SANTA MONICA, Calif., Aug. 4 /PRNewswire-FirstCall/ -- The Macerich
Company (NYSE:MAC) today announced results of operations for the
quarter ended June 30, 2009 which included total funds from
operations ("FFO") diluted of $59.9 million or $.67 per diluted
share compared to $1.12 per diluted share for the quarter ended
June 30, 2008. For the six months ended June 30, 2009, FFO-diluted
was $162.8 million compared to $192.1 million for the six months
ended June 30, 2008. Net loss available to common stockholders for
the quarter ended June 30, 2009 was $21.7 million or $.29 per
diluted share compared to net income available to common
stockholders of $15.7 million or $.21 per diluted share for the
quarter ended June 30, 2008. For the six months ended June 30,
2009, net loss available to common stockholders was $7.7 million or
$.11 per diluted share compared to net income available to common
stockholders of $108.3 million or $1.47 per diluted share for the
six months ended June 30, 2008. Negatively impacting both FFO per
diluted share and EPS by $.31 per share during the quarter ended
June 30, 2009 was a $27 million impairment charge on non core
assets. 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 Activity: -- During the quarter, Macerich
signed 238,000 square feet of specialty store leases with average
initial rents of $43.49 per square foot. Starting base rent on new
lease signings was 21.2% higher than the expiring base rent. --
Mall tenant sales per square foot for the trailing twelve month
period decreased to $428 for the quarter ended June 30, 2009
compared to $464 for the quarter ended June 30, 2008. -- Portfolio
occupancy at June 30, 2009 was 90.5% compared to 92.5% at June 30,
2008 and up from 90.2% at March 31, 2009. -- In July, the Company
completed the sale of $66 million in non core asset sales. --
During 2009, the Company has closed on over $600 million in
financings and has arranged for financing on another three loans
totaling over $200 million. -- On July 30, 2009, the Company closed
on the sale of a 49% joint venture interest in Queens Center,
netting approximately $150 million in cash proceeds. Commenting on
results, Arthur Coppola chairman and chief executive officer of
Macerich stated, "In light of the economy, we are pleased with the
continuing solid fundamentals with occupancy levels above 90% and
strong releasing spreads. In addition, we have made a significant
amount of progress on our balance sheet with the recently announced
joint venture on Queens Center, the sale of non core assets and a
series of new financings." Joint Ventures: On July 30, 2009, the
Company and long-time partner The Cadillac Fairview Corporation
Limited announced a joint venture in Macerich's dominant New York
City asset, Queens Center. Under the terms of the deal, the Company
received approximately $150 million in net cash and Cadillac
Fairview acquired a 49% interest in the asset. Non Core Asset
Sales: During July the Company closed on $66 million of non core
asset sales. The properties sold were all un-leveraged and included
five Kohl's stores and one strip center in Phoenix. This brings the
non core assets sales for the year to $74 million. Financing
Activity: The Company has arranged for financing on two previously
unencumbered assets. A $90 million loan has been arranged for
Paradise Valley Mall which will have a three year term, extendable
to five years and bear interest at Libor plus 4.0%. The loan is
expected to close in August. An $80 million three year construction
loan has been arranged on Northgate Mall. The loan will have an
interest rate of Libor plus 4.50% and is expected to close in
September. At the Village of Corte Madera the Company has agreed to
an $80 million, seven year fixed rate loan bearing interest at
7.20%. This loan will pay off the maturing loan of $63 million. The
new loan is expected to close in October. Upon completion of these
financings, the Company will have less than $60 million of
remaining maturities for 2009. Subsequent to quarter end, the
unsecured term notes were paid down by $200 million from proceeds
from the Queen's joint venture sale and the non core asset sales.
