UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) May 4, 2007

THE MACERICH COMPANY

(Exact Name of Registrant as Specified in its Charter)

MARYLAND

 

1-12504

 

95-4448705

(State or Other Jurisdiction of

 

(Commission File Number)

 

(I.R.S. Employer Identification No.)

Incorporation)

 

 

 

 

 

401 Wilshire Boulevard, Suite 700, Santa Monica, California 90401

(Address of principal executive office, including zip code)

Registrant’s telephone number, including area code  (310) 394-6000

N/A

(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 




ITEM 2.02             RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

The Company issued a press release on May 4, 2007, announcing results of operations for the Company for the quarter ended March 31, 2007 and such press release is furnished as Exhibit 99.1 hereto.

The press release included as an exhibit with this report is being furnished pursuant to Item 2.02 and Item 7.01 of Form 8-K and shall not be deemed to be “filed” with the SEC or incorporated by reference into any other filing with the SEC.

ITEM 7.01             REGULATION FD DISCLOSURE.

On May 4, 2007, the Company made available on its website a quarterly financial supplement containing financial and operating information of the Company (“Supplemental Financial Information”) for the three months ended March 31, 2007 and such Supplemental Financial Information is furnished as Exhibit 99.2 hereto.

The Supplemental Financial Information included as an exhibit with this report is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed to be “filed” with the SEC or incorporated by reference into any other filing with the SEC.

ITEM 9.01             FINANCIAL STATEMENTS AND EXHIBITS.

Listed below are the financial statements, pro forma financial information and exhibits furnished as part of this report:

(a), (b) and (c) Not applicable.

(d) Exhibits.

Exhibit Index attached hereto and incorporated herein by reference.

2




SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, The Macerich Company has duly caused this report to be signed by the undersigned, hereunto duly authorized, in the City of Santa Monica, State of California, on May 4, 2007.

THE MACERICH COMPANY

 

 

 

 

 

By: THOMAS E. O’HERN

 

 

 

 

 

/s/ Thomas E. O’Hern

 

 

Executive Vice President,

 

 

Chief Financial Officer

 

 

and Treasurer

 

 

3




EXHIBIT INDEX

 

EXHIBIT

 

 

NUMBER

 

NAME

 

 

 

99.1

 

Press Release dated May 4, 2007

 

 

 

99.2

 

Supplemental Financial Information for the three months ended March 31, 2007

 

4



Exhibit 99.1

PRESS RELEASE

THE MACERICH COMPANY

 

 

Press Contact:

Arthur Coppola, President and Chief Executive Officer

 

 

 

or

 

 

 

Thomas E. O’Hern, Executive Vice President and

 

Chief Financial Officer

 

 

 

(310) 394-6000

 

MACERICH ANNOUNCES FIRST QUARTER RESULTS

Santa Monica, CA (5/04/07) - - The Macerich Company (NYSE Symbol: MAC) today announced results of operations for the quarter ended March 31, 2007 which included funds from operations (“FFO”) per share—diluted of $.96 compared to $1.05 for the quarter ended March 31, 2006. Total FFO—diluted was $85.1 million for the quarter compared to $90.1 million for the quarter ended March 31, 2006.  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 income per common share-diluted (“EPS”) to FFO per share-diluted is included in the financial tables accompanying this press release.

Net income available to common stockholders for the quarter ended March 31, 2007 was $2.6 million or $.04 per share-diluted compared to $7.4 million or $.11 per share-diluted for the quarter ended March 31, 2006.   A reconciliation of net income to FFO is included in the financial highlights section of this press release.

Recent highlights:

·                  During the quarter, Macerich signed 359,000 square feet of specialty store leases at average initial rents of $42.61 per square foot.  Starting base rent on new lease signings was 23.8% higher than the expiring base rent.

·                  Total same center tenant sales, for the quarter ended March 31, 2007, were up 5.5% compared to sales for the quarter ended March 31, 2006.  Tenant sales-per square-foot for the portfolio were $454 up 7.1% from March 31, 2006.

·                  Portfolio occupancy at March 31, 2007 was 92.8% compared to 92.5% at March 31, 2006.  On a same center basis, occupancy was 92.8% at March 31, 2007 compared to 92.8% at March 31, 2006.

·                  In March 2007, the Company issued $950 million of 3.25% convertible notes.  The net proceeds were used primarily to pay off short-term, higher coupon floating rate debt.  The Company’s floating rate debt as a percentage of total debt has been decreased to 8%.  As a result of paying off the floating rate debt, a $.9 million loss on early extinguishment of debt was reflected in the quarter.

Commenting on results, Arthur Coppola president and chief executive officer of Macerich stated, “The quarter was highlighted by solid fundamentals in our business with continued high occupancy levels, strong tenant sales and excellent releasing spreads.




Our refinancing efforts during the quarter have allowed us to significantly strengthen our balance sheet.  We are well positioned to take advantage of the pipeline of development and redevelopment opportunities in our existing portfolio such as the new regional mall under construction at SanTan Village and the major redevelopment of The Oaks mall.”

During the quarter lease termination revenues, including joint ventures at pro rata share, dropped to $3.4 million from $9.0 million in the quarter ended March 31, 2006.

Redevelopment and Development Activity

Scheduled to open in October 2007, Phase I of SanTan Village, a 120 acre open-air regional shopping center under construction in Gilbert, Arizona, will consist of approximately 130 retailers occupying in excess of 1.2 million square feet.  Fourteen new leases were recently announced including Anchor Blue, Avante Salon and Spa, Brio Tuscan Grille, Dick’s Sporting Goods, Finish Line, Forever 21,  Journey’s, Johnny Rockets, Sunglass Icon, Torrid, Wet Seal and Zumiez. The center is currently 87% leased. The other retail phases are expected to be completed by late 2008.

Construction continues on The Promenade at Casa Grande, a 1-million-square-foot regional shopping center currently under development in Arizona’s Pinal County on the I-10 corridor between Phoenix and Tucson.  Phase I is scheduled to open in fall 2007.  The project is 90% committed.  New deals announced for the project include Best Buy, Dillards, Famous Footwear, Harkin’s Theaters, JC Penney, Kohl’s, Lane Bryant, Michaels, Petsmart, Staples, Shoe Pavilion and Target.  Phase II is scheduled to open in spring 2008.

