X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

CHATTANOOGA, TN-After announcing 1.3 million sf of new joint-venture developments in the US and expansion to Brazil in recent months, CBL & Associates Properties Inc. shows no signs of stopping. During a third-quarter conference call, Stephen Lebovitz, president and secretary, said there would be “more great announcements over the next few weeks and months.”

The locally based company currently has 14 US projects aggregating 2.9 million sf under construction. They include Pearland Town Center near Houston, Settlers Ridge in Pittsburgh, and CBL Center II here along with two lifestyle centers and nine mall expansions and redevelopments. The ground-up developments are all in joint ventures.

This month CBL also announced the acquisition of a 60% partnership with Tenco Realty for a retail development in Macae, Brazil. Under its agreement with Tenco, CBL also has the option to buy a minimum 51% stake in any future Tenco developments in that country.

Asked why now, Lebovitz said, “we’ve been looking at international expansion for a couple of years,” noting it had entered China a year ago. “International stuff takes quite awhile to develop,” he added. “We’ll look at other acquisitions, but I can’t project a certain amount. We’re encouraged by Brazil, but we’re going to be cautious.”

Net income for the third quarter was $17.1 million, up from $14.3 million for the same quarter of 2006. Funds from operations reached $49.7 million, down from $50.9 million for the parallel year-ago quarter. The drop is attributed to a non-cash income tax provision and adjustments to leases at some acquired assets.

Total revenues for the quarter rose 2.5% to $251.2 million, up from $245 million in the prior-year quarter. For the first nine months of this year, total revenues were up 3.1% to total $746.9 million, up from $724.2 million for the same quarter of 2006.

Same-store sales for tenants at stabilized centers this year were up 1.2% on top of a 4.5% increase for the prior-year quarter. For the rolling 12 months ended this Sept. 30, the tenants’ average was $345 sales per sf.

“Retailers haven’t cut expansion plans for 2008,” Lebovitz said in response to analysts’ queries about retailers’ response to the current economy. Stores in the family apparel category and jewelry, he said, continue to expand and “shoes have been a little weak in the last month or so.” He attributed that primarily to cyclical fashion, such as the introduction of lower priced Crocs and sandal styles, which “we don’t see as a permanent thing,” he said.

In early trading on Nov. 7, a very down day for the NYSE, CBL common stock fell from an open of $30.54 a share to a new 52-week low of $27.20 a share before picking up about $2 a share by mid-day. This compares with a 52-week high of $50.36 a share, which occurred on Feb. 7, 2007.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.