CBL Properties Reports Outstanding Results for Fourth Quarter and Full-Year 2025
Key Terms
funds from operations ("ffo") financial
same-center noi financial
non-gaap financial measure financial
non-recourse loan financial
cap rate financial
basis points financial
sofr financial
2025 FFO and NOI Results Near High-End of Guidance Range
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net income attributable to common shareholders |
|
$ |
1.56 |
|
|
$ |
1.22 |
|
|
$ |
4.34 |
|
|
$ |
1.87 |
|
Funds from Operations ("FFO") |
|
$ |
1.91 |
|
|
$ |
2.42 |
|
|
$ |
6.74 |
|
|
$ |
6.40 |
|
FFO, as adjusted (1) |
|
$ |
2.25 |
|
|
$ |
1.92 |
|
|
$ |
7.21 |
|
|
$ |
6.69 |
|
(1) |
For a reconciliation of FFO to FFO, as adjusted, for the periods presented, please refer to the footnotes to the Company’s reconciliation of net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 8 of this news release. |
KEY TAKEAWAYS:
-
Same-center NOI for Q4 2025 increased
3.3% compared with the prior-year period. FFO, as adjusted, per share for Q4 2025 was$2.25 $1.92 0.5% compared with the prior-year period. FFO, as adjusted, per share was$7.21 $6.69 -
Same-center occupancy for malls, lifestyle centers and outlet centers was
88.6% , flat from the prior year-end. Portfolio occupancy declined 30 basis points to90.0% as of December 31, 2025, compared with portfolio occupancy of90.3% as of December 31, 2024. Bankruptcy related store closures, including the closures of Forever21, JoAnn, Claire's and Party City locations, representing approximately 107,000 square feet, negatively impacted mall occupancy by nearly 75 basis points compared with the prior-year period. -
For the full year, more than 4.0 million square feet of leases were executed, including 2.4 million square feet of comparable new and renewal leases signed at a
2.6% increase in average rents versus the prior rents. In the fourth quarter 2025, 1.3 million square feet of leases were executed, including comparable new and renewal leases of approximately 759,000 square feet signed at a2.9% decline in average rents versus the prior rents. The decline was driven by comparable mall renewal spreads of (5.3)%, partially offset by a nearly15% increase in spreads on new mall leases compared to the expiring rents. Renewal spreads were impacted by the renewal of several maturing leases with higher occupancy costs. -
Same-center tenant sales per square foot for the fourth quarter 2025 increased approximately
3.7% as compared with the prior-year period. Same-center tenant sales per square foot for 2025, of$437 2.8% as compared with the prior-year period. -
As of December 31, 2025, the Company had
$335.4 million -
In 2025, CBL closed on dispositions generating approximately
$240.7 million Slidell, LA .
“2025 was an exceptional year for CBL, with strong operating performance and meaningful progress on our key strategic priorities,” said Stephen D. Lebovitz, Chief Executive Officer of CBL Properties. “We were particularly proud of the more than
"We also made major progress improving our balance sheet and positioning our company for solid cash flow generation and long-term growth. We generated approximately
“As we look ahead to 2026, we are focused on building on the progress achieved in 2025 by further strengthening our balance sheet, pursuing our portfolio optimization strategy to enhance the quality and growth profile of our assets, and sustaining operational momentum to drive improvements in occupancy and rent. We have made incredible progress in recent years in positioning CBL to take advantage of opportunities in our industry and to continue creating significant return of capital and value for our shareholders."
Same-center Net Operating Income (“NOI”) (1):
|
|
Three Months Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Total Revenues |
|
$ |
166,613 |
|
|
$ |
163,390 |
|
Total Expenses |
|
$ |
(50,007 |
) |
|
$ |
(50,540 |
) |
Total portfolio same-center NOI |
|
$ |
116,606 |
|
|
$ |
112,850 |
|
Total same-center NOI percentage change |
|
|
3.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
||
Estimate for uncollectable revenues (recovery) |
|
$ |
50 |
|
|
$ |
866 |
|
(1) |
CBL’s definition of same-center NOI excludes the impact of lease termination fees and certain non-cash items such as straight-line rents and reimbursements, write-offs of landlord inducements and net amortization of above and below market leases. |
Same-center NOI for the fourth quarter 2025 increased
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Total Revenues |
|
$ |
627,181 |
|
|
$ |
619,237 |
|
Total Expenses |
|
$ |
(206,710 |
) |
|
$ |
(200,772 |
) |
Total portfolio same-center NOI |
|
$ |
420,471 |
|
|
$ |
418,465 |
|
Total same-center NOI percentage change |
|
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
||
Estimate for uncollectable revenues (recovery) |
|
$ |
3,050 |
|
|
$ |
3,032 |
|
Same-center NOI for the year ended December 31, 2025 increased
PORTFOLIO OPERATIONAL RESULTS
