%
(21.6
)%
(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 acquired above and below market leases.
Major variances impacting same-center NOI for the three months ended June 30, 2020, include:
COVID-19 UPDATE/RENT COLLECTION UPDATE
The COVID-19 pandemic resulted in closure of the majority of CBL’s owned and managed portfolio in response to government mandates beginning in March. To date, all but one of CBL’s owned and managed mall properties have re-opened and CBL has implemented strict procedures and guidelines for our employees, tenants and property visitors based on CDC and other health agency recommendations. Our properties continue to update these policies and procedures, following any new mandates and regulations, as required.
The mandated closures resulted in nearly all our tenants closing for a period of time and/or shortening operating hours. As a result, the Company has experienced an increased level of requests for rent deferrals and abatements as well as defaults on rent obligations. While, in general, CBL believes that tenants have a clear contractual obligation to pay rent, CBL has been working with its tenants to address rent deferral requests. Based on executed or in process agreements with our top 20 tenants as a percentage of total revenues, excluding tenants in bankruptcy, CBL anticipates collecting over 61% of related rent for the second quarter, with the remainder expected to be deferred or abated. CBL remains in negotiations with tenants and is unable to predict the outcome of those discussions.
As the Company finalizes negotiations, rent collections as a percentage of billed cash-based rents have increased with certain past-due amounts being paid, resulting in an overall collection rate for April through July of over 54%. July rent collections are currently estimated at 49% of billed rents; however, the Company anticipates an improvement in the collection rate as it finalizes negotiations with retailers and additional past-due amounts are paid.
EXPENSE REDUCTION AND LIQUIDITY
As previously announced, CBL has implemented comprehensive programs to halt all non-essential expenditures, reduce operating and overhead expenses and to reduce, defer or suspend capital expenditures, including redevelopment investments. In March, CBL completed a $280 million aggregate draw on its line of credit, which represented substantially all of the remaining available balance. As of June 30, 2020, the company had $275.8 million available in cash and marketable securities.
PORTFOLIO OPERATIONAL RESULTS
Occupancy(1):
As of June 30,
2020
2019
Total portfolio
88.1
%
90.2
%
Malls:
Total Mall portfolio
86.6
%
88.1
%
Same-center Malls
86.6
%
88.3
%
Stabilized Malls
86.8
%
88.3
%
Non-stabilized Malls (2)
79.2
%
78.0
%
Associated centers
90.5
%
96.3
%
Community centers
95.2
%
97.6
%
(1)
Occupancy for malls represents percentage of mall store gross leasable area under 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.
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 June 30,
Six Months Ended June 30,
2020
2019
Stabilized Malls
0.8
%
(6.4
)%
New leases
20.9
%
30.5
%
Renewal leases
(0.7
)%
(10.0
)%
Same-Center Sales Per Square Foot for Mall Tenants 10,000 Square Feet or Less:
Due to the temporary mall and store closures that occurred during the second quarter 2020, the majority of CBL’s tenants did not report sales for the full reporting period. As a result, CBL is not able to provide a complete measure of sales per square foot for the second quarter 2020 or trailing twelve-month period.
FINANCING ACTIVITY AND LENDER DISCUSSIONS
After discussions with each respective lender for the loans separately secured by Park Plaza in Little Rock, AR ($77.6 million), Hickory Point in Forsyth, IL ($27.4 million), EastGate Mall in Cincinnati, OH ($31.9 million) and Burnsville Center in Minneapolis, MN ($64.5 million), the Company anticipates cooperating with foreclosure or conveyance proceedings.
The Company remains in discussions with the lender for a potential modification and extension of the loan secured by Greenbrier Mall in Chesapeake, VA ($64.5 million) and recently entered into discussions with the lenders for the loans secured by Asheville Mall in Ashville, NC ($63.0 million) and Oak Park Mall in Overland Park, KS ($131.5 million at CBL’s share). These discussions are ongoing and CBL is not able to predict the outcome at this time.
As previously announced, CBL elected to not pay the interest payments due on June 1, 2020 and June 15, 2020, for the 5.25% senior unsecured notes due 2023 and the 5.95% senior unsecured notes due 2026, respectively (together, “the Notes”). CBL entered into forbearance agreements with certain beneficial holders in excess of 50% of the aggregate principal amount of the Notes as well as a forbearance agreement with lenders under the Company’s credit facility in order to continue discussions with both parties. On August 5, 2020, CBL elected to make the $30.4 million in interest payments and is now current on all unsecured debt service.
