SANTA MONICA, Calif., Nov. 5 /PRNewswire-FirstCall/ -- The Macerich
Company (NYSE:MAC) today announced results of operations for the
quarter ended September 30, 2009 which included total funds from
operations ("FFO") diluted of $88.7 million or $.97 per
share-diluted, compared to $1.12 per share-diluted for the quarter
ended September 30, 2008. For the nine months ended September 30,
2009, FFO-diluted was $251.4 million, or $2.80 per share-diluted
compared to $290.7 million or $3.29 per share-diluted for the nine
months ended September 30, 2008. Net income available to common
stockholders for the quarter ended September 30, 2009 was $142.8
million or $1.75 per share-diluted compared to $2.6 million or $.03
per share-diluted for the quarter ended September 30, 2008.
Included in net income for the quarter was $161.6 million of gain
on sale of assets which primarily resulted from the sale of a joint
venture interest in Queens Center. For the nine months ended
September 30, 2009, net income available to common stockholders was
$135.1 million or $1.71 per share-diluted compared to $110.9
million or $1.50 per share-diluted for the nine months ended
September 30, 2008. 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 Activity: -- During the
quarter, Macerich signed 294,000 square feet of specialty store
leases with average initial rents of $40.98 per square foot.
Starting base rent on new lease signings was 14.2% higher than the
expiring base rent. -- The Company completed three joint venture
transactions generating over $434 million of cash proceeds. --
Portfolio occupancy at September 30, 2009 was 91.0% compared to
90.5% at June 30, 2009 and 92.8% at September 30, 2008. -- On
October 27, 2009, the Company closed a common stock offering of
13.8 million shares that raised net proceeds of $383 million. --
Tenant sales per square foot were $418 for the twelve month period
ended September 30, 2009 compared to sales per square foot of $441
for the year ended December 31, 2008. Commenting on the quarter,
Arthur Coppola chairman and chief executive officer of Macerich
stated, "We had a significant amount of capital activity during the
quarter having completed three joint ventures that netted over $434
million in cash proceeds. We systematically continued our efforts
to de-leverage our balance sheet with the recently completed common
equity offering. Our liquidity and debt reduction plan has also
included selling non core assets and issuing stock dividends. Year
to date we have generated over $1 billion in cash that has been
applied towards our de-leveraging goals." Redevelopment and
Development Activity On October 15, 2009, Macerich opened the first
phase of the Barneys New York-anchored expansion at Scottsdale
Fashion Square. Joining Barneys New York are first-to-market
retailers Aqua Beachwear, Arthur, Christian Audigier, Love Culture,
True Religion and Michael Stars along with Aveda Lifestyle Salon,
Forever 21 and three restaurants - Marcella's Ristorante, Modern
Steak, and Barneys New York's exclusive Fred's dining concept. In
addition, the first Microsoft store in the country opened at
Scottsdale Fashion Square. At Santa Monica Place, Macerich recently
announced that Burberry, Michael Kors, Bernini, Angl, Swarovski and
mini-anchors CB2 and Nike are the latest brands planned to open.
The new Santa Monica Place is currently under construction and
slated to open in August 2010 with anchors Bloomingdale's and
Nordstrom. Macerich also announced nine restaurants for the
third-level dining deck and completed deals with Tiffany & Co.
and Louis Vuitton. To date, Macerich has announced nearly 40
retailers and restaurants, including Kitson LA, BCBGMAXAZRIA,
Coach, Joe's Jeans, True Religion, Ed Hardy, Love Culture, Michael
Brandon and restaurant concepts La Sandia, Zengo, Pizza Antica,
XINO and Ozumo Sushi. Phase I of Northgate Mall, a
722,948-square-foot regional mall under redevelopment in Marin
County, is scheduled to open in November 2009. Kohl's opened
successfully on September 30, 2009 replacing a Mervyn's site. Among
the retailers opening in the first phase are H&M, Children's
Place, Chipotle, Gymboree, Hot Topic, PacSun, Panera Bread, See's
Candies, Sunglass Hut, Tilly's, Tomatina and Vans. Retailers will
continue to open in phases into 2010. Financing Activity During the
quarter $446 million in unsecured term notes, due in 2010, were
paid off. Capital used for the debt reduction was primarily from
proceeds from joint venture sales and operating cash retained by
reducing the dividend and paying 90% of the dividend in stock.
