CBL & Associates Properties Reports Second Quarter Results

CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the second quarter ended June 30, 2007. A description of each non-GAAP financial measure and the related reconciliation to the comparable GAAP measure is located at the end of this news release. Net income available to common shareholders for the second quarter ended June 30, 2007, was $11,465,000, or $0.17 per diluted share, compared with $20,928,000, or $0.32 per diluted share, for the prior-year period. Net income available to common shareholders for the six months ended June 30, 2007, was $28,866,000, or $0.44 per diluted share, compared with $41,541,000, or $0.64 per diluted share, for the prior-year period. The decline in net income available to common shareholders for the second quarter and six months ended June 30, 2007, was largely attributable to certain one-time and non-cash items totaling $6,611,000 and $7,026,000, respectively, after adjustment for minority interest. Additionally, net income available to common shareholders for the second quarter and six months ended June 30, 2007, was impacted by higher interest and depreciation expense partially offset by improvements in income from operations and gain on sale of real estate assets. An analysis of items having an impact on net income after adjustment for minority interest of the operating partnership is provided below. Net income for the second quarter and six months ended June 30, 2006, included gains on sale from properties sold in second quarter 2006 of $4,061,000 and $4,027,000, respectively. There was a negligible gain related to the sold properties included in the current comparable periods. Net income for the second quarter and six months ended June 30, 2007, was reduced by $2,016,000 for the write-off of direct issuance costs related to the redemption of the Company’s 8.75% Series B Perpetual Preferred Stock on June 28, 2007 ("preferred redemption charge”). There was no comparable charge in the prior-year periods. Net income for the second quarter and six months ended June 30, 2007, was reduced by $534,000 and $985,000, respectively, for a non-cash income tax provision. There was not a comparable charge in the prior-year periods. Funds from operations ("FFO”) per share on a diluted, fully converted basis for the second quarter ended June 30, 2007, was $0.77, excluding the gross preferred redemption charge of $0.03 per diluted, fully converted share. FFO allocable to common shareholders including the preferred redemption charge was $48,380,000, or $0.74 per diluted, fully converted share, for the second quarter ended June 30, 2007, compared with $49,093,000, or $0.76 per diluted, fully converted share, for the prior-year period. FFO per share on a diluted, fully converted basis for the six months ended June 30, 2007, was $1.55, excluding the gross preferred redemption charge of $0.03 per diluted, fully converted share. FFO allocable to common shareholders including the preferred redemption charge was $99,379,000, or $1.52 per diluted, fully converted share, for the six months ended June 30, 2007, compared with $101,677,000, or $1.58 per diluted, fully converted share, for the prior-year period. FFO of the operating partnership for the second quarter 2007 was $85,948,000, compared with $88,535,000 for the prior-year period. FFO of the operating partnership for the six months ended June 30, 2007 was $176,705,000, compared with $185,102,000 for the prior-year period. FFO for the second quarter and six months ended June 30, 2007, was also reduced by $948,000 and $1,751,000, respectively, for a non-cash income tax provision. There was not a comparable charge in the prior-year periods. HIGHLIGHTS Total revenues increased 4.7% in the second quarter of 2007 to $246,480,000 from $235,326,000 in the prior-year period. Total revenues increased 3.4% in the six months ended June 30, 2007 to $495,665,000 from $479,186,000 in the prior-year period. Same-center net operating income ("NOI”) for the portfolio for the quarter and six months ended June 30, 2007, increased by 2.4% and declined 0.4%, respectively, compared with a 4.0% and 3.6% increase, respectively, for the prior-year periods. Excluding lease termination fees, same-center NOI for the portfolio for the quarter and six months ended June 30, 2007, increased 2.6% and 0.4%, respectively. Same-store sales for mall tenants of 10,000 square feet or less for stabilized malls as of June 30, 2007, increased 2.0% compared with a 3.8% increase for the prior-year period. Sales for the rolling twelve months ended June 30, 2007, were $344 per square foot. The debt-to-total-market