Occupancy(1):
|
|
As of December 31, |
||
|
|
2025 |
|
2024 |
Total portfolio |
|
|
|
|
Malls, lifestyle centers and outlet centers: |
|
|
|
|
Total malls |
|
|
|
|
Total lifestyle centers |
|
|
|
|
Total outlet centers |
|
|
|
|
Total same-center malls, lifestyle centers and outlet centers |
|
|
|
|
Open-air centers |
|
|
|
|
All Other Properties |
|
|
|
|
(1) |
Occupancy for malls, lifestyle centers and outlet centers represent percentage of in-line gross leasable area under 20,000 square feet occupied. Occupancy for open-air centers represents percentage of gross leasable area occupied. |
New and Renewal Leasing Activity of Same Small Shop Space Less Than 10,000 Square Feet:
% Change in Average Gross Rent Per Square Foot: |
|
|
|
|
|
|
Three Months Ended
|
|
Year Ended
|
|
|
2025 |
|
2025 |
All Property Types |
|
(2.9)% |
|
|
Stabilized Malls, Lifestyle Centers and Outlet Centers |
|
(4.0)% |
|
|
New leases |
|
|
|
|
Renewal leases |
|
(5.3)% |
|
(1.5)% |
Open-air Centers |
|
|
|
|
Same-Center Sales Per Square Foot for In-line Tenants 10,000 Square Feet or Less:
|
|
Sales Per Square Foot for the Trailing
|
|
|
|
|||||
|
|
2025 |
|
|
2024 |
|
|
% Change |
||
Malls, lifestyle centers and outlet centers same-center sales per square foot |
|
$ |
437 |
|
|
$ |
426 |
|
|
|
DIVIDEND
On February 11, 2026, CBL announced a cash dividend of
FINANCING ACTIVITY
On November 1, 2025, CBL exercised the one-year extension option for its non-recourse term loan, extending its maturity to November 2026. CBL also anticipates meeting the second extension test, which requires a principal balance of
In October, CBL and its joint venture partner closed on a new
CBL and its joint venture partner closed on an agreement with the existing lender for the non-recourse loan secured by Coastal Grand and Crossing in
In October, CBL and its joint venture partner also entered into a 9-month extension for the
In July, CBL closed on a
In July, Southpark Mall in
In May 2025, CBL exercised the one-year extension option on the loan secured by Fayette Mall in
In March, the conveyance of Alamance Crossing East, in
CBL is in discussions with the lenders on Jefferson Mall in
TRANSACTION ACTIVITY
In 2025, CBL closed on dispositions generating approximately
In October, CBL completed the sale of its interest in Fremaux Town Center in
In July, CBL closed on the acquisition of four dominant enclosed regional malls for
Concurrently with the transaction close, CBL completed a modification and extension of its existing
STOCK REPURCHASE PROGRAM
On May 1, 2025, CBL announced that its Board of Directors authorized a stock repurchase program for the Company to buy up to
DEVELOPMENT AND REDEVELOPMENT ACTIVITY
Detailed project information is available in CBL’s Financial Supplement for Q4 2025, which can be found in the Invest – Financial Reports section of CBL’s website at cblproperties.com
OUTLOOK AND GUIDANCE
CBL is initiating FFO, as adjusted, guidance for 2026 in the range of
|
|
Low |
|
|
High |
|
||
2026 Net Income |
|
$ |
23.6 |
|
|
$ |
33.6 |
|
2026 FFO, as adjusted (in millions) |
|
$ |
210.2 |
|
|
$ |
220.2 |
|
2026 WA Share Count |
|
|
31.2 |
|
|
|
31.2 |
|
2026 FFO, as adjusted, per share |
|
$ |
6.74 |
|
|
$ |
7.06 |
|
2026 Same-Center NOI ("SC NOI") (in millions) (1) |
|
$ |
396.3 |
|
|
$ |
405.6 |
|
2026 change in same-center NOI |
|
|
(1.2 |
)% |
|
|
1.1 |
% |
|
2026 SC NOI
|
|
2026 SC NOI
|
|
Category Explanation |
||
2025 same-center NOI |
$ |
401.3 |
|
$ |
401.3 |
|
Non-core/Lender assets excluded from same center pool: Arbor Place Mall, Brookfield Square, Eastland Mall, Harford Mall, Jefferson Mall, Laurel Park Mall, Old Hickory Mall, Southpark Mall, The Outlets of |
Net impact from new and renewal leasing activity |
|
4.0 |
|
|
8.5 |
|
Net impact of new leases, renewal leases and contractual rent bumps for permanent and specialty leasing. |
Percentage rent |
|
(1.5 |
) |
|
- |
|
Represents impact of flat to moderate sales growth in 2026 offset by higher breakpoints upon lease renewal and conversion of percentage rent to base rent on renewal. |
Operating expense |
|
(3.5 |
) |
|
(1.5 |
) |
Represents potential increase in operating expenses. |
Credit loss |
|
(1.0 |
) |
|
(0.8 |
) |
Unbudgeted reserve for tenants that may file for bankruptcy/close stores. |
Uncollectable revenue variance |
|
(3.0 |
) |
|
(2.0 |
) |
Represents the estimated impact of a variance in the estimate for uncollectable revenues. |
2026 SC NOI Guidance |
$ |
396.3 |
|
$ |
405.6 |
|
|
% change |
|
(1.2 |
)% |
|
1.1 |
% |
|
Reconciliation of GAAP Earnings Per Share to 2026 FFO, as Adjusted, Per Share:
|
|
Low |
|
|
High |
|
||
Expected diluted earnings per common share |
|
$ |
0.60 |
|
|
$ |
0.92 |
|
Depreciation and amortization |
|
|
4.85 |
|
|
|
4.85 |
|
Expected FFO, per diluted, fully converted common share |
|
|
5.45 |
|
|
|
5.77 |
|
Debt discount accretion, net of noncontrolling interests' share |
|
|
0.70 |
|
|
|
0.70 |
|
Adjustment for unconsolidated affiliates with negative investment |