The major redevelopment and expansion of The Oaks continues. The Oaks is a 1.1-million-square-foot super-regional shopping center in California’s affluent Thousand Oaks.  The Company is adding a 235,000-square-foot mall expansion and the market’s first Nordstrom department store.  The project is expected to be completed in fall 2008.

At Freehold Raceway Mall in New Jersey, construction is underway on the 100,000-square-foot, $40 million lifestyle expansion.  The project is 90% committed.  In addition, an interior renovation of the existing 1.4 million-square-foot regional shopping center commenced in the first quarter.  Both projects are expected to be substantially complete in the fourth quarter of 2007.

Financing Activity

On March 16, 2007, the Company issued $950 million of convertible notes.  The notes will pay interest semiannually at a rate of 3.25% per annum and mature on March 15, 2012.  The initial conversion price of approximately $111.48 represents a 20% premium to the closing price of the Company’s common stock on March 12, 2007.  In addition, the Company entered into capped call transactions with the initial purchasers of the notes.  These agreements effectively increase the conversion price of the notes to approximately $130.06, which represents a 40% premium to the March 12, 2007 closing price of $92.90 per common share of the Company.  Concurrent with the debt offering, the Company repurchased $75 million (807,000 shares) of the Company’s common stock.




Earnings Guidance

Management is reaffirming its prior guidance for FFO-diluted per share for 2007 in the range of $4.58 to $4.68.

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 85% ownership interest in The Macerich Partnership, L.P.  Macerich now owns approximately 77 million square feet of gross leaseable area consisting primarily of interests in 73 regional malls.  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 and through CCBN at www.earnings.com.  The call begins today, May 4, 2007 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 one 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, anchor or tenant bankruptcies, closures, mergers or consolidations, lease rates and terms, interest rate fluctuations, 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 (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, 2006, for a discussion of such risks and uncertainties, which discussion is incorporated herein by reference.

(See attached tables)
##




THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

 

 

Results before SFAS 144 (e)

 

Impact of SFAS 144 (e)

 

Results after SFAS 144 (e)

 

 

 

For the Three Months

 

For the Three Months

 

For the Three Months

 

 

 

Ended March 31,

 

Ended March 31,

 

Ended March 31,

 

 

 

Unaudited

 

Unaudited

 

 

 

2007

 

2006

 

2007

 

2006

 

2007

 

2006

 

Results of Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Minimum rents

 

$

123,995

 

$

133,587

 

$

(10

)

$

(11,498

)

$

123,985

 

$

122,089

 

Percentage rents

 

3,784

 

2,967

 

(17

)

(595

)

3,767

 

2,372

 

Tenant recoveries

 

67,783

 

67,406

 

(129

)

(5,065

)

67,654

 

62,341

 

Management Companies’ revenues

 

8,754

 

7,257

 

 

 

8,754

 

7,257

 

Other income

 

7,592

 

6,947

 

(81

)

(314

)

7,511

 

6,633

 

Total revenues

 

211,908

 

218,164

 

(237

)

(17,472

)

211,671

 

200,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shopping center and operating expenses

 

68,680

 

68,126

 

(58

)

(6,281

)

68,622

 

61,845

 

Management Companies’ operating expenses

 

17,755

 

14,714

 

 

 

17,755

 

14,714

 

Income tax expense <benefit>

 

(120

)

(533

)

 

 

(120

)

(533

)

Depreciation and amortization

 

57,087

 

63,539

 

 

(4,130

)

57,087

 

59,409

 

General, administrative and other expenses

 

5,373

 

3,698

 

 

 

5,373

 

3,698

 

Interest expense

 

67,555

 

71,966

 

 

(3,185

)

67,555

 

68,781

 

Loss on early extinguishment of debt

 

878

 

1,782

 

 

 

878

 

1,782

 

Gain (loss) on sale or writedown of assets

 

1,463

 

(502

)

289

 

 

1,752

 

(502

)

Equity in income of unconsolidated entities (c)

 

14,483

 

21,016

 

 

 

14,483

 

21,016

 

Minority interests in consolidated joint ventures

 

(1,491

)

(503

)

 

40

 

(1,491

)

(463

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

9,155

 

14,883

 

110

 

(3,836

)

9,265

 

11,047

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) on sale of asset

 

 

 

(289

)

 

(289

)

 

Income from discontinued operations

 

 

 

179

 

3,836

 

179

 

3,836

 

Income before minority interests of OP

 

9,155

 

14,883

 

 

 

9,155

 

14,883

 

Income allocated to minority interests of OP

 

467

 

1,460

 

 

 

467

 

1,460

 

Net income before preferred dividends

 

8,688

 

13,423

 

 

 

8,688

 

13,423

 

Preferred dividends and distributions (a)

 

6,122

 

5,970

 

 

 

6,122

 

5,970

 

Net income to common stockholders

 

$

2,566

 

$

7,453

 

$

0

 

$

0

 

$

2,566

 

$

7,453

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average number of shares outstanding - basic

 

71,669

 

68,738

 

 

 

 

 

71,669

 

68,738

 

Average shares outstanding, assuming full conversion of OP Units (d)

 

85,034

 

82,518

 

 

 

 

 

85,034

 

82,518

 

Average shares outstanding - diluted for FFO (a) (d)

 

88,661

 

86,145

 

 

 

 

 

88,661

 

86,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per share income- diluted before discontinued operations

 

 

 

 

 

 

 

$

0.04

 

$

0.06

 

Net income per share-basic

 

$

0.04

 

$

0.11

 

 

 

 

 

$

0.04

 

$

0.11

 

Net income per share- diluted (a)

 

$

0.04

 

$

0.11

 

 

 

 

 

$

0.04

 

$

0.11

 

Dividend declared per share

 

$

0.71

 

$

0.68

 

 

 

 

 

$

0.71

 

$

0.68

 

Funds from operations “FFO” (b) (d)- basic

 

$

82,493

 

$

87,647

 

 

 

 

 

$

82,493

 

$

87,647

 

Funds from operations “FFO” (a) (b) (d) - diluted

 

$

85,068

 

$

90,113

 

 

 

 

 

$

85,068

 

$

90,113

 

FFO per share- basic(b) (d)

 

$

0.97

 

$

1.07

 

 

 

 

 

$

0.97

 

$

1.07

 

FFO per share- diluted (a) (b) (d)

 

$

0.96

 

$

1.05

 

 

 

 

 

$

0.96

 

$

1.05

 

 




 

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


(a)                                  On February 25, 1998, the Company sold $100,000 of convertible preferred stock representing 3.627 million shares. 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 - diluted for 2007 and 2006 as they would be antidilutive to those calculations. The weighted average preferred shares outstanding are assumed converted for purposes of FFO per share - diluted as they are dilutive to those calculations for all periods presented.

