SANTA MONICA, Calif.,
Feb. 8, 2011 /PRNewswire/ -- The
Macerich Company (NYSE: MAC) today announced results of operations
for the quarter ended December 31,
2010 which included total funds from operations ("FFO")
diluted of $108.9 million or
$.77 per share-diluted, compared to
$92.7 million or $.90 per share-diluted for the quarter ended
December 31, 2009. For the year
ended December 31, 2010, FFO-diluted
was $351.3 million, or $2.66 per share-diluted compared to $344.1 million or $3.70 per share-diluted for the year ended
December 31, 2009. Net income
available to common stockholders for the quarter ended December 31, 2010 was $23.6 million or $.18 per share-diluted compared to net loss
available to common stockholders of $14.4
million or $.18 per
share-diluted for the quarter ended December
31, 2009. For the year ended December 31, 2010, net income available to common
stockholders was $25.2 million or
$.19 per share-diluted compared to
$120.7 million or $1.45 per share-diluted for the year ended
December 31, 2009. 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
- Mall occupancy increased to 93.1%, up from 91.3% at
December 31, 2009.
- Mall total tenant sales increased 5.0% for the quarter compared
to the quarter ended December 31,
2009.
- During the quarter 294,000 square feet of leases were signed.
Releasing spreads were up 13.7% for the quarter.
- During the quarter, same center net operating income increased
by 1.8%.
Commenting on the quarter, Arthur
Coppola chairman and chief executive officer of Macerich
stated, "The fundamentals of our business continue to improve.
We saw strong retail sales gains again during the fourth
quarter. Mall occupancy continued to improve with a 180 basis
point increase for the year. We have now had four consecutive
quarters of same center NOI growth, and we expect that trend to
continue in 2011. We successfully completed a number of very
attractive refinancings and continue to benefit from a very strong
capital market."
Redevelopment Update
At Pacific View Mall in Ventura,
California, Macerich announced three new deals – BevMo!,
Staples and Massage Envy which join previously announced Sephora,
Trader Joe's and H&M. BevMo!, Massage Envy and Trader
Joe's are scheduled to open in the second quarter, followed by
Staples in the third quarter. Macerich began this recycling of
retail space on the property's north end in September 2010.
On February 5, 2011, a
79,000-square-foot Forever 21 opened as part of Macerich's phased
anchor recycling at Danbury Fair, a 1,292,086 square-foot regional
shopping center in Fairfield County,
Connecticut. Forever 21 joins Dick's Sporting Goods, which
opened in November 2010.
Financing Activity
On December 29, 2010, the Company
closed on a $232 million loan on
Freehold Raceway Mall. The loan has a term of seven years
with a fixed interest rate of 4.15%. The loan paid off the
previous loan of $157 million.
On February 1, 2011, the Company
paid off the $50 million
participating mortgage on Chesterfield Town Center. The loan
had an interest rate of 9.1% with a maturity in January 2024. The Company negotiated the early
extinguishment of this debt at the principal amount plus
$9 million, which included the buyout
of the lender's 35% participating interest in any sale proceeds
from the asset in excess of the loan amount.
Earnings Guidance
The Company is issuing 2011 FFO per share guidance in a range
from $2.78 to $2.94. This
guidance includes the prepayment of the Chesterfield loan.
The guidance also assumes same center net operating income
growth of 1.5% to 2.5% and an occupancy gain of .50%.
|
A reconciliation of FFO to
EPS follows:
|
|
|
|
|
|
|
Estimated range for FFO per
share:
|
$2.78
to $2.94
|
|
|
Less: real estate
depreciation and amortization
|
$2.40
- $2.40
|
|
|
Estimated EPS range:
|
$ .38
to $ .54
|
|
|
|
Dividend
On February 2, 2011, the Board of
Directors of the Company declared a quarterly cash dividend of
$.50 per share of common stock.
The dividend is payable on March 8,
2011 to stockholders of record at the close of business on
February 22, 2011.
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. Macerich owns approximately 73 million square feet
of gross leaseable area consisting primarily of interests in 71
regional malls. Additional information about Macerich can be
obtained from the Company's website at www.macerich.com.
