CBL Properties (NYSE: CBL) announced results for the first quarter ended March 31, 2018. 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
March 31,
2018   2017   %
Net income (loss) attributable to common shareholders per diluted share $ (0.06 ) $ 0.13   (146.2 )%
Funds from Operations ("FFO") per diluted share $ 0.42   $ 0.53   (20.8 )%
FFO, as adjusted, per diluted share (1) $ 0.42   $ 0.52   (19.2 )%

(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 income (loss) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 9 of this news release.

 

KEY TAKEAWAYS:

  • Same-center sales per square foot for the stabilized mall portfolio during the first quarter increased 4.1% compared with the prior-year quarter. For the twelve months ended March 31, 2018, same-center sales were $376 per square foot.
  • FFO per diluted share, as adjusted, was $0.42 for the first quarter 2018, compared with $0.52 per share for the first quarter 2017. First quarter 2018 was impacted by approximately $0.01 per share of dilution from asset sales completed in 2017, $0.05 per share of lower property NOI, lower outparcel sales of $0.02 per share, $0.03 per share higher corporate interest expense offset by $0.04 lower property level interest expense and $0.01 higher G&A expense primarily related to lower capitalized overhead, a one-time favorable accrual adjustment in the prior-year period as well as comparatively higher legal expense.
  • Total Portfolio Same-center NOI declined 6.8% for the first quarter 2018.
  • Portfolio occupancy was 91.1% as of March 31, 2018, compared with 92.1% as of March 31, 2017. Same-center mall occupancy was 89.5% as of March 31, 2018 compared with 90.4% as of March 31, 2017.
  • CBL completed gross asset sales of $12.3 million during the first quarter and in April entered into a binding contract for the sale of a Tier 3 mall for a gross sales price of $18.0 million.
  • Redevelopment activity is underway at eight properties, including five anchor redevelopments.

“First quarter results were in-line with expectations and, as anticipated, reflect the impact from 2017 and 2018 bankruptcies and rent reductions,” said Stephen Lebovitz, CBL’s president & CEO. “We were encouraged by the solid 4.1% increase in retail sales in our portfolio during the first quarter and reports from a number of brands citing marked improvement in both traffic and sales, which should lead to improved leasing metrics later in the year. Operationally, our focus in 2018 is stabilizing revenues as well as diversifying income by adding more dining, entertainment, value and service users.

“While we are disappointed with the news of Bon-Ton liquidating, we have been proactive by preparing for this outcome. We have identified replacement tenants for the majority of our locations and have several in advanced negotiations, including one lease already executed with a supermarket that will require zero investment by CBL. We are estimating a total investment of $60 - $90 million for the replacement of the Bon-Ton stores in our portfolio over several years. We had already incorporated expected rent loss, including any co-tenancy impact, in our guidance for the year and are on-track to perform within that range.

“Actively managing our balance sheet to maximize liquidity and lengthen maturities is a top priority for us. We are expecting to complete the refinancing of the loan secured by CoolSprings Galleria shortly. We are also holding preliminary discussions to complete early refinancings of our unsecured term loan and line of credit that mature in 2019 and 2020, respectively, which will put us in an even stronger financial position and provide further flexibility to execute our strategies.”

Net loss attributable to common shareholders for the first quarter 2018 was $10.3 million, or $(0.06) per diluted share, compared with net income of $22.9 million, or $0.13 per diluted share, for the first quarter 2017.

FFO allocable to common shareholders, as adjusted, for the first quarter 2018 was $72.2 million, or $0.42 per diluted share, compared with $88.4 million, or $0.52 per diluted share, for the first quarter 2017. FFO allocable to the Operating Partnership common unitholders, as adjusted, for the first quarter 2018 was $83.8 million compared with $103.0 million for the first quarter 2017.

Percentage change in same-center Net Operating Income (“NOI”)(1):

 
    Three Months Ended
March 31, 2018
Portfolio same-center NOI (6.8)%
Mall same-center NOI (7.2)%
 

(1) CBL’s definition of same-center NOI excludes the impact of lease termination fees and certain non-cash items of straight-line rents, write-offs of landlord inducements and net amortization of acquired above and below market leases.

