CBL & Associates Properties (CBL) has wrapped up FY 2025 with fourth quarter total revenue of US$156.4 million and basic EPS of US$1.60, while funds from operations (FFO) reached US$60.4 million, setting the tone for what has been an eventful year. Over recent quarters, total revenue has moved from US$131.7 million in Q4 2024 to US$156.4 million in Q4 2025 and basic EPS has ranged from US$0.52 in Q3 2024 to US$2.44 in Q3 2025, with trailing twelve month EPS at US$4.41, giving investors a richer earnings base to assess alongside the jump in net margin to 23.1% from 11.2% a year earlier. Against the backdrop of a very large one off gain and mixed forward earnings forecasts, the latest numbers point to healthier reported margins but also raise questions about how durable that profitability profile really is.

See our full analysis for CBL & Associates Properties.

With the headline results on the table, the next step is to see how these margins and earnings trends line up with the most widely held narratives around CBL & Associates Properties, and where those stories might be challenged by the data.

FFO of US$208.9 million underpins recent profit jump

• Across the last 12 months, funds from operations reached US$208.9 million on US$578.4 million of revenue, compared with quarterly FFO ranging from US$34.8 million to US$73.4 million in the periods shown. This gives you a clearer sense of the cash backing the recent profit numbers.
• What stands out for the bullish camp is that this FFO base sits alongside reported earnings growth of 131.8% over the year and five year average profit growth of 61.9%. However, the presence of a US$104.7 million one off gain means investors focused on recurring cash flow may lean more on the FFO trend than on the headline profit jump.
  • Bulls often highlight the higher trailing net margin of 23.1% versus 11.2% a year earlier, but the size of that one off item means the FFO figures are an important cross check on how much of the story is tied to operations.
  • Readers weighing a bullish angle may compare the US$208.9 million FFO and US$133.9 million of last 12 month net income against the forecasts of very large average EPS declines of 91.5% per year. This puts the durability of this stronger period under the spotlight.

Curious how other investors are interpreting this mix of strong FFO and one off driven profits, and what that might mean for CBL beyond this year? 📊 Read the what the Community is saying about CBL & Associates Properties.

23.1% net margin includes US$104.7 million one off

• Last 12 month net income of US$133.9 million on US$578.4 million of revenue equates to a 23.1% net margin compared with 11.2% a year earlier, and that step up is heavily shaped by the US$104.7 million one off gain flagged in the analysis.
• Critics who take a more bearish view tend to focus on how much of the recent profitability is tied to that single gain and on the warning that interest costs are not well covered by earnings, and the numbers here give them specific anchors.
  • The fact that the US$104.7 million item is almost as large as the entire last 12 month net income of US$133.9 million illustrates why bears question how representative the current 23.1% margin is of underlying performance.
  • Weak interest coverage is also singled out as a major risk, so some cautious investors will pair the high reported margin with the comment that interest payments are not well covered, viewing both together rather than relying on headline profitability in isolation.

P/E of 10.2x and US$48.47 DCF fair value vs US$43.95 price

• On the valuation side, the shares trade on a trailing P/E of 10.2x compared with 24.3x for the US Retail REITs industry and 32.6x for peers, while the DCF fair value of US$48.47 sits about 9.3% above the current share price of US$43.95.
• What is interesting for investors weighing both bullish and bearish arguments is that these lower valuation multiples and modest discount to DCF fair value sit next to forecasts of very large average EPS declines of 91.5% per year and concerns around interest coverage. This creates a clear tension between what the recent numbers show and what the projections flag.
  • Supporters of the bullish case can point to reported earnings growth of 131.8% over the last year combined with the current 10.2x P/E and the DCF fair value of US$48.47 as reasons the stock may screen as cheaper than industry and peers on trailing figures.
  • On the other hand, those taking a more cautious stance lean on the forecast EPS path and the warning that interest is not well covered, arguing that the lower P/E and the gap between US$48.47 and US$43.95 need to be set against the risk of future profit compression.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on CBL & Associates Properties's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Seeing both risks and rewards in the story so far, and wondering how they balance out for you personally? Take a closer look at the underlying figures, stress test your own thesis, and then weigh up the 2 key rewards and 3 important warning signs

See What Else Is Out There

CBL & Associates Properties leans heavily on a US$104.7 million one off gain, faces weak interest coverage, and carries forecasts of very large EPS declines.

If you are uneasy about that mix of one off driven profits and pressure on interest coverage, now is a good time to compare it with stocks in the solid balance sheet and fundamentals stocks screener (44 results)

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.