Executive Summary

Q4 2024 delivered GAAP diluted EPS of $1.22 and FFO per diluted share of $2.42; FFO, as adjusted, was $1.92 with same‑center NOI down 1.6% YoY, reflecting weaker percentage rents and higher credit loss estimates .
Management initiated 2025 guidance: FFO, as adjusted, of $6.98–$7.34 per share and same‑center NOI of $427–$438 million (-2.0% to +0.5%), with a bridge highlighting percentage rent headwinds, operating expense increases, and bankruptcy‑related reserves .
Balance sheet actions and portfolio moves were a positive catalyst: ~$514 million of Q4 financing activity, JV buy‑in to 100% ownership of three top malls (assuming $266.7 million of non‑recourse debt), and the declaration of a $0.80 special dividend plus $0.40 regular dividend for Q1 2025 .
Sequential occupancy improved to 90.3% (up 100 bps vs Q3), leasing volume was strong (1.38M sf leased in Q4), but comparable lease rents were roughly flat, and percentage rents fell; unrestricted cash/marketable securities ended at $283.9 million .

What Went Well and What Went Wrong

What Went Well
- “2024 was an outstanding year for CBL… highlighted by the achievement of positive same‑center NOI growth” and strong transactional/financing activity improving balance sheet resilience .
- Accretive consolidation of JV interests in CoolSprings Galleria, Oak Park Mall, and West County Center, plus extensions/new non‑recourse loans at favorable terms (e.g., Oak Park Mall to 2030 at 5%) .
- Leasing momentum: ~1.4M sf signed in Q4 (4.5M sf in 2024), with brands like Kendra Scott, J.Crew Factory, Barnes & Noble, Drybar, Cooper’s Hawk; sequential occupancy up 100 bps in Q4 .
What Went Wrong
- Q4 same‑center NOI down 1.6% YoY driven by ~$0.6M decline in percentage rents and an unfavorable ~$1.3M credit loss variance; comparable lease rents roughly flat in Q4 .
- Mall occupancy pressure from bankruptcy closures (~290k sf), with same‑center mall/lifestyle/outlet occupancy down 110 bps YoY to 88.7% .
- Percentage rent and operating expense headwinds embedded in 2025 guidance bridge (negative impact from sales trends, higher breakpoints upon renewal, and potential expense increases) .

Financial Results

Sequential quarterly performance (company-reported):

Metric	Q2 2024	Q3 2024	Q4 2024
Revenue ($USD Thousands)	$129,665	$125,089	$131,690
Diluted EPS ($USD)	$0.14	$0.52	$1.22
FFO per diluted share ($USD)	$1.51	$1.28	$2.42
FFO, as adjusted, per diluted share ($USD)	$1.73	$1.54	$1.92
Same‑center NOI ($USD Thousands)	$108,259	$101,722	$121,723

YoY comparison for Q4:

Metric	Q4 2023	Q4 2024	YoY Change
Revenue ($USD Thousands)	$139,709	$131,690	-$8,019
Diluted EPS ($USD)	$1.87	$1.22	-$0.65
FFO, as adjusted, per diluted share ($USD)	$1.94	$1.92	-$0.02
Same‑center NOI ($USD Thousands)	$123,704	$121,723	-$1,981

Same‑center NOI by property type:

Segment (NOI $USD Thousands)	Q4 2023	Q3 2024	Q4 2024
Malls	$89,941	$68,466	$86,968
Outlet Centers	$5,505	$5,351	$5,927
Lifestyle Centers	$9,126	$8,613	$9,190
Open‑air Centers	$13,604	$13,826	$13,882
Outparcels & Other	$5,528	$5,466	$5,756
Total	$123,704	$101,722	$121,723

KPIs and operating metrics:

KPI	Q2 2024	Q3 2024	Q4 2024
Total portfolio occupancy at period end	88.7%	89.3%	90.3%
Same‑center tenant sales psf (TTM)	$417	$418	$418
Total leasing activity (sf, new+renewals)	1,074,614	882,296	1,376,834
Comparable lease avg rent change	+8.8%	+9.5%	-0.6%
Unrestricted cash & marketable securities ($mm)	$295.8	$307.0	$283.9

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
FFO, as adjusted, per share	FY 2025	N/A	$6.98–$7.34	Initiated
Same‑center NOI ($mm)	FY 2025	N/A	$427–$438; (-2.0%) to (+0.5%)	Initiated
Maintenance capital/tenant allowances ($mm)	FY 2025	N/A	$40–$55	Initiated
Development/redevelopment ($mm)	FY 2025	N/A	$5–$10	Initiated
Principal amortization ($mm)	FY 2025	N/A	$85–$95	Initiated
Total capital items ($mm)	FY 2025	N/A	$130–$160	Initiated
Regular dividend per common share	Q1 2025	$0.40 (maintained)	$0.40	Maintained
Special dividend per common share	Q1 2025	N/A	$0.80	New