 

Major variances impacting same-center NOI for the quarter ended March 31, 2018, include:

  • Same-center NOI declined $11.2 million, due to a $10.5 million decrease in revenue and a $0.7 million increase in operating expenses.
  • Minimum rents and tenant reimbursements declined $9.5 million during the quarter, primarily related to store closures and rent concessions for tenants in bankruptcy.
  • Percentage rents declined $0.2 million compared with the prior year quarter.
  • Other rents and other income declined $0.8 million.
  • Property operating expenses decreased $1.3 million, maintenance and repair expense increased $1.7 million, and real estate tax expenses increased $0.3 million.
 
 

PORTFOLIO OPERATIONAL RESULTS

Occupancy:

 
  As of March 31,
2018   2017
Portfolio occupancy 91.1% 92.1%
Mall portfolio 89.3% 90.5%
Same-center malls 89.5% 90.4%
Stabilized malls 89.5% 90.5%
Non-stabilized malls (1) 77.0% 92.7%
Associated centers 97.8% 97.7%
Community centers 97.4% 98.2%
 

(1) Represents occupancy for The Outlet Shoppes at Laredo as of March 31, 2018 and The Outlet Shoppes of the Bluegrass as of March 31, 2017.

 
 

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

March 31, 2018

Stabilized Malls (13.9 )%
New leases 0.4 %
Renewal leases (16.0 )%
 
 

Same-Center Sales Per Square Foot for Mall Tenants 10,000 Square Feet or Less:

 
   

Twelve Months Ended

March 31,

        

Three Months

Ended

March 31, 2018

2018     2017 % Change % Change
Stabilized mall same-center sales per square foot $ 376 $ 375 0.3 % 4.1 %
Stabilized mall sales per square foot $ 376 $ 372 1.1 % 4.4 %
 
 

DISPOSITIONS

During the quarter, CBL closed on the sale of Gulf Coast Town Center Phase III in Ft. Myers, FL, for a gross sales price of $9.0 million. CBL also completed the sale of various outparcel locations generating an aggregate $3.3 million in gross proceeds.

CBL has entered into a binding contract for the sale of Janesville Mall in Janesville, WI, for $18.0 million to RockStep Capital. The buyer has posted a significant non-refundable deposit. The disposition is expected to close summer 2018, subject to due diligence and customary closing conditions. CBL recorded an impairment charge of $18.1 million in the first quarter to write down the depreciated carrying value of the mall to its net sales price.

FINANCING ACTIVITY

In January, CBL retired the $37.5 million loan secured by Kirkwood Mall in Bismarck, ND, using availability on its lines of credit. The loan bore an interest rate of 5.75% and was scheduled to mature in April 2018.

DEVELOPMENT

In April, CBL commenced construction on the first phase of redevelopment of the former Sears building at Brookfield Square in Milwaukee, WI. The redevelopment will deliver new dining and entertainment options, including new-to-market entertainment concept, WhirlyBall, and BistroPlex℠ from Marcus Theatres®, which combines dining and moviegoing in every auditorium. Planning is underway for additional phases of the redevelopment, which will include new dining options and other non-retail uses. More details will be announced over the coming months.

Anchor redevelopments completed and underway in 2018 include (complete project list can be found in the financial supplement):

        Prior Tenant         New Tenant
Brookfield Square Sears Marcus Theaters/Whirlyball
Eastland Mall JCPenney H&M, Outback, Planet Fitness
Frontier Mall Sports Authority Planet Fitness
Jefferson Mall Macy's Round 1
York Galleria JCPenney Marshalls
 

OUTLOOK AND GUIDANCE

CBL is maintaining 2018 FFO, as adjusted, guidance in the range of $1.70 - $1.80 per diluted share. Guidance incorporates a full-year budgeted impact of loss in rent related to 2017 tenant bankruptcies, store closures and rent adjustments net of expected new leasing as well as a reserve in the range of $10.0 - $20.0 million (the “Reserve”) for potential future unbudgeted loss in rent from tenant bankruptcies, store closures or lease modifications that may occur in 2018. Based on bankruptcy and leasing activity year-to-date, including the impact of any co-tenancy, CBL expects to utilize $10.0 - $13.0 million of the Reserve.