|
|
0.59 |
|
|
|
0.59 |
|
Expected FFO, as adjusted, per diluted, fully converted common share |
|
$ |
6.74 |
|
|
$ |
7.06 |
|
Reconciliation of Net Income to SC NOI (in millions):
|
|
Low |
|
|
High |
|
||
Net income (loss) |
|
$ |
23.6 |
|
|
$ |
33.6 |
|
Adjustments (1): |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
151.0 |
|
|
|
151.0 |
|
Adjustments for unconsolidated affiliates(2) |
|
|
24.1 |
|
|
|
24.1 |
|
Non-comparable property NOI |
|
|
(44.7 |
) |
|
|
(44.7 |
) |
Other (income) expenses, net(3) |
|
|
185.5 |
|
|
|
185.5 |
|
Non-property (income) expenses, net(4) |
|
|
56.8 |
|
|
|
56.1 |
|
Total Same-Center NOI |
|
$ |
396.3 |
|
|
$ |
405.6 |
|
(1) |
Adjustments are based on our Operating Partnership’s pro rata ownership share, including our share of unconsolidated affiliates and excluding noncontrolling interests’ share of consolidated properties |
(2) |
GAAP adjustments for unconsolidated affiliates, including those with negative investment. |
(3) |
Property-level (income) expenses, net, that are not included in NOI, including but not limited to, interest expense, gains on sales of non-depreciable real estate assets, straight-line rent and above- and below-market lease amortization. |
(4) |
Non-property (income) expenses, net, that are not included in NOI, including but not limited to, fee income and general and administrative expenses. |
2026 Estimate of Capital Items (in millions):
|
|
Low |
|
High |
|
||
2026 Estimated maintenance capital/tenant allowances (1) |
|
$ |
50.0 |
|
$ |
55.0 |
|
2026 Estimated development/redevelopment expenditures |
|
|
15.0 |
|
|
20.0 |
|
2026 Estimated principal amortization (including est. term loan ECF) |
|
|
90.0 |
|
|
95.0 |
|
Total Estimate |
|
$ |
155.0 |
|
$ |
170.0 |
|
(1) |
Excludes amounts related to properties which have |
ABOUT CBL PROPERTIES
Headquartered in
NON-GAAP FINANCIAL MEASURES
Funds From Operations
FFO is a widely used non-GAAP measure of the operating performance of real estate companies that supplements net income (loss) determined in accordance with GAAP. The National Association of Real Estate Investment Trusts ("NAREIT") defines FFO as net income (loss) (computed in accordance with GAAP) excluding gains or losses on sales of depreciable operating properties and impairment losses of depreciable properties, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests. Adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests are calculated on the same basis. We define FFO as defined above by NAREIT. The Company’s method of calculating FFO 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 believes FFO allocable to Operating Partnership common unitholders 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 noncontrolling interest in the Operating Partnership.
In the reconciliation of net income (loss) attributable to the Company’s common shareholders to FFO allocable to Operating Partnership common unitholders, located in this earnings release, the Company makes an adjustment to add back noncontrolling interest in income (loss) of its Operating Partnership in order to arrive at FFO of the Operating Partnership common unitholders.
FFO does not represent cash flows from operations as defined by GAAP, is not necessarily indicative of cash available to fund all cash flow needs and should not be considered as an alternative to net income (loss) for purposes of evaluating the Company’s operating performance or to cash flow as a measure of liquidity.
The Company believes that it is important to identify the impact of certain significant items on its FFO measures for a reader to have a complete understanding of the Company’s results of operations. Therefore, the Company has also presented adjusted FFO measures excluding these items from the applicable periods. Please refer to the reconciliation of net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 8 of this news release for a description of these adjustments.
Same-center Net Operating Income
NOI is a supplemental non-GAAP measure of the operating performance of the Company’s shopping centers and other properties. The Company defines NOI as property operating revenues (rental revenues, tenant reimbursements and other income) less property operating expenses (property operating, real estate taxes and maintenance and repairs).
The Company computes NOI based on the Operating Partnership’s pro rata share of both consolidated and unconsolidated properties. The Company believes that presenting NOI and same-center NOI (described below) based on its Operating Partnership’s pro rata share of both consolidated and unconsolidated properties is useful since the Company 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 noncontrolling interest in the Operating Partnership. The Company's definition of NOI may be different than that used by other companies and, accordingly, the Company's calculation of NOI may not be comparable to that of other companies.
