SANTA MONICA, Calif., Oct. 31 /PRNewswire-FirstCall/ -- The
Macerich Company (NYSE:MAC) today announced results of operations
for the quarter ended September 30, 2007 which included total funds
from operations ("FFO") diluted of $111.0 million or $1.15 per
share, up 17% compared to $.98 per share-diluted for the quarter
ended September 30, 2006. For the nine months ended September 30,
2007, FFO-diluted was $298.2 million compared to $262 million for
the nine months ended September 30, 2006. Net income available to
common stockholders for the quarter ended September 30, 2007 was
$17.3 million or $.24 per share-diluted compared to $47.0 million
or $.66 per share-diluted for the quarter ended September 30, 2006.
Included in net income during the quarter ended September 30, 2006
was $46.6 million in gain on sale of assets, compared to a .8
million loss on asset sales during the quarter ended September 30,
2007. For the nine months ended September 30, 2007, net income was
$33.3 million compared to $80.1 million for the nine months ended
September 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 356,000 square feet of specialty store
leases at average initial rents of $43.77 per square foot. Starting
base rent on new lease signings was 27.1% higher than the expiring
base rent. -- Mall tenant annual sales per square foot for the year
ended September 30, 2007 increased 5.5% to $460 compared to $436 at
September 30, 2006. -- Portfolio occupancy at September 30, 2007
was 93.5% compared to 93.0% at September 30, 2006. -- FFO per
share-diluted increased 17% compared to the third quarter of 2006.
-- SanTan Village, a 1.2 million square foot regional shopping
center in Gilbert, Arizona celebrated its grand opening on October
26, 2007. 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. We continue to make excellent progress on our significant
pipeline of developments and redevelopments. This is illustrated by
our very successful grand opening of SanTan Village on October
26th, and our planned grand openings of Freehold Raceway Mall on
November 8th and The Promenade at Casa Grande on November 16th."
Redevelopment and Development Activity The first phase of SanTan
Village opened on October 26th with retailers posting
record-breaking results significantly ahead of expectations for the
grand opening weekend. The 1.2-million-square-foot open-air
super-regional shopping center opened with over 90% of the retail
space committed with Dillard's and more than 85 specialty retailers
joining Harkins Theatres, which opened March 2007. Approximately
100 retailers are expected to be open in 2007, with the balance of
the project opening in phases throughout 2008. Future phases
include Dick's Sporting Goods, Best Buy, Barnes & Noble and up
to 13 restaurants. Deals were completed with 32 retailers in the
third quarter, including Brio Tuscan Grille, Cantina Loredo, Gordon
Biersch, Gymboree, Kona Grill, Pumpkin Patch and Sephora. The first
phase of The Promenade at Casa Grande, a 1-million-square-foot,
130-acre department store anchored hybrid lifestyle center, will
open November 16th in fast-growing Pinal County, Arizona. Ninety
percent committed, the first phase of the project will open with
approximately 550,000 square feet of mini-majors, including
Dillard's, Target, JCPenney, Bed, Bath and Beyond, Cost Plus World
Market, Fashion Bug, Olive Garden, Mimi's Cafe and Sports
Authority. The project's second phase, complementary small shops
and restaurants, is expected to open spring 2008. Flagstaff Mall's
435,000-square-foot lifestyle expansion began opening in phases on
October 19th with retailers reporting sales ahead of projections.
Phase I of The Marketplace at Flagstaff Mall delivered
approximately 240,000 square feet of new retail space including
Best Buy, Cost Plus World Market, Home Depot, Linens n Things,
Marshalls, Old Navy, Petco and Shoe Pavilion. Phase II, which will
consist of village shops, an entertainment plaza and pad space, is
expected to be completed in 2009-2010. On November 8th, Freehold
Raceway Mall will open the first phase of a combined expansion and
renovation project that will add 96,000 square feet of new retail
and restaurant uses to this high-performing regional center in New
Jersey. The expansion, which is 85% committed, will add nine
new-to-market additions including: Borders, The Cheesecake Factory,
P.F. Chang's, Jared The Galleria of Jewelry, The Territory Ahead,
Ann Taylor, Chico's, Coldwater Creek and White House/Black Market.