Detail of assumptions underlying guidance follows:

 
      Low     High
2018 FFO, as adjusted, per share (Includes the Reserve) $1.70 $1.80
2018 Change in Same-Center NOI ("SC NOI") (Includes the Reserve) (6.75)% (5.25)%
Reserve for unbudgeted lost rents included in SC NOI and FFO $20.0 million $10.0 million
Gain on outparcel sales $7.0 million $10.0 million
Estimated 2018 Dividend Per Common Share (1) $0.80 $0.80

(1) Subject to Board approval

 

Reconciliation of GAAP net income to 2018 FFO, as adjusted, per share guidance:

 
      Low     High
Expected diluted earnings per common share $ 0.04 $ 0.13
Adjust to fully converted shares from common shares (0.01 ) (0.01 )
Expected earnings per diluted, fully converted common share 0.03 0.12
Add: depreciation and amortization 1.58 1.58
Less: gain on depreciable property (0.01 ) (0.01 )
Add: loss on impairment 0.09 0.09
Add: noncontrolling interest in earnings of Operating Partnership 0.01   0.02  
Expected FFO, as adjusted, per diluted, fully converted common share $ 1.70   $ 1.80  
 
 
 

INVESTOR CONFERENCE CALL AND WEBCAST

CBL Properties will host a conference call on Friday, April 27, 2018, at 11:00 a.m. ET. To access this interactive teleconference, dial (888) 317-6003 or (412) 317-6061 and enter the confirmation number, 3192915. A replay of the conference call will be available through May 4, 2018, by dialing (877) 344-7529 or (412) 317-0088 and entering the confirmation number, 10117542.

The Company will also provide an online webcast and rebroadcast of its first quarter 2018 earnings release conference call. The live broadcast of the quarterly conference call will be available online at cblproperties.com on Friday, April 27, 2018, beginning at 11:00 a.m. ET. The online replay will follow shortly after the call.

To receive the CBL Properties first quarter earnings release and supplemental information, please visit the Invest section of our website at cblproperties.com or contact Investor Relations at (423) 490-8312.

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 117 properties totaling 73.4 million square feet across 26 states, including 75 high-quality enclosed, outlet and open-air retail centers and 11 properties managed for third parties. CBL continuously strengthens 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 9 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.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)

 
            Three Months Ended
March 31,
2018     2017
REVENUES:
Minimum rents $ 150,361 $ 159,750
Percentage rents 2,043 2,389
Other rents 2,055 3,652
Tenant reimbursements 60,613 67,291
Management, development and leasing fees 2,721 3,452
Other 2,407   1,479  
Total revenues 220,200   238,013  
OPERATING EXPENSES:
Property operating 32,826 34,914
Depreciation and amortization 71,750 71,220
Real estate taxes 21,848 22,083
Maintenance and repairs 13,179 13,352
General and administrative 18,304 16,082
Loss on impairment 18,061 3,263
Other 94   —  
Total operating expenses 176,062   160,914  
Income from operations 44,138 77,099
Interest and other income 213 1,404
Interest expense (53,767 ) (56,201 )
Gain on extinguishment of debt — 4,055
Income tax benefit 645 800
Equity in earnings of unconsolidated affiliates 3,739   5,373  
Income (loss) from continuing operations before gain on sales of real estate assets (5,032 ) 32,530
Gain on sales of real estate assets 4,371   5,988  
Net income (loss) (661 ) 38,518
Net (income) loss attributable to noncontrolling interests in:
Operating Partnership 1,665 (3,690 )
Other consolidated subsidiaries (101 ) (713 )
Net income attributable to the Company 903 34,115
Preferred dividends (11,223 ) (11,223 )
Net income (loss) attributable to common shareholders $ (10,320 ) $ 22,892  
 
