third quarter 2026
Filed Nov 5, 2026CBL Properties Reports Third Quarter 2026 Results and Raises Full-Year Guidance
Same-center NOI increased 3.8%, adjusted FFO per diluted share increased to $1.90 from $1.55, portfolio occupancy reached 91.5%, and management raised 2026 FFO, as adjusted, and same-center NOI guidance. Higher interest expense, non-cash default interest expense, and debt-resolution activity remain material offsets.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30, 2026GAAP | $148.7M | – | – |
| Rental revenues, three months ended September 30, 2026GAAP | $143.9M | – | – |
| Management, development and leasing fees, three months ended September 30, 2026GAAP | $1.60M | – | – |
| Other revenues, three months ended September 30, 2026GAAP | $ 3,233 | – | – |
| Total expenses, three months ended September 30, 2026GAAP | −$102.7M | – | – |
| Property operating expense, three months ended September 30, 2026GAAP | $ (27,341 ) | – | – |
| Depreciation and amortization, three months ended September 30, 2026GAAP | −$35.08M | – | – |
| Real estate taxes, three months ended September 30, 2026GAAP | −$14.73M | – | – |
| Maintenance and repairs, three months ended September 30, 2026GAAP | −$11.38M | – | – |
| General and administrative expense, three months ended September 30, 2026GAAP | $ (14,204 ) | – | – |
| Interest expense, three months ended September 30, 2026GAAP | −$66.13M | – | – |
| Gain on sales of real estate assets, three months ended September 30, 2026GAAP | $5.39M | – | – |
| Equity in earnings of unconsolidated affiliates, three months ended September 30, 2026GAAP | $17.25M | – | – |
| Net income, three months ended September 30, 2026GAAP | $11.85M | – | – |
| Net income attributable to common shareholders, three months ended September 30, 2026GAAP | $11.35M | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $ 0.37 | – | – |
| FFO per diluted share, three months ended September 30, 2026non-GAAP | $ 1.05 | – | – |
| FFO, as adjusted, per diluted share, three months ended September 30, 2026non-GAAP | $ 1.90 | – | 23% |
| Total same-center NOI, three months ended September 30, 2026non-GAAP | $96.20M | – | 3.8 % |
| Total portfolio occupancy as of September 30, 2026other | 91.5% | 110 bps sequentially | 130 bps |
| Same-center sales per square foot for the trailing twelve months ended September 30, 2026other | $ 463 | – | 3.6% |
| Cash flows provided by operating activities, three months ended September 30, 2026GAAP | $91.12M | – | – |
| Total capital expenditures, three months ended September 30, 2026other | $25.15M | – | – |
| Total revenues, nine months ended September 30, 2026GAAP | $441.1M | – | – |
| Net income attributable to common shareholders, nine months ended September 30, 2026GAAP | $102.3M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 3.31 | – | – |
| FFO per diluted share, nine months ended September 30, 2026non-GAAP | $ 5.76 | – | – |
| FFO, as adjusted, per diluted share, nine months ended September 30, 2026non-GAAP | $ 5.52 | – | 12% |
| Total same-center NOI, nine months ended September 30, 2026non-GAAP | $285.0M | – | 2.6 % |
| Cash flows provided by operating activities, nine months ended September 30, 2026GAAP | $224.3M | – | – |
| Total capital expenditures, nine months ended September 30, 2026other | $52.74M | – | – |
| Company's share of consolidated, unconsolidated and other debt as of September 30, 2026other | $ 2,503,974 | – | – |
| Company's share of consolidated, unconsolidated and other debt, net, as of September 30, 2026other | $ 2,417,085 | – | – |
| Weighted-average interest rate on company's share of consolidated, unconsolidated and other debt as of September 30, 2026other | 6.44 % | – | – |
| Cash and cash equivalents as of September 30, 2026GAAP | $ 60,955 | – | – |
| Available-for-sale securities at fair value as of September 30, 2026GAAP | $ 289,937 | – | – |
| Mortgage and other indebtedness, net, as of September 30, 2026GAAP | $ 2,025,450 | – | – |
full-year 2026 outlook
- Note2026 Net Income (in millions): $ 112.1 to $ 115.2
- Note2026 FFO, as adjusted (in millions): $ 226.7 to $ 229.8
- Note2026 WA Share Count: 30.9 to 30.9
- Note2026 FFO, as adjusted, per share: $ 7.34 to $ 7.44
- Note2026 Same-Center NOI ("SC NOI") (in millions): $ 386.3 to $ 392.1
- Note2026 change in same-center NOI: 0.75 % to 2.25 %
- NoteExpected diluted earnings per common share: $ 3.63 to $ 3.73
- Note2026 Estimated maintenance capital/tenant allowances: $ 55.0 to $ 65.0
- Note2026 Estimated development/redevelopment expenditures: 5.0 to 7.0
- Note2026 Estimated principal amortization (including est. term loan ECF): 58.0 to 63.0
- NoteTotal Estimate: $ 118.0 to $ 135.0
Capital returns
- On October 14, 2026, CBL announced a cash dividend of $0.625 per common share for the quarter ending December 31, 2026.