The balance of the project is expected to open throughout 2008.
Scottsdale Fashion Square, the 2 million square foot luxury
flagship, is undergoing a $130 million redevelopment and expansion.
Phase I of the redevelopment and expansion began September 2007
with demolition of the vacant anchor space acquired as a result of
the Federated-May merger and an adjacent parking structure. A
60,000-square-foot Barneys New York, the high-end retailer's first
Arizona location, will anchor an additional 100,000 square feet of
up to 30 new luxury shops, which is planned to open fall 2009 in an
urban setting on Scottsdale Road. New first-to-market deals
recently announced include Bottega Veneta, Grand Lux Cafe,
Salvatore Ferragamo, CH Carolina Herrera, A|X Armani Exchange and
Michael Kors. 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. Macerich successfully completed the site plan
approval process for the 106-acre, 1-million-square-foot regional
shopping center at the core of Estrella Falls on October 22nd.
Infrastructure development for the 330-acre mixed-use development
is underway and the project's multi-phased opening is expected to
begin fall 2008 with the adjacent 500,000-square-foot power center
that is currently under construction. The mall is projected to open
in phases beginning in 2009. 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 78 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, October
31, 2007 at 10:30 AM Pacific Time. To listen to the call, please go
to any of these web sites at least 15 minutes prior to the call in
order to register and download audio software if needed. An online
replay at 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 of Operations: Results before
Impact of Results after SFAS 144(e) SFAS 144(e) SFAS 144(e) For the
For the For the Three Months Three Months Three Months Ended
September 30, Ended September 30, Ended September 30, Unaudited
Unaudited 2007 2006 2007 2006 2007 2006 Minimum rents $130,371
$123,314 $0 ($7,437) $130,371 $115,877 Percentage rents 4,992 4,880
- (178) 4,992 4,702 Tenant recoveries 70,623 67,541 - (3,291)
70,623 64,250 Management Companies' revenues 9,242 8,023 - - 9,242
8,023 Other income 8,793 9,469 (37) (244) 8,756 9,225 Total
revenues $224,021 $213,227 ($37)($11,150) $223,984 $202,077
Shopping center and operating expenses 73,624 71,553 207 (4,075)
73,831 67,478 Management Companies' operating expenses 17,908
14,455 - - 17,908 14,455 Income tax expense (benefit) 429 535 - -
429 535 Depreciation and amortization 60,173 56,120 (2) (2,578)
60,171 53,542 REIT general and administrative expenses 1,992 2,551
- - 1,992 2,551 Interest expense 59,982 70,272 - (2,919) 59,982
67,353 Loss on early extinguishment of debt - 29 - - - 29 (Loss)
gain on sale or writedown of assets (758) 46,560 905 (46,022) 147
538 Equity in income of unconsolidated joint ventures (c) 18,648
18,490 - - 18,648 18,490 Minority interests in consolidated joint
ventures (726) (694) 5 (176) (721) (870) Income (loss) from
continuing operations 27,077 62,068 668 (47,776) 27,745 14,292
Discontinued Operations: (Loss) gain on sale of assets - - (905)
46,214 (905) 46,214 Income from discontinued operations - - 237
1,562 237 1,562 Income before minority interests of OP 27,077
62,068 - - 27,077 62,068 Income allocated to minority interests of
OP 3,070 8,901 - - 3,070 8,901 Net income before preferred
dividends 24,007 53,167 - - 24,007 53,167 Preferred dividends and
distributions (a) 6,727 6,199 - - 6,727 6,199 Net income to common
stockholders $17,280 $46,968 $0 $0 $17,280 $46,968 Average number
of shares outstanding - basic 71,674 71,479 71,674 71,479 Average
shares outstanding, assuming full conversion of OP Units (d) 84,529
85,021 84,529 85,021 Average shares outstanding - diluted for FFO
(a) (d) 96,677 88,648 96,677 88,648 Per share income- diluted
before discontinued operations - - $0.25 $0.10 Net income per
