CBL Properties Reports Results for First Quarter 2021
CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- CBL Properties (OTCMKTS: CBLAQ) announced results for the first quarter ended March 31, 2021. A description of each supplemental non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is located at the end of this news release.
|
|
Three Months Ended
|
|
|||||||||
|
|
2021 |
|
|
2020 |
|
|
% |
|
|||
Net loss attributable to common shareholders per diluted share |
|
$ |
(0.14 |
) |
|
$ |
(0.75 |
) |
|
|
81.3 |
% |
Funds from Operations ("FFO") per diluted share |
|
$ |
0.45 |
|
|
$ |
0.25 |
|
|
|
80.0 |
% |
FFO, as adjusted, per diluted share (1) |
|
$ |
0.34 |
|
|
$ |
0.26 |
|
|
|
30.8 |
% |
(1) |
For a reconciliation of FFO to FFO, as adjusted, for the periods presented, please refer to the footnotes to the Company’s reconciliation of net loss attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 7 of this news release. |
KEY TAKEAWAYS:
- FFO, as adjusted, per diluted share, was $0.34 for the first quarter 2021, compared with $0.26 per share for the first quarter 2020. The increase in FFO, as adjusted, per diluted share, as compared with the prior year period is principally a result of the decline in net interest expense of $0.11 per share during the quarter, primarily due to the post-petition interest expense payments that are not required to be made on the senior unsecured notes and secured credit facility subsequent to the Company’s bankruptcy filing on November 1, 2020.
- Other major variances in the first quarter 2021 FFO, as adjusted, per diluted share, compared with the prior year period included $0.13 per share of lower property NOI, which included $0.04 per share related to the estimate for uncollectable revenues, rent abatements and write-offs for past due rents related to tenants that are in bankruptcy or struggling financially. G&A expense during the first quarter 2021 was approximately $0.03 lower, due to cost saving initiatives put in place earlier in 2020.
- Sales for the first quarter 2021 increased 12.5% as compared with the first quarter 2019.
- Total Portfolio same-center NOI declined 17.2% for the three months ended March 31, 2021.
- Portfolio occupancy as of March 31, 2021, was 85.4%, representing a 410-basis point decline compared with 89.5% as of March 31, 2020. Same-center mall occupancy was 83.2% as of March 31, 2021, representing a 480-basis point decline compared with 88.0% as of March 31, 2020. An estimated 390-basis points of the decline in total mall portfolio occupancy was due to store closures related to tenants in bankruptcy.
“The strong rebound in the economy is benefiting our properties, with first quarter sales across the CBL portfolio gaining significantly over sales for the first quarter 2019,” said Stephen Lebovitz, Chief Executive Officer. “Customer traffic is returning to pre-pandemic levels and spending levels were certainly helped by stimulus checks and tax refunds. Leasing activity is picking up as sales and traffic levels improve. Rent collections have increased to 89% of gross rents and accounts receivable are decreasing as well.
“We will celebrate two major non-retail openings in our portfolio this quarter with the HCA medical office building opening at Pearland Town Center in Houston and a 135-room Aloft hotel opening at Hamilton Place in Chattanooga. Similarly, we have a deep opportunity set across our portfolio to create value and density at our existing centers by redeveloping former anchor buildings and utilizing parking lots and unimproved land. This quarter we will start construction on the redevelopment of a former department store parcel at Kirkwood Mall in Bismarck, ND where we will add restaurants and service uses on pads, driving additional traffic and creating value to our portfolio.
“We are also making major progress on our in-court restructuring, filing the Amended Plan and related disclosure statement in mid-April. Through this plan, we will not only provide our company with a more flexible balance sheet and improved cash flow, but importantly it offers all stakeholders, including both common and preferred shareholders, a favorable recovery. The court process has not slowed down the rebound in our business, and we are working diligently towards our planned emergence later this year. We are excited for the fresh start this will mark and for CBL’s bright future.”
FINANCIAL RESULTS
Net loss attributable to common shareholders for the three months ended March 31, 2021 was $26.8 million, or a loss of $0.14 per diluted share, compared with net loss of $133.9 million, or a loss of $0.75 per diluted share, for the three months ended March 31, 2020. Net loss for the first quarter 2021 was impacted by the deconsolidation of Park Plaza and Asheville Mall, which resulted in a $55.1 million gain on deconsolidation. Net loss for the first quarter 2021 was also impacted by an aggregate $22.9 million in reorganization items and a $57.2 million loss on impairment of real estate to write down the carrying value of Old Hickory Mall, Stroud Mall and Eastland Mall to their estimated fair values. This compares to a $133.6 million loss on impairment of real estate included in net loss for the first quarter 2020.
FFO, as adjusted, allocable to common shareholders, for the three months ended March 31, 2021, was $66.9 million, or $0.34 per diluted share, compared with $45.9 million, or $0.26 per diluted share, for the three months ended March 31, 2020. FFO, as adjusted allocable to the Operating Partnership common unitholders, for the three months ended March 31, 2021, was $68.7 million compared with $51.6 million for the three months ended March 31, 2020.
