CBL & Associates Properties, Inc. (CBL): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the actual, nuts-and-bolts business model of a major mall operator like CBL & Associates Properties, Inc. after its major financial restructuring, and frankly, the strategy has shifted from simply collecting rent to actively engineering community hubs. Having spent years analyzing these real estate plays, I can tell you their success now hinges on aggressive redevelopment and optimizing their 87 properties, evidenced by leasing spreads up 17.1% in Q3 2025 and occupancy hitting 90.2%. If you want to see exactly how they turn their portfolio of Southeastern and Midwestern assets into that $139.3 million in quarterly revenue while managing debt and holding $276.1 million in cash, the full Business Model Canvas breakdown is right here.

CBL & Associates Properties, Inc. (CBL) - Canvas Business Model: Key Partnerships

The Key Partnerships for CBL & Associates Properties, Inc. (CBL) as of late 2025 involve a mix of anchor tenants, sophisticated financial counterparties, and specialized operators essential for portfolio optimization and densification.

Major national and regional retail tenants

The performance of CBL & Associates Properties, Inc. (CBL) is significantly tied to its major tenants, who contribute a substantial portion of total revenue.

New comparable leases were signed at an increase of more than 21% in average rents versus the prior rents in Q1 2025. Leasing spreads remained robust at 17.1% across all property types in Q3 2025.

Financial institutions and noteholders for debt refinancing and term loan extensions

Managing the capital structure requires active engagement with lenders to extend maturities and optimize borrowing costs.

CBL & Associates Properties, Inc. (CBL) exercised the one-year extension option for its non-recourse term loan on November 1, 2025, extending its maturity to November 2026.

Joint venture partners for non-retail asset densification projects

CBL & Associates Properties, Inc. (CBL) has actively managed joint venture (JV) interests, including acquisitions to consolidate ownership and modifications to extend loan terms on shared assets.

• Acquired JV partner's 50% interests in CoolSprings Galleria, Oak Park Mall, and West County Center for $22.5 million, assuming $266.7 million in non-recourse loans.
• Modification of JV financing on Coastal Grand and Crossing in Myrtle Beach extended maturity to August 2028.
• Modification of the $28.8 million loan secured by York Town Center extended maturity to June 2026 at a 6.0% fixed interest rate.
• Most recent mentioned JV deal was with The Outlet Shoppes at Atlanta on July 18, 2013.

Third-party property managers for select assets

CBL & Associates Properties, Inc. (CBL) is a self-managed, self-administered, fully integrated real estate investment trust (REIT).

Experiential and non-retail operators

The company pursues non-retail densification projects to increase property value and traffic.

• Completed redevelopment of Hamilton Place with a new Crunch Fitness.
• New tenants signed included Fabletics, LEGO, and the restaurant concept Ford's Garage.

CBL's owned and managed portfolio as of late 2025 comprised 89 properties totaling 56.2 million square feet across 21 states.

CBL & Associates Properties, Inc. (CBL) - Canvas Business Model: Key Activities

You're looking at the core actions CBL & Associates Properties, Inc. takes to run its business and generate returns in late 2025. It's a mix of buying, selling, improving, and managing real estate, all while keeping a close eye on the balance sheet.

Active portfolio management via strategic acquisitions and dispositions

CBL & Associates Properties, Inc. is actively trading assets to sharpen the portfolio focus. Year-to-date through October 2025, the company closed on dispositions generating more than $238.0 million of gross proceeds. This included the October sale of Fremaux Town Center in Slidell, Louisiana, which brought in cash proceeds of $30.77 million and removed $35 million of associated debt. Earlier in the year, the sale of The Promenade in D'Iberville, MS, fetched $83.1 million at an 8.5% cap rate.

The capital from these sales is being redeployed into what management views as higher-quality assets. In Q3 2025, CBL purchased four malls for a total of $178.9 million. These acquisitions reinforce the focus on market-dominant properties in growing communities.

Redeveloping former anchor spaces for diversified, non-retail uses

A key part of the strategy involves transforming spaces within the existing centers to diversify revenue away from traditional retail. For example, CBL celebrated the grand opening of its new joint venture-owned hotel, Element by Westin, at Mayfaire Town Center in Wilmington, NC. This hotel opening was one of nine new store openings at that center in 2025 to date.

