Zacks Investment Research has recently initiated coverage of CBL & Associates Properties, Inc. (CBL Quick QuoteCBL - Free Report) , assigning a "Neutral" recommendation to the company's shares. This assessment comes amid a mixed outlook for the company, which has been making notable strides in the real estate investment trust (REIT) space despite industry challenges.

CBL, headquartered in Chattanooga, TN, is a self-managed, integrated REIT focused on the ownership, development, acquisition, leasing, management and operation of regional shopping malls and other commercial properties. As of Dec. 31, 2024, CBL owned interests in 87 properties, consisting of 45 malls, 27 open-air centers, five outlet centers, five lifestyle centers and five other properties, including single-tenant and multi-tenant outparcels. As of Dec. 31, 2024, its shopping centers were located in 21 states, primarily in the southeastern and midwestern United States.

CBL signed 575,000 square feet in leases during the first quarter of 2025, with new shop leases achieving an average rent uplift of 21.5%. Occupancy improved to 90.4%, reflecting continued tenant demand. Meanwhile, a stable quarterly adjusted FFO of $1.50 per share and reaffirmed full-year guidance of $6.98–$7.34 per share provide earnings visibility.

On the financial front, CBL has reduced its net debt by $60 million year over year, with total net debt standing at $2.15 billion as of March 2025. CBL recently extended the maturity of its secured term loan to November 2026 and is on track to qualify for another extension through 2027.

The research report highlights several key factors that could drive CBL’s future growth. These include its strategic asset sales, totaling $73.3 million in the first quarter of 2025, which included properties such as Monroeville Mall and Imperial Valley Mall. This allowed CBL to realize $21.5 million in gains while reducing debt. The stock’s annualized dividend yield of 12.5% to 13.3%, supported by 18.28% dividend growth, adds to its appeal for income-focused investors.

However, potential investors should consider certain risks outlined in the report. CBL faces risks from its declining same-center net operating income, negative lease spreads and soft tenant sales. The company’s exposure to tenant bankruptcies — such as Forever 21 and Party City — and high payout ratios may constrain its reinvestment capacity. Moreover, nearly $940 million in debt matures in 2025, and refinancing in a tight credit market could prove challenging.

CBL’s stock has significantly outperformed its industry peers and the broader market over the past year. Currently trading at low valuation multiples relative to industry standards, the stock reflects investor caution around refinancing risk, tenant pressures and sector headwinds. However, this discount may offer upside for value-focused investors seeking high yield and turnaround potential.

For a comprehensive analysis of CBL’s financial health, strategic initiatives and market positioning, you are encouraged to view the full Zacks research report. This in-depth report provides a detailed discussion of the company's operational strategies, financial performance, and the potential risks and opportunities that lie ahead.

Read the full Research Report on CBL here>>>
 

Note: Our initiation of coverage on CBL, which has a modest market capitalization of $782.7 million, aims to equip investors with the information needed to make informed decisions in this promising but inherently risky segment of the market.