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. The Company is the sole general
partner and owns an 87% ownership interest in The Macerich
Partnership, L.P. Macerich now owns approximately 76 million square
feet of gross leaseable area consisting primarily of interests in
72 regional malls. Additional information about Macerich can be
obtained from the Company's Web site at http://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 http://www.macerich.com/ (Investing Section) and through CCBN at
http://www.earnings.com/. The call begins today, August 4, 2009 at
9:30 AM Pacific Time. To listen to the call, please go to any of
these web sites at least 15 minutes prior to the call in order to
register and download audio software if needed. An online replay at
http://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
http://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. 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, anchor or tenant bankruptcies,
closures, mergers or consolidations, lease rates and terms,
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, 2008 and the
Quarterly Reports on Form 10-Q, 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 SFAS 144 (a) SFAS 144 (a) SFAS 144 (a)
-------------- ------------- ------------- For the For the For the
Three Months Three Months Three Months Ended June 30, Ended June
30, Ended June 30, -------------- -------------- --------------
Unaudited Unaudited --------- --------- 2009 2008(b) 2009 2008 2009
2008(b) ---- ------- ---- ---- ---- ------- Minimum rents $123,504
$130,673 $0 ($842) $123,504 $129,831 Percentage rents 2,686 2,954 -
- 2,686 2,954 Tenant recoveries 62,530 67,067 - (154) 62,530 66,913
Management Companies' revenues 9,345 10,382 - - 9,345 10,382 Other
income 7,850 6,775 - (64) 7,850 6,711 ----- ----- - ---- -----
----- Total revenues $205,915 $217,851 $0 ($1,060) $205,915
$216,791 -------------- -------- -------- -- -------- --------
-------- Shopping center and operating expenses 67,565 69,354 (11)
(346) 67,554 69,008 Management Companies' operating expenses 18,872
20,529 - - 18,872 20,529 Income tax (benefit) provision (380) (689)
- - (380) (689) Depreciation and amortization 63,740 57,774 - (300)
63,740 57,474 REIT general and administrative expenses 4,648 4,135
- - 4,648 4,135 Interest expense (b) 71,914 72,042 - - 71,914
72,042 Gain on early extinguishment of debt 7,127 - - - 7,127 -
(Loss) gain on sale or write-down of assets (25,605) 376 - 113
(25,605) 489 Equity in income of unconsolidated joint ventures (c)
14,556 24,946 - - 14,556 24,946 (Loss) income from continuing
operations (24,366) 20,028 11 (301) (24,355) 19,727 Discontinued
Operations: (Loss) gain on sale or disposition of assets - - -
(113) - (113) (Loss) income from discontinued operations - - (11)
414 (11) 414 Total (loss) income from discontinued operations - -
(11) 301 (11) 301 Net (loss) income (24,366) 20,028 - - (24,366)
20,028 Less net (loss) income attributable to noncontrolling
interests (2,630) 3,468 - - (2,630) 3,468 Net (loss) income
attributable to common stockholders (21,736) 16,560 - - (21,736)
16,560 Less preferred dividends (d) - 835 - - - 835 Net (loss)
income available to common stockholders ($21,736) $15,725 - -
($21,736) $15,725 -------------------- --------- ------- --- ---
--------- ------- Average number of shares outstanding -basic
77,270 73,780 77,270 73,780 ------------------- ------ ------
------ ------ Average shares outstanding, assuming full conversion
of OP Units (e) 88,970 86,781 88,970 86,781 ------ ------ ------
------ Average shares outstanding -Funds From Operations ("FFO")
-diluted (d) (e) 88,970 88,633 88,970 88,633
----------------------- ------ ------ ------ ------ Per share
(loss) income- diluted before discontinued operations - - ($0.29)
$0.21 ---------------- --- --- ------- ----- Net (loss) income per
share- basic (b) ($0.29) $0.21 ($0.29) $0.21 ---------------------
------- ----- ------- ----- Net (loss) income per share- diluted
(b) (d) (e) ($0.29) $0.21 ($0.29) $0.21 ---------------------
------- ----- ------- ----- Dividend declared per share $0.60 $0.80
