CBL & ASSOCIATES PROPERTIES INC (CBL)

CBL & Associates Properties, Inc. is a self-managed, self-administered, fully integrated real estate investment trust (REIT) that owns, develops, acquires, leases, manages and operates regional shopping malls, outlet centers, lifestyle centers, open-air centers and other properties. Its properties are located in 22 states, primarily in the southeastern and midwestern United States. It conducts substantially all of its business through CBL & Associates Limited Partnership, the Operating Partnership, in which it held a combined 99.98% interest at December 31, 2023. Property management and development activities are carried out through CBL & Associates Management, Inc. The company emerged from Chapter 11 reorganization on November 1, 2021, after filing in November 2020.

The portfolio is divided into Malls (malls, lifestyle centers and outlet centers) and All Other Properties (open-air centers and other property types such as office buildings, outparcels and hotels). Approximately 30% of 2023 same-center net operating income came from non-enclosed mall assets. Revenue comes mainly from leases with retail tenants, including fixed minimum rents, percentage rents based on tenant sales, and reimbursements for real estate taxes, insurance, common area maintenance and certain capital expenditures. The company also earns management, leasing and development fees, sponsorship revenue, and proceeds from sales of peripheral land and operating real estate. Its strategy emphasizes growing NOI through contractual rent increases, leasing and tenant-mix improvement, short-term and ancillary income, redevelopment of former anchor space, and densification of parking fields and land, largely for non-retail uses. It also pursues active portfolio management and asset recycling, and a balance sheet strategy focused on reducing debt, extending maturities and lowering borrowing costs.

Its customers are retail and non-retail tenants in strong mid-tier markets, with a focus on the growing Southeast and Midwest. The largest tenants by share of revenue include Signet Jewelers, Victoria's Secret, Dick's Sporting Goods, American Eagle Outfitters, Bath & Body Works, Luxottica, Spencer Spirit, Claire's, TJX Companies, Barnes & Noble, H&M, Ulta, The Children's Place, Focus Brands and Abercrombie & Fitch. The business is somewhat seasonal, with occupancy, percentage rents and temporary rents generally highest in the fourth quarter because of holiday sales.

The company competes with other shopping facilities for retail tenants, and its tenants face competition from online shopping, discount centers, outlet centers, wholesale clubs, direct mail, television shopping networks and other retail developments. CBL has no employees other than its statutory officers. At December 31, 2023, its Management Company had 396 full-time and 73 part-time employees, none represented by a union. An ESG Steering Committee leads sustainability efforts, with oversight by the board's Nominating/Corporate Governance Committee. The company's authorized capital consists of 200,000,000 common shares, of which 31,975,645 were outstanding at year-end 2023, and 15,000,000 preferred shares, none outstanding.