CBL Properties announced results for the fourth quarter and year ended Dec. 31. Results of operations as reported in the consolidated financial statements for these periods are prepared in accordance with GAAP. A description of each supplemental non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is located at the end of this news release.
KEY TAKEAWAYS:
In January, CBL closed on the sale of Monroeville Mall in Monroeville, Pa., for $34.0 million, all cash.
In December 2024, CBL closed on the acquisition of its partner’s 50 percent joint venture interests in three high-performing centers, CoolSprings Galleria in Nashville, Oak Park Mall in Kansas City, Ks., and West County Center in St. Louis, Mo. The interests were acquired for a total cash consideration of $22.5 million. CBL also assumed its former partner's share of three non-recourse loans, secured individually by each of the assets, totaling $266.7 million.
Same-center NOI for 2024 increased 0.2 percent compared with the prior-year period, and FFO, as adjusted, per share increased to $6.69, compared with $6.66 for the prior-year period. CBL reported a decline in same-center NOI of 1.6 percent for the fourth quarter 2024 compared with the prior-year period, and FFO, as adjusted, per share of $1.92, compared with $1.94 for fourth quarter 2023. Results were in-line with the previously issued guidance range for 2024.
Nearly 4.5 million square feet of leases were executed in 2024, including nearly 1.4 million executed in the fourth quarter. Fourth quarter 2024 leasing results included comparable leases of approximately 859,000 square feet signed at roughly flat average rents versus the prior leases.
Portfolio occupancy was 90.3 percent as of Dec. 31, a 100-basis-point-increase sequentially from Sept. 30, and a 60-bps decline compared with portfolio occupancy of 90.9 percent as of Dec. 31, 2023. Same-center occupancy for malls, lifestyle centers and outlet centers was 88.7 percent as of Dec. 31, a 110-basis-point decline from 89.8 percent as of Dec. 31, 2023. Anticipated bankruptcy related store closures representing over 290,000-square-feet negatively impacted mall occupancy by 184 basis points, compared with the prior-year quarter.
Same-center tenant sales per square foot for the fourth quarter 2024 increased approximately 1 percent as compared with the prior-year period. Same-center tenant sales per square foot for the 12-months ended Dec. 31, of $418, were flat compared with the prior period.
As of Dec. 31, the company had $283.9 million of unrestricted cash and marketable securities.
CBL's Board of Directors declared a regular cash dividend of $0.40 per common share for the quarter ending March 31, 2025, and a special cash dividend of $0.80 per common share.
"Twenty twenty-four was an outstanding year for CBL," said CBL's chief executive officer, Stephen D. Lebovitz. "Financial results were strong, highlighted by the achievement of positive same-center NOI growth. We also completed significant financing and transactional activity that strengthened both our balance sheet and portfolio. Same-center NOI growth for the year benefited from overall positive rent spreads and new leasing activity as well as lower operating expenses and tax savings, partially offset by an unfavorable variance in uncollectable revenues and declines in percentage rent.
"Leasing volumes were healthy in 2024, with 1.4 million square feet of new and renewal leases signed in the fourth quarter, bringing the full year total to nearly 4.5 million square feet. Comparable shop leases were signed at positive lease spreads of 5.8 percent for both new and renewal leases. We added exciting new brands and restaurants to our properties, signing new deals in the fourth quarter with Kendra Scott, J. Crew Factory, Barnes & Noble, Drybar, and Cooper's Hawk Winery & Restaurant. Our leasing efforts through the year resulted in a 100 bps increase in occupancy sequentially and a narrowing of the decline from the prior-year period to 60 basis points. We are focused on making additional progress in occupancy in 2025. Sales improved over the course of the year with the holiday sales season driving a 1 percent increase in the fourth quarter.
"In 2024, we were active on the transaction front, generating $85 million in proceeds from asset sales. In late December, we were excited to complete the acquisition of our joint venture partner's interest in three of our top properties, which paves the way to unlock future value creation opportunities. We are pursuing numerous growth opportunities at these high-performing properties and will now benefit 100 percent from the results of these efforts.
"We made tremendous improvements to our balance sheet during the fourth quarter with more than $500 million in financing activity completed. In concert with the acquisition noted above, we completed the extension of the non-recourse loans secured by West County Center, (to December 2026, at the existing interest rate) and Oak Park Mall, (to October 2030, at a 5 percent fixed interest rate). We also closed on two favorable new non-recourse loans secured by our open-air center in Melbourne, Fl. and our outlet center in Louisville, Ky.
"With more than $37 million in share repurchase activity completed, we are actively pursuing opportunities to return capital to shareholders. We increased our regular dividend rate at the start of 2024, and now our Board has approved our regular quarterly dividend as well as a significant special dividend totaling $1.20 per share, to be paid in all cash.
