SANTA MONICA, Calif., Feb. 14 /PRNewswire-FirstCall/ -- The Macerich Company (NYSE: MAC) today announced results of operations for the quarter and year ended December 31, 2005 which included funds from operations ("FFO") per share - diluted increasing 13% to $1.32 compared to $1.16 for the quarter ended December 31, 2004 and increasing to $4.35 for the year ended December 31, 2005 compared to $3.90 for 2004. Total FFO - diluted increased to $106 million for the quarter compared to $90 million for the quarter ended December 31, 2004 and to $337 million for the year ended December 31, 2005 compared to $299 million for 2004. The Company's definition of FFO is in accordance with the definition provided by the National Association of Real Estate Investment Trusts ("NAREIT"). A reconciliation of net income per common share-diluted ("EPS") to FFO per share-diluted is included in the financial tables accompanying this press release.
Net income available to common stockholders for the quarter ended December 31, 2005 was $23.6 million or $.39 per share-diluted compared to $30.0 million or $.51 per share-diluted for the quarter ended December 31, 2004. For the year ended December 31, 2005 net income available to common stockholders was $52.6 million or $.88 per share-diluted compared to $82.5 million or $1.40 per share-diluted for the year ended December 31, 2004. A reconciliation of net income to FFO is included in the financial highlights section of this press release.
Recent highlights:
* During the quarter, Macerich signed 325,000 square feet of specialty
store leases at average initial rents of $37.41 per square foot.
First year rents on mall and freestanding store leases signed during
the quarter were 22% higher than average expiring rents.
* This quarter's FFO per diluted share increased 13% to $1.32 from
$1.16 for the quarter ended December 31, 2004. For the year, FFO per
diluted share was up 12% to $4.35 compared to $3.90 during 2004.
* Total same center tenant sales, for the quarter ended December 31,
2005, were up 5.5% compared to sales for the quarter ended
December 31, 2004.
* Portfolio occupancy at December 31, 2005 was 93.5% compared to
92.5% at December 31, 2004. On a same center basis occupancy
increased to 93.3% at December 31, 2005 compared to 92.5% at
December 31, 2004.
* Same center earnings before interest, taxes, depreciation and
amortization were up 3.4% compared to the quarter ended
December 31, 2004.
* The Company issued 10.95 million shares of common stock on January 19,
2006. The net proceeds of $747 million were used primarily to pay
down floating rate debt.
* In December, 2005 the mortgage on Valley View Mall of $51 million
bearing interest at 7.89% was refinanced with a new loan of
$125 million with a fixed interest rate of 5.72% for five years. As a
result of this advantageous refinancing, the Company incurred a
$1.7 million prepayment penalty which adversely impacted earnings and
FFO for the quarter.
Commenting on results, Arthur Coppola president and chief executive officer of Macerich stated, "The quarter was highlighted by another quarter of double digit growth in FFO per share. We continue to see very strong fundamentals in our business with high occupancy levels and solid leasing activity. This was illustrated by good leasing volume and excellent releasing spreads. Our recent equity offering was very well received and the proceeds have allowed us to significantly strengthen our balance sheet and be in position to take advantage of the pipeline of development and redevelopment opportunities in our existing portfolio."
Redevelopment and Development Activity
At Washington Square in suburban Portland, the Company had a grand opening on November 18, 2005 of a lifestyle oriented expansion project which consists of the addition of 76,000 square feet of shop space. New tenants include Cheesecake Factory, Pottery Barn Kids, Williams-Sonoma, Bebe, Godiva and Papyrus. In addition, an agreement has been reached with Mervyn's to recapture their 100,000 square foot location and recycle that square footage over the next two years.
At Fresno Fashion Fair, an 87,000 square foot lifestyle center expansion to the existing mall continues on schedule. The first section, which included The Cheesecake Factory opened on December 3, 2005. Completion of the balance of the project is expected in summer 2006. New tenants in the expansion include Anthropologie, Bebe, Bebe Sport, Cheesecake Factory, Chico's, Fleming's Steakhouse, Lucky Brand Jeans and Sephora. Currently, over 95% of this new space is committed.
