CBL Raises 2026 FFO Outlook After NOI Growth Accelerates

The Tip Desk · November 7, 2026 · 3 min read

Same-center NOI rose 3.8% in the third quarter as CBL lifted full-year adjusted FFO to $7.34–$7.44 a share.

CBL Properties (CBL) reported same-center net operating income up 3.8% in the third quarter ended September 30, 2026, a faster year-over-year pace than the 1.5% increase in the second quarter, and raised its 2026 funds-from-operations outlook for the second time this year.

The mall and open-air REIT said adjusted FFO was $1.90 a share in the third quarter, compared with $1.55 a share a year earlier, a 23% increase. Net income attributable to common shareholders was $0.37 a share.

Same-center NOI for the quarter was $96.2 million, up $3.5 million from a year earlier. Rental revenue growth of $6.4 million was driven by higher occupancy and a $0.4 million increase in percentage rent. Operating expenses rose $2.6 million, including $1.5 million higher maintenance and repair expense and $1.5 million higher real estate taxes, which the company said resulted primarily from tax refunds in the prior-year period. An estimate for uncollectable revenues favorably impacted the quarter by about $1.9 million.

Chief Executive Officer Stephen D. Lebovitz said growth was driven by embedded rent increases, rental increases in renewal leasing and higher occupancy.

Portfolio occupancy was 91.5% as of September 30, 2026, up 110 basis points from 90.4% at June 30. Mall occupancy rose 210 basis points year over year despite bankruptcy-related store closures of about 68,000 square feet that reduced mall occupancy by nearly 50 basis points.

Leasing volume was more than 930,000 square feet, including about 460,000 square feet of comparable new and renewal leases signed at a 6.8% increase in average gross rents versus prior rents. New leases came in 34% above prior rents. The company said the quarter added $4.6 million in net new annual rent.

Same-center tenant sales per square foot for the rolling 12 months ended September 30 were $463, up 3.6% from a year earlier. Third-quarter same-center sales per square foot increased about 3.0% versus the year-ago period.

CBL is increasing FFO, as adjusted, guidance for 2026 to $7.34–$7.44 a share. Management now anticipates same-center NOI for full-year 2026 in the range of 0.75% to 2.25%. Volusia Mall has been removed from the same-center pool, reflecting cooperation with the lender on a sale, foreclosure or conveyance of the property.

The company said fourth-quarter comparisons will reflect tax refunds and bad-debt recoveries recognized in the prior-year period.

Year-to-date, CBL closed nearly $1.0 billion of new financings and said it has no major maturities until 2028. In October it closed a $135.0 million five-year refinancing of West County Center at a 7.4% fixed rate, removing a cash-management sweep and unlocking more than $7.0 million of annual free cash flow. Other 2026 refinancings included Hamilton Place, Fayette Mall and Northwoods Mall.

Gross sales proceeds at CBL’s share exceeded $101.3 million year-to-date, including Hammock Landing, York Town Center and Old Hickory Mall, plus land parcels. The company is under firm contract to sell Eastland Mall for $11.3 million. Six non-recourse loans aggregating about $266.7 million at CBL’s share are in the process of being resolved through lender-directed sale, foreclosure or conveyance.

Unrestricted cash and marketable securities were $366.7 million as of September 30, including $15.8 million of joint-venture cash. On October 14 the board approved a $0.625-a-share fourth-quarter dividend, an annual rate of $2.50. On November 4 it authorized a $25.0 million stock-repurchase program.