CBL & Associates Properties, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, reflecting a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, total revenues decreased to $125.1 million from $129.4 million in the same period of 2023, primarily due to a decline in rental revenues, which fell to $120.0 million from $124.8 million. This decrease was attributed to lower minimum and percentage rents, linked to tenant closures and reduced tenant sales. Despite the revenue decline, net income for the quarter increased to $15.8 million, up from $12.9 million in the prior year, driven by lower depreciation and amortization expenses, reduced interest expenses, and a significant gain on sales of real estate assets, which rose to $12.8 million from $3.4 million.

For the nine months ended September 30, 2024, total revenues were $383.9 million, down from $395.6 million in 2023. Rental revenues for this period also decreased to $368.1 million from $379.9 million. However, net income for the nine months turned positive at $19.6 million, compared to a net loss of $9.3 million in the same period of 2023. This turnaround was supported by a $16.5 million gain on sales of real estate assets, compared to $4.9 million in the previous year, and a $16.0 million increase in equity earnings from unconsolidated affiliates.

The company’s balance sheet showed improvements, with cash and cash equivalents increasing to $65.1 million from $34.2 million at the end of 2023. Total liabilities decreased to $1.95 billion from $2.08 billion, while total shareholders' equity fell to $308.3 million from $339.3 million. The company reported a loss on impairment of $836,000 for the nine months ended September 30, 2024, contrasting with no such loss in the previous year.

Strategically, CBL focused on improving occupancy and driving rent growth through re-tenanting and diversification of in-line tenancy. The company also completed several property dispositions, including the Layton Hills Mall and related properties, generating approximately $74.2 million in gross proceeds, which were utilized to pay down debt. The company’s share repurchase program was completed in September 2024, with a total of 1,074,826 shares repurchased.

Overall, CBL & Associates Properties, Inc. demonstrated resilience in profitability despite revenue challenges, supported by strategic asset management and cost reductions.