Same-center NOI in 2024 increased 0.2% over the
prior-year period
CBL Properties (NYSE: CBL) announced results for the fourth
quarter and year ended December 31, 2024. Results of operations as
reported in the consolidated financial statements for these periods
are prepared in accordance with GAAP. A description of each
supplemental non-GAAP financial measure and the related
reconciliation to the comparable GAAP financial measure is located
at the end of this news release.
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net income attributable to common
shareholders
$
1.22
$
0.37
$
1.87
$
0.17
Funds from Operations ("FFO")
$
2.42
$
1.80
$
6.40
$
6.59
FFO, as adjusted (1)
$
1.92
$
1.94
$
6.69
$
6.66
(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:
- In January 2025, CBL closed on the sale of Monroeville Mall in
Monroeville, PA, for $34.0 million, all cash.
- In December 2024, CBL closed on the acquisition of its
partner’s 50% joint venture interests in three high-performing
centers, CoolSprings Galleria in Nashville, TN, Oak Park Mall in
Kansas City, KC, and West County Center in St. Louis, MO. The
interests were acquired for a total cash consideration of $22.5
million. CBL also assumed its former partner's share of three
non-recourse loans, secured individually by each of the assets,
totaling $266.7 million.
- Same-center NOI for 2024 increased 0.2% compared with the
prior-year period, and FFO, as adjusted, per share increased to
$6.69, compared with $6.66 for the prior-year period. CBL reported
a decline in same-center NOI of 1.6% for the fourth quarter 2024
compared with the prior-year period, and FFO, as adjusted, per
share of $1.92, compared with $1.94 for fourth quarter 2023.
Results were in-line with the previously issued guidance range for
2024.
- Nearly 4.5 million square feet of leases were executed in 2024,
including nearly 1.4 million executed in the fourth quarter. Fourth
quarter 2024 leasing results included comparable leases of
approximately 859,000 square feet signed at roughly flat average
rents versus the prior leases.
- Portfolio occupancy was 90.3% as of December 31, 2024, a
100-basis-point-increase sequentially from September 30, 2024, and
a 60-bps decline compared with portfolio occupancy of 90.9% as of
December 31, 2023. Same-center occupancy for malls, lifestyle
centers and outlet centers was 88.7% as of December 31, 2024, a
110-basis-point decline from 89.8% as of December 31, 2023.
Anticipated bankruptcy related store closures representing over
290,000-square-feet negatively impacted mall occupancy by 184 basis
points, compared with the prior-year quarter.
- Same-center tenant sales per square foot for the fourth quarter
2024 increased approximately 1% as compared with the prior-year
period. Same-center tenant sales per square foot for the 12-months
ended December 31, 2024, of $418, were flat compared with the prior
period.
- As of December 31, 2024, the Company had $283.9 million of
unrestricted cash and marketable securities.
- CBL's Board of Directors declared a regular cash dividend of
$0.40 per common share for the quarter ending March 31, 2025, and a
special cash dividend of $0.80 per common share.
"2024 was an outstanding year for CBL," said CBL's chief
executive officer, Stephen D. Lebovitz. "Financial results were
strong, highlighted by the achievement of positive same-center NOI
growth. We also completed significant financing and transactional
activity that strengthened both our balance sheet and portfolio.
Same-center NOI growth for the year benefited from overall positive
rent spreads and new leasing activity as well as lower operating
expenses and tax savings, partially offset by an unfavorable
variance in uncollectable revenues and declines in percentage
rent.
"Leasing volumes were healthy in 2024, with 1.4 million square
feet of new and renewal leases signed in the fourth quarter,
bringing the full year total to nearly 4.5 million square feet.
Comparable shop leases were signed at positive lease spreads of
5.8% for both new and renewal leases. We added exciting new brands
and restaurants to our properties, signing new deals in the fourth
quarter with Kendra Scott, J. Crew Factory, Barnes & Noble,
Drybar, and Cooper's Hawk Winery & Restaurant. Our leasing
efforts through the year resulted in a 100 bps increase in
occupancy sequentially and a narrowing of the decline from the
prior-year period to 60 basis points. We are focused on making
additional progress in occupancy in 2025. Sales improved over the
course of the year with the holiday sales season driving a 1%
increase in the fourth quarter.
