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8-K
MACERICH CO filed this Form 8-K on 02/05/2018
Entire Document
 
EX-99.2

Exhibit 99.2

 

 

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Supplemental Financial Information

For the three and twelve months ended December 31, 2017

 

 

 

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The Macerich Company

Supplemental Financial and Operating Information

Table of Contents

All information included in this supplemental financial package is unaudited, unless otherwise indicated.

 

     Page No.  

Corporate Overview

     1-4  

Overview

     1-2  

Capital Information and Market Capitalization

     3  

Changes in Total Common and Equivalent Shares/Units

     4  

Financial Data

     5-11  

Consolidated Statements of Operations (Unaudited)

     5  

Consolidated Balance Sheet (Unaudited)

     6  

Non-GAAP Pro Rata Financial Information (Unaudited)

     7-8  

2018 Guidance Range

     9  

Supplemental FFO Information

     10  

Capital Expenditures

     11  

Operational Data

     12-26  

Sales Per Square Foot

     12  

Sales Per Square Foot by Property Ranking

     13-16  

Occupancy

     17  

Average Base Rent Per Square Foot

     18  

Cost of Occupancy

     19  

Percentage of Net Operating Income by State

     20  

Property Listing

     21-24  

Joint Venture List

     25-26  

Debt Tables

     27-29  

Debt Summary

     27  

Outstanding Debt by Maturity Date

     28-29  

Development Pipeline

     30  

Top Ten Tenants

     31  

Corporate Information

     32  

This Supplemental Financial Information should be read in connection with the Company’s fourth quarter 2017 earnings announcement (included as Exhibit 99.1 of the Company’s Current Report on 8-K, event date February 5, 2018) as certain disclosures, definitions and reconciliations in such announcement have not been included in this Supplemental Financial Information.


The Macerich Company

Supplemental Financial and Operating Information

Overview

The Macerich Company (the “Company”) is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company is the sole general partner of, and owns a majority of the ownership interests in, The Macerich Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”).

As of December 31, 2017, the Operating Partnership owned or had an ownership interest in 48 regional shopping centers and seven community/power shopping centers aggregating approximately 53 million square feet of gross leasable area (“GLA”). These 55 centers (which include any related office space) are referred to hereinafter as the “Centers”, unless the context requires otherwise.

The Company is a self-administered and self-managed real estate investment trust (“REIT”) and conducts all of its operations through the Operating Partnership and the Company’s management companies (collectively, the “Management Companies”).

All references to the Company in this Exhibit include the Company, those entities owned or controlled by the Company and predecessors of the Company, unless the context indicates otherwise.

The Company presents certain measures in this Exhibit on a pro rata basis which represents (i) the measure on a consolidated basis, minus the Company’s partners’ share of the measure from its consolidated joint ventures (calculated based upon the partners’ percentage ownership interest); plus (ii) the Company’s share of the measure from its unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest). Management believes that these measures provide useful information to investors regarding its financial condition and/or results of operations because they include the Company’s share of the applicable amount from unconsolidated joint ventures and exclude the Company’s partners’ share from consolidated joint ventures, in each case presented on the same basis. The Company has several significant joint ventures and the Company believes that presenting various measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its economic interest in these joint ventures. Management also uses these measures to evaluate regional property level performance and to make decisions about resource allocations. The Company’s economic interest (as distinct from its legal ownership interest) in certain of its joint ventures could fluctuate from time to time and may not wholly align with its legal ownership interests because of provisions in certain joint venture agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses, payments of preferred returns and control over major decisions. Additionally, the Company does not control its unconsolidated joint ventures and the presentation of certain items, such as assets, liabilities, revenues and expenses, from these unconsolidated joint ventures does not represent the Company’s legal claim to such items.

This document contains information constituting forward-looking statements and includes expectations regarding the Company’s future operational results as well as development, redevelopment and expansion activities. 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, terms and payments, interest rate fluctuations, availability, terms and cost of financing, operating expenses, and competition; adverse changes in the real estate markets, including the liquidity of real estate investments; and risks of real estate development, redevelopment, and expansion, including availability, terms and cost of financing, construction delays, environmental and safety requirements, budget overruns, sunk costs and lease-up; the inability to obtain,

 

1


or delays in obtaining, all necessary zoning, land-use, building, and occupancy and other required governmental permits and authorizations; and governmental actions and initiatives (including legislative and regulatory changes) as well as terrorist activities or other acts of violence which could adversely affect all of the above factors. Furthermore, occupancy rates and rents at a newly completed property may not be sufficient to make the property profitable. 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, 2016, 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 document or to reflect the occurrence of unanticipated events unless required by law to do so.

 

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The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Capital Information and Market Capitalization

 

     Period Ended  
     12/31/2017     12/31/2016     12/31/2015  
     dollars in thousands, except per share data  

Closing common stock price per share

   $ 65.68     $ 70.84     $ 80.69  

52 week high

   $ 73.34     $ 94.51     $ 95.93  

52 week low

   $ 52.12     $ 66.00     $ 71.98  

Shares outstanding at end of period

      

Class A non-participating convertible preferred units

     90,619       90,619       138,759  

Common shares and partnership units

     151,253,557       154,567,331       165,260,655  
  

 

 

   

 

 

   

 

 

 

Total common and equivalent shares/units outstanding

     151,344,176       154,657,950       165,399,414  
  

 

 

   

 

 

   

 

 

 

Portfolio capitalization data

      

Total portfolio debt, including joint ventures at pro rata

   $ 7,692,719     $ 7,548,481     $ 7,010,306  

Equity market capitalization

    
9,940,285
 
    10,955,969       13,346,079  
  

 

 

   

 

 

   

 

 

 

Total market capitalization

   $ 17,633,004     $ 18,504,450     $ 20,356,385  
  

 

 

   

 

 

   

 

 

 

Debt as a percentage of total market capitalization

     43.6     40.8     34.4

Portfolio Capitalization at December 31, 2017

 

 

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The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Changes in Total Common and Equivalent Shares/Units

 

     Partnership
Units
    Company
Common
Shares
    Class A
Non-Participating
Convertible
Preferred Units
     Total
Common
and
Equivalent
Shares/
Units
 

Balance as of January 1, 2017

     10,582,295       143,985,036       90,619        154,657,950  

Conversion of partnership units to cash

     (219     —         —          (219

Conversion of partnership units to common shares

     (48,925     48,925       —          —    

Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans

     134,742       76,395       —          211,137  

Repurchase of common shares

     —         (2,197,879     —          (2,197,879
  

 

 

   

 

 

   

 

 

    

 

 

 

Balance as of March 31, 2017

     10,667,893       141,912,477       90,619        152,670,989  
  

 

 

   

 

 

   

 

 

    

 

 

 

Conversion of partnership units to cash

     (1,119     —         —          (1,119

Conversion of partnership units to common shares

     (303,092     303,092       —          —    

Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans

       28,335          28,335  

Repurchase of common shares

     —         (687,494     —          (687,494
  

 

 

   

 

 

   

 

 

    

 

 

 

Balance as of June 30, 2017

     10,363,682       141,556,410       90,619        152,010,711  
  

 

 

   

 

 

   

 

 

    

 

 

 

Conversion of partnership units to cash

     (14,260     —         —          (14,260

Conversion of partnership units to common shares

     (100,451     100,451       —          —    

Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans

     —         3,345       —          3,345  

Repurchase of common shares

     —         (742,017     —          (742,017
  

 

 

   

 

 

   

 

 

    

 

 

 

Balance as of September 30, 2017

     10,248,971       140,918,189       90,619        151,257,779  
  

 

 

   

 

 

   

 

 

    

 

 

 

Conversion of partnership units to cash

     (156     —         —          (156

Conversion of partnership units to common shares

     (47,345     47,345       —          —    

Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans

     58,102       28,451       —          86,553  
  

 