Macerich also announced the closing of an $85 million loan on
Paradise Valley Mall in Phoenix, Arizona. The loan on the
previously unencumbered asset bears interest at a floating rate
with the initial rate of 5.50%. The term of the loan is three
years, extendable to five years at the Company's election. After
considering extensions and other loans committed but not yet
closed, the Company's remaining debt maturities for 2009 are only
$30 million and $268 million for 2010. All of these debt maturities
are on secured property loans. Macerich is a fully integrated
self-managed and self-administered real estate investment trust,
which focuses on the acquisition, leasing, management, development
and redevelopment of regional malls throughout the United States.
The Company is the sole general partner and owns an 89% ownership
interest in The Macerich Partnership, L.P. Macerich now owns
approximately 76 million square feet of gross leaseable area
consisting primarily of interests in 72 regional malls. Additional
information about Macerich can be obtained from the Company's
website 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/
(Investing Section) and through CCBN at http://www.earnings.com/.
The call begins today, November 5, 2009 at 10:30 AM Pacific Time.
To listen to the call, please go to any of these websites at least
15 minutes prior to the call in order to register and download
audio software if needed. An online replay at
http://www.macerich.com/ (Investing Section) will be available for
one year after the call. The Company will publish a supplemental
financial information package which will be available at
http://www.macerich.com/ in the Investing Section. It will also be
furnished to the SEC as part of a Current Report on Form 8-K. Note:
This release contains statements that constitute forward-looking
statements. 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, terms and cost of
financing and operating expenses; adverse changes in the real
estate markets including, among other things, competition from
other companies, retail formats and technology, risks of real
estate development and redevelopment, acquisitions and
dispositions; the liquidity of real estate investments,
governmental actions and initiatives (including legislative and
regulatory changes); environmental and safety requirements; and
terrorist activities which could adversely affect all of the above
factors. The reader is directed to the Company's various filings
with the Securities and Exchange Commission, including the Annual
Report on Form 10-K for the year ended December 31, 2008 and the
Quarterly Reports on Form 10-Q, 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) THE MACERICH COMPANY FINANCIAL
HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Results of
Operations: Results before Impact of SFAS Results after SFAS 144
(a) 144 (a) SFAS 144 (a) -------------- --------------
-------------- For the For the For the Three Months Three Months
Three Months Ended Ended Ended September 30, September 30,
September 30, ------------- ------------- ------------- Unaudited
Unaudited --------- --------- 2009 2008 (b) 2009 2008 2009 2008 (b)
---- -------- ---- ---- ---- -------- Minimum rents $119,903
$133,985 (414) ($2,902) $119,489 $131,083 Percentage rents 3,909
4,114 - - 3,909 4,114 Tenant recoveries 59,754 70,059 55 (642)
59,809 69,417 Management Companies' revenues 10,449 10,261 - -
10,449 10,261 Other income 6,648 7,388 (8) (2) 6,640 7,386 -----
----- --- --- ----- ----- Total revenues 200,663 225,807 (367)
(3,546) 200,296 222,261 -------------- ------- ------- ---- ------
------- ------- Shopping center and operating expenses 65,160
74,100 (208) (899) 64,952 73,201 Management Companies' operating
expenses 16,400 19,014 - - 16,400 19,014 Income tax expense
(benefit) 302 (362) - - 302 (362) Depreciation and amortization
61,856 66,637 (41) (700) 61,815 65,937 REIT general and
administrative expenses 7,084 2,881 - - 7,084 2,881 Interest
expense (b) 65,779 73,889 - - 65,779 73,889 Loss on early
extinguishment of debt (455) - - - (455) - Gain (loss) on sale or
write down of assets 161,580 (5,178) (3,968) 961 157,612 (4,217)
