Macerich Announces 2004 Results SANTA MONICA, Calif., Feb. 10
/PRNewswire-FirstCall/ -- The Macerich Company (NYSE:MAC) today
announced results of operations for the quarter and year ended
December 31, 2004 which included funds from operations ("FFO") per
share - diluted increasing 12% to $1.16 compared to $1.04 for the
quarter ended December 31, 2003 and $3.90 for the year ended
December 31, 2004, a 9% increase compared to $3.58 for 2003. Net
income available to common stockholders for the quarter ended
December 31, 2004 was $30.0 million or $.51 per share-diluted
("EPS") compared to $25.5 million or $.44 per share- diluted for
the quarter ended December 31, 2003. For the year ended December
31, 2004 net income was $82.5 million or $1.40 per share-diluted
compared to $113.2 million or $2.09 per share-diluted for the year
ended December 31, 2003. Net income for the year ended December 31,
2003 was positively impacted by net gain on sales of consolidated
assets of $34.5 million or $.46 per share-diluted compared to a net
gain on asset sales of $8 million or $.11 per share-diluted for the
year ended December 31, 2004. A reconciliation of net income to FFO
and net income per common share-diluted ("EPS") to FFO per
share-diluted is included in the financial highlights section of
this press release. The Company's definition of FFO is in
accordance with the definition provided by the National Association
of Real Estate Investment Trusts ("NAREIT"). Recent highlights: *
During the quarter, Macerich signed 208,000 square feet of
specialty store leases at average initial rents of $38.92 per
square foot. First year rents on mall and freestanding store leases
signed during the quarter were 34% higher than average expiring
rents. * Total same center tenant sales, for the quarter ended
December 31, 2004, were up 4.2% compared to sales levels for the
quarter ended December 31, 2003. Total same center tenant sales for
the year were up 5.9% compared to 2003. Total portfolio mall store
sales per square foot were $391 during 2004 compared to $361 for
2003. * Portfolio occupancy at December 31, 2004 was 92.5% compared
to 93.3% at December 31, 2003. * Growth in same center net
operating income for the quarter was 3.96% compared to the quarter
ended December 31, 2003. * The grand opening of the $275 million
expansion of Queens Center took place in November. Occupancy of the
expanded center was 96% at year end. * The Company announced an
agreement to acquire the Wilmorite Company for $2.33 billion.
Commenting on results and recent events, Arthur Coppola, President
and Chief Executive Officer of Macerich stated, "The quarter was
highlighted by continued strong leasing activity including very
positive releasing spreads and solid growth in same center net
operating income." Redevelopment and Development Activity At Queens
Center, the multi-phased $275 million redevelopment and expansion
had its grand opening the weekend of November 19th. The project
increased the size of the center from 620,000 square feet to
approximately one million square feet. During the course of the
last 12 months, 109 new or expanded stores have opened at Queens
Center. New tenants recently opened include Banana Republic,
Godiva, Guess, Coach, Aldo Shoes, Club Monaco, Benetton, American
Eagle Outfitters, Bostonian, Urban Outfitters, Applebee's Neighbor
Bar & Grill, GNC and Queens Diner. Tenants who have recently
expanded their presence at Queens Center include, The Gap, H &
M, Victoria's Secret and Forever 21. At Washington Square in
suburban Portland the Company is proceeding with an expansion
project which consists of the addition of 80,000 square feet of
shop space. The expansion is underway with substantial completion
earmarked for the fourth quarter of 2005. The development of San
Tan Village progresses. The 500 acre master planned Gilbert project
will unfold during several phases of development which will be
driven by market and retailers' needs. Upon full completion, San
Tan Village will represent 3,000,000 square feet of retail space.
Phase I, featuring a 29 acre full service power center, will open a
Wal-Mart in 2005 followed by a Sam's Club later in the year. Phase
II represents an additional 308,000 square feet of gross leaseable
area. Leases have been signed with OfficeMax, Jo-Ann Superstore,
Bed Bath & Beyond, Marshall's and DSW Designer Shoes
representing 157,000 square feet. Phase II is projected to open
September 2005. The regional shopping center component of San Tan
Village sits on 120 acres representing 1.3 million square feet. The
center's multi-faceted design will incorporate quality elements
from other retail formats including the successful traditional
enclosed mall anchored by Dillard's and May Co.'s Robinsons-May, an
open-air lifestyle center and an 18-screen Harkins Theatre
entertainment district. Infrastructure improvements are underway.
