CBL sees Q4,
Written on February 9, 2008
CBL & Associates Properties Inc., which owns several St. Louis-area shopping malls, saw its net income fall in the fourth quarter and fiscal year on a noncash write-down of marketable securities, among other items.
The company reported net income for the fourth quarter ended Dec. 31 was $18.87 million, down more than 51 percent from $38.7 million in the fourth quarter of 2006. But CBL's revenue in the recent quarter rose 8.5 percent to $294.3 million, from $271.3 million in the prior year's fourth quarter.
For fiscal 2007, CBL reported net income of $89.15 million, down 24 percent from $117.5 million in fiscal 2006. The company's revenue grew 4.5 percent in fiscal 2007 to more than $1.04 billion, from $995.5 million in fiscal 2006.
CBL said the fiscal-year drop in net income primarily was due to a nearly $18.5 million noncash write-down of marketable securities that resulted from a significant fourth-quarter decline in their market value; an increase in the noncash income tax provision; higher interest expense; and the write-off of direct issuance costs related to a redemption of preferred stock in June fast cash loans.
CBL officials said in a release that the firm exceeded its previous record for acquisitions with a total of $1.6 billion closed in the year.
CBL bought West County Mall, Mid Rivers Mall, South County Center and Chesterfield Mall from Australia-based Westfield Group in October for $1.03 billion. CBL also owns St. Clair Square Mall in Fairview Heights, Ill.
With the Westfield portfolio acquisition, St. Louis is now CBL's largest market. Chattanooga, Tenn.-based CBL & Associates Properties (NYSE: CBL) owns, holds interests in or manages 159 properties, including 84 malls and open-air retail centers, in 27 states, totaling 82.8 million square feet of space.