Basic and diluted per share data attributable to common shareholders:
Net income (loss) attributable to common shareholders $ (0.06 ) $ 0.13

Weighted-average common and potential dilutive common shares outstanding

171,943 170,989
 
Dividends declared per common share $ 0.200 $ 0.265
 
 
 
 
 
 

The Company’s reconciliation of net income (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
March 31,
2018     2017
Net income (loss) attributable to common shareholders $ (10,320 ) $ 22,892
Noncontrolling interest in income (loss) of Operating Partnership (1,665 ) 3,690
Depreciation and amortization expense of:
Consolidated properties 71,750 71,220
Unconsolidated affiliates 10,401 9,543
Non-real estate assets (921 ) (864 )
Noncontrolling interests' share of depreciation and amortization (2,166 ) (1,979 )
Loss on impairment, net of taxes 18,061 2,067
(Gain) loss on depreciable property (2,236 ) 41  
FFO allocable to Operating Partnership common unitholders 82,904 106,610
Litigation expenses (1) — 43
Nonrecurring professional fees reimbursement (1) — (925 )
Non-cash default interest expense (2) 916 1,307
Gain on extinguishment of debt (3) —   (4,055 )
FFO allocable to Operating Partnership common unitholders, as adjusted $ 83,820   $ 102,980  
 
FFO per diluted share $ 0.42   $ 0.53  
 
FFO, as adjusted, per diluted share $ 0.42   $ 0.52  
 
Weighted-average common and potential dilutive common shares outstanding with Operating Partnership units fully converted 199,694 199,281
 

(1)

  

Litigation expense is included in general and administrative expense in the consolidated statements of operations. Nonrecurring professional fees reimbursement is included in interest and other income in the consolidated statements of operations.

(2)

The three months ended March 31, 2018 includes default interest expense related to Acadiana Mall. The three months ended March 31, 2017 includes default interest expense related to Chesterfield Mall, Wausau Center and Midland Mall.

(3)

The three months ended March 31, 2017 represents gain on extinguishment of debt related to the non-recourse loan secured by Midland Mall, which was conveyed to the lender in January 2017.

 
 
 

The reconciliation of diluted EPS to FFO per diluted share is as follows:

 
  Three Months Ended
March 31,
2018   2017
Diluted EPS attributable to common shareholders $ (0.06 ) $ 0.13
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 0.40 0.39
Loss on impairment, net of taxes 0.09 0.01
Gain on depreciable property   (0.01 )   —  
FFO per diluted share $ 0.42   $ 0.53  
 
 
 

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
March 31,
2018 2017
FFO allocable to Operating Partnership common unitholders $ 82,904 $ 106,610

Percentage allocable to common shareholders (1)

   86.10 %   85.80 %
FFO allocable to common shareholders $ 71,380   $ 91,471  
 
FFO allocable to Operating Partnership common unitholders, as adjusted $ 83,820 $ 102,980
Percentage allocable to common shareholders (1)   86.10 %   85.80 %
FFO allocable to common shareholders, as adjusted $ 72,169   $ 88,357  

(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 15.
 
 
 
 
 
 
SUPPLEMENTAL FFO INFORMATION:
          Three Months Ended
March 31,
2018     2017
Lease termination fees $ 6,261 $ 247
Lease termination fees per share $ 0.03 $ —
 
Straight-line rental income (write-offs) $ (3,633 ) $ 73
Straight-line rental income (write-offs) per share $ (0.02 ) $ —
 
Gains on outparcel sales $ 2,147 $ 5,997
Gains on outparcel sales per share $ 0.01 $ 0.03
 
Net amortization of acquired above- and below-market leases $ 805 $ 1,218
Net amortization of acquired above- and below-market leases per share $ — $ 0.01
 