Investor Conference Call
The Company will provide an online Web simulcast and rebroadcast
of its quarterly earnings conference call. The call will be
available on The Macerich Company's website at www.macerich.com
(Investing Section) and through CCBN at www.earnings.com. The
call begins today, February 8, 2011
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 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 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 which can be identified by the use
of words, such as "expects," "anticipates," "assumes,"
"projects," "estimated" and "scheduled" and similar
expressions that do not relate to historical matters. Stockholders
are cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks, uncertainties
and other factors that may cause actual results, performance or
achievements of the Company to vary materially from those
anticipated, expected or projected. Such factors include,
among others, general industry, as well as national, regional and
local economic and business conditions, which will, among other
things, affect demand for retail space or retail goods,
availability and creditworthiness of current and prospective
tenants, anchor or tenant bankruptcies, closures, mergers or
consolidations, lease rates, terms and payments, interest rate
fluctuations, availability, terms and cost of financing and
operating expenses; adverse changes in the real estate markets
including, among other things, competition from other companies,
retail formats and technology, risks of real estate development and
redevelopment, acquisitions and dispositions; the liquidity of real
estate investments, governmental actions and initiatives (including
legislative and regulatory changes); environmental and safety
requirements; and terrorist activities 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, 2009, 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
|
Results
after
|
|
|
Discontinued Operations (a)
|
Discontinued Operations (a)
|
Discontinued Operations (a)
|
|
|
For the
Three Months
|
For the
Three Months
|
For the
Three Months
|
|
|
Ended
December 31,
|
Ended
December 31,
|
Ended
December 31,
|
|
|
Unaudited
|
Unaudited
|
|
|
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
|
|
Minimum rents
|
$112,052
|
$113,829
|
10
|
($932)
|
$112,062
|
$112,897
|
|
|
Percentage rents
|
8,454
|
7,247
|
-
|
-
|
8,454
|
7,247
|
|
|
Tenant recoveries
|
63,081
|
59,338
|
(4)
|
(373)
|
63,077
|
58,965
|
|
|
Management Companies'
revenues
|
10,028
|
12,422
|
-
|
-
|
10,028
|
12,422
|
|
|
Other income
|
10,270
|
8,439
|
(6)
|
(2)
|
10,264
|
8,437
|
|
|
Total revenues
|
203,885
|
201,275
|
0
|
(1,307)
|
203,885
|
199,968
|
|
|
|
|
|
|
|
|
|
|
Shopping center and operating
expenses
|
64,021
|
59,022
|
(22)
|
(282)
|
63,999
|
58,740
|
|
|
Management Companies' operating
expenses
|
21,718
|
20,602
|
-
|
-
|
21,718
|
20,602
|
|
|
Income tax benefit
|
(3,950)
|
(3,883)
|
-
|
-
|
(3,950)
|
(3,883)
|
|
|
Depreciation and
amortization
|
64,882
|
75,656
|
-
|
(272)
|
64,882
|
75,384
|
|
|
REIT general and administrative
expenses
|
4,999
|
8,944
|
-
|
-
|
4,999
|
8,944
|
|
|
Interest expense
|
53,507
|
59,408
|
-
|
1
|
53,507
|
59,409
|
|
|
Gain on early extinguishment of
debt
|
2,053
|
15
|
-
|
-
|
2,053
|
15
|
|
|
(Loss) gain on sale or write
down of assets
|
(77)
|
(14,965)
|
-
|
17,126
|
(77)
|
2,161
|
|
|
Co-venture interests
(b)
|
(2,547)
|
(2,262)
|
-
|
-
|
(2,547)
|
(2,262)
|
|
|
Equity in income of
unconsolidated joint ventures
|
27,621
|
18,513
|
-
|
-
|
27,621
|
18,513
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing
operations
|
25,758
|
(17,173)
|
22
|
16,372
|
25,780
|
(801)
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
Loss on sale or write
down of assets
|
-
|
-
|
-
|
(17,126)
|
-
|
(17,126)
|
|
|
(Loss) income from
discontinued operations
|
-
|
-
|
(22)
|
754
|
(22)
|
754
|
|
|
Total loss from discontinued
operations
|
-
|
-
|
(22)
|
(16,372)
|
(22)
|
(16,372)
|
|
|
Net income (loss)
|
25,758
|
(17,173)
|
-
|
-
|
25,758
|
(17,173)
|
|
|
Less net income (loss)
attributable to noncontrolling interests
|
2,200
|
(2,797)
|
-
|
-
|
2,200
|
(2,797)
|
|
|
Net income (loss) attributable
to the Company
|
23,558
|
(14,376)
|
-
|
-
|
23,558
|
(14,376)
|
|
|
Less preferred
dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
Net income (loss) available to
common stockholders
|
$23,558
|
($14,376)
|
-
|
-
|
$23,558
|
($14,376)
|
|
|
|
|
|
|
|
|
|
|
Average number of shares
outstanding - basic
|
130,301
|
91,102
|
|
|
130,301
|
91,102
|
|
|
Average shares outstanding,
assuming full conversion of OP Units (c)
|
142,031
|
103,026
|
|
|
142,031
|
103,026
|
|
|
Average shares outstanding -
Funds From Operations ("FFO") - diluted (c)
|
142,031
|
103,026
|
|
|
142,031
|
103,026
|
|
|
|
|
|
|
|
|
|
|
Per share income (loss) -
diluted before discontinued operations
|
-
|
-
|
|
|
$0.18
|
($0.02)
|
|
|
Net income (loss) per
share-basic
|
$0.18
|
($0.17)
|
|
|
$0.18
|
($0.17)
|
|
|
Net income (loss) per share -
diluted (c)
|
$0.18
|
($0.18)
|
|
|
$0.18
|
($0.18)
|
|
|
Dividend declared per
share
|
$0.50
|
$0.60
|
|
|
$0.50
|
$0.60
|
|
|
FFO - basic (c)
(d)
|
$108,921
|
$92,701
|
|
|
$108,921
|
$92,701
|
|
|
FFO - diluted (c) (d)
|
$108,921
|
$92,701
|
|
|
$108,921
|
$92,701
|
|
|
FFO per share- basic (c)
(d)
|
$0.77
|
$0.90
|
|
|
$0.77
|
$0.90
|
|
|
FFO per share- diluted (c)
(d)
|
$0.77
|
$0.90
|
|
|
$0.77
|
$0.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE MACERICH
COMPANY
|
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
(IN
THOUSANDS, EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
Results of
Operations:
|
|
|
|
|
|
|
|
|
Results
before
|
Impact
of
|
Results
after
|
|
|
Discontinued Operations (a)
|
Discontinued Operations (a)
|
Discontinued Operations (a)
|
|
|
For the
Twelve Months
|
For the
Twelve Months
|
For the
Twelve Months
|
|
|
Ended
December 31,
|
Ended
December 31,
|
Ended
December 31,
|
|
|
Unaudited
|
Unaudited
|
|
|
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
|
|
Minimum rents
|
$423,151
|
$484,709
|
13
|
($10,448)
|
$423,164
|
$474,261
|
|
|
Percentage rents
|
18,411
|
16,643
|
-
|
(12)
|
18,411
|
16,631
|
|
|
Tenant recoveries
|
243,303
|
246,533
|
(4)
|
(2,432)
|
243,299
|
244,101
|
|
|
Management Companies'
revenues
|
42,895
|
40,757
|
-
|
-
|
42,895
|
40,757
|
|
|
Other income
|
30,800
|
29,988
|
(10)
|
(84)
|
30,790
|
29,904
|
|
|
Total revenues
|
758,560
|
818,630
|
(1)
|
(12,976)
|
758,559
|
805,654
|
|
|
|
|
|
|
|
|
|
|
Shopping center and operating
expenses
|
246,066
|
262,526
|
(188)
|
(4,352)
|
245,878
|
258,174
|
|
|
Management Companies' operating
expenses
|
90,414
|
79,305
|
-
|
-
|
90,414
|
79,305
|
|
|
Income tax benefit
|
(9,202)
|
(4,761)
|
-
|
-
|
(9,202)
|
(4,761)
|
|
|
Depreciation and
amortization
|
246,812
|
266,163
|
-
|
(4,100)
|
246,812
|
262,063
|
|
|
REIT general and administrative
expenses
|
20,703
|
25,933
|
-
|
-
|
20,703
|
25,933
|
|
|
Interest expense
|
212,818
|
267,039
|
-
|
6
|
212,818
|
267,045
|
|
|
Gain on early extinguishment of
debt
|
3,661
|
29,161
|
-
|
-
|
3,661
|
29,161
|
|
|
Gain on sale or write down of
assets
|
474
|
121,766
|
23
|
40,171
|
497
|
161,937
