CBL & Associates Properties Reports First Quarter Results.Business Editors CHATTANOOGA Chattanooga (chăt'ən  `gə), city (1990 pop. 152,466), seat of Hamilton co., E Tenn., on both sides of the Tennessee River near the Georgia line; inc. 1839. , Tenn.--(BUSINESS WIRE)--April 26, 2000
CBL Cbl cobalamin. & Associates Properties, Inc. (NYSE NYSE See: New York Stock Exchange :CBL) -- FFO FFO See: Funds from operations per share increases 20.8% -- Same-center NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics up a record 9.8% -- Total portfolio occupancy increases to 94.1% CBL & Associates Properties, Inc. (NYSE:CBL) today announced results for the first quarter ended March 31, 2000. FUNDS FROM OPERATIONS Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. Total funds from operations (FFO) increased 20.9% to $32,124,000 for the first quarter ended March 31, 2000, from $26,568,000 in the first quarter of 1999. FFO per share increased 20.8% on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. , fully converted basis in the first quarter to $0.87 from $0.72 per share in the prior-year period. The Company's FFO calculation does not include gains on sales of outparcels, which are allowed by the National Association of Real Estate Investment Trusts' (NAREIT NAREIT National Association of Real Estate Investment Trusts ) definition of FFO. Gains on outparcel sales in the first quarter were $916,000, or $0.03 per diluted, fully converted share. Had this item been included, FFO for the first quarter of 2000 would have increased to a total of $0.90 from the $0.87 per share as reported. Also not included in the Company's calculation are gains on the sale of depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. assets, which were $2,655,000, or $0.07 per share Effective January January: see month. 1, 2000, NAREIT has clarified FFO to include all operating results, recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. and non-recurring - except those results defined as "extraordinary items" as defined under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . The Company implemented this clarification in the first quarter of 2000 and will no longer add back to FFO the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of development costs charged to net income. For the quarter ended March 31, 2000 this amount was $27,000. Results for the quarter ended March 31, 1999 were restated to reflect a reduction in FFO of $742,000, or $0.02 per diluted share. FINANCIAL HIGHLIGHTS Net income increased 16.2% in the first quarter of 2000 to $15,967,000 from $13,746,000 in the first quarter of 1999. Revenues increased 18.1% in the first quarter to $88,009,000 from $74,548,000 in the prior-year period. CBL's chairman and chief executive officer, Charles Charles, archduke of Austria Charles, 1771–1847, archduke of Austria; brother of Holy Roman Emperor Francis II. Despite his epilepsy, he was the ablest Austrian commander in the French Revolutionary and Napoleonic wars; however, he was handicapped by B. Lebovitz, said, "Our continued focus on achieving internal growth in our portfolio through aggressive leasing, creative marketing and developing alternative revenue sources led to the record 9.8% growth in same-center NOI during the quarter. I am pleased with the execution of the strategies we have initiated in all areas of the company for monetizing the value being created by our Great Shopping Places. This internal growth, combined with 2.8 million square feet of new shopping center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into space added in 1999 and an additional 1.2 million square feet opening this year, should lead to a strong year for CBL in 2000." Mr. Lebovitz added, "Highlights for the first quarter included commencement of construction on Creekwood Crossing in Bradenton Bradenton (brā`dəntən), city (1990 pop. 43,779), seat of Manatee co., SW Fla., on Tampa Bay at the mouths of the Braden and Manatee rivers; inc. 1903. , FL and the expansion and redevelopment of Meridian Mall There are several malls called Meridian Mall. These include:
1 Village (1990 pop. 28,086), Cook co., NE Ill., a suburb of Chicago, near the Ind. line; inc. 1893. Among the city's industries are meatpacking, food processing, and the manufacture of metal products. 2 City (1990 pop. , MI. We also released the former Upton's space at Arbor arbor Garden shelter providing privacy and partial protection from the weather, most commonly a lightweight, latticed framework (trellis) of wood or metal with interlaced branches of vines or climbing shrubs trained over it. Place in metropolitan Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. to dekor, an Atlanta-based home-decorating store. Consistent with our strategy of recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. capital, we completed the sale of two community centers totaling 305,000 square feet for an aggregate of $19 million. We also announced Dillard's and Parisian as anchor department stores This is a list of department stores. In the case of department store groups the location of the flagship store is given. This list does not include large specialist stores, which sometimes resemble department stores. for the 600,000-square-foot Parkway Place Parkway Place is an upscale shopping mall in Huntsville, Alabama. The mall opened on October 16, 2002, on the site of the older Parkway City Mall, which was torn down to allow for the construction of the newer facility. , our joint venture redevelopment of an existing mall in Huntsville, AL."