On April 25, 2005, in connection with the acquisition of Wilmorite Holdings, L.P. and its affiliates, the Company issued as part of the consideration participating and non-participating convertible preferred units in MACWH, LP. These preferred units are not assumed converted for purposes of net income per share - diluted and FFO per share - diluted for 2007 and 2006 as they would be antidilutive to those calculations.

On March 16, 2007, the Company issued $950 million of convertible senior notes. These notes are not assumed converted for purposes of net income per share - - diluted and FFO per share - diluted for 2007 as they would be antidilutive to those calculations.

(b)                                 The Company uses FFO in addition to net income 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 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 undepreciated assets and the impact of SFAS 141 have been included in FFO. The inclusion of gains on sales of undepreciated assets increased FFO for the three months ended March 31, 2007 and 2006 by $0.9 million and $0.1 million, respectively, or by $.01 per share and $.00 per share, respectively. Additionally, SFAS 141 increased FFO for the three months ended March 31, 2007 and 2006 by $4.0 million and $4.6 million, respectively, or by $.045 per share and $.05 per share, respectively.

(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  for all periods presented.

(d)                                 The Macerich Partnership, LP (the “Operating Partnership” or the “OP”) has operating partnership units (“OP units”). Each OP unit can be converted into a share of Company 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 outstanding stock options and restricted stock using the treasury method and assumes conversion of MACWH, LP preferred and common units to the extent they are dilutive to the calculation. For the three months ended March 31, 2007 and 2006, the MACWH, LP preferred units were antidilutive to FFO.

(e)                                  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.

On June 9, 2006, Scottsdale 101 in Arizona was sold. The sale of this property resulted in a gain on sale in 2006, at the Company’s prorata share, of $25.8 million. Additionally, the Company reclassified the results of operations for the three months ended March 31, 2007 and 2006 to discontinued operations.

On July 13, 2006, Park Lane Mall in Nevada was sold. The sale of this property resulted in a gain on sale of $5.9 million in 2006. The Company reclassified the results of operations for the three months ended March 31, 2007 and 2006 to discontinued operations.

On July 27, 2006, Greeley Mall in Colorado and Holiday Village in Montana were sold. The sale of these properties resulted in gains on sale of $21.3 million and $7.4 million, respectively, in 2006. The Company reclassified the results of operations for the three months ended March 31, 2007 and 2006 to discontinued operations.

On August 11, 2006, Great Falls Marketplace in Montana was sold. The sale of this property resulted in a gain on sale of $11.8 million in 2006.

The Company reclassified the results of operations for the three months ended March 31, 2007 and 2006 to discontinued operations.

On December 29, 2006, Citadel Mall in Colorado Springs, Colorado, Crossroads Malls in Oklahoma City, Oklahoma and Northwest Arkansas Mall in Fayetteville, Arkansas were sold. The sale of these properties resulted in a total gain on sale of $132.7 million in 2006. The Company reclassified the results of operations for the three months ended March 31, 2007 and 2006 to discontinued operations.




 

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

 

 

March 31,

 

Dec. 31,

 

 

 

2007

 

2006

 

 

 

(UNAUDITED)

 

Summarized Balance Sheet Information

 

 

 

 

 

Cash and cash equivalents

 

$

47,945

 

$

269,435

 

Investment in real estate, net (h)

 

$

5,806,357

 

$

5,755,283

 

Investments in unconsolidated entities (i)

 

$

987,435

 

$

1,010,380

 

Total assets

 

$

7,391,217

 

$

7,562,163

 

Mortgage and notes payable

 

$

4,998,179

 

$

4,993,879

 

Pro rata share of debt on unconsolidated entities

 

$

1,669,232

 

$

1,664,447

 

 

 

 

 

 

 

 

 

 

 

 

 

Total common shares outstanding at quarter end:

 

71,450

 

71,568

 

Total preferred shares outstanding at quarter end:

 

3,627

 

3,627

 

Total partnership/preferred units outstanding at quarter end:

 

15,878

 

16,342

 

 

 

 

March 31,

 

March 31,

 

 

 

2007

 

2006

 

 

 

(UNAUDITED)

 

Additional financial data as of:

 

 

 

 

 

Occupancy of centers (f)

 

92.80

%

92.50

%

Comparable quarter change in same center sales (f) (g)

 

5.50

%

4.80

%

 

 

 

 

 

 

Additional financial data for the three months ended:

 

 

 

 

 

Acquisitions of property and equipment - including joint ventures at prorata

 

$

2,707

 

$

244,520

 

Redevelopment and expansions of centers- including joint ventures at prorata

 

$

88,662

 

$

38,004

 

Renovations of centers- including joint ventures at prorata

 

$

16,723

 

$

11,622

 

Tenant allowances- including joint ventures at prorata

 

$

7,802

 

$

3,814

 

Deferred leasing costs- including joint ventures at prorata

 

$

6,514

 

$

7,707

 

 


(f)                                    excludes redevelopment properties (Santan Village Phase 2, Santa Monica Place, The Oaks, Twenty Ninth Street and Westside Pavilion Adjacent)

(g)                                 includes mall and freestanding stores.

(h)                                 includes construction in process on wholly owned assets of $359,924 at March 31, 2007 and $294,115 at December 31, 2006.

(i)                                     the Company’s prorata share of construction in process on unconsolidated entities of $42,757 at March 31, 2007 and $45,268 at December 31, 2006.

