SANTA MONICA, Calif., Feb. 10, 2005 /PRNewswire-FirstCall via COMTEX/ -- The Macerich Company (NYSE: MAC) today announced results of operations for the quarter and year ended December 31, 2004 which included funds from operations ("FFO") per share - diluted increasing 12% to $1.16 compared to $1.04 for the quarter ended December 31, 2003 and $3.90 for the year ended December 31, 2004, a 9% increase compared to $3.58 for 2003. Net income available to common stockholders for the quarter ended December 31, 2004 was $30.0 million or $.51 per share-diluted ("EPS") compared to $25.5 million or $.44 per share- diluted for the quarter ended December 31, 2003. For the year ended December 31, 2004 net income was $82.5 million or $1.40 per share-diluted compared to $113.2 million or $2.09 per share-diluted for the year ended December 31, 2003. Net income for the year ended December 31, 2003 was positively impacted by net gain on sales of consolidated assets of $34.5 million or $.46 per share-diluted compared to a net gain on asset sales of $8 million or $.11 per share-diluted for the year ended December 31, 2004. A reconciliation of net income to FFO and net income per common share-diluted ("EPS") to FFO per share-diluted is included in the financial highlights section of this press release. The Company's definition of FFO is in accordance with the definition provided by the National Association of Real Estate Investment Trusts ("NAREIT").
Recent highlights:
* During the quarter, Macerich signed 208,000 square feet of specialty
store leases at average initial rents of $38.92 per square foot. First
year rents on mall and freestanding store leases signed during the
quarter were 34% higher than average expiring rents.
* Total same center tenant sales, for the quarter ended December 31,
2004, were up 4.2% compared to sales levels for the quarter ended
December 31, 2003. Total same center tenant sales for the year were up
5.9% compared to 2003. Total portfolio mall store sales per square
foot were $391 during 2004 compared to $361 for 2003.
* Portfolio occupancy at December 31, 2004 was 92.5% compared to 93.3% at
December 31, 2003.
* Growth in same center net operating income for the quarter was 3.96%
compared to the quarter ended December 31, 2003.
* The grand opening of the $275 million expansion of Queens Center took
place in November. Occupancy of the expanded center was 96% at year
end.
* The Company announced an agreement to acquire the Wilmorite Company for
$2.33 billion.
Commenting on results and recent events, Arthur Coppola, President and Chief Executive Officer of Macerich stated, "The quarter was highlighted by continued strong leasing activity including very positive releasing spreads and solid growth in same center net operating income."
Redevelopment and Development Activity
At Queens Center, the multi-phased $275 million redevelopment and expansion had its grand opening the weekend of November 19th. The project increased the size of the center from 620,000 square feet to approximately one million square feet. During the course of the last 12 months, 109 new or expanded stores have opened at Queens Center. New tenants recently opened include Banana Republic, Godiva, Guess, Coach, Aldo Shoes, Club Monaco, Benetton, American Eagle Outfitters, Bostonian, Urban Outfitters, Applebee's Neighbor Bar & Grill, GNC and Queens Diner. Tenants who have recently expanded their presence at Queens Center include, The Gap, H & M, Victoria's Secret and Forever 21.
At Washington Square in suburban Portland the Company is proceeding with an expansion project which consists of the addition of 80,000 square feet of shop space. The expansion is underway with substantial completion earmarked for the fourth quarter of 2005.
The development of San Tan Village progresses. The 500 acre master planned Gilbert project will unfold during several phases of development which will be driven by market and retailers' needs. Upon full completion, San Tan Village will represent 3,000,000 square feet of retail space. Phase I, featuring a 29 acre full service power center, will open a Wal-Mart in 2005 followed by a Sam's Club later in the year. Phase II represents an additional 308,000 square feet of gross leaseable area. Leases have been signed with OfficeMax, Jo-Ann Superstore, Bed Bath & Beyond, Marshall's and DSW Designer Shoes representing 157,000 square feet. Phase II is projected to open September 2005. The regional shopping center component of San Tan Village sits on 120 acres representing 1.3 million square feet. The center's multi-faceted design will incorporate quality elements from other retail formats including the successful traditional enclosed mall anchored by Dillard's and May Co.'s Robinsons-May, an open-air lifestyle center and an 18-screen Harkins Theatre entertainment district. Infrastructure improvements are underway. The entertainment district could open as early as 2006 followed by a projected fall 2007 opening for the majority of the balance of the center.