share-basic $0.24 $0.66 $0.24 $0.66 Net income per share-diluted
(a) $0.24 $0.66 $0.24 $0.66 Dividend declared per share $0.71 $0.68
$0.71 $0.68 Funds from operations "FFO" (b)(d)- basic $99,397
$84,020 $99,397 $84,020 Funds from operations "FFO" (a)(b)(d) -
diluted $110,985 $86,595 $110,985 $86,595 FFO per share
-basic(b)(d) $1.18 $0.99 $1.18 $0.99 FFO per share
-diluted(a)(b)(d) $1.15 $0.98 $1.15 $0.98 THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results of Operations: Results before Impact of Results after SFAS
144(e) SFAS 144(e) SFAS 144(e) For the For the For the Nine Months
Nine Months Nine Months Ended September 30, Ended September 30,
Ended September 30, Unaudited Unaudited 2007 2006 2007 2006 2007
2006 Minimum rents $380,286 $384,383 ($30)($29,828) $380,256
$354,555 Percentage rents 11,698 10,601 (78) (983) 11,620 9,618
Tenant recoveries 206,401 200,879 15 (13,660) 206,416 187,219
Management Companies' revenues 27,595 22,650 - - 27,595 22,650
Other income 25,738 22,756 (184) (942) 25,554 21,814 Total revenues
$651,718 $641,269 ($277)($45,413) $651,441 $595,856 Shopping center
and operating expenses 211,474 209,831 (250) (16,510) 211,224
193,321 Management Companies' operating expenses 54,182 41,295 - -
54,182 41,295 Income tax (benefit) expense (478) 219 - - (478) 219
Depreciation and amortization 177,665 179,071 - (10,106) 177,665
168,965 REIT general and administrative expenses 11,777 9,540 - -
11,777 9,540 Interest expense 189,764 213,426 35 (9,143) 189,799
204,283 Loss on early extinguishment of debt 877 1,811 - - 877
1,811 Gain (loss) on sale or writedown of assets 1,889 109,020
2,292 (108,983) 4,181 37 Equity in income of unconsolidated joint
ventures(c) 52,128 57,367 - - 52,128 57,367 Minority interests in
consolidated joint ventures (2,272) (39,101) 35 37,229 (2,237)
(1,872) Income (loss) from continuing operations 58,202 113,362
2,265 (81,408) 60,467 31,954 Discontinued Operations: (Loss) gain
on sale of assets - - (2,325) 72,167 (2,325) 72,167 Income from
discontinued operations - - 60 9,241 60 9,241 Income before
minority interests of OP 58,202 113,362 - - 58,202 113,362 Income
allocated to minority interests of OP 5,935 15,131 - - 5,935 15,131
Net income before preferred dividends 52,267 98,231 - - 52,267
98,231 Preferred dividends and distributions(a) 18,971 18,139 - -
18,971 18,139 Net income to common stockholders $33,296 $80,092 $0
$0 $33,296 $80,092 Average number of shares outstanding - basic
71,625 70,587 71,625 70,587 Average shares outstanding, assuming
full conversion of OP Units(d) 84,706 84,216 84,706 84,216 Average
shares outstanding - diluted for FFO(a)(d) 94,545 87,843 94,545
87,843 Per share income- diluted before discontinued operations - -
$0.49 $0.16 Net income per share-basic $0.46 $1.13 $0.46 $1.13 Net
income per share- diluted (a) $0.46 $1.13 $0.46 $1.13 Dividend
declared per share $2.13 $2.04 $2.13 $2.04 Funds from operations
"FFO" (b)(d)- basic $271,299 $254,523 $271,299 $254,523 Funds from
operations "FFO" (a)(b)(d) - diluted $298,206 $262,031 $298,206
$262,031 FFO per share - basic(b)(d) $3.21 $3.03 $3.21 $3.03 FFO
per share - diluted (a)(b)(d) $3.15 $2.98 $3.15 $2.98 THE MACERICH
COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE
AMOUNTS) (a) On February 25, 1998, the Company sold $100,000 of
convertible preferred stock representing 3.627 million shares. The
convertible preferred shares can be converted on a 1 for 1 basis
for common stock. These preferred shares are not assumed converted
for purposes of net income per share -- diluted for 2007 and 2006
as they would be antidilutive to those calculations. The weighted
average preferred shares outstanding are assumed converted for
purposes of FFO per share -- diluted as they are dilutive to those
calculations for all periods presented. On April 25, 2005, in
connection with the acquisition of Wilmorite Holdings, L.P. and its