$0.60 $0.80 --------------------- ----- ----- ----- ----- FFO -
basic (b) (e) (f) $59,920 $98,810 $59,920 $98,810
--------------------- ------- ------- ------- ------- FFO - diluted
(b) (d) (e) (f) $59,920 $99,645 $59,920 $99,645
---------------------- ------- ------- ------- ------- FFO per
share- basic (b) (e) (f) $0.67 $1.14 $0.67 $1.14
----------------------- ----- ----- ----- ----- FFO per share-
diluted (b) (d) (e) (f) $0.67 $1.12 $0.67 $1.12
----------------------- ----- ----- ----- ----- THE MACERICH
COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE
AMOUNTS) Results of Operations: --------------- -------------
-------------- Results before Impact of Results after SFAS 144 (a)
SFAS 144 (a) SFAS 144 (a) -------------- -------------
-------------- For the For the For the Six Months Six Months Six
Months Ended June 30, Ended June 30, Ended June 30, --------------
-------------- -------------- Unaudited Unaudited ---------
--------- 2009 2008(b) 2009 2008 2009 2008(b) ---- ------- ----
---- ---- ------- Minimum rents $250,976 $262,760 $0 ($1,781)
$250,976 $260,979 Percentage rents 5,487 5,658 - - 5,487 5,658
Tenant recoveries 127,441 134,898 - (328) 127,441 134,570
Management Companies' revenues 17,885 20,073 - - 17,885 20,073
Other income 14,904 13,388 - (347) 14,904 13,041 ------ ------ -
----- ------ ------ Total revenues $416,693 $436,777 $0 ($2,456)
$416,693 $434,321 -------------- -------- -------- -- --------
-------- -------- Shopping center and operating expenses 138,346
140,308 (20) (677) 138,326 139,631 Management Companies' operating
expenses 42,302 38,872 - - 42,302 38,872 Income tax (benefit)
provision (1,181) (388) - - (1,181) (388) Depreciation and
amortization 128,651 118,901 - (772) 128,651 118,129 REIT general
and administrative expenses 9,906 8,538 - - 9,906 8,538 Interest
expense (b) 141,852 146,411 - - 141,852 146,411 Gain on early
extinguishment of debt 29,601 - - - 29,601 - (Loss) gain on sale or
write-down of assets (24,849) 100,313 17 (99,150) (24,832) 1,163
Equity in income of unconsolidated joint ventures (c) 30,482 47,244
- - 30,482 47,244 (Loss) income from continuing operations (7,949)
131,692 37(100,157) (7,912) 31,535 Discontinued Operations: (Loss)
gain on sale or disposition of assets - - (17) 99,150 (17) 99,150
(Loss) income from discontinued operations - - (20) 1,007 (20)
1,007 Total (loss) income from discontinued operations - -
(37)100,157 (37) 100,157 Net (loss) income (7,949) 131,692 - -
(7,949) 131,692 Less net (loss) income attributable to
noncontrolling interests (229) 20,068 - - (229) 20,068 Net (loss)
income attributable to common stockholders (7,720) 111,624 - -
(7,720) 111,624 Less preferred dividends (d) - 3,289 - - - 3,289
Net (loss) income available to common stockholders ($7,720)$108,335
- - ($7,720)$108,335 -------------------- ------- -------- --- ---
------- -------- Average number of shares outstanding - basic
77,082 73,061 77,082 73,061 -------------------- ------ ------
------ ------ Average shares outstanding, assuming full conversion
of OP Units (e) 88,759 88,465 88,759 88,465 ------ ------ ------
------ Average shares outstanding - Funds From Operations ("FFO") -
diluted (d) (e) 88,759 88,465 88,759 88,465 -----------------------
------ ------ ------ ------ Per share (loss) income- diluted before
discontinued operations - - ($0.11) $0.34 -------------------- ---
--- ------- ----- Net (loss) income per share-basic (b) ($0.12)
$1.48 ($0.12) $1.48 --------------------- ------- ----- -------
----- Net (loss) income per share-diluted (b) (d) (e) ($0.11) $1.47
($0.11) $1.47 --------------------- ------- ----- ------- -----
Dividend declared per share $1.40 $1.60 $1.40 $1.60
--------------------- ----- ----- ----- ----- FFO - basic (b) (e)
(f) $162,760 $188,824 $162,760 $188,824 ---------------------
-------- -------- -------- -------- FFO - diluted (b) (d) (e) (f)
$162,760 $192,113 $162,760 $192,113 ------------------------------
-------- -------- -------- FFO per share- basic (b) (e) (f) $1.83
$2.21 $1.83 $2.21 ----------------------- ----- ----- ----- -----
