CBL and Associates Properties is a Real estate investment trust that makes money by developing and operating shopping malls in 27 states. About 80% of CBL's 159 properties are located in the midwestern and southeastern United States. The malls that CBL owns are both enclosed malls and open-air strip malls, as well as "lifestyle centers" which combine shopping, dining, and entertainment in one facility. Like other retail REITs, CBL's revenues come from tenant leases, rents that it collects based on tenants sales, advertising, and sales of both peripheral land and properties.[1][2]

Despite slowing consumer spending, in the first quarter of 2008 CBL increased its Funds From Operation by 2.3%. This can be attributed to the regional dominance CBL achieves by only building or acquiring malls in areas without other major retail centers, which creates stability in its revenue stream. CBL has continued to borrow against its assets (securing $400 million in loans in late April) to build and acquire new properties, with recently announced plans for new construction in Florida, Texas, Missouri, and Pennsylvania. Taking advantage of the current economic downturn to start developments at lower prices, CBL will be ready with a number of new malls to take advantage of an economic upturn.

Business Overview

CBL owns a stake in 150 properties in 27 states. This portfolio includes 84 regional malls/open-air shopping centers, 47 mixed commercial and residential centers, and 19 office buildings. These properties total to approximately 72 million sq. ft. of retail space, with an overall average sales per square foot of $364 and an occupancy of 93%. All of CBL's properties are built around one or more "Anchors." Anchors are major national retailers that serve as the primary attraction that brings many shoppers to the mall. CBL's top anchors include: J.C. Penney (JCP), Sears Holdings (SHLD), Dillard's (DDS), Macy's Inc. (M). Other important small store retailers include Foot Locker (FL), Limited Brands (LTD), Abercrombie & Fitch Company (ANF), and the Gap (GPS).

CBL's top 10 Tenants

Store % of CBL's Revenue
Limited Brands (LTD) 3.01%
Foot Locker (FL) 2.98%
Gap (GPS) 2.64%
Abercrombie & Fitch Company (ANF) 2.18%
AE Outfitters Retail Company(AEO) 1.97%
Signet Group (SIG) 1.85%
Finish Line (FINL) 1.65%
Zale (ZLC) 1.56%
Luxottica Group, S.p.A. (LUX) 1.56%
Genesco (GCO) 1.42%

CBL develops and acquires properties in middle sized markets under-served by existing malls and retailers. CBL does this by building malls in moderate sized cities that are surrounded by rural areas whose residents tend to go to this urban center for major purchases or other needs. Including a major retail "anchor" at every development helps to ensure these migrating shoppers go to CBL's mall.

CBL's 5 largest markets

City % of CBL's Revenue Earned in this market
Nashville, TN 5.2%
Pittsburgh, PA 4.5%
Overland Park, KS 3.5%
Madison, WI 3.0%
Chattanooga, TN 3.0%

In November of 2007, CBL paid $184.2 million to acquire 8 shopping centers and 12 office buildings in North Carolina from Starmount. CBL has also begun investing internationally by establishing joint ventures to build and acquire malls in the rapidly growing economies of China and Brazil.[5] Additionally, CBL has taken advantage of lower building costs during the recent economic downturn to begin construction on several new shopping centers in fast-growing regions where the company previously had not owned properties, such as Texas and Florida. Total investment in "new and expanded properties opened in 2007 was $323.4 million and the total investment upon completion in the Properties under construction as of December 31, 2007 is projected to be $427.6 million."[6]

Property Expansions Completed in 2007 and 2008

Property: type of expansion Location Sq. Feet Opening Date
The District at Valley View: shops Roanoke, VA 61,200 July 2007
Hartford Mall: lifestyle expansion Bel Air, MD 39,222 September 2007
The District at CherryVale Rockford, IL 84,541 Fall 2007
Brookfield Square: Mitchell's Fish Market Brookfield, WI 7,500 April 2007
Brookfield Square: Fresh Market Brookfield, WI 57,500 August 2007
Southpark Mall: Regal Cinema Colonial Heights, VA 68,242 July 2007
Coastal Grand: Old Navy Myrtle Beach, SC 23,269 October 2007
Gulf Coast Town Center: shops/Costco Ft. Myers, FL 595,990 Spring 2007
Southpark Mall: Foodcourt Colonial Heights, VA 17,150 Spring 2008
Coastal Grand: JCPenny Myrtle Beach, SC 103,395 Spring 2008
Coastal Grand: Ulta Cosmetics Myrtle Beach, SC 10,000 Spring 2008
Cary Towne Center: Mimi's Cafe Cary, NC 6,674 Spring 2008
Brookfield Square: Claim Jumpers Brookfield, WI 10,000 Fall 2008
Alamance Crossing: Theater/Shops Burlington, NC 82,997 Summer 2008


