SANTA MONICA, Calif., Oct. 31 /PRNewswire-FirstCall/ -- The Macerich Company (NYSE: MAC) today announced results of operations for the quarter ended September 30, 2007 which included total funds from operations ("FFO") diluted of $111.0 million or $1.15 per share, up 17% compared to $.98 per share-diluted for the quarter ended September 30, 2006. For the nine months ended September 30, 2007, FFO-diluted was $298.2 million compared to $262 million for the nine months ended September 30, 2006. Net income available to common stockholders for the quarter ended September 30, 2007 was $17.3 million or $.24 per share-diluted compared to $47.0 million or $.66 per share-diluted for the quarter ended September 30, 2006. Included in net income during the quarter ended September 30, 2006 was $46.6 million in gain on sale of assets, compared to a .8 million loss on asset sales during the quarter ended September 30, 2007. For the nine months ended September 30, 2007, net income was $33.3 million compared to $80.1 million for the nine months ended September 30, 2006. The Company's definition of FFO is in accordance with the definition provided by the National Association of Real Estate Investment Trusts ("NAREIT"). A reconciliation of net income to FFO and net income per common share-diluted ("EPS") to FFO per share-diluted is included in the financial tables accompanying this press release.
Recent Highlights:
-- During the quarter, Macerich signed 356,000 square feet of specialty
store leases at average initial rents of $43.77 per square foot.
Starting base rent on new lease signings was 27.1% higher than the
expiring base rent.
-- Mall tenant annual sales per square foot for the year ended September
30, 2007 increased 5.5% to $460 compared to $436 at September 30,
2006.
-- Portfolio occupancy at September 30, 2007 was 93.5% compared to 93.0%
at September 30, 2006.
-- FFO per share-diluted increased 17% compared to the third quarter of
2006.
-- SanTan Village, a 1.2 million square foot regional shopping center in
Gilbert, Arizona celebrated its grand opening on October 26, 2007.
Commenting on results, Arthur Coppola president and chief executive officer of Macerich stated "The quarter reflected continuing strong fundamentals with occupancy gains, strong releasing spreads and solid same center growth in net operating income. We continue to make excellent progress on our significant pipeline of developments and redevelopments. This is illustrated by our very successful grand opening of SanTan Village on October 26th, and our planned grand openings of Freehold Raceway Mall on November 8th and The Promenade at Casa Grande on November 16th."
Redevelopment and Development Activity
The first phase of SanTan Village opened on October 26th with retailers posting record-breaking results significantly ahead of expectations for the grand opening weekend. The 1.2-million-square-foot open-air super-regional shopping center opened with over 90% of the retail space committed with Dillard's and more than 85 specialty retailers joining Harkins Theatres, which opened March 2007. Approximately 100 retailers are expected to be open in 2007, with the balance of the project opening in phases throughout 2008. Future phases include Dick's Sporting Goods, Best Buy, Barnes & Noble and up to 13 restaurants. Deals were completed with 32 retailers in the third quarter, including Brio Tuscan Grille, Cantina Loredo, Gordon Biersch, Gymboree, Kona Grill, Pumpkin Patch and Sephora.
The first phase of The Promenade at Casa Grande, a 1-million-square-foot, 130-acre department store anchored hybrid lifestyle center, will open November 16th in fast-growing Pinal County, Arizona. Ninety percent committed, the first phase of the project will open with approximately 550,000 square feet of mini-majors, including Dillard's, Target, JCPenney, Bed, Bath and Beyond, Cost Plus World Market, Fashion Bug, Olive Garden, Mimi's Cafe and Sports Authority. The project's second phase, complementary small shops and restaurants, is expected to open spring 2008.
Flagstaff Mall's 435,000-square-foot lifestyle expansion began opening in phases on October 19th with retailers reporting sales ahead of projections. Phase I of The Marketplace at Flagstaff Mall delivered approximately 240,000 square feet of new retail space including Best Buy, Cost Plus World Market, Home Depot, Linens n Things, Marshalls, Old Navy, Petco and Shoe Pavilion. Phase II, which will consist of village shops, an entertainment plaza and pad space, is expected to be completed in 2009-2010.
