CBL &Associates Properties Reports Fourth Quarter and 1999 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)--Feb. 2, 2000CBL Cbl cobalamin. &Associates Properties, Inc. (NYSE NYSE See: New York Stock Exchange :CBL): -- Posts 16.8% Increase In FFO FFO See: Funds from operations Per Share for 1999 -- 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 Growth Increases 6.7% in Quarter -- Total Portfolio Occupancy Reaches Record 95.3% -- Proposes 4.6% Increase in Quarterly Dividend CBL &Associates Properties, Inc. (NYSE:CBL) today announced results for the fourth quarter and year ended December December: see month. 31, 1999. 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 20.6% to $31,968,000 for the fourth quarter ended December 31, 1999 from $26,504,000 in the fourth quarter of 1998. 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 fourth quarter to $0.87 from $0.72 per share in the prior-year period. Total FFO increased 26.0% to $117,947,000 for the year ended December 31, 1999 from $93,614,000 in 1998. FFO per share increased 19.8% on a diluted, fully converted basis in 1999 to $3.21 from $2.68 in the prior-year period. Excluding the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. fee of $3.1 million earned from the Company's co-development program in the third quarter of 1999, FFO for 1999 increased 16.8% to $3.13 per diluted, fully converted share. The Company's FFO calculation does not include gains on sales of outparcels, which is allowed by the National Association of Real Estate Investment Trusts= definition of FFO. Had outparcel sales been included, FFO would have increased by $0.23 per diluted, fully converted share for 1999 to a total of $3.44, including the one-time fee of $3.1 million, earned in the third quarter. FINANCIAL HIGHLIGHTS Income from operations increased 20.0% in the fourth quarter of 1999 to $17,765,000 from $14,810,000 in the fourth quarter of 1998. Revenues increased 17.0% in the fourth quarter to $87,142,000 from $74,472,000 in the prior-year period. Income from operations increased 30.6% in 1999 to $67,464,000 from $51,639,000 in 1998. Revenues increased 24.7% in 1999 to $317,603,000 from $254,640,000 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, &uot;The fourth quarter capped an outstanding year for CBL, resulting in a 16.8% increase in FFO per share for 1999. Record portfolio occupancy of 95.3% fueled higher specialty leasing income as well as higher base and percentage rents, leading to a 6.7% increase in 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. for the fourth quarter. Maintaining momentum from the third quarter, our 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. portfolio once again accounted for the greater share of our growth in the fourth quarter. We expect to build on these solid fundamentals and continued strength in retail sales at our properties to create additional internal growth through aggressive leasing and management. &uot;Our new development program was very active in 1999 with the opening of 2.0 million square feet. We will accelerate our development efforts in 2000 as we focus on new ground-up development, redevelopment and expansion opportunities in both our mall and community center portfolios. In addition to the 1.9 million square feet under construction today, we expect to start construction this year on a new 1.0 million-square-foot regional mall in Myrtle Beach, SC. Development has been a core component of our growth for over twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. , and we will continue to apply this expertise to deliver what will be a very exciting lineup A criminal investigation technique in which the police arrange a number of individuals in a row before a witness to a crime and ask the witness to identify which, if any, of the individuals committed the crime. of new projects in 2000 and beyond,&uot; concluded Mr. Lebovitz. CBL's seven projects currently under construction with opening dates are as follows: -- Sutton Sutton, outer borough (1991 pop. 164,300) of Greater London, SE England. It is mainly residential, but plastics, chemicals, radio components, and paper goods are produced. The areas of Sutton were mentioned in the Domesday Book. Plaza expansion - Mt. Olive, NJ February February: see month. 2000 -- Sand Lake Corners expansion - Orlando Orlando, city, United States Orlando (ôrlăn`dō), city (1990 pop. 164,693), seat of Orange co., central Fla., in a lake region; inc. 1875. In a citrus fruit and farm area, it is one of the world's most visited vacation spots. , FL June 2000 -- Chesterfield Chesterfield, city (1991 pop. 73,352) and district, Derbyshire, central England. An important industrial center, Chesterfield produces mining equipment, railroad cars, metal products, glass, and pottery. Crossing - Richmond, VA August 2000 -- Coastal Way 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 - Spring Hill, FL August 2000 -- Gunbarrel Pointe pointe n. In ballet, dancing that is performed on the tips of the toes. [From French pointe (des pieds), point (of the feet), tiptoe; see point.] - Chattanooga, TN October 2000 -- Asheville Mall expansion - Asheville, NC November 2000 -- The Lakes Mall - Muskegon, MI August 2001 The eight projects opened in 1999 included one mall, 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; its associated center, The Landing at Arbor Place; three community centers, Fiddler's Run in Morganton, NC, Sand Lake Corners in Orlando, FL and Regal Cinemas in Jacksonville, FL; and three expansions, Bonita Bonita (Spanish and Portuguese for "beautiful") is the name of:
During 1999, the Company continued its proactive strategy of renovating its property portfolio. In 2000, the Company intends to remodel re·mod·el tr.v. re·mod·eled also re·mod·elled, re·mod·el·ing also re·mod·el·ling, re·mod·els also re·mod·els To make over in structure or style; reconstruct. Asheville Mall and five community centers. The commitment to continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. improving the Company's properties is one of the elements responsible for the continued improvement in comparable mall shop sales and total portfolio occupancy.
