CBL earnings down in quarter and year

Shopping center developer CBL & Associates Properties Inc. on Thursday posted lower fourth quarter earnings from a year ago on retailer and anchor store bankruptcies.

Funds from operations per diluted share, as adjusted, was 45 cents in the fourth quarter compared to 56 cents a year ago, according to the Chattanooga-based company that operates Hamilton Place and Northgate malls in the city.

For the year, FFO per diluted share, as adjusted, was $1.73 for 2018, compared with $2.08 in the prior-year period.

CBL Chief Executive Officer Stephen D. Lebovitz said 2018 closed on a positive note with adjusted FFO and same-center net operating income in-line with its guidance range and a sequential improvement in operating results.

“We are making significant progress on our strategic priority of transforming our properties into suburban town centers, while at the same time limiting our cash investment,” he said in a statement after the close of the markets.

The net loss attributable to common shareholders for the fourth quarter was $67 million, or 39 cents per diluted share, compared with net income of $25.2 million, or 15 cents per diluted share for the same quarter in 2017.

Net loss in the latest quarter included $91.8 million of loss on impairment of real estate, primarily related to the write downs of the carrying value of Honey Creek Mall and Eastland Mall to each property’s estimated fair value.

The average analyst estimate was that CBL would earn 1 cent per share in the quarter.

CBL’s stock closed Thursday on the New York Stock Exchange at $2.27 per share, down 18 cents, or 7.35 percent.

Lebovitz said that in the fourth quarter, CBL completed replacements of four former department stores.

“We have a dozen replacements under construction or positioned to start construction later this year as well as leases out for signature or in negotiations on numerous other locations. We are using these opportunities to diversify our properties’ offerings to include more food, entertainment, fitness, service and nonretail uses,” he said.

Over 67 percent of new leases executed last year were with non-apparel tenants, Lebovitz said.

He cited the company’s news in January of a $1.18 billion secured credit facility.

“This new facility is a major vote of confidence by our bank group and a huge step forward in providing the flexibility and runway to execute our strategy. As a result, our balance sheet is stronger and our maturity schedule is extended,” the company CEO said.

CBL provided 2019 FFO, as adjusted, guidance in the range of $1.41 to $1.46 per diluted share.