CBL Properties Reports Results for Third Quarter 2025
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Three Months Ended
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Nine Months Ended
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2025 |
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2024 |
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2025 |
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2024 |
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||||
Net income attributable to common shareholders |
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$ |
2.38 |
|
|
$ |
0.52 |
|
|
$ |
2.78 |
|
|
$ |
0.65 |
|
Funds from Operations ("FFO") |
|
$ |
2.17 |
|
|
$ |
1.28 |
|
|
$ |
4.82 |
|
|
$ |
4.00 |
|
FFO, as adjusted (1) |
|
$ |
1.55 |
|
|
$ |
1.54 |
|
|
$ |
4.94 |
|
|
$ |
4.78 |
|
(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:
-
Year-to-date, CBL has closed on dispositions generating more than
$238.0 million Slidell, LA . -
Consistent with our previously issued full-year guidance range, same-center NOI for Q3 2025 increased
1.1% compared with the prior-year period. FFO, as adjusted, per share for Q3 2025 was$1.55 $1.54 0.6% compared with the prior-year period. FFO, as adjusted, per share was$4.94 $4.78 -
Portfolio occupancy increased 90 basis points to
90.2% as of September 30, 2025, compared with portfolio occupancy of89.3% as of September 30, 2024. Same-center occupancy for malls, lifestyle centers and outlet centers was88.4% , a 40-basis point increase from occupancy as of September 30, 2024. Bankruptcy related store closures, including the closures of Forever21, JoAnn, Claire's and Party City locations, representing approximately 97,000 square feet, negatively impacted mall occupancy by nearly 70 basis points compared with the prior-year period. -
Over 972,000 square feet of leases were executed in the third quarter 2025, including comparable new and renewal leases of approximately 435,000 square feet signed at a
17.1% increase in average rents versus the prior rents. The increase was driven by new comparable lease spreads of more than70% with renewal leases signed at a nearly10% increase compared with expiring rents. -
Same-center tenant sales per square foot for the third quarter 2025 increased approximately
4.8% as compared with the prior-year period. Same-center tenant sales per square foot for the 12 months ended September 30, 2025, of$432 1.6% as compared with the prior period. -
As of September 30, 2025, the Company had
$313.0 million
"CBL posted excellent results in the third quarter 2025, highlighted by a
"During the quarter, we celebrated the grand opening of our new joint venture-owned hotel, Element by Westin, at Mayfaire Town Center in
"Financing activity across our portfolio has remained strong. With the official extension of our Term Loan on November 1st, we have substantially addressed our 2025 loan maturities. In September, along with our joint venture partner, we closed on a new
"We've been active on the transaction front this year. As previously announced, we were thrilled to add four dominant malls to our portfolio in July with the acquisition of Ashland Town Center in
"We are pleased with the performance of our portfolio in 2025 and the many balance sheet and transactional achievements completed year-to-date. We look forward to producing a strong end to the year and generating momentum heading into 2026."