DISPOSITIONS
CBL did not complete any major dispositions during the quarter.
ANCHOR REPLACEMENT PROGRESS AND REDEVELOPMENT
As part of overall cost reduction and cash preservation actions, CBL has suspended or delayed certain redevelopment projects, where possible. Detailed project information is available in CBL’s Financial Supplement for Q2 2020, which can be found in the Invest – Financial Reports section of CBL’s website at cblproperties.com.
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 portfolio is comprised of 108 properties totaling 68.2 million square feet across 26 states, including 68 high-quality enclosed, outlet and open-air retail centers and 9 properties managed for third parties. 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 less dividends on preferred stock of the Company or distributions on preferred units of the Operating Partnership, as applicable. 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 presents both FFO allocable to Operating Partnership common unitholders and FFO allocable to common shareholders, as it believes that both are useful performance measures. 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. The Company believes FFO allocable to its common shareholders is a useful performance measure because it is the performance measure that is most directly comparable to net income (loss) attributable to its common shareholders.
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. The Company then applies a percentage to FFO of the Operating Partnership common unitholders to arrive at FFO allocable to its common shareholders. The percentage is computed by taking the weighted-average number of common shares outstanding for the period and dividing it by the sum of the weighted-average number of common shares and the weighted-average number of Operating Partnership units held by noncontrolling interests during the period.
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 9 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 is located at the end of this earnings release.
Pro Rata Share of Debt
The Company presents debt based on its pro rata ownership share (including 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 June 30,
Six Months Ended June 30,
2020
2019
2020
2019
REVENUES:
Rental revenues
$
120,222
$
185,393
$
281,395
$
376,373
Management, development and leasing fees
1,055
2,586
3,147
5,109
Other
2,934
5,398
7,243
9,925
Total revenues
124,211
193,377
291,785
391,407
OPERATING EXPENSES:
Property operating
(16,906
)
(26,532
)
(42,615
)
(55,512
)
Depreciation and amortization
(52,663
)
(64,478
)
(108,565
)
(134,270
)
Real estate taxes
(17,837
)
(19,148
)
(36,285
)
(39,067
)
Maintenance and repairs
(6,042
)
(11,298
)
(17,250
)
(24,074
)
General and administrative
(18,727
)
(14,427
)
(36,563
)
(36,434
)
Loss on impairment
(13,274
)
(41,608
)
(146,918
)
(66,433
)
Litigation settlement
—
—
—
(88,150
)
Other
(242
)
(34
)
(400
)
(34
)
Total operating expenses
(125,691
)
(177,525
)
(388,596
)
(443,974
)
OTHER INCOME (EXPENSES):
Interest and other income
891
356
3,288
845
Interest expense
(52,631
)
(52,482
)
(99,623
)
(106,480
)
Gain on extinguishment of debt
—
—
—
71,722
Gain on sales of real estate assets
2,623
5,527
2,763
5,755
Income tax provision
(16,117
)
(813
)
(16,643
)
(952
)
Equity in earnings (losses) of unconsolidated affiliates
(6,079
)
1,872
(5,061
)
5,180
Total other expenses
(71,313
)
(45,540
)
(115,276
)
(23,930
)
Net loss
(72,793
)
(29,688
)
(212,087
)
(76,497
)
Net loss attributable to noncontrolling interests in:
Operating Partnership
2,077
5,454
18,491
13,212
Other consolidated subsidiaries
487
57
694
132
Net loss attributable to the Company
(70,229
)
(24,177
)
(192,902
)
(63,153
)
Preferred dividends declared
—
(11,223
)
—
(22,446
)
Preferred dividends undeclared
(11,223
)
—
(22,446
)
—
Net loss attributable to common shareholders
$
(81,452
)
$
(35,400
)
$
(215,348
)
$
(85,599
)
Basic and diluted per share data attributable to common