 

For the Three Months

 

PRORATA SHARE OF JOINT VENTURES

 

Ended March 31,

 

 

 

(UNAUDITED)

 

 

 

(All amounts in thousands)

 

 

 

2007

 

2006

 

Revenues:

 

 

 

 

 

Minimum rents

 

$

61,890

 

$

58,370

 

Percentage rents

 

2,287

 

2,628

 

Tenant recoveries

 

29,189

 

27,603

 

Other

 

2,663

 

3,537

 

Total revenues

 

96,029

 

92,138

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

Shopping center expenses

 

30,588

 

31,158

 

Interest expense

 

24,317

 

19,461

 

Depreciation and amortization

 

24,388

 

20,579

 

Total operating expenses

 

79,293

 

71,198

 

Loss on sale of assets

 

(2,382

)

 

Equity in income of joint ventures

 

129

 

76

 

Net income

 

$

14,483

 

$

21,016

 

 




THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

 

 

For the Three Months

 

RECONCILIATION OF NET INCOME TO FFO(b)(e)

 

Ended March 31,

 

 

 

(UNAUDITED)

 

 

 

(All amounts in thousands)

 

 

 

2007

 

2006

 

Net income - available to common stockholders

 

$

2,566

 

$

7,453

 

 

 

 

 

 

 

Adjustments to reconcile net income to FFO- basic

 

 

 

 

 

Minority interest in OP

 

467

 

1,460

 

(Gain) loss on sale of consolidated assets

 

(1,463

)

502

 

plus gain on undepreciated asset sales- consolidated assets

 

881

 

121

 

plus minority interest share of gain on sale of consolidated joint ventures

 

837

 

 

(Gain) loss on sale of assets from unconsolidated entities (pro rata share)

 

2,382

 

 

Depreciation and amortization on consolidated assets

 

57,087

 

63,539

 

Less depreciation and amortization allocable to minority interests on consolidated joint ventures

 

(994

)

(1,975

)

Depreciation and amortization on joint ventures (pro rata)

 

24,388

 

20,579

 

Less: depreciation on personal property and amortization of loan costs and interest rate caps

 

(3,658

)

(4,032

)

 

 

 

 

 

 

Total FFO - basic

 

82,493

 

87,647

 

 

 

 

 

 

 

Additional adjustment to arrive at FFO -diluted

 

 

 

 

 

Preferred stock dividends earned

 

2,575

 

2,466

 

FFO - diluted

 

$

85,068

 

$

90,113

 

 

 

 

For the Three Months

 

 

 

Ended March 31,

 

 

 

(UNAUDITED)

 

 

 

2007

 

2006

 

Reconciliation of EPS to FFO per diluted share:

 

 

 

 

 

Earnings per share

 

$

0.04

 

$

0.11

 

Per share impact of depreciation and amortization of real estate

 

$

0.91

 

$

0.95

 

Per share impact of gain on sale of depreciated assets

 

$

0.03

 

$

0.01

 

Per share impact of preferred stock not dilutive to EPS

 

$

(0.02

)

$

(0.02

)

Fully Diluted FFO per share

 

$

0.96

 

$

1.05

 

 

THE MACERICH COMPANY

RECONCILIATION OF NET INCOME TO EBITDA

 

 

 

For the Three Months

 

 

 

Ended March 31,

 

 

 

(UNAUDITED)

 

 

 

(All amounts in thousands)

 

 

 

2007

 

2006

 

Net income - available to common stockholders

 

$

2,566

 

$

7,453

 

 

 

 

 

 

 

Interest expense

 

67,555

 

71,966

 

Interest expense - unconsolidated entities (pro rata)

 

24,317

 

19,461

 

Depreciation and amortization - consolidated assets

 

57,087

 

63,539

 

Depreciation and amortization - unconsolidated entities (pro rata)

 

24,388

 

20,579

 

Minority interest

 

467

 

1,460

 

Less: Interest expense and depreciation and amortization allocable to minority interests on consolidated joint ventures

 

(1,435

)

(2,867

)

Loss on early extinguishment of debt

 

878

 

1,782

 

Loss (gain) on sale of assets - consolidated assets

 

(1,463

)

502

 

Loss (gain) on sale of assets - unconsolidated entities (pro rata)

 

2,382

 

 

Add: Minority interest share of gain on sale of consolidated joint ventures

 

837

 

 

Income tax expense (benefit)

 

(120

)

(533

)

Preferred dividends

 

6,122

 

5,970

 

 

 

 

 

 

 

EBITDA(j)

 

$

183,581

 

$

189,312

 

 




THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

THE MACERICH COMPANY

RECONCILIATION OF EBITDA TO SAME CENTERS - NET OPERATING INCOME (“NOI”)

 

 

 

For the Three Months

 

 

 

Ended March 31,

 

 

 

(UNAUDITED)

 

 

 

(All amounts in thousands)

 

 

 

2007

 

2006

 

EBITDA (j)

 

$

183,581

 

$

189,312

 

 

 

 

 

 

 

Add: REIT general and administrative expenses

 

5,373

 

3,698

 

Management Companies’ revenues (c)

 

(8,754

)

(7,257

)

Management Companies’ operating expenses (c)

 

17,755

 

14,714

 

Lease termination income of comparable centers

 

(3,397

)

(8,569

)

EBITDA of non-comparable centers

 

(20,198

)

(20,507

)

 

 

 

 

 

 

SAME CENTERS - Net operating income (“NOI”) (k)

 

$

174,360

 

$

171,391

 

 


(j)                                     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.

(k)                                  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.



Exhibit 99.2

 

Supplemental Financial Information

For the Three Months Ended March 31, 2007




The Macerich Company

Supplemental Financial and Operating Information

Table of Contents

 

All information included in this supplemental financial package is unaudited, unless otherwise indicated.

 

 

Page No.

 

 

 

Corporate overview

 

 

Overview

 

1

Capital information and market capitalization

 

2

Changes in total common and equivalent shares

 

3

 

 

 

Financial data

 

 

Supplemental FFO information

 

4

Capital expenditures

 

5

 

 

 

Operational data

 

 

Sales per square foot

 

6

Occupancy

 

7

Rent

 

8

Cost of occupancy

 

9

 

 

 

Balance sheet information

 

 

Debt summary

 

10

Outstanding debt by maturity

 

11

 

This supplemental financial information should be read in connection with the Company’s first quarter 2007 earnings announcement (included as Exhibit 99.1 of the Company’s Current Report on 8-K, event date May 4, 2007) as certain disclosures, definitions and reconciliations in such announcement have not been included in this supplemental financial information.




