SANTA MONICA, Calif.,
Results included:
-- During the quarter,
-- Mall tenant sales per square foot decreased 6.0% to
-- Mall occupancy at
-- FFO per share-diluted for the quarter ended
-- The Company has closed on loans or has commitments for over
Commenting on results,
Other factors impacting the quarter included
Financing Activity
Transactions completed in 2009 include the recent closing of a
During the quarter, the Company obtained a commitment for a
Upon completion of the above transactions, the Company will have
Earnings Guidance
Management is amending its prior FFO-per share guidance to reflect the
impact of issuing 90% of its dividend in stock. The new FFO guidance range
assumes the same total FFO but factors in new shares issued for the dividend.
The per-share FFO range is modified to
For the year ending December 31, 2009 Low End High End
------------------------------------- ------- --------
Estimated EPS $.50 $.80
Depreciation and amortization including
pro rata share of joint ventures 3.75 3.75
---- ----
Estimated diluted FFO per share $4.25 $4.55
----- -----
The Company's 2009 earnings guidance is based upon its internal forecasting and planning process and on many assumptions including management's current view of market and economic conditions, including those specifically impacting the regional mall business. Due to the uncertainty in the timing and economics of dispositions and acquisitions of assets and joint venture interests, the guidance ranges do not include any potential impact from such dispositions or acquisitions.
The
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
The Company will publish a supplemental financial information package which will be available at www.macerich.com in the Investing Section. It will also be furnished to the SEC as part of a Current Report on Form 8-K.
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, anchor or tenant bankruptcies, closures,
mergers or consolidations, lease rates and terms, interest rate fluctuations,
availability, terms 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; the liquidity of
real estate investments, governmental actions and initiatives (including
legislative and regulatory changes); 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
(See attached tables)
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results of Operations:
-------------- ------------- --------------
Results before Impact of Results after
SFAS 144 (a) SFAS 144 (a) SFAS 144 (a)
-------------- ------------- --------------
For the Three For the Three For the Three
Months Months Months
Ended March 31, Ended March 31, Ended March 31,
--------------- --------------- ---------------
Unaudited Unaudited
--------- ---------
2009 2008 (b) 2009 2008 2009 2008 (b)
---- -------- ---- ---- ---- --------
Minimum rents $127,473 $132,087 $0 ($936) $127,473 $131,151
Percentage rents 2,801 2,704 - - 2,801 2,704
Tenant recoveries 64,910 67,831 - (175) 64,910 67,656
Management
Companies'
revenues 8,541 9,691 - - 8,541 9,691
Other income 7,054 6,613 - (284) 7,054 6,329
----- ----- --- ---- ----- -----
Total revenues $210,779 $218,926 $0 ($1,395) $210,779 $217,531
-------------- -------- -------- -- ------- -------- --------
Shopping center and
operating expenses 70,780 70,953 (10) (329) 70,770 70,624
Management
Companies'
operating expenses 23,431 18,344 - - 23,431 18,344
Income tax (benefit)
provision (801) 301 - - (801) 301
Depreciation and
amortization 64,911 61,127 - (473) 64,911 60,654
REIT general and
administrative
expenses 5,258 4,403 - - 5,258 4,403
Interest expense
(b) 69,939 74,369 - - 69,939 74,369
Gain on early
extinguishment of
debt 22,474 - - - 22,474 -
Gain on sale or
write-down of
assets 756 99,937 17 (99,263) 773 674
Equity in income
of
unconsolidated
joint ventures
(c) 15,926 22,298 - - 15,926 22,298
Income from
continuing
operations 16,417 111,664 27 (99,856) 16,444 11,808
Discontinued
Operations:
(Loss) gain on
sale or
disposition of
assets - - (17) 99,263 (17) 99,263
(Loss) income
from
discontinued
operations - - (6) 590 (6) 590
Total (loss) income
from discontinued
operations - - (23) 99,853 (23) 99,853
Net income 16,417 111,664 4 (3) 16,421 111,661
Less net income
attributable to
non-controlling
interests 2,401 16,600 4 (3) 2,405 16,597
Net income
attributable to The
Macerich Company 14,016 95,064 - - 14,016 95,064
Less preferred
dividends (d) - 2,454 - - - 2,454
Net income available
to common
stockholders 14,016 92,610 - - 14,016 92,610
-------------------- ------ ------ - - ------ ------
Average number of
shares outstanding -
basic 76,897 72,342 76,897 72,342
--------------------- ------ ------ ------ ------
Average shares
outstanding,
assuming full
conversion of OP
Units (e) 88,551 88,290 88,551 88,290
------ ------ ------ ------
Average shares
outstanding -Funds
From Operations
("FFO") -diluted
(d) (e) 88,551 88,290 88,551 88,290
------------------- ------ ------ ------ ------
Per share income-
diluted before
discontinued
operations - - $0.18 $0.12
