SANTA MONICA, Calif., July 23, 2015 /PRNewswire/ -- The Macerich Company (NYSE Symbol: MAC) today announced results of operations for the quarter ended June 30, 2015, which included funds from operations ("FFO") diluted of $151.0 million or $.89 per share-diluted compared to $129.8 million or $.86 per share-diluted for the quarter ended June 30, 2014. Included in the 2015 second quarter results is a loss on extinguishment of debt of $1.6 million or $.01 per share-diluted and $11.4 million or $.07 per share-diluted of expenses related to an unsolicited takeover attempt and contested proxy. Net income attributable to the Company was $14.4 million or $.09 per share-diluted for the quarter ended June 30, 2015 compared to net income attributable to the Company for the quarter ended June 30, 2014 of $16.1 million or $.11 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.

http://photos.prnewswire.com/prnvar/20150619/224278LOGO

Recent Highlights:


    --  Mall tenant annual sales per square foot for the portfolio increased 10%
        for the year ended June 30, 2015 to $623 compared to $567 for the year
        ended June 30, 2014.  On a same center basis, annual sales per square
        foot increased to $619 for the year ended June 30, 2015, up from $581
        for the year ended June 30, 2014.
    --  The releasing spreads for the year ended June 30, 2015 were up 17.5%.
    --  Mall portfolio occupancy was 95.5% at June 30, 2015 compared to 95.4% at
        June 30, 2014.

Arthur Coppola chairman and chief executive officer of Macerich stated, "As evidenced by our continued strong operating metrics and accelerating same center net operating income growth, the Macerich portfolio is clearly realizing the benefits of a multi-year repositioning which saw us recycle capital out of lower quality malls into value-enhancing redevelopment opportunities. During the recently-completed quarter, we were able to drive same center NOI growth in excess of 7.0% while laying the groundwork for future growth through continued execution on our deep pipeline of value-add redevelopment and expansion projects."

Developments:

At Tysons Corner Center, the Company's 2.1 million square foot super regional mall, construction was completed 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 87% leased. A 300-room Hyatt Regency hotel opened on April 14, 2015. The 30-story, 430-unit luxury residential tower opened in May 2015 with lease up expected through July, 2016.

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 is planned to 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. At Scottsdale Fashion Square the projects are planned to open in the third quarter of 2015 and at Los Cerritos the projects will be opened in late 2015 and early 2016.

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.

At Green Acres Mall development of a 335,000 square foot power center is underway. The project includes a Dick's Sporting Goods and other big box retailers. Completion is expected in late 2016.

2015 Earnings Guidance:

Management is increasing its previously provided FFO per share guidance range to $3.86 to $3.94 up from $3.83 to $3.93. 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 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). The call begins Thursday July 23, 2015 at 1:30 PM 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.

(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
                                                                  ---------                ---------

                                                                  2015           2014          2015           2014
                                                                  ----           ----          ----           ----

    Revenues:

    Minimum rents                                             $193,131       $149,220      $383,892       $300,852

    Percentage rents                                             2,576          2,372         5,824          5,222

    Tenant recoveries                                          105,592         83,375       211,290        174,850

    Other income                                                15,321         10,594        28,324         21,024

    Management Companies'
     revenues                                                    6,174          8,776        11,799         16,897


         Total revenues                                        322,794        254,337       641,129        518,845
                                                               -------        -------       -------        -------


    Expenses:

    Shopping center and
     operating  expenses                                        93,877         81,865       195,541        172,225

    Management Companies'
     operating  expenses                                        20,239         20,896        46,707         43,677

    REIT general and
     administrative expenses                                     7,550          5,123        15,972         12,006

    Costs related to
     unsolicited takeover
     offer                                                      11,423              -       24,995              -

    Depreciation and
     amortization                                              119,333         87,801       239,951        176,457

    Interest expense                                            54,896         45,800       108,182         92,138

    Loss (gain) on
     extinguishment of debt,
     net                                                         1,609              -        (636)           358


         Total expenses                                        308,927        241,485       630,712        496,861
                                                               -------        -------       -------        -------


    Equity in income of
     unconsolidated joint
     ventures                                                    9,094         13,903        17,368         27,672

    Co-venture expense (a)                                     (2,813)       (2,212)      (4,943)       (4,032)

    Income tax benefit                                             283          2,898         1,218          3,070

    Loss on sale or write
     down of assets, net                                       (4,671)       (9,455)      (3,736)      (11,065)

    (Loss) gain on
     remeasurement of assets                                      (14)             -       22,089              -


         Net income                                             15,746         17,986        42,413         37,629

    Less net income
     attributable to
     noncontrolling interests                                    1,351          1,898         3,407          3,722

         Net income attributable
          to the Company                                       $14,395        $16,088       $39,006        $33,907
                                                               =======        =======       =======        =======


    Average number of shares
     outstanding -basic                                        158,501        140,894       158,419        140,831
                                                               -------        -------       -------        -------