 

   

 

 

   

 

 

    

 

 

 

Balance as of December 31, 2017

     10,259,572       140,993,985       90,619        151,344,176  
  

 

 

   

 

 

   

 

 

    

 

 

 

 

4


The Macerich Company

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands)

 

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

Revenues:

    

Minimum rents

   $ 150,591     $ 594,030  

Percentage rents

     10,340       17,124  

Tenant recoveries

     69,038       283,295  

Other income

     15,335       55,819  

Management Companies’ revenues

     11,439       43,394  
  

 

 

   

 

 

 

Total revenues

     256,743       993,662  
  

 

 

   

 

 

 

Expenses:

    

Shopping center and operating expenses

     72,663       295,190  

Management Companies’ operating expenses

     23,342       100,121  

REIT general and administrative expenses

     7,032       28,240  

Depreciation and amortization

     85,968       335,431  

Interest expense

     44,889       171,776  
  

 

 

   

 

 

 

Total expenses

     233,894       930,758  

Equity in income of unconsolidated joint ventures

     28,774       85,546  

Co-venture expense

     (2,479     (13,629

Income tax expense

     (15,772     (15,594

Gain on sale or write down of assets, net

     5,212       42,446  
  

 

 

   

 

 

 

Net income

     38,584       161,673  

Less net income attributable to noncontrolling interests

     5,833       15,543  
  

 

 

   

 

 

 

Net income attributable to the Company

   $ 32,751     $ 146,130  
  

 

 

   

 

 

 

 

5


The Macerich Company

Consolidated Balance Sheet (Unaudited)

As of December 31, 2017

(Dollars in thousands)

 

ASSETS:

  

Property, net (a)

   $ 7,109,230  

Cash and cash equivalents

     91,038  

Restricted cash

     52,067  

Tenant and other receivables, net

     112,653  

Deferred charges and other assets, net

     449,190  

Due from affiliates

     82,162  

Investments in unconsolidated joint ventures

     1,709,522  
  

 

 

 

Total assets

   $ 9,605,862  
  

 

 

 

LIABILITIES AND EQUITY:

  

Mortgage notes payable

   $ 4,238,080  

Bank and other notes payable

     932,184  

Accounts payable and accrued expenses

     58,412  

Other accrued liabilities

     325,701  

Distributions in excess of investments in unconsolidated joint ventures

     83,486  
  

 

 

 

Total liabilities

     5,637,863  
  

 

 

 

Commitments and contingencies

  

Equity:

  

Stockholders’ equity:

  

Common stock

     1,410  

Additional paid-in capital

     4,510,489  

Accumulated deficit

     (830,279

Accumulated other comprehensive loss

     (42
  

 

 

 

Total stockholders’ equity

     3,681,578  

Noncontrolling interests

     286,421  
  

 

 

 

Total equity

     3,967,999  
  

 

 

 

Total liabilities and equity

   $ 9,605,862  
  

 

 

 

 

(a) Includes construction in progress of $366,996.

 

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The Macerich Company

Non-GAAP Pro Rata Financial Information (Unaudited)

(Dollars in thousands)

 

    For the Three Months
Ended December 31, 2017
    For the Twelve Months
Ended December 31, 2017
 
    Noncontrolling
Interests of
Consolidated
Joint Ventures (a)
    Company’s Share of
Unconsolidated
Joint Ventures
    Noncontrolling
Interests of
Consolidated
Joint Ventures (a)
    Company’s Share of
Unconsolidated
Joint Ventures
 

Revenues:

       

Minimum rents

  $ (8,544   $ 84,130     $ (34,780   $ 331,052  

Percentage rents

    (332     4,959       (593     9,924  

Tenant recoveries

    (4,288     30,716       (17,623     122,700  

Other income

    (707     8,570       (3,148     29,402  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total revenues

    (13,871     128,375       (56,144     493,078  
 

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

       

Shopping center and operating expenses

    (4,178     37,409       (15,727     145,378  

Depreciation and amortization

    (3,801     44,566       (15,126     177,274  

Interest expense

    (2,991     25,252       (9,881     101,487  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    (10,970     107,227       (40,734     424,139  

Equity in income of unconsolidated joint ventures

    (1,824     (26,950     (1,824     (83,722

Co-venture expense

    2,479       —         13,629       —    

Gain on sale or write down of assets, net

    (1,209     5,802       (1,209     14,783  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income

    (3,455     —         (4,814     —    

Less net income attributable to noncontrolling interests

    (3,455     —         (4,814     —    
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to the Company

  $ —       $ —       $ —       $ —    
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Represents the Company’s partners’ share of consolidated joint ventures.

 

7


The Macerich Company

Non-GAAP Pro Rata Financial Information (Unaudited)

(Dollars in thousands)

 

     As of December 31, 2017  
     Noncontrolling
Interests of
Consolidated
Joint Ventures (a)
    Company’s Share
of Unconsolidated
Joint Ventures
 

ASSETS:

    

Property, net (b)

   $ (310,620   $ 4,348,228  

Cash and cash equivalents

     (14,041     111,861  

Restricted cash

     —         7,958  

Tenant and other receivables, net

     (17,424     58,211  

Deferred charges and other assets, net

     (35,552     152,494  

Due from affiliates

     181       (2,461

Investments in unconsolidated joint ventures, at equity

     —         (1,709,522
  

 

 

   

 

 

 

Total assets

   $ (377,456   $ 2,966,769  
  

 

 

   

 

 

 

LIABILITIES AND EQUITY:

    

Mortgage notes payable

   $ (317,224   $ 2,782,044  

Bank and other notes payable

     (2,365     60,000  

Accounts payable and accrued expenses

     (2,586     49,931  

Other accrued liabilities

     (36,627     158,280  

Distributions in excess of investments in unconsolidated joint ventures

     —         (83,486
  

 

 

   

 

 

 

Total liabilities

     (358,802     2,966,769  
  

 

 

   

 

 

 

Equity:

    

Stockholders’ equity

     —         —    

Noncontrolling interests

     (18,654     —    
  

 

 

   

 

 

 

Total equity

     (18,654     —    
  

 

 

   

 

 

 

Total liabilities and equity

   $ (377,456   $ 2,966,769  
  

 

 

   

 

 

 

 

(a) Represents the Company’s partners’ share of consolidated joint ventures.
(b) This includes $11,134 of construction in progress relating to the Company’s partners’ share from consolidated joint ventures and $190,326 of construction in progress relating to the Company’s share from unconsolidated joint ventures.

 

8


The Macerich Company

2018 Guidance Range (Unaudited)

Management is providing 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

     $0.77 - $0.87  

Plus: real estate depreciation and amortization

     $3.15 - $3.15  
  

 

 

 

FFO per share—diluted

     $3.92 - $4.02  
  

 

 

 

Underlying Assumptions to 2018 Guidance

  

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

     2.0% - 2.5%  

Assumed 2018 dispositions

     None  

 

     Year 2018

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

Lease termination income

     $22      $0.15

Capitalized interest

     $25      $0.17

Bad debt expense

     ($5)      ($0.03)

Dilutive impact on 2018 of assets sold in 2017

     ($1.5)      ($0.01)

Straight-line rent

     $20      $0.13

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

     $12      $0.08

Interest Expense

     $283     

 

(a) Excludes non-cash items of straight-line and above/below market adjustments to minimum rents. Includes lease termination income.
(b) All joint venture amounts included at pro rata.

