DELAWARE (CBL & ASSOCIATES PROPERTIES, INC.) | 62-1545718 | |
DELAWARE (CBL & ASSOCIATES LIMITED PARTNERSHIP) | 62-1542285 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
CBL & Associates Properties, Inc. | Yes x | No o | |
CBL & Associates Limited Partnership | Yes x | No o |
CBL & Associates Properties, Inc. | Yes x | No o | |
CBL & Associates Limited Partnership | Yes x | No o |
CBL & Associates Properties, Inc. | |||
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller Reporting Company o |
CBL & Associates Limited Partnership | |||
Large accelerated filer o | Accelerated filer o | Non-accelerated filer x | Smaller Reporting Company o |
CBL & Associates Properties, Inc. | Yes o | No x | |
CBL & Associates Limited Partnership | Yes o | No x |
• | enhances investors' understanding of the Company and the Operating Partnership by enabling investors to view the business as a whole in the same manner that management views and operates the business; |
• | eliminates duplicative disclosure and provides a more streamlined and readable presentation, since a substantial portion of the disclosure applies to both the Company and the Operating Partnership; and |
• | creates time and cost efficiencies through the preparation of one combined report instead of two separate reports. |
• | condensed consolidated financial statements; |
• | certain accompanying notes to condensed consolidated financial statements, including Note 5 - Unconsolidated Affiliates, Redeemable Interests, Noncontrolling Interests and Cost Method Investments; Note 6 - Mortgage and Other Indebtedness; Note 7 - Comprehensive Income; and Note 11 - Earnings Per Share and Earnings Per Unit; |
• | controls and procedures in Item 4 of Management's Discussion and Analysis; and |
• | certifications of the Chief Executive Officer and Chief Financial Officer included as Exhibits 31.1 through 32.4. |
PART I | FINANCIAL INFORMATION | |
CBL & Associates Properties, Inc. | ||
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2014 and 2013 | ||
CBL & Associates Limited Partnership | ||
Condensed Consolidated Statements of Capital for the Three Months Ended March 31, 2014 and 2013 | ||
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2014 and 2013 | ||
CBL & Associates Properties, Inc. and CBL & Associates Limited Partnership | ||
Management's Discussion and Analysis of Financial Condition and Results of Operations | ||
ASSETS | March 31, 2014 | December 31, 2013 | |||||
Real estate assets: | |||||||
Land | $ | 854,711 | $ | 858,619 | |||
Buildings and improvements | 7,069,967 | 7,125,512 | |||||
7,924,678 | 7,984,131 | ||||||
Accumulated depreciation | (2,069,964 | ) | (2,056,357 | ) | |||
5,854,714 | 5,927,774 | ||||||
Developments in progress | 157,879 | 139,383 | |||||
Net investment in real estate assets | 6,012,593 | 6,067,157 | |||||
Cash and cash equivalents | 56,190 | 65,500 | |||||
Receivables: | |||||||
Tenant, net of allowance for doubtful accounts of $2,251 and $2,379 in 2014 and 2013, respectively | 76,111 | 79,899 | |||||
Other, net of allowance for doubtful accounts of $1,249 and $1,241 in 2014 and 2013, respectively | 19,001 | 23,343 | |||||
Mortgage and other notes receivable | 30,201 | 30,424 | |||||
Investments in unconsolidated affiliates | 276,710 | 277,146 | |||||
Intangible lease assets and other assets | 233,043 | 242,502 | |||||
$ | 6,703,849 | $ | 6,785,971 | ||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||||||
Mortgage and other indebtedness | $ | 4,799,817 | $ | 4,857,523 | |||
Accounts payable and accrued liabilities | 305,924 | 333,875 | |||||
Total liabilities | 5,105,741 | 5,191,398 | |||||
Commitments and contingencies (Notes 5 and 12) | |||||||