Percentage change in same-center Net Operating Income (“NOI”) (1):
|
|
Three Months Ended
|
|
|
|
|
2021 |
|
|
Portfolio same-center NOI |
|
|
(17.2 |
)% |
Mall same-center NOI |
|
|
(18.3 |
)% |
(1) |
CBL’s definition of same-center NOI excludes the impact of lease termination fees and certain non-cash items such as straight-line rents and reimbursements, write-offs of landlord inducements and net amortization of acquired above and below market leases. |
Major variances impacting same-center NOI for the three months ended March 31, 2021, include:
- Same-center NOI declined $20.8 million, due to a $24.1 million decrease in revenues offset by a $3.3 million decline in operating expenses.
- Rental revenues declined $23.7 million, including a $17.7 million decline in minimum and other rents. Rental revenues also include a $7.1 million decline in tenant reimbursements (net of any abatements), partially offset by a $1.1 million improvement in percentage rents. Rental revenues for the three months ended March 31, 2021, included a total of $10.7 million related to uncollectable revenues and abatements compared with a total of $2.7 million in the prior year period.
- Property operating expenses declined $2.8 million compared with the prior year. Maintenance and repair expenses were flat. The improvement in property operating expense is primarily due to the benefit of the Company’s comprehensive programs to reduce operating expenses that were put in place in April 2020 to mitigate the impact of the COVID-19 pandemic. Real estate tax expenses declined by $0.9 million.
COVID-19 RENT COLLECTION UPDATE
The Company has collected approximately 88% of related gross rents for the period April 2020 through April 2021. As of May 2021, CBL had deferred approximately $38.5 million in rents and had collected approximately 89% of deferred rents billed to-date.
LIQUIDITY
As of March 31, 2021, on a consolidated basis, the company had $317.4 million available in unrestricted cash and marketable securities.
PORTFOLIO OPERATIONAL RESULTS
Occupancy(1):
|
|
As of March 31, |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Total portfolio |
|
|
85.4 |
% |
|
|
89.5 |
% |
Malls: |
|
|
|
|
|
|
|
|
Total Mall portfolio |
|
|
83.2 |
% |
|
|
87.8 |
% |
Same-center Malls |
|
|
83.2 |
% |
|
|
88.0 |
% |
Stabilized Malls |
|
|
83.2 |
% |
|
|
88.0 |
% |
Associated centers |
|
|
91.0 |
% |
|
|
93.2 |
% |
Community centers |
|
|
93.2 |
% |
|
|
95.8 |
% |
(1) |
Occupancy for malls represents percentage of mall store gross leasable area under 20,000 square feet occupied. Occupancy for associated and community centers represents percentage of gross leasable area occupied. |
New and Renewal Leasing Activity of Same Small Shop Space Less Than 10,000 Square Feet:
% Change in Average Gross Rent Per Square Foot: |
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
2021 |
|
|
Stabilized Malls |
|
|
(22.3 |
)% |
New leases |
|
|
(25.3 |
)% |
Renewal leases |
|
|
(21.9 |
)% |
Same-Center Sales Per Square Foot for Mall Tenants 10,000 Square Feet or Less:
Sales for the first quarter 2021 increased 12.5% as compared with the first quarter 2019, with 48 out of CBL’s 56 reporting malls demonstrating an increase over the comparable period. Same-center sales per square foot for the two months ended February 28, 2021, declined 3.0% as compared with the same periods in 2020. Due to the temporary mall and store closures that occurred in 2020, the majority of CBL’s tenants did not report sales for the full reporting period. As a result, CBL is not able to provide a complete measure of sales for the trailing twelve-month period.
FINANCING ACTIVITY AND LENDER DISCUSSIONS
The Company anticipates cooperating with conveyance or foreclosure proceedings for Park Plaza in Little Rock, AR ($76.8 million), EastGate Mall in Cincinnati, OH ($30.9 million) and Asheville Mall in Asheville, NC ($62.1 million). Park Plaza and Asheville Mall were deconsolidated during the first quarter 2021. CBL no longer controls either property following their transfer to receivership. EastGate Mall is expected to be transferred into receivership imminently.
RESTRUCTURING UPDATE
The terms of the Amended RSA, the Amended Chapter 11 Plan and related Disclosure Statement were filed on Form 8-K with the SEC on April 16, 2021, and are available in the Invest – SEC Filings section of cblproperties.com. The latest information on CBL’s restructuring, including news and frequently asked questions, can be found at cblproperties.com/restructuring.
DISPOSITIONS
CBL completed the sale of one unimproved outparcel, generating gross proceeds of $5.5 million during the quarter.