 

9


The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Supplemental FFO Information(a)

 

     As of December 31,  
         2017              2016      
     dollars in millions  

Straight-line rent receivable

   $ 97.2      $ 84.6  

 

     For the
Three Months Ended
December 31,
     For the
Twelve Months Ended
December 31,
 
         2017              2016              2017              2016      
    

dollars in millions

 

Lease termination income

   $ 7.5      $ 4.0      $ 22.5      $ 21.2  

Straight-line rental income

   $ 3.3      $ 4.3      $ 16.7      $ 13.6  

Gain on sales of undepreciated assets

   $ 6.8      $ 0.8      $ 8.2      $ 3.7  

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

   $ 1.2      $ 7.0      $ 12.8      $ 24.7  

Amortization of debt premiums

   $ 0.6      $ 1.0      $ 3.3      $ 4.0  

Interest capitalized

   $ 5.7      $ 4.0      $ 19.8      $ 16.5  

 

(a) All joint venture amounts included at pro rata.

 

10


The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Capital Expenditures(a)

 

     Year Ended
12/31/17
     Year Ended
12/31/16
     Year Ended
12/31/15
 
     dollars in millions  

Consolidated Centers

        

Acquisitions of property and equipment

   $ 38.2      $ 56.8      $ 79.8  

Development, redevelopment, expansions and renovations of Centers

     152.1        183.2        218.7  

Tenant allowances

     11.5        19.2        30.4  

Deferred leasing charges

     26.5        24.8        26.8  
  

 

 

    

 

 

    

 

 

 

Total

   $ 228.3      $ 284.0      $ 355.7  
  

 

 

    

 

 

    

 

 

 

Unconsolidated Joint Venture Centers

        

Acquisitions of property and equipment

   $ 16.0      $ 349.8      $ 160.0  

Development, redevelopment, expansions and renovations of Centers

     121.8        101.1        132.9  

Tenant allowances

     6.8        11.3        6.3  

Deferred leasing charges

     6.2        7.1        3.3  
  

 

 

    

 

 

    

 

 

 

Total

   $ 150.8      $ 469.3      $ 302.5  
  

 

 

    

 

 

    

 

 

 

 

(a) All joint venture amounts at pro rata.

 

11


The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Regional Shopping Center Portfolio

Sales Per Square Foot(a)

 

     Consolidated
Centers
     Unconsolidated
Joint Venture
Centers
     Total
Centers
 

12/31/2017

   $ 584      $ 765      $ 660  

12/31/2016(b)

   $ 573      $ 710      $ 630  

12/31/2015(c)

   $ 579      $ 763      $ 635  

12/31/2014(d)

   $ 556      $ 724      $ 587  

12/31/2013(e)

   $ 488      $ 717      $ 562  

 

(a) Sales are based on reports by retailers leasing mall and freestanding stores for the trailing 12 months for tenants which have occupied such stores for a minimum of 12 months. Sales per square foot are based on tenants 10,000 square feet and under for regional shopping centers. Sales per square foot exclude Centers under development and redevelopment.
(b) Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from sales per square foot as of December 31, 2016.
(c) On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Flagstaff Mall is excluded from sales per square foot as of December 31, 2015.
(d) On June 30, 2015, the Company conveyed Great Northern Mall to the mortgage lender by a deed-in-lieu of foreclosure. Great Northern Mall is excluded from Sales per square foot as of December 31, 2014.
(e) Rotterdam Square, sold January 15, 2014, is excluded at December 31, 2013.

 

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12


The Macerich Company

Sales Per Square Foot by Property Ranking (Unaudited)

 

     Sales per square foot      Occupancy      Cost of Occupancy
for the trailing
12 months
Ended 12/31/2017
(c)
     % of Portfolio
2018 Forecast
Pro Rata
Real Estate NOI
(d)
 

Properties

   12/31/2017
(a)
     12/31/2016
(a)
     12/31/2017
(b)
     12/31/2016
(b)
       

Group 1: Top 10

                 

Corte Madera, Village at

   $ 1,532      $ 1,456        97.4      90.1      

Queens Center

   $ 1,461      $ 1,364        99.5      98.5      

Broadway Plaza (e)

   $ 1,326        n/a        97.6      n/a        

Washington Square

   $ 1,119      $ 972        95.2      99.5      

Tysons Corner Center

   $ 980      $ 876        96.6      98.4      

Los Cerritos Center

   $ 947      $ 896        96.3      94.9      

Biltmore Fashion Park

   $ 913      $ 829        95.6      98.4      

North Bridge, The Shops at

   $ 875      $ 884        98.8      99.3      

Santa Monica Place

   $ 808      $ 808        89.2      86.5      

Tucson La Encantada

   $ 785      $ 747        94.2      94.6      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Top 10:

   $ 1,081      $ 979        96.3      96.6      13.3      30.5
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Group 2: Top 11-20

                 

Fashion Outlets of Chicago

   $ 782      $ 772        95.9      97.7      

Arrowhead Towne Center

   $ 770      $ 751        95.5      94.7      

Scottsdale Fashion Square

   $ 765      $ 727        91.3      96.4      

Fresno Fashion Fair

   $ 735      $ 710        94.3      95.6      

Kings Plaza Shopping Center

   $ 686      $ 697        96.6      95.2      

Vintage Faire Mall

   $ 685      $ 704        98.1      95.4      

Kierland Commons

   $ 678      $ 670        96.2      97.6      

Chandler Fashion Center

   $ 674      $ 657        94.7      95.2      

Twenty Ninth Street

   $ 647      $ 638        97.3      98.1      

Country Club Plaza

     n/a        n/a        n/a        n/a        
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Top 11-20:

   $ 714      $ 695        94.8      95.5      13.0      25.7
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

13


The Macerich Company

Sales Per Square Foot by Property Ranking (Unaudited)

 

     Sales per square foot      Occupancy      Cost of Occupancy
for the trailing
12 months

Ended 12/31/2017
(c)
     % of Portfolio
2018 Forecast
Pro Rata

Real Estate NOI
(d)
 

Properties

   12/31/2017
(a)
     12/31/2016
(a)
     12/31/2017
(b)
     12/31/2016
(b)
       

Group 3: Top 21-30

                 

Stonewood Center

   $ 638      $ 576        93.1      94.0      

Freehold Raceway Mall

   $ 622      $ 613        97.0      97.8      

Green Acres Mall

   $ 615      $ 625        97.9      93.5      

Danbury Fair Mall

   $ 614      $ 648        92.1      95.9      

Oaks, The

   $ 571      $ 514        93.0      95.6      

FlatIron Crossing

   $ 558      $ 550        96.7      95.1      

SanTan Village Regional Center

   $ 548      $ 522        97.6      97.5      

Inland Center

   $ 542      $ 489        95.3      98.1      

Victor Valley, Mall of

   $ 534      $ 539        97.9      97.8      

Deptford Mall

   $ 526      $ 558        98.0      95.3      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Top 21-30:

   $ 581      $ 570        96.0      95.8      14.3      25.0
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Group 4: Top 31-40

                 

La Cumbre Plaza

   $ 486      $ 469        88.0      85.2      

Lakewood Center

   $ 479      $ 482        97.4      98.3      

West Acres

   $ 477      $ 479        96.5      98.9      

Valley River Center

   $ 451      $ 467        96.9      99.0      

South Plains Mall

   $ 433      $ 425        91.5      90.1      

Pacific View

   $ 427      $ 448        95.1      94.5      

Superstition Springs Center

   $ 376      $ 377        89.5      92.9      

Eastland Mall

   $ 360      $ 367        96.7      96.3      

Fashion Outlets of Niagara Falls USA

   $ 351      $ 339        90.2      92.9      

Desert Sky Mall

   $ 321      $ 336        98.5      97.5      
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Top 31-40:

   $ 415      $ 417     

 

 

 

94.5

 

     95.3      13.6      13.6
  

 

 

    

 

 

       

 

 

    

 

 

    

 

 

 

Total Top 40:

   $ 684      $ 652        95.4      95.8      13.5      94.8
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

