SANTA MONICA, Calif., Nov 4, 2003 /PRNewswire-FirstCall via COMTEX/ -- The Macerich Company (NYSE: MAC) today announced results of operations for the quarter and nine months ended September 30, 2003 which included net income to common stockholders for the three months ended September 30, 2003 of $39.7 million, or $.69 per share-diluted compared to net income of $11.7 million or $.32 per share-diluted for the three months ended September 30, 2002. Net income in the quarter ended September 30, 2003 was positively impacted by net gain on sales of consolidated assets of $23 million or $.31 per share compared to no gain or loss on sales and write downs of consolidated assets in the quarter ended September 30, 2002. Net income to common stockholders for the nine months ended September 30, 2003 was $87.7 million or $1.64 per share-diluted compared to $27.7 million or $.77 per share-diluted for the nine months ended September 30, 2002.
Funds from operations ("FFO") per share - diluted for the quarter ended September 30, 2003 was $.85 compared to $.85 for the comparable period in 2002 and FFO per share - diluted for the nine months ended September 30, 2003 increased 15% to $2.54 compared to $2.21 for the comparable period in 2002. A reconciliation of net income to FFO is included in the financial highlights section of this press release.
Highlights included:
* Macerich signed 351,000 square feet of specialty store leases at
average initial rents of $39.08 per square foot. First year rents on
mall and freestanding store leases signed during the quarter were 18%
higher than expiring rents on a comparable space basis.
* Total same center tenant sales for the quarter ended September 30,
2003 were up 1.9% compared to the third quarter of 2002, comparable
tenant sales were up 1.2% over the quarter ended September 30, 2002.
* The quarterly dividend was increased to $.61 per share to stockholders
of record on November 15, 2003. Macerich has increased its dividend
each year since becoming a public company in 1994. The annualized
dividend yield based on the closing price on the date of declaration
was 6.15%.
* Portfolio occupancy remained high at 92.9% down from 93.5% at
September 30, 2002.
* On September 15, 2003, the Company closed on the $128.5 million
acquisition of Northridge Mall in Salinas, California.
FFO per share - diluted was $.85 compared to $.85 per share for the quarter ended September 30, 2002 after reflecting the recent accounting rule changes and the FFO definition discussed below. In compliance with the Securities and Exchange Commission's Regulation G relating to non-GAAP financial measures, the Company has revised its FFO definition as of January 1, 2003 and for all prior periods presented, to include gain or loss on sales of peripheral land and the effect of SFAS No. 141. The Company's revised definition is in accordance with the definition provided by the National Association of Real Estate Investment Trusts ("NAREIT"). Furthermore, effective January 1, 2003 and for all prior periods presented, loss on early extinguishment of debt is no longer considered to be an extraordinary item and accordingly is included in FFO. The impact of these changes is identified below:
All amounts per share
For the 3 months ended: For the 9 months ended:
September 30: September 30:
2003 2002 2003 2002
FFO - diluted per
share as reported: $.85 $.85 $2.54 $2.21
Included in FFO/share
is the impact of:
Loss on early
extinguishments
of debt $.00 ($.014) $.00 ($.014)
Impact of SFAS 141 $.015 $.00 $.047 $.00
Gain on peripheral
land sales $.01 $.038 $.02 $.038
Commenting on results, Arthur Coppola, President and Chief Executive Officer of Macerich stated, "Excluding the impact of the temporary financing on the Westcor acquisition which increased our leverage for the third quarter and part of the fourth quarter of 2002, the FFO growth per share was approximately 9% for the quarter. During the quarter we saw the continuation of strong releasing spreads and good leasing activity. In addition, we made tremendous progress on our balance sheet and have reduced our floating rate debt exposure considerably."
Acquisition Activity
On September 15, 2003 the Company closed on the $128.5 million acquisition of Northridge Mall in Salinas, California. Northridge is a 973,000 square foot super-regional mall anchored by Macy's, JCPenney, Sears and Mervyns. At September 30, 2003, the mall was 93% occupied and annual tenant sales per square foot were $351.