On November 8th, Freehold Raceway Mall will open the first phase of a combined expansion and renovation project that will add 96,000 square feet of new retail and restaurant uses to this high-performing regional center in New Jersey. The expansion, which is 85% committed, will add nine new-to-market additions including: Borders, The Cheesecake Factory, P.F. Chang's, Jared The Galleria of Jewelry, The Territory Ahead, Ann Taylor, Chico's, Coldwater Creek and White House/Black Market. The balance of the project is expected to open throughout 2008.
Scottsdale Fashion Square, the 2 million square foot luxury flagship, is undergoing a $130 million redevelopment and expansion. Phase I of the redevelopment and expansion began September 2007 with demolition of the vacant anchor space acquired as a result of the Federated-May merger and an adjacent parking structure. A 60,000-square-foot Barneys New York, the high-end retailer's first Arizona location, will anchor an additional 100,000 square feet of up to 30 new luxury shops, which is planned to open fall 2009 in an urban setting on Scottsdale Road. New first-to-market deals recently announced include Bottega Veneta, Grand Lux Cafe, Salvatore Ferragamo, CH Carolina Herrera, A|X Armani Exchange and Michael Kors.
Construction continues on the combined redevelopment, expansion and interior renovation of The Oaks, an upscale 1.1 million square foot super-regional shopping center in California's affluent Thousand Oaks. The project is expected to be completed in fall 2008. The market's first Nordstrom department store is under construction.
Macerich successfully completed the site plan approval process for the 106-acre, 1-million-square-foot regional shopping center at the core of Estrella Falls on October 22nd. Infrastructure development for the 330-acre mixed-use development is underway and the project's multi-phased opening is expected to begin fall 2008 with the adjacent 500,000-square-foot power center that is currently under construction. The mall is projected to open in phases beginning in 2009.
The Macerich Company is a fully integrated self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. The Company is the sole general partner and owns an 85% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 78 million square feet of gross leaseable area consisting primarily of interests in 73 regional malls. Additional information about The Macerich Company can be obtained from the Company's web site at http://www.macerich.com.
Investor Conference Call
The Company will provide an online Web simulcast and rebroadcast of its quarterly earnings conference call. The call will be available on The Macerich Company's website at http://www.macerich.com and through CCBN at http://www.earnings.com. The call begins today, October 31, 2007 at 10:30 AM Pacific Time. To listen to the call, please go to any of these web sites at least 15 minutes prior to the call in order to register and download audio software if needed. An online replay at http://www.macerich.com will be available for one year after the call.
Note: This release contains statements that constitute forward-looking statements. Stockholders are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to vary materially from those anticipated, expected or projected. Such factors include, among others, general industry, economic and business conditions, which will, among other things, affect demand for retail space or retail goods, availability and creditworthiness of current and prospective tenants, anchor or tenant bankruptcies, closures, mergers or consolidations, lease rates and terms, interest rate fluctuations, availability and cost of financing and operating expenses; adverse changes in the real estate markets including, among other things, competition from other companies, retail formats and technology, risks of real estate development and redevelopment, acquisitions and dispositions; governmental actions and initiatives (including legislative and regulatory changes); environmental and safety requirements; and terrorist activities which could adversely affect all of the above factors. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2006, for a discussion of such risks and uncertainties, which discussion is incorporated herein by reference.
