SANTA MONICA, Calif., May 4, 2010 /PRNewswire via COMTEX/ --The Macerich Company (NYSE: MAC) today announced results of operations for the quarter ended March 31, 2010 which included total funds from operations ("FFO") diluted of $71.6 million or $.66 per share-diluted, compared to $1.16 per share-diluted for the quarter ended March 31, 2009. Net loss available to common stockholders for the quarter ended March 31, 2010 was $6.4 million or -$.08 per share-diluted compared to net income available to common stockholders of $14.0 million or $.18 per share-diluted for the quarter ended March 31, 2009. 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 or loss to FFO and net income or loss 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, same center net operating income increased by 1.8%.
- Occupancy increased to 91.1% at March 31, 2010, up from 90.1% at March 31, 2009.
- Mall total tenant sales increased 3.4% for the quarter compared to the quarter ended March 31, 2009.
- In April, the Company issued 31 million shares of common stock raising net proceeds in excess of $1.2 billion.
- The Company closed on property loans for over $280 million during the first four months of 2010.
Commenting on results, Arthur Coppola chairman and chief executive officer of Macerich stated, "Over a year ago we embarked on a multi-faceted capital plan to raise liquidity and strengthen our balance sheet. With the completion of our recent equity issuance we have successfully executed our capital plan and we now have a very strong balance sheet and have positioned the Company to be opportunistic.
In addition to the recent capital activity, we are pleased to report improving business fundamentals including increased occupancy, positive same center operating results, increasing tenant sales and very strong leasing volumes."
Redevelopment Update
In 2010, Macerich announced new leases with 18 retailers for the new Santa Monica Place, including Barneys Co-op, Betsy Johnson and Tory Burch, as well as The Market at Santa Monica Place. The project is slated to open in August 2010. To date, executed deals with nearly 60 retailers and restaurants have been announced, including Bloomingdale's and Nordstrom. The project has tenant leases or commitments for over 92% of the project.
On May 7, a relocated and expanded 138,000-square-foot Nordstrom and 35,000 square feet of new small shop space will open at Los Cerritos Center, Macerich's high-performing super-regional shopping center in Southern California. The project is 100% leased and new retailers include True Religion, Love Culture, MAC Cosmetics, Foreign Exchange, Carlton Hair and Vision Shoes.
Financing Activity
Transactions completed in 2010 include the recent closing of a $135 million, five year floating rate bank loan on Vintage Faire Mall. The new loan carries a LIBOR plus 3.00% interest rate and paid off the former loan of $62 million with a fixed interest rate of 7.9%.
The Company has also closed on a $105 million, five year, 6.08% CMBS financing on South Plains Mall in Lubbuck, Texas. The loan proceeds repaid the former loan of $58 million with an interest rate of 9.5%.
In addition, the Company has financing agreements in place for the refinancings of Panorama Mall and Wilton Mall. The combined financings total $88 million.
Upon completion of the above transactions, the Company will have $155 million of remaining loan maturities for 2010.
In April, the Company executed a one year extension option on its $1.5 billion credit facility and repaid the existing balance in its entirety.
Dividend
On April 29th, 2010, the Board of Directors of the Company declared a quarterly cash dividend of $.50 per share of common stock. The dividend is payable on June 8, 2010 to stockholders of record at the close of business on May 10, 2010. This represents the Company's return to a 100% cash dividend.
Earnings Guidance
Management is providing revised guidance for both FFO per share-diluted and EPS for 2010. The revised guidance gives effect to the upsized public offering of 31 million shares of common stock from the initial offering of 18.5 million shares used in the previously issued guidance.
The reconciliation from the prior 2010 FFO guidance and its reconciliation to EPS is reflected below:
Previously provided FFO per share
guidance $2.70 to $2.90
Less additional dilution from the
Up-sized equity offering - .10 to -.10
---------------------------
Revised FFO per share guidance: $2.60 to $2.80
Less depreciation and amortization
expense: 2.48 to 2.48
-------------------------
EPS guidance range: $.12 to $.32
-----------------------
The revised guidance assumes that the use of proceeds is to reduce the Company's indebtedness and for general corporate purposes.