capitalization ratio as of June 30, 2007, was 53.2% based on the common stock closing price of $36.05 and a fully converted common stock share count of 116,285,000 shares as of the same date. The debt-to-total-market capitalization ratio as of June 30, 2006, was 48.2% based on the common stock closing price of $38.93 and a fully converted common stock share count of 115,989,000 shares as of the same date. Consolidated and unconsolidated variable rate debt of $921,604,000 represents 9.6% of the total market capitalization for the Company and 18.1% of the Company's share of total consolidated and unconsolidated debt. CBL's Chairman and Chief Executive Officer, Charles B. Lebovitz, said, "An improving leasing effort and continued high demand for new space by retailers led to year-to-date double-digit growth in rental spreads and an 80 basis point increase in stabilized mall occupancy. The mood among retailers coming off the first half of the year – and confirmed by recent meetings at the ICSC Convention and CBL’s Connection Event – is very positive with expectations for a strong back-to-school season and growth plans that include new concepts and new locations. These trends, combined with ongoing investments in our properties, should provide a solid base for CBL to continue to build momentum in same-center NOI growth. "As expected, our development and redevelopment program is enhancing and adding to the value of our existing portfolio. With two new open-air developments announced recently and a number of projects expected to open throughout the remainder of the year, we are as active as we have ever been on new developments. We continue to pursue additional development/redevelopment opportunities to complement the internal growth in our portfolio. We are optimistic that these endeavors will generate accelerated growth for our Company going forward.” PORTFOLIO OCCUPANCY June 30, 2007 2006 Portfolio occupancy 91.6% 91.4% Mall portfolio 91.7% 91.4% Stabilized malls 92.2% 91.4% Non-stabilized malls 82.1% 89.3% Associated centers 92.3% 91.8% Community centers 82.7% 88.5% OTHER SIGNIFICANT EVENTS Today, the Company announced that its Board of Directors has authorized a common stock repurchase plan for the purchase of up to $100 million of common stock effective over the next twelve months. Any stock repurchases will be made from time to time through open market purchases. During the second quarter, CBL exercised its option to redeem all 2,000,000 outstanding shares of its 8.75% Series B Cumulative Redeemable Preferred Stock at the par value of $50.00 per share plus accrued and unpaid dividends of $1.069444 per share. The redemption resulted in a gross charge to FFO and net income of approximately $3.6 million in the second quarter 2007 related to the write-off of direct issuance costs for the 8.75% Series B Cumulative Redeemable Preferred Stock. DISPOSITIONS During the second quarter, CBL entered into an agreement to sell Twin Peaks Mall in Longmont, CO. The 556,000 square foot regional mall will be sold for $33.6 million to Panattoni Development Company, LLC. Proceeds from the sale will be used to reduce outstanding borrowings on the Company’s lines of credit. The sale is expected to generate a gain of approximately $3.9 million that will be recognized in the third quarter 2007. OUTLOOK AND GUIDANCE Based on today's outlook, the Company's second quarter results, the preferred redemption charge, and the expected disposition of Twin Peaks Mall, the Company is revising guidance for 2007 FFO to the range of $3.37 to $3.47 per share. The full year guidance continues to assume same-center NOI growth in the range of 1.5% to 2.5% and excludes the impact of any future acquisitions. Specific factors impacting the guidance will be outlined in the Company's conference call. The Company expects to update its annual guidance after each quarter's results.   Low High Expected diluted earnings per common share $ 1.24 $ 1.34 Adjust to fully converted shares from common shares   (0.54 )   (0.58 ) Expected earnings per diluted, fully converted common share 0.70 0.76 Add: depreciation and amortization 2.15 2.15 Less: gain on disposal of discontinued operations (0.03 ) (0.03 ) Add: minority interest in earnings of Operating Partnership   0.55     0.59     Expected FFO per diluted, fully converted common share $ 3.37   $ 3.47     INVESTOR CONFERENCE CALL AND SIMULCAST CBL & Associates Properties, Inc. will conduct a conference call at 10:00 a.m. EDT on Friday, August 3, 2007, to discuss the second quarter results. The number to call for this interactive teleconference is 913-981-5546. A seven-day replay of the conference