Chattanooga-based shopping center developer CBL Properties reported positive first quarter operating funds on Monday and improved its outlook for the rest of the year.
Funds from operations, as adjusted, was $57.5 million, compared to $68.7 million from the same period a year ago, the company said.
But the change in adjusted operating funds from the prior year period reflects a significant increase in net operating income offset by an increase in interest expense attributable to senior unsecured notes and the facility. secured credit, the company said in a post-closing filing. steps. Interest payments on the notes and the credit facility were not required to be made during the first quarter of 2021 due to the company filing for bankruptcy on November 1, 2020.
Stephen D. Lebovitz, chief executive of CBL, said in a statement that first-quarter results underpinned strong operational and financial momentum in 2021, leading the operator of Hamilton Place and Northgate shopping centers in Chattanooga to raise its guidance for the whole year.
“Significant year-over-year occupancy gains along with positive tenant sales growth demonstrate the strength of our properties,” he said. “Percentage rents, short-term income and cash receipts were above expectations, contributing to a double-digit return on investment [net operating income] growth. While rental spreads in the first quarter were negative, we expect sequential improvement going forward, with higher occupancy and growing demand driving more favorable conditions. »
Net loss attributable to common shareholders for the three months ended March 31 was $40.7 million, compared to a net loss of $26.8 million a year ago, the company said.
However, the portfolio’s occupancy rate as of March 31 was 88.3%, which is an improvement from 85.4% as of March 31, 2021, according to CBL.
Lebovitz said improving CBL’s balance sheet is a key priority.
“We have made significant progress toward our goal of fully refinancing the secured notes, including the recently announced partial repayment,” he said. “Additionally, since our emergence, we have completed several attractive financings, modifications and favorable extensions. These transactions reduce borrowing costs, increase free cash flow and create greater financial flexibility.”
CBL’s revised full-year outlook shows funds from operations for 2022, as adjusted, in the range of $222 million to $237 million, or $7.18 to $7.67 per diluted share, which assumes same center net operating income of between $416 million and $430 million. , according to the company.
Shares of CBL on the New York Stock Exchange closed at $24.87 per share, down 62 cents, or 2.43%.
CBL owns and manages 95 properties in 24 states.
– Compiled by Mike Pare