SANTA MONICA, Calif.,
Oct. 31, 2018 /PRNewswire/
-- The Macerich Company (NYSE Symbol: MAC) today announced
results of operations for the quarter ended September 30, 2018, which included net income
attributable to the Company of $74.0
million or $.52 per
share-diluted for the quarter ended September 30, 2018 compared to net income
attributable to the Company for the quarter ended September 30, 2017 of $17.5 million or $.12 per share-diluted. For the third quarter
2018, funds from operations ("FFO") diluted was $149.6 million or $.99 per share-diluted compared to $145.0 million or $.96 per share-diluted for the quarter ended
September 30, 2017. 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 7.3% to $707 for the
year ended September 30, 2018
compared to $659 for the year ended
September 30, 2017.
- The re-leasing spreads for the year ended September 30, 2018 were up 10.8%.
- Mall portfolio occupancy was 95.1% at September 30, 2018 compared to 94.3% at
September 30, 2017.
- Average rent per square foot increased to $59.09, up 3.9% from $56.88 at September 30,
2017.
- Same center net operating income grew by 3.7% compared to the
quarter ended September 30,
2017.
- The Company announced a 50/50 joint venture to create the Los
Angeles Premium Outlets, a state-of-the-art outlet center.
"It was a good quarter with significant occupancy gains, strong
tenant sales increases and improving same center earnings growth,"
said the Company's chief financial officer, Thomas O'Hern. "The leasing environment
continues to improve with good leasing volume driven by increasing
retailer demand for great real estate locations from both legacy
retailers as well as entertainment uses, restaurants, digitally
native brands and emerging brands."
Redevelopment:
The $100
million redevelopment at Kings Plaza in Brooklyn, New York opened during the third
quarter. 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. Primark and Burlington opened in July, followed by
JCPenney and Zara in August. Combined, these retailers are expected
to 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 Veneta, the luxury
upgrades also include the creation of an all-new entrance near
Neiman Marcus. Apple opened a flagship store within the
former Barney's location along Scottsdale Road and Industrious, a
leading co-working concept, will take the balance of that
space. In addition, there will be new restaurants including
Nobu and Ocean 44 and a high end fitness center in a 80,000 square
foot expansion that will elevate and enhance the shopper experience
at this already iconic shopping destination. 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 Fashion District Philadelphia, a
four-level retail hub spanning over 800,000 square feet across
three city blocks in the heart of downtown Philadelphia. Estimated project costs are
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
85% of the leasable area. Noteworthy commitments include Century
21, Burlington, H&M, Polo
Ralph Lauren, Forever 21, Columbia Sportswear, AMC Theaters, City
Winery and Ulta. The grand opening is planned for September 2019.
In September, 2018, the company announced a 50/50 joint venture
with Simon (NYSE:SPG), to create Los Angeles Premium Outlets, a
state-of-the-art Premium Outlet center. Macerich and Simon will
co-develop and jointly lease LA's newest outlet, designed to open
with 400,000 square feet, followed by an additional 166,000 square
