CBL & ASSOCIATES PROPERTIES INC
For the period ended Dec 31, 2025. Filed Mar 3, 2026.
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FY2025 · Filed Mar 3, 2026
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Item 7. “Results of Operations.”
Results of Operations
Properties that were in operation for the entire year during both 2025 and 2024 are referred to as the “2025 Comparable Properties.” Since January 2024, we have opened, consolidated, deconsolidated, acquired and disposed of the following properties:
Properties Opened
| Property | Location | Date Opened |
|---|---|---|
| Friendly Center Medical Office (1) | Greensboro, NC | August 2024 |
(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 consolidated statements of operations.
Consolidations
| Property | Location | Date of Consolidation |
|---|---|---|
| CoolSprings Galleria | Nashville, TN | December 2024 |
| Oak Park Mall | Overland Park, KS | December 2024 |
| West County Center | Des Peres, MO | December 2024 |
Acquisitions
| Property | Location | Date of Acquisition |
|---|---|---|
| Ashland Town Center | Ashland, KY | July 2025 |
| Mesa Mall | Grand Junction, CO | July 2025 |
| Paddock Mall | Ocala, FL | July 2025 |
| Southgate Mall | Missoula, MT | July 2025 |
Deconsolidations
| Property | Location | Date of Deconsolidation |
|---|---|---|
| Southpark Mall | Colonial Heights, VA | July 2025 |
Dispositions
| Property | Location | Date of Disposition |
|---|---|---|
| Layton Hills Mall | Layton, UT | August 2024 |
| Layton Hills Convenience Center | Layton, UT | September 2024 |
| Layton Hills Plaza | Layton, UT | September 2024 |
| Monroeville Mall | Monroeville, PA | January 2025 |
| Annex at Monroeville | Monroeville, PA | January 2025 |
| Imperial Valley Mall | El Centro, CA | February 2025 |
| 840 Greenbrier Circle | Chesapeake, VA | June 2025 |
| The Promenade | D'Iberville, MS | July 2025 |
| Fremaux Town Center (1) | Slidell, LA | October 2025 |
(1)
The property was owned by a joint venture that was accounted for using the equity method of accounting and was included in equity in earnings of unconsolidated affiliates in the accompanying consolidated statements of operations.
We consider properties undergoing major redevelopment, properties being considered for repositioning, properties where we intend to renegotiate the terms of the debt secured by the related property or return the property to the lender as non-core. As of December 31, 2025, Brookfield Square, Harford Mall, Laurel Park Place and Southpark Mall were designated as non-core.
Comparison of the Results of Operations for the Years Ended December 31, 2025 and 2024
Revenues
(in thousands)
| Year Ended December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | Malls | Outlet Centers | Lifestyle Centers | Open-Air Centers | All Other | |
| Rental revenues | $558,985 | $493,876 | $65,109 | $71,454 | $(270) | $2,518 | $(6,012) | $(2,581) |
| Management, development and leasing fees | 5,114 | 7,609 | (2,495) | — | — | — | — | (2,495) |
| Other | 14,274 | 14,076 | 198 | 950 | (100) | (128) | (174) | (350) |
| Total revenues | $578,373 | $515,561 | $62,812 | $72,404 | $(370) | $2,390 | $(6,186) | $(5,426) |
Rental revenues increased primarily due to the consolidation of three malls in December 2024, as well as the acquisition of four malls in July 2025, which resulted in an increase of $100.0 million during the current year. The increase was partially offset by $35.5 million of rental revenues associated with properties sold since the prior year. Rental revenues at the comparable properties were relatively flat compared to the prior year.
Operating Expenses
(in thousands)
| Year Ended December 31, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | Malls | Outlet Centers | Lifestyle Centers | Open-Air Centers | All Other | |
| Property operating | $(101,941) | $(90,052) | $(11,889) | $(13,848) | $(280) | $7 | $(151) | $2,383 |
| Real estate taxes | (57,458) | (47,365) | (10,093) | (10,597) | (242) | 35 | (1) | 712 |
| Maintenance and repairs | (44,954) | (37,732) | (7,222) | (6,623) | (87) | (355) | (186) | 29 |
| Property operating expenses | (204,353) | (175,149) | (29,204) | (31,068) | (609) | (313) | (338) | 3,124 |
| Depreciation and amortization | (165,156) | (140,591) | (24,565) | (35,734) | 384 | 1,411 | 6,974 | 2,400 |
| General and administrative | (69,040) | (67,254) | (1,786) | — | — | — | — | (1,786) |
| Loss on impairment | (3,193) | (1,461) | (1,732) | — | — | — | — | (1,732) |
| Litigation settlement | — | 553 | (553) | — | — | — | — | (553) |
| Other | (57) | (230) | 173 | (57) | — | — | — | 230 |
| Total operating expenses | $(441,799) | $(384,132) | $(57,667) | $(66,859) | $(225) | $1,098 | $6,636 | $1,683 |
Total property operating expenses increased primarily due to the consolidation of three malls in December 2024, as well as the acquisition of four malls in July 2025, which resulted in an increase of $37.2 million during the current year. The increase was partially offset by $10.4 million of total property operating expenses associated with properties sold since the prior year. Also, the increase was impacted by state franchise tax rebates received in the prior year, as well as higher snow removal expense during the current year.
Depreciation and amortization expense increased primarily due to the addition of tangible assets and intangible lease assets recognized upon the consolidation of three malls in December 2024, as well as the acquisition of four malls in July 2025, which resulted in an increase of $61.7 million during the current year. The increase was partially offset by tenant improvement and intangible in-place lease assets recognized upon the adoption of fresh start accounting on November 1, 2021 becoming fully depreciated or amortized since the prior year. Also, dispositions accounted for an $11.5 million decrease in the current year as compared to the prior year.