Since NOI includes only those revenues and expenses related to the operations of the Company’s shopping center properties, the Company believes that same-center NOI provides a measure that reflects trends in occupancy rates, rental rates, sales at the malls and operating costs and the impact of those trends on the Company’s results of operations. The Company’s calculation of same-center NOI excludes lease termination income, straight-line rent adjustments, amortization of above and below market lease intangibles and write-off of landlord inducement assets in order to enhance the comparability of results from one period to another. A reconciliation of same-center NOI to net income (loss) is located at the end of this earnings release.
Pro Rata Share of Debt
The Company presents debt based on the carrying value of its pro rata ownership share (including the carrying value of the Company’s pro rata share of unconsolidated affiliates and excluding noncontrolling interests’ 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 condensed 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” included therein, for a discussion of such risks and uncertainties.
Consolidated Statements of Operations (Unaudited; in thousands, except per share amounts) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Rental revenues |
|
$ |
150,386 |
|
|
$ |
125,786 |
|
|
$ |
558,985 |
|
|
$ |
493,876 |
|
Management, development and leasing fees |
|
|
1,214 |
|
|
|
1,897 |
|
|
|
5,114 |
|
|
|
7,609 |
|
Other |
|
|
4,820 |
|
|
|
4,007 |
|
|
|
14,274 |
|
|
|
14,076 |
|
Total revenues |
|
|
156,420 |
|
|
|
131,690 |
|
|
|
578,373 |
|
|
|
515,561 |
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Property operating |
|
|
(25,097 |
) |
|
|
(22,149 |
) |
|
|
(101,941 |
) |
|
|
(90,052 |
) |
Depreciation and amortization |
|
|
(40,013 |
) |
|
|
(31,561 |
) |
|
|
(165,156 |
) |
|
|
(140,591 |
) |
Real estate taxes |
|
|
(13,730 |
) |
|
|
(11,797 |
) |
|
|
(57,458 |
) |
|
|
(47,365 |
) |
Maintenance and repairs |
|
|
(11,522 |
) |
|
|
(9,725 |
) |
|
|
(44,954 |
) |
|
|
(37,732 |
) |
General and administrative |
|
|
(15,358 |
) |
|
|
(16,607 |
) |
|
|
(69,040 |
) |
|
|
(67,254 |
) |
Loss on impairment |
|
|
— |
|
|
|
(625 |
) |
|
|
(3,193 |
) |
|
|
(1,461 |
) |
Litigation settlement |
|
|
— |
|
|
|
400 |
|
|
|
— |
|
|
|
553 |
|
Other |
|
|
18 |
|
|
|
(88 |
) |
|
|
(57 |
) |
|
|
(230 |
) |
Total expenses |
|
|
(105,702 |
) |
|
|
(92,152 |
) |
|
|
(441,799 |
) |
|
|
(384,132 |
) |
OTHER INCOME (EXPENSES): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and other income |
|
|
3,371 |
|
|
|
3,604 |
|
|
|
13,250 |
|
|
|
15,713 |
|
Interest expense |
|
|
(42,999 |
) |
|
|
(36,418 |
) |
|
|
(175,962 |
) |
|
|
(154,486 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(217 |
) |
|
|
(819 |
) |
Gain on deconsolidation |
|
|
— |
|
|
|
— |
|
|
|
33,851 |
|
|
|
— |
|
Gain on consolidation |
|
|
— |
|
|
|
26,727 |
|
|
|
— |
|
|
|
26,727 |
|
Gain on sales of real estate assets |
|
|
130 |
|
|
|
189 |
|
|
|
74,229 |
|
|
|
16,676 |
|
Income tax provision |
|
|
(529 |
) |
|
|
(199 |
) |
|
|
(475 |
) |
|
|
(1,055 |
) |
Equity in earnings of unconsolidated affiliates |
|
|
38,230 |
|
|
|
4,106 |
|
|
|
53,276 |
|
|
|
22,932 |
|
Total other income (expenses), net |
|
|
(1,797 |
) |
|
|
(1,991 |
) |
|
|
(2,048 |
) |
|
|
(74,312 |
) |
Net income |
|
|
48,921 |
|
|
|
37,547 |
|
|
|
134,526 |
|
|
|
57,117 |
|
Net (income) loss attributable to noncontrolling interests in: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Partnership |
|
|
(13 |
) |
|
|
(3 |
) |
|
|
(21 |
) |
|
|
(4 |
) |
Other consolidated subsidiaries |
|
|
83 |
|
|
|
434 |
|
|
|
1,462 |
|
|
|
1,857 |
|
Net income attributable to the Company |
|
|
48,991 |
|
|
|
37,978 |
|
|
|
135,967 |
|
|
|
58,970 |
|
Earnings allocable to unvested restricted stock |
|
|
(729 |
) |
|
|
(770 |
) |
|
|
(2,089 |
) |
|
|
(1,206 |
) |
Net income attributable to common shareholders |
|
$ |
48,262 |
|
|
$ |
37,208 |
|
|
$ |
133,878 |
|
|
$ |
57,764 |
|