Redeemable noncontrolling partnership interests | 34,881 | 34,639 | |||||
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, 170,266,206 and 170,048,144 issued and outstanding in 2014 and 2013, respectively | 1,703 | 1,700 | |||||
Additional paid-in capital | 1,967,970 | 1,967,644 | |||||
Accumulated other comprehensive income | 7,754 | 6,325 | |||||
Dividends in excess of cumulative earnings | (568,426 | ) | (570,781 | ) | |||
Total shareholders' equity | 1,409,026 | 1,404,913 | |||||
Noncontrolling interests | 154,201 | 155,021 | |||||
Total equity | 1,563,227 | 1,559,934 | |||||
$ | 6,703,849 | $ | 6,785,971 |
CBL & Associates Properties, Inc. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
REVENUES: | |||||||
Minimum rents | $ | 169,277 | $ | 165,418 | |||
Percentage rents | 3,606 | 4,716 | |||||
Other rents | 5,282 | 5,144 | |||||
Tenant reimbursements | 72,218 | 72,282 | |||||
Management, development and leasing fees | 3,135 | 3,075 | |||||
Other | 7,725 | 7,847 | |||||
Total revenues | 261,243 | 258,482 | |||||
OPERATING EXPENSES: | |||||||
Property operating | 40,011 | 39,133 | |||||
Depreciation and amortization | 69,083 | 69,056 | |||||
Real estate taxes | 21,347 | 22,416 | |||||
Maintenance and repairs | 16,165 | 14,190 | |||||
General and administrative | 14,773 | 13,424 | |||||
Loss on impairment | 17,150 | — | |||||
Other | 6,545 | 6,656 | |||||
Total operating expenses | 185,074 | 164,875 | |||||
Income from operations | 76,169 | 93,607 | |||||
Interest and other income | 1,528 | 727 | |||||
Interest expense | (60,506 | ) | (59,824 | ) | |||
Gain on extinguishment of debt | 42,660 | — | |||||
Gain on sales of real estate assets | 1,154 | 543 | |||||
Equity in earnings of unconsolidated affiliates | 3,684 | 2,619 | |||||
Income tax (provision) benefit | (397 | ) | 174 | ||||
Income from continuing operations | 64,292 | 37,846 | |||||
Operating income (loss) of discontinued operations | (499 | ) | 1,258 | ||||
Gain (loss) on discontinued operations | (17 | ) | 781 | ||||
Net income | 63,776 | 39,885 | |||||
Net income attributable to noncontrolling interests in: | |||||||
Operating Partnership | (7,651 | ) | (3,491 | ) | |||
Other consolidated subsidiaries | (831 | ) | (6,081 | ) | |||
Net income attributable to the Company | 55,294 | 30,313 | |||||
Preferred dividends | (11,223 | ) | (11,223 | ) | |||
Net income attributable to common shareholders | $ | 44,071 | $ | 19,090 |
CBL & Associates Properties, Inc. Condensed Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) (Continued) | |||||||
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Basic and diluted per share data attributable to common shareholders: | |||||||
Income from continuing operations, net of preferred dividends | $ | 0.26 | $ | 0.11 | |||
Discontinued operations | — | 0.01 | |||||
Net income attributable to common shareholders | $ | 0.26 | $ | 0.12 | |||
Weighted-average common and potential dilutive common shares outstanding | 170,196 | 161,540 | |||||
Amounts attributable to common shareholders: | |||||||
Income from continuing operations, net of preferred dividends | $ | 44,511 | $ | 17,366 | |||
Discontinued operations | (440 | ) | 1,724 | ||||
Net income attributable to common shareholders | $ | 44,071 | $ | 19,090 | |||
Dividends declared per common share | $ | 0.245 | $ | 0.230 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Net income | $ | 63,776 | $ | 39,885 | |||
Other comprehensive income: | |||||||
Unrealized holding gain on available-for-sale securities | 1,001 | 764 | |||||
Unrealized loss on hedging instruments | (144 | ) | (281 | ) | |||
Reclassification to net income of hedging loss | 548 | 557 | |||||