General and administrative expense increased $1.8 million primarily due to fees paid to third parties associated with the modification of the 2032 non-recourse bank loan (previously referred to as the "open-air centers and outparcels loan"), as well as higher stock compensation expense in the current year due to awards granted since the prior year.
During the year ended December 31, 2025, we recorded loss on impairment of $3.2 million related to the sales of 840 Greenbrier Circle and a land parcel, which were sold for less than their carrying values. During the year ended December 31, 2024, we recorded loss on impairment of $1.5 million related to two outparcels we sold for less than each asset's carrying value.
Other Income and Expenses
Interest and other income decreased $2.5 million during the year ended December 31, 2025 as compared to the prior year primarily due to holding U.S. Treasury securities that carried lower interest rates in the current year.
Interest expense increased $21.5 million during the year ended December 31, 2025 as compared to the prior year. The increase was primarily due to higher accretion of property-level debt discounts and property-level interest expense associated with the consolidation of three malls in December 2024. The increase was partially offset by lower interest expense on the secured term loan due to paydowns and principal amortization that has occurred since the prior year, as well as a lower variable interest rate in the current year.
For the year ended December 31, 2025, we recorded a $33.9 million gain on deconsolidation related to Southpark Mall. The property was deconsolidated due to a loss of control when it was placed into receivership in connection with the foreclosure process.
For the year ended December 31, 2024, we recognized a $26.7 million gain on consolidation related to the acquisition of our partner's 50% joint venture interests in CoolSprings Galleria, Oak Park Mall and West County Center.
Equity in earnings of unconsolidated affiliates increased $30.3 million during the year ended December 31, 2025 as compared to the prior year. The increase was primarily due to a gain on the sale of Fremaux Town Center.
During the year ended December 31, 2025, we recognized $74.2 million of gain on sales of real estate assets related to the sales of The Promenade, Imperial Valley Mall, Monroeville Mall, Annex at Monroeville, three outparcels associated with the Monroeville Mall properties, a land parcel associated with Imperial Valley Mall, an outparcel and two land parcels. During the year ended December 31, 2024, we recognized a $16.7 million gain on sales of real estate assets related to the sales of Layton Hills Mall, Layton Hills Convenience Center, Layton Hills Plaza, 10 outparcels, of which 9 outparcels were associated with the Layton Hills properties, two land parcels and an anchor parcel.
Non-GAAP Measure
Same-center Net Operating Income
NOI is a supplemental non-GAAP measure of the operating performance of our shopping centers and other properties. We define NOI as property operating revenues (rental revenues, tenant reimbursements and other income) less property operating expenses (property operating, real estate taxes and maintenance and repairs). We also exclude the impact of lease termination fees and certain non-cash items such as straight-line rents and reimbursements, write-offs of landlord inducements and net amortization of acquired above and below market leases.
We compute NOI based on the Operating Partnership's pro rata share of both consolidated and unconsolidated properties. We believe that presenting NOI and same-center NOI (described below) based on our Operating Partnership’s pro rata share of both consolidated and unconsolidated properties is useful since we conduct substantially all our business through our Operating Partnership and, therefore, it reflects the performance of our properties in absolute terms regardless of the ratio of ownership interests of our common shareholders and the noncontrolling interest in the Operating Partnership. Our definition of NOI may be different than that used by other companies, and accordingly, our calculation of NOI may not be comparable to that of other companies.
Since NOI includes only those revenues and expenses related to the operations of our shopping center properties, we believe that same-center NOI provides a measure that reflects trends in occupancy rates, rental rates, sales at our properties and operating costs and the impact of those trends on our results of operations. Our calculation of same-center NOI excludes lease termination income, straight-line rent adjustments, and amortization of above- and below-market lease intangibles in order to enhance the comparability of results from one period to another.
We include a property in our same-center pool when we have owned all or a portion of the property since January 1 of the preceding calendar year and it has been in operation for both the entire preceding calendar year ended December 31, 2024 and the current year ended December 31, 2025. New properties are excluded from same-center NOI until they meet these criteria. Properties excluded from the same-center pool, which would otherwise meet these criteria, are properties undergoing major redevelopment or being considered for repositioning, or where we intend to renegotiate the terms of the debt secured by the related property or return the property to the lender ("Excluded Properties"). As of December 31, 2025, Brookfield Square, Harford Mall, Laurel Park Place and Southpark Mall were classified as Excluded Properties.