Acquisitions
The acquisition of Fiesta Mall closed in November. The acquisition of Fiesta solidified Macerich's dominance in the Phoenix market. Fiesta is a 1,000,000 square foot super regional mall. It is anchored by Dillard's, Macy, Sears and Robinsons-May. The mall's shops have annual sales per square foot of $362. The purchase price was $135 million. Shortly after closing the Company placed a 10 year $84 million fixed rate loan at 4.87%.
On December 23, 2004 the Company announced that it had signed a definitive agreement to acquire Wilmorite Properties, Inc. and Wilmorite Holdings L.P. ("Wilmorite"). The total purchase price will be approximately $2.33 billion, including the assumption of approximately $882 million of existing debt at an average interest rate of 6.43% and the issuance of convertible preferred units and common units totaling an estimated $320 million. Approximately $210 million of the convertible preferred units can be redeemed, subject to certain conditions, for that portion of the Wilmorite portfolio generally located in the greater Rochester area. The balance of the consideration to Wilmorite's equity holders will be paid in cash. This transaction has been approved by each company's Board of Directors, subject to customary closing conditions. A majority-in-interest of the limited partners of Wilmorite Holdings L.P. and of the stockholders of its general partner, Wilmorite Properties, Inc., have also approved this acquisition. It is currently anticipated that this transaction will be completed in March, 2005.
Wilmorite's existing portfolio includes interests in 11 regional malls and two open-air community centers, with 13.4 million square feet of space located in Connecticut, New York, New Jersey, Kentucky and Virginia. Approximately 5 million square feet of gross leaseable area is located at three premier regional malls: Tysons Corner Center in McLean, Virginia, Freehold Raceway Mall in Freehold, New Jersey and Danbury Fair Mall in Danbury, Connecticut. The average tenant sales per square foot, for these three centers, is in excess of $525. The total portfolio average of mall store annual sales per square foot is $403. On a pro forma basis reflecting this acquisition, Macerich will own 75 regional malls with total portfolio square footage increasing to approximately 76.4 million square feet.
Earnings Guidance
At this time management is not modifying the previously provided guidance for 2005. The EPS and FFO per share guidance will be readdressed after the closing of the Wilmorite transaction discussed above.
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 81% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 63 million square feet of gross leaseable area consisting primarily of interests in 64 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.fulldisclosure.com. The call begins today, February 10 at 12:30 PM 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.
(See attached tables)
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results before Impact of Results after
SFAS 144 (f) SFAS 144 (f) SFAS 144 (f)
Results of For the Three For the Three For the Three
Operations: Months Ended Months Ended Months Ended
December 31 December 31 December 31
Unaudited Unaudited
2004 2003 2004 2003 2004 2003
Minimum Rents (e) 100,181 82,790 (2,625) (3,787) 97,556 79,003
Percentage Rents 10,071 7,958 (348) (370) 9,723 7,588
Tenant Recoveries 43,792 43,271 (969) (1,451) 42,823 41,820
Management
Companies (c) 6,128 5,414 -- -- 6,128 5,414
Other Income 6,876 5,598 (101) (71) 6,775 5,527
Total Revenues 167,048 145,031 (4,043) (5,679) 163,005 139,352
Shopping center
and operating
expenses 50,659 45,235 (1,626) (1,544) 49,033 43,691
Management
Companies'
operating
expenses (c) 13,617 9,837 -- -- 13,617 9,837
Depreciation and