Total other comprehensive income | 1,405 | 1,040 | |||||
Comprehensive income | 65,181 | 40,925 | |||||
Comprehensive income attributable to noncontrolling interests in: | |||||||
Operating Partnership | (7,627 | ) | (3,667 | ) | |||
Other consolidated subsidiaries | (831 | ) | (6,081 | ) | |||
Comprehensive income attributable to the Company | $ | 56,723 | $ | 31,177 |
Equity | |||||||||||||||||||||||||||||||||||
Shareholders' Equity | |||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Partnership Interests | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Dividends in Excess of Cumulative Earnings | Total Shareholders' Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||
Balance, January 1, 2013 | $ | 40,248 | $ | 25 | $ | 1,613 | $ | 1,773,630 | $ | 6,986 | $ | (453,561 | ) | $ | 1,328,693 | $ | 192,404 | $ | 1,521,097 | ||||||||||||||||
Net income | 788 | — | — | — | — | 30,313 | 30,313 | 3,698 | 34,011 | ||||||||||||||||||||||||||
Other comprehensive income | 10 | — | — | — | 864 | — | 864 | 166 | 1,030 | ||||||||||||||||||||||||||
Dividends declared - common stock | — | — | — | — | — | (37,713 | ) | (37,713 | ) | — | (37,713 | ) | |||||||||||||||||||||||
Dividends declared - preferred stock | — | — | — | — | — | (11,223 | ) | (11,223 | ) | — | (11,223 | ) | |||||||||||||||||||||||
Issuances of 2,096,655 shares of common stock and restricted common stock | — | — | 21 | 43,848 | — | — | 43,869 | — | 43,869 | ||||||||||||||||||||||||||
Cancellation of 20,644 shares of restricted common stock | — | — | — | (402 | ) | — | — | (402 | ) | — | (402 | ) | |||||||||||||||||||||||
Amortization of deferred compensation | — | — | — | 1,464 | — | — | 1,464 | — | 1,464 | ||||||||||||||||||||||||||
Distributions to noncontrolling interests | (1,744 | ) | — | — | — | — | — | — | (8,544 | ) | (8,544 | ) | |||||||||||||||||||||||
Adjustment for noncontrolling interests | 157 | — | — | (10,909 | ) | — | — | (10,909 | ) | 10,752 | (157 | ) | |||||||||||||||||||||||
Adjustment to record redeemable noncontrolling interests at redemption value | 4,156 | — | — | (3,523 | ) | — | — | (3,523 | ) | (633 | ) | (4,156 | ) | ||||||||||||||||||||||
Balance, March 31, 2013 | $ | 43,615 | $ | 25 | $ | 1,634 | $ | 1,804,108 | $ | 7,850 | $ | (472,184 | ) | $ | 1,341,433 | $ | 197,843 | $ | 1,539,276 |
Equity | |||||||||||||||||||||||||||||||||||
Shareholders' Equity | |||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Partnership Interests | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Dividends in Excess of Cumulative Earnings | Total Shareholders' Equity | Noncontrolling Interests | Total Equity | |||||||||||||||||||||||||||
Balance, January 1, 2014 | $ | 34,639 | $ | 25 | $ | 1,700 | $ | 1,967,644 | $ | 6,325 | $ | (570,781 | ) | $ | 1,404,913 | $ | 155,021 | $ | 1,559,934 | ||||||||||||||||
Net income | 1,146 | — | — | — | — | 55,294 | 55,294 | 7,336 | 62,630 | ||||||||||||||||||||||||||
Other comprehensive income (loss) | (1 | ) | — | — | — | 1,429 | — | 1,429 | (23 | ) | 1,406 | ||||||||||||||||||||||||
Dividends declared - common stock | — | — | — | — | — | (41,716 | ) | (41,716 | ) | — | (41,716 | ) | |||||||||||||||||||||||
Dividends declared - preferred stock | — | — | — | — | — | (11,223 | ) | (11,223 | ) | — | (11,223 | ) | |||||||||||||||||||||||
Issuances of 238,693 shares of common stock and restricted common stock | — | — | 3 | 540 | — | — | 543 | — | 543 | ||||||||||||||||||||||||||
Cancellation of 20,631 shares of restricted common stock | — | — | — | (347 | ) | — | — | (347 | ) | — | (347 | ) | |||||||||||||||||||||||
Amortization of deferred compensation | — | — | — | 1,467 | — | — | 1,467 | — | 1,467 | ||||||||||||||||||||||||||