DEVELOPMENT AND LEASING PROGRESS
During the second quarter, CBL will celebrate the opening of a new 135-key Aloft hotel at Hamilton Place in Chattanooga, TN, and the HCA medical office building at Pearland Town Center in Houston, TX. Later in the year, Hollywood Casino at York Galleria in York, PA will hold its grand opening as well as Hobby Lobby at West Towne Mall in Madison, WI, and Rooms to Go at Cross Creek in Fayetteville, NC. Additional offerings, including new restaurants, fitness, hotel and other uses are planned or under negotiation and will be announced as details are finalized.
Detailed project information is available in CBL’s Financial Supplement for Q1 2021, which can be found in the Invest – Financial Reports section of CBL’s website at cblproperties.com.
2021 GUIDANCE
CBL is not providing guidance for 2021 anticipated net income and FFO per share at this time.
ABOUT CBL PROPERTIES
Headquartered in Chattanooga, TN, CBL Properties owns and manages a national portfolio of market-dominant properties located in dynamic and growing communities. CBL’s portfolio is comprised of 104 properties totaling 63.8 million square feet across 24 states, including 63 high-quality enclosed, outlet and open-air retail centers and six properties managed for third parties. CBL seeks to continuously strengthen its company and portfolio through active management, aggressive leasing and profitable reinvestment in its properties. For more information visit cblproperties.com.
NON-GAAP FINANCIAL MEASURES
Funds From Operations
FFO is a widely used non-GAAP measure of the operating performance of real estate companies that supplements net income (loss) determined in accordance with GAAP. The National Association of Real Estate Investment Trusts ("NAREIT") defines FFO as net income (loss) (computed in accordance with GAAP) excluding gains or losses on sales of depreciable operating properties and impairment losses of depreciable properties, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests. Adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests are calculated on the same basis. We define FFO as defined above by NAREIT less dividends on preferred stock of the Company or distributions on preferred units of the Operating Partnership, as applicable. The Company’s method of calculating FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.
The Company believes that FFO provides an additional indicator of the operating performance of its properties without giving effect to real estate depreciation and amortization, which assumes the value of real estate assets declines predictably over time. Since values of well-maintained real estate assets have historically risen with market conditions, the Company believes that FFO enhances investors’ understanding of its operating performance. The use of FFO as an indicator of financial performance is influenced not only by the operations of the Company’s properties and interest rates, but also by its capital structure.
The Company presents both FFO allocable to Operating Partnership common unitholders and FFO allocable to common shareholders, as it believes that both are useful performance measures. The Company believes FFO allocable to Operating Partnership common unitholders is a useful performance measure since it conducts substantially all of its business through its Operating Partnership and, therefore, it reflects the performance of the properties in absolute terms regardless of the ratio of ownership interests of the Company’s common shareholders and the noncontrolling interest in the Operating Partnership. The Company believes FFO allocable to its common shareholders is a useful performance measure because it is the performance measure that is most directly comparable to net income (loss) attributable to its common shareholders.
In the reconciliation of net income (loss) attributable to the Company’s common shareholders to FFO allocable to Operating Partnership common unitholders, located in this earnings release, the Company makes an adjustment to add back noncontrolling interest in income (loss) of its Operating Partnership in order to arrive at FFO of the Operating Partnership common unitholders. The Company then applies a percentage to FFO of the Operating Partnership common unitholders to arrive at FFO allocable to its common shareholders. The percentage is computed by taking the weighted-average number of common shares outstanding for the period and dividing it by the sum of the weighted-average number of common shares and the weighted-average number of Operating Partnership units held by noncontrolling interests during the period.
FFO does not represent cash flows from operations as defined by GAAP, is not necessarily indicative of cash available to fund all cash flow needs and should not be considered as an alternative to net income (loss) for purposes of evaluating the Company’s operating performance or to cash flow as a measure of liquidity.
The Company believes that it is important to identify the impact of certain significant items on its FFO measures for a reader to have a complete understanding of the Company’s results of operations. Therefore, the Company has also presented adjusted FFO measures excluding these items from the applicable periods. Please refer to the reconciliation of net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 7 of this news release for a description of these adjustments.
Same-center Net Operating Income
NOI is a supplemental non-GAAP measure of the operating performance of the Company’s shopping centers and other properties. The Company defines NOI as property operating revenues (rental revenues, tenant reimbursements and other income) less property operating expenses (property operating, real estate taxes and maintenance and repairs).
The Company computes NOI based on the Operating Partnership’s pro rata share of both consolidated and unconsolidated properties. The Company believes that presenting NOI and same-center NOI (described below) based on its Operating Partnership’s pro rata share of both consolidated and unconsolidated properties is useful since the Company conducts substantially all of its business through its Operating Partnership and, therefore, it reflects the performance of the properties in absolute terms regardless of the ratio of ownership interests of the Company’s common shareholders and the noncontrolling interest in the Operating Partnership. The Company's definition of NOI may be different than that used by other companies and, accordingly, the Company's calculation of NOI may not be comparable to that of other companies.
