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Macerich Announces 21% Increase in FFO Per Share.

Article Excerpt
The Macerich Company today announced results of operations for the quarter ended March 31, 2003 which included funds from operations ("FFO") per share - diluted increasing 21% to $.84 compared to $.70 for the quarter ended March 31, 2002. Total FFO - diluted increased by 54% to $63.3 million for the quarter compared to $41.1 million for the quarter ended March 31, 2002.

Net income available to common stockholders for the quarter ended March 31, 2003 was $19.4 million or $.37 per share - diluted compared to $17.4 million or $.50 per share - diluted for the quarter ended March 31, 2002. Net income in the quarter ended March 31, 2002 was positively impacted by net gain on sales of consolidated assets of $13.4 million or $.30 per share compared to a net loss of $.2 million on sales of consolidated assets in the quarter ended March 31, 2003. During the fourth quarter of 2002, the Company adopted SFAS No. 141- Business Combinations, which resulted in an increase in net income per share ("EPS") of $.016 during the quarter ended March 31, 2003. A reconciliation of net income to FFO is included in the financial highlights section of this press release.

Highlights included: -- During the first quarter, Macerich signed 260,000 square feet of specialty store leases at average initial rents of $36.76 per square foot. First year rents on mall and freestanding store leases signed during the first quarter were 23% higher than expiring rents on a comparable space basis. -- Portfolio quarter-end occupancy increased to 92.5% up from 92.0% at March 31, 2002. -- Total same center tenant sales, for the quarter ended March 31, 2003, were even with the sales levels for the quarter ended March 31, 2002. -- FFO per share -- diluted increased 21% to $.84 compared to $.70 per share for the quarter ended March 31, 2002. In compliance with the recently issued Securities and Exchange Commission's Regulation G relating to non-GAAP financial measures, the Company has revised its FFO definition as of January 1, 2003 and for all prior periods presented, to include gain or loss on sales of peripheral land and the effect of SFAS No. 141. The Company's revised definition is in accordance with the definition provided by the National Association of Real Estate Investment Trusts ("NAREIT"). The gain on sales of land included in FFO for the quarter ended March 31, 2003 resulted in an increase of $524,000 or $.007 per share and the inclusion of SFAS No. 141 increased FFO by $1.1 million or $.015 per share. These changes had no impact in the quarter ended March 31, 2002.

The Company uses FFO in addition to net income to report its operating and financial results and considers FFO a supplemental measure for the real estate industry and a supplement to GAAP measures. NAREIT defines FFO as net income (loss) (computed in accordance with Generally Accepted Accounting Principles (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....