Distributions to noncontrolling interests | (1,593 | ) | — | — | — | — | — | — | (8,778 | ) | (8,778 | ) | |||||||||||||||||||||||
Adjustment for noncontrolling interests | 756 | — | — | (1,350 | ) | — | — | (1,350 | ) | 594 | (756 | ) | |||||||||||||||||||||||
Adjustment to record redeemable noncontrolling interests at redemption value | (66 | ) | — | — | 16 | — | — | 16 | 51 | 67 | |||||||||||||||||||||||||
Balance, March 31, 2014 | $ | 34,881 | $ | 25 | $ | 1,703 | $ | 1,967,970 | $ | 7,754 | $ | (568,426 | ) | $ | 1,409,026 | $ | 154,201 | $ | 1,563,227 |
CBL & Associates Properties, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 63,776 | $ | 39,885 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 69,083 | 71,662 | |||||
Net amortization of deferred finance costs and debt premiums | 2,234 | 1,586 | |||||
Net amortization of intangible lease assets and liabilities | 129 | (314 | ) | ||||
Gain on sales of real estate assets | (1,154 | ) | (543 | ) | |||
(Gain) loss on sale of discontinued operations | 17 | (781 | ) | ||||
Write-off of development projects | 1 | 2 | |||||
Share-based compensation expense | 1,974 | 1,464 | |||||
Loss on impairment | 17,150 | — | |||||
Loss on impairment from discontinued operations | 681 | — | |||||
Gain on extinguishment of debt | (42,660 | ) | — | ||||
Equity in earnings of unconsolidated affiliates | (3,684 | ) | (2,619 | ) | |||
Distributions of earnings from unconsolidated affiliates | 3,035 | 4,465 | |||||
Provision for doubtful accounts | 1,206 | 698 | |||||
Change in deferred tax accounts | 449 | 2,661 | |||||
Changes in: | |||||||
Tenant and other receivables | 6,444 | 102 | |||||
Other assets | (6,931 | ) | — | ||||
Accounts payable and accrued liabilities | (24,804 | ) | (50,763 | ) | |||
Net cash provided by operating activities | 86,946 | 67,505 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Additions to real estate assets | (53,091 | ) | (42,567 | ) | |||
Reductions to restricted cash | 7,669 | 1,697 | |||||
Proceeds from sales of real estate assets | 2,127 | 44,328 | |||||
Payments received on mortgage and other notes receivable | 224 | 3,630 | |||||
Proceeds from sales of investments and available-for-sale securities | — | 11,002 | |||||
Additional investments in and advances to unconsolidated affiliates | (3,449 | ) | (20,588 | ) | |||
Distributions in excess of equity in earnings of unconsolidated affiliates | 5,414 | 4,343 | |||||
Changes in other assets | (1,702 | ) | (1,816 | ) | |||
Net cash (used in) provided by investing activities | (42,808 | ) | 29 |
CBL & Associates Properties, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) (Continued) | |||||||
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from mortgage and other indebtedness | $ | 219,836 | $ | 247,209 | |||
Principal payments on mortgage and other indebtedness | (208,752 | ) | (307,697 | ) | |||
Additions to deferred financing costs | (62 | ) | (651 | ) | |||
Prepayment fees on extinguishment of debt | (1,249 | ) | — | ||||
Proceeds from issuances of common stock | 35 | 43,869 | |||||
Distributions to noncontrolling interests | (10,371 | ) | (15,224 | ) | |||
Dividends paid to holders of preferred stock | (11,223 | ) | (11,223 | ) | |||
Dividends paid to common shareholders | (41,662 | ) | (35,485 | ) | |||
Net cash used in financing activities | (53,448 | ) | (79,202 | ) | |||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (9,310 | ) | (11,668 | ) | |||
CASH AND CASH EQUIVALENTS, beginning of period | 65,500 | 78,248 | |||||
CASH AND CASH EQUIVALENTS, end of period | $ | 56,190 | $ | 66,580 | |||
SUPPLEMENTAL INFORMATION: | |||||||
Cash paid for interest, net of amounts capitalized | $ | 53,722 | $ | 57,775 |
