SANTA MONICA, Calif.,
July 28, 2011 /PRNewswire/ -- The
Macerich Company (NYSE Symbol: MAC) today announced results of
operations for the quarter ended June 30,
2011 which included total funds from operations ("FFO")
diluted of $66.7 million or
$.47 per share-diluted, compared to
$.57 per share-diluted for the
quarter ended June 30, 2010. For the
quarter ended June 30, 2011, adjusted
FFO ("AFFO") per share-diluted was $.72 and excludes the impact of a $35.7 million or $.25 per share impairment charge. Net loss
available to common stockholders was $19.2
million or $.15 per
share-diluted, compared to a net loss available to common
stockholders for the quarter ended June 30,
2010 of $.4 million or
$.01 per share-diluted.
A description and reconciliation of FFO per share diluted and
AFFO per share-diluted to EPS is included in the financial tables
accompanying this press release.
Recent Highlights:
- Occupancy increased to 92.3% at June 30,
2011, up from 91.8% at June 30,
2010.
- Mall tenant annual sales per square foot increased 9.1% to
$458 for the year ended June 30, 2011 compared to $420 for the year ended June 30, 2010.
- The releasing spreads for the year ended June 30, 2011 were up 11.6%.
- On July 22, 2011, the Company
closed on the acquisition of the Fashion Outlets of Niagara Falls,
a 526,000 square foot center that is 96% occupied, with shop tenant
annual sales of approximately $650
per square foot.
Commenting on the quarter and recent events, Arthur Coppola chairman and chief executive
officer of Macerich stated, "it was a very active quarter for us,
increasing our ownership interest in two Phoenix malls, entering the fashion outlet
sector with the acquisition of Fashion Outlets of Niagara Falls and
our announced plans to develop a fashion outlet center in the
Phoenix/Scottsdale market. In addition, we
continue to see strong fundamentals in our portfolio with occupancy
gains, solid tenant sales growth and good releasing spreads."
Acquisition Activity:
On July 22, 2011, the Company
closed the acquisition of the 526,000 square foot Fashion Outlets
of Niagara Falls, USA. The
center is anchored by Saks Off 5th,
Nike, Coach Women's and Men's stores, Old Navy, Gap and Polo Ralph
Lauren and includes many other prominent tenants including Michael
Kors, Barneys of NY outlet, J. Crew, Cole
Haan, Burberry, Tommy
Hilfiger, Brooks Brothers, Calvin
Klein, Hugo Boss, Banana
Republic and 120 others. The enclosed center's shop tenant
sales per square foot are approximately $650. The center ranks as one of the most
productive outlet centers in the country. The Fashion Outlets of
Niagara Falls was purchased for $200
million, including the assumption of the existing debt of
$121 million that has an interest
rate of 5.90% and a maturity of October 1,
2020.
On June 3, 2011, the Company
acquired a 33.3% ownership interest of Superstition Springs Mall
and Arrowhead Towne Center, both in the Phoenix, Arizona market. This brings
the Company's ownership of both assets up to 66.7%. The
partnership interests were obtained in exchange for six big-box
anchor locations in Arizona,
California, Illinois and Utah and $75
million in cash.
Including these transactions, total acquisitions for the year
are over $400 million.
Balance Sheet Activity:
In May, the Company closed on a new $1.5
billion line of credit. The facility has a four year
term, extendable to five years and has an interest rate, based on
current leverage of LIBOR plus 2.00%. At June 30, 2011, the line of credit had an
outstanding balance of $145
million.
On July 1, 2011, the Company
closed on a $200 million loan on Los
Cerritos Center. The fixed rate loan has an interest rate of 4.46%
and a term of seven years.
In June, 2011 the Company paid off the $83.4 million loan with a 7.2% interest rate on
Pacific View Mall and in July the Company paid off the $40.2 million loan with interest at 7.6% on
Rimrock Mall. Both assets are now unencumbered by mortgage
debt.
On May 11, 2011, the $39 million non recourse loan on Shoppingtown
Mall matured and the asset is being transitioned back to the loan
servicer. As a result of the maturity default and on-going
negotiations with the loan servicer, the Company has recorded a
$35.7 million impairment charge on
that asset as of June 30, 2011.