- The dividend equates to an annual dividend payment of $2.50 per common share.
- The dividend is payable on December 31, 2026, to shareholders of record as of December 14, 2026.
- On November 4, 2026, CBL's Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $25.0 million of its common stock.
- Year-to-date, CBL has generated gross sales proceeds at CBL’s share of more than $101.3 million.
What drove it
- Same-center NOI for Q3 2026 increased $3.5 million, with rental revenue growth of $6.4 million driven by higher occupancy and a $0.4 million increase in percentage rent.
- More than 930,000 square feet of leases were signed in Q3 2026, including approximately 460,000 square feet of comparable new and renewal leases signed at a 6.8% increase in average gross rents versus prior rents.
- New leases for malls, lifestyle centers and outlet centers carried a 27.0% increase in average gross rent per square foot, while renewal leases increased 2.0%.
- Portfolio occupancy was 91.5% as of September 30, 2026, and mall occupancy increased 210 basis points year over year despite bankruptcy-related store closures of approximately 68,000 square feet.
- Same-center tenant sales per square foot for the rolling 12 months ended September 30, 2026 were $463, up 3.6%.
- The West County Center refinancing removed the cash management sweep and unlocked more than $7.0 million of annual free cash flow.
Concerns
- Interest expense was $ (66,127 ) in the third quarter, compared with $ (44,779 ) in the prior-year period.
- The three months ended September 30, 2026 included $25,342 of non-cash default interest expense in the FFO reconciliation.
- Total operating expense during the third quarter increased $2.6 million, reflecting $1.5 million higher maintenance and repair expense and $1.5 million higher real estate taxes, partially offset by $0.4 million lower property operating expense.
- Management stated that fourth quarter comparisons will reflect tax refunds and bad debt recoveries recognized in the prior-year period.
- CBL intends to cooperate with the sale, foreclosure or conveyance of properties associated with six non-recourse loans aggregating approximately $266.7 million at CBL's share.
- After the West County Center refinancing, CBL owned interests in 10 assets with a pro rata share debt balance of $565,729 that had 100% of property cash flows restricted under their loan agreements.
What to watch
- Execution against full-year 2026 FFO, as adjusted, guidance of $ 7.34 to $ 7.44 per share.
- Delivery of full-year 2026 same-center NOI growth guidance of 0.75 % to 2.25 %.
- Leasing spreads, occupancy progression and same-center tenant sales per square foot.
- Resolution of lender-directed sales, foreclosure or conveyance processes and the effect on debt and portfolio composition.
- The expected November closing of Eastland Mall's sale for $11.3 million, subject to customary closing conditions.
- Capital deployment under the newly authorized $25.0 million stock repurchase program.
Balance sheet and cash flow
- As of September 30, 2026, the Company had $366.7 million of unrestricted cash and marketable securities, including CBL's share of joint venture cash of $15.8 million.