The Macerich Company

Supplemental Financial and Operating Information

Overview

 

Macerich (the “Company”) is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community shopping centers located throughout the United States. The Company is the sole general partner of, and owns a majority of the ownership interests in, The Macerich Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”).

 

As of March 31, 2007, the Operating Partnership owned or had an ownership interest in 73 regional shopping centers and 18 community shopping centers aggregating approximately 77 million square feet of gross leasable area (“GLA”). These 91 regional and community shopping centers are referred to hereinafter as the “Centers”, unless the context requires otherwise.

 

The Company is a self-administered and self-managed real estate investment trust (“REIT”) and conducts all of its operations through the Operating Partnership and the Company’s management companies (collectively, the “Management Companies”).

 

All references to the Company in this Exhibit include the Company, those entities owned or controlled by the Company and predecessors of the company, unless the context indicates otherwise.

1




The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Capital Information and Market Capitalization

 

 

 

Period Ended

 

dollars in thousands except per share data

 

3/31/2007

 

12/31/2006

 

12/31/2005

 

12/31/2004

 

Closing common stock price per share

 

$

92.36

 

$

86.57

 

$

67.14

 

$

62.80

 

52 Week High

 

$

103.59

 

$

87.10

 

$

71.22

 

$

64.66

 

52 Week Low

 

$

67.11

 

$

66.70

 

$

53.10

 

$

38.90

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding at end of period

 

 

 

 

 

 

 

 

 

Class A participating convertible preferred units

 

2,855,393

 

2,855,393

 

2,855,393

 

 

Class A non-participating convertible preferred units

 

219,828

 

287,176

 

287,176

 

 

Series A cumulative convertible redeemable preferred stock

 

3,627,131

 

3,627,131

 

3,627,131

 

3,627,131

 

Common shares and operating partnership units

 

84,252,886

 

84,767,432

 

73,446,422

 

72,923,605

 

Total common and equivalent shares outstanding

 

90,955,238

 

91,537,132

 

80,216,122

 

76,550,736

 

 

 

 

 

 

 

 

 

 

 

Portfolio capitalization data at end of period

 

 

 

 

 

 

 

 

 

Total portfolio debt, including joint ventures at pro rata

 

$

6,630,025

 

$

6,620,271

 

$

6,863,690

 

$

4,377,388

 

 

 

 

 

 

 

 

 

 

 

Equity market capitalization

 

8,400,626

 

7,924,369

 

5,385,710

 

4,807,386

 

 

 

 

 

 

 

 

 

 

 

Total market capitalization

 

$

15,030,651

 

$

14,544,640

 

$

12,249,400

 

$

9,184,774

 

 

 

 

 

 

 

 

 

 

 

Leverage ratio (%) (a)

 

44.1

%

45.5

%

56.0

%

47.7

%

 

 

 

 

 

 

 

 

 

 

Floating rate debt as a percentage of total market capitalization

 

3.3

%

9.5

%

13.0

%

13.0

%

 

 

 

 

 

 

 

 

 

 

Floating rate debt as a percentage of total debt

 

7.6

%

20.8

%

35.7

%

27.0

%

 


(a) Debt as a percentage of total market capitalization.

 

 

2




The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Changes in Total Common and Equivalent Shares

 

 

 

Operating 
Partnership 
(“OP”) Units

 

Company 
Common 
Shares

 

Class A 
Participating 
Convertible 
Preferred 
Units 
(“PCPUs”)

 

Class A Non-
Participating 
Convertible 
Preferred 
Units 
(“NPCPUs”)

 

Series A 
Cumulative 
Convertible 
Redeemable 
Preferred 
Stock

 

Total 
Common 
and 
Equivalent 
Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2006

 

13,199,524

 

71,567,908

 

2,855,393

 

287,176

 

3,627,131

 

91,537,132

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Repurchase of common shares

 

 

(807,000

)

 

 

 

(807,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of OP units to common shares

 

(395,756

)

395,756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of NPCPUs to common shares

 

 

67,348

 

 

(67,348

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of OP units to cash

 

(598

)

 

 

 

 

(598

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of stock from stock option exercises, restricted stock issuance or other share-based plans

 

 

225,704

 

 

 

 

225,704

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of March 31, 2007

 

12,803,170

 

71,449,716

 

2,855,393

 

219,828

 

3,627,131

 

90,955,238

 

 

3




The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Supplemental Funds from Operations (“FFO”) Information

 

 

 

 

For the Three Months Ended March 31,

 

dollars in millions

 

2007 (a)

 

2006 (a)

 

 

 

 

 

 

 

Lease termination fees

 

$

3.4

 

$

9.0

 

 

 

 

 

 

 

Straight line rental income

 

$

1.6

 

$

2.4

 

 

 

 

 

 

 

Straight line rent receivable

 

$

53.8

 

$

51.4

 

 

 

 

 

 

 

Gain on sales of undepreciated assets

 

$

0.9

 

$

0.1

 

 

 

 

 

 

 

Amortization of acquired above- and below-market leases (SFAS 141)

 

$

4.0

 

$

4.6

 

 

 

 

 

 

 

Amortization of debt premiums

 

$

3.9

 

$

4.8

 

 

 

 

 

 

 

Interest capitalized

 

$

5.9

 

$

5.1

 

 


(a) All joint venture amounts included at pro rata.

