CBL & Associates Q3 2024 Earnings Report

Same center NOI for the nine months ended September 30, 2024 increased 1% compared with the prior-year period, and FFO, as adjusted, per share increased to $4.77, compared with $4.72 for the prior-year period. CBL reported a decline in same-center NOI of 2.0% for third quarter 2024 compared with the prior-year period, and FFO, as adjusted, per share of $1.54, compared with $1.60 for third quarter 2023. Results were in-line with the previously issued guidance range for 2024 same-center NOI and FFO, as adjusted.

Over 880,000 square feet of leases were executed in third quarter 2024. Third quarter 2024 leasing results included comparable leases of approximately 362,000 square feet signed at a 9.5% increase in average rents versus the prior leases including a 3.3% increase in renewal leases signed for malls, lifestyle centers and outlet centers.

Portfolio occupancy was 89.3% as of September 30, 2024, a 60 basis-point-increase sequentially from June 30, 2024, and a 150 bps decline compared with portfolio occupancy of 90.8% as of September 30, 2023. Same-center occupancy for malls, lifestyle centers and outlet centers was 87.4% as of September 30, 2024, a 230-basis-point decline from 89.7% as of September 30, 2023. Anticipated bankruptcy related store closures representing nearly 300,000-square-feet comprised 163 basis points of the decline in mall occupancy compared with the prior-year quarter including approximately 234,000 square feet of closures in the second quarter 2024 related to rue21 and Express. CBL has executed agreements to reopen 14 stores representing approximately 94,400 square feet of rue21 stores under its new ownership by first quarter 2025, with the majority opening in 2024.

Same-center tenant sales per square foot for the third quarter 2024 increased 1.5% as compared with the prior-year period. Same-center tenant sales per square foot for the 12-months ended September 30, 2024, declined 0.7% to $418, compared with $421 for the prior period.