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results of Operations:
Results before Impact of Results after
SFAS 144(e) SFAS 144(e) SFAS 144(e)
For the For the For the
Three Months Three Months Three Months
Ended September 30, Ended September 30, Ended September 30,
Unaudited Unaudited
2007 2006 2007 2006 2007 2006
Minimum rents $130,371 $123,314 $0 ($7,437) $130,371 $115,877
Percentage rents 4,992 4,880 - (178) 4,992 4,702
Tenant recoveries 70,623 67,541 - (3,291) 70,623 64,250
Management
Companies'
revenues 9,242 8,023 - - 9,242 8,023
Other income 8,793 9,469 (37) (244) 8,756 9,225
Total revenues $224,021 $213,227 ($37)($11,150) $223,984 $202,077
Shopping center
and operating
expenses 73,624 71,553 207 (4,075) 73,831 67,478
Management
Companies'
operating
expenses 17,908 14,455 - - 17,908 14,455
Income tax
expense (benefit) 429 535 - - 429 535
Depreciation and
amortization 60,173 56,120 (2) (2,578) 60,171 53,542
REIT general
and administrative
expenses 1,992 2,551 - - 1,992 2,551
Interest expense 59,982 70,272 - (2,919) 59,982 67,353
Loss on early
extinguishment
of debt - 29 - - - 29
(Loss) gain on
sale or writedown
of assets (758) 46,560 905 (46,022) 147 538
Equity in income
of unconsolidated
joint
ventures (c) 18,648 18,490 - - 18,648 18,490
Minority interests
in consolidated
joint ventures (726) (694) 5 (176) (721) (870)
Income (loss)
from continuing
operations 27,077 62,068 668 (47,776) 27,745 14,292
Discontinued
Operations:
(Loss) gain
on sale of assets - - (905) 46,214 (905) 46,214
Income from
discontinued
operations - - 237 1,562 237 1,562
Income before
minority
interests of OP 27,077 62,068 - - 27,077 62,068
Income allocated
to minority
interests of OP 3,070 8,901 - - 3,070 8,901
Net income
before preferred
dividends 24,007 53,167 - - 24,007 53,167
Preferred
dividends and
distributions (a) 6,727 6,199 - - 6,727 6,199
Net income to
common
stockholders $17,280 $46,968 $0 $0 $17,280 $46,968
Average number
of shares
outstanding
- basic 71,674 71,479 71,674 71,479
Average shares
outstanding,
assuming full
conversion of
OP Units (d) 84,529 85,021 84,529 85,021
Average shares
outstanding -
diluted for
FFO (a) (d) 96,677 88,648 96,677 88,648
Per share
income- diluted
before discontinued
operations - - $0.25 $0.10
Net income per
share-basic $0.24 $0.66 $0.24 $0.66
Net income per
share-diluted (a) $0.24 $0.66 $0.24 $0.66
Dividend declared
per share $0.71 $0.68 $0.71 $0.68
Funds from
operations "FFO"
(b)(d)- basic $99,397 $84,020 $99,397 $84,020
Funds from
operations "FFO"
(a)(b)(d)
- diluted $110,985 $86,595 $110,985 $86,595
FFO per share
-basic(b)(d) $1.18 $0.99 $1.18 $0.99
FFO per share
-diluted(a)(b)(d) $1.15 $0.98 $1.15 $0.98
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results of Operations:
Results before Impact of Results after
SFAS 144(e) SFAS 144(e) SFAS 144(e)
For the For the For the
Nine Months Nine Months Nine Months
Ended September 30, Ended September 30, Ended September 30,
Unaudited Unaudited
2007 2006 2007 2006 2007 2006
Minimum rents $380,286 $384,383 ($30)($29,828) $380,256 $354,555
Percentage rents 11,698 10,601 (78) (983) 11,620 9,618
Tenant
recoveries 206,401 200,879 15 (13,660) 206,416 187,219
Management
Companies'
revenues 27,595 22,650 - - 27,595 22,650
Other income 25,738 22,756 (184) (942) 25,554 21,814
Total revenues $651,718 $641,269 ($277)($45,413) $651,441 $595,856
Shopping center
and operating
expenses 211,474 209,831 (250) (16,510) 211,224 193,321
