Earnings release
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CBL Properties Reports Strong Results For Second Quarter 2026 08/06/2026 Q2 2026 Results Reflect Higher Occupancy , Positive Lease Spreads , Same - Center NOI Growth ; Full - Year FFO and SC NOI Guidance Increased CHATTANOOGA , Tenn .-- ( BUSINESS WIRE ) -- CBL Properties ( NYSE : CBL ) announced results for the second quarter ended June 30 , 2026. Results of operations as reported in the consolidated financial statements for these periods are prepared in accordance with GAAP . A description of each supplemental non - GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is located at the end of this news release . Net income attributable to common shareholders Funds from Operations ( " FFO " ) FFO , as adjusted ( 1 ) Three Months Ended June 30 , Six Months Ended June 30 , 2026 2025 2026 2025 1.47 0.08 2.95 0.35 $ 1.93 $ 1.48 $ 4.71 $ 2.61 $ 1.89 1.86 $ 3.62 3.37 ( 1 ) For a reconciliation of FFO to FFO , as adjusted , for the periods presented , please refer to the footnotes to the Company's reconciliation of net income ( loss ) attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 8 of this news release . KEY TAKEAWAYS : • Same - center NOI for Q2 2026 and the six months ended June 30 , 2026 , increased 1.5 % and 2.2 % , respectively , compared with the prior - year periods . FFO , as adjusted , per share for Q2 2026 was $ 1.89 , compared with $ 1.86 per share for the prior - year period . FFO , as adjusted , per share for the six months ended June 30 , 2026 , was $ 3.62 compared with $ 3.37 per share for the prior - year period . Results for the quarter contributed to an increase in full - year 2026 guidance ( see Outlook and Guidance ) . • Leasing volume during the second quarter 2026 was robust , with nearly 1.3 million square feet of leases signed , including approximately 585,000 square feet of comparable new and renewal leases signed at an 8.8 % increase in average rents versus the prior rents . • Same - center tenant sales per square foot for the second quarter 2026 increased approximately 2.2 % as compared with the prior - year period . Same - center tenant sales per square foot for the rolling 12 - months ended June 30 , 2026 , of $ 455 , increased 3.9 % as compared with the prior - year period . • Portfolio occupancy was 90.4 % as of June 30 , 2026 , an increase of 160 bps from portfolio occupancy of 88.8 % as of June 30 , 2025. Bankruptcy - related store closures , representing approximately 76,000 square feet , negatively impacted mall occupancy by nearly 54 basis points compared with the prior - year period . • As of June 30 , 2026 , the Company had $ 322.7 million of unrestricted cash and marketable securities , including CBL's share of joint venture cash of $ 20.3 million . • On August 5 , 2026 , CBL's Board of Directors approved a dividend of $ 0.625 per common share for the third quarter of 2026 , representing an annual dividend of $ 2.50 per share . During the quarter , CBL generated gross proceeds from dispositions of nearly $ 60.0 million at CBL's share , including the sale of Hammock Landing , an open - air center in West Melbourne , FL , and the sale of land to multi - family developers at two properties . The disposition of undeveloped land represents opportunities where CBL has taken advantage of under - utilized parking lots and undeveloped parcels to add density to its market - dominant mall properties and realize the embedded value of land across its portfolio . " CBL posted excellent second quarter operational and financial results , building on the strong momentum generated in the first quarter , " said Stephen D. Lebovitz , Chief Executive Officer of CBL Properties . " The results were highlighted by a 1.5 % year - over - year increase in same - center NOI , supported by base rent escalations and higher occupancy levels .
