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) August 1, 2016
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):
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
The Company issued a press release on August 1, 2016 announcing results of operations for the Company for the quarter ended June 30, 2016 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 August 1, 2016, 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, 2016 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 |
||
August 1, 2016 Date |
/s/ THOMAS E. O'HERN Senior Executive Vice President, Chief Financial Officer and Treasurer |
3
EXHIBIT NUMBER |
NAME
|
||
---|---|---|---|
99.1 | Press Release dated August 1, 2016 | ||
99.2 |
Supplemental Financial Information for the three and six months ended June 30, 2016 |
4
PRESS RELEASE | ||||
For: |
THE MACERICH COMPANY |
|||
MACERICH ANNOUNCES STRONG QUARTERLY RESULTS |
SANTA MONICA, CA, August 1, 2016The Macerich Company (NYSE Symbol: MAC) today announced results of operations for the quarter ended June 30, 2016, which included net income attributable to the Company of $45.2 million or $.31 per share-diluted for the quarter ended June 30, 2016 compared to net income attributable to the Company for the quarter ended June 30, 2015 of $14.4 million or $.09 per share-diluted. For the quarter, funds from operations ("FFO") diluted was $160.3 million or $1.02 per share-diluted compared to $151.0 million or $.89 per share-diluted for the quarter ended June 30, 2015. A description and reconciliation of EPS per share-diluted to FFO-diluted is included in the financial tables accompanying this press release.
Results and Capital Highlights
"During the second quarter we continued to improve our operating margins and to deliver strong releasing spreads. These were the key drivers to our positive earnings and FFO increases and exceptional same center net operating growth of 6.5% during the quarter." said Arthur Coppola, chairman and chief executive officer of Macerich.
Share Repurchase Program
The Company has used a portion of the proceeds from joint ventures that were completed in October 2015 and January 2016 to complete a total of $1.2 billion of share repurchases under the Company's authorized share repurchase program. During a period from November 13, 2015 to January 19, 2016, the Company repurchased 5.11 million shares of Macerich common stock at an average share price of $78.26. From the period of February 18, 2016 to April 19, 2016, the Company retired 5.08 million shares at an average price of $78.69. The Company's third $400 million ASR program was completed on July 11, 2016 and retired 5.07 million shares at an average price of $78.91. The total shares repurchased under all three ASR programs was 15.3 million shares at an average price of $78.62.
Financing Activity
The Company closed on a $375 million loan on The Shops at North Bridge on May 27, 2016. The loan is a 12 year fixed rate loan with an interest rate of 3.68% and a portion of the proceeds were used to pay off the prior loan of $189 million that had an interest rate of 7.50%.
In addition, the Company has arranged for a $225 million loan at The Village at Corte Madera. The term is 12 years and the fixed interest rate is 3.50%. Closing is expected in August 2016.
On July 6, 2016, the Company amended and extended its $1.5 billion line of credit. The new maturity of the facility is July 2020, extendable to July 2021 at the Company's election. The facility is expandable to $2.0 billion. At the Company's current leverage level the borrowing rate is LIBOR plus 1.33%.
2016 Earnings Guidance
Management is revising its previous EPS guidance and is reaffirming its previous estimate of diluted FFO per share guidance for 2016. A reconciliation of estimated EPS to FFO per share-diluted follows:
|
2016 range | |||
---|---|---|---|---|
Diluted EPS |
| $3.83 - $3.93 | ||
Plus: real estate depreciation and amortization |
3.07 - 3.07 | |||
Less: gain on sale of dispositions |
| 2.85 - 2.85 | ||
| | | | |
Diluted FFO per share |
$4.05 - $4.15 | |||
| | | | |
| | | | |
| | | | |
Details of the guidance assumptions are included in the Company's Form 8-K supplemental financial information.
Macerich, an S&P 500 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.
Macerich currently owns 55 million square feet of real estate consisting primarily of interests in 50 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 Pacific Rim, Arizona, Chicago, and the New York Metro area to Washington DC corridor. 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 (Investors Section). The call begins August 1, 2016 at 11:00 AM Pacific Time. To listen to the call, please go to the website 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 (Investors 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 Investors 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 or other acts of violence 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, 2015, 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)
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TABLE OF CONTENTS
Supplemental Financial Information
For the three and six months ended June 30, 2016
The Macerich Company
Supplemental Financial and Operating Information
Table of Contents
All information included in this supplemental financial package is unaudited, unless otherwise indicated.
This Supplemental Financial Information should be read in connection with the Company's second quarter 2016 earnings announcement (included as Exhibit 99.1 of the Company's Current Report on 8-K, event date August 1, 2016) 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
The Macerich Company (the "Company") is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power 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 June 30, 2016, the Operating Partnership owned or had an ownership interest in 51 regional shopping centers and seven community/power shopping centers aggregating approximately 55 million square feet of gross leasable area ("GLA").
On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure and was discharged from the non-recourse mortgage note payable. Consequently, Flagstaff Mall has been excluded from all Non-GAAP operating data for the periods ended June 30, 2016 and December 31, 2015, including Sales per square foot, Occupancy, Average Base Rent per square foot and Cost of Occupancy as well as the Property Listing.
Excluding Flagstaff Mall, the Company currently owns 50 regional shopping centers and 7 community/power centers aggregating approximately 55 million square feet. These 57 centers (which include any related office space) 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.
This document contains information constituting forward-looking statements and includes expectations regarding the Company's future operational results as well as development, redevelopment and expansion activities. 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, terms and payments, interest rate fluctuations, availability, terms and cost of financing, operating expenses, and competition; adverse changes in the real estate markets, including the liquidity of real estate investments; and risks of real estate development, redevelopment, and expansion, including availability, terms and cost of financing, construction delays, environmental and safety requirements, budget overruns, sunk costs and lease-up; the inability to obtain, or delays in obtaining, all necessary zoning, land-use, building, and occupancy and other required governmental permits and authorizations; and governmental actions and initiatives (including legislative and regulatory changes) as well as terrorist activities or other acts of violence which could adversely affect all of the above factors. Furthermore, occupancy rates and rents at a newly completed property may not be sufficient to make the property profitable. 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, 2015, 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 document or to reflect the occurrence of unanticipated events unless required by law to do so.
1
The Macerich Company
Supplemental Financial and Operating Information (unaudited)
Capital Information and Market Capitalization
|
Period Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
|
6/30/2016 | 12/31/2015 | 12/31/2014 | |||||||
|
dollars in thousands, except per share data |
|||||||||
Closing common stock price per share |
$ | 85.39 | $ | 80.69 | $ | 83.41 | ||||
52 week high |
$ | 86.29 | $ | 95.93 | $ | 85.55 | ||||
52 week low |
$ | 71.82 | $ | 71.98 | $ | 55.21 | ||||
Shares outstanding at end of period |
||||||||||
Class A non-participating convertible preferred units |
138,759 | 138,759 | 145,839 | |||||||
Common shares and partnership units |
155,509,918 | 165,260,655 | 168,721,053 | |||||||
| | | | | | | | | | |
Total common and equivalent shares/units outstanding |
155,648,677 | 165,399,414 | 168,866,892 | |||||||
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Portfolio capitalization data |
||||||||||
Total portfolio debt, including joint ventures at pro rata |
$ | 7,430,517 | $ | 7,010,306 | $ | 7,050,437 | ||||
Equity market capitalization |
13,290,840 | 13,346,079 | 14,085,187 | |||||||
| | | | | | | | | | |
Total market capitalization |
$ | 20,721,357 | $ | 20,356,385 | $ | 21,135,624 | ||||
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
Leverage ratio(a) |
35.9 | % | 34.4 | % | 33.4 | % |
Portfolio Capitalization at June 30, 2016
2
The Macerich Company
Supplemental Financial and Operating Information (unaudited)
Changes in Total Common and Equivalent Shares/Units
|
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Partnership Units |
Company Common Shares |
Class A Non-Participating Convertible Preferred Units |
Total Common and Equivalent Shares/ Units |
|||||||||
Balance as of December 31, 2015 |
10,855,669 | 154,404,986 | 138,759 | 165,399,414 | |||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Conversion of partnership units to cash |
(377 | ) | | | (377 | ) | |||||||
Conversion of partnership units to common shares |
(157,529 | ) | 157,529 | | | ||||||||
Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans |
154,686 | 86,202 | | 240,888 | |||||||||
Repurchase of common shares under the Accelerated Stock Purchase Plan |
| (5,192,802 | ) | | (5,192,802 | ) | |||||||
| | | | | | | | | | | | | |
Balance as of March 31, 2016 |
10,852,449 | 149,455,915 | 138,759 | 160,447,123 | |||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Conversion of partnership units to common shares |
(20,614 | ) | 20,614 | | | ||||||||
Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans |
| 27,601 | | 27,601 | |||||||||
Repurchase of common shares under the Accelerated Stock Purchase Plan |
| (4,826,047 | ) | | (4,826,047 | ) | |||||||
| | | | | | | | | | | | | |
Balance as of June 30, 2016 |
10,831,835 | 144,678,083 | 138,759 | 155,648,677 | |||||||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
3
On the following pages, the Company presents its unaudited pro rata statement of operations and unaudited pro rata balance sheet reflecting the Company's proportionate ownership of each asset in its portfolio. The Company also reconciles net income attributable to the Company to funds from operations ("FFO") and FFO-diluted for the three and six months ended June 30, 2016.