call will be available by dialing 719-457-0820 and entering the passcode 6017254. A transcript of the Company's prepared remarks will be furnished on a Form 8-K following the conference call. To receive the CBL & Associates Properties, Inc., second quarter earnings release and supplemental information please visit our website at http://cblproperties.com or contact Investor Relations at 423-490-8292. The Company will also provide an online Web simulcast and rebroadcast of its 2007 second quarter earnings release conference call. The live broadcast of CBL's quarterly conference call will be available online at the Company's Web site at http://cblproperties.com, as well as www.streetevents.com and www.earnings.com, on August 3, 2007, beginning at 10:00 a.m. EDT. The online replay will follow shortly after the call and continue through August 10, 2007. CBL is one of the largest and most active owners and developers of malls and shopping centers in the country. CBL owns, holds interests in or manages 132 properties, including 80 regional malls/open-air centers. The properties are located in 27 states and total 75.2 million square feet including 2.2 million square feet of non-owned shopping centers managed for third parties. CBL currently has thirteen projects under construction totaling 1.8 million square feet including Pearland Town Center in Houston (Pearland), TX; CBL Center II in Chattanooga, TN; two lifestyle/associated centers, eight mall expansions/redevelopments, and one community center. Headquartered in Chattanooga, TN, CBL has regional offices in Boston (Waltham), MA, and Dallas, TX. Additional information can be found at http://cblproperties.com. NON-GAAP FINANCIAL MEASURES Funds From Operations FFO is a widely used measure of the operating performance of real estate companies that supplements net income determined in accordance with GAAP. The National Association of Real Estate Investment Trusts ("NAREIT”) defines FFO as net income (computed in accordance with GAAP) excluding gains or losses on sales of operating properties, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures and minority interests. Adjustments for unconsolidated partnerships and joint ventures and minority interests are calculated on the same basis. The Company defines FFO allocable to common shareholders as defined above by NAREIT less dividends on preferred stock. The Company’s method of calculating FFO allocable to common shareholders may be different from methods used by other REITs and, accordingly, may not be comparable to such other REITs. The Company believes that FFO provides an additional indicator of the operating performance of its properties without giving effect to real estate depreciation and amortization, which assumes the value of real estate assets declines predictably over time. Since values of well-maintained real estate assets have historically risen with market conditions, the Company believes that FFO enhances investors’ understanding of its operating performance. The use of FFO as an indicator of financial performance is influenced not only by the operations of the Company’s properties and interest rates, but also by its capital structure. The Company presents both FFO of its operating partnership and FFO allocable to common shareholders, as it believes that both are useful performance measures. The Company believes FFO of its operating partnership is a useful performance measure since it conducts substantially all of its business through its operating partnership and, therefore, it reflects the performance of the properties in absolute terms regardless of the ratio of ownership interests of the Company’s common shareholders and the minority interest in the operating partnership. The Company believes FFO allocable to common shareholders is a useful performance measure because it is the performance measure that is most directly comparable to net income available to common shareholders. In the reconciliation of net income available to common shareholders to FFO allocable to common shareholders, the Company makes an adjustment to add back minority interest in earnings of its operating partnership in order to arrive at FFO of its operating partnership. The Company then applies a percentage to FFO of its operating partnership to arrive at FFO allocable to common shareholders. The percentage is computed by taking the weighted average number of common shares outstanding for the period and dividing it by the sum of the weighted average number of common shares and the weighted average number of operating partnership units outstanding during the period. FFO does not represent cash flows from operations