affiliates, the Company issued as part of the consideration
participating and non-participating convertible preferred units in
MACWH, LP. These preferred units are not assumed converted for
purposes of net income per share -- diluted and FFO per share --
diluted for 2007 and 2006 as they would be antidilutive to those
calculations. On March 16, 2007, the Company issued $950 million of
convertible senior notes. These notes are not assumed converted for
purposes of net income per share -- diluted 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
and nine months ended September 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 increased FFO for the
three and nine months ended September 30, 2007 and 2006 by $0.1
million, $0.8 million, $2.3 million and $6.0 million, respectively,
or by $.00 per share, $0.01 per share, $0.03 per share and $.07 per
share, respectively. Additionally, SFAS 141 increased FFO for the
three and nine months ended September 30, 2007 and 2006 by $4.0
million, $11.5 million, $4.0 million and $12.9 million,
respectively, or by $.04 per share, $0.12 per share, $0.04 per
share and $0.15 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 nine months ended September 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. THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Summarized Balance Sheet Information: September 30, December 31,
2007 2006 Unaudited Cash and cash equivalents $42,850 $269,435
Investment in real estate, net (h) $6,045,958 $5,755,283
Investments in unconsolidated entities (i) $818,723 $1,010,380
Total assets $7,459,960 $7,562,163 Mortgage and notes payable
$5,124,479 $4,993,879 Pro rata share of debt on unconsolidated
entities $1,821,617 $1,664,447 September 30, December 31, 2007 2006
Unaudited Total common shares outstanding 71,713 71,568 Total
preferred shares outstanding 3,627 3,627 Total
partnership/preferred units outstanding 15,565 16,342 September 30,
September 30, Additional financial data as of: 2007 2006 Unaudited
Occupancy of centers (f) 93.50% 93.00% Comparable quarter change in
same center sales (f) (g) 1.70% 5.30% Additional financial data for
the nine months ended: Acquisitions of property and equipment --
including joint ventures at pro rata $33,609 $359,213 Redevelopment
and expansions of centers- including joint ventures at pro rata
$399,384 $141,039 Renovations of centers- including joint ventures
at pro rata $27,937 $44,546 Tenant allowances- including joint
ventures at pro rata $24,744 $28,794 Deferred leasing costs-
including joint ventures at pro rata $20,021 $20,473 (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 $585,358 at
September 30, 2007 and $294,115 at December 31, 2006. (i) the
Company's pro rata share of construction in process on
unconsolidated entities was $68,795 at September 30, 2007 and
$45,268 at December 31, 2006. Pro rata share of joint ventures: For
the Three For the Nine Months Months Ended September 30, Ended
September 30, Unaudited Unaudited 2007 2006 2007 2006 Revenues:
Minimum rents $62,711 $59,760 $186,586 $177,230 Percentage rents
3,100 2,784 7,325 7,306 Tenant recoveries 30,139 28,674 87,930
82,680 Other 5,369 3,931 11,323 10,607 Total revenues $101,319
$95,149 $293,164 $277,823 Expenses: Shopping center expenses 33,799
32,425 97,194 92,869 Interest expense 25,779 23,507 73,847 66,260
Depreciation and amortization 23,422 21,045 68,506 62,209 Total
operating expenses 83,000 76,977 239,547 221,338 (Loss) gain on
sale of assets (4) 1 (2,024) 245 Equity in income of joint ventures
333 317 535 637 Net income $18,648 $18,490 $52,128 $57,367 THE
MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS) Reconciliation of Net Income to FFO (b) (e): For the
Three For the Nine Months Months Ended September 30, Ended
September 30, Unaudited Unaudited 2007 2006 2007 2006 Net income -
available to common stockholders $17,280 $46,968 $33,296 $80,092
