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

August 09, 2012 | About:
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10qk

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CBL & Associates Properties Inc. (CBL) filed Quarterly Report for the period ended 2012-06-30.

Cbl & Associates Properties, Inc. has a market cap of $3.04 billion; its shares were traded at around $20.32 with a P/E ratio of 9.7 and P/S ratio of 2.8. The dividend yield of Cbl & Associates Properties, Inc. stocks is 4.3%.

Highlight of Business Operations:

Total revenues decreased $6.5 million for the three months ended June 30, 2012 compared to the prior year period. Rental revenues and tenant reimbursements decreased by $6.2 million due to a decrease of $23.1 million related to the CBL/T-C Properties partially offset by increases of $12.3 million from the New Properties and $4.6 million from the Comparable Properties. The increase in revenues of the Comparable Properties was primarily driven by a $3.8 million increase in base rents, as a result of increases in occupancy, improvements in leasing spreads and a bankruptcy settlement from a former tenant of $1.6 million.

General and administrative expenses increased $0.8 million primarily as a result of increases of $1.0 million in payroll and related costs and $0.3 million for capitalized overhead related to development projects, partially offset by a decrease of $0.5 million in consulting fees. As a percentage of revenues, general and administrative expenses were 4.7% and 4.3% for the second quarters of 2012 and 2011, respectively. Revenues declined as a result of the deconsolidation of the CBL/T-C Properties for the three months ended June 30, 2012 compared to the prior year period.

Total revenues decreased $23.0 million for the six months ended June 30, 2012 compared to the prior year period. Rental revenues and tenant reimbursements decreased by $22.6 million due to a decrease of $46.1 million related to the CBL/T-C Properties partially offset by increases of $17.1 million from the New Properties and $6.4 million from the Comparable Properties. The increase in revenues of the Comparable Properties was primarily driven by a $5.6 million increase in base rents, as a result of the increases in occupancy, improvements in leasing spreads and a bankruptcy settlement from a former tenant of $1.6 million.

General and administrative expenses increased $2.8 million primarily as a result of increases of $2.0 million in payroll and related costs, $0.7 million in acquisition-related costs, and $0.3 million for capitalized overhead related to development projects, which were partially offset by a decrease of $0.5 million in consulting fees. As a percentage of revenues, general and administrative expenses were 5.1% and 4.4% for the six months ended June 30, 2012 and 2011, respectively. The increase in general and administrative expenses as a percentage of revenues is primarily the result of the deconsolidation of the CBL/T-C Properties, which caused a reduction in revenues as compared to the prior year period.

year. We also recorded a $0.3 million loss on impairment of real estate in the first quarter of 2012 to true-up certain estimated amounts to actual amounts related to the sale of Oak Hollow Square and a gain of $0.9 million on the sale of the second phase of Settlers Ridge in the first quarter of 2012. The results of operations of these two properties, including the gain on sale of real estate and loss on impairment of real estate, are included in discontinued operations for the six months ended June 30, 2012. Operating income of $24.6 million from discontinued operations for the six months ended June 30, 2011 reflects the operating results of Oak Hollow Mall that was sold in February 2011. In accordance with the lender s agreement to modify the outstanding principal balance and accrued interest to equal the net sales price for the property, we recorded a gain on the extinguishment of debt of $31.4 million in the first quarter of 2011. We also recorded a loss on impairment of real estate in the first quarter of 2011 of $2.7 million to write down the book value of Oak Hollow Mall to the net sales price. We recorded a loss on impairment of real estate of $4.5 million in the second quarter of 2011 to write down the book value of the second phase of Settlers Ridge to its then estimated fair value. The results of operations of this property, including the gain on extinguishment of debt and loss on impairment of real estate, are included in discontinued operations for the six months ended June 30, 2011. Discontinued operations for all periods presented include the settlement of estimated expenses based on actual amounts for properties sold during previous periods.

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