CBL & Associates Properties Reports Results for Fourth Quarter and Full Year 2015

CHATTANOOGA, Tenn.--(BUSINESS WIRE)--CBL & Associates Properties, Inc. (NYSE:CBL):

• Same-center NOI increased 2.0% and 0.7% for the fourth quarter and year ended December 31, 2015, respectively over the prior-year periods.
• 2015 FFO per diluted share, as adjusted, grew 6.0% to $0.71 in the fourth quarter 2015 and 1.8% to $2.32 for 2015, compared with the prior-year periods.
• Average gross rent per square foot increased 6.5% for stabilized mall leases signed in the fourth quarter 2015 and 9.2% for the full-year 2015 over the prior rate.
• Total portfolio occupancy at December 31, 2015 increased 120 basis points from third quarter 2015 and declined 110 basis points from the prior year-end to 93.6%.
• Same-center sales per square foot increased 3.9% for 2015 to $374 per square foot.
• CBL completed more than $1.7 billion of financing activity in 2015 and completed more than $158 million in dispositions.

CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the fourth quarter and year ended December 31, 2015. A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is located at the end of this news release.

	Three Months Ended December 31,				Year Ended December 31,
	2015		2014		2015		2014
Funds from Operations ("FFO") per diluted share	$	0.71	$	0.82	$	2.41	$	2.73
FFO, as adjusted, per diluted share ^(1)	$	0.71	$	0.67	$	2.32	$	2.28
(1) FFO, as adjusted, for the three months ended December 31, 2014 excludes a $7.0 million partial litigation settlement, net of related expenses, and a $23.8 million gain on extinguishment of debt, net of default interest expense, related to the conveyance of Columbia Place to the lender. FFO, as adjusted, for the year ended December 31, 2015 excludes a $16.6 million gain on investment related to the sale of marketable securities, a partial litigation settlement of $1.3 million, net of related expense and a $0.3 million gain on extinguishment of debt. FFO, as adjusted, for the year ended December 31, 2014 excludes an $83.2 million gain on extinguishment of debt, net of non-cash default interest expense, primarily related to the conveyance of Chapel Hill Mall and Columbia Place and the foreclosure of Citadel Mall. It also excludes a partial litigation settlement of $7.8 million, net of related expenses.

"CBL's operating expertise and the strong positioning of our portfolio of market-dominant shopping centers was clearly demonstrated in 2015. Despite this year's many challenges, we generated solid FFO and NOI growth, healthy lease spreads, steady sales improvement and year-end portfolio occupancy of 93.6%," said Stephen Lebovitz, president and CEO of CBL & Associates Properties, Inc. "We are highly focused on our strategic objectives to transform into a higher-growth portfolio and to continue to strengthen our balance sheet. In 2015, we used equity proceeds from the more than $150 million of dispositions executed to reduce leverage and invest in value-added development and redevelopment projects. Given the current economic and retail climate, we remain cautious but are confident that we are well-positioned to further advance our portfolio and balance sheet strategies this year."

Net loss attributable to common shareholders for the fourth quarter 2015 was $33.5 million, or $0.20 per diluted share, compared with net income of $65.3 million, or $0.38 per diluted share for the fourth quarter 2014.

Net income attributable to common shareholders for 2015 was $58.5 million, or $0.34 per diluted share, compared with net income of $174.3 million, or $1.02 per diluted share for 2014.

Net income for the fourth quarter and full-year 2015 included a $100.0 million loss on impairment of real estate related to the write-down of the book value of Chesterfield Mall in Chesterfield, MO to its estimated fair value.

Percentage change in same-center Net Operating Income ("NOI")⁽¹⁾:

	Three Months Ended December 31,	Year Ended December 31,
	2015	2015
Portfolio same-center NOI	2.0%	0.7%
Mall same-center NOI	1.6%	0.2%
^(1) CBL's definition of same-center NOI excludes the impact of lease termination fees and certain non-cash items of straight line rents and net amortization of acquired above and below market leases. NOI is for real estate properties and excludes income of the Company's subsidiary that provides maintenance, janitorial and security services.