4




The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Capital Expenditures

 

 

 

For the Three 
Months Ended

 

Year Ended

 

Year Ended

 

Year Ended

 

dollars in millions

 

3/31/07

 

12/31/06

 

12/31/05

 

12/31/04

 

Consolidated Centers

 

 

 

 

 

 

 

 

 

Acquisitions of property and equipment

 

$

2.2

 

$

580.5

 

$

1,767.2

 

$

301.1

 

Development, redevelopment and expansions of Centers

 

84.3

 

180.3

 

77.2

 

139.3

 

Renovations of Centers

 

14.5

 

51.4

 

51.1

 

21.2

 

Tenant allowances

 

5.3

 

29.8

 

21.8

 

10.9

 

Deferred leasing charges

 

5.5

 

22.8

 

21.8

 

16.8

 

Total

 

$

111.8

 

$

864.8

 

$

1,939.1

 

$

489.3

 

 

 

 

 

 

 

 

 

 

 

Joint Venture Centers (a)

 

 

 

 

 

 

 

 

 

Acquisitions of property and equipment

 

$

0.5

 

$

28.7

 

$

736.4

 

$

41.1

 

Development, redevelopment and expansions of centers

 

4.4

 

48.8

 

79.4

 

6.6

 

Renovations of Centers

 

2.2

 

8.1

 

32.2

 

10.1

 

Tenant allowances

 

2.5

 

13.8

 

8.9

 

10.5

 

Deferred leasing charges

 

1.0

 

4.3

 

5.1

 

3.7

 

Total

 

$

10.6

 

$

103.7

 

$

862.0

 

$

72.0

 

 


(a) All joint venture amounts at pro rata.

5




The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Sales Per Square Foot (a)

 

 

Consolidated
Centers

 

Unconsolidated
Centers

 

Total Centers

 

3/31/2007 (b)

 

$

435

 

$

474

 

$

454

 

12/31/06

 

$

435

 

$

470

 

$

452

 

12/31/05

 

$

395

 

$

440

 

$

417

 

12/31/04

 

$

368

 

$

414

 

$

391

 

 


(a) Sales are based on reports by retailers leasing mall and freestanding stores for the trailing 12 months for tenants which have occupied such stores for a minimum of 12 months.  Sales per square foot are based on tenants 10,000 square feet and under, for regional malls.

 

(b) Due to tenant sales reporting timelines, the data presented is as of February 28, 2007.

 

 

6




The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Occupancy

 

Period Ended

 

Consolidated 
Centers (a)

 

Unconsolidated 
Centers (a)

 

Total Centers (a)

 

3/31/07

 

 

92.1

%

93.4

%

92.8

%

12/31/06

 

 

93.0

%

94.2

%

93.6

%

12/31/05

 

 

93.2

%

93.8

%

93.5

%

12/31/04

 

 

92.6

%

92.4

%

92.5

%

 


(a) Occupancy data excludes space under development and redevelopment.

7




The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Rent

 

 

 

Average Base Rent 
PSF (a)

 

Average Base Rent 
PSF on Leases 
Commencing During 
the Period (b)

 

Average Base Rent 
PSF on Leases 
Expiring (c)

 

Consolidated Centers

 

 

 

 

 

 

 

03/31/07

 

$

38.16

 

$

43.47

 

$

34.21

 

12/31/06

 

$

37.55

 

$

38.40

 

$

31.92

 

12/31/05

 

$

34.23

 

$

35.60

 

$

30.71

 

12/31/04

 

$

32.60

 

$

35.31

 

$

28.84

 

 

 

 

 

 

 

 

 

Joint Venture Centers

 

 

 

 

 

 

 

03/31/07

 

$

38.30

 

$

40.87

 

$

34.87

 

12/31/06

 

$

37.94

 

$

41.43

 

$

36.19

 

12/31/05

 

$

36.35

 

$

39.08

 

$

30.18

 

12/31/04

 

$

33.39

 

$

36.86

 

$

29.32

 

 


(a) Average base rent per square foot is based on Mall and Freestanding Store GLA for spaces 10,000 square feet and under, occupied as of the applicable date, for each of the Centers owned by the Company.  Leases for La Encantada and the expansion area of Queens Center were excluded for Years 2005 and 2004.

 

(b) The average base rent per square foot on lease signings commencing during the period represents the actual rent to be paid during the first twelve months for tenant leases 10,000 square feet and under.  Lease signings for La Encantada and the expansion area of Queens Center were excluded for Years 2005 and 2004.

 

(c) The average base rent per square foot on leases expiring during the period represents the final year minimum rent, on a cash basis, for all tenant leases 10,000 square feet and under expiring during the year.  Leases for La Encantada and the expansion area of Queens Center were excluded for Years 2005 and 2004.

8




The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Cost of Occupancy

 

 

 

For Years Ended December 31,

 

 

 

2006

 

2005

 

2004

 

Consolidated Centers

 

 

 

 

 

 

 

Minimum rents

 

8.1

%

8.3

%

8.3

%

Percentage rents

 

0.4

%

0.5

%

0.4

%

Expense recoveries (a)

 

3.7

%

3.6

%

3.7

%

Total

 

12.2

%

12.4

%

12.4

%

 

 

 

For Years Ended December 31,

 

 

 

2006

 

2005

 

2004

 

Joint Venture Centers

 

 

 

 

 

 

 

Minimum rents

 

7.2

%

7.4

%

7.7

%

Percentage rents

 

0.6

%

0.5

%

0.5

%

Expense recoveries (a)

 

3.1

%

3.0

%

3.2

%

Total

 

10.9

%

10.9

%

11.4

%

 


(a) Represents real estate tax and common area maintenance charges.

9




The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Debt Summary

 

 

 

As of March 31, 2007

 

dollars in thousands

 

Fixed Rate

 

Variable Rate (a)

 

Total

 

Consolidated debt

 

4,652,153

 

308,640

 

4,960,793

 

Unconsolidated debt

 

1,477,363

 

191,869

 

1,669,232

 

Total debt

 

6,129,516

 

500,509

 

6,630,025

 

 

 

 

 

 

 

 

 

Weighted average interest rate

 

5.58

%

6.31

%

5.63

%

 

 

 

 

 

 

 

 

Weighted average maturity (years)

 

 

 

 

 

4.69

 

 


(a) Excludes swapped floating rate debt.  Swapped debt is included in fixed debt category.