14


The Macerich Company

Sales Per Square Foot by Property Ranking (Unaudited)

 

 

     Sales per square foot     

 

 

Occupancy

   

 

Cost of Occupancy
for the trailing
12 months

Ended 12/31/2017
(c)

    % of Portfolio
2018 Forecast
Pro Rata
Real Estate  NOI
(d)
 

Properties

   12/31/2017
(a)
     12/31/2016
(a)
     12/31/2017
(b)
    12/31/2016
(b)
     

Group 5: 41-45

              

NorthPark Mall

              

SouthPark Mall

              

Towne Mall

              

Valley Mall

              

Wilton Mall

              
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

Total 41-45:

   $ 281      $ 293        89.6     90.7     11.3  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

Centers under Redevelopment

              

Fashion District Philadelphia (e) (f)

              

Paradise Valley Mall (e)

              

Westside Pavilion (e)

              
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

48 REGIONAL SHOPPING CENTERS (g)

   $ 660      $ 630        95.0     95.4     13.4     98.3
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Community / Power Centers and various retail assets

                 1.7
            

 

 

   

 

 

 

TOTAL ALL PROPERTIES

               13.3     100.0
            

 

 

   

 

 

 

 

15


The Macerich Company

Notes to Sales Per Square Foot by Property Ranking (unaudited)

Footnotes

 

(a) Sales are based on reports by retailers leasing mall and freestanding stores for the trailing 12 months for tenants which have occupied such stores for a minimum of 12 months. Sales per square foot are based on tenants 10,000 square feet and under. Properties are ranked by Sales per square foot as of December 31, 2017.
(b) Occupancy is the percentage of mall and freestanding GLA leased as of the last day of the reporting period. Occupancy excludes Centers under development and redevelopment.
(c) Cost of Occupancy represents “Tenant Occupancy Costs” divided by “Tenant Sales”. Tenant Occupancy Costs in this calculation are the amounts paid to the Company, including minimum rents, percentage rents and recoverable expenditures, which consist primarily of property operating expenses, real estate taxes and repair and maintenance expenditures.
(d) The percentage of Portfolio 2018 Forecast Pro Rata Real Estate NOI is based on the guidance range provided on February 5, see page 9. Real Estate NOI excludes straight-line and above/below market adjustments to minimum rents. Real Estate NOI also does not reflect REIT expenses and Management Company revenues and expenses. See the Company’s forward-looking statements disclosure on pages 1 and 2 for factors that may affect the information provided in this column.
(e) These assets are (or were previously) under redevelopment including demolition and reconfiguration of the Centers and tenant spaces, accordingly the Sales per square foot and Occupancy during the periods of redevelopment are not included.
(f) On July 30, 2014, the Company formed a joint venture to redevelop and rebrand The Gallery in Philadelphia, Pennsylvania.
(g) Properties sold prior to December 31, 2017 are excluded in both current and prior periods above.
 

 

16


The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Occupancy(a)

 

Regional Shopping Centers:
Period Ended

   Consolidated
Centers
    Unconsolidated
Joint Venture
Centers
    Total
Centers
 

12/31/2017

     94.4     95.6     95.0

12/31/2016(b)

     94.8     96.2     95.4

12/31/2015(c)

     95.3     97.8     96.1

 

(a) Occupancy is the percentage of mall and freestanding GLA leased as of the last day of the reporting period. Occupancy excludes Centers under development and redevelopment.
(b) Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from occupancy as of December 31, 2016.
(c) On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Flagstaff Mall is excluded from Occupancy as of December 31, 2015.

 

17


The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Average Base Rent Per Square Foot(a)

 

     Average Base Rent
PSF(b)
     Average Base Rent
PSF on Leases
Executed during the
trailing twelve
months ended(c)
     Average Base Rent
PSF on Leases
Expiring(d)
 

Consolidated Centers

        

12/31/2017

   $ 55.08      $ 57.36      $ 49.61  

12/31/2016(e)

   $ 53.51      $ 53.48      $ 44.77  

12/31/2015(f)

   $ 52.64      $ 53.99      $ 49.02  

Unconsolidated Joint Venture Centers

        

12/31/2017

   $ 60.99      $ 63.50      $ 55.50  

12/31/2016

   $ 57.90      $ 64.78      $ 57.29  

12/31/2015

   $ 60.74      $ 80.18      $ 60.85  

All Regional Shopping Centers

        

12/31/2017

   $ 56.97      $ 59.20      $ 51.39  

12/31/2016(e)

   $ 54.87      $ 56.57      $ 48.08  

12/31/2015(f)

   $ 54.32      $ 57.41      $ 50.29  

 

(a) Average base rent per square foot is based on spaces 10,000 square feet and under. All joint venture amounts are included at pro rata. Centers under development and redevelopment are excluded.
(b) Average base rent per square foot gives effect to the terms of each lease in effect, as of the applicable date, including any concessions, abatements and other adjustments or allowances that have been granted to the tenants.
(c) The average base rent per square foot on leases executed during the period represents the actual rent to be paid during the first twelve months.
(d) The average base rent per square foot on leases expiring during the period represents the final year minimum rent on a cash basis.
(e) Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from the table above as of December 31, 2016.
(f) On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Flagstaff Mall is excluded from the table above as of December 31, 2015.

 

18


The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Cost of Occupancy

 

                                                                                                        
     For Years Ended December 31,  
       2017         2016(a)         2015(b)    

Consolidated Centers

      

Minimum rents

     9.5     9.4     9.0

Percentage rents

     0.3     0.4     0.4

Expense recoveries(c)

     4.2     4.3     4.5
  

 

 

   

 

 

   

 

 

 

Total

     14.0     14.1     13.9
  

 

 

   

 

 

   

 

 

 
     For Years Ended December 31,  
       2017         2016         2015    

Unconsolidated Joint Venture Centers

      

Minimum rents

     8.6     8.6     8.1

Percentage rents

     0.3     0.3     0.4

Expense recoveries(c)

     3.8     3.9     4.0
  

 

 

   

 

 

   

 

 

 

Total

     12.7     12.8     12.5
  

 

 

   

 

 

   

 

 

 
     For Years Ended December 31,  
       2017         2016(a)         2015(b)    

All Centers

      

Minimum rents

     9.0     9.0     8.7

Percentage rents

     0.3     0.3     0.4

Expense recoveries(c)

     4.0     4.1     4.3
  

 

 

   

 

 

   

 

 

 

Total

     13.3     13.4     13.4
  

 

 

   

 

 

   

 

 

 

 

(a) Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from cost of occupancy as of December 31, 2016.
(b) On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Flagstaff Mall is excluded from cost of occupancy as of December 31, 2015.
(c) Represents real estate tax and common area maintenance charges.

 

19


The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Percentage of Net Operating Income by State

 

State

   % of Portfolio
2018 Forecast
Real Estate

Pro Rata NOI(a)
 

California

     27.1

New York

     22.4

Arizona

     16.0

Colorado, Illinois & Missouri

     9.5

Pennsylvania & Virginia

     8.8

New Jersey & Connecticut

     7.5

Oregon

     4.3

Other(b)

     4.4
  

 

 

 

Total

     100.0
  

 

 

 

 

(a) The percentage of Portfolio 2018 Forecast Pro Rata Real Estate NOI is based on guidance provided on February 5, 2018, see page 9. Real Estate NOI excludes straight-line and above/below market adjustments to minimum rents. Real Estate NOI also does not reflect REIT expenses and Management Company revenues and expenses. See the Company’s forward-looking statements disclosure on pages 1 and 2 for factors that may affect the information provided in this column.
(b) “Other” includes Indiana, Iowa, Kentucky, North Dakota and Texas.

 

20


The Macerich Company

Property Listing

December 31, 2017

The following table sets forth certain information regarding the Centers and other locations that are wholly owned or partly owned by the Company.

