CBL & Associates Properties boosted its funds from operations by 1.8 percent in the third quarter to $98.1 million, or 57 cents per share, as the Chattanooga-based shopping center operator continued to streamline its retail portfolio.
CBL said Thursday it lost $10.2 million, or 6 cents per share, in the third quarter, compared with a profit of $26.3 million, or 15 cents per share, a year ago. The loss reflects a $53.6 million charge for impairment of properties the company plans to dispose of before the end of their useful life.
Despite the quarterly loss, CBL President Stephen Lebovitz said same store sales at CBL malls continued to grow this summer and the company's revenues of $251.7 million, although down 4.2 percent from a year ago, were better than analysts' forecasts.
Funds from operations (FFO) were in line with analysts forecast for the quarter, and CBL said it expects for all of 2016 to report operating income near its high-end of previous guidance, or $2.36 to $2.40 per share for FFO.
CBL said it closed on the sale of two malls in the third quarter and entered into an agreement to sell another.
"Our strong third quarter results and outstanding operating performance year-to-date is further evidence that our portfolio transformation strategy is working," Lebovitz said. "We have made tremendous progress on our disposition program this year with 17 mall transactions completed or in process."
CBL said same-center mall occupancy increased to 92.7 percent as of Sept. 30, up from an occupancy of 91.8 percent a year earlier. The company said it anticipates growing its net operating income for the centers it is keeping by 1.5 to 2.5 percent this year.
Stabilized mall leases were signed at an average increase of 10.2 percent over the expiring gross rent per square foot, CBL said.
CBL is the nation's fourth largest shopping mall real estate investment trust with more than 130 properties under its ownership or management, including Hamilton Place mall in East Brainerd, Northgate Mall in Hixson and Walnut Square Mall in Dalton, Ga.
The company's shares have declined 9.5 percent since the beginning of the year. In the final minutes of trading on Thursday, shares hit $11.20, a decline of 26 percent in the last 12 months.