CBL & Associates Properties(US:CBL)2025-08-06 13:28Acquisitions and Dispositions - CBL acquired four regional malls for $178.9 million, increasing its loan with Beal Bank USA to $443.0 million and extending the maturity by seven years[8]. - Year-to-date, CBL generated over $162.7 million from asset dispositions, including the sale of The Promenade for $83.1 million at an 8.5% cap rate[8]. - CBL closed the acquisition of four regional malls for $178.9 million, enhancing its position in growing middle markets[27]. - CBL completed the acquisition of four enclosed malls for $178,900, increasing the principal balance of an existing loan to $442,956 and extending its maturity to October 2030[5]. Financial Performance - Same-center NOI for Q2 2025 declined 0.5% year-over-year, while FFO, as adjusted, per share increased to $1.86 from $1.73[8]. - Total revenues for the six months ended June 30, 2025, were $311.7 million, compared to $307.6 million in the prior year[17]. - Total same-center NOI for the six months ended June 30, 2025, declined 1.4% year-over-year, impacted by increased operating expenses[17]. - CBL's updated FFO guidance for 2025 is projected between $6.98 and $7.34 per share, reflecting the impact of recent acquisitions and asset sales[32]. - Same-center NOI for full-year 2025 is expected to range from (2.0)% to 0.5%[32]. - Total revenues for Q2 2025 reached $140,905, a 8.5% increase from $129,665 in Q2 2024[51]. - Rental revenues increased to $136,453 in Q2 2025, up 9.4% from $124,071 in Q2 2024[51]. - Net income attributable to common shareholders was $2,567 for Q2 2025, a decrease of 42.5% compared to $4,484 in Q2 2024[51]. - FFO (Funds From Operations) allocable to Operating Partnership common unitholders was $45,455 for Q2 2025, down 3.6% from $47,155 in Q2 2024[53]. - Basic earnings per share for Q2 2025 was $0.08, compared to $0.14 in Q2 2024, reflecting a 42.9% decline[51]. Occupancy and Leasing - Portfolio occupancy increased to 88.8% as of June 30, 2025, compared to 88.7% in the prior year, despite bankruptcy-related closures impacting occupancy[8]. - Over 1.2 million square feet of leases were executed in Q2 2025, with new comparable leases signed at a 39% increase in average rents[14]. - Same-center tenant sales per square foot increased by 3.5% in Q2 2025, with total sales per square foot for the trailing twelve months at $427, up 0.8%[14]. - New leases for the six months ended June 30, 2025, totaled 323,605 square feet, while renewal leases amounted to 1,464,519 square feet[4]. Debt and Interest Expenses - CBL closed a $78.0 million non-recourse loan at a fixed interest rate of 6.856%, improving from a previous rate of 8.19%[22]. - The existing loan was modified to $443.0 million, extending maturity to October 2030 with a fixed interest rate of 7.70% for the initial term[28]. - The company's share of consolidated debt as of June 30, 2025, was $2,238,460,000, with a weighted-average interest rate of 5.93%[63]. - Interest expense rose to $43,959 in Q2 2025, compared to $39,407 in Q2 2024, marking an increase of 13.0%[51]. - The total debt as of June 30, 2025, is $2,238,462, with a weighted average interest rate of 5.93%[8]. Cash Flow and Capital Expenditures - Cash flows provided by operating activities for the first half of 2025 were $99.9 million, compared to $95.0 million in the same period of 2024, indicating a 5% increase[75]. - Total capital expenditures for the six months ended June 30, 2025, were $24.781 million, compared to $17.816 million for the same period in 2024, reflecting a 39.0% increase[129]. - Cash and cash equivalents increased to $100,325,000 as of June 30, 2025, compared to $40,791,000 at the end of 2024, reflecting a 146.5% increase[67]. Shareholder Returns - CBL's Board declared a 12.5% increase in the quarterly cash dividend to $0.45 per share, equating to an annualized rate of $1.80[21]. Future Outlook - The company anticipates higher variable interest expenses due to fewer expected Fed rate cuts[32]. - The estimated maintenance capital and tenant allowances for 2025 are projected between $40.0 million and $55.0 million[37]. - The company plans to continue focusing on enhancing its asset portfolio through strategic redevelopment and potential acquisitions in the upcoming quarters[101][104].