Copper Property CTL Pass Through Trust Reports Decline in Net Income and Lease Income for Q3 2025

Copper Property CTL Pass Through Trust reported its financial results for the third quarter of 2025, revealing a significant decline in net income and lease income compared to the same period in 2024. For the three months ended September 30, 2025, the Trust generated net income of $1.29 million, or $0.02 per certificate, down from $16.44 million, or $0.22 per certificate, in the prior year. Lease income also decreased to $24.21 million from $24.99 million year-over-year. For the nine months ending September 30, 2025, net income was $39.56 million, or $0.53 per certificate, compared to $52.09 million, or $0.69 per certificate, in the same period of 2024.

The Trust's financial performance was impacted by the disposition of thirteen retail properties between January 1, 2024, and September 30, 2025, which contributed to a decrease in lease income of $2.38 million for the nine-month period. Additionally, the Trust recognized an impairment charge of $10.67 million during the nine months ended September 30, 2025, compared to $2.08 million in the same period of the previous year. Operating expenses increased slightly, while general and administrative expenses rose significantly due to legal fees related to various Trust amendments.

In terms of operational developments, the Trust's real estate portfolio consisted of 117 retail properties as of September 30, 2025, down from 121 properties at the end of 2024. The properties span 15.5 million square feet across 35 U.S. states and Puerto Rico. The Trust has entered into a binding purchase and sale agreement for the sale of all remaining retail properties for a total price of $947 million, with the closing date extended to December 8, 2025. This agreement follows the sale of two properties in September 2025 for a total of $12.4 million.

The Trust's total assets decreased to $1.07 billion as of September 30, 2025, from $1.14 billion at the end of 2024, primarily due to the reduction in investment properties and the impairment charge. Total equity also fell to $954.94 million from $1.01 billion. The Trust's cash and cash equivalents stood at $48.91 million, down from $51.89 million at the end of the previous year. The Trust continues to monitor economic conditions, including inflation and interest rate fluctuations, which could impact its operations and financial performance.

Looking ahead, the Trust anticipates that cash flows from the sale of its remaining properties, along with reserves, will provide adequate capital for its cash requirements over the next 12 months. The Trust plans to distribute net sales proceeds to certificate holders following the completion of the property sales, with the final distribution expected to occur prior to its dissolution.