On August 28, 2003, Macerich entered into an acquisition and contribution agreement to purchase Biltmore Fashion Center in Phoenix, Arizona. Macy's and Saks Fifth Avenue anchor Biltmore. As of September 30, 2003 the center's annual tenant sales per square foot were $479. Closing on this $158.5 million acquisition is expected in the fourth quarter of 2003.
Redevelopment and Development Activity
At Queens Center, the redevelopment and expansion continued. The project will increase the size of the center from 620,000 square feet to approximately one million square feet. Completion is planned in phases starting in mid 2004 with stabilization expected in 2005. Leasing activity has been strong with over 84% of the total shop expansion space already leased, including 92% for the phase one space.
At Lakewood Center, Target opened a two-level Target store in September 2003.
Bon Marche opened a new department store at Redmond Town Center in July 2003.
Construction continues at Scottsdale 101, a 600,000 square foot power center in North Phoenix. The power center is being built in phases through 2004. Circuit City and Bed Bath and Beyond recently opened.
Progress also continues at La Encantada, a 258,000 square foot specialty center in Tucson, Arizona, which will feature Adrienne Vittadini, Ann Taylor, Apple Computer, Cache, Pottery Barn, Tommy Bahama and Williams-Sonoma. This project is planned to open in phases through 2004.
At Sommersville Town Center in Antioch, California a new 105,000 square foot Macy's store is under construction and expected to open in the fall of 2004.
Nordstrom announced plans to open a 124,000 to 144,000 square foot store at the Oaks Mall in Thousand Oaks, California. This store opening is planned in conjunction with an expansion of the existing mall tentatively scheduled to open in the fall of 2006.
Dispositions
The Company continues to dispose of non-core assets and to recycle capital. On August 4, 2003, the Company sold Bristol Center, a 161,000 square foot community center in Southern California. The sale price was approximately $30 million. This sale brings the total dispositions for the year to approximately $153 million.
Financing Activity
The Company is scheduled to close today on the refinancing of the existing $180 million floating rate loan on FlatIron Crossing. The existing loan will be paid off and refinanced with a $200 million, fixed rate 10-year loan bearing interest at 5.23%. In addition, the Company has recently closed on 5-year fixed rate loans on Chandler Festival for $32 million at 4.37% and Chandler Gateway for $20 million at 5.19%.
Also, the Company has reached agreement on an $85 million, 5-year fixed rate loan with an interest rate of 4.63% on Northridge Mall. The loan will close within the next six months at the Company's election. Loan proceeds are expected to be used to pay down the Company's unsecured floating rate debt.
In addition, in connection with the Company's $250 million unsecured term loan, an interest rate swap agreement has been entered into to fix the interest rate at 4.45% from November 2003 to October 13, 2005.
Earnings Guidance
The Company is providing revised year 2003 EPS and FFO per share guidance in the following ranges:
Guidance for 2003 Range:
Fully Diluted EPS $2.11.......$2.25
Plus: Real Estate Depreciation
and Amortization $1.86.......$1.78
Less: Gain on Sale of Assets $. 45.......$ .45
Fully Diluted FFO per share $3.52.......$3.58
The guidance is based on management's current view of the current market conditions in the regional mall business. Due to the uncertainty in the timing and economics of acquisitions and dispositions, the guidance ranges do not include any potential property acquisitions or dispositions other than those that have closed through September 30, 2003. The Company is not able to assess at this time the potential impact of such exclusions on future EPS and FFO. FFO does not include gains or losses on sales of depreciated operating assets.
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 82% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 58 million square feet of gross leaseable area consisting primarily of interests in 57 regional malls. Additional information about The Macerich Company can be obtained from the Company's web site 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, through Vcall at www.vcall.com, and CCBN at www.ccbn.com. The call begins today, November 4, 2003 at 10:00 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 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, tenant bankruptcies, 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; 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, for a discussion of such risks and uncertainties.
