Macerich Provides Updated Earnings Guidance for 2009
October 21 2009 - 4:07PM
PR Newswire (US)
SANTA MONICA, Calif., Oct. 21 /PRNewswire-FirstCall/ -- The
Macerich Company (NYSE:MAC) today announced that the company has
revised its earnings guidance for 2009. 2009 Guidance Update
Management is providing revised guidance for both FFO per
share-diluted and EPS for 2009. The revised guidance reflects the
impact of the recently completed joint ventures and non-core asset
sales. The reconciliation from the prior guidance is reflected
below: Low End High End ------- -------- Previous FFO per share
guidance $4.25 $4.55 Impact of joint ventures completed in 3Q 2009
(1) (.12) (.12) Impact of sales of non core assets during 2009(2)
(.05) (.05) Impairment charge incurred in 2Q 2009(3) (.28) (.28)
Potential offering of 12 million common shares (.13) (.13) Impact
of reducing expected same center EBITDA to -1.0% to -1.50% (.10)
(.10) Other factors including impact of issuing stock dividends
(.07) (.07) ----- ----- Revised FFO per share estimate for 2009:
$3.50 $3.80 ----- ----- (1) Includes recently announced joint
ventures involving the following properties: Queens Center,
FlatIron Crossings Mall, Freehold Raceway Mall, and Chandler
Fashion Center. (2) Year-to-date, the company has completed the
sale of non core assets in the amount of $95MM. These assets were
unencumbered. (3) Reflects a 2Q2009 impairment charge of $27
million on assets held for sale and which were sold in 3Q2009. The
following table provides the reconciliation of the range of
estimated EPS to estimated FFO per diluted-share. For the year
ending December 31, 2009 Low End High End ------- --------
Estimated EPS $1.40 $1.70 Less gain on sale of depreciated assets
(1.37) (1.37) Depreciation and amortization including pro rata
share of joint ventures 3.47 3.47 ----- ----- Revised estimated
diluted FFO per share $3.50 $3.80 Plus: Interest Expense 3.61 3.61
Plus: Non real estate depreciation, amortization of loan costs,
income taxes, impairment charges and less gain on sale of
undepreciated assets .39 .39 ----- ----- Net operating income per
share $7.50 $7.80 ----- ----- The Company's 2009 earnings guidance
is based upon its internal forecasting and planning process and on
many assumptions including management's current view of market and
economic conditions, including those specifically impacting the
regional mall business. Due to the uncertainty in the timing and
economics of dispositions and acquisitions of assets and joint
venture interests, the guidance ranges do not include any potential
impact from such future dispositions or acquisitions. 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 87% 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 Web site at http://www.macerich.com/.
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. Web Site: http://www.macerich.com/ DATASOURCE: The
Macerich Company CONTACT: Arthur Coppola, Chairman and Chief
Executive Officer, or Thomas E. O'Hern, Senior Executive Vice
President and Chief Financial Officer, both of The Macerich
Company, +1-310-394-6000 Web Site: http://www.macerich.com/
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