SANTA MONICA, Calif., Aug 7, 2003 /PRNewswire-FirstCall via COMTEX/ -- The Macerich Company (NYSE: MAC) today announced results of operations for the quarter and six months ended June 30, 2003 which included funds from operations ("FFO") per share - diluted increasing 27% to $.85 compared to $.67 for the quarter ended June 30, 2002 and increasing to $1.69 for the six months ended June 30, 2003 compared to $1.37 for the comparable period in 2002. Total FFO - diluted increased by 54% to $63.8 million for the quarter compared to $40.5 million for the quarter ended June 30, 2002 and to $127 million for the six months ended June 30, 2003 compared to $81.7 million for the comparable period in 2002.
Net income available to common stockholders for the quarter ended June 30, 2003 was $28.6 million or $.55 per share - diluted compared to a $1.3 million loss or a loss of $.04 per share - diluted for the quarter ended June 30, 2002. Net income in the quarter ended June 30, 2003 was positively impacted by net gain on sales of consolidated assets of $11.6 million or $.18 per share compared to a net loss of $3.0 million on sales and write downs of consolidated assets in the quarter ended June 30, 2002. For the six months ended June 30, 2003 net income was $48 million or $.92 per share - diluted compared to $16.1 million or $.45 per share - diluted for the six months ended June 30, 2002. A reconciliation of net income to FFO is included in the financial highlights section of this press release.
Highlights included:
* During the quarter, Macerich signed 396,000 square feet of specialty
store leases at average initial rents of $34.26 per square foot.
First year rents on mall and freestanding store leases signed during
the quarter were 17% higher than expiring rents on a comparable space
basis.
* Total same center tenant sales, for the quarter ended June 30, 2003,
were up 1.5% compared to sales levels for the quarter ended June 30,
2002.
* FFO per share - diluted increased 27% to $.85 compared to $.67 per
share for the quarter ended June 30, 2002. In compliance with the
Securities and Exchange Commission's Regulation G relating to non-GAAP
financial measures, the Company has revised its FFO definition as of
January 1, 2003 and for all prior periods presented, to include gain
or loss on sales of peripheral land and the effect of SFAS No. 141.
The Company's revised definition is in accordance with the definition
provided by the National Association of Real Estate Investment Trusts
("NAREIT"). The inclusion of SFAS No. 141 increased FFO by
$1.3 million or $.017 per share. Gain on peripheral land sales,
included in FFO, were $65,000 and $589,000 for the three and six
months ended June 30, 2003 respectively. There were no gains on
peripheral land sales and SFAS 141 had no impact during the quarter
ended June 30, 2002.
* Portfolio occupancy at June 30, 2003 was 92.4% compared to 92.9% at
June 30, 2002.
* Average base rent per square foot increased 6.3% to $31.16 compared to
$29.31 at June 30, 2002.
The Company uses FFO in addition to net income to report its operating and financial results and considers FFO a supplemental measure for the real estate industry and a supplement to GAAP measures. NAREIT defines FFO as net income (loss) (computed in accordance with Generally Accepted Accounting Principles (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 is 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 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.
Commenting on results and recent events, Arthur Coppola, President and Chief Executive Officer of Macerich stated, "Even in this challenging economic climate, we continue to achieve strong operating results including 27% growth in FFO per share and 4.5% growth in same center net operating income. Our portfolio performed extremely well with occupancy remaining over 92%, strong releasing spreads and improvement in total same center tenant sales. In addition we continue to make excellent progress on our major redevelopment of Queens Center, which is already over 80% leased."
Redevelopment and Development Activity
At Queens Center, the redevelopment and expansion continued. The project will increase the size of the center from 620,000 square feet to approximately 1 million square feet. Completion is planned in phases starting in 2004 with stabilization expected in 2005. Leasing activity has been strong with over 80% of the expansion space already leased.
At Lakewood Center, Target is building a two-level Target store in the location formerly occupied by Montgomery Wards. The new store is scheduled to open in October 2003.
Bon Marche opened a new department store at Redmond Town Center in July 2003.