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results of Results before Impact Results after
Operations: SFAS 144 (f) of SFAS 144 (f) SFAS 144 (f)
For the Three For the Three For the Three
Months Ended Months Ended Months Ended
September 30 September 30 September 30
Unaudited Unaudited
2003 2002 2003 2002 2003 2002
Minimum
Rents (e) 71,371 62,107 (291) (1,668) 71,080 60,439
Percentage
Rents 2,071 1,961 -- -- 2,071 1,961
Tenant
Recoveries 39,923 33,999 (34) (307) 39,889 33,692
Other Income 4,356 3,500 (33) (30) 4,323 3,470
Total
Revenues 117,721 101,567 (358) (2,005) 117,363 99,562
Shopping center
and operating
expenses (c) 41,816 35,566 (203) (1,328) 41,613 34,238
Depreciation and
amortization 25,364 21,479 (49) (390) 25,315 21,089
General,
administrative
and other
expenses (c) 2,811 1,886 -- -- 2,811 1,886
Interest expense 31,858 36,255 -- (254) 31,858 36,001
Loss on early
extinguishments
of debt 126 870 -- -- 126 870
Gain (loss) on
sale or writedown
of assets 23,015 (6) (22,745) (7) 270 (13)
Pro rata income
(loss) of
unconsolidated
entities (c) 13,252 15,550 -- -- 13,252 15,550
Income (loss) of
the Operating
Partnership from
continuing
operations 52,013 21,055 (22,851) (40) 29,162 21,015
Discontinued
Operations:
Gain (loss)
on sale of
asset -- -- 22,745 7 22,745 7
Income from
discontinued
operations -- -- 106 33 106 33
Income before
minority
interests 52,013 21,055 -- -- 52,013 21,055
Income allocated
to minority
interests 10,214 4,184 -- -- 10,214 4,184
Net income before
preferred
dividends 41,799 16,871 -- -- 41,799 16,871
Dividends earned
by preferred
stockholders (a) 2,067 5,195 -- -- 2,067 5,195
Net income
to common
stockholders 39,732 11,676 -- -- 39,732 11,676
Average # of
shares outstanding
- basic 53,396 36,260 53,396 36,260
Average shares
outstanding,-
basic, assuming
full conversion
of OP Units (d) 67,042 49,252 67,042 49,252
Average shares
outstanding -
diluted for
FFO (d) 75,307 62,852 75,307 62,852
Per share income
- diluted before
discontinued
operations -- -- 0.39 0.32
Net income per
share - basic 0.74 0.32 0.74 0.32
Net income per
share - diluted 0.69 0.32 0.69 0.32
Dividend declared
per share 0.57 0.55 0.57 0.55
Funds from
operations "FFO"
(b) (d) - basic 61,696 45,934 61,696 45,934
Funds from
operations "FFO"
(a) (b) (d) -
diluted 63,763 53,572 63,763 53,572
FFO per share -
basic (b) (d) 0.92 0.93 0.92 0.93
FFO per share -
diluted
(a) (b) (d) 0.85 0.85 0.85 0.85
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results of Results before Impact Results after
Operations: SFAS 144 (f) of SFAS 144 (f) SFAS 144 (f)
For the Nine For the Nine For the Nine
Months Ended Months Ended Months Ended
September 30 September 30 September 30
Unaudited Unaudited
2003 2002 2003 2002 2003 2002
Minimum
Rents (e) 216,538 160,244 (2,119) (3,743) 214,419 156,501
Percentage
Rents 5,041 4,250 -- (22) 5,041 4,228
Tenant
Recoveries 116,579 85,438 (336) (586) 116,243 84,852
Other Income 12,233 8,164 (58) (37) 12,175 8,127
Total
Revenues (e) 350,391 258,096 (2,513) (4,388) 347,878 253,708
Shopping center
and operating
expenses (c) 123,060 88,982 (845) (2,167) 122,215 86,815
Depreciation and
amortization 73,853 55,229 (336) (809) 73,517 54,420
General,
administrative
and other
expenses (c) 8,832 5,430 -- -- 8,832 5,430
Interest expense 98,847 86,415 -- (254) 98,847 86,161
Loss on early
extinguishments
of debt 126 870 -- -- 126 870
Gain < loss > on
sale or
writedown
of assets 34,567 10,209 (22,584) (13,923) 11,983 (3,714)