Net amortization of debt premiums and discounts $ 107 $ 623
Net amortization of debt premiums and discounts per share $ — $ —
 
Income tax benefit $ 645 $ 800
Income tax benefit per share $ — $ —
 
Gain on extinguishment of debt $ — $ 4,055
Gain on extinguishment of debt per share $ — $ 0.02
 
Non-cash default interest expense $ (916 ) $ (1,307 )
Non-cash default interest expense per share $ — $ (0.01 )
 
Abandoned projects expense $ (94 ) $ —
Abandoned projects expense per share $ — $ —
 
Interest capitalized $ 587 $ 839
Interest capitalized per share $ — $ —
 
Litigation expenses $ — $ (43 )
Litigation expenses per share $ — $ —
 
Nonrecurring professional fees reimbursement $ — $ 925
Nonrecurring professional fees reimbursement per share $ — $ —
 
 
 
As of March 31,
2018 2017
Straight-line rent receivable $ 58,244 $ 67,029
 
 
 
Three Months Ended
March 31,
2018 2017
Net income (loss) $ (661 ) $ 38,518
 
Adjustments:
Depreciation and amortization 71,750 71,220
Depreciation and amortization from unconsolidated affiliates 10,401 9,543
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries (2,166 ) (1,979 )
Interest expense 53,767 56,201
Interest expense from unconsolidated affiliates 5,954 6,161
Noncontrolling interests' share of interest expense in other consolidated subsidiaries (1,851 ) (1,706 )
Abandoned projects expense 94 —
Gain on sales of real estate assets (4,371 ) (5,988 )
Loss on sales of real estate assets of unconsolidated affiliates — 35
Gain on extinguishment of debt — (4,055 )
Loss on impairment 18,061 3,263
Income tax benefit (645 ) (800 )
Lease termination fees (6,261 ) (247 )
Straight-line rent and above- and below-market lease amortization 2,828 (1,291 )
Net income attributable to noncontrolling interests in other consolidated subsidiaries (101 ) (713 )
General and administrative expenses 18,304 16,082
Management fees and non-property level revenues   (3,887 )   (5,257 )
Operating Partnership's share of property NOI 161,216 178,987
Non-comparable NOI   (6,420 )   (12,954 )
Total same-center NOI (1) $ 154,796   $ 166,033  
Total same-center NOI percentage change   (6.8 )%
 
 
 
 
 
 

Same-center Net Operating Income
(Continued)

 
                            Three Months Ended
March 31,
2018     2017
Malls $ 138,931 $ 149,705
Associated centers 7,925 8,305
Community centers 6,006 6,188
Offices and other 1,934   1,835  
Total same-center NOI (1) $ 154,796   $ 166,033  
 
Percentage Change:
Malls (7.2)%
Associated centers (4.6)%
Community centers (2.9)%
Offices and other 5.4%
Total same-center NOI (1) (6.8)%
 

(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, 2018, 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, 2018. New properties are excluded from same-center NOI, until they meet this criteria. Properties excluded from the same-center pool that would otherwise meet this criteria are properties which are either under major redevelopment, 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, or minority interest properties in which we own an interest of 25% or less.
 
 
 
 
 
 

Company’s Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)

 
      As of March 31, 2018
Fixed Rate    

Variable

Rate

    

Total per Debt

Schedule

    

Unamortized

Deferred

Financing

Costs

     Total
Consolidated debt $ 3,110,446 $ 1,114,969   $ 4,225,415 $ (17,730 ) $ 4,207,685
Noncontrolling interests' share of consolidated debt (76,785 ) (5,403 ) (82,188 ) 670 (81,518 )
Company's share of unconsolidated affiliates' debt   529,722     67,754     597,476     (2,319 )   595,157  
Company's share of consolidated and unconsolidated debt $ 3,563,383   $ 1,177,320   $ 4,740,703   $ (19,379 ) $ 4,721,324  
Weighted-average interest rate 5.19 % 3.23 % 4.70 %
 