4
UNAUDITED PRO RATA STATEMENT OF OPERATIONS
(Dollars in thousands)
|
For the Three Months Ended June 30, 2016 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Consolidated | Non- Controlling Interests(1) |
Company's Consolidated Share |
Company's Share of Joint Ventures(2) |
Company's Total Share |
|||||||||||
Revenues: |
||||||||||||||||
Minimum rents |
$ | 152,448 | $ | (8,295 | ) | $ | 144,153 | $ | 78,551 | $ | 222,704 | |||||
Percentage rents |
2,394 | (25 | ) | 2,369 | 1,477 | 3,846 | ||||||||||
Tenant recoveries |
75,948 | (4,685 | ) | 71,263 | 30,496 | 101,759 | ||||||||||
Other income |
17,789 | (467 | ) | 17,322 | 6,789 | 24,111 | ||||||||||
Management Companies' revenues |
11,325 | | 11,325 | | 11,325 | |||||||||||
| | | | | | | | | | | | | | | | |
Total revenues |
259,904 | (13,472 | ) | 246,432 | 117,313 | 363,745 | ||||||||||
| | | | | | | | | | | | | | | | |
Expenses: |
||||||||||||||||
Shopping center and operating expenses |
73,910 | (3,801 | ) | 70,109 | 34,889 | 104,998 | ||||||||||
Management Companies' operating expenses |
24,299 | | 24,299 | | 24,299 | |||||||||||
REIT general and administrative expenses |
7,681 | | 7,681 | | 7,681 | |||||||||||
Depreciation and amortization |
85,190 | (3,731 | ) | 81,459 | 43,640 | 125,099 | ||||||||||
Interest expense |
41,195 | (2,326 | ) | 38,869 | 24,170 | 63,039 | ||||||||||
| | | | | | | | | | | | | | | | |
Total expenses |
232,275 | (9,858 | ) | 222,417 | 102,699 | 325,116 | ||||||||||
Equity in income of unconsolidated joint ventures |
14,616 | | 14,616 | (14,616 | ) | | ||||||||||
Co-venture expense |
(3,212 | ) | 3,212 | | | | ||||||||||
Income tax expense |
(514 | ) | | (514 | ) | | (514 | ) | ||||||||
Gain on sale or write down of assets, net |
10,915 | | 10,915 | 2 | 10,917 | |||||||||||
| | | | | | | | | | | | | | | | |
Net income |
49,434 | (402 | ) | 49,032 | | 49,032 | ||||||||||
Less net income attributable to noncontrolling interests |
4,212 | (402 | ) | 3,810 | | 3,810 | ||||||||||
| | | | | | | | | | | | | | | | |
Net income attributable to the Company |
$ | 45,222 | $ | | $ | 45,222 | $ | | $ | 45,222 | ||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Reconciliation of net income attributable to the Company to FFO(3): |
||||||||||||||||
Net income attributable to the Company |
$ |
45,222 |
$ |
|
$ |
45,222 |
||||||||||
Equity in income of unconsolidated joint ventures |
(14,616 | ) | 14,616 | | ||||||||||||
Adjustments to reconcile net income to FFObasic and diluted: |
||||||||||||||||
Noncontrolling interests in the Operating Partnership |
3,810 | | 3,810 | |||||||||||||
Gain on sale or write down of assets, net |
(10,915 | ) | (2 | ) | (10,917 | ) | ||||||||||
Gain on sale of undepreciated assets, net |
225 | 2 | 227 | |||||||||||||
Depreciation and amortization of all property |
81,459 | 43,640 | 125,099 | |||||||||||||
Depreciation on personal property |
(2,544 | ) | (549 | ) | (3,093 | ) | ||||||||||
| | | | | | | | | | | | | | | | |
Total FFOBasic and diluted |
$ | 102,641 | $ | 57,707 | $ | 160,348 | ||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
5
THE MACERICH COMPANY
UNAUDITED PRO RATA STATEMENT OF OPERATIONS
(Dollars in thousands)
|
For the Six Months Ended June 30, 2016 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Consolidated | Non- Controlling Interests(1) |
Company's Consolidated Share |
Company's Share of Joint Ventures(2) |
Company's Total Share |
|||||||||||
Revenues: |
||||||||||||||||
Minimum rents |
$ | 303,496 | $ | (16,610 | ) | $ | 286,886 | $ | 149,743 | $ | 436,629 | |||||
Percentage rents |
5,408 | (101 | ) | 5,307 | 2,787 | 8,094 | ||||||||||
Tenant recoveries |
156,121 | (9,425 | ) | 146,696 | 59,369 | 206,065 | ||||||||||
Other income |
30,937 | (1,029 | ) | 29,908 | 13,632 | 43,540 | ||||||||||
Management Companies' revenues |
19,942 | | 19,942 | | 19,942 | |||||||||||
| | | | | | | | | | | | | | | | |
Total revenues |
515,904 | (27,165 | ) | 488,739 | 225,531 | 714,270 | ||||||||||
| | | | | | | | | | | | | | | | |
Expenses: |
||||||||||||||||
Shopping center and operating expenses |
153,234 | (7,687 | ) | 145,547 | 67,073 | 212,620 | ||||||||||
Management Companies' operating expenses |
52,199 | | 52,199 | | 52,199 | |||||||||||
REIT general and administrative expenses |
16,310 | | 16,310 | | 16,310 | |||||||||||
Depreciation and amortization |
172,121 | (7,425 | ) | 164,696 | 85,516 | 250,212 | ||||||||||
Interest expense |
80,971 | (4,675 | ) | 76,296 | 46,664 | 122,960 | ||||||||||
Loss on extinguishment of debt, net |
3,575 | | 3,575 | | 3,575 | |||||||||||
| | | | | | | | | | | | | | | | |
Total expenses |
478,410 | (19,787 | ) | 458,623 | 199,253 | 657,876 | ||||||||||
Equity in income of unconsolidated joint ventures |
26,276 | | 26,276 | (26,276 | ) | | ||||||||||
Co-venture expense |
(6,501 | ) | 6,501 | | | | ||||||||||
Income tax expense |
(1,831 | ) | | (1,831 | ) | | (1,831 | ) | ||||||||
Gain (loss) on sale or write down of assets, net |
445,371 | | 445,371 | (2 | ) | 445,369 | ||||||||||
| | | | | | | | | | | | | | | | |
Net income |
500,809 | (877 | ) | 499,932 | | 499,932 | ||||||||||
Less net income attributable to noncontrolling interests |
34,672 | (877 | ) | 33,795 | | 33,795 | ||||||||||
| | | | | | | | | | | | | | | | |
Net income attributable to the Company |
$ | 466,137 | $ | | $ | 466,137 | $ | | $ | 466,137 | ||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Reconciliation of net income attributable to the Company to FFO(3): |
||||||||||||||||
Net income attributable to the Company |
$ |
466,137 |
$ |
|
$ |
466,137 |
||||||||||
Equity in income of unconsolidated joint ventures |
(26,276 | ) | 26,276 | | ||||||||||||
Adjustments to reconcile net income to FFObasic and diluted: |
||||||||||||||||
Noncontrolling interests in the Operating Partnership |
33,795 | | 33,795 | |||||||||||||
(Gain) loss on sale or write down of assets, net |
(445,371 | ) | 2 | (445,369 | ) | |||||||||||
Gain (loss) on sale of undepreciated assets, net |
2,637 | (2 | ) | 2,635 | ||||||||||||
Depreciation and amortization of all property |
164,696 | 85,516 | 250,212 | |||||||||||||
Depreciation on personal property |
(4,995 | ) | (1,038 | ) | (6,033 | ) | ||||||||||
| | | | | | | | | | | | | | | | |
Total FFOBasic and diluted |
190,623 | 110,754 | 301,377 | |||||||||||||
Loss on extinguishment of debt, net |
3,575 | | 3,575 | |||||||||||||
| | | | | | | | | | | | | | | | |
Total FFOdiluted, excluding extinguishment of debt |
$ | 194,198 | $ | 110,754 | $ | 304,952 | ||||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
6
Notes to Unaudited Pro Rata Statement of Operations
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 such a presentation also provides investors with a more meaningful measure of its operating results in comparison to the operating results of other REITs. The Company believes that FFO on a diluted basis is a measure investors find most useful in measuring the dilutive impact of outstanding convertible securities. The Company further believes that FFO does 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 is not indicative of cash available to fund all cash flow needs. The Company also cautions that FFO, as presented, may not be comparable to similarly titled measures reported by other REITs.
Management compensates for the limitations of FFO by providing investors with financial statements prepared according to GAAP, along with a detailed discussion of FFO and a reconciliation of FFO and FFO-diluted to net income attributable to the Company. Management believes that to further understand the Company's performance, FFO should be compared with the Company's reported net income and considered in addition to cash flows in accordance with GAAP, as presented in the Company's consolidated financial statements.
