SANTA MONICA, Calif., Aug 09, 2010 /PRNewswire via COMTEX/ --
The Macerich Company (NYSE: MAC) today announced results of operations for the quarter ended June 30, 2010 which included total funds from operations ("FFO") diluted of $77.5 million or $.57 per share-diluted, compared to $.67 per share-diluted for the quarter ended June 30, 2009. Net loss available to common stockholders for the quarter ended June 30, 2010 was $.4 million or $.01 per share-diluted compared to net loss available to common stockholders of $21.7 million or $.29 per share-diluted for the quarter ended June 30, 2009. 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 loss to FFO and net loss per common share-diluted ("EPS") to FFO per share-diluted is included in the financial tables accompanying this press release.
Recent Highlights:
- During the quarter, same center net operating income increased by 2.0%.
- Occupancy increased to 91.8% at June 30, 2010, up from 90.5% at June 30, 2009.
- Mall total tenant sales increased 3.3% for the quarter compared to the quarter ended June 30, 2009.
- In April, the Company issued 31 million shares of common stock raising net proceeds in excess of $1.2 billion.
- On August 6th, the Company celebrated the grand opening of the new Santa Monica Place, a 524,000 square-foot, three-level, open-air retail project anchored by Bloomingdale's and Nordstrom.
Commenting on the quarter and recent events, Arthur Coppola chairman and chief executive officer of Macerich stated, "We saw very solid and improving results for the quarter. We had strong occupancy gains, positive same center NOI growth and positive releasing spreads. In addition we continue to see improvement in the capital markets and we have been able to capitalize on that with some very attractive financings.
We are also very pleased with last Friday's grand opening of the new Santa Monica Place. Many of the world's best retail brands are there, drawn by the outstanding quality of this project and the rare opportunity to locate in the highly desirable community of Santa Monica. The strong leasing demand for this project demonstrates that retailers will respond to a project with vision, location and top-quality execution even during challenging economic times."
Redevelopment Update
On August 6, 2010, Macerich celebrated the grand opening of the new Santa Monica Place, a 524,000 square-foot, three-level, open-air retail and dining destination just two blocks from the beach. Bloomingdale's, a majority of retailers and the third-level Dining Deck opened as Macerich debuted the new Santa Monica Place. The project is 92% leased and 97% committed, with Nordstrom and Tory Burch opening August 27th, Tiffany & Co. slated to open September 2010 and The Market at Santa Monica Place planned for the first half of 2011. Retailers that opened alongside Bloomingdale's include Louis Vuitton, Barneys Co-op, Nike, CB2, Ted Baker, Betsey Johnson, Disney, Hugo Boss, Michael Kors, Juicy Couture and Kitson LA. Photos and more information on the grand opening can be found at: http://www.macerich.com/FileManager/Corporate/News/Macerich/smp_grand_opening_8-6-10.pdf
On May 7, a relocated and expanded 138,000-square-foot Nordstrom and 35,000 square feet of new small shop space opened at Los Cerritos Center, Macerich's high-performing, super-regional shopping center in Southern California. The project is 100% leased and new retailers include True Religion, Love Culture, MAC Cosmetics, Foreign Exchange, Carlton Hair and Vision Shoes.
Financing Activity
Transactions completed or committed to in 2010 total over $640 million. Recent activity includes:
The Company has arranged a $114 million refinancing of Stonewood Center. The new loan is a seven year fixed rate loan with an interest rate of 4.6%. This transaction will pay off the old loan of $71 million with an interest rate of 7.41%.
The Company has also agreed to a $250 million loan on Danbury Fair Mall. The new loan has a fixed interest rate of 5.50% and has a ten year maturity. It will pay off the existing loan of $160 million with a 7.51% interest rate which was scheduled to mature in 2011.
Upon completion of the above transactions, the Company will have only $118 million of remaining loan maturities for 2010.
