Macerich Announces Fourth Quarter Results
SANTA MONICA, Calif., Feb. 11 /PRNewswire-FirstCall/ -- The Macerich Company (NYSE: MAC) today announced results of operations for the quarter ended December 31, 2009 which included total funds from operations ("FFO") diluted of $92.7 million or $.90 per share-diluted, compared to $1.92 per share-diluted for the quarter ended December 31, 2008. During the quarter ended December 31, 2009, an impairment charge of $6.7 million or $.07 per share was incurred. During the quarter ended December 31, 2008, there was a gain on early extinguishment of debt of $84 million or $.95 per share. For the year ended December 31, 2009, FFO-diluted was $344.1 million, or $3.70 per share-diluted compared to $461.5 million or $5.22 per share-diluted for the year ended December 31, 2008. Net loss available to common stockholders for the quarter ended December 31, 2009 was $14.4 million or $.18 per share-diluted compared to net income available to common stockholders of $50.9 million or $.67 per share-diluted for the quarter ended December 31, 2008. For the year ended December 31, 2009, net income available to common stockholders was $120.7 million or $1.45 per share-diluted compared to $161.9 million or $2.17 per share-diluted for the year ended December 31, 2008. 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 2009, the Company completed the sale of 25 non-core assets for net proceeds of $151 million. Eight of those transactions, totaling $73 million in net proceeds, closed in the fourth quarter.
- On October 27, 2009, the Company closed a common stock offering of 13.8 million shares that raised net proceeds of $383 million.
- During 2009, the Company reduced its overall debt by $1.36 billion. The deleveraging resulted from applying cash from operations, joint venture transactions, non-core asset sales and the equity offering in October.
- Portfolio occupancy at December 31, 2009 was 91.1% compared to 92.3% at December 31, 2008.
- Tenant sales per square foot were $407 for the twelve month period ended December 31, 2009 compared to sales per square foot of $441 for the year ended December 31, 2008.
Commenting on the quarter and the year, Arthur Coppola chairman and chief executive officer of Macerich stated, "Much of our focus throughout the year was on improving our balance sheet. That effort has paid off with a significant debt reduction resulting from the execution of our capital plan. Our capital plan for 2009 included joint venturing existing assets, selling non-core assets, issuing stock dividends and a major equity issuance. During the year we generated over $1.14 billion in cash that has been applied towards our de-leveraging goals."
Redevelopment and Development Activity
The Company recently announced deals with Tory Burch, Ben Bridge Jewelers and Charles David for the new Santa Monica Place, slated to open August 2010 with anchors Bloomingdale's and Nordstrom.
The new Northgate Mall, Macerich's 722,948-square-foot property in Marin County, California, opened on November 12, 2009. New anchor Kohl's was joined by retailers H&M, BJ's Restaurant, Children's Place, Chipotle, Gymboree, Hot Topic, PacSun, Panera Bread, See's Candies, Sunglass Hut, Tilly's and Vans.