Due to the exclusions noted above, same-center NOI should only be used as a supplemental measure of our performance and not as an alternative to GAAP operating income (loss) or net income (loss). A reconciliation of our same-center NOI to net income for the years ended December 31, 2025 and 2024 is as follows (in thousands):
| Year Ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Net income | $134,526 | $57,117 |
| Adjustments: (1) | ||
| Depreciation and amortization, including our share of unconsolidated affiliates and net of noncontrolling interests' share | 176,597 | 154,812 |
| Interest expense, including our share of unconsolidated affiliates and net of noncontrolling interests' share | 199,735 | 217,354 |
| Abandoned projects expense | 27 | 230 |
| Gain on sales of real estate assets | (74,229) | (16,676) |
| Gain on sales of real estate assets of unconsolidated affiliates | (33,567) | (68) |
| Adjustment for unconsolidated affiliates with negative investment | 12,811 | (9,974) |
| Loss on extinguishment of debt | 217 | 819 |
| Gain on deconsolidation | (33,851) | — |
| Gain on consolidation | — | (26,727) |
| Loss on impairment, including our share of unconsolidated affiliates | 3,875 | 1,461 |
| Litigation settlement | — | (553) |
| Income tax provision | 475 | 1,055 |
| Lease termination fees | (2,088) | (2,357) |
| Straight-line rent and above- and below-market lease amortization | 14,389 | 14,642 |
| Net loss attributable to noncontrolling interests in other consolidated subsidiaries | 1,462 | 1,857 |
| General and administrative expenses | 69,040 | 67,254 |
| Management fees and non-property level revenues | (22,121) | (25,049) |
| Operating Partnership's share of property NOI | 447,298 | 435,197 |
| Non-comparable NOI | (26,827) | (16,732) |
| Total same-center NOI (2) | $420,471 | $418,465 |
(1)
Adjustments are based on our Operating Partnership's pro rata ownership share, including our share of unconsolidated affiliates and excluding noncontrolling interests' share of consolidated properties.
(2)
Due to the purchase of the Company's joint venture partner's 50% interest in CoolSprings Galleria, Oak Park Mall and West County Center during December 2024, same-center NOI is reflected at 100% for those properties for all periods.
Same-center NOI increased 0.5% for the year ended December 31, 2025 as compared to the prior year. The $2.0 million increase for the year ended December 31, 2025 compared to the same period in 2024 primarily consisted of an $8.0 million increase in revenues offset by a $6.0 million increase in operating expenses. Rental revenues were $7.1 million higher primarily due to higher minimum rents and tenant reimbursements in the current year. The increase in rental revenues was partially offset by lower percentage rents during the current year as compared to the prior year. Property operating expenses increased in the current year primarily due to one-time real estate and franchise tax refunds received in the prior year as well as higher utility and maintenance expense.
Operational Review
The shopping center business is, to some extent, seasonal in nature with tenants typically achieving the highest levels of sales during the fourth quarter due to the holiday season, which generally results in higher percentage rents in the fourth quarter. Additionally, our properties earn a large portion of their rents from short-term tenants during the holiday period. Thus, occupancy levels and revenue production are generally the highest in the fourth quarter of each year. Results of operations realized in any one quarter may not be indicative of the results likely to be experienced over the course of the fiscal year.
We derive the majority of our revenues from our malls. The sources of our revenues by property type were as follows:
| Year Ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Malls | 72.2% | 70.0% |
| Outlet Centers | 5.4% | 5.5% |
| Lifestyle Centers | 7.7% | 7.8% |
| Open-Air Centers | 9.9% | 11.0% |
| All Other Properties | 4.8% | 5.7% |
Inline and Adjacent Freestanding Store Sales
Inline and adjacent freestanding store sales include reporting mall, lifestyle center and outlet center tenants of 10,000 square feet or less and exclude license agreements, which are retail leases that are temporary or short-term in nature and generally last more than three months but less than twelve months. The following is a comparison of our same-center sales per square foot for mall, lifestyle center and outlet center tenants of 10,000 square feet or less (Excluded Properties are not included in sales metrics):
| Sales Per Square Foot for the Trailing Twelve Months Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | % Change | |
| Malls, lifestyle centers and outlet centers same-center sales per square foot | $437 | $426 | 2.8% |
Tenant Occupancy Costs
Occupancy cost is a tenant’s total cost of occupying its space, divided by its sales. Inline and adjacent freestanding store sales represent total sales amounts received from reporting tenants with space of less than 10,000 square feet.
The following table summarizes tenant occupancy costs as a percentage of total inline and adjacent freestanding store sales for reporting tenants less than 10,000 square feet, excluding license agreements, for each of the past three years:
| Year Ended December 31, (1) | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Mall in-line store sales (in millions) | $4,068 | $3,691 | $3,750 |
| Mall in-line tenant occupancy costs | 10.6% | 11.0% | 10.9% |
(1)
In certain cases, we own less than a 100% interest in the mall. The information in this table is based on 100% of the applicable amounts and has not been adjusted for our ownership share.
In-Line Store Occupancy
Our portfolio in-line store occupancy is summarized in the below table (Excluded Properties are not included in occupancy metrics). Occupancy for the malls, lifestyle centers and outlet centers represents percentage of in-line gross leasable area under 20,000 square feet occupied. Occupancy for open-air centers represents percentage of gross leasable area occupied.
| As of December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Total portfolio | 90.0% | 90.3% |
| Malls, lifestyle centers and outlet centers: | ||
| Total malls | 87.9% | 87.8% |
| Total lifestyle centers | 92.5% | 92.2% |
| Total outlet centers | 90.9% | 92.3% |
| Total same-center malls, lifestyle centers and outlet centers | 88.6% | 88.6% |
| Open-air centers | 95.0% | 95.6% |
| All Other Properties | 90.9% | 89.5% |
Leasing
The following is a summary of the total square feet of leases signed in the year ended December 31, 2025 as compared to the prior year:
| Year Ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Operating portfolio: | ||
| New leases | 854,120 | 980,105 |
| Renewal leases | 3,165,981 | 3,500,440 |
| Development portfolio: | ||
| New leases | 6,058 | — |
| Total leased | 4,026,159 | 4,480,545 |
Average annual base rents per square foot are computed based on contractual rents in effect as of December 31, 2025 and 2024, including the impact of any rent concessions. Average annual base rents per square foot for comparable small shop space of less than 10,000 square feet were as follows for each property type(1):
| Year Ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Total portfolio (1) | $27.13 | $26.07 |
| Malls, lifestyle centers and outlet centers: | ||
| Total same-center malls, lifestyle centers and outlet centers | 31.41 | 31.59 |
| Total malls | 31.31 | 31.14 |
| Total lifestyle centers | 32.83 | 31.96 |
| Total outlet centers | 30.37 | 29.32 |
| Open-air centers | 16.25 | 15.84 |
| All Other Properties | 22.01 | 20.94 |
(1)
Excluded Properties are not included in base rent. Average base rents for open-air centers and other include all leased space, regardless of size.
