CBL & Associates Properties(CBL) - 2024 Q4 - Annual Results

Financial Performance - FFO, as adjusted, per share for 2024 was $6.69, slightly up from$ 6.66 in 2023; Q4 2024 FFO, as adjusted, per share was $1.92, down from$ 1.94 in Q4 2023[9] - Total revenues for the year ended December 31, 2024, were $675.5 million, down from$ 681.4 million in 2023[19] - Total revenues for Q4 2024 were $131.69 million, a decrease of 5.8% from$ 139.71 million in Q4 2023[54] - Net income attributable to common shareholders for Q4 2024 was $37.21 million, compared to$ 11.54 million in Q4 2023, representing a significant increase of 222.5%[54] - Basic earnings per share for Q4 2024 were $1.23, up from$ 0.37 in Q4 2023, reflecting a growth of 232.4%[54] - Net income for the year ended December 31, 2024, was $54,433, compared to$ 38,434 in 2023, representing an increase of 41.7%[75] Occupancy and Leasing Activity - Portfolio occupancy was 90.3% as of December 31, 2024, a 100-basis-point increase from September 30, 2024, but a 60-basis-point decline from 90.9% as of December 31, 2023[9] - CBL executed nearly 4.5 million square feet of leases in 2024, with approximately 1.4 million square feet executed in Q4 2024[9] - Same-center tenant sales per square foot for Q4 2024 increased by approximately 1% compared to the prior year, with annual sales per square foot remaining flat at $418[9] - The in-line occupancy rate for malls decreased from 91.8% in December 2023 to 90.1% in December 2024[106] - Total sales per square foot for malls decreased from$ 397 in 2023 to $386 in 2024, with in-line occupancy increasing from 87.9% to 89.3%[107] Debt and Financing - CBL completed approximately$ 513.7 million in financing activity during Q4 2024[25] - The company's share of consolidated and unconsolidated debt as of December 31, 2024, was $2,617,290,000, with a weighted-average interest rate of 6.03%[69] - The total consolidated debt as of December 31, 2024, was$ 2,331,904 thousand, compared to $1,403,798 thousand in 2023, an increase of approximately 66.5%[85] - The weighted-average interest rate on total consolidated debt increased to 6.07% in 2024 from 5.02% in 2023[85] - CBL's loan includes a fixed interest rate of 6.95% for half of the outstanding balance, while the other half is variable based on the 30-day SOFR plus 4.10%[87] Capital Expenditures and Investments - CBL completed$ 85 million in asset sales during 2024 and acquired a 50% interest in three high-performing centers for $22.5 million[9] - Total capital expenditures for the year ended December 31, 2024, reached$ 51,208,000, up from $41,975,000 in 2023, reflecting a 22.4% increase[133] - Maintenance capital expenditures totaled$ 31,345,000 for the year ended December 31, 2024, compared to $24,896,000 in 2023, indicating a 25.0% increase[133] - The Hamilton Place redevelopment project is expected to yield 23.3% with a total cost of$ 2,648,000, scheduled to open in Q4 2024[136] Cash Flow and Liquidity - The company reported $283.9 million in unrestricted cash and marketable securities as of December 31, 2024[9] - Cash flows provided by operating activities increased to$ 46,200 thousand in Q4 2024 from $49,361 thousand in Q4 2023, a decrease of about 4.4%[82] - Cash and cash equivalents at the end of the period decreased to$ 31,812,000 from $35,741,000 in the previous year, reflecting a decline of approximately 11%[121] Future Guidance and Projections - CBL's 2025 FFO guidance is set between$ 6.98 and $7.34 per share, with a projected same-center NOI change of (2.0)% to 0.5%[36][37] - The 2025 same-center NOI is expected to range from$ 427.0 million to $438.0 million, down from$ 435.7 million in 2024[38] - CBL estimates 2025 maintenance capital/tenant allowances between $40.0 million and$ 55.0 million, with total capital items estimated at $130.0 million to$ 160.0 million[39] Special Items and Adjustments - The company reported a gain on consolidation of $26.73 million in Q4 2024, following the acquisition of partners' 50% joint venture interests[58] - The company recognized a loss on impairment of$ 625,000 in Q4 2024, compared to no impairment loss in Q4 2023[54] - The company reported a gain on sales of real estate assets amounting to $10,593,000 in 2024, compared to no gains in 2023[121] Strategic Initiatives - The company plans to continue its market expansion and product development strategies, focusing on enhancing operational efficiencies and exploring new acquisition opportunities[58] - The company is actively engaged in new loan arrangements for its joint venture properties, indicating ongoing market expansion efforts[116]