Management
Companies'
operating
expenses 54,182 41,295 - - 54,182 41,295
Income tax
(benefit) expense (478) 219 - - (478) 219
Depreciation and
amortization 177,665 179,071 - (10,106) 177,665 168,965
REIT general
and administrative
expenses 11,777 9,540 - - 11,777 9,540
Interest
expense 189,764 213,426 35 (9,143) 189,799 204,283
Loss on early
extinguishment
of debt 877 1,811 - - 877 1,811
Gain (loss) on
sale or
writedown of
assets 1,889 109,020 2,292 (108,983) 4,181 37
Equity in income
of unconsolidated
joint
ventures(c) 52,128 57,367 - - 52,128 57,367
Minority
interests in
consolidated
joint ventures (2,272) (39,101) 35 37,229 (2,237) (1,872)
Income (loss)
from continuing
operations 58,202 113,362 2,265 (81,408) 60,467 31,954
Discontinued
Operations:
(Loss) gain
on sale of assets - - (2,325) 72,167 (2,325) 72,167
Income from
discontinued
operations - - 60 9,241 60 9,241
Income before
minority
interests of OP 58,202 113,362 - - 58,202 113,362
Income allocated to
minority
interests of OP 5,935 15,131 - - 5,935 15,131
Net income before
preferred
dividends 52,267 98,231 - - 52,267 98,231
Preferred
dividends and
distributions(a) 18,971 18,139 - - 18,971 18,139
Net income to
common
stockholders $33,296 $80,092 $0 $0 $33,296 $80,092
Average
number of
shares outstanding
- basic 71,625 70,587 71,625 70,587
Average shares
outstanding,
assuming
full conversion
of OP Units(d) 84,706 84,216 84,706 84,216
Average shares
outstanding -
diluted for
FFO(a)(d) 94,545 87,843 94,545 87,843
Per share
income-
diluted before
discontinued
operations - - $0.49 $0.16
Net income per
share-basic $0.46 $1.13 $0.46 $1.13
Net income per
share-
diluted (a) $0.46 $1.13 $0.46 $1.13
Dividend declared
per share $2.13 $2.04 $2.13 $2.04
Funds from
operations "FFO"
(b)(d)- basic $271,299 $254,523 $271,299 $254,523
Funds from
operations "FFO"
(a)(b)(d)
- diluted $298,206 $262,031 $298,206 $262,031
FFO per share
- basic(b)(d) $3.21 $3.03 $3.21 $3.03
FFO per share
- diluted
(a)(b)(d) $3.15 $2.98 $3.15 $2.98
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(a) On February 25, 1998, the Company sold $100,000 of convertible
preferred stock representing 3.627 million shares. The convertible
preferred shares can be converted on a 1 for 1 basis for common
stock. These preferred shares are not assumed converted for purposes
of net income per share -- diluted for 2007 and 2006 as they would be
antidilutive to those calculations. The weighted average preferred
shares outstanding are assumed converted for purposes of FFO per
share -- diluted as they are dilutive to those calculations for all
periods presented.
On April 25, 2005, in connection with the acquisition of Wilmorite
Holdings, L.P. and its affiliates, the Company issued as part of the
consideration participating and non-participating convertible
preferred units in MACWH, LP. These preferred units are not assumed
converted for purposes of net income per share -- diluted and FFO per
share -- diluted for 2007 and 2006 as they would be antidilutive to
those calculations.
On March 16, 2007, the Company issued $950 million of convertible
senior notes. These notes are not assumed converted for purposes of
net income per share -- diluted for 2007 as they would be
antidilutive to the calculation. These notes are assumed converted
for purposes of FFO per share -- diluted for the three and nine
months ended September 30, 2007 as they are dilutive to the
calculation.