Earnings Guidance:
Management is narrowing its previously issued FFO guidance range
to a new range of $2.84 to $2.92.
The Company's definition of FFO is in accordance with the
definition provided by the National Association of Real Estate
Investment Trusts ("NAREIT").
Adjusted FFO ("AFFO") excludes impairment charges.
A reconciliation of EPS to FFO per share and AFFO per share
follows:
Estimated EPS range:
|
$ .19
to $ .27
|
|
Plus: real estate
depreciation and amortization
|
$2.40
- $2.40
|
|
Estimated range for FFO per
share- diluted:
|
$2.59
to $2.67
|
|
Plus: impairment
charges
|
$ .25
- $ .25
|
|
Estimated Adjusted FFO per
share-diluted
|
$2.84
to $2.92
|
|
|
|
The revised guidance factors in the recent acquisitions but
excludes the impact of any possible future acquisitions or
dispositions.
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 now owns approximately 72 million square
feet of gross leaseable area consisting primarily of interests in
70 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, July 28, 2011 at
1:00 PM 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, 2010, 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 June
30,
|
Ended June
30,
|
Ended June
30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|
Minimum rents
|
$111,282
|
$102,509
|
(695)
|
($507)
|
$110,587
|
$102,002
|
|
Percentage rents
|
3,140
|
3,108
|
-
|
-
|
3,140
|
3,108
|
|
Tenant recoveries
|
61,081
|
57,259
|
(149)
|
(147)
|
60,932
|
57,112
|
|
Management Companies'
revenues
|
8,119
|
12,117
|
-
|
-
|
8,119
|
12,117
|
|
Other income
|
8,162
|
6,887
|
-
|
-
|
8,162
|
6,887
|
|
Total revenues
|
191,784
|
181,880
|
(844)
|
(654)
|
190,940
|
181,226
|
|
|
|
|
|
|
|
|
|
Shopping center and operating
expenses
|
64,442
|
56,731
|
(362)
|
(435)
|
64,080
|
56,296
|
|
Management Companies' operating
expenses
|
20,921
|
24,466
|
-
|
-
|
20,921
|
24,466
|
|
Income tax benefit
|
(1,768)
|
(1,375)
|
-
|
-
|
(1,768)
|
(1,375)
|
|
Depreciation and
amortization
|
65,833
|
59,913
|
(371)
|
(548)
|
65,462
|
59,365
|
|
REIT general and administrative
expenses
|
3,742
|
3,642
|
-
|
-
|
3,742
|
3,642
|
|
Interest expense
|
49,032
|
52,238
|
-
|
-
|
49,032
|
52,238
|
|
Loss on early extinguishment of
debt
|
(32)
|
(489)
|
-
|
-
|
(32)
|
(489)
|
|
(Loss) gain on remeasurement,
sale or write down of assets, net
|
(34,466)
|
510
|
24
|
72
|
(34,442)
|
582
|
|
Co-venture interests
(b)
|
(1,202)
|
(1,993)
|
-
|
-
|
(1,202)
|
(1,993)
|
|
Equity in income of
unconsolidated joint ventures
|
25,207
|
15,762
|
-
|
-
|
25,207
|
15,762
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing
operations
|
(20,911)
|
55
|
(87)
|
401
|
(20,998)
|
456
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Loss on sale or write
down of assets
|
-
|
-
|
(24)
|
(72)
|
(24)
|
(72)
|
|
Income (loss) from
discontinued operations
|
-
|
-
|
111
|
(329)
|
111
|
(329)
|
|
Total income (loss) from
discontinued operations
|
-
|
-
|
87
|
(401)
|
87
|
(401)
|
|
Net (loss) income
|
(20,911)
|
55
|
-
|
-
|
(20,911)
|
55
|
|
Less net (loss) income
attributable to noncontrolling interests
|
(1,695)
|
495
|
-
|
-
|
(1,695)
|
495
|
|
Net loss available to common
stockholders
|
($19,216)
|
($440)
|
$0
|
$0
|
($19,216)
|
($440)
|
|
|
|
|
|
|