ASSETS | March 31, 2014 | December 31, 2013 | |||||
Real estate assets: | |||||||
Land | $ | 854,711 | $ | 858,619 | |||
Buildings and improvements | 7,069,967 | 7,125,512 | |||||
7,924,678 | 7,984,131 | ||||||
Accumulated depreciation | (2,069,964 | ) | (2,056,357 | ) | |||
5,854,714 | 5,927,774 | ||||||
Developments in progress | 157,879 | 139,383 | |||||
Net investment in real estate assets | 6,012,593 | 6,067,157 | |||||
Cash and cash equivalents | 56,168 | 65,486 | |||||
Receivables: | |||||||
Tenant, net of allowance for doubtful accounts of $2,251 and $2,379 in 2014 and 2013, respectively | 76,111 | 79,899 | |||||
Other, net of allowance for doubtful accounts of $1,249 and $1,241 in 2014 and 2013, respectively | 19,001 | 23,343 | |||||
Mortgage and other notes receivable | 30,201 | 30,424 | |||||
Investments in unconsolidated affiliates | 277,267 | 277,701 | |||||
Intangible lease assets and other assets | 232,923 | 242,383 | |||||
$ | 6,704,264 | $ | 6,786,393 | ||||
LIABILITIES, REDEEMABLE INTERESTS AND CAPITAL | |||||||
Mortgage and other indebtedness | $ | 4,799,817 | $ | 4,857,523 | |||
Accounts payable and accrued liabilities | 305,876 | 333,876 | |||||
Total liabilities | 5,105,693 | 5,191,399 | |||||
Commitments and contingencies (Notes 5 and 12) | |||||||
Redeemable interests: | |||||||
Redeemable noncontrolling interests | 6,454 | 5,883 | |||||
Redeemable common units | 28,427 | 28,756 | |||||
Total redeemable interests | 34,881 | 34,639 | |||||
Partners' capital: | |||||||
Preferred units | 565,212 | 565,212 | |||||
Common units: | |||||||
General partner | 9,885 | 9,866 | |||||
Limited partners | 964,054 | 961,175 | |||||
Accumulated other comprehensive income | 6,331 | 4,923 | |||||
Total partners' capital | 1,545,482 | 1,541,176 | |||||
Noncontrolling interests | 18,208 | 19,179 | |||||
Total capital | 1,563,690 | 1,560,355 | |||||
$ | 6,704,264 | $ | 6,786,393 |
CBL & Associates Limited Partnership Condensed Consolidated Statements of Operations (In thousands, except per unit data) (Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
REVENUES: | |||||||
Minimum rents | $ | 169,277 | $ | 165,418 | |||
Percentage rents | 3,606 | 4,716 | |||||
Other rents | 5,282 | 5,144 | |||||
Tenant reimbursements | 72,218 | 72,282 | |||||
Management, development and leasing fees | 3,135 | 3,075 | |||||
Other | 7,725 | 7,847 | |||||
Total revenues | 261,243 | 258,482 | |||||
OPERATING EXPENSES: | |||||||
Property operating | 40,011 | 39,133 | |||||
Depreciation and amortization | 69,083 | 69,056 | |||||
Real estate taxes | 21,347 | 22,416 | |||||
Maintenance and repairs | 16,165 | 14,190 | |||||
General and administrative | 14,773 | 13,424 | |||||
Loss on impairment | 17,150 | — | |||||
Other | 6,545 | 6,656 | |||||
Total operating expenses | 185,074 | 164,875 | |||||
Income from operations | 76,169 | 93,607 | |||||
Interest and other income | 1,528 | 727 | |||||
Interest expense | (60,506 | ) | (59,824 | ) | |||
Gain on extinguishment of debt | 42,660 | — | |||||
Gain on sales of real estate assets | 1,154 | 543 | |||||
Equity in earnings of unconsolidated affiliates | 3,684 | 2,619 | |||||
Income tax (provision) benefit | (397 | ) | 174 | ||||
Income from continuing operations | 64,292 | 37,846 | |||||
Operating income (loss) of discontinued operations | (499 | ) | 1,258 | ||||
Gain (loss) on discontinued operations | (17 | ) | 781 | ||||
Net income | 63,776 | 39,885 | |||||
Net income attributable to noncontrolling interests | (831 | ) | (6,081 | ) | |||
Net income attributable to the Operating Partnership | 62,945 | 33,804 | |||||
Distributions to preferred unitholders | (11,223 | ) | (11,223 | ) | |||
Net income attributable to common unitholders | $ | 51,722 | $ | 22,581 |