as defined by accounting principles generally accepted in the United States, is not necessarily indicative of cash available to fund all cash flow needs and should not be considered as an alternative to net income for purposes of evaluating the Company’s operating performance or to cash flow as a measure of liquidity. Same-Center Net Operating Income NOI is a supplemental measure of the operating performance of the Company's shopping centers. The Company defines NOI as operating revenues (rental revenues, tenant reimbursements and other income) less property operating expenses (property operating, real estate taxes and maintenance and repairs). Similar to FFO, the Company computes NOI based on its pro rata share of both consolidated and unconsolidated properties. The Company's definition of NOI may be different than that used by other companies and, accordingly, the Company's NOI may not be comparable to that of other companies. A reconciliation of same-center NOI to net income is located at the end of this earnings release. Since NOI includes only those revenues and expenses related to the continuing operations of its shopping center properties, the Company believes that same-center NOI provides a measure that reflects trends in occupancy rates, rental rates and operating costs and the impact of those trends on the Company's results of operations. CBL Reports Second Quarter Results Pro Rata Share of Debt The Company presents debt based on its pro rata ownership share (including the Company's pro rata share of unconsolidated affiliates and excluding minority investors' share of consolidated properties) because it believes this provides investors a clearer understanding of the Company's total debt obligations which affect the Company's liquidity. A reconciliation of the Company's pro rata share of debt to the amount of debt on the Company's consolidated balance sheet is located at the end of this earnings release. 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" incorporated by reference therein, for a discussion of such risks and uncertainties.   CBL & Associates Properties, Inc. Consolidated Statements of Operations (Unaudited; in thousands, except per share amounts)     Three Months Ended June 30, Six Months Ended June 30,   2007     2006     2007     2006   REVENUES: Minimum rents $ 155,046 $ 148,447 $ 309,409 $ 299,566 Percentage rents 1,851 1,793 8,334 8,107 Other rents 3,947 3,544 8,362 7,397 Tenant reimbursements 74,992 74,292 152,715 149,934 Management, development and leasing fees 3,954 1,687 5,175 2,764 Other   6,690     5,563     11,670     11,418   Total revenues   246,480     235,326     495,665     479,186     EXPENSES: Property operating 38,850 36,607 81,917 76,949 Depreciation and amortization 60,530 54,241 117,174 108,404 Real estate taxes 19,864 20,364 40,512 39,450 Maintenance and repairs 14,011 13,436 29,312 26,001 General and administrative 10,570 9,062 20,767 18,649 Loss on impairment of real estate assets - 274 - 274 Other   4,802     4,520     8,441     8,688   Total expenses   148,627     138,504     298,123     278,415   Income from operations 97,853 96,822 197,542 200,771 Interest and other income 2,883 1,946 5,628 3,678 Interest expense (68,814 ) (63,661 ) (134,941 ) (127,590 ) Loss on extinguishment of debt - - (227 ) - Gain on sales of real estate assets 2,698 2,030 6,228 2,930 Equity in earnings of unconsolidated affiliates 1,084 1,118 1,682 3,186 Income tax provision (948 ) - (1,751 ) - Minority interest in earnings: Operating partnership (9,035 ) (17,726 ) (22,598 ) (35,855 ) Shopping center properties   (3,567 )   (673 )   (4,297 )   (1,261 ) Income before discontinued operations 22,154 19,856 47,266 45,859 Operating income from discontinued operations 534 1,499 520 3,751 Gain (loss) on disposal of discontinued operations   -     7,215     (55 )   7,215   Net income 22,688 28,570 47,731 56,825 Preferred dividends   (11,223 )   (7,642 )   (18,865 )   (15,284 ) Net income available to common shareholders $ 11,465   $ 20,928   $ 28,866   $ 41,541   Basic per share data: Income before discontinued operations, net of preferred dividends $ 0.17 $ 0.19 $ 0.44 $ 0.48 Discontinued operations   0.01     0.14     -     0.18   Net income available to common shareholders $ 0.18   $ 0.33   $ 0.44   $ 0.66   Weighted average common shares outstanding 65,246 64,003 65,178 63,333   Diluted per share data: Income before discontinued operations, net of preferred dividends $ 0.17 $ 0.19 $ 0.43 $ 0.47 Discontinued operations   -     0.13     0.01     0.17   Net income available to common shareholders $ 0.17   $ 0.32   $ 0.44   $ 0.64     Weighted average common and