CBL Properties Inc. cut its dividend Thursday for the first time in nearly a decade and revised downward its outlook for the rest of 2017 after third quarter results fell short of expectations.
The Chattanooga-based shopping center and property management company said mall occupancy and net operating income from its centers were down in the summer quarter from a year ago because of an unusual number of retail bankruptcies and the ongoing shift of buyers from brick-and-mortar stores to online purchasing.
CBL’s funds from operations in the third quarter totaled $84.7 million, or 50 cents per share, compared with $98.1 million, or 57 cents per share, a year ago.
Income fell 4 cents short of analysts expectations and CBL said it expects funds from operations in the fourth quarter to be about 10 cents per share less than previous guidance, or between $2.08 and $2.12 per share.
In response to the tougher retail market, CBL is trying to reposition more of its shopping centers as suburban town centers with more entertainment and restaurants.