Basic and diluted per share data attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per share |
|
$ |
1.60 |
|
|
$ |
1.23 |
|
|
$ |
4.41 |
|
|
$ |
1.87 |
|
Diluted earnings per share |
|
|
1.56 |
|
|
|
1.22 |
|
|
|
4.34 |
|
|
|
1.87 |
|
Weighted-average basic shares |
|
|
30,094 |
|
|
|
30,178 |
|
|
|
30,343 |
|
|
|
30,905 |
|
Weighted-average diluted shares |
|
|
31,093 |
|
|
|
30,400 |
|
|
|
30,841 |
|
|
|
30,962 |
|
The Company's reconciliation of net income attributable to common shareholders to FFO allocable to Operating Partnership common unitholders is as follows: (in thousands, except per share data) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net income attributable to common shareholders |
|
$ |
48,262 |
|
|
$ |
37,208 |
|
|
$ |
133,878 |
|
|
$ |
57,764 |
|
Noncontrolling interest in income of Operating Partnership |
|
|
13 |
|
|
|
3 |
|
|
|
21 |
|
|
|
4 |
|
Earnings allocable to unvested restricted stock |
|
|
37 |
|
|
|
770 |
|
|
|
26 |
|
|
|
1,206 |
|
Depreciation and amortization expense of: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consolidated properties |
|
|
40,013 |
|
|
|
31,561 |
|
|
|
165,156 |
|
|
|
140,591 |
|
Unconsolidated affiliates |
|
|
3,137 |
|
|
|
4,141 |
|
|
|
12,992 |
|
|
|
16,137 |
|
Non-real estate assets |
|
|
(263 |
) |
|
|
(418 |
) |
|
|
(1,005 |
) |
|
|
(1,187 |
) |
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries |
|
|
(361 |
) |
|
|
(446 |
) |
|
|
(1,551 |
) |
|
|
(1,916 |
) |
Loss on impairment, including our share of unconsolidated affiliates, net of taxes |
|
|
— |
|
|
|
625 |
|
|
|
3,496 |
|
|
|
1,244 |
|
Gain on depreciable property, net of taxes |
|
|
(31,404 |
) |
|
|
— |
|
|
|
(104,046 |
) |
|
|
(15,651 |
) |
FFO allocable to Operating Partnership common unitholders |
|
|
59,434 |
|
|
|
73,444 |
|
|
|
208,967 |
|
|
|
198,192 |
|
Debt discount accretion, including our share of unconsolidated affiliates and net of noncontrolling interests' share (1) |
|
|
8,166 |
|
|
|
10,327 |
|
|
|
35,750 |
|
|
|
44,929 |
|
Adjustment for unconsolidated affiliates with negative investment (2) |
|
|
2,358 |
|
|
|
1,494 |
|
|
|
12,811 |
|
|
|
(9,974 |
) |
Litigation settlement (3) |
|
|
— |
|
|
|
(400 |
) |
|
|
— |
|
|
|
(553 |
) |
Non-cash default interest expense (4) |
|
|
118 |
|
|
|
374 |
|
|
|
(328 |
) |
|
|
606 |
|
Gain on deconsolidation (5) |
|
|
— |
|
|
|
— |
|
|
|
(33,851 |
) |
|
|
— |
|
Gain on consolidation (6) |
|
|
— |
|
|
|
(26,727 |
) |
|
|
— |
|
|
|
(26,727 |
) |
Loss on extinguishment of debt (7) |
|
|
— |
|
|
|
— |
|
|
|
217 |
|
|
|
819 |
|
FFO allocable to Operating Partnership common unitholders, as adjusted |
|
$ |
70,076 |
|
|
$ |
58,512 |
|
|
$ |
223,566 |
|
|
$ |
207,292 |
|
FFO per diluted share |
|
$ |
1.91 |
|
|
$ |
2.42 |
|
|
$ |
6.74 |
|
|
$ |
6.40 |
|
FFO, as adjusted, per diluted share |
|
$ |
2.25 |
|
|
$ |
1.92 |
|
|
$ |
7.21 |
|
|
$ |
6.69 |
|
Weighted-average common and potential dilutive common units outstanding |
|
|
31,098 |
|
|
|
30,406 |
|
|
|
31,025 |
|
|
|
30,967 |
|
(1) |
In conjunction with the acquisition of the Company's partners' |
(2) |
Represents the Company’s share of the earnings (losses) before depreciation and amortization expense of unconsolidated affiliates where the Company is recognizing equity in earnings (losses) on a cash basis because its investment in the unconsolidated affiliate is below zero. |
(3) |
Represents a credit to litigation settlement expense related to claim amounts that were released pursuant to the terms of the settlement agreement related to the settlement of a class action lawsuit. |
(4) |
The three months and year ended December 31, 2025 include default interest on a loan past its maturity date and the reversal of previously accrued default interest. The three months and year ended December 31, 2024 include default interest on loans past their maturity dates. |
(5) |
For the year ended December 31, 2025, the Company deconsolidated Southpark Mall due to a loss of control when the property was placed into receivership in connection with the foreclosure process. |
(6) |