7
UNAUDITED PRO RATA BALANCE SHEET
(All Dollars in thousands)
|
As of June 30, 2016 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Consolidated | Non- Controlling Interests(1) |
Company's Consolidated Share |
Company's Share of Joint Ventures(2) |
Company's Total Share |
|||||||||||
ASSETS: |
||||||||||||||||
Property, net(3) |
$ | 7,442,988 | $ | (313,015 | ) | $ | 7,129,973 | $ | 4,404,955 | $ | 11,534,928 | |||||
Cash and cash equivalents |
73,138 | (6,408 | ) | 66,730 | 83,150 | 149,880 | ||||||||||
Restricted cash |
44,997 | | 44,997 | 4,558 | 49,555 | |||||||||||
Tenant and other receivables, net |
110,670 | (18,546 | ) | 92,124 | 45,842 | 137,966 | ||||||||||
Deferred charges and other assets, net |
488,941 | (5,557 | ) | 483,384 | 190,130 | 673,514 | ||||||||||
Due from affiliates |
70,615 | 299 | 70,914 | 2,375 | 73,289 | |||||||||||
Investments in unconsolidated joint ventures |
1,766,330 | | 1,766,330 | (1,766,330 | ) | | ||||||||||
| | | | | | | | | | | | | | | | |
Total assets |
$ | 9,997,679 | $ | (343,227 | ) | $ | 9,654,452 | $ | 2,964,680 | $ | 12,619,132 | |||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
LIABILITIES AND EQUITY: |
||||||||||||||||
Mortgage notes payable |
$ | 3,897,189 | $ | (230,382 | ) | $ | 3,666,807 | $ | 2,691,390 | $ | 6,358,197 | |||||
Bank and other notes payable |
1,015,323 | (3,003 | ) | 1,012,320 | 60,000 | 1,072,320 | ||||||||||
Accounts payable and accrued expenses |
52,836 | (2,267 | ) | 50,569 | 38,089 | 88,658 | ||||||||||
Other accrued liabilities |
372,954 | (22,974 | ) | 349,980 | 196,422 | 546,402 | ||||||||||
Distributions in excess of investment in unconsolidated joint ventures |
21,221 | | 21,221 | (21,221 | ) | | ||||||||||
Co-venture obligation |
61,055 | (61,055 | ) | | | | ||||||||||
| | | | | | | | | | | | | | | | |
Total liabilities |
5,420,578 | (319,681 | ) | 5,100,897 | 2,964,680 | 8,065,577 | ||||||||||
| | | | | | | | | | | | | | | | |
Commitments and contingencies |
||||||||||||||||
Equity: |
||||||||||||||||
Stockholders' equity: |
||||||||||||||||
Common stock |
1,447 | | 1,447 | | 1,447 | |||||||||||
Additional paid-in capital |
4,613,114 | | 4,613,114 | | 4,613,114 | |||||||||||
Accumulated deficit |
(378,389 | ) | | (378,389 | ) | | (378,389 | ) | ||||||||
| | | | | | | | | | | | | | | | |
Total stockholders' equity |
4,236,172 | | 4,236,172 | | 4,236,172 | |||||||||||
Noncontrolling interests |
340,929 | (23,546 | ) | 317,383 | | 317,383 | ||||||||||
| | | | | | | | | | | | | | | | |
Total equity |
4,577,101 | (23,546 | ) | 4,553,555 | | 4,553,555 | ||||||||||
| | | | | | | | | | | | | | | | |
Total liabilities and equity |
$ | 9,997,679 | $ | (343,227 | ) | $ | 9,654,452 | $ | 2,964,680 | $ | 12,619,132 | |||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
8
2016 Guidance Range (Unaudited)
Management is revising its EPS guidance and is reaffirming its previous estimate of FFO per share guidance for 2016. A reconciliation of estimated EPS to FFO per share-diluted follows:
|
Year 2016 Guidance |
|
||
---|---|---|---|---|
Earnings Expectations: |
||||
Earnings per sharediluted |
$3.83 - $3.93 |
|
||
Plus: real estate depreciation and amortization |
$3.07 - $3.07 | |||
Less: gain on sale of depreciated assets |
($2.85) - ($2.85) |
|||
| | | | |
FFO per sharediluted |
$4.05 - $4.15 | |||
| | | | |
| | | | |
| | | | |
Underlying Assumptions to 2016 Guidance |
|
|
||
Cash Same Center Net Operating Income ("NOI") Growth(a) |
4.50% - 5.00% | |||
Assumed acquisitions(b) |
$330 million |
|
||
Assumed dispositions(c) |
$1.15 billion |
|
|
Year 2016 FFO / Share Impact |
|||
---|---|---|---|---|---|
Lease termination income |
$15 million | $0.10 | |||
Capitalized interest |
$16 million | $0.10 | |||
Bad debt expense |
($5 million) | ($0.03 | ) | ||
Loss on early extinguishment of debt(d) |
($3.5 million) | ($0.02 | ) | ||
Dilutive impact on 2016 of assets sold in 2015 and 2016(e) |
($75 million) | ($0.48 | ) | ||
Share repurchase program(f) |
$800 million | $0.17 |
9
The Macerich Company
Supplemental Financial and Operating Information (unaudited)
Supplemental FFO Information(a)
|
As of June 30, | ||||||
---|---|---|---|---|---|---|---|
|
2016 | 2015 | |||||
|
dollars in millions |
||||||
Straight-line rent receivable |
$ | 76.2 | $ | 74.8 |
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
2016 | 2015 | 2016 | 2015 | |||||||||
|
dollars in millions |
||||||||||||
Lease termination income |
$ | 5.9 | $ | 2.8 | $ | 9.4 | $ | 5.4 | |||||
Straight-line rental income |
$ | 3.7 | $ | 2.5 | $ | 5.9 | $ | 4.0 | |||||
Gain on sales of undepreciated assets |
$ | 0.2 | $ | 0.1 | $ | 2.6 | $ | 1.1 | |||||
Amortization of acquired above and below-market leases |
$ | 5.1 | $ | 4.8 | $ | 9.3 | $ | 9.2 | |||||
Amortization of debt premiums |
$ | 1.0 | $ | 5.5 | $ | 2.0 | $ | 12.4 | |||||
Interest capitalized |
$ | 4.6 | $ | 5.2 | $ | 8.7 | $ | 9.9 |
10
The Macerich Company
Supplemental Financial and Operating Information (unaudited)
Capital Expenditures
|
For the Six Months Ended | |
|
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Year Ended 12/31/15 |
Year Ended 12/31/14 |
|||||||||||
|
6/30/16 | 6/30/15 | |||||||||||
|
dollars in millions |
||||||||||||
Consolidated Centers |
| | | | |||||||||
Acquisitions of property and equipment |
$ | 14.3 | $ | 43.4 | $ | 79.8 | $ | 97.9 | |||||
Development, redevelopment, expansions and renovations of Centers |
| 72.8 | | 79.0 | | 218.7 | | 197.9 | |||||
Tenant allowances |
7.8 | 14.2 | 30.4 | 30.5 | |||||||||
Deferred leasing charges |
| 12.8 | | 16.9 | | 26.8 | | 26.6 | |||||
| | | | | | | | | | | | | |
Total |
$ | 107.7 | $ | 153.5 | $ | 355.7 | $ | 352.9 | |||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Unconsolidated Joint Venture Centers(a) |
| | | | |||||||||
Acquisitions of property and equipment |
$ | 332.0 | $ | 151.7 | $ | 160.0 | $ | 158.8 | |||||
Development, redevelopment, expansions and renovations of Centers |
| 52.3 | | 66.7 | | 132.9 | | 201.8 | |||||
Tenant allowances |
4.7 | 1.1 | 6.3 | 4.8 | |||||||||
Deferred leasing charges |
| 3.9 | | 1.4 | | 3.3 | | 3.0 | |||||
| | | | | | | | | | | | | |
Total |
$ | 392.9 | $ | 220.9 | $ | 302.5 | $ | 368.4 | |||||
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
11
The Macerich Company
Supplemental Financial and Operating Information (unaudited)
Regional Shopping Center Portfolio
Sales Per Square Foot(a)
|
Consolidated Centers |
Unconsolidated Joint Venture Centers |
Total Centers |
|||
---|---|---|---|---|---|---|
06/30/2016(b) |
$567 | $711 | $626 | |||
06/30/2015 |
$586 | $800 | $623 | |||
12/31/2015(b) |
$579 | $763 | $635 | |||
12/31/2014(c) |
$556 | $724 | $587 | |||
12/31/2013(d) |
$488 | $717 | $562 | |||
12/31/2012 |
$463 | $629 | $517 |
12
The Macerich Company
Sales Per Square Foot by Property Ranking (Unaudited)
|
|
|
|
|
|
|
|
% of Portfolio 2016 Forecast Pro Rata Real Estate NOI (d) |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sales Per Square Foot | Occupancy | Cost of Occupancy for the Trailing 12 Months Ended 6/30/2016 (c) |
||||||||||||||||||||||