The leasing activity also shows this diversification push with new concepts joining the portfolio, such as:

• Ashley Furniture openings
• Cavender's openings
• Barnes & Noble openings
• Primark's only Nashville location at CoolSprings Galleria
• A signed lease for CBL's first L.L.Bean store

Leasing and re-tenanting to drive occupancy, which hit 90.2% in Q3 2025

Driving occupancy and increasing rental rates on new leases are central to the operational plan. Portfolio occupancy increased 90 basis points to 90.2% as of September 30, 2025, up from 89.3% as of September 30, 2024. Leasing spreads remain strong, hitting 17.1% across all property types for comparable new and renewal leases. During the third quarter of 2025 alone, over 972,000 square feet of leases were executed.

Here's a look at how the portfolio metrics trended in Q3 2025:

Property operations, maintenance, and common area management

The day-to-day management focuses on enhancing the performance of the existing footprint, which is reflected in the same-center Net Operating Income (NOI) and tenant sales figures. Same-center NOI for the third quarter of 2025 increased 1.1% compared with the prior-year period. Total operating expenses for the quarter declined by $0.5 million, partially due to real estate tax refunds.

The health of the tenants is a direct input to property operations. Tenant sales increased 4.8% Year-over-Year in Q3 2025, bringing the trailing 12-month average to 1.6%.

Debt reduction and capital structure optimization post-restructuring

Managing the balance sheet remains a critical activity, especially given the debt structure inherited from the restructuring. As of late 2025, net debt is estimated at about $2.2 billion, which accounts for roughly 70% of the company's enterprise value.

CBL & Associates Properties, Inc. is focused on meeting covenants to extend maturities. As of June 30, 2025, $665.8 million was outstanding on the secured term loan due in November 2026. Meeting the requirements for the second one-year extension means reducing this principal balance to $615 million, which is expected to occur in 2026 through amortization. To improve financial flexibility, CBL approved a new $25 million share buyback, enough to retire roughly 2.6% of common shares at current prices. Furthermore, as of the end of Q3 2025, some 28% of CBL's debt is floating rate.

CBL & Associates Properties, Inc. (CBL) - Canvas Business Model: Key Resources

You're looking at the core assets CBL & Associates Properties, Inc. relies on to generate revenue and execute its strategy as of late 2025. These aren't just line items; they are the physical and human capital driving the business.

The physical real estate portfolio is the primary asset base. As of the latest reports near the end of 2025, CBL & Associates Properties, Inc.'s owned and managed portfolio stood at 89 properties totaling 55.4 million square feet across 22 states. The company's focus remains heavily weighted toward its enclosed mall assets, which contribute the largest share of its operating income.

Here's a quick look at the composition based on same-center Net Operating Income (NOI) contribution from Q3 2025:

The geographic concentration of these assets is a key resource, placing CBL & Associates Properties, Inc. squarely in markets where they believe consumer demand is strongest. The portfolio is located in dynamic and growing communities, with a primary focus on the Southeastern and Midwestern US.

Financial liquidity provides operational flexibility, especially for capital deployment and debt management. As of March 31, 2025 (Q1 2025), CBL & Associates Properties, Inc. held:

• Unrestricted cash and marketable securities of $276.1 million.

The human capital, specifically the specialized teams, is crucial for maximizing the value of the physical assets. This internal capability allows for direct control over leasing and property performance.

• Dedicated in-house leasing and property management teams manage the portfolio.
• CBL Properties has 703 total employees supporting these operations.
• In Q1 2025, the company executed nearly 575,000 square feet of leases.

Finance: draft 13-week cash view by Friday.

CBL & Associates Properties, Inc. (CBL) - Canvas Business Model: Value Propositions

You're looking at the core value CBL & Associates Properties, Inc. (CBL) delivers to its stakeholders as of late 2025. It's not just about leasing space anymore; it's about creating destinations.

Transforming Traditional Malls into Mixed-Use Community Hubs

CBL & Associates Properties, Inc. is actively repositioning its assets away from being solely enclosed retail centers. The vision you're seeing is the transformation into suburban town centers that blend retail with other high-demand uses. This strategy is evident in recent project completions and ongoing development plans.

Here are some concrete examples of this transformation in action:

• Celebrated the grand opening of a joint venture-owned hotel, Element by Westin, in Q3 2025.
• Acquired four dominant enclosed regional malls in July 2025 to bolster the core portfolio.
• Pursuing the addition of uses like dining, entertainment, fitness, service, medical, multi-family, and office space.