For the year ended December 31, 2024, the Company closed on the acquisition of its partners' |
(7) |
During the years ended December 31, 2025 and 2024, the Company made a partial paydown on the 2032 non-recourse bank loan (previously referred to as the "open-air centers and outparcels loan") and recognized loss on extinguishment of debt related to prepayment fees. |
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
|||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Diluted EPS attributable to common shareholders |
|
$ |
1.56 |
|
|
$ |
1.22 |
|
|
$ |
4.34 |
|
|
$ |
1.87 |
|
Add amounts per share included in FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings allocable to unvested restricted stock |
|
|
— |
|
|
|
0.03 |
|
|
|
(0.02 |
) |
|
|
0.03 |
|
Eliminate amounts per share excluded from FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization expense, including amounts from
|
|
|
1.35 |
|
|
|
1.15 |
|
|
|
5.66 |
|
|
|
4.96 |
|
Loss on impairment, net of taxes |
|
|
— |
|
|
|
0.02 |
|
|
|
0.11 |
|
|
|
0.04 |
|
Gain on depreciable property, net of taxes |
|
|
(1.00 |
) |
|
|
— |
|
|
|
(3.35 |
) |
|
|
(0.50 |
) |
FFO per diluted share |
|
$ |
1.91 |
|
|
$ |
2.42 |
|
|
$ |
6.74 |
|
|
$ |
6.40 |
|
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
SUPPLEMENTAL FFO INFORMATION: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Lease termination fees |
|
$ |
300 |
|
|
$ |
144 |
|
|
$ |
2,088 |
|
|
$ |
2,357 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Straight-line rental income adjustment |
|
$ |
701 |
|
|
$ |
804 |
|
|
$ |
370 |
|
|
$ |
974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain on outparcel sales, net of taxes |
|
$ |
135 |
|
|
$ |
257 |
|
|
$ |
3,148 |
|
|
$ |
951 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net amortization of acquired above- and below-market leases |
|
$ |
(4,151 |
) |
|
$ |
(5,134 |
) |
|
$ |
(14,759 |
) |
|
$ |
(15,616 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax provision |
|
$ |
(529 |
) |
|
$ |
(199 |
) |
|
$ |
(475 |
) |
|
$ |
(1,055 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Abandoned projects expense |
|
$ |
— |
|
|
$ |
(88 |
) |
|
$ |
(27 |
) |
|
$ |
(230 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest capitalized |
|
$ |
126 |
|
|
$ |
134 |
|
|
$ |
518 |
|
|
$ |
562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Estimate of uncollectable revenues |
|
$ |
(1,277 |
) |
|
$ |
(870 |
) |
|
$ |
(4,995 |
) |
|
$ |
(5,085 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
As of December 31, |
|
|||||||
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
||||
Straight-line rent receivable |
|
|
|
|
|
|
|
$ |
25,036 |
|
|
$ |
23,789 |
|
||
Same-center Net Operating Income (Dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net income |
|
$ |
48,921 |
|
|
$ |
37,547 |
|
|
$ |
134,526 |
|
|
$ |
57,117 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
40,013 |
|
|
|
31,561 |
|
|
|
165,156 |
|
|
|
140,591 |
|
Depreciation and amortization from unconsolidated affiliates |
|
|
3,137 |
|
|
|
4,141 |
|
|
|
12,992 |
|
|
|
16,137 |
|
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries |
|
|
(361 |
) |
|
|
(446 |
) |
|
|
(1,551 |
) |
|
|
(1,916 |
) |
Interest expense |
|
|
42,999 |
|
|
|
36,418 |
|
|
|
175,962 |
|
|
|
154,486 |
|
Interest expense from unconsolidated affiliates |
|
|
7,112 |
|
|
|
16,070 |
|
|
|
27,682 |
|
|
|
67,108 |
|
Noncontrolling interests' share of interest expense in other consolidated subsidiaries |
|
|
(803 |
) |
|
|
(1,044 |
) |
|
|
(3,909 |
) |
|
|
(4,240 |
) |
Abandoned projects expense |
|
|
— |
|
|
|
88 |
|
|
|
27 |
|
|
|
230 |
|
Gain on sales of real estate assets |
|
|
(130 |
) |
|
|
(189 |
) |
|
|
(74,229 |
) |
|
|
(16,676 |
) |
Gain on sales of real estate assets of unconsolidated affiliates |
|
|
(31,700 |
) |
|
|
(68 |
) |
|
|
(33,567 |
) |
|
|
(68 |
) |
Adjustment for unconsolidated affiliates with negative investment |
|
|
2,358 |
|
|
|
1,494 |
|
|
|
12,811 |
|
|
|
(9,974 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