MAJOR ITEMS IMPACTING SAME-CENTER NOI RESULTS FOR 2015

• Same-center revenues for 2015 grew $1.5 million as compared with 2014. Major items included:
  • a $0.3 million increase in minimum rents;
  • a $0.7 million increase in percentage rents due to sales increases throughout the year;
  • relatively flat other income as declines in specialty leasing income were offset by increases in branding income; and
  • a $0.6 million increase in tenant reimbursements and other revenue.
• Same-center expenses for 2015 were $3.6 million lower in 2015 compared with the prior year. Major items included:
  • a $3.1 million decrease in maintenance and repair expenses primarily driven by lower janitorial and snow removal expenses;
  • a $4.3 million decline in operating expenses, primarily due to lower utility and central energy expenses, marketing and advertising expenses and security expenses compared with the prior year; and
  • an increase of $3.7 million in real estate tax expenses.

PORTFOLIO OPERATIONAL RESULTS

Occupancy:

		As of December 31,
		2015	2014
	Portfolio occupancy	93.6%	94.7%
	Mall portfolio	93.1%	94.9%
	Same-center stabilized malls	93.3%	94.9%
	Stabilized malls	93.3%	94.8%
	Non-stabilized malls ^(1)	91.3%	98.1%
	Associated centers	94.6%	93.7%
	Community centers	97.1%	97.4%
(1)	Includes Fremaux Town Center, The Outlet Shoppes at Atlanta and The Outlet Shoppes of the Bluegrass as of December 31, 2015. Includes The Outlet Shoppes at Oklahoma City, The Outlet Shoppes at Atlanta and The Outlet Shoppes of the Bluegrass as of December 31, 2014.

New and Renewal Leasing Activity of Same Small Shop Space Less Than 10,000 Square Feet:

	% Change in Average Gross Rent Per Square Foot
	Three Months Ended December 31,	Year Ended December 31,
	2015	2015
Stabilized Malls	6.5%	9.2%
New leases	18.6%	26.3%
Renewal leases	1.8%	3.7%

Same-center Sales Per Square Foot for Mall Tenants 10,000 Square Feet or Less:

	Year Ended December 31,
	2015		2014		% Change
Stabilized mall same-center sales per square foot	$	374	$	360	3.9%

FINANCING ACTIVITY

During 2015, CBL completed more than $1.7 billion in financing activity including:

• the multi-year extension and modification of its three major unsecured credit facilities totaling $1.1 billion, reducing the borrowing spread by 20 basis points to a rate of LIBOR plus 120 basis points, based upon CBL's current credit rating;
• a new four-year (including extension options) $350 million term loan bearing interest at LIBOR plus 135 basis points, based upon CBL's current credit rating; and
• $314.5 million of new secured non-recourse financings at a weighted average interest rate of 4.07%, representing a 178 basis point improvement compared with the interest rate borne by the maturing loans.

Additionally, during 2015 CBL retired approximately $432 million of consolidated property-specific loans, adding more than $742 million of undepreciated book value to its unencumbered pool. Currently more than 45% of CBL's consolidated NOI is generated by high-quality unencumbered assets.

CBL and its prospective joint venture partner have agreed in principle with the lender to restructure the existing non-recourse $171.1 million loan secured by Triangle Town Center and Triangle Town Place in Raleigh, NC. Terms are being finalized with an anticipated closing date in the first quarter 2016. Concurrent with the closing of the new loan, CBL expects to enter into a new 10/90 joint venture with an institutional investor, with CBL responsible for leasing and management of the property.

CBL continues to negotiate a loan restructure with the lender of the existing $27.6 million non-recourse loan secured by Hickory Point Mall in Forsyth, IL. If a favorable restructure agreement is reached, the new non-recourse loan is expected to close during the second quarter 2016.

DISPOSITIONS

During 2015, CBL completed the disposition of one mall, five associated/community centers, interests in two Class-A apartment complexes and other non-core assets generating proceeds of more than $158 million.

Major dispositions announced in the fourth quarter 2015 include:

In November, CBL closed on the disposition of Waynesville Commons, a 128,000-square-foot community center located in Waynesville, NC, for $14.5 million to an affiliate of Yale Realty Services Corp. Additionally, CBL and its partner closed on the sale of a 340-unit Class A apartment complex in Austin, TX, located adjacent to a retail property previously developed and sold by CBL. CBL held a participatory ground lease position in the apartment complex and received $18.4 million in net proceeds.

In December, CBL completed the sale of Mayfaire Community Center for $56.3 million to Principal Real Estate Investors. Mayfaire Community Center is the 210,000-square-foot center located adjacent to CBL’s Mayfaire Towne Center in Wilmington, NC, which CBL acquired in June of 2015. CBL is providing leasing and management services for the new owners.