Market-Dominant Retail Locations in Middle-Market, Growing Communities

The company's strategy centers on owning the most important retail property in its specific markets, which are often middle-market areas showing demographic growth. This focus on market dominance is a key differentiator, especially as they deploy capital from dispositions into higher-quality assets.

The portfolio strength, as of the end of Q3 2025, is reflected in these operational metrics:

Higher Tenant Sales Growth, Up 4.8% Year-over-Year in Q3 2025

A critical measure of the underlying health of the tenant base is sales performance, and CBL & Associates Properties, Inc. saw a strong rebound in this area through the third quarter of 2025. This metric directly supports the stability of rental income.

Here's the quick math on tenant sales performance:

Still, you need to keep an eye on the near-term volatility; tenant sales only grew $\text{3.5%}$ Y/Y in Q2 2025, so the Q3 number represents an acceleration.

Diversified Tenancy Mix, Reducing Reliance on Apparel Retailers

The leasing activity in Q3 2025 shows tenants are willing to commit to higher rents, which is a strong indicator of the perceived value of the space and a move toward a more resilient mix. The focus is on re-tenanting former anchor spaces and diversifying in-line tenants.

Leasing spreads demonstrate this pricing power and the success of securing tenants across various categories:

• Comparable new and renewal lease spreads: 17.1% across all property types.
• New comparable lease spreads achieved: More than 70% increase versus prior rents.
• Renewal leases signed: Nearly a 10% increase compared with expiring rents.

Stable, Predictable Cash Flow Generation for Shareholders (REIT Structure)

As a REIT, the value proposition for shareholders hinges on consistent cash flow, which CBL & Associates Properties, Inc. measures through Funds From Operations (FFO), as adjusted. Management is projecting growth into 2026, which supports the current dividend policy.

Here are the key cash flow and distribution metrics as of late 2025:

To be fair, S&P Global Ratings projected adjusted cash funds from operations of about $\text{$125 million}$ over the next 12 months, factoring in uses like debt amortization and capital expenditures. Finance: draft 13-week cash view by Friday.

CBL & Associates Properties, Inc. (CBL) - Canvas Business Model: Customer Relationships

You're looking at how CBL & Associates Properties, Inc. (CBL) actively manages the relationship with its tenants as of late 2025. It's not just about collecting rent; it's about making sure the businesses inside their properties thrive, which directly impacts CBL's own performance.

The commitment to tenant success starts with dedicated leasing professionals. While I don't have a specific headcount for those dedicated professionals, the results show their efforts are paying off in lease renewals and new agreements. This team is focused on re-tenanting former anchor locations and diversifying the in-line tenancy across the portfolio. This strategic approach is key to maintaining the health of the centers.

Active, direct property management and operational support is evident in the portfolio's recent metrics. The focus is clearly on driving operational improvements, which you can see reflected in the occupancy gains and tenant sales growth. For example, the company celebrated the grand opening of a new joint venture-owned hotel, Element by Westin, at Mayfaire Town Center in Wilmington, NC, which joined nine other new store openings at that center to-date in 2025. This shows direct involvement in enhancing the property offering.

Negotiating new leases is a major highlight, showing strong pricing power in the current market. Leasing spreads remain very robust, hitting 17.1% across all property types in Q3 2025. Here's a quick look at the leasing performance from that quarter:

The success in leasing is paired with strong tenant performance, which is the ultimate proof of good customer relationships and effective marketing. Tenant sales increased 4.8% Year-over-Year in Q3 2025. This positive momentum is what drives the overall portfolio health. The strategy includes marketing promotions and social media campaigns designed to drive shopper traffic to the centers.

The overall portfolio occupancy reflects the success of these relationship-focused operational efforts. If onboarding takes 14+ days, churn risk rises, but CBL is clearly moving tenants in effectively. Check out the occupancy snapshot as of September 30, 2025:

• Total Portfolio Occupancy: 90.2% (up 90 basis points Y/Y)
• Mall Same-Center Occupancy: 88.4% (up 40 basis points)
• Lifestyle Center Occupancy: 93.3% (up from 91.2%)
• Outlet Center Occupancy: 92% (up from 91.6%)
• Open-Air Center Occupancy: 95.3% (nearly flat vs. 95.4% Y/Y)

The same-center tenant sales per square foot for the trailing 12 months ended September 30, 2025, landed at $432, showing a 1.6% increase over the prior period. This sustained sales growth is defintely a key indicator of a healthy tenant base.

Finance: draft 13-week cash view by Friday.

