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Activist takes stake in struggling mall landlord CBL Properties

Real estate activist Michael Ashner via Exeter Capital Investors LP and related entities took a 5.97% stake in troubled regional mall landlord CBL Properties, according to an Aug. 26 filing.

Exeter Capital, Ashner and related entities acquired 10,350,000 common shares of the real estate investment trust between June 24 and Aug. 23 at per-share prices ranging from 80 cents to $1.16.

In its filing, Exeter Capital cited as its rationale its belief that CBL shares were undervalued and "represented an attractive investment opportunity."

CBL, whose share price has fallen for years as its roster of tenant store closings and bankruptcies has lengthened, traded up more than 8% in midday trading Aug. 26, to around 87 cents.

The company earlier in 2019 was forced to suspend its dividend as part of a class-action settlement with a tenant related to electricity billing. It is working through a redevelopment pipeline to help re-tenant and revitalize its properties. At its peak in 2007, the mall REIT's shares were trading around $48.00 apiece.

Earlier in August, the company reported second-quarter results that missed consensus earnings estimates and lowered its 2019 guidance.