Results from new and renewal leasing of comparable in-line space of less than 10,000 square feet during the year ended December 31, 2025 for spaces that were previously occupied, based on the contractual terms of the related leases inclusive of the impact of any rent concessions, which were not material, are as follows:
| Property Type | SquareFeet | Prior GrossRent PSF | New InitialGross RentPSF | % ChangeInitial | New AverageGross RentPSF | % ChangeAverage |
|---|---|---|---|---|---|---|
| All Property Types (1) | 2,439,969 | $41.45 | $41.30 | (0.4)% | $42.52 | 2.6% |
| Malls, lifestyle centers and outlet centers (2) | 2,304,160 | 42.35 | 41.97 | (0.9)% | 43.17 | 1.9% |
| New leases (2) | 236,953 | 39.09 | 48.25 | 23.4% | 52.84 | 35.2% |
| Renewal leases (2) | 2,067,207 | 42.72 | 41.25 | (3.4)% | 42.07 | (1.5)% |
| Open-air Centers | 105,296 | 26.53 | 31.43 | 18.5% | 33.24 | 25.3% |
(1)
Includes malls, lifestyle centers, outlet centers, open-air centers and other.
(2)
The change is primarily driven by malls.
New and renewal leasing activity of comparable in-line space of less than 10,000 square feet for the year ended December 31, 2025, based on commencement date inclusive of the impact of any rent concessions, are as follows:
| NumberofLeases · SquareFeet · Term(inyears) · InitialRentPSF · AverageRentPSF · ExpiringRentPSF · Initial RentSpread · Average RentSpread | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Commencement 2025: | ||||||||||
| New | 89 | 227,157 | 6.58 | $44.45 | $49.05 | $35.02 | $9.43 | 26.9% | $14.03 | 40.1% |
| Renewal | 596 | 1,857,922 | 2.82 | 36.01 | 36.72 | 37.68 | (1.67) | (4.4)% | (0.96) | (2.5)% |
| Commencement 2025 Total | 685 | 2,085,079 | 3.31 | 36.93 | 38.06 | 37.39 | (0.46) | (1.2)% | 0.67 | 1.8% |
| Commencement 2026: | ||||||||||
| New | 42 | 96,722 | 7.42 | 51.80 | 56.78 | 38.85 | 12.95 | 33.3% | 17.93 | 46.2% |
| Renewal | 345 | 1,034,282 | 3.00 | 43.06 | 43.89 | 43.28 | (0.22) | (0.5)% | 0.61 | 1.4% |
| Commencement 2026 Total | 387 | 1,131,004 | 3.48 | 43.81 | 45.00 | 42.90 | 0.91 | 2.1% | 2.10 | 4.9% |
| Total 2025/2026 | 1,072 | 3,216,083 | 3.37 | $39.35 | $40.50 | $39.33 | $0.02 | 0.1% | $1.17 | 3.0% |
Liquidity and Capital Resources
As of December 31, 2025, we had $335.4 million available in unrestricted cash and U.S. Treasury securities. Our total pro rata share of debt, excluding unamortized deferred financing costs and debt discounts, at December 31, 2025 was $2,622.6 million. We had $75.9 million in restricted cash at December 31, 2025 related to cash held in escrow accounts for insurance, real estate taxes, capital expenditures and tenant allowances as required by the terms of certain mortgage notes payable, as well as amounts related to cash management agreements with lenders of certain property-level mortgage indebtedness, which are designated for debt service and operating expense obligations. We also had restricted cash of $34.8 million related to the properties that secure the corporate term loan and the 2032 non-recourse bank loan (previously referred to as the "open-air centers and outparcels loan") of which we may receive a portion via distributions semiannually and quarterly in accordance with the provisions of the term loan and the 2032 non-recourse bank loan, respectively.
During the year ended December 31, 2025, we continued to reinvest the cash from maturing U.S. Treasury securities into new U.S. Treasury securities. We designated our U.S. Treasury securities as available-for-sale. As of December 31, 2025, our U.S. Treasury securities have maturities through October 2026. Subsequent to December 31, 2025, we redeemed and purchased additional U.S. Treasury securities. See Note 18 for more information.
In January 2025, we acquired four Macy's stores for $6.2 million, which include land, buildings and improvements, for future redevelopment at the respective properties. In July 2025, we closed on the acquisition of four malls for $179.7 million including transaction costs. The malls include Ashland Town Center in Ashland, KY, Mesa Mall in Grand Junction, CO, Paddock Mall in Ocala, FL, and Southgate Mall in Missoula, MT. See Note 5 for more information.
During the year ended December 31, 2025, we sold six properties, six outparcels, three land parcels and two anchor parcels, which generated gross proceeds of $240.7 million at our share. Net proceeds from those sales were used to pay down the 2032 non-recourse bank loan (previously referred to as the "open-air centers and outparcels loan"), pay down the secured term loan and fund the acquisition of the four malls acquired in July 2025.