Construction continues on the Twenty Ninth Street project, a signature, outdoor retail development on 62 acres in the heart of Boulder. Leasing has been strong and the project is currently 81% committed. Retail tenants include Ann Taylor Loft, Apple, Bath and Body Works, Clark's Shoes, Puma, JJill, Victoria Secret, and White House/Black Market joining anchors Macy's department store, Wild Oats, Home Depot, and Century Theatres and an array of additional specialty stores and restaurants. Twenty Ninth Street is scheduled to open in phases starting in the fall 2006.
Construction will begin in the first quarter of 2006 on the SanTan Village regional shopping center in Gilbert, Arizona. The center is an outdoor open air streetscape project planned to contain in excess of 1.2 million square feet on 120 acres. The center will be anchored by Dillard's, Harkins Theatres and will contain a lifestyle shopping district featuring retail, office, residential and restaurants. It is also anticipated that an additional department store will also anchor this center. The project is scheduled to open in phases starting in fall 2007 with all phases completed by 2008.
Plans for Estrella Falls, a major regional shopping center and mixed use project, are progressing according to plan. The mall component of the project is located on approximately 125 acres in Goodyear, Arizona. The Company will develop the regional mall, which will consist of approximately 1.2 million square feet, and will co-develop associated commercial uses surrounding the shopping center. The regional shopping center is anticipated to be completed in 2009.
Acquisition Activity
On February 1, 2006, Macerich closed on the previously announced acquisition of Valley River Center in Eugene, Oregon. The gross purchase price was $187.5 million. Valley River Center is a 916,000 square foot super-regional mall anchored by Meier & Frank, Macy's and JC Penney. The mall includes 254,000 square feet of mall shop space and also includes a planned development of a Regal Cinema 15 screen stadium style theater complex. Annual 2005 tenant sales per square foot were approximately $420.
Financing Activity
The Company has refinanced the mortgage on Valley View Mall in Dallas, Texas. The former mortgage of $51 million with interest at 7.89% was replaced with a $125 million, five-year fixed rate loan bearing interest at 5.72%. The excess proceeds were used to pay down floating rate unsecured corporate debt.
In November the $72 million loan secured by Greece Ridge Mall in Rochester, New York was refinanced with a drop in the interest rate from LIBOR plus 2.625% down to LIBOR plus .65%.
Earnings Guidance
Management is issuing its guidance for EPS and FFO per share for 2006. This guidance reflects the recent capital activity including the 10.95 million share common stock issuance on January 19, 2006 and the recent refinancing and interest rate swap activity.
Guidance for 2006 and reconciliation of EPS to FFO per share and to
EBITDA per share:
Range per share:
Fully Diluted EPS $1.24 $1.34
Plus: Real Estate Depreciation and Amortization 3.36 3.36
Less: other items including gain on asset sales (.10) (.10)
Fully Diluted FFO per share $4.50 $4.60
Plus: Interest Expense per share 4.28 4.38
Plus: effect of preferred stock dividends .39 .39
Plus: Non real estate depreciation, income taxes,
ground rent expense and land sales per share .22 .22
EBITDA per share $9.39 $9.59
This range is based on many assumptions, including the following:
Management expects 2006 same center EBITDA to grow at a 3.0% to 3.5% rate compared to 2005 results. 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 has assumed short-term LIBOR interest rates will increase to 5.0 % by year-end 2006. Obviously a negative impact on 2006 vs. 2005 is the fact that short term rates are up 200 basis points compared to a year ago. Even though the Company's floating rate debt has decreased significantly in the past 90 days, the rate increase will have a negative impact on the comparison to 2005.
The guidance is based on management's current view of the current market conditions in the regional mall business. Due to the uncertainty in the timing and economics of acquisitions and dispositions, the guidance ranges do not include any potential property acquisitions or dispositions other than those that have closed or are under contract as of February 14, 2006. The Company is not able to assess at this time the potential impact of such exclusions on future EPS and FFO. FFO does not include gains or losses on sales of depreciated operating assets
The Macerich Company is a fully integrated self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. The Company is the sole general partner and owns an 84% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 80 million square feet of gross leaseable area consisting primarily of interests in 76 regional malls. Additional information about The Macerich Company can be obtained from the Company's web site at www.macerich.com.
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 Macerich Company's website at www.macerich.com and through CCBN at www.earnings.com. The call begins today, February 14, 2006 at 10:30 AM Pacific Time. To listen to the call, please go to any of these web sites at least 15 minutes prior to the call in order to register and download audio software if needed. An online replay at www.macerich.com will be available for one year after the call.