----------------- - - ----- -----
Net income per
share-basic (b) $0.18 $1.27 $0.18 $1.27
---------------- ----- ----- ----- -----
Net income per
share-diluted (b)
(d) (e) $0.18 $1.25 $0.18 $1.25
------------------ ----- ----- ----- -----
Dividend declared
per share $0.80 $0.80 $0.80 $0.80
----------------- ----- ----- ----- -----
FFO - basic (b) (e)
(f) $102,839 $90,011 $102,839 $90,011
-------------------- -------- ------- -------- -------
FFO - diluted (b) (d)
(e) (f) $102,839 $92,465 $102,839 $92,465
--------------------- -------- ------- -------- -------
FFO per share-
basic (b) (e) (f) $1.16 $1.06 $1.16 $1.06
------------------ ----- ----- ----- -----
FFO per share-
diluted (b) (d)
(e) (f) $1.16 $1.05 $1.16 $1.05
---------------- ----- ----- ----- -----
(a) SFAS No. 144, "Accounting for the Impairment or Disposal of
Long-Lived Assets" ("SFAS 144") addresses financial
accounting and reporting for the impairment or disposal of
long-lived assets. The following dispositions impacted
the results for the three months ended March 31, 2009 and 2008:
On April 25, 2005 , in connection with the acquisition of
Wilmorite Holdings, L.P. and its affiliates, the Company issued
as part of the consideration participating and non-participating
convertible preferred units in MACWH, LP. On January 1, 2008,
a subsidiary of the Company, at the election of the holders,
redeemed approximately 3.4 million participating convertible
preferred units in exchange for the distribution of the
interests in the entity which held that portion of the Wilmorite
portfolio that consisted of Eastview Commons, Eastview Mall,
Greece Ridge Center, Marketplace Mall and Pittsford Plaza
("Rochester Properties"). This exchange is referred to as the
"Rochester Redemption." As a result of the Rochester Redemption,
the Company recorded a gain of $99.3 million for the period
ended March 31, 2008 and classified the gain to discontinued
operations.
On December 19, 2008 , the Company sold the fee simple and/or
ground leasehold interests in three freestanding Mervyn's
buildings to the Pacific Premier Retail Trust joint venture for
$43.4 million . As a result of the sale, the Company has
classified the results of operations to discontinued operations
for all periods presented.
(b) On January 1, 2009 , the Company adopted FASB Staff Position APB
14-1, "Accounting for Convertible Debt Instruments That May Be
Settled Upon Conversion (Including Partial Cash Settlement)"
(FSP APB 14-1"). As a result, the Company retrospectively
applied FSP APB 14-1 to the three months ended March 31, 2008
resulting in an increase to interest expense of $3.5 million
and a decrease to net income available to common stockholders of
$3.0 million , or $0.04 per share. Additionally, the impact of
FSP APB 14-1 decreased FFO for the three months ended March 31,
2008 by $3.5 million , or $0.04 per share.
(c) This includes, using the equity method of accounting, the
Company's pro rata share of the equity in income or loss of its
unconsolidated joint ventures for all periods presented.
(d) On February 25, 1998 , the Company sold $100 million of
convertible preferred stock representing 3.627 million shares.
The convertible preferred shares were convertible on a 1 for 1
basis for common stock. The preferred shares were assumed
converted for purposes of net income per share - diluted for the
three months ended March 31, 2008 . The weighted average
preferred shares are assumed converted for purposes of FFO per
share - diluted for 2008.
On October 18, 2007 , 560,000 shares of convertible preferred
stock were converted to common shares. Additionally, on May 6,
2008 , May 8, 2008 and September 18, 2008 , 684,000, 1,338,860 and
1,044,271 shares of convertible preferred stock were converted
to common shares, respectively. As of March 31, 2009 , there was
no convertible preferred stock outstanding.
(e) The Macerich Partnership, LP (the "Operating Partnership" or the
"OP") has operating partnership units ("OP units"). Each OP unit
can be converted into a share of Company common stock.
Conversion of the OP units not owned by the Company has been
assumed for purposes of calculating the FFO per share and the
weighted average number of shares outstanding. The computation
of average shares for FFO - diluted includes the effect of share
and unit-based compensation plans and convertible senior notes
using the treasury stock method. It also assumes conversion of
MACWH, LP preferred and common units to the extent they are
dilutive to the calculation.
(f) The Company uses FFO in addition to net income to report its
operating and financial results and considers FFO and
FFO-diluted as supplemental measures 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 and FFO on a fully diluted basis are 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 on a fully diluted basis is one of the measures
investors find most useful in measuring the dilutive impact of
outstanding convertible securities. 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.