CURRENT DEVELOPMENT PIPELINE (opening dates in italics)
-- Sand Lake Corners expansion - Orlando, FL June 2000
-- Coastal Way Shopping Center - Spring Hill, FL August 2000
-- Chesterfield Crossing - Richmond, VA October 2000
-- Gunbarrel Pointe - Chattanooga, TN October 2000
-- Asheville Mall expansion - Asheville, NC November 2000
-- Meridian Mall expansion - Lansing, MI November 2000
-- Creekwood Crossing - Bradenton, FL April 2001
-- The Lakes Mall - Muskegon, MI August 2001
OPERATIONAL HIGHLIGHTS March 31,
----------------------
2000 1999
----- -----
Total portfolio occupancy 94.1% 93.8%
Stabilized and acquired malls 92.2% 92.3%
New malls 84.6% 84.3%
Total malls 91.2% 91.6%
Associated centers 91.9% 91.9%
Community centers 98.1% 96.8%
Comparable mall shop sales increase 2.2% 6.6%
Average base rents per square foot at March 31, 2000 were $20.79 for stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. malls; $18.88 for new malls; $9.95 for associated centers; and $8.47 for community centers. As of March 31, 2000, the Company's total consolidated and unconsolidated debt was $1.401 billion, with a weighted average interest rate of 7.27% and a debt to total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. ratio of 63.4%. The EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become to interest coverage ratio for the first quarter of 2000 was 2.54 compared with 2.61 for the prior-year period. Conventional fixed rate debt as of March 31, 2000 was $773.9 million, with a weighted average interest rate of 7.41%. Through the execution of swap agreements, the Company has fixed the interest rates on $443 million of variable rate debt on operating properties at a weighted average interest rate of 7.09%. An additional $50 million of interest rate caps and a permanent loan commitment of $74.5 million leaves $60 million of variable rate debt exposure all of which is associated with construction properties. DIVIDENDS In a previous announcement, CBL's Board of Directors declared a 4.6% increase in its regular quarterly cash dividend to $0.51 per share for the quarter ending March 31, 2000, for the Company's Common Stock. This marks the sixth consecutive year that the Board has increased the Common Stock dividend. Since its initial public offering in 1993, CBL's dividend has grown at a compound annual rate of 5.1%. The dividend, which equates to an annual rate of $2.04 per share compared with $1.95 per share in 1999, was paid on April 18, 2000, to shareholders of record as of March 31, 2000. The Board also declared a quarterly cash dividend of $0.5625 per share for the Company's 9% Series A Cumulative Redeemable Redeemable Eligible for redemption under the terms of an indenture. Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. for the first quarter. The Preferred Stock dividend, which equates to an annual dividend of $2.25 per share, was paid on March 30, 2000, to shareholders of record on March 15, 2000. INVESTOR CONFERENCE CALL The Company will provide an online Web simulcast and rebroadcast of its 2000 first quarter earnings release conference call. The live broadcast of CBL's quarterly conference call will be available online at www.cblproperties.com, www.streetevents.com, www.streetfusion.com, and www.vcall.com on April 27, 2000, beginning at 10:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The online replay will follow shortly after the call and continue through May 27, 2000. CBL & Associates Properties, Inc. is a real estate investment trust that owns regional malls and community shopping centers, primarily in the Southeast and select markets in the Northeast and Midwest. The Company has a portfolio of 141 properties in 25 states totaling 35.9 million square feet, including 1.8 million square feet of non-owned shopping centers managed for third parties. The Company has under construction seven new projects totaling approximately 2.2 million square feet, including one mall, one associated center, three community centers and two expansions. In 1999, CBL added 2.8 million square feet of shopping center space to the portfolio, including the opening in October of the 1.2 million-square-foot Arbor Place mall Arbor Place Mall, the only regional mall directly serving the growing western suburbs of Atlanta, is located in Douglasville, GA in Douglas County. Opened in October 1999, the mall was originally to be anchored by Dillard's, Parisian, Sears, and Upton's. in metropolitan Atlanta. The Company can be found on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.cblproperties.com. Information included herein contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and the "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" incorporated by reference therein, for a discussion of such risks and uncertainties.