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 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; 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 Securities and Exchange Commission, for a discussion of such risks and uncertainties.
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results before Impact of Results after
SFAS 144 (e) SFAS 144 (e) SFAS 144 (e)
Results of For the For the For the
Operations: Three Months Three Months Three Months
Ended Ended Ended
December 31 December 31 December 31
Unaudited Unaudited
2005 2004 2005 2004 2005 2004
Minimum
Rents $132,972 $100,181 ($1,763) ($2,625) $131,209 $97,556
Percentage
Rents 15,093 10,071 (123) (348) 14,970 9,723
Tenant
Recoveries 63,219 43,792 (773) (969) 62,446 42,823
Management
Companies
Revenues (c) 7,766 5,892 -- -- 7,766 5,892
Other Income 7,898 6,876 (87) (101) 7,811 6,775
Total Revenues 226,948 166,812 (2,746) (4,043) 224,202 162,769
-- --
Shopping center
and operating
expenses 68,981 51,707 (1,269) (1,626) 67,712 50,081
Management
Companies'
operating
expenses (c) 15,722 12,333 -- -- 15,722 12,333
Depreciation and
amortization 59,171 41,126 (682) (951) 58,489 40,175
General,
administrative
and other
expenses 2,168 2,993 -- -- 2,168 2,993
Interest
expense 74,281 40,787 -- 53 74,281 40,840
Loss on early
extinguishment
of debt 1,666 -- -- -- 1,666 --
Gain (loss) on sale
or writedown
of assets 56 7,048 55 (6,822) 111 226
Pro rata
income (loss) of
unconsolidated
entities (c) 29,887 14,631 -- -- 29,887 14,631
Income (loss) of
the Operating
Partnership from -- --
continuing
operations 34,902 39,545 (740) (8,341) 34,162 31,204
Discontinued
Operations:
Gain (loss) on
sale of asset -- -- (55) 6,822 (55) 6,822
Income from
discontinued
operations -- -- 795 1,519 795 1,519
Income before
minority
interests 34,902 39,545 -- -- 34,902 39,545
Income allocated
to minority
interests 5,365 7,220 -- -- 5,365 7,220
Net income before
preferred
dividends 29,537 32,325 -- -- 29,537 32,325
Preferred
dividends (a) 5,900 2,358 -- -- 5,900 2,358
Net income to
common
stockholders $23,637 $29,967 $0 $0 $23,637 $29,967
Average number
of shares
outstanding -
basic 59,916 58,772 59,916 58,772
Average shares
outstanding,
assuming full
conversion of
OP Units (d) 73,728 73,300 73,728 73,300
Average shares
outstanding -
diluted for
FFO (d) 80,496 76,928 80,496 76,928
Per share income-
diluted before
discontinued
operations -- -- $0.38 $0.40
Net income
per share-
basic $0.39 $0.51 $0.39 $0.51
Net income
per share-
diluted $0.39 $0.51 $0.39 $0.51
Dividend declared
per share $0.68 $0.65 $0.68 $0.65
Funds from
operations
"FFO" (b) (d)-
basic $99,976 $87,198 $99,976 $87,198
Funds from
operations
"FFO"
(a) (b) (d) -
diluted $105,876 $89,556 $105,876 $89,556
FFO per share-
basic (b) (d) $1.36 $1.20 $1.36 $1.20
FFO per share-
diluted
(a) (b) (d) $1.32 $1.16 $1.32 $1.16
percentage change 12.98%
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results before Impact of Results after
SFAS 144 (e) SFAS 144 (e) SFAS 144 (e)
Results of For the Year For the Year For the Year
Operations: Ended Ended Ended
December 31 December 31 December 31
Unaudited Unaudited
2005 2004 2005 2004 2005 2004
Minimum
Rents $468,363 $340,282 ($6,935) ($10,593) $461,428 $329,689
Percentage
Rents 26,258 18,236 (173) (582) 26,085 17,654
Tenant
Recoveries 233,029 163,827 (3,566) (4,822) 229,463 159,005
Management
Companies (c) 26,128 21,549 -- -- 26,128 21,549
Other
Income 24,581 19,642 (300) (473) 24,281 19,169
Total
Revenues 778,359 563,536 (10,974) (16,470) 767,385 547,066
Shopping center
and operating
expenses 248,621 170,857 (4,854) (6,392) 243,767 164,465
Management
Companies'
operating
expenses (c) 50,808 38,614 -- -- 50,808 38,614
Depreciation and
