02/07/24 at 1:00 PM EST

Q4 2023 Macerich Earnings Conference Call

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The Macerich Company Announces 13 Percent Increase In FFO Per Share

SANTA MONICA, CA. (8/8/97) -- The Macerich Company (NYSE Symbol: MAC) today announced a 13 percent increase in Funds From Operations (FFO) per share to $.53 for the second quarter of 1997, compared to $.47 for the second quarter of 1996. FFO per share for the six months ended June 30, 1997 was $1.04 per share, compared to $0.92 per share for the same period in 1996, also a 13 percent increase. Total revenues for the quarter increased to $52.4 million, from $38.1 million in the second quarter of 1996, a 37 percent increase. Total revenue for the six months ended June 30, 1997 increased to $102.7 million from $73.4 million for the same period in 1996. Net income increased to $6.2 million, or $0.24 per share, for the second quarter of 1997, compared to $4.3 million, or $0.22 per share, for the second quarter of 1996. Net income for the six months ended June 30, 1997 was $12.9 million, or $0.50 per share, compared to $8.7 million, or $0.44 per share, for the same period in 1996.

Total center tenant sales increased 3.0 percent for the second quarter of 1997 and the occupancy level at June 30, 1997 was 90.3 percent, compared to 90.5 percent at June 30, 1996. There were approximately 173,000 square feet of mall and freestanding store leases signed in the second quarter at initial rents of $29.06, compared to expiring rents of $24.92, a 16.6 percent increase.

Commenting on the results for the quarter, Arthur Coppola, President and Chief Executive Officer, stated, "It was another strong quarter for us, highlighted by our ninth consecutive quarter of growth in FFO per share. We had a very strong leasing quarter with rental rates on new leases significantly higher than rents on expiring leases."

Also during the quarter the company had a $161.4 million Euro-Convertible debt offering. The debentures have a 5.5 year term, bear interest at 7.25 percent, and are convertible at $31.125. The proceeds of the offering were used to pay off $157 million of short term floating rate loans, which unencumbered four regional centers.

The Macerich Company is a fully integrated, self-administered and self-managed Real Estate Investment Trust which focuses on the acquisition and redevelopment of regional malls throughout the United States. The Macerich Company is the sole general partner of, and holds a 68 percent partnership interest in, The Macerich Partnership, L.P. Additional information can be obtained by accessing the company's Web site at www.macerich.com.

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