In December, CBL closed on the sale of Chapel Hill Crossing, an associated center in Akron, OH, for $2.3 million.

CBL and its 50/50 joint venture partner have entered into a binding agreement for the sale of 100% of Renaissance Center, the 363,000-square-foot community shopping center located in Durham, NC. Renaissance Center will be sold to an institutional investor for a gross purchase price of $129.2 million ($64.6 million at each partner’s share). The transaction is scheduled to close during the first quarter of 2016, subject to the assumption of a $16.0 million loan secured by the property’s second phase, defeasance of the $31.7 million loan secured by the property’s first phase and other customary closing conditions.

OUTLOOK AND GUIDANCE

The Company is providing 2016 FFO guidance in the range of $2.32 - $2.38 per share. CBL is assuming same-center NOI growth of 0.5% - 2% in 2016.

The guidance also assumes the following:

• $3.0 million to $5.0 million of outparcel sales;
• 25-75 basis point increase in total portfolio occupancy as well as stabilized mall occupancy throughout 2016;
• G&A expense of $58 million to $60 million; and
• no unannounced capital markets or disposition activity.

	Low			High
Expected diluted earnings per common share	$	0.74		$	0.80
Adjust to fully converted shares from common shares	(0.11		)	(0.12		)
Expected earnings per diluted, fully converted common share	0.63			0.68
Add: depreciation and amortization	1.58			1.58
Add: noncontrolling interest in earnings of Operating Partnership	0.11			0.12
Expected FFO per diluted, fully converted common share	$	2.32		$	2.38

INVESTOR CONFERENCE CALL AND WEBCAST

CBL & Associates Properties, Inc. will conduct a conference call at 11:00 a.m. ET on Thursday, February 4, 2016, to discuss its fourth quarter and full year results. The number to call for this interactive teleconference is [phone] or [phone] and enter the confirmation number 7812333. A replay of the conference call will be available through February 11, 2016, by dialing [phone] or [phone] and entering the confirmation number 10077140. A transcript of the Company's prepared remarks will be furnished on a Form 8-K following the conference call.

To receive the CBL & Associates Properties, Inc., fourth quarter and full year earnings release and supplemental information please visit the Investing section of our website at cblproperties.com or contact Investor Relations at 423-490-8312.

The Company will also provide an online webcast and rebroadcast of its 2015 fourth quarter and full year earnings release conference call. The live broadcast of the quarterly conference call will be available online at cblproperties.com on Thursday, February 4, 2016 beginning at 11:00 a.m. ET. The online replay will follow shortly after the call and continue for three months.

ABOUT CBL & ASSOCIATES PROPERTIES, INC.

CBL is one of the largest and most active owners and developers of malls and shopping centers in the United States. CBL owns, holds interests in or manages 146 properties, including 90 regional malls/open-air centers. The properties are located in 30 states and total 84.2 million square feet including 6.5 million square feet of non-owned shopping centers managed for third parties. Headquartered in Chattanooga, TN, CBL has regional offices in Boston (Waltham), MA, Dallas (Irving), TX, and St. Louis, MO. Additional information can be found at cblproperties.com.

NON-GAAP FINANCIAL MEASURES

Funds From Operations

FFO is a widely used measure of the operating performance of real estate companies that supplements net income (loss) determined in accordance with GAAP. The National Association of Real Estate Investment Trusts (“NAREIT”) defines FFO as net income (loss) (computed in accordance with GAAP) excluding gains or losses on sales of depreciable operating properties and impairment losses of depreciable properties, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests. Adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests are calculated on the same basis. We define FFO as defined above by NAREIT less dividends on preferred stock of the Company or distributions on preferred units of the Operating Partnership, as applicable. The Company’s method of calculating FFO may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs.

The Company believes that FFO provides an additional indicator of the operating performance of its properties without giving effect to real estate depreciation and amortization, which assumes the value of real estate assets declines predictably over time. Since values of well-maintained real estate assets have historically risen with market conditions, the Company believes that FFO enhances investors’ understanding of its operating performance. The use of FFO as an indicator of financial performance is influenced not only by the operations of the Company’s properties and interest rates, but also by its capital structure. The Company presents both FFO allocable to Operating Partnership common unitholders and FFO allocable to common shareholders, as it believes that both are useful performance measures. The Company believes FFO allocable to Operating Partnership common unitholders is a useful performance measure since it conducts substantially all of its business through its Operating Partnership and, therefore, it reflects the performance of the properties in absolute terms regardless of the ratio of ownership interests of the Company’s common shareholders and the noncontrolling interest in the Operating Partnership. The Company believes FFO allocable to its common shareholders is a useful performance measure because it is the performance measure that is most directly comparable to net income (loss) attributable to its common shareholders.

