CBL Properties Reports Results for Fourth Quarter and Full-Year 2023
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income (loss) attributable to common shareholders |
|
$ |
0.37 |
|
|
$ |
0.03 |
|
|
$ |
0.17 |
|
|
$ |
(3.20 |
) |
Funds from Operations ("FFO") |
|
$ |
1.80 |
|
|
$ |
1.99 |
|
|
$ |
6.59 |
|
|
$ |
5.78 |
|
FFO, as adjusted (1) |
|
$ |
1.94 |
|
|
$ |
2.11 |
|
|
$ |
6.66 |
|
|
$ |
7.88 |
|
(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 |
KEY TAKEAWAYS:
-
CBL initiates 2024 FFO, as adjusted, per share guidance in the range of
$6.19 -$6.63 and 2024 same-center NOI guidance in the range of$428 million -$442 million . - Same-center NOI declined 1.2% during the fourth quarter 2023 as compared with the prior-year quarter and declined 1.5% in 2023 as compared with the prior year, near the high-end of the previously issued guidance range.
-
FFO, as adjusted, per share was
$1.94 for the fourth quarter 2023, and$6.66 for the year endedDecember 31, 2023 . FFO, as adjusted, per share was$2.11 for fourth quarter 2022, and$7.88 for the year endedDecember 31, 2022 . -
Portfolio occupancy was 90.9% as of
December 31, 2023 , approximately flat compared with portfolio occupancy as ofDecember 31, 2022 . Same-center occupancy for malls, lifestyle centers and outlet centers was 89.8% as ofDecember 31, 2023 , a 20-basis-point increase from 89.6% as ofDecember 31, 2022 . - Nearly 4.4 million square feet of leases were executed in 2023, including approximately 1.3 million square feet in the fourth quarter. 2023 leasing results included comparable leases of approximately 2.7 million square feet signed at flat average rents versus the prior leases.
-
As anticipated, same-center tenant sales per square foot for the fourth quarter 2023 declined 2.6%. Same-center tenant sales per square foot for the 12-months ended
December 31, 2023 , declined 4.4% to$416 , compared with$435 for the prior period. -
As of
December 31, 2023 , the Company had$296 million of unrestricted cash and marketable securities. -
CBL's Board of Directors declared a cash dividend of
$0.40 per common share for the quarter endingMarch 31, 2024 , a 6.7% increase from the previous quarterly dividend rate of$0.375 per share. The dividend equates to an annual dividend payment of$1.60 per common share.
“2023 was an excellent year for CBL," said CBL's chief executive officer,
"While rising interest rates contributed to a challenging financing environment, we successfully addressed all of our 2023 maturities. The refinancing of the
"Our 2024 guidance reflects the impact of operating momentum carried over from 2023, offset by certain anticipated headwinds this year. Our forecast assumes ongoing healthy tenant demand, improving specialty leasing income and the benefit of successful real estate tax appeals. Contributions from new large space openings, such as
Same-center Net Operating Income (“NOI”) (1):
|
|
Three Months Ended |
||||||
|
|
2023 |
|
2022 |
||||
Total Revenues |
|
$ |
173,155 |
|
|
$ |
176,947 |
|
Total Expenses |
|
$ |
(53,689 |
) |
|
$ |
(56,046 |
) |
Total portfolio same-center NOI |
|
$ |
119,466 |
|
|
$ |
120,901 |
|
Total same-center NOI percentage change |
|
|
(1.2 |
)% |
|
|
||
|
|
|
|
|
||||
Estimate for uncollectable revenues (recovery) |
|
$ |
(219 |
) |
|
$ |
(410 |
) |
(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 above and below market leases. |
Same-center NOI for the fourth quarter 2023 declined
|
