CBL Properties Q3 2026 Earnings: Adjusted FFO Rises as Occupancy Improves

CBL Properties (NYSE: CBL) reported Q3 2026 same-center revenue of $144.0 million, up about 4.4% from $137.9 million, while GAAP net income attributable to common shareholders fell to $0.37 per share from $2.38 and adjusted FFO rose to $1.90 per share from $1.55. For the quarter ended September 30, 2026, same-center NOI increased 3.8% to $96.2 million and portfolio occupancy reached 91.5%, supported by higher occupancy and rents but partly offset by higher property expenses.

Core Performance

The per-share measures moved in different directions. GAAP net income and unadjusted FFO declined, while adjusted FFO increased 23%, indicating that items excluded from the adjusted measure had a significant effect on the reported results.

Same-center revenue growth did not fully translate into NOI growth because expenses increased faster. Rental revenue rose by $6.4 million, driven by higher occupancy and a $0.4 million increase in percentage rent. Same-center expenses increased by $2.6 million to $47.8 million, including $1.5 million increases in both maintenance and repairs and real estate taxes. A roughly $1.9 million favorable change in estimated uncollectible revenue provided a partial offset.

FFO and adjusted FFO are non-GAAP REIT performance measures and do not represent operating cash flow. CBL’s same-center NOI definition excludes lease termination fees and certain noncash items, including straight-line rent and above- and below-market lease amortization.

Business and Portfolio Performance

Total portfolio occupancy increased 130 basis points year over year and 110 basis points sequentially. Malls and outlets posted the largest year-over-year gains, while open-air center occupancy declined.

Mall occupancy increased despite approximately 68,000 square feet of bankruptcy-related store closures, which reduced mall occupancy by nearly 50 basis points.

CBL signed more than 930,000 square feet of leases during the quarter, including approximately 460,000 square feet of comparable new and renewal leases. Average gross rent on those comparable leases increased 6.8% from prior rents, and the total leasing activity added $4.6 million of net new annual rent.

Tenant sales also improved. Same-center tenant sales per square foot increased approximately 3.0% in the quarter, while trailing 12-month sales reached $463 per square foot, up 3.6% from $447.

Profitability, Cash Flow, and Balance Sheet

CBL ended the quarter with $366.7 million of unrestricted cash and marketable securities, including its $15.8 million share of joint venture cash. The company had completed nearly $1.0 billion of new financing year to date and reported no major maturities until 2028.

After quarter-end, CBL refinanced West County Center with a $135.0 million, five-year non-recourse loan carrying a fixed 7.4% interest rate. The transaction replaced a $136.4 million loan due in December 2026 and removed a cash management sweep, which management said unlocked more than $7.0 million of annual free cash flow. Across its year-to-date financing activity, management estimated that more than $45.0 million of annual free cash flow had been added. These figures are annual estimates rather than reported Q3 cash flow.

Asset sales generated more than $101.3 million of gross proceeds at CBL’s share year to date. At the same time, six non-recourse loans totaling approximately $266.7 million at the company’s share were being addressed through lender-directed sales, foreclosures or property conveyances. Completion of those processes would eliminate the associated debt but also remove the properties from CBL’s portfolio.

The board approved a Q4 dividend of $0.625 per common share, equivalent to $2.50 annually. It also authorized a stock repurchase program of up to $25.0 million on November 4, 2026.

Full-Year Guidance

CBL raised its 2026 adjusted FFO and same-center NOI outlook for the second time during the year. Volusia Mall was removed from the same-center pool because CBL is cooperating with its lender on a potential sale, foreclosure or conveyance.

The release did not provide the previous numerical ranges, so the size of the guidance increase cannot be calculated from the supplied information.

Recent Insider Transactions

Separate insider transaction data supplied for CBL show one purchase of 1,800 shares and 10 sales totaling 2,456,429 shares over the last six months. That produced net sales of 2,454,629 shares, compared with total reported insider holdings of 3.71 million shares.

The latest 10 reported records consisted of nine sales and one stock gift. The purchase included in the six-month aggregate was not among these 10 entries.

Risks Investors Need to Watch

• Property expense pressure: Maintenance and repair expense and real estate taxes each increased by $1.5 million in Q3. Continued cost growth could limit the amount of revenue growth that converts into NOI.
• More difficult Q4 comparisons: Management said the fourth quarter will be compared against tax refunds and bad debt recoveries recognized in the prior-year period, creating a less favorable comparison base.
• Tenant and occupancy risks: Bankruptcy-related closures reduced mall occupancy by nearly 50 basis points, while open-air center occupancy fell 100 basis points year over year despite the overall portfolio increase.
• Property-level debt resolutions: Six non-recourse loans totaling approximately $266.7 million at CBL’s share are in lender-directed resolution processes. The transactions are expected to eliminate associated debt, but their timing and completion will affect the company’s portfolio and reported results.

Summary

CBL’s Q3 2026 property operations benefited from higher occupancy, positive leasing spreads and improved tenant sales, lifting same-center NOI and adjusted FFO per share. Higher maintenance and tax expenses limited NOI conversion, while GAAP net income and unadjusted FFO remained well below the prior-year quarter. The main items to monitor are execution against the raised 2026 guidance, Q4 comparison pressure, property-level debt resolutions and whether leasing gains continue to support occupancy and rental revenue.