Properties | 6/30/2016 (a) |
12/31/2015 (a) |
6/30/2015 (a) |
6/30/2016 (b) |
12/31/2015 (b) |
6/30/2015 (b) |
|||||||||||||||||||
Group 1: Top 10 | | | | | | | | | |||||||||||||||||
Corte Madera, Village at |
$ | 1,498 | $ | 1,475 | $ | 1,316 | 89.1 | % | 97.9 | % | 97.3 | % | |||||||||||||
Queens Center |
$ | 1,334 | $ | 1,134 | $ | 1,142 | | 97.5 | % | | 98.2 | % | | 96.2 | % | | | | | ||||||
Washington Square |
$ | 1,004 | $ | 1,125 | $ | 1,118 | 99.2 | % | 98.4 | % | 97.7 | % | |||||||||||||
North Bridge, The Shops at |
$ | 910 | $ | 856 | $ | 851 | | 99.5 | % | | 99.8 | % | | 100.0 | % | | | | | ||||||
Tysons Corner Center |
$ | 863 | $ | 851 | $ | 856 | 98.8 | % | 98.9 | % | 98.2 | % | |||||||||||||
Los Cerritos Center |
$ | 872 | $ | 843 | $ | 764 | | 95.6 | % | | 97.2 | % | | 98.5 | % | | | | | ||||||
Biltmore Fashion Park |
$ | 824 | $ | 835 | $ | 864 | 97.8 | % | 99.0 | % | 97.0 | % | |||||||||||||
Santa Monica Place |
$ | 782 | $ | 786 | $ | 809 | | 84.7 | % | | 90.5 | % | | 92.2 | % | | | | | ||||||
Tucson La Encantada |
$ | 777 | $ | 767 | $ | 763 | 94.9 | % | 94.8 | % | 92.0 | % | |||||||||||||
Broadway Plaza(e) |
| n/a | | n/a | | n/a | | n/a | | n/a | | n/a | | | | | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Top 10: | $ | 978 | $ | 957 | $ | 939 | 96.4 | % | 97.7 | % | 97.2 | % | 13.7 | % | 28.2 | % | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Group 2: Top 11-20 | | | | | | | | | | | |||||||||||||||
Scottsdale Fashion Square |
$ | 722 | $ | 745 | $ | 748 | 96.3 | % | 97.8 | % | 96.8 | % | |||||||||||||
Arrowhead Towne Center |
$ | 755 | $ | 741 | $ | 710 | | 95.3 | % | | 95.4 | % | | 96.5 | % | | | | | ||||||
Fashion Outlets of Chicago |
$ | 750 | $ | 734 | $ | 719 | 96.4 | % | 97.9 | % | 93.8 | % | |||||||||||||
Kings Plaza Shopping Center |
$ | 720 | $ | 720 | $ | 690 | | 94.5 | % | | 92.3 | % | | 92.9 | % | | | | | ||||||
Vintage Faire Mall |
$ | 696 | $ | 677 | $ | 661 | 94.5 | % | 96.7 | % | 96.4 | % | |||||||||||||
Kierland Commons |
$ | 662 | $ | 670 | $ | 687 | | 98.7 | % | | 98.3 | % | | 97.0 | % | | | | | ||||||
Chandler Fashion Center |
$ | 656 | $ | 649 | $ | 627 | 96.4 | % | 96.9 | % | 96.6 | % | |||||||||||||
Green Acres Mall |
$ | 636 | $ | 643 | $ | 616 | | 93.5 | % | | 93.2 | % | | 92.3 | % | | | | | ||||||
Fresno Fashion Fair |
$ | 675 | $ | 642 | $ | 617 | 94.5 | % | 98.1 | % | 98.1 | % | |||||||||||||
Country Club Plaza(f) |
| n/a | | n/a | | n/a | | n/a | | n/a | | n/a | | | | | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Top 11-20: | $ | 689 | $ | 696 | $ | 680 | 94.9 | % | 96.3 | % | 95.5 | % | 13.1 | % | 28.4 | % | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
13
The Macerich Company
Sales Per Square Foot by Property Ranking (Unaudited)
|
|
|
|
|
|
|
|
% of Portfolio 2016 Forecast Pro Rata Real Estate NOI (d) |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sales Per Square Foot | Occupancy | Cost of Occupancy for the Trailing 12 Months Ended 6/30/2016 (c) |
||||||||||||||||||||||
Properties | 6/30/2016 (a) |
12/31/2015 (a) |
6/30/2015 (a) |
6/30/2016 (b) |
12/31/2015 (b) |
6/30/2015 (b) |
|||||||||||||||||||
Group 3: Top 21-30 | | | | | | | | | | | | ||||||||||||||
Danbury Fair Mall |
$ | 645 | $ | 633 | $ | 645 | 97.0 | % | 97.4 | % | 99.2 | % | |||||||||||||
Twenty Ninth Street |
$ | 626 | $ | 626 | $ | 620 | | 98.7 | % | | 99.3 | % | | 99.3 | % | | | | | ||||||
Freehold Raceway Mall |
$ | 603 | $ | 610 | $ | 616 | 97.2 | % | 98.7 | % | 98.0 | % | |||||||||||||
Deptford Mall |
$ | 575 | $ | 580 | $ | 595 | | 97.4 | % | | 95.3 | % | | 93.6 | % | | | | | ||||||
Oaks, The |
$ | 545 | $ | 580 | $ | 568 | 96.0 | % | 97.6 | % | 97.8 | % | |||||||||||||
FlatIron Crossing |
$ | 556 | $ | 551 | $ | 545 | | 94.5 | % | | 93.7 | % | | 92.5 | % | | | | | ||||||
Stonewood Center |
$ | 565 | $ | 544 | $ | 549 | 93.6 | % | 98.5 | % | 97.8 | % | |||||||||||||
SanTan Village Regional Center |
$ | 536 | $ | 525 | $ | 521 | | 97.5 | % | | 96.5 | % | | 97.7 | % | | | | | ||||||
Victor Valley, Mall of |
$ | 545 | $ | 520 | $ | 525 | 96.8 | % | 97.9 | % | 98.1 | % | |||||||||||||
Inland Center |
$ | 507 | $ | 510 | $ | 483 | | 95.4 | % | | 99.0 | % | | 97.3 | % | | | | | ||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Top 21-30: | $ | 576 | $ | 575 | $ | 575 | 96.5 | % | 97.2 | % | 97.1 | % | 13.5 | % | 19.7 | % | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Group 4: Top 31-40 | | | | | | | | | | | | ||||||||||||||
West Acres |
$ | 504 | $ | 501 | $ | 512 | 98.9 | % | 99.8 | % | 99.7 | % | |||||||||||||
Lakewood Center |
$ | 473 | $ | 467 | $ | 456 | | 97.1 | % | | 96.3 | % | | 96.6 | % | | | | | ||||||
Valley River Center |
$ | 470 | $ | 465 | $ | 474 | 97.2 | % | 97.4 | % | 95.7 | % | |||||||||||||
Northgate Mall |
$ | 433 | $ | 454 | $ | 431 | | 94.9 | % | | 95.3 | % | | 96.4 | % | | | | | ||||||
South Plains Mall |
$ | 432 | $ | 452 | $ | 460 | 90.1 | % | 93.5 | % | 93.2 | % | |||||||||||||
Pacific View |
$ | 456 | $ | 448 | $ | 420 | | 91.5 | % | | 95.0 | % | | 95.5 | % | | | | | ||||||
La Cumbre Plaza |
$ | 450 | $ | 431 | $ | 427 | 86.7 | % | 93.1 | % | 94.7 | % | |||||||||||||
Superstition Springs Center |
$ | 368 | $ | 369 | $ | 366 | | 94.7 | % | | 94.1 | % | | 93.1 | % | | | | | ||||||
Eastland Mall |
$ | 377 | $ | 364 | $ | 370 | 95.9 | % | 96.8 | % | 92.8 | % | |||||||||||||
Fashion Outlets of Niagara Falls USA |
$ | 341 | | n/a | | n/a | | 92.2 | % | | n/a | | n/a | | | | | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Top 31-40: | $ | 426 | $ | 443 | $ | 440 | 94.5 | % | 95.9 | % | 95.3 | % | 13.7 | % | 14.4 | % | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total Top 40: | $ | 654 | $ | 664 | $ | 654 | | 95.5 | % | | 96.8 | % | | 96.3 | % | | 13.5 | % | | 90.7 | % | ||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
14
The Macerich Company
Sales Per Square Foot by Property Ranking (Unaudited)
|
|
|
|
|
|
|
|
% of Portfolio 2016 Forecast Pro Rata Real Estate NOI (d) |
|||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sales Per Square Foot | Occupancy | Cost of Occupancy for the Trailing 12 Months Ended 6/30/2016 (c) |
||||||||||||||||||||||
Properties | 6/30/2016 (a) |
12/31/2015 (a) |
6/30/2015 (a) |
6/30/2016 (b) |
12/31/2015 (b) |
6/30/2015 (b) |
|||||||||||||||||||
Group 5: 41-49 | | | | | | | | | | | | ||||||||||||||
Westside Pavilion(e) |
|||||||||||||||||||||||||
Towne Mall |
| | | | | | | | | | | | | | | | |||||||||
Cascade Mall |
|||||||||||||||||||||||||
Desert Sky Mall |
| | | | | | | | | | | | | | | | |||||||||
Valley Mall |
|||||||||||||||||||||||||
NorthPark Mall |
| | | | | | | | | | | | | | | | |||||||||
Wilton Mall |
|||||||||||||||||||||||||
SouthPark Mall |
| | | | | | | | | | | | | | | | |||||||||
Paradise Valley Mall(e) |
|||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total 41-49: | $ | 307 | $ | 325 | $ | 318 | | 89.9 | % | | 90.0 | % | | 91.0 | % | | 13.6 | % | | 6.9 | % | ||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
SubtotalRegional Shopping Centers(g) | $ | 626 | $ | 639 | $ | 629 | 95.0 | % | 96.1 | % | 95.8 | % | 13.5 | % | 97.6 | % | |||||||||