FFO per share- diluted (b) (d) (e) (f) $1.83 $2.17 $1.83 $2.17
----------------------- ----- ----- ----- ----- THE MACERICH
COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT SHARE AND PER
SHARE AMOUNTS) (a) SFAS No. 144, "Accounting for the Impairment or
Disposal of Long- Lived Assets" ("SFAS 144") addresses financial
accounting and reporting for the impairment or disposal of
long-lived assets. The following dispositions impacted the results
for the three and six months ended June 30, 2009 and 2008: On April
25, 2005, in connection with the acquisition of Wilmorite Holdings,
L.P. and its affiliates, the Company issued as part of the
consideration participating and non-participating convertible
preferred units in MACWH, LP. On January 1, 2008, a subsidiary of
the Company, at the election of the holders, redeemed approximately
3.4 million participating convertible preferred units in exchange
for the distribution of the interests in the entity which held that
portion of the Wilmorite portfolio that consisted of Eastview
Commons, Eastview Mall, Greece Ridge Center, Marketplace Mall and
Pittsford Plaza ("Rochester Properties"). This exchange is referred
to as the "Rochester Redemption." As a result of the Rochester
Redemption , the Company recorded a gain of $99.3 million for the
period ended March 31, 2008 and classified the gain to discontinued
operations. On December 19, 2008, the Company sold the fee simple
and/or ground leasehold interests in three freestanding Mervyn's
buildings to the Pacific Premier Retail Trust joint venture for
$43.4 million. As a result of the sale, the Company has classified
the results of operations to discontinued operations for all
periods presented. (b) On January 1, 2009, the Company adopted FASB
Staff Position APB 14- 1, "Accounting for Convertible Debt
Instruments That May Be Settled Upon Conversion (Including Partial
Cash Settlement)" (FSP APB 14-1"). As a result, the Company
retrospectively applied FSP APB 14-1 to the three and six months
ended June 30, 2008 resulting in an increase to interest expense of
$3.5 million and $7.1 million, respectively, and a decrease to net
income available to common stockholders of $3.1 million and $6.1
million, respectively, or $0.04 and $0.07 per share, respectively.
FSP APB 14-1 decreased FFO for the three and six months ended June
30, 2008 by $3.5 million and $7.1 million, respectively, or by
$0.04 per share and $0.08 per share, respectively. (c) This
includes, using the equity method of accounting, the Company's
prorata share of the equity in income or loss of its unconsolidated
joint ventures for all periods presented. (d) On February 25, 1998,
the Company sold $100 million of convertible preferred stock
representing 3.627 million shares. The convertible preferred shares
were convertible on a 1 for 1 basis for common stock. The preferred
shares were assumed converted for purposes of net income per share
- diluted for the three and six months ended June 30, 2008. The
weighted average preferred shares are assumed converted for
purposes of FFO per share - diluted for 2008. On October 18, 2007,
560,000 shares of convertible preferred stock were converted to
common shares. Additionally, on May 6, 2008, May 8, 2008 and
September 18, 2008, 684,000, 1,338,860 and 1,044,271 shares of
convertible preferred stock were converted to common shares,
respectively. As of December 31, 2008, there was no convertible
preferred stock outstanding. (e) The Macerich Partnership, LP (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. (f) 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 fully 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 fully 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 as defined by GAAP
and is not indicative of cash available to fund all cash flow
needs. 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 SFAS 141
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, 2009 and 2008 by $1.1 million, $2.5 million, $1.4
million and $3.0 million, respectively, or by $0.01 per share,
$0.03 per share, $0.01 per share and $0.03 per share, respectively.
