CBL & Associates Properties said today that funds from operations rose 1.8 percent to $98.1 million, or 57 cents per share, in the third quarter, as the Chattanooga-based shopping center operator continued to streamline its retail portfolio.
CBL reported a loss of $10.2 million, or 6 cents per share, in the third quarter, compared with a $26.3 million, or 15 cents per share, profit a year ago. The loss reflects a $53.6 million charge for impairment of properties the company plans to dispose of before the end of their useful life.
Despite the quarterly loss, CBL President Stephen Lebovitz said same store sales at CBL malls continued to grow this summer and the company’s revenues of $251.7 million, although down 4.2 percent from a year ago, were better than analysts’ forecasts.
CBL said it closed on the sale of two malls in the third quarter and entered into an agreement to sell another.
“Our strong third quarter results and outstanding operating performance year-to-date is further evidence that our portfolio transformation strategy is working,” Lebovitz said. “We have made tremendous progress on our disposition program this year with 17 mall transactions completed or in process.”
CBL said same-center mall occupancy increased to 92.7 percent as of Sept. 30, up from an occupancy of 91.8 percent a year earlier.
Stabilized Mall leases were signed at an average increase of 10.2 percent over the expiring gross rent per square foot, CBL said.
“Based on results year-to-date and its current outlook, the company anticipates achieving 2016 FFO, as adjusted, near the high-end of its guidance range of $2.36 to $2.40 per diluted share,” CBL said in an earnings announcement after the market closed Thursday. “CBL also anticipates achieving same-center NOI (net operating income) growth near the high-end of its guidance range of 1.5 percent to 2.5 percent in 2016.”
CBL is the nation’s fourth largest shopping mall real estate investment trust with more than 130 properties under its ownership or management, including Hamilton Place Mall in East Brainerd, Northgate Mall in Hixson and Walnut Square Mall in Dalton, Ga.