|
Year Ended |
||||||
|
|
2023 |
|
2022 |
||||
Total Revenues |
|
$ |
654,525 |
|
|
$ |
664,422 |
|
Total Expenses |
|
$ |
(216,013 |
) |
|
$ |
(219,047 |
) |
Total portfolio same-center NOI |
|
$ |
438,512 |
|
|
$ |
445,376 |
|
Total same-center NOI percentage change |
|
|
(1.5 |
)% |
|
|
||
|
|
|
|
|
||||
Estimate for uncollectable revenues (recovery) |
|
$ |
1,308 |
|
|
$ |
(4,334 |
) |
Same-center NOI for the year ended
PORTFOLIO OPERATIONAL RESULTS
Occupancy(1):
|
|
As of |
||
|
|
2023 |
|
2022 |
Total portfolio |
|
90.9% |
|
91.0% |
Malls, Lifestyle Centers and Outlet Centers: |
|
|
|
|
Total malls |
|
89.3% |
|
89.1% |
Total lifestyle centers |
|
91.5% |
|
92.7% |
Total outlet centers |
|
91.9% |
|
90.8% |
Total same-center malls, lifestyle centers and outlet centers |
|
89.8% |
|
89.6% |
All Other: |
|
|
|
|
Total open-air centers |
|
95.6% |
|
95.3% |
Total other |
|
78.2% |
|
93.0% |
(1) |
Occupancy for malls, lifestyle centers and outlet centers represent percentage of in-line gross leasable area under 20,000 square feet occupied. Occupancy for open-air 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
|
|
Year Ended
|
|
|
2023 |
|
2023 |
All Property Types |
|
(2.6)% |
|
0.0% |
Stabilized Malls, Lifestyle Centers and Outlet Centers |
|
(3.4)% |
|
(1.0)% |
New leases |
|
30.0% |
|
26.2% |
Renewal leases |
|
(4.2)% |
|
(2.6)% |
Same-Center Sales Per Square Foot for In-line Tenants 10,000 Square Feet or Less:
|
|
Sales Per Square Foot for the
|
|
|
||||||
|
|
2023 |
|
2022 |
|
% Change |
||||
Mall, Lifestyle Center and Outlet Center same-center sales per square foot |
|
$ |
416 |
|
|
$ |
435 |
|
|
(4.4)% |
DIVIDEND
On
FINANCING ACTIVITY
In 2023, CBL completed more than
In October, CBL, along with its 50% joint venture partner, Horizon Group Properties, closed a new
In October, CBL and its 35% joint venture partner closed on the extension and modification of the loan secured by The Outlet Shoppes at
In October, CBL exercised its option to extend the
In November, CBL and the lender of the loan secured by
CBL is cooperating with the foreclosure or conveyance of
In
STOCK REPURCHASE PROGRAM ACTIVITY
On
DISPOSITIONS
During the fourth quarter 2023, CBL completed the sale of one land parcel, generating
DEVELOPMENT AND REDEVELOPMENT ACTIVITY
Detailed project information is available in CBL’s Financial Supplement for Q4 2023, which can be found in the Invest – Financial Reports section of CBL’s website at cblproperties.com.
OUTLOOK AND GUIDANCE
Based on Management's expectations for 2024, CBL is initiating the following guidance for FFO, as adjusted, and same-center NOI for full-year 2024. Guidance excludes the impact of any unannounced transactions.
|
|
Low |
|
High |
||||
2024 FFO, as adjusted (in millions) |
|
$ |
196.0 |
|
|
$ |
210.0 |
|
2024 FFO, as adjusted, per share |
|
$ |
6.19 |
|
|
$ |
6.63 |
|
Weighted average common shares outstanding (in millions) |
|
31.7 |
|
|
31.7 |
|
||
2024 Same-Center NOI ("SC NOI") (in millions) |
|
$ |
428.0 |
|
|
$ |
442.0 |
|
2024 change in same-center NOI |
|
|
(1.9 |
)% |
|
|
1.3 |
% |
2023 vs. 2024
|
2024 SC NOI Low
|
|
2024 |
|
Category Explanation |
||
2023 same-center NOI |
$ |
436.5 |
|
$ |
436.5 |
|
|
Net impact from new and renewal leasing activity |
|
5.5 |
|
|
9.0 |
|
Net impact of new leases, renewal leases and contractual rent bumps. |
Percentage rent |
|
(4.0 |
) |
|
(1.0 |
) |
Lower percentage rent resulting from an anticipated decline in full-year sales. |
