CBL & Associates Properties Reports Third Quarter 2012 Results Business Wire CHATTANOOGA, Tenn. -- November 06, 2012 CBL & Associates Properties, Inc. (NYSE:CBL): *FFO per diluted share increased 12.5% to $0.54 for the third quarter 2012, compared with $0.48 for the prior-year period. *Same-store sales increased 4.2% to $344 per square foot for mall tenants 10,000 square feet or less for stabilized malls for the rolling twelve months ended September30,2012. *Same-center NOI, excluding lease termination fees, increased 1.2% in the third quarter 2012, over the prior-year period. *Portfolio occupancy at September 30, 2012, increased 170 basis points to 93.0%, from 91.3% for the prior-year period. *Average gross rent for stabilized mall leases signed in the third quarter 2012 increased 9.2% over the prior gross rent per square foot. *Increasing the aggregate capacity of two major credit facilities to $1.2 billion and converting the facilities to unsecured. CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the third quarter ended September 30, 2012. A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP measure is located at the end of this news release. Three Months Ended Nine Months Ended September 30, September 30, 2012 2011 2012 2011 ^(1) Funds from Operations $0.54 $0.48 $1.55 $1.45 (“FFO”) per diluted share FFO for the nine-months ended September 30, 2011, excludes the gain on ^(1) extinguishment of debt of $0.17 per share recorded in the first quarter 2011. “Strong performance from our portfolio of market dominant malls led to another solid quarter of NOI and FFO growth as well as year-over-year improvement in sales, occupancy and rental spreads,” said Stephen Lebovitz, CBL’s president and chief executive officer. “The positive trends we’ve experienced throughout the year show continued retailer demand for space at our properties. We are taking advantage of the improved trends through an active pipeline of new growth opportunities which most recently yielded the grand opening of Waynesville Commons (Waynesville, NC) in October and the second phase of The Outlet Shoppes at Oklahoma City in November. The redevelopments of Southpark Mall (Richmond, VA) and Northgate Mall (Chattanooga, TN) and the construction start of The Crossings at Marshalls Creek (Stroudsburg, PA), will provide a solid foundation for growth in 2013.” “We are also pleased with the enhancements to our capital structure realized through the successful Series E preferred offering, the Series C preferred redemption and the completion of all our 2012 mortgage maturities. In addition, today we announced the extension, upsizing and conversion of our secured credit facilities into new unsecured lines of credit with aggregate capacity of $1.2 billion at a reduced interest rate, improving our financial flexibility and positioning CBL to pursue additional opportunities to enhance our portfolio’s growth profile.” FFO allocable to common shareholders for the third quarter of 2012 was $84,957,000, or $0.54 per diluted share, compared with $70,987,000, or $0.48 per diluted share, for the third quarter of 2011. FFO of the operating partnership for the third quarter of 2012 was $101,652,000, compared with $91,091,000, for the third quarter 2011. Third quarter 2012 included a $21,654,000 loss on impairment of real estate from continuing operations and an $8,466,000 loss on impairment of real estate from discontinued operations, related to several properties where a sale is anticipated or has occurred. These dispositions further the Company’s strategy of enhancing the portfolio by selling non-core properties. These properties include Hickory Hollow Mall and The Courtyard at Hickory Hollow in Antioch, TN; Towne Mall in Franklin, OH and Willowbrook Plaza, a community center in Houston, TX. As a result of these impairments, CBL reported a net loss attributable to common shareholders for the third quarter of 2012 of $2,520,000, or $0.02 per diluted share, compared with net loss of $27,320,000, or $0.18 per diluted share for the third quarter of 2011. HIGHLIGHTS *Portfolio same-center net operating income (“NOI”), excluding lease termination