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 89% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 75 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 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 (Investing Section) and through CCBN at www.earnings.com. The call begins today, February 11th at 10:30 AM Pacific Time. To listen to the call, please go to any of these websites 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 (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 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
Discontinued Discontinued Discontinued
Operations (a) Operations (a) Operations (a)
--------------- --------------- ---------------
For the Three For the Three For the Three
Months Months Months
Ended December 31, Ended December 31, Ended December 31,
------------------ -------------- ------------------
Unaudited Unaudited
--------- ---------
2009 2008 (b) 2009 2008 2009 2008 (b)
---- -------- ---- ---- ---- --------
Minimum rents $113,829 $151,128 (932) ($3,664) $112,897 $147,464
Percentage
rents 7,247 9,320 - (45) 7,247 9,275
Tenant
recoveries 59,338 62,470 (373) (1,232) 58,965 61,238
Management
Companies'
revenues 12,422 10,382 - - 12,422 10,382
Other income 8,439 9,947 (2) (19) 8,437 9,928
----- ----- --- --- ----- -----
Total revenues 201,275 243,247 (1,307) (4,960) 199,968 238,287
-------------- ------- ------- ------ ------ ------- -------
Shopping center
and operating
expenses 59,022 73,880 (282) (1,765) 58,740 72,115
Management
Companies'
operating
expenses 20,602 19,185 - - 20,602 19,185
Income tax
(benefit)
expense (3,883) 1,876 - - (3,883) 1,876
Depreciation
and
amortization 75,656 93,802 (272) (3,004) 75,384 90,798
REIT general
and
administrative
expenses 8,944 5,101 - - 8,944 5,101
Interest
expense (b) 59,408 74,860 1 35 59,409 74,895
Gain on early
extinguishment
of debt 15 84,143 - - 15 84,143
Loss on sale or
write down of
assets (14,965) (26,421) 17,126 (1,436) 2,161 (27,857)
Co-venture
interests (c) (2,262) - - - (2,262) -
Equity in
income of
unconsolidated
joint ventures 18,513 26,659 - - 18,513 26,659
(Loss) income
from continuing
operations (17,173) 58,924 16,372 (1,662) (801) 57,262
Discontinued
operations:
(Loss) gain on
sale or
disposition of
assets - - (17,126) 1,436 (17,126) 1,436
Income from
discontinued
operations - - 754 226 754 226
Total (loss)
income from
discontinued
operations - - (16,372) 1,662 (16,372) 1,662
Net (loss)
income (17,173) 58,924 - - (17,173) 58,924
Less net (loss)
income
attributable to
noncontrolling
interests (2,797) 7,972 - - (2,797) 7,972
Net (loss)
income
attributable
the Company (14,376) 50,952 - - (14,376) 50,952
Less preferred
dividends (d) - - - - - -
--- --- --- --- --- ---
Net (loss)
income
available to
common
stockholders ($14,376) $50,952 - - ($14,376) $50,952
------------- -------- ------- --- --- -------- -------
Average number
of shares
outstanding -
basic 91,102 76,194 91,102 76,194
--------------- ------ ------ ------ ------
Average shares
outstanding,
assuming full
conversion of
OP Units (e) 103,026 88,510 103,026 88,510
------- ------ ------- ------
Average shares
outstanding -
Funds From
Operations
("FFO") -
diluted (d) (e) 103,026 88,703 103,026 88,703
---------------- ------- ------ ------- ------
Per share
(loss) income-
diluted before
discontinued
operations - - ($0.02) $0.65
---------------- --- --- ------ -----
Net (loss)
income per
share-basic
(b) ($0.17) $0.67 ($0.17) $0.67
------------- ------ ----- ------ -----
Net (loss)
income per
share-diluted
(b) (d) (e) ($0.18) $0.67 ($0.18) $0.67
---------------- ------ ----- ------ -----
Dividend
declared per
share $0.60 $0.80 $0.60 $0.80
------------- ----- ----- ----- -----
FFO - basic
(b) (e) (f) $92,701 $169,879 $92,701 $169,879
------------- ------- -------- ------- --------
FFO - diluted
(b) (d) (e) (f) $92,701 $170,076 $92,701 $170,076
---------------- ------- -------- ------- --------
FFO per share-
basic (b) (e)
(f) $0.90 $1.92 $0.90 $1.92
---------------- ----- ----- ----- -----
FFO per share-
diluted (b)
(d) (e) (f) $0.90 $1.92 $0.90 $1.92
--------------- ----- ----- ----- -----
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Results of
Operations:
--------------------------------------------------------