The entertainment district could open as early as 2006 followed by
a projected fall 2007 opening for the majority of the balance of
the center. Acquisitions The acquisition of Fiesta Mall closed in
November. The acquisition of Fiesta solidified Macerich's dominance
in the Phoenix market. Fiesta is a 1,000,000 square foot super
regional mall. It is anchored by Dillard's, Macy, Sears and
Robinsons-May. The mall's shops have annual sales per square foot
of $362. The purchase price was $135 million. Shortly after closing
the Company placed a 10 year $84 million fixed rate loan at 4.87%.
On December 23, 2004 the Company announced that it had signed a
definitive agreement to acquire Wilmorite Properties, Inc. and
Wilmorite Holdings L.P. ("Wilmorite"). The total purchase price
will be approximately $2.33 billion, including the assumption of
approximately $882 million of existing debt at an average interest
rate of 6.43% and the issuance of convertible preferred units and
common units totaling an estimated $320 million. Approximately $210
million of the convertible preferred units can be redeemed, subject
to certain conditions, for that portion of the Wilmorite portfolio
generally located in the greater Rochester area. The balance of the
consideration to Wilmorite's equity holders will be paid in cash.
This transaction has been approved by each company's Board of
Directors, subject to customary closing conditions. A
majority-in-interest of the limited partners of Wilmorite Holdings
L.P. and of the stockholders of its general partner, Wilmorite
Properties, Inc., have also approved this acquisition. It is
currently anticipated that this transaction will be completed in
March, 2005. Wilmorite's existing portfolio includes interests in
11 regional malls and two open-air community centers, with 13.4
million square feet of space located in Connecticut, New York, New
Jersey, Kentucky and Virginia. Approximately 5 million square feet
of gross leaseable area is located at three premier regional malls:
Tysons Corner Center in McLean, Virginia, Freehold Raceway Mall in
Freehold, New Jersey and Danbury Fair Mall in Danbury, Connecticut.
The average tenant sales per square foot, for these three centers,
is in excess of $525. The total portfolio average of mall store
annual sales per square foot is $403. On a pro forma basis
reflecting this acquisition, Macerich will own 75 regional malls
with total portfolio square footage increasing to approximately
76.4 million square feet. Earnings Guidance At this time management
is not modifying the previously provided guidance for 2005. The EPS
and FFO per share guidance will be readdressed after the closing of
the Wilmorite transaction discussed above. The Macerich Company is
a fully integrated self-managed and self-administered real estate
investment trust, which focuses on the acquisition, leasing,
management, development and redevelopment of regional malls
throughout the United States. The Company is the sole general
partner and owns an 81% ownership interest in The Macerich
Partnership, L.P. Macerich now owns approximately 63 million square
feet of gross leaseable area consisting primarily of interests in
64 regional malls. Additional information about The Macerich
Company can be obtained from the Company's web site at
http://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 http://www.macerich.com/ and through
CCBN at http://www.fulldisclosure.com/. The call begins today,
February 10 at 12:30 PM Pacific Time. To listen to the call, please
go to any of these web sites at least 15 minutes prior to the call
in order to register and download audio software if needed. An
online replay at http://www.macerich.com/ will be available for one
year after the call. Note: This release contains statements that
constitute forward-looking statements. Stockholders are cautioned
that any such forward-looking statements are not guarantees of
future performance and involve risks, uncertainties and other
factors that may cause actual results, performance or achievements
of the Company to vary materially from those anticipated, expected
or projected. Such factors include, among others, general industry,
economic and business conditions, which will, among other things,
affect demand for retail space or retail goods, availability and
creditworthiness of current and prospective tenants, anchor or
tenant bankruptcies, closures, mergers or consolidations, lease
rates and terms, interest rate fluctuations, availability and cost