feet in its second phase. Site work to be performed by the
Carson Reclamation Authority for the uniquely situated, elevated,
shopping destination with parking below has begun, with an opening
of the first phase of the Center planned for fall 2021
2018 Earnings Guidance:
The Company is narrowing the
range of its previously issued earnings guidance to reflect its
current expectation of results for the remainder of 2018. A
reconciliation of estimated EPS to FFO per share-diluted
follows:
|
2018
range
|
Diluted
EPS
|
$
.64-
|
$
.69
|
Plus: real estate
depreciation and amortization
|
3.08 -
|
3.08
|
Less: financing
expense due to accounting rule change ASC606
|
.03 -
|
.03
|
FFO per
share-diluted
|
3.69 -
|
3.74
|
Plus: costs related
to shareholder activism
|
.13 -
|
.13
|
FFO per share-diluted
excluding costs related to shareholder activism
|
$ 3.82 -
|
$3.87
|
The change results primarily from the reduction in the same
center net operating income growth assumption for the year to a
range of 1.2% to 1.7%, which assumes a fourth quarter range of
3.0-3.5%. 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 November 1, 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 Nine
Months
|
|
Ended September
30,
|
Ended September
30,
|
|
Unaudited
|
Unaudited
|
|
2018
|
2017
|
2018
|
2017
|
Revenues:
|
|
|
|
|
Minimum
rents
|
$146,256
|
$144,991
|
$431,546
|
$443,439
|
Percentage
rents
|
3,325
|
2,806
|
6,724
|
6,784
|
Tenant
recoveries
|
68,045
|
72,897
|
202,899
|
214,257
|
Other
income
|
13,520
|
11,701
|
40,218
|
40,484
|
Management Companies'
revenues
|
11,052
|
10,056
|
32,090
|
31,955
|
|
|
|
|
|
Total revenues
|
242,198
|
242,451
|
713,477
|
736,919
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Shopping center and
operating expenses
|
72,101
|
75,598
|
214,683
|
222,527
|
Management Companies'
operating expenses
|
21,526
|
22,046
|
80,815
|
76,779
|
REIT general and
administrative expenses
|
5,439
|
5,287
|
18,414
|
21,208
|
Costs related to
shareholder activism
|
-
|
-
|
19,369
|
-
|
Depreciation and
amortization
|
81,803
|
83,147
|
240,608
|
249,463
|
Interest expense
(a)
|
44,927
|
43,265
|
136,477
|
126,887
|
|
|
|
|
|
Total expenses
|
225,796
|
229,343
|
710,366
|
696,864
|
|
|
|
|
|
Equity in income of
unconsolidated joint ventures
|
18,789
|
23,993
|
51,330
|
56,772
|
Co-venture expense
(a)
|
-
|
(3,150)
|
-
|
(11,150)
|
Income tax (expense)
benefit
|
(466)
|
(2,869)
|
1,799
|
178
|
Gain (loss) on sale
or write down of assets, net
|
46,516
|
(11,854)
|
(514)
|
37,234
|
|
|
|
|
|
Net income
|
81,241
|
19,228
|
55,726
|
123,089
|
Less net income
attributable to noncontrolling interests
|
7,213
|
1,730
|
7,455
|
9,710
|
Net income attributable to
the Company
|
$74,028
|
$17,498
|
$48,271
|
$113,379
|
|
|
|
|
|
Weighted average
number of shares outstanding - basic
|
141,196
|
141,299
|
141,120
|
142,188
|
Weighted average
shares outstanding, assuming full conversion of OP Units
(b)
|
151,574
|
151,624
|
151,476
|
152,668
|
Weighted average
shares outstanding - Funds From Operations ("FFO") - diluted
(b)
|
151,574
|
151,635
|
151,481
|
152,703
|
|
|
|
|
|
Earnings per share
("EPS") - basic
|
$0.52
|
$0.12
|
$0.34
|
$0.79
|
EPS -
diluted
|
$0.52
|
$0.12
|
$0.34
|
$0.79
|
|
|
|
|
|
Dividend declared per
share
|
$0.74
|
$0.71
|
$2.22
|
$2.13
|
|
|
|
|
|
FFO - basic (b)
(c)
|
$149,578
|
$145,047
|
$398,779
|
$427,284
|
FFO - diluted (b)
(c)