OPERATIONAL HIGHLIGHTS December 31,
1999 1998
---------- ----------
Total portfolio occupancy 95.3% 94.8%
Stabilized and acquired malls 94.5% 93.7%
New malls 88.0% 92.7%
Total malls 93.6% 93.6%
Associated centers 93.2% 90.7%
Community centers 97.7% 97.0%
Comparable mall shop sales increase 5.0% 3.8%
Average sales per square foot,
stabilized malls $ 285.00 $ 271.50
Occupancy in the new mall category reflects the inclusion of two properties that are being redeveloped, 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. in Huntsville, AL and Springdale Mall  should be added to this article, to conform with Wikipedia's Manual of Style.Please discuss this issue on the talk page. in Mobile, AL. At Parkway Place, the Company plans to begin this year what will eventually be the complete demolition Demolition is the opposite of construction: the tearing-down of buildings and other structures. It contrasts with deconstruction, which is the taking down of a building while carefully preserving valuable elements for re-use. of the existing mall in conjunction with its overall redevelopment. At Springdale Mall, we continue to strategically reposition for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth through renovation and retenanting. Excluding Parkway Place and Springdale Mall, new mall occupancy in the fourth quarter would have been 91.5% and total portfolio occupancy would have been 95.7%. Average base rents per square foot at December 31, 1999 were $21.11 for stabilized malls; $15.48 for new malls; $11.40 for associated centers; and $9.48 for community centers. As of December 31, 1999, the Company's total consolidated and unconsolidated debt was $1.385 billion, with a weighted average interest rate of 7.16% and a debt to total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. ratio of 63.1%. 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 fourth quarter of 1999 was 2.36 compared with 2.45 for the prior-year period and 2.53 for 1999 compared with 2.43 in the prior-year period. Conventional fixed rate debt as of December 31, 1999 was $778.7 million, with a weighted average interest rate of 7.41%. Through the execution of swap agreements, the Company has fixed the interest rates on $414 million of variable rate debt on operating properties at a weighted average interest rate of 6.79%. An additional $150 million of interest rate caps leaves only $42.0 million of variable rate debt exposure, all of which is associated with construction properties. DIVIDENDS The Company also announced that it expects to increase the regular quarterly cash dividend for the Company's Common Stock to $0.51 per share from $.4875 per share, effective with the first quarter of 2000. This 4.6% increase would raise the annual dividend to $2.04 per share from $1.95 per share and represents the sixth consecutive annual increase in the Company's dividend. CBL's regular quarterly cash dividend of $0.4875 per share, or an annual rate of $1.95 per share, for the fourth quarter of 1999 for the Company's Common Stock was paid on January 14, 2000 to shareholders of record as of December 31, 1999. The quarterly cash dividend of $0.5625 per share, or an annual rate of $2.25 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 fourth quarter of 1999 was paid on December 30, 1999 to shareholders of record as of December 15, 1999. INVESTOR CONFERENCE CALL The Company will provide an online Web simulcast and rebroadcast of its 1999 fourth 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 February 3, 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 March 4, 2000. CBL &Associates Properties, Inc. is a real estate investment trust which 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 142 properties in 25 states totaling 36.1 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 1.9 million square feet, including one mall, one associated center, two community centers, and three 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 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 &uot;forward-looking statements&uot; 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 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. . 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 &uot;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&uot; 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 Year Ended
December 31, December 31,
------------------ --------------------
1999 1998 1999 1998
