SANTA MONICA, Calif.,
Nov. 5, 2020 /PRNewswire/ -- The
Macerich Company (NYSE: MAC, the "Company") today announced results
of operations for the quarter ended September 30, 2020, which included net loss
attributable to the Company of $22.2
million or $0.15 per
share-diluted for the quarter ended September 30, 2020 compared to net income of
$46.4 million or $0.33 per share-diluted attributable to the
Company for the quarter ended September 30,
2019. For the third quarter 2020, funds from operations
("FFO")-diluted, excluding financing expense in connection with
Chandler Freehold was $83.4 million
or $0.52 per share-diluted compared
to $133.2 million or $0.88 per share-diluted for the quarter ended
September 30, 2019. A description and
reconciliation of earnings per share ("EPS")-diluted to FFO per
share-diluted, excluding financing expense in connection with
Chandler Freehold and loss on extinguishment of debt is included
within the financial tables accompanying this press release.
Results and Highlights:
- All properties in the portfolio have resumed operations as of
October 7, 2020.
- Rent collections continued to improve, with collection rates
increasing to approximately 81% in October of 2020 and 80% in the
third quarter of 2020, up from approximately 61% in the second
quarter of 2020.
- Mall portfolio occupancy, including closed centers, was 90.8%
at September 30, 2020, compared to
91.3% at June 30, 2020.
- Mall tenant annual sales per square foot for the portfolio was
$718 for the twelve months ended
September 30, 2020, compared to
$800 for the twelve months ended
September 30, 2019. This sales metric
excludes the period of COVID-19 closure for each tenant.
- Average rent per square foot increased 1.8% to $62.29 at September 30,
2020, compared to $61.16 at
September 30, 2019.
"We are a major employer and tax generator within all of our
markets, and our properties are home to thousands of small
businesses. After seven months of partial closures, we are pleased
to finally have our entire portfolio open and operational. The
reopening of our malls enabled us to deliver sequential improvement
in rent collections and continued progress in our negotiations with
retailers," said the Company's Chief Executive Officer,
Tom O'Hern. "Looking ahead, we are
confident that our high quality portfolio in strong gateway markets
will continue to be coveted as the retail community reestablishes
its foundation amidst the ongoing COVID-19 pandemic. We are
partnering with our tenants to prepare for what will be a very
unique holiday season and shopping environment. We will remain
vigilant managing our properties to prioritize the health and
safety of our shoppers, employees, tenants and service providers,
and to adhere to CDC and to local and state jurisdictional mandates
relating to COVID-19."
Operational and Liquidity Update:
With the reopening of three indoor malls in Los Angeles County on October 7, all of the Company's properties are
now open and operational. During the third quarter, in
addition to several development openings described later, the
Company celebrated numerous new retail store openings, including
among others:
- Adidas and Tory Burch Outlet at Fashion Outlets of Niagara
- Amazon Books and Tempur-Pedic at FlatIron Crossing
- Madewell and West Elm at La Encantada
- Amazon 4-Star, Capital One Café, Golden
Goose, Indochino, Levi's and Warby
Parker at Scottsdale Fashion Square
- Warby Parker at Twenty Ninth
Street
- Aerie at Vintage Faire Mall
Excluding the Company's three indoor Los Angeles County assets, which only recently
opened, approximately 93% of the square footage that was open prior
to COVID-19 is now open and operating. Cash receipts continued to
improve, increasing to approximately 80% in the third quarter of
2020 from approximately 61% in the second quarter of 2020. As of
November 2, 2020, the Company has
collected approximately 81% of rent for October. With continued
improvement in operating cash flow, liquidity also continued to
improve. Cash and cash equivalents increased from $573 million at June 30,
2020 to $630 million as of
September 30, 2020.
Redevelopment:
While the Company has reduced its planned 2020 development
expenditures by approximately $100
million, work continues to progress on selected projects.