In the reconciliation of net income attributable to the Company's common shareholders to FFO allocable to operating partnership common unitholders, located in this earnings release, the Company makes an adjustment to add back noncontrolling interest in income (loss) of its Operating Partnership in order to arrive at FFO of its Operating Partnership. The Company then applies a percentage to FFO of its Operating Partnership in order to arrive at FFO of the Operating Partnership common unitholders. The percentage is computed by taking the weighted average number of common shares outstanding for the period and dividing it by the sum of the weighted average number of common shares and the weighted average number of Operating Partnership units outstanding during the period.

FFO does not represent cash flows from operations as defined by accounting principles generally accepted in the United States, is not necessarily indicative of cash available to fund all cash flow needs and should not be considered as an alternative to net income (loss) for purposes of evaluating the Company’s operating performance or to cash flow as a measure of liquidity.

As described above, in 2015, the Company recognized a $16.6 million gain on investment related to the sale of marketable securities, a $0.3 million gain on extinguishment of debt and received income of $1.3 million, net of related expense, as a partial settlement of litigation. During 2014, the Company recognized an $83.2 million gain on the extinguishment of debt, net of non-cash default interest expense, in connection with the conveyance of Chapel Hill Mall and Columbia Place to the respective lenders and the foreclosure of Citadel Mall, and received income of $7.8 million, net of related expenses, as partial settlements of ongoing litigation. Considering the significance and nature of these items, the Company believes that it is important to identify their impact on its FFO measures for a reader to have a complete understanding of the Company’s results of operations. Therefore, the Company has also presented adjusted FFO measures excluding these items from the applicable periods.

Same-center Net Operating Income

NOI is a supplemental measure of the operating performance of the Company's shopping centers and other properties. The Company defines NOI as property operating revenues (rental revenues, tenant reimbursements and other income) less property operating expenses (property operating, real estate taxes and maintenance and repairs).

We believe that presenting NOI and same-center NOI (described below) based on our Operating Partnership’s pro rata share of both consolidated and unconsolidated properties is useful since we conduct substantially all of our business through our Operating Partnership and, therefore, it reflects the performance of the properties in absolute terms regardless of the ratio of ownership interests of our common shareholders and the noncontrolling interest in the Operating Partnership. The Company computes NOI based on the Operating Partnership's pro rata share of both consolidated and unconsolidated properties. The Company's definition of NOI may be different than that used by other companies and, accordingly, the Company's NOI may not be comparable to that of other companies.

Since NOI includes only those revenues and expenses related to the operations of its shopping center and other properties, the Company believes that same-center NOI provides a measure that reflects trends in occupancy rates, rental rates and operating costs and the impact of those trends on the Company's results of operations. The Company’s calculation of same-center NOI also excludes lease termination income, straight-line rent adjustments, and amortization of above and below market lease intangibles in order to enhance the comparability of results from one period to another, as these items can be impacted by one-time events that may distort same-center NOI trends and may result in same-center NOI that is not indicative of the ongoing operations of the Company’s shopping center and other properties. A reconciliation of same-center NOI to net income is located at the end of this earnings release.

Pro Rata Share of Debt

The Company presents debt based on its pro rata ownership share (including the Company's pro rata share of unconsolidated affiliates and excluding noncontrolling interests' share of consolidated properties) because it believes this provides investors a clearer understanding of the Company's total debt obligations which affect the Company's liquidity. A reconciliation of the Company's pro rata share of debt to the amount of debt on the Company's consolidated balance sheet is located at the end of this earnings release.

Information included herein contains "forward-looking statements" within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including without limitation the Company's Annual Report on Form 10-K, and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" included therein, for a discussion of such risks and uncertainties.

