Cbl & Associates Properties — Financial Results

Net Income More Than Doubled, Driven Largely by Asset Sales and Acquisitions

Net income jumped 135% year-over-year, but a large portion of that improvement came from one-time items — particularly $74.2M in gains from selling properties like Monroeville Mall and Imperial Valley Mall, versus just $16.7M in the prior year. Rental revenues also rose $65.1M, though most of that came from newly acquired and consolidated malls rather than improved performance at existing properties. Investors should note this is not purely organic growth.

Same-Center NOI Was Nearly Flat — Core Portfolio Barely Growing

Same-center NOI — the cleanest measure of how existing properties are performing, stripping out acquisitions and dispositions — grew just 0.5%, or $2.0M. Rental revenues at comparable properties rose $7.1M from higher base rents, but that gain was largely eaten up by a $6.0M rise in operating expenses, including higher utility costs and the absence of one-time tax refunds received in 2024. The core portfolio is stable but not meaningfully expanding.

The Company Is Actively Recycling Its Portfolio — Selling Open-Air, Buying Malls

CBL sold six properties in 2025 for gross proceeds of $240.7M and used those funds to acquire four enclosed malls — Ashland Town Center, Mesa Mall, Paddock Mall, and Southgate Mall — for $179.7M in July 2025. The strategy is deliberate: sell lower-yielding open-air centers and reinvest into what management believes are higher cash flow opportunities in the mall segment. Malls now account for 72.2% of revenues, up from 70.0% in 2024.

Several Loans Are in Default or Foreclosure — a Real Risk to Watch

During 2025, Alamance Crossing East completed foreclosure, Southpark Mall entered default and receivership, and The Outlet Shoppes at Gettysburg matured without repayment. After year-end, Jefferson Mall was also placed into receivership. These are properties where CBL is effectively walking away from the debt rather than repaying it. While the loans are non-recourse (meaning lenders can only claim the property, not CBL's other assets), these events signal stress in parts of the portfolio.

$670M in Debt Matures in 2026 — Refinancing Is the Near-Term Challenge

The single biggest near-term concern is a $646.7M secured term loan maturing in November 2026, which has a one-year extension option if conditions are met. CBL has $335.4M in unrestricted cash and short-term U.S. Treasury securities, which does not fully cover 2026 maturities on its own. How management handles this refinancing will be a key story to follow.

Adjusted FFO Rose 7.8%, Suggesting Underlying Operations Are Improving

FFO (Funds from Operations) is the standard profitability measure for REITs — it adds back depreciation and removes one-time gains, giving a cleaner picture of recurring earnings. Adjusted FFO grew $16.3M, or 7.8%, driven primarily by the three mall consolidations in late 2024 and the four mall acquisitions in mid-2025. This is a more encouraging signal than the headline net income figure.