CBL & Associates Properties Reports Fourth Quarter and Annual 2007 Results.* 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 increased 1.7% for the year ended December 31, 2007, over the prior-year, excluding lease termination fees termination fee The one-time charge for terminating or transferring an individual retirement account. If a financial institution charges a termination fee, the fee must be spelled out in the original agreement that is signed when the account is opened. . * Portfolio occupancy was 94.0% at December 31, 2007, excluding centers acquired in the fourth quarter 2007. * FFO FFO See: Funds from operations per share was $0.99 and $3.26 in the fourth quarter and year ended December 31, 2007, respectively, excluding a non-cash write down for marketable real estate securities. * Total revenues increased 8.5% and 4.5% during the fourth quarter and year ended December 31, 2007, respectively, over the prior year periods. CHATTANOOGA, Tenn. -- CBL Cbl cobalamin. & Associates Properties, Inc. (NYSE NYSE See: New York Stock Exchange : CBL) announced results for the fourth quarter and year ended December 31, 2007. A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measure is located at the end of this news release. Net income available to common shareholders for the fourth quarter ended December 31, 2007, was $13,418,000 or $0.20 per diluted share compared with $31,055,000 or $0.47 per diluted share for the prior-year period. Net income available to common shareholders for the year ended December 31, 2007, was $59,372,000 or $0.90 per diluted share compared with $86,933,000 or $1.33 per diluted share for the year ended December 31, 2006. Net income available to common shareholders for the year ended December 31, 2007, declined by $27,561,000 primarily due to an $18,456,000 non-cash write-down of marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has resulting from a significant decline in their market value during the fourth quarter 2007 ("write-down"), an increase in the non-cash income tax provision, higher interest expense and the write-off of direct issuance costs related to the redemption of the Company's 8.75% Series B Perpetual 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. on June 28, 2007. 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. ("FFO") per share on a diluted, fully converted basis was $0.83 for the fourth quarter ended December 31, 2007. FFO per share on a diluted, fully converted basis excluding the write-down was $0.99 for the fourth quarter ended December 31, 2007, compared with $0.97 in the prior-year period. FFO per share on a diluted, fully converted basis was $3.10 for the year ended December 31, 2007. FFO per share on a diluted, fully converted basis excluding the write-down was $3.26 for the year ended December 31, 2007, compared with $3.34 in the prior-year period. FFO allocable to common shareholders was $54,316,000 for the fourth quarter ended December 31, 2007. FFO allocable to common shareholders excluding the write-down was $64,691,000 for the fourth quarter ended December 31, 2007, compared with $63,319,000 for the fourth quarter ended December 31, 2006. FFO allocable to common shareholders for the year ended December 31, 2007, was $203,613,000. FFO allocable to common shareholders excluding the write-down for the year ended December 31, 2007, was $214,007,000, compared with $215,797,000 for the year ended December 31, 2006. FFO of the operating partnership for the fourth quarter ended December 31, 2007, was $96,614,000. FFO of the operating partnership excluding the write-down for the fourth quarter ended December 31, 2007, was $115,070,000, compared with $113,333,000 for the fourth quarter ended December 31, 2006. FFO of the operating partnership for the year ended December 31, 2007, was $361,528,000. FFO of the operating partnership excluding the write-down for the year ended December 31, 2007, was $379,984,000, compared with $390,089,000 for the year ended December 31, 2006. HIGHLIGHTS * Total revenues increased 8.5% during the fourth quarter ended December 31, 2007, to $294,299,000 from $271,272,000 in the prior-year period. Total revenues increased 4.5% during the year ended December 31, 2007, to $1,040,627,000 from $995,502,000 in the prior year. * Same-center net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. ("NOI"), excluding lease termination fees for the fourth quarter ended December 31, 2007, increased by 0.9% over the prior-year period. NOI, excluding lease termination fees for the year ended December 31, 2007, increased by 1.7% over the prior year. * Same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. growth for mall tenants of 10,000 square feet or less for stabilized malls for the year ended December 31, 2007, was flat at $346 per square foot compared with a 3.3% increase for the prior year. * The debt-to-total-market capitalization ratio as of December 31, 2007, was 64.0% based on the common stock closing price of $23.91 and a fully converted common stock share count of 116,814,000 shares as of the same date. The debt-to-total-market capitalization ratio as of December 31, 2006, was 47.6% based on the common stock closing price of $43.35 and a fully converted common stock share count of 116,280,000 shares as of the same date. * Consolidated and unconsolidated variable rate debt of $1,372,761,000 represents 14.1% of the total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. for the Company and 22.0% of the Company's share of total consolidated and unconsolidated debt. CBL's Chairman and Chief Executive Officer, Charles B. Lebovitz, said, "Our focus throughout 2007 was to drive same center NOI growth, establish leasing momentum and selectively expand the portfolio through strategic acquisitions and new developments. The execution of this strategy in 2007 reflected improvement in new and renewal leasing spreads while raising the total square footage of leases signed for the year to 6.6 million square feet - the most ever in our 30-year history. Same center NOI, excluding lease termination fees, was up 1.7% for the year in a challenging retail environment. "We also exceeded a previous record for acquisitions with a total of $1.6 billion closed in the year, which included securing an institutional joint venture partner. These transactions add to a growth platform that today includes 15 development projects under construction totaling 4.1 million square feet and a portfolio of 84 dominant regional malls and open-air centers. We are cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op we will be able to leverage this program in 2008 by continuing to emphasize high levels of development pre-leasing, enhance our conservative balance sheet and maintain the healthy leasing momentum into 2008 in our existing portfolio." [TABLE OMITTED] SHARE REPURCHASE Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. PROGRAM The Company did not repurchase any shares of its common stock during the fourth quarter. During the year ended December 31, 2007, the Company repurchased 148,500 shares of its common stock at an average price of $34.81 per share. OTHER SIGNIFICANT EVENTS During the fourth quarter 2007, CBL and Teachers' Retirement System of The State of Illinois ("TRS See traffic engineering methods. TRS - term rewriting system "), advised by Commonwealth Realty Advisors, Inc., formed a 50/50 joint venture partnership to own a portfolio of retail and office buildings in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. including