Pro rata income
of unconsolidated
entities (c) 42,859 20,955 -- -- 42,859 20,955
Income (loss) of
the Operating
Partnership from
continuing
operations 123,099 52,334 (23,916) (15,081) 99,183 37,253
Discontinued
Operations:
Gain on sale
of asset -- -- 22,584 13,923 22,584 13,923
Income from
discontinued
operations -- -- 1,332 1,158 1,332 1,158
Income before
minority
interest 123,099 52,334 -- -- 123,099 52,334
Income allocated
to minority
interests 22,913 9,364 -- -- 22,913 9,364
Net income
before
preferred
dividends 100,186 42,970 -- -- 100,186 42,970
Dividends
earned by
preferred
stockholders (a) 12,458 15,222 -- -- 12,458 15,222
Net income
< loss > to
common
stockholders 87,728 27,748 -- -- 87,728 27,748
Average # of
shares outstanding
- basic 52,305 35,739 52,305 35,739
Average shares
outstanding,-
basic, assuming
full conversion
of OP Units (d) 65,995 47,525 65,995 47,525
Average shares
outstanding -
diluted for
FFO (d) 75,124 61,125 75,124 61,125
Per share income
- diluted before
discontinued
operations -- -- 1.32 0.46
Net income per
share - basic 1.68 0.78 1.68 0.78
Net income per
share - diluted 1.64 0.77 1.64 0.77
Dividend declared
per share 1.71 1.65 1.71 1.65
Funds from
operations "FFO"
(b) (d) - basic 178,351 112,779 178,351 112,779
Funds from
operations "FFO"
(a) (b) (d) -
diluted 190,809 135,252 190,809 135,252
FFO per share -
basic (b) (d) 2.70 2.37 2.70 2.37
FFO per share -
diluted
(a) (b) (d) 2.54 2.21 2.54 2.21
(a) The Company issued $161,400 of convertible debentures in June and
July, 1997. The debentures were convertible into common shares at a
conversion price of $31.125 per share. The debentures were paid off
in full in December 2002. On February 25, 1998, the Company sold
$100,000 of convertible preferred stock and on June 16, 1998 another
$150,000 of convertible preferred stock was issued. The convertible
preferred shares can be converted on a 1 for 1 basis for common
stock. These preferred shares are assumed converted for purposes of
net income per share for 2003 and are not assumed converted for
purposes of net income per share for 2002 as it would be antidilutive
to that calculation. On September 9, 2003, 5.487 million shares of
Series B convertible preferred stock were converted into common
shares. The weighted average preferred shares outstanding are
assumed converted for purposes of FFO per diluted share as they are
dilutive to that calculation for all periods presented.
(b) The Company uses FFO in addition to net income to report its
operating and financial results and considers FFO a supplemental
measure 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
is 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 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 peripheral land
and the impact of SFAS 141 have been included in FFO. The inclusion
of gains on sales of peripheral land increased FFO for the three and
nine months ended September 30, 2003 by $663 and $1,252,
respectively, or by $.01 per share and $.02 per share, respectively.
Additionally, the impact of SFAS No. 141 increased FFO for the three
and nine months ended September 30, 2003 by $1.2 million and
$3.5 million, respectively, or by $.015 per share and $.047 per
share, respectively. During the three and nine months ended
September 30, 2002, there were $2,349 or $0.038 per share of
outparcel sales. There was no impact of SFAS No. 141. The Company
adopted SFAS No 141 (see Note (e) below) effective October 1, 2002.