10




The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Outstanding Debt by Maturity

 

dollars in thousands

 

 

 

 

 

As of March 31, 2007

 

Center/Entity

 

Maturity Date

 

Interest 
Rate (a)

 

Fixed

 

Floating

 

Total Debt 
Balance (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

I. Consolidated Assets

 

 

 

 

 

 

 

 

 

 

 

Borgata

 

10/11/07

 

5.39

%

$

14,746

 

$

 

$

14,746

 

Victor Valley, Mall of

 

03/01/08

 

4.60

%

52,120

 

 

52,120

 

Westside Pavilion

 

07/01/08

 

6.67

%

93,132

 

 

93,132

 

Village Fair North

 

07/15/08

 

5.89

%

11,129

 

 

11,129

 

Fresno Fashion Fair

 

08/10/08

 

6.52

%

64,335

 

 

64,335

 

South Towne Center

 

10/10/08

 

6.61

%

64,000

 

 

64,000

 

Queens Center

 

03/01/09

 

6.88

%

91,648

 

 

91,648

 

South Plains Mall

 

03/01/09

 

8.22

%

59,435

 

 

59,435

 

Carmel Plaza

 

05/01/09

 

8.18

%

26,565

 

 

26,565

 

Paradise Valley Mall

 

05/01/09

 

5.89

%

21,928

 

 

21,928

 

Northridge Mall

 

07/01/09

 

4.84

%

82,172

 

 

82,172

 

Wilton Mall

 

11/01/09

 

4.79

%

46,101

 

 

46,101

 

Macerich Partnership Term Loan (b)

 

04/25/10

 

6.30

%

450,000

 

 

450,000

 

Macerich Partnership Line of Credit (c)

 

04/25/10

 

6.23

%

400,000

 

 

400,000

 

Vintage Faire Mall

 

09/01/10

 

7.89

%

65,126

 

 

65,126

 

Eastview Commons

 

09/30/10

 

5.46

%

9,039

 

 

9,039

 

Santa Monica Place

 

11/01/10

 

7.70

%

79,795

 

 

79,795

 

Valley View Center

 

01/01/11

 

5.72

%

125,000

 

 

125,000

 

Danbury Fair Mall

 

02/01/11

 

4.64

%

181,259

 

 

181,259

 

Shoppingtown Mall

 

05/11/11

 

5.01

%

45,819

 

 

45,819

 

Capitola Mall

 

05/15/11

 

7.13

%

40,578

 

 

40,578

 

Freehold Raceway Mall

 

07/07/11

 

4.68

%

182,025

 

 

182,025

 

Pacific View

 

08/31/11

 

7.16

%

83,199

 

 

83,199

 

Pacific View

 

08/31/11

 

7.00

%

6,698

 

 

6,698

 

Rimrock Mall

 

10/01/11

 

7.45

%

43,301

 

 

43,301

 

Prescott Gateway

 

12/01/11

 

5.78

%

60,000

 

 

60,000

 

The Macerich Company - Convertible Senior Notes (d)

 

03/15/12

 

3.48

%

940,583

 

 

940,583

 

Chandler Fashion Center

 

11/01/12

 

5.14

%

103,915

 

 

103,915

 

Chandler Fashion Center

 

11/01/12

 

6.00

%

68,226

 

 

68,226

 

Towne Mall

 

11/01/12

 

4.99

%

15,177

 

 

15,177

 

Pittsford Plaza (e)

 

01/01/13

 

5.02

%

15,981

 

 

15,981

 

Deptford Mall

 

01/15/13

 

5.44

%

100,000

 

 

100,000

 

Queens Center

 

03/31/13

 

7.00

%

219,709

 

 

219,709

 

Greeley - Defeaseance

 

09/01/13

 

6.18

%

28,127

 

 

28,127

 

FlatIron Crossing

 

12/01/13

 

5.23

%

190,234

 

 

190,234

 

Great Northern Mall

 

12/01/13

 

5.19

%

40,778

 

 

40,778

 

Eastview Mall

 

01/18/14

 

5.10

%

102,395

 

 

102,395

 

Fiesta Mall

 

01/01/15

 

4.88

%

84,000

 

 

84,000

 

Flagstaff Mall

 

11/01/15

 

4.97

%

37,000

 

 

37,000

 

Valley River Center

 

02/01/16

 

5.59

%

120,000

 

 

120,000

 

Salisbury, Center at

 

05/01/16

 

5.79

%

115,000

 

 

115,000

 

Marketplace Mall (f)

 

12/10/17

 

5.30

%

15,074

 

 

15,074

 

Chesterfield Towne Center

 

01/01/24

 

9.07

%

56,804

 

 

56,804

 

Total Fixed Rate Debt for Consolidated Assets

 

 

 

5.49

%

$

4,652,153

 

$

 

$

4,652,153

 

 

 

 

 

 

 

 

 

 

 

 

 

Twenty Ninth Street

 

06/15/07

 

6.61

%

 

101,343

 

101,343

 

La Cumbre Plaza

 

08/09/07

 

6.20

%

 

30,000

 

30,000

 

Greece Ridge Center

 

11/06/07

 

5.97

%

 

72,000

 

72,000

 

Casa Grande (g)

 

08/16/09

 

6.72

%

 

3,297

 

3,297

 

Panorama Mall

 

02/28/10

 

6.16

%

 

50,000

 

50,000

 

Macerich Partnership Line of Credit

 

04/25/10

 

6.47

%

 

52,000

 

52,000

 

Total Floating Rate Debt for Consolidated Assets

 

 

 

6.33

%

$

 

$

308,640

 

$

308,640

 

Total Debt for Consolidated Assets

 

 

 

5.55

%

$

4,652,153

 

$

308,640

 

$

4,960,793

 

 

11




The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Outstanding Debt by Maturity

 

 

 

 

As of March 31, 2007

 

Center/Entity

 

Maturity Date

 

Interest 
Rate (a)

 

Fixed

 

Floating

 

Total Debt 
Balance (a)

 

II. Unconsolidated Joint Ventures (At Company’s pro rata share)

 

 

 

 

 

 

 

 

 

 

 

Scottsdale Fashion Square (50%)

 

08/31/07

 

5.39

%

$

78,439

 

$

 

$

78,439

 

Scottsdale Fashion Square (50%)

 

08/31/07

 

5.39

%

33,551

 

 

33,551

 

Metrocenter Mall (15%) (h)

 

02/09/08

 

4.80

%

16,800

 

 

16,800

 

Broadway Plaza (50%)