of financing and operating expenses; adverse changes in the real
estate markets including, among other things, competition from
other companies, retail formats and technology, risks of real
estate development and redevelopment, acquisitions and
dispositions; governmental actions and initiatives (including
legislative and regulatory changes); environmental and safety
requirements; and terrorist activities which could adversely affect
all of the above factors. The reader is directed to the Company's
various filings with the Securities and Exchange Commission, for a
discussion of such risks and uncertainties. (See attached tables)
THE MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS) Results before Impact of Results after SFAS 144 (f)
SFAS 144 (f) SFAS 144 (f) Results of For the Three For the Three
For the Three Operations: Months Ended Months Ended Months Ended
December 31 December 31 December 31 Unaudited Unaudited 2004 2003
2004 2003 2004 2003 Minimum Rents (e) 100,181 82,790 (2,625)
(3,787) 97,556 79,003 Percentage Rents 10,071 7,958 (348) (370)
9,723 7,588 Tenant Recoveries 43,792 43,271 (969) (1,451) 42,823
41,820 Management Companies (c) 6,128 5,414 -- -- 6,128 5,414 Other
Income 6,876 5,598 (101) (71) 6,775 5,527 Total Revenues 167,048
145,031 (4,043) (5,679) 163,005 139,352 Shopping center and
operating expenses 50,659 45,235 (1,626) (1,544) 49,033 43,691
Management Companies' operating expenses (c) 13,617 9,837 -- --
13,617 9,837 Depreciation and amortization 41,126 36,303 (951)
(2,259) 40,175 34,044 General, administrative and other expenses
(c) 2,993 1,740 2,993 1,740 Interest expense 40,787 34,418 53 (608)
40,840 33,810 Loss on early extinguishment of debt -- 29 -- 15 --
44 Gain (loss) on sale or writedown of assets 7,048 (117) (6,822)
85 226 (32) Pro rata income (loss) of unconsolidated entities (c)
14,631 16,489 -- -- 14,631 16,489 Income (loss) of the Operating
Partnership from continuing operations 39,545 33,841 (8,341)
(1,198) 31,204 32,643 Discontinued Operations: Gain (loss) on sale
of asset -- -- 6,822 (85) 6,822 (85) Income from discontinued
operations -- -- 1,519 1,283 1,519 1,283 Income before minority
interests 39,545 33,841 -- -- 39,545 33,841 Income allocated to
minority interests 7,220 5,994 -- -- 7,220 5,994 Net income before
preferred dividends 32,325 27,847 -- -- 32,325 27,847 Dividends
earned by preferred stockholders (a) 2,358 2,357 -- -- 2,358 2,357
Net income to common stockholders 29,967 25,490 -- -- 29,967 25,490
Average number of shares outstanding - basic 58,772 57,745 58,772
57,745 Average shares outstanding, - basic, assuming full
conversion of OP Units (d) 72,914 71,324 72,914 71,324 Average
shares outstanding - diluted for FFO (d) 76,928 75,491 76,928
75,491 Per share income - diluted before discontinued operations --
-- 0.40 0.42 Net income per share - basic 0.51 0.44 0.51 0.44 Net
income per share - diluted 0.51 0.44 0.51 0.44 Dividend declared
per share 0.65 0.61 0.65 0.61 Funds from operations "FFO" (b) (d) -
basic 87,198 75,964 87,198 75,964 Funds from operations "FFO" (a)
(b) (d) - diluted 89,556 78,321 89,556 78,321 FFO per share - basic
(b) (d) 1.20 1.07 1.20 1.07 FFO per share - diluted (a) (b) (d)
1.16 1.04 1.16 1.04 percentage change 12.21% Results before Impact
of Results after SFAS 144 (f) SFAS 144 (f) SFAS 144 (f) Results of
For the Year For the Year For the Year Operations: Ended Ended
Ended December 31 December 31 December 31 Unaudited Unaudited 2004
2003 2004 2003 2004 2003 Minimum Rents (e) 340,282 300,578 (10,593)
(14,280) 329,689 286,298 Percentage Rents 18,236 12,999 (582) (572)
17,654 12,427 Tenant Recoveries 163,827 158,600 (4,822) (5,904)
159,005 152,696 Management Companies (c) 21,751 14,630 -- -- 21,751
14,630 Other Income 19,642 17,830 (473) (304) 19,169 17,526 Total
Revenues (e) 563,738 504,637 (16,470) (21,060) 547,268 483,577
Shopping center and operating expenses 171,375 157,852 (6,392)
(6,527) 164,983 151,325 Management Companies' operating expenses
(c) 38,298 31,587 -- -- 38,298 31,587 Depreciation and amortization
146,383 110,156 (4,287) (5,236) 142,096 104,920 General,
administrative and other expenses (c) 11,077 8,482 11,077 8,482
Interest expense 146,382 133,265 (55) (2,558) 146,327 130,707 Loss
on early extinguishment of debt 1,642 155 -- 15 1,642 170 Gain
(loss) on sale or writedown of assets 8,041 34,451 (7,114) (22,031)
927 12,420 Pro rata income of unconsolidated entities (c) 54,881