|
|
|
Average number of shares
outstanding - basic
|
131,691
|
123,446
|
|
|
131,691
|
123,446
|
|
Average shares outstanding,
assuming full conversion of OP Units (c)
|
143,140
|
135,495
|
|
|
143,140
|
135,495
|
|
Average shares outstanding -
Funds From Operations ("FFO") - diluted (c)
|
143,140
|
135,495
|
|
|
143,140
|
135,495
|
|
|
|
|
|
|
|
|
|
Per share loss - diluted before
discontinued operations
|
-
|
-
|
|
|
($0.15)
|
($0.01)
|
|
Net loss per
share-basic
|
($0.15)
|
($0.01)
|
|
|
($0.15)
|
($0.01)
|
|
Net loss per share - diluted
(c)
|
($0.15)
|
($0.01)
|
|
|
($0.15)
|
($0.01)
|
|
Dividend declared per
share
|
$0.50
|
$0.50
|
|
|
$0.50
|
$0.50
|
|
FFO - basic (c)
(d)
|
$66,739
|
$77,466
|
|
|
$66,739
|
$77,466
|
|
FFO - diluted (c) (d)
|
$66,739
|
$77,466
|
|
|
$66,739
|
$77,466
|
|
FFO per share- basic (c)
(d)
|
$0.47
|
$0.57
|
|
|
$0.47
|
$0.57
|
|
FFO per share- diluted (c)
(d)
|
$0.47
|
$0.57
|
|
|
$0.47
|
$0.57
|
|
Adjusted FFO ("AFFO") per share-
diluted (c)(d)
|
$0.72
|
$0.57
|
|
|
$0.72
|
$0.57
|
|
|
|
|
|
|
|
|
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 Six
Months
|
For the Six
Months
|
For the Six
Months
|
|
|
Ended June
30,
|
Ended June
30,
|
Ended June
30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|
Minimum rents
|
$220,802
|
$204,485
|
(1,520)
|
($1,013)
|
$219,282
|
$203,472
|
|
Percentage rents
|
6,094
|
6,095
|
-
|
-
|
6,094
|
6,095
|
|
Tenant recoveries
|
122,754
|
118,268
|
(341)
|
(284)
|
122,413
|
117,984
|
|
Management Companies'
revenues
|
18,702
|
22,339
|
-
|
-
|
18,702
|
22,339
|
|
Other income
|
14,501
|
12,804
|
-
|
(11)
|
14,501
|
12,793
|
|
Total revenues
|
382,853
|
363,991
|
(1,861)
|
(1,308)
|
380,992
|
362,683
|
|
|
|
|
|
|
|
|
|
Shopping center and operating
expenses
|
127,216
|
117,663
|
(800)
|
(879)
|
126,416
|
116,784
|
|
Management Companies' operating
expenses
|
46,777
|
46,653
|
-
|
-
|
46,777
|
46,653
|
|
Income tax benefit
|
(4,246)
|
(2,590)
|
-
|
-
|
(4,246)
|
(2,590)
|
|
Depreciation and
amortization
|
130,459
|
119,128
|
(925)
|
(1,081)
|
129,534
|
118,047
|
|
REIT general and administrative
expenses
|
11,386
|
11,160
|
-
|
-
|
11,386
|
11,160
|
|
Interest expense
|
101,029
|
107,649
|
-
|
-
|
101,029
|
107,649
|
|
Loss on early extinguishment of
debt
|
(9,133)
|
(489)
|
-
|
-
|
(9,133)
|
(489)
|
|
(Loss) gain on remeasurement,
sale or write down of assets, net
|
(34,903)
|
511
|
2,262
|
71
|
(32,641)
|
582
|
|
Co-venture interests
(b)
|
(2,498)
|
(3,377)
|
-
|
-
|
(2,498)
|
(3,377)
|
|
Equity in income of
unconsolidated joint ventures
|
55,482
|
32,221
|
-
|
-
|
55,482
|
32,221
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing
operations
|
(20,820)
|
(6,806)
|
2,126
|
723
|
(18,694)
|
(6,083)
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Loss on sale or write
down of assets
|
-
|
-
|
(2,262)
|
(71)
|
(2,262)
|
(71)
|
|
Income (loss) from
discontinued operations
|
-
|
-
|
136
|
(652)
|
136
|
(652)
|
|
Total loss from discontinued
operations
|
-
|
-
|
(2,126)
|
(723)
|
(2,126)
|
(723)
|
|
Net loss
|
(20,820)
|
(6,806)
|
-
|
-
|
(20,820)
|
(6,806)
|
|
Less net loss attributable to
noncontrolling interests
|
(1,638)
|
(9)
|
-
|
-
|
(1,638)
|
(9)
|
|
Net loss available to common
stockholders
|
($19,182)
