Also Read
Hamilton Place mall continues upgrades; adding new restaurants and stores
Despite a dip in fourth quarter funds from operations, CBL & Associates Properties boosted income and occupancy at its shopping malls last year and said Wednesday it expects this year to be "a year of reinvention" as it continues to transform its retail properties.
The Chattanooga-based mall developer said operating income in the fourth quarter declined by 4.2 percent from a year ago to 68 cents per share. But the results were still slightly ahead of analysts' forecasts and for all of 2016, CBL's funds from operations were up 3.9 percent to $2.41 per share.
CBL President Stephen Lebovitz called 2016 "an excellent year," although analysts had forecast slightly better revenue for the final quarter of the year. Lebovitz said operating income was up 2.3 percent and occupancy improved an average 1.2 percentage points last year.
"The progress we've made on our disposition program and focus on reducing debt has resulted in a balance sheet that is stronger and more flexible than ever," he said.
CBL is on pace to dispose of 21 of the shopping malls it owned in 2014 when it began an effort to focus on its more promising retail properties. Among the malls CBL sold last year was Walnut Square Mall in Dalton, Ga.
CBL continues to own or manage 144 properties and earlier this week announced an agreement to pay $72.5 million to acquire five Sears department stores and two Sears auto centers, including Sears properties at the Hamilton Place and Northgate malls that CBL owns in Chattanooga.
CBL said its average gross rent per square foot increased 11.5 percent for stabilized mall leases signed in the fourth quarter of 2016 and new leases for all of its properties were up 7.6 percent in 2016.
Lebovitz said 2017 "represents a year of reinvention for the CBL portfolio as we embark on a number of transformational redevelopment projects at some of our best assets." The CBL CEO said the company is preparing to "transform our properties to meet changing consumer preferences and attract high-quality in-demand uses."
CBL's net income in the fourth quarter totaled $57.6 million, or 34 cents per share, compared with a net loss of $33.5 million, or 20 cents per share, in the fourth quarter of 2015.
Net income for all of 2016 totaled $128 million, or 75 cents per share, compared with net income of $58.5 million, or 34 cents per share, in 2015.
Contact Dave Flessner at dflessner@timesfreepress.com or 423-757-6340.