CBL & Associates Limited Partnership Condensed Consolidated Statements of Operations (In thousands, except per unit data) (Unaudited) (Continued) | |||||||
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Basic and diluted per unit data attributable to common unitholders: | |||||||
Income from continuing operations, net of preferred distributions | $ | 0.26 | $ | 0.11 | |||
Discontinued operations | — | 0.01 | |||||
Net income attributable to common unitholders | $ | 0.26 | $ | 0.12 | |||
Weighted-average common and potential dilutive common units outstanding | 199,741 | 191,085 | |||||
Amounts attributable to common unitholders: | |||||||
Income from continuing operations, net of preferred distributions | $ | 52,162 | $ | 20,857 | |||
Discontinued operations | (440 | ) | 1,724 | ||||
Net income attributable to common unitholders | $ | 51,722 | $ | 22,581 | |||
Distributions declared per common unit | $ | 0.253 | $ | 0.239 |
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
Net income | $ | 63,776 | $ | 39,885 | |||
Other comprehensive income: | |||||||
Unrealized holding gain on available-for-sale securities | 1,003 | 764 | |||||
Unrealized loss on hedging instruments | (144 | ) | (281 | ) | |||
Reclassification to net income of hedging loss | 548 | 557 | |||||
Total other comprehensive income | 1,407 | 1,040 | |||||
Comprehensive income | 65,183 | 40,925 | |||||
Comprehensive income attributable to noncontrolling interests | (831 | ) | (6,081 | ) | |||
Comprehensive income of the Operating Partnership | $ | 64,352 | $ | 34,844 |
Redeemable Interests | Number of | Common Units | |||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | Redeemable Common Units | Total Redeemable Interests | Preferred Units | Common Units | Preferred Units | General Partner | Limited Partners | Accumulated Other Comprehensive Income | Total Partners' Capital | Noncontrolling Interests | Total Capital | ||||||||||||||||||||||||||||||||||
Balance, January 1, 2013 | $ | 6,413 | $ | 33,835 | $ | 40,248 | 25,050 | 190,855 | $ | 565,212 | $ | 9,904 | $ | 877,363 | $ | 5,685 | $ | 1,458,164 | $ | 63,496 | $ | 1,521,660 | |||||||||||||||||||||||
Net income | 604 | 184 | 788 | — | — | 11,223 | 240 | 22,157 | — | 33,620 | 391 | 34,011 | |||||||||||||||||||||||||||||||||
Other comprehensive income | — | 10 | 10 | — | — | — | — | — | 1,030 | 1,030 | — | 1,030 | |||||||||||||||||||||||||||||||||
Distributions declared - common units | — | (1,145 | ) | (1,145 | ) | — | — | — | (463 | ) | (44,469 | ) | — | (44,932 | ) | — | (44,932 | ) | |||||||||||||||||||||||||||
Distributions declared - preferred units | — | — | — | — | — | (11,223 | ) | — | — | — | (11,223 | ) | — | (11,223 | ) | ||||||||||||||||||||||||||||||
Issuances of common units | — | — | — | — | 2,099 | — | — | 43,869 | — | 43,869 | — | 43,869 | |||||||||||||||||||||||||||||||||
Cancellation of restricted common units | — | — | — | — | (21 | ) | — | — | (402 | ) | — | (402 | ) | — | (402 | ) | |||||||||||||||||||||||||||||
Amortization of deferred compensation | — | — | — | — | — | — | 1,464 | — | 1,464 | — | 1,464 | ||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (599 | ) | — | (599 | ) | — | — | — | — | — | — | — | (1,325 | ) | (1,325 | ) | |||||||||||||||||||||||||||||
Allocation of partners' capital | — | 157 | 157 | — | — | — | (124 | ) | (706 | ) | — | (830 | ) | — | (830 | ) | |||||||||||||||||||||||||||||
Adjustment to record redeemable interests at redemption value | (376 | ) | 4,532 | 4,156 | — | — | — | (44 | ) | (4,112 | ) | — | (4,156 | ) | — | (4,156 | ) | ||||||||||||||||||||||||||||