Dividend
On July 29, 2010, the Board of Directors of the Company declared a quarterly cash dividend of $.50 per share of common stock. The dividend is payable on September 8, 2010 to stockholders of record at the close of business on August 20, 2010.
Macerich 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. Macerich now owns approximately 73 million square feet of gross leaseable area consisting primarily of interests in 71 regional malls. Additional information about Macerich can be obtained from the Company's website 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 http://www.macerich.com/ (Investing Section) and through CCBN at http://www.earnings.com/. The call begins today, August 9, 2010 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 http://www.macerich.com/ (Investing Section) will be available for one year after the call.
The Company will publish a supplemental financial information package which will be available at http://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 Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2009 and the Quarterly Reports on Form 10-Q, for a discussion of such risks and uncertainties, which discussion is incorporated herein by reference. The Company does not intend, and undertakes no obligation, to update any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events unless required by law to do so.
(See attached tables)
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results of Operations:
Results before
Discontinued Operations
(a)
------------------------
For the Three Months
Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
Minimum rents $102,509 $123,504
Percentage rents 3,108 2,686
Tenant recoveries 57,259 62,530
Management Companies' revenues 12,117 9,345
Other income 6,887 7,850
----- -----
Total revenues 181,880 205,915
-------------- ------- -------
Shopping center and operating expenses 56,731 67,565
Management Companies' operating expenses 24,466 18,872
Income tax benefit (1,375) (380)
Depreciation and amortization 59,913 63,740
REIT general and administrative expenses 3,642 4,648
Interest expense 52,238 71,914
(Loss) gain on early extinguishment of
debt (489) 7,127
Gain (loss) on sale or write down of
assets 510 (25,605)
Co-venture interests (b) (1,993) -
Equity in income of unconsolidated joint
ventures 15,762 14,556
Income (loss) income from continuing
operations 55 (24,366)
Discontinued operations:
Loss on sale or write down of assets - -
(Loss) income from discontinued operations - -
Total loss from discontinued operations - -
Net income (loss) 55 (24,366)
Less net (loss) income attributable to
noncontrolling interests 495 (2,630)
Net loss attributable to the Company (440) (21,736)
Less preferred dividends - -
--- ---
Net loss available to common stockholders ($440) ($21,736)
----------------------------------------- ----- --------
Average number of shares outstanding -
basic 123,446 77,270
-------------------------------------- ------- ------
Average shares outstanding, assuming full
conversion of OP Units (c) 135,495 88,970
------- ------
Average shares outstanding -Funds From
Operations ("FFO") -diluted (c) 135,495 88,970
-------------------------------------- ------- ------
Per share (loss) income- diluted before
discontinued operations - -
--------------------------------------- --- ---
Net loss per share-basic ($0.01) ($0.29)
------------------------ ------ ------
Net loss per share - diluted (c) ($0.01) ($0.29)
------ ------
Dividend declared per share $0.50 $0.60
--------------------------- ----- -----
FFO - basic (c) (d) $77,466 $59,920
-------------------- ------- -------
FFO - diluted (c) (d) $77,466 $59,920
--------------------- ------- -------
FFO per share- basic (c) (d) $0.57 $0.67
------------------------------ ----- -----
FFO per share- diluted (c) (d) $0.57 $0.67
------------------------------- ----- -----
Results of Operations:
Impact of
Discontinued Operations
(a)
------------------------
For the Three Months
Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
Minimum rents 1 ($2,935)
Percentage rents - (17)
Tenant recoveries - (765)
Management Companies' revenues - -
Other income - (23)
--- ---
Total revenues 1 (3,740)
-------------- --- ------