Since NOI includes only those revenues and expenses related to the operations of the Company’s shopping center properties, the Company believes that same-center NOI provides a measure that reflects trends in occupancy rates, rental rates, sales at the malls and operating costs and the impact of those trends on the Company’s results of operations. The Company’s calculation of same-center NOI excludes lease termination income, straight-line rent adjustments, amortization of above and below market lease intangibles and write-off of landlord inducement assets in order to enhance the comparability of results from one period to another. A reconciliation of same-center NOI to net income is located at the end of this earnings release.
Pro Rata Share of Debt
The Company presents debt based on its pro rata ownership share (including the Company’s pro rata share of unconsolidated affiliates and excluding noncontrolling interests’ share of consolidated properties) because it believes this provides investors a clearer understanding of the Company’s total debt obligations which affect the Company’s liquidity. A reconciliation of the Company’s pro rata share of debt to the amount of debt on the Company’s condensed consolidated balance sheet is located at the end of this earnings release.
Information included herein contains “forward-looking statements” within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company’s various filings with the Securities and Exchange Commission, including without limitation the Company’s Annual Report on Form 10-K, and the “Management's Discussion and Analysis of Financial Condition and Results of Operations” included therein, for a discussion of such risks and uncertainties.
CBL & Associates Properties, Inc. Supplemental Financial and Operating Information For the Three Months Ended March 31, 2021 and 2020
Consolidated Statements of Operations (Unaudited; in thousands, except per share amounts) |
||||||||
|
|
Three Months Ended
|
|
|||||
|
|
2021 |
|
|
2020 |
|
||
REVENUES: |
|
|
|
|
|
|
|
|
Rental revenues |
|
$ |
128,175 |
|
|
$ |
161,173 |
|
Management, development and leasing fees |
|
|
1,659 |
|
|
|
2,092 |
|
Other |
|
|
3,350 |
|
|
|
4,309 |
|
Total revenues |
|
|
133,184 |
|
|
|
167,574 |
|
EXPENSES: |
|
|
|
|
|
|
|
|
Property operating |
|
|
(21,802 |
) |
|
|
(25,709 |
) |
Depreciation and amortization |
|
|
(48,112 |
) |
|
|
(55,902 |
) |
Real estate taxes |
|
|
(16,551 |
) |
|
|
(18,448 |
) |
Maintenance and repairs |
|
|
(10,781 |
) |
|
|
(11,208 |
) |
General and administrative |
|
|
(12,612 |
) |
|
|
(17,836 |
) |
Loss on impairment |
|
|
(57,182 |
) |
|
|
(133,644 |
) |
Litigation settlement |
|
|
858 |
|
|
|
— |
|
Other |
|
|
— |
|
|
|
(158 |
) |
Total expenses |
|
|
(166,182 |
) |
|
|
(262,905 |
) |
OTHER INCOME (EXPENSES): |
|
|
|
|
|
|
|
|
Interest and other income |
|
|
776 |
|
|
|
2,397 |
|
Interest expense (unrecognized contractual interest expense was $44,764 for the three months ended March 31, 2021) |
|
|
(24,130 |
) |
|
|
(46,992 |
) |
Gain on deconsolidation |
|
|
55,131 |
|
|
|
— |
|
Gain (loss) on sales of real estate assets |
|
|
(299 |
) |
|
|
140 |
|
Reorganization items |
|
|
(22,933 |
) |
|
|
— |
|
Income tax provision |
|
|
(751 |
) |
|
|
(526 |
) |
Equity in earnings (losses) of unconsolidated affiliates |
|
|
(3,076 |
) |
|
|
1,018 |
|
Total other income (expenses) |
|
|
4,718 |
|
|
|
(43,963 |
) |
Net loss |
|
|
(28,280 |
) |
|
|
(139,294 |
) |
Net loss attributable to noncontrolling interests in: |
|
|
|
|
|
|
|
|
Operating Partnership |
|
|
698 |
|
|
|
16,414 |
|
Other consolidated subsidiaries |
|
|
819 |
|
|
|
207 |
|
Net loss attributable to the Company |
|
|
(26,763 |
) |
|
|
(122,673 |
) |
Preferred dividends undeclared |
|
|
— |
|
|
|
(11,223 |
) |
Net loss attributable to common shareholders |
|
$ |
(26,763 |
) |
|
$ |
(133,896 |
) |
Basic and diluted per share data attributable to common shareholders: |
|
|
|
|
|
|
|
|
Net loss attributable to common shareholders |
|
$ |
(0.14 |
) |
|
$ |
(0.75 |
) |
Weighted-average common and potential dilutive common shares outstanding |
|
|
196,509 |
|
|
|
179,133 |
|
CBL & Associates Properties, Inc. Supplemental Financial and Operating Information For the Three Months Ended March 31, 2021 and 2020