 

Count

  

Company’s

Ownership(a)

  

Name of
Center/Location

   Year of
Original
Construction/
Acquisition
     Year of Most
Recent
Expansion/
Renovation
     Total
GLA(b)
 
   CONSOLIDATED CENTERS:        
1    50.1%   

Chandler Fashion Center
Chandler, Arizona

     2001/2002               1,318,000  
2    100%   

Danbury Fair Mall
Danbury, Connecticut

     1986/2005        2016        1,269,000  
3    100%   

Desert Sky Mall
Phoenix, Arizona

     1981/2002        2007        894,000  
4    100%   

Eastland Mall(c)
Evansville, Indiana

     1978/1998        1996        1,026,000  
5    100%   

Fashion Outlets of Chicago
Rosemont, Illinois

     2013/—               538,000  
6    100%   

Fashion Outlets of Niagara Falls USA
Niagara Falls, New York

     1982/2011        2014        688,000  
7    50.1%   

Freehold Raceway Mall
Freehold, New Jersey

     1990/2005        2007        1,671,000  
8    100%   

Fresno Fashion Fair
Fresno, California

     1970/1996        2006        964,000  
9    100%   

Green Acres Mall(c)
Valley Stream, New York

     1956/2013        2016        2,069,000  
10    100%   

Inland Center
San Bernardino, California

     1966/2004        2016        869,000  
11    100%   

Kings Plaza Shopping Center(c)
Brooklyn, New York

     1971/2012        2002        1,138,000  
12    100%   

La Cumbre Plaza(c)
Santa Barbara, California

     1967/2004        1989        491,000  
13    100%   

NorthPark Mall
Davenport, Iowa

     1973/1998        2001        1,051,000  
14    100%   

Oaks, The
Thousand Oaks, California

     1978/2002        2009        1,193,000  
15    100%   

Pacific View
Ventura, California

     1965/1996        2001        1,061,000  
16    100%   

Queens Center(c)
Queens, New York

     1973/1995        2004        963,000  
17    100%   

Santa Monica Place
Santa Monica, California

     1980/1999        2015        526,000  
18    84.9%   

SanTan Village Regional Center
Gilbert, Arizona

     2007/—        2009        1,086,000  
19    100%   

SouthPark Mall
Moline, Illinois

     1974/1998        2015        863,000  
20    100%   

Stonewood Center(c)
Downey, California

     1953/1997        1991        933,000  
21    100%   

Superstition Springs Center
Mesa, Arizona

     1990/2002        2002        1,041,000  
22    100%   

Towne Mall
Elizabethtown, Kentucky

     1985/2005        1989        350,000  

 

21


The Macerich Company

Property Listing

December 31, 2017

 

Count

  

Company’s

Ownership(a)

  

Name of
Center/Location

   Year of
Original
Construction/
Acquisition
     Year of Most
Recent
Expansion/
Renovation
   Total
GLA(b)
 

23

   100%   

Tucson La Encantada
Tucson, Arizona

     2002/2002      2005      244,000  

24

   100%   

Valley Mall
Harrisonburg, Virginia

     1978/1998      1992      505,000  

25

   100%   

Valley River Center
Eugene, Oregon

     1969/2006      2007      868,000  

26

   100%   

Victor Valley, Mall of
Victorville, California

     1986/2004      2012      577,000  

27

   100%   

Vintage Faire Mall
Modesto, California

     1977/1996      2008      1,138,000  

28

   100%   

Wilton Mall
Saratoga Springs, New York

     1990/2005      1998      734,000  
              

 

 

 
      Total Consolidated Centers            26,068,000  
              

 

 

 
UNCONSOLIDATED JOINT VENTURE CENTERS:        

29

   60%   

Arrowhead Towne Center
Glendale, Arizona

     1993/2002      2015      1,197,000  

30

   50%   

Biltmore Fashion Park
Phoenix, Arizona

     1963/2003      2006      517,000  

31

   50%   

Broadway Plaza(c)
Walnut Creek, California

     1951/1985      2016      888,000  

32

   50.1%   

Corte Madera, The Village at
Corte Madera, California

     1985/1998      2005      461,000  

33

   50%   

Country Club Plaza
Kansas City, Missouri

     1922/2016      2015      1,001,000  

34

   51%   

Deptford Mall
Deptford, New Jersey

     1975/2006      1990      1,040,000  

35

   51%   

FlatIron Crossing
Broomfield, Colorado

     2000/2002      2009      1,433,000  

36

   50%   

Kierland Commons
Scottsdale, Arizona

     1999/2005      2003      435,000  

37

   60%   

Lakewood Center
Lakewood, California

     1953/1975      2008      2,070,000  

38

   60%   

Los Cerritos Center(c)
Cerritos, California

     1971/1999      2016      1,305,000  

39

   50%   

North Bridge, The Shops at(c)
Chicago, Illinois

     1998/2008           674,000  

40

   50%   

Scottsdale Fashion Square
Scottsdale, Arizona

     1961/2002      2015      1,837,000  

41

   60%   

South Plains Mall
Lubbock, Texas

     1972/1998      2017      1,128,000  

42

   51%   

Twenty Ninth Street(c)
Boulder, Colorado

     1963/1979      2007      847,000  

43

   50%   

Tysons Corner Center
Tysons Corner, Virginia

     1968/2005      2014      1,971,000  

44

   60%   

Washington Square
Portland, Oregon

     1974/1999      2005      1,442,000  

45

   19%   

West Acres
Fargo, North Dakota

     1972/1986      2001      971,000  
              

 

 

 
      Total Unconsolidated Joint Venture Centers            19,217,000  
              

 

 

 

 

22


The Macerich Company

Property Listing

December 31, 2017

 

Count

  

Company’s

Ownership(a)

  

Name of
Center/Location

   Year of
Original
Construction/
Acquisition
     Year of Most
Recent
Expansion/
Renovation
     Total
GLA(b)
 
REGIONAL SHOPPING CENTERS UNDER REDEVELOPMENT:     

46

   50%   

Fashion District Philadelphia(d)
Philadelphia, Pennsylvania

     1977/2014        ongoing        850,000  

47

   100%   

Paradise Valley Mall(e)
Phoenix, Arizona

     1979/2002        2009        1,204,000  

48

   100%   

Westside Pavilion(e)
Los Angeles, California

     1985/1998        2007        755,000  
              

 

 

 
      Total Regional Shopping Centers            48,094,000  
              

 

 

 

COMMUNITY / POWER CENTERS:

 

     

1

   50%   

Atlas Park, The Shops at(d)
Queens, New York

     2006/2011        2013        372,000  

2

   50%   

Boulevard Shops(d)
Chandler, Arizona

     2001/2002        2004        185,000  

3

   various   

Estrella Falls, The Market at(d)
Goodyear, Arizona

     2009/—        2016        360,000  

4

   89.4%   

Promenade at Casa Grande(e)
Casa Grande, Arizona

     2007/—        2009        761,000  

5

   100%   

Southridge Center(e)
Des Moines, Iowa

     1975/1998        2013        826,000  

6

   100%   

Superstition Springs Power Center(e)
Mesa, Arizona

     1990/2002               206,000  

7

   100%   

The Marketplace at Flagstaff(c)(e)
Flagstaff, Arizona

     2007/—               268,000  
              

 

 

 
      Total Community / Power Centers            2,978,000  
              

 

 

 

OTHER ASSETS:

        
   100%   

Various(e)(f)

           447,000  
   50%   

Fashion District Philadelphia-Office(d)
Philadelphia, Pennsylvania

           214,000  
   50%   

Scottsdale Fashion Square-Office(d)
Scottsdale, Arizona

           122,000  
   50%   

Tysons Corner Center-Office(d)
Tysons Corner, Virginia

           174,000  
   50%   

Hyatt Regency Tysons Corner Center(d)
Tysons Corner, Virginia

           290,000  
   50%   

VITA Tysons Corner Center(d)
Tysons Corner, Virginia

           510,000  
   50%   

Tysons Tower(d)
Tysons Corner, Virginia

           529,000  
              

 

 

 
      Total Other Assets            2,286,000  
              

 

 

 
      Grand Total at December 31, 2017            53,358,000  
              

 

 

 

 

(a) The Company’s ownership interest in this table reflects its legal ownership interest. See footnotes (a) and (b) on pages 25 and 26 regarding the legal versus economic ownership of joint venture entities.
(b) Includes GLA attributable to anchors (whether owned or non-owned) and mall and freestanding stores as of December 31, 2017.