Construction continues at Scottsdale 101, a 600,000 square foot power center in North Phoenix. The power center is being built in phases through 2004. EXPO, Toys "R" Us, Sportmart and Harkins Theatres recently opened. Progress also continues at La Encantada, a 258,000 square foot specialty center in Tucson, Arizona, which will feature Adrienne Vittadini, Ann Taylor, Apple Computer, Cache, Pottery Barn and Williams-Sonoma. This project is planned to open in phases through 2004.
Dispositions
The Company continues to dispose of non-core assets and to recycle capital. In June 2003, Gainey Village, a 138,000 square foot Phoenix area specialty center was sold for approximately $56 million. The Company owned a 50% interest. In May, the Company sold a 49.9% partnership interest in the Village of Corte Madera for a total purchase price of approximately $66 million. The Company is retaining a 50.1% partnership interest and will continue leasing and managing the asset. These sales resulted in gain on sales of assets during the quarter ended June 30, 2003 of approximately $11.6 million, which is not included in FFO.
On August 4, 2003, the Company sold Bristol Center, a 161,000 square foot community center in Southern California. The sale price was approximately $30 million. This sale brings the total dispositions for the year to approximately $153 million.
Financing Activity
In May, the Company issued $250 million in unsecured notes maturing in May 2007. The proceeds were used to pay down, and create more availability under, the Company's line of credit.
In other financing activity, the Company has reached agreement on a refinancing of the existing $180 million floating rate loan on FlatIron Crossing. The existing loan will be paid off in late 2003 and refinanced with a $200 million, fixed rate 10-year loan bearing interest at 5.23%. In addition, the Company has negotiated a total of approximately $82 million of fixed rate loans on Greeley Mall, Chandler Festival and Chandler Gateway. These loans are expected to close by year-end.
Earnings Guidance
The Company is providing year 2003 EPS and FFO per share guidance in the following ranges:
Guidance for 2003 Range:
Fully Diluted EPS $1.80.......$1.96
Plus: Real Estate Depreciation
and Amortization $1.86.......$1.78
Less: Gain on Sale of Assets $ .18.......$ .18
Fully Diluted FFO per share $3.48.......$3.56
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 through June 30, 2003. 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, redevelopment and development of regional malls and community centers throughout the United States. The Company is the sole general partner and owns an 82% ownership interest in The Macerich Partnership, L.P. Macerich now interests in 56 regional malls, 18 community centers and two development properties totaling approximately 57 million square feet. 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, through Vcall at www.vcall.com , and CCBN at www.ccbn.com. The call begins today, August 7, 2003 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 1 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, tenant bankruptcies, lease rates and terms, 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; 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 (f) SFAS 144 (f) SFAS 144 (f)
Results of
Operations: For the For the For the
Three Months Three Months Three Months
Ended June 30 Ended June 30 Ended June 30
Unaudited Unaudited
2003 2002 2003 2002 2003 2002
Minimum Rents (e) 73,029 49,597 -- (10) 73,029 49,587
Percentage Rents 1,261 991 -- -- 1,261 991
Tenant Recoveries 39,638 26,313 -- -- 39,638 26,313
Other Income 3,784 2,217 -- -- 3,784 2,217
Total Revenues 117,712 79,118 -- (10) 117,712 79,108
Shopping center
