CBL & Associates Q4 2024 Earnings Report
Key Takeaways
CBL Properties announced strong results for the fourth quarter and full-year 2024, with same-center NOI increasing 0.2% over the prior-year period. The company also completed significant financing and transactional activity that strengthened its balance sheet and portfolio, highlighted by the achievement of positive same-center NOI growth.
CBL closed on the sale of Monroeville Mall in Monroeville, PA, for $34.0 million in January 2025.
In December 2024, CBL closed on the acquisition of its partner’s 50% joint venture interests in three high-performing centers for a total cash consideration of $22.5 million and assumed its former partner's share of three non-recourse loans, secured individually by each of the assets, totaling $266.7 million.
Same-center NOI for 2024 increased 0.2% compared with the prior-year period, and FFO, as adjusted, per share increased to $6.69, compared with $6.66 for the prior-year period. CBL reported a decline in same-center NOI of 1.6% for the fourth quarter 2024 compared with the prior-year period, and FFO, as adjusted, per share of $1.92, compared with $1.94 for fourth quarter 2023.
Nearly 4.5 million square feet of leases were executed in 2024, including nearly 1.4 million executed in the fourth quarter. Fourth quarter 2024 leasing results included comparable leases of approximately 859,000 square feet signed at roughly flat average rents versus the prior leases.
CBL & Associates
CBL & Associates
Forward Guidance
Based on Management's expectations, CBL is initiating FFO, as adjusted, guidance for 2025 in the range of $6.98 - $7.34 per share. Management anticipates same-center NOI for full-year 2025 in the range of (2.0)% to 0.5%.
Positive Outlook
- Net impact from new and renewal leasing activity is expected to contribute positively to same-center NOI.
- Potential for variance in the estimate for uncollectable revenues.
- Continued focus on strategic leasing and redevelopment efforts.
- Pursuing opportunities to utilize portfolio and strong balance sheet position.
- Aiming to generate cash flow improvements and enhanced shareholder returns.
Challenges Ahead
- Uncertainty and certain headwinds remain a factor in 2025.
- Flat to down sales expectations for the year may impact percentage rent.
- Higher breakpoints upon lease renewal and conversion of percentage rent to base rent on renewal can reduce revenue.
- Potential increase in operating expenses.
- Unbudgeted reserve for tenants that may file for bankruptcy/close stores introduces credit loss risk.