The Company's reconciliation of net loss attributable to common shareholders to FFO allocable to Operating Partnership common unitholders is as follows: (in thousands, except per share data) |
||||||||
|
|
Three Months Ended
|
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Net loss attributable to common shareholders |
|
$ |
(26,763 |
) |
|
$ |
(133,896 |
) |
Noncontrolling interest in loss of Operating Partnership |
|
|
(698 |
) |
|
|
(16,414 |
) |
Depreciation and amortization expense of: |
|
|
|
|
|
|
|
|
Consolidated properties |
|
|
48,112 |
|
|
|
55,902 |
|
Unconsolidated affiliates |
|
|
13,530 |
|
|
|
13,510 |
|
Non-real estate assets |
|
|
(541 |
) |
|
|
(917 |
) |
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries |
|
|
(581 |
) |
|
|
(923 |
) |
Loss on impairment |
|
|
57,182 |
|
|
|
133,644 |
|
Loss on depreciable property |
|
|
— |
|
|
|
25 |
|
FFO allocable to Operating Partnership common unitholders |
|
|
90,241 |
|
|
|
50,931 |
|
Litigation settlement (1) |
|
|
(858 |
) |
|
|
— |
|
Non-cash default interest expense (2) |
|
|
11,470 |
|
|
|
690 |
|
Gain on deconsolidation (3) |
|
|
(55,131 |
) |
|
|
— |
|
Reorganization items (4) |
|
|
22,933 |
|
|
|
— |
|
FFO allocable to Operating Partnership common unitholders, as adjusted |
|
$ |
68,655 |
|
|
$ |
51,621 |
|
FFO per diluted share |
|
$ |
0.45 |
|
|
$ |
0.25 |
|
FFO, as adjusted, per diluted share |
|
$ |
0.34 |
|
|
$ |
0.26 |
|
Weighted-average common and potential dilutive common shares outstanding with Operating Partnership units fully converted |
|
|
201,627 |
|
|
|
201,258 |
|
(1) |
Represents a credit to litigation settlement expense related to claim amounts that were released pursuant to the terms of the settlement agreement related to the settlement of a class action lawsuit. |
(2) |
The three months ended March 31, 2021 includes default interest expense related to loans secured by properties that were in default prior to the Company filing voluntary petitions under Chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas, as well as loans secured by properties that are in default due to the Company filing voluntary petitions under Chapter 11 of title 11 of the United States Code. The three months ended March 31, 2020 includes default interest expense related to Greenbrier Mall and Hickory Point Mall. |
(3) |
During the three months ended March 31, 2021, the Company deconsolidated Asheville Mall and Park Plaza due to a loss of control when the properties were placed into receivership in connection with the foreclosure process. |
(4) |
Represents costs incurred subsequent to the Company filing voluntary petitions under Chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas associated with the Company’s reorganization efforts, which consists of professional and legal fees. |
CBL & Associates Properties, Inc. Supplemental Financial and Operating Information For the Three Months Ended March 31, 2021 and 2020
The reconciliation of diluted EPS to FFO per diluted share is as follows: |
||||||||
|
|
Three Months Ended
|
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Diluted EPS attributable to common shareholders |
|
$ |
(0.14 |
) |
|
$ |
(0.75 |
) |
Eliminate amounts per share excluded from FFO: |
|
|
|
|
|
|
|
|
Depreciation and amortization expense, including amounts from consolidated properties, unconsolidated affiliates, non-real estate assets and excluding amounts allocated to noncontrolling interests |
|
|
0.30 |
|
|
|
0.34 |
|
Loss on impairment |
|
|
0.29 |
|
|
|
0.66 |
|
FFO per diluted share |
|
$ |
0.45 |
|
|
$ |
0.25 |
|
The reconciliations of FFO allocable to Operating Partnership common unitholders to FFO allocable to common shareholders, including and excluding the adjustments noted above, are as follows: |
||||||||
|
|
Three Months Ended
|
|
|||||
|
|
2021 |
|
|
2020 |
|
||
FFO allocable to Operating Partnership common unitholders |
|
$ |
90,241 |
|
|
$ |
50,931 |
|
Percentage allocable to common shareholders (1) |
|
|
97.46 |
% |
|
|
89.01 |
% |
FFO allocable to common shareholders |
|
$ |
87,949 |
|
|
$ |
45,334 |
|
|
|
|
|
|
|
|
|
|
FFO allocable to Operating Partnership common unitholders, as adjusted |
|
$ |
68,655 |
|
|
$ |
51,621 |
|
Percentage allocable to common shareholders (1) |