shareholders:
Net loss attributable to common shareholders
$
(0.42
)
$
(0.20
)
$
(1.16
)
$
(0.49
)
Weighted-average common and potential dilutive common shares
outstanding
191,962
173,473
185,547
173,363
The Company's reconciliation of net 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 June 30,
Six Months Ended June 30,
2020
2019
2020
2019
Net loss attributable to common shareholders
$
(81,452
)
$
(35,400
)
$
(215,348
)
$
(85,599
)
Noncontrolling interest in loss of Operating Partnership
(2,077
)
(5,454
)
(18,491
)
(13,212
)
Depreciation and amortization expense of:
Consolidated properties
52,663
64,478
108,565
134,270
Unconsolidated affiliates
14,020
11,462
27,530
22,128
Non-real estate assets
(812
)
(902
)
(1,729
)
(1,799
)
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries
(788
)
(2,648
)
(1,711
)
(4,805
)
Loss on impairment
13,274
41,608
146,918
66,433
(Gain) Loss on depreciable property
—
(4,599
)
25
(4,841
)
FFO allocable to Operating Partnership common unitholders
(5,172
)
68,545
45,759
112,575
Debt restructuring expenses (1)
7,857
—
7,857
—
Litigation settlement, net of taxes (2)
—
—
—
87,667
Non-cash default interest expense (3)
2,203
—
2,893
542
Gain on extinguishment of debt (4)
—
—
—
(71,722
)
FFO allocable to Operating Partnership common unitholders,
as adjusted
$
4,888
$
68,545
$
56,509
$
129,062
FFO per diluted share
$
(0.03
)
$
0.34
$
0.23
$
0.56
FFO, as adjusted, per diluted share
$
0.02
$
0.34
$
0.28
$
0.64
Weighted-average common and potential dilutive common shares
outstanding with Operating Partnership units fully converted
201,702
200,231
201,480
200,122
(1)
Represents professional fees related to the Company's negotiations with the administrative agent and lenders under the secured credit facility and certain holders of the Company's senior unsecured notes regarding a restructure of such indebtedness.
(2)
The six months ended June 30, 2019 is comprised of the accrued maximum expense related to the proposed settlement of a class action lawsuit.
(3)
The six months ended June 30, 2020 includes default interest expense related to Greenbrier Mall, Hickory Point Mall, Eastgate Mall, Asheville Mall, Burnsville Center and Park Plaza Mall. The six months ended June 30, 2019 includes default interest expense related to Acadiana Mall and Cary Towne Center.
(4)
The six months ended June 30, 2019 includes a gain on extinguishment of debt related to the non-recourse loan secured by Acadiana Mall, which was conveyed to the lender in the first quarter of 2019, and a gain on extinguishment of debt related to the non-recourse loan secured by Cary Towne Center, which was sold in the first quarter of 2019.
The reconciliation of diluted EPS to FFO per diluted share is as follows:
Three Months Ended June 30,
Six Months Ended June 30,
2020
2019
2020
2019
Diluted EPS attributable to common shareholders
$
(0.42
)
$
(0.20
)
$
(1.16
)
$
(0.49
)
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
0.32
0.36
0.66
0.75
Loss on impairment
0.07
0.20
0.73
0.32
Gain on depreciable property
—
(0.02
)
—
(0.02
)
FFO per diluted share
$
(0.03
)
$
0.34
$
0.23
$
0.56
The reconciliations of FFO allocable to Operating Partnership common unitholders to FFO allocable to common shareholders, including and excluding the adjustments noted above, are as follows:
Three Months Ended June 30,
Six Months Ended June 30,
2020
2019
2020
2019
FFO allocable to Operating Partnership common unitholders
$
(5,172
)
$
68,545
$
45,759
$
112,575
Percentage allocable to common shareholders (1)
95.17
%
86.64
%
92.09
%
86.63
%
FFO allocable to common shareholders
$
(4,922
)
$
59,387
$
42,139
$
97,524
FFO allocable to Operating Partnership common unitholders, as
adjusted
$
4,888
$
68,545
$
56,509
$
129,062
Percentage allocable to common shareholders (1)
95.17
%
86.64
%
92.09
%
86.63
%
FFO allocable to common shareholders, as adjusted
$
4,652
$
59,387
$
52,039
$
111,806
(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 13.