"In 2024, we were active on the transaction front, generating
$85 million in proceeds from asset sales. In late December, we were
excited to complete the acquisition of our joint venture partner's
interest in three of our top properties, which paves the way to
unlock future value creation opportunities. We are pursuing
numerous growth opportunities at these high-performing properties
and will now benefit 100% from the results of these efforts.
"We made tremendous improvements to our balance sheet during the
fourth quarter with more than $500 million in financing activity
completed. In concert with the acquisition noted above, we
completed the extension of the non-recourse loans secured by West
County Center, (to December 2026, at the existing interest rate)
and Oak Park Mall, (to October 2030, at a 5% fixed interest rate).
We also closed on two favorable new non-recourse loans secured by
our open-air center in Melbourne, FL and our outlet center in
Louisville, KY.
"With more than $37 million in share repurchase activity
completed, we are actively pursuing opportunities to return capital
to shareholders. We increased our regular dividend rate at the
start of 2024, and now our Board has approved our regular quarterly
dividend as well as a significant special dividend totaling $1.20
per share, to be paid in all cash.
"While uncertainty and certain headwinds remain a factor in
2025, we are focused on driving additional operational improvements
across our portfolio through strategic leasing and redevelopment
efforts. We will continue to pursue opportunities to utilize our
portfolio and strong balance sheet position to generate cash flow
improvements and enhanced shareholder returns. We are excited to
hit the ground running this year and build off the strong momentum
created in 2024."
Same-center Net Operating Income (“NOI”) (1):
Three Months Ended December
31,
2024
2023
Total Revenues
$
177,826
$
180,571
Total Expenses
$
(56,103
)
$
(56,867
)
Total portfolio same-center NOI
$
121,723
$
123,704
Total same-center NOI percentage
change
(1.6
)%
Estimate for uncollectable revenues
(recovery)
$
1,039
$
(285
)
(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 2024 declined $2.0
million. Fourth quarter 2024 results were impacted by a $0.6
million decline in percentage rents. Total operating expense
declined $0.8 million, primarily driven by lower thirdparty
contract expense and lower maintenance and repair projects expense
as compared with the prior period. The estimate for uncollectable
revenues unfavorably impacted the quarter by approximately $1.3
million.
Year Ended December
31,
2024
2023
Total Revenues
$
675,468
$
681,425
Total Expenses
$
(219,901
)
$
(226,934
)
Total portfolio same-center NOI
$
455,568
$
454,492
Total same-center NOI percentage
change
0.2
%
Estimate for uncollectable revenues
(recovery)
$
3,667
$
1,211
Same-center NOI for the twelve months ended December 31, 2024
increased $1.1 million. Results included real estate and other tax
expense savings and improved operating expenses from lower
third-party contract expense. Percentage rents in 2024 were $2.3
million lower. The estimate for uncollectable revenues unfavorably
impacted 2024 by $2.5 million.
PORTFOLIO OPERATIONAL RESULTS Occupancy(1):
As of December 31,
2024
2023
Total portfolio
90.3%
90.9%
Malls, lifestyle centers and outlet
centers:
Total malls
87.8%
89.3%
Total lifestyle centers
92.2%
91.5%
Total outlet centers
92.3%
91.9%
Total same-center malls, lifestyle centers
and outlet centers
88.7%
89.8%
Open-air centers
95.6%
95.5%
All Other Properties
89.5%
78.2%
(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 December
31,
Year Ended December
31,
2024
2024
All Property Types
(0.6)%
5.8%
Stabilized Malls, Lifestyle Centers and
Outlet Centers
(0.8)%
5.5%
New leases
36.4%
56.5%
Renewal leases
(2.2)%
1.1%
Open Air Centers
8.9%
15.7%
Same-Center Sales Per Square Foot for In-line Tenants 10,000
Square Feet or Less:
Sales Per Square Foot for the
Trailing Twelve Months Ended December 31,
2024
2023
% Change
Malls, lifestyle centers and outlet
centers same-center sales per square foot
$
418
$
418
0.0%
DIVIDEND
On February 12, 2025, CBL announced that its Board of Directors
declared a regular cash dividend of $0.40 per common share for the
quarter ending March 31, 2025. The dividend, which equates to an
annual dividend payment of $1.60 per common share, is payable on
March 31, 2025, to shareholders of record as of March 13, 2025.
CBL’s Board of Directors also declared a special cash dividend
of $0.80 per common share. The special dividend is required to
remain in compliance with U.S. federal income tax rules for real
estate investment trusts (“REITs”). The special dividend is payable
on March 31, 2025, to shareholders of record as of March 13,
2025.
FINANCING ACTIVITY
During the fourth quarter 2024, CBL completed approximately
$513.7 million in financing activity.
In December 2024, CBL completed the extension of the $251.4
million non-recourse loan secured by Oak Park Mall in Kansas City,
KS. The maturity was extended to October 2030. The fixed interest
rate will increase to 5% beginning in October 2025. CBL also
exercised a two-year extension of the $144.7 million loan secured
by West County Center in St. Louis, MO. The maturity was extended
to December 2026. CBL closed on an extension of the $6.6 million
loan ($3.3 million at CBL's share) secured by Coastal Grand-Dick's
Sporting Goods in Myrtle Beach, SC. The loan now matures in
November 2025, with an option to extend the maturity to May
2026.
In November, CBL and its 50% joint venture partner took
advantage of improved financing terms and closed on new
non-recourse ten-year loans totaling $45.0 million, secured by
Hammock Landing in West Melbourne, FL. The loans bear a fixed
interest rate of 5.86% and replace two existing partially
guaranteed loans totaling $44.5 million, which bore a floating
interest rate (8.2% as of September 30, 2024). The loans had a
maturity of February 2025.
In October, CBL and its joint venture partner closed on a new
$66.0 million loan secured by The Outlet Shoppes of the Bluegrass.
The new non-recourse loan bears a fixed interest rate of 6.84% and
matures in November 2034. Proceeds were used to retire the $61.6
million existing loan that was set to mature in December 2024.
CBL and its 50% joint venture partner are continuing
discussions, which began in August, with the lender regarding a
loan modification/extension of the $98.8 million in loans secured
by Coastal Grand Mall and Coastal Grand Crossing in Myrtle Beach,
SC.
In July 2024, CBL and its 50% joint venture partner closed on a
new $14.5 million five-year loan secured by the Aloft Hotel at
Hamilton Place in Chattanooga, TN. The loan bears a fixed interest
rate of 7.2% and is non-recourse to CBL and replaced the existing
$16.0 million loan that was set to mature in November 2024.
In May 2024, CBL transferred the title to Westgate Mall in
Spartanburg, SC, to the mortgage holder in satisfaction of the
$28.7 million non-recourse loan secured by the property.
In February 2024, CBL retired the $15.3 million recourse loan
secured by Brookfield Square Anchor Redevelopment in Brookfield,
WI.
CBL is cooperating with the foreclosure or conveyance of
Alamance Crossing East in Burlington, NC, ($41.1 million).
ACQUISITION ACTIVITY
In December 2024, CBL closed on the acquisition of its partner’s
50% joint venture interests in three high-performing centers,
CoolSprings Galleria in Nashville, TN, Oak Park Mall in Kansas
City, KS, and West County Center in St. Louis, MO. The interests
were acquired for a total cash consideration of $22.5 million. CBL
also assumed its former partner's share of three non-recourse
loans, secured individually by each of the assets, totaling $266.7
million.
DISPOSITION ACTIVITY
In January 2025, CBL completed the sale of Monroeville Mall and
Annex in Monroeville PA, for $34.0 million.
In 2024, CBL completed more than $85.0 million in disposition
activity, at CBL's share. Major transactions included the sale of
Layton Hills Mall in Layton, UT, in August for $37.125 million. In
September, CBL closed on the sale of Layton Hills Convenience
Center, Layton Hills Plaza and nine related outparcels in Layton
(Salt Lake City), UT, to an unaffiliated third party for $28.5
million, all cash.
During the fourth quarter, CBL completed the sale of three
outparcels, generating aggregate proceeds at its share of $10.8
million.
DEVELOPMENT AND REDEVELOPMENT ACTIVITY
Detailed project information is available in CBL’s Financial
Supplement for Q4 2024, 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, CBL is initiating FFO, as
adjusted, guidance for 2025 in the range of $6.98 - $7.34 per
share. Management anticipates same-center NOI for full-year 2025 in
the range of (2.0)% to 0.5%.
Low
High
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)
$
427.0
$
438.0
2025 change in same-center NOI
(2.0
)%
0.5
%
2024 vs. 2025 Same-center NOI guidance bridge:
2025 SC NOI Low End
2025 SC NOI High End
Category Explanation
2024 same-center NOI
$
435.7
$
435.7
Non-core assets excluded from same center
pool include Harford Mall, Imperial Valley Mall, Laurel Park Mall
and Brookfield Square.
Net impact from new and renewal leasing
activity
6.5
11.0
Net impact of new leases, renewal leases
and contractual rent bumps for permanent and specialty leasing.
Percentage rent
(3.0
)
(2.0
)
Represents impact of flat to down sales
expectations for the year, higher breakpoints upon lease renewal
and conversion of percentage rent to base rent on renewal.
Operating expense
(7.0
)
(4.0
)
Represents potential increase in operating
expenses.
Credit loss
(5.2
)
(3.7
)
Unbudgeted reserve for tenants that may
file for bankruptcy/close stores.
Uncollectable revenue variance
-
1.0
Represents the estimated impact of a
variance in the estimate for uncollectable revenues.
2025 SC NOI Guidance
$
427.0
$
438.0
% change
(2.0
)%
0.5
%
Reconciliation of GAAP Earnings Per Share to 2025 FFO, as
Adjusted, Per Share:
Low
High
Expected diluted earnings per common
share
$
1.07
$
1.43
Depreciation and amortization
4.61
4.61
Expected FFO, per diluted, fully converted
common share
5.68
6.04
Debt discount accretion, net of
noncontrolling interests' share
0.60
0.60
Adjustment for unconsolidated affiliates
with negative investment
0.70
0.70
Expected FFO, as adjusted, per diluted,
fully converted common share
$
6.98
$
7.34
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
5.0
10.0
2025 Estimated principal amortization
(including est. term loan ECF)
85.0
95.0
Total Estimate
$
130.0
$
160.0
(1) Excludes amounts related to properties
which have 100% of the cash flows from such properties restricted
under the terms of the respective loan agreements as further
described on page 12 of the Financial Supplement.
ABOUT CBL PROPERTIES
Headquartered in Chattanooga, TN, CBL Properties owns and
manages a national portfolio of market-dominant properties located
in dynamic and growing communities. CBL’s owned and managed
portfolio is comprised of 89 properties totaling 56.2 million
square feet across 21 states, including 54 high-quality enclosed
malls, outlet centers and lifestyle retail centers as well as more
than 30 open-air centers and other assets. CBL seeks to
continuously strengthen its company and portfolio through active
management, aggressive leasing and profitable reinvestment in its
properties. For more information visit cblproperties.com.
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 December
31,
Year Ended December
31,
2024
2023
2024
2023
REVENUES:
Rental revenues
$
125,786
$
134,008
$
493,876
$
513,957
Management, development and leasing
fees
1,897
1,821
7,609
7,917
Other
4,007
3,880
14,076
13,412
Total revenues
131,690
139,709
515,561
535,286
EXPENSES:
Property operating
(22,149
)
(22,254
)
(90,052
)
(90,996
)
Depreciation and amortization
(31,561
)
(42,376
)
(140,591
)
(190,505
)
Real estate taxes
(11,797
)
(11,744
)
(47,365
)
(54,807
)
Maintenance and repairs
(9,725
)
(11,334
)
(37,732
)
(41,336
)
General and administrative
(16,607
)
(14,283
)
(67,254
)
(64,066
)
Loss on impairment
(625
)
—
(1,461
)
—
Litigation settlement
400
132
553
2,310
Other
(88
)
(23
)
(230
)
(221
)
Total expenses
(92,152
)
(101,882
)
(384,132
)
(439,621
)
OTHER INCOME (EXPENSES):
Interest and other income
3,604
3,939
15,713
13,199
Interest expense
(36,418
)
(42,317
)
(154,486
)
(172,905
)
Gain (loss) on extinguishment of debt
—
3,270
(819
)
3,270
Gain on deconsolidation
—
—
—
47,879
Gain on consolidation
26,727
—
26,727
—
Gain on sales of real estate assets
189
229
16,676
5,125
Income tax (provision) benefit
(199
)
487
(1,055
)
(894
)
Equity in earnings of unconsolidated
affiliates
4,106
9,043
22,932
11,865
Total other expenses
(1,991
)
(25,349
)
(74,312
)
(92,461
)
Net income
37,547
12,478
57,117
3,204
Net (income) loss attributable to
noncontrolling interests in:
Operating Partnership
(3
)
(8
)
(4
)
(2
)
Other consolidated subsidiaries
434
(657
)
1,857
3,344
Net income attributable to the
Company
37,978
11,813
58,970
6,546
Earnings allocable to unvested restricted
stock
(770
)
(276
)
(1,206
)
(1,113
)
Net income attributable to common
shareholders
$
37,208
$
11,537
$
57,764
$
5,433
Basic and diluted per share data
attributable to common shareholders:
Basic earnings per share
$
1.23
$
0.37
$
1.87
$
0.17
Diluted earnings per share
1.22
0.37
1.87
0.17
Weighted-average basic shares
30,178
31,291
30,905
31,303
Weighted-average diluted shares
30,400
31,291
30,962
31,303
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 December
31,
Year Ended December
31,
2024
2023
2024
2023
Net income attributable to common
shareholders
$
37,208
$
11,537
$
57,764
$
5,433
Noncontrolling interest in income of
Operating Partnership
3
8
4
2
Earnings allocable to unvested restricted
stock
770
276
1,206
1,113
Depreciation and amortization expense
of:
Consolidated properties
31,561
42,376
140,591
190,505
Unconsolidated affiliates
4,141
4,145
16,137
17,408
Non-real estate assets
(418
)
(232
)
(1,187
)
(905
)
Noncontrolling interests' share of
depreciation and amortization in other consolidated
subsidiaries
(446
)
(507
)
(1,916
)
(2,442
)
Loss on impairment, net of taxes
625
—
1,244
—
Gain on depreciable property
—
—
(15,651
)
—
FFO allocable to Operating Partnership
common unitholders
73,444
57,603
198,192
211,114
Debt discount accretion, including our
share of unconsolidated affiliates and net of noncontrolling
interests' share (1)
10,327
13,909
44,929
61,788
Adjustment for unconsolidated affiliates
with negative investment (2)
1,494
(6,062
)
(9,974
)
(7,242
)
Litigation settlement (3)
(400
)
(132
)
(553
)
(2,310
)
Non-cash default interest expense (4)
374
—
606
972
Gain on deconsolidation (5)
—
—
—
(47,879
)
Gain on consolidation (6)
(26,727
)
—
(26,727
)
—
(Gain) loss on extinguishment of debt
(7)
—
(3,270
)
819
(3,270
)
FFO allocable to Operating Partnership
common unitholders, as adjusted
$
58,512
$
62,048
$
207,292
$
213,173
FFO per diluted share
$
2.42
$
1.80
$
6.40
$
6.59
FFO, as adjusted, per diluted
share
$
1.92
$
1.94
$
6.69
$
6.66
Weighted-average common and potential
dilutive common units outstanding
30,406
32,007
30,967
32,015
(1)
In conjunction with fresh start accounting
upon emergence from bankruptcy, the Company recognized debt
discounts equal to the difference between the outstanding balance
of mortgage notes payable and the estimated fair value of such
mortgage notes payable. The debt discounts are accreted as
additional interest expense over the terms of the respective
mortgage notes payable using the effective interest method.
(2)
Represents the Company’s share of the
earnings (losses) before depreciation and amortization expense of
unconsolidated affiliates where the Company is not recognizing
equity in earnings (losses) because its investment in the
unconsolidated affiliate is below zero.
(3)
Represents a credit to litigation
settlement expense, in each respective period, 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, 2024 includes default interest on loans past their maturity
dates. The year ended December 31, 2023 includes default interest
on loans past their maturity dates.
(5)
For the year ended December 31, 2023, the
Company deconsolidated Alamance Crossing East and WestGate Mall due
to a loss of control when the properties were 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' 50% joint
venture interests in CoolSprings Galleria, Oak Park Mall and West
County Center and recognized gain on consolidation.
(7)
During the year ended December 31, 2024,
the Company made a partial paydown on the open-air centers and
outparcels loan and recognized loss on extinguishment of debt
related to a prepayment fee. The three months and year ended
December 31, 2023 includes a gain on extinguishment of debt related
to the loan secured by The Outlet Shoppes at Laredo.
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Diluted EPS attributable to common
shareholders
$
1.22
$
0.37
$
1.87
$
0.17
Add amounts per share included in FFO:
Unvested restricted stock
0.03
0.01
0.03
0.03
Eliminate amounts per share excluded from
FFO:
Depreciation and amortization expense,
including amounts from consolidated properties, unconsolidated
affiliates, non-real estate assets and excluding amounts allocated
to noncontrolling interests
1.15
1.42
4.96
6.39
Loss on impairment, net of taxes
0.02
—
0.04
—
Gain on depreciable property
—
—
(0.50
)
—
FFO per diluted share
$
2.42
$
1.80
$
6.40
$
6.59
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
SUPPLEMENTAL FFO INFORMATION:
Lease termination fees
$
144
$
1,423
$
2,357
$
3,504
Straight-line rental income adjustment
$
804
$
1,432
$
974
$
6,840
Gain on outparcel sales, net of taxes
$
257
$
229
$
951
$
5,607
Net amortization of acquired above- and
below-market leases
$
(5,134
)
$
(5,626
)
$
(15,616
)
$
(20,736
)
Income tax (provision) benefit
$
(199
)
$
487
$
(1,055
)
$
(894
)
Abandoned projects expense
$
(88
)
$
(22
)
$
(230
)
$
(39
)
Interest capitalized
$
134
$
111
$
562
$
453
Estimate of uncollectable revenues
$
(870
)
$
1,081
$
(5,085
)
$
(1,493
)
As of December 31,
2024
2023
Straight-line rent receivable
$
23,789
$
22,649
Same-center Net Operating
Income
(Dollars in thousands)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Net income
$
37,547
$
12,478
$
57,117
$
3,204
Adjustments:
Depreciation and amortization
31,561
42,376
140,591
190,505
Depreciation and amortization from
unconsolidated affiliates
4,141
4,145
16,137
17,408
Noncontrolling interests' share of
depreciation and amortization in other consolidated
subsidiaries
(446
)
(507
)
(1,916
)
(2,442
)
Interest expense
36,418
42,317
154,486
172,905
Interest expense from unconsolidated
affiliates
16,070
17,753
67,108
71,867
Noncontrolling interests' share of
interest expense in other consolidated subsidiaries
(1,044
)
(1,089
)
(4,240
)
(6,156
)
Abandoned projects expense
88
22
230
39
Gain on sales of real estate assets, net
of taxes and noncontrolling interests' share
(189
)
(229
)
(16,676
)
(4,839
)
Gain on sales of real estate assets of
unconsolidated affiliates
(68
)
—
(68
)
(768
)
Adjustment for unconsolidated affiliates
with negative investment
1,494
(6,062
)
(9,974
)
(7,242
)
(Gain) loss on extinguishment of debt
—
(3,270
)
819
(3,270
)
Gain on deconsolidation
—
—
—
(47,879
)
Gain on consolidation
(26,727
)
—
(26,727
)
—
Loss on impairment
625
—
1,461
—
Litigation settlement
(400
)
(132
)
(553
)
(2,310
)
Income tax provision (benefit)
199
(487
)
1,055
894
Lease termination fees
(144
)
(1,423
)
(2,357
)
(3,504
)
Straight-line rent and above- and
below-market lease amortization
4,330
4,194
14,642
13,896
Net loss (income) attributable to
noncontrolling interests in other consolidated subsidiaries
434
(657
)
1,857
3,344
General and administrative expenses
16,607
14,283
67,254
64,066
Management fees and non-property level
revenues
(5,979
)
(4,360
)
(25,049
)
(19,087
)
Operating Partnership's share of
property NOI
114,517
119,352
435,197
440,631
Non-comparable NOI
7,206
4,352
20,371
13,861
Total same-center NOI (1)(2)
$
121,723
$
123,704
$
455,568
$
454,492
Total same-center NOI percentage
change
(1.6
)%
0.2
%
(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,
2024, 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, 2024. 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 50% interest in CoolSprings Galleria, Oak Park
Mall and West County Center during December 2024, same-center NOI
is reflected at 100% for those properties for all periods.
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Malls
$
86,968
$
89,941
$
318,288
$
322,534
Outlet centers
5,927
5,505
22,202
21,044
Lifestyle centers
9,190
9,126
36,089
35,849
Open-air centers
13,882
13,604
56,517
53,971
Outparcels and other
5,756
5,528
22,472
21,094
Total same-center NOI
$
121,723
$
123,704
$
455,568
$
454,492
Percentage Change:
Malls
(3.3
)%
(1.3
)%
Outlet centers
7.7
%
5.5
%
Lifestyle centers
0.7
%
0.7
%
Open-air centers
2.0
%
4.7
%
Outparcels and other
4.1
%
6.5
%
Total same-center NOI
(1.6
)%
0.2
%
Company's Share of Consolidated and
Unconsolidated Debt
(Dollars in thousands)
As of December 31,
2024
Fixed Rate
Variable Rate
Total Debt
Unamortized Deferred Financing
Costs
Unamortized Debt Discounts
(1)
Total, net
Consolidated debt (2)
$
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 (3)
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
%
As of December 31,
2023
Fixed Rate
Variable Rate
Total Debt
Unamortized Deferred Financing
Costs
Unamortized Debt Discounts
(1)
Total, net
Consolidated debt (2)
$
915,753
$
1,028,213
$
1,943,966
$
(13,221
)
$
(41,942
)
$
1,888,803
Noncontrolling interests' share of
consolidated debt
(25,021
)
(11,823
)
(36,844
)
249
3,706
(32,889
)
Company's share of unconsolidated
affiliates' debt
622,169
57,274
679,443
(3,197
)
—
676,246
Other debt (3)
69,783
—
69,783
—
—
69,783
Company's share of consolidated,
unconsolidated and other debt
$
1,582,684
$
1,073,664
$
2,656,348
$
(16,169
)
$
(38,236
)
$
2,601,943
Weighted-average interest rate
5.26
%
8.42
%
6.54
%
(1)
In conjunction with the acquisition of the
Company's partners' 50% joint venture interests in CoolSprings
Galleria, Oak Park Mall and West County Center and the
implementation of fresh start accounting upon emergence from
bankruptcy, the Company recognized debt discounts equal to the
difference between the outstanding balance of mortgage notes
payable and the estimated fair value of such mortgage notes
payable. The debt discounts are accreted as additional interest
expense over the terms of the respective mortgage notes payable
using the effective interest method.
(2)
At December 31, 2024, includes $533,377 of
debt and $87,022 of unamortized debt discounts related to three
properties in which the Company acquired its joint venture
partner's 50% interest and now consolidates the properties. At
December 31, 2023, $274,879 of debt represented the Company's 50%
interest of such debt, which was included in the Company's share of
unconsolidated affiliates' debt.
(3)
Represents the outstanding loan balance
for Alamance Crossing East, which was deconsolidated due to a loss
of control when the property was placed into receivership in
connection with the foreclosure process. Additionally, WestGate
Mall was deconsolidated in September 2023 when the property was
placed into receivership in connection with the foreclosure
process, which was completed in May 2024.
Consolidated Balance Sheets
(Unaudited; in thousands, except share
data)
December 31,
December 31,
2024
2023
ASSETS
Real estate assets:
Land
$
588,153
$
585,191
Buildings and improvements
1,505,232
1,216,054
2,093,385
1,801,245
Accumulated depreciation
(283,785
)
(228,034
)
1,809,600
1,573,211
Held-for-sale
56,075
—
Developments in progress
5,817
8,900
Net investment in real estate assets
1,871,492
1,582,111
Cash and cash equivalents
40,791
34,188
Restricted cash
112,938
88,888
Available-for-sale securities - at fair
value (amortized cost of $242,881 and $261,869 as of December 31,
2024 and December 31, 2023, respectively)
243,148
262,142
Receivables:
Tenant
45,594
43,436
Other
2,356
2,752
Investments in unconsolidated
affiliates
83,465
76,458
In-place leases, net
186,561
157,639
Intangible lease assets and other
assets
160,846
158,291
$
2,747,191
$
2,405,905
LIABILITIES AND EQUITY
Mortgage and other indebtedness, net
$
2,212,680
$
1,888,803
Accounts payable and accrued
liabilities
221,647
186,485
Total liabilities
2,434,327
2,075,288
Shareholders' equity:
Common stock, $.001 par value, 200,000,000
shares authorized, 30,711,227 and 31,975,645 issued and outstanding
as of December 31, 2024 and December 31, 2023, respectively (in
each case, excluding 34 treasury shares)
31
32
Additional paid-in capital
694,566
719,125
Accumulated other comprehensive income
782
610
Accumulated deficit
(371,833
)
(380,446
)
Total shareholders' equity
323,546
339,321
Noncontrolling interests
(10,682
)
(8,704
)
Total equity
312,864
330,617
$
2,747,191
$
2,405,905
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250214103239/en/
Katie Reinsmidt, Executive Vice President - Chief Operating
Officer, 423.490.8301, katie.reinsmidt@cblproperties.com
CBL and Associates Prope... (NYSE:CBL)
Historical Stock Chart
From Jan 2025 to Feb 2025
CBL and Associates Prope... (NYSE:CBL)
Historical Stock Chart
From Feb 2024 to Feb 2025
