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Dec 31, 2023
CBL & Associates Q4 2023 Earnings Report
CBL Properties announced results for the fourth quarter and year ended December 31, 2023.
Key Takeaways
CBL Properties reported a decline of 1.2% in same-center NOI for Q4 2023, with FFO, as adjusted, per share at $1.94. Portfolio occupancy remained approximately flat at 90.9%. The company initiated 2024 FFO, as adjusted, per share guidance in the range of $6.19 - $6.63 and 2024 same-center NOI guidance in the range of $428 million - $442 million.
CBL initiates 2024 FFO, as adjusted, per share guidance in the range of $6.19 - $6.63 and 2024 same-center NOI guidance in the range of $428 million - $442 million.
Same-center NOI declined 1.2% during the fourth quarter 2023 as compared with the prior-year quarter and declined 1.5% in 2023 as compared with the prior year, near the high-end of the previously issued guidance range.
FFO, as adjusted, per share was $1.94 for the fourth quarter 2023, and $6.66 for the year ended December 31, 2023. FFO, as adjusted, per share was $2.11 for fourth quarter 2022, and $7.88 for the year ended December 31, 2022.
Portfolio occupancy was 90.9% as of December 31, 2023, approximately flat compared with portfolio occupancy as of December 31, 2022. Same-center occupancy for malls, lifestyle centers and outlet centers was 89.8% as of December 31, 2023, a 20-basis-point increase from 89.6% as of December 31, 2022.
CBL & Associates
CBL & Associates
Forward Guidance
Based on Management's expectations for 2024, CBL is initiating the following guidance for FFO, as adjusted, and same-center NOI for full-year 2024. Guidance excludes the impact of any unannounced transactions.
Positive Outlook
- Ongoing healthy tenant demand
- Improving specialty leasing income
- Benefit of successful real estate tax appeals
- Contributions from new large space openings, such as Thrill Factory at East Towne Mall
- Replacements for several Bed, Bath & Beyond spaces, such as Crunch Fitness at Coastal Grand and Schuler's Books at Meridian Mall will also positively impact revenues.
Challenges Ahead
- Sales declines in 2023 will put pressure on near-term percentage rent and renewal lease spreads.
- Rising insurance costs will increase operating expenses
- Overall higher interest rates will continue to impact FFO.
- Harford Mall removed from same-center NOI pool
- Lower percentage rent resulting from an anticipated decline in full-year sales.