SANTA MONICA, Calif., Aug. 2 /PRNewswire-FirstCall/ -- The Macerich
Company (NYSE:MAC) today announced results of operations for the
quarter ended June 30, 2007 which included total funds from
operations ("FFO") diluted of $100.7 million or $1.04 per share, up
8.2% compared to $.96 per share- diluted for the quarter ended June
30, 2006. For the six months ended June 30, 2007, FFO-diluted was
$177.1 million compared to $175.4 million for the six months ended
June 30, 2006. Net income available to common stockholders for the
quarter ended June 30, 2007 was $13.4 million or $.19 per share-
diluted compared to $25.7 million or $.36 per share-diluted for the
quarter ended June 30, 2006. For the six months ended June 30,
2007, net income was $16.0 million compared to $33.1 million for
the six months ended June 30, 2006. The Company's definition of FFO
is in accordance with the definition provided by the National
Association of Real Estate Investment Trusts ("NAREIT"). A
reconciliation of net income to FFO and net income per common
share-diluted ("EPS") to FFO per share-diluted is included in the
financial tables accompanying this press release. Recent
Highlights: -- During the quarter, Macerich signed 343,000 square
feet of specialty store leases at average initial rents of $43.71
per square foot. Starting base rent on new lease signings was 26.2%
higher than the expiring base rent. -- Mall tenant annual sales per
square foot for the year ended June 30, 2007 was $458 compared to
$433 at June 30, 2006. -- Portfolio occupancy at June 30, 2007 was
93.2% compared to 92.1% at June 30, 2006. On a same center basis,
occupancy was 93.2% at June 30, 2007 compared to 92.8% at June 30,
2006. -- FFO per share-diluted increased 8.2% compared to the
second quarter of 2006. Contributing to this increase was same
center net operating income growth of 3.4%. Commenting on results,
Arthur Coppola, president and chief executive officer of Macerich
stated, "The quarter reflected continuing strong fundamentals with
occupancy gains, strong releasing spreads and solid same center
growth in net operating income. In addition, we continue to
strengthen our balance sheet with the recent refinancing of
Scottsdale Fashion Square which contributed to a further reduction
in our floating rate debt. We continue to make excellent progress
on our significant pipeline of developments and redevelopments
which we expect will fuel earnings growth in the years to come."
Redevelopment and Development Activity SanTan Village, a 1.2
million square foot regional shopping center on 120 acres, will be
the first regional shopping center developed in the fast- growing
area of Gilbert, Arizona and the first regional mall opened in the
Phoenix metroplex since the opening of Chandler Fashion Center in
2001. Currently 90% committed, the first phase of the open-air
shopping center, including approximately 100 specialty retailers
and Dillard's, is scheduled to open in October, 2007. Remaining
retail phases are slated to open in 2008. Phase I of The Promenade
at Casa Grande, a 1 million square foot, 120 acre regional shopping
center in fast growing Pinal County, Arizona, is 90% committed and
scheduled to open in November, 2007. The first phase features
mini-anchors, restaurants and shops. Bed, Bath & Beyond,
Claire's, Cost Plus World Market, Fashion Bug, Olive Garden, Mimi's
Cafe and Sports Authority will join the existing line up which
includes Dillard's, JCPenney, Target, Kohl's and Harkins Theaters.