59,348 -- -- 54,881 59,348 Income (loss) of the Operating
Partnership from continuing operations 111,503 156,939 (12,850)
(28,785) 98,653 128,154 Discontinued Operations: Gain on sale of
asset -- -- 7,114 22,031 7,114 22,031 Income from discontinued
operations -- -- 5,736 6,754 5,736 6,754 Income before minority
interest 111,503 156,939 -- -- 111,503 156,939 Income allocated to
minority interests 19,870 28,907 -- -- 19,870 28,907 Net income
before preferred dividends 91,633 128,032 -- -- 91,633 128,032
Dividends earned by preferred stockholders (a) 9,140 14,816 -- --
9,140 14,816 Net income to common stockholders 82,493 113,216 -- --
82,493 113,216 Average number of shares outstanding - basic 58,537
53,669 58,537 53,669 Average shares outstanding, - basic, assuming
full conversion of OP Units (d) 72,715 67,332 72,715 67,332 Average
shares outstanding - diluted for FFO (d) 76,727 75,198 76,727
75,198 Per share income - diluted before discontinued operations
1.22 1.71 Net income per share - basic 1.41 2.11 1.41 2.11 Net
income per share - diluted 1.40 2.09 1.40 2.09 Dividend declared
per share 2.48 2.32 2.48 2.32 Funds from operations "FFO" (b) (d) -
basic 290,032 254,315 290,032 254,315 Funds from operations "FFO"
(a) (b) (d) - diluted 299,172 269,131 299,172 269,131 FFO per share
- basic (b) (d) 3.99 3.78 3.99 3.78 FFO per share - diluted (a) (b)
(d) 3.90 3.58 3.90 3.58 percentage change 8.95% (a) On February 25,
1998, the Company sold $100,000 of convertible preferred stock and
on June 16, 1998 another $150,000 of convertible preferred stock
was issued. The convertible preferred shares can be converted on a
1 for 1 basis for common stock. These preferred shares are assumed
converted for purposes of net income per share for 2003 and are not
assumed converted for purposes of net income per share for 2004 as
it would be antidilutive to those calculations. On September 9,
2003, 5.487 million shares of Series B convertible preferred stock
were converted into common shares. The weighted average preferred
shares outstanding are assumed converted for purposes of FFO per
diluted share as they are dilutive to that calculation for all
periods presented. (b) The Company uses FFO in addition to net
income to report its operating and financial results and considers
FFO and FFO-diluted as supplemental measures for the real estate
industry and a supplement to Generally Accepted Accounting
Principles (GAAP) measures. NAREIT defines FFO as net income (loss)
(computed in accordance with GAAP), excluding gains (or losses)
from extraordinary items and sales of depreciated operating
properties, plus real estate related depreciation and amortization
and after adjustments for unconsolidated partnerships and joint
ventures. Adjustments for unconsolidated partnerships and joint
ventures are calculated to reflect FFO on the same basis. FFO and
FFO on a fully diluted basis are useful to investors in comparing
operating and financial results between periods. This is especially
true since FFO excludes real estate depreciation and amortization,
as the Company believes real estate values fluctuate based on
market conditions rather than depreciating in value ratably on a
straight-line basis over time. FFO on a fully diluted basis is one
of the measures investors find most useful in measuring the
dilutive impact of outstanding convertible securities. FFO does not
represent cash flow from operations as defined by GAAP, should not
be considered as an alternative to net income as defined by GAAP
and is not indicative of cash available to fund all cash flow
needs. FFO as presented may not be comparable to similarly titled
measures reported by other real estate investment trusts. Effective
January 1, 2003, gains or losses on sale of peripheral land and the
impact of SFAS 141 have been included in FFO. The inclusion of
gains on sales of peripheral land increased FFO for the three and
twelve months ended December 31, 2004 by $1,448 and $4,403
respectively, or by $.02 per share and $.06 per share,
respectively. Additionally, the impact of SFAS No. 141 increased
FFO for the three and twelve months ended December 31, 2004 by $3.4
million and $11.3 million, respectively, or by $.04 per share and
approximately $.15 per share, respectively. The inclusion of gains
on sales of peripheral land increased FFO for the three and twelve
months ended December 31, 2003 by $189 and $1,441, respectively, or
by approximately $.00 per share and $.02 per share, respectively.