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Leasing demand across our portfolio remained robust as we continued to diversify our tenant mix with new retail,dining, entertainment and experiential uses. During the quarter, we signed nearly 1.3 million square feet of new andrenewal leases, generating more than $8.1 million in additional annual rent. Comparable lease spreads averaged anincrease of 8.8%, with new leases achieving rent increases of 35% over prior rents, highlighting the mark-to-marketopportunity embedded in our portfolio. Portfolio occupancy ended the quarter at 90.4%, an improvement of 160 basispoints from a year ago, as our leasing team successfully executed on both anchor and small-shop merchandisingopportunities. “We have made significant progress transforming our balance sheet through refinancing activity completed year todate, including the refinancing of the $634 million legacy term loan in March. These transactions extended our maturityprofile, enhanced annual free cash flow and positioned CBL to invest in value-creating opportunities and increasereturns to shareholders. We closed on the sale of Hammock Landing in West Melbourne, Florida, at an 8% cap rate,which generated net proceeds to CBL of approximately $26.0 million. In addition, we realized significant value fromoutparcel and land sales this quarter, generating more than $19 million in proceeds, including sales to two multi-familydevelopers. Our cash balance at the end of the quarter is in excess of $320 million, providing strong liquidity andreserves for additional investment. "While we are closely watching the impact of macroeconomic factors on our business, we are encouraged by thequality and pace of our leasing pipeline and the progress we are making on the portfolio repositioning strategy that isdefining the next chapter of CBL. We were pleased to raise and tighten our full-year guidance range for FFO and NOI,reflecting the strength of our execution through the first half of the year. We remain focused on building furthermomentum, driving additional operational improvements across the portfolio and creating durable, long-term value forshareholders.” Same-center Net Operating Income (“NOI”) : Three Months Ended June 30, 2026 2025 Total Revenues $ 144,002 $ 142,369 Total Expenses $ (46,349) $ (46,152) Total portfolio same-center NOI $ 97,653 $ 96,217 Total same-center NOI percentage change 1.5% Estimate for uncollectable revenues (recovery) $ 1,240 $ 300 (1)CBL’s definition of same-center NOI excludes the impact of lease termination fees and certain non-cash items suchas straight-line rents and reimbursements, write-offs of landlord inducements and net amortization of above andbelow market leases. Same-center NOI for the second quarter 2026 increased $1.4 million. Rental revenue growth of $1.6 million was drivenby improvement in rental revenue from higher occupancy and a $0.4 million increase in percentage rent. Totaloperating expense during the second quarter increased $0.2 million. The net increase was a result of $1.2 millionhigher property operating expenses and $0.3 million higher maintenance and repair expense, offset by a $1.3 million (1)
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favorable impact from real estate taxes. The estimate for uncollectable revenues negatively impacted the quarter byapproximately $0.9 million. Six Months Ended June 30, 2026 2025 Total Revenues $ 287,043 $ 283,346 Total Expenses $ (95,268) $ (95,700) Total portfolio same-center NOI $ 191,775 $ 187,646 Total same-center NOI percentage change 2.2% Estimate for uncollectable revenues (recovery) $ 2,603 $ 1,219 Same-center NOI for the six months ended June 30, 2026, increased $4.1 million. A $1.1 million increase inpercentage rents and higher rental revenue from occupancy improvements and contractual rent escalation contributedto the $3.4 million increase in rental revenues. Total operating expense declined $0.4 million during the current period,primarily driven by the $2.7 million improvement in real estate taxes. Property operating expense increased $2.5million, while maintenance and repair expense declined $0.2 million. The estimate for uncollectable revenuesnegatively impacted the current period by approximately $1.4 million. PORTFOLIO OPERATIONAL RESULTS Occupancy : As of June 30, 2026 2025 Total portfolio 90.4% 88.8% Malls, lifestyle centers and outlet centers: Total malls 88.3% 86.2% Total lifestyle centers 92.7% 90.8% Total outlet centers 91.5% 91.2% Total same-center malls, lifestyle centers and outlet centers 88.9% 88.9% Open-air centers 95.0% 93.6% All Other Properties 94.5% 91.0% (1)
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(1)Occupancy for malls, lifestyle centers and outlet centers represent percentage of in-line gross leasable area under20,000 square feet occupied. Occupancy for open-air centers represents percentage of gross leasable areaoccupied New and Renewal Leasing Activity of Same Small Shop Space Less Than 10,000 Square Feet: % Change in Average Gross Rent Per Square Foot: Three Months EndedJune 30, Six Months EndedJune 30, 2026 2026 All Property Types 8.8% 7.5% Stabilized Malls, Lifestyle Centers and Outlet Centers 8.2% 7.1% New leases 35.7% 41.7% Renewal leases 3.1% 2.0% Open-air Centers 18.4% 17.6% Same-Center Sales Per Square Foot for In-line Tenants 10,000 Square Feet or Less: Sales Per Square Foot for the TrailingTwelve Months Ended June 30, 2026 2025 % Change Malls, lifestyle centers and outlet centers same-center sales per square foot $ 455 $ 438 3.9% DIVIDEND On August 5, 2026, CBL announced a cash dividend of $0.625 per common share for the quarter ending September30, 2026. The dividend equates to an annual dividend payment of $2.50 per common share. The dividend is payableon September 30, 2026, to shareholders of record as of September 15, 2026. FINANCING ACTIVITY Year-to-date, CBL has executed $925.1 million of financing activity, including the March refinancing of its $634.0 millionterm loan. The completed financings materially strengthened CBL's financial position, reduced near-term maturity risk,and unlocked more than $38 million of previously restricted cash flow. CBL's pro rata share of debt was reduced by$65.4 million compared with the prior period-end. Following these transactions, CBL's limited remaining debt maturitiesover the next few years are concentrated among some of the Company's highest-quality assets. As a result, CBL'sbalance sheet is well positioned and provides increased financial flexibility. Refinancing and Loan Modification Activity
