CBL Properties Acquires Four Malls in $178.9 Million Deal

By Philip Seaworth • Wednesday, July 30 15:32 • Permanent Link

CBL Properties has just made a significant acquisition, adding four regional malls to its portfolio for $178.9 million. The acquired properties include Ashland Town Center in Kentucky, Mesa Mall in Colorado, Paddock Mall in Florida, and Southgate Mall in Montana. This move reinforces CBL's position as a leading owner and manager of enclosed malls in growing middle markets.

In the past year and a half, CBL has been actively reshaping its portfolio. They have completed sales of over $241 million in non-core malls, open-air centers, and outparcels. The most recent sale was the $83.1 million transaction of the Promenade, a premier power center in Mississippi.

The acquisition of these four malls is expected to have an immediate positive impact on CBL's cash flow per share and funds from operations (FFO). It is also noted to be moderately deleveraging to the company's balance sheet.

To fund these acquisitions, CBL has modified and extended its existing non-recourse outparcel and open-air center loan with Beal Bank USA. The principal balance was increased by $110.0 million to approximately $443.0 million, and the loan now has a seven-year term, providing more favorable terms for the company.

This strategic move is part of CBL's ongoing portfolio optimization strategy, where they aim to redeploy proceeds from non-core asset sales into stable and growing assets that generate immediate accretion to the portfolio's cash yield.

The acquired malls are not only expected to enhance CBL's operating metrics through increased sales and occupancy but also offer both near* and long-term growth opportunities. Each of these properties is positioned well in their respective markets and is expected to contribute positively to CBL's financial performance.

This acquisition is a significant step for CBL Properties as they continue to focus on delivering strong returns to their shareholders and strengthening their position as a prominent owner and manager of retail properties in dynamic and growing communities. The market has reacted to these announcements by moving the company's shares 1.98% to a price of $27.86. If you want to know more, read the company's complete 8-K report here.

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