Additionally, SFAS 141 increased FFO for the three and six months
ended June 30, 2009 and 2008 by $3.0 million, $7.2 million, $3.9
million and $8.5 million, respectively, or by $0.03 per share,
$0.08 per share, $0.04 per share and $0.10 per share, respectively.
THE MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER
SHARE AMOUNTS) Pro rata share of joint ventures: ----------------
---------------- For the Three For the Six Months Months Ended June
30, Ended June 30, ---------------- ---------------- Unaudited
Unaudited ----------- ----------- 2009 2008 2009 2008 ---- ----
---- ---- Revenues: Minimum rents $64,941 $67,124 $131,977 $133,434
Percentage rents 1,458 2,143 2,855 4,405 Tenant recoveries 31,822
31,452 63,877 64,048 Other 3,213 9,851 6,648 14,009 ----- -----
----- ------ Total revenues $101,434 $110,570 $205,357 $215,896
-------- -------- -------- -------- Expenses: Shopping center and
operating expenses 35,195 35,988 71,174 71,913 Interest expense
25,797 25,668 51,299 51,927 Depreciation and amortization 25,908
25,755 52,409 48,034 ------ ------ ------ ------ Total operating
expenses 86,900 87,411 174,882 171,874 ------ ------ -------
------- Gain on sale or write-down of assets 3 1,604 11 2,923
Equity in income (loss) of joint ventures 19 183 (4) 299 --- ---
--- --- Net income $14,556 $24,946 $30,482 $47,244 ------- -------
------- ------- Reconciliation of Net (Loss) income to FFO (f):
------------- ----------- For the Three For the Six Months Months
Ended June 30, Ended June 30, ---------------- ----------------
Unaudited Unaudited ----------- ----------- 2009 2008 2009 2008
---- ---- ---- ---- Net (loss) income - available to common
stockholders ($21,736) $15,725 ($7,720) $108,335 Adjustments to
reconcile net income to FFO - basic Noncontrolling interests in OP
(3,293) 2,590 (1,169) 18,665 Gain on sale or write-down of
consolidated assets 25,605 (376) 24,849 (100,313) plus gain on
undepreciated asset sales- consolidated assets 1,143 241 2,497 574
plus noncontrolling interests share of gain on sale or write-down
of consolidated joint ventures 310 248 310 589 less write-down of
consolidated assets (27,058) - (27,639) - Gain on sale or
write-down of assets from unconsolidated entities (pro rata share)
(3) (1,604) (11) (2,923) plus gain on undepreciated asset sales-
unconsolidated entities (pro rata share) 3 1,116 2 2,436 plus
noncontrolling interests of gain on sale of unconsolidated entities
- 487 - 487 Depreciation and amortization on consolidated assets
63,740 57,774 128,651 118,901 Less depreciation and amortization
allocable to noncontrolling interests on consolidated joint
ventures (1,064) (788) (2,130) (1,361) Depreciation and
amortization on joint ventures (pro rata) 25,908 25,755 52,409
48,034 Less: depreciation on personal property (3,635) (2,358)
(7,289) (4,600) ------ ------ ------ ------ Total FFO - basic
59,920 98,810 162,760 188,824 Additional adjustment to arrive at
FFO - diluted Preferred stock dividends earned - 835 - 3,289 ---
--- --- ----- Total FFO - diluted $59,920 $99,645 $162,760 $192,113
------- ------- -------- -------- Reconciliation of EPS to FFO per
diluted share: ------------- ----------- For the Three For the Six
Months Months Ended June 30, Ended June 30, ----------------
---------------- Unaudited Unaudited ----------- ----------- 2009
2008 2009 2008 ---- ---- ---- ---- Earnings per share - diluted
($0.29) $0.21 ($0.11) $1.47 Per share impact of depreciation and
amortization of real estate 0.96 0.92 1.94 1.88 Per share impact of
(gain) loss on sale or write-down of depreciated assets - - -
(1.16) Per share impact of preferred stock not dilutive to EPS -
(0.01) - (0.02) --- ----- --- ----- FFO per share - diluted $0.67
$1.12 $1.83 $2.17 ----- ----- ----- ----- THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
------------- ----------- For the Three For the Six Months Months
Reconciliation of Net (Loss) income to EBITDA: Ended June 30, Ended
June 30, ---------------- ---------------- Unaudited Unaudited
----------- ----------- 2009 2008 2009 2008 ---- ---- ---- ---- Net
(loss) income - available to common stockholders ($21,736) $15,725
($7,720) $108,335 Interest expense - consolidated assets 71,914
72,042 141,852 146,411 Interest expense - unconsolidated entities
(pro rata) 25,797 25,668 51,299 51,927 Depreciation and
amortization - consolidated assets 63,740 57,774 128,651 118,901
Depreciation and amortization - unconsolidated entities (pro rata)
25,908 25,755 52,409 48,034 Noncontrolling interests in OP (3,293)
2,590 (1,169) 18,665 Less: Interest expense and depreciation and
amortization Allocable to noncontrolling interests on consolidated
joint ventures (1,471) (1,191) (2,959) (1,950) Gain on early
extinguishment of debt (7,127) - (29,601) - Gain on sale or
write-down of assets - consolidated assets 25,605 (376) 24,849
(100,313) Gain on sale or write-down of assets - unconsolidated
entities (pro rata) (3) (1,604) (11) (2,923) Add: Non-controlling
interests share of gain on sale of consolidated joint ventures 310
248 310 589 Add: Non-controlling interests share of gain on sale of
unconsolidated entities - 487 - 487 Income tax expense (benefit)
(380) (689) (1,181) (388) Distributions on preferred units 171 264
415 540 Preferred dividends - 835 - 3,289 -------- --------
-------- -------- EBITDA (g) $179,435 $197,528 $357,144 $391,604
-------- -------- -------- -------- Reconciliation of EBITDA to
Same Centers - Net Operating Income ("NOI"): -------------
----------- For the Three For the Six Months Months Ended June 30,
Ended June 30, ---------------- ---------------- Unaudited
Unaudited ----------- ----------- 2009 2008 2009 2008 ---- ----
---- ---- EBITDA (g) $179,435 $197,528 $357,144 $391,604 Add: REIT
general and administrative expenses 4,648 4,135 9,906 8,538
Management Companies' revenues (9,345) (10,382) (17,885) (20,073)
Management Companies' operating expenses 18,872 20,529 42,302
38,872 Lease termination income of comparable centers (711) (2,264)
(2,268) (4,787) EBITDA of non-comparable centers (19,833) (34,681)
(41,893) (64,836) -------- -------- -------- -------- Same Centers
- NOI (h) $173,066 $174,865 $347,306 $349,318 -------- --------
-------- -------- (g) 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. (h) 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
straight-line and SFAS 141 adjustments to minimum rents.
DATASOURCE: The Macerich Company CONTACT: Arthur Coppola, Chairman
and Chief Executive Officer, or Thomas E. O'Hern, Senior Executive
Vice President and Chief Financial Officer, both of The Macerich
Company, +1-310-394-6000 Web Site: http://www.macerich.com/
Copyright