Other Properties: | | | | | | | | | |||||||||||||||||
Fashion Outlets of Philadelphia(e)(h) |
n/a | n/a | n/a | n/a | n/a | n/a | |||||||||||||||||||
Community / Power Centers | | | | | | | | | | | | ||||||||||||||
Other Non-mall Assets | |||||||||||||||||||||||||
SubtotalOther Properties | | | | | | | | | | | | | | | | 2.4 | % | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
TOTAL ALL PROPERTIES | 13.5 | % | 100.0 | % | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
15
The Macerich Company
Notes to Sales Per Square Foot by Property Ranking (unaudited)
Footnotes | ||
(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. Properties are ranked by Sales per square foot as of December 31, 2015. On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Consequently, Sales per square foot are excluded for Flagstaff Mall. | |
(b) | Occupancy is the percentage of mall and freestanding GLA leased as of the last day of the reporting period. Occupancy excludes Centers under development and redevelopment. Occupancy excludes Flagstaff Mall as explained in footnote (a). | |
(c) | Cost of Occupancy represents "Tenant Occupancy Costs" divided by "Tenant Sales". Tenant Occupancy Costs in this calculation are the amounts paid to the Company, including minimum rents, percentage rents and recoverable expenditures, which consist primarily of property operating expenses, real estate taxes and repair and maintenance expenditures. | |
(d) | The percentage of Portfolio 2016 Forecast Pro Rata Real Estate NOI is based on guidance provided on August 1, 2016, see page 9. Real Estate NOI excludes straight-line and above/below market adjustments to minimum rents. Real Estate NOI also does not reflect REIT expenses and Management Company revenues and expenses. See the Company's forward-looking statements disclosure on page 1 for factors that may affect the information provided in this column. | |
(e) | These assets are under redevelopment including demolition and reconfiguration of the Centers and tenant spaces, accordingly the Sales per square foot and Occupancy during the periods of redevelopment are not included. | |
(f) | On March 1, 2016, the Company purchased Country Club Plaza located in Kansas City, Missouri in a 50/50 joint venture. The pro rata NOI from this Center is included in the 2016 Guidance Range presented on page 9 and in the percentage of Portfolio 2016 Forecast Pro Rata Real Estate NOI in the table above. | |
(g) | Properties sold prior to June 30, 2016 are excluded in both current and prior periods above. | |
(h) | On July 30, 2014, the Company formed a joint venture to redevelop and rebrand The Gallery in Philadelphia, Pennsylvania as Fashion Outlets of Philadelphia. |
16
The Macerich Company
Supplemental Financial and Operating Information (unaudited)
Occupancy(a)
Regional Shopping Centers: Period Ended |
Consolidated Centers |
Unconsolidated Joint Venture Centers |
Total Centers |
|||||||
---|---|---|---|---|---|---|---|---|---|---|
06/30/2016(b) |
|
94.1% |
|
96.2% |
| 95.0% | ||||
06/30/2015(c) |
95.0% | 98.0% | 95.5% | |||||||
12/31/2015(b) |
|
95.3% |
|
97.8% |
| 96.1% | ||||
12/31/2014(c) |
95.3% | 97.9% | 95.8% |
17
The Macerich Company
Supplemental Financial and Operating Information (unaudited)
Average Base Rent Per Square Foot(a)
|
Average Base Rent PSF(b) |
Average Base Rent PSF on Leases Executed during the trailing twelve months ended(c) |
Average Base Rent PSF on Leases Expiring(d) |
|||||||
---|---|---|---|---|---|---|---|---|---|---|
Consolidated Centers |
| | | |||||||
06/30/2016(e) |
$ | 52.36 | $ | 52.43 | $ | 47.07 | ||||
06/30/2015(f) |
$ | 52.11 | $ | 52.79 | $ | 45.50 | ||||
12/31/2015(e) |
$ | 52.64 | $ | 53.99 | $ | 49.02 | ||||
12/31/2014(f) |
$ | 49.68 | $ | 49.55 | $ | 41.20 | ||||
Unconsolidated Joint Venture Centers |
||||||||||
06/30/2016 |
$ | 57.83 | $ | 74.88 | $ | 59.28 | ||||
06/30/2015 |
$ | 66.85 | $ | 79.94 | $ | 62.76 | ||||
12/31/2015 |
$ | 60.74 | $ | 80.18 | $ | 60.85 | ||||
12/31/2014 |
$ | 63.78 | $ | 82.47 | $ | 64.59 | ||||
All Regional Shopping Centers |
|
|
|
|||||||
06/30/2016(e) |
$ | 54.00 | $ | 57.31 | $ | 49.38 | ||||
06/30/2015(f) |
$ | 53.62 | $ | 55.68 | $ | 47.38 | ||||
12/31/2015(e) |
$ | 54.32 | $ | 57.41 | $ | 50.29 | ||||
12/31/2014(f) |
$ | 51.15 | $ | 54.48 | $ | 44.66 |
18
The Macerich Company
Supplemental Financial and Operating Information (unaudited)
Cost of Occupancy
|
For the trailing twelve months ended June 30, 2016(a) |
|
|
|||||||
---|---|---|---|---|---|---|---|---|---|---|
|
For Years Ended December 31, | |||||||||
|
2015(a) | 2014(b) | ||||||||
Consolidated Centers |
| | | |||||||
Minimum rents |
9.2 | % | 9.0 | % | 8.7 | % | ||||
Percentage rents |
| 0.4 | % | | 0.4 | % | | 0.4 | % | |
Expense recoveries(c) |
4.5 | % | 4.5 | % | 4.3 | % | ||||
| | | | | | | | | | |
Total |
| 14.1 | % | | 13.9 | % | | 13.4 | % | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
|
For the trailing twelve months ended June 30, 2016 |
|
|
|||||||
---|---|---|---|---|---|---|---|---|---|---|
|
For Years Ended December 31, | |||||||||
|
2015 | 2014 | ||||||||
Unconsolidated Joint Venture Centers |
| | | |||||||
Minimum rents |
8.3 | % | 8.1 | % | 8.7 | % | ||||
Percentage rents |
| 0.4 | % | | 0.4 | % | | 0.4 | % | |
Expense recoveries(c) |
4.0 | % | 4.0 | % | 4.5 | % | ||||
| | | | | | | | | | |
Total |
| 12.7 | % | | 12.5 | % | | 13.6 | % | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
|
For the trailing twelve months ended June 30, 2016(a) |
|
|
|||||||
---|---|---|---|---|---|---|---|---|---|---|
|
For Years Ended December 31, | |||||||||
|
2015(a) | 2014(b) | ||||||||
All Centers |
| | | |||||||
Minimum rents |
8.8 | % | 8.7 | % | 8.7 | % | ||||
Percentage rents |
| 0.4 | % | | 0.4 | % | | 0.4 | % | |
Expense recoveries(c) |
4.3 | % | 4.3 | % | 4.3 | % | ||||
| | | | | | | | | | |
Total |
| 13.5 | % | | 13.4 | % | | 13.4 | % | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
19
The Macerich Company
Supplemental Financial and Operating Information (unaudited)
Percentage of Net Operating Income by State
Capitola Mall, sold April 13, 2016, is excluded from the table below. On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Consequently, Flagstaff Mall is also excluded from the table below.
|
|
|||
---|---|---|---|---|
State
|
% of Portfolio 2016 Forecast Real Estate Pro Rata NOI(a) |
|||
California |
27.6 | % | ||
New York |
21.2 | % | ||
Arizona |
16.7 | % | ||
Colorado, Illinois & Missouri(b) |
9.6 | % | ||
Pennsylvania & Virginia |
7.7 | % | ||
New Jersey & Connecticut |
7.5 | % | ||
Oregon & Washington |
4.6 | % | ||
Other(c) |
5.1 | % | ||
| | | | |
Total |
100.0 | % | ||
| | | | |
| | | | |
| | | | |
20
The Macerich Company
Property Listing
June 30, 2016
The following table sets forth certain information regarding the Centers and other locations that are wholly owned or partly owned by the Company. On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Consequently, Flagstaff Mall is excluded from the table below.