------- ------- -------- --------
Funds from operations
- operating partnership
units fully converted $31,968 $26,504 $117,947 $ 93,614
Funds from operations
applicable to REIT
shareholders $21,529 $17,571 $ 79,495 $ 65,026
Funds from operations
per share - diluted $ 0.87 $ 0.72 $ 3.21 $ 2.68
Dividend declared per share $0.4875 $0.4650 $ 1.950 $ 1.860
Revenues:
Minimum rents $55,782 $48,085 $203,022 $166,630
Percentage rents 859 776 7,356 4,751
Other rents 3,444 2,725 5,442 4,007
Tenant reimbursements 24,683 21,596 89,774 73,837
Management, development
and leasing fees 1,316 653 7,818 2,711
Interest and other 1,058 637 4,191 2,704
------- ------- -------- --------
Total revenues 87,142 74,472 317,603 254,640
------- ------- -------- --------
Expenses:
Property operating 14,557 12,431 50,832 41,942
Depreciation and
amortization 14,676 13,013 53,551 43,547
Real estate taxes 7,312 6,753 27,580 23,360
Maintenance and repairs 4,865 4,637 17,783 14,860
General and administrative 4,899 3,335 16,214 11,841
Interest 22,364 19,493 82,505 67,329
Other 704 -- 1,674 122
------- ------- -------- --------
Total expenses 69,377 59,662 250,139 203,001
------- ------- -------- --------
Income from operations 17,765 14,810 67,464 51,639
Gain on sales of real
estate assets (1,148) 1,273 8,357 4,183
Equity in earnings of
unconsolidated affiliates 844 690 3,263 2,379
Minority interest in
earnings:
Operating partnership (5,081) (4,982) (23,264) (16,258)
Shopping center properties (284) (236) (1,225) (645)
------- ------- -------- --------
Income before extraordinary
item 12,096 11,555 54,595 41,298
Extraordinary loss on
extinguishment of debt -- (123) -- (799)
------- ------- -------- --------
Net income 12,096 11,432 54,595 40,499
Preferred dividends (1,617) (1,617) (6,468) (3,234)
------- ------- -------- --------
Net income available to
common shareholders $10.479 $ 9,815 $ 48,127 $ 37,265
======= ======= ======== ========
Basic per share data:
Income before
extraordinary item $ 0.42 $ 0.41 $ 1.95 $ 1.58
======= ======= ======== ========
Net income $ 0.42 $ 0.41 $ 1.95 $ 1.55
======= ======= ======== ========
Weighted average common
shares outstanding 24,703 24,153 24,628 24,079
Diluted per share data:
Income before
extraordinary item $ 0.42 $ 0.41 $ 1.94 $ 1.56
======= ======= ======== ========
Net income $ 0.42 $ 0.40 $ 1.94 $ 1.53
======= ======= ======== ========
Weighted average shares
and potential dilutive
common shares outstanding 24,794 24,456 24,869 24,340
CBL &ASSOCIATES PROPERTIES, INC.
(In thousands)
SUMMARIZED BALANCE SHEET INFORMATION (UNAUDITED)
December 31, December 31,
1999 1998
---------- ----------
Cash and cash equivalents $ 7,074 $ 5,827
Total assets 2,018,838 1,855,347
Mortgage and other notes payable 1,360,753 1,208,204
Minority interest 170,750 168,040
Shareholders' equity 419,887 415,782
FUNDS FROM OPERATIONS CALCULATION
Three Months Ended Year Ended
December 31, December 31,
------------------ -------------------
1999 1998 1999 1998
------- ------- -------- -------
Income from operations $17,765 $14,810 $ 67,464 $51,639
Add: Depreciation and
amortization
from consolidated
properties 14,676 13,013 53,551 43,547
Income from operations
of unconsolidated
affiliates 844 690 3,263 2,379
Depreciation and
amortization from
unconsolidated
affiliates 368 370 1,619 1,427
Write-off of development
costs charged to
net income 704 0 1,674 122
Less: Preferred dividends (1,617) (1,617) (6,468) (3,234)
Minority investors'
share of income from
operations in nine
properties (284) (236) (1,225) (645)
Minority investors'
share of depreciation
and amortization
in nine properties (212) (226) (920) (875)
Depreciation and
amortization of non-
real estate assets and
finance costs (276) (300) (1,011) (746)
------- ------- -------- -------
Total funds from operations $31,968 $26,504 $117,947 $93,614
======= ======= ======== =======
Basic per share data:
Funds from operations $ 0.87 $ 0.73 $ 3.23 $ 2.70
======= ======= ======== =======
Weighted average shares with
operating partnership units
fully converted 36,681 36,433 36,567 34,637
======= ======= ======== =======
Diluted per share data:
Funds from operations $ 0.87 $ 0.72 $ 3.21 $ 2.68
======= ======= ======== =======
Weighted average shares and
potential dilutive common
shares with operating
partnership units fully
converted 36,772 36,735 36,755 34,898
======= ======= ======== =======
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