Phase II is scheduled to open spring 2008. At Flagstaff Mall, in
Flagstaff, Arizona the first phase of the 287,000 square foot power
center addition is scheduled for a fall 2007 opening. Home Depot
will anchor The Marketplace and will open with first-to-market
retailers including Shoe Pavilion, Marshall's, Best Buy, Old Navy,
Linens 'n Things, Cost Plus World Market and Petco. At Freehold
Raceway Mall in Freehold, New Jersey, construction continues on the
110,000 square foot lifestyle expansion which is slated to open in
November, 2007. The project is 85% committed. New retailers include
Borders, The Cheesecake Factory, P.F. Chang's, Jared and The
Territory Ahead. New retailers joining the existing 1.6 million
square foot regional shopping center, which is undergoing an
interior renovation, include Ruehl, Robot Galaxy, Solstice,
Charlotte Russe, Amuse and Pro Image. Scottsdale Fashion Square,
the 2 million square foot luxury flagship, is undergoing a $130
million redevelopment and expansion. Phase I of the expansion is
expected to begin fall 2007 with the demolition of the vacant
anchor space, acquired from Federated, and an adjacent parking
structure. A 65,000 square foot, first-to-market Barneys New York,
will anchor additional 100,000-square-feet of new shop space slated
to open fall 2009. Construction continues on the combined
redevelopment, expansion and interior renovation of The Oaks, an
upscale 1.1 million square foot super- regional shopping center in
California's affluent Thousand Oaks. The project is expected to be
completed in fall 2008. The market's first Nordstrom department
store is under construction. At Estrella Falls, plans continue
moving forward. Infrastructure improvements are underway and the
site plan approval process for the regional shopping center is
anticipated to be completed in fall 2007. The adjacent power center
is expected to open in phases beginning in 2008. Regional shopping
center retailers announced to date include Coach, Chico's, White
House/Black Market and Industrial Ride Shop; announced power center
retailers include Bashas', Staples, Shoe Pavilion and Razmataz. The
mall is projected to open in phases beginning in 2009. Financing
Activity In July, a $550 million refinancing of Scottsdale Fashion
Square was completed. The loan bears interest at a 5.66% fixed rate
with a seven year term. The Company used its prorata share of
excess proceeds, $162 million, to pay down its line of credit which
reduced floating rate debt as a percentage of total outstanding
indebtedness to under 6%. The Macerich Company is a fully
integrated self-managed and self- administered real estate
investment trust, which focuses on the acquisition, leasing,
management, development and redevelopment of regional malls
throughout the United States. The Company is the sole general
partner and owns an 85% ownership interest in The Macerich
Partnership, L.P. Macerich now owns approximately 77 million square
feet of gross leaseable area consisting primarily of interests in
73 regional malls. Additional information about The Macerich
Company can be obtained from the Company's web site at
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.earnings.com/. The call begins today, August 2,
2007 at 10:30 AM Pacific Time. To listen to the call, please go to
either of these web sites at least 15 minutes prior to the call in
order to register and download audio software as 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,
including the Annual Report on Form 10-K for the year ended
December 31, 2006, for a discussion of such risks and
uncertainties, which discussion is incorporated herein by
reference. THE MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS,
EXCEPT PER SHARE AMOUNTS) Results before Impact of Results after
SFAS 144 (e) SFAS 144 (e) SFAS 144 (e) Results of For the Three For
the Three For the Three Operations: Months Ended Months Ended
Months Ended June 30, June 30, June 30, Unaudited Unaudited 2007
2006 2007 2006 2007 2006 Minimum rents $125,921 $127,483 ($20)
($10,892) $125,901 $116,591 Percentage rents 2,922 2,754 (60) (208)
2,862 2,546 Tenant recoveries 67,995 65,932 144 (5,307) 68,139
60,625 Management Companies' revenues 9,599 7,369 - - 9,599 7,369
Other income 9,352 6,341 (65) (381) 9,287 5,960 Total revenues
215,789 209,879 (1) (16,788) 215,788 193,091 Shopping center and
operating expenses 69,172 70,151 (398) (6,153) 68,774 63,998
Management Companies' operating expenses 18,519 12,125 - - 18,519
12,125 Income tax (benefit) expense (787) 218 - - (787) 218
Depreciation and amortization 60,404 59,411 - (3,401) 60,404 56,010
REIT general and administrative expenses 4,412 3,292 - - 4,412
3,292 Interest expense 62,226 71,188 35 (3,040) 62,261 68,148 Loss
on early extinguishment of debt - - - - - - Gain (loss)on sale or
writedown of assets 1,183 62,961 1,096 (62,961) 2,279 - Equity in
income of unconsolidated joint ventures (c) 18,997 17,861 - -
18,997 17,861 Minority interests in consolidated joint ventures
(55) (37,904) 28 37,363 (27) (541) Income (loss) from continuing
operations 21,968 36,412 1,486 (29,792) 23,454 6,620 Discontinued
Operations: (Loss) gain on sale of assets - - (1,124) 25,952