Count
|
Company's Ownership(a) |
Name of Center/Location |
Year of Original Construction/ Acquisition |
Year of Most Recent Expansion/ Renovation |
Total GLA(b) |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
CONSOLIDATED CENTERS: |
||||||||||||||
1 |
100% |
Cascade Mall |
1989/1999 | 1998 | 589,000 | ||||||||||
2 |
50.1% |
Chandler Fashion Center |
2001/2002 | | 1,319,000 | ||||||||||
3 |
100% |
Danbury Fair Mall |
1986/2005 | 2010 | 1,270,000 | ||||||||||
4 |
100% |
Desert Sky Mall |
1981/2002 | 2007 | 890,000 | ||||||||||
5 |
100% |
Eastland Mall(d) |
1978/1998 | 1996 | 1,044,000 | ||||||||||
6 |
100% |
Fashion Outlets of Chicago |
2013/ | | 538,000 | ||||||||||
7 |
100% |
Fashion Outlets of Niagara Falls USA |
1982/2011 | 2014 | 686,000 | ||||||||||
8 |
50.1% |
Freehold Raceway Mall |
1990/2005 | 2007 | 1,670,000 | ||||||||||
9 |
100% |
Fresno Fashion Fair |
1970/1996 | 2006 | 963,000 | ||||||||||
10 |
100% |
Green Acres Mall(d) |
1956/2013 | 2007 | 1,799,000 | ||||||||||
11 |
100% |
Inland Center(d) |
1966/2004 | 2004 | 867,000 | ||||||||||
12 |
100% |
Kings Plaza Shopping Center(d) |
1971/2012 | 2002 | 1,190,000 | ||||||||||
13 |
100% |
La Cumbre Plaza(d) |
1967/2004 | 1989 | 493,000 | ||||||||||
14 |
100% |
Northgate Mall |
1964/1986 | 2010 | 750,000 | ||||||||||
15 |
100% |
NorthPark Mall |
1973/1998 | 2001 | 1,051,000 | ||||||||||
16 |
100% |
Oaks, The |
1978/2002 | 2009 | 1,190,000 | ||||||||||
17 |
100% |
Pacific View |
1965/1996 | 2001 | 1,021,000 | ||||||||||
18 |
100% |
Queens Center(d) |
1973/1995 | 2004 | 964,000 | ||||||||||
19 |
100% |
Santa Monica Place |
1980/1999 | 2015 | 517,000 | ||||||||||
20 |
84.9% |
SanTan Village Regional Center |
2007/ | 2009 | 1,047,000 | ||||||||||
21 |
100% |
SouthPark Mall |
1974/1998 | 2014 | 856,000 | ||||||||||
22 |
100% |
Stonewood Center(d) |
1953/1997 | 1991 | 932,000 | ||||||||||
23 |
100% |
Superstition Springs Center |
1990/2002 | 2002 | 1,040,000 |
21
The Macerich Company
Property Listing
June 30, 2016
Count
|
Company's Ownership(a) |
Name of Center/Location |
Year of Original Construction/ Acquisition |
Year of Most Recent Expansion/ Renovation |
Total GLA(b) |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
24 |
100% |
Towne Mall |
1985/2005 | 1989 | 350,000 | ||||||||||
25 |
100% |
Tucson La Encantada |
2002/2002 | 2005 | 243,000 | ||||||||||
26 |
100% |
Valley Mall |
1978/1998 | 1992 | 506,000 | ||||||||||
27 |
100% |
Valley River Center |
1969/2006 | 2007 | 921,000 | ||||||||||
28 |
100% |
Victor Valley, Mall of |
1986/2004 | 2012 | 577,000 | ||||||||||
29 |
100% |
Vintage Faire Mall |
1977/1996 | 2008 | 1,141,000 | ||||||||||
30 |
100% |
Wilton Mall |
1990/2005 | 1998 | 737,000 | ||||||||||
| | | | | | | | | | | | | | | |
|
|
Total Consolidated Centers |
27,161,000 | ||||||||||||
| | | | | | | | | | | | | | | |
UNCONSOLIDATED JOINT VENTURE CENTERS: |
|||||||||||||||
31 |
60% |
Arrowhead Towne Center(c) |
1993/2002 | 2004 | 1,197,000 | ||||||||||
32 |
50% |
Biltmore Fashion Park |
1963/2003 | 2006 | 516,000 | ||||||||||
33 |
50.1% |
Corte Madera, Village at |
1985/1998 | 2005 | 460,000 | ||||||||||
34 |
50% |
Country Club Plaza |
1922/2016 | 2015 | 983,000 | ||||||||||
35 |
51% |
Deptford Mall(c) |
1975/2006 | 1990 | 1,040,000 | ||||||||||
36 |
51% |
FlatIron Crossing(c) |
2000/2002 | 2009 | 1,432,000 | ||||||||||
37 |
50% |
Kierland Commons |
1999/2005 | 2003 | 438,000 | ||||||||||
38 |
60% |
Lakewood Center |
1953/1975 | 2008 | 2,075,000 | ||||||||||
39 |
60% |
Los Cerritos Center(d) |
1971/1999 | 2016 | 1,294,000 | ||||||||||
40 |
50% |
North Bridge, The Shops at(d) |
1998/2008 | | 660,000 | ||||||||||
41 |
50% |
Scottsdale Fashion Square |
1961/2002 | 2015 | 1,812,000 | ||||||||||
42 |
60% |
South Plains Mall |
1972/1998 | 2016 | 1,127,000 | ||||||||||
43 |
51% |
Twenty Ninth Street(c)(d) |
1963/1979 | 2007 | 853,000 | ||||||||||
44 |
50% |
Tysons Corner Center |
1968/2005 | 2005 | 1,971,000 | ||||||||||
45 |
60% |
Washington Square |
1974/1999 | 2005 | 1,442,000 | ||||||||||
46 |
19% |
West Acres |
1972/1986 | 2001 | 971,000 | ||||||||||
| | | | | | | | | | | | | | | |
|
|
Total Unconsolidated Joint Venture Centers |
18,271,000 | ||||||||||||
| | | | | | | | | | | | | | | |
22
The Macerich Company
Property Listing
June 30, 2016
Count
|
Company's Ownership(a) |
Name of Center/Location |
Year of Original Construction/ Acquisition |
Year of Most Recent Expansion/ Renovation |
Total GLA(b) |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
REGIONAL SHOPPING CENTERS UNDER REDEVELOPMENT: |
|||||||||||||||
47 |
50% |
Broadway Plaza(d)(e) |
1951/1985 | 1994 | 921,000 | ||||||||||
48 |
50% |
Fashion Outlets of Philadelphia(d)(e) |
1977/2014 | 1990 | 850,000 | ||||||||||
49 |
100% |
Paradise Valley Mall(f) |
1979/2002 | 2009 | 1,150,000 | ||||||||||
50 |
100% |
Westside Pavilion(f) |
1985/1998 | 2007 | 755,000 | ||||||||||
| | | | | | | | | | | | | | | |
|
|
Total Regional Shopping Centers |
49,108,000 | ||||||||||||
| | | | | | | | | | | | | | | |
COMMUNITY / POWER CENTERS: |
|||||||||||||||
1 |
50% |
Atlas Park, The Shops at(e) |
2006/2011 | 2013 | 371,000 | ||||||||||
2 |
50% |
Boulevard Shops(e) |
2001/2002 | 2004 | 185,000 | ||||||||||
3 |
40.1% |
Estrella Falls, The Market at(e) |
2009/ | 2009 | 225,000 | ||||||||||
4 |
89.4% |
Promenade at Casa Grande(f) |
2007/ | 2009 | 761,000 | ||||||||||
5 |
100% |
Southridge Center(f) |
1975/1998 | 2013 | 823,000 | ||||||||||
6 |
100% |
Superstition Springs Power Center(f) |
1990/2002 | | 206,000 | ||||||||||
7 |
100% |
The Marketplace at Flagstaff Mall(d)(f) |
2007/ | | 268,000 | ||||||||||
| | | | | | | | | | | | | | | |
|
|
Total Community / Power Centers |
2,839,000 | ||||||||||||
| | | | | | | | | | | | | | | |
OTHER ASSETS: |
|||||||||||||||
|
100% |
Various(f)(g) |
401,000 | ||||||||||||
|
100% |
500 North Michigan Avenue(f) |
326,000 | ||||||||||||
|
50% |
Valencia Place at Country Club Plaza(e) |
263,000 | ||||||||||||
|
50% |
Fashion Outlets of Philadelphia-Offices(d)(e) |
526,000 | ||||||||||||
|
100% |
Paradise Village Ground Leases(f) |
53,000 | ||||||||||||
|
100% |
Paradise Village Office Park II(f) |
46,000 | ||||||||||||
|
50% |
Scottsdale Fashion Square-Office(e) |
122,000 | ||||||||||||
|
50% |
Tysons Corner Center-Office(e) |
175,000 | ||||||||||||
|
50% |
Hyatt Regency Tysons Corner Center(e) |
290,000 | ||||||||||||
|
50% |
VITA Tysons Corner Center(e) |
510,000 | ||||||||||||
|
50% |
Tysons Tower(e) |
528,000 | ||||||||||||
| | | | | | | | | | | | | | | |
|
|
Total Other Assets |
3,240,000 | ||||||||||||
| | | | | | | | | | | | | | | |
|
|
Grand Total at June 30, 2016 |
55,187,000 | ||||||||||||
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
23
The Macerich Company
Property Listing
June 30, 2016
24
Joint Venture List
The following table sets forth certain information regarding the Centers and other operating properties that are not wholly-owned by the Company. This list of properties includes unconsolidated joint ventures, consolidated joint ventures, and co-venture arrangements. The percentages shown are the effective legal ownership and economic ownership interests of the Company as of June 30, 2016.