Friendly Center, The Shops at Friendly Center in Greensboro and six office buildings located adjacent to Friendly Center in Green Valley Office Park. The portfolio was acquired from the Starmount Company, a private real estate owner, operator and developer. Additionally, subsequent to the quarter end, the joint venture completed the acquisition of The Renaissance Center The Renaissance Center, nicknamed the RenCen, is a group of seven interconnected skyscrapers in Detroit, Michigan, and the tallest building in Michigan since 1977. Located on the Detroit International Riverfront, the entire Renaissance Center complex is owned by General in Durham, NC. The total joint venture, including The Renaissance Center, is valued at $356.6 million. During the fourth quarter, CBL also acquired from The Starmount Company, a 100% interest in a portfolio of eight community centers located in Greensboro and High Point, NC, and twelve office buildings located in Greensboro and Raleigh, NC and Newport News Newport News, independent city (1990 pop. 170,045), SE Va., on the Virginia peninsula, at the mouth of the James River, off Hampton Roads, near Norfolk; inc. 1896. , VA. On December 31, 2007 and January 2, 2008, the Company entered into a $250 million interest rate swap Interest Rate Swap A deal between banks or companies where borrowers switch floating-rate loans for fixed rate loans in another country. These can be either the same or different currencies. and a $150 million interest rate swap, respectively, each of which hedges the interest rate risk exposure on an amount of the Company's debt principal equal to the swap notional amounts The notional amount (or notional principal amount or notional value) on a financial instrument is the nominal or face amount that is used to calculate payments made on that instrument. This amount generally does not change hands and is thus referred to as notional. . The effective weighted average fixed interest rate resulting from the swaps is 4.55% with a maturity on December 30, 2009. OUTLOOK AND GUIDANCE Based on today's outlook and the Company's fourth quarter results the Company is providing guidance for 2008 FFO in the range of $3.46 to $3.56 per share. The full year guidance assumes same-center NOI growth in the range of 0.0% to 2.0%, excluding lease termination fees from both applicable periods. The guidance also assumes $0.12 to $0.16 of outparcel sales for the year. The Company expects to update its annual guidance after each quarter's results. [TABLE OMITTED] INVESTOR CONFERENCE CALL AND SIMULCAST CBL & Associates Properties, Inc. will conduct a conference call at 10:00 a.m. ET on Friday, February 8, 2008, to discuss the fourth quarter results. The number to call for this interactive teleconference is (800) 240-7305. A seven-day replay of the conference call will be available by dialing (303) 590-3000 and entering the passcode 11106058#. A transcript of the Company's prepared remarks will be furnished on a Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. following the conference call. To receive the CBL & Associates Properties, Inc., fourth quarter earnings release and supplemental information please visit our website at http://cblproperties.com or contact Investor Relations Investor relations The process by which the corporation communicates with its investors. at 423-490-8292. The Company will also provide an online Web simulcast and rebroadcast of its 2007 fourth quarter and annual earnings release conference call. The live broadcast of CBL's quarterly conference call will be available online at the Company's Web site at http://cblproperties.com, as well as www.streetevents.com and www.earnings.com, on February 8, 2008, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call and continue through February 15, 2008. CBL is one of the largest and most active owners and developers of malls and shopping centers 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 in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . CBL owns, holds interests in or manages 159 properties, including 84 regional malls/open-air centers. The properties are located in 27 states and total 82.8 million square feet including 1.8 million square feet of non-owned shopping centers managed for third parties. CBL currently has fifteen projects under construction totaling 4.1 million square feet including Pearland Town Center, Houston (Pearland), TX; Settlers Ridge in Pittsburgh, PA; CBL Center II in Chattanooga, TN; The Pavilion at Port Orange in Port Orange, FL; Hammock hammock, suspended bed, usually of netting, canvas, or leather. The hammock and its name were introduced to Europeans by Christopher Columbus, who learned of them from Native Americans. Landing in West Melbourne West Melbourne may be:
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 determined in accordance with GAAP. The National Association of Real Estate Investment Trusts ("NAREIT NAREIT National Association of Real Estate Investment Trusts ") defines FFO as net income (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 minority interests. Adjustments for unconsolidated partnerships and joint ventures and minority interests are calculated on the same basis. The Company defines FFO allocable to common shareholders as defined above by NAREIT less dividends on preferred stock. The Company's method of calculating FFO allocable to 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 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 (Alg.) such as are known, or which do not contain the unknown quantity. See also: Absolute regardless of the ratio of ownership interests of the Company's common shareholders and the minority interest in the operating partnership. The Company believes FFO allocable to common shareholders is a useful performance measure because it is the performance measure that is most directly comparable to net income available to common shareholders. In the reconciliation of net income available to common shareholders to FFO allocable to common shareholders, the Company makes an adjustment to add back minority interest in earnings 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 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 for purposes of evaluating the Company's operating performance or to cash flow as a measure of liquidity. Same-Center Net Operating Income 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 operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. (rental revenues, tenant reimbursements and other income) less property operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. (property operating, real estate taxes and maintenance and repairs). Similar to FFO, the Company computes NOI based on its pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. 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 Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) , rental rates and operating costs operating costs npl → gastos mpl operacionales 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 Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. 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 minority investors' 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 consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. is located at the end of this earnings release. 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. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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