Notably:
- One Westside in Los Angeles, a
584,000 square foot creative office redevelopment continues on
schedule with a planned delivery to Google in early 2022
- Restoration Hardware Gallery opened at The Village at Corte Madera in Corte Madera, CA
- Comcast, Dick's Sporting Goods ("Dick's") and Round One opened
within the majority of the former Sears store at Deptford Mall in
Deptford, NJ
- Dick's opened within a portion of the former Sears store at
Vintage Faire Mall in Modesto,
CA
- Dick's opened in a newly expanded footprint within a portion of
the former Forever 21 store at Danbury Fair in Danbury, CT
- Saratoga Hospital opened within the former Sears store at
Wilton Mall in Saratoga Springs,
NY.
Financing Activity:
The Company's joint venture has secured a commitment for a
$95 million loan on Tysons Vita, the
residential tower at Tysons Corner. This 10-year loan will bear
interest at a fixed interest rate of 3.30%, and is expected to
close in November. This loan will provide incremental liquidity to
the Company of approximately $47.0
million at the Company's share.
The Company has secured an extension of the $191.0 million loan on Danbury Fair to
April 1, 2021. The loan amount and
interest rate are unchanged following that extension.
The Company has agreed to terms with the lender of the
$103.9 million loan on Fashion
Outlets of Niagara, and
anticipates closing soon on a three-year extension to October 2023. The Company expects that the loan
amount and interest rate will remain unchanged following that
extension.
Dividend:
The Company's Board declared a quarterly cash dividend of
$0.15 per share of common
stock. The dividend is payable on December 3, 2020 to stockholders of record at the
close of business on November 9,
2020.
About Macerich:
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 currently owns 51 million square feet of real
estate consisting primarily of interests in 47 regional shopping
centers. Macerich specializes in successful retail
properties in many of the country's most attractive, densely
populated markets with significant presence in the West
Coast, Arizona, Chicago and the Metro New York
to Washington, DC corridor. A recognized leader in
sustainability, Macerich has achieved the #1 GRESB
ranking in the North American Retail Sector for five straight years
(2015 – 2019). 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
(Investors Section). The call begins on November 5, 2020 at 10:00
AM Pacific Time. To listen to the call, please go to the
website 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 (Investors 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
Investors 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, and acquisitions and
dispositions; the adverse impact of the novel coronavirus
(COVID-19) on the U.S., regional and global economies and the
financial condition and results of operations of the Company and
its tenants; the liquidity of real estate investments; governmental
actions and initiatives (including legislative and regulatory
changes); environmental and safety requirements; and terrorist
activities or other acts of violence 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, 2019 and our
Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 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:
|
|
|
|
|
|
|
For the Three
Months
|
For the Nine
Months
|
|
|
Ended September
30,
|
Ended September
30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2020
|
2019
|
2020
|
2019
|
|
Revenues:
|
|
|
|
|
|
Leasing
revenue
|
$175,506
|
$214,260
|
$554,981
|
$636,290
|
|
Other
income
|
4,334
|
6,889
|
16,595
|
20,054
|
|
Management Companies'
revenues
|
6,004
|
9,978
|
19,807
|
29,277
|
|
|
|
|
|
|
|
Total revenues
|
185,844
|
231,127
|
591,383
|
685,621
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Shopping center and
operating expenses
|
64,680
|
69,328
|
192,538
|
203,024
|
|
Management Companies'
operating expenses
|
13,031
|
15,514
|
45,697
|
50,220
|
|
Leasing
expenses
|
5,544
