CBL & Associates Properties(US:CBL)2025-11-07 20:04Financial 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].