Additionally, the impact of SFAS 141 increased FFO for the three
and twelve months ended December 31, 2003 by $2.1 million and $5.6
million, respectively, or by $.03 per share and $.075 per share,
respectively. The Company adopted SFAS No. 141 (see Note (e) below)
effective October 1, 2002. (c) This includes, using the equity
method of accounting, the Company's prorata share of the equity in
income or loss of its unconsolidated joint ventures for all periods
presented and for Macerich Management Company through June 2003.
Effective July 1, 2003, the Company has consolidated Macerich
Management Company. Certain reclassifications have been made in the
2003 financial highlights to conform to the 2004 financial
highlights presentation. (d) The Company has operating partnership
units ("OP units"). Each OP unit can be converted into a share of
Company stock. Conversion of the OP units has been assumed for
purposes of calculating the FFO per share and the weighted average
number of shares outstanding. (e) Effective October 1, 2002, the
Company adopted SFAS No. 141, Business Combinations, which requires
companies that have acquired assets subsequent to June 2001 to
reflect the discounted net present value of market rents in excess
of rents in place at the date of acquisition as a deferred credit
to be amortized into income over the average remaining life of the
acquired leases. The impact on diluted EPS for the three and twelve
months ended December 31, 2004 was approximately $.05 and $.15 per
share, respectively. The impact on diluted EPS for the three and
twelve months ending December 31, 2003 was approximately $.03 per
share and $.07 per share, respectively. In accordance with the
NAREIT definition of FFO, the impact of this accounting treatment
is included in FFO. (f) In October 2001, the FASB issued SFAS No.
144, "Accounting for the Impairment or Disposal of Long-Lived
Assets" ("SFAS 144"). SFAS 144 addresses financial accounting and
reporting for the impairment or disposal of long-lived assets. The
Company adopted SFAS 144 on January 1, 2002. The Company sold its
67% interest in Paradise Village Gateway on January 2, 2003
(acquired in July 2002), and the loss on sale of $0.2 million has
been reclassified to discontinued operations. Additionally, the
Company sold Bristol Center on August 4, 2003, and the results for
the period January 1, 2003 to December 31, 2003 have been
reclassified to discontinued operations. The sale of Bristol Center
resulted in a gain on sale of asset of $22.2 million. On December
17, 2004, the Company sold Westbar and the results for the twelve
months ending December 31, 2004 and 2003 have been reclassified to
discontinued operations. The sale of Westbar resulted in a gain on
sale of $6.8 million. Additionally, the results of Crossroads Mall
in Oklahoma for the twelve months ending December 31, 2004 and 2003
have been reclassified to discontinued operations as the Company
has identified this asset for disposition. THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Summarized Balance Sheet Dec 31 Dec 31 Information 2004 2003
(UNAUDITED) Cash and cash equivalents $72,114 $47,160 Investment in
real estate, net (i) $3,574,553 $3,186,725 Investments in
unconsolidated entities (j) $618,523 $577,908 Total Assets
$4,637,096 $4,145,593 Mortgage and notes payable $3,230,120
$2,682,599 Pro rata share of debt on unconsolidated entities
$1,147,268 $1,046,042 Dec 31 Dec 31 Additional financial data as
of: 2004 2003 Occupancy of centers (g) consolidated assets 92.60%
92.80% unconsolidated assets 92.40% 93.80% Total portfolio 92.50%
93.30% Comparable quarter change in same center sales (g) (h)
consolidated assets 2.90% 0.20% unconsolidated assets 5.20% 4.80%