amortization 208,938 146,383 (2,855) (4,287) 206,083 142,096
General,
administrative
and other
expenses 12,106 11,077 -- -- 12,106 11,077
Interest
expense 249,917 146,382 (7) (55) 249,910 146,327
Loss on early
extinguishment
of debt 1,666 1,642 -- -- 1,666 1,642
Gain (loss)
on sale or
writedown of
assets 1,530 8,041 (242) (7,114) 1,288 927
Pro rata
income (loss) of
unconsolidated
entities (c) 76,303 54,881 -- -- 76,303 54,881
Income (loss)
of the Operating
Partnership
from continuing
operations 84,136 111,503 (3,500) (12,850) 80,636 98,653
Discontinued
Operations:
Gain (loss)
on sale of asset -- -- 242 7,114 242 7,114
Income from
discontinued
operations -- -- 3,258 5,736 3,258 5,736
Income before
minority
interests 84,136 111,503 -- -- 84,136 111,503
Income allocated
to minority
interests 12,450 19,870 -- -- 12,450 19,870
Net income
before preferred
dividends 71,686 91,633 -- -- 71,686 91,633
Preferred
dividends (a) 19,098 9,140 -- -- 19,098 9,140
Net income
to common
stockholders $52,588 $82,493 $0 $0 $52,588 $82,493
Average number of
shares
outstanding -
basic 59,279 58,537 59,279 58,537
Average shares
outstanding,
assuming
full conversion
of OP Units (d) 73,573 73,099 73,573 73,099
Average shares
outstanding -
diluted for
FFO (d) 77,397 76,727 77,397 76,727
Per share income-
diluted before
discontinued
operations - $0.83 $1.22
Net income
per share-
basic $0.89 $1.41 $0.89 $1.41
Net income
per share-
diluted $0.88 $1.40 $0.88 $1.40
Dividend
declared
per share $2.63 $2.48 $2.63 $2.48
Funds from
operations
"FFO"
(b) (d)-
basic $326,541 $290,032 $326,541 $290,032
Funds from
operations
"FFO"
(a) (b) (d)-
diluted $336,831 $299,172 $336,831 $299,172
FFO per share-
basic (b) (d) $4.46 $3.99 $4.46 $3.99
FFO per share-
diluted
(a) (b) (d) $4.35 $3.90 $4.35 $3.90
percentage change 11.61%
(a) On February 25, 1998, the Company sold $100,000 of convertible
preferred stock representing 3.627 million shares. The convertible
preferred shares can be converted on a 1 for 1 basis for common
stock. These preferred shares are not assumed converted for purposes
of net income per share for 2005 and 2004 as they would be
antidilutive to those calculations.
The weighted average preferred shares outstanding are assumed
converted for purposes of FFO per diluted share as they
are dilutive to that calculation for all periods presented.
(b) 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.
Effective January 1, 2003, gains or losses on sale of peripheral land
and the impact of SFAS 141 have been included in FFO. The inclusion
of gains on sales of peripheral land increased FFO for the three and
twelve months ended December 31, 2005 and 2004 by $0.2 million,
$3.4 million, $1.4 million and $4.4 million, respectively, or by
$.00 per share, $.04 per share, $.02 per share and $.06 per share,
respectively. Additionally, SFAS 141 increased FFO for the three and
twelve months ended December 31, 2005 and 2004 by $4.4 million,
$15.3 million, $3.4 million and $11.3 million, respectively or by
$.05 per share, $.20 per share, $.04 per share and $.15 per share,
respectively.
(c) This includes, using the equity method of accounting, the Company's
prorata share of the equity in income or loss of its unconsolidated
joint ventures for all periods presented. Certain reclassifications
have been made in the 2004 financial highlights to conform to the
2005 financial highlights presentation.
(d) The Macerich Partnership, LP has operating partnership units
("OP units"). Each OP unit can be converted into a share of Company
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 outstanding
common stock options and restricted stock using the treasury method.
Also assumes conversion of MACWH, LP units to the extent they are
dilutive to the calculation.