CBL's Property Portfolio

Property: Location CBL's Ownership Mall Sales per Sq. Ft. ($/sq.ft) Percentage of mall store space leased
Alamance Crossing: Burlington, NC 100% 94 80%
Coastal Grand: Myrtle Beach, SC 50% 366 97%
Gulf Coast Town Center: Ft. Myers, FL 50% 182 78%
Imperial Valley Mall: El Centro, CA 60% 353 95%
Southaven Towne Center: Southaven, MS 100% 299 100%
Arbor Place: Atlanta, GA 100% 370 99%
Asheville Mall: Asheville, NC 100% 360 95%
Bonita Lakes Mall: Meridian, MS 100% 264 97%
Brookfield Square: Brookfield, WI 100% 428 99%
Burnsville Center: Burnsville, MN 100% 372 97%
Cary Towne Center: Cary, NC 100% 292 95%
Chapel Hill Mall: Akron, OH 56.5% 302 96%
CherryVale Mall: Rockford, IL 100% 373 95%
Chesterfield Mall: Chesterfield, MO 100% 327 84%
Citadel Mall: Charleston, SC 100% 236 93%
College Square: Morristown, TN 100% 261 99%
Columbia Place: Columbia, SC 100% 232 96%
CoolSprings Galleria: Nashville, TN 100% 458 99%
Cross Creek Mall: Fayetteville, NC 100% 488 96%
East Towne Mall: Madison, WI 100% 338 95%
Eastgate Mall: Cincinnati, OH 100% 308 93%
Eastland Mall: Bloomington, IN 100% 328 92%
Fashion Square: Saginaw, MI 100% 291 95%
Fayette Mall: Lexington, KY 100% 505 98%
Foothills Mall: Maryville, TN 95% 262 93%
Friendly Shopping Center: Greensboro, NC 50% 418 82%
Frontier Mall: Cheyenne, WY 100% 271 97%
Georgia Square: Athens, GA 100% 264 97%
Governor's Square: Clarksville, TN 47.5% 325 90%
Greenbrier Mall: Chesapeake, VA 100% 362 92%
Hamilton Place: Chattanooga, TN 90% 398 99%
Hanes Mall: Winston-Salem, NC 100% 342 98%
Harford Mall: Bel Air, MD 100% 397 88%
Hickory Hollow Mall: Nashville, TN 100% 226 84%
Hickory Point Mall: Decatur, IL 100% 225 89%
Honey Creek Mall: Terre Haute, IN 100% 344 97%
Janesville Mall: Janesville, WI 100% 329 95%
Jefferson Mall: Louisville, KY 100% 339 98%
Kentucky Oaks Mall: Paducah, KY 50% 283 94%
The Lakes Mall: Muskegon, MI 90% 265 96%
Lakeshore Mall: Sebring, FL 100% 261 97%
Laurel Park Place: Livonia, MI 70% 384 96%
Layton Hills Mall: Layton, UT 100% 418 100%
Madison Square: Huntsville, AL 100% 293 86%
Mall del Norte: Laredo, TX 100% 477 95%
Mall of Acadiana: Lafayette, LA 56.5% 438 99%
Meridian Mall: Lansing, MI 100% 276 92%
Mid Rivers Mall: St. Peters, MO 56.5% 344 89%
Midland Mall: Midland, MI 100% 298 98%
Monroeville Mall: Pittsburgh, PA 100% 318 96%
Northpark Mall: Joplin, MO 100% 297 85%
Northwoods Mall: Charleston, SC 100% 320 98%
Oak Hollow Mall: High Point, NC 75% 182 77%
Oak Park Mall: Overland Park, KS 100% 451 99%
Old Hickory Mall: Jackson, TN 100% 325 92%
Panama City Mall: Panama City, FL 100% 283 90%
Park Plaza: Little Rock, AR 56.5% 470 95%
Parkdale Mall: Beaumont, TX 100% 313 93%
Parkway Place Mall: Huntsville, AL 45% 324 93%
Pemberton Square: Vicksburg, MS 100% 153 51%
Plaza del Sol: Del Rio, TX 50.6% 173 92%
Post Oak Mall: College Station, TX 100% 332 92%
Randolph Mall: Asheboro, NC 100% 220 94%
Regency Mall: Racine, WI 100% 283 90%
Richland Mall: Waco, TX 100% 305 88%
River Ridge Mall: Lynchburg, VA 100% 315 99%
Rivergate Mall: Nashville, TN 100% 320 97%
South County Center: St. Louis, MO 56.5% 378 94%
Southpark Mall: Colonial Heights, VA 100% 311 99%
St. Clair Sqaure: Fairview Heights, IL 56.5% 404 99%
Stroud Mall: Stroudsburg, PA 100% 314 96%
Sunrise Mall: Brownsville, TX 100% 413 95%
Towne Mall: Franklin, OH 100% 217 62%
Triangle Town Center: Raleigh, NC 50% 350 95%
Turtle Creek Mall: Hattiesburg, MS 100% 357 97%
Valley View Mall: Roanoke, VA 100% 364 91%
Volusia Mall: Daytona Beach, FL 100% 406 98%
Walnut Square: Dalton, GA 100% 252 100%
Wausau Center: Wausau, WI 100% 272 86%
West County Center: Dos Peres, MO 56.5% 478 97%
West Towne Mall: Madison, WI 100% 454 99%
WestGate Mall: Spartanburg, SC 100% 285 97%
Westmoreland Mall: Greensburg, PA 56.5% 320 96%
York Galleria: York, PA 100% 332 99%


Trends and Forces

The liquidity crunch resulting from the Subprime lending crisis could inhibit CBL's ability to finance expansion.

REITs like CBL are especially sensitive to credit availability because Federal tax requirements stipulate that they must return at least 90% of earnings to shareholders. As a result, CBL cannot use cash generated from its operations to fund expansion. Instead, it must obtain financing from the credit markets. In response to the credit crisis resulting from the subprime mortgage metldown, CBL has expanded its lines of credit from several financial institutions and has refinanced several loans to take advantage of lower interest rates. However, obtaining financing for future projects may become more difficult with less capital in the hands of lenders and more competition for these loans.

CBL's focus on middle-markets allows it to establish regional dominance and limit competition.

When developing or acquiring malls, CBL usually selects areas with few malls or retail stores. This allows it to become the dominant retail space for a large region in which there is little competition. However, such areas usually grow more slowly than competitive markets, and as a result, CBL increases its rents more slowly than its competitors in these markets. This is partially evidenced by CBL's mediocre earnings growth over the past five years, with no clear growth trend.[9]

CBL's business is affected by demographic changes in the Sun-belt and Rust-belt.

CBL's malls are almost exclusively in the Midwest and Southeastern United States. Demographic and economic trends affecting these regions will have a strong influence on the success of CBL's business. The sunbelt is experiencing a period of sustained economic and population growth as many individuals leave the northern states for the south's more moderate climate and companies relocate production there due to less regulation and a smaller union presence. Conversely, the Midwest is experiencing a period of economic readjustment as many manufacturers there have struggled with high labor costs, heavy regulation, and antiquated facilities. These areas face higher unemployment that reduces consumer spending and job opportunities, and as people move out of these regions to seek economic stability elsewhere, CBL's malls lose business .

Popularity of mixed use properties provides opportunity for growth.

Over the past several years, CBL's developments have more frequently included not only malls with space for stores, but a combination of retail and residential structures mingled together. This had been advantageous for two reasons. First, the ability to sell the residential structures early in the construction process helps to offset the costs of construction. Second, the proximity of residential properties helps ensure a steady flow of customers into the nearby retail space.


CBL generally seeks to have its malls serve as the primary retail facility for an entire region. This strategy has been successful in that most of CBL's properties have are in places with few other malls. Nevertheless, as other types of retailing such as discount/wholesale stores, online/television shopping, and outlet centers become more popular they have begun to compete with CBL's middle-market malls. Additionally CBL competes with the following companies, which are also national owners and operators of retail space. Like CBL several are beginning to acquire properties outside of the United States in such countries as China and Brazil. Whereas CBL is cautiously approaching these countries through joint ventures with local firms, if CBL management gains an understanding for these markets they should provide excellent opportunities for growth in the coming years.