During the year ended December 31, 2025, we exercised the extension options on the loans secured by Fayette Mall, Coastal Grand Mall - Dick's Sporting Goods and the secured term loan and entered short-term loan extensions for the loans secured by The Outlet Shoppes at Laredo and York Town Center. We closed on new loans secured by Cross Creek Mall and The Pavilion at Port Orange and paid off the loans secured by Fremaux Town Center and the Northgate Mall Development with proceeds from the sale of each property.
Additionally, we modified the loans secured by Coastal Grand Mall and Coastal Grand Crossing and the 2032 non-recourse bank loan (previously referred to as the "open-air centers and outparcels loan"), which extended the maturity dates, increased the interest rates and increased the principal balance on the 2032 non-recourse bank loan by $110.0 million to fund the acquisition of the four malls described above. See Note 7 and Note 8.
In March 2025, the Alamance Crossing East foreclosure process was completed. Alamance Crossing East had an outstanding loan balance of $41.1 million prior to completion of the foreclosure process. In July 2025, Southpark Mall entered default and the property was placed into receivership. As of December 31, 2025, the loan secured by Southpark Mall had an outstanding balance of $48.3 million. During the year ended December 31, 2025, we were notified by the lender that the loan secured by The Outlet Shoppes at Gettysburg was in maturity default and we anticipate returning the property to the lender. Subsequent to December 31, 2025, we were notified by the lender that the loan secured by Jefferson Mall was in default and the property was placed into receivership. See Note 18.
We paid common stock dividends of $0.40 per share in each of the first and second quarters of 2025 and $0.45 per share in each of the third and fourth quarters of 2025. Additionally, our board of directors declared a special dividend of $0.80 per share, which was paid in cash during the first quarter of 2025. The special dividend was made to ensure that we meet the minimum requirement to maintain our status as a REIT. In November 2025, our board of directors authorized the repurchase of up to $25.0 million of the Company's common stock. The authorized share repurchase program has an expiration date of November 5, 2026 and replaces the existing program authorized in May 2025. Subsequent to December 31, 2025, our board of directors declared a regular cash dividend of $0.45 per share for the quarter ending March 31, 2026. See Note 18 for more information.
As of December 31, 2025, our total share of consolidated, unconsolidated and other outstanding debt, excluding debt discounts and deferred financing costs, maturing during 2026, assuming all extension options are elected, is $670.2 million. The $9.7 million loan, at our share, secured by The Outlet Shoppes at Gettysburg, which matured during 2025, remains outstanding.
Unconsolidated Affiliates
We have ownership interests in 23 unconsolidated affiliates as of December 31, 2025. See Note 7 to the consolidated financial statements for more information. The unconsolidated affiliates are accounted for using the equity method of accounting and are reflected in the accompanying consolidated balance sheets as investments in unconsolidated affiliates.
The following are circumstances when we may consider entering into a joint venture with a third party:
Third parties may approach us with opportunities in which they have obtained land and performed some pre-development activities, but they may not have sufficient access to the capital resources or the development and leasing expertise to bring the project to fruition. We enter into such arrangements when we determine such a project is viable and we can achieve a satisfactory return on our investment. We typically earn development fees from the joint venture and provide management and leasing services to the property for a fee once the property is placed in operation.
We determine that we may have the opportunity to capitalize on the value we have created in a property by selling an interest in the property to a third party. This provides us with an additional source of capital that can be used to develop or acquire additional real estate assets that we believe will provide greater potential for growth. When we retain an interest in an asset rather than selling a 100% interest, it is typically because this allows us to continue to manage the property, which provides us the ability to earn fees for management, leasing, development and financing services provided to the joint venture.
We also pursue opportunities to contribute available land at our properties into joint venture partnerships for development of primarily non-retail uses such as hotels, offices, self-storage and multifamily. We typically partner with developers who have expertise in the non-retail property types.
Guarantees
We may guarantee the debt of a joint venture primarily because it allows the joint venture to obtain funding at a lower cost than could be obtained otherwise. This results in a higher return for the joint venture on its investment, and a higher return on our investment in the joint venture. We may receive a fee from the joint venture for providing the guaranty. Additionally, when we issue a guaranty, the terms of the joint venture agreement typically provide that we may receive indemnification from the joint venture partner or have the ability to increase our ownership interest.
See Note 14 to the consolidated financial statements for information related to our guarantees of unconsolidated affiliates' debt as of December 31, 2025 and 2024.
Material Cash Requirements
The following table summarizes our material cash requirements as of December 31, 2025 (in thousands):
| Payments Due By Period | |||||
|---|---|---|---|---|---|
| Total | Less Than 1Year | 1-3Years | 3-5Years | More Than 5Years | |
| Long-term debt: | |||||
| Consolidated debt service (1) | $2,587,416 | $1,416,652 | $263,692 | $842,061 | $65,011 |
| Noncontrolling interests' share in other consolidated subsidiaries (2) | (37,982) | (30,880) | (784) | (784) | (5,534) |
| Other debt (3) | 48,271 | 48,271 | — | — | — |
| Our share of unconsolidated affiliates debt service (4) | 456,684 | 46,434 | 193,559 | 75,296 | 141,395 |
| Our share of total debt service obligations | 3,054,389 | 1,480,477 | 456,467 | 916,573 | 200,872 |
| Operating leases: (5) | |||||
| Ground leases on properties | 12,870 | 258 | 519 | 619 | 11,474 |
| Purchase obligations: (6) | |||||
| Construction contracts on consolidated properties | 3,460 | 3,460 | — | — | — |
| Our share of construction contracts on unconsolidated properties | 160 | 160 | — | — | — |
| Our share of total purchase obligations | 3,620 | 3,620 | — | — | — |
| Other contractual obligations: (7) | 18,267 | 17,433 | 834 | — | — |
| Total material cash requirements | $3,089,146 | $1,501,788 | $457,820 | $917,192 | $212,346 |
(1)
Represents principal (including balloon payments) and interest payments due under the terms of mortgage and other indebtedness, net, and includes $684,846 of variable-rate debt service related to the secured term loan, $102,676 of variable-rate debt service related to the 2032 non-recourse bank loan and $32,718 of variable-rate debt service on The Outlet Shoppes at Laredo loan. The future interest payments on variable-rate loans are projected based on the interest rates that were in effect at December 31, 2025. The secured term loan matures in November 2026 and contains a one-year extension option, subject to certain conditions. See Note 8 to the consolidated financial statements for additional information regarding the terms of long-term debt.
