CBL & Associates Properties : 11/17/2020 - 2020 Third Quarter Supplemental

Earnings Release and

Supplemental Financial and Operating Information

For the Three and Nine Months Ended

September 30, 2020

Earnings Release and Supplemental Financial and Operating Information

Table of Contents

	Page
Earnings Release	1
Consolidated Statements of Operations	7
Reconciliations of Supplementary Non-GAAP Financial Measures:
Funds from Operations (FFO)	8
Same-center Net Operating Income (NOI)	11
Selected Financial and Equity Information	13
Consolidated Balance Sheets	14
Condensed Combined Financial Statements - Unconsolidated Affiliates	15
Ratio of Adjusted EBITDAre to Interest Expense and Reconciliation of Adjusted EBITDAre to Operating Cash Flows	16
Components of Rental Revenues	17
Schedule of Mortgage and Other Indebtedness	18
Schedule of Maturities and Debt Covenant Compliance Ratios	21
Unencumbered Consolidated Portfolio Statistics	23
Mall Portfolio Statistics	24
Leasing Activity and Average Annual Base Rents	27
Top 25 Tenants Based on Percentage of Total Annualized Revenues	29
Capital Expenditures	30
Development Activity	31
CBL Core Portfolio Exposure to Sears and Closed Bon-Ton Locations and Redevelopment Plans	33

Contact: Katie Reinsmidt, Executive Vice President - Chief Investment Officer, 423.490.8301, [e-mail]

CBL PROPERTIES REPORTS RESULTS FOR THIRD QUARTER 2020

CHATTANOOGA, Tenn. (November 17, 2020) - CBL Properties (OTCMKTS: CBLAQ) announced results for the third quarter ended September 30, 2020. A description of each supplemental non-GAAP financial measure and the related reconciliation to the comparable GAAP financial measure is located at the end of this news release.

			Three Months Ended						Nine Months Ended
				September 30,							September 30,
			2020					2019				%					2020				2019				%
Net loss attributable to common shareholders per diluted
share		$	(0.28	)			$	(0.52	)			46.2	%			$	(1.43	)		$	(1.01	)			(41.6	)%
Funds from Operations ("FFO") per diluted share	$	0.06		$	0.45				(86.7)%	$	0.28		$	1.01				(72.3)%
FFO, as adjusted, per diluted share (1)
	$	0.04				$	0.34				(88.2	)%			$	0.32			$	0.98				(67.3	)%

1. For a reconciliation of FFO to FFO, as adjusted, for the periods presented, please refer to the footnotes to the Company's reconciliation of net loss attributable to common shareholders to FFO allocable to Operating Partnership common unitholders on page 8 of this news release.

KEY TAKEAWAYS:

• FFO per diluted share, as adjusted, was $0.04 for the third quarter 2020, compared with $0.34 per share for the third quarter 2019. FFO per diluted share, as adjusted, was $0.32 for the nine months ended September 30, 2020, compared with $0.98 per share for the prior year period.
• Major variances in third quarter 2020 FFO per share, as adjusted, compared with the prior year period included $0.22 per share of lower property NOI, which included $0.07 per share related to rent abatements and $0.07 per share of estimate for uncollectable revenues and write-offs for past due rents related to tenants that are in bankruptcy or struggling financially. FFO per share for the third quarter also included approximately $0.06 per share of incremental interest expense related to the accrual of the base rate or post default rate on outstanding balances on the Company's Credit Facility.
• Total Portfolio same-center NOI declined 30.5% for the three months ended September 30, 2020, and 23.7% for the nine months ended September 30, 2020, as compared with the prior-year periods.
• Portfolio occupancy as of September 30, 2020, was 86.8%, representing a 130-basis point decline sequentially and a 370-basis point decline compared with 90.5% as of September 30, 2019. Same-center mall occupancy was 85.2% as of September 30, 2020, representing a 140-basis point decline sequentially and a 380-basis point decline compared with 89.0% as of September 30, 2019. An estimated 250-basis points of the decline in total mall portfolio occupancy was due to store closures related to tenants in bankruptcy.