Operating expense |
|
(2.0 |
) |
|
- |
|
Low end represents potential increase in operating expenses. |
Credit loss |
|
(6.0 |
) |
|
(1.5 |
) |
Unbudgeted reserve for tenants that may file for bankruptcy/close stores. |
Uncollectable revenue variance |
|
(2.0 |
) |
|
(1.0 |
) |
Represents the estimated impact of an unfavorable variance in the estimate for uncollectable revenues. |
2024 SC NOI Guidance |
$ |
428.0 |
|
$ |
442.0 |
|
|
% change |
|
(1.9 |
)% |
|
1.3 |
% |
|
Reconciliation of GAAP Earnings Per Share to 2024 FFO, as Adjusted, Per Share:
|
|
Low |
|
High |
||||
Expected diluted earnings per common share |
|
$ |
- |
|
|
$ |
0.44 |
|
Depreciation and amortization |
|
|
4.79 |
|
|
|
4.79 |
|
Dividends allocable to unvested restricted stock |
|
|
0.03 |
|
|
|
0.03 |
|
Debt discount accretion, net of noncontrolling interests' share |
|
|
1.46 |
|
|
|
1.46 |
|
Adjustment for unconsolidated affiliates with negative investment |
|
|
(0.09 |
) |
|
|
(0.09 |
) |
Expected FFO, as adjusted, per diluted, fully converted common share |
|
$ |
6.19 |
|
|
$ |
6.63 |
|
2024 Estimate of Capital Items (in millions):
|
|
Low |
High |
|||||
2024 Estimated maintenance capital/tenant allowances |
|
$ |
40.0 |
|
$ |
55.0 |
|
|
2024 Estimated development/redevelopment expenditures |
|
|
10.0 |
|
|
15.0 |
|
|
2024 Estimated principal amortization (including est. term loan ECF) |
|
|
70.0 |
|
|
80.0 |
|
|
Total Estimate |
|
$ |
120.0 |
|
$ |
150.0 |
|
ABOUT CBL PROPERTIES
Headquartered in
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 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 believes FFO allocable to
In the reconciliation of net income (loss) attributable to the Company’s common shareholders to FFO allocable to
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
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
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 (loss) is located at the end of this earnings release.
Pro Rata Share of Debt
The Company presents debt based on the carrying value of its pro rata ownership share (including the carrying value of 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
Consolidated Statements of Operations |
||||||||||||||||
(Unaudited; in thousands, except per share amounts) |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
REVENUES: |
|
|
|
|
|
|
|
|
||||||||
Rental revenues |
|
$ |
134,008 |
|
|
$ |
143,441 |
|
|
$ |
513,957 |
|
|
$ |
542,247 |
|
Management, development and leasing fees |
|
|
1,821 |
|
|
|
1,820 |
|
|
|
7,917 |
|
|
|
7,158 |
|
Other |
|
|
3,880 |
|
|
|
4,350 |
|
|
|
13,412 |
|
|
|
13,606 |
|
Total revenues |
|
|
139,709 |
|
|
|
149,611 |
|
|
|
535,286 |
|
|
|
563,011 |
|
EXPENSES: |
|
|
|
|
|
|
|
|
||||||||
Property operating |
|
|
(22,254 |
) |
|
|
(23,080 |
) |
|
|
(90,996 |
) |
|
|
(92,126 |
) |
Depreciation and amortization |
|
|
(42,376 |
) |
|
|
(61,841 |
) |
|
|
(190,505 |
) |
|
|
(256,310 |
) |
Real estate taxes |
|
|
(11,744 |
) |
|
|
(14,550 |
) |
|
|
(54,807 |
) |
|
|
(57,119 |
) |
Maintenance and repairs |
|
|
(11,334 |
) |
|
|
(11,417 |
) |
|
|
(41,336 |
) |
|
|
(42,485 |
) |
General and administrative |
|
|
(14,283 |
) |
|
|
(16,066 |
) |
|
|
(64,066 |
) |
|
|
(67,215 |
) |
Loss on impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(252 |
) |
Litigation settlement |
|
|
132 |
|
|
|
122 |
|
|
|
2,310 |
|
|
|
304 |
|
Other |
|
|
(23 |
) |
|
|
— |
|
|
|
(221 |
) |
|
|
(834 |
) |