|
($6,797)
|
$0
|
$0
|
($19,182)
|
($6,797)
|
|
|
|
|
|
|
|
|
|
Average number of shares
outstanding - basic
|
131,136
|
110,271
|
|
|
131,136
|
110,271
|
|
Average shares outstanding,
assuming full conversion of OP Units (c)
|
142,810
|
122,379
|
|
|
142,810
|
122,379
|
|
Average shares outstanding -
Funds From Operations ("FFO") - diluted (c)
|
142,810
|
122,379
|
|
|
142,810
|
122,379
|
|
|
|
|
|
|
|
|
|
Per share loss - diluted before
discontinued operations
|
-
|
-
|
|
|
($0.14)
|
($0.07)
|
|
Net loss per
share-basic
|
($0.15)
|
($0.08)
|
|
|
($0.15)
|
($0.08)
|
|
Net loss per share - diluted
(c)
|
($0.15)
|
($0.08)
|
|
|
($0.15)
|
($0.08)
|
|
Dividend declared per
share
|
$1.00
|
$1.10
|
|
|
$1.00
|
$1.10
|
|
FFO - basic (c)
(d)
|
$140,421
|
$149,063
|
|
|
$140,421
|
$149,063
|
|
FFO - diluted (c) (d)
|
$140,421
|
$149,063
|
|
|
$140,421
|
$149,063
|
|
FFO per share- basic (c)
(d)
|
$0.98
|
$1.22
|
|
|
$0.98
|
$1.22
|
|
FFO per share- diluted (c)
(d)
|
$0.98
|
$1.22
|
|
|
$0.98
|
$1.22
|
|
Adjusted FFO ("AFFO") per share-
diluted (c)(d)
|
$1.23
|
$1.22
|
|
|
$1.23
|
$1.22
|
|
|
|
|
|
|
|
|
|
|
THE MACERICH
COMPANY
|
|
FINANCIAL
HIGHLIGHTS
|
|
(IN
THOUSANDS, EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
(a)
|
The Company has classified the
results of operations on any dispositions as discontinued
operations for the three and six months ended June 30, 2011 and
2010.
|
|
|
|
|
(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. Adjusted
FFO ("AFFO") excludes impairments of consolidated assets. 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. The Company believes that AFFO and
AFFO on a diluted basis provide useful supplemental information
regarding the Company's performance as they show a more meaningful
and consistent comparison of the Company's operating performance
and allow investors to more easily compare the Company's results
without taking into account the unrelated impairment losses, which
is a non-routine item. FFO and AFFO on a diluted basis are measures
investors find most useful in measuring the dilutive impact of
outstanding convertible securities. FFO and AFFO do 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 are not indicative of cash available to fund all
cash flow needs. The Company also cautions that FFO and AFFO 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 six
months ended June 30, 2011 and 2010 by $1.7 million and $2.3
million, $0.4 million and $0.4 million respectively, or by $0.01
per share, $0.02 per share, $0.00 and $0.00 per share,
respectively. Additionally, amortization of above/below market
leases increased FFO for the three and six months ended June 30,
2011 and 2010 by $2.7 million, $5.6 million, $2.9 million and $5.8
million, respectively, or by $0.02 per share, $0.04 per share,
$0.02 per share and $0.05 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 Six
Months
|
|
|
Ended June
30,
|
Ended June
30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Revenues:
|
|
|
|
|
|
Minimum
rents
|
$75,205
|
$73,350
|
$150,106
|
$147,401
|
|
Percentage
rents
|
2,106
|
1,757
|
4,321
|
3,653
|
|
Tenant
recoveries
|
37,153
|
35,751
|
73,505
|
73,065
|
|
Other
|
5,640
|
4,636
|
10,859
|
8,819
|
|
Total
revenues
|
120,104
|