amortization 41,126 36,303 (951) (2,259) 40,175 34,044
General,
administrative
and other
expenses (c) 2,993 1,740 2,993 1,740
Interest expense 40,787 34,418 53 (608) 40,840 33,810
Loss on early
extinguishment of
debt -- 29 -- 15 -- 44
Gain (loss) on
sale or writedown
of assets 7,048 (117) (6,822) 85 226 (32)
Pro rata income
(loss) of
unconsolidated
entities (c) 14,631 16,489 -- -- 14,631 16,489
Income (loss) of
the Operating
Partnership from
continuing
operations 39,545 33,841 (8,341) (1,198) 31,204 32,643
Discontinued
Operations:
Gain (loss) on
sale of asset -- -- 6,822 (85) 6,822 (85)
Income from
discontinued
operations -- -- 1,519 1,283 1,519 1,283
Income before
minority
interests 39,545 33,841 -- -- 39,545 33,841
Income allocated
to minority
interests 7,220 5,994 -- -- 7,220 5,994
Net income before
preferred
dividends 32,325 27,847 -- -- 32,325 27,847
Dividends earned
by preferred
stockholders (a) 2,358 2,357 -- -- 2,358 2,357
Net income to
common
stockholders 29,967 25,490 -- -- 29,967 25,490
Average number of
shares
outstanding -
basic 58,772 57,745 58,772 57,745
Average shares
outstanding, -
basic, assuming
full conversion
of OP Units (d) 72,914 71,324 72,914 71,324
Average shares
outstanding -
diluted for
FFO (d) 76,928 75,491 76,928 75,491
Per share income -
diluted before
discontinued
operations -- -- 0.40 0.42
Net income per
share - basic 0.51 0.44 0.51 0.44
Net income per
share - diluted 0.51 0.44 0.51 0.44
Dividend declared
per share 0.65 0.61 0.65 0.61
Funds from
operations
"FFO" (b) (d) -
basic 87,198 75,964 87,198 75,964
Funds from
operations
"FFO" (a) (b) (d)
- diluted 89,556 78,321 89,556 78,321
FFO per share -
basic (b) (d) 1.20 1.07 1.20 1.07
FFO per share -
diluted (a) (b)
(d) 1.16 1.04 1.16 1.04
percentage change 12.21%
Results before Impact of Results after
SFAS 144 (f) SFAS 144 (f) SFAS 144 (f)
Results of For the Year For the Year For the Year
Operations: Ended Ended Ended
December 31 December 31 December 31
Unaudited Unaudited
2004 2003 2004 2003 2004 2003
Minimum
Rents (e) 340,282 300,578 (10,593) (14,280) 329,689 286,298
Percentage Rents 18,236 12,999 (582) (572) 17,654 12,427
Tenant
Recoveries 163,827 158,600 (4,822) (5,904) 159,005 152,696
Management
Companies (c) 21,751 14,630 -- -- 21,751 14,630
Other Income 19,642 17,830 (473) (304) 19,169 17,526
Total
Revenues (e) 563,738 504,637 (16,470) (21,060) 547,268 483,577
Shopping center
and operating
expenses 171,375 157,852 (6,392) (6,527) 164,983 151,325
Management
Companies'
operating
expenses (c) 38,298 31,587 -- -- 38,298 31,587
Depreciation and
amortization 146,383 110,156 (4,287) (5,236) 142,096 104,920
General,
administrative
and other
expenses (c) 11,077 8,482 11,077 8,482
Interest expense 146,382 133,265 (55) (2,558) 146,327 130,707
Loss on early
extinguishment
of debt 1,642 155 -- 15 1,642 170
Gain (loss) on
sale or
writedown of
assets 8,041 34,451 (7,114) (22,031) 927 12,420
Pro rata income
of unconsolidated
entities (c) 54,881 59,348 -- -- 54,881 59,348
Income (loss) of
the Operating
Partnership
from
continuing
operations 111,503 156,939 (12,850) (28,785) 98,653 128,154
Discontinued
Operations:
Gain on sale
of asset -- -- 7,114 22,031 7,114 22,031
Income from
discontinued
operations -- -- 5,736 6,754 5,736 6,754
Income before
minority
interest 111,503 156,939 -- -- 111,503 156,939
Income allocated
to minority
interests 19,870 28,907 -- -- 19,870 28,907
Net income
before
preferred
dividends 91,633 128,032 -- -- 91,633 128,032
Dividends earned
by preferred
stockholders (a) 9,140 14,816 -- -- 9,140 14,816
Net income to
common
stockholders 82,493 113,216 -- -- 82,493 113,216
Average number
of shares
outstanding -
basic 58,537 53,669 58,537 53,669
Average shares
outstanding, -
basic, assuming
full conversion
of OP Units (d) 72,715 67,332 72,715 67,332
Average shares
outstanding -
diluted for
