CBL & Associates Properties (CBL) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $4.3 million, reversing a loss of $22.7 million in Q2 2023; net income attributable to common shareholders was $4.5 million, or $0.14 per share, compared to a loss of $21.1 million, or $(0.67) per share, in Q2 2023.

• FFO, as adjusted, per share rose to $1.73 from $1.56 year-over-year.

• Same-center NOI increased 1.5% for Q2 2024 and 2.6% for the first half of 2024 compared to the prior year, driven by lower operating expenses.

• Over 1 million square feet of leases executed in Q2 2024, with an 8.8% increase in average rents for comparable leases.

• Portfolio occupancy declined to 88.7% from 89.8% year-over-year, mainly due to bankruptcy-related store closures.

Financial highlights

• Total revenues for Q2 2024 were $158.97 million, nearly flat year-over-year; total expenses decreased to $50.71 million from $52.33 million.

• FFO, as adjusted, for Q2 2024 was $54.0 million ($1.73 per diluted share), up from $50.1 million ($1.56 per share) in Q2 2023.

• Same-center tenant sales per square foot for the trailing twelve months ended June 30, 2024, declined 2.1% to $417.

• Unrestricted cash and marketable securities totaled $295.8 million as of June 30, 2024.

• Cash, cash equivalents, and restricted cash totaled $141.2 million at June 30, 2024.

Outlook and guidance

• Management reiterates full-year 2024 FFO, as adjusted, guidance of $6.28–$6.72 per share and same-center NOI change in the range of (1.2)% to 1.4%.

• Guidance reflects the impact of the Layton Hills Mall sale and year-to-date share repurchases.

• Focus remains on improving occupancy, driving rent growth, and diversifying tenant mix.

• Strategies include reducing overall debt, extending debt maturities, and enhancing net cash flow.

• The company expects continued stabilization of portfolio and revenues through these initiatives.