Three Months Ended June 30,
Six Months Ended June 30,
2020
2019
2020
2019
SUPPLEMENTAL FFO INFORMATION:
Lease termination fees
$
1,433
$
1,073
$
1,653
$
2,090
Lease termination fees per share
$
0.01
$
0.01
$
0.01
$
0.01
Straight-line rental income
$
27
$
717
$
919
$
954
Straight-line rental income per share
$
—
$
—
$
—
$
—
Gains on outparcel sales
$
2,623
$
315
$
2,788
$
933
Gains on outparcel sales per share
$
0.01
$
—
$
0.01
$
—
Net amortization of acquired above- and below-market leases
$
209
$
691
$
1,112
$
1,499
Net amortization of acquired above- and below-market leases per share
$
—
$
—
$
0.01
$
0.01
Net amortization of debt premiums and discounts
$
344
$
325
$
687
$
649
Net amortization of debt premiums and discounts per share
$
—
$
—
$
—
$
—
Income tax provision
$
(16,117
)
$
(813
)
$
(16,643
)
$
(952
)
Income tax provision per share
$
(0.08
)
$
—
$
(0.08
)
$
—
Gain on extinguishment of debt
$
—
$
—
$
—
$
71,722
Gain on extinguishment of debt per share
$
—
$
—
$
—
$
0.36
Non-cash default interest expense
$
(2,203
)
$
—
$
(2,893
)
$
(542
)
Non-cash default interest expense per share
$
(0.01
)
$
—
$
(0.01
)
$
—
Abandoned projects expense
$
(242
)
$
(34
)
$
(400
)
$
(34
)
Abandoned projects expense per share
$
—
$
—
$
—
$
—
Interest capitalized
$
366
$
619
$
1,092
$
1,182
Interest capitalized per share
$
—
$
—
$
0.01
$
0.01
Litigation settlement, net of taxes
$
—
$
—
$
—
$
(87,667
)
Litigation settlement, net of taxes per share
$
—
$
—
$
—
$
(0.44
)
Estimate of uncollectible revenues
$
(41,484
)
$
(103
)
$
(44,623
)
$
(1,783
)
Estimate of uncollectible revenues, per share
$
(0.21
)
$
—
$
(0.22
)
$
(0.01
)
As of June 30,
2020
2019
Straight-line rent receivable
$
55,930
$
54,494
Same-center Net Operating Income
(Dollars in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2020
2019
2020
2019
Net loss
$
(72,793
)
$
(29,688
)
$
(212,087
)
$
(76,497
)
Adjustments:
Depreciation and amortization
52,663
64,478
108,565
134,270
Depreciation and amortization from unconsolidated affiliates
14,020
11,462
27,530
22,128
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries
(788
)
(2,648
)
(1,711
)
(4,805
)
Interest expense
52,631
52,482
99,623
106,480
Interest expense from unconsolidated affiliates
7,679
6,586
15,355
13,156
Noncontrolling interests' share of interest expense in other consolidated subsidiaries
(574
)
(1,717
)
(1,156
)
(3,483
)
Abandoned projects expense
242
34
400
34
Gain on sales of real estate assets
(2,623
)
(5,527
)
(2,763
)
(5,755
)
Gain on sales of real estate assets of unconsolidated affiliates
—
3
—
(627
)
Gain on extinguishment of debt
—
—
—
(71,722
)
Loss on impairment
13,274
41,608
146,918
66,433
Litigation settlement
—
—
—
88,150
Income tax provision
16,117
813
16,643
952
Lease termination fees
(1,433
)
(1,073
)
(1,653
)
(2,090
)
Straight-line rent and above- and below-market lease amortization
(236
)
(1,408
)
(2,031
)
(2,453
)
Net loss attributable to noncontrolling interests in other consolidated subsidiaries
487
57
694
132
General and administrative expenses
18,727
14,427
36,563
36,434
Management fees and non-property level revenues
(1,142
)
(4,118
)
(5,320
)
(6,784
)
Operating Partnership's share of property NOI
96,251
145,771
225,570
293,953
Non-comparable NOI
(5,523
)
(12,336
)
(13,222
)
(27,338
)
Total same-center NOI (1)
$
90,728
$
133,435
$
212,348
$
266,615
Total same-center NOI percentage change
(32.0
)%
(20.4
)%
Same-center Net Operating Income
(Continued)
Three Months Ended June 30,
Six Months Ended June 30,
2020
2019
2020
2019
Malls
$
78,660
$
118,657
$
186,013
$
237,342
Associated centers
6,316
8,166
13,776
16,293
Community centers
4,508
5,595
10,105
10,762
Offices and other
1,244
1,017
2,454
2,218
Total same-center NOI (1)
$
90,728
$
133,435
$
212,348
$
266,615
Percentage Change:
Malls
(33.7
)%
(21.6
)%
Associated centers
(22.7
)%
(15.4
)%
Community centers
(19.4
)%
(6.1
)%
Offices and other
22.3
%
10.6
%
Total same-center NOI (1)
(32.0
)%
(20.4
)%
(1)