and operating
expenses (c) 41,881 27,660 -- (6) 41,881 27,654
Depreciation and
amortization 24,575 17,126 -- -- 24,575 17,126
General,
administrative
and other
expenses 3,684 2,012 -- -- 3,684 2,012
Interest expense 32,981 25,036 -- -- 32,981 25,036
Gain (loss) on
sale or
writedown
of assets 11,591 (3,041) (2,797) 508 8,794 (2,533)
Pro rata income
(loss) of
unconsolidated
entities (c) 15,141 (900) -- -- 15,141 (900)
Income of the
Operating
Partnership
from continuing
operations 41,323 3,343 (2,797) 504 38,526 3,847
Loss on early
extinguishment
of debt -- -- -- -- -- --
Discontinued
Operations:
Gain (loss) on
sale of asset -- -- 2,797 (508) 2,797 (508)
Income from
discontinued
operations -- -- -- 4 -- 4
Income before
minority
interest 41,323 3,343 -- -- 41,323 3,343
Income (loss)
allocated to
minority
interests 7,554 (393) -- -- 7,554 (393)
Net income
before
preferred
dividends 33,769 3,736 -- -- 33,769 3,736
Dividends earned
by preferred
stockholders 5,195 5,013 -- -- 5,195 5,013
Net income
< loss >
to common
stockholders 28,574 (1,277) -- -- 28,574 (1,277)
Average # of
shares
outstanding
- basic 51,874 36,241 51,874 36,241
Average shares
outstanding,
- basic, assuming
full conversion
of OP Units (d) 65,586 47,393 65,586 47,393
Average shares
outstanding
- diluted for
FFO (d) 75,203 60,529 75,203 60,529
Per share income
- diluted before
discontinued
operations -- -- 0.50 (0.03)
Net income
per share
- basic 0.55 (0.04) 0.55 (0.04)
Net income
per share
- diluted 0.55 (0.04) 0.55 (0.04)
Dividend
declared per
share 0.57 0.55 0.57 0.55
Funds from
operations
"FFO" (b)(d)
- basic 58,566 33,172 58,566 33,172
Funds from
operations
"FFO" (a)(b)(d)
- diluted 63,761 40,547 63,761 40,547
FFO per share
- basic (b)(d) 0.89 0.70 0.89 0.70
FFO per share
- diluted
(a)(b)(d) 0.85 0.67 0.85 0.67
% change in FFO
- diluted 26.57% 26.57%
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
Operations: For the For the For the
Six Months Six Months Six Months
Ended June 30 Ended June 30 Ended June 30
Unaudited Unaudited
2003 2002 2003 2002 2003 2002
Minimum
Rents (e) 145,167 98,138 -- (415) 145,167 97,723
Percentage Rents 2,971 2,288 -- -- 2,971 2,288
Tenant Recoveries 76,655 51,439 -- (59) 76,655 51,380
Other Income 7,877 4,663 -- 4 7,877 4,667
Total
Revenues (e) 232,670 156,528 -- (470) 232,670 156,058
Shopping center
and operating
expenses (c) 81,243 53,416 -- (63) 81,243 53,353
Depreciation and
amortization 48,489 33,750 -- (115) 48,489 33,635
General,
administrative
and other
expenses 6,020 3,544 -- -- 6,020 3,544
Interest expense 66,989 50,159 -- -- 66,989 50,159
Gain < loss >
on sale or
writedown of
assets 11,553 10,215 (2,759) (13,916) 8,794 (3,701)
Pro rata income
of unconsolidated
entities (c) 29,607 5,406 -- -- 29,607 5,406
Income of the
Operating
Partnership
from continuing
operations 71,089 31,280 (2,759) (14,208) 68,330 17,072
Loss on early
extinguishment
of debt -- -- -- -- -- --
Discontinued
Operations:
Gain on sale
of asset -- -- 2,759 13,916 2,759 13,916
Income from
discontinued
operations -- -- -- 292 -- 292
Income before
minority
interest 71,089 31,280 -- -- 71,089 31,280
Income allocated
to minority
interests 12,699 5,180 -- -- 12,699 5,180
Net income before
preferred
dividends 58,390 26,100 -- -- 58,390 26,100
Dividends
earned by
preferred
stockholders 10,391 10,026 -- -- 10,391 10,026
Net income
< loss >
to common
stockholders 47,999 16,074 -- -- 47,999 16,074
Average #
of shares
outstanding
- basic 51,733 35,498 51,733 35,498
Average shares
outstanding,
- basic, assuming
full conversion
of OP Units (d) 65,446 46,651 65,446 46,651
Average shares
outstanding
- diluted
for FFO (d) 75,030 59,787 75,030 59,787
Per share income
- diluted before
discontinued
operations -- -- 0.88 0.15
