SANTA MONICA, Calif.,
Aug. 1, 2018 /PRNewswire/ -- The
Macerich Company (NYSE Symbol: MAC) today announced results of
operations for the quarter ended June 30,
2018, which included net income attributable to the Company
of $7.8 million or $.05 per share-diluted for the quarter ended
June 30, 2018 compared to net income
attributable to the Company for the quarter ended June 30, 2017 of $26.6
million or $.19 per
share-diluted. For the second quarter, 2018, funds from operations
("FFO") diluted was $125.7 million or
$.83 per share-diluted compared to
$148.6 million or $.98 per share-diluted for the quarter ended
June 30, 2017. Excluding
$.13 per share for costs related to
activism, FFO per share for the quarter ended June 30, 2018 was $.96. A description and reconciliation of
EPS per share-diluted to FFO per share-diluted is included in the
financial tables accompanying this press release.
Results and Highlights
- Mall tenant annual sales per square foot for the portfolio
increased by 7.1% to $692 for the
year ended June 30, 2018 compared to
$646 for the year ended June 30, 2017.
- The re-leasing spreads for the year ended June 30, 2018 were up 12.3%.
- Mall portfolio occupancy was 94.3% at June 30, 2018 compared to 94.0% at March 31, 2018 and 94.4% at June 30, 2017.
- Average rent per square foot increased to $58.84, up 4.0% from $56.60 at June 30,
2017.
"During the quarter our portfolio continued to perform
well. We achieved good re-leasing spreads strong tenant sales
growth and quarter over quarter occupancy gains," said the
Company's chief executive officer, Arthur
Coppola. "The leasing environment continues to improve
including a significant number of deals with legacy retailers as
well as with digitally native retailers. We continue to be
encouraged by digitally native retailers' growing demand for great
real estate locations."
Non-Core Asset Sales:
The Company continued its
strategy of selling non-core assets and recycling the capital into
its higher quality assets. The Company and its joint venture
partners recently sold two power centers -Casa Grande Center
(May 17, 2018) and The Market at
Estrella Falls (July 6, 2018).
Both assets are in the suburban Phoenix market. The company's share of
the net proceeds totaled $35
million.
Redevelopment:
Construction is complete on the
$100 million redevelopment of our
well-situated Kings Plaza in Brooklyn,
New York. A redevelopment of the former Sears box, the
project was designed to significantly improve the merchandise mix
and shopper experience, and transform the presence of Kings Plaza
from Flatbush Avenue. The redevelopment delivered openings in July
of Brooklyn's first Primark store,
a new Burlington, and a new
JCPenney, with Zara slated to open August
23. Combined, these retailers are expected do over
$110 million in annual sales.
Scottsdale Fashion Square currently is undergoing a
multi-dimensional redevelopment. Along with adding
Arizona's first Saint Laurent as
well as new locations for Louis
Vuitton, St. John, Gucci, and Bottega Venetta, the luxury
upgrades also include the creation of an all-new entrance near
Neiman Marcus and the addition of new restaurants and high end
fitness in a 70,000 square foot expansion that will elevate and
enhance the shopper experience at this already iconic shopping
destination. Other important elements include two new tenants
within the former Barney's space along Scottsdale Road, a cutting
edge, technology flagship retailer and an industry leading
co-working concept. The project will be completed in 2019.
Project costs are expected to be in the range of $140 to $160
million (or $70 to
$80 million at the Company's pro rata
share).
Redevelopment continues on The Fashion District of Philadelphia, a three-level retail hub
spanning over 800,000 square footage across three city blocks in
the heart of downtown Philadelphia. The scope of the project has
increased with the addition of numerous entertainment and dining
elements. Estimated project costs are now expected to be in
the range of $400 - $420 million (or $200 to $210
million at the Company's pro rata share). We have signed
leases or are in active lease negotiations with tenants for over
80% of the leasable area. Noteworthy commitments include Century
21, Burlington, H&M, Polo
Ralph Lauren, Forever 21, Columbia Sportswear, AMC Theaters, City
Winery and Dallas BBQ. The grand opening is planned for
September 2019.
