Among all of the mall real estate investment trusts (REITs) that have been hurt by the retail apocalypse over the past few years, none has been worse off than CBL & Associates (NYSE: CBL). CBL primarily owns low-productivity and midtier malls, which have been decimated by department store closures and a string of bankruptcy filings by apparel retailers.
These negative trends have led to significant earnings erosion over the past three years. The rise in anchor vacancies has also forced CBL to increase its redevelopment spending. A big legal settlement has added to the pressure on the REIT's cash flow. This culminated in CBL suspending its dividend earlier this year.
Last week, CBL reported that its earnings pressure continued last quarter, with adjusted funds from operations (FFO) falling again. Still, the damage wasn't quite as bad as what analysts had been predicting.