|
|
97.46 |
% |
|
|
89.01 |
% |
FFO allocable to common shareholders, as adjusted |
|
$ |
66,911 |
|
|
$ |
45,948 |
|
(1) |
Represents the weighted-average number of common shares outstanding for the period divided by the sum of the weighted-average number of common shares and the weighted-average number of Operating Partnership units outstanding during the period. See the reconciliation of shares and Operating Partnership units outstanding on page 13. |
CBL & Associates Properties, Inc. Supplemental Financial and Operating Information For the Three Months Ended March 31, 2021 and 2020 |
||||||||
|
|
Three Months Ended
|
|
|||||
|
|
2021 |
|
|
2020 |
|
||
SUPPLEMENTAL FFO INFORMATION: |
|
|
|
|
|
|
|
|
Lease termination fees |
|
$ |
1,111 |
|
|
$ |
220 |
|
Per share |
|
$ |
0.01 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Straight-line rental income adjustment |
|
$ |
(3,263 |
) |
|
$ |
892 |
|
Per share |
|
$ |
(0.02 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Gain (loss) on outparcel sales |
|
$ |
(299 |
) |
|
$ |
165 |
|
Per share |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Net amortization of acquired above- and below-market leases |
|
$ |
52 |
|
|
$ |
903 |
|
Per share |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Net amortization of debt premiums and discounts |
|
$ |
— |
|
|
$ |
343 |
|
Per share |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Income tax provision |
|
$ |
(751 |
) |
|
$ |
(526 |
) |
Per share |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Non-cash default interest expense (property-level loans) |
|
$ |
(11,470 |
) |
|
$ |
(690 |
) |
Per share |
|
$ |
(0.06 |
) |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Abandoned projects expense |
|
$ |
— |
|
|
$ |
(158 |
) |
Per share |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Interest capitalized |
|
$ |
19 |
|
|
$ |
726 |
|
Per share |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Litigation settlement |
|
$ |
858 |
|
|
$ |
— |
|
Per share |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Estimate of uncollectable revenues |
|
$ |
(6,486 |
) |
|
$ |
(3,778 |
) |
Per share |
|
$ |
(0.03 |
) |
|
$ |
(0.02 |
) |
|
|
|
|
|
|
|
|
|
|
|
As of March 31, |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Straight-line rent receivable |
|
$ |
48,528 |
|
|
$ |
55,845 |
|
CBL & Associates Properties, Inc. Supplemental Financial and Operating Information For the Three Months Ended March 31, 2021 and 2020
Same-center Net Operating Income (Dollars in thousands) |
||||||||
|
|
Three Months Ended
|
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Net loss |
|
$ |
(28,280 |
) |
|
$ |
(139,294 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
48,112 |
|
|
|
55,902 |
|
Depreciation and amortization from unconsolidated affiliates |
|
|
13,530 |
|
|
|
13,510 |
|
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries |
|
|
(581 |
) |
|
|
(923 |
) |
Interest expense |
|
|
24,130 |
|
|
|
46,992 |
|
Interest expense from unconsolidated affiliates |
|
|
9,849 |
|
|
|
7,676 |
|
Noncontrolling interests' share of interest expense in other consolidated subsidiaries |
|
|
(967 |
) |
|
|
(582 |
) |
Abandoned projects expense |
|
|
— |
|
|
|
158 |
|
(Gain) loss on sales of real estate assets |
|
|
299 |
|
|
|
(140 |
) |
Gain on deconsolidation |
|
|
(55,131 |
) |
|
|
— |
|
Loss on impairment |
|
|
57,182 |
|
|
|
133,644 |
|
Litigation settlement |
|
|
(858 |
) |
|
|
— |
|
Reorganization items |
|
|
22,933 |
|
|
|
— |
|
Income tax provision |
|
|
751 |
|
|
|
526 |
|
Lease termination fees |
|
|
(1,111 |
) |
|
|
(220 |
) |
Straight-line rent and above- and below-market lease amortization |
|
|
3,211 |
|
|
|
(1,795 |
) |
Net loss attributable to noncontrolling interests in other consolidated subsidiaries |
|
|
819 |
|
|
|
207 |
|
General and administrative expenses |
|
|
12,612 |
|
|
|
17,836 |
|
Management fees and non-property level revenues |
|
|
(2,580 |
) |
|
|
(4,177 |
) |
Operating Partnership's share of property NOI |
|
|
103,920 |
|
|
|
129,320 |
|
Non-comparable NOI |
|
|
(3,896 |
) |
|
|
(8,542 |
) |
Total same-center NOI (1) |
|
$ |
100,024 |
|
|
$ |
120,778 |
|
Total same-center NOI percentage change |
|
|
(17.2 |
)% |
|
|
|
|