(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 and for Macerich Management
Company through June 2003. Effective July 1, 2003, the Company has
consolidated Macerich Management Company. Certain reclassifications
have been made in the 2002 financial highlights to conform to the
2003 financial highlights presentation.
(d) The Company has operating partnership units ("OP units"). Each OP
unit can be converted into a share of Company stock. Conversion of
the OP units has been assumed for purposes of calculating the FFO per
share and the weighted average number of shares outstanding.
(e) Effective October 1, 2002, the Company adopted SFAS No. 141, Business
Combinations, which requires companies that have acquired assets
subsequent to June 2001 to reflect the discounted net present value
of market rents in excess of rents in place at the date of
acquisition as a deferred credit to be amortized into income over the
average remaining life of the acquired leases. The impact on EPS for
the three and nine months periods ending September 30, 2003 was
approximately $.02 per share and $.05 per share, respectively. In
accordance with the NAREIT definition of FFO, the impact of this
accounting treatment is included in FFO.
(f) 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 sold Boulder Plaza on March 19, 2002
and in accordance with SFAS 144 the results of Boulder Plaza for the
periods from January 1, 2002 to March 19, 2002 have been reclassified
into "discontinued operations" on the consolidated statements of
operations. Additionally, the Company sold its 67% interest in
Paradise Village Gateway on January 2, 2003 (acquired in July 2002),
and the loss on sale of $0.2 million has been reclassified to
discontinued operations. The Company sold Bristol Center on
August 4, 2003, and the results for the period January 1, 2002 to
September 30, 2002 and for the period January 1, 2003 to August 4,
2003 have been reclassified to discontinued operations. The sale of
Bristol Center resulted in a gain on sale of asset of $22.3 million.
September 30 Dec 31
Summarized Balance Sheet Information 2003 2002
(UNAUDITED)
Cash and cash equivalents $77,652 $53,559
Investment in real estate, net (i) $3,222,753 $2,842,177
Investments in unconsolidated entities (j) $564,654 $617,205
Total Assets $4,030,833 $3,662,080
Mortgage and notes payable $2,621,670 $2,291,908
September 30 September 30
Additional financial data as of: 2003 2002
Occupancy of centers (g) 92.90% 93.50%
Comparable quarter change
in same center sales (g) (h) 1.90% 1.80%
Additional financial data for the
nine months ended:
Acquisitions of property and equipment
- including joint ventures prorata $152,370 $923,219
Redevelopment and expansions of centers
- including joint ventures prorata $121,377 $26,967
Renovations of centers - including
joint ventures at prorata $12,016 $4,241
Tenant allowances - including joint
ventures at prorata $5,675 $9,901
Deferred leasing costs - including
joint ventures at prorata $14,074 $12,192
(g) excludes redevelopment properties - Crossroads Mall - Boulder, and
Parklane Mall.
(h) includes mall and freestanding stores.
(i) includes construction in process on wholly owned assets of $259,953
at September 30, 2003 and $111,517 at December 31, 2002.
(j) the Company's prorata share of construction in process on
unconsolidated entities of $19,161 at September 30, 2003 and $16,147
at December 31, 2002.
