CBL & Associates Properties, Inc., Common Stock CUSIP# 124830-878 NYSE: CBL Record Date Payable Date Distribution Per Share 2025 Ordinary Dividends (Box 1a) 2025 Capital Gain Distribution (Box 2a) 2025 Non-Dividend Distribution (Box 3) (1)Section 199A Dividends (Box 5) 03/13/2025 03/31/2025 $0.40 $0.3543314 $0.0008576 $0.0448110 $0.3543314 03/13/2025 03/31/2025 $0.80 $0.7086629 $0.0017150 $0.0896221 $0.7086629 06/13/2025 06/30/2025 $0.40 $0.3 ...

Group 1 - The article discusses the author's long-term investment approach, focusing on fundamental analysis and a combination of long stock positions with covered calls and cash secured puts [1] - The author has a history of investing in REITs, preferred stocks, and high-yield bonds since high school, indicating a strong interest in the markets and economy [1] - The author primarily covers REITs and financials on Seeking Alpha, with occasional insights on ETFs and other stocks influenced by macroeconomic trends [1] Group 2 - The author has a beneficial long position in CBL shares, indicating a personal investment interest in the company [2] - The article reflects the author's own opinions and is not influenced by compensation from any company mentioned [2] - There is no business relationship between the author and any company whose stock is discussed in the article, ensuring an independent perspective [2]

Core Insights - The article discusses the preferences of investors regarding dividend income, highlighting the trade-off between higher yields from individual companies and the stability of instruments like CDs and ETFs [1] Group 1: Company Profiles - CBL & Associates Properties, Inc. (CBL) is a self-managed REIT focused on regional shopping malls and commercial properties, with a forward dividend yield of 4.5% and a 5-year CAGR of 14.76% [2][4] - Universal Health Realty Income Trust (UHT) offers a higher dividend yield of 7.5% and focuses on healthcare facilities, but has a lower 5-year dividend CAGR of 1.39% [7][12] - Oil-Dri Corporation of America (ODC) is not a REIT and offers a dividend yield of 1.34% with a 5-year CAGR of around 5%, while its stock has appreciated over 200% in the past 5 years [13][15] Group 2: Dividend Characteristics - CBL is legally required to pay out at least 90% of its taxable income as dividends, reducing the risk of abrupt changes in capital allocation strategies [5] - UHT's focus on the healthcare sector may attract investors seeking stability, but its lower growth rate may appeal more to short-term income investors [12] - ODC's dividend payout ratio is 20%, indicating a healthy cushion for funding dividends alongside other needs, though it carries a risk of dividend cuts due to its non-REIT status [16][17]

Core Insights - CBL & Associates Properties, Inc. (CBL) reported a significant increase in earnings for Q3 2025, with diluted EPS rising to $2.38 from $0.52 a year earlier, driven by gains on property sales and deconsolidation [2][10] - The stock has outperformed the S&P 500 Index, gaining 4.3% since the earnings report, and 13.3% over the past month [1] Financial Performance - Total revenues increased by 11.3% to $139.3 million from $125.1 million year-over-year, with rental revenues up 12.3% to $134.8 million [2] - Funds from operations (FFO) per diluted share rose 69.5% to $2.17, while adjusted FFO increased slightly by 0.6% to $1.55 [2] Operating Metrics - Same-center net operating income (NOI) grew by 1.1% year-over-year, with lifestyle centers showing a 15.2% increase [3] - Total portfolio occupancy improved to 90.2%, up from 89.3% a year earlier, with malls at 87.6% leased [4] Leasing Activity - CBL executed over 972,000 square feet of leases in the quarter, achieving a 17.1% average rent increase [5] - Same-center tenant sales per square foot increased by approximately 4.8% year-over-year [5] Management Commentary - Management described the quarter as "excellent," highlighting growth in same-center NOI, higher occupancy, and robust lease spreads [6] - The company is diversifying its tenant mix towards lifestyle and experiential offerings [6] Balance Sheet Management - CBL extended its non-recourse term loan, pushing out a major maturity cluster, and secured a new $43 million loan at a lower interest rate [7] - The company reported a $51.2 million gain on real estate asset sales, significantly contributing to the increase in net income [10] Outlook and Guidance - CBL reaffirmed its full-year 2025 FFO guidance at $6.98–$7.34 per share, with expectations for same-center NOI to range from a 2% decline to 0.5% growth [11] - Estimated capital needs for 2025 are projected at $137.5 million–$167.5 million [12] Transaction Activity - CBL generated over $238 million from property dispositions in 2025, including significant sales of various properties [13] - The company acquired four regional malls for $178.9 million, expanding its portfolio [14] Stock Buyback and Liquidity - CBL has repurchased approximately $7.3 million of stock and has a new $25 million buyback authorization in place [15] - The company maintained liquidity with $313 million in unrestricted cash and marketable securities at quarter-end [15]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - CBL & Associates Properties (CBL) has experienced significant volatility in its share price in 2025, typical for a retail REIT with high leverage [1] - Despite the volatility, CBL has achieved a total return of approximately 15% year-to-date, which is notably above market expectations [1] Company Overview - CBL is a retail Real Estate Investment Trust (REIT) that employs significant leverage, impacting its share price stability [1] - The company has a focus on long-term fundamental investment strategies, particularly in REITs, preferred stocks, and high-yield bonds [1] Investment Strategy - The investment approach includes combining long stock positions with covered calls and cash secured puts, indicating a strategy aimed at risk management and income generation [1] - The analysis primarily covers REITs and financials, with occasional insights into ETFs and macro-driven stock ideas [1]

