CBL Properties announced results for the first quarter ended March 31. During Q1 2025, CBL closed on dispositions representing more than $73.3 million of gross proceeds at CBL's share, including the $34.0 million sale of Monroeville Mall in Monroeville, Pa., and the $38.1 million sale of Imperial Valley Mall in El Centro, Ca.
Consistent with its previously issued guidance range, same-center NOI for Q1 2025 declined 2.3 percent compared with the prior-year period, and FFO, as adjusted, per share was $1.50, flat with the prior-year period.
Portfolio occupancy was 90.4 percent as of March 31, a 100-basis-point-increase compared with portfolio occupancy of 89.4 percent as of March 31, 2024. Same-center occupancy for malls, lifestyle centers and outlet centers was 88.7 percent as of March 31, a 40-basis-point increase from 88.3 percent as of March 31, 2024. Bankruptcy related store closures, including the anticipated first quarter closures of three Forever21 locations and one Party City location, representing over 284,000-square-feet, negatively impacted mall occupancy by 182 basis points compared with the prior-year quarter.
Nearly 575,000-square-feet of leases were executed in first quarter 2025, including comparable leases of approximately 473,000 square feet signed at a 2.4 percent decline in average rents versus the prior rents. New comparable leases were signed at an increase of more than 21 percent in average rents versus the prior rents.
Same-center tenant sales per square foot for the first quarter 2025 declined approximately 1.6 percent as compared with the prior-year period. Same-center tenant sales per square foot for the 12-months ended March 31, of $423, were essentially flat as compared with the prior period.
As of March 31, the company had $276.1 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 June 30.
On April 30, CBL announced that it had successfully met the extension test for its non-recourse term loan to secure a one-year extension to November 2026. Based on current projections, CBL also anticipates meeting the second extension test later in 2026, to secure the final one-year extension to November 2027.
On May 1, CBL announced that its Board of Directors authorized a stock repurchase program for the company to buy up to $25 million of its common stock.
"CBL is off to a solid start in 2025 with first quarter results in-line with expectations and previously issued guidance," said CBL's chief executive officer, Stephen D. Lebovitz. "Financial results reflected the anticipated decline in same-center NOI as we faced a difficult comparable period in the prior year that included one-time tax savings and lower operating expense related to timing of maintenance and repairs.
"While absolute leasing volumes in the first quarter moderated from the record volumes signed during the prior-year period, the resilience of our portfolio was demonstrated with the signing of a number of new in-demand tenants. These additions included Fabletics, LEGO, James Avery Artisan Jewelry, Hey Dude, Miss A, and nostalgic restaurant concept, Ford's Garage. New comparable shop leases were signed at positive lease spreads of more than 21% while renewal leases were signed at a 6.5 percent decline. The strong prior-year new leasing volumes contributed to a 100-basis point increase in portfolio occupancy compared with the prior-year period, including a 40-basis point increase in same-center malls, outlet and lifestyle centers. This new leasing activity more than offset the negative impact of several first quarter Forever21 and Party City closures. We anticipate additional Forever21 closures to occur in the second quarter but have already made significant progress in lining up strong backfills for the impacted locations to minimize downtime and bring new higher rents online.
"We continue to focus on actively pursuing opportunities to return capital to shareholders, which was demonstrated with the Board's authorization of a new $25 million stock repurchase program as well as the regular quarterly cash dividend and the special cash dividend paid in March. The stock repurchase program provides us with a powerful tool to allocate capital to capture significant discounts in our stock's valuation.
"We have actively worked to improve the strength and flexibility of our balance sheet over the past several years. As a result, today we enjoy a balance sheet comprised almost exclusively of non-recourse mortgage debt, with significant amortization reducing leverage further. Additionally, our maturity schedule continues to improve with the recent achievement of the extension test to extend our term loan maturity as well as the recent extensions of four property-specific loans.
"Last quarter, we noted that uncertainty would be a factor impacting 2025, and this has proven to be even more prescient than we expected. While it is difficult to project the impact the changes in tariffs will have on our tenants and customers, the majority of our leases are long-term and are diversified across higher credit tenants, which serves to mitigate the short-term impact. As such, we are maintaining our current guidance range and will keep our focus on the areas we can influence, including operating the portfolio efficiently, driving occupancy and revenues and allocating capital prudently."
On May 1, BL announced that its Board of Directors declared a regular cash dividend of $0.40 per common share for the quarter ending June 30. The dividend is payable on June 30, to shareholders of record as of June, 13. The regular dividend equates to an annual dividend payment of $1.60 per common share. CBL also paid a special dividend of $0.80 per share on March 31.
In February 2025, CBL and its joint venture partner exercised the one-year extension option on the loan secured by the Pavilion at Port Orange in Port Orange, Fl., which extends the maturity date through February 2026.
In March, CBL and its joint venture partner closed on a modification of the $28.8 million loan (at 100 percent) secured by York Town Center in York, Pa., to extend the maturity to September. Additionally, the loan secured by Cross Creek Mall in Fayetteville, NC, was modified for an extended maturity date of August.
Additionally in March, the conveyance of Alamance Crossing East, in Burlington, NC, was completed in satisfaction of the outstanding $41.1 million non-recourse loan.
In April 2025, CBL exercised the one-year extension option on the loan secured by Fayette Mall in Lexington, Ky.
On April 30, 2025, CBL announced that the principal balance of CBL's non-recourse term loan has been reduced to $668.3 million, successfully meeting the extension test to secure a one-year extension. The loan’s maturity will automatically extend from November 2025 to November 2026.
Additionally, based on current projections, CBL anticipates meeting the second required extension test, which requires a principal balance of $615 million, in 2026 through natural amortization, enabling another one-year extension to November 2027.
During Q1 2025, CBL closed on dispositions generating more than $73.3 million of gross proceeds including the sale of Monroeville Mall and Annex in Monroeville Pa., for $34.0 million in January and the $38.1 million sale of Imperial Valley Mall in El Centro, Ca., in February. CBL also completed the sale of one outparcel, generating aggregate proceeds at CBL's share of $1.2 million.
On May 1,CBL announced that its Board of Directors authorized a stock repurchase program for the company to buy up to $25 million of its common stock.
The company plans to repurchase shares from time to time on the open market, in privately negotiated transactions or otherwise, depending on market prices and other conditions and all in compliance with the rules of the United States Securities and Exchange Commission and other applicable legal requirements.
The size and timing of any purchases will depend on a number of factors, including share price, general business and market conditions, and other factors. The repurchase program does not obligate the company to acquire any particular amount of shares, and the repurchase program may be suspended or discontinued at any time at the company’s discretion. Purchases may be made through the program by May 1, 2026.
Detailed project information is available in CBL’s Financial Supplement for Q1 2025, which can be found in the Invest – Financial Reports section of CBL’s website at cblproperties.com.