Equity in income of unconsolidated joint ventures (c) 19,165 19,928
- - 19,165 19,928 Income from continuing operations 164,372 4,398
(4,086) (986) 160,286 3,412 Discontinued operations: Gain (loss) on
sale or disposition of assets - - 3,968 (961) 3,968 (961) Income
from discontinued operations - - 118 1,947 118 1,947 Total income
from discontinued operations - - 4,086 986 4,086 986 Net income
164,372 4,398 - - 164,372 4,398 Less net income attributable to
noncontrolling interests 21,534 925 - - 21,534 925 Net income
attributable the Company 142,838 3,473 - - 142,838 3,473 Less
preferred dividends (d) - 835 - - - 835 Net income available to
common stockholders $142,838 $2,638 - - $142,838 $2,638
------------- -------- ------ --- --- -------- ------ Average
number of shares outstanding - basic 79,496 74,931 79,496 74,931
--------------- ------ ------ ------ ------ Average shares
outstanding, assuming full conversion of OP Units (e) 91,347 87,439
91,347 87,439 ------ ------ ------ ------ Average shares
outstanding - Funds From Operations ("FFO") - diluted (d) (e)
91,347 88,333 91,347 88,333 ---------------- ------ ------ ------
------ Per share income- diluted before discontinued operations - -
$1.71 $0.02 ------------- --- --- ----- ----- Net income per
share-basic (b) $1.75 $0.03 $1.75 $0.03 -------------- ----- -----
----- ----- Net income per share- diluted (b) (d) (e) $1.75 $0.03
$1.75 $0.03 ---------------- ----- ----- ----- ----- Dividend
declared per share $0.60 $0.80 $0.60 $0.80 ------------- -----
----- ----- ----- FFO - basic (b) (e) (f) $88,650 $97,711 $88,650
$97,711 ------------- ------- ------- ------- ------- FFO - diluted
(b) (d) (e) (f) $88,650 $98,546 $88,650 $98,546 ----------------
------- ------- ------- ------- FFO per share- basic (b) (e) (f)
$0.97 $1.12 $0.97 $1.12 ---------------- ----- ----- ----- -----
FFO per share- diluted (b) (d) (e) (f) $0.97 $1.12 $0.97 $1.12
--------------- ----- ----- ----- ----- THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results of Operations: Results before Impact of SFAS Results after
SFAS 144 (a) 144 (a) SFAS 144 (a) -------------- --------------
-------------- For the For the For the Nine Months Nine Months Nine
Months Ended Ended Ended September 30, September 30, September 30,
------------- ------------- ------------- Unaudited Unaudited
--------- --------- 2009 2008 (b) 2009 2008 2009 2008 (b) ----
-------- ---- ---- ---- -------- Minimum rents $370,879 $396,745
(3,634) ($8,673) $367,245 $388,072 Percentage rents 9,396 9,772 6 -
9,402 9,772 Tenant recoveries 187,194 204,956 (220) (1,916) 186,974
203,040 Management Companies' revenues 28,335 30,334 - - 28,335
30,334 Other income 21,552 20,776 (15) (356) 21,537 20,420 ------
------ --- ---- ------ ------ Total revenues 617,356 662,583
(3,863) (10,945) 613,493 651,638 -------------- ------- -------
------ ------- ------- ------- Shopping center and operating
expenses 203,504 214,407 (1,667) (2,727) 201,837 211,680 Management
Companies' operating expenses 58,702 57,886 - - 58,702 57,886
Income tax benefit (878) (750) - - (878) (750) Depreciation and
amortization 190,507 185,538 (1,214) (2,431) 189,293 183,107 REIT
general and administrative expenses 16,989 11,419 - - 16,989 11,419
Interest expense (b) 207,631 220,299 - - 207,631 220,299 Gain on
early extinguishment of debt 29,145 - - - 29,145 - Gain (loss) on
sale or write down of assets 136,731 95,135 23,045 (98,189) 159,776
(3,054) Equity in income of unconsolidated joint ventures (c)
49,647 67,172 - - 49,647 67,172 Income from continuing operations
156,424 136,091 22,063 (103,976) 178,487 32,115 Discontinued
operations: (Loss) gain on sale or disposition of assets - -
(23,045) 98,189 (23,045) 98,189 Income from discontinued operations
- - 982 5,787 982 5,787 Total (loss) income from discontinued
operations - - (22,063) 103,976 (22,063) 103,976 Net income 156,424
136,091 - - 156,424 136,091 Less net income attributable to
noncontrolling interests 21,306 20,994 - - 21,306 20,994 Net income
attributable to the Company 135,118 115,097 - - 135,118 115,097
Less preferred dividends (d) - 4,124 - - - 4,124 Net income
available to common stockholders $135,118 $110,973 - - $135,118