(1,124) 25,952 (Loss) income from discontinued operations - - (362)
3,840 (362) 3,840 Income before minority interests of OP 21,968
36,412 - - 21,968 36,412 Income allocated to minority interests of
OP 2,398 4,770 - - 2,398 4,770 Net income before preferred
dividends 19,570 31,642 - - 19,570 31,642 Preferred dividends and
distributions (a) 6,122 5,970 - - 6,122 5,970 Net income to common
stockholders $13,448 $25,672 $0 $0 $13,448 $25,672 Average number
of shares outstanding - basic 71,528 71,458 71,528 71,458 Average
shares outstanding, assuming full conversion of OP Units (d) 84,552
85,023 84,552 85,023 Average shares outstanding - diluted for FFO
(a) (d) 96,701 88,650 96,701 88,650 Per share income - diluted
before discontinued operations - - $0.21 $0.01 Net income per
share-basic $0.19 $0.36 $0.19 $0.36 Net income per share- diluted
(a) $0.19 $0.36 $0.19 $0.36 Dividend declared per share $0.71 $0.68
$0.71 $0.68 Funds from operations "FFO" (b)(d)- basic $89,409
$82,860 $89,409 $82,860 Funds from operations "FFO" (a)(b) (d) -
diluted $100,696 $85,327 $100,696 $85,327 FFO per share - basic(b)
(d) $1.06 $0.98 $1.06 $0.98 FFO per share - diluted(a)(b)(d) $1.04
$0.96 $1.04 $0.96 Results before Impact of Results after SFAS 144
(e) SFAS 144 (e) SFAS 144 (e) Results of For the Six For the Six
For the Six Operations: Months Ended Months Ended Months Ended June
30, June 30, June 30, Unaudited Unaudited 2007 2006 2007 2006 2007
2006 Minimum rents $249,913 $261,069 ($30) ($22,390) $249,883
$238,679 Percentage rents 6,706 5,720 (79) (804) 6,627 4,916 Tenant
recoveries 135,778 133,338 15 (10,370) 135,793 122,968 Management
Companies' revenues 18,353 14,626 - - 18,353 14,626 Other income
16,946 13,289 (146) (697) 16,800 12,592 Total revenues 427,696
428,042 (240) (34,261) 427,456 393,781 Shopping center and
operating expenses 137,851 138,278 (456) (12,436) 137,395 125,842
Management Companies' operating expenses 36,274 26,839 - - 36,274
26,839 Income tax (benefit) expense (907) (315) - - (907) (315)
Depreciation and amortization 117,492 122,951 2 (7,530) 117,494
115,421 REIT general and administrative expenses 9,785 6,990 - -
9,785 6,990 Interest expense 129,781 143,153 35 (6,224) 129,816
136,929 Loss on early extinguishment of debt 877 1,782 - - 877
1,782 Gain (loss)on sale or writedown of assets 2,646 62,460 1,385
(62,961) 4,031 (501) Equity in income of unconsolidated joint
ventures(c) 33,480 38,877 - - 33,480 38,877 Minority interests in
consolidated joint ventures (1,546) (38,407) 30 37,403 (1,516)
(1,004) Income (loss) from continuing operations 31,123 51,294
1,594 (33,629) 32,717 17,665 Discontinued Operations: (Loss) gain
on sale of assets - - (1,413) 25,952 (1,413) 25,952 (Loss) income
from discontinued operations - - (181) 7,677 (181) 7,677 Income
before minority interests of OP 31,123 51,294 - - 31,123 51,294
Income allocated to minority interests of OP 2,865 6,230 - - 2,865
6,230 Net income before preferred dividends 28,258 45,064 - -
28,258 45,064 Preferred dividends and distributions(a) 12,244
11,939 - - 12,244 11,939 Net income to common stockholders $16,014
$33,125 $0 $0 $16,014 $33,125 Average number of shares outstanding
- basic 71,597 70,152 71,597 70,152 Average shares outstanding,
assuming full conversion of OP Units (d) 84,792 83,807 84,792
83,807 Average shares outstanding - diluted for FFO (a) (d) 88,419
87,434 88,419 87,434 Per share income - diluted before discontinued
operations - - $0.24 $0.07 Net income per share-basic $0.22 $0.47
$0.22 $0.47 Net income per share - diluted (a) $0.22 $0.47 $0.22
$0.47 Dividend declared per share $1.42 $1.36 $1.42 $1.36 Funds
from operations "FFO" (b)(d) - basic $171,900 $170,504 $171,900
$170,504 Funds from operations "FFO" (a)(b) (d) - diluted $177,051
$175,437 $177,051 $175,437 FFO per share - basic(b) (d) $2.04 $2.04
$2.04 $2.04 FFO per share - diluted (a) (b) (d) $2.00 $2.01 $2.00
$2.01 (a) On February 25, 1998, the Company sold $100,000 of
convertible preferred stock representing 3.627 million shares. The
convertible preferred shares can be converted on a 1 for 1 basis
for common stock. These preferred shares are not assumed converted
for purposes of net income per share - diluted for 2007 and 2006 as
they would be antidilutive to those calculations. The weighted
average preferred shares outstanding are assumed converted for
purposes of FFO per share - diluted as they are dilutive to those
calculations for all periods presented. On April 25, 2005, in
connection with the acquisition of Wilmorite Holdings, L.P. and its
affiliates, the Company issued as part of the consideration
participating and non-participating convertible preferred units in
MACWH, LP. These preferred units are not assumed converted for
purposes of net income per share - diluted and FFO per share -
diluted for 2007 and 2006 as they would be antidilutive to those
calculations. On March 16, 2007, the Company issued $950 million of
convertible senior notes. These notes are not assumed converted for
purposes of net income per share - diluted for 2007 as they would
be antidilutive to the calculation. These notes are assumed
converted for purposes of FFO per share - diluted for the three
months ended June 30, 2007 as they are dilutive to the calculation.