2018 Earnings Guidance:
The Company is modifying its
previously issued earnings guidance to reflect the dilution from
asset sales in 2018 that were not reflected in the original
guidance and for our current estimate of lease termination revenue
for the remainder of 2018. A reconciliation of estimated EPS
to FFO per share-diluted follows:
|
2018 range
|
Diluted EPS
|
$ .24
- .34
|
Plus: real estate
depreciation and
amortization
|
3.15 -
3.15
|
Plus: loss on sale or
write-down of depreciable assets
|
.31
- .31
|
Less: financing
expense due to accounting rule change ASC606
|
.01
- .01
|
FFO per share-diluted
|
3.69 -
3.79
|
Plus: costs related
to shareholder
activism
|
.13
- .13
|
FFO per share-diluted
excluding costs related to shareholder
activism
|
$ 3.82 -
$3.92
|
As a result of a stronger leasing environment and good tenant
sales growth there has been less demand than forecast from
retailers to terminate leases early. Accordingly our guidance
for lease termination revenue is being reduced from $22 million to $15
million for 2018. That also results in the same center
net operating income growth assumption changing to a range of 1.5%
to 2.0%. In addition, $.05 per
share of the reduced guidance relates to dilution from the sale of
assets during 2018, which were not in the original guidance. More
details of the guidance assumptions are included in the Company's
Form 8-K supplemental financial information.
Macerich, an S&P 500 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.
Macerich currently owns 52 million square feet of real estate
consisting primarily of interests in 48 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 Pacific
Rim, Arizona, Chicago, and the New
York Metro area to Washington
DC corridor. A recognized leader in sustainability, Macerich
has earned NAREIT's prestigious "Leader in the Light" award every
year from 2014-2017. For the third straight year in 2017 Macerich
achieved the #1 GRESB ranking in the North American Retail Sector,
among many other environmental accomplishments. 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 August 2, 2018 at 11:00 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, 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 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,
2017, 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 Six
Months
|
|
Ended June
30,
|
Ended June
30,
|
|
Unaudited
|
Unaudited
|
|
2018
|
2017
|
2018
|
2017
|
Revenues:
|
|
|
|
|
Minimum
rents
|
$142,883
|
$152,893
|
$285,290
|
$298,448
|
Percentage
rents
|
1,515
|
2,060
|
3,399
|
3,978
|
Tenant
recoveries
|
66,762
|
68,948
|
134,854
|
141,360
|
Other
income
|
12,889
|
13,519
|
26,698
|
28,783
|
Management Companies'
revenues
|
10,496
|
10,003
|
21,038
|
21,899
|
|
|
|
|
|
Total revenues
|
234,545
|
247,423
|
471,279
|
494,468
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Shopping center and
operating expenses
|
68,072
|
71,032
|
142,582
|
146,929
|
Management Companies'
operating expenses
|
20,966
|
26,216
|
59,289
|
54,733
|
REIT general and
administrative expenses
|
4,956
|
7,458
|
12,975
|
15,921
|
Costs related to
shareholder activism
|
19,369
|
-
|
19,369
|
-
|
Depreciation and
amortization
|
78,868
|
83,243
|
158,805
|
166,316
|
Interest expense
(a)
|
38,915
|
42,321
|
91,550
|
83,622
|
|
|
|
|
|
Total expenses
|
231,146
|
230,270
|
484,570
|
467,521
|
|
|
|
|
|
Equity in income of
unconsolidated joint ventures
|
15,669
|
16,936
|
32,541
|
32,779
|
Co-venture expense
(a)
|
-
|
(4,123)
|
-
|
(8,000)
|