FFO (d) 76,727 75,198 76,727 75,198
Per share
income - diluted
before
discontinued
operations 1.22 1.71
Net income per
share - basic 1.41 2.11 1.41 2.11
Net income per
share - diluted 1.40 2.09 1.40 2.09
Dividend
declared per
share 2.48 2.32 2.48 2.32
Funds from
operations
"FFO" (b) (d) -
basic 290,032 254,315 290,032 254,315
Funds from
operations
"FFO" (a) (b)
(d) - diluted 299,172 269,131 299,172 269,131
FFO per share -
basic (b) (d) 3.99 3.78 3.99 3.78
FFO per share -
diluted (a)
(b) (d) 3.90 3.58 3.90 3.58
percentage change 8.95%
(a) On February 25, 1998, the Company sold $100,000 of convertible
preferred stock and on June 16, 1998 another $150,000 of
convertible preferred stock was issued. The convertible preferred
shares can be converted on a 1 for 1 basis for common stock. These
preferred shares are assumed converted for purposes of net income
per share for 2003 and are not assumed converted for purposes of net
income per share for 2004 as it would be antidilutive to those
calculations. On September 9, 2003, 5.487 million shares of Series
B convertible preferred stock were converted into common shares.
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, 2004 by $1,448 and
$4,403 respectively, or by $.02 per share and $.06 per share,
respectively. Additionally, the impact of SFAS No. 141 increased FFO
for the three and twelve months ended December 31, 2004 by
$3.4 million and $11.3 million, respectively, or by $.04 per share
and approximately $.15 per share, respectively. The inclusion of
gains on sales of peripheral land increased FFO for the three and
twelve months ended December 31, 2003 by $189 and $1,441,
respectively, or by approximately $.00 per share and $.02 per share,
respectively. Additionally, the impact of SFAS 141 increased FFO for
the three and twelve months ended December 31, 2003 by $2.1 million
and $5.6 million, respectively, or by $.03 per share and $.075 per
share, respectively. The Company adopted SFAS No. 141 (see Note (e)
below) effective October 1, 2002.
(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 and for Macerich Management
Company through June 2003. Effective July 1, 2003, the Company has
consolidated Macerich Management Company. Certain reclassifications
have been made in the 2003 financial highlights to conform to the
2004 financial highlights presentation.
(d) The Company has operating partnership units ("OP units"). Each OP
unit can be converted into a share of Company stock. Conversion of
the OP units has been assumed for purposes of calculating the FFO
per share and the weighted average number of shares outstanding.
(e) Effective October 1, 2002, the Company adopted SFAS No. 141,
Business Combinations, which requires companies that have acquired
assets subsequent to June 2001 to reflect the discounted net present
value of market rents in excess of rents in place at the date of
acquisition as a deferred credit to be amortized into income over
the average remaining life of the acquired leases. The impact on
diluted EPS for the three and twelve months ended December 31, 2004
was approximately $.05 and $.15 per share, respectively. The
impact on diluted EPS for the three and twelve months ending
December 31, 2003 was approximately $.03 per share and $.07 per
share, respectively. In accordance with the NAREIT definition of
FFO, the impact of this accounting treatment is included in FFO.
(f) 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. The Company sold its 67% interest in Paradise
Village Gateway on January 2, 2003 (acquired in July 2002), and the
loss on sale of $0.2 million has been reclassified to discontinued
operations. Additionally, the Company sold Bristol Center on
August 4, 2003, and the results for the period January 1, 2003 to
December 31, 2003 have been reclassified to discontinued operations.
