In roughly one week's time, the shares of CBL & Associates (NYSE: CBL) doubled in price. That's an incredible increase in a very short period of time, but investors shouldn't get too excited: This real estate investment trust (REIT) is still a lousy way to play the downtrodden mall sector. Here's what you need to know, and a better-positioned option that's still likely to entice value oriented investors.
CBL is an REIT, a tax-favored corporate structure specifically meant to pass income through to shareholders. It cut its dividend by 63% in late 2018, then eliminated it completely in early 2019. A REIT without a dividend is rarely worth owning. But that's just one piece of the puzzle with this mall owner.
Image source: Getty Images