Cbl & Associates Properties, Inc. · NYSE:CBL
Cbl & Associates Properties — Investor Presentation (November 2024)
24 slides from Cbl & Associates Properties's investor presentation, November 2024
Slide 1: Investor Presentation | Q3 2024
INVEST OR PRESENTATION | Q3 2024 CBL PROPERTIES
Slide 2: Introduction to CBL
GET TO KNOW US Introduction to CBL We own and manage a diverse national portfolio of market-dominant malls, lifestyle centers, outlet centers, and open-air centers in dynamic and growing mid-tier markets. ~$780M $2.44B $6.57 $431M 09/30/24 Equity Total Pro Rata Share Midpoint 2024 per share FFO, Mid
Slide 3: Dominant Assets in Dynamic Markets
DOMINANT ASSETS IN DYNAMIC MARKETS More than Malls… Our Portfolio 13% Open Air/Power Centers 91 Properties INVESTOR PRESENTATION | NOVEMBER 2024 45 Malls DOMINANT 5% Outparcels ASSETS IN 27 Open-air Centers DYNAMIC MARKETS 8% Lifestyle Centers 5 Outlet Centers 5 Lifestyle Centers 5% Outlet Centers 5
Slide 4: The CBL Portfolio
The CBL Portfolio CBL Asset Pools: 50% 45% Term Loan Pool: 15 Malls; 3 Consolidated Lifestyle; 1 Open-Air Unencumbered Assets: 40% • Secures term loan w/ 16 Malls; 2 Open-Air; 2 initial maturity 11/25 w/ 2 Office; Outparcels/Other 35% 1-year extensions to 2027 • ~$66M of ‘23 NOI • Net proceeds from
Slide 5: Q3 2024 Updates
UPDATES Q3 2024 Updates Portfolio Occupancy Share Repurchase Activity Cash Balance Portfolio occupancy increased 60 Over $37.5 million in share Cash balance of $295 million(1) INVESTOR PRESENTATION | NOVEMBER 2024 bps sequentially to 89.3% as of repurchase activity completed since 09/30/24 program a
Slide 6: CBL Value Proposition
CBL Value Proposition Significant In-Place Maximizing Valuation Investment 01 Cash Flow 02 Upside 03 Capital 04 Return of 05 Generation Structure Opportunities Capital • $147mm of stable cash • With a well positioned • Non-recourse debt with $50mm Regular Dividends • Selectively evaluate flows befor
Slide 7: Illustrative Discretionary Cash Flow at 2024 Guidance Midpoint
Illustrative 2024 at Midpoint of Discretionary 11/11/24 Guidance (1) 2024 SC NOI $431 million Cash Flow 2024 FFO, as adjusted $203 million • Significant amortization of loans secured by high quality properties accrues to equity. Less: Est. Capex/TA $43 million • Amortization provides potential lever
Slide 8: Significant Cash Flow Generation
CBL VALUE PROPOSITION Significant Cash Flow Generation CBL YIELDS AT VARIOUS PRICES MAJOR SECTOR AVERAGES $22.50 $25.00 $27.50 $30.00 $32.50 Mall Open Air Office MF Industrial Hotel 1.2 1.2 35% 35% 30% 30% 1 1 29% 29% 25% 25% 0.8 26% 0.8 24% 2024E 0.6 22% 20% 0.6 20% 20% FFO Yield 15% 15% 0.4 0.4 10
Slide 9: Ability & Commitment to Maximizing Returns to Shareholders
CBL VALUE PROPOSITION Ability & Commitment to Maximizing Returns to Shareholders Significant Recurring Cash Flow with 26% FFO, as $203mm 2024 FFO, as adjusted, at Midpoint adjusted, Yield (1) Approximately $43mm 2024 Capex / TA and Ongoing Focus on Disciplined Capital Spending $13mm Redevelopment at
Slide 10: CBL Capital Structure Provides Value Drivers Beyond NAV Approach
CBL VALUE PROPOSITION CBL Capital Structure Provides Value Drivers Beyond NAV Approach Low Levered, Flexible Balance Sheet $66mm of Unencumbered 2023 NOI $295mm of Cash (1) Provides Balance Sheet Flexibility Nearly 98% Non-Recourse Property Debt Limits Capital Outlays for Upcoming Maturities Limited
Slide 11: Clear Path to Further Optimization
FLEXIBLE BALANCE SHEET Clear Path to Further Optimization $5,000 $4,364 $4,500 $4,000 1375 $3,500 Significant Debt Reduction Nearly $2.0 billion debt reduction with additional $2,445 (1) INVESTOR PRESENTATION | NOVEMBER 2024 $3,000 deleveraging underway. $2,500 $1,115 $2,000 $731 $1,500 $616 Non-Rec
Slide 12: Property Loan Maturities
FLEXIBLE BALANCE SHEET Status: Property Loan Maturities Maturity Interest Rate 6/30/24 Balance Action INVESTOR PRESENTATION | NOVEMBER 2024 Coastal Grand Mall & Outparcel Aug - 24 4.09% $49.7 Extension/modification of existing loan Coastal Grand DSG Nov - 24 5.05% 3.3 Refinance/extend Total /WA $53.