fees, for the quarter ended September 30, 2012, increased 1.2% compared with an increase of 2.3% for the prior-year period. Same-center NOI, excluding lease terminations fees, for the nine months ended September 30, 2012, increased 2.0% compared with an increase of 1.6% for the prior-year period. *Average gross rent on stabilized mall leases signed during the third quarter of 2012 for tenants 10,000 square feet or less increased 9.2% over the prior gross rent per square foot. *Same-store sales per square foot for mall tenants 10,000 square feet or less for stabilized malls for the rolling twelve months ended September 30, 2012, increased 4.2% to $344 per square foot compared with $330 per square foot in the prior-year period. Same-store sales per square foot for mall tenants 10,000 square feet or less for stabilized malls year-to-date through September 30, 2012, increased 4.1%. *Consolidated and unconsolidated variable rate debt of $1,008,815,000, as of September 30, 2012, represented 10.0% of the total market capitalization for the Company, compared with 14.8% in the prior-year period, and 18.6% of the Company’s share of total consolidated and unconsolidated debt, compared with 21.8% in the prior-year period. PORTFOLIO OCCUPANCY September 30, 2012 2011 Portfolio occupancy 93.0% 91.3% Mall portfolio 93.1% 91.2% Stabilized malls 93.0% 91.2% Non-stabilized malls ^(1) 100.0% 90.5% Associated centers 94.0% 93.7% Community centers 91.5% 90.9% Represents occupancy for The Outlet Shoppes at Oklahoma City in 2012, ^(1) as well as, The Outlet Shoppes at Oklahoma City and Pearland Town Center in 2011. CAPITAL MARKETS ACTIVITY On October 5, 2012, CBL closed on an underwritten public offering of 6,900,000 depositary shares, each representing 1/10th of a share of its newly designated 6.625% Series E Cumulative Redeemable Preferred Stock (“Series E Shares”) with a liquidation preference of $25.00 per depositary share, including 900,000 depositary shares sold pursuant to the underwriters’ exercise of their option to purchase additional depositary shares. The offering generated net proceeds to the Company of approximately $166.6 million, after deducting the underwriting discount and estimated offering expenses. On November 5, 2012, CBL completed the redemption of 460,000 outstanding shares of 7.75% Series C Cumulative Redeemable Preferred Stock (“Series C Shares”), and all outstanding depositary shares (“Depositary Shares”), each representing 1/10th of a Series C Share (NYSE: CBLPrC - CUSIP No.: 124830-50-6). The aggregate amount paid to effect the redemption of the Series C Shares (including the Depositary Shares) was approximately $115.9 million, which was funded with a portion of the net proceeds from CBL’s recent issuance of Series E Shares. The Company will record a charge of $3.8 million as additional preferred dividends in the fourth quarter 2012 in connection with the redemption of the Series C Shares to write off direct issuance costs that were recorded as a reduction of additional paid-in capital when the Series C Shares were issued. FINANCING ACTIVITY On November 6, 2012, CBL announced that it had received fully executed loan commitments to modify and extend its two major credit facilities, increasing the aggregate capacity by $155.0 million to $1.2 billion. CBL will convert both facilities from secured to unsecured, increasing the capacity of each facility to $600 million, extending the terms and reducing the average borrowing rate by 60 basis points. The outstanding balances on the two facilities will bear interest at an annual rate equal to LIBOR plus a range of 155 to 210 basis points, depending on the Company’s leverage ratio. The closing is anticipated in mid-November. The maturities of both facilities will be extended by three years with the first $600 million facility maturing November 2015, with an option to extend the maturity for one additional year to November 2016 (subject to continued compliance with the terms of the facility). The maturity of the second $600 million facility will be extended to November 2016 with an option to extend the maturity for one additional year to