Total portfolio 4.20% 2.60% Sales per square foot (h): consolidated
assets $368 $350 unconsolidated assets $414 $372 Total portfolio
$391 $361 Additional financial data for the twelve months ended:
Acquisitions of property and equipment - including joint ventures
prorata $342,235 $339,997 Redevelopment and expansions of centers -
including joint ventures prorata $145,888 $183,896 Renovations of
centers - including joint ventures at prorata $31,286 $24,468
Tenant allowances - including joint ventures at prorata $21,361
$12,043 Deferred leasing costs - including joint ventures at
prorata $20,488 $18,486 (g) excludes redevelopment properties --
29th Street Center, Parklane Mall, Santa Monica Place (h) includes
mall and freestanding stores. (i) includes construction in process
on wholly owned assets of $88,228 at December 31, 2004 and $268,810
at December 31, 2003. (j) the Company's prorata share of
construction in process on unconsolidated entities of $32,047 at
December 31, 2004 and $16,510 at December 31, 2003. For the Three
Months For the Year PRORATA SHARE OF JOINT Ended December 31 Ended
December 31 VENTURES (UNAUDITED) (UNAUDITED) (All amounts in (All
amounts in (Unaudited) thousands) thousands) 2004 2003 2004 2003
Revenues: Minimum rents $45,805 $39,793 $174,591 $157,445
Percentage rents 7,074 4,625 11,528 8,163 Tenant recoveries 19,525
16,828 75,524 66,833 Management fee (c) -- -- -- 5,250 Other 2,146
1,428 6,917 4,810 Total revenues 74,550 62,674 268,560 242,501
Expenses: Shopping center expenses 24,658 20,837 91,894 78,459
Interest expense 15,594 14,392 63,550 56,703 Management company
expense (c) -- -- -- 3,013 Depreciation and amortization 20,072
10,952 61,060 45,133 Total operating expenses 60,324 46,181 216,504
183,308 (Loss) on early extinguishment of debt (367) -- (528) --
Gain (loss) on sale or writedown of assets 772 (4) 3,353 155 Net
income 14,631 16,489 54,881 59,348 THE MACERICH COMPANY FINANCIAL
HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) RECONCILIATION
OF For the Three Months For the Year NET INCOME TO FFO (b)(e) Ended
December 31 Ended December 31 (UNAUDITED) (UNAUDITED) (All amounts
in (All amounts in thousands) thousands) 2004 2003 2004 2003 Net
income - available to common stockholders $29,967 $25,490 $82,493
$113,216 Adjustments to reconcile net income to FFO - basic
Minority interest 7,220 5,994 19,870 28,907 (Gain) loss on sale of
wholly owned assets (7,048) 117 (8,041) (34,451) plus gain on land
sales - consolidated assets 600 195 939 1,054 less impairment
writedown of consolidated assets -- -- -- -- (Gain) loss on sale or
write-down of assets from unconsolidated entities (pro rata share)
(772) 4 (3,353) (155) plus gain on land sales - unconsolidated
assets 849 (5) 3,464 387 less impairment writedown of
unconsolidated assets -- -- -- -- Depreciation and amortization on
consolidated assets 41,126 36,303 146,383 110,156 Less depreciation
allocated to minority interests (1,555) (586) (1,555) (586)
Depreciation and amortization on joint ventures and from the
management companies (pro rata) 20,072 10,952 61,060 45,133 Less:
depreciation on personal property and amortization of loan costs
and interest rate caps (3,261) (2,500) (11,228) (9,346) Total FFO -
basic 87,198 75,964 290,032 254,315 Additional adjustment to arrive
at FFO - diluted Preferred stock dividends earned 2,358 2,357 9,140
14,816 Effect of employee/director stock incentive plans -- -- --
-- FFO - diluted 89,556 78,321 299,172 269,131 For the Three Months
For the Year Ended December 31 Ended December 31 (UNAUDITED)
(UNAUDITED) (All amounts in (All amounts in thousands) thousands)
Reconciliation of EPS to FFO per diluted share: 2004 2003 2004 2003
