CBL Properties Provides Additional Update on COVID-19 Response
April 14 2020 - 3:00PM
Business Wire
Outlines Capital Expenditure and Expense
Management Programs
CBL Properties (NYSE:CBL) today provided a further update on its
portfolio and the Company’s actions to offset anticipated impacts
of the COVID-19 pandemic on the Company’s revenue and cash
flows.
In response to local and state mandated closures, the majority
of the CBL portfolio is currently closed. While the full impact of
these temporary closures cannot be quantified, based on discussions
with tenants, CBL anticipates a significant deterioration in
near-term revenue. In response, over the last several weeks, CBL
has implemented comprehensive programs to halt all non-essential
expenditures, to reduce operating and overhead expenses and to
reduce, defer or suspend capital expenditures, including
redevelopment investments.
“First, I would like to reiterate how proud I am of the CBL
organization,” said Stephen Lebovitz, Chief Executive Officer. “The
pandemic has brought about extraordinary trials that no one could
have predicted, but every CBL team member has risen to the
occasion, demonstrating their dedication and belief in CBL.”
Lebovitz added, “Unfortunately, the challenges continue, and we
must take difficult, but necessary steps to ensure CBL is
positioned to sustain the impact of the pandemic and generate
success in the future.”
Capital Expenditures and Expense Management CBL has
completed a comprehensive review of current planned capital
expenditures for 2020. The Company has quantified reductions and
deferrals to maintenance capital expenditures and redevelopments
estimated in the range of $60 million - $80 million.
Furlough and Salary Reduction Program CBL has implemented
programs to further reduce overhead expense, including a temporary
salary reduction program as well as a partial and full furlough
program. Every member of the CBL team will participate at some
level.
CBL executives Charles Lebovitz (Chairman), Stephen Lebovitz
(CEO) and Michael Lebovitz (President) as well as the Independent
Directors of CBL’s Board have agreed to reduce their base salaries
and Independent Director fees by 50%. A 20% base salary reduction
will apply to other officers and a 10% reduction will apply to all
other employees.
CBL has implemented a broad-based temporary furlough program
across its properties and headquarters impacting approximately 300
employees or almost 60% of its workforce. The program includes
partial (reduction of hours) and full furloughs. The Company will
continue to provide full health care benefits for all furloughed
employees.
Community and Tenant Partnerships The role that CBL’s
properties play in its communities as a provider of employment,
goods, services and commerce is an important one. CBL’s properties
provide a source of livelihood for countless large and small
businesses across the country. CBL believes that it is important to
support our tenants and work together to build success. In keeping
with this, the Company has launched a website
(https://www.cblproperties.com/covid-19-response) to help our
tenants identify federal, state and local resources that may be
available to support small businesses and their employees during
the pandemic. CBL and its properties have always been a proud
community partner, but even more so as communities come together to
provide support for those most impacted by the COVID-19 pandemic.
At CBL locations across the country, we are partnering with
organizations that are providing support to individuals and groups
in need. In addition to hosting blood drives and charitable
collection drives, we are using our marketing platforms to shine a
light on local organizations that are providing relief and support
for individuals impacted by this unprecedented crisis.
About CBL Properties Headquartered in Chattanooga, TN,
CBL Properties owns and manages a national portfolio of
market-dominant properties located in dynamic and growing
communities. CBL’s portfolio is comprised of 108 properties
totaling 68.2 million square feet across 26 states, including 68
high-quality enclosed, outlet and open-air retail centers and 9
properties managed for third parties. CBL seeks to continuously
strengthen its company and portfolio through active management,
aggressive leasing and profitable reinvestment in its properties.
For more information, visit cblproperties.com.
Information included herein contains "forward-looking
statements" within the meaning of the federal securities laws. Such
statements are inherently subject to risks and uncertainties, many
of which cannot be predicted with accuracy and some of which might
not even be anticipated. Future events and actual events, financial
and otherwise, may differ materially from the events and results
discussed in the forward-looking statements. The reader is directed
to the Company’s various filings with the Securities and Exchange
Commission, including without limitation the Company’s Annual
Report on Form 10-K and the "Management’s Discussion and Analysis
of Financial Condition and Results of Operations" included therein,
for a discussion of such risks and uncertainties.
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version on businesswire.com: https://www.businesswire.com/news/home/20200414005634/en/
Katie Reinsmidt, Executive Vice President & Chief Investment
Officer, 423.490.8301, Katie.Reinsmidt@cblproperties.com
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