- Restricted cash as of September 30, 2026 was $ 102,750.
- Cash flows provided by operating activities were $ 224,307 for the nine months ended September 30, 2026, compared with $ 169,520 for the prior-year period.
- The company closed nearly $1.0 billion of new financings year-to-date.
- In October, CBL closed a $135.0 million refinancing of West County Center with a five-year term and a fixed interest rate of 7.4%.
- Six non-recourse loans aggregating approximately $266.7 million (at CBL's share) are in the process of being resolved through lender-directed sale, foreclosure or conveyance.
Analysis
CBL reported stronger underlying property operations in the third quarter. Total same-center NOI was $ 96,205, up from $ 92,708, while adjusted FFO per diluted share was $ 1.90 versus $ 1.55. Portfolio occupancy reached 91.5%, compared with 90.2% a year earlier, and same-center sales per square foot for the trailing twelve months rose to $ 463 from $ 447. Leasing activity supported the result, with more than 930,000 square feet signed during the quarter and comparable new and renewal lease spreads of 6.8%.
Revenue growth was led by rental revenues of $ 143,865 versus $ 134,786. Management attributed the $6.4 million increase in same-center rental revenue to higher occupancy and a $0.4 million increase in percentage rent. Expense pressure was present: same-center operating expense rose $2.6 million, with higher maintenance and repair expense and real estate taxes. The estimate for uncollectable revenues favorably impacted the quarter by approximately $1.9 million.
GAAP results were materially below the prior-year quarter because the prior period included a much larger gain on sales of real estate assets and a gain on deconsolidation. Net income attributable to common shareholders was $ 11,345, compared with $ 74,267, and diluted EPS was $ 0.37 compared with $ 2.38. Interest expense increased to $ (66,127 ) from $ (44,779 ), while the adjusted FFO reconciliation included $25,342 of non-cash default interest expense. These items make the distinction between property-level operating performance and reported GAAP earnings particularly important this quarter.
The balance-sheet and capital-allocation update centered on refinancing, asset sales and shareholder returns. CBL closed nearly $1.0 billion of new financings year-to-date and refinanced West County Center in October with a $135.0 million, five-year loan at a fixed interest rate of 7.4%. The company also reported more than $101.3 million of gross sales proceeds at CBL's share year-to-date, declared a $0.625 per-share fourth-quarter dividend, and authorized a $25.0 million stock repurchase program. At the same time, several loans remain in lender-directed resolution processes, and property cash flows tied to 10 assets remain restricted under their respective loan agreements.
Management raised 2026 adjusted FFO guidance to $ 7.34 to $ 7.44 per share and forecasts same-center NOI growth of 0.75 % to 2.25 %. Volusia Mall was removed from the same-center pool because CBL is cooperating with the lender on a sale, foreclosure or conveyance. The guide reflects continued leasing and occupancy momentum, but management also flagged that fourth-quarter comparisons will reflect tax refunds and bad debt recoveries recognized in the prior-year period.
Management, verbatim
CBL delivered another quarter of excellent operating results, with third quarter same-center NOI growing by 3.8%.
Stephen D. Lebovitz, Chief Executive Officer of CBL Properties
Growth was driven by embedded rent increases, rental increases in renewal leasing and higher occupancy.
Stephen D. Lebovitz, Chief Executive Officer of CBL Properties
Our priority is to allocate capital in the way that creates the most long-term value for shareholders.
Stephen D. Lebovitz, Chief Executive Officer of CBL Properties
Not in the filing
stated, not guessed- Prior outlook or guidance was not provided, so comparison of reported results with prior guidance is unavailable.
- Operating income was not reported.
- Gross margin was not reported.
- Free cash flow was not reported.
- Quarterly cash flow from investing activities and financing activities was not reported.
- Revenue, gross margin, operating expenses and tax-rate guidance were not provided.
- Prior-quarter values for the reported quarterly metrics were not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.