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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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) July 28, 2011
THE MACERICH COMPANY
(Exact Name of Registrant as Specified in Charter)
| MARYLAND (State or Other Jurisdiction of Incorporation) |
1-12504 (Commission File Number) |
95-4448705 (IRS Employer Identification No.) |
401 Wilshire Boulevard, Suite 700, Santa Monica, California 90401
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (310) 394-6000
N/A
(Former Name or Former Address, 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 (see General Instruction A.2. below):
- 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 July 28, 2011 announcing results of operations for the Company for the quarter ended June 30, 2011 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 July 28, 2011, the Company made available on its website a financial supplement containing financial and operating information of the Company ("Supplemental Financial Information") for the three and six months ended June 30, 2011 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
Pursuant to the requirements of the Securities Exchange Act of 1934, The Macerich Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE MACERICH COMPANY | ||
By: THOMAS E. O'HERN |
||
July 28, 2011 Date |
/s/ THOMAS E. O'HERN Senior Executive Vice President, Chief Financial Officer and Treasurer |
3
EXHIBIT NUMBER |
NAME
|
||
|---|---|---|---|
| 99.1 | Press Release dated July 28, 2011 | ||
99.2 |
Supplemental Financial Information for the three and six months ended June 30, 2011 |
||
4
-
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
ITEM 7.01 REGULATION FD DISCLOSURE.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
EXHIBIT INDEX
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PRESS RELEASE
| For: | THE MACERICH COMPANY | |
Press Contact: |
Arthur Coppola, Chairman and Chief Executive Officer |
|
or |
||
Thomas E. O'Hern, Senior Executive Vice President, Chief Financial Officer and Treasurer |
||
(310) 394-6000 |
MACERICH ANNOUNCES QUARTERLY RESULTS
Santa Monica, CA (7/28/11)—The Macerich Company (NYSE Symbol: MAC) today announced results of operations for the quarter ended June 30, 2011 which included total funds from operations ("FFO") diluted of $66.7 million or $.47 per share-diluted, compared to $.57 per share-diluted for the quarter ended June 30, 2010. For the quarter ended June 30, 2011, adjusted FFO ("AFFO") per share-diluted was $.72 and excludes the impact of a $35.7 million or $.25 per share impairment charge. Net loss available to common stockholders was $19.2 million or $.15 per share-diluted, compared to a net loss available to common stockholders for the quarter ended June 30, 2010 of $.4 million or $.01 per share-diluted. A description and reconciliation of FFO per share diluted and AFFO per share-diluted to EPS is included in the financial tables accompanying this press release.
Recent Highlights:
- •
- Occupancy increased to 92.3% at June 30, 2011, up from 91.8% at June 30, 2010.
- •
- Mall tenant annual sales per square foot increased 9.1% to $458 for the year ended June 30, 2011 compared to $420
for the year ended June 30, 2010.
- •
- The releasing spreads for the year ended June 30, 2011 were up 11.6%.
- •
- On July 22, 2011, the Company closed on the acquisition of the Fashion Outlets of Niagara Falls, a 526,000 square foot center that is 96% occupied, with shop tenant annual sales of approximately $650 per square foot.
Commenting on the quarter and recent events, Arthur Coppola chairman and chief executive officer of Macerich stated, "it was a very active quarter for us, increasing our ownership interest in two Phoenix malls, entering the fashion outlet sector with the acquisition of Fashion Outlets of Niagara Falls and our announced plans to develop a fashion outlet center in the Phoenix/Scottsdale market. In addition, we continue to see strong fundamentals in our portfolio with occupancy gains, solid tenant sales growth and good releasing spreads."
Acquisition Activity:
On July 22, 2011, the Company closed the acquisition of the 526,000 square foot Fashion Outlets of Niagara Falls, USA. The center is anchored by Saks Off 5th, Nike, Coach Women's and Men's stores, Old Navy, Gap and Polo Ralph Lauren and includes many other prominent tenants including Michael Kors, Barneys of NY outlet, J. Crew, Cole Haan, Burberry, Tommy Hilfiger, Brooks Brothers, Calvin Klein, Hugo Boss, Banana Republic and 120 others. The enclosed center's shop tenant sales per square foot are approximately $650. The center ranks as one of the most productive outlet centers in the country. The Fashion Outlets of Niagara Falls was purchased for $200 million, including the assumption of the existing debt of $121 million that has an interest rate of 5.90% and a maturity of October 1, 2020.
