What non‑GAAP adjustments were made, and how significant are they relative to the GAAP results?

Answer

The news release you quoted tells us that CBL Properties (NYSE: CBL) presented its second‑quarter 2025 results and that, together with the GAAP‑based results, it also disclosed a set of “supplemental non‑GAAP financial measures” and a reconciliation of each of those measures to the comparable GAAP figures. However, the excerpt you provided does not list the specific line‑items that were adjusted, nor the dollar or percentage amounts of those adjustments.

Below is a structured response that covers:

1. What non‑GAAP adjustments typically look like in a REIT earnings release
   
2. How you can gauge their significance relative to GAAP results
   
3. What you can do to obtain the exact numbers for CBL Properties
   

1. Typical non‑GAAP adjustments in a REIT earnings release

While I can’t confirm the exact items CBL Properties adjusted without the full release, most real‑estate investment trusts (REITs) and similar property‑focused companies use a handful of common non‑GAAP adjustments, such as:

Why these adjustments matter:

- Cash‑flow focus: REIT investors watch cash‑generating metrics (FFO, NOI) more closely than GAAP net income because REITs must distribute a large portion of cash flow as dividends.

- Non‑recurring items: Depreciation, property impairments, and gains/losses on sales can swing GAAP earnings dramatically, so companies present a “cleaned‑up” version to show underlying performance.

2. Assessing the significance of non‑GAAP adjustments

Even without the exact numbers, you can evaluate the impact of non‑GAAP adjustments by looking at a few key ratios and comparisons:

Interpretation guidelines

• Minor adjustments (≤ 5 % of GAAP net income): The GAAP results are already a good proxy for operating performance; the non‑GAAP numbers are mainly for convenience.
  
• Moderate adjustments (≈ 5 %– 15 %): Non‑GAAP figures start to provide a clearer view of cash‑generating ability, but GAAP still captures the bulk of earnings.
  
• Large adjustments (> 15 %): GAAP earnings are heavily influenced by non‑recurring or non‑cash items; investors should rely more on the adjusted metrics to gauge ongoing profitability.
  

3. How to obtain the exact CBL Properties non‑GAAP adjustments

Because the excerpt you have does not include the reconciliation table, you’ll need to locate the full press release. Here are the quickest ways:

1. Visit the Business Wire website and search for “CBL Properties Reports Results for Second Quarter 2025.” The full release typically includes a “Non‑GAAP Financial Measures” section with a table that lists:

   • GAAP Net Income (or GAAP EPS)
     
   • Adjusted Net Income (or Adjusted EPS)
     
   • The dollar amount of each adjustment (e.g., depreciation, impairment, gains/losses on sales).
     

2. Check CBL Properties’ Investor Relations page (usually cblproperties.com/investor-relations). Companies post quarterly earnings releases, presentations, and supplemental tables there. Look for the “Quarterly Results – Q2 2025” file (often a PDF).

3. SEC filings: The Form 10‑Q for the quarter ending June 30 2025 will contain the same reconciliation in Item 7 (Management’s Discussion and Analysis) or in an exhibit attached to the filing. You can retrieve it via the SEC’s EDGAR system (search for CBL’s ticker “CBL” and filter by filing date 2025‑08‑06).

4. Financial data platforms: If you have access to Bloomberg, FactSet, or S&P Capital IQ, you can pull the “Adjusted Net Income” and “Adjusted FFO” figures directly from the database; those platforms also show the underlying adjustments.

4. Putting it together – a sample illustration

Because the exact numbers are not in the excerpt, the following is a *hypothetical** illustration of how you would interpret the data once you have it.*

Interpretation: In this example, the net adjustments amount to roughly 9 % of GAAP net income—moderate, but still meaningful. The biggest driver is a $3.2 M impairment, which is a non‑cash charge that reduces GAAP earnings but is added back in the adjusted metric, indicating that the underlying property cash flow is stronger than GAAP suggests.

5. Bottom line for your question

• What non‑GAAP adjustments were made?
  
  The release mentions a reconciliation of “supplemental non‑GAAP financial measures” to GAAP, but the specific adjustments (e.g., depreciation, impairment, gains/losses on property sales, one‑time expenses) are not listed in the excerpt you provided.

• How significant are they relative to the GAAP results?
  
  Without the exact dollar or percentage amounts, we cannot quantify the significance. In practice, for a REIT like CBL Properties, adjustments often range from a few percent to upwards of 15 % of GAAP net income, depending on the level of property sales, impairments, or other non‑recurring items in the quarter.

To answer definitively, you’ll need to retrieve the full press release (or the accompanying SEC Form 10‑Q) and examine the reconciliation table. Once you have those numbers, you can apply the percentage‑of‑GAAP calculation shown above to determine whether the adjustments are minor (≤ 5 %), moderate (≈ 5 %– 15 %), or large (> 15 %).

6. Quick checklist for you

If you can provide the full reconciliation table (or the link to the complete release), I can plug the numbers into the framework above and give you a precise, quantified answer.