CBL & Associates Properties, Inc.

What they do

At December 31, 2025, CBL owned interests in 86 properties across 22 states, comprising 47 malls, 25 open-air centers, five outlet centers, four lifestyle centers and five other properties including outparcels. Substantially all business is conducted through CBL & Associates Limited Partnership, of which the company holds a combined 99.98% interest. Rental revenue comes from fixed minimum rents, percentage rents based on tenant sales, and tenant reimbursements for real estate taxes, insurance, common area maintenance and other recoverable operating expenses.

Revenue drivers

• Rental revenues from mall and shopping center tenants — The primary revenue source, generated from fixed minimum rents, percentage rents tied to tenant sales volumes, and tenant reimbursements for taxes, insurance and common area maintenance. Rental revenues were $65.1 million higher in 2025 than 2024.
• Top 25 tenants — Concentration in a small set of retailers; Victoria's Secret & Co. ranks as the largest tenant with 46 stores. The 10-K lists the top 25 tenants by percentage of total revenues.
• Property sales and peripheral land sales — The company sells operating real estate assets and outparcel land when it can realize appropriate value, with proceeds generally used to retire related indebtedness and reduce outstanding balances.
• Management, leasing, development and sponsorship fees — Generated through CBL & Associates Management, Inc., which is wholly owned by the Operating Partnership and conducts property management and development activities.

Recent performance

For the second quarter of 2026, net income attributable to common shareholders was $1.47 per share and FFO as adjusted was $1.89 per share, compared with $0.08 and $1.86 per share respectively in the prior-year period. Same-center NOI rose 1.5% in Q2 2026 and 2.2% for the six months ended June 30, 2026. Portfolio occupancy was 90.4% at June 30, 2026, up 160 basis points from 88.8% a year earlier, though bankruptcy-related closures of about 76,000 square feet reduced mall occupancy by nearly 54 basis points. Comparable new and renewal leases signed in Q2 2026 totaled roughly 585,000 square feet at an 8.8% increase in average rents. Same-center tenant sales per square foot of $455 for the trailing 12 months ended June 30, 2026, were up 3.9% year over year.

Strategy

Management is focused on improving occupancy, driving rent growth and diversifying property offerings to include retail, service, dining, entertainment and other non-retail uses, primarily by re-tenanting former anchor locations. This is paired with a balance-sheet strategy of reducing overall debt, extending the maturity schedule and lowering borrowing costs. In July 2025, the company acquired four enclosed malls — Ashland Town Center, Mesa Mall, Paddock Mall and Southgate Mall — using proceeds from sales of non-core assets and open-air centers such as The Promenade and Fremaux Town Center, to invest in higher cash flow yielding opportunities.

Risks

• Tenant concentration — The top 25 tenants account for a meaningful share of total revenues, and Victoria's Secret & Co. alone operates 46 stores across the portfolio.
• Retail bankruptcies and store closures — Bankruptcy-related closures of approximately 76,000 square feet reduced mall occupancy by nearly 54 basis points in the second quarter of 2026 versus the prior-year period.
• High leverage and refinancing risk — At June 30, 2026, total liabilities were $2.21 billion against total assets of $2.64 billion, with long-term debt of $2.03 billion.
• Interest expense and rate exposure — Interest expense was $21.5 million higher in 2025 than 2024, increasing the cost of carrying the company's debt.

Outlook

Management increased full-year 2026 FFO and same-center NOI guidance following second-quarter results. The company pointed to higher occupancy, positive lease spreads and same-center NOI growth as drivers of the raised outlook. No specific guidance figures beyond the direction of the increase are provided in the excerpts.