Shopping Centers Today

OCT 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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Page 33 of 59

34 S C T / O C T O B E R 2 0 1 8 TRANSFORMING Stephen D. Lebovitz, president and CEO of CBL Proper- ties, rang the closing bell at the New York Stock Exchange this past August, joined by members of his executive team DQGRIWKH¿UP¶VERDUGWRFHOHEUDWHWKHWKDQQLYHUVDU\ of that Chattanooga, Tenn.–based company, which his IDWKHUDQG¿YHDVVRFLDWHVHVWDEOLVKHGLQDQGZKLFK ZHQWSXEOLFLQ³2XUKLVWRU\KDVLQFOXGHGDQXPEHU RIGLI¿FXOWF\FOHV´/HERYLW]VDLG³7KDWKDVEURXJKWRXW LQXVDQGLQRXULQGXVWU\JUHDWHUUHVLOLHQFHÀH[LELOLW\ and creative thinking. It has really forced us to make our properties EHWWHUDQGEHWWHU´ As has been true of other retail 5(,7V&%/¶VUHVSRQVHWRWKHUHWDLO shakeout that followed the Great Recession began with the strategy of tightening the balance sheet, jet- tisoning underperforming properties and reinvesting in higher-quality assets. But mall REITs like CBL, GGP, Macerich and Simon, unlike the landlords of grocery-anchored shopping centers, have also had to contend with fundamental changes to the form and function of their SURSHUWLHV³7KHUHLVDPDMRUWUDQV- formation going on with regional PDOOV´/HERYLW]VDLG³$ORWRILWLV being driven by the need to replace department store anchors that are HLWKHUFORVLQJRUQRWSHUIRUPLQJDVVWURQJO\´ /DVW\HDUDFURVV&%/¶VSURSHUW\SRUWIROLREDQNUXSW UHWDLOHUVYDFDWHGDERXWVTXDUHIHHWRIVSDFH/HER- vitz told analysts during a second-quarter earnings call. 7KLV\HDUWKDWZLOOFOLPEWRDERXWPLOOLRQVTXDUHIHHW most of which had been occupied by bankrupt department store operator The Bon-Ton Stores, known for its Bergn- HU¶V%RQ7RQ%RVWRQ6WRUH&DUVRQ¶V(OGHU%HHUPDQ +HUEHUJHU¶VDQG

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