|
7,162
|
19,622
|
22,344
|
|
REIT general and
administrative expenses
|
7,589
|
5,285
|
22,652
|
16,835
|
|
Depreciation and
amortization
|
78,605
|
82,787
|
241,112
|
246,640
|
|
Interest expense
(a)
|
37,184
|
14,799
|
65,292
|
90,265
|
|
Loss on
extinguishment of debt
|
-
|
-
|
-
|
351
|
|
|
|
|
|
|
|
Total expenses
|
206,633
|
194,875
|
586,913
|
629,679
|
|
|
|
|
|
|
|
Equity in (loss)
income of unconsolidated joint ventures
|
(12,513)
|
14,582
|
(16,988)
|
34,082
|
|
Income tax (expense)
benefit
|
(1,106)
|
(678)
|
684
|
(1,703)
|
|
Gain (loss) on sale
or write down of assets, net
|
11,786
|
(131)
|
(28,784)
|
(15,506)
|
|
|
|
|
|
|
|
Net (loss) income
|
(22,622)
|
50,025
|
(40,618)
|
72,815
|
|
Less net (loss)
income attributable to noncontrolling interests
|
(431)
|
3,654
|
(833)
|
2,886
|
|
Net (loss) income
attributable to the Company
|
($22,191)
|
$46,371
|
($39,785)
|
$69,929
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding - basic
|
149,626
|
141,368
|
145,071
|
141,325
|
|
Weighted average
shares outstanding, assuming full conversion of OP Units
(b)
|
160,509
|
151,784
|
155,694
|
151,740
|
|
Weighted average
shares outstanding - Funds From Operations ("FFO") - diluted
(b)
|
160,509
|
151,784
|
155,694
|
151,740
|
|
|
|
|
|
|
|
Earnings per share
("EPS") - basic
|
($0.15)
|
$0.33
|
($0.28)
|
$0.49
|
|
EPS -
diluted
|
($0.15)
|
$0.33
|
($0.28)
|
$0.49
|
|
|
|
|
|
|
|
Dividend paid per
share
|
$0.15
|
$0.75
|
$1.40
|
$2.25
|
|
|
|
|
|
|
|
FFO - basic and
diluted (b) (c)
|
$98,471
|
$170,579
|
$360,021
|
$453,723
|
|
FFO - basic and
diluted, excluding financing expense in connection with
|
|
|
|
|
|
Chandler Freehold (b) (c)
|
$83,367
|
$133,242
|
$266,584
|
$388,817
|
|
FFO - basic and
diluted, excluding financing expense in connection with
|
|
|
|
|
|
Chandler Freehold and loss on extinguishment of debt (b)
(c)
|
$83,367
|
$133,242
|
$266,584
|
$389,168
|
|
|
|
|
|
|
|
FFO per share - basic
and diluted (b) (c)
|
$0.61
|
$1.12
|
$2.31
|
$2.99
|
|
FFO per share - basic
and diluted, excluding financing expense in connection
with
|
|
|
|
|
|
Chandler Freehold (b)
(c)
|
$0.52
|
$0.88
|
$1.71
|
$2.56
|
|
FFO per share - basic
and diluted, excluding financing expense in connection
with
|
|
|
|
|
|
Chandler Freehold and loss
on extinguishment of debt (b) (c)
|
$0.52
|
$0.88
|
$1.71
|
$2.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE MACERICH
COMPANY
|
|
FINANCIAL
HIGHLIGHTS
|
|
(IN THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) The Company accounts for
its investment in the Chandler Fashion Center and Freehold Raceway
Mall ("Chandler Freehold") joint venture as a financing
|
|
arrangement. As a result, the Company has included in interest
expense (i) a credit of $15,502 and $96,793 to adjust for the
change in the fair value
|
|
|
of the financing arrangement obligation during the three and nine
months ended September 30, 2020, respectively; and a credit of
$39,455 and $70,977
|
|
to adjust for the change in the fair value of the financing
arrangement obligation during the three and nine months ended
September 30, 2019, respectively;
|
|
(ii) distributions of ($398) and $885 to its partner
representing the partner's share of net (loss) income for the three
and nine months ending September 30,
|
|
2020, respectively; and $1,278 and $5,157 to its partner
representing the partner's share of net income for the three and
nine months ended September 30,
|
|
2019, respectively; and (iii) distributions of $398 and $3,356 to
its partner in excess of the partner's share of net income for the
three and nine months
|
|
ended September 30, 2020, respectively; and $2,118 and $6,071 to
its partner in excess of the partner's share of net income for the
three and nine months
|
|
ended September 30, 2019, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
(b) 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
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, stock warrants 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.