CBL & Associates Properties, Inc. (CBL) - Canvas Business Model: Channels

You're looking at how CBL & Associates Properties, Inc. (CBL) gets its value proposition-quality retail space-out to its customers and stakeholders. It's a mix of direct sales efforts and the physical assets themselves.

Direct leasing team for new and renewal tenant contracts.

The leasing team is your primary interface for securing the core revenue stream from retail tenants. They manage the direct negotiation for both new occupants and existing tenant renewals across the portfolio. This team is clearly driving value, as evidenced by the recent leasing spreads. For instance, in the third quarter of 2025, over 972,000 square feet of leases were executed. Specifically, comparable new and renewal leases signed in Q3 2025 achieved a 17.1% increase in average rents compared to the prior rents. To give you a sense of the pipeline strength, new leases signed in the first quarter of 2025 saw an average rent increase of 21% versus prior rents. This direct channel is clearly translating asset performance into higher contractual income.

Physical properties: regional malls, open-air, and lifestyle centers.

The properties themselves are the most tangible channel, serving as the marketplace for tenants to reach consumers. As of September 30, 2025, CBL's owned and managed portfolio consisted of 88 properties totaling 53.9 million square feet across 22 states. The mix is weighted toward enclosed centers, but the open-air component is significant, too. Here's a quick breakdown of the physical asset base reported in late 2025:

The overall portfolio occupancy hit 90.2% as of September 30, 2025, showing improvement year-over-year.

Corporate website and investor relations for financial stakeholders.

For financial stakeholders-the analysts, lenders, and shareholders-the primary channels are the official corporate disclosures and the investor relations section of the website. You can find the official information at cblproperties.com. The company's trailing twelve-month revenue as of September 30, 2025, was reported at $554M. Furthermore, the liquidity channel for immediate financial needs shows unrestricted cash and marketable securities at $313.0 million at the end of Q3 2025. The corporate headquarters, where these communications originate, is located at 2030 Hamilton Place Boulevard; CBL Center, Suite 500; Chattanooga, TN 37421; United States.

Digital platforms and social media for consumer engagement.

To drive foot traffic and maintain brand relevance with the end consumer, CBL uses digital channels. The corporate website, cblproperties.com, serves as a hub for property directories and consumer information. Additionally, the company utilizes platforms referred to as CBL Social to provide engagement opportunities and interconnectivity, often through team-based events.

• Use of cblproperties.com for property lookups.
• Engagement via CBL Social platforms.
• Focus on sustainability reporting, including 2025 goals to capture and recycle up to 6,000 tons of waste across the portfolio.

CBL & Associates Properties, Inc. (CBL) - Canvas Business Model: Customer Segments

National and regional in-line retail tenants represent a core segment, as CBL & Associates Properties, Inc. (CBL) derives sales predominantly from leasing arrangements with these retail operators. The strength of this segment is reflected in recent leasing activity; comparable new and renewal leases executed in the third quarter of 2025 saw an average rent increase of 17.1% over prior rents. Specifically, new comparable leases were signed at an increase of more than 70% in average rents, while renewal leases were signed at nearly a 10% increase compared with expiring rents. For the twelve months ended September 30, 2025, same-center tenant sales per square foot reached $432, which was an increase of 1.6% year-over-year. For the third quarter of 2025 alone, same-center tenant sales per square foot increased approximately 4.8% compared with the prior-year period.

The overall portfolio health, which directly impacts the attractiveness to these tenants, shows a total portfolio occupancy of 90.2% as of September 30, 2025. CBL & Associates Properties, Inc. (CBL) owns and manages a national portfolio comprised of 108 properties totaling 68.2 million square feet across 26 states, including 68 high-quality enclosed, outlet, and open-air retail centers, plus 9 properties managed for third parties.

Anchor and Junior Anchor tenants, generally department stores or other large format retailers, are an important factor in property performance, though rental rates for these tenants are significantly lower than for non-anchor tenants. Total revenues from Anchors and Junior Anchors accounted for 18.1% of the total revenues from CBL & Associates Properties, Inc. (CBL)'s properties in 2022. CBL & Associates Properties, Inc. (CBL) is executing a strategy to re-tenant former anchor locations to diversify tenancy.