The Company's 2010 earnings guidance is based upon its internal forecasting and planning process and on many assumptions including management's current view of market and economic conditions, including those specifically impacting the regional mall business. Due to the uncertainty in the timing and economics of dispositions and acquisitions of assets and joint venture interests, the guidance ranges do not include any potential impact from such future dispositions or acquisitions.
Macerich 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 a 91% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 74 million square feet of gross leaseable area consisting primarily of interests in 71 regional malls. Additional information about Macerich can be obtained from the Company's website at 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 www.macerich.com (Investing Section) and through CCBN at www.earnings.com. The call begins today, May 4, 2010 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 www.macerich.com (Investing Section) will be available for one year after the call.
The Company will publish a supplemental financial information package which will be available at www.macerich.com in the Investing Section. It will also be furnished to the SEC as part of a Current Report on Form 8-K.
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, terms 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; the liquidity of real estate investments, 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, 2009 and the Quarterly Reports on Form 10-Q, for a discussion of such risks and uncertainties, which discussion is incorporated herein by reference. The Company does not intend, and undertakes no obligation, to update any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events unless required by law to do so.
(See attached tables)
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results of Operations:
Results before
Discontinued Operations
(a)
------------------------
For the Three Months
Ended March 31,
---------------
Unaudited
---------
2010 2009
---- ----
Minimum rents $101,976 $127,477
Percentage rents 2,987 2,801
Tenant recoveries 61,009 64,910
Management Companies' revenues 10,221 8,541
Other income 5,917 7,054
----- -----
Total revenues 182,110 210,783
-------------- ------- -------
Shopping center and operating expenses 60,930 70,780
Management Companies' operating expenses 22,187 23,431
Income tax benefit (1,215) (801)
Depreciation and amortization 59,215 64,911
REIT general and administrative expenses 7,518 5,258
Interest expense 55,411 69,939
Gain on early extinguishment of debt - 22,474
Gain on sale or write down of assets - 756
Co-venture interests (b) (1,384) -
Equity in income of unconsolidated joint
ventures 16,459 15,926
(Loss) income from continuing operations (6,861) 16,421
Discontinued operations:
Loss on sale or write down of assets - -
(Loss) income from discontinued
operations - -
Total (loss) income from discontinued
operations - -
Net (loss) income (6,861) 16,421
Less net (loss) income attributable to
noncontrolling interests (504) 2,405
Net (loss) income attributable to the
Company (6,357) 14,016
Less preferred dividends - -
--- ---
Net (loss) income available to common
stockholders ($6,357) $14,016
------------------------------------- ------- -------
Average number of shares outstanding -
basic 96,951 76,897
-------------------------------------- ------ ------
Average shares outstanding, assuming full
conversion of OP Units (c) 109,118 88,551
------- ------
Average shares outstanding -Funds From
Operations ("FFO") -diluted (c) 109,118 88,551
-------------------------------------- ------- ------
Per share (loss) income- diluted before
discontinued operations - -
--------------------------------------- --- ---
Net (loss) income per share-basic ($0.08) $0.18
--------------------------------- ------ -----
Net (loss) income per share -diluted
(c) ($0.08) $0.18
------ -----
Dividend declared per share $0.60 $0.80
--------------------------- ----- -----
FFO - basic (c) (d) $71,597 $102,839
-------------------- ------- --------
FFO - diluted (c) (d) $71,597 $102,839
--------------------- ------- --------
FFO per share- basic (c) (d) $0.66 $1.16
------------------------------ ----- -----
FFO per share- diluted (c) (d) $0.66 $1.16
------------------------------- ----- -----
Results of Operations:
Impact of
Discontinued Operations
(a)
------------------------
For the Three Months
Ended March 31,
---------------
Unaudited
---------
2010 2009
---- ----
Minimum rents 4 ($4,268)
Percentage rents - -
Tenant recoveries - (765)
Management Companies' revenues - -
Other income - (29)
--- ---
Total revenues 4 (5,062)
-------------- --- ------
Shopping center and operating expenses (109) (1,356)
Management Companies' operating expenses - -
Income tax benefit - -
Depreciation and amortization - (1,436)
REIT general and administrative expenses - -
Interest expense - -
Gain on early extinguishment of debt - -
Gain on sale or write down of assets - 17
Co-venture interests (b) - -
Equity in income of unconsolidated joint
ventures - -
(Loss) income from continuing operations 113 (2,253)
Discontinued operations:
Loss on sale or write down of assets - (17)
(Loss) income from discontinued operations (113) 2,270
Total (loss) income from discontinued
operations (113) 2,253
Net (loss) income - -
Less net (loss) income attributable to
noncontrolling interests - -
Net (loss) income attributable to the
Company - -
Less preferred dividends - -
--- ---
Net (loss) income available to common
stockholders - -
------------------------------------- --- ---
Average number of shares outstanding -
basic
--------------------------------------
Average shares outstanding, assuming full
conversion of OP Units (c)
Average shares outstanding -Funds From
Operations ("FFO") -diluted (c)
--------------------------------------
Per share (loss) income- diluted before
discontinued operations
---------------------------------------
Net (loss) income per share-basic
---------------------------------
Net (loss) income per share - diluted (c)
Dividend declared per share
---------------------------
FFO - basic (c) (d)
--------------------
FFO - diluted (c) (d)
---------------------
FFO per share- basic (c) (d)
------------------------------
FFO per share- diluted (c) (d)
-------------------------------
Results of Operations:
Results after
Discontinued Operations
(a)
------------------------
For the Three Months
Ended March 31,
---------------
Unaudited
---------
2010 2009
---- ----
Minimum rents $101,980 $123,209
Percentage rents 2,987 2,801
Tenant recoveries 61,009 64,145
Management Companies' revenues 10,221 8,541
Other income 5,917 7,025
----- -----
Total revenues 182,114 205,721
-------------- ------- -------
Shopping center and operating expenses 60,821 69,424
Management Companies' operating expenses 22,187 23,431
Income tax benefit (1,215) (801)
Depreciation and amortization 59,215 63,475
REIT general and administrative expenses 7,518 5,258
Interest expense 55,411 69,939
Gain on early extinguishment of debt - 22,474
Gain on sale or write down of assets - 773
Co-venture interests (b) (1,384) -
Equity in income of unconsolidated joint
ventures 16,459 15,926
(Loss) income from continuing operations (6,748) 14,168
Discontinued operations:
Loss on sale or write down of assets - (17)
(Loss) income from discontinued operations (113) 2,270
Total (loss) income from discontinued
operations (113) 2,253
Net (loss) income (6,861) 16,421
Less net (loss) income attributable to
noncontrolling interests (504) 2,405
Net (loss) income attributable to the
Company (6,357) 14,016
Less preferred dividends - -
--- ---
Net (loss) income available to common
stockholders ($6,357) $14,016
------------------------------------- ------- -------
Average number of shares outstanding - basic 96,951 76,897
-------------------------------------------- ------ ------
Average shares outstanding, assuming full
conversion of OP Units (c) 109,118 88,551
------- ------
Average shares outstanding -Funds From
Operations ("FFO") -diluted (c) 109,118 88,551
-------------------------------------- ------- ------
Per share (loss) income- diluted before
discontinued operations ($0.08) $0.15
--------------------------------------- ------ -----
Net (loss) income per share-basic ($0.08) $0.18
--------------------------------- ------ -----
Net (loss) income per share - diluted (c) ($0.08) $0.18
------ -----
Dividend declared per share $0.60 $0.80
--------------------------- ----- -----
FFO - basic (c) (d) $71,597 $102,839
-------------------- ------- --------
FFO - diluted (c) (d) $71,597 $102,839
--------------------- ------- --------
FFO per share- basic (c) (d) $0.66 $1.16
------------------------------ ----- -----