The sale of Bristol Center resulted in a gain on sale of asset of
$22.2 million. On December 17, 2004, the Company sold Westbar and
the results for the twelve months ending December 31, 2004 and 2003
have been reclassified to discontinued operations. The sale of
Westbar resulted in a gain on sale of $6.8 million.
Additionally, the results of Crossroads Mall in Oklahoma for the
twelve months ending December 31, 2004 and 2003 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)
Summarized Balance Sheet Dec 31 Dec 31
Information 2004 2003
(UNAUDITED)
Cash and cash equivalents $72,114 $47,160
Investment in real estate, net (i) $3,574,553 $3,186,725
Investments in unconsolidated
entities (j) $618,523 $577,908
Total Assets $4,637,096 $4,145,593
Mortgage and notes payable $3,230,120 $2,682,599
Pro rata share of debt on
unconsolidated entities $1,147,268 $1,046,042
Dec 31 Dec 31
Additional financial data as of: 2004 2003
Occupancy of centers (g)
consolidated assets 92.60% 92.80%
unconsolidated assets 92.40% 93.80%
Total portfolio 92.50% 93.30%
Comparable quarter change in
same center sales (g) (h)
consolidated assets 2.90% 0.20%
unconsolidated assets 5.20% 4.80%
Total portfolio 4.20% 2.60%
Sales per square foot (h):
consolidated assets $368 $350
unconsolidated assets $414 $372
Total portfolio $391 $361
Additional financial data for
the twelve months ended:
Acquisitions of property and
equipment - including joint
ventures prorata $342,235 $339,997
Redevelopment and expansions of
centers - including joint
ventures prorata $145,888 $183,896
Renovations of centers -
including joint ventures at
prorata $31,286 $24,468
Tenant allowances - including
joint ventures at prorata $21,361 $12,043
Deferred leasing costs -
including joint ventures at
prorata $20,488 $18,486
(g) excludes redevelopment properties -- 29th Street Center,
Parklane Mall, Santa Monica Place
(h) includes mall and freestanding stores.
(i) includes construction in process on wholly owned assets of
$88,228 at December 31, 2004 and $268,810 at December 31, 2003.
(j) the Company's prorata share of construction in process on
unconsolidated entities of $32,047 at December 31, 2004 and
$16,510 at December 31, 2003.
For the Three Months For the Year
PRORATA SHARE OF JOINT Ended December 31 Ended December 31
VENTURES (UNAUDITED) (UNAUDITED)
(All amounts in (All amounts in
(Unaudited) thousands) thousands)
2004 2003 2004 2003
Revenues:
Minimum rents $45,805 $39,793 $174,591 $157,445
Percentage rents 7,074 4,625 11,528 8,163
Tenant recoveries 19,525 16,828 75,524 66,833
Management fee (c) -- -- -- 5,250
Other 2,146 1,428 6,917 4,810
Total revenues 74,550 62,674 268,560 242,501
Expenses:
Shopping center
expenses 24,658 20,837 91,894 78,459
Interest expense 15,594 14,392 63,550 56,703
Management company
expense (c) -- -- -- 3,013
Depreciation and
amortization 20,072 10,952 61,060 45,133
Total operating
expenses 60,324 46,181 216,504 183,308
(Loss) on early
extinguishment of debt (367) -- (528) --
Gain (loss) on sale or
writedown of assets 772 (4) 3,353 155
Net income 14,631 16,489 54,881 59,348
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
RECONCILIATION OF For the Three Months For the Year
NET INCOME TO FFO (b)(e) Ended December 31 Ended December 31
(UNAUDITED) (UNAUDITED)
(All amounts in (All amounts in
thousands) thousands)
2004 2003 2004 2003
Net income - available to
common stockholders $29,967 $25,490 $82,493 $113,216
Adjustments to reconcile net
income to FFO - basic
Minority interest 7,220 5,994 19,870 28,907
(Gain) loss on sale of
wholly owned assets (7,048) 117 (8,041) (34,451)
plus gain on land
sales - consolidated
