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Sep 30, 2022
CBL & Associates Q3 2022 Earnings Report
CBL Properties reported improved operating performance, driving an increase in full-year NOI guidance.
Key Takeaways
CBL Properties announced their Q3 2022 results, showing improved operating performance with an increase in occupancy and lease spreads, leading to an increased full-year NOI guidance. The company completed over $1.1 billion in financing activity year-to-date, de-risking the balance sheet and reducing interest costs.
Ongoing increases in occupancy and improvement in lease spreads drive increased full-year expectations for NOI and narrows the range for FFO. 2022 FFO, as adjusted now expected in the range of $7.40 - $7.67 per diluted share vs. prior guidance of $7.18 - $7.67 per diluted share. 2022 same-center NOI guidance increased by $8.0 million to a range of $424.0 - $438.0 million.
Portfolio occupancy as of September 30, 2022, was 90.5%. Portfolio occupancy as of September 30, 2022, increased 210-basis points from the prior-year quarter-end and increased 100-basis points from June 30, 2022. Same-center occupancy for malls, lifestyle centers and outlet centers was 89.1% as of September 30, 2022. The quarter-over-quarter improvement in same-center occupancy for malls, lifestyle centers and outlet centers was 240-basis points.
Third quarter new and renewal comparable space leases for malls, lifestyle centers and outlet centers were signed at 5.2% higher average rents versus the prior leases, marking a notable reversal in trends.
Same-center tenant sales per square foot for the trailing 12-months ended September 30, 2022, was $440. The year-over-year improvement in tenant sales per square foot was 2.1%.
CBL & Associates
CBL & Associates
CBL & Associates Revenue by Segment
Revenue by Segment
Rental revenues Revenue
CapyFin.com Forward Guidance
After incorporating results for the third quarter 2022, CBL is providing updated guidance for 2022 for FFO, as adjusted, in the range of $229.0 million - $237.0 million or $7.40 - $7.67 per diluted share. The assumption for same-center NOI for the year increased by $8.0 million at both the high and low end, to the range of $424.0 million to $438.0 million.
Positive Outlook
- FFO, as adjusted, in the range of $229 million - $237 million
- FFO, as adjusted, per share $7.40 - $7.67
- Same-Center NOI at $424 million
- Same-Center NOI at $438 million
- The improved expectations are primarily as a result of better than anticipated leasing results and occupancy growth.