CBL Properties (NYSE: CBL) and its 50% joint venture partner announced the closure of the sale of York Town Center, an open-air retail destination in York, Pennsylvania, for $50.65 million. The deal was completed at an approximate 8.5% capitalization rate.

Stephen D. Lebovitz, Chief Executive Officer of CBL Properties, stated that the transaction reflects continued investor demand for high-quality retail assets. He noted that the sale simplifies the company's structure by exiting another joint venture while advancing its capital recycling strategy. The proceeds allow the firm to monetize a mature asset for redeployment into higher-yielding opportunities.

What the Numbers Show

The sale price of $50.65 million implies a stabilized net operating income of approximately $4.3 million for the asset, derived from the disclosed 8.5% capitalization rate. This valuation metric indicates the yield investors require for this specific open-air retail property in the current market environment. The transaction also marks a reduction in CBL's joint venture exposure, streamlining its portfolio structure as it seeks to maximize shareholder value through active management and profitable reinvestment.

Portfolio Context

Headquartered in Chattanooga, Tennessee, CBL Properties owns and manages a national portfolio of market-dominant properties across 23 states. The company's owned and managed portfolio comprises 83 properties totaling 54.5 million square feet. This includes:

• 54 high-quality enclosed malls, outlet centers, and lifestyle retail centers
• 20 open-air centers and other assets

The company continues to focus on strengthening its portfolio through aggressive leasing and reinvestment.

CBL Properties reported strong second-quarter results for the period ended June 30, 2026, with higher occupancy, positive lease spreads, and same-center Net Operating Income (NOI) growth driving an upward revision to its full-year guidance. The company raised its full-year 2026 Funds From Operations (FFO), as adjusted, guidance range to $7.15–$7.25 per share, up from the prior range of $7.06–$7.19, surpassing the consensus analyst estimate of $7.11. The updated guidance reflects transaction and financing activity completed year-to-date, including the sale of Hammock Landing and a gain on an outparcel sale closed in the second quarter.

Key Financial Results

The following table summarizes CBL Properties' financial performance for the three and six months ended June 30, 2026, compared with the prior-year periods:

CEO Stephen D. Lebovitz commented: "CBL posted excellent second quarter operational and financial results, building on the strong momentum generated in the first quarter. The results were highlighted by a 1.5% year-over-year increase in same-center NOI, supported by base rent escalations and higher occupancy levels."

Same-Center NOI Performance

Same-center NOI for Q2 2026 increased 1.5% year-over-year, while the six-month period ended June 30, 2026, saw a 2.2% increase. The following table presents the same-center NOI breakdown for the three months ended June 30:

For the six months ended June 30, total portfolio same-center NOI was $191,775K compared with $187,646K in the prior-year period, a 2.2% increase. Rental revenue growth was driven by higher occupancy and contractual rent escalations, partially offset by higher property operating expenses.

Portfolio Occupancy

Portfolio occupancy improved meaningfully across all property types. The table below presents occupancy as of June 30, 2026, versus June 30, 2025:

Total portfolio occupancy rose 160 basis points (bps) year-over-year to 90.4% as of June 30, 2026. Bankruptcy-related store closures, representing approximately 76,000 square feet, negatively impacted mall occupancy by nearly 54 bps compared with the prior-year period.

Leasing Activity and Tenant Sales

Leasing demand remained robust during Q2 2026, with nearly 1.3 million square feet of leases signed, including approximately 585,000 square feet of comparable new and renewal leases at an 8.8% increase in average rents versus prior rents. New leases for stabilized malls, lifestyle centers, and outlet centers achieved rent increases of 35.7% over prior rents, while renewal leases increased 3.1%.

Same-center tenant sales per square foot for Q2 2026 increased approximately 2.2% compared with the prior-year period. For the rolling 12 months ended June 30, 2026, same-center sales per square foot for malls, lifestyle centers, and outlet centers reached $455, a 3.9% increase compared with $438 in the prior-year period.

Outlook and Guidance

The following table summarizes CBL's updated full-year 2026 guidance:

Management anticipates same-center NOI for full-year 2026 in the range of 0.0% to 1.5%. Parkdale Mall and Crossing have been removed from the same-center pool, reflecting CBL's cooperation with the lender on a sale, foreclosure, or conveyance of the property.

Financing and Transaction Activity

Year-to-date, CBL executed $925.1 million of financing activity, including the March refinancing of its $634.0 million term loan. The completed financings materially strengthened CBL's financial position, reduced near-term maturity risk, and unlocked more than $38 million of previously restricted cash flow. CBL's pro rata share of debt was reduced by $65.4 million compared with the prior period-end.

Key refinancing transactions included a $71.9 million non-recourse loan secured by Hamilton Place in Chattanooga, Tennessee (fixed rate of 6.8%, five-year term); a $97.5 million five-year non-recourse CMBS loan for Fayette Mall in Lexington, Kentucky (fixed rate of approximately 7.25%); and a $43.0 million non-recourse loan secured by Northwoods Mall in N. Charleston, SC (fixed rate of 9.1%). In August, CBL and its joint venture partner closed on the extension of the $30.7 million loan (at 100%) secured by The Outlet Shoppes at Laredo, with the maturity extended through the end of November 2026.

Four loans aggregating approximately $189.6 million (at CBL's share) of non-recourse mortgage debt are in the process of being resolved through lender-directed sale, foreclosure, or conveyance. Year-to-date, CBL generated gross sales proceeds at CBL's share of more than $61.4 million, including the sale of Hammock Landing—a 397,000 square-foot open-air center in West Melbourne, FL—for $78.5 million at an 8% cap rate, generating approximately $26 million in cash proceeds to CBL. During the quarter, CBL also generated approximately $19.2 million in gross proceeds from dispositions of six land parcels and outparcels.

Liquidity and Dividend

As of June 30, 2026, CBL held $322.7 million of unrestricted cash and marketable securities, including CBL's share of joint venture cash of $20.3 million. On August 5, 2026, CBL's Board of Directors approved a cash dividend of $0.625 per common share for the quarter ending September 30, 2026, equating to an annual dividend of $2.50 per common share, payable on September 30, 2026, to shareholders of record as of September 15, 2026.

CBL Properties, headquartered in Chattanooga, TN, owns and manages a national portfolio of 85 properties totaling 54.8 million square feet across 23 states, including 54 high-quality enclosed malls, outlet centers, and lifestyle retail centers, as well as more than 20 open-air centers and other assets.