(b) The Company uses FFO in addition to net income to report its
operating and financial results and considers FFO and FFO-diluted as
supplemental measures for the real estate industry and a supplement
to Generally Accepted Accounting Principles (GAAP) measures. NAREIT
defines FFO as net income (loss) (computed in accordance with GAAP),
excluding gains (or losses) from extraordinary items and sales of
depreciated operating properties, plus real estate related
depreciation and amortization and after adjustments for
unconsolidated partnerships and joint ventures. Adjustments for
unconsolidated partnerships and joint ventures are calculated to
reflect FFO on the same basis. FFO and FFO on a fully diluted basis
are useful to investors in comparing operating and financial results
between periods. This is especially true since FFO excludes real
estate depreciation and amortization, as the Company believes real
estate values fluctuate based on market conditions rather than
depreciating in value ratably on a straight-line basis over time. FFO
on a fully diluted basis is one of the measures investors find most
useful in measuring the dilutive impact of outstanding convertible
securities. FFO does not represent cash flow from operations as
defined by GAAP, should not be considered as an alternative to net
income as defined by GAAP and is not indicative of cash available to
fund all cash flow needs. FFO as presented may not be comparable to
similarly titled measures reported by other real estate investment
trusts.
Effective January 1, 2003, gains or losses on sale of undepreciated
assets and the impact of SFAS 141 have been included in FFO. The
inclusion of gains on sales of undepreciated assets increased FFO for
the three and nine months ended September 30, 2007 and 2006 by
$0.1 million, $0.8 million, $2.3 million and $6.0 million,
respectively, or by $.00 per share, $0.01 per share, $0.03 per share
and $.07 per share, respectively. Additionally, SFAS 141 increased
FFO for the three and nine months ended September 30, 2007 and 2006
by $4.0 million, $11.5 million, $4.0 million and $12.9 million,
respectively, or by $.04 per share, $0.12 per share, $0.04 per share
and $0.15 per share, respectively.
(c) This includes, using the equity method of accounting, the Company's
prorata share of the equity in income or loss of its unconsolidated
joint ventures for all periods presented.
(d) The Macerich Partnership, LP (the "Operating Partnership" or the
"OP") has operating partnership units ("OP units"). Each OP unit can
be converted into a share of Company stock. Conversion of the OP
units not owned by the Company has been assumed for purposes of
calculating the FFO per share and the weighted average number of
shares outstanding. The computation of average shares for
FFO -- diluted includes the effect of outstanding stock options and
restricted stock using the treasury method and assumes conversion of
MACWH, LP preferred and common units to the extent they are dilutive
to the calculation. For the three and nine months ended September 30,
2007 and 2006, the MACWH, LP preferred units were antidilutive to
FFO.
(e) In October 2001, the FASB issued SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets" ("SFAS 144"). SFAS 144
addresses financial accounting and reporting for the impairment or
disposal of long-lived assets. The Company adopted SFAS 144 on
January 1, 2002. The Company has classified the results of operations
for all of the below dispositions to discontinued operations.
On June 9, 2006, Scottsdale 101 in Arizona was sold. The sale of this
property resulted in a gain on sale in 2006, at the Company's prorata
share, of $25.8 million.
On July 13, 2006, Park Lane Mall in Nevada was sold. The sale of this
property resulted in a gain on sale of $5.9 million in 2006.
On July 27, 2006, Greeley Mall in Colorado and Holiday Village in
Montana were sold. The sale of these properties resulted in gains on
sale of $21.3 million and $7.4 million, respectively, in 2006.
On August 11, 2006, Great Falls Marketplace in Montana was sold. The
sale of this property resulted in a gain on sale of $11.8 million in
2006.
On December 29, 2006, Citadel Mall in Colorado Springs, Colorado,
Crossroads Malls in Oklahoma City, Oklahoma and Northwest Arkansas
Mall in Fayetteville, Arkansas were sold. The sale of these
properties resulted in a total gain on sale of $132.7 million in
2006.
