Core Viewpoint - CBL & Associates Properties, Inc. has shown resilience in its stock performance despite a decline in net income and some operational challenges, with strategic acquisitions and leasing activities positioning the company for future growth. Financial Performance - In Q2 2025, net income attributable to common shareholders was $0.08 per share, a decrease of 42.9% from $0.14 a year ago [2] - Funds from Operations (FFO) were $1.48 per diluted share, down 1.9% from $1.51 in the prior-year quarter, while adjusted FFO rose 7.5% to $1.86 from $1.73 [2] Revenue and Income Metrics - Same-center total revenues increased by 1.7% to $156 million from $153.4 million, but same-center Net Operating Income (NOI) decreased by 0.5% year over year to $104.9 million from $105.4 million [3] - Same-center NOI from malls fell by 0.6%, outlet centers dropped by 5.2%, and open-air centers declined by 2%, while lifestyle centers saw a 7.2% increase [3] Occupancy and Leasing - Portfolio occupancy rose by 10 basis points year over year to 88.8% as of June 30, 2025 [4] - CBL executed over 1.2 million square feet of leases during the quarter, with new and renewal leases averaging a 3.2% rent increase [5] Management Commentary - CEO Stephen D. Lebovitz highlighted the acquisition of four malls for $178.9 million as a key part of the portfolio optimization strategy [6] - The acquisition is expected to enhance cash flow per share and support a 12.5% dividend increase [7] Operational Challenges - The decline in same-center NOI was mainly due to higher operating expenses and the impact of bankruptcy-related store closures, which affected mall occupancy by nearly 70 basis points [8] - Operating expenses increased by $3.2 million due to higher real estate taxes [9] Guidance and Future Outlook - CBL updated its 2025 FFO, as adjusted, guidance to a range of $6.98–$7.34 per share [10] - Management reaffirmed its same-center NOI growth outlook for the full year to be between a 2% decline and a 0.5% increase [11] Other Developments - CBL has closed on dispositions totaling over $162.7 million year to date, including significant sales of various properties [12] - Financing activities included a new $78 million non-recourse loan, which reduced the interest rate significantly compared to the prior loan [13]