CBL Properties Lifts 2026 Guidance as NOI Climbs 3.8%

CBL Properties (NYSE: CBL) reported third-quarter 2026 results on November 5, with same-center net operating income up 3.8% year over year and portfolio occupancy at 91.5%, up 130 basis points from 90.2% a year earlier. The Chattanooga-based mall REIT said adjusted funds from operations reached $1.90 per share, a 23% increase from $1.55 in the prior-year quarter. CBL also raised full-year 2026 guidance for both same-center NOI and FFO, the second increase this year. The company said it closed on the $135.0 million refinancing of West County Center in October.

Context — why CBL's guidance raise matters now

The guidance increase lands against a commercial real estate backdrop where regional mall landlords have spent several years working through bankruptcy-driven store closures and debt maturities. CBL's own results show the operational side improving faster than the balance sheet repair: same-center NOI grew 2.6% over the nine months ended September 30, 2026, versus the prior-year period, while portfolio occupancy climbed 110 basis points sequentially from the end of the second quarter.

Mall occupancy rose 210 basis points year over year to 89.7%, the company said, despite roughly 68,000 square feet of bankruptcy-related store closures that reduced mall occupancy by nearly 50 basis points. That gap between gross leasing and net occupancy gains is the key detail for anyone tracking tenant credit in the sector.

On the financing side, CBL said it has completed nearly $1.0 billion of new financings year-to-date, clearing its 2026 loan maturities. The company now has no major maturities until 2028, when loans secured by three properties come due. CEO Stephen D. Lebovitz said the refinancings added more than $45.0 million in annual free cash flow.

The company also flagged a tax development: the five-year recognition period under Section 382 of the Internal Revenue Code that followed its emergence from bankruptcy expired on November 1, 2026. CBL said this removes the limitation on recognizing certain tax deductions tied to the 2021 ownership change, which could allow more favorable return-of-capital treatment on future dividends if the company disposes of assets carrying large tax losses.

Data — what the numbers show

The headline figures compare favorably with the prior-year quarter across every operating line the company disclosed.

Metric	Q3 2026	Q3 2025	Change
Same-center NOI	$96.2M	$92.7M	+3.8%
FFO, as adjusted, per share	$1.90	$1.55	+23%
Net income per share	$0.37	$2.38	-84%
Portfolio occupancy	91.5%	90.2%	+130 bps
Trailing 12-month sales per sq ft	$463	$447	+3.6%

GAAP net income attributable to common shareholders fell sharply to $0.37 per share from $2.38, a decline driven by items outside the operating comparison. FFO as reported was $1.05 per share versus $2.17 a year earlier, while adjusted FFO strips out those items.

Same-center NOI growth for the quarter was built on $6.4 million of higher rental revenue, which the company attributed to occupancy gains and a $0.4 million increase in percentage rent. Total operating expenses rose $2.6 million, split between $1.5 million higher maintenance and repair costs and $1.5 million higher real estate taxes, largely because the prior-year period included tax refunds.

Leasing volume reached more than 930,000 square feet in the quarter, including about 460,000 square feet of comparable new and renewal leases signed at a 6.8% increase in average gross rents. New leases alone came in 27.0% above prior rents, while renewal leases averaged a 2.0% increase. Same-center tenant sales per square foot rose about 3.0% in the quarter.

CBL held $366.7 million in unrestricted cash and marketable securities as of September 30, including $15.8 million of its share of joint venture cash.

Analysis — what it means for markets and sectors

The adjusted FFO beat matters more than the GAAP net income decline for REIT investors, because FFO strips out real estate depreciation that distorts earnings comparisons. The 23% per-share increase in adjusted FFO against 3.8% same-center NOI growth implies the refinancing activity is doing real work on the bottom line, not just the top.

For the mall REIT sector broadly, CBL's occupancy gain and positive comparable lease spreads contrast with the narrative that enclosed malls face terminal decline. The 6.8% blended rent spread and 27.0% new-lease spread suggest demand for well-located space remains firm, though the company's disclosure that bankruptcy closures still cost nearly 50 basis points of mall occupancy shows tenant credit risk has not disappeared.

The counter-argument is that same-center NOI excludes lease termination fees and non-cash items like straight-line rents, so the headline growth rate flatters the cash picture relative to reported revenue. A reader comparing CBL's 3.8% same-center NOI growth to its GAAP net income decline of 84% sees two very different pictures of the same quarter.

The six non-recourse loans aggregating roughly $266.7 million at CBL's share that are being resolved through lender-directed sale, foreclosure or conveyance represent the remaining drag. Completing those transactions removes debt and simplifies the portfolio, but each conveyance also removes whatever NOI those properties generate.

Positioning-wise, the new $25.0 million stock repurchase program authorized on November 4 signals management's view that the share price does not reflect portfolio value. That is a capital allocation decision, not a market call, and the company has not disclosed how quickly it intends to execute.

Outlook — what to watch next

CBL raised full-year 2026 guidance for same-center NOI and FFO, though the specific revised ranges were not included in the earnings release excerpt. The fourth quarter will face tougher comparisons because the prior-year period included tax refunds and bad debt recoveries, which the company explicitly flagged.

Investors should watch the pending $11.3 million sale of Eastland Mall in Bloomington, Illinois, which the company said is under firm contract with a non-refundable deposit and expected to close in November, subject to customary conditions. The company is also in discussions with lenders on Arbor Place Mall, Parkdale Mall and Crossing, and Volusia Mall.

On the financing side, the loan secured by The Outlet Shoppes at Laredo was extended only through the end of November 2026, and CBL said it is evaluating a refinancing, conveyance or sale. That resolution is the nearest-term balance sheet event.

The dividend of $0.625 per common share for the fourth quarter, payable December 31 to holders of record as of December 14, equates to $2.50 annually. Any change in the pace of share repurchases or asset sales would be the next signal on capital allocation priorities.

Frequently Asked Questions

What does CBL's guidance raise mean for retail investors?

CBL raised full-year 2026 guidance for same-center NOI and FFO after third-quarter adjusted FFO per share rose 23% to $1.90. For income-focused investors, the declared fourth-quarter dividend of $0.625 per share maintains a $2.50 annual rate. The company also authorized a $25.0 million buyback. None of these are guarantees of future performance, and the fourth quarter faces tougher comparisons because the prior-year period included tax refunds and bad debt recoveries.

Why did CBL's net income fall while adjusted FFO rose?

GAAP net income attributable to common shareholders fell to $0.37 per share from $2.38, while FFO as reported was $1.05 versus $2.17. Adjusted FFO, which excludes certain items, rose to $1.90 from $1.55. The divergence reflects items outside the operating comparison rather than a deterioration in rental operations, which the company measured through same-center NOI growth of 3.8%.