 

23


The Macerich Company

Property Listing

December 31, 2017

 

(c) Portions of the land on which the Center is situated are subject to one or more long-term ground leases. With respect to 44 Centers, the underlying land controlled by the Company is owned in fee entirely by the Company, or, in the case of jointly-owned Centers, by the joint venture property partnership or limited liability company.
(d) Included in Unconsolidated Joint Venture Centers.
(e) Included in Consolidated Centers.
(f) The Company owns an office building and seven stores located at shopping centers not owned by the Company. Of the seven stores, one is leased to Forever 21, one is leased to Kohl’s, two are vacant, and three have been leased for non-Anchor uses. With respect to the office building and four of the seven stores, the underlying land is owned in fee entirely by the Company. With respect to the remaining three stores, the underlying land is owned by third parties and leased to the Company pursuant to long-term building or ground leases.

 

24


The Macerich Company

Joint Venture List as of December 31, 2017

The following table sets forth certain information regarding the Centers and other operating properties that are not wholly-owned by the Company. This list of properties includes unconsolidated joint ventures, consolidated joint ventures, and co-venture arrangements. The percentages shown are the effective legal ownership and economic ownership interests of the Company as of December 31, 2017.

 

Properties

   Legal
Ownership(a)
    Economic
Ownership(b)
   

Joint Venture

   Total GLA(c)  

Arrowhead Towne Center

     60     60   New River Associates LLC      1,197,000  

Atlas Park, The Shops at

     50     50   WMAP, L.L.C.      372,000  

Biltmore Fashion Park

     50     50   Biltmore Shopping Center Partners LLC      517,000  

Boulevard Shops

     50     50   Propcor II Associates, LLC      185,000  

Broadway Plaza

     50     50   Macerich Northwestern Associates      888,000  

Chandler Fashion Center(d)

     50.1     50.1   Freehold Chandler Holdings LP      1,318,000  

Corte Madera, The Village at

     50.1     50.1   Corte Madera Village, LLC      461,000  

Country Club Plaza

     50     50   Country Club Plaza KC Partners LLC      1,001,000  

Deptford Mall

     51     51   Macerich HHF Centers LLC      1,040,000  

Estrella Falls

     86.6     86.6   Westcor Goodyear RSC LLC      79,000  

Estrella Falls, The Market at(e)

     40.1     40.1   The Market at Estrella Falls LLC      281,000  

Fashion District Philadelphia

     50     50   Various Entities      850,000  

Fashion District Philadelphia-Office

     50     50   Various Entities      214,000  

FlatIron Crossing

     51     51   Macerich HHF Centers LLC      1,433,000  

Freehold Raceway Mall(d)

     50.1     50.1   Freehold Chandler Holdings LP      1,671,000  

Hyatt Regency Tysons Corner Center

     50     50   Tysons Corner Hotel I LLC      290,000  

Kierland Commons

     50     50   Kierland Commons Investment LLC      435,000  

Lakewood Center

     60     60   Pacific Premier Retail LLC      2,070,000  

Los Cerritos Center

     60     60   Pacific Premier Retail LLC      1,305,000  

North Bridge, The Shops at

     50     50   North Bridge Chicago LLC      674,000  

Promenade at Casa Grande(f)

     89.4     89.4   WP Casa Grande Retail LLC      761,000  

SanTan Village Regional Center

     84.9     84.9   Westcor SanTan Village LLC      1,086,000  

Scottsdale Fashion Square

     50     50   Scottsdale Fashion Square Partnership      1,837,000  

Scottsdale Fashion Square-Office

     50     50   Scottsdale Fashion Square Partnership      122,000  

Macerich Seritage Portfolio(g)

     50     50   MS Portfolio LLC      1,550,000  

South Plains Mall

     60     60   Pacific Premier Retail LLC      1,128,000  

Twenty Ninth Street

     51     51   Macerich HHF Centers LLC      847,000  

Tysons Corner Center

     50     50   Tysons Corner LLC      1,971,000  

Tysons Corner Center-Office

     50     50   Tysons Corner Property LLC      174,000  

Tysons Tower

     50     50   Tysons Corner Property LLC      529,000  

VITA Tysons Corner Center

     50     50   Tysons Corner Property LLC      510,000  

Washington Square

     60     60   Pacific Premier Retail LLC      1,442,000  

West Acres

     19     19   West Acres Development, LLP      971,000  

 

(a) This column reflects the Company’s legal ownership in the listed properties as of December 31, 2017. Legal ownership may, at times, not equal the Company’s economic interest in the listed properties because of various provisions in certain joint venture agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses and payments of preferred returns. As a result, the Company’s actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with its legal ownership interests. Substantially all of the Company’s joint venture agreements contain rights of first refusal, buy-sell provisions, exit rights, default dilution remedies and/or other break up provisions or remedies which are customary in real estate joint venture agreements and which may, positively or negatively, affect the ultimate realization of cash flow and/or capital or liquidation proceeds.

 

25


The Macerich Company

Joint Venture List

 

(b) Economic ownership represents the allocation of cash flow to the Company as of December 31, 2017, except as noted below. In cases where the Company receives a current cash distribution greater than its legal ownership percentage due to a capital account greater than its legal ownership percentage, only the legal ownership percentage is shown in this column. The Company’s economic ownership of these properties may fluctuate based on a number of factors, including mortgage refinancings, partnership capital contributions and distributions, and proceeds and gains or losses from asset sales, and the matters set forth in the preceding paragraph.
(c) Includes GLA attributable to anchors (whether owned or non-owned) and mall and freestanding stores as of December 31, 2017.
(d) The joint venture entity was formed in September 2009. Upon liquidation of the partnership, distributions are made in the following order: to the third-party partner until it receives a 13% internal rate of return on and of its aggregate unreturned capital contributions; to the Company until it receives a 13% internal rate of return on and of its aggregate unreturned capital contributions; and, thereafter, pro rata 35% to the third-party partner and 65% to the Company.
(e) Columns 1 and 2 reflect the Company’s indirect ownership interest in the property owner. The Company and a third-party partner are each members of a joint venture (the “MW Joint Venture”) which, in turn, is a member in the joint venture that owns the property. Cash flow distributions for the MW Joint Venture are made in accordance with the members’ relative capital accounts until the members have received distributions equal to their capital accounts, and thereafter in accordance with the members’ relative legal ownership percentages.
(f) Columns 1 and 2 reflect the Company’s total direct and indirect ownership interest in the property owner. The Company and a third-party partner are each members of a joint venture (the “MW Joint Venture”) which, in turn, is a member in the joint venture with the Company that owns the property. Cash flow distributions for the MW Joint Venture are made in accordance with the members’ relative capital accounts until the members have received distributions equal to their capital accounts, and thereafter in accordance with the members’ relative legal ownership percentages.
(g) On April 30, 2015 Sears Holdings Corporation (“Sears”) and the Company announced that they had formed a joint venture, MS Portfolio LLC. Sears contributed nine stores (located at Arrowhead Towne Center, Chandler Fashion Center, Danbury Fair Mall, Deptford Mall, Freehold Raceway Mall, Los Cerritos Center, South Plains Mall, Vintage Faire Mall and Washington Square) to the joint venture and the Company contributed $150 million in cash to the joint venture. The lease arrangements between Sears and the joint venture provide the ability to create additional value through recapturing certain space leased to Sears in these properties and re-leasing that space to third-party tenants. For example, Primark has leased space in portions of the Sears stores at Danbury Fair Mall and Freehold Raceway Mall. On July 7, 2015, Sears assigned its ownership interest in MS Portfolio LLC to Seritage MS Holdings LLC.