Adjustments to reconcile net income to FFO -- basic Minority
interest in OP 3,070 8,901 5,935 15,131 Loss (gain) on sale of
consolidated assets 758 (46,560) (1,889) (109,020) plus gain on
undepreciated asset sales- consolidated assets 111 2,339 450 5,715
plus minority interest share of gain (loss) on sale of consolidated
joint ventures 39 (192) 388 36,816 Loss (gain) on sale of assets
from unconsolidated entities (pro rata share) 4 (1) 2,024 (245)
plus (loss) gain on undepreciated asset sales- unconsolidated
entities (pro rata share) (4) - 346 244 Depreciation and
amortization on consolidated assets 60,173 56,120 177,665 179,071
Less depreciation and amortization allocable to minority interests
on consolidated joint ventures (1,019) (1,128) (3,346) (4,351)
Depreciation and amortization on joint ventures (pro rata) 23,422
21,045 68,506 62,209 Less: depreciation on personal property and
amortization of loan costs and interest rate caps (4,437) (3,472)
(12,076) (11,139) Total FFO -- basic 99,397 84,020 271,299 254,523
Additional adjustment to arrive at FFO - diluted Preferred stock
dividends earned 2,902 2,575 8,052 7,508 Convertible debt --
interest expense 8,686 - 18,855 - Total FFO -- diluted $110,985
$86,595 $298,206 $262,031 Reconciliation of EPS to FFO per diluted
share: For the Three For the Nine Months Months Ended September 30,
Ended September 30, Unaudited Unaudited 2007 2006 2007 2006
Earnings per share -- diluted $0.24 $0.66 $0.46 $1.13 Per share
impact of depreciation and amortization of real estate 0.93 0.86
2.74 2.69 Per share impact of gain on sale of depreciated assets
0.01 (0.52) 0.01 (0.79) Per share impact of preferred stock /
convertible debt not dilutive to EPS (0.03) (0.02) (0.06) (0.05)
Fully diluted FFO per share $1.15 $0.98 $3.15 $2.98 Reconciliation
of Net Income to EBITDA: For the Three For the Nine Months Months
Ended September 30, Ended September 30, Unaudited Unaudited 2007
2006 2007 2006 Net income - available to common stockholders
$17,280 $46,968 $33,296 $80,092 Interest expense 59,982 70,272
189,764 213,426 Interest expense -- unconsolidated entities (pro
rata) 25,779 23,507 73,847 66,260 Depreciation and amortization --
consolidated assets 60,173 56,120 177,665 179,071 Depreciation and
amortization -- unconsolidated entities (pro rata) 23,422 21,045
68,506 62,209 Minority interest 3,070 8,901 5,935 15,131 Less:
Interest expense and depreciation and amortization allocable to
minority interests on consolidated joint ventures (1,468) (1,264)
(4,669) (6,191) Loss on early extinguishment of debt - 29 877 1,811
Loss (gain) on sale of assets -- consolidated assets 758 (46,560)
(1,889) (109,020) Loss (gain) on sale of assets -- unconsolidated
entities (pro rata) 4 (1) 2,024 (245) Add: Minority interest share
of gain (loss)on sale of consolidated joint ventures 39 (192) 388
36,816 Income tax expense (benefit) 429 535 (478) 219 Preferred
dividends 6,727 6,199 18,971 18,139 EBITDA (j) $196,195 $185,559
$564,237 $557,718 THE MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN
THOUSANDS, EXCEPT PER SHARE AMOUNTS) Reconciliation of EBITDA to
Same Centers - Net Operating Income ("NOI"): For the Three For the
Nine Months Months Ended September 30, Ended September 30,
Unaudited Unaudited 2007 2006 2007 2006 EBITDA (j) $196,195
$185,559 $564,237 $557,718 Add: REIT general and administrative
expenses 1,992 2,551 11,777 9,540 Management Companies' revenues
(c) (9,242) (8,023) (27,595) (22,650) Management Companies'
operating expenses (c) 17,908 14,455 54,182 41,295 Lease
termination income of comparable centers (5,189) (1,133) (10,720)
(11,498) EBITDA of non-comparable centers (23,429) (19,373)
(64,231) (59,787) Same Centers -- net operating income ("NOI") (k)
$178,235 $174,036 $527,650 $514,618 (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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