 
As of March 31, 2017
Fixed Rate

Variable

Rate

  

Total per Debt

Schedule

Unamortized

Deferred

Financing

Costs

Total
Consolidated debt $ 3,389,900 $ 1,149,563 $ 4,539,463 $ (16,983 ) $ 4,522,480
Noncontrolling interests' share of consolidated debt (107,197 ) (6,855 ) (114,052 ) 903 (113,149 )
Company's share of unconsolidated affiliates' debt   528,040     72,299     600,339     (2,651 )   597,688  
Company's share of consolidated and unconsolidated debt $ 3,810,743   $ 1,215,007   $ 5,025,750   $ (18,731 ) $ 5,007,019  
Weighted-average interest rate 5.28 % 2.31 % 4.56 %
 
 
 

Debt-To-Total-Market Capitalization Ratio as of March 31, 2018
(In thousands, except stock price)

 

Shares

Outstanding

Stock

Price (1)

Value
Common stock and Operating Partnership units 199,950 $ 4.17 $ 833,792
7.375% Series D Cumulative Redeemable Preferred Stock 1,815 250.00 453,750
6.625% Series E Cumulative Redeemable Preferred Stock 690 250.00   172,500  
Total market equity 1,460,042
Company's share of total debt, excluding unamortized deferred financing costs   4,740,703  
Total market capitalization $ 6,200,745  
Debt-to-total-market capitalization ratio 76.5 %

(1)

   Stock price for common stock and Operating Partnership units equals the closing price of the common stock on March 29, 2018. 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
March 31,
Basic     Diluted
2018:
Weighted-average shares - EPS 171,943 171,943
Weighted-average Operating Partnership units   27,751     27,751  
Weighted-average shares- FFO   199,694     199,694  
 
2017:
Weighted-average shares - EPS 170,989 170,989
Weighted-average Operating Partnership units   28,292     28,292  
Weighted-average shares- FFO   199,281     199,281  
 
 
 

Dividend Payout Ratio

 
Three Months Ended
March 31,
2018 2017
Weighted-average cash dividend per share $ 0.20885 $ 0.27281
FFO, as adjusted, per diluted fully converted share $ 0.42   $ 0.52  
Dividend payout ratio   49.7 %   52.5 %
 
 
 
 
 
 

Consolidated Balance Sheets
(Unaudited; in thousands, except share data)

 
As of

March 31,

2018

December 31,

2017

ASSETS
Real estate assets:
Land $ 808,228 $ 813,390
Buildings and improvements   6,688,716     6,723,194  
7,496,944 7,536,584
Accumulated depreciation   (2,496,629 )   (2,465,095 )
5,000,315 5,071,489
Developments in progress   100,481     85,346  
Net investment in real estate assets 5,100,796 5,156,835
Cash and cash equivalents 23,346 32,627
Receivables:

Tenant, net of allowance for doubtful accounts of $2,062 and $2,011 in 2018 and 2017, respectively

78,788 83,552
Other, net of allowance for doubtful accounts of $838 in 2018 and 2017 8,726 7,570
Mortgage and other notes receivable 8,677 8,945
Investments in unconsolidated affiliates 306,191 249,192
Intangible lease assets and other assets   164,613     166,087  
$ 5,691,137   $ 5,704,808  
 
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
Mortgage and other indebtedness, net $ 4,207,685 $ 4,230,845
Accounts payable and accrued liabilities   232,431     228,650  
Total liabilities   4,440,116     4,459,495  
Commitments and contingencies
Redeemable noncontrolling interests   6,365     8,835  
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, 172,656,783 and 171,088,778 issued and outstanding in 2018 and 2017, respectively

1,727 1,711
Additional paid-in capital 1,971,983 1,974,537
Dividends in excess of cumulative earnings   (822,173 )   (836,269 )
Total shareholders' equity 1,151,562 1,140,004
Noncontrolling interests   93,094     96,474  
Total equity   1,244,656     1,236,478  
$ 5,691,137   $ 5,704,808