Financial Performance - Net income for the three months ended September 30, 2025, was $75.060 million, compared to $15.753 million for the same period in 2024, representing a significant increase [158]. - Net income attributable to common shareholders for the nine months ended September 30, 2025, was $85.631 million, up from $20.140 million in 2024, indicating strong growth [158]. - Total revenues for the three months ended September 30, 2025, were $139.280 million, an increase of $14.191 million compared to $125.089 million in 2024 [166]. - Total revenues for the nine months ended September 30, 2025, increased by $38.1 million to $421.9 million, driven by rental revenue growth from the consolidation of three malls and acquisition of four malls [174]. - A total gain of $74.1 million was recognized on sales of real estate assets during the nine months ended September 30, 2025, compared to a $16.5 million gain in the prior-year period [183]. Revenue and Rental Growth - Rental revenues increased by $14.8 million for the three months ended September 30, 2025, primarily due to the consolidation of three malls and the acquisition of four malls [166]. - Rental revenues increased by $68.0 million during the current-year period, offset by $25.5 million from properties sold since the prior-year period [174]. - Rental revenues for the three months ended September 30, 2025, were $0.3 million higher, primarily due to increased minimum rents and percentage rents [189]. - The majority of revenues for the nine months ended September 30, 2025, were derived from malls (71.4%), followed by open-air centers (10.5%) and lifestyle centers (7.8%) [193]. Operating Expenses - Total operating expenses increased by $16.188 million for the three months ended September 30, 2025, primarily due to the consolidation and acquisition of malls [167]. - Total operating expenses increased by $44.1 million for the nine months ended September 30, 2025, primarily due to the consolidation of three malls and acquisition of four malls [175]. - General and administrative expenses rose by $2.4 million primarily due to fees related to the modification of a non-recourse bank loan [169]. - Depreciation and amortization expense increased by $7.574 million for the three months ended September 30, 2025, due to the addition of tangible and intangible assets from recent acquisitions [168]. - Depreciation and amortization expense rose by $45.7 million, mainly due to the addition of tangible and intangible assets from the consolidation and acquisition of malls [176]. Impairment and Losses - The company reported a loss on impairment of $1.736 million related to a land parcel sold below its carrying value during the three months ended September 30, 2025 [169]. - A loss on impairment of $3.2 million was recorded related to the sales of 840 Greenbrier Circle and a land parcel, sold for less than their carrying values [178]. Debt and Financing - As of September 30, 2025, the total outstanding debt was $2,679.4 million, with $2,676.6 million classified as non-recourse debt obligations [212]. - The weighted-average interest rate for total fixed-rate and variable-rate debt was 5.99% [216]. - A 0.5% increase in interest rates on variable-rate debt would increase annual interest expense by approximately $3.8 million [245]. - A 0.5% increase in interest rates would decrease the fair value of total debt by approximately $22.9 million, while a 0.5% decrease would increase the fair value by approximately $23.8 million [246]. - The company modified loans secured by various properties, increasing the principal balance on the 2032 non-recourse bank loan by $110.0 million to fund acquisitions [205]. Cash Flow and Dividends - Cash provided by operating activities increased to $169.5 million for the nine months ended September 30, 2025, up from $156.0 million in the prior year [208]. - Cash used in investing activities was $(73.8) million for the nine months ended September 30, 2025, primarily due to the acquisition of four malls [210]. - The company paid common stock dividends of $0.40 per share in Q1 and Q2 2025, and $0.45 per share in Q3 2025, along with a special dividend of $0.80 per share in Q1 2025 [206]. Occupancy and Leasing Activity - Portfolio occupancy as of September 30, 2025, was 90.2%, up from 89.3% in 2024, with total malls occupancy increasing to 87.6% from 86.4% [195]. - New leases signed in the three months ended September 30, 2025, totaled 203,948 square feet, compared to 143,207 square feet in the same period in 2024 [196]. - Total new and renewal leasing activity for 2025/2026 amounted to 807 leases covering 2,543,377 square feet, with an average initial rent of $38.70 PSF [200]. - The average rent spread for new leases commencing in 2025 was 31.8%, while renewal leases experienced a decline of 3.5% [200]. Joint Ventures and Affiliates - The company may enter into joint ventures to capitalize on land and development opportunities, earning development fees and management fees [227]. - The company guarantees joint venture debt to secure lower funding costs, resulting in higher returns for both the joint venture and the company [228]. - The company has ownership interests in 24 unconsolidated affiliates as of September 30, 2025 [226]. Accounting and Estimates - FFO is defined as net income excluding gains or losses on sales of depreciable properties, plus depreciation and amortization, providing a clearer picture of operating performance [232]. - The company evaluates its accounting estimates and assumptions regularly, which may impact the carrying values of assets and liabilities [230]. - There have been no material changes to the company's critical accounting policies during the nine months ended September 30, 2025 [231].

