CBL & Associates Properties(CBL) - 2025 Q1 - Quarterly Results

Financial Performance - For Q1 2025, CBL reported net income attributable to common shareholders of $0.27, compared to a loss of $0.01 in Q1 2024[6]. - Funds from Operations (FFO) for Q1 2025 were $1.13 per share, down from $1.21 in the same period last year, while adjusted FFO remained flat at $1.50[6][8]. - Same-center Net Operating Income (NOI) declined by 2.3% year-over-year, totaling $103.2 million for Q1 2025, down from $105.6 million in Q1 2024[8][14]. - CBL's Board declared a regular cash dividend of $0.40 per common share for the quarter ending June 30, 2025, equating to an annual dividend of $1.60 per share[20]. - Net income attributable to common shareholders for the three months ended March 31, 2025, was $8.21 million, compared to a net loss of $0.21 million in the same period of 2024[47]. - The company reported total revenues of $141.77 million for the three months ended March 31, 2025, compared to $129.12 million in the same period of 2024, marking an increase of approximately 9.8%[47]. - Total expenses for the three months ended March 31, 2025, were $121.32 million, compared to $102.26 million in the same period of 2024, reflecting an increase of approximately 18.6%[47]. - Diluted EPS attributable to common shareholders increased to $0.27 in Q1 2025 from $(0.01) in Q1 2024[53]. - Net income for Q1 2025 was $8.387 million, a significant improvement from a net loss of $0.474 million in Q1 2024[56]. Revenue and Occupancy - Portfolio occupancy increased to 90.4% as of March 31, 2025, up from 89.4% a year earlier, with same-center occupancy for malls, lifestyle centers, and outlet centers at 88.7%[8][17]. - For the three months ended March 31, 2025, rental revenues increased to $137.36 million from $124.03 million in the same period of 2024, representing an increase of approximately 10.5%[47]. - Total rental revenues increased to $137,360 in Q1 2025, up 10.7% from $124,027 in Q1 2024[74]. - Minimum rents rose to $101,020 in Q1 2025, compared to $93,908 in Q1 2024, reflecting an increase of 7.4%[74]. - Total same-center portfolio recorded a sales per square foot of $423, down from $424, with occupancy improving from 89.8% to 90.4%[98]. Debt and Financial Position - Total consolidated debt as of March 31, 2025, was $2.150 billion, down from $2.213 billion as of December 31, 2024[63]. - The company's share of unconsolidated affiliates' debt was $395.674 million as of March 31, 2025[59]. - Cash and cash equivalents decreased to $29.822 million as of March 31, 2025, compared to $40.791 million as of December 31, 2024[63]. - The weighted-average interest rate for consolidated debt was 5.16% as of March 31, 2025[59]. - CBL's total debt as of March 31, 2025, is $2,259,340, with a weighted average interest rate of 5.93%[82]. - The debt maturing in 2025 is projected at $130,081, which constitutes 4.96% of total debt[82]. - The company has a significant portion of its debt maturing in 2026, amounting to $717,777, representing 27.38% of total debt[82]. Leasing and Development - CBL executed nearly 575,000 square feet of leases in Q1 2025, with new comparable leases signed at an increase of over 21% in average rents, while renewal leases saw a decline of 6.5%[8][10]. - New leases signed in Q1 2025 totaled 111,794 square feet, with an average initial rent of $49.82 per square foot[117]. - The average gross rent for new leases in Q1 2025 was $43.52 per square foot, a decrease of 5.4% compared to the prior year[111]. - CBL's share of properties under development includes a hotel project at Mayfaire Town Center with a total cost of $15,435,000 and an expected yield of 11.0%[126]. - The expected opening date for the Mayfaire Town Center hotel is summer 2025[126]. Capital Expenditures - Total capital expenditures for the three months ended March 31, 2025, were $12,731,000, compared to $7,399,000 for the same period in 2024, representing a 72.5% increase[123]. - Maintenance capital expenditures totaled $6,188,000 for Q1 2025, up from $5,417,000 in Q1 2024, reflecting a 14.2% increase[123]. - Tenant allowances increased significantly to $6,543,000 in Q1 2025 from $1,982,000 in Q1 2024, marking a 229.5% rise[123]. Strategic Focus - The company continues to focus on maintaining its asset base while navigating the challenges posed by cash trapped properties and overall market conditions[6]. - CBL's operational strategy includes managing a diverse portfolio of property types, including malls, outlet centers, and open-air centers, to optimize revenue generation[85]. - The company continues to explore opportunities for market expansion and potential acquisitions to drive growth[125].