Cbl & Associates Properties, Inc. · NYSE:CBL
Cbl & Associates Properties — Debt Investor Presentation (August 2020)
41 slides from Cbl & Associates Properties's debt investor presentation, Aug 19, 2020
Slide 1: Presentation to the Ad Hoc Group July 2020
Presentation to the Ad Hoc Group July 2020
Slide 2: Safe Harbor Statement
Safe Harbor Statement While the information contained in this presentation is provided in good faith, neither CBL & Associates Properties Inc. (together with its subsidiaries and affiliates, “CBL”, of the “Company”) nor any of its advisers, representatives, officers, agents or employees makes any re
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation is for informational purposes only, does not constitute, and shall not be interpreted as an offer, the solicitation of an offer or sale, or as the basis of a contract, and should not be construed as financial, legal, tax, accounting, investment or other advice
Slide 4: Risk Factors
Risk Factors The current pandemic of the novel coronavirus, or COVID-19 has, and could continue to, materially and adversely impact or disrupt our financial condition, results of operations, cash flows and performance, as could any future outbreak of another highly infectious or contagious disease.
Slide 5: Risk Factors
Risk Factors In addition, in response to an executive order issued by state and local authorities, most of our employees based at our headquarters are currently working remotely. The effects of the executive order, including an extended period of remote work arrangements, could strain our business c
Slide 6: Risk Factors
Risk Factors any impairment in value of our tangible assets and intangible lease assets that could be recorded as a result of weaker economic conditions; a deterioration in our or our tenants' ability to operate in affected areas or delays in the supply of products or services to us or our tenants f
Slide 7: Introduction to CBL Management
Introduction to CBL Management Charles B. Lebovitz, Chairman of the Board Chairman since CBL’s IPO in 1993 Founded CBL’s predecessor in 1978 Previously CEO and President of CBL B.A. from Vanderbilt University Stephen D. Lebovitz, Chief Executive Officer Director since 1993 Joined CBL in 1988 Previou
Slide 8: CBL Properties
CBL Properties CBL Properties owns and manages a national portfolio of market-dominant properties located in dynamic and growing markets Portfolio: 108 properties 59 malls 5 outlet centers 23 associated centers 6 community centers 6 office buildings 9 properties managed for 3rd parties
Slide 9: Strategic Objectives
Strategic Objectives Operational Objectives: Near-term: Preserve occupancy/rents by negotiating short-term renewal leases with troubled retailers and long-term renewal leases with healthy in-demand retailers. Supplement revenue with temporary leasing to locals and regionals and other sources of inco
Slide 10: COVID-19 Impact and Response
COVID-19 Impact and Response Portfolio Implications of COVID-19 Pandemic: COVID-19 is pulling forward several years of retailer fallout. Green Street forecasts more than half of mall-based department stores will close by 2021. Tenants with weaker liquidity positions or subpar business models will st
Slide 11: COVID-19 Impact and Response: Liquidity Actions
COVID-19 Impact and Response Significant Actions Taken to Preserve/Enhance Liquidity: CBL has implemented comprehensive programs to halt all non-essential expenditures, to reduce operating and overhead expenses and to reduce, defer or suspend capital expenditures, including redevelopment investments
Slide 12: Criteria for Investments
Criteria for Investments Stand-alone unlevered return. Cross-benefit to the entire center (will the project drive additional traffic/sales to the center and ultimately result in higher renewal spreads for existing tenants/percentage rents/advertising opportunities, etc.). Defensive nature of the pro
Slide 13: CBL is Reinventing its Properties
More Food: Cheesecake Factory, Malone’s, Drake’s, Seasons 52 More Health & Beauty: Sephora, Ulta Beauty, TruFit, O2 Fitness, Orange Theory More Entertainment & Experience: Main Event, Dave & Busters, Round 1, Tilt More Value/Boutique: Ross, TJMaxx, Altar’d State, A Beautiful Soul More Mixed-use: Alo
Slide 14: Former Anchor Replacement Status
Property Former Anchor Replacement Status Layton Hills Macy’s (Dillard’s) Dillard’s Open* Eastland Mall JCPenney H&M, Planet Fitness Open Jefferson Mall Macy Round1 Open Northwoods Mall Sears (Seritage) Burlington Open* Kentucky Oaks Mall Sears (Seritage) Burlington, Ross Dress for Less Open* West T
Slide 15: Brookfield Square, Milwaukee, WI
Brookfield Square, Milwaukee, WI Sears Redevelopment - OPEN Replaced Former Sears with: Whirlyball, Marcus Theaters, Restaurants, Fitness, shops 168-key Hilton Garden Inn and adjacent conference center (sale) Project SF Total Cost (ex. Acq. Cost) Est. Opening Pro Forma Unleveraged Yield 126,000 $25.
