CBL Properties — Third Quarter 2026 Earnings Summary

Financial Performance

• Net income attributable to common shareholders was $0.37 per share for the three months ended September 30, 2026, compared to $2.38 per share in the prior-year period; for the nine months ended September 30, 2026, it was $3.31 per share compared to $2.78 per share.
• Funds from Operations (FFO) per diluted share was $1.05 for the three months ended September 30, 2026, down from $2.17 in the prior-year period; for the nine months ended September 30, 2026, it was $5.76 per share, up from $4.82 per share.
• FFO, as adjusted, per diluted share was $1.90 for the three months ended September 30, 2026, a 23% increase from $1.55 in the prior-year period; for the nine months ended September 30, 2026, it was $5.52 per share, a 12% increase from $4.94 per share.
• Same-center Net Operating Income (NOI) increased 3.8% year-over-year for the three months ended September 30, 2026, and 2.6% for the nine months ended September 30, 2026.
• Same-center tenant sales per square foot for the rolling twelve months ended September 30, 2026, increased 3.6% to $463.
• The Company held $366.7 million in unrestricted cash and marketable securities as of September 30, 2026, including $15.8 million from joint ventures.
• Total revenues for the three months ended September 30, 2026, were $148.7 million compared to $139.3 million in the prior-year period; for the nine months ended September 30, 2026, total revenues were $441.1 million compared to $422.0 million.
• Interest expense for the nine months ended September 30, 2026, was $148.7 million, compared to $133.0 million in the prior-year period.
• Cash flows provided by operating activities were $91.1 million for the three months ended September 30, 2026, and $224.3 million for the nine months ended September 30, 2026.

Guidance and Future Outlook

• CBL raised full-year 2026 FFO, as adjusted, guidance to a range of $7.34 to $7.44 per share.
• Full-year 2026 same-center NOI guidance is increased to a range of 0.75% to 2.25% growth.
• Volusia Mall has been removed from the same-center pool due to cooperation with the lender on a sale, foreclosure, or conveyance.
• The Company has no major debt maturities until 2028, eliminating near-term refinancing risk.
• Management anticipates closing the year well despite fourth-quarter comparisons reflecting tax refunds and bad debt recoveries recognized in the prior-year period.

Business Segments and Product Lines

• Portfolio occupancy increased to 91.5% as of September 30, 2026, up 130 basis points year-over-year and 110 basis points sequentially.
• Mall occupancy increased 210 basis points year-over-year, despite bankruptcy-related store closures of approximately 68,000 square feet.
• More than 930,000 square feet of leases were signed in the third quarter of 2026, including approximately 460,000 square feet of comparable new and renewal leases.
• Comparable lease spreads averaged a 6.8% increase in average gross rents versus prior rents in the third quarter of 2026.
• New leases signed in the third quarter came in 34% above prior rents.
• Rental revenue growth for the third quarter was driven by higher occupancy and a $0.4 million increase in percentage rent.
• The Company generated gross sales proceeds at its share of more than $101.3 million year-to-date, including sales of Hammock Landing, York Town Center, and Old Hickory Mall.
• CBL is under firm contract to sell Eastland Mall for $11.3 million, expected to close in November 2026.

Market and Competitive Landscape

• Leasing demand remains high, with the team adding $4.6 million in net new annual rent in the third quarter.
• Traffic continues to increase across the portfolio, contributing to the 3.6% rise in same-center tenant sales per square foot over the trailing twelve months.
• The Company is actively monetizing non-core assets and land parcels to multi-family developers for densification projects.
• The portfolio consists of 85 properties totaling 54.8 million square feet across 23 states, including 54 high-quality enclosed malls, outlet centers, and lifestyle retail centers.

Risks and Challenges

• Bankruptcy-related store closures reduced mall occupancy by nearly 50 basis points.
• Six non-recourse loans aggregating approximately $266.7 million (at CBL's share) are in the process of being resolved through lender-directed sale, foreclosure, or conveyance.
• The Outlet Shoppes at Gettysburg, Jefferson Mall, and Southpark Mall have been placed into receivership and deconsolidated due to loss of control.
• The Company is in discussions with lenders for Arbor Place Mall, Parkdale Mall and Crossing, and Volusia Mall regarding potential sale, foreclosure, or conveyance.
• Certain properties have 100% of their cash flows restricted under loan agreements, limiting liquidity from those specific assets.

Management Commentary and Tone

• CEO Stephen D. Lebovitz described the quarter's results as "excellent," citing strong operating performance driven by embedded rent increases, rental increases in renewal leasing, and higher occupancy.
• Management expressed confidence in the portfolio's continued strong performance, noting the ability to raise guidance for the second time in the year.
• The Board's authorization of a $25.0 million stock repurchase program reflects the view that the current share price does not reflect the value of the portfolio or its cash flow.
• Management emphasized a disciplined approach to capital allocation and a strengthened balance sheet with growing free cash flow.

Other Key Points

• On October 14, 2026, the Board approved a cash dividend of $0.625 per common share for the fourth quarter of 2026, equating to an annual dividend of $2.50 per share.
• On November 4, 2026, the Board authorized a stock repurchase program allowing the Company to repurchase up to $25.0 million of its common stock.
• The five-year recognition period under Section 382 of the Internal Revenue Code expired on November 1, 2026, providing flexibility to optimize portfolio composition and return capital to shareholders more tax efficiently.
• CBL closed nearly $1.0 billion in new financings year-to-date, including a $135.0 million refinancing of West County Center which unlocks over $7.0 million in annual free cash flow.
• The refinancing of Fayette Mall resulted in approximately $5.0 million in additional estimated annual cash flow due to a more favorable amortization structure.
• The refinancing of the $634.0 million term loan in March resulted in an increase in estimated annual free cash flow of more than $30.0 million.
• The Company has no major maturities until 2028, when loans secured by three high-performing properties come due.