Income tax (expense)
benefit
|
(684)
|
(437)
|
2,265
|
3,047
|
(Loss) gain on sale
or write down of assets, net
|
(9,518)
|
(477)
|
(47,030)
|
49,088
|
|
|
|
|
|
Net income (loss)
|
8,866
|
29,052
|
(25,515)
|
103,861
|
Less net income
attributable to noncontrolling interests
|
1,050
|
2,414
|
242
|
7,980
|
Net income (loss)
attributable to the Company
|
$7,816
|
$26,638
|
($25,757)
|
$95,881
|
|
|
|
|
|
Weighted average
number of shares outstanding - basic
|
141,137
|
141,695
|
141,081
|
142,640
|
Weighted average
shares outstanding, assuming full conversion of OP Units
(b)
|
151,535
|
152,221
|
151,426
|
153,199
|
Weighted average
shares outstanding - Funds From Operations ("FFO") - diluted
(b)
|
151,535
|
152,254
|
151,434
|
153,246
|
|
|
|
|
|
Earnings per share
("EPS") - basic
|
$0.05
|
$0.19
|
($0.19)
|
$0.67
|
EPS -
diluted
|
$0.05
|
$0.19
|
($0.19)
|
$0.67
|
|
|
|
|
|
Dividend declared per
share
|
$0.74
|
$0.71
|
$1.48
|
$1.42
|
|
|
|
|
|
FFO - basic (b)
(c)
|
$125,688
|
$148,634
|
$249,201
|
$282,237
|
FFO - diluted (b)
(c)
|
$125,688
|
$148,634
|
$249,201
|
$282,237
|
FFO - diluted,
excluding costs related to shareholder activism (b) (c)
|
$145,057
|
$148,634
|
$268,570
|
$282,237
|
|
|
|
|
|
FFO per share -
basic (b) (c)
|
$0.83
|
$0.98
|
$1.65
|
$1.84
|
FFO per share -
diluted (b) (c)
|
$0.83
|
$0.98
|
$1.65
|
$1.84
|
FFO per share,
excluding costs related to shareholder activism - diluted (b)
(c)
|
$0.96
|
$0.98
|
$1.77
|
$1.84
|
|
|
|
|
|
THE MACERICH
COMPANY
|
FINANCIAL
HIGHLIGHTS
|
(IN THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
On January 1, 2018,
in accordance with the adoption of ASC Topic 606, Revenue from
Contracts with Customers ("ASC 606"), the Company changed
its accounting for its
investment in the Chandler Fashion Center and Freehold Raceway Mall
("Chandler Freehold") joint venture from a co-venture
arrangement to a financing arrangement.
As a result, the Company has included in interest expense (i) a
credit of $8,768 and $4,386 to adjust for the reduction of the fair value of the financing
arrangement obligation during the three and six months ended June
30, 2018, respectively (ii) distributions
of $2,464 and $4,466 to its
partner representing the partner's share of net income for the
three and six months ended June 30, 2018, respectively and
(iii) distributions of $1,411 and
$3,049 to its partner in excess of the partner's share of net
income for the three and six months ended June 30,
2018, 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 extraordinary items and sales of depreciated operating
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. As a result of changes in accounting standards
effective January 1, 2018 (ASC
606), the Company began treating its joint venture in Chandler
Freehold as a financing arrangement for accounting purposes.
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 from its definition of FFO 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. Although
the NAREIT definition of FFO
predates this guidance for accounting for financing arrangements,
the Company believes that excluding the noted expenses
resulting from the financing
arrangement is consistent with the key objective of FFO as a
performance measure and it allows the Company's current FFO
to be comparable with the Company's FFO
from prior quarters. Adjustments for unconsolidated joint ventures
are calculated to reflect FFO on the same basis. The Company also presents FFO excluding costs
related to shareholder activism.
