CBL posts eighth consecutive quarter of sales growth

By: Craig Davison | The News & Advance
Published: February 09, 2012

The parent company of River Ridge mall reported its eighth-consecutive quarter of sales growth on Thursday during a conference call discussing fourth quarter and 2011 results.

The company said its funds from operations from the fourth quarter was $89 million, or 60 cents per share, compared to $86 million for the same period of 2010. Funds from operations for the year was $329 million, or $2.22 per share, compared to $287 million in 2010.

Funds from operations, or FFO, is a measure of cash generated by real estate trusts that is different from net income and is used to define operating performance.

“During the fourth quarter we continued our string of improving results,” said Stephen Lebovitz, president and chief executive officer of CBL.

CBL owns, holds an interest in or manages 157 properties, including 87 malls.

Lebovitz said the impact of the December announcement by Sears Holding Corp. to close 100 to 120 Sears and Kmart stores should not have a significant impact on the company.

CBL’s properties have 71 Sears stores, including one in River Ridge mall. But he said Sears owns 52 of those stores so if one closes, CBL in most cases would not lose a lessee. Lebovitz said the 19 stores that lease from CBL contribute $6.7 million to the company, so there will be a minimum impact to revenue if any Sears closes.

He said the Sears locations that lease from CBL are profitable.

River Ridge general manager Harvey Lindsay said Sears owns the store at the Lynchburg mall. That store was not on the list of closings released by Sears at the end of last year.

For anchor stores as a whole, Lebovitz said, department stores saw “healthy increases,” with Macy’s leading the way. The fourth quarter saw a 3.5 percent increase in anchor-store sales.

“Overall it was a solid holiday sales season,” said.

For the year, sales increased 3.3 percent. Same-store sales per square foot in 2011 also increased 3.3 percent in stores less than 10,000 square feet.

“2011 was also a very productive year for improving our balance sheet,” he said.

CBL closed trading Thursday at $18.08 and fell 0.39 percent.