|
|
|
Co-venture interests
(b)
|
(6,193)
|
(2,262)
|
-
|
-
|
(6,193)
|
(2,262)
|
|
|
Equity in income of
unconsolidated joint ventures
|
79,529
|
68,160
|
-
|
-
|
79,529
|
68,160
|
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
28,420
|
139,250
|
210
|
35,641
|
28,630
|
174,891
|
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
|
Loss on sale or write
down of assets
|
-
|
-
|
(23)
|
(40,171)
|
(23)
|
(40,171)
|
|
|
(Loss) income from
discontinued operations
|
-
|
-
|
(187)
|
4,530
|
(187)
|
4,530
|
|
|
Total loss from discontinued
operations
|
-
|
-
|
(210)
|
(35,641)
|
(210)
|
(35,641)
|
|
|
Net income
|
28,420
|
139,250
|
-
|
-
|
28,420
|
139,250
|
|
|
Less net income attributable to
noncontrolling interests
|
3,230
|
18,508
|
-
|
-
|
3,230
|
18,508
|
|
|
Net income attributable to the
Company
|
25,190
|
120,742
|
-
|
-
|
25,190
|
120,742
|
|
|
Less preferred
dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
|
|
Net income available to common
stockholders
|
$25,190
|
$120,742
|
-
|
-
|
$25,190
|
$120,742
|
|
|
|
|
|
|
|
|
|
|
Average number of shares
outstanding - basic
|
120,346
|
81,226
|
|
|
120,346
|
81,226
|
|
|
Average shares outstanding,
assuming full conversion of OP Units (c)
|
132,283
|
93,010
|
|
|
132,283
|
93,010
|
|
|
Average shares outstanding -
Funds From Operations ("FFO") - diluted (c)
|
132,283
|
93,010
|
|
|
132,283
|
93,010
|
|
|
|
|
|
|
|
|
|
|
Per share income- diluted before
discontinued operations
|
-
|
-
|
|
|
$0.19
|
$1.83
|
|
|
Net income per
share-basic
|
$0.19
|
$1.45
|
|
|
$0.19
|
$1.45
|
|
|
Net income per share - diluted
(c)
|
$0.19
|
$1.45
|
|
|
$0.19
|
$1.45
|
|
|
Dividend declared per
share
|
$2.10
|
$2.60
|
|
|
$2.10
|
$2.60
|
|
|
FFO - basic (c)
(d)
|
$351,308
|
$344,108
|
|
|
$351,308
|
$344,108
|
|
|
FFO - diluted (c) (d)
|
$351,308
|
$344,108
|
|
|
$351,308
|
$344,108
|
|
|
FFO per share- basic (c)
(d)
|
$2.66
|
$3.70
|
|
|
$2.66
|
$3.70
|
|
|
FFO per share- diluted (c)
(d)
|
$2.66
|
$3.70
|
|
|
$2.66
|
$3.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE MACERICH
COMPANY
|
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
(IN
THOUSANDS, EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
(a) The
following dispositions impacted the results for the three and
twelve months ended December 31, 2010 and 2009:
|
|
|
|
|
During the twelve months ended December 31, 2009, the
Company sold six non-core community centers for $83.2
million
|
|
|
and 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) This
represents the outside partners' allocation of net income in the
Chandler Fashion Center/Freehold Raceway Mall joint
venture.
|
|
|
|
|
(c) 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.
|
|
|
|
|
(d) 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 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
|
|
|
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
(loss)
|
|
|
as defined by GAAP and is not indicative of cash available
to fund all cash flow needs. The Company also cautions that FFO as
presented,
|
|
|
may not be comparable to similarly titled measures reported
by other real estate investment trusts.
|
|
|
|
|
Gains or losses on sales of undepreciated assets and the
impact of amortization of above/below market leases have been
included in FFO.
|
|
|
The inclusion of gains on sales of undepreciated assets
increased FFO for the three and twelve months ended December 31,
2010 and 2009 by $0.1 million,
|
|
|
$0.6 million, $1.3 million and $4.6 million, respectively,
or by $0.00 per share, $0.00 per share, $0.01 per share and $0.05
per share, respectively.