Net income
per share
- basic 0.93 0.45 0.93 0.45
Net income
per share
- diluted 0.92 0.45 0.92 0.45
Dividend declared
per share 1.14 1.10 1.14 1.10
Funds from
operations
"FFO" (b)(d)
- basic 116,657 66,847 116,657 66,847
Funds from
operations
"FFO" (a)(b)(d)
- diluted 127,048 81,680 127,048 81,680
FFO per share
- basic (b)(d) 1.78 1.43 1.78 1.43
FFO per share
- diluted
(a)(b)(d) 1.69 1.37 1.69 1.37
% change in FFO
- diluted 23.94% 23.94%
(a) The Company issued $161,400 of convertible debentures in June and
July, 1997. The debentures were convertible into common shares at a
conversion price of $31.125 per share. The debentures were paid off
in full in December 2002. 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 not assumed converted for purposes
of net income per share for 2003 or 2002 as it would be antidilutive
to that calculation. 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 a supplemental
measure 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
is 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 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
six months ended June 30, 2003 by $65 and $589, respectively, or by
$.00 per share and $.01 per share, respectively. Additionally, the
impact of SFAS No. 141 increased FFO for the three and six months
ended June 30, 2003 by $1.3 million and $2.4 million, respectively,
or by $.017 per share and $.032 per share, respectively. During the
three and six months ended June 30, 2002, there were no outparcel
sales and no impact of SFAS No. 141. The Company did not adopt SFAS
No 141 (see Note (e) below) until 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 and for Macerich Management Company for all periods
presented.
(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 EPS for
the three and six months periods ending June 30, 2003 was
approximately $.02 per share and $.036 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 Boulder Plaza on March 19, 2002
and in accordance with SFAS 144 the results of Boulder Plaza for the
periods from January 1, 2002 to March 19, 2002 have been reclassified
into "discontinued operations" on the consolidated statements of
operations. Additionally, 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 a gain of $2.6 million from
the sale of Gainey Village in June 2003 has been reclassified to
discontinued operations.
June 30 Dec 31
Summarized Balance Sheet Information 2003 2002
(UNAUDITED)
Cash and cash equivalents $79,713 $53,559
Investment in real estate, net (i) $3,035,130 $2,842,177
Investments in unconsolidated entities (j) $561,715 $617,205
Total Assets $3,830,091 $3,662,080
Mortgage and notes payable $2,448,846 $2,291,908
June 30 June 30
Additional financial data as of: 2003 2002
Occupancy of centers (g) 92.40% 92.90%
Comparable quarter change in
same center sales (g)(h) 1.50% 2.90%
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Additional financial data for
the six months ended:
Acquisitions of property and equipment
- including joint ventures prorata $9,303 $160,216
Redevelopment and expansions of centers
- including joint ventures prorata $73,132 $13,516
Renovations of centers - including
joint ventures at prorata $5,508 $1,526
Tenant allowances - including
joint ventures at prorata $3,939 $5,818
Deferred leasing costs - including
joint ventures at prorata $8,972 $7,063
(g) excludes redevelopment properties -- Crossroads Mall - Boulder, and
Parklane Mall.
(h) includes mall and freestanding stores.
(i) includes construction in process on wholly owned assets of $202,886
at June 30, 2003 and $111,517 at December 31, 2002.
(j) the Company's prorata share of construction in process on
unconsolidated entities of $20,265 at June 30, 2003 and $16,147 at
December 31, 2002.