Shopping center and operating expenses (21) (1,653)
Management Companies' operating expenses - -
Income tax benefit - -
Depreciation and amortization - (1,438)
REIT general and administrative expenses - -
Interest expense - -
(Loss) gain on early extinguishment of debt - -
Gain (loss) on sale or write down of assets 72 26,995
Co-venture interests (b) - -
Equity in income of unconsolidated joint
ventures - -
Income (loss) income from continuing
operations 94 26,346
Discontinued operations:
Loss on sale or write down of assets (72) (26,995)
(Loss) income from discontinued operations (22) 649
Total loss from discontinued operations (94) (26,346)
Net income (loss) - -
Less net (loss) income attributable to
noncontrolling interests - -
Net loss attributable to the Company - -
Less preferred dividends - -
--- ---
Net loss available to common stockholders - -
----------------------------------------- --- ---
Average number of shares outstanding - basic
--------------------------------------------
Average shares outstanding, assuming full
conversion of OP Units (c)
Average shares outstanding -Funds From
Operations ("FFO") -diluted (c)
--------------------------------------
Per share (loss) income- diluted before
discontinued operations
---------------------------------------
Net loss per share-basic
------------------------
Net loss per share - diluted (c)
Dividend declared per share
---------------------------
FFO - basic (c) (d)
--------------------
FFO - diluted (c) (d)
---------------------
FFO per share- basic (c) (d)
------------------------------
FFO per share- diluted (c) (d)
-------------------------------
Results of Operations:
Results after
Discontinued Operations
(a)
------------------------
For the Three Months
Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
Minimum rents $102,510 $120,569
Percentage rents 3,108 2,669
Tenant recoveries 57,259 61,765
Management Companies' revenues 12,117 9,345
Other income 6,887 7,827
----- -----
Total revenues 181,881 202,175
-------------- ------- -------
Shopping center and operating expenses 56,710 65,912
Management Companies' operating expenses 24,466 18,872
Income tax benefit (1,375) (380)
Depreciation and amortization 59,913 62,302
REIT general and administrative expenses 3,642 4,648
Interest expense 52,238 71,914
(Loss) gain on early extinguishment of debt (489) 7,127
Gain (loss) on sale or write down of assets 582 1,390
Co-venture interests (b) (1,993) -
Equity in income of unconsolidated joint ventures 15,762 14,556
Income (loss) income from continuing operations 149 1,980
Discontinued operations:
Loss on sale or write down of assets (72) (26,995)
(Loss) income from discontinued operations (22) 649
Total loss from discontinued operations (94) (26,346)
Net income (loss) 55 (24,366)
Less net (loss) income attributable to
noncontrolling interests 495 (2,630)
Net loss attributable to the Company (440) (21,736)
Less preferred dividends - -
--- ---
Net loss available to common stockholders ($440) ($21,736)
----------------------------------------- ----- --------
Average number of shares outstanding - basic 123,446 77,270
-------------------------------------------- ------- ------
Average shares outstanding, assuming full
conversion of OP Units (c) 135,495 88,970
------- ------
Average shares outstanding -Funds From Operations
("FFO") -diluted (c) 135,495 88,970
------------------------------------------------- ------- ------
Per share (loss) income- diluted before
discontinued operations ($0.01) $0.01
--------------------------------------- ------ -----
Net loss per share-basic ($0.01) ($0.29)
------------------------ ------ ------
Net loss per share - diluted (c) ($0.01) ($0.29)
------ ------
Dividend declared per share $0.50 $0.60
--------------------------- ----- -----
FFO - basic (c) (d) $77,466 $59,920
-------------------- ------- -------
FFO - diluted (c) (d) $77,466 $59,920
--------------------- ------- -------
FFO per share- basic (c) (d) $0.57 $0.67
------------------------------ ----- -----
FFO per share- diluted (c) (d) $0.57 $0.67
------------------------------- ----- -----
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results of Operations:
Results before
Discontinued Operations
(a)
-----------------------
