SANTA MONICA, Calif.,
Nov. 1, 2011 /PRNewswire/ -- The
Macerich Company (NYSE Symbol: MAC) today announced results of
operations for the quarter ended September
30, 2011 which included total funds from operations ("FFO")
diluted of $104.2 million or
$.73 per share-diluted, compared to
$93.3 million or $.66 per share-diluted for the quarter ended
September 30, 2010. Adjusted FFO
("AFFO") per share-diluted was $.75
for the quarter ended September 30,
2011 compared to $.66 for the
quarter ended September 30, 2010.
Net income available to common stockholders was $12.9 million or $.10 per share-diluted, compared to net income
available to common stockholders for the quarter ended September 30, 2010 of $8.4
million or $.06 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:
- Mall tenant annual sales per square foot increased 9.6% to
$467 for the year ended September 30, 2011 compared to $426 for the year ended September 30, 2010.
- The releasing spreads for the year ended September 30, 2011 were up 10.8%.
- Adjusted FFO per share was up 13.6% compared to the quarter
ended September 30, 2010.
- Same center net operating income was up 2.82% for the quarter,
the seventh consecutive quarter of growth.
- The annualized dividend was increased 10% to $2.20 per share.
Commenting on the quarter and recent events, Arthur Coppola chairman and chief executive
officer of Macerich stated, "We are pleased to announce a double
digit growth in FFO this quarter. That growth was fueled by
strong fundamentals in our portfolio with solid tenant sales
growth, good releasing spreads and continued same center net
operating income growth. Our performance and our positive
outlook for the future led to the significant increase in our
dividend."
Balance Sheet Activity:
In July, the Company paid off the $40
million loan on Rimrock Mall. The loan had an interest rate
of 7.6%.
On September 29, 2011, the Company
closed on a $230 million, 4.25% seven
year fixed rate loan on Arrowhead Towne Center. The prior
loan of $73 million had a 6.9%
interest rate.
During October 2011, the Company
retired at par, plus accrued interest, $180
million of its convertible notes with a stated maturity of
March, 2012.
Development Activity:
The Company has entered into a joint venture agreement with a
subsidiary of AWE/Talisman for the development of the Fashion
Outlets of Chicago in the
Village of Rosemont, Illinois.
Macerich will own 60% of the joint venture and AWE/Talisman
will own 40%. The center will be a fully enclosed two
level, 528,000 square foot outlet center. The site is
located at the intersection of the I-190 and I-90 within a mile of
O'Hare International Airport which hosts 76 million travelers
annually. The Chicago area has over 13 million people and the
area has approximately 46 million annual tourist visits. The
project is expected to break ground in November, 2011 and to be
completed in spring 2013. The total estimated project cost is
approximately $200 million.
Earnings Guidance:
Management is reconfirming its previously issued 2011 Adjusted
FFO guidance range of $2.84 to $2.92,
which excludes Valley View Mall and Shoppingtown Mall. 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 EPS to FFO
per share and AFFO per share follows:
|
|
Estimated EPS range:
|
$ .12 to $
.20
|
|
Plus: real estate
depreciation and amortization
|
$2.40 -
$2.40
|
|
Estimated range for FFO per
share- diluted:
|
$2.52 to $2.60
|
|
Shoppingtown negative
FFO
|
.26 -
.26
|
|
Valley View negative
FFO
|
.06 -
.06
|
|
Estimated Adjusted FFO per
share-diluted:
|
$2.84 to $2.92
|
|
|
|
The guidance excludes the impact of any possible future
acquisitions or dispositions and excludes the impact of Valley View
and Shoppingtown, which are under the control of either a receiver
or loan servicer.