(2)
Includes $(11,451) of noncontrolling interests' share of variable-rate debt service on The Outlet Shoppes at Laredo loan. Future contractual obligations have been projected using the same assumptions as used in (1) above.
(3)
Represents the outstanding loan balance for Southpark Mall which was deconsolidated due to a loss of control when the property was placed into receivership in connection with the foreclosure process.
(4)
Includes $21,471 of variable-rate debt service. Future contractual obligations have been projected using the same assumptions as used in (1) above.
(5)
Obligations where we own the buildings and improvements, but lease the underlying land under long-term ground leases. The maturities of these leases range from 2046 to 2089 and generally provide for renewal options.
(6)
Represents our share of the remaining balance to be incurred under construction contracts that had been entered into as of December 31, 2025, but were not complete. The contracts are primarily for redevelopment of our properties.
(7)
Represents agreements for maintenance, security, and janitorial services at our properties that expire between June 2026 to September 2028.
Liquidity Sources
We derive the majority of our revenues from leases with retail tenants, which have historically been the primary source for funding short-term liquidity and capital needs such as operating expenses, debt service, tenant construction allowances, recurring capital expenditures, dividends and distributions. We believe that the combination of cash flows generated from our operations, combined with cash on hand and our investment in U.S. Treasury securities will, for the foreseeable future, provide adequate liquidity to meet our cash needs. In addition to these factors, we have options available to us to generate additional liquidity, including but not limited to, joint venture investments, financing of currently unencumbered properties and decreasing expenditures related to tenant construction allowances and other capital expenditures. We also generate revenues from sales of peripheral land at our properties and from sales of real estate assets when it is determined that we can realize an optimal value for the assets.
Cash Flows - Operating, Investing and Financing Activities
There was $153.0 million of cash, cash equivalents and restricted cash as of December 31, 2025, a decrease of $0.9 million from December 31, 2024. Of this amount, $42.3 million was unrestricted cash as of December 31, 2025. Also, at December 31, 2025, we had $293.1 million in U.S. Treasuries with maturities through October 2026. Our net cash flows are summarized as follows (in thousands):
| Year Ended December 31, | |||
|---|---|---|---|
| 2025 | 2024 | Change | |
| Net cash provided by operating activities | $249,680 | $202,223 | $47,457 |
| Net cash (used in) provided by investing activities | (115,114) | 65,006 | (180,120) |
| Net cash used in financing activities | (135,418) | (236,501) | 101,083 |
| Net cash flows | $(852) | $30,728 | $(31,580) |
Cash Provided by Operating Activities
Cash provided by operating activities increased primarily due to the consolidation of three malls in December 2024, as well as the acquisition of four malls in July 2025. The increase was partially offset by the sales of The Promenade, 840 Greenbrier Circle, Layton Hills properties, the Monroeville properties and Imperial Valley Mall since the prior year.
Cash (Used In) Provided by Investing Activities
Cash used in investing activities increased primarily due to the acquisition of four malls in July 2025, as well as a higher amount of additions of real estate assets and a lower amount of net redemptions of U.S. Treasury securities during the current year. The increase was partially offset by net proceeds from the sales of the Layton Hills properties, the Monroeville properties, Imperial Valley Mall, The Promenade and 840 Greenbrier Circle since the prior year.
Cash Used in Financing Activities
Cash used in financing activities decreased primarily due to proceeds from new financings in the current year and a lower amount of repurchases of common stock as compared to the prior year. The decrease was partially offset by an increase in principal payments and the payment of a first quarter 2025 special dividend during the current year as compared to the prior year.
Debt
CBL has no indebtedness. Either the Operating Partnership or one of its consolidated subsidiaries that it has a direct or indirect ownership interest in is the borrower on all our debt, substantially all of which is secured by real estate assets.