For the Six Months
Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
Minimum rents $204,485 $250,976
Percentage rents 6,095 5,487
Tenant recoveries 118,268 127,441
Management Companies' revenues 22,339 17,885
Other income 12,804 14,904
------ ------
Total revenues 363,991 416,693
-------------- ------- -------
Shopping center and operating expenses 117,663 138,346
Management Companies' operating expenses 46,653 42,302
Income tax benefit (2,590) (1,181)
Depreciation and amortization 119,128 128,651
REIT general and administrative expenses 11,160 9,906
Interest expense 107,649 141,852
(Loss) gain on early extinguishment of
debt (489) 29,601
Gain (loss) on sale or write down of
assets 511 (24,849)
Co-venture interests (b) (3,377) -
Equity in income of unconsolidated joint
ventures 32,221 30,482
(Loss) income from continuing operations (6,806) (7,949)
Discontinued operations:
Loss on sale or write down of assets - -
(Loss) income from discontinued operations - -
Total loss from discontinued operations - -
Net loss (6,806) (7,949)
Less net loss attributable to
noncontrolling interests (9) (229)
Net loss attributable to the Company (6,797) (7,720)
Less preferred dividends - -
Net loss available to common stockholders ($6,797) ($7,720)
----------------------------------------- ------- -------
Average number of shares outstanding -
basic 110,271 77,082
-------------------------------------- ------- ------
Average shares outstanding, assuming full
conversion of OP Units (c) 122,379 88,759
------- ------
Average shares outstanding -Funds From
Operations ("FFO") -diluted (c) 122,379 88,759
-------------------------------------- ------- ------
Per share (loss) income- diluted before
discontinued operations - -
--------------------------------------- --- ---
Net loss per share-basic ($0.08) ($0.12)
------------------------ ------ ------
Net loss per share - diluted (c) ($0.08) ($0.12)
------ ------
Dividend declared per share $1.10 $1.40
--------------------------- ----- -----
FFO - basic (c) (d) $149,063 $162,760
-------------------- -------- --------
FFO - diluted (c) (d) $149,063 $162,760
--------------------- -------- --------
FFO per share- basic (c) (d) $1.22 $1.83
------------------------------ ----- -----
FFO per share- diluted (c) (d) $1.22 $1.83
------------------------------- ----- -----
Impact of
Discontinued Operations
(a)
-----------------------
For the Six Months
Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
Minimum rents 5 ($7,198)
Percentage rents - (17)
Tenant recoveries - (1,530)
Management Companies' revenues - -
Other income - (50)
--- ---
Total revenues 5 (8,795)
-------------- --- ------
Shopping center and operating expenses (133) (3,010)
Management Companies' operating expenses - -
Income tax benefit - -
Depreciation and amortization - (2,874)
REIT general and administrative expenses - -
Interest expense - 4
(Loss) gain on early extinguishment of debt - -
Gain (loss) on sale or write down of assets 71 27,012
Co-venture interests (b) - -
Equity in income of unconsolidated joint
ventures - -
(Loss) income from continuing operations 209 24,097
Discontinued operations:
Loss on sale or write down of assets (71) (27,012)
(Loss) income from discontinued operations (138) 2,915
Total loss from discontinued operations (209) (24,097)
Net loss - -
Less net loss attributable to noncontrolling
interests - -
Net loss attributable to the Company - -
Less preferred dividends - -
Net loss available to common stockholders - -
----------------------------------------- --- ---
Average number of shares outstanding - basic
--------------------------------------------
Average shares outstanding, assuming full
conversion of OP Units (c)
Average shares outstanding -Funds From
Operations ("FFO") -diluted (c)
--------------------------------------
Per share (loss) income- diluted before
discontinued operations
---------------------------------------
Net loss per share-basic
------------------------
Net loss per share - diluted (c)
Dividend declared per share
---------------------------
FFO - basic (c) (d)
--------------------
FFO - diluted (c) (d)
---------------------
FFO per share- basic (c) (d)
------------------------------
FFO per share- diluted (c) (d)