|
|
|
|
|
|
|
|
(c) 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.
|
|
The National Association of Real Estate Investment Trusts
("Nareit") defines FFO as net income (loss) (computed in accordance
with GAAP),
|
|
excluding gains (or losses) from sales of properties, plus real
estate related depreciation and amortization, impairment
write-downs of real estate
|
|
and write-downs of investments in an affiliate where the
write-downs have been driven by a decrease in the value of real
estate held by the
|
|
affiliate and after adjustments for unconsolidated joint ventures.
Adjustments for unconsolidated joint ventures are calculated to
reflect FFO on the
|
|
same basis.
|
|
|
|
|
|
|
|
The Company accounts for its joint venture in Chandler Freehold as
a financing arrangement. In connection with this treatment, the
Company recognizes
|
|
financing expense on (i) the changes in fair value of the financing
arrangement, (ii) any payments to such joint venture partner equal
to their pro rata
|
|
|
share of net income and (iii) any payments to such joint venture
partner less than or in excess of their pro rata share of net
income. The Company
|
|
|
excludes the noted expenses related to the changes in fair value
and for the payments to such joint venture partner less than or in
excess of their pro rata
|
|
share of net income.
|
|
|
|
|
|
|
|
|
|
|
|
The Company also presents FFO excluding financing expense in
connection with Chandler Freehold and loss on extinguishment of
debt.
|
|
|
|
|
|
|
|
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 such a presentation also provides
investors with a more
|
|
meaningful measure of its operating results in comparison to the
operating results of other real estate investment trusts ("REITs").
In addition, the Company
|
|
believes that FFO excluding financing expense in connection with
Chandler Freehold and non-routine costs associated with
extinguishment of debt 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 allows investors to more easily compare
the Company's results. The Company believes that FFO on a diluted
basis is a measure
|
|
investors find most useful in measuring the dilutive impact of
outstanding convertible securities.
|
|
|
|
|
|
|
|
The Company further believes that 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 REITs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE MACERICH
COMPANY
|
|
FINANCIAL
HIGHLIGHTS
|
|
(IN THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
net (loss) income attributable to the Company to FFO attributable
to
|
For the
Three Months
|
For the Nine
Months
|
common stockholders and unit holders - basic and diluted, excluding
financing expense in
|
Ended
September 30,
|
Ended
September 30,
|
connection with Chandler Freehold and loss on extinguishment of
debt (c):
|
|
Unaudited
|
Unaudited
|
|
|
2020
|
2019
|
2020
|
2019
|
Net (loss) income
attributable to the Company
|
|
($22,191)
|
$46,371
|
($39,785)
|
$69,929
|
Adjustments to
reconcile net (loss) income attributable to the Company to FFO
attributable to common
|
|
|
|
|
stockholders and unit holders - basic and diluted:
|
|
|
|
|
|
Noncontrolling interests in the OP
|
|
(1,618)
|
3,427
|
(2,912)
|
5,151
|
(Gain)
loss on sale or write down of consolidated assets, net
|
|
(11,786)
|
131
|
28,784
|
15,506
|
Add:
gain on undepreciated asset sales from consolidated
assets
|
|
12,362
|
81
|
12,402
|
615
|
