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8-K
MACERICH CO filed this Form 8-K on 02/05/2018
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EX-99.1

Exhibit 99.1

PRESS RELEASE

 

For:    THE MACERICH COMPANY  

MACERICH ANNOUNCES QUARTERLY RESULTS

SANTA MONICA, CA, February 5, 2018– The Macerich Company (NYSE Symbol: MAC) today announced results of operations for the quarter ended December 31, 2017, which included net income attributable to the Company of $32.8 million or $.23 per share-diluted for the quarter ended December 31, 2017 compared to net income attributable to the Company for the quarter ended December 31, 2016 of $37.1 million or $.26 per share-diluted. For the fourth quarter, 2017, funds from operations (“FFO”) diluted was $155.6 million or $1.03 per share-diluted compared to $180.6 million or $1.17 per share-diluted for the quarter ended December 31, 2016. Net income and FFO for the quarter ended December 31, 2017 included a $14.5 million re-valuation reduction of a deferred tax asset as a result of the lower federal corporate income tax rates adopted by Congress in December, 2017. A description and reconciliation of EPS per share-diluted to FFO per share-diluted is included in the financial tables accompanying this press release.

Results and Capital Highlights

 

    Mall tenant annual sales per square foot for the portfolio increased by 4.8% to $660 for the year ended December 31, 2017 compared to $630 for the year ended December 31, 2016.

 

    The re-leasing spreads for the year ended December 31, 2017 were up 15.2%.

 

    Mall portfolio occupancy was 95.0% at December 31, 2017 compared to 95.4% at December 31, 2016 and 94.3% at September 30, 2017.

 

    Average rent per square foot increased to $56.97, up 3.8% from $54.87 at December 31, 2016.

“During the quarter our portfolio continued to perform well. We achieved solid re-leasing spreads and tenant sales growth plus we saw good occupancy gains on a sequential quarter over quarter basis” said the Company’s chairman and chief executive officer, Arthur Coppola. “We remain excited about the leasing opportunities we see as the digitally native, vertically integrated brands expand into brick and mortar locations in our dominant top quality regional malls”.

Financing Activity:

The Company has arranged for a $450 million, 12-year fixed rate loan on the recently expanded and renovated Broadway Plaza. The loan is expected to close in the first quarter of 2018.

The Company and its joint venture partner have closed on a $250 million five year loan on Fashion District Philadelphia. The loan has a 5 year term and an initial interest rate of 3.56%.

In December, 2017 the Company closed on a refinancing of Santa Monica Place with a new five year floating rate loan of $300 million with an initial rate of 3.13%. The former loan of $215 million was paid off at closing of the new loan.

 

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