(b) The Company uses FFO in addition to net income to report its
operating and financial results and considers FFO and FFO-diluted
as supplemental measures for the real estate industry and a
supplement to Generally Accepted Accounting Principles (GAAP)
measures. NAREIT defines FFO as net income (loss) (computed in
accordance with GAAP), excluding gains (or losses) from
extraordinary items and sales of depreciated operating properties,
plus real estate related depreciation and amortization and after
adjustments for unconsolidated partnerships and joint ventures.
Adjustments for unconsolidated partnerships and joint ventures are
calculated to reflect FFO on the same basis. FFO and FFO on a fully
diluted basis are useful to investors in comparing operating and
financial results between periods. This is especially true since
FFO excludes real estate depreciation and amortization, as the
Company believes real estate values fluctuate based on market
conditions rather than depreciating in value ratably on a
straight-line basis over time. FFO on a fully diluted basis is one
of the measures investors find most useful in measuring the
dilutive impact of outstanding convertible securities. FFO does not
represent cash flow from operations as defined by GAAP, should not
be considered as an alternative to net income as defined by GAAP
and is not indicative of cash available to fund all cash flow
needs. FFO as presented may not be comparable to similarly titled
measures reported by other real estate investment trusts. Effective
January 1, 2003, gains or losses on sale of undepreciated assets
and the impact of SFAS 141 have been included in FFO. The inclusion
of gains on sales of undepreciated assets (decreased) increased FFO
for the three and six months ended June 30, 2007 and 2006 by $(0.2)
million, $0.7 million, $3.5 million and $3.6 million, respectively,
or by $.00 per share, $0.01 per share, $0.04 per share and $.04 per
share, respectively. Additionally, SFAS 141 increased FFO for the
three and six months ended June 30, 2007 and 2006 by $3.5 million,
$7.5 million, $4.3 million and $8.9 million, respectively, or by
$.04 per share, $0.08 per share, $0.05 per share and $0.10 per
share, respectively. (c) This includes, using the equity method of
accounting, the Company's prorata share of the equity in income or
loss of its unconsolidated joint ventures for all periods
presented. (d) The Macerich Partnership, LP (the "Operating
Partnership" or the "OP") has operating partnership units ("OP
units"). Each OP unit can be converted into a share of Company
stock. Conversion of the OP units not owned by the Company has been
assumed for purposes of calculating the FFO per share and the
weighted average number of shares outstanding. The computation of
average shares for FFO - diluted includes the effect of outstanding
stock options and restricted stock using the treasury method and
assumes conversion of MACWH, LP preferred and common units to the
extent they are dilutive to the calculation. For the three and six
months ended June 30, 2007 and 2006, the MACWH, LP preferred units
were antidilutive to FFO. (e) In October 2001, the FASB issued SFAS
No. 144, "Accounting for the Impairment or Disposal of Long-Lived
Assets" ("SFAS 144"). SFAS 144 addresses financial accounting and
reporting for the impairment or disposal of long-lived assets. The
Company adopted SFAS 144 on January 1, 2002. The Company has
classified the results of operations for all of the below
dispositions to discontinued operations. On June 9, 2006,
Scottsdale 101 in Arizona was sold. The sale of this property
resulted in a gain on sale in 2006, at the Company's prorata share,
of $25.8 million. On July 13, 2006, Park Lane Mall in Nevada was
sold. The sale of this property resulted in a gain on sale of $5.9
million in 2006. On July 27, 2006, Greeley Mall in Colorado and
Holiday Village in Montana were sold. The sale of these properties
resulted in gains on sale of $21.3 million and $7.4 million,
respectively, in 2006. On August 11, 2006, Great Falls Marketplace
in Montana was sold. The sale of this property resulted in a gain