November 2017 (subject to continued compliance with the terms of the facility). DISPOSITION ACTIVITY Subsequent to the quarter end, CBL completed the sale of Hickory Hollow Mall in Antioch, TN and Towne Mall in Franklin, OH to two separate buyers, generating aggregate proceeds of $2.0 million. OUTLOOK AND GUIDANCE Based on third quarter results and today’s outlook, the Company is providing a 2012 FFO guidance range of $2.00 - $2.10 per share. While the guidance is consistent with the previously issued range, it was effectively increased to offset the $3.8 million preferred redemption charge that will be recorded in the fourth quarter 2012. Full-year guidance assumes same-center NOI growth in a range of 1.0% - 2.0%, $3.0 million to $5.0 million of outparcel sales and a 100 - 150 basis point increase in year-end occupancy as compared with the prior year. 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. Low High Expected diluted earnings per common share $0.42 $0.52 Adjust to fully converted shares from common (0.09 ) (0.11 ) shares Expected earnings per diluted, fully converted 0.33 0.41 common share Add: depreciation and amortization 1.58 1.58 Add: noncontrolling interest in earnings of 0.09 0.11 Operating Partnership Expected FFO per diluted, fully converted $2.00 $2.10 common share INVESTOR CONFERENCE CALL AND SIMULCAST CBL & Associates Properties, Inc. will conduct a conference call at 11:00 a.m. ET on Wednesday, November7,2012, to discuss its third quarter results. The numbers to call for this interactive teleconference are (800) 734-8592 or (212)231-2900. A seven-day replay of the conference call will be available by dialing (402)977-9140 and entering the passcode 21544169. A transcript of the Company’s prepared remarks will be furnished on a Form 8-K following the conference call. To receive the CBL & Associates Properties, Inc., third quarter earnings release and supplemental information please visit our website at cblproperties.com or contact Investor Relations at 423-490-8312. The Company will also provide an online web simulcast and rebroadcast of its 2012 third quarter earnings release conference call. The live broadcast of the quarterly conference call will be available online at cblproperties.com on Wednesday, November 7, 2012, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue through November 14, 2012. CBL is one of the largest and most active owners and developers of malls and shopping centers in the United States. CBL owns, holds interests in or manages 163 properties, including 93 regional malls/open-air centers. The properties are located in 28 states and total 91.4 million square feet including 9.4 million square feet of non-owned shopping centers managed for third parties. Headquartered in Chattanooga, TN, CBL has regional offices in Boston (Waltham), MA, Dallas (Irving), TX, and St. Louis, MO. Additional information can be found at cblproperties.com. NON-GAAP FINANCIAL MEASURES Funds From Operations FFO is a widely used 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 operating 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. In October 2011, NAREIT clarified that FFO should exclude the impact of losses on impairment of depreciable properties. The Company has calculated FFO for all periods presented in accordance with this clarification. The Company defines FFO allocable to its common shareholders as defined above by NAREIT less dividends on preferred stock. The Company’s method of calculating FFO allocable to its common shareholders 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 of its operating partnership and FFO allocable to its common shareholders, as it believes that both are useful performance measures. The Company believes FFO of its operating partnership 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 attributable to the Company’s common shareholders to FFO allocable to its common shareholders, 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 its operating partnership. The Company then applies a percentage to FFO of its operating partnership 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 outstanding during the period. FFO