CBL & Associates Properties (CBL) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $15.9 million ($0.52 per share), up from $13.0 million ($0.41 per share) in Q3 2023; nine-month net income was $20.1 million ($0.65 per share), reversing a prior year loss.

• Portfolio occupancy was 89.3% as of 09/30/24, up 60 bps sequentially but down 150 bps year-over-year; open-air centers at 95.4%.

• Over 880,000 square feet of leases executed in Q3 2024, with a 9.5% increase in average rents for comparable leases.

• The company continues to focus on improving occupancy, diversifying tenant mix, reducing debt, and selective investment in redevelopment and acquisitions.

• Tenant sales per square foot were essentially flat year-to-date, with back-to-school and holiday seasons expected to drive growth.

Financial highlights

• Q3 2024 total revenues were $125.1 million, down from $129.4 million in Q3 2023; nine-month revenues were $383.9 million, down from $395.6 million.

• FFO, as adjusted, was $1.54 per share for Q3 2024 (down from $1.60); nine-month FFO, as adjusted, was $4.77 per share (up from $4.72).

• Equity market capitalization was ~$780M and total pro rata share of debt at $2.44B as of 09/30/24.

• Cash, cash equivalents, and U.S. Treasury securities totaled $307M at quarter-end; pro forma cash per share at $9.58.

• Annualized dividend of $1.60 per share; $50M in regular dividends and $37M in stock repurchases since August 2023.

Outlook and guidance

• Full-year 2024 FFO, as adjusted, per share guidance midpoint is $6.57; guidance range is $6.34–$6.80.

• Full-year same-center NOI expected to range from (1.2)% to 1.4%.

• Illustrative NAV per share estimated at $46.23, reflecting a significant discount to current share price.

• Ongoing focus on disciplined capital spending, tenant diversification, and managing debt maturities.