On June 3, 2011, the Company acquired a 33.3% ownership interest of Superstition Springs Mall and Arrowhead Towne Center, both in the Phoenix, Arizona market. This brings the Company's ownership of both assets up to 66.7%. The partnership interests were obtained in exchange for six big-box anchor locations in Arizona, California, Illinois and Utah and $75 million in cash.
Including these transactions, total acquisitions for the year are over $400 million.
Balance Sheet Activity:
In May, the Company closed on a new $1.5 billion line of credit. The facility has a four year term, extendable to five years and has an interest rate, based on current leverage of LIBOR plus 2.00%. At June 30, 2011, the line of credit had an outstanding balance of $145 million.
On July 1, 2011, the Company closed on a $200 million loan on Los Cerritos Center. The fixed rate loan has an interest rate of 4.46% and a term of seven years.
In June, 2011 the Company paid off the $83.4 million loan with a 7.2% interest rate on Pacific View Mall and in July the Company paid off the $40.2 million loan with interest at 7.6% on Rimrock Mall. Both assets are now unencumbered by mortgage debt.
On May 11, 2011, the $39 million non recourse loan on Shoppingtown Mall matured and the asset is being transitioned back to the loan servicer. As a result of the maturity default and on-going negotiations with the loan servicer, the Company has recorded a $35.7 million impairment charge on that asset as of June 30, 2011.
Earnings Guidance:
Management is narrowing its previously issued FFO guidance range to a new range of $2.84 to $2.92. The Company's definition of FFO is in accordance with the definition provided by the National Association of Real Estate Investment Trusts ("NAREIT"). Adjusted FFO ("AFFO") excludes impairment charges.
A reconciliation of EPS to FFO per share and AFFO per share follows:
Estimated EPS range: |
$ .19 to $ .27 | |
Plus: real estate depreciation and amortization |
$2.40 - $2.40 | |
Estimated range for FFO per share—diluted: |
$2.59 to $2.67 | |
Plus: impairment charges |
$ .25 - $ .25 | |
Estimated Adjusted FFO per share—diluted |
$2.84 to $2.92 | |
The revised guidance factors in the recent acquisitions but excludes the impact of any possible future acquisitions or dispositions.
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 72 million square feet of gross leaseable area consisting primarily of interests in 70 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 www.macerich.com (Investing Section) and through CCBN at www.earnings.com. The call begins today, July 28, 2011 at 1:00 PM Pacific Time. To listen to the call, please go to any of these websites 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 (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 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 which can be identified by the use of words, such as "expects," "anticipates," "assumes," "projects," "estimated" and "scheduled" and similar expressions that do not relate to historical matters. 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, as well as national, regional and local 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, terms and payments, 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, 2010, 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)
##
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results of Operations:
| |
Results before Discontinued Operations(a) |
Impact of Discontinued Operations(a) |
Results after Discontinued Operations(a) |
|||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
For the Three Months Ended June 30, |
