Profile: CBL & Associates Properties Inc (CBL.N)
12 Mar 2014
CBL & Associates Properties, Inc. (CBL), incorporated on July 13, 1993, is a self-managed, self-administered, fully integrated real estate investment trust (REIT).The Company owns, develops, acquires, leases, manages, and operates regional shopping malls, open-air centers, associated centers, community centers and office properties. Its properties are located in 27 states, but are primarily in the southeastern and midwestern United States. It conducts substantially all of its business through the Operating Partnership. It is the 100% owner of two qualified REIT subsidiaries, CBL Holdings I, Inc. and CBL Holdings II, Inc. CBL Holdings I, Inc. is the sole general partner of the Operating Partnership. At December 31, 2012, CBL Holdings I, Inc. owned a 1.0% general partner interest and CBL Holdings II, Inc. owned a 83.5% limited partner interest in the Operating Partnership, for a combined interest held by them of 84.5%. In April 2013, it acquired the remaining 51% interest in the Kirkwood Mall. In July 2013, CBL & Associates Properties Inc acquired two Sears locations at CBL's Fayette Mall in Lexington, KY, and CoolSprings Galleria in Nashville, TN. In September 2013, CBL & Associates Properties, Inc closed on the sale of three malls and three related associated centers in a portfolio transaction.
In December 2012, it acquired the remaining 40.0% interests in Imperial Valley Mall L.P., Imperial Valley Peripheral L.P. and Imperial Valley Commons L.P. in El Centro, Canada from its joint venture partner. In December 2012, it acquired a 49.0% joint venture interest in Kirkwood Mall in Bismarck, North Dakota. In May 2012, it acquired Dakota Square Mall in Minot, North Dakota. In April 2012, it acquired a 75.0% joint venture interest in The Outlet Shoppes at El Paso, an outlet shopping center located in El Paso. In December 2012, it sold Willowbrook Plaza, a community center located in Houston, Texas. In October 2012, it sold Towne Mall, located in Franklin, Ohio and Hickory Hollow Mall, located in Antioch, Tennessee. In July 2012, it sold Massard Crossing, a community center located in Fort Smith, Arkansas. In March 2012, it completed the sale of the second phase of Settlers Ridge, a community center located in Robinson Township, Port Angeles. In January 2012, it sold Oak Hollow Square, a community center located in High Point, North California.
As of December 31, 2012, the Company owned controlling interests in 77 regional malls/open-air and outlet centers (including one mixed-use center) and noncontrolling interests in nine regional malls (the Malls), controlling interests in 28 associated centers and noncontrolling interests in four associated centers (the Associated Centers), controlling interests in six community centers and noncontrolling interests in four community centers (the Community Centers), and controlling interests in 13 office buildings which include its corporate office building and noncontrolling interests in seven office buildings (the Office Buildings); controlling interests in the development of one outlet center owned in a 75%/25% joint venture, one community center, one mall expansion, and two mall redevelopments that are under construction at December 31, 2012 (the Construction Properties), as well as options to acquire certain shopping center development sites, and mortgages on six properties, each of which is collateralized by either a mortgage, a second mortgage or by assignment of 100% of the ownership interests in the underlying real estate and related improvements (the Mortgages).
The Malls are primarily located in middle markets because they are the only, or the dominant, regional mall in their respective trade areas. The Malls are generally anchored by two or more department stores and a wide variety of mall stores. Anchor tenants own or lease their stores and non-anchor stores (20,000 square feet or less) lease their locations. Additional freestanding stores and restaurants that either own or lease their stores are typically located along the perimeter of the Malls' parking areas. Malls are classified into three categories: Stabilized Malls - Malls that have completed their initial lease-up and have been open for more than three complete calendar years; Non-stabilized Malls - Malls that are in their initial lease-up phase. After three complete calendar years of operation, they are reclassified on January 1 of the fourth calendar year to the stabilized Mall category, and Non-core Malls - Malls where it has determined that the current format of the Property no longer represents the use of the Property and is in the process of evaluating alternative strategies for the Property, which may include redevelopment or an alternative retail or non-retail format. Columbia Place was its only non-core Mall as of December 31, 2012.
The Company owns the land underlying each Mall in fee simple interest, except for Walnut Square, WestGate Mall, St. Clair Square, Brookfield Square, Bonita Lakes Mall, Meridian Mall, Stroud Mall, Wausau Center, Chapel Hill Mall and Eastgate Mall. It leases all or a portion of the land at each of these Malls subject to long-term ground leases. The Malls have approximately 8,160 mall stores. National and regional retail chains (excluding local franchises) lease approximately 81.4% of the occupied mall store gross leasable area (GLA). Although mall stores occupy only 29.3% of the total mall GLA (the remaining 70.7% is occupied by anchors), the Malls received 83.0% of their revenues from mall stores for the year ended December 31, 2012.
CBL & Associates Properties Inc
CBL Center, Suite 500,
2030 Hamilton Place Boulevard
CHATTANOOGA TN 37421