Same-center Net Operating Income (“NOI”) (1):
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|
Three Months Ended September 30, |
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|||||
|
|
2025 |
|
|
2024 |
|
||
Total Revenues |
|
$ |
152,096 |
|
|
$ |
151,407 |
|
Total Expenses |
|
$ |
(50,813 |
) |
|
$ |
(51,272 |
) |
Total portfolio same-center NOI |
|
$ |
101,283 |
|
|
$ |
100,135 |
|
Total same-center NOI percentage change |
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
||
Estimate for uncollectable revenues (recovery) |
|
$ |
2,459 |
|
|
$ |
1,215 |
|
(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 third quarter 2025 increased
|
|
Nine Months Ended September 30, |
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|||||
|
|
2025 |
|
|
2024 |
|
||
Total Revenues |
|
$ |
460,568 |
|
|
$ |
455,847 |
|
Total Expenses |
|
$ |
(156,703 |
) |
|
$ |
(150,233 |
) |
Total portfolio same-center NOI |
|
$ |
303,865 |
|
|
$ |
305,614 |
|
Total same-center NOI percentage change |
|
|
(0.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
||
Estimate for uncollectable revenues (recovery) |
|
$ |
3,976 |
|
|
$ |
2,775 |
|
Same-center NOI for the nine months ended September 30, 2025 declined
PORTFOLIO OPERATIONAL RESULTS
Occupancy(1):
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As of September 30, |
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2025 |
|
2024 |
Total portfolio |
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Malls, lifestyle centers and outlet centers: |
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Total malls |
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|
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Total lifestyle centers |
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|
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Total outlet centers |
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Total same-center malls, lifestyle centers and outlet centers |
|
|
|
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Open-air centers |
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|
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All Other Properties |
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(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: |
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Three Months Ended
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Nine Months Ended
|
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2025 |
|
2025 |
All Property Types |
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Stabilized Malls, Lifestyle Centers and Outlet Centers |
|
|
|
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New leases |
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|
|
|
Renewal leases |
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Open Air Centers |
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|
Same-Center Sales Per Square Foot for In-line Tenants 10,000 Square Feet or Less:
|
|
Sales Per Square Foot for the Trailing
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|
|
|||||
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|
2025 |
|
|
2024 |
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|
% Change |
||
Malls, lifestyle centers and outlet centers same-center sales per square foot |
|
$ |
432 |
|
|
$ |
425 |
|
|
|
DIVIDEND
On November 5, 2025, 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
TRANSACTION ACTIVITY
