Three CBL malls currently have both stores in them, and Belk will likely vacate one of the spaces in each unless they opt to have two units in a mall, says Stephen Lebovitz, CBL's president. But he says the three malls, Citadel Mall, in Charleston, SC; Hamilton Place, in Chattanooga; and Madison Square, in Huntsville, AL are all strong-performing assets. "We think there's good demand for the spaces," he says.

Some options could include Belk subleasing to other tenants or the selling of the spaces back to CBL. There are four other Parisians in the CBL's portfolio of 79 regional centers which are not in assets that already have a Belk.

Also during the conference call, management revealed that CBL has a development pipeline of 9.5 million sf through 2009 at a total cost of $1.2 billion. This year the firm is expected to deliver two million sf at a $221-million price tag. "We are continuing to see demand from both retailers and consumers," Lebovitz says.

However, observers might not see CBL acquiring as many properties in the near future, given the high pricing of malls in today's climate, he says. "My sense is that almost all of the transactions this year are by private buyers. We're being very selective and careful with pricing where it is."

During its second quarter, which ended June 30, year-over-year FFO rose 6.8%, to $88.5 million, while net income increased from $41.5 million to $46.2 million. However, occupancy dipped slightly across its portfolio, from 91.9% to 91.4%.