    Average shares
     outstanding, assuming
     full conversion of OP
     Units  (b)                                                169,079        151,007       168,966        150,883
                                                               -------        -------       -------        -------

    Average shares
     outstanding -Funds From
     Operations ("FFO") -
     diluted (b)                                               169,211        151,149       169,134        150,981
                                                               -------        -------       -------        -------


    Net income per share -
     basic                                                       $0.09          $0.11         $0.24          $0.24
                                                                 -----          -----         -----          -----

    Net income per share -
     diluted                                                     $0.09          $0.11         $0.24          $0.24
                                                                 -----          -----         -----          -----


    Dividend declared per
     share                                                       $0.65          $0.62         $1.30          $1.24
                                                                 -----          -----         -----          -----


    FFO - basic  (b) (c)                                      $150,993       $129,825      $284,527       $251,384
                                                              --------       --------      --------       --------

    FFO - diluted (b) (c)                                     $150,993       $129,825      $284,527       $251,384
                                                              --------       --------      --------       --------

    FFO  -diluted, excluding extinguishment of debt and
     costs

                related to unsolicited
                 takeover offer  (b) (c)                      $164,025       $129,825      $308,886       $251,742
                                                              --------       --------      --------       --------


    FFO per share -basic
     (b) (c)                                                     $0.89          $0.86         $1.68          $1.67
                                                                 -----          -----         -----          -----

    FFO per share -diluted
     (b) (c)                                                     $0.89          $0.86         $1.68          $1.67
                                                                 -----          -----         -----          -----

    FFO per share -diluted, excluding extinguishment of
     debt and costs

             related to unsolicited
              takeover offer (b) (c)                             $0.97          $0.86         $1.83          $1.67
                                                                 -----          -----         -----          -----




    THE MACERICH COMPANY 

    FINANCIAL HIGHLIGHTS
      (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



     (a)                                            This represents
                                                    the outside
                                                    partners'
                                                    allocation of
                                                    net income in
                                                    the Chandler
                                                    Fashion Center/
                                                    Freehold
                                                    Raceway Mall
                                                    joint venture.


     (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.
                                                    Adjustments for
                                                    unconsolidated
                                                    joint ventures
                                                    are calculated
                                                    to reflect FFO
                                                    on the same
                                                    basis.


                                                   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"). 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
     (c):

                                                  For the Three Months           For the Six Months

                                                     Ended June 30,                Ended June 30,
                                                    --------------                 --------------

                                                       Unaudited                      Unaudited
                                                       ---------                     ---------

                                                                     2015                           2014      2015        2014
                                                                     ----                           ----      ----        ----

    Net income attributable to the
     Company                                                      $14,395                        $16,088   $39,006     $33,907


    Adjustments to reconcile net income
     attributable to the Company to FFO
     -basic and diluted:

       Noncontrolling interests in OP                                 961                          1,154     2,596       2,419

       Loss on sale or write down of
        consolidated assets, net                                    4,671                          9,455     3,736      11,065

       Loss (gain) on remeasurement of
        consolidated assets plus gain on
        undepreciated asset sales -
        consolidated assets plus non-
        controlling interests share of
        (loss) gain on sale or write down
        of consolidated joint ventures, net                            14                              - (22,089)          -

                                                                        -                           122       944         122


                                                                        -                          (39)      112        (39)

       (Gain) loss on sale or write down of
        assets from unconsolidated entities
        (pro rata), net plus gain on
        undepreciated asset sales -
        unconsolidated entities (pro rata)                          (139)                         3,310     (139)      3,372

                                                                      142                              2       142           -

       Depreciation and amortization on
        consolidated assets                                       119,333                         87,801   239,951     176,457

       Less depreciation and amortization
        allocable to noncontrolling
        interests on consolidated joint
        ventures

                                                                  (3,745)                       (5,387)  (7,536)   (10,846)

       Depreciation and amortization on
        joint ventures (pro rata)                                  18,658                         19,952    34,269      40,327

       Less: depreciation on personal
        property                                                  (3,297)                       (2,633)  (6,465)    (5,400)


    Total FFO - basic and diluted                                 150,993                        129,825   284,527     251,384

       Loss (gain) on extinguishment of
        debt, net -consolidated assets                              1,609                              -    (636)        358

    Total FFO  -diluted, excluding
     extinguishment of debt                                       152,602                        129,825   283,891     251,742

    Add: Costs related to unsolicited
     takeover offer                                                11,423                              -   24,995           -

    Total FFO -diluted, excluding
     extinguishment of debt and costs
     related to unsolicited takeover
     offer

                                                                 $164,025                       $129,825  $308,886    $251,742
                                                                 ========                       ========  ========    ========




    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
                                                       ---------                     ---------

                                                                     2015                           2014      2015        2014
                                                                     ----                           ----      ----        ----

    Earnings per share - diluted                                    $0.09                          $0.11     $0.24       $0.24

