CBL reports better overall results

Chattanooga-based shopping center operator CBL & Associates Properties Inc. on Thursday reported that second-quarter earnings grew on better across-the-board results and it increased its yearly guidance.

“Our focus for the remainder of the year is to build on these excellent results, accelerate our portfolio transformation strategy and drive additional improvements to our balance sheet,” said CBL Chief Executive Officer Stephen Lebovitz. “Our results for the second quarter were outstanding across the board.”

Funds from operations per diluted share, as adjusted, grew 9.3 percent to 59 cents for the second quarter compared with 54 cents a year ago, said the owner of Hamilton Place and Northgate malls in Chattanooga after the market’s close. That beat the average analyst estimate of 56 cents per share.

Same-center net operating income for the quarter rose 3.4 percent in the company’s total portfolio, which was the largest increase for CBL since the end of the recession, said Lebovitz.

Same-center mall occupancy

increased to 91.7 percent as of June 30 compared with 90.2 percent a year earlier.

Also, CBL hiked its FFO guidance, as adjusted, for the year to a range of $2.36 to $2.40 per diluted share.

Same-center sales increased 1.1 percent to $377 per square foot for the rolling 12-months ended June 30 over the prior-year period, the company reported.

Net income attributable to common shareholders for the second quarter was $51.7 million, or 30 cents per diluted share, compared with net income of $30.7 million, or 18 cents per diluted share, a year ago.

Lebovitz said CBL’s portfolio transformation, as demonstrated by last week’s announcement of the sale of the Fashion Square Mall in Saginaw, Mich., and The Lakes in Muskegon, Mich., for $66.5 million, is gaining momentum.

Year to date, CBL has completed $304 million in disposition activity at the company’s share, including interest in five malls and two community centers. Net proceeds from the dispositions were used to reduce outstanding balances on the company’s lines of credit, CBL said.

“Coupled with the sale of community centers, we are reducing leverage dramatically, with total debt declining more than $300 million,” he said. “Our balance sheet also benefited from the three new attractively priced secured fixed-rate financings closed this quarter. This quarter’s performance clearly reflects the resiliency and opportunity in CBL and our portfolio.”

CBL shares closed Thursday at $10.98, up 10 cents or 0.92 percent, on the New York Stock Exchange.