does not represent cash flows from operations as defined by accounting principles generally accepted in the United States, 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. During 2011, the Company recorded a gain on extinguishment of debt from discontinued operations. Considering the significance and nature of this item, the Company believes that it is important to identify the impact of the change 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 its FFO measures excluding this item. Same-Center Net Operating Income NOI is a supplemental measure of the operating performance of the Company’s shopping centers. The Company defines NOI as operating revenues (rental revenues, tenant reimbursements and other income) less property operating expenses (property operating, real estate taxes and maintenance and repairs). Similar to FFO, the Company computes NOI based on its pro rata share of both consolidated and unconsolidated properties. The Company’s definition of NOI may be different than that used by other companies and, accordingly, the Company’s NOI may not be comparable to that of other companies. A reconciliation of same-center NOI to net income is located at the end of this earnings release. Since NOI includes only those revenues and expenses related to the operations of its shopping center properties, the Company believes that same-center NOI provides a measure that reflects trends in occupancy rates, rental rates and operating costs and the impact of those trends on the Company’s results of operations. Additionally, there are instances when tenants terminate their leases prior to the scheduled expiration date and pay the Company one-time, lump-sum termination fees. These one-time lease termination fees may distort same-center NOI trends and may result in same-center NOI that is not indicative of the ongoing operations of the Company’s shopping center properties. Therefore, the Company believes that presenting same-center NOI, excluding lease termination fees, is useful to investors. 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 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. CBL & Associates Properties, Inc. Consolidated Statements of Operations (Unaudited; in thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, September 30, 2012 2011 2012 2011 REVENUES: Minimum rents $ 168,887 $ 172,973 $ 495,557 $ 510,250 Percentage rents 3,113 3,001 8,321 8,786 Other rents 3,786 4,175 13,735 13,686 Tenant 72,793 76,796 214,193 229,550 reimbursements Management, development and 3,139 1,909 7,574 4,814 leasing fees Other 7,895 8,409 23,894 26,362 Total revenues 259,613 267,263 763,274 793,448 OPERATING EXPENSES: Property operating 37,437 38,601 110,632 112,788 Depreciation and 67,186 70,720 198,123 209,925 amortization Real estate taxes 23,109 23,506 69,464 72,635 Maintenance and 13,922 13,661 40,079 43,075 repairs General and 10,171 10,092 35,964 33,133 administrative Loss on impairment 21,654 51,304 21,654 51,304 of real estate Other 5,871 7,446 19,188 22,795 Total operating 179,350 215,330 495,104 545,655 expenses Income from 80,263 51,933 268,170 247,793 operations Interest and other 822 595 3,193 1,752 income Interest expense (62,433 ) (70,133 ) (183,687 ) (208,216 ) Gain on extinguishment of 178 - 178 581 debt Gain on sales of 1,659 2,890 1,753 3,602 real estate assets Equity in earnings of unconsolidated 2,062 989 5,401 4,222 affiliates Income tax (1,195 ) (4,653 ) (1,234 ) 1,770 (provision) benefit Income (loss) from continuing 21,356 (18,379 ) 93,774 51,504 operations Operating income (loss) of (8,952 ) 90 (6,321 ) 23,495 discontinued operations Gain (loss) on discontinued 88 (31 ) 983 121 operations Net income (loss) 12,492 (18,320 ) 88,436 75,120 Net (income) loss attributable to noncontrolling interests in: Operating 1,776 7,760 (7,783 ) (5,443 ) partnership Other consolidated (6,194 ) (6,166 ) (17,139 ) (18,708 ) subsidiaries Net income (loss) attributable to the 8,074 (16,726 ) 63,514 50,969 Company Preferred dividends (10,594 ) (10,594 ) (31,782 ) (31,782 ) Net income (loss) attributable to $ (2,520 ) $ (27,320 ) $ 31,732 $ 19,187 common shareholders Basic