ASHEVILLE, N.C. & FAYETTEVILLE, N.C. — The real estate investment trust CBL Properties (OTCMKTS:CBLAQ) invests in shopping centers, primarily in the southeastern and midwestern United States, which owns properties in North Carolina, filed for Chapter 11 bankruptcy in November 2020.
The company, which has seen its stock plummet from a post-Great Recession high-water mark of about $25/share in 2013 to just $0.12/share, released its results for the fourth quarter of 2020 and the results of the calendar year of 2020 in a statement today.
After filing for bankruptcy, the company entered a restructuring agreement with an ad hoc group representing 69 percent of its unsecured note holders and 96 percent of the lenders under its secured credit facility, and the firm notes that it is undergoing a fully consensual comprehensive restructuring.
The company reported a 21.5 percent total portfolio same-center decline in net operating income compared to the prior year.
“The events of 2020 were unprecedented, and in response we took extraordinary and necessary actions,” said Stephen Lebovitz, CEO, in a statement. “While the impact to our business and revenues was substantial, we were successful in our efforts to preserve cash, stabilize occupancy and revenues, and reduce operating expenses.”
According to the company, it anticipates cooperating with conveyance or foreclosure proceedings for the Asheville Mall in Asheville, for which the company indicated it holds a $62.1 million loan. Asheville Mall was transferred into receivership in January, 2021.
The company reported a net loss attributable to common shareholders for the twelve months ending on December 31, 2020, of $332.5 million, or a loss of $1.75 per diluted share, compared with a net loss of $153.7 million, or a loss of $0.89 per diluted share, for the twelve months ended 2019.
Across the portfolio, rental revenues decreased by $24 million for 2020, the company reported, and the company collected approximately 84 percent of related gross rents for the period between April 2020 and February 2021, deferring approximately $30.6 million of rents that were due in 2020.
Despite the huge financial impact of the coronavirus pandemic, the company is planning to open facilities in 2021, including opening a Rooms to Go at Cross Creek in Fayetteville.
“By reducing leverage and the preferred obligation by almost $1.7 billion, lengthening maturities, lowering interest expense and increasing free cash flow, upon emergence CBL will be well-positioned to execute on our strategic priorities and pursue future growth opportunities,” said Lebovitz. “We look forward to starting fresh with a newly energized and more financially flexible company later this year.”
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