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
PRORATA SHARE OF For the Three Months For the Nine Months
JOINT VENTURES Ended September 30, Ended September 30,
(Unaudited) Unaudited Unaudited
(All amounts in thousands) (All amounts in thousands)
2003 2002 2003 2002
Revenues:
Minimum rents $38,979 $38,122 $117,654 $91,494
Percentage rents 1,250 1,027 3,538 2,787
Tenant recoveries 17,048 16,047 50,005 37,503
Management fee (c) -- 2,573 5,250 6,888
Other 1,077 806 3,381 2,136
Total revenues 58,354 58,575 179,828 140,808
Expenses:
Shopping center
expenses 19,425 17,761 57,625 44,468
Interest expense 14,395 14,398 42,311 35,786
Management company
expense (c) -- 2,317 3,014 6,165
Depreciation and
amortization 11,240 11,076 34,180 25,541
Total operating
expenses 45,060 45,552 137,130 111,960
Gain (loss) on sale
or writedown of
assets (41) 2,527 160 (7,893)
Net income 13,253 15,550 42,858 20,955
RECONCILIATION OF For the Three Months For the Nine Months
NET INCOME TO FFO Ended September 30, Ended September 30,
(All amounts in thousands) (All amounts in thousands)
(UNAUDITED) (UNAUDITED)
2003 2002 2003 2002
Net income -
available to common
stockholders $39,732 $11,676 $87,728 $27,748
Adjustments to
reconcile net income
to FFO - basic
Minority interest 10,214 4,184 22,913 9,364
(Gain) loss on sale
of wholly owned
assets (22,310) 6 (33,708) (10,209)
(Gain) loss on sale
or write-down of
assets from
unconsolidated
entities (pro rata) -- (178) 232 10,242
Depreciation and
amortization on
wholly owned centers 25,364 21,479 73,853 55,229
Depreciation and
amortization on
joint ventures and
from the management
companies (pro rata) 11,240 11,076 34,180 25,541
Less: depreciation
on personal property
and amortization
of loan costs and
interest rate caps (2,544) (2,309) (6,847) (5,136)
Total FFO - basic 61,696 45,934 178,351 112,779
Additional adjustment
to arrive at FFO
- diluted
Interest expense
and amortization
of loan costs on
the debentures -- 2,443 -- 7,251
Preferred stock
dividends earned 2,067 5,195 12,458 15,222
Effect of employee/
director stock
incentive plans
FFO - diluted 63,763 53,572 190,809 135,252
Weighted average
shares outstanding
- diluted (d) 75,307 62,852 75,124 61,125
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THE MACERICH COMPANY For the Three Months For the Nine Months
RECONCILIATION OF Ended September 30, Ended September 30,
NET INCOME TO (All amounts in thousands) (All amounts in thousands)
EBITDA (UNAUDITED) (UNAUDITED)
2003 2002 2003 2002
Net income -
available to common
stockholders 39,732 11,676 87,728 27,748
Interest expense 31,858 36,255 98,847 86,415
Interest expense -
unconsolidated
entities (pro rata) 14,395 14,398 42,311 35,786
Depreciation and
amortization -
wholly-owned centers 25,364 21,479 73,853 55,229
Depreciation and
amortization -
unconsolidated
entities (pro rata) 11,240 11,076 34,180 25,541
Minority interest 10,214 4,184 22,913 9,364
Loss on early
extinguishments
of debt 126 870 126 870
Loss (gain) on sale
of assets -
wholly-owned
centers (23,015) 6 (34,567) (10,209)
Loss (gain) on
sale of assets -
unconsolidated
entities (pro rata) 41 (2,527) (160) 7,893
Preferred dividends 2,067 5,195 12,458 15,222
EBITDA (k) $112,022 $102,612 $337,689 $253,859
THE MACERICH COMPANY
RECONCILIATION OF
EBITDA TO SAME
CENTERS - NET
OPERATING INCOME
("NOI")
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
(All amounts in thousands) (All amounts in thousands)
(UNAUDITED) (UNAUDITED)
2003 2002 2003 2002
EBITDA (k) $112,022 $102,612 $337,689 $253,859
Add: REIT general
and administrative
expenses 2,811 1,886 8,832 5,430
Management Company
expenses -
wholly-owned 1,816 1,489 7,227 3,974
Management Company
expenses -
unconsolidated entity -- (738) (1,549) (472)
EBITDA of non-
comparable centers (40,740) (30,008) (127,144) (43,762)
SAME CENTERS - Net
operating income
("NOI") (l) $75,909 $75,241 $225,055 $219,029
(k) 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.
(l) 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