Financial Performance - CBL Properties reported a 1.1% increase in same-center NOI for Q3 2025, with total same-center NOI reaching $101.3 million compared to $100.1 million in Q3 2024[9]. - Funds from Operations (FFO), as adjusted, per share for Q3 2025 was $1.55, slightly up from $1.54 in Q3 2024, while year-to-date FFO, as adjusted, per share was $4.94 compared to $4.78 for the same period in 2024[9]. - Total revenues for Q3 2025 reached $139.280 million, a 11.5% increase from $125.089 million in Q3 2024[49]. - Rental revenues increased to $134.786 million in Q3 2025, up 12.3% from $119.992 million in Q3 2024[49]. - Net income attributable to common shareholders for Q3 2025 was $74.267 million, compared to $15.865 million in Q3 2024, representing a significant increase of 367.5%[49]. - FFO (Funds From Operations) allocable to Operating Partnership common unitholders for Q3 2025 was $67.819 million, up 72.1% from $39.435 million in Q3 2024[51]. - Diluted earnings per share for Q3 2025 were $2.38, a substantial increase from $0.52 in Q3 2024[57]. - Total expenses for Q3 2025 were $109.415 million, compared to $93.227 million in Q3 2024, reflecting a 17.4% increase[49]. - The company reported a gain on sales of real estate assets of $51.228 million in Q3 2025, compared to $12.816 million in Q3 2024[49]. - The company recognized a loss on impairment of $1.736 million in Q3 2025, compared to no impairment loss in Q3 2024[49]. Occupancy and Leasing - Portfolio occupancy increased by 90 basis points to 90.2% as of September 30, 2025, compared to 89.3% a year earlier[9]. - Tenant sales per square foot for the same-center increased approximately 4.8% in Q3 2025, with a 12-month trailing figure of $432 per square foot, reflecting a 1.6% increase year-over-year[9]. - CBL executed over 972,000 square feet of leases in Q3 2025, with new leases showing a 70.6% increase in average rents compared to prior rents[9]. - The occupancy rate for total acquired properties was 93.0% as of September 30, 2025[101]. - In-line occupancy for total malls improved to 89.4% in 2025 from 88.0% in 2024, indicating a year-over-year increase of 1.4 percentage points[99]. - The in-line occupancy rate for Lifestyle Centers remained stable at 91.9% in 2025, slightly up from 91.8% in 2024[99]. - The in-line occupancy for Outlet Centers increased to 94.9% in 2025 from 94.1% in 2024, marking an improvement of 0.8 percentage points[100]. Debt and Financing - A new $43.0 million non-recourse loan was secured at a 5.9% interest rate, representing a 160-basis point improvement over the previous rate[20]. - The existing loan of $333.0 million was modified to include the acquisition properties, increasing the principal balance to $443.0 million with a fixed interest rate of 7.70% for the initial term[28]. - The company's share of consolidated and unconsolidated debt as of September 30, 2025, totaled $2,583,740,000, with a weighted-average interest rate of 5.99%[64]. - The company's share of unconsolidated affiliates' debt was $389,129,000 as of September 30, 2025[64]. - Total consolidated debt as of September 30, 2025, was $2,273,721,000, compared to $1,512,637,000 in 2024[78]. - Weighted-average interest rate on total consolidated debt was 6.02% as of September 30, 2025, compared to 5.38% in 2024[78]. - The company has a weighted-average interest rate of 7.29% on its consolidated and unconsolidated debt[86]. Guidance and Projections - CBL reaffirmed its FFO guidance for 2025 in the range of $6.98 - $7.34 per share, anticipating same-center NOI to change between (2.0)% to 0.5%[30]. - The estimated 2025 same-center NOI is projected to be between $410.1 million and $420.6 million, reflecting a potential decline of (2.0)% to growth of 0.5%[31]. - Expected diluted earnings per common share for 2025 are estimated between $3.21 and $3.57, with adjusted FFO per diluted share projected at $6.98 to $7.34[32]. - CBL's total estimated capital items for 2025 range from $137.5 million to $167.5 million, including maintenance capital and development expenditures[35]. Capital Expenditures and Investments - Total capital expenditures for the three months ended September 30, 2025, were $16,331,000, compared to $17,303,000 in 2024, while total capital expenditures for the nine months ended September 30, 2025, were $41,112,000, up from $35,119,000 in 2024[129]. - CBL's share of the total cost for the Mayfaire Town Center hotel development is $15,435,000, with an expected yield of 11.0% upon opening in August 2025[132]. - The company reported a net investment in real estate assets of $1,885,470,000 as of September 30, 2025, compared to $1,871,492,000 as of December 31, 2024[67]. Market Strategy and Future Plans - CBL's acquisition strategy included adding four dominant malls to its portfolio in July, enhancing its cash flow opportunities[12]. - The company is focusing on expanding its Lifestyle and Open-Air Centers to attract more local and regional customers[92]. - Future strategies include potential acquisitions and repositioning of properties to enhance overall portfolio performance[94]. - The company is focusing on market expansion and redevelopment strategies to enhance overall portfolio performance[104].