217 |
|
|
|
819 |
|
Gain on deconsolidation |
|
|
— |
|
|
|
— |
|
|
|
(33,851 |
) |
|
|
— |
|
Gain on consolidation |
|
|
— |
|
|
|
(26,727 |
) |
|
|
— |
|
|
|
(26,727 |
) |
Loss on impairment, including our share of unconsolidated affiliates |
|
|
— |
|
|
|
625 |
|
|
|
3,875 |
|
|
|
1,461 |
|
Litigation settlement |
|
|
— |
|
|
|
(400 |
) |
|
|
— |
|
|
|
(553 |
) |
Income tax provision |
|
|
529 |
|
|
|
199 |
|
|
|
475 |
|
|
|
1,055 |
|
Lease termination fees |
|
|
(300 |
) |
|
|
(144 |
) |
|
|
(2,088 |
) |
|
|
(2,357 |
) |
Straight-line rent and above- and below-market lease amortization |
|
|
3,450 |
|
|
|
4,330 |
|
|
|
14,389 |
|
|
|
14,642 |
|
Net loss attributable to noncontrolling interests in other consolidated subsidiaries |
|
|
83 |
|
|
|
434 |
|
|
|
1,462 |
|
|
|
1,857 |
|
General and administrative expenses |
|
|
15,358 |
|
|
|
16,607 |
|
|
|
69,040 |
|
|
|
67,254 |
|
Management fees and non-property level revenues |
|
|
(6,200 |
) |
|
|
(5,979 |
) |
|
|
(22,121 |
) |
|
|
(25,049 |
) |
Operating Partnership's share of property NOI |
|
|
124,466 |
|
|
|
114,517 |
|
|
|
447,298 |
|
|
|
435,197 |
|
Non-comparable NOI |
|
|
(7,860 |
) |
|
|
(1,667 |
) |
|
|
(26,827 |
) |
|
|
(16,732 |
) |
Total same-center NOI (1)(2) |
|
$ |
116,606 |
|
|
$ |
112,850 |
|
|
$ |
420,471 |
|
|
$ |
418,465 |
|
Total same-center NOI percentage change |
|
|
3.3 |
% |
|
|
|
|
|
0.5 |
% |
|
|
|
||
(1) |
CBL defines NOI as property operating revenues (rental revenues, tenant reimbursements and other income), less property operating expenses (property operating, real estate taxes and maintenance and repairs). NOI excludes lease termination income, straight-line rent adjustments, amortization of above and below market lease intangibles and write-offs of landlord inducement assets. We include a property in our same-center pool when we own all or a portion of the property as of December 31, 2025, and we owned it and it was in operation for both the entire preceding calendar year and the current year-to-date reporting period ending December 31, 2025. New properties are excluded from same-center NOI, until they meet these criteria. Properties excluded from the same-center pool that would otherwise meet these criteria are properties which are under major redevelopment or being considered for repositioning, where we intend to renegotiate the terms of the debt secured by the related property or return the property to the lender. |
(2) |
Due to the purchase of the Company's joint venture partner's |
Same-center Net Operating Income (Dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
|
Year Ended December 31, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Malls |
|
$ |
83,420 |
|
|
$ |
81,617 |
|
|
$ |
294,287 |
|
|
$ |
295,680 |
|
Outlet centers |
|
|
5,915 |
|
|
|
5,933 |
|
|
|
21,793 |
|
|
|
22,225 |
|
Lifestyle centers |
|
|
10,115 |
|
|
|
8,698 |
|
|
|
37,203 |
|
|
|
34,099 |
|
Open-air centers |
|
|
11,344 |
|
|
|
11,115 |
|
|
|
44,755 |
|
|
|
44,822 |
|
Outparcels and other |
|
|
5,812 |
|
|
|
5,487 |
|
|
|
22,433 |
|
|
|
21,639 |
|
Total same-center NOI |
|
$ |
116,606 |
|
|
$ |
112,850 |
|
|
$ |
420,471 |
|
|
$ |
418,465 |
|
Percentage Change: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Malls |
|
|
2.2 |
% |
|
|
|
|
|
(0.5 |
)% |
|
|
|
||
Outlet centers |
|
|
(0.3 |
)% |
|
|
|
|
|
(1.9 |
)% |
|
|
|
||
Lifestyle centers |
|
|
16.3 |
% |
|
|
|
|
|
9.1 |
% |
|
|
|
||
Open-air centers |
|
|
2.1 |
% |
|
|
|
|
|
(0.1 |
)% |
|
|
|
||
Outparcels and other |
|
|
5.9 |
% |
|
|
|
|
|
3.7 |
% |
|
|
|
||
Total same-center NOI |
|
|
3.3 |
% |
|
|
|
|
|
0.5 |
% |
|
|
|
||
Company's Share of Consolidated and Unconsolidated Debt (Dollars in thousands) |
||||||||||||||||||||||||
|
|
As of December 31, 2025 |
|
|||||||||||||||||||||
|
|
Fixed Rate |
|
|
Variable
|
|
|
Total Debt |
|
|
Unamortized
|
|
|
Unamortized
|
|
|
Total, net |
|
||||||
Consolidated debt |
|
$ |
1,501,918 |
|
|
$ |
753,102 |
|
|
$ |
2,255,020 |
|
|
$ |
(9,276 |
) |
|
$ |
(74,959 |
) |
|
$ |
2,170,785 |
|