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
71 regional shopping centers. 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, November 1, 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, 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
September 30,
|
Ended
September 30,
|
Ended
September 30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|
Minimum rents
|
$113,889
|
$106,612
|
-
|
($1,062)
|
$113,889
|
$105,550
|
|
Percentage rents
|
4,137
|
3,862
|
-
|
-
|
4,137
|
3,862
|
|
Tenant recoveries
|
66,784
|
61,954
|
-
|
(146)
|
66,784
|
61,808
|
|
Management Companies'
revenues
|
9,759
|
10,529
|
-
|
-
|
9,759
|
10,529
|
|
Other income
|
8,114
|
7,725
|
-
|
(3)
|
8,114
|
7,722
|
|
Total revenues
|
202,683
|
190,682
|
0
|
(1,211)
|
202,683
|
189,471
|
|
|
|
|
|
|
|
|
|
Shopping center and operating
expenses
|
68,244
|
64,379
|
11
|
(420)
|
68,255
|
63,959
|
|
Management Companies' operating
expenses
|
20,251
|
22,042
|
-
|
-
|
20,251
|
22,042
|
|
Income tax benefit
|
(1,566)
|
(2,662)
|
-
|
-
|
(1,566)
|
(2,662)
|
|
Depreciation and
amortization
|
67,996
|
62,801
|
-
|
(616)
|
67,996
|
62,185
|
|
REIT general and administrative
expenses
|
4,490
|
4,546
|
-
|
-
|
4,490
|
4,546
|
|
Interest expense
|
49,153
|
51,662
|
-
|
-
|
49,153
|
51,662
|
|
(Loss) gain on early
extinguishment of debt
|
(6)
|
2,096
|
-
|
-
|
(6)
|
2,096
|
|
Gain (loss) on remeasurement,
sale or write down of assets, net
|
1,389
|
40
|
(348)
|
(48)
|
1,041
|
(8)
|
|
Co-venture interests
(b)
|
(1,281)
|
(269)
|
-
|
-
|
(1,281)
|
(269)
|
|
Equity in income of
unconsolidated joint ventures
|
20,039
|
19,687
|
-
|
-
|
20,039
|
19,687
|
|
|
|
|
|
|
|
|
|
Income from continuing
operations
|
14,256
|
9,468
|
(359)
|
(223)
|
13,897
|
9,245
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Gain on sale or write
down of assets
|
-
|
-
|
348
|
48
|
348
|
48
|
|
Income from
discontinued operations
|
-
|
-
|
11
|
175
|
11
|
175
|
|
Total income from discontinued
operations
|
-
|
-
|
359
|
223
|
359
|
223
|
|
Net income
|
14,256
|
9,468
|
-
|
-
|
14,256
|
9,468
|
|
Less net income attributable to
noncontrolling interests
|
1,315
|
1,039
|
-
|
-
|
1,315
|
1,039
|
|
Net income available to common
stockholders
|
$12,941
|
$8,429
|
$0
|
$0
|
$12,941
|
$8,429
|
|
|
|
|
|
|
|
|
|
Average number of shares
outstanding - basic
|
132,096
|
130,213
|
|
|
132,096
|
130,213
|
|
Average shares outstanding,
assuming full conversion of OP Units (c)
|
143,151
|
142,020
|
|
|
143,151
|
142,020
|
|
Average shares outstanding -
Funds From Operations ("FFO") - diluted (c)
|
143,151
|
142,020
|
|
|
143,151
|
142,020
|
|
|
|
|
|
|
|
|
|
Per share income - diluted
before discontinued operations
|
-
|
-
|
|
|
$0.10
|
$0.06
|
|
Net income per
share-basic
|
$0.10
|
$0.06
|
|
|
$0.10
|
$0.06
|
|
Net income per share - diluted
(c)
|
$0.10
|
$0.06
|
|
|
$0.10
|
$0.06
|
|
Dividend declared per
share
|
$0.50
|
$0.50
|
|
|
$0.50
|
$0.50
|
|
FFO - basic (c)
(d)
|
$104,180
|
$93,321
|
|
|
$104,180
|
$93,321
|
|