per share data attributable to common shareholders: Income (loss) from continuing $ 0.03 $ (0.18 ) $ 0.24 $ 0.01 operations, net of preferred dividends Discontinued (0.05 ) - (0.03 ) 0.12 operations Net income (loss) attributable to $ (0.02 ) $ (0.18 ) $ 0.21 $ 0.13 common shareholders Weighted average common shares 158,689 148,363 152,721 148,264 outstanding Diluted earnings per share data attributable to common shareholders: Income (loss) from continuing $ 0.03 $ (0.18 ) $ 0.24 $ 0.01 operations, net of preferred dividends Discontinued (0.05 ) - (0.03 ) 0.12 operations Net income (loss) attributable to $ (0.02 ) $ (0.18 ) $ 0.21 $ 0.13 common shareholders Weighted average common and potential 158,731 148,405 152,765 148,310 dilutive common shares outstanding Amounts attributable to common shareholders: Income (loss) from continuing $ 4,876 $ (27,366 ) $ 36,019 $ 793 operations, net of preferred dividends Discontinued (7,396 ) 46 (4,287 ) 18,394 operations Net income (loss) attributable to $ (2,520 ) $ (27,320 ) $ 31,732 $ 19,187 common shareholders The Company's calculation of FFO allocable to its shareholders is as follows: (in thousands, except per share data) Three Months Ended Nine Months Ended September 30, September 30, 2012 2011 2012 2011 Net income (loss) attributable to $ (2,520 ) $ (27,320 ) $ 31,732 $ 19,187 common shareholders Noncontrolling interest in income (loss) (1,776 ) (7,760 ) 7,783 5,443 of operating partnership Depreciation and amortization expense of: Consolidated 67,186 70,720 198,123 209,925 properties Unconsolidated 10,828 7,020 32,947 21,132 affiliates Discontinued 114 684 576 1,657 operations Non-real estate (478 ) (732 ) (1,366 ) (1,959 ) assets Noncontrolling interests' share of (1,208 ) (214 ) (3,537 ) (516 ) depreciation and amortization Loss on impairment of real estate, 29,773 51,068 29,969 56,070 net of tax benefit Gain on depreciable - (2,406 ) (493 ) (2,406 ) property (Gain) loss on discontinued (89 ) 31 (644 ) (86 ) operations, net of taxes Funds from operations of 101,830 91,091 295,090 308,447 the operating partnership Gain on extinguishment (178 ) - (178 ) (32,015 ) of debt Funds from operations of the operating $ 101,652 $ 91,091 $ 294,912 $ 276,432 partnership, as adjusted Funds from operations per $ 0.54 $ 0.48 $ 1.55 $ 1.62 diluted share Gain on extinguishment - - - (0.17 ) of debt^(1) Funds from operations, as $ 0.54 $ 0.48 $ 1.55 $ 1.45 adjusted, per diluted share Weighted average common and potential dilutive common shares 190,236 190,422 190,226 190,366 outstanding with operating partnership units fully converted Reconciliation of FFO of the operating partnership to FFO allocable to common shareholders: Funds from operations of $ 101,830 $ 91,091 $ 295,090 $ 308,447 the operating partnership Percentage allocable to common 83.43 % 77.93 % 80.30 % 77.90 % shareholders ^(2) Funds from operations allocable to $ 84,957 $ 70,987 $ 236,957 $ 240,280 common shareholders Funds from operations of the operating $ 101,652 $ 91,091 $ 294,912 $ 276,432 partnership, as adjusted Percentage allocable to common 83.43 % 77.93 % 80.30 % 77.90 % shareholders ^(2) Funds from operations allocable to $ 84,808 $ 70,987 $ 236,814 $ 215,341 common shareholders, as adjusted ^(1) Diluted per share amounts presented for reconciliation purposes may differ from actual diluted per share amounts due to rounding. ^(2) 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 9. SUPPLEMENTAL FFO INFORMATION: Lease termination $ 815 $ 463 $ 2,973 $ 2,702 fees Lease termination $ - $ - $ 0.02 $ 0.01 fees per share Straight-line $ 2,181 $ 2,052 $ 4,403 $ 3,737 rental income Straight-line rental income $ 0.01 $ 0.01 $ 0.02 $ 0.02 per share Gains on $ 2,275 $ 30 $ 5,128 $ 2,023 outparcel sales Gains on outparcel sales $ 0.01 $ - $ 0.03 $ 0.01 per share Net amortization of acquired above- $ 795 $ 877 $ 1,575 $ 2,083 and below-market leases Net amortization of acquired above- and $ - $ - $ 0.01 $ 0.01 below-market leases per share Net amortization of $ 652 $ 603 $ 1,707 $ 1,960 debt premiums (discounts) Net amortization of debt premiums $ - $ - $ 0.01 $ 0.01 (discounts) per share Income