CBL & Associates Properties, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share amounts)
	Three Months Ended December 31,						Year Ended December 31,
	2015			2014			2015			2014
REVENUES:
Minimum rents	$	178,378		$	176,579		$	684,309		$	682,584
Percentage rents	7,645			8,386			18,063			16,876
Other rents	8,186			8,606			21,934			22,314
Tenant reimbursements	73,461			76,239			288,279			290,561
Management, development and leasing fees	2,758			3,810			10,953			12,986
Other	7,202			10,229			31,480			35,418
Total revenues	277,630			283,849			1,055,018			1,060,739
OPERATING EXPENSES:
Property operating	33,401			37,568			141,030			149,774
Depreciation and amortization	77,519			79,093			299,069			291,273
Real estate taxes	21,886			23,643			90,799			89,281
Maintenance and repairs	12,413			13,451			51,516			54,842
General and administrative	15,678			14,688			62,118			50,271
Loss on impairment	102,280			105			105,945			17,858
Other	5,766			10,966			26,957			32,297
Total operating expenses	268,943			179,514			777,434			685,596
Income from operations	8,687			104,335			277,584			375,143
Interest and other income	225			10,586			6,467			14,121
Interest expense	(54,981		)	(59,827		)	(229,343		)	(239,824		)
Gain on extinguishment of debt	—			26,951			256			87,893
Gain on investment	—			—			16,560			—
Equity in earnings of unconsolidated affiliates	5,988			3,765			18,200			14,803
Income tax provision	(937		)	(233		)	(2,941		)	(4,499		)
Income (loss) from continuing operations before gain on sales of real estate assets	(41,018		)	85,577			86,783			247,637
Gain on sales of real estate assets	14,065			1,829			32,232			5,342
Income (loss) from continuing operations	(26,953		)	87,406			119,015			252,979
Operating income (loss) of discontinued operations	—			258			—			(222		)
Gain on discontinued operations	—			188			—			276
Net income (loss)	(26,953		)	87,852			119,015			253,033
Net (income) loss attributable to noncontrolling interests in:
Operating Partnership	5,612			(11,259		)	(10,171		)	(30,106		)
Other consolidated subsidiaries	(916		)	(37		)	(5,473		)	(3,777		)
Net income (loss) attributable to the Company	(22,257		)	76,556			103,371			219,150
Preferred dividends	(11,223		)	(11,223		)	(44,892		)	(44,892		)
Net income (loss) attributable to common shareholders	$	(33,480	)	$	65,333		$	58,479		$	174,258
Basic per share data attributable to common shareholders:
Income (loss) from continuing operations, net of preferred dividends	$	(0.20	)	$	0.38		$	0.34		$	1.02
Discontinued operations	0.00			0.00			0.00			0.00
Net income (loss) attributable to common shareholders	$	(0.20	)	$	0.38		$	0.34		$	1.02
Weighted average common shares outstanding	170,495			170,261			170,476			170,247
Diluted per share data attributable to common shareholders:
Income (loss) from continuing operations, net of preferred dividends	$	(0.20	)	$	0.38		$	0.34		$	1.02
Discontinued operations	0.00			0.00			0.00			0.00
Net income (loss) attributable to common shareholders	$	(0.20	)	$	0.38		$	0.34		$	1.02
Weighted-average common and potential dilutive common shares outstanding	170,495			170,261			170,499			170,247
Amounts attributable to common shareholders:
Income (loss) from continuing operations, net of preferred dividends	$	(33,480	)	$	64,952		$	58,479		$	174,212
Discontinued operations	—			381			—			46
Net income (loss) attributable to common shareholders	$	(33,480	)	$	65,333		$	58,479		$	174,258

