The Macerich Company (MAC), a fully-integrated real estate investment trust (REIT), reported first quarter 2010 FFO (funds from operations) of $71.6 million or 66 cents per share, compared to $102.8 million or $1.16 per share in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Total revenue during the quarter was $182.1 million, compared to $210.8 million in the year-ago quarter. Overall portfolio occupancy at quarter end was 91.1% versus 90.1% in the year-ago period. Tenant sales increased 3.4% during the quarter to $416 per square foot for the twelve-month period ended March 31, 2010, primarily due to the gradual revival of the overall economy.
Macerich continued its active development and redevelopment programs. The company recently announced deals with prime retailers for Santa Monica Place, a 570,000 square feet shopping mall in Santa Monica, California. Santa Monica Place is scheduled to open in August 2010. Year-to-date, Macerich executed leasing deals with nearly 60 retailers for Santa Monica Place, and the project is currently over 92% leased.
Subsequent to the end of the quarter, Macerich issued 31 million shares raising net proceeds of over $1.2 billion. The company also refinanced property loans worth $280 million during the first four months of 2010. At quarter end, Macerich had cash and cash equivalents of $96.2 million, and total debt of $6.6 billion.
For full year 2010, Macerich has revised its FFO guidance to $2.60–$2.80 per share from its earlier guidance of $2.70–$2.90, primarily due to the issue of 31 million of common shares.
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