|
$149,578
|
$145,047
|
$398,779
|
$427,284
|
FFO - diluted,
excluding costs related to shareholder activism (b) (c)
|
$149,578
|
$145,047
|
$418,148
|
$427,284
|
|
|
|
|
|
FFO per share -
basic (b) (c)
|
$0.99
|
$0.96
|
$2.63
|
$2.80
|
FFO per share -
diluted (b) (c)
|
$0.99
|
$0.96
|
$2.63
|
$2.80
|
FFO per share,
excluding costs related to shareholder activism - diluted (b)
(c)
|
$0.99
|
$0.96
|
$2.76
|
$2.80
|
|
|
|
|
|
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 $4,893 and $9,279 to adjust for
the reduction of the fair
value of the financing arrangement obligation during the three and
nine months ended September 30, 2018, respectively,
(ii) distributions of $2,111 and $6,577
to its partner representing the partner's share of net income for
the three and nine months ended September
30, 2018, respectively, and
(iii) distributions of $1,754 and $4,803 to its partner in excess
of the partner's share of net income for the three and nine
months ended September 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 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 Nine
Months
|
Ended
September 30,
|
Ended
September 30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2018
|
2017
|
2018
|
2017
|
Net income
attributable to the Company
|
|
$74,028
|
$17,498
|
$48,271
|
$113,379
|
Adjustments to
reconcile net income attributable to the Company to FFO
attributable to common stockholders and unit holders - basic and
diluted:
|
|
|
|
|
|
Noncontrolling interests in the OP
|
|
5,432
|
1,256
|
3,544
|
8,351
|
(Gain)
loss on sale or write down of consolidated assets, net
|
|
(46,516)
|
11,854
|
514
|
(37,234)
|
Add:
gain on undepreciated asset sales from consolidated
assets
|
|
2,060
|
727
|
3,415
|
727
|
Loss on
write-down of consolidated non-real estate assets
|
|
-
|
-
|
-
|
(10,138)
|
Noncontrolling interests share of gain on sale or write-down of
consolidated joint
ventures
|
|
-
|
-
|
580
|
-
|
Gain on
sale or write down of assets from unconsolidated joint ventures
(pro rata), net
|
(2,968)
|
(6,712)
|
(3,014)
|
(8,981)
|
Add:
gain on sales or write down of undepreciated assets from
unconsolidated joint ventures (pro
rata), net
|
2,151
|
-
|
373
|
660
|
Depreciation and amortization on consolidated
assets
|
|
81,803
|
83,147
|
240,608
|
249,463
|
Less
depreciation and amortization allocable to noncontrolling
interests in consolidated joint
ventures
|
|
(3,670)
|
(3,717)
|
(10,946)
|
(11,325)
|
Depreciation and amortization on unconsolidated joint ventures (pro
rata)
|
|
43,850
|
44,493
|
130,030
|
132,708
|
Less:
depreciation on personal property
|
|
(3,453)
|
(3,499)
|
(10,120)
|
(10,326)
|
Financing expense in connection with the adoption of ASC 606
(Chandler Freehold)
|
(3,139)
|
-
|
(4,476)
|
-
|
|
|
|
|
|
|
FFO attributable to
common stockholders and unit holders - basic and diluted
|
|
149,578
|
145,047
|
398,779
|
427,284
|
|
|
|
|
|
|
Costs related to
shareholder activism
|
|
-
|
-
|
19,369
|
-
|
|
|
|
|
|
|
FFO attributable to
common stockholders and unit holders, excluding costs related to
shareholder activism
|
$149,578
|
$145,047
|
$418,148
|
$427,284
|
|
|
|
|
|
|
|
Reconciliation of
EPS to FFO per share - diluted, excluding costs related
to shareholder activism
(c):
|
|
|
|
|
|
|
For the
Three Months
|
For the Nine
Months
|
|
|
Ended
September 30,
|
Ended
September 30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2018
|
2017
|
2018
|