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In August, CBL and its joint venture partner closed on the extension and modification of the $30.7 million loan (at100%) secured by The Outlet Shoppes at Laredo in Laredo, TX. At closing the loan balance was reduced by $850,000and the maturity extended through the end of November 2026. In May, CBL closed a $71.9 million non-recourse loan secured by Hamilton Place in Chattanooga, Tennessee. Thefive-year loan bears a fixed interest rate of 6.8% and replaces the property’s existing $85.5 million loan, which wasscheduled to mature in June. CBL also completed the refinancing of Fayette Mall, a dominant super-regional enclosed mall located in Lexington,Kentucky. The financing replaces the existing $98.6 million loan with a new $97.5 million, five-year non-recourse CMBSloan with a fixed interest rate of approximately 7.25%. The new loan’s more favorable amortization structure results inapproximately $5.0 million in additional cash flow to CBL. CBL closed on a modification of the $32.4 million loan secured by Volusia Mall in Daytona Beach, FL, in May,extending its maturity to October 2026. In April, CBL closed on a $43.0 million non-recourse loan secured by Northwoods Mall in N. Charleston, SC. The newfive-year loan bears a fixed interest rate of 9.1%. Proceeds from the loan, as well as approximately $7.5 million ofexisting escrows, were used to retire the existing $46.8 million loan secured by the property, which was scheduled tomature this month. Under the prior loan, cash flows have been swept by the lender since April 2021. The refinancing isexpected to release over $3.0 million of previously restricted cash flow. Additionally in April, CBL and its joint venture partner closed on a $6.6 million ($3.3 million at CBL's share) non-recourse, five-year loan secured by Coastal Grand Mall - Dick's Sporting Goods. In March, CBL successfully refinanced its existing $634.0 million term loan through two complementary transactionsincluding a $425.0 million non-recourse financing secured by a pool of primarily mall properties and a $176.1 millionfloating-rate bank loan primarily secured by a pool of strong open-air lifestyle centers. The financing resulted in anincrease in estimated annual free cash flow of more than $30 million. Other Financing Activity Four loans aggregating approximately $189.6 million (at CBL's share) of non-recourse mortgage debt are in theprocess of being resolved through lender-directed sale, foreclosure or conveyance. Once complete, these transactionswill eliminate the associated debt and simplify CBL’s portfolio and balance sheet. In February, Jefferson Mall in Louisville, KY, was placed into receivership and was deconsolidated due to the loss ofcontrol. CBL is cooperating with the lender to facilitate a foreclosure of the asset, which is secured by a $48.6 millionnon-recourse loan. In May, The Outlet Shoppes at Gettysburg in Gettysburg, PA, was placed into receivership. CBL is cooperating with thelender to facilitate a foreclosure of the asset, which is secured by a $9.7 million non-recourse loan (at CBL's share). CBL is in discussions with the lenders for Arbor Place Mall in Douglasville, GA ($83.0 million) and Parkdale Mall andCrossing in Beaumont, TX ($48.3 million), and intends to cooperate with the sale, foreclosure or conveyance of theproperties in satisfaction of the debt. TRANSACTION ACTIVITY Year-to-date, CBL has generated gross sales proceeds at CBL's share of more than $61.4 million. In May, CBL along with its joint venture partner, closed on the sale of Hammock Landing, a 397,000 square-foot open-air center in West Melbourne, FL, for $78.5 million, including the assumption of the $43.8 million loan. The sales ofHammock Landing at an 8% cap rate, along with the first quarter sale of related infrastructure bonds, generatedapproximately $26 million of cash proceeds to CBL. During the quarter, CBL generated approximately $19.2 million in gross proceeds from dispositions of six land parcelsand other outparcels including more than 15 acres of available land for multi-family development at two properties:CoolSprings Galleria in Nashville, TN and Harford Mall in Bel Air, MD. The sales are consistent with CBL’s ongoing
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strategy of unlocking value from underappreciated land and assets that can be redeployed into higher-yieldingopportunities. STOCK REPURCHASE PROGRAM On November 5, 2025, CBL's Board of Directors authorized a stock repurchase program for the Company to buy up to$25 million of its common stock. CBL has acquired 363,676 shares of CBL common stock for $12.0 million under theprogram since authorization. No shares were acquired during the second quarter. OUTLOOK AND GUIDANCE CBL is providing updated FFO, as adjusted, guidance for 2026 in the range of $7.15 - $7.25 per share. The guidancereflects transaction and financing activity completed year-to-date, including the impact of the Q2 '26 sale of HammockLanding and a gain on an outparcel sale closed in the second quarter. Management anticipates same-center NOI forfull-year 2026 in the range of 0.0% to 1.5%. Parkdale Mall and Crossing have been removed from the same-centerpool, reflecting CBL's cooperation with the lender on a sale, foreclosure or conveyance of the property. Low High 2026 Net Income (in millions) 2026 FFO, as adjusted (in millions) $ 221.7 $ 224.7 2026 WA Share Count 31.0 31.0 2026 FFO, as adjusted, per share $ 7.15 $ 7.25 2026 Same-Center NOI ("SC NOI") (in millions) $ 389.2 $ 395.0 2026 change in same-center NOI 0.0% 1.50% Reconciliation of GAAP Earnings Per Share to 2026 FFO, as Adjusted, Per Share: Low High Expected diluted earnings per common share $ 3.04 $ 3.14 Depreciation and amortization 4.97 4.97 Gain on depreciable property (0.77) (0.77) Expected FFO, per diluted, fully converted common share 7.24 7.34 Debt discount accretion, net of noncontrolling interests' share 0.60 0.60 Adjustment for unconsolidated affiliates with negative investment 0.59 0.59 Non-cash interest expense 0.05 0.05 Gain on deconsolidation (1.33) (1.33) (1)