tax (provision) $ (1,195 ) $ (4,653 ) $ (1,234 ) $ 1,770 benefit Income tax (provision) $ (0.01 ) $ (0.02 ) $ (0.01 ) $ 0.01 benefit per share Loss on impairment of real estate $ (21,654 ) $ (51,304 ) $ (21,654 ) $ (51,304 ) from continuing operations Loss on impairment of real estate $ (0.11 ) $ (0.27 ) $ (0.11 ) $ (0.27 ) from continuing operations per share Loss on impairment of real estate $ (8,466 ) $ - $ (8,759 ) $ (6,696 ) from discontinued operations Loss on impairment of real estate from $ (0.04 ) $ - $ (0.05 ) $ (0.04 ) discontinued operations per share Gain on extinguishment of debt from $ - $ - $ - $ 31,434 discontinued operations Gain on extinguishment of debt from $ - $ - $ - $ 0.17 discontinued operations per share Same-Center Net Operating Income (Dollars in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2012 2011 2012 2011 Net income (loss) attributable to the $ 8,074 $ (16,726 ) $ 63,514 $ 50,969 Company Adjustments: Depreciation and 67,186 70,720 198,123 209,925 amortization Depreciation and amortization from 10,828 7,020 32,947 21,132 unconsolidated affiliates Depreciation and amortization from 114 684 576 1,657 discontinued operations Noncontrolling interests' share of depreciation and (1,208 ) (214 ) (3,537 ) (516 ) amortization in other consolidated subsidiaries Interest expense 62,433 70,133 183,687 208,216 Interest expense from unconsolidated 11,022 7,195 33,289 21,655 affiliates Interest expense from discontinued - 511 208 1,734 operations Noncontrolling interests' share of interest expense in (1,014 ) (300 ) (2,476 ) (800 ) other consolidated subsidiaries Abandoned projects 8 - (115 ) 51 expense Gain on sales of real (1,659 ) (2,890 ) (5,772 ) (3,602 ) estate assets Gain on sales of real estate assets of (636 ) (81 ) (851 ) (1,327 ) unconsolidated affiliates Gain on extinguishment (178 ) - (178 ) (581 ) of debt Gain on extinguishment of debt from - - - (31,434 ) discontinued operations Writedown of mortgage - 400 - 1,900 notes receivable Loss on impairment of 21,654 51,304 21,654 51,304 real estate Loss on impairment of real estate from 8,466 - 8,759 6,696 discontinued operations Income tax provision 1,195 4,653 1,234 (1,770 ) (benefit) Net income (loss) attributable to noncontrolling (1,776 ) (7,760 ) 7,783 5,443 interest in earnings of operating partnership (Gain) loss on discontinued (88 ) 31 (983 ) (121 ) operations Operating partnership's share of 184,421 184,680 537,862 540,531 total NOI General and administrative 10,171 10,092 35,964 33,133 expenses Management fees and non-property level (7,030 ) (7,096 ) (19,233 ) (18,752 ) revenues Operating partnership's share of 187,562 187,676 554,593 554,912 property NOI Non-comparable NOI (9,229 ) (11,958 ) (21,712 ) (32,737 ) Total same-center NOI $ 178,333 $ 175,718 $ 532,881 $ 522,175 Total same-center NOI 1.5 % 2.1 % percentage change Total same-center NOI $ 178,333 $ 175,718 $ 532,881 $ 522,175 Less lease termination (832 ) (385 ) (2,711 ) (2,401 ) fees Total same-center NOI, excluding lease $ 177,501 $ 175,333 $ 530,170 $ 519,774 termination fees Malls $ 158,653 $ 158,146 $ 475,082 $ 466,411 Associated centers 8,192 7,673 24,478 23,262 Community centers 5,350 4,479 15,119 14,090 Offices and other 5,306 5,035 15,491 16,011 Total same-center NOI, excluding lease $ 177,501 $ 175,333 $ 530,170 $ 519,774 termination fees Percentage Change: Malls 0.3 % 1.9 % Associated centers 6.8 % 5.2 % Community centers 19.4 % 7.3 % Offices and other 5.4 % -3.2 % Total same-center NOI, excluding lease 1.2 % 2.0 % termination fees Company's Share of Consolidated and Unconsolidated Debt (Dollars in thousands) As of September 30, 2012 Fixed Rate Variable Rate Total Consolidated debt $ 3,822,271 $ 879,119 $ 4,701,390 Noncontrolling interests' share of (70,585 ) - (70,585 ) consolidated debt Company's share of unconsolidated 670,282 129,696 799,978 affiliates' debt Company's share of consolidated and $ 4,421,968 $ 1,008,815 $ 5,430,783 unconsolidated debt Weighted average 5.47 % 2.47 % 4.91 % interest rate As of September 30, 2011 Fixed Rate Variable Rate Total Consolidated debt $ 4,125,280 $ 1,107,868 $ 5,233,148 Noncontrolling