Year-to-date, CBL has closed on dispositions generating more than
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 Q3 2025, which can be found in the Invest – Financial Reports section of CBL’s website at cblproperties.com
OUTLOOK AND GUIDANCE
Based on Management's expectations and transactions completed year-to-date, including incorporating the impact of the recent sale of Fremaux Town Center, which was not previously included in guidance, CBL is reaffirming FFO, as adjusted, guidance for 2025 in the range of
|
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Low |
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High |
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2025 Net Income |
|
$ |
101.4 |
|
|
$ |
112.4 |
|
2025 FFO, as adjusted (in millions) |
|
$ |
213.0 |
|
|
$ |
224.0 |
|
2025 WA Share Count |
|
|
30.5 |
|
|
|
30.5 |
|
2025 FFO, as adjusted, per share |
|
$ |
6.98 |
|
|
$ |
7.34 |
|
2025 Same-Center NOI ("SC NOI") (in millions) (1) |
|
$ |
410.1 |
|
|
$ |
420.6 |
|
2025 change in same-center NOI |
|
|
(2.0 |
)% |
|
|
0.5 |
% |
(1) CBL completed the sale of its interest in Fremaux Town Center in October 2025. 2025 same-center NOI was adjusted to remove NOI related to the property. |
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Reconciliation of GAAP Earnings Per Share to 2025 FFO, as Adjusted, Per Share:
|
|
Low |
|
|
High |
|
||
Expected diluted earnings per common share |
|
$ |
3.21 |
|
|
$ |
3.57 |
|
Depreciation and amortization |
|
|
5.48 |
|
|
|
5.48 |
|
Gain on depreciable property |
|
|
(2.39 |
) |
|
|
(2.39 |
) |
Loss on impairment |
|
|
0.11 |
|
|
|
0.11 |
|
Expected FFO, per diluted, fully converted common share |
|
|
6.41 |
|
|
|
6.77 |
|
Loss on extinguishment of debt |
|
|
0.01 |
|
|
|
0.01 |
|
Debt discount accretion, net of noncontrolling interests' share |
|
|
1.14 |
|
|
|
1.14 |
|
Adjustment for unconsolidated affiliates with negative investment |
|
|
0.54 |
|
|
|
0.54 |
|
Non-cash interest expense |
|
|
(0.01 |
) |
|
|
(0.01 |
) |
Gain on deconsolidation |
|
|
(1.11 |
) |
|
|
(1.11 |
) |
Expected FFO, as adjusted, per diluted, fully converted common share |
|
$ |
6.98 |
|
|
$ |
7.34 |
|
Reconciliation of Net Income to SC NOI (in millions):
|
|
Low |
|
|
High |
|
||
Net income (loss) |
|
$ |
101.4 |
|
|
$ |
112.4 |
|
Adjustments (1) |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
166.4 |
|
|
|
166.4 |
|
Gain on sales of real estate assets |
|
|
(72.5 |
) |
|
|
(72.5 |
) |
Adjustments for unconsolidated affiliates(2) |
|
|
22.7 |
|
|
|
22.7 |
|
Non-comparable property NOI |
|
|
(31.1 |
) |
|
|
(31.1 |
) |
Other (income) expenses, net(3) |
|
|
157.0 |
|
|
|
157.0 |
|
Non-property (income) expenses, net(4) |
|
|
66.2 |
|
|
|
65.7 |
|
Total Same-Center NOI |
|
$ |
410.1 |
|
|
$ |
420.6 |
|
(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 |
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(2) GAAP adjustments for unconsolidated affiliates, including those with negative investment. |
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(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. |
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(4) Non-property (income) expenses, net, that are not included in NOI, including but not limited to, fee income and general and administrative expenses. |
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2025 Estimate of Capital Items (in millions):
|
|
Low |
|
High |
|
||
2025 Estimated maintenance capital/tenant allowances (1) |
|
$ |
40.0 |
|
$ |
55.0 |
|