$110,973 ------------- -------- -------- --- --- -------- --------
Average number of shares outstanding - basic 77,898 73,688 77,898
73,688 --------------- ------ ------ ------ ------ Average shares
outstanding, assuming full conversion of OP Units (e) 89,635 86,483
89,635 86,483 ------ ------ ------ ------ Average shares
outstanding - Funds From Operations ("FFO") - diluted (d) (e)
89,635 88,418 89,635 88,418 ---------------- ------ ------ ------
------ Per share income- diluted before discontinued operations - -
$1.96 $0.29 ----------------- --- --- ----- ----- Net income per
share-basic (b) $1.71 $1.50 $1.71 $1.50 ----------------- -----
----- ----- ----- Net income per share- diluted (b) (d) (e) $1.71
$1.50 $1.71 $1.50 ---------------- ----- ----- ----- ----- Dividend
declared per share $2.00 $2.40 $2.00 $2.40 ------------- -----
----- ----- ----- FFO - basic (b) (e) (f) $251,410 $286,534
$251,410 $286,534 --------------- -------- -------- --------
-------- FFO - diluted (b) (d) (e) (f) $251,410 $290,658 $251,410
$290,658 --------------- -------- -------- -------- -------- FFO
per share- basic (b) (e) (f) $2.80 $3.32 $2.80 $3.32
---------------- ----- ----- ----- ----- FFO per share- diluted (b)
(d) (e) (f) $2.80 $3.29 $2.80 $3.29 ----------------- ----- -----
----- ----- THE MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN
THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) (a) SFAS No. 144,
"Accounting for the Impairment or Disposal of Long- Lived Assets"
("SFAS 144") addresses financial accounting and reporting for the
impairment or disposal of long-lived assets. The following
dispositions impacted the results for the three and nine months
ended September 30, 2009 and 2008: 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. On January 1, 2008, a subsidiary of the Company, at the
election of the holders, redeemed approximately 3.4 million
participating convertible preferred units in exchange for the
distribution of the interests in the entity which held that portion
of the Wilmorite portfolio that consisted of Eastview Commons,
Eastview Mall, Greece Ridge Center, Marketplace Mall and Pittsford
Plaza ("Rochester Properties"). This exchange is referred to as the
"Rochester Redemption." As a result of the Rochester Redemption ,
the Company recorded a gain of $99.3 million and classified the
gain to discontinued operations. On December 19, 2008, the Company
sold the fee simple and/or ground leasehold interests in three
freestanding Mervyn's buildings to the Pacific Premier Retail Trust
joint venture for $43.4 million. As a result of the sale, the
Company has classified the results of operations to discontinued
operations for all periods presented. On July 14, 2009, the Company
sold Village Center, a 170,801 square foot urban village property,
for $11.8 million. During the period of July 15, 2009 through July
30, 2009, the Company sold five Kohl's stores for approximately
$52.7 million. As a result of these sales, the Company has
classified the results of operations to discontinued operations for
all periods presented. (b) On January 1, 2009, the Company adopted
FASB Staff Position APB 14-1, "Accounting for Convertible Debt
Instruments That May Be Settled Upon Conversion (Including Partial
Cash Settlement)" (FSP APB 14-1"). As a result, the Company
retrospectively applied FSP APB 14-1 to the three and nine months
ended September 30, 2008 resulting in an increase to interest
expense of $3.6 million and $10.7 million, respectively, and a
decrease to net income available to common stockholders of $3.0
million and $9.1 million, respectively, or $0.04 and $0.12 per
share, respectively. FSP APB 14-1 decreased FFO for the three and
nine months ended September 30, 2008 by $3.6 million and $7.1
million, respectively, or by $0.04 per share and $0.12 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) On February 25, 1998, the Company sold $100 million
of convertible preferred stock representing 3.627 million shares.
The convertible preferred shares were convertible on a 1 for 1
basis for common stock. On October 18, 2007, 560,000 shares of
convertible preferred stock were converted to common shares.