Company Operating Cash Flow Total Debt Total Cash Dividend Yield Square Feet in Portfolio Major Markets Property Occupancy
CBL & Associates Properties (CBL) $470.28 m $5.87 B $65.83 m 9.10% 72 m Midwest and Southeast of U.S. with a focus on smaller regional markets 93%
Taubman Centers (TCO) $257.84 m $2.70 B $47.17 m 3.10% 24,584,000 11 states including major metropolitan centers: Los Angeles, San Francisco, Denver, Detroit, Phoenix, Miami, Dallas, Tampa, Orlando, and Wash D.C. 93.8%
Simon Property Group (SPG) $1.46 B $17.22 B $501.98 m 3.90% 256 m SPG owns properties throughout North America, Europe, and Asia 93.2%
General Growth Properties (GGP) $707.42 m $24.30 B $99.53 m 6.10% 200 m 200 regional shopping centers in 44 states 93.8%

Market Share

In 2007 CBL's market share among global Retail REITs was just 2%. Market share is listed by Funds From Operations (FFO), a metric that takes into account earnings from existing properties but not cash from acquisitions or sales of assets. Globally there are 38 REITs focusing on retail properties producing an aggregate $10.0B in FFO.[11][12]] Most of those were small companies, only 9 Retail REITs are listed in the Russell 1000.

Error creating thumbnail
2007 Data[13][14]
  • General Growth Properties (GGP) has ownership interests in and/or management responsibility across regional shopping malls totaling over 200 million square feet of retail space with 24,000 retail stores and anchor department stores, as well as theaters, sit-down restaurants, ice skating rinks, and other forms of family entertainment.[15]
  • Westfield Group ((WDC) is the largest retail property group in the world with a portfolio of 119 shopping centers across Australia, the U.S., New Zealand, and the United Kingdom, valued at $53.2 billion.[16]
  • Kimco Realty (KIM) is largest publicly traded owner and operator of neighborhood and community shopping centers in the U.S., with more than 1,519 properties comprising 180 million square feet of leasable space across 45 states, Puerto Rico, Canada, Mexico and Chile.[17]
  • Simon Property Group (SPG) develops and leases regional malls, shopping centers and strip malls. Simon Property Group owns or has an interest in over 379 properties comprising over 256 million square feet of gross leasable area across investments in the U.S., Europe, and Asia,[18] making it the largest public U.S. real estate company.[19] Simon Property Group's investments tend to be in large metropolitan areas with very high consumer traffic and are comprised of anchor department stores alongside smaller retailers.


  1. http://www.cblproperties.com/cbl.nsf/abo_com_foc
  2. http://www.cblproperties.com/cbl.nsf/inv_sec_fil
  3. http://library.corporate-ir.net/library/10/106/106929/items/278831/FebCBL4Q07Supp.pdf CBL 2007 Q4 Supplemental
  4. http://www.cblproperties.com/cbl.nsf/inv_sec_fil
  5. http://phx.corporate-ir.net/phoenix.zhtml?c=106929&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NTUwNDc3MiZhdHRhY2g9T04%3d CBL's 2007 Annual Report
  6. http://phx.corporate-ir.net/phoenix.zhtml?c=106929&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NTUwNDc3MiZhdHRhY2g9T04%3d CBL's 2007 Annual Report
  7. http://phx.corporate-ir.net/phoenix.zhtml?c=106929&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NTUwNDc3MiZhdHRhY2g9T04%3d CBL's 2007 Annual Report
  8. http://phx.corporate-ir.net/phoenix.zhtml?c=106929&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NTUwNDc3MiZhdHRhY2g9T04%3d CBL's 2007 Annual Report
  9. CBL 2007 Annual Report http://phx.corporate-ir.net/phoenix.zhtml?c=106929&p=irol-SECText&TEXT=aHR0cDovL2NjYm4uMTBrd2l6YXJkLmNvbS94bWwvZmlsaW5nLnhtbD9yZXBvPXRlbmsmaXBhZ2U9NTUwNDc3MiZhdHRhY2g9T04%3d
  10. All data from 2007 Annual Reports of respective companies and yahoofinance.
  11. U.S. Global REITs
  12. [2007 Company Annual Reports]
  13. Datamonitor Industry Market Research: Global - Retail REIT's
  14. [2007 Company Annual Reports]
  15. VNO Company Site - About Us
  16. Westfield Group company website - Company Profile
  17. Kimco Company Website - About Kimco
  18. Simon Property Group company website - About Us
  19. Simon Property Group company website - About Us
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki