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8-K
MACERICH CO filed this Form 8-K on 10/31/2018
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The Macerich Company

2018 Guidance Range (Unaudited)

Management is narrowing the range of its previously issued estimate of diluted EPS and FFO per share guidance for 2018. A reconciliation of estimated EPS to FFO per share-diluted follows:

 

     Year 2018
Guidance
 

Earnings Expectations:

  

Earnings per share—diluted

     $0.64 - $0.69  

Plus: real estate depreciation and amortization

     3.08 - 3.08  

Less: impact of financing expense in connection with the adoption of ASC 606 (Chandler Freehold)

     0.03 - 0.03
  

 

 

 

FFO per share, diluted

     $3.69 - $3.74  

Plus: costs related to shareholder activism

     $0.13 - $0.13  
  

 

 

 

FFO per share—diluted, excluding costs related to shareholder activism

     $3.82 - $3.87  
  

 

 

 
  

Underlying Assumptions to 2018 Guidance

  

Cash Same Center Net Operating Income (“NOI”) Growth(a)

  

Including lease termination income

     1.20% - 1.70%  

Excluding lease termination income

     2.20% - 2.70%  

 

     Year 2018
($ millions)(b)
     Year 2018
FFO / Share
Impact

Lease termination income

     $14      $0.10

Capitalized interest

     $25      $0.17

Bad debt expense

     ($6)      ($0.03)

Dilutive impact on 2018 of assets sold in 2017

     ($1.5)      ($0.01)

Dilutive impact on 2018 of assets sold in 2018

     ($7.5)      ($0.05)

Straight-line rent

     $17      $0.11

Amortization of acquired above and below-market leases (net-revenue)

     $15      $0.10

Interest Expense(c)

     $280              

 

(a)

Excludes non-cash items of straight-line and above/below market adjustments to minimum rents.

(b)

All joint venture amounts included at pro rata.

(c)

This does not include financing expense in conjunction with the adoption of ASC 606 (Chandler Freehold) totaling $10 million. This represents the Company’s joint venture partner’s share of net income from Chandler Freehold, a consolidated joint venture, which was previously recognized as Co-venture Expense in 2017 and prior years.

 

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