CBL Properties — Second Quarter 2026 Earnings Summary

Financial Performance

• Net income attributable to common shareholders was $45.4 million ($1.47 per diluted share) for the three months ended June 30, 2026, compared to $2.6 million ($0.08 per share) in the prior year period.
• Net income attributable to common shareholders was $90.8 million ($2.95 per diluted share) for the six months ended June 30, 2026, compared to $10.8 million ($0.35 per share) in the prior year period.
• Funds from Operations (FFO) per diluted share was $1.93 for the three months ended June 30, 2026, up from $1.48 in the prior year period.
• FFO per diluted share was $4.71 for the six months ended June 30, 2026, up from $2.61 in the prior year period.
• FFO, as adjusted, per diluted share was $1.89 for the three months ended June 30, 2026, compared to $1.86 in the prior year period.
• FFO, as adjusted, per diluted share was $3.62 for the six months ended June 30, 2026, compared to $3.37 in the prior year period.
• Total revenues were $146.5 million for the three months ended June 30, 2026, compared to $140.9 million in the prior year period.
• Total revenues were $292.4 million for the six months ended June 30, 2026, compared to $282.7 million in the prior year period.
• Same-center Net Operating Income (NOI) increased 1.5% to $97.7 million for the three months ended June 30, 2026, and 2.2% to $191.8 million for the six months ended June 30, 2026, compared to the prior-year periods.
• Portfolio occupancy was 90.4% as of June 30, 2026, an increase of 160 basis points from 88.8% as of June 30, 2025.
• The Company held $322.7 million in unrestricted cash and marketable securities as of June 30, 2026, including a $20.3 million share of joint venture cash.
• Cash flows provided by operating activities were $80.3 million for the three months ended June 30, 2026, and $133.2 million for the six months ended June 30, 2026.
• The ratio of Adjusted EBITDAre to Interest Expense was 2.4x for both the three and six months ended June 30, 2026.

Guidance and Future Outlook

• Full-year 2026 FFO, as adjusted, guidance increased to a range of $7.15 to $7.25 per share.
• Full-year 2026 same-center NOI guidance is increased to a range of $389.2 million to $395.0 million, representing a 0.0% to 1.5% increase.
• Parkdale Mall and Crossing have been removed from the same-center pool due to cooperation with lenders on a sale, foreclosure, or conveyance.
• Estimated 2026 maintenance capital and tenant allowances are projected between $55.0 million and $65.0 million.
• Estimated 2026 development and redevelopment expenditures are projected between $5.0 million and $10.0 million.
• Estimated 2026 principal amortization is projected between $58.0 million and $63.0 million.

Business Segments and Product Lines

• Leasing volume was robust in Q2 2026, with nearly 1.3 million square feet of leases signed.
• Comparable new and renewal leases signed at an 8.8% increase in average rents versus prior rents.
• New leases achieved rent increases of 35.7% over prior rents, while renewal leases saw a 3.1% increase.
• Same-center tenant sales per square foot for the trailing twelve months ended June 30, 2026, increased 3.9% to $455.
• Same-center tenant sales per square foot for the second quarter 2026 increased approximately 2.2% compared to the prior-year period.
• Open-air centers occupancy was 95.0% as of June 30, 2026, up from 93.6% in the prior year.
• Lifestyle centers occupancy was 92.7% as of June 30, 2026, up from 90.8% in the prior year.
• Outlet centers occupancy was 91.5% as of June 30, 2026, up from 91.2% in the prior year.
• Malls occupancy was 88.3% as of June 30, 2026, up from 86.2% in the prior year.

Market and Competitive Landscape

• Bankruptcy-related store closures negatively impacted mall occupancy by nearly 54 basis points compared to the prior-year period.
• The Company continues to diversify its tenant mix with new retail, dining, entertainment, and experiential uses.
• The Company is actively repositioning its portfolio to create durable, long-term value.
• The Company is closely monitoring the impact of macroeconomic factors on its business.

Risks and Challenges

• Four loans aggregating approximately $189.6 million (at CBL's share) are in the process of being resolved through lender-directed sale, foreclosure, or conveyance.
• Jefferson Mall (Louisville, KY) was placed into receivership in February 2026 and deconsolidated due to loss of control; secured by a $48.6 million non-recourse loan.
• The Outlet Shoppes at Gettysburg (Gettysburg, PA) was placed into receivership in May 2026; secured by a $9.7 million non-recourse loan (at CBL's share).
• Discussions are ongoing with lenders for Arbor Place Mall (Douglasville, GA) and Parkdale Mall and Crossing (Beaumont, TX) regarding sale, foreclosure, or conveyance.
• The Company estimates uncollectable revenues negatively impacted the quarter by approximately $0.9 million and the six-month period by approximately $1.4 million.

Management Commentary and Tone

• Stephen D. Lebovitz, CEO, stated the company posted "excellent second quarter operational and financial results" and highlighted a 1.5% year-over-year increase in same-center NOI.
• Management noted significant progress in transforming the balance sheet through refinancing activity, including the $634 million legacy term loan refinancing in March.
• The refinancing activity extended the maturity profile, enhanced annual free cash flow, and unlocked more than $38 million of previously restricted cash flow.
• Management expressed confidence in the quality and pace of the leasing pipeline and the portfolio repositioning strategy.
• The Company closed on the sale of Hammock Landing at an 8% cap rate, generating net proceeds of approximately $26.0 million to CBL.

Other Key Points

• On August 5, 2026, the Board of Directors approved a dividend of $0.625 per common share for the third quarter of 2026, equating to an annual dividend of $2.50 per share.
• Year-to-date, CBL generated gross sales proceeds at CBL's share of more than $61.4 million.
• CBL generated approximately $19.2 million in gross proceeds from dispositions of six land parcels and other outparcels, including sales to multi-family developers.
• The Company executed $925.1 million of financing activity year-to-date, including the refinancing of the $634.0 million term loan.
• CBL has acquired 363,676 shares of common stock for $12.0 million under its stock repurchase program since authorization on November 5, 2025; no shares were acquired during the second quarter.
• The Company deconsolidated Jefferson Mall and The Outlet Shoppes at Gettysburg due to loss of control, resulting in a gain on deconsolidation of $41.3 million for the six months ended June 30, 2026.
• The Company's pro rata share of debt was reduced by $65.4 million compared with the prior period-end.
• The weighted-average interest rate on the Company's share of consolidated, unconsolidated, and other debt was 6.43% as of June 30, 2026.