on sale of $11.8 million in 2006. On December 29, 2006, Citadel
Mall in Colorado Springs, Colorado, Crossroads Malls in Oklahoma
City, Oklahoma and Northwest Arkansas Mall in Fayetteville,
Arkansas were sold. The sale of these properties resulted in a
total gain on sale of $132.7 million in 2006. June 30, December 31,
Summarized Balance Sheet Information 2007 2006 (UNAUDITED) Cash and
cash equivalents $49,034 $269,435 Investment in real estate, net
(h) $5,914,882 $5,755,283 Investments in unconsolidated entities
(i) $987,021 $1,010,380 Total assets $7,498,814 $7,562,163 Mortgage
and notes payable $5,123,549 $4,993,879 Pro rata share of debt on
unconsolidated entities $1,665,475 $1,664,447 Total common shares
outstanding: 71,642 71,568 Total preferred shares outstanding:
3,627 3,627 Total partnership/preferred units outstanding: 15,687
16,342 June 30, June 30, Additional financial data as of: 2007 2006
(UNAUDITED) Occupancy of centers (f) 93.20% 92.10% Comparable
quarter change in same center sales (f) (g) 1.21% 4.40% Additional
financial data for the six months ended: Acquisitions of property
and equipment - including joint ventures at pro rata $5,216
$265,455 Redevelopment and expansions of centers - including joint
ventures at pro rata $248,353 $80,864 Renovations of
centers-including joint ventures at pro rata $19,778 $26,070 Tenant
allowances- including joint ventures at pro rata $13,515 $13,624
Deferred leasing costs- including joint ventures at pro rata
$15,406 $13,606 (f) excludes redevelopment properties (Santan
Village Phase 2, Santa Monica Place, The Oaks, Twenty Ninth Street
and Westside Pavilion Adjacent) (g) includes mall and freestanding
stores. (h) includes construction in process on wholly owned assets
of $455,552 at June 30, 2007 and $294,115 at December 31, 2006. (i)
the Company's pro rata share of construction in process on
unconsolidated entities of $51,996 at June 30, 2007 and $45,268 at
December 31, 2006. For the Three Months For the Six Months PRORATA
SHARE OF Ended June 30, Ended June 30, JOINT VENTURES (UNAUDITED)
(UNAUDITED) (All amounts in (All amounts in thousands) thousands)
2007 2006 2007 2006 Revenues: Minimum rents $61,985 $59,100
$123,875 $117,470 Percentage rents 1,938 1,894 4,225 4,522 Tenant
recoveries 28,602 26,403 57,791 54,006 Other 3,291 3,139 5,954
6,676 Total revenues 95,816 90,536 191,845 182,674 Expenses:
Shopping center expenses 32,807 29,286 63,395 60,444 Interest
expense 23,751 23,292 48,068 42,753 Depreciation and amortization
20,696 20,585 45,084 41,164 Total operating expenses 77,254 73,163
156,547 144,361 Gain (loss) on sale of assets 362 244 (2,020) 244
Equity in income of joint ventures 73 244 202 320 Net income
$18,997 $17,861 $33,480 $38,877 For the Three Months For the Six
Months RECONCILIATION OF NET Ended June 30, Ended June 30, INCOME
TO FFO (b)(e) (UNAUDITED) (UNAUDITED) (All amounts in (All amounts
in thousands) thousands) 2007 2006 2007 2006 Net income - available
to common stockholders $13,448 $25,672 $16,014 $33,125 Adjustments
to reconcile net income to FFO - basic Minority interest in OP
2,398 4,770 2,865 6,230 Gain on sale of consolidated assets (1,183)
(62,961) (2,646) (62,460) plus (loss) gain on undepreciated asset
sales - consolidated assets (542) 3,255 339 3,376 plus minority
interest share of (loss) gain on sale of consolidated joint
ventures (488) 37,008 348 37,008 (Gain) loss on sale of assets from
unconsolidated entities (pro rata share) (362) (244) 2,020 (244)
plus gain on undepreciated asset sales - unconsolidated entities
(pro rata share) 350 244 350 244 Depreciation and amortization on
consolidated assets 60,404 59,411 117,492 122,951 Less depreciation
and amortization allocable to minority interests on consolidated
joint ventures (1,332) (1,247) (2,326) (3,222) Depreciation and
amortization on joint ventures (pro rata) 20,696 20,585 45,084
41,164 Less: depreciation on personal property and amortization of
loan costs and interest rate caps (3,980) (3,633) (7,640) (7,668)
Total FFO - basic 89,409 82,860 171,900 170,504 Additional
adjustment to arrive at FFO - diluted Preferred stock dividends