Notes: The 2025 same‑center NOI bridge quantifies expected impacts from leasing (+$6.5–$11.0mm), percentage rent (-$2.0–$3.0mm), operating expense (-$4.0–$7.0mm), credit loss (-$3.7–$5.2mm), and uncollectable revenue variance (up to +$1.0mm) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Leasing demand & rent spreads	>1.0M sf leases; comparable +8.8% avg rent change; positive spreads across new/renewals	880k sf; comparable +9.5% avg change; continued strong demand	1.38M sf; comparable leases ~859k sf with ~flat avg rents QoQ; brand additions (Kendra Scott, J.Crew Factory, Barnes & Noble, Drybar, Cooper’s Hawk)	Moderating spreads in Q4
Occupancy trajectory	86.8% same‑center malls/lifestyle/outlet; bankruptcy closures (Express, rue21 ~234k sf) pressured occupancy	Same‑center malls/lifestyle/outlet 87.4%; sequential improvement vs Q2; bankruptcy closures impact	Total portfolio 90.3% (up 100 bps seq); same‑center malls/lifestyle/outlet 88.7%; bankruptcy closures (~290k sf) impacted malls (-184 bps)	Sequentially improving; YoY mixed
Tenant sales & percentage rent	TTM sales psf $417; % rent down $0.3M in Q2	TTM sales psf $418; % rent down $1.1M in Q3	Q4 sales psf up ~1% YoY; % rent down $0.6M	Sales stable; % rent headwind
Financing & de‑risking	Retired Brookfield Square loan; transferred WestGate Mall; Aloft loan refi non‑recourse 7.2%	New Hammock Landing 10‑yr loans at 5.86%; Bluegrass refi at 6.84% to 2034; share repurchases	~$513.7mm Q4 financing; extensions at West County (to 2026) & Oak Park (to 2030 at 5%); JV buy‑in to 100% ownership of 3 top malls	Positive
Capital returns	Program extended; >$19.4mm repurchases YTD; $0.40 dividend	Completed $25mm program; block repurchase 500k shares ($12.525mm); $0.40 dividend	Regular $0.40 and special $0.80 dividends approved; >$37mm share repurchases in 2024	Positive
Credit & bankruptcy exposure	Anticipated closures (~234k sf) with rue21 reopenings planned	Additional closures; reopening agreements for ~94.4k sf rue21 stores	2025 bridge includes credit loss reserve (-$3.7 to -$5.2mm); bankruptcy closures (~290k sf) impacted mall occupancy	Risk prudently budgeted

Management Commentary

“2024 was an outstanding year for CBL… Financial results were strong, highlighted by the achievement of positive same‑center NOI growth… We made tremendous improvements to our balance sheet during the fourth quarter with more than $500 million in financing activity completed.” — Stephen D. Lebovitz, CEO .
“We increased our regular dividend rate at the start of 2024, and now our Board has approved our regular quarterly dividend as well as a significant special dividend totaling $1.20 per share, to be paid in all cash.” — Stephen D. Lebovitz .
“Leasing volumes were healthy in 2024… Comparable shop leases were signed at positive lease spreads of 5.8% for both new and renewal leases.” — Stephen D. Lebovitz .

Q&A Highlights

The Q4 2024 earnings call transcript was not available via our document tools and search, so Q&A details could not be extracted. Key clarifications provided in the release and supplement include the explicit 2025 same‑center NOI guidance bridge (quantifying leasing, percentage rent, operating expense, credit loss, and uncollectable variance impacts) and financing terms on major assets (e.g., Oak Park 5% fixed to 2030; West County to 2026) .

Estimates Context

S&P Global consensus estimates for Q4 2024 EPS and revenue were unavailable at the time of this analysis; therefore, we could not present beat/miss versus consensus. Values retrieved from S&P Global were unavailable due to API request limits (no estimates included).
Based on management’s 2025 guidance, consensus may need to reflect: (a) lower percentage rent assumptions and higher breakpoints at renewals, (b) higher operating expense run‑rate, and (c) bankruptcy‑related reserve impacts embedded in same‑center NOI; accretive effects from consolidating JV interests at three top malls should also be incorporated .

Key Takeaways for Investors

Dividend catalyst: a $0.80 special dividend plus a maintained $0.40 regular dividend boosts near‑term cash returns; signals confidence in balance sheet and taxable income management .
Portfolio quality and control: acquiring partners’ stakes in CoolSprings, Oak Park, West County concentrates ownership in top assets and should enhance cash flows and redevelopment value capture (e.g., CoolSprings densification) .
Operating trajectory: sequential occupancy improved and leasing volume remained strong, but Q4 comparable rent spreads were roughly flat and percentage rents declined; monitor sales trends and renewals’ breakpoints .
2025 setup: guidance is conservative on same‑center NOI (-2.0% to +0.5%) given expense and credit loss headwinds; FFO, as adjusted, guided higher vs 2024 actuals ($6.69) as balance sheet actions and consolidated assets contribute .
Financing de‑risking: extensions and new non‑recourse loans at favorable rates/maturities reduce near‑term refinancing risk and interest cost volatility .
Liquidity: unrestricted cash/marketable securities at $283.9mm provide flexibility for leasing, redevelopment, and shareholder returns; watch cash‑trapped properties disclosures and debt accretion .
Trading implications: near‑term sentiment supported by special dividend and portfolio consolidation; medium‑term performance hinges on stabilizing percentage rents, executing redevelopment, and managing bankruptcy exposures embedded in 2025 guidance .

CBL & ASSOCIATES PROPERTIES INC (CBL)·Q4 2024 Earnings Summary