CBL Properties Announces Suspension of Common and Preferred Stock Dividends
December 02 2019 - 4:15PM
Business Wire
CBL Properties (NYSE:CBL) today announced that it is suspending
all future dividends on its common stock, 7.375% Series D
Cumulative Redeemable Preferred Stock and 6.625% Series E
Cumulative Redeemable Preferred Stock.
“Suspending dividends is a significant and difficult decision,
one that was carefully considered by Management and the Board.
However, preserving free cash flow is a paramount objective for CBL
at this time,” said Stephen D. Lebovitz, CBL’s Chief Executive
Officer. “We anticipate a decline in net operating income in 2020
as a result of heightened retailer bankruptcies, restructurings and
store closings in 2019. Offsetting these declines by retaining
available cash is necessary to maintain the market dominant
position of our properties and to reduce debt. CBL has also made
significant efforts over the past 18 months to reduce operating
costs, including executive compensation and overall corporate
G&A expense, as well as execution of a strategy to utilize
joint venture and other structures to reduce capital expenditures.
Ultimately, we believe these actions will allow the Company to
return greater value to its shareholders.”
The dividend suspension will be reviewed quarterly by the Board
of Directors, but is expected to remain in place until year-end
2020. The Company made this determination following a review of
current taxable income projections for 2019 and 2020. The Company
will review taxable income on a regular basis and take measures, if
necessary, to ensure that it meets the minimum distribution
requirements to maintain its status as a Real Estate Investment
Trust (REIT).
Unpaid dividends on CBL’s preferred stock shall accrue without
interest. No dividends may be paid on shares of CBL’s common stock
unless all accrued but unpaid dividends on its preferred stock, and
any current dividend then due, have been (or contemporaneously are)
paid in cash, or a cash sum sufficient for such payment has been
set apart for payment.
About CBL Properties
Headquartered in Chattanooga, TN, CBL Properties owns and
manages a national portfolio of market-dominant properties located
in dynamic and growing communities. CBL’s portfolio is comprised of
108 properties totaling 68.2 million square feet across 26 states,
including 68 high-quality enclosed, outlet and open-air retail
centers and 9 properties managed for third parties. CBL
continuously strengthens its company and portfolio through active
management, aggressive leasing and profitable reinvestment in its
properties. For more information visit cblproperties.com.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20191202005927/en/
Katie Reinsmidt, Executive Vice President & Chief Investment
Officer, 423.490.8301, Katie.Reinsmidt@cblproperties.com
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