Macerich Announces Year 2004 FFO and Net Income Guidance
December 16 2003 - 6:00AM
PR Newswire (US)
Macerich Announces Year 2004 FFO and Net Income Guidance SANTA
MONICA, Calif., Dec. 16 /PRNewswire-FirstCall/ -- The Macerich
Company today announced guidance to investors regarding the
Company's expected funds from operations-diluted ("FFO") per share
and net income available to common shareholders per share ("EPS")
for 2004. Management currently estimates that FFO per share for
2004 will be in the range of $3.78 to $3.88 and EPS is estimated to
be in the range of $1.85 to $1.95. Guidance for 2004 and
reconciliation of EPS to FFO per share and to EBITDA per share:
Range per share: Fully Diluted EPS $1.85...........$1.95 Plus: Real
Estate Depreciation and Amortization $2.03.......... $2.03 Less:
impact of preferred shares (not dilutive to EPS)
($.10)..........($.10) Less: Gain on Sale of Assets $.00...........
$.00 Fully Diluted FFO per share $3.78.......... $3.88 Plus:
Interest Expense per share $2.60...........$2.60 Plus: Non real
estate depreciation, income taxes and ground rent expense per share
$.17............$.17 EBITDA per share $6.55...........$6.65 Less:
management company expenses, REIT General and administrative
expenses and EBITDA of non-comparable centers
($.83)..........($.83) Same center EBITDA per share
$5.72...........$5.82 This range is based on many assumptions,
including the following: Management expects 2004 same center EBITDA
to grow at a 2.5% to 3.0% rate compared to 2003 results. EBITDA
represents earnings before interest, income taxes, depreciation,
amortization, minority interest, extraordinary items, gain (loss)
on sale of assets and preferred dividends and includes joint
ventures at their pro rata share. Management has assumed short-term
LIBOR interest rates will increase to 2.5% by year-end 2004.
Management's guidance regarding FFO per share and EPS in 2004
reflects the adverse earnings impact estimated at approximately
$.08 per share due to the refinancing of Flatiron mall, Northridge
mall, Chandler Gateway and Chandler Festival and the $250 million
swap of corporate unsecured debt. These transactions were completed
or negotiated in late 2003 and converted or swapped floating rate
debt to fixed rate debt. The $275 million expansion of Queens
Center is in process and management's guidance assumes that Phase-I
of the project, approximately 55% of the expansion, will be
completed and open by May 2004. Phase-II of the expansion, the
remaining 45%, is forecast to be completed with tenants opening in
December 2004 and early 2005. The guidance is based on management's
current view of the current market conditions in the regional mall
business. Due to the uncertainty in the timing and economics of
acquisitions and dispositions, the guidance ranges do not include
any potential property acquisitions or dispositions other than
those previously disclosed. The Company is not able to assess at
this time the potential impact of such exclusions on future EPS and
FFO per share. FFO does not include gains or losses on sales of
depreciated operating assets. The above statements are based on
management's current expectations and are subject to the
forward-looking statement caveat described below. The Macerich
Company is a fully integrated self-managed and self-administered
real estate investment trust, which focuses on the acquisition,
leasing, management, development and redevelopment of regional
malls throughout the United States. The Company is the sole general
partner and owns an 82% ownership interest in The Macerich
Partnership, L.P. Macerich now owns approximately 58 million square
feet of gross leaseable area consisting primarily of interests in
57 regional malls. Additional information about The Macerich
Company can be obtained from the Company's web site at
http://www.macerich.com/ . 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, tenant bankruptcies, lease rates and terms, availability
and cost of financing, interest rate fluctuations and operating
expenses; adverse changes in the real estate markets including,
among other things, competition from other companies, retail
formats and technology, risks of real estate development and
redevelopment, acquisitions and dispositions; governmental actions
and initiatives; environmental and safety requirements; and
terrorist activities that could adversely affect all of the above
factors. The reader is directed to the Company's various filings
with the Securities and Exchange Commission, for a discussion of
such risks and uncertainties. DATASOURCE: The Macerich Company
CONTACT: Arthur Coppola, President and Chief Executive Officer, or
Thomas E. O'Hern, Executive Vice President and Chief Financial
Officer, both of The Macerich Company, +1-310-394-6000 Web site:
http://www.macerich.com/
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