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Jun 30, 2023
CBL & Associates Q2 2023 Earnings Report
Results for the second quarter of 2023 were reported, demonstrating portfolio strength and leading to an increase in the low-end of full-year guidance.
Key Takeaways
CBL Properties announced its second quarter 2023 results, highlighting strong leasing activity and occupancy growth. The company raised the low end of its full-year FFO, as adjusted, per share and same-center NOI guidance ranges. Same-center NOI declined slightly compared to the prior-year quarter, and same-center tenant sales per square foot also decreased.
Over 875,000 square feet of leases were executed in the second quarter, including comparable leases of approximately 411,000 square feet signed at 9.1% higher average rents versus the prior leases.
Portfolio occupancy increased 20 basis points to 89.7% as of June 30, 2023, compared with portfolio occupancy of 89.5% as of June 30, 2022. Same-center occupancy for malls, lifestyle centers and outlet centers was 88.5% as of June 30, 2023, a 50-basis-point increase from 88.0% as of June 30, 2022.
Same-center NOI declined 0.8% during the second quarter 2023 as compared with the prior-year quarter near the high end of the full-year guidance range.
FFO, as adjusted, per share for the second quarter 2023, was $1.56, in-line with expectations. FFO, as adjusted, per share was $1.88 for the second quarter 2022.
CBL & Associates
CBL & Associates
Forward Guidance
CBL is providing guidance for FFO, as adjusted, and same-center NOI for full-year 2023, excluding the impact of any unannounced transactions.
Positive Outlook
- 2023 FFO, as adjusted: $193 million - $208 million
- 2023 FFO, as adjusted, per share: $6.00 - $6.47
- Weighted Average Common Shares Outstanding: 32.1 million
- 2023 Same-Center NOI: $423 million - $440 million
- 2023 Change in Same-Center NOI: -4.5% - -0.7%
Challenges Ahead
- Expected diluted earnings per common share: $(1.95) - $(1.48)
- 2023 Estimated maintenance capital/tenant allowances: $40 million - $55 million
- 2023 Estimated development/redevelopment expenditures: $15 million - $22 million
- 2023 Estimated principal amortization (including est. term loan ECF): $75 million - $85 million
- Total Estimate: $130 million - $162 million