Properties
|
6/30/2016 Legal Ownership(a) |
6/30/2016 Economic Ownership(b) |
Joint Venture | 6/30/2016 Total GLA(c) |
||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Arrowhead Towne Center |
60% | 60% | New River Associates LLC | 1,197,000 | ||||||||
Atlas Park, The Shops at |
50% | 50% | WMAP, L.L.C. | 371,000 | ||||||||
Biltmore Fashion Park |
50% | 50% | Biltmore Shopping Center Partners LLC | 516,000 | ||||||||
Boulevard Shops |
50% | 50% | Propcor II Associates, LLC | 185,000 | ||||||||
Broadway Plaza |
50% | 50% | Macerich Northwestern Associates | 921,000 | ||||||||
Chandler Fashion Center(d) |
50.1% | 50.1% | Freehold Chandler Holdings LP | 1,319,000 | ||||||||
Corte Madera, Village at |
50.1% | 50.1% | Corte Madera Village, LLC | 460,000 | ||||||||
Country Club Plaza |
50% | 50% | Country Club Plaza KC Partners LLC | 983,000 | ||||||||
Deptford Mall |
51% | 51% | Macerich HHF Centers LLC | 1,040,000 | ||||||||
Estrella Falls, The Market at(e) |
40.1% | 40.1% | The Market at Estrella Falls LLC | 225,000 | ||||||||
FlatIron Crossing |
51% | 51% | Macerich HHF Centers LLC | 1,432,000 | ||||||||
Freehold Raceway Mall(d) |
50.1% | 50.1% | Freehold Chandler Holdings LP | 1,670,000 | ||||||||
Fashion Outlets of Philadelphia |
50% | 50% | Various Entities | 850,000 | ||||||||
Fashion Outlets of Philadelphia-Offices |
50% | 50% | Various Entities | 526,000 | ||||||||
Hyatt Regency Tysons Corner Center |
50% | 50% | Tysons Corner Hotel I LLC | 290,000 | ||||||||
Kierland Commons |
50% | 50% | Kierland Commons Investment LLC | 438,000 | ||||||||
Lakewood Center |
60% | 60% | Pacific Premier Retail LLC | 2,075,000 | ||||||||
Los Cerritos Center |
60% | 60% | Pacific Premier Retail LLC | 1,294,000 | ||||||||
North Bridge, The Shops at |
50% | 50% | North Bridge Chicago LLC | 660,000 | ||||||||
Promenade at Casa Grande(f) |
89.4% | 89.4% | WP Casa Grande Retail LLC | 761,000 | ||||||||
SanTan Village Regional Center |
84.9% | 84.9% | Westcor SanTan Village LLC | 1,047,000 | ||||||||
Scottsdale Fashion Square |
50% | 50% | Scottsdale Fashion Square Partnership | 1,812,000 | ||||||||
Scottsdale Fashion Square-Office |
50% | 50% | Scottsdale Fashion Square Partnership | 122,000 | ||||||||
Sears Stores(g) |
50% | 50% | MS Portfolio LLC | 1,550,000 | ||||||||
South Plains Mall |
60% | 60% | Pacific Premier Retail LLC | 1,127,000 | ||||||||
Twenty Ninth Street |
51% | 51% | Macerich HHF Centers LLC | 853,000 | ||||||||
Tysons Corner Center |
50% | 50% | Tysons Corner LLC | 1,971,000 | ||||||||
Tysons Corner Center-Office |
50% | 50% | Tysons Corner Property LLC | 175,000 | ||||||||
Tysons Tower |
50% | 50% | Tysons Corner Property LLC | 528,000 | ||||||||
Valencia Place at Country Club Plaza |
50% | 50% | TM TRS Holding Company LLC | 263,000 | ||||||||
VITA Tysons Corner Center |
50% | 50% | Tysons Corner Property LLC | 510,000 | ||||||||
Washington Square |
60% | 60% | Pacific Premier Retail LLC | 1,442,000 | ||||||||
West Acres |
19% | 19% | West Acres Development, LLP | 971,000 |
25
The Macerich Company
Joint Venture List
due to a capital account greater than its legal ownership percentage, only the legal ownership percentage is shown in this column. The Company's economic ownership of these properties may fluctuate based on a number of factors, including mortgage refinancings, partnership capital contributions and distributions, and proceeds and gains or losses from asset sales, and the matters set forth in the preceding paragraph.
26
The Macerich Company
Supplemental Financial and Operating Information (unaudited)
Debt Summary (at Company's pro rata share)
|
|
|||||||||
---|---|---|---|---|---|---|---|---|---|---|
|
As of June 30, 2016 | |||||||||
|
Fixed Rate | Floating Rate | Total | |||||||
|
dollars in thousands |
|||||||||
Consolidated debt |
$ | 3,339,769 | $ | 1,339,358 | $ | 4,679,127 | ||||
Unconsolidated debt |
2,582,554 | 168,836 | 2,751,390 | |||||||
| | | | | | | | | | |
Total debt |
$ | 5,922,323 | $ | 1,508,194 | $ | 7,430,517 | ||||
Weighted average interest rate |
3.86 |
% |
2.20 |
% |
3.52 |
% |
||||
Weighted average maturity (years) |
6.0 |
27
The Macerich Company
Supplemental Financial and Operating Information (Unaudited)
Outstanding Debt by Maturity Date
|
As of June 30, 2016 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Center/Entity (dollars in thousands)
|
Maturity Date | Effective Interest Rate(a) |
Fixed | Floating | Total Debt Balance(a) |
|||||||||||
I. Consolidated Assets: |
||||||||||||||||
Flagstaff Mall(b) |
11/01/15 | 8.97 | % | $ | 37,000 | $ | | $ | 37,000 | |||||||
Stonewood Center |
11/01/17 | 1.80 | % | 102,543 | | 102,543 | ||||||||||
Freehold Raceway Mall(c) |
01/01/18 | 4.20 | % | 111,604 | | 111,604 | ||||||||||
Santa Monica Place |
01/03/18 | 2.99 | % | 222,209 | | 222,209 | ||||||||||
SanTan Village Regional Center(d) |
06/01/19 | 3.14 | % | 109,671 | | 109,671 | ||||||||||
Chandler Fashion Center(c) |
07/01/19 | 3.77 | % | 100,100 | | 100,100 | ||||||||||
Kings Plaza Shopping Center |
12/03/19 | 3.67 | % | 461,659 | | 461,659 | ||||||||||
Danbury Fair Mall |
10/01/20 | 5.53 | % | 219,050 | | 219,050 | ||||||||||
Fashion Outlets of Niagara Falls USA |
10/06/20 | 4.89 | % | 117,203 | | 117,203 | ||||||||||
Green Acres Mall |
02/03/21 | 3.61 | % | 300,909 | | 300,909 | ||||||||||
Prasada(e) |
05/30/21 | 5.25 | % | 3,004 | | 3,004 | ||||||||||
Tucson La Encantada |
03/01/22 | 4.23 | % | 69,260 | | 69,260 | ||||||||||
Pacific View |
04/01/22 | 4.08 | % | 128,723 | | 128,723 | ||||||||||
Oaks, The |
06/05/22 | 4.14 | % | 203,418 | | 203,418 | ||||||||||
Westside Pavilion |
10/01/22 | 4.49 | % | 145,275 | | 145,275 | ||||||||||
Towne Mall |
11/01/22 | 4.48 | % | 21,765 | | 21,765 | ||||||||||
Victor Valley, Mall of |
09/01/24 | 4.00 | % | 114,529 | | 114,529 | ||||||||||
Queens Center |
01/01/25 | 3.49 | % | 600,000 | | 600,000 | ||||||||||
Vintage Faire |
03/06/26 | 3.55 | % | 271,847 | | 271,847 | ||||||||||
| | | | | | | | | | | | | | | | |
Total Fixed Rate Debt for Consolidated Assets |
3.86 | % | $ | 3,339,769 | $ | | $ | 3,339,769 | ||||||||
| | | | | | | | | | | | | | | | |
Superstition Springs Center |
10/28/16 | 2.27 | % | $ | | $ | 67,599 | $ | 67,599 | |||||||
Northgate Mall |
03/01/17 | 3.35 | % | | 63,662 | 63,662 | ||||||||||
The Macerich Partnership, L.P.Line of Credit(f) |
08/06/18 | 2.13 | % | | 1,009,316 | 1,009,316 | ||||||||||
Fashion Outlets of Chicago |
03/31/20 | 2.10 | % | | 198,781 | 198,781 | ||||||||||
| | | | | | | | | | | | | | | | |
Total Floating Rate Debt for Consolidated Assets |
2.19 | % | $ | | $ | 1,339,358 | $ | 1,339,358 | ||||||||
| | | | | | | | | | | | | | | | |
Total Debt for Consolidated Assets |
3.38 | % | $ | 3,339,769 | $ | 1,339,358 | $ | 4,679,127 | ||||||||
| | | | | | | | | | | | | | | | |
28
The Macerich Company
Supplemental Financial and Operating Information (Unaudited)
Outstanding Debt by Maturity Date
|
As of June 30, 2016 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Center/Entity (dollars in thousands)
|
Maturity Date | Effective Interest Rate(a) |
Fixed | Floating | Total Debt Balance(a) |
|||||||||||
II. Unconsolidated Assets (At Company's pro rata share): |
||||||||||||||||
West Acres (19%) |
10/01/16 | 6.41 | % | $ | 10,416 | $ | | $ | 10,416 | |||||||
Corte Madera, The Village at (50.1%)(g) |
11/01/16 | 7.27 | % | 36,893 | | 36,893 | ||||||||||
FlatIron Crossing (51%) |
01/05/21 | 2.81 | % | 133,798 | | 133,798 | ||||||||||
Washington Square Mall (60%) |
