CBL Properties on Thursday reported that fourth quarter and 12-month earnings were higher than a year ago as its properties showed improvement across its key indicators despite ongoing challenges from the pandemic.
In the quarter ending Dec. 31, 2021, funds from operations were $106.3 million compared with $75.3 million in the same period in 2020.
Funds from operations for the year were $349.8 million versus $140.8 million in 2020, the Chattanooga-based shopping center company reported.
Stephen D. Lebovitz, CBL’s chief executive officer, said 2021 was a transformational year for the company that owns both Hamilton Place and Northgate malls in Chattanooga.
“We emerged from our restructuring with a strong balance sheet and a renewed focus to capitalize on the substantial opportunities ahead for CBL,” he said in a statement, adding that last year was one of “outstanding financial performance for CBL.”
Lebovitz said that results for the fourth quarter built on positive trends the company experienced throughout the year.
“Higher traffic and sales drove substantial increases in percentage and short-term rents,” he said. “Occupancy showed sequential and year-over-year improvement, reflecting strong underlying trends for our retailers.”
The company CEO said that more than 3 million square feet of new and renewal leases were signed, demonstrating continued and growing interest in its properties.
“Despite inflationary pressures and increased operating hours, we effectively mitigated increases in overall operating expenses,” he said. “I am grateful to the entire CBL team for their hard work, focus and execution of our strategic priorities.”
Lebovitz said that following CBL’s emergence from bankruptcy, the company has further improved its balance sheet, reducing debt by more than $200 million in a few months.
“We have made solid progress on additional balance sheet initiatives, which will lower interest expense and increase our capital structure flexibility,” he said. “We are highly confident in the future stability of our portfolio of nearly 45 open-air, lifestyle and outlet and other properties in addition to more than 40 market-dominant malls and see substantial opportunities ahead for CBL.”
CBL reported a net loss attributable to common shareholders for the quarter of $544.8 million compared with net loss of $63 million for the prior quarter a year earlier.
Net loss attributable to common shareholders for the 12 months was $622.2 million compared with net loss of $332.5 million, in the prior year.
CBL guidance for 2022 funds from operations, as adjusted, is in the range of $216.5 million to $231.8 million or $7 to $7.50 per diluted share, which assumes same-center net operating income in the range of $400 million to $413 million, the company said after the market’s close.
CBL’s stock closed Thursday on the New York Stock Exchange at $32.89, up 14 cents, or 0.43%.
– Compiled by Mike Pare