CBL & ASSOCIATES PROPERTIES, INC.
(in thousands, except per share amounts)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended
March 31,
--------------------
2000 1999
-------- --------
Funds from operations - operating partnership
units fully converted $ 32,124 $ 26,568
Funds from operations applicable to REIT
shareholders $ 21,646 $ 17,899
Funds from operations per share - diluted $ 0.87 $ 0.72
Dividend declared per share $ 0.51 $ 0.4875
Revenues:
Minimum rents $ 55,301 $ 47,862
Percentage rents 4,851 3,232
Other rents 1,281 814
Tenant reimbursements 24,710 20,674
Management, development and leasing fees 626 1,040
Interest and other 1,240 926
-------- --------
Total revenues 88,009 74,548
-------- --------
Expenses:
Property operating 13,691 11,483
Depreciation and amortization 14,605 12,676
Real estate taxes 7,105 6,955
Maintenance and repairs 5,122 4,062
General and administrative 4,906 3,826
Interest 23,586 19,771
Other 27 742
-------- --------
Total expenses 69,042 59,515
-------- --------
Income from operations 18,967 15,033
Gain on sales of real estate assets 3,571 4,801
Equity in earnings of unconsolidated affiliates 755 935
Minority interest in earnings:
Operating partnership (6,946) (6,658)
Shopping center properties (380) (365)
-------- --------
Net income 15,967 13,746
Preferred dividends (1,617) (1,617)
-------- --------
Net income available to common shareholders $ 14,350 $ 12,129
======== ========
Basic per share data:
Net income $ 0.58 $ 0.49
======== ========
Weighted average common shares outstanding 24,754 24,574
Diluted per share data:
Net income $ 0.58 $ 0.49
======== ========
Weighted average shares and potential dilutive
common shares outstanding 24,815 24,795
CBL & ASSOCIATES PROPERTIES, INC.
(In thousands)
SUMMARIZED BALANCE SHEET INFORMATION (UNAUDITED)
March 31, Dec. 31,
2000 1999
----------- -----------
Cash and cash equivalents $ 8,097 $ 7,074
Total assets 2,038,685 2,018,838
Mortgage and other notes payable 1,377,808 1,360,753
Minority interest 177,789 170,750
Shareholders' equity 435,273 419,887
FUNDS FROM OPERATIONS CALCULATION
Three Months Ended
March 31,
--------------------------
2000 1999
----------- -----------
Income from operations $ 18,967 $ 15,033
Add: Depreciation and amortization
from consolidated properties 14,605 12,676
Income from operations of
unconsolidated affiliates 755 935
Depreciation and amortization
from unconsolidated affiliates 314 390
Less:Preferred dividends (1,617) (1,617)
Minority investors' share of income
from operations in nine properties (380) (365)
Minority investors' share of
depreciation and amortization
in nine properties (244) (232)
Depreciation and amortization of non-
real estate assets and finance costs (276) (252)
----------- -----------
Total funds from operations $ 32,124 $ 26,568
=========== ===========
Basic per share data:
Funds from operations $ 0.87 $ 0.73
=========== ===========
Weighted average shares with
operating partnership units
fully converted 36,736 36,476
=========== ===========
Diluted per share data:
Funds from operations $ 0.87 $ 0.72
=========== ===========
Weighted average shares and
potential dilutive common shares
with operating partnership units
fully converted 36,797 36,697
=========== ===========
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