The following tables summarize debt based on our pro rata ownership share, including our pro rata share of unconsolidated affiliates and excluding noncontrolling investors’ share of consolidated properties. Prior to consideration of unamortized deferred financing costs or debt discounts, of our $2,622.6 million in outstanding debt at December 31, 2025, $2,619.8 million constituted non-recourse debt obligations and $2.8 million constituted recourse debt obligations. We believe the tables below provide investors and lenders a clearer understanding of our total debt obligations and liquidity (in thousands):
| December 31, 2025: · Consolidated · NoncontrollingInterests · Other Debt (1) · UnconsolidatedAffiliates · Total · Weighted-AverageInterestRate (2) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed-rate debt: | ||||||||||||
| Non-recourse loans on operating properties | $1,133,962 | $(23,881) | $48,271 | $342,081 | $1,500,433 | 4.97% | ||||||
| 2032 non-recourse bank loan | 367,956 | — | — | — | 367,956 | 7.70% | (3) | |||||
| Recourse loan on an operating property | — | — | — | 2,797 | 2,797 | 7.26% | ||||||
| Total fixed-rate debt | 1,501,918 | (23,881) | 48,271 | 344,878 | 1,871,186 | 5.51% | ||||||
| Variable-rate debt: | ||||||||||||
| Non-recourse loans on operating properties | 31,380 | (10,983) | — | 9,261 | 29,658 | 7.46% | ||||||
| 2032 non-recourse bank loan | 75,000 | — | — | — | 75,000 | 7.97% | (3) | |||||
| Non-recourse, secured term loan | 646,722 | — | — | — | 646,722 | 6.74% | ||||||
| Total variable-rate debt | 753,102 | (10,983) | — | 9,261 | 751,380 | 6.89% | ||||||
| Total fixed-rate and variable-rate debt | 2,255,020 | (34,864) | 48,271 | 354,139 | 2,622,566 | 5.91% | ||||||
| Unamortized deferred financing costs | (9,276) | 83 | — | (3,006) | (12,199) | |||||||
| Debt discounts (4) | (74,959) | 251 | — | — | (74,708) | |||||||
| Total mortgage and other indebtedness, net | $2,170,785 | $(34,530) | $48,271 | $351,133 | $2,535,659 | |||||||
| December 31, 2024: | Consolidated | NoncontrollingInterests | Other Debt (1) | UnconsolidatedAffiliates | Total | Weighted-AverageInterestRate (2) | ||||||
| Fixed-rate debt: | ||||||||||||
| Non-recourse loans on operating properties | $1,233,767 | $(24,392) | $41,122 | $368,578 | $1,619,075 | 4.98% | ||||||
| 2032 non-recourse bank loan | 170,031 | — | — | — | 170,031 | 6.95% | (3) | |||||
| Recourse loan on an operating property | — | — | — | 4,361 | 4,361 | 7.26% | ||||||
| Total fixed-rate debt | 1,403,798 | (24,392) | 41,122 | 372,939 | 1,793,467 | 5.18% | ||||||
| Variable-rate debt: | ||||||||||||
| Non-recourse loans on operating properties | 32,580 | (11,403) | — | 4,740 | 25,917 | 7.99% | ||||||
| Recourse loan on an operating property | — | — | — | 22,249 | 22,249 | 7.55% | ||||||
| 2032 non-recourse bank loan | 170,031 | — | — | — | 170,031 | 8.65% | (3) | |||||
| Non-recourse, secured term loan | 725,495 | — | — | — | 725,495 | 7.42% | ||||||
| Total variable-rate debt | 928,106 | (11,403) | — | 26,989 | 943,692 | 7.66% | ||||||
| Total fixed-rate and variable-rate debt | 2,331,904 | (35,795) | 41,122 | 399,928 | 2,737,159 | 6.03% | ||||||
| Unamortized deferred financing costs | (8,688) | 168 | — | (2,613) | (11,133) | |||||||
| Debt discounts (4) | (110,536) | 1,803 | — | — | (108,733) | |||||||
| Total mortgage and other indebtedness, net | $2,212,680 | $(33,824) | $41,122 | $397,315 | $2,617,293 | |||||||
(1)
As of December 31, 2025, represents the outstanding loan balance for Southpark Mall. As of December 31, 2024, represents the outstanding loan balance for Alamance Crossing East. These properties were deconsolidated due to a loss of control when the properties were placed into receivership in connection with the foreclosure process.
(2)
Weighted-average interest rate excludes amortization of deferred financing costs.
(3)
This loan was previously referred to as the "open-air centers and outparcels loan." The loan was modified in July 2025. The interest rate is now a fixed 7.70% for $367,956 of the outstanding loan balance through July 2030, with the remaining loan balance bearing a variable interest rate based on the 30-day SOFR plus 4.10%. The full principal balance will convert to a variable rate after July 2030. The Operating Partnership has an interest rate swap on a notional amount of $32,000 related to the variable portion of the loan to effectively fix the interest rate at 7.3975%.
(4)
Represents the difference between the estimated fair value and the outstanding principal balance of applicable loans at the time of fresh start accounting and dates of acquisitions. These discounts are accreted as additional interest expense over the terms of the respective debt using the effective interest method.
The following table presents our pro rata share of consolidated and unconsolidated debt as of December 31, 2025, excluding unamortized deferred financing costs and debt discounts, that is scheduled to mature in 2026 based on the original maturity date (in thousands):
| Balance | ||
|---|---|---|
| Consolidated Debt: | ||
| Parkdale Mall & Crossing | $49,075 | |
| Northwoods Mall | 47,615 | |
| Arbor Place | 85,515 | |
| Fayette Mall | 101,683 | |
| Volusia Mall | 33,165 | |
| Hamilton Place | 77,972 | |
| Jefferson Mall | 48,990 | (1) |
| The Outlet Shoppes at Laredo | 20,397 | |
| West County Center | 140,024 | |
| Secured term loan | 646,722 | (2) |
| Unconsolidated Debt: | ||
| Coastal Grand Mall - Dick's Sporting Goods | 3,287 | |
| York Town Center | 14,210 | |
| Other Debt: | ||
| Southpark Mall | 48,271 | (3) |
| Total 2026 maturities at our pro rata share | $1,316,926 | |
(1)
Subsequent to December 31, 2025, we were notified by the lender that the loan was in default and the property was placed into receivership. See Note 18.