FFO - diluted (c) (d)
|
$104,180
|
$93,321
|
|
|
$104,180
|
$93,321
|
|
FFO per share- basic (c)
(d)
|
$0.73
|
$0.66
|
|
|
$0.73
|
$0.66
|
|
FFO per share- diluted (c)
(d)
|
$0.73
|
$0.66
|
|
|
$0.73
|
$0.66
|
|
Adjusted FFO ("AFFO") per share-
diluted (c)(d)
|
$0.75
|
$0.66
|
|
|
$0.75
|
$0.66
|
|
|
|
|
|
|
|
|
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 Nine
Months
|
For the Nine
Months
|
For the Nine
Months
|
|
|
Ended
September 30,
|
Ended
September 30,
|
Ended
September 30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|
Minimum rents
|
$334,688
|
$311,098
|
(1,520)
|
($2,076)
|
$333,168
|
$309,022
|
|
Percentage rents
|
10,235
|
9,957
|
-
|
-
|
10,235
|
9,957
|
|
Tenant recoveries
|
189,538
|
180,222
|
(341)
|
(431)
|
189,197
|
179,791
|
|
Management Companies'
revenues
|
28,460
|
32,867
|
-
|
-
|
28,460
|
32,867
|
|
Other income
|
22,614
|
20,529
|
-
|
(14)
|
22,614
|
20,515
|
|
Total revenues
|
585,535
|
554,673
|
(1,861)
|
(2,521)
|
583,674
|
552,152
|
|
|
|
|
|
|
|
|
|
Shopping center and operating
expenses
|
195,458
|
182,043
|
(792)
|
(1,309)
|
194,666
|
180,734
|
|
Management Companies' operating
expenses
|
67,030
|
68,696
|
-
|
-
|
67,030
|
68,696
|
|
Income tax benefit
|
(5,811)
|
(5,252)
|
-
|
-
|
(5,811)
|
(5,252)
|
|
Depreciation and
amortization
|
198,454
|
181,930
|
(923)
|
(1,696)
|
197,531
|
180,234
|
|
REIT general and administrative
expenses
|
15,876
|
15,704
|
-
|
-
|
15,876
|
15,704
|
|
Interest expense
|
150,182
|
159,311
|
-
|
-
|
150,182
|
159,311
|
|
(Loss) gain on early
extinguishment of debt
|
(9,139)
|
1,608
|
-
|
-
|
(9,139)
|
1,608
|
|
(Loss) gain on remeasurement,
sale or write down of assets, net
|
(33,514)
|
551
|
1,913
|
23
|
(31,601)
|
574
|
|
Co-venture interests
(b)
|
(3,779)
|
(3,646)
|
-
|
-
|
(3,779)
|
(3,646)
|
|
Equity in income of
unconsolidated joint ventures
|
75,521
|
51,908
|
-
|
-
|
75,521
|
51,908
|
|
|
|
|
|
|
|
|
|
(Loss) income from continuing
operations
|
(6,565)
|
2,662
|
1,767
|
507
|
(4,798)
|
3,169
|
|
Discontinued
operations:
|
|
|
|
|
|
|
|
Loss on sale or write
down of assets
|
-
|
-
|
(1,913)
|
(23)
|
(1,913)
|
(23)
|
|
Income (loss) from
discontinued operations
|
-
|
-
|
146
|
(484)
|
146
|
(484)
|
|
Total loss from discontinued
operations
|
-
|
-
|
(1,767)
|
(507)
|
(1,767)
|
(507)
|
|
Net (loss) income
|
(6,565)
|
2,662
|
-
|
-
|
(6,565)
|
2,662
|
|
Less net (loss) income
attributable to noncontrolling interests
|
(324)
|
1,030
|
-
|
-
|
(324)
|
1,030
|
|
Net (loss) income available to
common stockholders
|
($6,241)
|
$1,632
|
$0
|
$0
|
($6,241)
|
$1,632
|
|
|
|
|
|
|
|
|
|
Average number of shares
outstanding - basic
|
131,459
|
116,992
|
|
|
131,459
|
116,992
|
|
Average shares outstanding,
assuming full conversion of OP Units (c)
|
142,925
|
128,998
|
|
|
142,925
|
128,998
|
|
Average shares outstanding -
Funds From Operations ("FFO") - diluted (c)
|
142,925
|
128,998
|
|
|
142,925
|
128,998
|
|
|
|
|
|
|
|
|
|
Per share (loss) income -
diluted before discontinued operations
|
-
|
-
|
|
|
($0.05)
|
$0.00
|
|
Net (loss) income per
share-basic
|
($0.06)
|
$0.00
|
|
|
($0.06)
|
$0.00
|
|
Net (loss) income per share -
diluted (c)
|
($0.06)
|
$0.00
|
|
|
($0.06)
|
$0.00
|
|
Dividend declared per
share
|
$1.50
|
$1.60
|
|
|
$1.50
|
$1.60
|
|
FFO - basic (c)
(d)
|
$244,601
|
$242,387
|
|
|
$244,601
|
$242,387
|
|
FFO - diluted (c) (d)
|
$244,601
|
$242,387
|
|
|
$244,601
|
$242,387
|
|
FFO per share- basic (c)
(d)
|
$1.71
|
$1.88
|
|
|
$1.71
|
$1.88
|
|
FFO per share- diluted (c)
(d)
|
$1.71
|
$1.88
|
|
|
$1.71
|
$1.88
|
|
Adjusted FFO ("AFFO") per share-
diluted (c)(d)
|
$2.01
|
$1.88
|
|
|
$2.01
|
$1.88
|
|
|
|
|
|
|
|
|
|
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 nine months ended September 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
the negative FFO impact of Shoppingtown Mall and Valley View Center
for the three and nine months ended September
30, 2011. Valley View Center is in receivership and Shoppingtown
Mall is under the control of the loan servicer and likely will be
transferred to a receiver in the near
future. 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 and other non-cash charges on
properties controlled by either a receiver or loan
servicer, which are non-routine
items. 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 nine months ended September 30, 2011 and 2010 by
$0.0 million and $2.3 million, $0.1 million
and $0.5 million respectively, or by $0.00 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 nine
months ended September 30, 2011 and 2010 by $3.1 million,
$8.7 million, $2.5 million and
$8.3 million, respectively, or by $0.02 per share, $0.06 per share,
$0.02 per share and $0.06 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 Nine
Months
|
|
|
|
Ended
September 30,
|
Ended
September 30,
|
|
|
|
Unaudited
|
Unaudited
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Revenues:
|
|
|
|
|
|
|
Minimum
rents
|
|
$79,254
|
$75,093
|
$229,360
|
$222,494
|
|
Percentage
rents
|
|
3,636
|
3,155
|
7,957
|
6,808
|
|
Tenant
recoveries
|
|
38,237
|
39,424
|
111,742
|
112,489
|
|
Other
|
|
6,218
|
5,914
|
17,077
|
14,733
|
|
Total
revenues
|
|
127,345
|
123,586
|
366,136
|
356,524
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
Shopping center
and operating expenses
|
|
44,922
|
44,191
|
129,491
|
126,238
|
|
Interest
expense
|
|
31,091
|
32,131
|
91,538
|
94,516
|
|
Depreciation and
amortization
|
|
31,355
|
27,977
|
90,061
|
84,185
|
|
Total operating
expenses
|
|
107,368
|
104,299
|
311,090
|
304,939
|
|
Gain on remeasurement, sale or
write down of assets, net
|
|
23
|
333
|
12,583
|
699
|
|
Gain (loss) on early
extinguishment of debt
|
|
39
|
-
|
7,792
|
(689)
|
|
Equity in income of joint
ventures
|
|
-
|
67
|
100
|
313
|
|
Net
income
|
|
$20,039
|
$19,687
|
$75,521
|
$51,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net income
(loss) to FFO and AFFO (d):
|
|
|
|
|
|
|
|
|
For the
Three Months
|
For the Nine
Months
|
|
|
|
Ended
September 30,
|
Ended
September 30,
|
|
|
|
Unaudited
|
Unaudited
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Net income (loss) - available to
common stockholders
|
|
$12,941
|
$8,429
|
($6,241)
|
$1,632
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net
income (loss) to FFO - basic
|
|
|
|
|
|
|
Noncontrolling interests
in OP
|
|
1,163
|
913
|
(544)
|
167
|
|
(Gain) loss on
remeasurement, sale or write down of consolidated assets ,
net
|
|
(1,389)
|
(40)
|
33,514
|
(551)
|
|
plus
gain on undepreciated asset sales - consolidated assets
|
|
-
|
-
|
2,277
|
-
|
|
plus
non-controlling interests share of loss on remeasurement,
sale or write down
|
|
|
|
|
|
|
of consolidated joint ventures
|
|
-
|
33
|
(4)
|
2
|
|
less
write down of consolidated assets
|
|
(20)
|
-
|
(36,173)
|
-
|
|
Gain on remeasurement,
sale or write-down of assets from
|
|
|
|
|
|
|
unconsolidated entities (pro
rata), net
|
|
(23)
|
(333)
|
(12,583)
|
(699)
|
|
plus
gain on undepreciated asset sales - unconsolidated entities (pro
rata share)
|
|
20
|
92
|
71
|
489
|
|
less
write down of assets - unconsolidated entities (pro rata
share)
|
|
-
|
-
|
-
|
(32)
|
|
Depreciation and
amortization on consolidated assets
|
|
67,996
|
62,801
|
198,454
|
181,930
|
|
Less depreciation and
amortization allocable to noncontrolling interests
|
|
|
|
|
|
|
on
consolidated joint ventures
|
|
(4,534)
|
(1,995)
|
(13,520)
|
(13,585)
|
|
Depreciation and
amortization on joint ventures (pro rata)
|
|
31,355
|
27,977
|
90,061
|
84,185
|
|
Less: depreciation on
personal property
|
|
(3,329)
|
(4,556)
|
(10,711)
|
(11,151)
|
|
|
|
|
|
|
|
|
Total FFO - basic
|
|
104,180
|
93,321
|
244,601
|
242,387
|
|
|
|
|
|
|
|
|
Additional adjustment to arrive
at FFO - diluted:
|
|
|
|
|
|
|
Preferred units -
dividends
|
|
-
|
-
|
-
|
-
|
|
Total FFO - diluted
|
|
$104,180
|
$93,321
|
$244,601
|
$242,387
|
|
|
|
|
|
|
|
|
Additional adjustments to arrive
at AFFO - diluted:
|
|
|
|
|
|
|
Add: Shoppingtown
Mall negative FFO
|
|
290
|
-
|
36,041
|
-
|
|
Add: Valley View
Center negative FFO
|
|
2,886
|
-
|
6,102
|
-
|
|
Total AFFO- diluted
|
|
$107,356
|
$93,321
|
$286,744
|
$242,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EPS to FFO and
AFFO per diluted share:
|
|
|
|
|
|
|
|
|
For the
Three Months
|
For the Nine
Months
|
|
|
|
Ended
September 30,
|
Ended
September 30,
|
|
|
|
Unaudited
|
Unaudited
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Earnings per share -
diluted
|
|
$0.10
|
$0.06
|
($0.06)
|
$0.00
|
|
Per share impact of
depreciation and amortization of real estate
|
|
0.64
|
0.60
|
1.85
|
1.87
|
|
Per share impact of
(gain) loss on remeasurement, sale or write-down of
assets
|
|
(0.01)
|
0.00
|
(0.08)
|
0.01
|
|
FFO per share -
diluted
|
|
$0.73
|
$0.66
|
$1.71
|
$1.88
|
|
Per share impact of
Shoppingtown Mall and Valley View Center negative
FFO
|
|
0.02
|
0.00
|
0.30
|
0.00
|
|
AFFO per share -
diluted
|
|
$0.75
|
$0.66
|
$2.01
|
$1.88
|
|
|
|
|
|
|
|
THE MACERICH
COMPANY
|
|
FINANCIAL
HIGHLIGHTS
|
|
(IN
THOUSANDS, EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months
|
For the Nine
Months
|
|
Reconciliation of Net income
(loss) to EBITDA:
|
|
Ended
September 30,
|
Ended
September 30,
|
|
|
|
Unaudited
|
Unaudited
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
|
|
|
|
|
|
|
Net income (loss) - available to
common stockholders
|
|
$12,941
|
$8,429
|
($6,241)
|
$1,632
|
|
|
|
|
|
|
|
|
Interest expense -
consolidated assets
|
|
49,153
|
51,662
|
150,182
|
159,311
|
|
Interest expense -
unconsolidated entities (pro rata)
|
|
31,091
|
32,131
|
91,538
|
94,516
|
|
Depreciation and
amortization - consolidated assets
|
|
67,996
|
62,801
|
198,454
|
181,930
|
|
Depreciation and
amortization - unconsolidated entities (pro rata)
|
|
31,355
|
27,977
|
90,061
|
84,185
|
|
Noncontrolling interests
in OP
|
|
1,163
|
913
|
(544)
|
167
|
|
Less: Interest expense
and depreciation and amortization
|
|
|
|
|
|
|
allocable to noncontrolling interests on consolidated
joint ventures
|
|
(7,486)
|
(3,101)
|
(22,430)
|
(21,491)
|
|
Loss (gain) on early
extinguishment of debt - consolidated entities
|
|
6
|
(2,096)
|
9,139
|
(1,608)
|
|
(Gain) loss on early
extinguishment of debt - unconsolidated entities (pro
rata)
|
|
(39)
|
-
|
(7,792)
|
689
|
|
(Gain) loss on
remeasurement, sale or write down of assets - consolidated
assets
|
|
(1,389)
|
(40)
|
33,514
|
(551)
|
|
Gain on remeasurement,
sale or write down of assets - unconsolidated entities (pro
rata)
|
(23)
|
(333)
|
(12,583)
|
(699)
|
|
Add: Non-controlling
interests share of loss on sale of consolidated assets
|
|
-
|
33
|
(4)
|
2
|
|
Add: Non-controlling
interests share of gain on sale of unconsolidated assets
|
|
-
|
-
|
-
|
93
|
|
Income tax
benefit
|
|
(1,566)
|
(2,662)
|
(5,811)
|
(5,252)
|
|
Distributions on
preferred units
|
|
208
|
208
|
624
|
624
|
|
|
|
|
|
|
|
|
EBITDA (e)
|
|
$183,410
|
$175,922
|
$518,107
|
$493,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA to Same
Centers - Net Operating Income ("NOI"):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Three Months
|
For the Nine
Months
|
|
|
|
Ended
September 30,
|
Ended
September 30,
|
|
|
|
Unaudited
|
Unaudited
|
|
|
|
2011
|
2010
|
2011
|
2010
|
|
EBITDA (e)
|
|
$183,410
|
$175,922
|
$518,107
|
$493,548
|
|
|
|
|
|
|
|
|
Add: REIT general and
administrative expenses
|
|
4,490
|
4,546
|
15,876
|
15,704
|
|
Management Companies' revenues
|
|
(9,759)
|
(10,529)
|
(28,460)
|
(32,867)
|
|
Management Companies' operating expenses
|
|
20,251
|
22,042
|
67,030
|
68,696
|
|
Lease
termination income, straight-line and above/below market
adjustments
|
|
|
|
|
|
|
to minimum rents of comparable centers
|
|
(8,482)
|
(8,169)
|
(15,767)
|
(16,599)
|
|
EBITDA of non-comparable centers
|
|
(25,059)
|
(23,485)
|
(61,162)
|
(46,202)
|
|
|
|
|
|
|
|
|
Same Centers - NOI
(f)
|
|
$164,851
|
$160,327
|
$495,624
|
$482,280
|
|
|
|
|
|
|
|
(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, straight-line and above/below market adjustments to minimum
rents.
|
|
|
|
SOURCE The Macerich Company