	The Company's reconciliation of net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders is as follows:
	(in thousands, except per share data)
		Three Months Ended December 31,						Year Ended December 31,
		2015			2014			2015			2014
	Net income (loss) attributable to common shareholders	$	(33,480	)	$	65,333		$	58,479		$	174,258
	Noncontrolling interest in income (loss) of Operating Partnership	(5,612		)	11,259			10,171			30,106
	Depreciation and amortization expense of:
	Consolidated properties	77,519			79,093			299,069			291,273
	Unconsolidated affiliates	9,122			11,152			40,476			41,806
	Non-real estate assets	(799		)	(486		)	(3,083		)	(2,311		)
	Noncontrolling interests' share of depreciation and amortization	(2,109		)	(2,011		)	(9,045		)	(6,842		)
	Loss on impairment	102,280			—			105,945			18,434
	Gain on depreciable property, net of taxes	(5,899		)	—			(20,944		)	(937		)
	Gain on discontinued operations, net of taxes	—			(187		)	—			(273		)
	FFO allocable to Operating Partnership common unitholders	141,022			164,153			481,068			545,514
	Litigation settlements, net of related expenses ^(1)	—			(6,963		)	(1,329		)	(7,763		)
	Gain on investment	—			—			(16,560		)	—
	Non cash default interest expense	—			3,181			—			4,695
	Gain on extinguishment of debt	—			(26,951		)	(256		)	(87,893		)
	FFO allocable to Operating Partnership common unitholders, as adjusted	$	141,022		$	133,420		$	462,923		$	454,553
	FFO per diluted share	$	0.71		$	0.82		$	2.41		$	2.73
	FFO, as adjusted, per diluted share	$	0.71		$	0.67		$	2.32		$	2.28
	Weighted average common and potential dilutive common shares outstanding with Operating Partnership units fully converted	199,753			199,543			199,757			199,660
	Reconciliation of FFO allocable to Operating Partnership common unitholders to FFO allocable to common shareholders:
	FFO of the Operating Partnership	$	141,022		$	164,153		$	481,068		$	545,514
	Percentage allocable to common shareholders ^(2)	85.35		%	85.33		%	85.35		%	85.27		%
	FFO allocable to common shareholders	$	120,362		$	140,072		$	410,592		$	465,160
	FFO allocable to Operating Partnership common unitholders, as adjusted	$	141,022		$	133,420		$	462,923		$	454,553
	Percentage allocable to common shareholders ^(2)	85.35		%	85.33		%	85.35		%	85.27		%
	FFO allocable to common shareholders, as adjusted	$	120,362		$	113,847		$	395,105		$	387,597
(1)	Litigation settlement is included in Interest and Other Income in the Consolidated Statements of Operations. Litigation expense, including settlements paid, is included in General and Administrative expense in the Consolidated Statements of Operations.
(2)	Represents the weighted average number of common shares outstanding for the period divided by the sum of the weighted average number of common shares and the weighted average number of Operating Partnership units outstanding during the period. See the reconciliation of shares and Operating Partnership units outstanding on page 12.

	Three Months Ended December 31,						Year Ended December 31,
	2015			2014			2015				2014
SUPPLEMENTAL FFO INFORMATION:
Lease termination fees	$	276		$	1,413		$		4,659		$	3,808
Lease termination fees per share	$	—		$	0.01		$		0.02		$	0.02
Straight-line rental income	$	1,232		$	(352	)	$		4,207		$	2,132
Straight-line rental income per share	$	0.01		$	—		$		0.02		$	0.01
Gains on outparcel sales	$	5,779		$	2,774		$		8,929		$	5,235
Gains on outparcel sales per share	$	0.03		$	0.01		$		0.04		$	0.03
Net amortization of acquired above- and below-market leases	$	1,316		$	683		$		3,197		$	1,227
Net amortization of acquired above- and below-market leases per share	$	0.01		$	—		$		0.02		$	0.01
Net amortization of debt premiums and discounts	$	404		$	547		$		1,841		$	2,172
Net amortization of debt premiums and discounts per share	$	—		$	—		$		0.01		$	0.01
Income tax provision	$	(937	)	$	(233	)	$		(2,941	)	$	(4,499		)
Income tax provision per share	$	—		$	—		$		(0.01	)	$	0.02
Abandoned projects expense	$	(190	)	$	(55	)	$		(2,373	)	$	(136		)
Abandoned projects expense per share	$	—		$	—		$		(0.01	)	$	—
Gain on extinguishment of debt	$	—		$	26,951		$		256		$	87,893
Gain on extinguishment of debt per share	$	—		$	0.14		$		—		$	0.44
Non cash default interest expense	$	—		$	(3,181	)	$		—		$	(4,695		)
Non cash default interest expense per share	$	—		$	(0.02	)	$		—		$	(0.02		)
Gain on investment	$	—		$	—		$		16,560		$	—
Gain on investment per share	$	—		$	—		$		0.08		$	—
Litigation settlements, net of related expenses	$	—		$	6,963		$		1,329		$	7,763
Litigation settlements, net of related expenses per share	$	—		$	0.03		$		0.01		$	0.04
Interest capitalized	$	1,027		$	2,576		$		4,168		$	7,288
Interest capitalized per share	$	0.01		$	0.01		$		0.02		$	0.04
								As of December 31,
								2015				2014
Straight-line rent receivable								$	67,477			$	63,731