|
|
|
Additionally, amortization of above/below market leases
increased FFO for the three and twelve months ended December 31,
2010 and 2009 by $2.4 million,
|
|
|
$10.8 million, $3.3 million and $13.7 million, respectively,
or by $0.02 per share, $0.08 per share, $0.03 per share and $0.15
per share, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE MACERICH
COMPANY
FINANCIAL
HIGHLIGHTS
(IN
THOUSANDS, EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
Pro rata share of unconsolidated
joint ventures:
|
|
|
|
For the
Three Months
|
For the
Twelve Months
|
|
|
|
Ended
December 31,
|
Ended
December 31,
|
|
|
|
Unaudited
|
Unaudited
|
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Minimum
rents
|
|
$78,143
|
$78,564
|
$300,637
|
$283,297
|
|
|
Percentage
rents
|
|
6,650
|
6,647
|
13,458
|
12,359
|
|
|
Tenant
recoveries
|
|
36,868
|
37,247
|
149,357
|
136,434
|
|
|
Other
|
|
6,685
|
5,413
|
21,418
|
16,422
|
|
|
Total
revenues
|
|
128,346
|
127,871
|
484,870
|
448,512
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
Shopping center
and operating expenses
|
|
43,983
|
44,259
|
170,221
|
155,415
|
|
|
Interest
expense
|
|
31,342
|
32,529
|
125,858
|
111,276
|
|
|
Depreciation and
amortization
|
|
25,721
|
25,474
|
109,906
|
106,435
|
|
|
Total operating
expenses
|
|
101,046
|
102,262
|
405,985
|
373,126
|
|
|
Gain (loss) on sale or write
down of assets
|
|
124
|
(7,344)
|
823
|
(7,642)
|
|
|
Loss on early extinguishment of
debt
|
|
-
|
-
|
(689)
|
-
|
|
|
Equity in income of joint
ventures
|
|
197
|
248
|
510
|
416
|
|
|
Net
income
|
|
$27,621
|
$18,513
|
$79,529
|
$68,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net income
(loss) to FFO (d):
|
|
|
|
|
|
|
|
|
For the
Three Months
|
For the
Twelve Months
|
|
|
|
Ended
December 31,
|
Ended
December 31,
|
|
|
|
Unaudited
|
Unaudited
|
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
Net income (loss) - available to
common stockholders
|
|
$23,558
|
($14,376)
|
$25,190
|
$120,742
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net
income (loss) to FFO - basic
|
|
|
|
|
|
|
|
Noncontrolling interests
in OP
|
|
2,330
|
(2,834)
|
2,497
|
17,517
|
|
|
Loss (gain) on sale or
write down of consolidated assets
|
|
77
|
14,965
|
(474)
|
(121,766)
|
|
|
plus
gain on undepreciated asset sales - consolidated assets
|
|
-
|
1,475
|
-
|
4,763
|
|
|
plus
non-controlling interests share of gain (loss) on sale or write
down of consolidated
|
|
|
|
|
|
|
joint ventures
|
|
-
|
-
|
2
|
310
|
|
|
less
write down of consolidated assets
|
|
-
|
(210)
|
-
|
(28,439)
|
|
|
(Gain) loss on sale or
write-down of assets from
|
|
|
|
|
|
|
|
unconsolidated entities (pro
rata)
|
|
(124)
|
7,344
|
(823)
|
7,642
|
|
|
plus
gain (loss) on undepreciated asset sales - unconsolidated entities
(pro rata share)
|
124
|
(128)
|
613
|
(152)
|
|
|
less
write down of assets - unconsolidated entities (pro rata
share)
|
|
-
|
(7,219)
|
(32)
|
(7,501)
|
|
|
Depreciation and
amortization on consolidated assets
|
|
64,882
|
75,656
|
246,812
|
266,163
|
|
|
Less depreciation and
amortization allocable to noncontrolling interests
|
|
|
|
|
|
|
|
on
consolidated joint ventures
|
|
(4,394)
|
(4,624)
|
(17,979)
|
(7,871)
|
|
|
Depreciation and
amortization on joint ventures (pro rata)
|
|
25,721
|
25,474
|
109,906
|
106,435
|
|
|
Less: depreciation on
personal property
|
|
(3,253)
|
(2,822)
|
(14,404)
|
(13,735)
|
|
|
|
|
|
|
|
|
|
Total FFO - basic
|
|
108,921
|
92,701
|
351,308
|
344,108
|
|
|
|
|
|
|
|
|
|
Additional adjustment to arrive
at FFO - diluted:
|
|
|
|
|
|
|
|
Preferred units -
dividends
|
|
-
|
-
|
-
|
-
|
|
|
Total FFO - diluted
|
|
$108,921
|
$92,701
|
$351,308
|
$344,108
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EPS to FFO per
diluted share:
|
|
|
|
|
|
|
|
|
For the
Three Months
|
For the
Twelve Months
|
|
|
|
Ended
December 31,
|
Ended
December 31,