2025 Estimated development/redevelopment expenditures |
|
|
7.5 |
|
|
12.5 |
|
2025 Estimated principal amortization (including est. term loan ECF) |
|
|
90.0 |
|
|
100.0 |
|
Total Estimate |
|
$ |
137.5 |
|
$ |
167.5 |
|
(1) Excludes amounts related to properties which have |
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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 |
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(Unaudited; in thousands, except per share amounts) |
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|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
REVENUES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Rental revenues |
|
$ |
134,786 |
|
|
$ |
119,992 |
|
|
$ |
408,599 |
|
|
$ |
368,090 |
|
Management, development and leasing fees |
|
|
1,226 |
|
|
|
1,990 |
|
|
|
3,900 |
|
|
|
5,712 |
|
Other |
|
|
3,268 |
|
|
|
3,107 |
|
|
|
9,454 |
|
|
|
10,069 |
|
Total revenues |
|
|
139,280 |
|
|
|
125,089 |
|
|
|
421,953 |
|
|
|
383,871 |
|
EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Property operating |
|
|
(27,383 |
) |
|
|
(23,336 |
) |
|
|
(76,844 |
) |
|
|
(67,903 |
) |
Depreciation and amortization |
|
|
(39,900 |
) |
|
|
(32,326 |
) |
|
|
(125,143 |
) |
|
|
(109,030 |
) |
Real estate taxes |
|
|
(12,970 |
) |
|
|
(13,271 |
) |
|
|
(43,728 |
) |
|
|
(35,568 |
) |
Maintenance and repairs |
|
|
(9,594 |
) |
|
|
(8,890 |
) |
|
|
(33,432 |
) |
|
|
(28,007 |
) |
General and administrative |
|
|
(17,787 |
) |
|
|
(15,402 |
) |
|
|
(53,682 |
) |
|
|
(50,647 |
) |
Loss on impairment |
|
|
(1,736 |
) |
|
|
— |
|
|
|
(3,193 |
) |
|
|
(836 |
) |
Litigation settlement |
|
|
— |
|
|
|
13 |
|
|
|
— |
|
|
|
153 |
|
Other |
|
|
(45 |
) |
|
|
(15 |
) |
|
|
(75 |
) |
|
|
(142 |
) |
Total expenses |
|
|
(109,415 |
) |
|
|
(93,227 |
) |
|
|
(336,097 |
) |
|
|
(291,980 |
) |
OTHER INCOME (EXPENSES): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and other income |
|
|
3,247 |
|
|
|
4,023 |
|
|
|
9,879 |
|
|
|
12,109 |
|
Interest expense |
|
|
(44,779 |
) |
|
|
(38,849 |
) |
|
|
(132,963 |
) |
|
|
(118,068 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
(819 |
) |
|
|
(217 |
) |
|
|
(819 |
) |
Gain on deconsolidation |
|
|
33,851 |
|
|
|
— |
|
|
|
33,851 |
|
|
|
— |
|
Gain on sales of real estate assets |
|
|
51,228 |
|
|
|
12,816 |
|
|
|
74,099 |
|
|
|
16,487 |
|
Income tax (provision) benefit |
|
|
(48 |
) |
|
|
(364 |
) |
|
|
54 |
|
|
|
(856 |
) |
Equity in earnings of unconsolidated affiliates |
|
|
1,696 |
|
|
|
7,084 |
|
|
|
15,046 |
|
|
|
18,826 |
|
Total other income (expenses), net |
|
|
45,195 |
|
|
|
(16,109 |
) |
|
|
(251 |
) |
|
|
(72,321 |
) |
Net income |
|
|
75,060 |
|
|
|
15,753 |
|
|
|
85,605 |
|
|
|
19,570 |
|
Net (income) loss attributable to noncontrolling interests in: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Partnership |
|
|
— |
|
|
|
(1 |
) |
|
|
(8 |
) |
|
|
(1 |
) |
Other consolidated subsidiaries |
|
|
368 |
|
|
|
446 |
|
|
|
1,379 |
|
|
|
1,423 |
|
Net income attributable to the Company |
|
|
75,428 |
|
|
|
16,198 |
|
|
|
86,976 |
|
|
|
20,992 |
|
Earnings allocable to unvested restricted stock |
|
|
(1,161 |
) |
|
|
(333 |
) |
|
|
(1,345 |
) |
|
|
(852 |
) |
Net income attributable to common shareholders |
|
$ |
74,267 |
|
|
$ |
15,865 |
|
|
$ |
85,631 |
|
|
$ |
20,140 |
|
Basic and diluted per share data attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic earnings per share |
|
$ |
2.44 |
|
|
$ |
0.52 |
|
|
$ |
2.81 |
|
|
$ |
0.65 |
|