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Expected FFO, as adjusted, per diluted, fully converted common share $ 7.15 $ 7.25 Reconciliation of Net Income to SC NOI (in millions): Low High Net income (loss) $ 100.0 $ 103.1 Adjustments : Depreciation and amortization 154.3 154.3 Gain on sales of depreciable property (24.0) (24.0) Adjustments for unconsolidated affiliates 20.2 20.2 Non-comparable property NOI (57.9) (57.9) Other (income) expenses, net 139.7 139.7 Non-property (income) expenses, net 56.9 59.6 Total Same-Center NOI $ 389.2 $ 395.0 (1) Adjustments are based on our Operating Partnership’s pro rata ownership share, including our share ofunconsolidated affiliates and excluding noncontrolling interests’ share of consolidated properties (2) GAAP adjustments for unconsolidated affiliates, including those with negative investment. (3) Property-level (income) expenses, net, that are not included in NOI, including but not limited to, interestexpense, gains on sales of non-depreciable real estate assets, straight-line rent and above- and below-market lease amortization. (4) Non-property (income) expenses, net, that are not included in NOI, including but not limited to, feeincome and general and administrative expenses. 2026 Estimate of Capital Items (in millions): Low High 2026 Estimated maintenance capital/tenant allowances $ 55.0 $ 65.0 2026 Estimated development/redevelopment expenditures 5.0 10.0 2026 Estimated principal amortization (including est. term loan ECF) 58.0 63.0 Total Estimate $ 118.0 $ 138.0 (1) Excludes amounts related to properties which have 100% of the cash flows from such propertiesrestricted under the terms of the respective loan agreements as further described on page 12 of the (1) (2) (3) (4) (1)
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Financial Supplement. ABOUT CBL PROPERTIES Headquartered in Chattanooga, TN, CBL Properties owns and manages a national portfolio of market-dominantproperties located in dynamic and growing communities. CBL’s owned and managed portfolio is comprised of 85properties totaling 54.8 million square feet across 23 states, including 54 high-quality enclosed malls, outlet centersand lifestyle retail centers as well as more than 20 open-air centers and other assets. CBL seeks to continuouslystrengthen its company and portfolio through active management, aggressive leasing and profitable reinvestment in itsproperties. For more information visit cblproperties.com. NON-GAAP FINANCIAL MEASURES Funds From Operations FFO is a widely used non-GAAP measure of the operating performance of real estate companies that supplements netincome (loss) determined in accordance with GAAP. The National Association of Real Estate Investment Trusts("NAREIT") defines FFO as net income (loss) (computed in accordance with GAAP) excluding gains or losses on salesof depreciable operating properties and impairment losses of depreciable properties, plus depreciation andamortization, and after adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests.Adjustments for unconsolidated partnerships and joint ventures and noncontrolling interests are calculated on thesame basis. We define FFO as defined above by NAREIT. The Company’s method of calculating FFO may be differentfrom methods used by other REITs and, accordingly, may not be comparable to such other REITs. The Company believes that FFO provides an additional indicator of the operating performance of its properties withoutgiving effect to real estate depreciation and amortization, which assumes the value of real estate assets declinespredictably over time. Since values of well-maintained real estate assets have historically risen with market conditions,the Company believes that FFO enhances investors’ understanding of its operating performance. The use of FFO asan indicator of financial performance is influenced not only by the operations of the Company’s properties and interestrates, but also by its capital structure. The Company believes FFO allocable to Operating Partnership common unitholders is a useful performance measuresince it conducts substantially all of its business through its Operating Partnership and, therefore, it reflects theperformance of the properties in absolute terms regardless of the ratio of ownership interests of the Company’scommon shareholders and the noncontrolling interest in the Operating Partnership. In the reconciliation of net income (loss) attributable to the Company’s common shareholders to FFO allocable toOperating Partnership common unitholders, located in this earnings release, the Company makes an adjustment toadd back noncontrolling interest in income (loss) of its Operating Partnership in order to arrive at FFO of the OperatingPartnership common unitholders. FFO does not represent cash flows from operations as defined by GAAP, is not necessarily indicative of cash availableto fund all cash flow needs and should not be considered as an alternative to net income (loss) for purposes ofevaluating the Company’s operating performance or to cash flow as a measure of liquidity. The Company believes that it is important to identify the impact of certain significant items on its FFO measures for areader to have a complete understanding of the Company’s results of operations. Therefore, the Company has alsopresented adjusted FFO measures excluding these items from the applicable periods. Please refer to the reconciliationof net income (loss) attributable to common shareholders to FFO allocable to Operating Partnership commonunitholders on page 8 of this news release for a description of these adjustments. Same-center Net Operating Income NOI is a supplemental non-GAAP measure of the operating performance of the Company’s shopping centers and otherproperties. The Company defines NOI as property operating revenues (rental revenues, tenant reimbursements andother income) less property operating expenses (property operating, real estate taxes and maintenance and repairs).
