CBL & Associates Properties Reports Q2 2025 Revenue Growth but Decline in Net Income

CBL & Associates Properties, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $140.9 million, a 8.5% increase from $129.7 million in the same period last year. The growth was primarily driven by a $12.4 million rise in rental revenues, which reached $136.5 million, compared to $124.1 million in the prior year. However, the company experienced a decline in net income, which fell to $2.2 million from $4.3 million year-over-year. This decrease was attributed to higher expenses, including a $4.6 million increase in interest expenses and a $2.0 million rise in real estate taxes.

For the first half of 2025, CBL's total revenues increased to $282.7 million, up from $258.8 million in the same period of 2024. The company reported a net income of $10.5 million, significantly higher than the $3.8 million recorded in the previous year. The increase in net income was bolstered by a $19.2 million gain on sales of real estate assets, which included the sales of several properties, such as the Imperial Valley Mall and Monroeville Mall.

Strategically, CBL has made significant moves to enhance its portfolio, including the acquisition of four Macy's stores for $6.2 million in January 2025 and the recent acquisition of four enclosed malls for $178.9 million, known as the WPG acquisition. This acquisition is expected to generate immediate cash flow and improve the overall quality of CBL's portfolio. The company also announced a 12.5% increase in its regular common dividend to an annualized rate of $1.80 per share, reflecting confidence in its financial stability and growth prospects.

Operationally, CBL's total assets decreased to $2.6 billion as of June 30, 2025, down from $2.7 billion at the end of 2024. The company reported a total debt of $2.1 billion, a reduction from $2.2 billion at the end of the previous year. CBL's cash and cash equivalents increased to $100.3 million, up from $40.8 million, indicating improved liquidity. The company also reported a total portfolio occupancy rate of 88.8%, slightly up from 88.7% a year earlier, with notable increases in occupancy rates for outlet centers and lifestyle centers.

Looking ahead, CBL aims to continue its strategy of optimizing its portfolio through acquisitions and dispositions while focusing on improving occupancy and diversifying its tenant mix. The company remains cautious about market conditions, including interest rate fluctuations and competition from online retail, but believes its current strategies will contribute to stabilization and growth in revenues in the coming years.