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Summarized Balance Sheet Information:
September 30, December 31,
2007 2006
Unaudited
Cash and cash equivalents $42,850 $269,435
Investment in real estate, net (h) $6,045,958 $5,755,283
Investments in unconsolidated
entities (i) $818,723 $1,010,380
Total assets $7,459,960 $7,562,163
Mortgage and notes payable $5,124,479 $4,993,879
Pro rata share of debt on
unconsolidated entities $1,821,617 $1,664,447
September 30, December 31,
2007 2006
Unaudited
Total common shares outstanding 71,713 71,568
Total preferred shares outstanding 3,627 3,627
Total partnership/preferred units
outstanding 15,565 16,342
September 30, September 30,
Additional financial data as of: 2007 2006
Unaudited
Occupancy of centers (f) 93.50% 93.00%
Comparable quarter change in same
center sales (f) (g) 1.70% 5.30%
Additional financial data for the
nine months ended:
Acquisitions of property and
equipment -- including joint
ventures at pro rata $33,609 $359,213
Redevelopment and expansions of
centers- including joint ventures at
pro rata $399,384 $141,039
Renovations of centers- including
joint ventures at pro rata $27,937 $44,546
Tenant allowances- including joint
ventures at pro rata $24,744 $28,794
Deferred leasing costs- including
joint ventures at pro rata $20,021 $20,473
(f) excludes redevelopment properties (Santan Village Phase 2, Santa
Monica Place, The Oaks, Twenty Ninth Street and Westside Pavilion
Adjacent)
(g) includes mall and freestanding stores.
(h) includes construction in process on wholly owned assets of $585,358
at September 30, 2007 and $294,115 at December 31, 2006.
(i) the Company's pro rata share of construction in process on
unconsolidated entities was $68,795 at September 30, 2007 and
$45,268 at December 31, 2006.
Pro rata share of joint ventures:
For the Three For the Nine
Months Months
Ended September 30, Ended September 30,
Unaudited Unaudited
2007 2006 2007 2006
Revenues:
Minimum rents $62,711 $59,760 $186,586 $177,230
Percentage rents 3,100 2,784 7,325 7,306
Tenant recoveries 30,139 28,674 87,930 82,680
Other 5,369 3,931 11,323 10,607
Total revenues $101,319 $95,149 $293,164 $277,823
Expenses:
Shopping center expenses 33,799 32,425 97,194 92,869
Interest expense 25,779 23,507 73,847 66,260
Depreciation and amortization 23,422 21,045 68,506 62,209
Total operating expenses 83,000 76,977 239,547 221,338
(Loss) gain on sale of assets (4) 1 (2,024) 245
Equity in income of joint ventures 333 317 535 637
Net income $18,648 $18,490 $52,128 $57,367
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Reconciliation of Net Income to FFO (b) (e):
For the Three For the Nine
Months Months
Ended September 30, Ended September 30,
Unaudited Unaudited
2007 2006 2007 2006
Net income - available to common
stockholders $17,280 $46,968 $33,296 $80,092
Adjustments to reconcile net
income to FFO -- basic
Minority interest in OP 3,070 8,901 5,935 15,131
Loss (gain) on sale of
consolidated assets 758 (46,560) (1,889) (109,020)
plus gain on undepreciated
asset sales- consolidated
assets 111 2,339 450 5,715
plus minority interest
share of gain (loss) on
sale of consolidated
joint ventures 39 (192) 388 36,816
Loss (gain) on sale of assets
from unconsolidated entities
(pro rata share) 4 (1) 2,024 (245)
plus (loss) gain on
undepreciated asset
sales- unconsolidated
entities (pro rata share) (4) - 346 244
Depreciation and amortization
on consolidated assets 60,173 56,120 177,665 179,071
Less depreciation and
amortization allocable to
minority interests on
consolidated joint ventures (1,019) (1,128) (3,346) (4,351)
Depreciation and amortization
on joint ventures (pro rata) 23,422 21,045 68,506 62,209
Less: depreciation on personal
property and amortization of
loan costs and interest
rate caps (4,437) (3,472) (12,076) (11,139)
Total FFO -- basic 99,397 84,020 271,299 254,523
Additional adjustment to arrive at
FFO - diluted Preferred stock
dividends earned 2,902 2,575 8,052 7,508