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The Company computes NOI based on the Operating Partnership’s pro rata share of both consolidated andunconsolidated properties. The Company believes that presenting NOI and same-center NOI (described below) basedon its Operating Partnership’s pro rata share of both consolidated and unconsolidated properties is useful since theCompany conducts substantially all of its business through its Operating Partnership and, therefore, it reflects theperformance of the properties in absolute terms regardless of the ratio of ownership interests of the Company’scommon shareholders and the noncontrolling interest in the Operating Partnership. The Company's definition of NOImay be different than that used by other companies and, accordingly, the Company's calculation of NOI may not becomparable to that of other companies. Since NOI includes only those revenues and expenses related to the operations of the Company’s shopping centerproperties, the Company believes that same-center NOI provides a measure that reflects trends in occupancy rates,rental rates, sales at the malls and operating costs and the impact of those trends on the Company’s results ofoperations. The Company’s calculation of same-center NOI excludes lease termination income, straight-line rentadjustments, amortization of above and below market lease intangibles and write-off of landlord inducement assets inorder to enhance the comparability of results from one period to another. A reconciliation of same-center NOI to netincome (loss) is located at the end of this earnings release. Pro Rata Share of Debt The Company presents debt based on the carrying value of its pro rata ownership share (including the carrying valueof the Company’s pro rata share of unconsolidated affiliates and excluding noncontrolling interests’ share ofconsolidated properties) because it believes this provides investors a clearer understanding of the Company’s totaldebt obligations which affect the Company’s liquidity. A reconciliation of the Company’s pro rata share of debt to theamount of debt on the Company’s condensed consolidated balance sheet is located at the end of this earningsrelease. Information included herein contains “forward-looking statements” within the meaning of the federal securities laws.Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracyand some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differmaterially from the events and results discussed in the forward-looking statements. The reader is directed to theCompany’s various filings with the Securities and Exchange Commission, including without limitation the Company’sAnnual Report on Form 10-K, and the “Management's Discussion and Analysis of Financial Condition and Results ofOperations” included therein, for a discussion of such risks and uncertainties. Consolidated Statements of Operations (Unaudited; in thousands, except per share amounts) Three Months EndedJune 30, Six Months EndedJune 30, 2026 2025 2026 2025 REVENUES: Rental revenues $142,014 $136,453 $283,387 $273,813 Management, development and leasing fees 1,159 1,357 2,768 2,674 Other 3,306 3,095 6,292 6,186 Total revenues 146,479 140,905 292,447 282,673
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EXPENSES: Property operating (25,797) (23,583) (54,030) (49,461) Depreciation and amortization (36,283) (39,702) (74,381) (85,243) Real estate taxes (14,055) (15,027) (28,121) (30,758) Maintenance and repairs (10,841) (10,372) (23,174) (23,838) General and administrative (14,782) (15,188) (33,369) (35,895) Loss on impairment — (1,457) — (1,457) Other — (30) 30 (30) Total expenses (101,758) (105,359) (213,045) (226,682) OTHER INCOME (EXPENSES): Interest and other income 3,089 3,164 6,449 6,632 Interest expense (42,716) (43,959) (82,615) (88,184) Loss on extinguishment of debt — — — (217) Gain on deconsolidation 5,925 — 41,259 — Gain on sales of real estate assets 13,633 1,339 15,035 22,871 Income tax (provision) benefit (642) (369) 588 102 Equity in earnings of unconsolidated affiliates 22,311 6,437 32,588 13,350 Total other income (expenses), net 1,600 (33,388) 13,304 (45,446) Net income 46,321 2,158 92,706 10,545 Net (income) loss attributable to noncontrollinginterests in: Operating Partnership (8) (2) (16) (8) Other consolidated subsidiaries 131 603 241 1,011 Net income attributable to the Company 46,444 2,759 92,931 11,548 Earnings allocable to unvested restricted stock (1,086) (192) (2,170) (769)
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Net income attributable to common shareholders $ 45,358 $ 2,567 $ 90,761 $ 10,779 Basic and diluted per share data attributable tocommon shareholders: Basic earnings per share $ 1.50 $ 0.08 $ 3.01 $ 0.35 Diluted earnings per share 1.47 0.08 2.95 0.35 Weighted-average basic shares 30,221 30,456 30,203 30,438 Weighted-average diluted shares 30,936 30,742 30,808 30,726 The Company's reconciliation of net income attributable to common shareholders to FFO allocable toOperating Partnership common unitholders is as follows: (in thousands, except per share data) Three MonthsEnded June 30, Six Months EndedJune 30, 2026 2025 2026 2025 Net income attributable to common shareholders $45,358 $ 2,567 $90,761 $10,779 Noncontrolling interest in income of Operating Partnership 8 2 16 8 Earnings allocable to unvested restricted stock (347) (524) (1,239) (493) Depreciation and amortization expense of: Consolidated properties 36,283 39,702 74,381 85,243 Unconsolidated affiliates 3,111 3,256 6,255 6,688 Non-real estate assets (227) (247) (440) (494) Noncontrolling interests' share of depreciation andamortization in other consolidated subsidiaries (322) (379) (675) (805) Loss on impairment, including our share of unconsolidatedaffiliates, net of taxes — 1,078 — 1,078 Gain on depreciable property, net of taxes (24,013) — (24,013) (21,706) FFO allocable to Operating Partnership common unitholders 59,851 45,455 145,046 80,298 Debt discount accretion, including our share ofunconsolidated affiliates and net of noncontrolling interests' 5,143 9,197 10,822 18,404
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share Adjustment for unconsolidated affiliates with negativeinvestment (1,781) 2,102 (4,665) 3,636 Non-cash default interest expense 1,042 517 1,589 880 Gain on deconsolidation (5,925) — (41,259) — Loss on extinguishment of debt — — — 217 FFO allocable to Operating Partnership common unitholders,as adjusted $58,330 $57,271 $111,533 $103,435 FFO per diluted share $ 1.93 $ 1.48 $ 4.71 $ 2.61 FFO, as adjusted, per diluted share $ 1.89 $ 1.86 $ 3.62 $ 3.37 Weighted-average common and potential dilutive commonunits outstanding 30,941 30,748 30,813 30,731 (1)In conjunction with the acquisition of the Company's partners' 50% joint venture interests in CoolSprings Galleria,Oak Park Mall and West County Center and the implementation of fresh start accounting upon emergence frombankruptcy, the Company recognized debt discounts equal to the difference between the outstanding balance ofmortgage notes payable and the estimated fair value of such mortgage notes payable. The debt discounts areaccreted as additional interest expense over the terms of the respective mortgage notes payable using the effectiveinterest method. (2)Represents the Company’s share of the earnings (losses) before depreciation and amortization expense ofunconsolidated affiliates where the Company is recognizing equity in earnings (losses) on a cash basis because itsinvestment in the unconsolidated affiliate is below zero. (3)The three and six months ended June 30, 2026 and 2025 include default interest on loans past their maturity date. (4)During the three months ended June 30, 2026, the Company deconsolidated The Outlet Shoppes at Gettysburg dueto a loss of control when the property was placed into receivership in connection with the foreclosure process.During the six months ended June 30, 2026, the Company deconsolidated Jefferson Mall and The Outlet Shoppesat Gettysburg due to a loss of control when the properties were placed into receivership in connection with theforeclosure process. (5)During the six months ended June 30, 2025, the Company made a partial paydown on the 2032 non-recourse bankloan and recognized loss on extinguishment of debt related to a prepayment fee. Three MonthsEndedJune 30, Six Months EndedJune 30, 2026 2025 2026 2025 (1) (2) (3) (4) (5)
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Diluted EPS attributable to common shareholders $ 1.47 $ 0.08 $ 2.95 $ 0.35 Add amounts per share included in FFO: Earnings allocable to unvested restricted stock (0.01) (0.02) (0.04) (0.02) Eliminate amounts per share excluded from FFO: Depreciation and amortization expense, including amountsfromconsolidated properties, unconsolidated affiliates, non-realestateassets and excluding amounts allocated to noncontrollinginterests 1.25 1.38 2.58 2.95 Loss on impairment, net of taxes — 0.04 — 0.04 Gain on depreciable property, net of taxes (0.78) — (0.78) (0.71) FFO per diluted share $ 1.93 $ 1.48 $ 4.71 $ 2.61 Three MonthsEndedJune 30, Six Months EndedJune 30, 2026 2025 2026 2025 SUPPLEMENTAL FFO INFORMATION: Lease termination fees $ 93 $ 438 $ 474 $ 1,401 Straight-line rental income adjustment $ 577 $ 824 $ 990 $ 431 Gain on outparcel sales, net of taxes $ 1,813 $ 1,954 $ 3,146 $ 2,720 Net amortization of acquired above- and below-market leases $(2,912) $(2,690) $(5,625) $(6,536) Income tax (provision) benefit $ (642) $ (369) $ 588 $ 102 (1) (1)