potential dilutive common shares outstanding 65,922 65,385 65,905 64,857   The Company's calculation of FFO allocable to Company shareholders is as follows (in thousands, except per share data):   Three Months Ended June 30, Six Months Ended June 30,   2007     2006     2007     2006     Net income available to common shareholders $ 11,465 $ 20,928 $ 28,866 $ 41,541 Minority interest in earnings of operating partnership 9,035 17,726 22,598 35,855 Depreciation and amortization expense of: Consolidated properties 60,530 54,241 117,174 108,404 Unconsolidated affiliates 3,621 3,365 7,125 6,643 Discontinued operations 435 230 859 1,348 Non-real estate assets (234 ) (210 ) (462 ) (405 ) Minority investors' share of depreciation and amortization 1,096 (568 ) 490 (1,107 ) (Gain) loss on: Sales of operating real estate assets - 38 - 38 Disposal of discontinued operations   -     (7,215 )   55     (7,215 ) Funds from operations of the operating partnership $ 85,948   $ 88,535   $ 176,705   $ 185,102     Funds from operations per diluted share $ 0.74   $ 0.76   $ 1.52   $ 1.58   Weighted average common and potential dilutive common shares outstanding with operating partnership units fully converted 116,583 116,808 116,611 116,811   Reconciliation of FFO of the operating partnership to FFO allocable to Company shareholders: Funds from operations of the operating partnership $ 85,948 $ 88,535   $ 176,705 $ 185,102 Percentage allocable to Company shareholders (1)   56.29 %   55.45 %   56.24 %   54.93 % Funds from operations allocable to Company shareholders $ 48,380   $ 49,093   $ 99,379   $ 101,677     (1) Represents the weighted average number of common shares outstanding for the period divided by the sum of the weighted average number of common shares and the weighted average number of operating partnership units outstanding during the period.     SUPPLEMENTAL FFO INFORMATION:   Lease termination fees $ 2,082 $ 2,426 $ 5,639 $ 8,294 Lease termination fees per share $ 0.02 $ 0.02 $ 0.05 $ 0.07   Straight-line rental income $ 1,254 $ 1,336 $ 2,394 $ 2,226 Straight-line rental income per share $ 0.01 $ 0.01 $ 0.02 $ 0.02   Gains on outparcel sales $ 3,352 $ 2,873 $ 7,138 $ 4,508 Gains on outparcel sales per share $ 0.03 $ 0.02 $ 0.06 $ 0.04   Amortization of acquired above- and below-market leases $ 2,762 $ 2,322 $ 5,692 $ 4,915 Amortization of acquired above- and below-market leases per share $ 0.02 $ 0.02 $ 0.05 $ 0.04   Amortization of debt premiums $ 1,928 $ 1,868 $ 3,830 $ 3,710 Amortization of debt premiums per share $ 0.02 $ 0.02 $ 0.03 $ 0.03   Loss on impairment of real estate assets $ - $ (274 ) $ - $ (274 ) Loss on impairment of real estate assets per share $ - $ - $ - $ -   Income tax provision $ (948 ) $ - $ (1,751 ) $ - Income tax provision per share $ (0.01 ) $ - $ (0.02 ) $ -   Same-Center Net Operating Income (Dollars in thousands)   Three Months EndedJune 30,   Six Months Ended June 30,   2007     2006     2007     2006     Net income $ 22,688 $ 28,570 $ 47,731 $ 56,825   Adjustments: Depreciation and amortization 60,530 54,241 117,174 108,404 Depreciation and amortization from unconsolidated affiliates 3,621 3,365 7,125 6,643 Depreciation and amortization from discontinued operations 435 230 859 1,348 Minority investors' share of depreciation and amortization in shopping center properties 1,096 (568 ) 490 (1,107 ) Interest expense 68,814 63,661 134,941 127,590 Interest expense from unconsolidated affiliates 4,206 4,275 8,398 8,669 Minority investors' share of interest expense in shopping center properties 1,294 (1,189 ) 107 (2,351 ) Loss on extinguishment of debt - - 227 - Abandoned projects expense 551 (60 ) 600 (65 ) Gain on sales of real estate assets (2,698 ) (2,030 ) (6,228 ) (2,930 ) Loss on impairment of real estate assets - 274 - 274 Gain on sales of real estate assets of unconsolidated affiliates (654 ) (804 ) (910 ) (1,537 ) Income tax provision 948 - 1,751 - Minority interest in earnings of operating partnership 9,035 17,726 22,598 35,855 (Gain) loss on disposal of discontinued operations   -     (7,215 )   55     (7,215 ) Operating partnership's share of total NOI 169,866 160,476 334,918 330,403 General and administrative expenses 10,570 9,062 20,767 18,649 Management fees and non-property level revenues   (12,454 )   (6,204 )   (19,239 )   (10,865 ) Operating partnership's share of property NOI 167,982 163,334 336,446 338,187 NOI of non-comparable centers   (3,056 )   (2,259 )   (5,418 )   (5,929 ) Total same-center NOI $ 164,926   $ 161,075   $ 331,028   $ 332,258     Malls $ 153,059 $ 149,195 $ 307,720 $ 308,535 Associated centers 7,265 7,364 14,516 14,527 Community centers 