 

26


The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Debt Summary (at Company’s pro rata share)(a)

 

     As of December 31, 2017  
     Fixed Rate     Floating Rate      Total  
     (Dollars in thousands)  

Mortgage notes payable

   $ 3,635,197     $ 602,883      $ 4,238,080  

Bank and other notes payable

     4,732       927,452        932,184  
  

 

 

   

 

 

    

 

 

 

Total debt per Consolidated Balance Sheet

     3,639,929       1,530,335        5,170,264  

Adjustments:

       

Less: Noncontrolling interests share of debt from consolidated joint ventures

     (319,589     —          (319,589
  

 

 

   

 

 

    

 

 

 

Adjusted Consolidated Debt

     3,320,340       1,530,335        4,850,675  

Add: Company’s share of debt from unconsolidated joint ventures

     2,736,523       105,521        2,842,044  
  

 

 

   

 

 

    

 

 

 

Total Company’s Pro Rata Share of Debt

   $ 6,056,863     $ 1,635,856      $ 7,692,719  
  

 

 

   

 

 

    

 

 

 

Weighted average interest rate

     3.85%       3.16%        3.71%  

Weighted average maturity (years)

          5.86  

 

(a) The Company’s pro rata share of debt represents (i) consolidated debt, minus the Company’s partners’ share of the amount from consolidated joint ventures (calculated based upon the partners’ percentage ownership interest); plus (ii) the Company’s share of debt from unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest). Management believes that this measure provides useful information to investors regarding the Company’s financial condition because it includes the Company’s share of debt from unconsolidated joint ventures and, for consolidated debt, excludes the Company’s partners’ share from consolidated joint ventures, in each case presented on the same basis. The Company has several significant joint ventures and presenting its pro rata share of debt in this manner can help investors better understand the Company’s financial condition after taking into account the Company’s economic interest in these joint ventures. The Company’s pro rata share of debt should not be considered as a substitute to the Company’s total debt determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

 

27


The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Outstanding Debt by Maturity Date

 

     As of December 31, 2017  

Center/Entity (dollars in thousands)

   Maturity Date      Effective
Interest
Rate (a)
    Fixed      Floating      Total Debt
Balance (a)
 

I. Consolidated Assets:

             

SanTan Village Regional Center (b)

     06/01/19        3.14   $ 105,860      $ —        $ 105,860  

Chandler Fashion Center (c)

     07/01/19        3.77     100,151        —          100,151  

Kings Plaza Shopping Center

     12/03/19        3.67     447,231        —          447,231  

Danbury Fair Mall

     10/01/20        5.53     209,197        —          209,197  

Fashion Outlets of Niagara Falls USA

     10/06/20        4.89     112,770        —          112,770  

Green Acres Mall

     02/03/21        3.61     291,366        —          291,366  

Prasada (d)

     05/30/21        5.25     2,366        —          2,366  

Tucson La Encantada

     03/01/22        4.23     66,970        —          66,970  

Pacific View

     04/01/22        4.08     124,397        —          124,397  

Oaks, The

     06/05/22        4.14     196,732        —          196,732  

Westside Pavilion

     10/01/22        4.49     141,020        —          141,020  

Towne Mall

     11/01/22        4.48     21,161        —          21,161  

Victor Valley, Mall of

     09/01/24        4.00     114,617        —          114,617  

Queens Center

     01/01/25        3.49     600,000        —          600,000  

Vintage Faire

     03/06/26        3.55     263,818        —          263,818  

Fresno Fashion Fair

     11/01/26        3.67     323,261        —          323,261  

Freehold Raceway Mall (c)

     11/01/29        3.94     199,423        —          199,423  
     

 

 

   

 

 

    

 

 

    

 

 

 

Total Fixed Rate Debt for Consolidated Assets

 

     3.89   $ 3,320,340      $ —        $ 3,320,340  
     

 

 

   

 

 

    

 

 

    

 

 

 

Fashion Outlets of Chicago

     03/31/20        3.02   $ —        $ 199,298      $ 199,298  

Green Acres Commons (e)

     03/29/21        4.07     —          107,219        107,219  

The Macerich Partnership, L.P. - Line of Credit (e)

     07/06/21        3.13     —          927,452        927,452  

Santa Monica Place (e)

     12/09/22        3.13     —          296,366        296,366  
     

 

 

   

 

 

    

 

 

    

 

 

 

Total Floating Rate Debt for Consolidated Assets

 

     3.18   $ —        $ 1,530,335      $ 1,530,335  
     

 

 

   

 

 

    

 

 

    

 

 

 

Total Debt for Consolidated Assets

        3.67   $ 3,320,340      $ 1,530,335      $ 4,850,675  
     

 

 

   

 

 

    

 

 

    

 

 

 

 

28


The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Outstanding Debt by Maturity Date

 

    As of December 31, 2017  

Center/Entity (dollars in thousands)

  Maturity Date     Effective
Interest
Rate (a)
    Fixed     Floating     Total Debt Balance
(a)
 

II. Unconsolidated Assets (At Company's pro rata share):

 

     

FlatIron Crossing (51%)

    01/05/21       2.81   $ 126,380     $ —       $ 126,380  

Washington Square Mall (60%)

    11/01/22       3.65     330,000       —         330,000  

Deptford Mall (51%)

    04/03/23       3.55     95,432       —         95,432  

Scottsdale Fashion Square (50%)

    04/03/23       3.02     235,649       —         235,649  

Tysons Corner Center (50%)

    01/01/24       4.13     390,561       —         390,561  

South Plains Mall (60%)

    11/06/25       4.22     120,000       —         120,000  

Twenty Ninth Street (51%)

    02/06/26       4.10     76,500       —         76,500  

Country Club Plaza (50%)

    04/01/26       3.88     159,608       —         159,608  

Lakewood Center (60%)

    06/01/26       4.15     222,166       —         222,166  

Kierland Commons (50%)

    04/01/27       3.98     110,979       —         110,979  

Los Cerritos Center (60%)

    11/01/27       4.00     315,000       —         315,000  

Arrowhead Towne Center (60%)

    02/01/28       4.05     240,000       —         240,000  

North Bridge, The Shops at (50%)

    06/01/28       3.71     186,935       —         186,935  

Corte Madera, The Village at (50.1%)

    09/01/28       3.53     112,360       —         112,360  

West Acres (19%)

    03/01/32       4.61     14,953       —         14,953  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total Fixed Rate Debt for Unconsolidated Assets

 

    3.81   $ 2,736,523     $ —       $ 2,736,523  
   

 

 

   

 

 

   

 

 

   

 

 

 

Boulevard Shops (50%)

    12/16/18       3.24   $ —       $ 9,348     $ 9,348  

Estrella Falls, The Market at (40.1%) (e)

    02/05/20       3.39     —         9,903       9,903  

Atlas Park (50%) (e)

    10/28/20       3.43     —         26,270       26,270  

Pacific Premier Retail LLC (60%)

    10/31/22       2.56     —         60,000       60,000  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total Floating Rate Debt for Unconsolidated Assets

 

    2.91   $ —       $ 105,521     $ 105,521  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total Debt for Unconsolidated Assets

      3.77   $ 2,736,523     $ 105,521     $ 2,842,044  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total Debt

      3.71   $ 6,056,863     $ 1,635,856     $ 7,692,719  
   

 

 

   

 

 

   

 

 

   

 

 

 

Percentage to Total

        78.74     21.26     100.00

 

(a) The debt balances include the unamortized debt premiums/discounts and loan finance costs. Debt premiums/discounts represent the excess of the fair value of debt over the principal value of debt assumed in various acquisitions. Debt premiums/discounts and loan finance costs are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The annual interest rate in the table represents the effective interest rate, including the debt premiums/discounts and loan finance costs.
(b) This property is owned by a consolidated joint venture. The above debt balance represents the Company's pro rata share of 84.9%.
(c) This property is owned by a consolidated joint venture. The above debt balance represents the Company's pro rata share of 50.1%.
(d) This property is owned by a consolidated joint venture. The above debt balance represents the Company's pro rata share of 50.0%.
(e) The maturity date assumes that all available extension options are fully exercised and that the Company and/or its affiliates do not opt to refinance the debt prior to these dates.

