CBL & Associates Properties Inc. on Tuesday reported improved fourth quarter earnings, citing high lease spreads and mall occupancy.
Funds from operations per share, as adjusted, grew 6.3 percent to 67 cents in the quarter, the Chattanooga-based mall and shopping center developer reported. That beat the consensus analysts’ estimate of 66 cents per share.
For the year, FFO per share rose 2.7 percent to $2.28, the company reported after the close of the markets.
Net income in the quarter was $65.3 million, or 38 cents per share, compared with a net loss of $2.4 million, or 1 cent per share a year ago.
Net income for 2014 was $174.3 million, or $1.02 per share, compared with $40.3 million, or 24 cents per share for 2013.
Same-center net operating income increased 2.9 percent in the quarter and 2.4 percent for the year, according to CBL.
“We are not resting on these significant accomplishments with goals for 2015 of sustaining our momentum, investing to grow our core portfolio and disposing of non-core and mature properties,” said Stephen Lebovitz, CBL’s chief executive, in a statement.
He said CBL is making positive headway on its disposition program, with a number of transactions in various stages, including a newly executed contract on Triangle Town Center in Raleigh, N.C.
“While we are cautious not to make preliminary announcements, the level of disposition activity we are involved in is encouraging and we look forward to communicating additional progress,” Lebovitz said.
Early last year, CBL officials said the company plans to sell off 21 of its malls, or about a quarter of its nationwide holdings, to boost income and upgrade remaining properties.
Lebovitz said then that CBL is to divest the properties within the 24 to 36 months. He didn’t identify the centers, but neither Hamilton Place mall nor Northgate Mall locally are on the list.
For 2015, CBL offered FFO guidance in the range of $2.24 to $2.31 per share. CBL is assuming same-center net operating income growth of between 0 percent and 2 percent in 2015.
The low end of the guidance range for FFO and income includes a provision of $10 million for lost income from bankruptcies and store closures as a result of increased retailer bankruptcy announcements to date.
CBL’s shares on the New York Stock Exchange closed Tuesday at $20.86, up 36 cents, or 1.76 percent.
Contact Mike Pare at mpare@timesfreepress.com or at 757-6318.