CBL To Write Down Securities

CBL & Associates Properties Inc., Chattanooga, Tenn., is revising its 2007 funds from operations guidance to a range of $3.09 to $3.11 per share as a result of an $18.5 million non-cash write down of marketable real estate securities related to a significant decline in fair value during the fourth quarter 2007. It also made a decision to delay the previously announced recognition of $7.0 million of fee income from an affiliate of Centro Properties Group due to its uncertainty and it is reducing its FFO by $0.05 per share related to other non-operating items. John N. Foy, vice chairman and chief financial officer, said, "Although we do not invest in securities for trading purposes, from time to time we have made investments in marketable real estate securities that we believed were not only attractive as stand-alone investments, but may also represent strategic investments. However, based on current market valuations, we determined that it was necessary to recognize the significant decline in value of these marketable securities in our results. It is important to note that these items, which include non-cash and one-time charges, do not reflect upon the performance of our properties. While the current operating environment is challenging, we are continuing to execute our business with a conservative approach and careful consideration of capital allocation."