CBL & Associates Properties, Inc. Supplemental Financial and Operating Information For the Three Months Ended March 31, 2021 and 2020
Same-center Net Operating Income (Continued) |
||||||||
|
|
Three Months Ended March 31, |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Malls |
|
$ |
87,039 |
|
|
$ |
106,600 |
|
Associated centers |
|
|
6,524 |
|
|
|
7,460 |
|
Community centers |
|
|
5,311 |
|
|
|
5,596 |
|
Offices and other |
|
|
1,150 |
|
|
|
1,122 |
|
Total same-center NOI (1) |
|
$ |
100,024 |
|
|
$ |
120,778 |
|
Percentage Change: |
|
|
|
|
|
|
|
|
Malls |
|
|
(18.3 |
)% |
|
|
|
|
Associated centers |
|
|
(12.5 |
)% |
|
|
|
|
Community centers |
|
|
(5.1 |
)% |
|
|
|
|
Offices and other |
|
|
2.5 |
% |
|
|
|
|
Total same-center NOI (1) |
|
|
(17.2 |
)% |
|
|
|
|
(1) |
CBL defines NOI as property operating revenues (rental revenues, tenant reimbursements and other income), less property operating expenses (property operating, real estate taxes and maintenance and repairs). Same-center NOI excludes lease termination income, straight-line rent adjustments, amortization of above and below market lease intangibles and write-offs of landlord inducement assets. We include a property in our same-center pool when we own all or a portion of the property as of March 31, 2021, and we owned it and it was in operation for both the entire preceding calendar year and the current year-to-date reporting period ending March 31, 2021. New properties are excluded from same-center NOI, until they meet these criteria. Properties excluded from the same-center pool that would otherwise meet these criteria are properties which are under major redevelopment or being considered for repositioning, where we intend to renegotiate the terms of the debt secured by the related property or return the property to the lender. |
CBL & Associates Properties, Inc. Supplemental Financial and Operating Information As of March 31, 2021 and 2020
Company's Share of Consolidated and Unconsolidated Debt (Dollars in thousands) |
||||||||||||||||||||
|
|
As of March 31, 2021 |
|
|||||||||||||||||
|
|
Fixed Rate |
|
|
Variable
|
|
|
Total per
|
|
|
Unamortized
|
|
|
Total |
|
|||||
Consolidated debt (2) |
|
$ |
2,347,553 |
|
|
$ |
1,182,287 |
|
|
$ |
3,529,840 |
|
|
$ |
(3,194 |
) |
|
$ |
3,526,646 |
|
Noncontrolling interests' share of consolidated debt |
|
|
(29,922 |
) |
|
|
— |
|
|
|
(29,922 |
) |
|
|
251 |
|
|
|
(29,671 |
) |
Company's share of unconsolidated affiliates' debt |
|
|
620,896 |
|
|
|
123,309 |
|
|
|
744,205 |
|
|
|
(2,865 |
) |
|
|
741,340 |
|
Other debt (3) |
|
|
138,926 |
|
|
|
— |
|
|
|
138,926 |
|
|
|
— |
|
|
|
138,926 |
|
Company's share of consolidated, unconsolidated and other debt |
|
$ |
3,077,453 |
$ |
1,305,596 |
$ |
4,383,049 |
$ |
(5,808 |
) |
$ |
4,377,241 |
||||||||
Weighted-average interest rate |
|
|
5.04 |
% |
|
|
8.62 |
% |
(4) |
|
6.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2020 |
|
|||||||||||||||||
|
|
Fixed Rate |
|
|
Variable
|
|
|
Total per
|
|
|
Unamortized
|
|
|
Total |
|
|||||
Consolidated debt |
|
$ |
2,601,849 |
|
|
$ |
1,203,075 |
|
|
$ |
3,804,924 |
|
|
$ |
(15,232 |
) |
|
$ |
3,789,692 |
|
Noncontrolling interests' share of consolidated debt |
|
|
(30,505 |
) |
|
|
— |
|
|
|
(30,505 |
) |
|
|
304 |
|
|
|
(30,201 |
) |
Company's share of unconsolidated affiliates' debt |
|
|
629,306 |
|
|
|
111,936 |
|
|
|
741,242 |
|
|
|
(2,774 |
) |
|
|
738,468 |
|
Company's share of consolidated and unconsolidated debt |
|
$ |
3,200,650 |
|
|
$ |
1,315,011 |
|
|
$ |
4,515,661 |
|
|
$ |
(17,702 |
) |
|
$ |
4,497,959 |
|
Weighted-average interest rate |
|
|
5.06 |
% |
|
|
3.87 |
% |
|
|
4.72 |
% |
|
|
|
|
|
|
|
|
(1) |
Unamortized deferred financing costs of $2,841 and $2,005 for certain consolidated and the Company’s share of unconsolidated property-level, non-recourse mortgage loans, respectively, may be required to be written off in the event that a waiver or restructuring of terms cannot be negotiated and the debt is either redeemed or otherwise extinguished. |
(2) |
Includes $2,489,676 included in liabilities subject to compromise in the accompanying consolidated balance sheets as of March 31, 2021. |
(3) |