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Abandoned projects expense $ — $ (27) $ — $ (27) Interest capitalized $ 111 $ 137 $ 233 $ 250 Estimate of uncollectable revenues $(1,331) $ (731) $(2,939) $(1,553) As of June 30, 2026 2025 Straight-line rent receivable $26,016 $23,894 (1)The current-year presentation is based on effective ownership percentages in certain unconsolidated joint ventureswhile the prior-year period was based on stated ownership percentages. The difference between the effectiveownership and stated ownership percentages is due to differences in capital contributions between joint venturepartners and related preferred returns. Same-center Net Operating Income (Dollars in thousands) Three Months EndedJune 30, Six Months EndedJune 30, 2026 2025 2026 2025 Net income $ 46,321 $ 2,158 $92,706 $10,545 Adjustments: Depreciation and amortization 36,283 39,702 74,381 85,243 Depreciation and amortization from unconsolidatedaffiliates 3,111 3,256 6,255 6,688 Noncontrolling interests' share of depreciation andamortization in other consolidated subsidiaries (322) (379) (675) (805) Interest expense 42,716 43,959 82,615 88,184 Interest expense from unconsolidated affiliates 6,210 7,401 12,485 14,691
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Noncontrolling interests' share of interest expense in otherconsolidated subsidiaries (691) (1,098) (1,468) (2,112) Abandoned projects expense — 27 — 27 Gain on sales of real estate assets (13,633) (1,339) (15,035) (22,871) Gain on sales of real estate assets of unconsolidatedaffiliates (12,224) (832) (12,130) (1,867) Adjustment for unconsolidated affiliates with negativeinvestment (1,781) 2,102 (4,665) 3,636 Loss on extinguishment of debt — — — 217 Gain on deconsolidation (5,925) — (41,259) — Loss on impairment — 1,457 — 1,457 Income tax provision (benefit) 642 369 (588) (102) Lease termination fees (93) (438) (474) (1,401) Straight-line rent and above- and below-market leaseamortization 2,335 1,866 4,635 6,105 Net loss attributable to noncontrolling interests in otherconsolidated subsidiaries 131 603 241 1,011 General and administrative expenses 14,782 15,188 33,369 35,895 Management fees and non-property level revenues (3,467) (3,945) (7,513) (8,137) Operating Partnership's share of property NOI 114,395 110,057 222,880 216,404 Non-comparable NOI (16,742) (13,840) (31,105) (28,758) Total same-center NOI $ 97,653 $96,217 $191,775 $187,646 Total same-center NOI percentage change 1.5% 2.2% (1)The Company has reclassified amounts from management fees and non-property level revenues to the identifiedline items to conform to the current-year presentation. The current-year presentation is based on effective ownershippercentages in certain unconsolidated joint ventures while the prior-year period was based on stated ownershippercentages. The difference between the effective ownership and stated ownership percentages is due todifferences in capital contributions between joint venture partners and related preferred returns. (2)CBL defines NOI as property operating revenues (rental revenues, tenant reimbursements and other income), lessproperty operating expenses (property operating, real estate taxes and maintenance and repairs). NOI excludes (1) (1) (1) (1) (2)
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lease termination income, straight-line rent adjustments, amortization of above and below market lease intangiblesand write-offs of landlord inducement assets. We include a property in our same-center pool when we own all or aportion of the property as of June 30, 2026, and we owned it and it was in operation for both the entire precedingcalendar year and the current year-to-date reporting period ending June 30, 2026. New properties are excludedfrom same-center NOI, until they meet these criteria. Properties excluded from the same-center pool that wouldotherwise meet these criteria are properties which are under major redevelopment or being considered forrepositioning, where we intend to renegotiate the terms of the debt secured by the related property or return theproperty to the lender. The Company calculates same-center NOI based on stated ownership percentages. Same-center Net Operating Income (Dollars in thousands) Three Months EndedJune 30, Six Months EndedJune 30, 2026 2025 2026 2025 Malls $ 66,328 $ 66,376 $ 130,810 $ 129,156 Outlet centers 5,139 4,876 10,337 10,047 Lifestyle centers 10,044 9,168 19,119 17,723 Open-air centers 10,287 10,089 20,308 19,669 Outparcels and other 5,855 5,708 11,201 11,051 Total same-center NOI $ 97,653 $ 96,217 $ 191,775 $ 187,646 Percentage Change: Malls (0.1)% 1.3% Outlet centers 5.4% 2.9% Lifestyle centers 9.6% 7.9% Open-air centers 2.0% 3.2% Outparcels and other 2.6% 1.4% Total same-center NOI 1.5% 2.2% Company's Share of Consolidated and Unconsolidated Debt (Dollars in thousands)