-------------------------------
Results after
Discontinued Operations
(a)
-----------------------
For the Six Months
Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
Minimum rents $204,490 $243,778
Percentage rents 6,095 5,470
Tenant recoveries 118,268 125,911
Management Companies' revenues 22,339 17,885
Other income 12,804 14,854
Total revenues 363,996 407,898
-------------- ------- -------
Shopping center and operating expenses 117,530 135,336
Management Companies' operating expenses 46,653 42,302
Income tax benefit (2,590) (1,181)
Depreciation and amortization 119,128 125,777
REIT general and administrative expenses 11,160 9,906
Interest expense 107,649 141,856
(Loss) gain on early extinguishment of debt (489) 29,601
Gain (loss) on sale or write down of assets 582 2,163
Co-venture interests (b) (3,377) -
Equity in income of unconsolidated joint ventures 32,221 30,482
(Loss) income from continuing operations (6,597) 16,148
Discontinued operations:
Loss on sale or write down of assets (71) (27,012)
(Loss) income from discontinued operations (138) 2,915
Total loss from discontinued operations (209) (24,097)
Net loss (6,806) (7,949)
Less net loss attributable to noncontrolling
interests (9) (229)
Net loss attributable to the Company (6,797) (7,720)
Less preferred dividends - -
Net loss available to common stockholders ($6,797) ($7,720)
----------------------------------------- ------- -------
Average number of shares outstanding - basic 110,271 77,082
-------------------------------------------- ------- ------
Average shares outstanding, assuming full
conversion of OP Units (c) 122,379 88,759
------- ------
Average shares outstanding -Funds From Operations
("FFO") -diluted (c) 122,379 88,759
------------------------------------------------- ------- ------
Per share (loss) income- diluted before
discontinued operations ($0.08) $0.15
--------------------------------------- ------ -----
Net loss per share-basic ($0.08) ($0.12)
------------------------ ------ ------
Net loss per share - diluted (c) ($0.08) ($0.12)
------ ------
Dividend declared per share $1.10 $1.40
--------------------------- ----- -----
FFO - basic (c) (d) $149,063 $162,760
-------------------- -------- --------
FFO - diluted (c) (d) $149,063 $162,760
--------------------- -------- --------
FFO per share- basic (c) (d) $1.22 $1.83
------------------------------ ----- -----
FFO per share- diluted (c) (d) $1.22 $1.83
------------------------------- ----- -----
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(a) The following dispositions impacted the
results for the three and six months ended June
30, 2010 and 2009:
During the twelve months ended December 31, 2009,
the Company sold six non-core community centers
for $83.2 million and sold five Kohl's stores for approximately
$52.7 million. As a result of these sales, the Company
has classified the results of operations to discontinued operations
for all periods presented.
(b) This represents the outside partners'
allocation of net income in the Chandler Fashion
Center/Freehold Raceway Mall joint venture.
(c) The Macerich Partnership, L.P. (the "Operating
Partnership" or the "OP") has operating
partnership units ("OP units"). OP units can be converted
into shares 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.
(d) The Company uses FFO in addition to net income
(loss) 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 (loss)
as defined by GAAP and is not indicative of cash
available to fund all cash flow needs. The Company
also cautions that 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 amortization of above/below
market leases have been included in FFO.
The inclusion of gains on sales of undepreciated
assets increased FFO for the three and six months
ended June 30, 2010 and 2009 by $0.4 million,
$0.4 million, $1.1 million and $2.5 million, respectively, or by
$0.00 per share, $0.00 per share, $0.01 per share and $0.03 per
share, respectively.
Additionally, amortization of above/below market
leases increased FFO for the three and six months
ended June 30, 2010 and 2009 by $2.9 million,
$5.8 million, $3.0 million and $7.2 million, respectively, or by
$0.02 per share, $0.05 per share, $0.03 per share and $0.08 per
share, respectively.