(2)
The loan has a one-year extension option, subject to certain conditions, for a fully extended maturity date of November 2027.
(3)
In July 2025, the loan entered default and the property was placed into receivership. The Company anticipates returning the property to the lender.
Additionally, we have a loan with a principal balance of $9.7 million, at our share, as of December 31, 2025, secured by The Outlet Shoppes at Gettysburg that is past its maturity date. We anticipate returning the property to the lender.
The weighted-average remaining term of our total share of consolidated and unconsolidated debt, excluding debt discounts and deferred financing costs, was 2.6 years and 2.4 years at December 31, 2025 and December 31, 2024, respectively. The weighted-average remaining term of our pro rata share of fixed-rate debt, excluding debt discounts and deferred financing costs, was 3.2 years and 3.0 years at December 31, 2025 and December 31, 2024, respectively.
As of December 31, 2025, our pro rata share of consolidated and unconsolidated variable-rate debt, excluding debt discounts and deferred financing costs, represented 28.7% of our total pro rata share of debt, excluding debt discounts and deferred financing costs. As of December 31, 2024, our pro rata share of consolidated and unconsolidated variable-rate debt, excluding debt discounts and deferred financing costs, represented 34.5% of our total pro rata share of debt, excluding debt discounts and deferred financing costs.
See Note 7 and Note 8 to the consolidated financial statements for additional information concerning the amount and terms of our outstanding indebtedness as of December 31, 2025.
Equity
We paid common stock dividends of $0.40 per share in each of the first and second quarters of 2025 and $0.45 per share in each of the third and fourth quarters of 2025. Additionally, our board of directors declared a special dividend of $0.80 per share, which was paid in cash during the first quarter of 2025. The special dividend was made to ensure that we meet the minimum requirement to maintain our status as a REIT. The decision to declare and pay dividends on any outstanding shares of our common stock, as well as the timing, amount and composition of any such future dividends, will be at the sole discretion of our board of directors and will depend on our earnings, taxable income, FFO, liquidity, financial condition, capital requirements, contractual prohibitions or other limitations under our then-current indebtedness, the annual distribution requirements under the REIT provisions of the Internal Revenue Code, Delaware law and such other factors as our board of directors deems relevant. Any dividends payable will be determined by our board of directors based upon the circumstances at the time of declaration. For additional information, see discussion presented under the subheading “Dividends” in Note 9 of this report. Our actual results of operations will be affected by a number of factors, including the revenues received from our properties, our operating expenses, interest expense, capital expenditures and the ability of the anchors and tenants at our properties to meet their obligations for payment of rents and tenant reimbursements. Subsequent to December 31, 2025, our board of directors declared a $0.45 per share regular quarterly dividend for the first quarter of
- The regular quarterly dividend is payable in cash on March 31, 2026, to shareholders of record as of March 17, 2026. See Note 18.
Upon our emergence from bankruptcy on November 1, 2021, we experienced an “ownership change” under Sections 382 and 383 of the Internal Revenue Code, which can limit our ability to use certain tax attributes—including net operating loss (“NOL”) carryforwards and other deductions—to offset future taxable income. In addition, because we had built-in losses in our assets at that time, certain taxable income deductions realized during the five-year recognition period following the ownership change (the “2021 Recognition Period”) were subject to limitation.
The 2021 Recognition Period expires on November 1, 2026; as of that date, our ability to recognize certain deductions will no longer be limited because of the 2021 ownership change.
The recognition of additional tax deductions may cause a greater portion of distributions paid to shareholders after December 31, 2026 to be treated, for U.S. federal income tax purposes, as a non-taxable return of capital and a reduction in the basis of shareholder stock. Notwithstanding the expiration of the 2021 Recognition Period, our pre‑November 1, 2021 NOLs and other tax attributes generally remain subject to the Section 382 annual limitation, and any built-in losses disallowed during the recognition period may carry forward and remain subject to applicable limitations.
We remain subject to Sections 382 and 383 and could experience another ownership change in the future. If we experience an ownership change, our ability to use future tax deductions, net operating loss carryforwards and other tax attributes to offset future taxable income may be subject to limitations.
In November 2025, our board of directors authorized the repurchase of up to $25.0 million of the Company's common stock. The authorized share repurchase program has an expiration date of November 5, 2026 and replaces the existing program authorized in May 2025. In August 2023, our board of directors authorized the repurchase of up to $25.0 million of our outstanding common stock. See Part II, Item 5 for additional information regarding our repurchases of common stock during 2025.
Capital Expenditures
The following table, which excludes expenditures for developments and expansions, summarizes capital expenditures, including our share of unconsolidated affiliates' capital expenditures, for the years ended December 31, 2025 and 2024, (in thousands):
| Year Ended December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Tenant allowances (1) | $20,942 | $19,863 |
| Maintenance capital expenditures: | ||
| Parking area and parking area lighting | 8,584 | 5,047 |
| Roof replacements | 4,360 | 6,801 |
| Other capital expenditures | 22,741 | 19,497 |
| Total maintenance capital expenditures | 35,685 | 31,345 |
| Capitalized overhead | 1,020 | 859 |
| Capitalized interest | 518 | 562 |
| Total capital expenditures | $58,165 | $52,629 |
(1)
Tenant allowances primarily relate to new leases. Tenant allowances related to renewal leases were not material for the periods presented.
Annual capital expenditures budgets are prepared for each of our properties that are intended to provide for all necessary recurring and non-recurring capital expenditures. We believe that property operating cash flows, which include reimbursements from tenants for certain expenses, will provide the necessary funding for these expenditures.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.