Loss on
write down of consolidated non-real estate assets
|
|
(1,361)
|
-
|
(4,154)
|
-
|
Noncontrolling interests share of gain (loss) on sale or write-down
of consolidated joint ventures, net
|
929
|
-
|
929
|
(3,369)
|
Loss
(gain) on sale or write down of assets from unconsolidated joint
ventures (pro rata), net
|
71
|
(3)
|
77
|
381
|
Depreciation and amortization on consolidated
assets
|
|
78,605
|
82,787
|
241,112
|
246,640
|
Less
depreciation and amortization allocable to noncontrolling
interests
|
|
|
|
|
|
in
consolidated joint ventures
|
|
(3,855)
|
(3,746)
|
(11,472)
|
(11,067)
|
Depreciation and amortization on unconsolidated joint ventures (pro
rata)
|
|
50,775
|
45,465
|
146,702
|
141,670
|
Less:
depreciation on personal property
|
|
(3,460)
|
(3,934)
|
(11,662)
|
(11,733)
|
|
|
|
|
|
|
FFO attributable to
common stockholders and unit holders - basic and diluted
|
|
98,471
|
170,579
|
360,021
|
453,723
|
|
|
|
|
|
|
Financing expense in connection with Chandler Freehold
|
|
(15,104)
|
(37,337)
|
(93,437)
|
(64,906)
|
|
|
|
|
|
|
FFO attributable to
common stockholders and unit holders, excluding financing expense
in
|
|
|
|
|
connection
with Chandler Freehold - basic and diluted
|
|
83,367
|
133,242
|
266,584
|
388,817
|
|
|
|
|
|
|
Loss on
extinguishment of debt
|
|
-
|
-
|
-
|
351
|
|
|
|
|
|
|
FFO attributable to
common stockholders and unit holders, excluding financing expense
in connection
|
|
|
|
|
with
Chandler Freehold and loss on extinguishment of debt -
diluted
|
|
$83,367
|
$133,242
|
$266,584
|
$389,168
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EPS to FFO per share - diluted (c):
|
|
|
|
|
|
|
|
For the
Three Months
|
For the Nine
Months
|
|
|
Ended
September 30,
|
Ended
September 30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2020
|
2019
|
2020
|
2019
|
EPS -
diluted
|
|
($0.15)
|
$0.33
|
($0.28)
|
$0.49
|
Per
share impact of depreciation and amortization of real
estate
|
|
0.76
|
0.79
|
2.34
|
2.41
|
Per
share impact of loss on sale or write down of assets,
net
|
|
-
|
-
|
0.25
|
0.09
|
FFO per share - basic
and diluted
|
|
$0.61
|
$1.12
|
$2.31
|
$2.99
|
Per
share impact of financing expense in connection with Chandler
Freehold.
|
|
(0.09)
|
(0.24)
|
(0.60)
|
(0.43)
|
FFO per share - basic
and diluted, excluding financing expense in connection with
Chandler Freehold
|
$0.52
|
$0.88
|
$1.71
|
$2.56
|
Per
share impact of loss on extinguishment of debt
|
|
-
|
-
|
-
|
-
|
FFO per share - basic
and diluted, excluding financing expense in connection with
Chandler Freehold
|
|
|
|
|
and loss on
extinguishment of debt
|
|
$0.52
|
$0.88
|
$1.71
|
$2.56
|
|
|
|
|
|
|
|
|
|
|
|
|
THE MACERICH
COMPANY
|
|
FINANCIAL
HIGHLIGHTS
|
|
(IN THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net (loss) income attributable to the Company to Adjusted
EBITDA:
|
|
|
|
|
|
|
For the
Three Months
|
For the Nine
Months
|
|
|
Ended
September 30,
|
Ended
September 30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
Net (loss) income
attributable to the Company
|
|
($22,191)
|
$46,371
|
($39,785)
|
$69,929
|
Interest
expense - consolidated assets
|
|
37,184
|
14,799
|
65,292
|
90,265
|
Interest
expense - unconsolidated joint ventures (pro rata)
|
|
26,882
|
25,552
|
80,199
|
78,974
|
Depreciation and amortization - consolidated assets
|
|
78,605
|
82,787
|
241,112
|
246,640
|
Depreciation and amortization - unconsolidated joint ventures (pro
