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SEC Filings



8-K
MACERICH CO filed this Form 8-K on 02/07/2019
Entire Document
 


Reconciliation of Net income attributable to the Company to Adjusted EBITDA:

 

     For the Three Months
Ended December 31,
    For the Twelve Months
Ended December 31,
 
     Unaudited     Unaudited  
     2018     2017     2018     2017  

Net income attributable to the Company

   $ 11,749     $ 32,751     $ 60,020     $ 146,130  

Interest expense—consolidated assets

     46,485       44,889       182,962       171,776  

Interest expense—unconsolidated joint ventures (pro rata)

     27,357       25,252       108,914       101,487  

Depreciation and amortization—consolidated assets

     86,828       85,968       327,436       335,431  

Depreciation and amortization—unconsolidated joint ventures (pro rata)

     44,922       44,566       174,952       177,274  

Noncontrolling interests in the OP

     863       2,378       4,407       10,729  

Less: Interest expense and depreciation and amortization allocable to noncontrolling interests in consolidated joint ventures

     (9,460     (6,792     (36,388     (25,007

Loss (gain) on sale or write down of assets, net—consolidated assets

     31,311       (5,212     31,825       (42,446

Loss (gain) on sale or write down of assets, net—unconsolidated joint ventures (pro rata)

     21       (5,802     (2,993     (14,783

Add: Noncontrolling interests share of gain on sale or write down of consolidated joint ventures, net

     —         1,209       580       1,209  

Income tax (benefit) expense

     (1,805     15,772       (3,604     15,594  

Distributions on preferred units

     100       98       398       387  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (d)

   $ 238,371     $ 235,077     $ 848,509     $ 877,781  
  

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of Adjusted EBITDA to Net Operating Income (“NOI”) and to NOI—Same Centers:

 

     For the Three Months
Ended December 31,
    For the Twelve Months
Ended December 31,
 
     Unaudited     Unaudited  
     2018     2017     2018     2017  

Adjusted EBITDA (d)

   $ 238,371     $ 235,077     $ 848,509     $ 877,781  

REIT general and administrative expenses

     5,746       7,032       24,160       28,240  

Costs related to shareholder activism

     —         —         19,369       —    

Management Companies’ revenues

     (11,390     (11,439     (43,480     (43,394

Management Companies’ operating expenses

     22,719       23,342       103,534       100,121  

Straight-line and above/below market adjustments

     (6,837     (4,545     (32,068     (29,531
  

 

 

   

 

 

   

 

 

   

 

 

 

NOI—All Centers

     248,609       249,467       920,024       933,217  

NOI of non-Same Centers

     (10,678     (17,033     (32,231     (55,326
  

 

 

   

 

 

   

 

 

   

 

 

 

NOI—Same Centers (e)

     237,931       232,434       887,793       877,891  

Lease termination income of Same Centers

     (3,074     (7,032     (12,955     (21,898
  

 

 

   

 

 

   

 

 

   

 

 

 

NOI—Same Centers, excluding lease termination income (e)

   $ 234,857     $ 225,402     $ 874,838     $ 855,993  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(d)

Adjusted EBITDA represents earnings before interest, income taxes, depreciation, amortization, noncontrolling interests in the OP, extraordinary items, loss (gain) on remeasurement, sale or write down of assets, loss (gain) on extinguishment of debt and preferred dividends and includes joint ventures at their pro rata share. Management considers Adjusted 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. The Company believes that Adjusted 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. The Company also cautions that Adjusted EBITDA, as presented, may not be comparable to similarly titled measurements reported by other companies.

 

(e)

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 Adjusted EBITDA and eliminating the impact of the management companies’ revenues and operating expenses, the Company’s general and administrative expenses and the straight-line and above/below market adjustments to minimum rents and subtracting out NOI from non-Same Centers.

 

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