SANTA MONICA, Calif., Dec. 16 /PRNewswire-FirstCall/ -- The Macerich Company (NYSE: MAC) today announced guidance to investors regarding the Company's expected funds from operations-diluted ("FFO") per share and net income available to common shareholders per share ("EPS") for 2004.
Management currently estimates that FFO per share for 2004 will be in the range of $3.78 to $3.88 and EPS is estimated to be in the range of $1.85 to $1.95.
Guidance for 2004 and reconciliation of EPS to FFO per share and to EBITDA
per share:
Range per share:
Fully Diluted EPS $1.85...........$1.95
Plus: Real Estate Depreciation and
Amortization $2.03.......... $2.03
Less: impact of preferred shares
(not dilutive to EPS) ($.10)..........($.10)
Less: Gain on Sale of Assets $.00........... $.00
Fully Diluted FFO per share $3.78.......... $3.88
Plus: Interest Expense per share $2.60...........$2.60
Plus: Non real estate depreciation,
income taxes and ground rent expense
per share $.17............$.17
EBITDA per share $6.55...........$6.65
Less: management company expenses, REIT
General and administrative expenses
and EBITDA of non-comparable centers ($.83)..........($.83)
Same center EBITDA per share $5.72...........$5.82
This range is based on many assumptions, including the following:
Management expects 2004 same center EBITDA to grow at a 2.5% to 3.0% rate compared to 2003 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 2.5% by year-end 2004.
Management's guidance regarding FFO per share and EPS in 2004 reflects the adverse earnings impact estimated at approximately $.08 per share due to the refinancing of Flatiron mall, Northridge mall, Chandler Gateway and Chandler Festival and the $250 million swap of corporate unsecured debt. These transactions were completed or negotiated in late 2003 and converted or swapped floating rate debt to fixed rate debt.
The $275 million expansion of Queens Center is in process and management's guidance assumes that Phase-I of the project, approximately 55% of the expansion, will be completed and open by May 2004. Phase-II of the expansion, the remaining 45%, is forecast to be completed with tenants opening in December 2004 and early 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 previously disclosed. The Company is not able to assess at this time the potential impact of such exclusions on future EPS and FFO per share. FFO does not include gains or losses on sales of depreciated operating assets.
The above statements are based on management's current expectations and are subject to the forward-looking statement caveat described below.
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 82% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 58 million square feet of gross leaseable area consisting primarily of interests in 57 regional malls. Additional information about The Macerich Company can be obtained from the Company's web site at www.macerich.com .
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, interest rate fluctuations 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 that 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.
SOURCE The Macerich Company
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