	Same-center Net Operating Income
	(Dollars in thousands)
		Three Months Ended December 31,						Year Ended December 31,
		2015			2014			2015			2014
	Net income (loss)	$	(26,953	)	$	87,852		119,015			$	253,033
	Adjustments:
	Depreciation and amortization	77,519			79,093			299,069			291,273
	Depreciation and amortization from unconsolidated affiliates	9,122			11,152			40,476			41,806
	Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries	(2,109		)	(2,011		)	(9,045		)	(6,842		)
	Interest expense	54,981			59,827			229,343			239,824
	Interest expense from unconsolidated affiliates	6,591			9,586			35,464			38,458
	Noncontrolling interests' share of interest expense in other consolidated subsidiaries	(1,670		)	(1,620		)	(6,760		)	(5,613		)
	Abandoned projects expense	190			55			2,373			136
	Gain on sales of real estate assets	(14,109		)	(1,829		)	(32,276		)	(5,342		)
	Gain on sales of real estate assets of unconsolidated affiliates	(234		)	(289		)	(1,964		)	(987		)
	Gain on investment	—			—			(16,560		)	—
	Gain on extinguishment of debt	—			(26,951		)	(256		)	(87,893		)
	Loss on impairment	102,280			105			105,945			17,858
	Loss on impairment from discontinued operations	—			—			—			681
	Income tax provision	937			233			2,941			4,499
	Lease termination fees	(277		)	(1,413		)	(4,660		)	(3,808		)
	Straight-line rent and above- and below-market lease amortization	(2,547		)	(331		)	(7,403		)	(3,359		)
	Net income attributable to noncontrolling interest in other consolidated subsidiaries	(916		)	(37		)	(5,473		)	(3,777		)
	Gain on discontinued operations	—			(188		)	—			(276		)
	General and administrative expenses	15,678			14,688			62,118			50,271
	Management fees and non-property level revenues	(2,044		)	(16,137		)	(24,958		)	(36,386		)
	Operating Partnership's share of property NOI	216,439			211,785			787,389			783,556
	Non-comparable NOI	(14,404		)	(13,732		)	(51,994		)	(53,357		)
	Total same-center NOI ^(1)	$	202,035		$	198,053		$	735,395		$	730,199
	Total same-center NOI percentage change	2.0		%				0.7		%
	Malls	$	185,738		$	182,898		$	672,683		$	671,410
	Associated centers	8,578			7,927			32,348			30,409
	Community centers	5,537			5,331			21,658			20,452
	Offices and other	2,182			1,897			8,706			7,928
	Total same-center NOI ^(1)	$	202,035		$	198,053		$	735,395		$	730,199
	Percentage Change:
	Malls	1.6		%				0.2		%
	Associated centers	8.2		%				6.4		%
	Community centers	3.9		%				5.9		%
	Offices and other	15.0		%				9.8		%
	Total same-center NOI^(1)	2.0		%				0.7		%
(1)	CBL defines NOI as property operating revenues (rental revenues, tenant reimbursements and other income), less property operating expenses (property operating, real estate taxes and maintenance and repairs). Same-center NOI excludes lease termination income, straight-line rent adjustments, and amortization of above and below market lease intangibles. Same-center NOI is for real estate properties and does not include the results of operations of the Company's subsidiary that provides janitorial, security and maintenance services. We include a property in our same-center pool when we own all or a portion of the property as of December 31, 2015, and we owned it and it was in operation for both the entire preceding calendar year and the current year-to-date reporting period ending December 31, 2015. New properties are excluded from same-center NOI, until they meet this criteria. The only properties excluded from the same-center pool that would otherwise meet this criteria are properties which are non-core, under major redevelopment, being considered for repositioning or where we intend to renegotiate the terms of the debt secured by the related property.

Company's Share of Consolidated and Unconsolidated Debt
(Dollars in thousands)
	As of December 31, 2015
	Fixed Rate			Variable Rate			Total per Debt Schedule			Unamortized Deferred Financing Costs			Total
Consolidated debt	$	3,485,308		$	1,241,379		$	4,726,687		$	(16,059	)	$	4,710,628
Noncontrolling interests' share of consolidated debt	(111,754		)	(6,981		)	(118,735		)	855			(117,880		)
Company's share of unconsolidated affiliates' debt	664,249			134,970			799,219			(1,486		)	797,733
Company's share of consolidated and unconsolidated debt	$	4,037,803		$	1,369,368		$	5,407,171		$	(16,690	)	$	5,390,481
Weighted average interest rate	5.41		%	1.81		%	4.50		%
	As of December 31, 2014
	Fixed Rate			Variable Rate			Total per Debt Schedule			Unamortized Deferred Financing Costs			Total
Consolidated debt	$	4,004,064		$	696,396		$	4,700,460		$	(17,127	)	$	4,683,333
Noncontrolling interests' share of consolidated debt	(115,390		)	(7,083		)	(122,473		)	759			(121,714		)
Company's share of unconsolidated affiliates' debt	671,526			96,776			768,302			(2,177		)	766,125
Company's share of consolidated and unconsolidated debt	$	4,560,200		$	786,089		$	5,346,289		$	(18,545	)	$	5,327,744
Weighted average interest rate	5.45		%	1.75		%	4.91		%

