Shopping center developer CBL & Associates Properties Inc. on Thursday reported lower second quarter earnings on the sale of assets and abandoned project expenses.
The Chattanooga company reported funds from operations of 50 cents per diluted share, as adjusted, in the quarter. That's down from 59 cents in the same period a year ago.
However, CBL reported net income of 18 cents per diluted share, beating the consensus analyst estimate of 12 cents.
CBL Chief Executive Stephen Lebovitz said the second- quarter results were in line with expectations taking into account "the difficult retail environment." Still, Lebovitz termed the results "disappointing."
"Our priority through the remainder of the year is maintaining and improving occupancy and income as we focus on reinventing our market dominant properties," he said in a statement.
Lebovitz said CBL is bringing into its array of properties more productive uses that appeal to today's consumer preferences and drive increased traffic and sales.
"This quarter, we made the decision to write off several potential new development projects so that we can concentrate on our program of anchor store redevelopments and the reinvention of our properties," he said.
CBL has sold two malls, an outlet center and two office buildings so far this year, generating net proceeds of about $100 million. In August, CBL entered into a binding contract for the sale of its remaining 25 percent interest in River Ridge Mall to its joint venture partner for $9 million.
CBL maintained its previously issued 2017 FFO, as adjusted, guidance in the range of $2.18 to $2.24 per diluted share.
The company owns, holds interests in or manages 121 properties, including 78 regional malls and open-air centers in 27 states, including Hamilton Place and Northgate malls in Chattanooga.