CBL & Associates Properties, Inc. (NYSE:CBL) announced results for the third quarter ended Sept. 30, including a rise in net income.
FFO allocable to common shareholders, as adjusted, for the third quarter 2014 was $93 million, or $0.55 per diluted share, compared with $87.3 million, or $0.52 per diluted share, for the third quarter 2013. FFO of the operating partnership, as adjusted, for the third quarter 2014 was $109.1 million compared with $102.5 million, for the third quarter 2013. The increase in adjusted FFO during the quarter was driven by contributions from recent openings of new development projects, increased rental rates on new and renewal leases and lower operating expenses. These improvements were partially offset by lost income from sold properties and higher net interest expense.
Net income attributable to common shareholders for the third quarter 2014 was $38.1 million, or $0.22 per diluted share, compared with net income of $23.1 million, or $0.14 per diluted share, for the third quarter 2013.
CBL’s President and Chief Executive Officer Stephen Lebovitz commented, “We are pleased with the acceleration of our same-center NOI growth and lease spread results in the third quarter. Year-to-date same-center NOI growth is above the top end of our guidance range providing further confirmation of our operating expertise. Our focus on upgrading the quality of our tenant merchandising mix and redeveloping under-performing locations has directly contributed to our improved growth rate across the portfolio.
“We are also making progress upgrading our balance sheet and lowering our cost of capital. This month we executed a 10-year, $300 million offering of senior unsecured notes at an attractive 4.6% coupon and added Mall del Norte, one of our highest productivity assets, to our unencumbered pool. Recent progress on our dispositions includes the completion of a community center sale. We will also execute a non-binding contract for the sale of an additional community center this week. CBL remains fully committed to successfully executing our strategic transformation within the two-to-three year time horizon we have established.”