For the Three Months Ended June 30, |
For the Three Months Ended June 30, |
|||||||||||||||||
| |
Unaudited | Unaudited | ||||||||||||||||||
| |
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||
Minimum rents |
$ | 111,282 | $ | 102,509 | (695 | ) | $ | (507 | ) | $ | 110,587 | $ | 102,002 | |||||||
Percentage rents |
3,140 | 3,108 | — | — | 3,140 | 3,108 | ||||||||||||||
Tenant recoveries |
61,081 | 57,259 | (149 | ) | (147 | ) | 60,932 | 57,112 | ||||||||||||
Management Companies' revenues |
8,119 | 12,117 | — | — | 8,119 | 12,117 | ||||||||||||||
Other income |
8,162 | 6,887 | — | — | 8,162 | 6,887 | ||||||||||||||
Total revenues |
191,784 | 181,880 | (844 | ) | (654 | ) | 190,940 | 181,226 | ||||||||||||
Shopping center and operating expenses |
64,442 | 56,731 | (362 | ) | (435 | ) | 64,080 | 56,296 | ||||||||||||
Management Companies' operating expenses |
20,921 | 24,466 | — | — | 20,921 | 24,466 | ||||||||||||||
Income tax benefit |
(1,768 | ) | (1,375 | ) | — | — | (1,768 | ) | (1,375 | ) | ||||||||||
Depreciation and amortization |
65,833 | 59,913 | (371 | ) | (548 | ) | 65,462 | 59,365 | ||||||||||||
REIT general and administrative expenses |
3,742 | 3,642 | — | — | 3,742 | 3,642 | ||||||||||||||
Interest expense |
49,032 | 52,238 | — | — | 49,032 | 52,238 | ||||||||||||||
Loss on early extinguishment of debt |
(32 | ) | (489 | ) | — | — | (32 | ) | (489 | ) | ||||||||||
(Loss) gain on remeasurement, sale or write down of assets, net |
(34,466 | ) | 510 | 24 | 72 | (34,442 | ) | 582 | ||||||||||||
Co-venture interests(b) |
(1,202 | ) | (1,993 | ) | — | — | (1,202 | ) | (1,993 | ) | ||||||||||
Equity in income of unconsolidated joint ventures |
25,207 | 15,762 | — | — | 25,207 | 15,762 | ||||||||||||||
(Loss) income from continuing operations |
(20,911 | ) | 55 | (87 | ) | 401 | (20,998 | ) | 456 | |||||||||||
Discontinued operations: |
||||||||||||||||||||
Loss on sale or write down of assets |
— | — | (24 | ) | (72 | ) | (24 | ) | (72 | ) | ||||||||||
Income (loss) from discontinued operations |
— | — | 111 | (329 | ) | 111 | (329 | ) | ||||||||||||
Total income (loss) from discontinued operations |
— | — | 87 | (401 | ) | 87 | (401 | ) | ||||||||||||
Net (loss) income |
(20,911 | ) | 55 | — | — | (20,911 | ) | 55 | ||||||||||||
Less net (loss) income attributable to noncontrolling interests |
(1,695 | ) | 495 | — | — | (1,695 | ) | 495 | ||||||||||||
Net loss available to common stockholders |
$ | (19,216 | ) | $ | (440 | ) | $ | 0 | $ | 0 | $ | (19,216 | ) | $ | (440 | ) | ||||
Average number of shares outstanding—basic |
131,691 | 123,446 | 131,691 | 123,446 | ||||||||||||||||
Average shares outstanding, assuming full conversion of OP Units(c) |
143,140 | 135,495 | 143,140 | 135,495 | ||||||||||||||||
Average shares outstanding—Funds From Operations ("FFO")—diluted(c) |
143,140 | 135,495 | 143,140 | 135,495 | ||||||||||||||||
Per share loss—diluted before discontinued operations |
— | — | $ | (0.15 | ) | $ | (0.01 | ) | ||||||||||||
Net loss per share—basic |
$ | (0.15 | ) | $ | (0.01 | ) | $ | (0.15 | ) | $ | (0.01 | ) | ||||||||
Net loss per share—diluted(c) |
$ | (0.15 | ) | $ | (0.01 | ) | $ | (0.15 | ) | $ | (0.01 | ) | ||||||||
Dividend declared per share |
$ | 0.50 | $ | 0.50 | $ | 0.50 | $ | 0.50 | ||||||||||||
FFO—basic(c)(d) |
$ | 66,739 | $ | 77,466 | $ | 66,739 | $ | 77,466 | ||||||||||||
FFO—diluted(c)(d) |
$ | 66,739 | $ | 77,466 | $ | 66,739 | $ | 77,466 | ||||||||||||
FFO per share—basic(c)(d) |
$ | 0.47 | $ | 0.57 | $ | 0.47 | $ | 0.57 | ||||||||||||
FFO per share—diluted(c)(d) |
$ | 0.47 | $ | 0.57 | $ | 0.47 | $ | 0.57 | ||||||||||||