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Pro rata share
of
unconsolidated
joint ventures:
For the Three Months For the Six Months
Ended June 30, Ended June 30,
-------------- --------------
Unaudited Unaudited
--------- ---------
2010 2009 2010 2009
---- ---- ---- ----
Revenues:
Minimum rents $73,350 $64,941 $147,401 $131,977
Percentage rents 1,757 1,458 3,653 2,855
Tenant
recoveries 35,751 31,822 73,065 63,877
Other 4,636 3,213 8,819 6,648
Total revenues 115,494 101,434 232,938 205,357
------- ------- ------- -------
Expenses:
Shopping center
and operating
expenses 40,231 35,195 82,047 71,174
Interest expense 31,293 25,797 62,385 51,299
Depreciation and
amortization 28,753 25,908 56,208 52,409
Total operating
expenses 100,277 86,900 200,640 174,882
------- ------ ------- -------
Gain on sale or
write down of
assets 428 3 366 11
Loss on early
extinguishment
of debt - - (689) -
Equity in income
(loss) of joint
ventures 117 19 246 (4)
Net income $15,762 $14,556 $32,221 $30,482
------- ------- ------- -------
Reconciliation of Net loss to FFO (d):
For the Three Months
Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
Net loss -available to common
stockholders ($440) ($21,736)
Adjustments to reconcile net loss to
FFO -basic
Noncontrolling interests in OP 52 (3,293)
(Gain) loss on sale or write down of
consolidated assets (510) 25,605
plus gain on undepreciated asset sales
-consolidated assets - 1,143
plus non-controlling interests share
of (loss) gain on sale or write down
of consolidated
joint ventures (32) 310
less write down of consolidated assets - (27,058)
Loss (gain) on sale or write-down of
assets from
unconsolidated entities (pro rata) (428) (3)
plus gain on undepreciated asset sales
-unconsolidated entities (pro rata
share) 427 3
less write down of assets -
unconsolidated entities (pro rata
share) - -
Depreciation and amortization on
consolidated assets 59,913 63,740
Less depreciation and amortization
allocable to noncontrolling interests
on consolidated joint ventures (6,497) (1,064)
Depreciation and amortization on joint
ventures (pro rata) 28,753 25,908
Less: depreciation on personal
property (3,772) (3,635)
Total FFO - basic 77,466 59,920
Additional adjustment to arrive at FFO
-diluted:
Preferred units - dividends - -
Total FFO - diluted $77,466 $59,920
------- -------
For the Six Months
Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
Net loss -available to common
stockholders ($6,797) ($7,720)
Adjustments to reconcile net loss to
FFO -basic
Noncontrolling interests in OP (746) (1,169)
(Gain) loss on sale or write down of
consolidated assets (511) 24,849
plus gain on undepreciated asset sales
-consolidated assets - 2,497
plus non-controlling interests share
of (loss) gain on sale or write down
of consolidated
joint ventures (32) 310
less write down of consolidated assets - (27,639)
Loss (gain) on sale or write-down of
assets from
unconsolidated entities (pro rata) (366) (11)
plus gain on undepreciated asset sales
-unconsolidated entities (pro rata
share) 396 2
less write down of assets -
unconsolidated entities (pro rata
share) (32) -
Depreciation and amortization on
consolidated assets 119,128 128,651
Less depreciation and amortization
allocable to noncontrolling interests
on consolidated joint ventures (11,590) (2,130)
Depreciation and amortization on joint
ventures (pro rata) 56,208 52,409
Less: depreciation on personal property (6,595) (7,289)
Total FFO - basic 149,063 162,760
Additional adjustment to arrive at FFO
-diluted:
Preferred units - dividends - -
Total FFO - diluted $149,063 $162,760
-------- --------
Reconciliation of EPS to FFO per diluted share:
For the Three Months
Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
Earnings per share - diluted ($0.01) ($0.29)
Per share impact of depreciation and
amortization of real estate 0.58 0.96
FFO per share - diluted $0.57 $0.67
----- -----
For the Six Months
Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