(e) In October 2001, the FASB issued SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets" ("SFAS 144"). SFAS 144
addresses financial accounting and reporting for the impairment or
disposal of long-lived assets. The Company adopted SFAS 144 on
January 1, 2002. On December 17, 2004, the Company sold Westbar and
the results for the three and twelve months ended December 31, 2004
have been reclassified to discontinued operations. The sale of
Westbar resulted in a gain on sale of $6.8 million. On January 5,
2005, the Company sold Arizona Lifestyle Galleries. The sale of this
property resulted in a gain on sale of $0.3 million. Additionally,
the results of Crossroads Mall in Oklahoma for the three and twelve
months ended December 31, 2005 and 2004 have been reclassified to
discontinued operations as the Company has identified this asset for
disposition.
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
December 31, December 31,
Summarized Balance Sheet Information 2005 2004
(UNAUDITED)
Cash and cash equivalents $155,113 $72,114
Investment in real estate, net (h) $5,438,496 $3,574,553
Investments in unconsolidated
entities (i) $1,075,621 $618,523
Total Assets $7,178,944 $4,637,096
Mortgage and notes payable $5,424,730 $3,230,120
Pro rata share of debt on
unconsolidated entities $1,438,960 $1,147,268
Total common shares outstanding
at quarter end: 59,942 58,786
Total preferred shares outstanding
at quarter end: 3,627 3,627
Total partnership/preferred units
outstanding at quarter end: 16,647 14,138
December 31, December 31,
Additional financial data as of: 2005 2004
Occupancy of centers (f) 93.50% 92.50%
Comparable quarter change
in same center sales (f) (g) 5.50% 4.20%
Additional financial data
for the twelve months ended:
Acquisitions of property
and equipment -
including joint ventures prorata $2,503,688 $342,235
Redevelopment and expansions
of centers -
including joint ventures prorata $156,655 $145,888
Renovations of centers -
including joint ventures at prorata $83,336 $31,286
Tenant allowances -
including joint ventures at prorata $30,686 $21,361
Deferred leasing costs -
including joint ventures at prorata $26,950 $20,488
(f) excludes redevelopment properties - 29th Street Center, Parklane
Mall, Santa Monica Place
(g) includes mall and freestanding stores.
(h) includes construction in process on wholly owned assets of
$162,157 at December 31, 2005 and $88,228 at December 31, 2004.
(i) includes the Company's prorata share of construction in process on
unconsolidated entities of $98,180 at December 31, 2005 and
$32,047 at December 31, 2004.
PRORATA SHARE OF For the Three Months For the Year
JOINT VENTURES Ended December 31 Ended December 31
(UNAUDITED) (UNAUDITED)
(Unaudited) (All amounts in thousands) (All amounts in thousands)
2005 2004 2005 2004
Revenues:
Minimum rents $59,803 $45,805 $209,933 $174,591
Percentage rents 7,873 7,074 13,815 11,528
Tenant recoveries 25,636 19,525 91,482 75,524
Other 3,737 2,146 12,402 6,917
Total revenues 97,049 74,550 327,632 268,560
Expenses:
Shopping center
expenses 29,549 24,658 106,616 91,894
Interest expense 20,255 15,594 74,383 63,550
Depreciation and
amortization 18,004 20,072 73,247 61,060
Total operating
expenses 67,808 60,324 254,246 216,504
Gain on sale or
writedown of assets 93 772 1,954 3,353
Equity in income of
joint venture 553 -- 970 --
Loss on early
extinguishment of debt -- (367) (7) (528)
Net income $29,887 $14,631 $76,303 $54,881
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
For the Three Months For the Year
RECONCILIATION Ended December 31 Ended December 31
OF NET INCOME (UNAUDITED) (UNAUDITED)
TO FFO (b)(e) (All amounts in thousands) (All amounts in thousands)
2005 2004 2005 2004
Net income -
available to
common stockholders $23,637 $29,967 $52,588 $82,493
Adjustments to
reconcile net income
to FFO- basic
Minority interest 5,365 7,220 12,450 19,870
(Gain ) loss on sale
of wholly owned assets (56) (7,048) (1,530) (8,041)
(Gain) loss on sale or