Debt-To-Total-Market Capitalization Ratio as of December 31, 2015
(In thousands, except stock price)
	Shares Outstanding	Stock Price ^(1)		Value
Common stock and Operating Partnership units	199,748	$	12.37	$	2,470,883
7.375% Series D Cumulative Redeemable Preferred Stock	1,815	250.00		453,750
6.625% Series E Cumulative Redeemable Preferred Stock	690	250.00		172,500
Total market equity				3,097,133
Company's share of total debt, excluding unamortized deferred financing costs				5,407,171
Total market capitalization				$	8,504,304
Debt-to-total-market capitalization ratio				63.6		%
(1) Stock price for common stock and operating partnership units equals the closing price of the common stock on December 31, 2015. The stock prices for the preferred stocks represent the liquidation preference of each respective series.

Reconciliation of Shares and Operating Partnership Units Outstanding
(In thousands)
	Three Months Ended December 31,						Year Ended December 31,
2015:	Basic			Diluted			Basic			Diluted
Weighted average shares - EPS	170,495			170,495			170,476			170,499
Weighted average Operating Partnership units	29,258			29,258			29,258			29,258
Weighted average shares - FFO	199,753			199,753			199,734			199,757
2014:
Weighted average shares - EPS	170,261			170,261			170,247			170,247
Weighted average Operating Partnership units	29,282			29,282			29,413			29,413
Weighted average shares - FFO	199,543			199,543			199,660			199,660
Dividend Payout Ratio
	Three Months Ended December 31,						Year Ended December 31,
	2015			2014			2015			2014
Weighted average cash dividend per share	$	0.27279		$	0.27280		$	1.09116		$	1.03218
FFO as adjusted, per diluted fully converted share	$	0.71		$	0.67		$	2.32		$	2.28
Dividend payout ratio	38.4		%	40.7		%	47.0		%	45.3		%

	Consolidated Balance Sheets
	(Unaudited; in thousands, except share data)
		As of December 31,
		2015			2014
	ASSETS
	Real estate assets:
	Land, buildings and improvements, net of accumulated depreciation	$	5,781,962		$	5,829,209
	Developments in progress	75,991			117,966
	Net investment in real estate assets	5,857,953			5,947,175
	Cash and cash equivalents	36,892			37,938
	Receivables:
	Tenant, net of allowance for doubtful accounts of $1,923 and $2,368 in 2015 and 2014, respectively	87,286			81,338
	Other, net of allowance for doubtful accounts of $1,276 and $1,285 in 2015 and 2014, respectively	17,958			22,577
	Mortgage and other notes receivable	18,238			19,811
	Investments in unconsolidated affiliates	276,383			281,449
	Intangible lease assets and other assets ^(1)	185,281			208,884
		$	6,479,991		$	6,599,172
	LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY
	Mortgage and other indebtedness ^(1)	$	4,710,628		$	4,683,333
	Accounts payable and accrued liabilities	344,434			328,352
	Total liabilities	5,055,062			5,011,685
	Commitments and contingencies
	Redeemable noncontrolling interests	25,330			37,559
	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, 170,490,948 and 170,260,273 issued and outstanding in 2015 and 2014, respectively	1,705			1,703
	Additional paid-in capital	1,970,333			1,958,198
	Accumulated other comprehensive income	1,935			13,411
	Dividends in excess of cumulative earnings	(689,028		)	(566,785		)
	Total shareholders' equity	1,284,970			1,406,552
	Noncontrolling interests	114,629			143,376
	Total equity	1,399,599			1,549,928
		$	6,479,991		$	6,599,172
(1)	In accordance with the adoption in the fourth quarter of 2015 of accounting standards ASU 2015-03 and 2015-15, unamortized deferred financing costs, excluding those related to the Company's credit lines, were reclassified from Intangible Lease Assets and Other Assets to Mortgage and Other Indebtedness. These reclassifications consisted of $16,059 and $17,127 as of December 31, 2015 and 2014, respectively.