|
|
|
|
|
|
|
|
|
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 non-routine costs
related to shareholder activism provides useful supplemental
information regarding the Company's performance as it shows 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 income (loss) attributable to the Company to FFO attributable
to common stockholders and
unit holders - basic and diluted, excluding costs related to
shareholder activism
(c):
|
|
|
|
|
|
|
For the
Three Months
|
For the Six
Months
|
|
Ended June
30,
|
Ended June
30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2018
|
2017
|
2018
|
2017
|
Net income (loss)
attributable to the Company
|
|
$7,816
|
$26,638
|
($25,757)
|
$95,881
|
Adjustments to
reconcile net income (loss) attributable to the Company to FFO
attributable to common stockholders and unit holders - basic and
diluted:
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling interests in the OP
|
|
562
|
1,987
|
(1,888)
|
7,095
|
Loss
(gain) on sale or write down of consolidated assets, net
|
|
9,518
|
477
|
47,030
|
(49,088)
|
Add:
gain on undepreciated asset sales from consolidated
assets
|
|
548
|
-
|
1,355
|
-
|
Loss on
write-down of consolidated non-real estate assets
|
|
-
|
-
|
-
|
(10,138)
|
Noncontrolling interests share of (loss) gain on sale or write-down
of consolidated joint
ventures
|
|
|
|
|
|
|
(10)
|
-
|
580
|
-
|
Gain on
sale or write down of assets from unconsolidated joint ventures
(pro rata), net
|
|
(203)
|
-
|
(46)
|
(2,269)
|
Add:
gain (loss) on sales or write down of undepreciated assets from
unconsolidated joint ventures (pro
rata), net
|
|
|
|
|
|
|
307
|
-
|
(1,778)
|
660
|
Depreciation and amortization on consolidated
assets
|
|
78,868
|
83,243
|
158,805
|
166,316
|
Less
depreciation and amortization allocable to noncontrolling
interests in consolidated joint
ventures
|
|
|
|
|
|
|
(3,635)
|
(3,715)
|
(7,276)
|
(7,608)
|
Depreciation and amortization on unconsolidated joint ventures (pro
rata)
|
|
42,596
|
43,450
|
86,180
|
88,215
|
Less:
depreciation on personal property
|
|
(3,322)
|
(3,446)
|
(6,667)
|
(6,827)
|
Financing expense in connection with the adoption of ASC 606
(Chandler Freehold)
|
|
(7,357)
|
-
|
(1,337)
|
-
|
|
|
|
|
|
|
FFO attributable to
common stockholders and unit holders - basic and diluted
|
|
125,688
|
148,634
|
249,201
|
282,237
|
|
|
|
|
|
|
Costs related to
shareholder activism
|
|
19,369
|
-
|
19,369
|
-
|
|
|
|
|
|
|
FFO attributable to
common stockholders and unit holders, excluding costs related to
shareholder activism
|
|
$145,057
|
$148,634
|
$268,570
|
$282,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EPS to FFO per diluted share (c):
|
|
|
|
|
|
|
|
For the
Three Months
|
For the Six
Months
|
|
|
Ended June
30,
|
Ended June
30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2018
|
2017
|
2018
|
2017
|
EPS -
diluted
|
|
$0.05
|
$0.19
|
($0.19)
|
$0.67
|
Per
share impact of depreciation and amortization of real
estate
|
|
0.76
|
0.79
|
1.53
|
1.57
|
Per
share impact of loss (gain) on sale or write down of assets,
net
|
|
0.07
|
0.00
|
0.31
|
(0.40)
|
Per
share impact of financing expense in connection with the adoption
of ASC 606
|
|
|
|
|
|
(Chandler
Freehold)
|
|
(0.05)
|
-
|
(0.01)
|
-
|
FFO per share -
diluted
|
|
$0.83
|
$0.98
|
$1.64
|
$1.84
|
Per
share impact of costs related to shareholder activism
|
|
0.13
|
0.00
|
0.13
|
0.00
|
FFO per share -
diluted, excluding costs related to shareholder activism
|
|
$0.96
|
$0.98
|
$1.77
|
$1.84
|
|
|
|
|
|
|
THE MACERICH
COMPANY
|
FINANCIAL
HIGHLIGHTS
|
