CBL & Associates Properties said all of its retail centers are open for business and fully operational, but the company reported Tuesday that net operating income from its shopping malls and other properties fell by more than 30% in the third quarter compared with a year ago due to lower sales volumes, store closings and retailer delays in payments.
The Chattanooga- based shopping center development firm, which filed for bankruptcy earlier this month to reorganize its finances under court protection in a Chapter 11 proceeding, said its funds from operations in the third quarter, as adjusted, fell to 4 cents per share compared with 34 cents a share a year ago. CBL’s revenues dropped by more than 30% from $187.3 million in the third quarter of 2019 to $129.9 million in the third quarter of 2020.
CBL and other real estate developers have been hurt by uncollectable revenue from tenants not paying rent or reducing payments due to the COVID-19 pandemic. CBL’s total portfolio occupancy fell to 86.3% as of Sept. 30, 2020, down from a 90.5% occupancy rate a year ago.
The foreclosure of CBL’s Hickory Point Mall in Forsyth, Illinois, was completed in the third quarter and in October, the Burnsville Center in Minneapolis was placed into receivership. CBL said it also expects foreclosures or conveyance proceedings at the Park Plaza in Little Rock, Arkansas, the EastGate Mall in Cincinnati, Ohio, and the Asheville mall in Asheville, North Carolina.
CBL reported a net loss in the third quarter of $54.1 million, or 28 cents per share, compared with a net loss of $90.1 million, or 52 cents per share, for the third quarter 2019.