Improved occupancy at CBL Properties’ malls helped fuel second-quarter results for the Chattanooga-based shopping center operator, the company reported Monday.
Increases in occupancy across the company’s portfolio contributed to an increase in total same-center net operating income (NOI) of 1.6% for the three months and 6.7% for the six months ended June 30, 2022, compared with the prior-year periods, according to CBL.
Funds from operations, as adjusted, allocable to operating partnership common unit-holders for the second quarter was $59.9 million compared with $79.5 million in the prior-year period, CBL reported after the close of the stock markets.
The decline in FFO reflected increases in interest expense this year compared with a year ago when such payments were not required as a result of the CBL’s bankruptcy filing in November, 2020. CBL emerged from its bankruptcy reorganization in November 2021.
Stephen D. Lebovitz, CBL’s chief executive officer, said in a statement that the company, “delivered another set of impressive operating results in the second quarter.”
“Our resilient portfolio generated improved lease spreads and significant sequential and year-over-year occupancy growth, contributing to the stability of our NOI,” he said.
Lebovitz said CBL is enhancing its strong free cash flow through the recent completion of redevelopment projects, with more planned completions and new project starts anticipated in the coming months.
“We are seeing ongoing interest across our portfolio from hotels, multi-family, medical, entertainment, restaurants and other new uses, which will further enhance our properties and diversify our revenue stream,” he said.
Same-center sales per square foot for the trailing 12 months ended June 30 increased 6.2% to $443 as compared with $417 for the trailing 12 months (excluding 2020) ended June 30, 2021, the company reported. Same-center sales per square foot for the second quarter 2022 declined 3.9% as compared with the second quarter 2021.
Net loss attributable to common shareholders for the three months ended June 30 was $41.6 million, compared with a net loss of $8.9 million for the three months ended June 30, 2021, according to CBL.
CBL’s board of directors declared a 25 cent per share cash dividend for the second and third quarters of 2022.
Lebovitz said that a major highlight of the quarter was CBL’s financing accomplishments.
“Despite increased volatility in interest rates and other macroeconomic factors, we successfully closed more than $663 million in financings during the quarter,” he said.
In his hometown of Chattanooga, CBL operates Hamilton Place and Northgate malls.
CBL’s stock closed Monday on the New York Stock Exchange at $32 per share, up 5 cents, or 0.16%.
– Compiled by Mike Pare