CBL & Associates Properties, Inc. announced results for the second quarter ended June 30.
“This was a strong quarter for CBL in all respects, and we exceeded expectations in all of our primary metrics,” said Stephen Lebovitz, CBL’s president and chief executive officer. “Occupancy improved year-over-year and, sequentially, rental spreads were up nicely on both new and renewal leasing and sales in the mall portfolio continued their positive trend. We enter the second half of the year with a more positive outlook. The NOI and FFO growth we generated in the quarter has enabled us to raise our full year 2012 guidance, while the significant refinancing activity has addressed almost all of our 2012 maturities and provided significant excess loan proceeds.
“We successfully sourced attractive growth opportunities in the quarter that complement our outlet center development program. The acquisition of Dakota Square Mall and the long-term contract to manage six malls for Starwood will enable us to leverage our leasing and management capabilities. With nearly full availability on our credit facilities and potential non-core disposition activity planned, we are well-positioned to pursue additional growth opportunities and fund capital needs for the foreseeable future.”
FFO allocable to common shareholders for the second quarter of 2012 was $79,950,000, or $0.53 per diluted share, compared with $73,763,000, or $0.50 per diluted share, for the second quarter of 2011. FFO of the operating partnership for the second quarter of 2012 was $100,782,000, compared with $94,653,000, for the second quarter 2011.
Net income attributable to common shareholders for the second quarter of 2012 was $18,797,000, or $0.12 per diluted share, compared with net income of $9,782,000, or $0.07 per diluted share for the second quarter of 2011.
Portfolio same-center net operating income (“NOI”), excluding lease termination fees, for the quarter ended June 30, 2012, increased 2.7% compared with an increase of 1.4% for the prior-year period. Same-center NOI, excluding lease terminations fees, for the six months ended June 30, 2012, increased 1.7% compared with an increase of 0.9% for the prior-year period.
- Average gross rent on stabilized mall leases signed during the second quarter of 2012 for tenants 10,000 square feet or less increased 10.2% over the prior gross rent per square foot.
- Same-store sales per square foot for mall tenants 10,000 square feet or less for stabilized malls for the rolling twelve months ended June 30, 2012, increased 4.0% to $341 per square foot compared with $328 per square foot in the prior year period. Same-store sales per square foot for mall tenants 10,000 square feet or less for stabilized malls year-to-date through June 30, 2012, increased 4.3%.
- Consolidated and unconsolidated variable rate debt of $933,993,000, as of June 30, 2012, represented 9.6% of the total market capitalization for the Company, compared with 13.0% in the prior-year period, and 17.2% of the Company's share of total consolidated and unconsolidated debt, compared with 22.1% in the prior-year period.