Macerich Announces Quarterly Results

SANTA MONICA, Calif., April 29, 2015 /PRNewswire/ -- The Macerich Company (NYSE Symbol: MAC) today announced results of operations for the quarter ended March 31, 2015, which included funds from operations ("FFO") diluted of $133.5 million or $.79 per share-diluted compared to $121.6  million or $.81 per share-diluted for the quarter ended March 31, 2014.  Included in the 2015 first quarter results is a gain on early extinguishment of debt of $2.2 million or $.01 per share-diluted and $13.6 million or $.08 per share-diluted of expenses related to an unsolicited takeover attempt.  Net income attributable to the Company was $24.6 million or $.15 per share-diluted for the quarter ended March 31, 2015 compared to net income attributable to the Company for the quarter ended March 31, 2014 of $17.8 million or $.13 per share-diluted.  A description and reconciliation of FFO per share-diluted to EPS-diluted is included in the financial tables accompanying this press release.

Recent Highlights: 

• Mall tenant annual sales per square foot for the portfolio increased 7.4% for the year ended March 31, 2015 to $607 compared to $565 for the year ended March 31, 2014.  On a same center basis, annual sales per square foot increased to $604 for the year ended March 31, 2015, up from $579 for the year ended March 31, 2014.
• The releasing spreads for the year ended March 31, 2015 were up 21%.
• Mall portfolio occupancy was 95.4% at March 31, 2015 compared to 95.1% at March 31, 2014. 

Arthur Coppola chairman and chief executive officer of Macerich stated, "Over the past several years, Macerich has executed an extensive and successful portfolio transformation by selling lower quality malls and recycling the capital into value-enhancing redevelopment opportunities. Today, Macerich has a unique and irreplaceable portfolio of high quality properties and we are beginning to realize the significant benefits of our portfolio transformation strategy. During the recently completed quarter, additional occupancy gains and continued strong releasing spreads drove solid same center net operating income growth of 5.0%.  In addition, we continued to execute on our deep pipeline of value-add redevelopment and expansion projects, while further strengthening our balance sheet through additional long term financings at highly attractive rates."

Developments:At Tysons Corner Center, the Company's 2.1 million square foot super regional mall, construction continues on the multifamily component of this mixed use project which has also added an office tower and luxury hotel to one of the country's premier retail centers. The 527,000 square foot office tower with major tenants Intelsat and Deloitte opened in August 2014 and is currently more than 85% leased. A 300-room Hyatt Regency hotel opened on April 14, 2015.  Additionally, a 30-story, 430-unit luxury residential tower is planned to open in June 2015. 

At Broadway Plaza, in Walnut Creek, California, a major redevelopment, including a 235,000 square foot expansion, is underway.  This 774,000 square foot mall (pre-expansion) is anchored by Macy's, Nordstrom and Neiman Marcus. The expansion will open in phases starting in fall 2015.

At both Los Cerritos Center and Scottsdale Fashion Square, expansions are underway to add a Dick's Sporting Goods store and a Harkins Theatre.  Both projects are planned for completion in the second half of 2015.

At Santa Monica Place a new ArcLight Cinema is being built on the third level above Bloomingdales.  Completion of the project is scheduled for fall 2015.

Financing:The Company has committed to a $410 million, 11-year fixed rate 3.43% loan on Lakewood Center.  The mall is currently unencumbered and the loan proceeds are expected to be used to pay down the line of credit.

2015 Earnings Guidance:Management is increasing its previously provided FFO per share guidance range to $3.83 to $3.93 up from $3.80 to $3.90. The guidance does not include the impact of gains or losses on early extinguishment of debt or expenses related to an unsolicited takeover attempt.

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 55 million square feet of real estate consisting primarily of interests in 51 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. Additional information about Macerich can be obtained from the Company's website at www.macerich.com.

Investor Conference CallThe 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).  The call begins Thursday, April 30, 2015 at 10:30 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 (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 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, 2014, 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. 

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SOURCE The Macerich Company