Slide 13: Enhanced Disclosures
SUPPLEMENTAL INFORMATION Enhanced Disclosures Q3 Supplemental Page 17 (2) • CBL owns and manages 12 assets where cash flows are restricted by the lender • These are all non-recourse loan obligations several of which exhibit low debt yields • As illustrated on the next slide, isolating the 2023 NOI &
Slide 14: Illustrative Net Asset Value
Current discount to estimated Net Asset Value (provides significant upside opportunity (1) Illustrative Illustrative Illustrative 2023 Cap Rate Range Asset Value at 9/30/2024 Equity Value at (2) CBL VALUE PROPOSITION $ in millions except per share values NOI High Low Midpoint Debt Midpoint Term Loan
Slide 15: Well-Positioned to Capitalize on Attractive Investment Opportunities
CBL VALUE PROPOSITION Well-Positioned to Capitalize on Attractive Investment Opportunities Redevelopment Development Investment • Anchor transformations to energize centers and add more relevant concepts • Focus on creating value with attractive returns by utilizing intrinsic land value and joint •
Slide 16: Significant Non-Retail Activity
HIGHLIGHTS OF DIVERSIFICATION Significant Non-Retail Activity Entertainment: Multi-Family: • 4 executed Hotels: • 4 executed • 1 out for signature • 2 executed Restaurants: Medical: Other Non-Retail: • 10 out for signature • 3 executed • 3 out for signature • 9 executed • 4 executed 16 As of Novembe
Slide 17: Anchor Transformations
Anchor Transformations Over three dozen anchor replacements since 2017 - majority effected with little to no capital outlay by CBL: Property Former Anchor Replacement Status Property Former Anchor Replacement Status Layton Hills Macy’s (Dillard’s) Dillard’s Open* Westmoreland Mall BonTon Stadium Liv
Slide 18: Redevelopments: Recent & Underway
CAPITAL IMPROVEMENTS Redevelopments: Recent & Underway Total Cost Pro Forma Initial Opening Date (Net of Reimbursements) Unleveraged Yield Hamilton Place – Crunch Fitness (former $2.6 23.3% OPEN – Q4 ‘24 Sears) INVESTOR PRESENTATION | NOVEMBER 2024 Mayfaire Town Center – Hotel Development $15.4 11.0
Slide 19: Operational Performance
3rd QUARTER 2024 Operational Performance 163 bps impact on mall occupancy in Q3 from tenant BK-related store closures CBL has executed agreements to reopen 14 rue21 stores, representing approximately 94,400 square feet, under its new ownership by first quarter 2025, with the majority opening in 2024
Slide 20: Operational Performance
3rd QUARTER 2024 Operational Performance Leasing volumes remain strong with total SF executed exceeding pre -pandemic levels. Executed Leases 9M ’24 2023 2022 2021 2020 Total SF Leased 3.1M 4.4M 4.1M 3.2M 2.7M Comp SF Leased 1.8M 2.7M 2.1M 1.8M 1.6M Avg. Portfolio Comp 9.6% 0.0% (5.2)% (11.2)% (13.7
Slide 21: CBL's Commitment to ESG
OUR COMMITMENT CBL’s Commitment to ESG: • Maintaining strong and transparent corporate governance, including regular reviews of best practices. • Implementing environmentally conscious practices in our operations and development. • Engaging in our communities and donating our time and resources to 5
Slide 22: CBL & Sustainability
COMMITMENT TO ESG CBL & Sustainability CBL's management and development teams have worked to identify ways to reduce our environmental footprint by installing energy management systems across our portfolio, utilizing energy-efficient lighting, and energy-efficient water fixtures. 2024 GOALS: - Compl
Slide 23: Advancing Inclusion & Belonging
COMMITMENT TO ESG Advancing Inclusion & Belonging CBL has long valued an inclusive and welcoming environment for our team members and the communities we serve. We are committed to a workplace free from discrimination and harassment, and we value the diverse perspectives, backgrounds, and experiences
Slide 24: Safe Harbor Statement
Safe Harbor Statement While the information contained in this presentation is provided in good faith, neither CBL & Associates Properties Inc. (together with its subsidiaries and affiliates, “CBL”, of the “Company”) nor any of its advisers, representatives, officers, agents or employees makes any re
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