Balance, March 31, 2013 | $ | 6,042 | $ | 37,573 | $ | 43,615 | 25,050 | 192,933 | $ | 565,212 | $ | 9,513 | $ | 895,164 | $ | 6,715 | $ | 1,476,604 | $ | 62,562 | $ | 1,539,166 |
Redeemable Interests | Number of | Common Units | |||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interests | Redeemable Common Units | Total Redeemable Interests | Preferred Units | Common Units | Preferred Units | General Partner | Limited Partners | Accumulated Other Comprehensive Income | Total Partners' Capital | Noncontrolling Interests | Total Capital | ||||||||||||||||||||||||||||||||||
Balance, January 1, 2014 | $ | 5,883 | $ | 28,756 | $ | 34,639 | 25,050 | 199,593 | $ | 565,212 | $ | 9,866 | $ | 961,175 | $ | 4,923 | $ | 1,541,176 | $ | 19,179 | $ | 1,560,355 | |||||||||||||||||||||||
Net income | 742 | 404 | 1,146 | — | — | 11,223 | 526 | 50,792 | — | 62,541 | 89 | 62,630 | |||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | (1 | ) | (1 | ) | — | — | — | — | — | 1,408 | 1,408 | — | 1,408 | |||||||||||||||||||||||||||||||
Distributions declared - common units | — | (1,143 | ) | (1,143 | ) | — | — | — | (493 | ) | (48,953 | ) | — | (49,446 | ) | — | (49,446 | ) | |||||||||||||||||||||||||||
Distributions declared - preferred units | — | — | — | — | — | (11,223 | ) | — | — | — | (11,223 | ) | — | (11,223 | ) | ||||||||||||||||||||||||||||||
Issuances of common units | — | — | — | — | 240 | — | 5 | 538 | — | 543 | — | 543 | |||||||||||||||||||||||||||||||||
Cancellation of common units | — | — | — | — | (21 | ) | — | — | (347 | ) | — | (347 | ) | — | (347 | ) | |||||||||||||||||||||||||||||
Amortization of deferred compensation | — | — | — | — | — | — | — | 1,467 | — | 1,467 | — | 1,467 | |||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests | (450 | ) | — | (450 | ) | — | — | — | — | — | — | — | (1,060 | ) | (1,060 | ) | |||||||||||||||||||||||||||||
Allocation of partners' capital | — | 756 | 756 | — | — | — | (20 | ) | (684 | ) | — | (704 | ) | — | (704 | ) | |||||||||||||||||||||||||||||
Adjustment to record redeemable interests at redemption value | 279 | (345 | ) | (66 | ) | — | — | — | 1 | 66 | — | 67 | — | 67 | |||||||||||||||||||||||||||||||
Balance, March 31, 2014 | $ | 6,454 | $ | 28,427 | $ | 34,881 | 25,050 | 199,812 | $ | 565,212 | $ | 9,885 | $ | 964,054 | $ | 6,331 | $ | 1,545,482 | $ | 18,208 | $ | 1,563,690 |
CBL & Associates Limited Partnership Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) | |||||||
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 63,776 | $ | 39,885 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 69,083 | 71,662 | |||||
Net amortization of deferred finance costs and debt premiums | 2,234 | 1,586 | |||||
Net amortization of intangible lease assets and liabilities | 129 | (314 | ) | ||||
Gain on sales of real estate assets | (1,154 | ) | (543 | ) | |||
(Gain) loss on sale of discontinued operations | 17 | (781 | ) | ||||
Write-off of development projects | 1 | 2 | |||||
Share-based compensation expense | 1,974 | 1,464 | |||||
Loss on impairment | 17,150 | — | |||||
Loss on impairment from discontinued operations | 681 | — | |||||
Gain on extinguishment of debt | (42,660 | ) | — | ||||
Equity in earnings of unconsolidated affiliates | (3,684 | ) | (2,619 | ) | |||
Distributions of earnings from unconsolidated affiliates | 3,035 | 4,465 | |||||
Provision for doubtful accounts | 1,206 | 698 | |||||
Change in deferred tax accounts | 449 | 2,661 | |||||
Changes in: | |||||||
Tenant and other receivables | 6,444 | 102 | |||||
Other assets | (6,931 | ) | 61 | ||||
Accounts payable and accrued liabilities | (24,812 | ) | (50,852 | ) | |||
Net cash provided by operating activities | 86,938 | 67,477 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Additions to real estate assets | (53,091 | ) | (42,567 | ) | |||