Results before Impact of Results after
Discontinued Discontinued Discontinued
Operations (a) Operations (a) Operations (a)
--------------- --------------- ---------------
For the Twelve For the Twelve For the Twelve
Months Months Months
Ended December 31, Ended December 31, Ended December 31,
------------------ ------------------ ------------------
Unaudited Unaudited
--------- ---------
2009 2008 (b) 2009 2008 2009 2008 (b)
---- -------- ---- ---- ---- --------
Minimum rents $484,709 $547,873 (10,448) ($19,302) $474,261 $528,571
Percentage
rents 16,643 19,092 (12) (44) 16,631 19,048
Tenant
recoveries 246,533 267,426 (2,432) (5,188) 244,101 262,238
Management
Companies'
revenues 40,757 40,716 - - 40,757 40,716
Other income 29,988 30,723 (84) (425) 29,904 30,298
------ ------ --- ---- ------ ------
Total revenues 818,630 905,830 (12,976) (24,959) 805,654 880,871
-------------- ------- ------- ------- ------- ------- -------
Shopping center
and operating
expenses 262,526 288,286 (4,352) (6,673) 258,174 281,613
Management
Companies'
operating
expenses 79,305 77,072 - - 79,305 77,072
Income tax
(benefit)
expense (4,761) 1,126 - - (4,761) 1,126
Depreciation
and
amortization 266,163 279,339 (4,100) (9,401) 262,063 269,938
REIT general
and
administrative
expenses 25,933 16,520 - - 25,933 16,520
Interest
expense (b) 267,039 295,160 6 (88) 267,045 295,072
Gain on early
extinguishment
of debt 29,161 84,143 - - 29,161 84,143
Gain (loss) on
sale or write
down of assets 121,766 68,714 40,171 (99,625) 161,937 (30,911)
Co-venture
interests (c) (2,262) - - - (2,262) -
Equity in
income of
unconsolidated
joint ventures 68,160 93,831 - - 68,160 93,831
Income from
continuing
operations 139,250 195,015 35,641 (108,422) 174,891 86,593
Discontinued
operations:
(Loss) gain on
sale or
disposition of
assets - - (40,171) 99,625 (40,171) 99,625
Income from
discontinued
operations - - 4,530 8,797 4,530 8,797
Total (loss)
income from
discontinued
operations - - (35,641) 108,422 (35,641) 108,422
Net income 139,250 195,015 - - 139,250 195,015
Less net income
attributable to
noncontrolling
interests 18,508 28,966 - - 18,508 28,966
Net income
attributable to
the Company 120,742 166,049 - - 120,742 166,049
Less preferred
dividends (d) - 4,124 - - - 4,124
--- ----- --- --- --- -----
Net income
available to
common
stockholders $120,742 $161,925 - - $120,742 $161,925
------------- -------- -------- --- --- -------- --------
Average number
of shares
outstanding -
basic 81,226 74,319 81,226 74,319
--------------- ------ ------ ------ ------
Average shares
outstanding,
assuming full
conversion of
OP Units (e) 93,010 86,794 93,010 86,794
------ ------ ------ ------
Average shares
outstanding -
Funds From
Operations
("FFO") -
diluted (d) (e) 93,010 88,446 93,010 88,446
---------------- ------ ------ ------ ------
Per share
income- diluted
before
discontinued
operations - - $1.83 $0.92
------------- --- --- ----- -----
Net income per
share-basic
(b) $1.45 $2.17 $1.45 $2.17
-------------- ----- ----- ----- -----
Net income per
share-diluted
(b) (d) (e) $1.45 $2.17 $1.45 $2.17
---------------- ----- ----- ----- -----
Dividend
declared per
share $2.60 $3.20 $2.60 $3.20
------------- ----- ----- ----- -----
FFO - basic
(b) (e) (f) $344,108 $456,412 $344,108 $456,412
------------- -------- -------- -------- --------
FFO - diluted
(b) (d) (e) (f) $344,108 $461,515 $344,108 $461,515
---------------- -------- -------- -------- --------
FFO per share-
basic (b) (e)
(f) $3.70 $5.26 $3.70 $5.26
---------------- ----- ----- ----- -----
FFO per share-
diluted (b)
(d) (e) (f) $3.70 $5.22 $3.70 $5.22
--------------- ----- ----- ----- -----
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
(a) The following dispositions impacted the results for the three and
twelve months ended December 31, 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 $99.1 million 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.
During the twelve months ending December 31, 2009, the Company sold
six non-core community centers for $83.2 million and sold five
Kohl's stores for approximately $52.7 million. As a result of these
sales, the Company has classified the results of operations to
discontinued operations for all periods presented.
(b) On January 1, 2009, the Company adopted new accounting standards
associated with convertible debt. As a result, the Company
retrospectively applied the standards to the three and twelve months
ended December 31, 2008 resulting in an increase to interest expense
of $3.1 million and $13.8 million, respectively, a decrease in gain
on early extinguishment of debt of $11.1 million and $11.1 million,
respectively, and a decrease to net income available to common
stockholders of $12.3 million and $21.4 million, respectively, or
$0.14 per share and $0.25 per share, respectively. In addition, FFO
decreased for the three and twelve months ended December 31, 2008 by
$14.3 million and $24.9 million, respectively, or by $0.16 per
share and $0.28 per share, respectively.
(c) This represents the outside partners' allocation of net income in
the Chandler Fashion Center/Freehold Raceway Mall joint venture.
(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.
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.
The preferred shares were not assumed converted for purposes of net
income per share - diluted for the twelve months ended December 31,
2008 as they would be antidilutive to the calculation. The weighted
average preferred shares are assumed converted for purposes of FFO
per share - diluted for 2008.
(e) 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 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. The Company also
cautions that 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
amortization of above/below market leases have been included in FFO.
The inclusion of gains on sales of undepreciated assets increased
FFO for the three and twelve months ended December 31, 2009 and 2008
by $1.3 million, $4.6 million, $0.3 million and $3.8 million,
respectively, or by $0.01 per share, $0.05 per share, $0.00 per
share and $0.04 per share, respectively. Additionally, amortization
of above/below market leases increased FFO for the three and twelve
months ended December 31, 2009 and 2008 by $3.3 million, $13.7
million, $14.2 million and $27.4 million, respectively, or by $0.03
per share, $0.15 per share, $0.16 per share and $0.31 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 Twelve
Months Months
Ended December 31, Ended December 31,
--------------- ---------------
Unaudited Unaudited
----------- -----------
2009 2008 2009 2008
---- ---- ---- ----
Revenues:
Minimum rents $78,564 $70,398 $283,297 $272,660
Percentage rents 6,647 6,881 12,359 14,142
Tenant recoveries 37,247 33,480 136,434 130,552
Other 5,413 5,122 16,422 22,493
----- ----- ------ ------
Total revenues 127,871 115,881 448,512 439,847
------- ------- ------- -------
Expenses:
Shopping center and operating
expenses 44,259 41,444 155,415 149,844
Interest expense 32,529 26,269 111,276 104,119
Depreciation and amortization 25,474 22,115 106,435 96,441
------ ------ ------- ------
Total operating expenses 102,262 89,828 373,126 350,404
------- ------ ------- -------
(Loss) gain on sale or write
down of assets (7,344) 160 (7,642) 3,432
Equity in income of joint
ventures 248 446 416 956
--- --- --- ---
Net income $18,513 $26,659 $68,160 $93,831
------- ------- ------- -------
Reconciliation of Net (loss)
income to FFO (f):
---------------------------------------
For the Three For the Twelve
Months Months
Ended December 31, Ended December 31,
--------------- ---------------
Unaudited Unaudited
----------- -----------
2009 2008 2009 2008
---- ---- ---- ----
Net (loss) income - available to
common stockholders ($14,376) $50,952 $120,742 $161,925
Adjustments to reconcile net (loss)
income to FFO - basic
Noncontrolling interests in OP (2,834) 8,179 17,517 27,230
Loss (gain) on sale or write
down of consolidated assets 14,965 26,421 (121,766) (68,714)
plus gain on undepreciated asset
sales- consolidated assets 1,475 - 4,763 798
plus noncontrolling interests
share of gain on sale or write-
down of consolidated joint
ventures - (404) 310 185
less write down of consolidated
assets (210) (27,445) (28,439) (27,445)
Loss (gain) on sale or write-
down of assets from
unconsolidated entities (pro
rata) 7,344 (160) 7,642 (3,432)
plus (loss) gain on
undepreciated asset sales-
unconsolidated entities (pro
rata share) (128) 274 (152) 3,039
