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CBL & Associates Properties Inc. Reports Operating Results (10-K)

February 29, 2012 | About:
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10qk

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CBL & Associates Properties Inc. (CBL) filed Annual Report for the period ended 2011-12-31.

Cbl&assoc Pptys has a market cap of $2.64 billion; its shares were traded at around $17.63 with a P/E ratio of 8.1 and P/S ratio of 2.5. The dividend yield of Cbl&assoc Pptys stocks is 4.7%.

Highlight of Business Operations:

Total revenues increased by $4.2 million for 2011 compared to the prior year. Rental revenues and tenant reimbursements decreased $2.0 million due to a decrease of $19.4 million related to the CBL/T-C Properties partially offset by an increase of $9.2 million from the 2011 Comparable Properties and an increase of $8.3 million from the 2011 New Properties. The purchase of the additional interest in Parkway Place in October 2010 comprised $8.6 million of the increase from the 2011 Comparable Properties. The remaining increase in rental revenues and tenant reimbursements of the 2011 Comparable Properties was primarily driven by a $0.6 million increase in minimum rents as a result of overall improvement in leasing spreads and higher occupancy levels.

General and administrative expenses increased $1.4 million primarily as a result of increases of $1.1 million in payroll and related expenses, $0.6 million in legal and consulting expenses and $0.6 million in insurance expense, partially offset by a reduction of $0.6 million in travel costs. As a percentage of revenues, general and administrative expenses were 4.2% in 2011 compared to 4.1% in 2010.

Equity in earnings (losses) of unconsolidated affiliates increased by $6.3 million during 2011. One joint venture Property that opened in March 2010 contributed to the increase compared to the prior year. Increases in revenues and tenant reimbursements were key drivers at several unconsolidated Properties, reflecting improved occupancy and rental rates consistent with the 2011 Comparable Properties. Additionally, our share of the earnings of the CBL/T-C Properties accounted for $0.3 million of the increase. In addition, outparcel sales increased approximately $0.3 million compared to the prior year. These increases were partially offset by a decline in earnings from Parkway Place as a result of the acquisition of the remaining 50% interest from our joint venture partner in October 2010. Results of Parkway Place are now reported on a consolidated basis.

Total revenues declined by $9.8 million for 2010 compared to the prior year. Rental revenues and tenant reimbursements declined by $9.8 million due to a decrease of $14.2 million from the 2010 Comparable Properties, partially offset by an increase of $4.4 million from the 2010 New Properties. The decrease in revenues of the 2010 Comparable Properties was primarily driven by declines of $10.0 million in tenant reimbursements and $4.7 million in lease termination fees. Tenant reimbursements decreased primarily due to certain tenants converting their lease payment terms to percentage in lieu or base rent. Tenant reimbursements also were impacted by negative leasing spreads over the past year.

General and administrative expenses increased $2.4 million primarily as a result of a reduction in capitalized overhead of $1.6 million coupled with an increase of $2.0 million in consulting fees and legal expenses, partially offset by a decline of $1.3 million in payroll and related expenses. As a percentage of revenues, general and administrative expenses were 4.1% in 2010 compared to 3.8% in 2009.

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