11/01/22 | 3.65 | % | 330,000 | | 330,000 | ||||||||||
Deptford Mall (51%) |
04/03/23 | 3.55 | % | 98,892 | | 98,892 | ||||||||||
Scottsdale Fashion Square (50%) |
04/03/23 | 3.02 | % | 244,468 | | 244,468 | ||||||||||
Tysons Corner Center (50%) |
01/01/24 | 4.13 | % | 402,785 | | 402,785 | ||||||||||
South Plains Mall (60%) |
11/06/25 | 4.22 | % | 120,000 | | 120,000 | ||||||||||
Twenty Ninth Street (51%) |
02/06/26 | 4.10 | % | 76,500 | | 76,500 | ||||||||||
Country Club Plaza (50%) |
04/01/26 | 3.88 | % | 159,537 | | 159,537 | ||||||||||
Lakewood Center (60%) |
06/01/26 | 4.15 | % | 227,324 | | 227,324 | ||||||||||
Los Cerritos Center (60%) |
11/01/27 | 4.00 | % | 315,000 | | 315,000 | ||||||||||
Arrowhead Towne Center (60%) |
02/01/28 | 4.05 | % | 240,000 | | 240,000 | ||||||||||
North Bridge, The Shops at (50%) |
06/01/28 | 3.71 | % | 186,941 | | 186,941 | ||||||||||
| | | | | | | | | | | | | | | | |
Total Fixed Rate Debt for Unconsolidated Assets |
3.86 | % | $ | 2,582,554 | $ | | $ | 2,582,554 | ||||||||
| | | | | | | | | | | | | | | | |
Kierland Commons (50%)(h) |
01/02/18 | 2.53 | % | $ | | $ | 65,706 | $ | 65,706 | |||||||
Boulevard Shops (50%)(h) |
12/16/18 | 2.34 | % | | 9,662 | 9,662 | ||||||||||
Estrella Falls, The Market at (40.1%)(h) |
02/05/20 | 2.47 | % | | 10,303 | 10,303 | ||||||||||
Atlas Park (50%)(h) |
10/28/20 | 2.78 | % | | 23,165 | 23,165 | ||||||||||
Pacific Premier Retail LLC (60%) |
10/31/22 | 1.66 | % | | 60,000 | 60,000 | ||||||||||
| | | | | | | | | | | | | | | | |
Total Floating Rate Debt for Unconsolidated Assets |
2.24 | % | $ | | $ | 168,836 | $ | 168,836 | ||||||||
| | | | | | | | | | | | | | | | |
Total Debt for Unconsolidated Assets |
3.76 | % | $ | 2,582,554 | $ | 168,836 | $ | 2,751,390 | ||||||||
| | | | | | | | | | | | | | | | |
Total Debt |
3.52 | % | $ | 5,922,323 | $ | 1,508,194 | $ | 7,430,517 | ||||||||
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Percentage to Total |
79.70 | % | 20.30 | % | 100.00 | % |
29
The Macerich Company
Supplemental Financial and Operating Information (Unaudited)
Development Pipeline Forecast
(Dollars in millions)
as of June 30, 2016
In-Process Developments and Redevelopments:
Property
|
Project Type | Total Cost(a)(b) at 100% |
Ownership % |
Total Cost(a)(b) Pro Rata |
Pro Rata Capitalized Costs(b) 6/30/2016 |
Expected Delivery(a) |
Stabilized Yield(a)(b)(c) |
||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Broadway Plaza |
Expansion of existing open air center adding 235,000 sf (net) of new shop space to existing 774,000 sf center which is currently anchored by Nordstrom, Neiman Marcus and Macy's. New space created by construction of a more efficient parking structure and the consolidation of stand-alone Macy's Men's Store into a single larger Macy's box. Phase I encompasses demolition of 80,000 sf of existing retail space and construction of 240,000 sf of new retail space for a net increase of 160,000 sf. Phase 2 involves demolition of the existing Macy's Men's building and construction of 75,000 sf of new retail space for a total increase of 235,000 sf of small stores. |
* Phase 1 : $265 * Phase 2 : $40 |
| 50 | % |
* Phase 1 : $133 * Phase 2 : $20 |
* Phase 1 : $109 * Phase 2 : $6 |
* 25% 4Q15 * 50% 2Q16 * 25% 2Q17/2Q18 |
8% | ||||||
| | | | | | | | | | | | | | | |
|
Total: $305 | | Total: $153 | Total: $115 | |||||||||||
Green Acres Commons |
335,000 sf two-story retail center anchored by Dicks Sporting Goods, and comprised of box retail stores and outparcels adjacent to Green Acres Mall | $110 | 100 | % | $110 | $86 | 4Q16 | 11% | |||||||
Fashion Outlets of Philadelphia |
Redevelopment of The Gallery in downtown Philadelphia | $305 - $365(d)(e) | | 50 | % | $153 - $183(d)(e) | $37 | 2018 | 8%(e) | ||||||
Kings Plaza Shopping Center |
250,000 sf redevelopment of existing Sears store, anchored by Primark | $95 - $100 | 100 | % | $95 - $100 | $3 | 2018 | 4%(f) | |||||||
| | | | | | | | | | | | | | | |
Total In-Process |
| $815 - $880 | | | $511 - $546 | $241 | | | |||||||
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
30
The Macerich Company
Supplemental Financial and Operating Information (Unaudited)
Development Pipeline Forecast
(Dollars in millions)
as of June 30, 2016
Shadow Pipeline of Developments and Redevelopments(g):
Property
|
Project Type | Total Cost(a)(b) at 100% |
Ownership % |
Total Cost(a)(b) Pro Rata |
Pro Rata Capitalized Costs(b) 6/30/2016 |
Expected Delivery(a) |
Stabilized Yield(a)(b)(c) |
|||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fashion Outlets of San Francisco |
A 500,000 sf outlet center on the historic site of Candlestick Park | $ | 350 | | 50.1 | % | $ | 175 | $ | 2 | | 2018 - 2019 | 7% - 9% | |||||||
Paradise Valley Mall |
Redevelopment (size TBD) including a theater | TBD | 100 | % | TBD | $ | 1 | TBD | TBD | |||||||||||
Scottsdale Fashion Square |
Office / Residential / Retail Mixed-use development on 7.5 Acres (former Days Inn) | $ | 250 | | 50 | % | $ | 125 | $ | 1 | | 2018 - 2019 | 8% | |||||||
Tysons Corner Center |
Mixed-use Development, Residential Tower with retail ground floor. | $ | 165 | 50 | % | $ | 83 | $ | 1 | 2018 - 2019 | 7% - 8% | |||||||||
Westside Pavilion |
Redevelopment of an existing 755,000 sf Center | | TBD | | 100 | % | | TBD | $ | 1 | | TBD | TBD | |||||||
| | | | | | | | | | | | | | | | | | | | |
Total Shadow Pipeline |
$ | 765 | $ | 383 | $ | 6 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
31
The Macerich Company
Corporate Information
Stock Exchange Listing
New
York Stock Exchange
Symbol: MAC
The following table shows high and low sales prices per share of common stock during each quarter in 2016, 2015 and 2014 and dividends per share of common stock declared and paid by quarter:
|
Market Quotation per Share |
Dividends | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Quarter Ended:
|
High | Low | Declared and Paid |
|||||||
March 31, 2014 |
$ | 62.41 | $ | 55.21 | $ | 0.62 | ||||
June 30, 2014 |
$ | 68.28 | $ | 61.66 | $ | 0.62 | ||||
September 30, 2014 |
$ | 68.81 | $ | 62.62 | $ | 0.62 | ||||
December 31, 2014 |
$ | 85.55 | $ | 63.25 | $ | 0.65 | ||||
March 31, 2015 |
$ | 95.93 | $ | 81.61 | $ | 0.65 | ||||
June 30, 2015 |
$ | 86.31 | $ | 74.51 | $ | 0.65 | ||||
September 30, 2015 |
$ | 81.52 | $ | 71.98 | $ | 0.65 | ||||
December 31, 2015 |
$ | 86.29 | $ | 74.55 | $ | 2.68 | (a) | |||
March 31, 2016 |
$ | 82.88 | $ | 72.99 | $ | 2.68 | (a) | |||
June 30, 2016 |
$ | 85.39 | $ | 71.82 | $ | 0.68 |
Dividend Reinvestment Plan
Stockholders may automatically reinvest their dividends in additional common stock of the Company through the Direct Investment Program, which also provides for purchase by voluntary cash contributions. For additional information, please contact Computershare Trust Company, N.A. at 800-567-0169.
|
|
|
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Corporate Headquarters The Macerich Company 401 Wilshire Boulevard, Suite 700 Santa Monica, California 90401 310-394-6000 www.macerich.com |
Transfer Agent Computershare P.O. Box 30170 College Station, TX 77842-3170 800-567-0169 www.computershare.com |
Macerich Website
For an electronic version of our annual report, our SEC filings and documents relating to Corporate Governance, please visit www.macerich.com.
Investor Relations
Jean Wood Vice President, Investor Relations Phone: 424-229-3366 jean.wood@macerich.com |
John Perry Senior Vice President, Investor Relations Phone: 424-229-3345 john.perry@macerich.com |
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