       Per share impact of depreciation and
        amortization of real estate                                  0.77                           0.67      1.53        1.34

       Per share impact of  loss (gain) on
        remeasurement, sale or write down
        of assets, net                                               0.03                           0.08    (0.09)       0.09

    FFO per share - diluted                                         $0.89                          $0.86     $1.68       $1.67

    Per share impact of loss (gain) on
     extinguishment of debt, net                                     0.01                           0.00      0.00        0.00

    Per share impact of costs related to
     unsolicited takeover offer                                      0.07                           0.00      0.15        0.00

    FFO per share -diluted, excluding
     extinguishment of debt and costs
     related to unsolicited takeover
     offer

                                            $0.97                   $0.86                          $1.83     $1.67
                                            =====                   =====                          =====     =====




                                                                                      THE MACERICH COMPANY

                                                                                      FINANCIAL HIGHLIGHTS

                                                                            (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)



                                                                           For the Three Months           For the Six Months

    Reconciliation of Net income attributable to
     the Company to EBITDA:                                                  Ended June 30,                 Ended June 30,
                                                                             --------------                 --------------

                                                                                Unaudited                      Unaudited
                                                                                ---------                      ---------

                                                                                              2015                            2014       2015        2014
                                                                                              ----                            ----       ----        ----


    Net income attributable to the Company                                                 $14,395                         $16,088    $39,006     $33,907


       Interest expense - consolidated assets                                               54,896                          45,800    108,182      92,138

       Interest expense -unconsolidated entities (pro
        rata)                                                                                8,771                          16,540     17,350      33,654

       Depreciation and amortization -consolidated
        assets                                                                             119,333                          87,801    239,951     176,457

       Depreciation and amortization -unconsolidated
        entities (pro rata)                                                                 18,658                          19,952     34,269      40,327

       Noncontrolling interests in OP                                                          961                           1,154      2,596       2,419

       Less: Interest expense and depreciation and
        amortization allocable to noncontrolling
        interests on consolidated joint ventures

                                                                                           (6,099)                        (8,150)  (12,278)   (16,341)

       Loss (gain) on extinguishment of debt, net -
        consolidated entities                                                                1,609                               -     (636)        358

       Loss on sale or write down of assets -
        consolidated assets, net                                                             4,671                           9,455      3,736      11,065

       Loss (gain) on remeasurement of assets -
        consolidated assets                                                                     14                               -  (22,089)          -

       (Gain) loss on sale or write down of assets -
        unconsolidated entities (pro rata), net                                              (139)                          3,310      (139)      3,372

       Add: Non-controlling interests share of (loss)
        gain on sale of consolidated assets, net                                                 -                           (39)       112        (39)

       Income tax benefit                                                                    (283)                        (2,898)   (1,218)    (3,070)

       Distributions on preferred units                                                        138                             183        276         367

    EBITDA (d)                                                                            $216,925                        $189,196   $409,118    $374,614
                                                                                          ========                        ========   ========    ========




    Reconciliation of 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
                                                                                ---------                      ---------

                                                                                              2015                            2014       2015        2014
                                                                                              ----                            ----       ----        ----

    EBITDA (d)                                                                            $216,925                        $189,196   $409,118    $374,614


    Add: REIT general and administrative expenses                                            7,550                           5,123     15,972      12,006

             Costs related to unsolicited takeover offer                                    11,423                               -    24,995           -

             Management Companies' revenues                                                (6,174)                        (8,776)  (11,799)   (16,897)

             Management Companies' operating  expenses                                      20,239                          20,896     46,707      43,677

             Straight-line and above/below market
              adjustments                                                                  (7,270)                        (2,978)  (13,242)    (5,669)

    NOI - All Centers                                                                      242,693                         203,461    471,751     407,731

             NOI of non-comparable centers                                                (19,248)                          4,297   (34,011)      4,110

    NOI - Same Centers (e)                                                                $223,445                        $207,758   $437,740    $411,841
                                                                                          ========                        ========   ========    ========


    (d)              EBITDA
                     represents
                     earnings before
                     interest,
                     income taxes,
                     depreciation,
                     amortization,
                     noncontrolling
                     interests,
                     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
                     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
                     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
                     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
                     EBITDA and
                     subtracting out
                     EBITDA from
                     non-comparable
                     centers and
                     eliminating the
                     management
                     companies and
                     the Company's
                     general and
                     administrative
                     expenses and
                     costs related
                     to unsolicited
                     takeover offer.
                     Same center NOI
                     excludes the
                     impact of
                     straight-line
                     and above/
                     below market
                     adjustments to
                     minimum rents.
                     In both
                     periods, same
                     center NOI
                     includes  100%
                     of former joint
                     venture
                     properties
                     acquired in
                     2014.

Logo - http://photos.prnewswire.com/prnh/20150619/224278LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/macerich-announces-quarterly-results-300117566.html

SOURCE The Macerich Company