 

29


The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Development Pipeline Forecast

(Dollars in millions)

as of December 31, 2017

In-Process Developments and Redevelopments:

 

Property

  

Project Type

 

Total Cost(a)(b)
at 100%

 

Ownership
%

 

Total Cost(a)(b)
Pro Rata

 

Pro Rata

Capitalized Costs(b)

12/31/2017

 

Expected
Delivery(a)

  Stabilized
Yield(a)(b)(c)
 

Fashion District Philadelphia
Philadelphia, PA

   Redevelopment of The Gallery in downtown Philadelphia   $305 - $365(d)   50%   $153 - $183(d)   $127   2018     8%(d)  

Kings Plaza Shopping Center
Brooklyn, NY

   250,000 sf redevelopment of former Sears store, to be anchored by Burlington, Primark, JCPenney and Zara   $95 - $100   100%   $95 - $100   $  64   Q2 2018     4%(e)  
    

 

   

 

 

 

   

Total In-Process

     $400 - $465     $248 - $283   $191    
    

 

   

 

 

 

   
Shadow Pipeline of Developments and Redevelopments(f):  

Property

  

Project Type

 

Total Cost(a)(b)

at 100%

 

Ownership
%

 

Total Cost(a)(b)

Pro Rata

 

Pro Rata

Capitalized Costs(b)

12/31/2017

 

Expected
Delivery(a)

  Stabilized
Yield(a)(b)(c)
 

Fashion Outlets of San Francisco
San Francisco, CA

   A 500,000 sf outlet center on the historic site of Candlestick Park   $350   50.1%   $175   $5   2020 - 2021     7% - 9%  

Paradise Valley Mall
Phoenix, AZ

   Redevelopment (size TBD) including a theater   TBD   100%   TBD   $1   TBD     TBD    

Westside Pavilion
Los Angeles, CA

   Redevelopment of an existing 755,000 sf Center   TBD   100%   TBD   $5   TBD     TBD    
    

 

   

 

 

 

   

Total Shadow Pipeline

     $350     $175   $11    
    

 

   

 

 

 

   

 

(a) Much of this information is estimated and may change from time to time. See the Company’s forward-looking disclosure on pages 1 and 2 for factors that may affect the information provided in this table.
(b) This excludes GAAP allocations of non cash and indirect costs.
(c) Stabilized Yield is calculated based on stabilized income after development divided by project direct costs excluding GAAP allocations of non cash and indirect costs.
(d) This reflects incremental project costs and income subsequent to the Company’s $106.8 million investment in July 2014. Total Costs are net of $25 million of approved public financing grants that will be a reduction of costs.
(e) The Sears lease has been terminated. The 4% yield represents an incremental return over Sears former annual rent. The yield would increase to 8% without including any offsetting rent impact from Sears.
(f) This section includes potential developments or redevelopments that the Company is considering. The scope of these projects may change. There is no certainty that the Company will develop or redevelop any or all of these potential projects.

 

30


The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Top Ten Tenants

The following retailers (including their subsidiaries) represent the 10 largest rent payers in the Centers based upon total rents in place as of December 31, 2017.

 

Tenant

 

Primary DBAs

  Number of
Locations
in the
Portfolio
    % of Total
Rents
 

L Brands, Inc.

  Victoria’s Secret, Bath and Body Works, PINK     95       2.8

Forever 21, Inc.

  Forever 21, XXI Forever     33       2.3

Foot Locker, Inc.

  Champs Sports, Foot Locker, Kids Foot Locker, Lady Foot Locker, Foot Action, House of Hoops SIX:02 and others     94       2.1

H & M Hennes & Mauritz AB

  H & M     23       1.9

Gap, Inc., The

  Athleta, Banana Republic, Gap, Gap Kids, Old Navy and others     54       1.7

Signet Jewelers

  Jared Jewelry, Kay Jewelers, Piercing Pagoda, Shaw’s Jewelers, Weisfield Jewelers, Zales     104       1.6

Dick’s Sporting Goods, Inc.

  Dick’s Sporting Goods     15       1.5

American Eagle Outfitters, Inc.

  American Eagle Outfitters, aerie     37       1.2

Sears Holdings Corporation

  Sears     21       1.0

Golden Gate Capital

  Payless ShoeSource, Eddie Bauer, California Pizza Kitchen, PacSun     71       1.0

 

31


The Macerich Company

Corporate Information

Stock Exchange Listing

New York Stock Exchange

Symbol: MAC

The following table shows high and low sales prices per share of common stock during each quarter in 2017, 2016 and 2015 and dividends per share of common stock declared and paid by quarter:

 

     Market Quotation
per Share
     Dividends  

Quarter Ended:

   High      Low      Declared
and Paid
 

March 31, 2015

   $ 95.93      $ 81.61      $ 0.65  

June 30, 2015

   $ 86.31      $ 74.51      $ 0.65  

September 30, 2015

   $ 81.52      $ 71.98      $ 0.65  

December 31, 2015

   $ 86.29      $ 74.55      $ 2.68 (a) 

March 31, 2016

   $ 82.88      $ 72.99      $ 2.68 (b) 

June 30, 2016

   $ 85.39      $ 71.82      $ 0.68  

September 30, 2016

   $ 94.51      $ 78.76      $ 0.68  

December 31, 2016

   $ 80.54      $ 66.00      $ 0.71  

March 31, 2017

   $ 73.34      $ 62.14      $ 0.71  

June 30, 2017

   $ 67.18      $ 56.06      $ 0.71  

September 30, 2017

   $ 61.55      $ 52.12      $ 0.71  

December 31, 2017

   $ 67.53      $ 52.45      $ 0.74  

 

(a) Includes a special dividend of $2.00 per common share paid on December 8, 2015.
(b) Includes a special dividend of $2.00 per common share paid on January 6, 2016.

Dividend Reinvestment Plan

Stockholders may automatically reinvest their dividends in additional common stock of the Company through the Direct Investment Program, which also provides for purchase by voluntary cash contributions. For additional information, please contact Computershare Trust Company, N.A. at 800-567-0169.

 

Corporate Headquarters
The Macerich Company
401 Wilshire Boulevard, Suite 700
Santa Monica, California 90401
310-394-6000
www.macerich.com
   Transfer Agent
Computershare
P.O. Box 30170
College Station, TX 77842-3170
800-567-0169
www.computershare.com

Macerich Website

For an electronic version of our annual report, our SEC filings and documents relating to Corporate Governance, please visit www.macerich.com.

Investor Relations

 

Jean Wood
Vice President, Investor Relations
Phone: 424-229-3366
jean.wood@macerich.com
   John Perry
Senior Vice President, Investor Relations
Phone: 424-229-3345
john.perry@macerich.com

 

32