 

08/01/08

 

6.68

%

30,750

 

 

30,750

 

Chandler Festival (50%)

 

10/01/08

 

4.37

%

15,083

 

 

15,083

 

Chandler Gateway (50%)

 

10/01/08

 

5.19

%

9,508

 

 

9,508

 

Washington Square (51%)

 

02/01/09

 

6.70

%

51,176

 

 

51,176

 

Inland Center (50%)

 

02/11/09

 

4.64

%

27,000

 

 

27,000

 

Biltmore Fashion Park (50%)

 

07/10/09

 

4.68

%

39,387

 

 

39,387

 

Redmond Office (51%)

 

07/10/09

 

6.77

%

35,258

 

 

35,258

 

Redmond Retail (51%)

 

08/01/09

 

4.81

%

37,261

 

 

37,261

 

Corte Madera, The Village at (50.1%)

 

11/01/09

 

7.75

%

33,068

 

 

33,068

 

Ridgmar (50%)

 

04/11/10

 

6.07

%

28,700

 

 

28,700

 

Kitsap Mall/Place (51%)

 

06/01/10

 

8.06

%

29,499

 

 

29,499

 

Cascade (51%)

 

07/01/10

 

5.10

%

20,343

 

 

20,343

 

Stonewood Mall (51%)

 

12/11/10

 

7.41

%

38,062

 

 

38,062

 

Arrowhead Towne Center (33.3%)

 

10/01/11

 

6.38

%

26,966

 

 

26,966

 

Hilton Village (50%)

 

02/01/12

 

5.21

%

4,300

 

 

4,300

 

SanTan Village Phase 2 (34.9%)

 

02/01/12

 

5.33

%

15,705

 

 

15,705

 

Northpark Center (50%)

 

05/10/12

 

5.41

%

94,495

 

 

94,495

 

NorthPark Center (50%)

 

05/10/12

 

8.33

%

42,037

 

 

42,037

 

NorthPark Land (50%)

 

05/10/12

 

8.33

%

40,604

 

 

40,604

 

Kierland Greenway (24.5%)

 

01/01/13

 

5.85

%

16,133

 

 

16,133

 

Kierland Main Street (24.5%)

 

01/02/13

 

4.99

%

3,821

 

 

3,821

 

Tyson’s Corner (50%)

 

02/17/14

 

4.78

%

171,266

 

 

171,266

 

Lakewood Mall (51%)

 

06/01/15

 

5.41

%

127,500

 

 

127,500

 

Eastland Mall (50%)

 

06/01/16

 

5.79

%

84,000

 

 

84,000

 

Empire Mall (50%)

 

06/01/16

 

5.79

%

88,150

 

 

88,150

 

Granite Run (50%)

 

06/01/16

 

5.83

%

60,400

 

 

60,400

 

Mesa Mall (50%)

 

06/01/16

 

5.79

%

43,625

 

 

43,625

 

Rushmore (50%)

 

06/01/16

 

5.79

%

47,000

 

 

47,000

 

Southern Hills (50%)

 

06/01/16

 

5.79

%

50,750

 

 

50,750

 

Valley Mall (50%)

 

06/01/16

 

5.83

%

23,517

 

 

23,517

 

West Acres (19%)

 

10/01/16

 

6.41

%

13,209

 

 

13,209

 

Total Fixed Rate Debt for Unconsolidated Assets

 

5.83

%

$

1,477,363

 

$

 

$

1,477,363

 

 

 

 

 

 

 

 

 

 

 

 

 

NorthPark Land (50%)

 

08/30/07

 

8.25

%

 

3,500

 

3,500

 

Camelback Colonnade (75%)

 

10/09/07

 

6.01

%

 

31,125

 

31,125

 

Boulevard Shops (50%)

 

12/16/07

 

6.57

%

 

10,700

 

10,700

 

Chandler Village Center (50%)

 

12/19/07

 

6.97

%

 

8,640

 

8,640

 

Metrocenter Mall (15%)

 

02/09/08

 

8.73

%

 

3,240

 

3,240

 

Desert Sky Mall (50%)

 

03/06/08

 

6.42

%

 

25,750

 

25,750

 

Superstition Springs Center (33.3%)

 

09/09/08

 

5.69

%

 

22,498

 

22,498

 

Kierland Tower Lofts (15%)

 

12/14/08

 

7.13

%

 

3,238

 

3,238

 

Washington Square (51%)

 

02/01/09

 

7.32

%

 

16,878

 

16,878

 

Los Cerritos Center (51%)

 

07/01/11

 

5.88

%

 

66,300

 

66,300

 

Total Floating Rate Debt for Unconsolidated Assets

 

 

 

6.28

%

$

 

$

191,869

 

$

191,869

 

Total Debt for Unconsolidated Assets

 

 

 

5.89

%

$

1,477,363

 

$

191,869

 

$

1,669,232

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt

 

 

 

5.63

%

$

6,129,516

 

$

500,509

 

$

6,630,025

 

Percentage of Total

 

 

 

 

 

92.45

%

7.55

%

100.00

%


(a) The debt balances include the unamortized debt premiums (discounts). Debt premiums (discounts) represent the excess of the fair value of debt over the principal value of debt assumed in various acquisitions and are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The annual interest rate in the above table represents the effective interest rate, including the debt premiums (discounts).

(b) This debt has an interest rate swap agreement which effectively fixed the interest rate from December 1, 2005 to April 25, 2010.

(c) This debt has an interest rate swap agreement which effectively fixed the interest rate from September 12, 2006 to April 25, 2011.

(d) These convertible senior notes were issued on 3/16/07 in an aggregate amount of $950.0 million. The above table includes the unamortized discount of $9.4 million and the annual interest rate represents the effective interest rate, including the discount.

(e) This property is a consolidated joint venture. The above debt balance represents the Company’s pro rata share of 63.6%.

(f) This property is a consolidated joint venture. The above debt balance represents the Company’s pro rata share of 37.5%.

(g) This property is a consolidated joint venture. The above debt balance represents the Company’s pro rata share of 51.3%.

(h) This debt has an interest rate swap agreement which effectively fixed the interest rate from January 15, 2005 to February 15, 2008.

12