FFO per share- diluted (c) (d) $0.66 $1.16
------------------------------- ----- -----
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Pro rata share of unconsolidated joint
ventures:
For the Three
Months
Ended March 31,
---------------
Unaudited
---------
2010 2009
---- ----
Revenues:
Minimum rents $74,051 $67,036
Percentage rents 1,896 1,397
Tenant recoveries 37,314 32,055
Other 4,183 3,435
Total revenues 117,444 103,923
------- -------
Expenses:
Shopping center and operating expenses 41,816 35,979
Interest expense 31,092 25,502
Depreciation and amortization 27,455 26,501
Total operating expenses 100,363 87,982
------- ------
(Loss) gain on sale or write down of
assets (62) 8
Loss on early extinguishment of debt (689) -
Equity in income (loss) of joint
ventures 129 (23)
Net income $16,459 $15,926
------- -------
Reconciliation of Net (loss) income to
FFO (d):
For the Three
Months
Ended March 31,
---------------
Unaudited
---------
2010 2009
---- ----
Net (loss) income -available to
common stockholders ($6,357) $14,016
Adjustments to reconcile net (loss)
income to FFO -basic
Noncontrolling interests in OP (798) 2,124
Gain on sale or write down of
consolidated assets - (756)
plus gain on undepreciated asset
sales- consolidated assets - 1,354
less write down of consolidated assets - (582)
Loss (gain) on sale or write-down of
assets from unconsolidated 62 (8)
entities (pro rata)
less loss on undepreciated asset sales
-unconsolidated entities (31) -
(pro rata share)
less write down of assets -
unconsolidated entities (pro rata
share) (32) -
Depreciation and amortization on
consolidated assets 59,215 64,911
Less depreciation and amortization
allocable to noncontrolling (5,093) (1,067)
interests on consolidated joint
ventures
Depreciation and amortization on joint
ventures (pro rata) 27,455 26,501
Less: depreciation on personal
property (2,824) (3,654)
Total FFO - basic 71,597 102,839
Additional adjustment to arrive at FFO
-diluted:
Preferred units - dividends - -
Total FFO - diluted $71,597 $102,839
------- --------
Reconciliation of EPS to FFO per
diluted share:
For the Three
Months
Ended March 31,
---------------
Unaudited
---------
2010 2009
---- ----
Earnings per share - diluted ($0.08) $0.18
Per share impact of depreciation and
amortization of real estate 0.74 0.98
FFO per share - diluted $0.66 $1.16
----- -----
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
For the Three
Months
Reconciliation of Net (loss) income to
EBITDA: Ended March 31,
---------------
Unaudited
---------
2010 2009
---- ----
Net (loss) income -available to
common stockholders ($6,357) $14,016
Interest expense -consolidated assets 55,411 69,939
Interest expense -unconsolidated
entities (pro rata) 31,092 25,502
Depreciation and amortization -
consolidated assets 59,215 64,911
Depreciation and amortization -
unconsolidated entities (pro rata) 27,455 26,501
Noncontrolling interests in OP (798) 2,124
Less: Interest expense and
depreciation and amortization
allocable to noncontrolling interests
on consolidated joint ventures (7,999) (1,488)
Gain on early extinguishment of debt - (22,474)
Loss on early extinguishment of debt -
unconsolidated entities 689 -
(pro rata)
Loss (gain) on sale or write down of
assets -consolidated assets - (756)
Loss (gain) on sale or write down of
assets -unconsolidated entities 62 (8)
(pro rata)
Income tax (benefit) expense (1,215) (801)
Distributions on preferred units 208 243
EBITDA (e) $157,763 $177,709
-------- --------
Reconciliation of EBITDA to Same
Centers -Net Operating
Income ("NOI"):
For the Three
Months
Ended March 31,
---------------
Unaudited
---------
2010 2009
---- ----
EBITDA (e) $157,763 $177,709
Add: REIT general and administrative
expenses 7,518 5,258
Management Companies' revenues (10,221) (8,541)
Management Companies' operating
expenses 22,187 23,431
Lease termination income of comparable
centers (1,273) (1,542)
EBITDA of non-comparable centers (28,235) (51,196)
Same Centers - NOI (f) $147,739 $145,119
-------- --------
(e) EBITDA represents earnings before interest, income taxes,
depreciation, amortization, noncontrolling interests, 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.
(f) 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. Same center NOI excludes the
impact of straight- line and above/below market adjustments to
minimum rents.
SOURCE The Macerich Company