Earnings per share $0.51 $0.44 $1.40 $2.09 Per share impact of
depreciation and amortization real estate $0.77 $0.61 $2.68 $1.93
Per share impact of gain on sale of depreciated assets ($0.09)
$0.00 ($0.10) ($0.44) Per share impact of preferred stock not
dilutive to EPS ($0.03) ($0.01) ($0.08) $0.00 Fully Diluted FFO per
share $1.16 $1.04 $3.90 $3.58 THE MACERICH COMPANY For the Three
Months For the Year RECONCILIATION OF Ended December 31 Ended
December 31 NET INCOME TO EBITDA (UNAUDITED) (UNAUDITED) (All
amounts in (All amounts in thousands) thousands) 2004 2003 2004
2003 Net income - available to common stockholders 29,967 25,490
82,493 113,216 Interest expense 40,787 34,418 146,382 133,265 Less
interest expense allocated to minority interests (480) (406) (480)
(406) Interest expense - unconsolidated entities (pro rata) 15,594
14,392 63,550 56,703 Depreciation and amortization - wholly- owned
centers 41,126 36,303 146,383 110,156 Less depreciation allocated
to minority interests (1,555) (586) (1,555) (586) Depreciation and
amortization - unconsolidated entities (pro rata) 20,072 10,952
61,060 45,133 Minority interest 7,220 5,994 19,870 28,907 Loss on
early extinguishment of debt -- 29 1,642 155 Loss on early
extinguishment of debt - unconsolidated entities 367 -- 528 -- Loss
(gain) on sale of assets - wholly-owned centers (7,048) 117 (8,041)
(34,451) Loss (gain) on sale of assets - unconsolidated entities
(pro rata) (772) 4 (3,353) (155) Preferred dividends 2,358 2,357
9,140 14,816 EBITDA (k) $147,636 $129,064 $517,619 $466,753 THE
MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS) THE MACERICH COMPANY RECONCILIATION OF EBITDA TO
SAME CENTERS - NET OPERATING INCOME ("NOI") For the Three Months
For the Year Ended December 31 Ended December 31 (UNAUDITED)
(UNAUDITED) (All amounts in (All amounts in thousands) thousands)
2004 2003 2004 2003 EBITDA (k) $147,636 $129,064 $517,619 $466,753
Add: REIT general and administrative expenses 2,993 1,740 11,077
8,482 Management Companies' revenues (c) (6,128) (5,414) (21,751)
(14,630) Management Companies' operating expenses (c) 13,617 9,837
38,298 30,038 EBITDA of non- comparable centers (29,472) (11,481)
(89,150) (45,505) SAME CENTERS - Net operating income ("NOI") (l)
$128,646 $123,746 $456,093 $445,138 (k) EBITDA represents earnings
before interest, income taxes, depreciation, amortization, minority
interest, extraordinary items, gain (loss) on sale of assets and
preferred dividends and includes joint ventures at their pro rata
share. Management considers EBITDA to be an appropriate
supplemental measure to net income because it helps investors
understand the ability of the Company to incur and service debt and
make capital expenditures. EBITDA should not be construed as an
alternative to operating income as an indicator of the Company's
operating performance, or to cash flows from operating activities
(as determined in accordance with GAAP) or as a measure of
liquidity. EBITDA, as presented, may not be comparable to similarly
titled measurements reported by other companies. (l) The Company
presents same-center NOI because the Company believes it is useful
for investors to evaluate the operating performance of comparable
centers. Same-center NOI is calculated using total EBITDA and
subtracting out EBITDA from non-comparable centers and eliminating
the management companies and the Company's general and
administrative expenses. DATASOURCE: The Macerich Company CONTACT:
Arthur Coppola, President and Chief Executive Officer, or Thomas E.
O'Hern, Executive Vice President and Chief Financial Officer, of
The Macerich Company, +1-310-394-6000 Web site:
http://www.macerich.com/
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