Reductions to restricted cash | 7,669 | 1,697 | |||||
Proceeds from sales of real estate assets | 2,127 | 44,328 | |||||
Payments received on mortgage and other notes receivable | 224 | 3,630 | |||||
Proceeds from sales of investments and available-for-sale securities | — | 11,002 | |||||
Additional investments in and advances to unconsolidated affiliates | (3,449 | ) | (20,590 | ) | |||
Distributions in excess of equity in earnings of unconsolidated affiliates | 5,414 | 4,343 | |||||
Changes in other assets | (1,702 | ) | (1,816 | ) | |||
Net cash (used in) provided by investing activities | (42,808 | ) | 27 |
CBL & Associates Limited Partnership Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) (Continued) | |||||||
Three Months Ended March 31, | |||||||
2014 | 2013 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from mortgage and other indebtedness | $ | 219,836 | $ | 247,209 | |||
Principal payments on mortgage and other indebtedness | (208,752 | ) | (307,697 | ) | |||
Additions to deferred financing costs | (62 | ) | (651 | ) | |||
Prepayment fees on extinguishment of debt | (1,249 | ) | — | ||||
Proceeds from issuances of common units | 35 | 43,869 | |||||
Distributions to noncontrolling interests | (1,510 | ) | (7,125 | ) | |||
Distributions to preferred unitholders | (11,223 | ) | (11,223 | ) | |||
Distributions to common unitholders | (50,523 | ) | (43,584 | ) | |||
Net cash used in financing activities | (53,448 | ) | (79,202 | ) | |||
NET CHANGE IN CASH AND CASH EQUIVALENTS | (9,318 | ) | (11,698 | ) | |||
CASH AND CASH EQUIVALENTS, beginning of period | 65,486 | 78,244 | |||||
CASH AND CASH EQUIVALENTS, end of period | $ | 56,168 | $ | 66,546 | |||
SUPPLEMENTAL INFORMATION: | |||||||
Cash paid for interest, net of amounts capitalized | $ | 53,722 | $ | 57,775 |
Malls (1) | Associated Centers | Community Centers | Office Buildings (2) | |||||||||
Controlling interests | 74 | 25 | 7 | 8 | ||||||||
Noncontrolling interests (3) | 9 | 4 | 5 | 5 | ||||||||
Total | 83 | 29 | 12 | 13 |
(1) | Category consists of regional malls, open-air centers and outlet centers (including one mixed use center). |
(2) | Includes CBL's corporate office building. |
(3) | The Operating Partnership accounts for these investments using the equity method because one or more of the other partners have substantive participating rights. |
Controlling Interests | Noncontrolling Interests | ||||||||
Malls | Associated Centers | Community Centers | |||||||
Development | 1 | — | — | ||||||
Expansions | 3 | — | 1 | ||||||
Redevelopment | 4 | 1 | — |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Fair Value at March 31, 2014 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Available-for-sale securities | $ | 14,974 | $ | 14,974 | $ | — | $ | — | |||||||
Liabilities: | |||||||||||||||
Interest rate swaps | $ | 3,603 | $ | — | $ | 3,603 | $ | — |
Fair Value Measurements at Reporting Date Using | |||||||||||||||
Fair Value at December 31, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Assets: | |||||||||||||||
Available-for-sale securities | $ | 13,973 | $ | 13,973 | $ | — | $ | — | |||||||
Interest rate cap | — | — | — | — | |||||||||||
Liabilities: | |||||||||||||||
Interest rate swaps | $ | 4,007 | — | $ | 4,007 | $ | — |
Gross Unrealized | |||||||||||||||
Adjusted Cost | Gains | Losses | Fair Value | ||||||||||||
March 31, 2014: | |||||||||||||||
Common stocks | $ | 4,195 | $ | 10,779 | $ | — | $ | 14,974 |
Gross Unrealized | |||||||||||||||
Adjusted Cost | Gains | Losses | Fair Value | ||||||||||||
December 31, 2013: | |||||||||||||||
Common stocks | $ | 4,195 | $ | 9,778 | $ | — | $ | 13,973 |