115,494
|
238,791
|
232,938
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Shopping center
and operating expenses
|
42,615
|
40,231
|
84,569
|
82,047
|
|
Interest
expense
|
29,864
|
31,293
|
60,447
|
62,385
|
|
Depreciation and
amortization
|
30,181
|
28,753
|
58,706
|
56,208
|
|
Total operating
expenses
|
102,660
|
100,277
|
203,722
|
200,640
|
|
Gain on remeasurement, sale or
write down of assets, net
|
10
|
428
|
12,560
|
366
|
|
Gain (loss) on early
extinguishment of debt
|
7,753
|
-
|
7,753
|
(689)
|
|
Equity in income of joint
ventures
|
-
|
117
|
100
|
246
|
|
Net
income
|
$25,207
|
$15,762
|
$55,482
|
$32,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net loss to
FFO and AFFO (d):
|
|
|
|
|
|
|
For the
Three Months
|
For the Six
Months
|
|
|
Ended June
30,
|
Ended June
30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Net loss - available to common
stockholders
|
($19,216)
|
($440)
|
($19,182)
|
($6,797)
|
|
|
|
|
|
|
|
Adjustments to reconcile net
loss to FFO - basic
|
|
|
|
|
|
Noncontrolling interests
in OP
|
(1,710)
|
52
|
(1,707)
|
(746)
|
|
Loss (gain) on
remeasurement, sale or write down of consolidated assets ,
net
|
34,466
|
(510)
|
34,903
|
(511)
|
|
plus
gain on undepreciated asset sales - consolidated assets
|
1,734
|
-
|
2,277
|
-
|
|
plus
non-controlling interests share of loss on remeasurement,
sale or write down
|
|
|
|
|
|
of consolidated joint ventures
|
(4)
|
(32)
|
(4)
|
(32)
|
|
less
write down of consolidated assets
|
(36,153)
|
-
|
(36,153)
|
-
|
|
Gain on remeasurement,
sale or write-down of assets from
|
|
|
|
|
|
unconsolidated entities (pro
rata), net
|
(10)
|
(428)
|
(12,560)
|
(366)
|
|
plus
gain on undepreciated asset sales - unconsolidated entities (pro
rata share)
|
10
|
427
|
50
|
396
|
|
less
write down of assets - unconsolidated entities (pro rata
share)
|
-
|
-
|
-
|
(32)
|
|
Depreciation and
amortization on consolidated assets
|
65,833
|
59,913
|
130,459
|
119,128
|
|
Less depreciation and
amortization allocable to noncontrolling interests
|
|
|
|
|
|
on
consolidated joint ventures
|
(4,492)
|
(6,497)
|
(8,986)
|
(11,590)
|
|
Depreciation and
amortization on joint ventures (pro rata)
|
30,181
|
28,753
|
58,706
|
56,208
|
|
Less: depreciation on
personal property
|
(3,900)
|
(3,772)
|
(7,382)
|
(6,595)
|
|
|
|
|
|
|
|
Total FFO - basic
|
66,739
|
77,466
|
140,421
|
149,063
|
|
|
|
|
|
|
|
Additional adjustment to arrive
at FFO - diluted:
|
|
|
|
|
|
Preferred units -
dividends
|
-
|
-
|
-
|
-
|
|
Total FFO - diluted
|
$66,739
|
$77,466
|
$140,421
|
$149,063
|
|
|
|
|
|
|
|
Additional adjustment to arrive
at AFFO - diluted:
|
|
|
|
|
|
Add: Impairment
charge
|
35,729
|
-
|
35,729
|
-
|
|
Total AFFO- diluted
|
$102,468
|
$77,466
|
$176,150
|
$149,063
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EPS to FFO and
AFFO per diluted share:
|
|
|
|
|
|
|
For the
Three Months
|
For the Six
Months
|
|
|
Ended June
30,
|
Ended June
30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Earnings per share -
diluted
|
($0.15)
|
($0.01)
|
($0.15)
|
($0.08)
|
|
Per share impact of
depreciation and amortization of real estate
|
0.61
|
0.58
|
1.21
|
1.30
|
|
Per share impact of loss
(gain) on remeasurement, sale or write-down of assets
|
0.01