Convertible debt -- interest
expense 8,686 - 18,855 -
Total FFO -- diluted $110,985 $86,595 $298,206 $262,031
Reconciliation of EPS to FFO per diluted share:
For the Three For the Nine
Months Months
Ended September 30, Ended September 30,
Unaudited Unaudited
2007 2006 2007 2006
Earnings per share -- diluted $0.24 $0.66 $0.46 $1.13
Per share impact of
depreciation and amortization
of real estate 0.93 0.86 2.74 2.69
Per share impact of gain on
sale of depreciated assets 0.01 (0.52) 0.01 (0.79)
Per share impact of preferred
stock / convertible debt not
dilutive to EPS (0.03) (0.02) (0.06) (0.05)
Fully diluted FFO per share $1.15 $0.98 $3.15 $2.98
Reconciliation of Net Income to EBITDA:
For the Three For the Nine
Months Months
Ended September 30, Ended September 30,
Unaudited Unaudited
2007 2006 2007 2006
Net income - available to common
stockholders $17,280 $46,968 $33,296 $80,092
Interest expense 59,982 70,272 189,764 213,426
Interest expense --
unconsolidated entities (pro
rata) 25,779 23,507 73,847 66,260
Depreciation and amortization --
consolidated assets 60,173 56,120 177,665 179,071
Depreciation and amortization --
unconsolidated entities (pro
rata) 23,422 21,045 68,506 62,209
Minority interest 3,070 8,901 5,935 15,131
Less: Interest expense and
depreciation and amortization
allocable to minority interests
on consolidated joint ventures (1,468) (1,264) (4,669) (6,191)
Loss on early extinguishment of
debt - 29 877 1,811
Loss (gain) on sale of assets --
consolidated assets 758 (46,560) (1,889) (109,020)
Loss (gain) on sale of assets --
unconsolidated entities (pro
rata) 4 (1) 2,024 (245)
Add: Minority interest share of
gain (loss)on sale of
consolidated joint ventures 39 (192) 388 36,816
Income tax expense (benefit) 429 535 (478) 219
Preferred dividends 6,727 6,199 18,971 18,139
EBITDA (j) $196,195 $185,559 $564,237 $557,718
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Reconciliation of EBITDA to Same Centers - Net Operating Income ("NOI"):
For the Three For the Nine
Months Months
Ended September 30, Ended September 30,
Unaudited Unaudited
2007 2006 2007 2006
EBITDA (j) $196,195 $185,559 $564,237 $557,718
Add: REIT general and
administrative expenses 1,992 2,551 11,777 9,540
Management Companies'
revenues (c) (9,242) (8,023) (27,595) (22,650)
Management Companies'
operating expenses (c) 17,908 14,455 54,182 41,295
Lease termination income
of comparable centers (5,189) (1,133) (10,720) (11,498)
EBITDA of non-comparable
centers (23,429) (19,373) (64,231) (59,787)
Same Centers -- net operating
income ("NOI") (k) $178,235 $174,036 $527,650 $514,618
(j) EBITDA represents earnings before interest, income taxes,
depreciation, amortization, minority interest, extraordinary items,
gain (loss) on sale of assets and preferred dividends and includes
joint ventures at their pro rata share. Management considers EBITDA
to be an appropriate supplemental measure to net income because it
helps investors understand the ability of the Company to incur and
service debt and make capital expenditures. EBITDA should not be
construed as an alternative to operating income as an indicator of
the Company's operating performance, or to cash flows from operating
activities (as determined in accordance with GAAP) or as a measure of
liquidity. EBITDA, as presented, may not be comparable to similarly
titled measurements reported by other companies.
(k) The Company presents same-center NOI because the Company believes it
is useful for investors to evaluate the operating performance of
comparable centers. Same-center NOI is calculated using total EBITDA
and subtracting out EBITDA from non-comparable centers and
eliminating the management companies and the Company's general and
administrative expenses.
SOURCE The Macerich Company
CONTACT: Arthur Coppola, President and Chief Executive Officer, or
Thomas E. O'Hern, Executive Vice President and Chief Financial Officer, both
of The Macerich Company, +1-310-394-6000