"While uncertainty and certain headwinds remain a factor in 2025, we are focused on driving additional operational improvements across our portfolio through strategic leasing and redevelopment efforts. We will continue to pursue opportunities to utilize our portfolio and strong balance sheet position to generate cash flow improvements and enhanced shareholder returns. We are excited to hit the ground running this year and build off the strong momentum created in 2024."
DIVIDEND
On Feb. 12, CBL announced that its Board of Directors declared a regular cash dividend of $0.40 per common share for the quarter ending March 31. The dividend, which equates to an annual dividend payment of $1.60 per common share, is payable on March 31, to shareholders of record as of March 13.
CBL’s Board of Directors also declared a special cash dividend of $0.80 per common share. The special dividend is required to remain in compliance with U.S. federal income tax rules for real estate investment trusts (“REITs”). The special dividend is payable on March 31 to shareholders of record as of March 13.
FINANCING ACTIVITY
During the fourth quarter 2024, CBL completed approximately $513.7 million in financing activity.
In December, CBL completed the extension of the $251.4 million non-recourse loan secured by Oak Park Mall in Kansas City, Ks. The maturity was extended to October 2030. The fixed interest rate will increase to 5 percent beginning in October. CBL also exercised a two-year extension of the $144.7 million loan secured by West County Center in St. Louis, Mo. The maturity was extended to December 2026. CBL closed on an extension of the $6.6 million loan ($3.3 million at CBL's share) secured by Coastal Grand-Dick's Sporting Goods in Myrtle Beach, S.C. The loan now matures in November 2025, with an option to extend the maturity to May 2026.
In November, CBL and its 50 percent joint venture partner took advantage of improved financing terms and closed on new non-recourse ten-year loans totaling $45.0 million, secured by Hammock Landing in West Melbourne, Fl. The loans bear a fixed interest rate of 5.86 percent and replace two existing partially guaranteed loans totaling $44.5 million, which bore a floating interest rate (8.2% as of Sept. 30, 2024). The loans had a maturity of February.
In October, CBL and its joint venture partner closed on a new $66.0 million loan secured by The Outlet Shoppes of the Bluegrass. The new non-recourse loan bears a fixed interest rate of 6.84 percent and matures in November 2034. Proceeds were used to retire the $61.6 million existing loan that was set to mature in December.
CBL and its 50 percent joint venture partner are continuing discussions, which began in August, with the lender regarding a loan modification/extension of the $98.8 million in loans secured by Coastal Grand Mall and Coastal Grand Crossing in Myrtle Beach, S.C.
In July 2024, CBL and its 50 percent joint venture partner closed on a new $14.5 million five-year loan secured by the Aloft Hotel at Hamilton Place in Chattanooga. The loan bears a fixed interest rate of 7.2 percent and is non-recourse to CBL and replaced the existing $16.0 million loan that was set to mature in November.
In May, CBL transferred the title to Westgate Mall in Spartanburg, SC, to the mortgage holder in satisfaction of the $28.7 million non-recourse loan secured by the property.
In February, CBL retired the $15.3 million recourse loan secured by Brookfield Square Anchor Redevelopment in Brookfield, Wi.
CBL is cooperating with the foreclosure or conveyance of Alamance Crossing East in Burlington, NC, ($41.1 million).
ACQUISITION ACTIVITY
In December, CBL closed on the acquisition of its partner’s 50 percent joint venture interests in three high-performing centers, CoolSprings Galleria in Nashville, Oak Park Mall in Kansas City, Ks., and West County Center in St. Louis, Mo. The interests were acquired for a total cash consideration of $22.5 million. CBL also assumed its former partner's share of three non-recourse loans, secured individually by each of the assets, totaling $266.7 million.
DISPOSITION ACTIVITY
In January 2025, CBL completed the sale of Monroeville Mall and Annex in Monroeville PA, for $34.0 million.
In 2024, CBL completed more than $85.0 million in disposition activity, at CBL's share. Major transactions included the sale of Layton Hills Mall in Layton, UT, in August for $37.125 million. In September, CBL closed on the sale of Layton Hills Convenience Center, Layton Hills Plaza and nine related outparcels in Layton (Salt Lake City), UT, to an unaffiliated third party for $28.5 million, all cash.
During the fourth quarter, CBL completed the sale of three outparcels, generating aggregate proceeds at its share of $10.8 million.
DEVELOPMENT AND REDEVELOPMENT ACTIVITY
Detailed project information is available in CBL’s Financial Supplement for Q4 2024, which can be found in the Invest – Financial Reports section of CBL’s website at cblproperties.com
OUTLOOK AND GUIDANCE
Based on Management's expectations, CBL is initiating FFO, as adjusted, guidance for 2025 in the range of $6.98 - $7.34 per share. Management anticipates same-center NOI for full-year 2025 in the range of (2.0) percent to 0.5 percent.