CBL defines NOI as property operating revenues (rental revenues, tenant reimbursements and other income), less property operating expenses (property operating, real estate taxes and maintenance and repairs). Same-center NOI excludes lease termination income, straight-line rent adjustments, amortization of above and below market lease intangibles and write-offs of landlord inducement assets. We include a property in our same-center pool when we own all or a portion of the property as of June 30, 2020, and we owned it and it was in operation for both the entire preceding calendar year and the current year-to-date reporting period ending June 30, 2020. 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 June 30, 2020
Fixed Rate
Variable Rate
Total per Debt Schedule
Unamortized Deferred Financing Costs
Total
Consolidated debt
$
2,596,241
$
1,192,140
$
3,788,381
$
(14,347
)
$
3,774,034
Noncontrolling interests' share of consolidated debt
(30,377
)
—
(30,377
)
291
(30,086
)
Company's share of unconsolidated affiliates' debt
628,262
117,715
745,977
(2,769
)
743,208
Company's share of consolidated and unconsolidated debt
$
3,194,126
$
1,309,855
$
4,503,981
$
(16,825
)
$
4,487,156
Weighted-average interest rate
5.07
%
2.49
%
4.32
%
As of June 30, 2019
Fixed Rate
Variable Rate
Total per Debt Schedule
Unamortized Deferred Financing Costs
Total
Consolidated debt
$
2,946,440
$
938,989
$
3,885,429
$
(19,490
)
$
3,865,939
Noncontrolling interests' share of consolidated debt
(93,451
)
—
(93,451
)
747
(92,704
)
Company's share of unconsolidated affiliates' debt
544,829
79,251
624,080
(2,360
)
621,720
Company's share of consolidated and unconsolidated debt
$
3,397,818
$
1,018,240
$
4,416,058
$
(21,103
)
$
4,394,955
Weighted-average interest rate
5.10
%
4.73
%
5.01
%
Total Market Capitalization as of June 30, 2020
(In thousands, except stock price)
Shares Outstanding
Stock Price (1)
Common stock and operating partnership units
201,691
$
0.27
7.375% Series D Cumulative Redeemable Preferred Stock
1,815
250.00
6.625% Series E Cumulative Redeemable Preferred Stock
690
250.00
(1)
Stock price for common stock and Operating Partnership units equals the closing price of the common stock on June 30, 2020. The stock prices for the preferred stocks represent the liquidation preference of each respective series.
Reconciliation of Shares and Operating Partnership Units Outstanding
(In thousands)
Three Months Ended June 30,
Six Months Ended June 30,
Basic
Diluted
Basic
Diluted
2020:
Weighted-average shares - EPS
191,962
191,962
185,547
185,547
Weighted-average Operating Partnership units
9,740
9,740
15,933
15,933
Weighted-average shares - FFO
201,702
201,702
201,480
201,480
2019:
Weighted-average shares - EPS
173,473
173,473
173,363
173,363
Weighted-average Operating Partnership units
26,758
26,758
26,759
26,759
Weighted-average shares - FFO
200,231
200,231
200,122
200,122
Consolidated Balance Sheets
(Unaudited; in thousands, except share data)
As of
June 30, 2020
December 31, 2019
ASSETS
Real estate assets:
Land
$
719,497
$
730,218
Buildings and improvements
5,285,259
5,631,831
6,004,756
6,362,049
Accumulated depreciation
(2,199,622
)
(2,349,404
)
3,805,134
4,012,645
Developments in progress
30,600
49,351
Net investment in real estate assets
3,835,734
4,061,996
Cash and cash equivalents
123,388
32,816
Available-for-sale securities - at fair value (amortized cost of $152,460 in 2020)
152,418
—
Receivables:
Tenant
125,930
75,252
Other
5,457
10,792
Mortgage and other notes receivable
2,729
4,662
Investments in unconsolidated affiliates
301,148
307,354
Intangible lease assets and other assets
108,355
129,474
$
4,655,159
$
4,622,346
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Mortgage and other indebtedness, net
$
3,774,034
$
3,527,015
Accounts payable and accrued liabilities
227,147
231,306
Total liabilities
4,001,181
3,758,321
Commitments and contingencies
Redeemable noncontrolling interests
525
2,160
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, 191,951,454 and
174,115,111 issued and outstanding in 2020 and 2019, respectively
1,920
1,741
Additional paid-in capital
1,982,454
1,965,897
Accumulated other comprehensive loss
(42
)
—
Dividends in excess of cumulative earnings
(1,354,253
)
(1,161,351
)
Total shareholders' equity
630,104
806,312
Noncontrolling interests
23,349
55,553
Total equity
653,453
861,865
$
4,655,159
$
4,622,346
View source version on businesswire.com: https://www.businesswire.com/news/home/20200806005928/en/
Katie Reinsmidt, Executive Vice President - Chief Investment 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