Gains or losses on sales of undepreciated assets and the impact
of SFAS 141 have been included in FFO. The inclusion of gains
on sales of undepreciated assets increased FFO for the three
months ended March 31, 2009 and 2008 by $1.3 million and
$1.6 million , respectively, or by $0.01 per share and $0.02 per
share, respectively. Additionally, SFAS 141 increased FFO for
the three months ended March 31, 2009 and 2008 by $4.1 million
and $4.6 million , respectively, or by $0.05 per share and $0.05
per share, respectively.
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Pro rata share of joint ventures:
--------------------
For the Three Months
Ended March 31,
--------------------
Unaudited
-----------
2009 2008
---- ----
Revenues:
Minimum rents $67,036 $66,310
Percentage rents 1,397 2,262
Tenant recoveries 32,055 32,596
Other 3,435 4,158
----- -----
Total revenues $103,923 $105,326
-------- --------
Expenses:
Shopping center and operating expenses 35,979 35,925
Interest expense 25,502 26,259
Depreciation and amortization 26,501 22,279
------ ------
Total operating expenses 87,982 84,463
------ ------
Gain on sale or write-down of assets 8 1,319
Equity in (loss) income of joint ventures (23) 116
--- ---
Net income $15,926 $22,298
------- -------
Reconciliation of Net Income to FFO (f):
--------------------
For the Three Months
Ended March 31,
-------------------
Unaudited
-----------
2009 2008
---- ----
Net income - available to common stockholders $14,016 $92,610
Adjustments to reconcile net income to FFO - basic
Non-controlling interests in OP 2,124 16,074
Gain on sale or write-down of consolidated assets (756) (99,937)
plus gain on undepreciated asset sales-
consolidated assets 1,354 333
plus non-controlling interests share of gain on
sale or write-down of consolidated joint ventures - 341
less write-down of consolidated assets (582) -
Gain on sale or write-down of assets from
unconsolidated entities (pro rata share) (8) (1,319)
plus gain on undepreciated asset sales-
unconsolidated entities (pro rata share) - 1,319
Depreciation and amortization on consolidated
assets 64,911 61,127
Less depreciation and amortization allocable to
non-controlling interests on consolidated
joint ventures (1,067) (573)
Depreciation and amortization on joint
ventures (pro rata) 26,501 22,279
Less: depreciation on personal property (3,654) (2,243)
------ ------
Total FFO - basic 102,839 90,011
Additional adjustment to arrive at FFO - diluted
Preferred stock dividends earned - 2,454
- -----
Total FFO - diluted $102,839 $92,465
-------- -------
Reconciliation of EPS to FFO per diluted share:
--------------------
For the Three Months
Ended March 31,
--------------------
Unaudited
-----------
2009 2008
---- ----
Earnings per share - diluted $0.18 $1.25
Per share impact of depreciation and amortization
of real estate 0.98 0.95
Per share impact of (gain) loss on sale or write-
down of depreciated assets - (1.17)
Per share impact of preferred stock not dilutive
to EPS - 0.02
--- ----
FFO per share - diluted $1.16 $1.05
----- -----
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
--------------------
Reconciliation of Net Income to EBITDA: For the Three Months
Ended March 31,
--------------------
Unaudited
-----------
2009 2008
---- ----
Net income - available to
common stockholders $14,016 $92,610
Interest expense - consolidated
assets 69,939 74,369
Interest expense - unconsolidated
entities (pro rata) 25,502 26,259
Depreciation and amortization -
consolidated assets 64,911 61,127
Depreciation and amortization -
unconsolidated entities (pro rata) 26,501 22,279
Non-controlling interests in OP 2,124 16,074
Less: Interest expense and
depreciation and amortization
allocable to non-controlling interests on
consolidated joint ventures (1,488) (759)
Gain on early extinguishment of debt (22,474) -
Gain on sale or write-down of assets -
consolidated assets (756) (99,937)
Gain on sale or write-down of assets -
unconsolidated entities (pro rata) (8) (1,319)
Add: Non-controlling interests share of
gain on sale of consolidated joint ventures - 341
Income tax expense (benefit) (801) 301
Distributions on preferred units 243 276
Preferred dividends - 2,454
-------- --------
EBITDA (g) $177,709 $194,075
-------- --------
Reconciliation of EBITDA to Same Centers -
Net Operating Income ("NOI"):
--------------------
For the Three Months
Ended March 31,
--------------------
Unaudited
-----------
2009 2008
---- ----
EBITDA (g) $177,709 $194,075
Add: REIT general and administrative
expenses 5,258 4,403
Management Companies' revenues (8,541) (9,691)
Management Companies' operating
expenses 23,431 18,344
Lease termination income of
comparable centers (1,557) (2,523)
EBITDA of non-comparable centers (22,060) (30,155)
-------- --------
Same Centers - NOI (h) $174,240 $174,453
-------- --------
(g) 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.
(h) 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. Same center NOI excludes the impact of straight-line
and SFAS 141 adjustments to minimum rents.
SOURCE
CONTACT: