SANTA MONICA, Calif., Aug.
11, 2020 /PRNewswire/ -- The Macerich Company (NYSE: MAC)
today announced results of operations for the quarter ended
June 30, 2020, which included net
loss attributable to the Company of $25.1
million or $0.18 per
share-diluted for the quarter ended June 30,
2020 compared to net income of $15.7 million or $0.11 per share-diluted attributable to the
Company for the quarter ended June 30,
2019. For the second quarter 2020, funds from operations
("FFO")-diluted, excluding financing expense in connection with
Chandler Freehold and loss on extinguishment of debt was
$60.5 million or $0.39 per share-diluted compared to $133.6 million or $0.88 per share-diluted for the quarter ended
June 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:
- The majority of the properties in the portfolio have resumed
operations, with the exception of two malls in New York City and nine indoor malls in
California that were recently
closed for a second time pursuant to a statewide mandate.
- Mall portfolio occupancy, including closed centers, was 91.3%
at June 30, 2020, compared to 94.1%
at June 30, 2019.
- Mall tenant annual sales per square foot for the portfolio
decreased to $774 for the twelve
months ended June 30, 2020, compared
to $776 for the twelve months ended
June 30, 2019. This sales metric
excludes the period of COVID-19 closure for each tenant.
- Average rent per square foot increased 2.1% to $62.48 at June 30,
2020, compared to $61.17 at
June 30, 2019.
"We continued to make progress re-opening our properties and
partnering with our tenants to prioritize the health and safety of
employees, tenants, service providers and shoppers. Communities are
responding positively to the return of our centers, with pent-up
demand for the in-store retail experience driving steady traffic
and increased customer conversion rates that are exceeding
expectations," said the Company's Chief Executive Officer,
Thomas O'Hern. "As we look ahead, we
are encouraged by the pipeline of new store openings for the
remainder of 2020 and into 2021 and believe retailers will continue
to prioritize store operations in highly productive town centers,
positioning Macerich for success. We are confident that the
quality and scale of our portfolio, along with our financial
resources, will provide us the flexibility to successfully navigate
the current environment."
COVID-19 Update:
The majority of the Company's properties are now open, the
exceptions being Queens Center and Kings Plaza in New York City, which have been closed since
March 2020, and nine indoor
California malls that had
previously opened in May and early June, but were closed for a
second time in July pursuant to a statewide mandate. Those nine
California malls include Fresno
Fashion Fair, Inland Center, Lakewood Center, Los Cerritos Center,
Stonewood Mall, The Mall at Victor
Valley, The Oaks, Pacific View and Vintage Faire Mall. The
duration of the nine recent California center closures is yet
undetermined.
The Company is making meaningful progress in its negotiations
with national and local tenants to secure rental payments. As a
result of this progress, cash receipts continue to improve with
approximately 58% and 66% of billings collected in June and July,
respectively.
Store Openings:
Despite the unprecedented disruption from COVID-19, plans for
new retail stores and other openings continue with leases for over
90 new locations in nearly 570,000 square feet targeted for the
second half of 2020, including the following: Restoration Hardware
Gallery at Village of Corte
Madera; Round One and Dicks Sporting Goods in a portion of
the former Sears building at Deptford Mall; Ardene, DSW and
Industrious at Fashion District of Philadelphia; Tesla in a two level flagship
store at Santa Monica Place; Gucci in a relocated and expanded
store at Fashion Outlets of Chicago; Tory
Burch and Adidas at Fashion Outlets of Niagara; X Lanes Bowling at Fresno Fashion
Fair; lululemon athletica at Twenty Ninth Street; Capital One Café,
Bulgari and Francine's at Scottsdale Fashion Square; and West Elm
and Madewell at La Encantada. In total, the Company has entered
into numerous leases for new stores and concepts totaling nearly
1.3 million square feet, for planned openings in primarily 2020 and
2021.
Redevelopment:
While the Company has reduced its planned 2020 development
expenditures by approximately $90
million, work continues on select 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. Redevelopment of
the former Sears store at Deptford Mall in Deptford, NJ is on schedule, with expected
openings of Round One and Dicks Sporting Goods this fall. This will
be an exciting addition to the property, adding to an ever-growing
relationship with both companies.
Dividend:
The Company's Board of Director's declared a quarterly cash
dividend of $0.15 per share of common
stock. The dividend is payable on September 8, 2020 to stockholders of record at
the close of business on August 19,
2020. The Board's decision to reduce the dividend allows the
Company to preserve liquidity and financial flexibility given the
continued uncertain economic environment resulting from the
COVID-19 pandemic.
Guidance:
On March 27, 2020, given the
complex and rapidly evolving circumstances surrounding the COVID-19
pandemic, the Company withdrew its previously published 2020
Guidance, and is not providing an updated outlook at this time as a
result of continued uncertainties.
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 August 11, 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 Six
Months
|
|
Ended June
30,
|
Ended June
30,
|
|
Unaudited
|
Unaudited
|
|
2020
|
2019
|
2020
|
2019
|
Revenues:
|
|
|
|
|
Leasing
revenue
|
$168,754
|
$211,022
|
$379,475
|
$422,030
|
Other
income
|
3,003
|
7,831
|
12,261
|
13,165
|
Management Companies'
revenues
|
6,830
|
9,119
|
13,803
|
19,299
|
|
|
|
|
|
Total revenues
|
178,587
|
227,972
|
405,539
|
454,494
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Shopping center and
operating expenses
|
57,133
|
64,092
|
127,858
|
133,696
|
Management Companies'
operating expenses
|
16,442
|
15,692
|
32,666
|
34,706
|
Leasing
expenses
|
6,653
|
7,677
|
14,078
|
15,182
|
REIT general and
administrative expenses
|
8,242
|
4,589
|
15,063
|
11,550
|
Depreciation and
amortization
|
80,294
|
82,385
|
162,507
|
163,853
|
Interest expense
(a)
|
20,034
|
37,109
|
28,108
|
75,466
|
Loss on
extinguishment of debt
|
-
|
-
|
-
|
351
|
|
|
|
|
|
Total expenses
|
188,798
|
211,544
|
380,280
|
434,804
|
|
|
|
|
|
Equity in (loss)
income of unconsolidated joint ventures
|
(14,173)
|
7,257
|
(4,475)
|
19,500
|
Income tax benefit
(expense)
|
1,524
|
(679)
|
1,790
|
(1,025)
|
Loss on sale or write
down of assets, net
|
(3,867)
|
(9,059)
|
(40,570)
|
(15,375)
|
|
|
|
|
|
Net (loss) income
|
(26,727)
|
13,947
|
(17,996)
|
22,790
|
Less net loss
attributable to noncontrolling interests
|
(1,611)
|
(1,787)
|
(402)
|
(768)
|
Net (loss) income
attributable to the Company
|
($25,116)
|
$15,734
|
($17,594)
|
$23,558
|
|
|
|
|
|
Weighted average
number of shares outstanding - basic
|
144,102
|
141,344
|
142,769
|
141,303
|
Weighted average
shares outstanding, assuming full conversion of OP Units
(b)
|
154,606
|
151,760
|
153,260
|
151,718
|
Weighted average
shares outstanding - Funds From Operations ("FFO") - diluted
(b)
|
154,606
|
151,760
|
153,260
|
151,718
|
|
|
|
|
|
Earnings per share
("EPS") - basic
|
($0.18)
|
$0.11
|
($0.13)
|
$0.16
|
EPS -
diluted
|
($0.18)
|
$0.11
|
($0.13)
|
$0.16
|
|
|
|
|
|
Dividend paid per
share
|
$0.50
|
$0.75
|
$1.25
|
$1.50
|
|
|
|
|
|
FFO - basic and
diluted (b) (c)
|
$93,161
|
$148,866
|
$261,550
|
$283,144
|
FFO - basic and
diluted, excluding financing expense in connection with
|
|
|
|
|
Chandler Freehold (b) (c)
|
$60,535
|
$133,641
|
$183,217
|
$255,575
|
FFO - basic and
diluted, excluding financing expense in connection with
|
|
|
|
|
Chandler Freehold and loss on extinguishment of debt (b)
(c)
|
$60,535
|
$133,641
|
$183,217
|
$255,926
|
|
|
|
|
|
FFO per share - basic
and diluted (b) (c)
|
$0.60
|
$0.98
|
$1.71
|
$1.87
|
FFO per share - basic
and diluted, excluding financing expense in connection
with
|
|
|
|
|
Chandler Freehold (b)
(c)
|
$0.39
|
$0.88
|
$1.20
|
$1.68
|
FFO per share - basic
and diluted, excluding financing expense in connection
with
|
|
|
|
|
Chandler Freehold and loss
on extinguishment of debt (b) (c)
|
$0.39
|
$0.88
|
$1.20
|
$1.69
|
|
|
|
|
|
|
|
|
|
|
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 $32,907 and $81,291 to adjust for the
change in the fair value of the financing arrangement obligation
during the three and six months ended June 30, 2020, respectively;
and a credit of $17,258 and $31,522 to adjust for the change in the
fair value of the financing arrangement obligation during the three
and six months ended June 30, 2019, respectively; (ii)
distributions of ($181) and $1,283 to its partner representing the
partner's share of net (loss) income for the three and six months
ending June 30, 2020, respectively; and $1,982 and $3,879 to its
partner representing the partner's share of net income for the
three and six months ended June 30, 2019, respectively; and
(iii) distributions of $281 and $2,958 to its partner in excess of
the partner's share of net income for the three and six months
ended June 30, 2020, respectively; and $2,033 and $3,953 to
its partner in excess of the partner's share of net income for the
three and six months ended June 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.
|
|
|
|
Beginning in the
first quarter of 2018, the Company revised its definition of FFO so
that FFO excluded the impact of the financing expense in connection
with Chandler Freehold. Beginning in the third quarter of 2019, the
Company presented a separate non-GAAP measure - FFO excluding
financing expense in connection with Chandler Freehold. The Company
has revised the FFO presentation for the three and six months ended
June 30, 2019 to conform to the current presentation. 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 Six
Months
|
common stockholders and unit holders - basic and diluted, excluding
financing expense in
|
Ended June
30,
|
Ended June
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
|
|
($25,116)
|
$15,734
|
($17,594)
|
$23,558
|
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
|
|
(1,851)
|
1,147
|
(1,294)
|
1,724
|
Loss on
sale or write down of consolidated assets, net
|
|
3,867
|
9,059
|
40,570
|
15,375
|
Add:
gain on undepreciated asset sales from consolidated
assets
|
|
40
|
-
|
40
|
534
|
Loss on
write down of consolidated non-real estate assets
|
|
(2,793)
|
-
|
(2,793)
|
-
|
Noncontrolling interests share of loss on sale or write-down of
consolidated joint ventures, net
|
-
|
(3,369)
|
-
|
(3,369)
|
Loss on
sale or write down of assets from unconsolidated joint ventures
(pro rata), net
|
|
6
|
313
|
6
|
384
|
Depreciation and amortization on consolidated
assets
|
|
80,294
|
82,385
|
162,507
|
163,853
|
Less
depreciation and amortization allocable to noncontrolling
interests
|
|
|
|
|
|
in
consolidated joint ventures
|
|
(3,828)
|
(3,676)
|
(7,617)
|
(7,321)
|
Depreciation and amortization on unconsolidated joint ventures (pro
rata)
|
|
46,418
|
51,207
|
95,927
|
96,205
|
Less:
depreciation on personal property
|
|
(3,876)
|
(3,934)
|
(8,202)
|
(7,799)
|
|
|
|
|
|
|
FFO attributable to
common stockholders and unit holders - basic and diluted
|
|
93,161
|
148,866
|
261,550
|
283,144
|
|
|
|
|
|
|
Financing expense in connection with Chandler Freehold
|
|
(32,626)
|
(15,225)
|
(78,333)
|
(27,569)
|
|
|
|
|
|
|
FFO attributable to
common stockholders and unit holders, excluding financing expense
in
|
|
|
|
|
connection
with Chandler Freehold - basic and diluted
|
|
60,535
|
133,641
|
183,217
|
255,575
|
|
|
|
|
|
|
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
|
|
$60,535
|
$133,641
|
$183,217
|
$255,926
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EPS to FFO per share - diluted (c):
|
|
|
|
|
|
|
|
For the
Three Months
|
For the Six
Months
|
|
|
Ended June
30,
|
Ended June
30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2020
|
2019
|
2020
|
2019
|
EPS -
diluted
|
|
($0.18)
|
$0.11
|
($0.13)
|
$0.16
|
Per
share impact of depreciation and amortization of real
estate
|
|
0.77
|
0.83
|
1.59
|
1.62
|
Per
share impact of loss on sale or write down of assets,
net
|
|
0.01
|
0.04
|
0.25
|
0.09
|
FFO per share - basic
and diluted
|
|
$0.60
|
$0.98
|
$1.71
|
$1.87
|
Per
share impact of financing expense in connection with Chandler
Freehold.
|
|
(0.21)
|
(0.10)
|
(0.51)
|
(0.19)
|
FFO per share - basic
and diluted, excluding financing expense in connection with
Chandler Freehold
|
$0.39
|
$0.88
|
$1.20
|
$1.68
|
Per
share impact of loss on extinguishment of debt
|
|
-
|
-
|
-
|
0.01
|
FFO per share - basic
and diluted, excluding financing expense in connection with
Chandler Freehold
|
|
|
|
|
and loss on
extinguishment of debt
|
|
$0.39
|
$0.88
|
$1.20
|
$1.69
|
|
|
|
|
|
|
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 Six
Months
|
|
|
Ended June
30,
|
Ended June
30,
|
|
|
Unaudited
|
Unaudited
|
|
|
2020
|
2019
|
2020
|
2019
|
|
|
|
|
|
|
Net (loss) income
attributable to the Company
|
|
($25,116)
|
$15,734
|
($17,594)
|
$23,558
|
Interest
expense - consolidated assets
|
|
20,034
|
37,109
|
28,108
|
75,466
|
Interest
expense - unconsolidated joint ventures (pro rata)
|
|
26,329
|
26,368
|
53,317
|
53,422
|
Depreciation and amortization - consolidated assets
|
|
80,294
|
82,385
|
162,507
|
163,853
|
Depreciation and amortization - unconsolidated joint ventures (pro
rata)
|
|
46,418
|
51,207
|
95,927
|
96,205
|
Noncontrolling interests in the OP
|
|
(1,851)
|
1,147
|
(1,294)
|
1,724
|
Less:
Interest expense and depreciation and amortization
|
|
|
|
|
|
allocable to noncontrolling interests in consolidated joint
ventures
|
|
(7,491)
|
(8,842)
|
(16,454)
|
(17,479)
|
Loss on
extinguishment of debt
|
|
-
|
-
|
-
|
351
|
Loss on
sale or write down of assets, net - consolidated assets
|
|
3,867
|
9,059
|
40,570
|
15,375
|
Loss on
sale or write down of assets, net - unconsolidated joint ventures
(pro rata)
|
|
6
|
313
|
6
|
384
|
Add:
Noncontrolling interests share of loss on sale or write-down of
consolidated joint ventures, net
|
-
|
(3,369)
|
-
|
(3,369)
|
Income
tax (benefit) expense
|
|
(1,524)
|
679
|
(1,790)
|
1,025
|
Distributions on preferred units
|
|
91
|
101
|
191
|
201
|
Adjusted EBITDA
(d)
|
|
$141,057
|
$211,891
|
$343,494
|
$410,716
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
2020
|
2019
|
2020
|
2019
|
Adjusted EBITDA
(d)
|
|
$141,057
|
$211,891
|
$343,494
|
$410,716
|
REIT
general and administrative expenses
|
|
8,242
|
4,589
|
15,063
|
11,550
|
Management Companies' revenues
|
|
(6,830)
|
(9,119)
|
(13,803)
|
(19,299)
|
Management Companies' operating expenses
|
|
16,442
|
15,692
|
32,666
|
34,706
|
Leasing
expenses, including joint ventures at pro rata
|
|
7,174
|
8,552
|
15,389
|
17,023
|
Straight-line and above/below market adjustments
|
|
235
|
(8,677)
|
(12,804)
|
(14,688)
|
NOI - All
Centers
|
|
166,320
|
222,928
|
380,005
|
440,008
|
NOI of
non-Same Centers
|
|
(847)
|
(7,670)
|
(3,738)
|
(16,671)
|
NOI - Same Centers
(e)
|
|
165,473
|
215,258
|
376,267
|
423,337
|
Lease
termination income of Same Centers
|
|
(2,485)
|
(3,247)
|
(3,727)
|
(3,905)
|
NOI - Same Centers,
excluding lease termination income (e)
|
|
$
162,988
|
$
212,011
|
$
372,540
|
$
419,432
|
|
|
|
|
|
|
NOI - Same Centers
percentage change, excluding lease termination income
(e)
|
|
-23.12%
|
|
-11.18%
|
|
|
|
|
|
|
|
(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