•	CBL's portfolio is now fully operational with all properties open for business. CBL continues to prioritize the safety of its employees,
	retailers and shoppers by maintaining strict safety protocols across its portfolio. Protocols are updated as new guidance is issued by
	the CDC and local or state sources.

• On November 1, 2020, CBL & Associates Properties, Inc., CBL & Associates Limited Partnership, and certain other related entities filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code, in order to implement a plan to recapitalize the Company, including restructuring portions of its debt.

1

"During the third quarter, the CBL portfolio fully reopened with the majority of our tenants following suit," said Stephen Lebovitz, Chief Executive Officer. "While traffic is still at a reduced level as compared with the prior year, we are seeing sequential improvement in a number of markets as well as a more deliberate shopper, benefiting conversion rates and sales. What has been reinforced during this time, is the strength of our locations in their markets as they continue to serve as important community centers. With extensive safety protocols in place, each of our properties is able to provide tenants, advertisers and other businesses access to a traffic stream of tens of thousands of visitors per week. As large gatherings such as sporting events, concert venues and the like have been discontinued or curtailed for the near future, no other venues can currently provide this type of access, and in a safe manner. Tenants are also exploring new innovative ways to better reach their customers, utilizing curbside, delivery, buy online pick-upin-store (BOPIS) and other services. We are working with several of our tenants to open satellite in-line and kiosk locations specifically designed to meet the increased demand for BOPIS. Our leasing team is working closely with our tenants to find additional new opportunities to expand customer reach.

"Our leasing team took a proactive approach to working with our tenants on more flexible lease terms as we all navigate the pandemic together. As a result, we were able to finalize negotiations for rent deferrals or other accommodations for a majority of our top tenants. We've experienced a significant improvement in collections as these tenants pay past due rents. April's collection rate improved from 27% to over 76% and May improved from 33% to 68%. We expect this trend to continue as we move later in the year and into 2021, and certain deferred rents begin coming due.

"While the portfolio has reopened, the effects of the pandemic are clearly evident in our third quarter results and will continue to have a significant impact. Store closures, including tenant bankruptcies, have contributed to occupancy declines and significant rent loss and lower sales have resulted in lower percentage rent. While we continued our programs to reduce costs both at the property and corporate levels, certain expenses necessarily resumed as the portfolio opened. We are keeping a close eye on our watch list as the pandemic has contributed to the weakened financial condition for a number of tenants, particularly in categories such as theaters and other entertainment operators that have not been able to resume operations. While many are finding creative solutions to reach their customer, we anticipate additional store closures and lost rent through the remainder of the year as the difficult operating environment continues.

"On November 1st, we filed for voluntary Chapter 11 bankruptcy protection. Through this process, we expect to eliminate more than $1.5 billion of unsecured debt and preferred obligation from our balance sheet. By reducing leverage, lengthening maturities, lowering interest costs and increasing free cash flow, upon emergence, CBL will be in an excellent position to execute on our strategic priorities and pursue future growth opportunities."

FINANCIAL RESULTS

Net loss attributable to common shareholders for the third quarter 2020 was $54.1 million, or $0.28 per diluted share, compared with a net loss of $90.1 million, or a loss of $0.52 per diluted share, for the third quarter 2019.

Net loss attributable to common shareholders for the nine months ended September 30, 2020, was $269.4 million, or $1.43 per diluted share, compared with a net loss of $175.7 million, or a loss of $1.01 per diluted share, for the nine months ended 2019.

FFO allocable to common shareholders, as adjusted, for the third quarter 2020 was $8.6 million, or $0.04 per diluted share, compared with $58.7 million, or $0.34 per diluted share, for the third quarter 2019. FFO allocable to the Operating Partnership common unitholders, as adjusted, for the third quarter 2020 was $9.0 million compared with $67.8 million for the third quarter 2019.

FFO allocable to common shareholders, as adjusted, for the nine months ended September 30, 2020 was $61.1 million or $0.32 per diluted share, compared with $170.5 million or $0.98 per diluted share, for the nine months ended September 30, 2019. FFO allocable to the Operating Partnership common unitholders, as adjusted, for the nine months ended September 30, 2020, was $65.5 million compared with $196.8 million for the nine months ended September 30, 2019.

2