Diluted earnings per share |
|
|
2.38 |
|
|
|
0.52 |
|
|
|
2.78 |
|
|
|
0.65 |
|
Weighted-average basic shares |
|
|
30,406 |
|
|
|
30,756 |
|
|
|
30,427 |
|
|
|
31,149 |
|
Weighted-average diluted shares |
|
|
31,313 |
|
|
|
30,756 |
|
|
|
30,851 |
|
|
|
31,151 |
|
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
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net income attributable to common shareholders |
|
$ |
74,267 |
|
|
$ |
15,865 |
|
|
$ |
85,631 |
|
|
$ |
20,140 |
|
Noncontrolling interest in income of Operating Partnership |
|
|
— |
|
|
|
1 |
|
|
|
8 |
|
|
|
1 |
|
Earnings allocable to unvested restricted stock |
|
|
318 |
|
|
|
333 |
|
|
|
(984 |
) |
|
|
852 |
|
Depreciation and amortization expense of: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Consolidated properties |
|
|
39,900 |
|
|
|
32,326 |
|
|
|
125,143 |
|
|
|
109,030 |
|
Unconsolidated affiliates |
|
|
3,167 |
|
|
|
3,534 |
|
|
|
9,855 |
|
|
|
11,996 |
|
Non-real estate assets |
|
|
(248 |
) |
|
|
(256 |
) |
|
|
(742 |
) |
|
|
(769 |
) |
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries |
|
|
(385 |
) |
|
|
(438 |
) |
|
|
(1,190 |
) |
|
|
(1,470 |
) |
Loss on impairment, net of taxes |
|
|
1,736 |
|
|
|
— |
|
|
|
3,496 |
|
|
|
619 |
|
Gain on depreciable property, net of taxes |
|
|
(50,936 |
) |
|
|
(11,930 |
) |
|
|
(72,642 |
) |
|
|
(15,651 |
) |
FFO allocable to Operating Partnership common unitholders |
|
|
67,819 |
|
|
|
39,435 |
|
|
|
148,575 |
|
|
|
124,748 |
|
Debt discount accretion, including our share of unconsolidated affiliates and net of noncontrolling interests' share (1) |
|
|
9,180 |
|
|
|
11,085 |
|
|
|
27,584 |
|
|
|
34,602 |
|
Adjustment for unconsolidated affiliates with negative investment (2) |
|
|
6,817 |
|
|
|
(4,099 |
) |
|
|
10,453 |
|
|
|
(11,468 |
) |
Litigation settlement (3) |
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
|
|
(153 |
) |
Non-cash default interest expense (4) |
|
|
(1,326 |
) |
|
|
232 |
|
|
|
(446 |
) |
|
|
232 |
|
Gain on deconsolidation (5) |
|
|
(33,851 |
) |
|
|
— |
|
|
|
(33,851 |
) |
|
|
— |
|
Loss on extinguishment of debt (6) |
|
|
— |
|
|
|
819 |
|
|
|
217 |
|
|
|
819 |
|
FFO allocable to Operating Partnership common unitholders, as adjusted |
|
$ |
48,639 |
|
|
$ |
47,459 |
|
|
$ |
152,532 |
|
|
$ |
148,780 |
|
FFO per diluted share |
|
$ |
2.17 |
|
|
$ |
1.28 |
|
|
$ |
4.82 |
|
|
$ |
4.00 |
|
FFO, as adjusted, per diluted share |
|
$ |
1.55 |
|
|
$ |
1.54 |
|
|
$ |
4.94 |
|
|
$ |
4.78 |
|
Weighted-average common and potential dilutive common units outstanding |
|
|
31,319 |
|
|
|
30,761 |
|
|
|
30,856 |
|
|
|
31,154 |
|
(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 and nine months ended September 30, 2025 include default interest on a loan past its maturity date and the reversal of previously accrued default interest. The three and nine months ended September 30, 2024 include default interest on loans past their maturity dates. |
|
(5) |
For the three and nine months ended September 30, 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) |
During the nine months ended September 30, 2025, 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 a prepayment fee. During the three and nine months ended September 30, 2024, the Company made a partial paydown on the 2032 non-recourse bank loan and recognized loss on extinguishment of debt related to a prepayment fee. |
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Diluted EPS attributable to common shareholders |
|
$ |
2.38 |
|
|
$ |
0.52 |
|
|
$ |
2.78 |
|
|
$ |
0.65 |
|
Add amounts per share included in FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings allocable to unvested restricted stock |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
(0.03 |
) |
|
|
0.02 |
|
Eliminate amounts per share excluded from FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization expense, including amounts from
|
|
|
1.35 |
|
|
|
1.14 |
|
|
|
4.31 |
|
|
|
3.81 |
|
Loss on impairment, net of taxes |
|
|
0.06 |
|
|
|
— |
|
|
|
0.11 |
|
|
|
0.02 |
|
Gain on depreciable property, net of taxes |
|
|
(1.63 |
) |
|
|
(0.39 |
) |
|
|
(2.35 |
) |
|
|
(0.50 |
) |
FFO per diluted share |
|
$ |
2.17 |
|
|
$ |
1.28 |
|
|
$ |
4.82 |
|
|
$ |
4.00 |
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
SUPPLEMENTAL FFO INFORMATION: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Lease termination fees |
|
$ |
387 |
|
|
$ |
524 |
|
|
$ |
1,788 |
|
|
$ |
2,213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Straight-line rental income adjustment |
|
$ |
(453 |
) |
|
$ |
475 |
|
|
$ |
(331 |
) |
|
$ |
170 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain on outparcel sales, net of taxes |
|
$ |
293 |
|
|
$ |
744 |
|
|
$ |
3,013 |
|
|
$ |
694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net amortization of acquired above- and below-market leases |
|
$ |
(4,211 |
) |
|
$ |
(4,306 |
) |
|
$ |
(10,608 |
) |
|
$ |
(10,482 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax (provision) benefit |
|
$ |
(48 |
) |
|
$ |
(364 |
) |
|
$ |
54 |
|
|
$ |
(856 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Abandoned projects expense |
|
$ |
— |
|
|
$ |
(15 |
) |
|
$ |
(27 |
) |
|
$ |
(142 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest capitalized |
|
$ |
142 |
|
|
$ |
155 |
|
|
$ |
392 |
|
|
$ |
428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Estimate of uncollectable revenues |
|
$ |
(3,142 |
) |
|
$ |
(2,035 |
) |
|
$ |
(4,695 |
) |
|
$ |
(4,826 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
As of September 30, |
|
|||||||
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
||||
Straight-line rent receivable |
|
|
|
|
|
|
|
$ |
23,822 |
|
|
$ |
23,549 |
|
||
|
||||||||||||||||
Same-center Net Operating Income |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net income |
|
$ |
75,060 |
|
|
$ |
15,753 |
|
|
$ |
85,605 |
|
|
$ |
19,570 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
39,900 |
|
|
|
32,326 |
|
|
|
125,143 |
|
|
|
109,030 |
|
Depreciation and amortization from unconsolidated affiliates |
|
|
3,167 |
|
|
|
3,534 |
|
|
|
9,855 |
|
|
|
11,996 |
|
Noncontrolling interests' share of depreciation and amortization in other consolidated subsidiaries |
|
|
(385 |
) |
|
|
(438 |
) |
|
|
(1,190 |
) |
|
|
(1,470 |
) |
Interest expense |
|
|
44,779 |
|
|
|
38,849 |
|
|
|
132,963 |
|
|
|
118,068 |
|
Interest expense from unconsolidated affiliates |
|
|
5,879 |
|
|
|
16,683 |
|
|
|
20,570 |
|
|
|
51,038 |
|
Noncontrolling interests' share of interest expense in other consolidated subsidiaries |
|
|
(994 |
) |
|
|
(1,070 |
) |
|
|
(3,106 |
) |
|
|
(3,196 |
) |
Abandoned projects expense |
|
|
— |
|
|
|
15 |
|
|
|
27 |
|
|
|
142 |
|
Gain on sales of real estate assets |
|
|
(51,228 |
) |
|
|
(12,816 |
) |
|
|
(74,099 |
) |
|
|
(16,487 |
) |
Gain on sales of real estate assets of unconsolidated affiliates |
|
|
— |
|
|
|
— |
|
|
|
(1,867 |
) |
|
|
— |
|
Adjustment for unconsolidated affiliates with negative investment |
|
|