(IN THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net income (loss) attributable to the Company to Adjusted
EBITDA:
|
|
|
|
|
|
|
|
For the
Three Months
|
For the Six
Months
|
|
|
Ended June
30,
|
Ended June
30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2018
|
2017
|
2018
|
2017
|
|
|
|
|
|
|
Net income (loss)
attributable to the Company
|
|
$7,816
|
$26,638
|
($25,757)
|
$95,881
|
Interest
expense - consolidated assets
|
|
38,915
|
42,321
|
91,550
|
83,622
|
Interest
expense - unconsolidated joint ventures (pro rata)
|
|
28,227
|
25,452
|
53,660
|
50,758
|
Depreciation and amortization - consolidated assets
|
|
78,868
|
83,243
|
158,805
|
166,316
|
Depreciation and amortization - unconsolidated joint ventures (pro
rata)
|
|
42,596
|
43,450
|
86,180
|
88,215
|
Noncontrolling interests in the OP
|
|
562
|
1,987
|
(1,888)
|
7,095
|
Less:
Interest expense and depreciation and amortization
allocable to noncontrolling interests in
consolidated joint ventures
|
|
|
|
|
|
|
(9,232)
|
(5,997)
|
(18,013)
|
(12,209)
|
Loss
(gain) on sale or write down of assets, net - consolidated
assets
|
|
9,518
|
477
|
47,030
|
(49,088)
|
Gain on
sale or write down of assets, net - unconsolidated joint ventures
(pro rata)
|
|
(203)
|
-
|
(46)
|
(2,269)
|
Add:
Noncontrolling interests share of (loss) gain on sale or write down
of consolidated joint ventures,
net
|
|
|
|
|
|
(10)
|
-
|
580
|
-
|
Income
tax expense (benefit)
|
|
684
|
437
|
(2,265)
|
(3,047)
|
Distributions on preferred units
|
|
100
|
98
|
199
|
194
|
Adjusted EBITDA
(d)
|
|
$197,841
|
$218,106
|
$390,035
|
$425,468
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Adjusted EBITDA to Net Operating Income ("NOI") and to NOI - Same
Centers:
|
|
|
|
|
|
|
|
For the
Three Months
|
For the Six
Months
|
|
|
Ended June
30,
|
Ended June
30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2018
|
2017
|
2018
|
2017
|
Adjusted EBITDA
(d)
|
|
$197,841
|
$218,106
|
$390,035
|
$425,468
|
REIT
general and administrative expenses
|
|
4,956
|
7,458
|
12,975
|
15,921
|
Costs
related to shareholder activism
|
|
19,369
|
-
|
19,369
|
-
|
Management Companies' revenues
|
|
(10,496)
|
(10,003)
|
(21,038)
|
(21,899)
|
Management Companies' operating expenses
|
|
20,966
|
26,216
|
59,289
|
54,733
|
Straight-line and above/below market adjustments
|
|
(8,668)
|
(8,756)
|
(16,840)
|
(16,175)
|
NOI - All
Centers
|
|
223,968
|
233,021
|
443,790
|
458,048
|
NOI of
non-Same Centers
|
|
(6,186)
|
(11,657)
|
(13,469)
|
(24,303)
|
NOI - Same Centers
(e)
|
|
217,782
|
221,364
|
430,321
|
433,745
|
Lease
termination income of Same Centers
|
|
(2,394)
|
(9,046)
|
(5,273)
|
(11,717)
|
NOI - Same Centers,
excluding lease termination income (e)
|
|
$
215,388
|
$
212,318
|
$
425,048
|
$
422,028
|
|
|
|
|
|
|
|
(d)
|
Adjusted EBITDA
represents earnings before interest, income taxes, depreciation,
amortization, noncontrolling interests in the OP, extraordinary
items, loss (gain) onremeasurement, sale or write down of assets,
loss (gain) on extinguishment of debt and preferred dividends and
includes joint ventures at their pro ratashare. 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 alternativeto operating income as an indicator
of the Company's operating performance, or to cash flows from
operating activities (as determined in accordancewith GAAP) or as a
measure of liquidity. The Company also cautions that Adjusted
EBITDA, as presented, may not be comparable to similarly titled
measurementsreported 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, theCompany's 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