2017
|
EPS -
diluted
|
|
$0.52
|
$0.12
|
$0.34
|
$0.79
|
Per
share impact of depreciation and amortization of real
estate
|
|
0.79
|
0.80
|
2.31
|
2.37
|
Per
share impact of (gain) loss on sale or write down of assets,
net
|
|
(0.30)
|
0.04
|
0.01
|
(0.36)
|
Per
share impact of financing expense in connection with the adoption
of ASC 606 (Chandler
Freehold)
|
|
(0.02)
|
-
|
(0.03)
|
-
|
FFO per share -
diluted
|
|
$0.99
|
$0.96
|
$2.63
|
$2.80
|
Per
share impact of costs related to shareholder activism
|
|
-
|
-
|
0.13
|
-
|
FFO per share -
diluted, excluding costs related to shareholder activism
|
|
$0.99
|
$0.96
|
$2.76
|
$2.80
|
|
|
|
|
|
|
THE MACERICH
COMPANY
|
FINANCIAL
HIGHLIGHTS
|
(IN THOUSANDS,
EXCEPT PER SHARE AMOUNTS)
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net income attributable to the Company to Adjusted
EBITDA:
|
|
|
|
|
|
|
|
For the
Three Months
|
For the Nine
Months
|
|
|
Ended
September 30,
|
Ended
September 30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2018
|
2017
|
2018
|
2017
|
|
|
|
|
|
|
Net income
attributable to the Company
|
|
$74,028
|
$17,498
|
$48,271
|
$113,379
|
Interest
expense - consolidated assets
|
|
44,927
|
43,265
|
136,477
|
126,887
|
Interest
expense - unconsolidated joint ventures (pro rata)
|
|
27,897
|
25,477
|
81,557
|
76,235
|
Depreciation and amortization - consolidated assets
|
|
81,803
|
83,147
|
240,608
|
249,463
|
Depreciation and amortization - unconsolidated joint ventures (pro
rata)
|
|
43,850
|
44,493
|
130,030
|
132,708
|
Noncontrolling interests in the OP
|
|
5,432
|
1,256
|
3,544
|
8,351
|
Less:
Interest expense and depreciation and amortization
allocable to noncontrolling interests in
consolidated joint ventures
|
|
(8,915)
|
(6,006)
|
(26,928)
|
(18,215)
|
(Gain)
loss on sale or write down of assets, net - consolidated
assets
|
|
(46,516)
|
11,854
|
514
|
(37,234)
|
Gain on
sale or write down of assets, net - unconsolidated joint ventures
(pro rata)
|
|
(2,968)
|
(6,712)
|
(3,014)
|
(8,981)
|
Add:
Noncontrolling interests share of gain on sale or write down of
consolidated joint ventures,
net
|
|
-
|
-
|
580
|
-
|
Income
tax expense (benefit)
|
|
466
|
2,869
|
(1,799)
|
(178)
|
Distributions on preferred units
|
|
99
|
95
|
298
|
289
|
Adjusted EBITDA
(d)
|
|
$220,103
|
$217,236
|
$610,138
|
$642,704
|
|
|
|
|
|
|
|
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
|
|
|
2018
|
2017
|
2018
|
2017
|
Adjusted EBITDA
(d)
|
|
$220,103
|
$217,236
|
$610,138
|
$642,704
|
REIT
general and administrative expenses
|
|
5,439
|
5,287
|
18,414
|
21,208
|
Costs
related to shareholder activism
|
|
-
|
-
|
19,369
|
-
|
Management Companies' revenues
|
|
(11,052)
|
(10,056)
|
(32,090)
|
(31,955)
|
Management Companies' operating expenses
|
|
21,526
|
22,046
|
80,815
|
76,779
|
Straight-line and above/below market adjustments
|
|
(8,391)
|
(8,811)
|
(25,231)
|
(24,986)
|
NOI - All
Centers
|
|
227,625
|
225,702
|
671,415
|
683,750
|
NOI of
non-Same Centers
|
|
(8,084)
|
(13,995)
|
(21,553)
|
(38,298)
|
NOI - Same Centers
(e)
|
|
219,541
|
211,707
|
649,862
|
645,452
|
Lease
termination income of Same Centers
|
|
(4,608)
|
(3,149)
|
(9,881)
|
(14,866)
|
NOI - Same Centers,
excluding lease termination income (e)
|
|
$ 214,933
|
$ 208,558
|
$ 639,981
|
$
630,586
|
|
|
|
|
|
|
|
|
(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, the Company'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