Additionally, on May 6, 2008, May 8, 2008 and September 18, 2008,
684,000, 1,338,860 and 1,044,271 shares of convertible preferred
stock were converted to common shares, respectively. As of December
31, 2008, there was no convertible preferred stock outstanding. The
preferred shares were assumed converted for purposes of net income
per share - diluted for the three and nine months ended September
30, 2008. The weighted average preferred shares are assumed
converted for purposes of FFO per share - diluted for 2008. (e) The
Macerich Partnership, L.P. (the "Operating Partnership" or the
"OP") has operating partnership units ("OP units"). OP units can be
converted into shares of Company common stock. Conversion of the OP
units not owned by the Company has been assumed for purposes of
calculating the FFO per share and the weighted average number of
shares outstanding. The computation of average shares for FFO -
diluted includes the effect of share and unit-based compensation
plans and convertible senior notes using the treasury stock method.
It also assumes conversion of MACWH, LP preferred and common units
to the extent they are dilutive to the calculation. (f) 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. The Company also cautions that FFO as
presented, may not be comparable to similarly titled measures
reported by other real estate investment trusts. Gains or losses on
sales of undepreciated assets and the impact of 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, 2009 and 2008 by $0.8 million, $3.3 million, $0.6 million and
$3.6 million, respectively, or by $0.01 per share, $0.04 per share,
$0.01 per share and $0.04 per share, respectively. Additionally,
SFAS 141 increased FFO for the three and nine months ended
September 30, 2009 and 2008 by $3.2 million, $10.4 million, $4.7
million and $13.2 million, respectively, or by $0.04 per share,
$0.12 per share, $0.05 per share and $0.15 per share, respectively.
THE MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS) Pro rata share of joint ventures: For the For the
Three Months Nine Months Ended Ended September 30, September 30,
-------------- -------------- Unaudited Unaudited -----------
----------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenues:
Minimum rents $72,756 $68,828 $204,733 $202,262 Percentage rents
2,857 2,856 5,712 7,261 Tenant recoveries 35,310 33,024 99,187
97,072 Other 4,361 3,362 11,009 17,371 ----- ----- ------ ------
Total revenues 115,284 108,070 320,641 323,966 ------- -------
------- ------- Expenses: Shopping center and operating expenses
39,982 36,487 111,156 108,400 Interest expense 27,448 25,923 78,747
77,850 Depreciation and amortization 28,552 26,292 80,961 74,326
------ ------ ------ ------ Total operating expenses 95,982 88,702
270,864 260,576 ------ ------ ------- ------- (Loss) gain on sale
or write down of assets (309) 349 (298) 3,272 Equity in income of
joint ventures 172 211 168 510 --- --- --- --- Net income $19,165
$19,928 $49,647 $67,172 ------- ------- ------- -------
Reconciliation of Net income to FFO (f): For the For the Three
Months Nine Months Ended Ended September 30, September 30,
-------------- -------------- Unaudited Unaudited -----------
----------- 2009 2008 2009 2008 ---- ---- ---- ---- Net income -
available to common stockholders $142,838 $2,638 $135,118 $110,973
Adjustments to reconcile net income to FFO - basic Noncontrolling
interests in OP 21,520 386 20,351 19,051 (Gain) loss on sale or
write down of consolidated assets (161,580) 5,178 (136,731)
(95,135) plus gain on undepreciated asset sales- consolidated
assets 792 224 3,289 798 plus noncontrolling interests share of
gain on sale or write-down of consolidated joint ventures - - 310
589 less write down of consolidated assets (589) - (28,228) - Loss
(gain) on sale or write-down of assets from unconsolidated entities
(pro rata) 309 (349) 298 (3,272) plus (loss) gain on undepreciated
asset sales- unconsolidated entities (pro rata share) (26) 328 (24)
2,764 plus noncontrolling interests in gain on sale of
unconsolidated entities - - - 487 less write down of assets -
unconsolidated entities (pro rata share) (282) - (282) -
Depreciation and amortization on consolidated assets 61,856 66,637