Noncontrolling interests' share of consolidated debt |
|
|
(23,881 |
) |
|
|
(10,983 |
) |
|
|
(34,864 |
) |
|
|
83 |
|
|
|
251 |
|
|
|
(34,530 |
) |
Company's share of unconsolidated affiliates' debt |
|
|
344,878 |
|
|
|
9,261 |
|
|
|
354,139 |
|
|
|
(3,006 |
) |
|
|
— |
|
|
|
351,133 |
|
Other debt (2) |
|
|
48,271 |
|
|
|
— |
|
|
|
48,271 |
|
|
|
— |
|
|
|
— |
|
|
|
48,271 |
|
Company's share of consolidated, unconsolidated and other debt |
|
$ |
1,871,186 |
|
|
$ |
751,380 |
|
|
$ |
2,622,566 |
|
|
$ |
(12,199 |
) |
|
$ |
(74,708 |
) |
|
$ |
2,535,659 |
|
Weighted-average interest rate |
|
|
5.51 |
% |
|
|
6.89 |
% |
|
|
5.91 |
% |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
As of December 31, 2024 |
|
|||||||||||||||||||||
|
|
Fixed Rate |
|
|
Variable
|
|
|
Total Debt |
|
|
Unamortized
|
|
|
Unamortized
|
|
|
Total, net |
|
||||||
Consolidated debt |
|
$ |
1,403,798 |
|
|
$ |
928,106 |
|
|
$ |
2,331,904 |
|
|
$ |
(8,688 |
) |
|
$ |
(110,536 |
) |
|
$ |
2,212,680 |
|
Noncontrolling interests' share of consolidated debt |
|
|
(24,392 |
) |
|
|
(11,403 |
) |
|
|
(35,795 |
) |
|
|
168 |
|
|
|
1,803 |
|
|
|
(33,824 |
) |
Company's share of unconsolidated affiliates' debt |
|
|
372,939 |
|
|
|
26,989 |
|
|
|
399,928 |
|
|
|
(2,613 |
) |
|
|
— |
|
|
|
397,315 |
|
Other debt (2) |
|
|
41,122 |
|
|
|
— |
|
|
|
41,122 |
|
|
|
— |
|
|
|
— |
|
|
|
41,122 |
|
Company's share of consolidated, unconsolidated and other debt |
|
$ |
1,793,467 |
|
|
$ |
943,692 |
|
|
$ |
2,737,159 |
|
|
$ |
(11,133 |
) |
|
$ |
(108,733 |
) |
|
$ |
2,617,293 |
|
Weighted-average interest rate |
|
|
5.18 |
% |
|
|
7.66 |
% |
|
|
6.03 |
% |
|
|
|
|
|
|
|
|
|
|||
(1) |
In conjunction with the acquisition of the Company's partners' |
(2) |
Represents the outstanding loan balances of deconsolidated properties due to a loss of control when the properties were placed into receivership in connection with the foreclosure process. |
Consolidated Balance Sheets (Unaudited; in thousands, except share data) |
||||||||
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2025 |
|
|
2024 |
|
||
ASSETS |
|
|
|
|
|
|
||
Real estate assets: |
|
|
|
|
|
|
||
Land |
|
$ |
601,553 |
|
|
$ |
588,153 |
|
Buildings and improvements |
|
|
1,619,988 |
|
|
|
1,505,232 |
|
|
|
|
2,221,541 |
|
|
|
2,093,385 |
|
Accumulated depreciation |
|
|
(355,900 |
) |
|
|
(283,785 |
) |
|
|
|
1,865,641 |
|
|
|
1,809,600 |
|
Held-for-sale |
|
|
— |
|
|
|
56,075 |
|
Developments in progress |
|
|
10,533 |
|
|
|
5,817 |
|
Net investment in real estate assets |
|
|
1,876,174 |
|
|
|
1,871,492 |
|
Cash and cash equivalents |
|
|
42,287 |
|
|
|
40,791 |
|
Restricted cash |
|
|
110,665 |
|
|
|
112,938 |
|
Available-for-sale securities - at fair value (amortized cost of |
|
|
293,087 |
|
|
|
243,148 |
|
Receivables: |
|
|
|
|
|
|
||
Tenant |
|
|
46,489 |
|
|
|
45,594 |
|
Other |
|
|
1,562 |
|
|
|
2,356 |
|
Investments in unconsolidated affiliates |
|
|
85,941 |
|
|
|
83,465 |
|
In-place leases, net |
|
|
144,046 |
|
|
|
186,561 |
|
Intangible lease assets and other assets |
|
|
128,848 |
|
|
|
160,846 |
|
|
|
$ |
2,729,099 |
|
|
$ |
2,747,191 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Mortgage and other indebtedness, net |
|
$ |
2,170,785 |
|
|
$ |
2,212,680 |
|
Accounts payable and accrued liabilities |
|
|
193,640 |
|
|
|
221,647 |
|
Total liabilities |
|
|
2,364,425 |
|
|
|
2,434,327 |
|
Shareholders' equity: |
|
|
|
|
|
|
||
Common stock, |
|
|
30 |
|
|
|
31 |
|
Additional paid-in capital |
|
|
687,424 |
|
|
|
694,566 |
|
Accumulated other comprehensive income |
|
|
443 |
|
|
|
782 |
|
Accumulated deficit |
|
|
(312,961 |
) |
|
|
(371,833 |
) |
Total shareholders' equity |
|
|
374,936 |
|
|
|
323,546 |
|
Noncontrolling interests |
|
|
(10,262 |
) |
|
|
(10,682 |
) |
Total equity |
|
|
364,674 |
|
|
|
312,864 |
|
|
|
$ |
2,729,099 |
|
|
$ |
2,747,191 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260213039112/en/
Katie Reinsmidt, Executive Vice President - Chief Operating Officer, 423.490.8301, katie.reinsmidt@cblproperties.com
Source: CBL Properties