plus noncontrolling interests in
gain on sale of unconsolidated
entities - - - 487
less write down of assets -
unconsolidated entities (pro
rata share) (7,219) (94) (7,501) (94)
Depreciation and amortization on
consolidated assets 75,656 93,802 266,163 279,339
Less depreciation and
amortization allocable to
noncontrolling interests on
consolidated joint ventures (4,624) (968) (7,871) (3,395)
Depreciation and amortization on
joint ventures (pro rata) 25,474 22,115 106,435 96,441
Less: depreciation on personal
property (2,822) (2,793) (13,735) (9,952)
------ ------ ------- ------
Total FFO - basic 92,701 169,879 344,108 456,412
Additional adjustment to arrive
at FFO - diluted
Preferred stock dividends
earned - - - 4,124
Preferred units - dividends - 197 - 979
--- --- --- ---
Total FFO - diluted $92,701 $170,076 $344,108 $461,515
------- -------- -------- --------
Reconciliation of EPS to FFO per
diluted share:
---------------------------------------
For the Three For the Twelve
Months Months
Ended December 31, Ended December 31,
--------------- ---------------
Unaudited Unaudited
----------- -----------
2009 2008 2009 2008
---- ---- ---- ----
Earnings per share - diluted ($0.18) $0.67 $1.45 $2.17
Per share impact of depreciation
and amortization of real
estate 0.91 1.27 3.77 4.17
Per share impact of loss (gain)
on sale or write-down of
depreciated assets 0.17 (0.02) (1.52) (1.12)
Per share impact of preferred
stock not dilutive to EPS - 0.00 - 0.00
--- ---- --- ----
FFO per share - diluted $0.90 $1.92 $3.70 $5.22
----- ----- ----- -----
THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
---------------------------------------
For the Three For the Twelve
Reconciliation of Net (loss) Months Months
income to EBITDA: Ended December 31, Ended December 31,
--------------- ---------------
Unaudited Unaudited
----------- -----------
2009 2008 2009 2008
---- ---- ---- ----
Net (loss) income - available to
common stockholders ($14,376) $50,952 $120,742 $161,925
Interest expense - consolidated
assets 59,408 74,860 267,039 295,160
Interest expense -
unconsolidated entities (pro
rata) 32,529 26,269 111,276 104,119
Depreciation and amortization -
consolidated assets 75,656 93,802 266,163 279,339
Depreciation and amortization -
unconsolidated entities (pro
rata) 25,474 22,115 106,435 96,441
Noncontrolling interests in OP (2,834) 8,179 17,517 27,230
Less: Interest expense and
depreciation and amortization
allocable to noncontrolling
interests on consolidated joint
ventures (7,328) (1,721) (11,839) (5,344)
Gain on early extinguishment of
debt (15) (84,143) (29,161) (84,143)
Loss (gain) on sale or write
down of assets - consolidated
assets 14,965 26,421 (121,766) (68,714)
Loss (gain) on sale or write
down of assets - unconsolidated
entities (pro rata) 7,344 (160) 7,642 (3,432)
Add: noncontrolling interests
share of gain on sale of
consolidated joint ventures 275 (404) 585 185
Add: noncontrolling interests
share of gain on sale of
unconsolidated entities - - - 487
Income tax (benefit) expense (3,883) 1,876 (4,761) 1,126
Distributions on preferred
units 208 197 831 979
Preferred dividends - - - 4,124
-------- -------- -------- --------
EBITDA (g) $187,423 $218,243 $730,703 $809,482
-------- -------- -------- --------
Reconciliation of EBITDA to Same Centers - Net Operating Income ("NOI"):
---------------------------------------
For the Three For the Twelve
Months Months
Ended December 31, Ended December 31,
--------------- ---------------
Unaudited Unaudited
----------- -----------
2009 2008 2009 2008
---- ---- ---- ----
EBITDA (g) $187,423 $218,243 $730,703 $809,482
Add: REIT general and
administrative expenses 8,944 5,101 25,933 16,520
Management Companies'
revenues (12,422) (10,382) (40,757) (40,716)
Management Companies' operating
expenses 20,602 19,185 79,305 77,072
Lease termination income of
comparable centers (3,350) (1,379) (12,556) (9,642)
EBITDA of non-comparable
centers (43,172) (72,390) (112,963) (178,049)
-------- -------- -------- --------
Same Centers - NOI (h) $158,025 $158,378 $669,665 $674,667
-------- -------- -------- --------
(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 above/below market adjustments to minimum rents.
SOURCE The Macerich Company
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