CBL & Associates Properties (CBL)

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-	[[Image:Cbl logo.gif|left]]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.<ref>http://www.cblproperties.com/cbl.nsf/abo_com_foc</ref><ref>http://www.cblproperties.com/cbl.nsf/inv_sec_fil</ref>	+	{{hide_logo|path=[[Image:Cbl logo.gif|left]]}}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.<ref>http://www.cblproperties.com/cbl.nsf/abo_com_foc</ref><ref>http://www.cblproperties.com/cbl.nsf/inv_sec_fil</ref>
-	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 leverage 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.	+	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 ==		== Business Overview ==
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-	|AE Outfitters Retail Company	+	|[[AE Outfitters Retail Company(AEO)]]
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	*'''[[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.<ref>[http://www.ggp.com/company/ VNO Company Site - About Us] </ref>		*'''[[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.<ref>[http://www.ggp.com/company/ VNO Company Site - About Us] </ref>
-	*'''Westfield Group ((WDC)''' is the largest retail property group is 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.<ref>[http://westfield.com/corporate/about/profile.html Westfield Group company website - Company Profile]</ref>	+	*'''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.<ref>[http://westfield.com/corporate/about/profile.html Westfield Group company website - Company Profile]</ref>
	*'''[[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.<ref>[http://www.kimcorealty.com/about/index.asp Kimco Company Website - About Kimco]</ref>		*'''[[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.<ref>[http://www.kimcorealty.com/about/index.asp Kimco Company Website - About Kimco]</ref>
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	==References==		==References==
	<references/>		<references/>
	[[Category:Real Estate]]		[[Category:Real Estate]]
-	[[category:REIT - Retail*]]	+	[[Category:Retail REITs*]]
	[[category:mature]]		[[category:mature]]
		+	[[Category:Retail_REITs*]]

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Current revision

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%

^[3]

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%

^[4]

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

^[7]

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%

^[8]

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.

Competition

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%

^[10]

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.

• 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.

References

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

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