Core Insights - Nurix Therapeutics, Inc. presented new translational data from its ongoing Phase 1 study of NX-1607, a first-in-class oral inhibitor of CBL-B, at the SITC 2025 Annual Meeting, highlighting its potential in treating advanced solid tumors [1][4] Group 1: Clinical Data and Findings - The new data from the Phase 1a clinical trial showed that NX-1607 resulted in dose-dependent pharmacologic activity, leading to increased peripheral T cell activation and proliferation, particularly in patients with stable disease [2][7] - A case study of a patient with metastatic castration-resistant prostate cancer (mCRPC) indicated that treatment with NX-1607 was associated with an expansion of activated peripheral memory T cell subsets and enhanced immune activation gene signatures [3][7] - The findings suggest that NX-1607 induces peripheral immune activation linked to remodeling of the tumor microenvironment, which may contribute to local tumor control [3][7] Group 2: Mechanism and Rationale - CBL-B inhibition is supported as a novel immune-oncology therapy, with NX-1607 showing signs of immune activation and disease control in heavily pretreated patients [4][6] - The treatment demonstrated dose-dependent pharmacokinetics and pharmacodynamic modulation, confirming target engagement and inhibition of CBL-B-mediated signaling [7] - Transcriptomic analyses revealed dose-dependent enrichment of immune signaling pathways, further supporting the mechanistic link between NX-1607 exposure and immune activation [7] Group 3: Company Overview - Nurix Therapeutics is focused on developing targeted protein degradation medicines for cancer and autoimmune diseases, with a pipeline that includes inhibitors of CBL-B and Bruton's tyrosine kinase [8] - The company is advancing multiple potentially first-in-class or best-in-class therapies, leveraging a fully AI-integrated discovery engine to enhance drug development [8]

Core Insights - CBL Properties has opened a new Primark store at CoolSprings Galleria in Nashville, Tennessee, marking the second Primark location in the state and the first in CBL's portfolio [1][2] Company Overview - CBL Properties is headquartered in Chattanooga, TN, and manages a national portfolio of 88 properties totaling 53.9 million square feet across 22 states, including 55 enclosed malls and various retail centers [4] Retail Expansion - The new Primark store spans 35,000 square feet and offers a variety of products including fashion, homeware, and beauty items [2] - CBL has recently added several new retailers to CoolSprings Galleria, including LEGO, LoveSac, and Miss A, with Vans expected to open this winter [3] Community Engagement - The opening weekend of Primark included live music, giveaways, and a special appearance from the character Bluey, indicating a strong community engagement strategy [2]