CBL Properties said it has regained full compliance with the continued listing requirements of the New York Stock Exchange after the company's stock stayed above the $1 per share threshold price for the past 30 days.
The announcement today helped boost CBL shares by 2.6%, or 3 cents per share, to close at $1.30 per share in an otherwise down market on Wall Street.
The Chattanooga-based CBL Properties owns or manages 108 properties, including the Hamilton Place and Northgate malls in Chattanooga. CBL's portfolio totals 8.2 million square feet across 26 states.
In August when CBL's stock dropped to as low as 80 cents per share, the Chattanooga-based shopping center company announced it would take steps to ensure its common stock remained listed on the NYSE big board, including the possibility of making a reverse stock split to boost share prices. But CBL shares jumped in late August when Exeter Capital announced that it had taken a 6% take in the company and said in a Securities and Exchange Commission filing that CBL's stock was "undervalued and represents an attractive investment opportunity."
In its filing, the equity firm indicated that its managers "anticipate having discussions with management and the board" concerning what Exeter said were "under performance, overall business strategy and board composition" and governance.
As a Real Estate Investment Trust, or REIT, tax regulations make it hard to launch a hostile takeover of companies like CBL. But Exeter could push for changes at CBL and its investment underscored the value of the company to many investors.
Shares of CBL, like many retail developers, have been battered by investor concerns over the rise in retail bankruptcies and mall vacancy rates and the drop in some property rental rates.
From its peak of $48.93 per share in 2007 before the Great Recession, CBL shares have lost more than 95% of their market value.
Shares of CBL more than doubled from their August low price to reach as high as $1.69 per share on Sept. 11 before trading up and down through the next four weeks. Despite the volatility last month, CBL shares stayed above the $1 threshold throughout September.
Contact Dave Flessner at dflessner@timesfreepress.com or at 757-6340.