CBL Properties reported third‑quarter 2025 earnings that surpassed expectations, delivering earnings per share of $2.38 versus a consensus estimate of $0.14—a beat of $2.24 or 1,600 %. The company’s net income attributable to common shareholders rose to $2.38 million, up from $0.52 million in the second quarter and $15.87 million in the same quarter of 2024, underscoring a sharp year‑over‑year turnaround.
The company’s Funds from Operations (FFO) climbed to $2.17 million, a 70 % increase from $1.28 million in the prior quarter. The press release clarified that the earlier statement of an FFO margin expansion from 1.28 % to 2.17 % was a misinterpretation; the margin actually remained around 1.3 % while the dollar amount of FFO grew substantially. Adjusted FFO reached $1.55 million, up $0.1 million from the previous quarter, reflecting disciplined cost management and higher rental income.
Occupancy in the portfolio increased to 90.2 % from 89.3 % year‑over‑year, while same‑center Net Operating Income (NOI) grew 1.1 %. Lease spreads expanded by 17.1 percentage points, driven by new leases that achieved over 70 % of the average rent increase and renewal leases that added nearly 10 %. Tenant sales per square foot rose 4.8 %, indicating robust demand for the mixed‑use and retail concepts that CBL is deploying.
The quarter also featured several new openings, including the Element by Westin hotel at Mayfaire Town Center, Ashley Furniture at Meridian Mall, Cavender’s at Fayette Mall, Barnes & Noble at York Town Center, and the first L.L. Bean location at CoolSprings Galleria. CBL secured a $43 million, five‑year non‑recourse loan at a 5.9 % interest rate and extended its term loan to November 2026, reinforcing its balance‑sheet flexibility.
Management reaffirmed its 2025 guidance, projecting adjusted FFO per share between $6.98 and $7.34 and a same‑center NOI outlook ranging from a 2 % decline to a 0.5 % increase. CEO Stephen D. Lebovitz highlighted the company’s “excellent” results, citing strong pricing power and tenant sales growth as key drivers. He also noted the sale of its interest in Fremaux Town Center, which generated cash proceeds to support future acquisitions and share‑repurchase activity.
Analysts noted the earnings beat and revenue of $134.79 million, which topped the consensus estimate of $134 million. The strong performance was attributed to disciplined cost control, higher lease spreads, and a diversified tenant mix that mitigated the impact of e‑commerce on traditional retail. The guidance maintained by CBL signals confidence in continued operational strength amid a transforming retail landscape.
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