Earnings per share - diluted ($0.08) ($0.12)
Per share impact of depreciation and
amortization of real estate 1.30 1.95
FFO per share - diluted $1.22 $1.83
----- -----
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
For the Three Months
Reconciliation of Net loss to EBITDA: Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
Net loss -available to common
stockholders ($440) ($21,736)
Interest expense -consolidated
assets 52,238 71,914
Interest expense -unconsolidated
entities (pro rata) 31,293 25,797
Depreciation and amortization -
consolidated assets 59,913 63,740
Depreciation and amortization -
unconsolidated entities (pro rata) 28,753 25,908
Noncontrolling interests in OP 52 (3,293)
Less: Interest expense and
depreciation and amortization
allocable to noncontrolling interests
on consolidated joint ventures (10,391) (1,471)
Loss (gain) on early extinguishment
of debt 489 (7,127)
Loss on early extinguishment of debt
-unconsolidated entities (pro rata) - -
Loss (gain) on sale or write down of
assets -consolidated assets (510) 25,605
Loss (gain) on sale or write down of
assets -unconsolidated entities
(pro rata) (428) (3)
Add: Non-controlling interests share
of (loss) gain on sale of
consolidated joint ventures (32) 310
Add: Non-controlling interests share
of gain on sale of unconsolidated
entities 93 -
Income tax (benefit) expense (1,375) (380)
Distributions on preferred units 208 171
EBITDA (e) $159,863 $179,435
-------- --------
For the Six Months
Reconciliation of Net loss to EBITDA: Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
Net loss -available to common
stockholders ($6,797) ($7,720)
Interest expense -consolidated assets 107,649 141,852
Interest expense -unconsolidated
entities (pro rata) 62,385 51,299
Depreciation and amortization -
consolidated assets 119,128 128,651
Depreciation and amortization -
unconsolidated entities (pro rata) 56,208 52,409
Noncontrolling interests in OP (746) (1,169)
Less: Interest expense and
depreciation and amortization
allocable to noncontrolling interests
on consolidated joint ventures (18,390) (2,959)
Loss (gain) on early extinguishment of
debt 489 (29,601)
Loss on early extinguishment of debt -
unconsolidated entities (pro rata) 689 -
Loss (gain) on sale or write down of
assets -consolidated assets (511) 24,849
Loss (gain) on sale or write down of
assets -unconsolidated entities (pro
rata) (366) (11)
Add: Non-controlling interests share
of (loss) gain on sale of
consolidated joint ventures (32) 310
Add: Non-controlling interests share
of gain on sale of unconsolidated
entities 93 -
Income tax (benefit) expense (2,590) (1,181)
Distributions on preferred units 416 415
EBITDA (e) $317,625 $357,144
-------- --------
Reconciliation of EBITDA to Same Centers -Net Operating Income
("NOI"):
For the Three Months
Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
EBITDA (e) $159,863 $179,435
Add: REIT general and administrative
expenses 3,642 4,648
Management Companies' revenues (12,117) (9,345)
Management Companies' operating
expenses 24,466 18,872
Lease termination income of comparable
centers (1,295) (1,154)
EBITDA of non-comparable centers (27,852) (48,650)
Same Centers - NOI (f) $146,707 $143,806
-------- --------
For the Six Months
Ended June 30,
--------------
Unaudited
---------
2010 2009
---- ----
EBITDA (e) $317,625 $357,144
Add: REIT general and administrative
expenses 11,160 9,906
Management Companies' revenues (22,339) (17,885)
Management Companies' operating expenses 46,653 42,302
Lease termination income of comparable
centers (2,569) (2,696)
EBITDA of non-comparable centers (56,085) (99,846)
Same Centers - NOI (f) $294,445 $288,925
-------- --------
(e) EBITDA represents earnings before interest, income taxes,
depreciation, amortization, noncontrolling interests, 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.
(f) 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 above/below market adjustments to minimum rents.
SOURCE Macerich Company