SANTA MONICA, Calif., March 27, 2020 /PRNewswire/ -- The Macerich Company (NYSE: MAC) today announced that in this uncertain environment resulting from the COVID-19 pandemic, the Company has taken important measures to enhance liquidity and financial flexibility. These actions ensure that funds are available to meet the Company's obligations for a sustained period of time as the extent and duration of the pandemic's impact becomes clearer. State and local authorities in several markets in which we operate have required that a large majority of our tenants and components of our centers close or modify activities to further social distancing. It is expected that similar actions will be taken in many of the remaining markets in which the Company operates. Mall traffic and tenant occupancy at properties that remain open have been significantly impacted by this crisis. The Company will continue to work with employees, tenants and relevant authorities to maximize the health and safety of the communities we serve and to re-open locations when possible.
The Company recently borrowed $550 million on its revolving line of credit. Those proceeds combined with cash already on hand give the Company approximately $735 million of cash. The Company has also taken actions to reduce on-going cash outflows such as dramatically reducing all capital expenditures, including the size and pace of its redevelopment investments. In addition, on March 16, 2020, the Company announced that the Board of Directors approved both a reduction in the quarterly dividend and that the dividend would be payable with an aggregate combination of 20% cash and 80% shares of the Company's common stock. This will allow the Company to comply with the REIT taxable income distribution requirements, while retaining capital. The decision to use a stock dividend will be reviewed by the Board on a quarterly basis. The combination of the dividend reduction and the stock dividend will result in the Company retaining incremental cash in excess of $98 million on a quarterly basis, and approximately $400 million if implemented annually.
Given the complex and rapidly evolving circumstances surrounding the Covid-19 pandemic, the Company has withdrawn its previously published 2020 Guidance, and is not providing an updated outlook at this time.
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 currently owns 51 million square feet of real estate consisting primarily of interests in 47 regional shopping centers. Macerich specializes in successful retail properties in many of the country's most attractive, densely populated markets with significant presence in the West Coast, Arizona, Chicago and the Metro New York to Washington, DC corridor. A recognized leader in sustainability, Macerich has achieved the #1 GRESB ranking in the North American Retail Sector for five straight years (2015 – 2019). Additional information about Macerich can be obtained from the Company's website at www.Macerich.com.
Safe Harbor Statement
This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially, including statements related to the amount, timing and form of expected payment of dividends on the Company's common stock, and statements related to the Company's financial performance and dividend policy. For a list and description of such risks and uncertainties, see the reports and other filings by the Company with the U.S. Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Macerich Company
Thomas O'Hern, Chief Executive Officer and Scott Kingsmore, Sr. Executive Vice President and Chief Financial Officer, (310) 394-6000