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CBL Stock Gains Post Q3 Earnings as Occupancy and Leasing Rise
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Shares of CBL & Associates Properties, Inc. (CBL - Free Report) have gained 5.7% since the company reported its earnings for the third quarter of 2026 ended Sept. 30, 2026. This compares with the S&P 500 Index’s 2% decline over the same period. Over the past month, the stock gained 7.9% against the S&P 500’s 4.5% loss.
CBL’s Earnings Snapshot
CBL reported third-quarter 2026 revenues of $148.7 million compared with $139.3 million in the year-ago quarter. Rental revenues increased 6.7% to $143.9 million from $134.8 million. Earnings per share declined to 37 cents from $2.38, while net income attributable to common shareholders fell to $11.3 million from $74.3 million. Funds from operations (FFO), as adjusted, increased 22.6% to $1.90 per share from $1.55.
Same-center net operating income (NOI) rose 3.8% to $96.2 million. Segmentally, same-center NOI increased 3.4% for malls, 8.2% for outlet centers, 2.6% for lifestyle centers, 4.9% for open-air centers and 3.8% for outparcels and other properties.
CBL's Operating Metrics
Portfolio occupancy reached 91.5% as of Sept. 30, 2026, from 90.2% a year earlier. Mall occupancy improved to 89.7% from 87.6%, while lifestyle center occupancy increased to 94.1% from 93.3%. Outlet center occupancy rose to 94.1% from 92%, whereas open-air center occupancy declined to 94.3% from 95.3%.
CBL signed more than 930,000 square feet of leases during the quarter, including approximately 460,000 square feet of comparable new and renewal leases at a 6.8% increase in average gross rents. Same-center tenant sales per square foot increased approximately 3% year over year during the quarter. For the trailing 12 months, sales per square foot increased 3.6% to $463 from $447.
As of Sept. 30, 2026, unrestricted cash and marketable securities totaled $366.7 million, including $15.8 million of joint venture cash attributable to CBL.
CBL & Associates Properties, Inc. Price, Consensus and EPS Surprise
Same-center NOI benefited from $6.4 million in higher rental revenues, supported by improving occupancy and a $0.4 million increase in percentage rent.
However, operating expenses increased $2.6 million, reflecting $1.5 million increases in both maintenance and repair expenses and real estate taxes, partially offset by lower property operating expenses. Changes in estimated uncollectable revenues favorably affected quarterly results by approximately $1.9 million.
Interest expense increased 47.7% to $66.1 million from $44.8 million. Additionally, gains on real estate asset sales declined to $5.4 million from $51.2 million, contributing to weaker reported earnings.
CBL’s Management Commentary
Chief executive officer Stephen D. Lebovitz attributed operating improvements to embedded rent increases, stronger renewal leasing spreads and higher occupancy. Management indicated that leasing activity generated $4.6 million in net new annual rent.
CBL also highlighted its refinancing initiatives. Nearly $1 billion in new financings completed year to date added more than $45 million in annual free cash flow, according to management, while addressing major debt maturities until 2028.
Management cautioned that fourth-quarter 2026 comparisons would reflect tax refunds and bad debt recoveries recognized during the prior-year period.
CBL's 2026 Guidance
CBL raised its full-year 2026 adjusted FFO guidance to $7.34-$7.44 per share. Adjusted FFO is projected to be between $226.7 million and $229.8 million.
Management expects same-center NOI growth of 0.75%-2.25%, representing $386.3 million-$392.1 million. Projected net income ranges from $112.1 million to $115.2 million.
CBL excluded Volusia Mall from its same-center portfolio, reflecting ongoing discussions regarding a potential sale, foreclosure or property conveyance.
CBL’s Other Developments
During the third quarter, CBL sold York Town Center in August and continued monetizing non-core assets and land parcels. Year-to-date gross sales proceeds attributable to CBL exceeded $101.3 million, including transactions completed after quarter-end.
In October, CBL completed a $135 million refinancing of West County Center, unlocking more than $7 million in annual free cash flow.
CBL is also working to resolve six non-recourse loans totaling approximately $266.7 million at its share through lender-directed sales, foreclosures or property conveyances. These transactions, once completed, are expected to eliminate the associated debt and simplify the company's balance sheet.
On Nov. 4, the board authorized a $25 million share repurchase program, reflecting management's focus on capital allocation and shareholder returns.
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CBL Stock Gains Post Q3 Earnings as Occupancy and Leasing Rise
Shares of CBL & Associates Properties, Inc. (CBL - Free Report) have gained 5.7% since the company reported its earnings for the third quarter of 2026 ended Sept. 30, 2026. This compares with the S&P 500 Index’s 2% decline over the same period. Over the past month, the stock gained 7.9% against the S&P 500’s 4.5% loss.
CBL’s Earnings Snapshot
CBL reported third-quarter 2026 revenues of $148.7 million compared with $139.3 million in the year-ago quarter. Rental revenues increased 6.7% to $143.9 million from $134.8 million. Earnings per share declined to 37 cents from $2.38, while net income attributable to common shareholders fell to $11.3 million from $74.3 million. Funds from operations (FFO), as adjusted, increased 22.6% to $1.90 per share from $1.55.
Same-center net operating income (NOI) rose 3.8% to $96.2 million. Segmentally, same-center NOI increased 3.4% for malls, 8.2% for outlet centers, 2.6% for lifestyle centers, 4.9% for open-air centers and 3.8% for outparcels and other properties.
CBL's Operating Metrics
Portfolio occupancy reached 91.5% as of Sept. 30, 2026, from 90.2% a year earlier. Mall occupancy improved to 89.7% from 87.6%, while lifestyle center occupancy increased to 94.1% from 93.3%. Outlet center occupancy rose to 94.1% from 92%, whereas open-air center occupancy declined to 94.3% from 95.3%.
CBL signed more than 930,000 square feet of leases during the quarter, including approximately 460,000 square feet of comparable new and renewal leases at a 6.8% increase in average gross rents. Same-center tenant sales per square foot increased approximately 3% year over year during the quarter. For the trailing 12 months, sales per square foot increased 3.6% to $463 from $447.
As of Sept. 30, 2026, unrestricted cash and marketable securities totaled $366.7 million, including $15.8 million of joint venture cash attributable to CBL.
CBL & Associates Properties, Inc. Price, Consensus and EPS Surprise
CBL & Associates Properties, Inc. price-consensus-eps-surprise-chart | CBL & Associates Properties, Inc. Quote
Factors Affecting CBL’s Results
Same-center NOI benefited from $6.4 million in higher rental revenues, supported by improving occupancy and a $0.4 million increase in percentage rent.
However, operating expenses increased $2.6 million, reflecting $1.5 million increases in both maintenance and repair expenses and real estate taxes, partially offset by lower property operating expenses. Changes in estimated uncollectable revenues favorably affected quarterly results by approximately $1.9 million.
Interest expense increased 47.7% to $66.1 million from $44.8 million. Additionally, gains on real estate asset sales declined to $5.4 million from $51.2 million, contributing to weaker reported earnings.
CBL’s Management Commentary
Chief executive officer Stephen D. Lebovitz attributed operating improvements to embedded rent increases, stronger renewal leasing spreads and higher occupancy. Management indicated that leasing activity generated $4.6 million in net new annual rent.
CBL also highlighted its refinancing initiatives. Nearly $1 billion in new financings completed year to date added more than $45 million in annual free cash flow, according to management, while addressing major debt maturities until 2028.
Management cautioned that fourth-quarter 2026 comparisons would reflect tax refunds and bad debt recoveries recognized during the prior-year period.
CBL's 2026 Guidance
CBL raised its full-year 2026 adjusted FFO guidance to $7.34-$7.44 per share. Adjusted FFO is projected to be between $226.7 million and $229.8 million.
Management expects same-center NOI growth of 0.75%-2.25%, representing $386.3 million-$392.1 million. Projected net income ranges from $112.1 million to $115.2 million.
CBL excluded Volusia Mall from its same-center portfolio, reflecting ongoing discussions regarding a potential sale, foreclosure or property conveyance.
CBL’s Other Developments
During the third quarter, CBL sold York Town Center in August and continued monetizing non-core assets and land parcels. Year-to-date gross sales proceeds attributable to CBL exceeded $101.3 million, including transactions completed after quarter-end.
In October, CBL completed a $135 million refinancing of West County Center, unlocking more than $7 million in annual free cash flow.
CBL is also working to resolve six non-recourse loans totaling approximately $266.7 million at its share through lender-directed sales, foreclosures or property conveyances. These transactions, once completed, are expected to eliminate the associated debt and simplify the company's balance sheet.
On Nov. 4, the board authorized a $25 million share repurchase program, reflecting management's focus on capital allocation and shareholder returns.