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CBL & Associates’ Stock Fell After Weak 3Q15 Earnings

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Oct. 30 2015, Published 5:52 p.m. ET

CBL’s earnings review

CBL & Associates Properties (CBL) reported its 3Q15 earnings on October 29. It’s the fifth-largest retail mall REIT in the United States. The company’s EPS (earnings per share) fell by 32% in 3Q15 to $0.15, lower than the consensus estimate of $0.16. FFO (funds from operations) per share for 3Q15 was $0.56, lower than the consensus estimate of $0.564. However, the company’s revenue of $262.6 million was higher than the consensus estimate of $258.3 million. The company recorded a no change in portfolio net operating income year over year.

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Market reacts negatively

Markets didn’t react positively to CBL’s 3Q15 earnings. The stock price fell 3.8% soon after the earnings release. Eventually, the stock closed at $14.7, 5% below the previous day’s closing.

Year-to-date, or YTD, shares fell by a whopping 24.3%. In the last article of this series, we’ll discuss some of the reasons behind this downfall. However, the company has experienced a decent stock performance lately. During the last one month, the stock gained 5.4%.

Other major apartment REITs like Macerich (MAC) and Taubman Centers (TCO) have also experienced lackluster performance. The two REITs gave YTD returns of 2.1% and 1.2%, respectively. On the other hand, the Pennsylvania Real Estate Investment Trust (PEI) fell by 3% during the same period. Similarly, the iShares US Real Estate ETF (IYR) fell by 1.2% YTD.

Series overview

In this series, we’ll explore Macerich’s 3Q15 earnings in detail. We’ll discuss what factors could drive its earnings in the coming quarters. We’ll also cover the key points from the company’s 3Q15 earnings conference call.

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