Cbl & Associates Properties — Key Risks
Heavy Debt Load With Major Maturities Clustered in the Near Term
CBL carries roughly $2.6 billion in total debt, with $670 million due in 2026, $650 million in 2027, and $289 million in 2028. That is a lot of refinancing to execute in a short window, and if credit markets tighten or property values decline, the company may struggle to roll over those loans on acceptable terms — or at all.
$751 Million in Floating-Rate Debt Exposes Cash Flow to Interest Rate Swings
About $751 million of CBL's debt carries a variable interest rate, meaning monthly payments rise automatically when rates go up. This directly squeezes the cash available for dividends and operations, and the company's ability to hedge all of it is not guaranteed.
Tenant Bankruptcies and Anchor Store Closures Can Trigger a Domino Effect
Many leases contain co-tenancy clauses — provisions that let tenants pay reduced rent or even walk away if a key anchor store closes or occupancy falls below a set threshold. Losing one major tenant can therefore trigger rent cuts from several others simultaneously, compounding the revenue hit significantly.
E-Commerce Continues to Pressure the Core Business Model
CBL's revenue depends almost entirely on people shopping at physical malls. As online retail grows, some tenants close underperforming stores, reducing occupancy and the rents CBL can charge. Tenants also increasingly fulfill online orders from store inventory, which may go unreported in sales figures — reducing percentage-rent (extra rent tied to a tenant's sales) that CBL would otherwise collect.
Geographic Concentration in the Southeast and Midwest Adds Regional Risk
Roughly 76% of CBL's revenues come from properties in the southeastern and midwestern United States. The company's five largest markets — Chattanooga, St. Louis, Nashville, Lexington, and Kansas City — together account for about 26.7% of revenues. A regional recession or a slowdown specific to these areas would hit CBL harder than a more geographically diversified landlord.
Tariffs on Imported Goods Could Hurt Tenants and Weaken Demand for Space
Many of CBL's tenants sell imported merchandise. If trade tariffs raise their costs and they cannot pass those costs on to shoppers, their profitability suffers — making it harder to pay rent and less likely they will expand or renew leases. Tariffs also raise steel and lumber costs, directly increasing CBL's own redevelopment expenses.
Impairment Charges Could Periodically Hit Reported Results
When a property's expected future cash flows fall below its carrying value (what it is recorded as being worth on the books), accounting rules require CBL to write it down immediately. Given the pressures on retail real estate, these charges are a real and recurring risk that can significantly damage reported earnings in any given period.
Emerged From Bankruptcy in 2021 — Historical Financials Are Not Comparable
CBL exited Chapter 11 bankruptcy on November 1, 2021, and adopted fresh-start accounting, resetting asset values and wiping out its accumulated deficit. Pre-2021 financial statements are essentially from a different company under different economics, making it harder for investors to assess long-term trends or performance patterns.