Adjusted FFO ("AFFO") per share—diluted(c)(d) |
$ | 0.72 | $ | 0.57 | $ | 0.72 | $ | 0.57 | ||||||||||||
1
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results of Operations:
| |
Results before Discontinued Operations(a) |
Impact of Discontinued Operations(a) |
Results after Discontinued Operations(a) |
|||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
For the Six Months Ended June 30, |
For the Six Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||||
| |
Unaudited | Unaudited | ||||||||||||||||||
| |
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||
Minimum rents |
$ | 220,802 | $ | 204,485 | (1,520 | ) | $ | (1,013 | ) | $ | 219,282 | $ | 203,472 | |||||||
Percentage rents |
6,094 | 6,095 | — | — | 6,094 | 6,095 | ||||||||||||||
Tenant recoveries |
122,754 | 118,268 | (341 | ) | (284 | ) | 122,413 | 117,984 | ||||||||||||
Management Companies' revenues |
18,702 | 22,339 | — | — | 18,702 | 22,339 | ||||||||||||||
Other income |
14,501 | 12,804 | — | (11 | ) | 14,501 | 12,793 | |||||||||||||
Total revenues |
382,853 | 363,991 | (1,861 | ) | (1,308 | ) | 380,992 | 362,683 | ||||||||||||
Shopping center and operating expenses |
127,216 | 117,663 | (800 | ) | (879 | ) | 126,416 | 116,784 | ||||||||||||
Management Companies' operating expenses |
46,777 | 46,653 | — | — | 46,777 | 46,653 | ||||||||||||||
Income tax benefit |
(4,246 | ) | (2,590 | ) | — | — | (4,246 | ) | (2,590 | ) | ||||||||||
Depreciation and amortization |
130,459 | 119,128 | (925 | ) | (1,081 | ) | 129,534 | 118,047 | ||||||||||||
REIT general and administrative expenses |
11,386 | 11,160 | — | — | 11,386 | 11,160 | ||||||||||||||
Interest expense |
101,029 | 107,649 | — | — | 101,029 | 107,649 | ||||||||||||||
Loss on early extinguishment of debt |
(9,133 | ) | (489 | ) | — | — | (9,133 | ) | (489 | ) | ||||||||||
(Loss) gain on remeasurement, sale or write down of assets, net |
(34,903 | ) | 511 | 2,262 | 71 | (32,641 | ) | 582 | ||||||||||||
Co-venture interests(b) |
(2,498 | ) | (3,377 | ) | — | — | (2,498 | ) | (3,377 | ) | ||||||||||
Equity in income of unconsolidated joint ventures |
55,482 | 32,221 | — | — | 55,482 | 32,221 | ||||||||||||||
(Loss) income from continuing operations |
(20,820 | ) | (6,806 | ) | 2,126 | 723 | (18,694 | ) | (6,083 | ) | ||||||||||
Discontinued operations: |
||||||||||||||||||||
Loss on sale or write down of assets |
— | — | (2,262 | ) | (71 | ) | (2,262 | ) | (71 | ) | ||||||||||
Income (loss) from discontinued operations |
— | — | 136 | (652 | ) | 136 | (652 | ) | ||||||||||||
Total loss from discontinued operations |
— | — | (2,126 | ) | (723 | ) | (2,126 | ) | (723 | ) | ||||||||||
Net loss |
(20,820 | ) | (6,806 | ) | — | — | (20,820 | ) | (6,806 | ) | ||||||||||
Less net loss attributable to noncontrolling interests |
(1,638 | ) | (9 | ) | — | — | (1,638 | ) | (9 | ) | ||||||||||
Net loss available to common stockholders |
$ | (19,182 | ) | $ | (6,797 | ) | $ | 0 | $ | 0 | $ | (19,182 | ) | $ | (6,797 | ) | ||||
Average number of shares outstanding—basic |
131,136 | 110,271 | 131,136 | 110,271 | ||||||||||||||||
Average shares outstanding, assuming full conversion of OP Units(c) |
142,810 | 122,379 | 142,810 | 122,379 | ||||||||||||||||
Average shares outstanding—Funds From Operations ("FFO")—diluted(c) |
142,810 | 122,379 | 142,810 | 122,379 | ||||||||||||||||
Per share loss—diluted before discontinued operations |
— | — | $ | (0.14 | ) | $ | (0.07 | ) | ||||||||||||
Net loss per share—basic |
$ | (0.15 | ) | $ | (0.08 | ) | $ | (0.15 | ) | $ | (0.08 | ) | ||||||||
Net loss per share—diluted(c) |