1,215 1,096 2,050 2,122 Other   3,387     3,420     6,742     7,074   Total same-center NOI $ 164,926   $ 161,075   $ 331,028   $ 332,258     Percentage Change: Malls 2.6 % -0.3 % Associated centers -1.3 % -0.1 % Community centers 10.9 % -3.4 % Other   -1.0 %   -4.7 % Total same-center NOI   2.4 %   -0.4 %   Company's Share of Consolidated and Unconsolidated Debt (Dollars in thousands) June 30, 2007 Fixed Rate Variable Rate Total Consolidated debt $ 4,066,960 $ 884,746 $ 4,951,706 Minority investors' share of consolidated debt (119,955 ) - (119,955 ) Company's share of unconsolidated affiliates' debt   217,532     36,858     254,390   Company's share of consolidated and unconsolidated debt $ 4,164,537   $ 921,604   $ 5,086,141   Weighted average interest rate   5.91 %   6.20 %   5.96 %   June 30, 2006 Fixed Rate Variable Rate Total Consolidated debt $ 3,247,156 $ 1,119,463 $ 4,366,619 Minority investors' share of consolidated debt (51,436 ) - (51,436 ) Company's share of unconsolidated affiliates' debt   225,447     26,600     252,047   Company's share of consolidated and unconsolidated debt $ 3,421,167   $ 1,146,063   $ 4,567,230   Weighted average interest rate   5.99 %   6.21 %   6.04 %     Debt-To-Total-Market Capitalization Ratio as of June 30, 2007 (In thousands, except stock price) SharesOutstanding Stock Price (1) Value Common stock and operating partnership units 116,285 $ 36.05 $ 4,192,074 7.75% Series C Cumulative Redeemable Preferred Stock 460 250.00 115,000 7.375% Series D Cumulative Redeemable Preferred Stock 700 250.00   175,000   Total market equity 4,482,074 Company's share of total debt   5,086,141   Total market capitalization $ 9,568,215   Debt-to-total-market capitalization ratio   53.2 %   (1) Stock price for common stock and operating partnership units equals the closing price of the common stock on June 29, 2007. The stock price for the preferred stock represents the liquidation preference of each respective series of preferred stock.       Reconciliation of Shares and Operating Partnership Units Outstanding (In thousands) Three Months Ended Six Months Ended June 30, June 30, 2007: Basic Diluted Basic Diluted Weighted average shares - EPS 65,246 65,922 65,178 65,905 Weighted average operating partnership units   50,661     50,661     50,705     50,706   Weighted average shares- FFO   115,907     116,583     115,883     116,611     2006: Weighted average shares - EPS 64,003 65,385 63,333 64,857 Weighted average operating partnership units   51,423     51,423     51,955     51,954   Weighted average shares- FFO   115,426     116,808     115,288     116,811       Dividend Payout Ratio Three Months Ended Six Months Ended June 30, June 30,   2007     2006     2007     2006   Weighted average dividend per share $ 0.51031 $ 0.46388 $ 1.02630 $ 0.92777 FFO per diluted, fully converted share $ 0.74   $ 0.76   $ 1.52   $ 1.58   Dividend payout ratio   69.0 %   61.0 %   67.5 %   58.7 %   Consolidated Balance Sheets (Unaudited, in thousands except share data)       June 30, 2007 December 31, 2006 ASSETS Real estate assets: Land $ 808,304 $ 779,727 Buildings and improvements   6,086,572     5,944,476   6,894,876 6,724,203 Less: accumulated depreciation   (999,471 )   (924,297 ) 5,895,405 5,799,906 Held for Sale 28,992 - Developments in progress   306,470     294,345   Net investment in real estate assets 6,230,867 6,094,251 Cash and cash equivalents 58,245 28,700 Receivables: Tenant, net of allowance 61,415 71,573 Other 16,132 9,656 Mortgage notes receivable 32,872 21,559 Investments in unconsolidated affiliates 98,000 78,826 Other assets   230,212     214,245   $ 6,727,743   $ 6,518,810   LIABILITIES AND SHAREHOLDERS' EQUITY Mortgage and other notes payable $ 4,951,706 $ 4,564,535 Accounts payable and accrued liabilities   309,195     309,969   Total liabilities   5,260,901     4,874,504   Commitments and contingencies Minority interests   516,732     559,450   Shareholders' equity: Preferred Stock, $.01 par value, 15,000,000 shares authorized: 8.75% Series B Cumulative Redeemable Preferred Stock, 2,000,000 shares outstanding - 20 7.75% Series C Cumulative Redeemable Preferred Stock, 460,000 shares outstanding 5 5 7.375% Series D Cumulative Redeemable Preferred Stock, 700,000 shares outstanding 7 7 Common Stock, $.01 par value, 180,000,000 shares authorized, 65,645,516 and 65,421,311 issued and outstanding in 2007 and 2006, respectively 656 654 Additional paid-in capital 979,611 1,074,450 Accumulated other comprehensive (loss) income (2,453 ) 19 (Accumulated deficit) retained earnings   (27,716 )   9,701   Total shareholders' equity   950,110     1,084,856   $ 6,727,743   $ 6,518,810