assets 600 195 939 1,054
less impairment
writedown of
consolidated assets -- -- -- --
(Gain) loss on sale or
write-down of assets from
unconsolidated entities
(pro rata share) (772) 4 (3,353) (155)
plus gain on land
sales - unconsolidated
assets 849 (5) 3,464 387
less impairment
writedown of
unconsolidated assets -- -- -- --
Depreciation and
amortization on
consolidated assets 41,126 36,303 146,383 110,156
Less depreciation
allocated to minority
interests (1,555) (586) (1,555) (586)
Depreciation and
amortization on joint
ventures and from the
management companies
(pro rata) 20,072 10,952 61,060 45,133
Less: depreciation on
personal property and
amortization of loan
costs and interest
rate caps (3,261) (2,500) (11,228) (9,346)
Total FFO - basic 87,198 75,964 290,032 254,315
Additional adjustment to
arrive at FFO - diluted
Preferred stock dividends
earned 2,358 2,357 9,140 14,816
Effect of
employee/director stock
incentive plans -- -- -- --
FFO - diluted 89,556 78,321 299,172 269,131
For the Three Months For the Year
Ended December 31 Ended December 31
(UNAUDITED) (UNAUDITED)
(All amounts in (All amounts in
thousands) thousands)
Reconciliation of EPS to FFO
per diluted share: 2004 2003 2004 2003
Earnings per share $0.51 $0.44 $1.40 $2.09
Per share impact of
depreciation and
amortization real estate $0.77 $0.61 $2.68 $1.93
Per share impact of gain on
sale of depreciated assets ($0.09) $0.00 ($0.10) ($0.44)
Per share impact of preferred
stock not dilutive to EPS ($0.03) ($0.01) ($0.08) $0.00
Fully Diluted FFO per share $1.16 $1.04 $3.90 $3.58
THE MACERICH COMPANY For the Three Months For the Year
RECONCILIATION OF Ended December 31 Ended December 31
NET INCOME TO EBITDA (UNAUDITED) (UNAUDITED)
(All amounts in (All amounts in
thousands) thousands)
2004 2003 2004 2003
Net income - available to
common stockholders 29,967 25,490 82,493 113,216
Interest expense 40,787 34,418 146,382 133,265
Less interest expense
allocated to minority
interests (480) (406) (480) (406)
Interest expense -
unconsolidated entities
(pro rata) 15,594 14,392 63,550 56,703
Depreciation and
amortization - wholly-
owned centers 41,126 36,303 146,383 110,156
Less depreciation
allocated to
minority interests (1,555) (586) (1,555) (586)
Depreciation and
amortization -
unconsolidated entities
(pro rata) 20,072 10,952 61,060 45,133
Minority interest 7,220 5,994 19,870 28,907
Loss on early
extinguishment of debt -- 29 1,642 155
Loss on early
extinguishment of debt -
unconsolidated entities 367 -- 528 --
Loss (gain) on sale of
assets - wholly-owned
centers (7,048) 117 (8,041) (34,451)
Loss (gain) on sale of
assets - unconsolidated
entities (pro rata) (772) 4 (3,353) (155)
Preferred dividends 2,358 2,357 9,140 14,816
EBITDA (k) $147,636 $129,064 $517,619 $466,753
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
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 (All amounts in
thousands) thousands)
2004 2003 2004 2003
EBITDA (k) $147,636 $129,064 $517,619 $466,753
Add: REIT general and
administrative expenses 2,993 1,740 11,077 8,482
Management Companies'
revenues (c) (6,128) (5,414) (21,751) (14,630)
Management Companies'
operating expenses (c) 13,617 9,837 38,298 30,038
EBITDA of non-
comparable centers (29,472) (11,481) (89,150) (45,505)
SAME CENTERS - Net
operating income
("NOI") (l) $128,646 $123,746 $456,093 $445,138
(k) 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.
(l) 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
Arthur Coppola, President and Chief Executive Officer, or Thomas E. O'Hern, Executive Vice President and Chief Financial Officer, of The Macerich Company, +1-310-394-6000