NYSE$CBL

CBL & Associates Properties Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

CBL Properties reported results for the first quarter of 2020, impacted by the COVID-19 pandemic.

CBL Properties reported a net loss of $133.9 million, or $0.75 per diluted share, for the first quarter of 2020. FFO per diluted share, as adjusted, was $0.26, compared to $0.30 in the prior year. The company has taken steps to improve liquidity and reduce costs in response to the COVID-19 pandemic, including drawing $280 million on its line of credit and deferring capital expenditures.

  • FFO per diluted share, as adjusted, was $0.26 for the first quarter 2020, compared with $0.30 per share for the first quarter 2019. First quarter 2020 FFO per share was impacted by $0.02 per share of dilution from asset sales completed since the prior-year period and $0.07 per share of lower property NOI offset by $0.02 per share lower interest expense and $0.02 per share lower net G&A expense.
  • Same-center sales per square foot for the twelve-months ended February 29, 2020, increased 3% to $392 per square foot compared with the prior-year period ended February 28, 2019. The majority of stores in the CBL portfolio closed during the month of March 2020, which resulted in a decline in reported same-center sales per square foot for the month of 45% compared with the prior year month.
  • Total Portfolio same-center NOI declined 8.7% for the three months ended March 31, 2020, as compared with the prior‑year period.
  • Portfolio occupancy as of March 31, 2020, was 89.5%, representing a 180-basis point decline compared with 91.3% as of March 31, 2019. Same-center mall occupancy was 87.8% as of March 31, 2020, a 200-basis point decline compared with 89.8% as of March 31, 2019.

Headline financials

Total Revenue

$168M

Previous: $198M-15.4%
EPS (adj)

-$0.75

Previous: -$0.29-158.6%
Portfolio Occupancy

89.5%

Previous: 91.3%-2.0%
Same-Center Occupancy

87.8%

Previous: 89.8%-2.2%
Same-Center NOI Growth

-8.7%

No prior period
Capital Expenditures

-$22.8M

Previous: -$26.4M+13.9%
Free Cash Flow

-$145M

Previous: -$65.4M-122.4%
Net Income

-$123M

Previous: -$39M-214.7%
Operating Income

$8.96M

Previous: -$110M+108.1%
Gross Profit

$131M

Previous: $156M-16.4%
Cash & Equivalents

$159M

Previous: $21.1M+655.7%
Total Assets

$4.72B

Previous: $5.16B-8.5%
R&D Expense

$0.00

Previous: $0.00

Revenue & EPS history

CBL & Associates · Revenue · Quarterly

$168M

Q1 2020-15.4%vs Q1 2019
Beat estimate in 10 of 13 quarters(77%)
ActualEstimate

Revenue by segment

CBL & Associates · $133M total across 2 segments · Q1 2023

  • Rental Revenues
    $130M-3.7%
  • Mgmt/Dev/Leasing Fees
    $2.43M+37.6%

Forward guidance

Due to the extraordinary governmental actions taken to contain COVID-19, the Company is unable to predict the full extent of the pandemic’s impact to the Company’s results of operations for the remainder of 2020. As a result, on March 25, 2020, CBL withdrew its full-year 2020 FFO per share, as adjusted, guidance and underlying assumptions and does not plan to reinstate full-year 2020 guidance until there is further clarity on the financial impact of the pandemic.

Tailwinds

  • The majority of the properties in our portfolio closed during March due to government mandates. As of May 25th, 66 of 68 CBL owned or managed malls have re-opened, subject to certain health and safety restrictions, including a dozen properties that are offering curbside or exterior-only service.
  • As properties re-open, we have worked in cooperation with our tenants to institute strict guidelines, following CDC and health department recommendations, to help ensure the safety of our employees, tenants and customers.
  • We anticipate a significant portion of April and May rents will be collected later in 2020 and into 2021 under agreed upon deferral plans.
  • We announced significant steps to improve our liquidity position, including drawing down the available amount on our line of credit.
  • We have been successful in deferring or halting approximately $60 - $80 million in planned capital expenditures, including redevelopment investments, for 2020.

Headwinds

  • The COVID-19 pandemic significantly shifted our expectations for the remainder of the year.
  • For the month of April, we received approximately 27% of billed cash rents. We estimate a collection rate for the month of May in the range of 25-30% based on preliminary cash receipts and conversations with retailers.
  • The majority of our tenants requested rent relief, either in the form of rent deferrals or abatements.
  • We have placed a number of tenants in default for non-payment of rent.
  • Negotiations are ongoing, and it is premature to estimate a recovery rate at this time.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 17 quarterly earnings reports

Historical avg

+0.3%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-1.4%

Avg return

30 days after

50%

9 / 18 earnings

Positive

+7.0%

Q1 2022

Best reaction

-4.7%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2025———
Q1 2026+0.1%+4.1%+10.1%
Q4 2025-3.6%+1.6%+1.5%
Q3 2025+4.2%+4.2%+13.6%
Q1 2025+0.1%-2.0%-4.1%
Q4 2024+0.2%+0.2%-14.6%
Q3 2024-0.1%-1.2%+11.6%
Q2 2024+2.1%+3.0%+2.9%
Q1 2024-1.2%-1.1%+1.8%
Q4 2023-4.7%-2.7%-5.6%
Q3 2023+1.5%+6.8%+9.1%
Q2 2023+3.0%+0.8%-1.1%
Q1 2023-1.1%-5.1%+2.0%
Q4 2022-2.6%-4.6%-9.1%
Q3 2022-0.1%-1.7%-13.7%
Q2 2022-0.5%-2.9%-6.4%
Q1 2022+7.0%+2.0%+0.1%
Q4 2021+1.3%-0.9%-10.5%
Q3 2021-1.1%-4.9%-11.9%
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