interests' share of (15,486 ) (726 ) (16,212 ) consolidated debt Company's share of unconsolidated 393,702 149,950 543,652 affiliates' debt Company's share of consolidated and $ 4,503,496 $ 1,257,092 $ 5,760,588 unconsolidated debt Weighted average 5.63 % 2.56 % 4.96 % interest rate Debt-To-Total-Market Capitalization Ratio as of September 30, 2012 (In thousands, Shares except stock price) Outstanding Stock Price Value (1) Common stock and operating 190,194 $ 21.34 $ 4,058,740 partnership units 7.75% Series C Cumulative 460 250.00 115,000 Redeemable Preferred Stock 7.375% Series D Cumulative 1,815 250.00 453,750 Redeemable Preferred Stock Total market equity 4,627,490 Company's share of 5,430,783 total debt Total market $ 10,058,273 capitalization Debt-to-total-market 54.0 % capitalization ratio (1) Stock price for common stock and operating partnership units equals the closing price of the common stock on September 28, 2012. 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 Nine Months Ended September 30, September 30, 2012: Basic Diluted Basic Diluted Weighted average 158,689 158,731 152,721 152,765 shares - EPS Weighted average operating 31,506 31,505 37,461 37,461 partnership units Weighted average 190,195 190,236 190,182 190,226 shares- FFO 2011: Weighted average 148,363 148,405 148,264 148,310 shares - EPS Weighted average operating 42,017 42,017 42,056 42,056 partnership units Weighted average 190,380 190,422 190,320 190,366 shares- FFO Dividend Payout Three Months Ended Nine Months Ended Ratio September 30, September 30, 2012 2011 2012 2011 Weighted average cash dividend per $ 0.22896 $ 0.22690 $ 0.68688 $ 0.66860 share FFO per diluted, fully converted $ 0.54 $ 0.48 $ 1.55 $ 1.45 share, as adjusted Dividend payout 42.4 % 47.3 % 44.3 % 46.1 % ratio Consolidated Balance Sheets (Unaudited; in thousands, except share data) As of September 30, December 31, 2012 2011 ASSETS Real estate assets: Land $ 872,171 $ 851,303 Buildings and improvements 7,020,344 6,777,776 7,892,515 7,629,079 Accumulated depreciation (1,920,906 ) (1,762,149 ) 5,971,609 5,866,930 Held for sale 1,852 14,033 Developments in progress 170,435 124,707 Net investment in real estate assets 6,143,896 6,005,670 Cash and cash equivalents 66,350 56,092 Receivables: Tenant, net of allowance for doubtful accounts of $2,004 and $1,760 in 2012 and 79,900 74,160 2011, respectively Other, net of allowance for doubtful accounts of $1,257 and $1,400 in 2012 and 12,916 11,592 2011, respectively Mortgage and other notes receivable 26,007 34,239 Investments in unconsolidated affiliates 302,635 304,710 Intangible lease assets and other assets 258,612 232,965 $ 6,890,316 $ 6,719,428 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY Mortgage and other indebtedness $ 4,701,390 $ 4,489,355 Accounts payable and accrued liabilities 337,926 303,577 Total liabilities 5,039,316 4,792,932 Commitments and contingencies Redeemable noncontrolling interests: Redeemable noncontrolling partnership 40,929 32,271 interests Redeemable noncontrolling preferred joint 423,834 423,834 venture interest Total redeemable noncontrolling interests 464,763 456,105 Shareholders' equity: Preferred stock, $.01 par value, 15,000,000 shares authorized: 7.75% Series C Cumulative Redeemable 5 5 Preferred Stock, 460,000 shares outstanding 7.375% Series D Cumulative Redeemable Preferred Stock, 1,815,000 shares 18 18 outstanding Common stock, $.01 par value, 350,000,000 shares authorized, 159,094,361 and 1,591 1,484 148,364,037 issued and outstanding in 2012 and 2011, respectively Additional paid-in capital 1,702,321 1,657,927 Accumulated other comprehensive income 4,387 3,425 Dividends in excess of cumulative earnings (470,430 ) (399,581 ) Total shareholders' equity 1,237,892 1,263,278 Noncontrolling interests 148,345 207,113 Total equity 1,386,237 1,470,391 $ 6,890,316 $ 6,719,428 Contact: CBL & Associates Properties, Inc. Katie Reinsmidt, 423-490-8301 Senior Vice President - Investor Relations/Corporate Investments firstname.lastname@example.org
CBL & Associates Properties Reports Third Quarter 2012 Results
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