Total expenses |
|
|
(101,882 |
) |
|
|
(126,832 |
) |
|
|
(439,621 |
) |
|
|
(516,037 |
) |
OTHER INCOME (EXPENSES): |
|
|
|
|
|
|
|
|
||||||||
Interest and other income |
|
|
3,939 |
|
|
|
3,722 |
|
|
|
13,199 |
|
|
|
4,938 |
|
Interest expense |
|
|
(42,317 |
) |
|
|
(33,914 |
) |
|
|
(172,905 |
) |
|
|
(217,342 |
) |
Gain on extinguishment of debt |
|
|
3,270 |
|
|
|
7,344 |
|
|
|
3,270 |
|
|
|
7,344 |
|
Gain on deconsolidation |
|
|
— |
|
|
|
— |
|
|
|
47,879 |
|
|
|
36,250 |
|
Loss on available-for-sale securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(39 |
) |
Gain on sales of real estate assets |
|
|
229 |
|
|
|
1,798 |
|
|
|
5,125 |
|
|
|
5,345 |
|
Reorganization items, net |
|
|
— |
|
|
|
36 |
|
|
|
— |
|
|
|
298 |
|
Income tax benefit (provision) |
|
|
487 |
|
|
|
(328 |
) |
|
|
(894 |
) |
|
|
(3,079 |
) |
Equity in earnings of unconsolidated affiliates |
|
|
9,043 |
|
|
|
3,488 |
|
|
|
11,865 |
|
|
|
19,796 |
|
Total other expenses |
|
|
(25,349 |
) |
|
|
(17,854 |
) |
|
|
(92,461 |
) |
|
|
(146,489 |
) |
Net income (loss) |
|
|
12,478 |
|
|
|
4,925 |
|
|
|
3,204 |
|
|
|
(99,515 |
) |
Net (income) loss attributable to noncontrolling interests in: |
|
|
|
|
|
|
|
|
||||||||
Operating Partnership |
|
|
(8 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
34 |
|
Other consolidated subsidiaries |
|
|
(657 |
) |
|
|
(2,003 |
) |
|
|
3,344 |
|
|
|
5,999 |
|
Net income (loss) attributable to the Company |
|
|
11,813 |
|
|
|
2,922 |
|
|
|
6,546 |
|
|
|
(93,482 |
) |
Earnings allocable to unvested restricted stock |
|
|
(276 |
) |
|
|
(2,111 |
) |
|
|
(1,113 |
) |
|
|
(2,537 |
) |
Net income (loss) attributable to common shareholders |
|
$ |
11,537 |
|
|
$ |
811 |
|
|
$ |
5,433 |
|
|
$ |
(96,019 |
) |
Basic and diluted per share data attributable to common shareholders: |
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
|
$ |
0.37 |
|
|
$ |
0.03 |
|
|
$ |
0.17 |
|
|
$ |
(3.20 |
) |
Diluted earnings per share |
|
|
0.37 |
|
|
|
0.03 |
|
|
|
0.17 |
|
|
|
(3.20 |
) |
Weighted-average basic shares |
|
|
31,291 |
|
|
|
30,999 |
|
|
|
31,303 |
|
|
|
30,046 |
|
Weighted-average diluted shares |
|
|
31,291 |
|
|
|
30,999 |
|
|
|
31,303 |
|
|
|
30,046 |
|
The Company's reconciliation of net income (loss) attributable to common shareholders to FFO allocable to |
||||||||||||||||
(in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income (loss) attributable to common shareholders |
|
$ |
11,537 |
|
|
$ |
811 |
|
|
$ |
5,433 |
|
|
$ |
(96,019 |
) |
Noncontrolling interest in loss of |
|
|
8 |
|
|
|
— |
|
|
|
2 |
|
|
|
(34 |
) |
Earnings allocable to unvested restricted stock |
|
|
276 |
|
|
|
2,111 |
|
|
|
1,113 |
|
|
|
2,537 |
|
Depreciation and amortization expense of: |
|
|
|
|
|
|
|
|
||||||||
Consolidated properties |
|
|
42,376 |
|
|
|
61,841 |
|
|
|
190,505 |
|
|
|
256,310 |
|
Unconsolidated affiliates |
|
|
4,145 |
|
|
|
(191 |
) |
|
|
17,408 |
|
|
|
20,813 |
|
Non-real estate assets |
|
|
(232 |
) |
|
|
(526 |
) |
|
|
(905 |
) |
|
|
(1,050 |
) |
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries |
|
|
(507 |
) |
|
|
(832 |
) |
|
|
(2,442 |
) |
|
|
(3,498 |
) |
Loss on impairment, net of taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
186 |
|
Gain on depreciable property |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(629 |
) |
FFO allocable to |
|
|
57,603 |
|
|
|
63,214 |
|
|
|
211,114 |
|
|
|
178,616 |
|
