CBL Properties on Thursday reported lower adjusted funds from operations in the third quarter compared to a year ago, though same-center net operating income and occupancy gained.
Adjusted funds from operations was $1.60 per share in the third quarter compared to $1.85 per share in the same period a year ago, the Chattanooga-based operator of Hamilton Place and Northgate malls reported after the close of the stock markets.
Same-center net operating income increased 0.4% during the third quarter 2023 as compared with the same quarter in 2022, the company said.
Portfolio occupancy increased to 90.8% as of Sept. 30 compared to 90.5% as of Sept. 30, 2022, according to CBL. Same-center occupancy for malls, lifestyle centers and outlet centers was 89.7% as of Sept. 30, 2023, up from 89.1% as of Sept. 30, 2022, CBL said.
“We maintained a high volume of leasing in the third quarter and new lease spreads were well into positive territory, increasing more than 25%,” said CBL Chief Executive Stephen Lebovitz in a statement. “While renewal spreads were negative for the quarter, this was driven by a subset of portfolio renewal packages with certain underperforming tenants. The combination of rising occupancy and strong leasing demand positions us to more readily replace underperforming tenants going forward.”