|
0.00
|
(0.08)
|
0.00
|
|
FFO per share -
diluted
|
$0.47
|
$0.57
|
$0.98
|
$1.22
|
|
Per share impact of
impairment
|
0.25
|
0.00
|
0.25
|
0.00
|
|
AFFO per share -
diluted
|
$0.72
|
$0.57
|
$1.23
|
$1.22
|
|
|
|
|
|
|
THE MACERICH
COMPANY
|
|
FINANCIAL
HIGHLIGHTS
|
|
(IN
THOUSANDS, EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months
|
For the Six
Months
|
|
Reconciliation of Net loss to
EBITDA:
|
Ended June
30,
|
Ended June
30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
|
Net loss - available to common
stockholders
|
($19,216)
|
($440)
|
($19,182)
|
($6,797)
|
|
|
|
|
|
|
|
Interest expense -
consolidated assets
|
49,032
|
52,238
|
101,029
|
107,649
|
|
Interest expense -
unconsolidated entities (pro rata)
|
29,864
|
31,293
|
60,447
|
62,385
|
|
Depreciation and
amortization - consolidated assets
|
65,833
|
59,913
|
130,459
|
119,128
|
|
Depreciation and
amortization - unconsolidated entities (pro rata)
|
30,181
|
28,753
|
58,706
|
56,208
|
|
Noncontrolling interests
in OP
|
(1,710)
|
52
|
(1,707)
|
(746)
|
|
Less: Interest expense
and depreciation and amortization
|
|
|
|
|
|
allocable to noncontrolling interests on consolidated
joint ventures
|
(7,465)
|
(10,391)
|
(14,944)
|
(18,390)
|
|
Loss on early
extinguishment of debt - consolidated entities
|
32
|
489
|
9,133
|
489
|
|
(Gain) loss on early
extinguishment of debt - unconsolidated entities (pro
rata)
|
(7,753)
|
-
|
(7,753)
|
689
|
|
Loss (gain) on
remeasurement, sale or write down of assets - consolidated
assets
|
34,466
|
(510)
|
34,903
|
(511)
|
|
(Gain) loss on
remeasurement, sale or write down of assets - unconsolidated
entities (pro rata)
|
(10)
|
(428)
|
(12,560)
|
(366)
|
|
Add: Non-controlling
interests share of loss on sale of consolidated assets
|
(4)
|
(32)
|
(4)
|
(32)
|
|
Add: Non-controlling
interests share of gain on sale of unconsolidated assets
|
-
|
93
|
-
|
93
|
|
Income tax
benefit
|
(1,768)
|
(1,375)
|
(4,246)
|
(2,590)
|
|
Distributions on
preferred units
|
208
|
208
|
416
|
416
|
|
|
|
|
|
|
|
EBITDA (e)
|
$171,690
|
$159,863
|
$334,697
|
$317,625
|
|
|
|
|
|
|
|
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
|
|
|
2011
|
2010
|
2011
|
2010
|
|
EBITDA (e)
|
$171,690
|
$159,863
|
$334,697
|
$317,625
|
|
|
|
|
|
|
|
Add: REIT general and
administrative expenses
|
3,742
|
3,642
|
11,386
|
11,160
|
|
Management Companies' revenues
|
(8,119)
|
(12,117)
|
(18,702)
|
(22,339)
|
|
Management Companies' operating expenses
|
20,921
|
24,466
|
46,777
|
46,653
|
|
Lease
termination income, straight-line and above/below market
adjustments
|
|
|
|
|
|
to minimum rents of comparable centers
|
(4,248)
|
(4,983)
|
(7,285)
|
(8,430)
|
|
EBITDA of non-comparable centers
|
(20,689)
|
(12,245)
|
(36,099)
|
(22,716)
|
|
|
|
|
|
|
|
Same Centers - NOI
(f)
|
$163,297
|
$158,626
|
$330,774
|
$321,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e) EBITDA represents earnings
before interest, income taxes, depreciation, amortization,
noncontrolling interests, extraordinary items, gain (loss)
on
|
|
remeasurement, sale or write down 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, staraight-line and above/below market adjustments to
minimum rents.
|
|
|
|
|
|
|
|
|
|
SOURCE The Macerich Company