During the three months ended March 31, 2021, the Company deconsolidated Asheville Mall and Park Plaza due to a loss of control when the properties were placed into receivership in connection with the foreclosure process. |
(4) |
Includes the 9.50% post default rate on our secured credit facility. |
Total Market Capitalization as of March 31, 2021 (In thousands, except stock price) |
||||||||
|
|
Shares
|
|
|
Stock
|
|
||
Common stock and operating partnership units |
|
|
201,577 |
|
|
$ |
0.13 |
|
7.375% Series D Cumulative Redeemable Preferred Stock |
|
|
1,815 |
|
|
|
250.00 |
|
6.625% Series E Cumulative Redeemable Preferred Stock |
|
|
690 |
|
|
|
250.00 |
|
(1) |
Stock price for common stock and Operating Partnership units equals the closing price of the common stock on March 31, 2021. 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
|
|
|||||
|
Basic |
|
|
Diluted |
|
||
2021: |
|
|
|
|
|
|
|
Weighted-average shares - EPS |
|
196,509 |
|
|
|
196,509 |
|
Weighted-average Operating Partnership units |
|
5,118 |
|
|
|
5,118 |
|
Weighted-average shares - FFO |
|
201,627 |
|
|
|
201,627 |
|
2020: |
|
|
|
|
|
|
|
Weighted-average shares - EPS |
|
179,133 |
|
|
|
179,133 |
|
Weighted-average Operating Partnership units |
|
22,125 |
|
|
|
22,125 |
|
Weighted-average shares - FFO |
|
201,258 |
|
|
|
201,258 |
|
CBL & Associates Properties, Inc. Supplemental Financial and Operating Information As of March 31, 2021 and December 31, 2020
Consolidated Balance Sheets (Unaudited; in thousands, except share data) |
||||||||
|
|
As of |
|
|||||
|
|
March 31,
|
|
|
December 31,
|
|
||
ASSETS |
|
|
|
|
|
|
|
|
Real estate assets: |
|
|
|
|
|
|
|
|
Land |
|
$ |
662,045 |
|
|
$ |
695,711 |
|
Buildings and improvements |
|
|
4,966,381 |
|
|
|
5,135,074 |
|
|
|
|
5,628,426 |
|
|
|
5,830,785 |
|
Accumulated depreciation |
|
|
(2,229,137 |
) |
|
|
(2,241,421 |
) |
|
|
|
3,399,289 |
|
|
|
3,589,364 |
|
Developments in progress |
|
|
31,284 |
|
|
|
28,327 |
|
Net investment in real estate assets |
|
|
3,430,573 |
|
|
|
3,617,691 |
|
Cash and cash equivalents |
|
|
84,655 |
|
|
|
61,781 |
|
Available-for-sale securities - at fair value (amortized cost of $232,774 and $233,053 as of March 31, 2021 and December 31, 2020, respectively) |
|
|
232,795 |
|
|
|
233,071 |
|
Receivables: |
|
|
|
|
|
|
|
|
Tenant |
|
|
80,590 |
|
|
|
103,655 |
|
Other |
|
|
8,026 |
|
|
|
5,958 |
|
Mortgage and other notes receivable |
|
|
2,113 |
|
|
|
2,337 |
|
Investments in unconsolidated affiliates |
|
|
271,764 |
|
|
|
279,355 |
|
Intangible lease assets and other assets |
|
|
169,671 |
|
|
|
139,892 |
|
|
|
$ |
4,280,187 |
|
|
$ |
4,443,740 |
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY |
|
|
|
|
|
|
|
|
Mortgage and other indebtedness, net |
|
$ |
1,036,970 |
|
|
$ |
1,184,831 |
|
Accounts payable and accrued liabilities |
|
|
185,723 |
|
|
|
173,387 |
|
Total liabilities not subject to compromise |
|
|
1,222,693 |
|
|
|
1,358,218 |
|
|
|
|
|
|
|
|
|
|
Liabilities subject to compromise |
|
|
2,551,354 |
|
|
|
2,551,490 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
Redeemable noncontrolling interests |
|
|
(478 |
) |
|
|
(265 |
) |
Shareholders' equity: |
|
|
|
|
|
|
|
|
Preferred stock, $.01 par value, 15,000,000 shares authorized: |
|
|
|
|
|
|
|
|
7.375% Series D Cumulative Redeemable Preferred Stock, 1,815,000 shares outstanding |
|
|
18 |
|
|
|
18 |
|
6.625% Series E Cumulative Redeemable Preferred Stock, 690,000 shares outstanding |
|
|
7 |
|
|
|
7 |
|
Common stock, $.01 par value, 350,000,000 shares authorized, 196,458,778 and 196,569,917 issued and outstanding in 2021 and 2020, respectively |
|
|
1,965 |
|
|
|
1,966 |
|
Additional paid-in capital |
|
|
1,986,666 |
|
|
|
1,986,269 |
|
Accumulated other comprehensive income |
|
|
21 |
|
|
|
18 |
|
Dividends in excess of cumulative earnings |
|
|
(1,483,198 |
) |
|
|
(1,456,435 |
) |
Total shareholders' equity |
|
|
505,479 |
|
|
|
531,843 |
|
Noncontrolling interests |
|
|
1,139 |
|
|
|
2,454 |
|
Total equity |
|
|
506,618 |
|
|
|
534,297 |
|
|
|
$ |
4,280,187 |
|
|
$ |
4,443,740 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210518005305/en/
Katie Reinsmidt, Executive Vice President - Chief Investment Officer, 423.490.8301, [email protected]
Source: CBL Properties
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