$ | (0.15 | ) | $ | (0.08 | ) | $ | (0.15 | ) | $ | (0.08 | ) | ||||||||
Dividend declared per share |
$ | 1.00 | $ | 1.10 | $ | 1.00 | $ | 1.10 | ||||||||||||
FFO—basic(c)(d) |
$ | 140,421 | $ | 149,063 | $ | 140,421 | $ | 149,063 | ||||||||||||
FFO—diluted(c)(d) |
$ | 140,421 | $ | 149,063 | $ | 140,421 | $ | 149,063 | ||||||||||||
FFO per share—basic(c)(d) |
$ | 0.98 | $ | 1.22 | $ | 0.98 | $ | 1.22 | ||||||||||||
FFO per share—diluted(c)(d) |
$ | 0.98 | $ | 1.22 | $ | 0.98 | $ | 1.22 | ||||||||||||
Adjusted FFO ("AFFO") per share—diluted(c)(d) |
$ | 1.23 | $ | 1.22 | $ | 1.23 | $ | 1.22 | ||||||||||||
2
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
- (a)
- The
Company has classified the results of operations on any dispositions as discontinued operations for the three and six months ended June 30, 2011
and 2010.
- (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 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. Adjusted FFO ("AFFO") excludes impairments of consolidated assets. FFO and FFO on a 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. The Company believes that AFFO and AFFO on a diluted basis provide useful supplemental information regarding the Company's performance as they show a more meaningful and consistent comparison of the Company's operating performance and allow investors to more easily compare the Company's results without taking into account the unrelated impairment losses, which is a non-routine item. FFO and AFFO on a diluted basis are measures investors find most useful in measuring the dilutive impact of outstanding convertible securities. FFO and AFFO do 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 are not indicative of cash available to fund all cash flow needs. The Company also cautions that FFO and AFFO 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, 2011 and 2010 by $1.7 million and $2.3 million, $0.4 million and $0.4 million respectively, or by $0.01 per share, $0.02 per share, $0.00 and $0.00 per share, respectively. Additionally, amortization of above/below market leases increased FFO for the three and six months ended June 30, 2011 and 2010 by $2.7 million, $5.6 million, $2.9 million and $5.8 million, respectively, or by $0.02 per share, $0.04 per share, $0.02 per share and $0.05 per share, respectively.
3
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Pro rata share of unconsolidated joint ventures:
| |
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
Unaudited | Unaudited | ||||||||||||
| |
2011 | 2010 | 2011 | 2010 | ||||||||||
Revenues: |
||||||||||||||
Minimum rents |
$ | 75,205 | $ | 73,350 | $ | 150,106 | $ | 147,401 | ||||||
Percentage rents |
2,106 | 1,757 | 4,321 | 3,653 | ||||||||||
Tenant recoveries |
37,153 | 35,751 | 73,505 | 73,065 | ||||||||||
Other |
5,640 | 4,636 | 10,859 | 8,819 | ||||||||||
Total revenues |
120,104 | 115,494 | 238,791 | 232,938 | ||||||||||
Expenses: |
||||||||||||||
Shopping center and operating expenses |
42,615 | 40,231 | 84,569 | 82,047 | ||||||||||
Interest expense |
29,864 | 31,293 | 60,447 | 62,385 | ||||||||||
Depreciation and amortization |
30,181 | 28,753 | 58,706 | 56,208 | ||||||||||
Total operating expenses |
102,660 | 100,277 | 203,722 | 200,640 | ||||||||||
Gain on remeasurement, sale or write down of assets, net |
10 | 428 | 12,560 | 366 | ||||||||||
Gain (loss) on early extinguishment of debt |
7,753 | — | 7,753 | (689 | ) | |||||||||
Equity in income of joint ventures |
— | 117 | 100 | 246 | ||||||||||
Net income |
$ | 25,207 | $ | 15,762 | $ | 55,482 | $ | 32,221 | ||||||
4
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