write-down of assets
from unconsolidated
entities
(pro rata share) (93) (772) (1,954) (3,353)
plus gain on
land sales -
wholly owned assets -- 600 1,307 939
plus gain on
land sales -
unconsolidated
assets 225 849 2,092 3,464
Depreciation and
amortization
on consolidated
assets 59,171 41,126 208,938 146,383
Less depreciation and
amortization allocable
to minority
interests (2,261) (1,555) (5,873) (1,555)
Depreciation and
amortization on
joint ventures
(pro rata) 18,004 20,072 73,247 61,060
Less: depreciation on
personal property and
amortization of loan
costs and interest
rate caps (4,016) (3,261) (14,724) (11,228)
Total FFO - basic 99,976 87,198 326,541 290,032
Additional adjustment
to arrive at
FFO - diluted
Preferred stock
dividends earned 2,430 2,358 9,648 9,140
Non-Participating
Preferred units -
dividends 320 n/a 642 n/a
Participating
Preferred
units - dividends 3,150 n/a n/a - antidilutive
FFO - diluted $105,876 $89,556 $336,831 $299,172
For the For the
Three Months Ended Year Ended
Reconciliation of December 31 December 31
EPS to FFO (UNAUDITED) (UNAUDITED)
per diluted share: (All amounts in thousands) (All amounts in thousands)
2005 2004 2005 2004
Earnings per share $0.39 $0.51 $0.88 $1.40
Per share impact of
depreciation and
amortization
real estate $0.97 $0.77 $3.57 $2.68
Per share impact of
gain on sale of
depreciated assets $0.00 ($0.09) $0.00 ($0.10)
Per share impact of
preferred stock not
dilutive to EPS ($0.04) ($0.03) ($0.10) ($0.08)
Fully Diluted
FFO per share $1.32 $1.16 $4.35 $3.90
THE MACERICH COMPANY For the For the
RECONCILIATION OF Three Months Ended Year Ended
NET INCOME TO EBITDA December 31 December 31
(UNAUDITED) (UNAUDITED)
(All amounts in thousands) (All amounts in thousands)
2005 2004 2005 2004
Net income -
available to
common stockholders $23,637 $29,967 $52,588 $82,493
Interest expense 74,281 40,787 249,917 146,382
Interest expense -
unconsolidated
entities (pro rata) 20,255 15,594 74,383 63,550
Depreciation and
amortization -
wholly-owned centers 59,171 41,126 208,938 146,383
Depreciation and
amortization -
unconsolidated
entities (pro rata) 18,004 20,072 73,247 61,060
Minority interest 5,365 7,220 12,450 19,870
Less: Interest
expense and
depreciation and
amortization allocable
to minority interests
on consolidated
assets (2,699) (2,035) (7,099) (2,035)
Loss on early
extinguishment of debt 1,666 -- 1,666 1,642
Loss on early
extinguishment of debt -
unconsolidated
entities (pro rata) -- 367 7 528
Loss (gain) on sale of
assets - wholly-owned
centers (56) (7,048) (1,530) (8,041)
Loss (gain) on sale of
assets - unconsolidated
entities (pro rata) (93) (772) (1,954) (3,353)
Preferred dividends 5,900 2,358 19,098 9,140
EBITDA (j) $205,431 $147,636 $681,711 $517,619
THE MACERICH COMPANY
RECONCILIATION OF EBITDA TO SAME CENTERS - NET OPERATING INCOME ("NOI")
For the Three Months For the Year
Ended December 31 Ended December 31
(UNAUDITED) (UNAUDITED)
(All amounts in thousands) (All amounts in thousands)
2005 2004 2005 2004
EBITDA (j) $205,431 $147,636 $681,711 $517,619
Add: REIT general and
administrative expenses 2,168 2,993 12,106 11,077
Management Companies'
revenues (c) (7,766) (5,892) (26,128) (21,549)
Management Companies'
operating
expenses (c) 15,722 12,333 50,808 38,614
EBITDA of
non-comparable
centers (68,285) (14,616) (221,772) (64,080)
SAME CENTERS -
Net operating
income ("NOI") (k) $147,270 $142,454 $496,725 $481,681
(j) 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.
(k) 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.
SOURCE The Macerich Company
-0- 02/14/2006
/CONTACT: Arthur Coppola, President and Chief Executive Officer, or
Thomas E. O'Hern, Executive Vice President and Chief Financial Officer, both
of The Macerich Company, +1-310-394-6000/
/Web site: http://www.macerich.com /
(MAC)
CO: Macerich Company
ST: California
IN: FIN RLT REA
SU: ERN ERP CCA
ES-BF
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7084 02/14/2006 06:00 EST http://www.prnewswire.com