rata)
|
|
50,775
|
45,465
|
146,702
|
141,670
|
Noncontrolling interests in the OP
|
|
(1,618)
|
3,427
|
(2,912)
|
5,151
|
Less:
Interest expense and depreciation and amortization
|
|
|
|
|
|
allocable to noncontrolling interests in consolidated joint
ventures
|
|
(7,216)
|
(8,743)
|
(23,670)
|
(26,222)
|
Loss on
extinguishment of debt
|
|
-
|
-
|
-
|
351
|
(Gain)
loss on sale or write down of assets, net - consolidated
assets
|
|
(11,786)
|
131
|
28,784
|
15,506
|
Loss
(gain) on sale or write down of assets, net - unconsolidated joint
ventures (pro rata)
|
71
|
(3)
|
77
|
381
|
Add:
Noncontrolling interests share of gain (loss) on sale or write-down
of consolidated joint ventures, net
|
929
|
-
|
929
|
(3,369)
|
Income
tax expense (benefit)
|
|
1,106
|
678
|
(684)
|
1,703
|
Distributions on preferred units
|
|
90
|
100
|
281
|
301
|
Adjusted EBITDA
(d)
|
|
$152,831
|
$210,564
|
$496,325
|
$621,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA to Net Operating Income ("NOI") and to NOI - Same
Centers:
|
|
|
|
|
|
|
For the
Three Months
|
For the Nine
Months
|
|
|
Ended
September 30,
|
Ended
September 30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2020
|
2019
|
2020
|
2019
|
Adjusted EBITDA
(d)
|
|
$152,831
|
$210,564
|
$496,325
|
$621,280
|
REIT
general and administrative expenses
|
|
7,589
|
5,285
|
22,652
|
16,835
|
Management Companies' revenues
|
|
(6,004)
|
(9,978)
|
(19,807)
|
(29,277)
|
Management Companies' operating expenses
|
|
13,031
|
15,514
|
45,697
|
50,220
|
Leasing
expenses, including joint ventures at pro rata
|
|
6,043
|
8,147
|
21,432
|
25,170
|
Straight-line and above/below market adjustments
|
|
(9,887)
|
(8,850)
|
(22,691)
|
(23,538)
|
NOI - All
Centers
|
|
163,603
|
220,682
|
543,608
|
660,690
|
NOI of
non-Same Centers
|
|
(2,191)
|
(3,697)
|
(5,929)
|
(20,368)
|
NOI - Same Centers
(e)
|
|
161,412
|
216,985
|
537,679
|
640,322
|
Lease
termination income of Same Centers
|
|
(9,050)
|
(1,404)
|
(12,777)
|
(5,309)
|
NOI - Same Centers,
excluding lease termination income (e)
|
|
$
152,362
|
$
215,581
|
$
524,902
|
$
635,013
|
|
|
|
|
|
|
NOI - Same Centers
percentage change, excluding lease termination income
(e)
|
|
-29.32%
|
|
-17.34%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) Adjusted EBITDA
represents earnings before interest, income taxes, depreciation,
amortization, noncontrolling interests in the OP, extraordinary
items, loss (gain) on
|
remeasurement, sale or
write down of assets, loss (gain) on extinguishment of debt and
preferred dividends and includes joint ventures at their pro
rata
|
share. Management
considers Adjusted 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. The Company
believes that Adjusted 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. The Company also cautions that Adjusted
EBITDA, as presented, may not be comparable to similarly titled
measurements
|
reported by other
companies.
|
|
|
|
|
|
|
|
(e) 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 Adjusted EBITDA and eliminating the
impact of the management companies' revenues and operating
expenses, leasing
|
expenses (including
joint ventures at pro rata), the Company's REIT general and
administrative expenses and the straight-line and above/below
market adjustments to
|
minimum rents and
subtracting out NOI from non-Same Centers.
|
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SOURCE Macerich Company