Slide 16: Hamilton Place, Chattanooga, TN
Hamilton Place, Chattanooga, TN Sears Redevelopment - OPEN Replaced Sears location with: Cheesecake Factory, Dick’s Sporting Goods and Dave & Busters 145-Room Boutique Hotel (opens ‘21)
Slide 17: Cross Creek, Fayetteville, NC
Cross Creek, Fayetteville, NC Sears Redevelopment – Construction in ‘20 Former Sears to be replaced with: Rooms To Go (sale) Longhorn Steakhouse & BJs Brewhouse Dave & Busters, Shops Construction on hold, expected to commence in 2020 Project SF Total Cost (ex. Acq. Cost) Est. Opening Pro Forma Unlev
Slide 18: Top Tenants
Top 25 Tenants Based on Percentage of Q1 2020 Annualized and FY 2019 Revenue1 The percentage of total revenues is based on the Company's total consolidated revenues and pro rata share of unconsolidated revenues received
Slide 19: Selected Anchor Composition by Annual Gross Rent
Selected Anchor Composition by Annual Gross Rent – CBL Share1,2 Excludes non-core properties As of March 31, 2020 ($ in millions)
Slide 20: Projection Assumptions and Methodology
Projection Assumptions and Methodology Overall Projection Framework Property level projections are undertaken on a space-by-space / tenant-by-tenant basis taking into account The current in-place lease including rate and escalations, assumptions on lease rollovers and views on bankruptcies and any c
Slide 21: Key Financial Metrics Overview: Accrual Basis
Key Financial Metrics Overview: Accrual Basis1 NOTE: This presentation includes financial forecasts with respect to certain metrics of CBL. These projections have not been prepared in accordance with GAAP and should not be relied upon as being indicative of future results. The assumptions and estima
Slide 22: Key Property Metrics: NOI by Ownership and Property Type
2019 BY OWNERSHIP TYPE Note: Only showing actuals for properties in CBL’s current portfolio and does not include properties previously disposed Based on CBL’s share of consolidated and unconsolidated joint ventures; Excludes non-core properties Includes storage, residences/hotels, offices, land, res
Slide 23: Historical Key Financial Metrics (Modified Cash NOI)
Historical Key Financial Metrics – CBL Share (Modified Cash NOI)1 Note: Only showing actuals for properties in CBL’s current portfolio and does not include properties previously disposed Based on CBL’s share of consolidated and unconsolidated joint ventures; Excludes non-core properties Includes a c
Slide 24: Projected Key Financial Metrics (Modified Cash NOI)
Projected Key Financial Metrics – CBL Share (Modified Cash NOI)1 NOTE: This presentation includes financial forecasts with respect to certain metrics of CBL. These projections have not been prepared in accordance with GAAP and should not be relied upon as being indicative of future results. The assu
Slide 25: COVID-Adjusted Cash Flow Projections for 2020
COVID-Adjusted Cash Flow Projections for 2020 ($ in millions) Overview of Monthly Cash Position (non-GAAP): Cash position reflects Management’s best estimate of revenue collection and expense savings, including actual collection rates of approximately 27% in April and 32% in May and capital expendit
Slide 26: Secured and Unsecured Loan Balances
Secured and Unsecured Loan Balances – CBL Share1 Excludes non-core properties Current LOC balance of $1.31mm and revolver balance of $675.93mm Outstanding balances at original maturity dates ($ in millions) 2
Slide 27: Appendix
Privileged and Confidential Provided Pursuant to the Confidentiality Agreement Appendix CBL «
Slide 28: Historical Operating Metrics – 2017
Historical Operating Metrics – 2017 CBL Share1 Modified Cash NOI excludes straight line rents, above / below market lease rates, landlord inducements and lease buyouts and management fees Note: Only showing actuals for properties in CBL’s current portfolio and does not include properties previously
Slide 29: Historical Operating Metrics – 2018
Historical Operating Metrics – 2018 CBL Share1 Modified Cash NOI excludes straight line rents, above / below market lease rates, landlord inducements and lease buyouts and management fees Note: Only showing actuals for properties in CBL’s current portfolio and does not include properties previously
Slide 30: Historical Operating Metrics – 2019
Historical Operating Metrics – 2019 CBL Share1 Modified Cash NOI excludes straight line rents, above / below market lease rates, landlord inducements and lease buyouts and management fees Note: Only showing actuals for properties in CBL’s current portfolio and does not include properties previously
Slide 31: Projected Operating Metrics – 2020
Projected Operating Metrics – 2020 CBL Share1 Modified Cash NOI excludes straight line rents, above / below market lease rates, landlord inducements and lease buyouts and management fees NOTE: This presentation includes financial forecasts with respect to certain metrics of CBL. These projections ha
Slide 32: Projected Operating Metrics – 2021
Projected Operating Metrics – 2021 CBL Share1 Modified Cash NOI excludes straight line rents, above / below market lease rates, landlord inducements and lease buyouts and management fees NOTE: This presentation includes financial forecasts with respect to certain metrics of CBL. These projections ha
Slide 33: Loan Balances
Loan Balances – CBL Share1 1. Based on CBL’s share of consolidated and unconsolidated joint ventures; Excludes non-core properties Outstanding balances at original maturity dates; Variable Rates as of 3/31/20 ($ in millions)
Slide 34: Loan Balances
Loan Balances – CBL Share1 1. Based on CBL’s share of consolidated and unconsolidated joint ventures; Excludes non-core properties Outstanding balances at original maturity dates; Variable Rates as of 3/31/20 ($ in millions)
Slide 35: Loan Balances
Loan Balances – CBL Share1 Based on CBL’s share of consolidated and unconsolidated joint ventures; Excludes non-core properties Current LOC balance of $1.31mm and revolver balance of $675.93mm Outstanding balances at original maturity dates; Variable Rates as of 3/31/20 ($ in millions) 2
Slide 36: Anchor Exposure
Anchor Exposure1 Excludes non-core properties
Slide 37: Anchor Exposure
Anchor Exposure1 Excludes non-core properties
Slide 38: Anchor Exposure
Anchor Exposure1 Excludes non-core properties
Slide 39: Anchor Exposure
Anchor Exposure1 Excludes non-core properties
Slide 40: Anchor Exposure
Anchor Exposure1 Excludes non-core properties
Slide 41: Select Statistics on Certain Malls
Select Statistics on Certain Malls Brookfield Square excludes redeveloped Sears parcel York Galleria includes redeveloped Sears parcel 1 2
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