July 24, 2003

NEW YORK, (Reuters) - CBL & Associates Properties Inc. , the third largest U.S. mall real estate investment trust, on Thursday said second-quarter earnings rose 11.2 percent on improvements in mall and total portfolio occupancy.

The Chattanooga, Tennessee-based company reported net income of $21 million, or 68 cents per share, compared with $18.9 million, or 63 cents per share, in the year-ago quarter.

CBL said funds from operation (FFO), a key measure of operating performance for real estate investment trusts, rose to $67.4 million, or $1.19 a share, compared with $59.37 million, or $1.08 per share, the prior year.

Analysts, on average, had expected FFO of $1.11 per share, with nine estimates ranging from $1.10 to $1.13, according to Reuters Research, a unit of Reuters Group PLC.

CBL said revenue rose by 11.7 percent to $165 million.