CHATTANOOGA, TN—Second quarter earnings by CBL & Associates showed continued momentum from the first quarter by the retail REIT.
The firm's Funds from Operations in the second quarter totaled $0.55 per share, which bested RBC Capital Markets' projections by $0.03 and consensus by $0.02.
The company reports that Net Operating Income in its mall portfolio rose 1.4% on top of the 1.6% posted at the end of the first quarter of this year. Occupancy at CBL & Associates' properties rose 100 basis points to 93.5%. In the second quarter, the stabilized mall occupancy rate increased to 92.9%, while the rates for associated centers and community centers increased to 95% and 97% respectively.
During the quarter, CBL identified 21 malls for possible sale and six others that were added to its workout category. The Lakeshore Mall in Sebring, FL, which was in its workout category, was sold in the quarter for $14 million. The firm also sold an expansion at the Foothills Plaza in Maryville, TN for $2.6 million.
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