earned 2,575 2,467 5,151 4,933 Convertible debt - interest expense
8,712 - - - Total FFO - diluted $100,696 $85,327 $177,051 $175,437
For the Three Months For the Six Months Ended June 30, Ended June
30, (UNAUDITED) (UNAUDITED) Reconciliation of EPS to FFO per
diluted share: 2007 2006 2007 2006 Earnings per share - Diluted
$0.19 $0.36 $0.22 $0.47 Per share impact of depreciation and
amortization of real estate $0.90 $0.89 $1.80 $1.83 Per share
impact of gain on sale of depreciated assets ($0.03) ($0.26)
($0.01) ($0.27) Per share impact of preferred stock not dilutive to
EPS ($0.02) ($0.03) ($0.01) ($0.02) Fully Diluted FFO per share
$1.04 $0.96 $2.00 $2.01 THE MACERICH COMPANY For the Three Months
For the Six Months RECONCILIATION OF NET Ended June 30, Ended June
30, INCOME TO EBITDA (UNAUDITED) (UNAUDITED) (All amounts in (All
amounts in thousands) thousands) 2007 2006 2007 2006 Net income -
available to common stockholders $13,448 $25,672 $16,014 $33,125
Interest expense 62,226 71,188 129,781 143,153 Interest expense -
unconsolidated entities (pro rata) 23,751 23,292 48,068 42,753
Depreciation and amortization - consolidated assets 60,404 59,411
117,492 122,951 Depreciation and amortization - unconsolidated
entities (pro rata) 20,696 20,585 45,084 41,164 Minority interest
2,398 4,770 2,865 6,230 Less: Interest expense and depreciation and
amortization allocable to minority interests on consolidated joint
ventures (1,766) (2,060) (3,201) (4,927) Loss on early
extinguishment of debt - - 877 1,782 Gain on sale of assets -
consolidated assets (1,183) (62,961) (2,646) (62,460) Loss (gain)
on sale of assets - unconsolidated entities (pro rata) (362) (244)
2,020 (244) Add: Minority interest share of (loss) gain on sale of
consolidated joint ventures (488) 37,008 348 37,008 Income tax
(benefit) expense (787) 218 (907) (315) Preferred dividends 6,122
5,970 12,244 11,939 EBITDA (j) $184,459 $182,849 $368,039 $372,159
THE MACERICH COMPANY RECONCILIATION OF EBITDA TO SAME CENTERS - NET
OPERATING INCOME ("NOI") For the Three Months For the Six Months
Ended June 30, Ended June 30, (UNAUDITED) (UNAUDITED) (All amounts
in (All amounts in thousands) thousands) 2007 2006 2007 2006 EBITDA
(j) $184,459 $182,849 $368,039 $372,159 Add: REIT general and
administrative expenses 4,412 3,292 9,785 6,990 Management
Companies' revenues (c) (9,599) (7,369) (18,353) (14,626)
Management Companies' operating expenses (c) 18,519 12,125 36,274
26,839 Lease termination income of comparable centers (2,134)
(1,796) (5,531) (10,365) EBITDA of non-comparable centers (20,724)
(19,910) (40,799) (40,415) SAME CENTERS - Net operating income
("NOI") (k) $174,933 $169,191 $349,415 $340,582 (j) EBITDA
represents earnings before interest, income taxes, depreciation,
amortization, minority interest, extraordinary items, gain (loss)
on sale of assets and preferred dividends and includes joint
ventures at their pro rata share. Management considers EBITDA to be
an appropriate supplemental measure to net income because it helps
investors understand the ability of the Company to incur and
service debt and make capital expenditures. EBITDA should not be
construed as an alternative to operating income as an indicator of
the Company's operating performance, or to cash flows from
operating activities (as determined in accordance with GAAP) or as
a measure of liquidity. EBITDA, as presented, may not be comparable
to similarly titled measurements reported by other companies. (k)
The Company presents same-center NOI because the Company believes
it is useful for investors to evaluate the operating performance of
comparable centers. Same-center NOI is calculated using total
EBITDA and subtracting out EBITDA from non-comparable centers and
eliminating the management companies and the Company's general and
administrative expenses. DATASOURCE: The Macerich Company CONTACT:
Arthur Coppola, President and Chief Executive Officer, or Thomas E.
O'Hern, Executive Vice President and Chief Financial Officer, both
of The Macerich Company, +1-310-394-6000 Web site:
http://www.macerich.com/
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