Noteworthy Stock: CBL & Associates Properties, Inc (NYSE: CBL

Shares of CBL & Associates Properties, Inc (NYSE: CBL) closed the trading at a price of $3.52 with the positive/negative change of +2.62%. In the past session approximately 3,421,267 shares were exchanged against the average daily trading volume of 3,361,183 shares. The stock market capitalization has now valued at $702.008M. The one year high of the company is $8.79 and the one year low is $3.29.

CBL Properties (CBL) reported results for the second quarter ended June 30, 2018. A description of each supplemental non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is located at the end of this news release.

KEY TAKEAWAYS:

• FFO per diluted share, as adjusted, was $0.46 for the second quarter 2018, contrast with $0.50 per share for the second quarter 2017. Second quarter 2018 FFO per share was influenced by about $0.01 per share of dilution from asset sales completed in 2017 and year-to-date, $0.07 per share of lower property NOI, $0.02 per share higher corporate interest expense, $0.03 per share lower property level interest expense, $0.01 lower G&A expense and $0.02 per share lower abandoned project expense.
• Total Portfolio Same-center NOI declined 6.9% for the second quarter 2018 and 6.8% for the six-months ended June 30, 2018.
• Portfolio occupancy was 91.1% as of June 30, 2018, contrast with 91.6% as of June 30, 2017. Same-center mall occupancy was 89.5% as of June 30, 2018 contrast with 90.4% as of June 30, 2017.
• Year-to-date, CBL has completed gross asset sales of $38.3M including the sale of a Tier 3 mall for a gross sales price of $18.0M in July.
• Same-center sales per square foot for the stabilized mall portfolio for the twelve-months ended June 30, 2018, were $376 per square foot contrast with $375 per square foot for the prior-year period.
• Redevelopment activity is underway at eight properties with two redevelopment projects opened during the quarter and two new projects added to the pipeline.

Net loss attributable to ordinary shareholders for the second quarter 2018 was $35.0M, or a loss of $0.20 per diluted share, contrast with net income of $30.2M, or $0.18 per diluted share, for the second quarter 2017. Net loss attributable to ordinary shareholders for the second quarter 2018 included a $52.0M loss on impairment of Cary Towne Center, primarily related to the accelerated maturity of the non-recourse loan secured by the property.

FFO allocable to ordinary shareholders, as adjusted, for the second quarter 2018 was $80.2M, or $0.46 per diluted share, contrast with $85.6M, or $0.50 per diluted share, for the second quarter 2017. FFO allocable to the Operating Joint Venture ordinary unit holders, as adjusted, for the second quarter 2018 was $92.8M contrast with $99.7M for the second quarter 2017.

FINANCING ACTIVITY

In April, CBL, together with its 50% joint venture partner, closed on a $155.0M ($77.5M at CBL’s share) non-recourse loan secured by CoolSprings Galleria in Nashville, TN. The 10-year loan bears interest at a fixed rate of 4.839%.

Proceeds from the loan were used to retire the existing $97.7M loan, which bore interest at a fixed rate of 6.98% and was planned to mature in June. CBL’s share of nearly $29.0M in excess proceeds was utilized to reduce outstanding balances on its unsecured lines of credit.

In May, CBL completed the extension of the $56.7M ($28.4M at CBL’s share) loan secured by The Pavilion at Port Orange in Port Orange, FL, and the $58.2M ($29.1M at CBL’s share) loan secured by Hammock Landing in West Melbourne, FL. Both loans were originally planned to mature in February 2019. The loans were extended for an initial term of three years, with two one-year extensions accessible at the Company’s option, for a final maturity in February 2023. The new loans bear interest at 225 basis points over LIBOR, an raise of 25 bps over the previous rate.

 

A look on the firm performance, its monthly performance is -18.71% and a quarterly performance of -32.05%. The stock price is moving down from its 20 days moving average with -10.82% and isolated negatively from 50 days moving average with -17.09%.