|
|
|
|
Unaudited
|
Unaudited
|
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
Earnings per share -
diluted
|
|
$0.18
|
($0.18)
|
$0.19
|
$1.45
|
|
|
Per share impact of
depreciation and amortization of real estate
|
|
0.59
|
0.91
|
2.46
|
3.77
|
|
|
Per share impact of loss
(gain) on sale or write-down of depreciated assets
|
|
0.00
|
0.17
|
0.01
|
(1.52)
|
|
|
FFO per share -
diluted
|
|
$0.77
|
$0.90
|
$2.66
|
$3.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE MACERICH
COMPANY
|
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
(IN
THOUSANDS, EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months
|
For the
Twelve Months
|
|
|
|
Reconciliation of Net income
(loss) to EBITDA:
|
|
Ended
December 31,
|
Ended
December 31,
|
|
|
|
|
Unaudited
|
Unaudited
|
|
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) - available to
common stockholders
|
|
$23,558
|
($14,376)
|
$25,190
|
$120,742
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense -
consolidated assets
|
|
53,507
|
59,408
|
212,818
|
267,039
|
|
|
|
Interest expense -
unconsolidated entities (pro rata)
|
|
31,342
|
32,529
|
125,858
|
111,276
|
|
|
|
Depreciation and
amortization - consolidated assets
|
|
64,882
|
75,656
|
246,812
|
266,163
|
|
|
|
Depreciation and
amortization - unconsolidated entities (pro rata)
|
|
25,721
|
25,474
|
109,906
|
106,435
|
|
|
|
Noncontrolling interests
in OP
|
|
2,330
|
(2,834)
|
2,497
|
17,517
|
|
|
|
Less: Interest expense
and depreciation and amortization
|
|
|
|
|
|
|
|
|
allocable to noncontrolling interests on consolidated
joint ventures
|
|
(7,224)
|
(7,328)
|
(28,715)
|
(11,839)
|
|
|
|
Gain on early
extinguishment of debt
|
|
(2,053)
|
(15)
|
(3,661)
|
(29,161)
|
|
|
|
Loss on early
extinguishment of debt - unconsolidated entities (pro
rata)
|
|
-
|
-
|
689
|
-
|
|
|
|
Loss (gain) on sale or
write down of assets - consolidated assets
|
|
77
|
14,965
|
(474)
|
(121,766)
|
|
|
|
(Gain) loss on sale or
write down of assets - unconsolidated entities (pro
rata)
|
|
(124)
|
7,344
|
(823)
|
7,642
|
|
|
|
Add: Non-controlling
interests share of gain on sale of consolidated joint
ventures
|
|
-
|
275
|
2
|
585
|
|
|
|
Add: Non-controlling
interests share of gain on sale of unconsolidated
entities
|
|
-
|
-
|
93
|
-
|
|
|
|
Income tax
benefit
|
|
(3,950)
|
(3,883)
|
(9,202)
|
(4,761)
|
|
|
|
Distributions on
preferred units
|
|
207
|
208
|
831
|
831
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA (e)
|
|
$188,273
|
$187,423
|
$681,821
|
$730,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA to Same
Centers - Net Operating Income ("NOI"):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months
|
For the
Twelve Months
|
|
|
|
|
Ended
December 31,
|
Ended
December 31,
|
|
|
|
|
Unaudited
|
Unaudited
|
|
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
|
EBITDA (e)
|
|
$188,273
|
$187,423
|
$681,821
|
$730,703
|
|
|
|
|
|
|
|
|
|
|
|
Add: REIT general and
administrative expenses
|
|
4,999
|
8,944
|
20,703
|
25,933
|
|
|
|
Management Companies' revenues
|
|
(10,028)
|
(12,422)
|
(42,895)
|
(40,757)
|
|
|
|
Management Companies' operating expenses
|
|
21,718
|
20,602
|
90,414
|
79,305
|
|
|
|
Lease
termination income, straight-line and above/below market
adjustments
|
|
|
|
|
|
|
|
|
to minimum rents of comparable centers
|
|
(4,924)
|
(11,189)
|
(19,638)
|
(28,955)
|
|
|
|
EBITDA of non-comparable centers
|
|
(19,380)
|
(15,927)
|
(106,778)
|
(155,059)
|
|
|
|
|
|
|
|
|
|
|
|
Same Centers - NOI
(f)
|
|
$180,658
|
$177,431
|
$623,627
|
$611,170
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e) 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.
|
|
|
|
|
(f) 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 lease
|
|
|
termination
income, straight-line and above/below market adjustments to minimum
rents.
|
|
|
|
|
|
|
|
|
SOURCE The Macerich Company