Non-retail tenants are an increasing focus for CBL & Associates Properties, Inc. (CBL) as part of its strategy to transform property offerings. This segment includes uses designed to engage consumers and encourage longer stays at the properties. The company is actively working to attract new uses such as:

• Restaurants
• Entertainment venues
• Fitness centers
• Grocery stores
• Lifestyle retailers

Shoppers and consumers are concentrated in the dynamic and growing communities where CBL & Associates Properties, Inc. (CBL)'s market-dominant properties are located. The company's portfolio is located primarily in the southeastern and midwestern United States. The resilience of this consumer base is suggested by the 4.8% year-over-year increase in same-center tenant sales per square foot for the third quarter of 2025.

CBL & Associates Properties, Inc. (CBL) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive CBL & Associates Properties, Inc.'s operations, which are heavily weighted toward debt service and property upkeep. For a real estate investment trust (REIT), these fixed and semi-fixed costs dictate the necessary revenue base to maintain profitability and service obligations. Honestly, the interest expense is the first thing that jumps out at you.

Significant interest expense is a major component, totaling \$88.184 million in the first half (1H) of 2025. This figure reflects the cost of carrying the company's substantial debt load, even as management works to extend maturities and reduce floating-rate exposure. To be fair, a portion of the debt is floating rate, meaning interest costs are sensitive to Federal Reserve policy, though CBL is positioned to benefit from expected rate cuts later in 2025 and into 2026.

The costs associated with keeping the physical assets running-the property operating expenses-are broken down into several key areas. For the first quarter of 2025, we see the following figures (in thousands of U.S. Dollars):

• Property operating expenses (utilities, insurance, etc.): \$25,878
• Real estate taxes: \$15,731
• Maintenance and repairs: \$13,466

These day-to-day costs are essential for maintaining the Net Operating Income (NOI) that flows up to the company. Here's a quick look at how some of the major non-operating expenses stack up based on Q1 2025 reporting (in thousands):

For ongoing asset quality, CBL budgets for capital expenditures for maintenance and tenant allowances. The 2025 estimate sits in a range, showing management's planned investment to keep the portfolio competitive and satisfy leasing requirements. The estimated range for 2025 is between \$40.0 million and \$55.0 million.

Finally, a critical cash outflow is debt principal amortization payments. CBL is actively managing its debt structure, with projections for annual principal amortization payments estimated to be about \$100 million per year. The 2025 estimate specifically targets principal amortization, including the estimated term loan Early Cash Flow (ECF), in the range of \$90.0 million to \$100.0 million. Finance: draft 13-week cash view by Friday.

CBL & Associates Properties, Inc. (CBL) - Canvas Business Model: Revenue Streams

You're looking at the core ways CBL & Associates Properties, Inc. brings in cash, which is pretty standard for a retail Real Estate Investment Trust (REIT), but with some big one-time boosts lately. For the third quarter of 2025, CBL & Associates Properties, Inc. reported total revenues climbing to $139.3 million.

The bulk of that comes from the properties themselves. Rental revenues for Q3 2025 were $134.79 million, which is a healthy increase of about 12% compared to the year-ago quarter. This rental income is the engine, covering the day-to-day operations.

Here's a quick look at the key revenue numbers we have for Q3 2025:

The rental revenue stream is made up of a few things. You definitely see fixed minimum rental revenues from retail leases making up the base. Then, you have the percentage rents based on tenant sales volumes. Tenant sales were up 4.8% year-over-year in Q3 2025, which is a good sign for that variable component of rent.

Also critical for the REIT model are the tenant reimbursements. These cover the operational pass-through costs, specifically tenant reimbursements for common area maintenance (CAM), taxes, and insurance. While the exact dollar amount for these reimbursements isn't broken out separately in the top-line revenue figures, they are embedded within the overall revenue structure and help keep the net operating income (NOI) healthy. Same-center NOI actually grew 1.1% year-over-year for Q3 2025.

To be fair, GAAP earnings were significantly boosted by non-operating items, which is where you see the big asset sales. Year to date in 2025, CBL & Associates Properties, Inc. generated gross proceeds from dispositions totaling more than $238 million. This activity, which included sales like The Promenade for $83.1 million in July, contributes to the gains from strategic sales of real estate assets. For instance, the Q3 net income jump to $75.1 million was mainly due to these gains on deconsolidation and sales of real estate assets.

The revenue streams CBL & Associates Properties, Inc. relies on include:

• Fixed minimum rental revenues from retail leases.
• Percentage rents based on tenant sales volumes.
• Tenant reimbursements for common area maintenance (CAM), taxes, and insurance.
• Gains from strategic sales of real estate assets, with YTD 2025 gross proceeds from dispositions exceeding $238 million.

Finance: draft 13-week cash view by Friday.