Mon, May 5, 8:37 PM (7 days ago)
### CBL & Associates Properties, Inc. (CBL, NYSE) **Q1 2025 Financial Performance Summary:** **Revenue and Profit Margins:** - **Revenue:** $141.8 million, up from $129.1 million in Q1 2024, driven by increased rental revenues and gains from real estate sales. - **Net Income:** $8.4 million, a significant improvement from a loss of $0.5 million in Q1 2024. - **Profit Margins:** Improved profitability due to higher rental revenues and gains on real estate sales. **Cash Flow:** - **Operating Cash Flow:** $31.7 million, slightly higher than $30.7 million in Q1 2024. - **Investing Cash Flow:** $51.4 million, significantly higher than $26.8 million in Q1 2024, due to proceeds from real estate sales. - **Financing Cash Flow:** -$113.8 million, reflecting principal payments on debt and dividends paid. **Earnings Changes:** - **Earnings per Share (EPS):** $0.27, compared to -$0.01 in Q1 2024. - **Equity in Earnings:** $6.9 million, up from $4.6 million in Q1 2024. **Quarterly Performance Discussion:** - **Rental Revenues:** Increased by $13.3 million, primarily due to the consolidation of CoolSprings Galleria, Oak Park Mall, and West County Center. - **Operating Expenses:** Increased by $19.1 million, mainly due to higher property operating expenses and depreciation. - **Interest Expense:** Increased by $4.4 million, due to higher accretion of debt discounts and property-level interest expense. **Trends and Uncertainties:** - **Occupancy Rates:** Improved to 90.4% from 89.4% in Q1 2024. - **Leasing Activity:** New and renewal leases totaled 576,926 square feet, down from 1,146,801 square feet in Q1 2024. - **Debt Maturity:** $130.1 million in debt maturing in 2025, with a weighted-average interest rate of 5.93%. **Future Operations Impact:** - **Dividends:** Declared a regular quarterly dividend of $0.40 per share and a special dividend of $0.80 per share. - **Share Repurchase:** Authorized a $25.0 million share repurchase program. - **Capital Expenditures:** $13.2 million in capital expenditures, including tenant allowances and maintenance. **Market Risks:** - **Interest Rate Risk:** A 0.5% increase in interest rates would increase annual interest expense by approximately $4.4 million. - **Trade Disputes:** Potential impact from international trade disputes on tenant operations and costs. **Conclusion:** CBL & Associates Properties, Inc. (CBL) showed significant improvement in Q1 2025, with increased revenues, improved profitability, and higher cash flows. The company continues to focus on reducing debt, improving occupancy, and enhancing enterprise value. However, it faces uncertainties related to interest rates and international trade disputes.