CBL Properties Announces Block Share Repurchase

Rhea-AI Summary

CBL Properties (NYSE:CBL) has announced the completion of a 500,000 share repurchase for $12.525 million in a privately negotiated block trade from a single shareholder. This repurchase is separate from CBL's existing stock repurchase program, which was announced on August 10, 2023, authorizing the company to buy up to $25.0 million of its common stock.

As of September 20, 2024, CBL had completed all repurchase activity under this program, acquiring a total of 1,074,826 shares at a weighted average share price of $23.259 per share. CEO Stephen D. Lebovitz expressed satisfaction with the repurchase of over 1.5 million shares at attractive valuations, viewing it as an investment demonstrating confidence in the company's future and commitment to returning capital to shareholders. Following the cancellation of repurchased shares, CBL currently has 30,749,272 shares of common stock outstanding.

Positive

• Repurchased 500,000 shares for $12.525 million in a block trade
• Completed $25.0 million stock repurchase program
• Acquired 1,074,826 shares at $23.259 per share under the program
• Total repurchase of over 1.5 million shares at attractive valuations
• Demonstrates confidence in company's future and commitment to shareholder returns

Negative

• Reduction in cash reserves due to share repurchases

Insights

Financial Analyst

The block share repurchase of 500,000 shares for $12.525 million is a significant move by CBL Properties, demonstrating strong confidence in the company's value. This repurchase, combined with the completed $25 million stock repurchase program, has reduced the outstanding shares by over 5%, potentially boosting earnings per share and shareholder value.

The weighted average share price of $23.259 for the previous program suggests the new block purchase at $25.05 per share represents a 7.7% premium. This premium could indicate the company's belief that the stock is undervalued even at the higher price.

For investors, this aggressive share buyback strategy signals management's optimism about CBL's future prospects and commitment to enhancing shareholder returns. However, it's important to consider the balance between share repurchases and other potential uses of capital, such as debt reduction or property investments, in the context of CBL's overall financial health and growth strategy.

Market Research Analyst

CBL Properties' share repurchase actions reflect a broader trend in the REIT sector, where companies are increasingly using buybacks to boost shareholder value in a challenging market environment. This strategy can be particularly effective when stock prices are perceived to be below Net Asset Value (NAV), as is often the case with retail REITs.

The company's ability to execute these repurchases suggests strong cash flow and liquidity positions, which is noteworthy given the ongoing challenges in the retail real estate market. Investors should view this as a positive indicator of CBL's financial stability and management's confidence in the company's underlying asset value.

However, it's important to contextualize this move within the broader market dynamics. Retail REITs continue to face headwinds from e-commerce growth and changing consumer behaviors. While share repurchases can provide short-term benefits, long-term success will depend on CBL's ability to adapt its property portfolio and tenant mix to evolving retail trends.

CHATTANOOGA, Tenn.--(BUSINESS WIRE)-- CBL Properties (NYSE:CBL) today announced that it completed the repurchase of 500,000 shares of CBL stock for $12.525 million, in a privately negotiated block trade from a single shareholder. The block repurchase was completed separately from CBL’s existing stock repurchase program described below.

On August 10, 2023, CBL announced that its Board of Directors authorized a stock repurchase program for the Company to buy up to $25.0 million of its common stock. As of September 20, 2024, CBL had completed all repurchase activity under this program. A total of 1,074,826 shares were repurchased under the program at a weighted average share price of $23.259 per share.

“We are pleased to have repurchased more than 1.5 million shares of CBL at extremely attractive valuations,” said Stephen D. Lebovitz, CBL’s Chief Executive Officer. “This investment demonstrates our confidence in the Company’s future, our conviction that there is significant upside value in CBL, and our commitment to returning capital to shareholders.”

After cancellation of the repurchased shares the Company currently has 30,749,272 shares of common stock outstanding (excluding 34 treasury shares).

About CBL Properties

Headquartered in Chattanooga, TN, CBL Properties owns and manages a national portfolio of properties located in dynamic and growing communities. CBL’s owned and managed portfolio is comprised of 91 properties totaling 57.1 million square feet across 21 states, including 55 high-quality enclosed malls, outlet centers and lifestyle retail centers as well as more than 30 open-air centers and other assets. CBL seeks to continuously strengthen its company and portfolio through active management, aggressive leasing and profitable reinvestment in its properties. For more information visit cblproperties.com.

Information included herein contains “forward-looking statements” within the meaning of the federal securities laws. Such statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual events, financial and otherwise, may differ materially from the events and results discussed in the forward-looking statements. The reader is directed to the Company’s various filings with the Securities and Exchange Commission, including without limitation the Company’s Annual Report on Form 10-K and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included therein, for a discussion of such risks and uncertainties.

CBL_Corp

View source version on businesswire.com: https://www.businesswire.com/news/home/20241010621195/en/

Investor Contact:

Katie Reinsmidt

Executive Vice President & Chief Operating Officer

423.490.8301

Katie.Reinsmidt@cblproperties.com

Source: CBL Properties

FAQ

How many shares did CBL Properties (NYSE:CBL) repurchase in the block trade?

CBL Properties repurchased 500,000 shares in the privately negotiated block trade from a single shareholder.

What was the total value of CBL's stock repurchase program announced on August 10, 2023?

CBL's Board of Directors authorized a stock repurchase program for up to $25.0 million of its common stock on August 10, 2023.

How many shares were repurchased under CBL's stock repurchase program?

A total of 1,074,826 shares were repurchased under the program at a weighted average share price of $23.259 per share.

When did CBL complete its stock repurchase program?

CBL completed all repurchase activity under the program as of September 20, 2024.

How many outstanding shares of common stock does CBL have after the repurchases?

After cancellation of the repurchased shares, CBL currently has 30,749,272 shares of common stock outstanding.