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
For the Three Months For the Six Months
PRORATA SHARE OF Ended June 30, Ended June 30,
JOINT VENTURES Unaudited Unaudited
(Unaudited) (All amounts in (All amounts in
thousands) thousands)
2003 2002 2003 2002
Revenues:
Minimum rents $38,904 $26,955 $78,675 $53,372
Percentage rents 901 617 2,288 1,760
Tenant recoveries 16,814 10,794 32,957 21,456
Management fee (c) 2,666 2,181 5,250 4,315
Other 1,221 572 2,303 1,331
Total revenues 60,506 41,119 121,473 82,234
Expenses:
Shopping center expenses 19,083 13,347 38,199 26,707
Interest expense 13,753 10,616 27,916 21,388
Management company
expense (c) 1,003 1,966 3,013 3,849
Depreciation and
amortization 11,282 7,090 22,940 14,465
Total operating expenses 45,121 33,019 92,068 66,409
Gain (loss) on sale or
writedown of assets (244) (9,000) 202 (10,419)
Gain < loss > on early
extinguishment of debt -- -- -- --
Net income < loss > $15,141 ($900) $29,607 $5,406
For the Three Months For the Six Months
RECONCILIATION OF Ended June 30, Ended June 30,
NET INCOME TO FFO (All amounts in (All amounts in
thousands) thousands)
(UNAUDITED) (UNAUDITED)
2003 2002 2003 2002
Net income < loss >
- available to
common stockholders $28,574 ($1,277) $47,999 $16,074
Adjustments to reconcile
net income to FFO
- basic
Minority interest 7,554 (393) 12,699 5,180
Loss on early
extinguishment of debt -- -- -- --
(Gain ) loss on sale
of wholly owned assets (11,564) 3,041 (11,398) (10,215)
(Gain) loss on sale
or write-down of
assets from
unconsolidated
entities (pro rata) 282 9,000 231 10,419
Depreciation and
amortization on
wholly owned centers 24,575 17,126 48,489 33,750
Depreciation and
amortization on
joint ventures and
from the management
companies (pro rata) 11,282 7,090 22,940 14,465
Less: depreciation on
personal property and
amortization of loan
costs and interest
rate caps (2,137) (1,415) (4,303) (2,826)
Total FFO - basic 58,566 33,172 116,657 66,847
Additional adjustment to
arrive at FFO - diluted
Interest expense and
amortization of loan
costs on the
debentures (e) -- 2,362 4,807
Preferred stock
dividends earned 5,195 5,013 10,391 10,026
Effect of
employee/director
stock incentive plans
FFO - diluted 63,761 40,547 127,048 81,680
Weighted average
shares outstanding
- diluted (d)(e) 75,203 60,529 75,030 59,787
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THE MACERICH COMPANY
RECONCILIATION OF NET INCOME TO EBITDA
For the Three Months For the Six Months
Ended June 30, Ended June 30,
(All amounts in (All amounts in
thousands) thousands)
(UNAUDITED) (UNAUDITED)
2003 2002 2003 2002
Net income < loss >
- available to
common stockholders 28,574 (1,277) 47,999 16,074
Interest expense 32,981 25,036 66,989 50,159
Interest expense
- unconsolidated
entitites (pro rata) 13,753 10,616 27,916 21,388
Depreciation and
amortization
- wholly-owned centers 24,575 17,126 48,489 33,750
Depreciation and
amortization
- unconsolidated
entitites (pro rata) 11,282 7,090 22,940 14,465
Minority interest 7,554 (393) 12,699 5,180
Loss (gain) on sale
of assets
- wholly-owned centers (11,591) 3,041 (11,553) (10,215)
Loss (gain) on sale of
assets - unconsolidated
entities (pro rata) 244 9,000 (202) 10,419
Preferred dividends 5,195 5,013 10,391 10,026
EBITDA (k) $112,567 $75,252 $225,668 $151,246
THE MACERICH COMPANY
RECONCILIATION OF EBITDA TO SAME CENTERS - NET OPERATING INCOME ("NOI")
For the Three Months For the Six Months
Ended June 30, Ended June 30,
(All amounts in (All amounts in
thousands) thousands)
(UNAUDITED) (UNAUDITED)
2003 2002 2003 2002
EBITDA (k) $112,567 $75,252 $225,668 $151,246
Add: REIT general and
administrative
expenses 3,684 2,012 6,020 3,544
Management Company
expenses
- wholly-owned 3,675 1,259 5,411 2,485
Management Company
expenses
- unconsolidated
entity (618) 445 (1,549) 266
EBITDA of
non-comparable
centers (45,689) (8,531) (86,404) (13,754)
SAME CENTERS
- Net operating
income ("NOI") (l) $73,619 $70,437 $149,146 $143,787
(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
CONTACT:
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