6,817 |
|
|
|
(4,099 |
) |
|
|
10,453 |
|
|
|
(11,468 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
819 |
|
|
|
217 |
|
|
|
819 |
|
Gain on deconsolidation |
|
|
(33,851 |
) |
|
|
— |
|
|
|
(33,851 |
) |
|
|
— |
|
Loss on impairment |
|
|
1,736 |
|
|
|
— |
|
|
|
3,193 |
|
|
|
836 |
|
Litigation settlement |
|
|
— |
|
|
|
(13 |
) |
|
|
— |
|
|
|
(153 |
) |
Income tax provision (benefit) |
|
|
48 |
|
|
|
364 |
|
|
|
(54 |
) |
|
|
856 |
|
Lease termination fees |
|
|
(387 |
) |
|
|
(524 |
) |
|
|
(1,788 |
) |
|
|
(2,213 |
) |
Straight-line rent and above- and below-market lease amortization |
|
|
4,664 |
|
|
|
3,831 |
|
|
|
10,939 |
|
|
|
10,312 |
|
Net loss attributable to noncontrolling interests in other consolidated subsidiaries |
|
|
368 |
|
|
|
446 |
|
|
|
1,379 |
|
|
|
1,423 |
|
General and administrative expenses |
|
|
17,787 |
|
|
|
15,402 |
|
|
|
53,682 |
|
|
|
50,647 |
|
Management fees and non-property level revenues |
|
|
(4,256 |
) |
|
|
(6,080 |
) |
|
|
(15,239 |
) |
|
|
(19,070 |
) |
Operating Partnership's share of property NOI |
|
|
109,104 |
|
|
|
102,982 |
|
|
|
322,832 |
|
|
|
320,680 |
|
Non-comparable NOI |
|
|
(7,821 |
) |
|
|
(2,847 |
) |
|
|
(18,967 |
) |
|
|
(15,066 |
) |
Total same-center NOI (1) |
|
$ |
101,283 |
|
|
$ |
100,135 |
|
|
$ |
303,865 |
|
|
$ |
305,614 |
|
Total same-center NOI percentage change |
|
|
1.1 |
% |
|
|
|
|
|
(0.6 |
)% |
|
|
|
||
(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 September 30, 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 September 30, 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. |
Same-center Net Operating Income |
||||||||||||||||
(Dollars in thousands) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Malls |
|
$ |
69,921 |
|
|
$ |
70,048 |
|
|
$ |
210,868 |
|
|
$ |
214,063 |
|
Outlet centers |
|
|
5,377 |
|
|
|
5,357 |
|
|
|
15,877 |
|
|
|
16,292 |
|
Lifestyle centers |
|
|
9,365 |
|
|
|
8,127 |
|
|
|
27,088 |
|
|
|
25,401 |
|
Open-air centers |
|
|
11,019 |
|
|
|
11,134 |
|
|
|
33,411 |
|
|
|
33,706 |
|
Outparcels and other |
|
|
5,601 |
|
|
|
5,469 |
|
|
|
16,621 |
|
|
|
16,152 |
|
Total same-center NOI |
|
$ |
101,283 |
|
|
$ |
100,135 |
|
|
$ |
303,865 |
|
|
$ |
305,614 |
|
Percentage Change: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Malls |
|
|
(0.2 |
)% |
|
|
|
|
|
(1.5 |
)% |
|
|
|
||
Outlet centers |
|
|
0.4 |
% |
|
|
|
|
|
(2.5 |
)% |
|
|
|
||
Lifestyle centers |
|
|
15.2 |
% |
|
|
|
|
|
6.6 |
% |
|
|
|
||
Open-air centers |
|
|
(1.0 |
)% |
|
|
|
|
|
(0.9 |
)% |
|
|
|
||
Outparcels and other |
|
|
2.4 |
% |
|
|
|
|
|
2.9 |
% |
|
|
|
||
Total same-center NOI |
|
|
1.1 |
% |
|
|
|
|
|
(0.6 |
)% |
|
|
|
||
Company's Share of Consolidated and Unconsolidated Debt |
||||||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||||||
|
|
As of September 30, 2025 |
|
|||||||||||||||||||||
|
|
Fixed Rate |
|
|
Variable
|
|
|
Total Debt |
|
|
Unamortized
|
|
|
Unamortized
|
|
|
Total, net |
|
||||||
Consolidated debt (2) |
|
$ |
1,512,637 |
|
|
$ |
761,084 |
|
|
$ |
2,273,721 |
|
|
$ |
(10,008 |
) |
|
$ |
(82,852 |
) |
|
$ |
2,180,861 |
|
Noncontrolling interests' share of consolidated debt |
|
|
(23,964 |
) |
|
|
(11,053 |
) |
|
|
(35,017 |
) |
|
|
99 |
|
|
|
405 |
|
|
|
(34,513 |
) |
Company's share of unconsolidated affiliates' debt |
|
|
383,190 |
|
|
|
9,212 |
|
|
|
392,402 |
|
|
|
(3,273 |
) |
|
|
— |
|
|
|
389,129 |
|
Other debt (3) |
|
|
48,271 |
|
|
|
— |
|
|
|
48,271 |
|
|
|
— |
|
|
|
— |
|
|
|
48,271 |
|
