CBL reports lower quarterly earnings

Chattanooga shopping center developer CBL & Associates Properties Inc. on Wednesday reported lower first quarter earnings compared to a year ago, citing a challenging retail environment.

The company reported that funds from operations allocable to common shareholders, as adjusted, for the first quarter was $88.4 million, or 52 cents per share, down by 4 cents per share from a year ago. Net income for the quarter was $22.9 million, or 13 cents per share, also down 4 cents per share from last year.

The company beat the analyst consensus estimate that it would earn 12 cents in the quarter, however.

CBL’s shares on the New York Stock Exchange closed Wednesday at $9.26 per share, down 38 cents, or 3.94 percent.

The company that owns and operates Hamilton Place mall and Northgate Mall in Chattanooga said that its first quarter was impacted about 5 cents per share by dilution from asset sales.

Also, total portfolio same-center net operating income for the first quarter declined 1 percent, according to CBL in a release after the close of the markets.

Stephen Lebovitz, CBL’s chief executive officer, said its malls are evolving into suburban town centers as the company adds more dining, entertainment, value and off-price, health and wellness, service and non-retail uses to adapt to the changing retail landscape.

“We faced a challenging retail environment in the first quarter, which impacted our net operating income results,” he said. “However, leasing demand remains strong, and we are making major progress on our anchor redevelopment program,” he said in a statement.

CBL said it entered into binding contracts for the sale of two malls and completed the sale of an outlet center and two office buildings year-to-date. The transactions are expected to generate aggregate equity proceeds of nearly $100 million for CBL.

Lebovitz said the company is improving its balance sheet through additional dispositions including the sale of The Outlet Shoppes at Oklahoma City and two office buildings as well as a binding contract for the sale of the two malls.

The company said its portfolio occupancy increased 92.1 percent. Same-center mall occupancy declined to 90.5 percent as of March 31 compared with 91.5 percent a year ago.