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As of June 30, 2026 Fixed Rate VariableRate Total Debt UnamortizedDeferredFinancingCosts UnamortizedDebtDiscounts Total, net Consolidated debt $1,842,642 $281,760 $2,124,402 $ (29,708) $ (60,683) $2,034,011 Noncontrolling interests'share of consolidateddebt (12,653) (10,738) (23,391) 177 — (23,214) Company's share ofunconsolidated affiliates'debt 316,655 9,190 325,845 (2,389) — 323,456 Other debt 106,636 — 106,636 — — 106,636 Company's share ofconsolidated,unconsolidated andother debt $ 2,253,280 $ 280,212 $ 2,533,492 $ (31,920) $ (60,683) $ 2,440,889 Weighted-averageinterest rate 6.27% 7.64% 6.43% As of June 30, 2025 Fixed Rate VariableRate Total Debt UnamortizedDeferredFinancingCosts UnamortizedDebtDiscounts Total, net Consolidated debt $1,374,192 $864,270 $2,238,462 $ (6,619) $ (92,067) $2,139,776 Noncontrolling interests'share of consolidateddebt (24,108) (11,193) (35,301) 102 873 (34,326) Company's share ofunconsolidated affiliates'debt 366,041 29,662 395,703 (2,381) — 393,322 Company's share ofconsolidated,unconsolidated andother debt $ 1,716,125 $ 882,739 $ 2,598,864 $ (8,898) $ (91,194) $ 2,498,772 (1) (2) (1)
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Weighted-averageinterest rate 5.16% 7.43% 5.93% (1)In conjunction with the acquisition of the Company's partners' 50% joint venture interests in CoolSprings Galleria,Oak Park Mall and West County Center and the implementation of fresh start accounting upon emergence frombankruptcy, the Company recognized debt discounts equal to the difference between the outstanding balance ofmortgage notes payable and the estimated fair value of such mortgage notes payable. The debt discounts areaccreted as additional interest expense over the terms of the respective mortgage notes payable using the effectiveinterest method. The Company recognized the debt discounts associated with the acquisition of its partner's 50%joint venture interests in CoolSprings Galleria, Oak Park Mall and West County Center in December 2024. (2)Includes the outstanding loan balances of three deconsolidated properties, Jefferson Mall, The Outlet Shoppes atGettysburg and Southpark Mall, due to a loss of control when the properties were placed into receivership inconnection with the foreclosure processes. Consolidated Balance Sheets (Unaudited; in thousands, except share data) June 30, December 31, 2026 2025 ASSETS Real estate assets: Land $ 601,547 $ 601,553 Buildings and improvements 1,646,866 1,619,988 2,248,413 2,221,541 Accumulated depreciation (389,994) (355,900) 1,858,419 1,865,641 Developments in progress 9,440 10,533 Net investment in real estate assets 1,867,859 1,876,174 Cash and cash equivalents 101,280 42,287 Restricted cash 101,340 110,665 Available-for-sale securities - at fair value (amortized cost of $201,402 and$292,646 as of June 30, 2026 and December 31, 2025, respectively) 201,169 293,087 Receivables:
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Tenant 41,833 46,489 Other 1,692 1,562 Investments in unconsolidated affiliates 81,704 85,941 In-place leases, net 123,808 144,046 Intangible lease assets and other assets 116,533 128,848 $2,637,218 $ 2,729,099 LIABILITIES AND EQUITY Mortgage and other indebtedness, net $2,034,011 $ 2,170,785 Accounts payable and accrued liabilities 180,968 193,640 Total liabilities 2,214,979 2,364,425 Shareholders' equity: Common stock, $.001 par value, 200,000,000 shares authorized,30,942,757 and 30,322,052 issued and outstanding as of June 30, 2026 andDecember 31, 2025, respectively (in each case, excluding 34 treasuryshares) 31 30 Additional paid-in capital 686,163 687,424 Accumulated other comprehensive (loss) income (48) 443 Accumulated deficit (258,710) (312,961) Total shareholders' equity 427,436 374,936 Noncontrolling interests (5,197) (10,262) Total equity 422,239 364,674 $2,637,218 $ 2,729,099 Katie Reinsmidt, Executive Vice President - Chief Operating Officer,423.490.8301, katie.reinsmidt@cblproperties.com Source: CBL Properties Multimedia Files: