CBL - CBL & Associates: This REIT Looks Like It's Doomed
Mall real estate investment trust (REIT) CBL & Associates Properties (NYSE: CBL) has been struggling for years, as consumer foot traffic has rapidly shifted away from the low- and mid-tier malls that make up the bulk of its real estate portfolio. The 2018 bankruptcies of Bon-Ton and Sears Holdings and a costly class action settlement added to its woes.
Last year, CBL tried to fend off disaster by selling assets and suspending its dividend in order to pay down debt. As a result, it ended 2019 with $4.25 billion of debt (including its share of joint-venture debt), down from $4.66 billion a year earlier.
However, those efforts were too little, too late. The COVID-19 pandemic has crushed CBL's business, making it virtually certain that shareholders will be wiped out one way or another.