Company's share of consolidated, unconsolidated and other debt |
|
$ |
1,920,134 |
|
|
$ |
759,243 |
|
|
$ |
2,679,377 |
|
|
$ |
(13,182 |
) |
|
$ |
(82,447 |
) |
|
$ |
2,583,748 |
|
Weighted-average interest rate |
|
|
5.47 |
% |
|
|
7.29 |
% |
|
|
5.99 |
% |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
As of September 30, 2024 |
|
|||||||||||||||||||||
|
|
Fixed Rate |
|
|
Variable
|
|
|
Total Debt |
|
|
Unamortized
|
|
|
Unamortized
|
|
|
Total, net |
|
||||||
Consolidated debt |
|
$ |
879,488 |
|
|
$ |
933,374 |
|
|
$ |
1,812,862 |
|
|
$ |
(9,644 |
) |
|
$ |
(28,099 |
) |
|
$ |
1,775,119 |
|
Noncontrolling interests' share of consolidated debt |
|
|
(24,513 |
) |
|
|
(11,508 |
) |
|
|
(36,021 |
) |
|
|
201 |
|
|
|
2,278 |
|
|
|
(33,542 |
) |
Company's share of unconsolidated affiliates' debt |
|
|
619,112 |
|
|
|
49,437 |
|
|
|
668,549 |
|
|
|
(2,277 |
) |
|
|
— |
|
|
|
666,272 |
|
Other debt (3) |
|
|
41,122 |
|
|
|
— |
|
|
|
41,122 |
|
|
|
— |
|
|
|
— |
|
|
|
41,122 |
|
Company's share of consolidated, unconsolidated and other debt |
|
$ |
1,515,209 |
|
|
$ |
971,303 |
|
|
$ |
2,486,512 |
|
|
$ |
(11,720 |
) |
|
$ |
(25,821 |
) |
|
$ |
2,448,971 |
|
Weighted-average interest rate |
|
|
5.27 |
% |
|
|
8.30 |
% |
|
|
6.45 |
% |
|
|
|
|
|
|
|
|
|
|||
(1) |
In conjunction with the acquisition of the Company's partners' |
|
(2) |
At September 30, 2025, includes |
|
(3) |
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) |
||||||||
|
|
September 30, |
|
|
December 31, |
|
||
|
|
2025 |
|
|
2024 |
|
||
ASSETS |
|
|
|
|
|
|
||
Real estate assets: |
|
|
|
|
|
|
||
Land |
|
$ |
602,147 |
|
|
$ |
588,153 |
|
Buildings and improvements |
|
|
1,608,672 |
|
|
|
1,505,232 |
|
|
|
|
2,210,819 |
|
|
|
2,093,385 |
|
Accumulated depreciation |
|
|
(334,096 |
) |
|
|
(283,785 |
) |
|
|
|
1,876,723 |
|
|
|
1,809,600 |
|
Held-for-sale |
|
|
— |
|
|
|
56,075 |
|
Developments in progress |
|
|
8,747 |
|
|
|
5,817 |
|
Net investment in real estate assets |
|
|
1,885,470 |
|
|
|
1,871,492 |
|
Cash and cash equivalents |
|
|
52,586 |
|
|
|
40,791 |
|
Restricted cash |
|
|
109,377 |
|
|
|
112,938 |
|
Available-for-sale securities - at fair value (amortized cost of |
|
|
260,434 |
|
|
|
243,148 |
|
Receivables: |
|
|
|
|
|
|
||
Tenant |
|
|
37,563 |
|
|
|
45,594 |
|
Other |
|
|
864 |
|
|
|
2,356 |
|
Investments in unconsolidated affiliates |
|
|
84,219 |
|
|
|
83,465 |
|
In-place leases, net |
|
|
160,241 |
|
|
|
186,561 |
|
Intangible lease assets and other assets |
|
|
139,250 |
|
|
|
160,846 |
|
|
|
$ |
2,730,004 |
|
|
$ |
2,747,191 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Mortgage and other indebtedness, net |
|
$ |
2,180,861 |
|
|
$ |
2,212,680 |
|
Accounts payable and accrued liabilities |
|
|
208,583 |
|
|
|
221,647 |
|
Total liabilities |
|
|
2,389,444 |
|
|
|
2,434,327 |
|
Shareholders' equity: |
|
|
|
|
|
|
||
Common stock, |
|
|
31 |
|
|
|
31 |
|
Additional paid-in capital |
|
|
699,235 |
|
|
|
694,566 |
|
Accumulated other comprehensive income |
|
|
406 |
|
|
|
782 |
|
Accumulated deficit |
|
|
(348,231 |
) |
|
|
(371,833 |
) |
Total shareholders' equity |
|
|
351,441 |
|
|
|
323,546 |
|
Noncontrolling interests |
|
|
(10,881 |
) |
|
|
(10,682 |
) |
Total equity |
|
|
340,560 |
|
|
|
312,864 |
|
|
|
$ |
2,730,004 |
|
|
$ |
2,747,191 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20251106076749/en/
Katie Reinsmidt, Executive Vice President - Chief Operating Officer, 423.490.8301, katie.reinsmidt@cblproperties.com
Source: CBL Properties
