CBL & ASSOCIATES PROPERTIES INC

Results of Operations

Properties that were in operation for the entire year during 2024 and the three months ended March 31, 2025 are referred to as the "Comparable Properties." Since January 2024, we have opened, consolidated and disposed of the following properties:

Properties Opened

(1)

The property is owned by a joint venture that is accounted for using the equity method of accounting and is included in equity in earnings of unconsolidated affiliates in the accompanying condensed consolidated statements of operations.

Consolidations

Dispositions

We consider properties undergoing major redevelopment or being considered for repositioning as non-core. As of March 31, 2025, Brookfield Square, Harford Mall and Laurel Park Place were designated as non-core.

Comparison of the Three Months Ended March 31, 2025 to the Three Months Ended March 31, 2024

Revenues

Rental revenues increased primarily due to the consolidation of CoolSprings Galleria, Oak Park Mall and West County Center in the current-year period related to the acquisition of our partner's 50% interest in those properties during December 2024, which resulted in an increase of $20.7 million during the current-year period. The increase was partially offset by $6.3 million of rental revenues associated with properties sold since the prior-year period.

Operating Expenses

Total property operating expenses increased primarily due to the consolidation of CoolSprings Galleria, Oak Park Mall and West County Center in the current-year period related to the acquisition of our partner's 50% interest in those properties during December 2024, which resulted in an increase of $8.1 million during the current-year period. Also, there was an increase in non-contract exterior maintenance costs, primarily driven by an increase in snow removal expense across our properties. Dispositions accounted for $1.5 million of the increase in the current-year period as compared to the prior-year period.

Depreciation and amortization expense increased primarily due to the addition of tangible assets and intangible lease assets recognized upon the acquisition of our partner's 50% interest in CoolSprings Galleria, Oak Park Mall and West County Center. Dispositions accounted for a $1.7 million decrease in the current-year period as compared to the prior-year period.

Other Income and Expenses

Interest expense increased $4.4 million during the three months ended March 31, 2025 as compared to the prior-year period. The increase was primarily due to higher accretion of property-level debt discounts and property-level interest expense associated with the acquisition of our partner's 50% interest in CoolSprings Galleria, Oak Park Mall and West County Center. The increase was partially offset by lower interest expense on the secured term loan due to paydowns that have occurred since the prior-year period.

Equity in earnings of unconsolidated affiliates increased $2.3 million for the three months ended March 31, 2025 as compared to the prior-year period. The increase primarily relates to the sale of an outparcel in the current-year period. Also, the increase is partially due to a decrease in interest expense, as well as a decrease in depreciation and amortization expense related to intangible lease assets becoming fully amortized since the prior-year period, at unconsolidated affiliates.

During the three months ended March 31, 2025, we recognized a $21.5 million gain on sales of real estate assets related to the sales of Imperial Valley Mall, Monroeville Mall, Annex at Monroeville, three outparcels associated with the Monroeville Mall properties and a land parcel associated with Imperial Valley Mall. During the three months ended March 31, 2024, we recognized a $3.7 million gain on sales of real estate assets related to the sale of an anchor parcel.

Non-GAAP Measure