Debt discount accretion, including our share of unconsolidated affiliates and net of noncontrolling interests' share (1) |
|
|
13,909 |
|
|
|
22,131 |
|
|
|
61,788 |
|
|
|
176,055 |
|
Adjustment for unconsolidated affiliates with negative investment (2) |
|
|
(6,062 |
) |
|
|
(1,522 |
) |
|
|
(7,242 |
) |
|
|
(37,645 |
) |
Senior secured notes fair value adjustment (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(395 |
) |
Litigation settlement (4) |
|
|
(132 |
) |
|
|
(122 |
) |
|
|
(2,310 |
) |
|
|
(304 |
) |
Non-cash default interest expense (5) |
|
|
— |
|
|
|
(9,148 |
) |
|
|
972 |
|
|
|
(28,953 |
) |
Gain on deconsolidation (6) |
|
|
— |
|
|
|
— |
|
|
|
(47,879 |
) |
|
|
(36,250 |
) |
Loss on available-for-sale securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
39 |
|
Reorganization items, net (7) |
|
|
— |
|
|
|
(36 |
) |
|
|
— |
|
|
|
(298 |
) |
Gain on extinguishment of debt (8) |
|
|
(3,270 |
) |
|
|
(7,344 |
) |
|
|
(3,270 |
) |
|
|
(7,344 |
) |
FFO allocable to |
|
$ |
62,048 |
|
|
$ |
67,173 |
|
|
$ |
213,173 |
|
|
$ |
243,521 |
|
FFO per diluted share |
|
$ |
1.80 |
|
|
$ |
1.99 |
|
|
$ |
6.59 |
|
|
$ |
5.78 |
|
FFO, as adjusted, per diluted share |
|
$ |
1.94 |
|
|
$ |
2.11 |
|
|
$ |
6.66 |
|
|
$ |
7.88 |
|
Weighted-average common and potential dilutive common shares outstanding with |
|
|
32,007 |
|
|
|
31,840 |
|
|
|
32,015 |
|
|
|
30,888 |
|
(1) |
In conjunction with fresh start accounting upon emergence from bankruptcy, the Company recognized debt discounts equal to the difference between the outstanding balance of mortgage notes payable and the estimated fair value of such mortgage notes payable. The debt discounts are accreted as additional interest expense over the terms of the respective mortgage notes payable using the effective interest method. |
|
(2) |
Represents the Company’s share of the earnings (losses) before depreciation and amortization expense of unconsolidated affiliates where the Company is not recognizing equity in earnings (losses) because its investment in the unconsolidated affiliate is below zero. |
|
(3) |
Represents the fair value adjustment recorded on the senior secured notes as interest expense. |
|
(4) |
Represents a credit to litigation settlement expense in each respective period related to claim amounts that were released pursuant to the terms of the settlement agreement related to the settlement of a class action lawsuit. |
|
(5) |
The year ended |
|
(6) |
For the year ended |
|
(7) |
Represents costs incurred subsequent to the Company filing the chapter 11 cases associated with the Company's reorganization efforts, which consists of professional fees, legal fees and |
|
(8) |
The three months and year ended |
|
Three Months Ended
|
|
Year Ended |
|||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Diluted EPS attributable to common shareholders |
|
$ |
0.37 |
|
|
$ |
0.03 |
|
|
$ |
0.17 |
|
|
$ |
(3.20 |
) |
Add amounts per share included in FFO: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Unvested restricted stock |
|
|
0.01 |
|
|
|
0.08 |
|
|
|
0.03 |
|
|
|
0.16 |
|
Eliminate amounts per share excluded from FFO: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Depreciation and amortization expense, including amounts from
|
|
|
1.42 |
|
|
|
1.88 |
|
|
|
6.39 |
|
|
|
8.83 |
|
Loss on impairment, net of taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Gain on depreciable property |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.02 |
) |
FFO per diluted share |
|
$ |
1.80 |
|
|
$ |
1.99 |
|
|
$ |
6.59 |
|
|
$ |
5.78 |
|
|
|
Three Months Ended
|
|
Year Ended |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
SUPPLEMENTAL FFO INFORMATION: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Lease termination fees |
|
$ |
1,423 |
|
|
$ |
1,095 |
|
|
$ |
3,504 |
|
|
$ |
5,115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Straight-line rental income adjustment |
|
$ |
1,432 |
|
|
$ |
3,140 |
|
|
$ |
6,840 |
|
|
$ |
12,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain on outparcel sales, net of taxes and noncontrolling interests' share |
|
$ |
229 |
|
|
$ |
2,132 |
|
|
$ |
5,607 |
|
|
$ |
5,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net amortization of acquired above- and below-market leases |
|
$ |
(5,626 |
) |
|
$ |
(4,286 |
) |
|
$ |
(20,736 |
) |
|
$ |
(20,773 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax benefit (provision) |
|
$ |
487 |
|
|
$ |
(328 |
) |
|
$ |
(894 |
) |
|
$ |
(3,079 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Abandoned projects expense |
|
$ |
(22 |
) |
|
$ |
— |
|
|
$ |
(39 |
) |
|
$ |
(834 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest capitalized |
|
$ |
111 |
|
|
$ |
87 |
|
|
$ |
453 |
|
|
$ |
618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Estimate of uncollectable revenues |
|
$ |
1,081 |
|
|
$ |
866 |
|
|
$ |
(1,493 |
) |
|
$ |
4,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
As of |
||||||||
|
|
|
|
|
|
|
|
2023 |
|
2022 |
||||||
Straight-line rent receivable |
|
|
|
|
|
|
|
$ |
22,649 |
|
|
$ |
15,600 |
|
Same-center Net Operating Income |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income (loss) |
|
$ |
12,478 |
|
|
$ |
4,925 |
|
|
$ |
3,204 |
|
|
$ |
(99,515 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
|
42,376 |
|
|
|
61,841 |
|
|
|
190,505 |
|
|
|
256,310 |
|
Depreciation and amortization from unconsolidated affiliates |
|
|
4,145 |
|
|
|
(191 |
) |
|
|
17,408 |
|
|
|
20,813 |
|
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries |
|
|
(507 |
) |
|
|
(832 |
) |
|
|
(2,442 |
) |
|
|
(3,498 |
) |
Interest expense |
|
|
42,317 |
|
|
|
33,914 |
|
|
|
172,905 |
|
|
|
217,342 |
|
Interest expense from unconsolidated affiliates |
|
|
17,753 |
|
|
|
22,877 |
|
|
|
71,867 |
|
|
|
88,331 |
|
Noncontrolling interests' share of interest expense in other consolidated subsidiaries |
|
|
(1,089 |
) |
|
|
(177 |
) |
|
|
(6,156 |
) |
|
|
(7,960 |
) |
Abandoned projects expense |
|
|
22 |
|
|
|
— |
|
|
|
39 |
|
|
|
834 |
|
Gain on sales of real estate assets, net of taxes and noncontrolling interests' share |
|
|
(229 |
) |
|
|
(1,798 |
) |
|
|
(4,839 |
) |
|
|
(5,345 |
) |
Gain on sales of real estate assets of unconsolidated affiliates |
|
|
— |
|
|
|
(374 |
) |
|
|
(768 |
) |
|
|
(1,036 |
) |
Adjustment for unconsolidated affiliates with negative investment |
|
|
(6,062 |
) |
|
|
(1,522 |
) |
|
|
(7,242 |
) |
|
|
(37,645 |
) |
Gain on extinguishment of debt |
|
|
(3,270 |
) |
|
|
(7,344 |
) |
|
|
(3,270 |
) |
|
|
(7,344 |
) |
Gain on deconsolidation |
|
|
— |
|
|
|
— |
|
|
|
(47,879 |
) |
|
|
(36,250 |
) |
Loss on available-for-sale securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
39 |
|
Loss on impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
252 |
|
Litigation settlement |
|
|
(132 |
) |
|
|
(122 |
) |
|
|
(2,310 |
) |
|
|
(304 |
) |
Reorganization items, net |
|
|
— |
|
|
|
(36 |
) |
|
|
— |
|
|
|
(298 |
) |
Income tax (benefit) provision |
|
|
(487 |
) |
|
|
328 |
|
|
|
894 |
|
|
|
3,079 |
|
Lease termination fees |
|
|
(1,423 |
) |
|
|
(1,095 |
) |
|
|
(3,504 |
) |
|
|
(5,115 |
) |
Straight-line rent and above- and below-market lease amortization |
|
|
4,194 |
|
|
|
1,146 |
|
|
|
13,896 |
|
|
|
8,233 |
|
Net (income) loss attributable to noncontrolling interests in other consolidated subsidiaries |
|
|
(657 |
) |
|
|
(2,003 |
) |
|
|
3,344 |
|
|
|
5,999 |
|
General and administrative expenses |
|
|
14,283 |
|
|
|
16,066 |
|
|
|
64,066 |
|
|
|
67,215 |
|
Management fees and non-property level revenues |
|
|
(4,360 |
) |
|
|
(2,635 |
) |
|
|
(19,087 |
) |
|
|
(4,433 |
) |
Operating Partnership's share of property NOI |
|
|
119,352 |
|
|
|
122,968 |
|
|
|
440,631 |
|
|
|
459,704 |
|
Non-comparable NOI |
|
|
114 |
|
|
|
(2,067 |
) |
|
|
(2,119 |
) |
|
|
(14,328 |
) |
Total same-center NOI (1) |
|
$ |
119,466 |
|
|
$ |
120,901 |
|
|
$ |
438,512 |
|
|
$ |
445,376 |
|
Total same-center NOI percentage change |
|
|
(1.2 |
)% |
|
|
|
|
(1.5 |
)% |
|
|
(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). 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 |
Same-center Net Operating Income |
||||||||||||||||
(Continued) |
||||||||||||||||
|
|
Three Months Ended
|
|
Year Ended
|
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Malls |
|
$ |
84,789 |
|
|
$ |
86,129 |
|
|
$ |
303,365 |
|
|
$ |
313,384 |
|
Outlet centers |
|
|
5,505 |
|
|
|
5,360 |
|
|
|
21,043 |
|
|
|
19,845 |
|
Lifestyle centers |
|
|
9,079 |
|
|
|
9,938 |
|
|
|
35,662 |
|
|
|
35,646 |
|
Open-air centers |
|
|
13,946 |
|
|
|
13,346 |
|
|
|
55,276 |
|
|
|
52,847 |
|
Outparcels and other |
|
|
6,147 |
|
|
|
6,128 |
|
|
|
23,166 |
|
|
|
23,654 |
|
Total same-center NOI (1) |
|
$ |
119,466 |
|
|
$ |
120,901 |
|
|
$ |
438,512 |
|
|
$ |
445,376 |
|
Percentage Change: |
|
|
|
|
|
|
|
|
|
|
||||||
Malls |
|
|
(1.6 |
)% |
|
|
|
|
|
(3.2 |
)% |
|
|
|
||
Outlet centers |
|
|
2.7 |
% |
|
|
|
|
|
6.0 |
% |
|
|
|
||
Lifestyle centers |
|
|
(8.6 |
)% |
|
|
|
|
|
0.0 |
% |
|
|
|
||
Open-air centers |
|
|
4.5 |
% |
|
|
|
|
|
4.6 |
% |
|
|
|
||
Outparcels and other |
|
|
0.3 |
% |
|
|
|
|
|
(2.1 |
)% |
|
|
|
||
Total same-center NOI (1) |
|
|
(1.2 |
)% |
|
|
|
|
|
(1.5 |
)% |
|
|
|
(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). 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 |
Company's Share of Consolidated and Unconsolidated Debt |
||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||
|
|
As of |
||||||||||||||||||||||
|
|
Fixed
|
|
Variable
|
|
Total Debt |
|
Unamortized
|
|
Unamortized
|
|
Total, net |
||||||||||||
Consolidated debt |
|
$ |
915,753 |
|
|
$ |
1,028,213 |
|
|
$ |
1,943,966 |
|
|
$ |
(13,221 |
) |
|
$ |
(41,942 |
) |
|
$ |
1,888,803 |
|
Noncontrolling interests' share of consolidated debt |
|
|
(25,021 |
) |
|
|
(11,823 |
) |
|
|
(36,844 |
) |
|
|
249 |
|
|
|
3,706 |
|
|
|
(32,889 |
) |
Company's share of unconsolidated affiliates' debt |
|
|
622,169 |
|
|
|
57,274 |
|
|
|
679,443 |
|
|
|
(3,197 |
) |
|
|
— |
|
|
|
676,246 |
|
Other debt (2) |
|
|
69,783 |
|
|
|
— |
|
|
|
69,783 |
|
|
|
— |
|
|
|
— |
|
|
|
69,783 |
|
Company's share of consolidated, unconsolidated and other debt |
|
$ |
1,582,684 |
|
|
$ |
1,073,664 |
|
|
$ |
2,656,348 |
|
|
$ |
(16,169 |
) |
|
$ |
(38,236 |
) |
|
$ |
2,601,943 |
|
Weighted-average interest rate |
|
|
5.26 |
% |
|
|
8.42 |
% |
|
|
6.54 |
% |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
As of |
||||||||||||||||||||||
|
|
Fixed
|
|
Variable
|
|
Total Debt |
|
Unamortized
|
|
Unamortized
|
|
Total, net |
||||||||||||
Consolidated debt |
|
$ |
1,023,634 |
|
|
$ |
1,065,942 |
|
|
$ |
2,089,576 |
|
|
$ |
(17,101 |
) |
|
$ |
(72,289 |
) |
|
$ |
2,000,186 |
|
Noncontrolling interests' share of consolidated debt |
|
|
(25,420 |
) |
|
|
(13,387 |
) |
|
|
(38,807 |
) |
|
|
317 |
|
|
|
7,448 |
|
|
|
(31,042 |
) |
Company's share of unconsolidated affiliates' debt |
|
|
621,642 |
|
|
|
71,584 |
|
|
|
693,226 |
|
|
|
(2,142 |
) |
|
|
— |
|
|
|
691,084 |
|
Company's share of consolidated, unconsolidated and other debt |
|
$ |
1,619,856 |
|
|
$ |
1,124,139 |
|
|
$ |
2,743,995 |
|
|
$ |
(18,926 |
) |
|
$ |
(64,841 |
) |
|
$ |
2,660,228 |
|
Weighted-average interest rate |
|
|
4.83 |
% |
|
|
7.10 |
% |
|
|
5.76 |
% |
|
|
|
|
|
|
(1) |
In conjunction with fresh start accounting, the Company estimated the fair value of its mortgage notes with the assistance of a third-party valuation advisor. This resulted in recognizing debt discounts upon emergence from bankruptcy. The debt discounts are accreted over the term of the respective debt using the effective interest method. |
|
(2) |
Represents the outstanding loan balance for properties that were deconsolidated due to a loss of control when the properties were placed into receivership in connection with the foreclosure process. |
Consolidated Balance Sheets |
||||||||
(Unaudited; in thousands, except share data) |
||||||||
|
|
|
||||||
|
|
2023 |
|
2022 |
||||
ASSETS |
|
|
|
|
||||
Real estate assets: |
|
|
|
|
||||
Land |
|
$ |
585,191 |
|
|
$ |
596,715 |
|
Buildings and improvements |
|
|
1,216,054 |
|
|
|
1,198,597 |
|
|
|
|
1,801,245 |
|
|
|
1,795,312 |
|
Accumulated depreciation |
|
|
(228,034 |
) |
|
|
(136,901 |
) |
|
|
|
1,573,211 |
|
|
|
1,658,411 |
|
Developments in progress |
|
|
8,900 |
|
|
|
5,576 |
|
Net investment in real estate assets |
|
|
1,582,111 |
|
|
|
1,663,987 |
|
Cash and cash equivalents |
|
|
34,188 |
|
|
|
44,718 |
|
Restricted cash |
|
|
88,888 |
|
|
|
97,231 |
|
Available-for-sale securities - at fair value (amortized cost of |
|
|
262,142 |
|
|
|
292,422 |
|
Receivables: |
|
|
|
|
||||
Tenant |
|
|
43,436 |
|
|
|
40,620 |
|
Other |
|
|
2,752 |
|
|
|
3,876 |
|
Investments in unconsolidated affiliates |
|
|
76,458 |
|
|
|
77,295 |
|
In-place leases, net |
|
|
157,639 |
|
|
|
247,497 |
|
Above market leases, net |
|
|
118,673 |
|
|
|
171,265 |
|
Intangible lease assets and other assets |
|
|
39,618 |
|
|
|
39,332 |
|
|
|
$ |
2,405,905 |
|
|
$ |
2,678,243 |
|
LIABILITIES AND EQUITY |
|
|
|
|
||||
Mortgage and other indebtedness, net |
|
$ |
1,888,803 |
|
|
$ |
2,000,186 |
|
Below market leases, net |
|
|
80,408 |
|
|
|
110,616 |
|
Accounts payable and accrued liabilities |
|
|
106,077 |
|
|
|
200,312 |
|
Total liabilities |
|
|
2,075,288 |
|
|
|
2,311,114 |
|
Shareholders' equity: |
|
|
|
|
||||
Common stock, |
|
|
32 |
|
|
|
32 |
|
Additional paid-in capital |
|
|
719,125 |
|
|
|
710,497 |
|
Accumulated other comprehensive income (loss) |
|
|
610 |
|
|
|
(1,054 |
) |
Accumulated deficit |
|
|
(380,446 |
) |
|
|
(338,934 |
) |
Total shareholders' equity |
|
|
339,321 |
|
|
|
370,541 |
|
Noncontrolling interests |
|
|
(8,704 |
) |
|
|
(3,412 |
) |
Total equity |
|
|
330,617 |
|
|
|
367,129 |
|
|
|
$ |
2,405,905 |
|
|
$ |
2,678,243 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240212237014/en/
Source: