CBL & Associates Properties Inc · Q1 2021 earnings

Briefing

CBL Properties reported results for the first quarter of 2021, showing improvement in FFO, as adjusted, per diluted share, driven by a decline in net interest expense, while same-center NOI declined due to lower revenues.

CBL Properties reported a net loss attributable to common shareholders of $26.8 million, or a loss of $0.14 per diluted share, for the three months ended March 31, 2021. FFO, as adjusted, per diluted share, was $0.34, compared with $0.26 per share for the first quarter 2020. Total Portfolio same-center NOI declined 17.2%. Portfolio occupancy was 85.4%.

• FFO, as adjusted, per diluted share, was $0.34 for the first quarter 2021, compared with $0.26 per share for the first quarter 2020. The increase in FFO, as adjusted, per diluted share, as compared with the prior year period is principally a result of the decline in net interest expense of $0.11 per share during the quarter, primarily due to the post-petition interest expense payments that are not required to be made on the senior unsecured notes and secured credit facility subsequent to the Company’s bankruptcy filing on November 1, 2020.
• Other major variances in the first quarter 2021 FFO, as adjusted, per diluted share, compared with the prior year period included $0.13 per share of lower property NOI, which included $0.04 per share related to the estimate for uncollectable revenues, rent abatements and write-offs for past due rents related to tenants that are in bankruptcy or struggling financially. G&A expense during the first quarter 2021 was approximately $0.03 lower, due to cost saving initiatives put in place earlier in 2020.
• Sales for the first quarter 2021 increased 12.5% as compared with the first quarter 2019.
• Total Portfolio same-center NOI declined 17.2% for the three months ended March 31, 2021.
• Portfolio occupancy as of March 31, 2021, was 85.4%, representing a 410-basis point decline compared with 89.5% as of March 31, 2020. Same-center mall occupancy was 83.2% as of March 31, 2021, representing a 480-basis point decline compared with 88.0% as of March 31, 2020. An estimated 390-basis points of the decline in total mall portfolio occupancy was due to store closures related to tenants in bankruptcy.

Headline financials

Revenue & EPS history

CBL is not providing guidance for 2021 anticipated net income and FFO per share at this time.