190,507 185,538 Less depreciation and amortization allocable to
noncontrolling interests on consolidated joint ventures (1,117)
(1,065) (3,247) (2,426) Depreciation and amortization on joint
ventures (pro rata) 28,552 26,292 80,961 74,326 Less: depreciation
on personal property (3,623) (2,558) (10,912) (7,159) ------ ------
------- ------ Total FFO - basic 88,650 97,711 251,410 286,534
Additional adjustment to arrive at FFO - diluted Preferred stock
dividends earned - 835 - 4,124 --- --- --- ----- Total FFO -
diluted $88,650 $98,546 $251,410 $290,658 ------- ------- --------
-------- Reconciliation of EPS to FFO per diluted share: For the
For the Three Months Nine Months Ended Ended September 30,
September 30, -------------- -------------- Unaudited Unaudited
----------- ----------- 2009 2008 2009 2008 ---- ---- ---- ----
Earnings per share - diluted $1.75 $0.03 $1.71 $1.50 Per share
impact of depreciation and amortization of real estate 0.94 1.03
2.89 2.91 Per share impact of (gain) loss on sale or write-down of
depreciated assets (1.72) 0.06 (1.80) (1.10) Per share impact of
preferred stock not dilutive to EPS - 0.00 - (0.02) --- ---- ---
----- FFO per share - diluted $0.97 $1.12 $2.80 $3.29 ----- -----
----- ----- THE MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN
THOUSANDS, EXCEPT PER SHARE AMOUNTS) For the For the Three Months
Nine Months Reconciliation of Net Ended Ended income to EBITDA:
September 30, September 30, -------------- -------------- Unaudited
Unaudited ----------- ----------- 2009 2008 2009 2008 ---- ----
---- ---- Net income - available to common stockholders $142,838
$2,638 $135,118 $110,973 Interest expense - consolidated assets
65,779 73,889 207,631 220,299 Interest expense - unconsolidated
entities (pro rata) 27,448 25,923 78,747 77,850 Depreciation and
amortization - consolidated assets 61,856 66,637 190,507 185,538
Depreciation and amortization - unconsolidated entities (pro rata)
28,552 26,292 80,961 74,326 Noncontrolling interests in OP 21,520
386 20,351 19,051 Less: Interest expense and depreciation and
amortization allocable to noncontrolling interests on consolidated
joint ventures (1,552) (1,673) (4,511) (3,623) Loss (gain) on early
extinguishment of debt 455 - (29,145) - (Gain) loss on sale or
write down of assets - consolidated assets (161,580) 5,178
(136,731) (95,135) Loss (gain) on sale or write down of assets -
unconsolidated entities (pro rata) 309 (349) 298 (3,272) Add:
Noncontrolling interests share of gain on sale of consolidated
joint ventures - - 310 589 Add: Noncontrolling interests share of
gain on sale of unconsolidated entities - - - 487 Income tax
expense (benefit) 302 (362) (878) (750) Distributions on preferred
units 208 242 623 782 Preferred dividends - 835 - 4,124 --------
-------- -------- -------- EBITDA (g) $186,135 $199,636 $543,281
$591,239 -------- -------- -------- -------- Reconciliation of
EBITDA to Same Centers - Net Operating Income ("NOI"): For the For
the Three Months Nine Months Ended Ended September 30, September
30, -------------- -------------- Unaudited Unaudited -----------
----------- 2009 2008 2009 2008 ---- ---- ---- ---- EBITDA (g)
$186,135 $199,636 $543,281 $591,239 Add: REIT general and
administrative expenses 7,084 2,881 16,989 11,419 Management
Companies' revenues (10,449) (10,261) (28,335) (30,334) Management
Companies' operating expenses 16,400 19,014 58,702 57,886 Lease
termination income of comparable centers (6,901) (3,476) (9,206)
(8,263) EBITDA of non- comparable centers (27,899) (40,824)
(69,791) (105,657) -------- -------- -------- -------- Same Centers
- NOI (h) $164,370 $166,970 $511,640 $516,290 -------- --------
-------- -------- (g) EBITDA represents earnings before interest,
income taxes, depreciation, amortization, noncontrolling interests,
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. (h) 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. Same center NOI excludes the impact of
straight-line and SFAS 141 adjustments to minimum rents.
DATASOURCE: The Macerich Company CONTACT: Arthur Coppola, Chairman
and Chief Executive Officer, or, Thomas E. O'Hern, Senior 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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