Macerich Slips To Loss In Q4, But Revenue Beats Estimates – Quick Facts

Macerich Co. (MAC), a self-administered real estate investment trust, on Monday reported fourth-quarter preliminary net loss attributable to the company of 190.42 million or $1.27 per share, compared to net income of $26.89 million or $0.19 per share in the year-ago period.

The latest quarter’s results included a loss on remeasurement of assets pertaining to Fashion District Philadelphia of $163.3 million.

Funds from operations or FFO for the quarter declined to $0.72 per share from $1.01 per share last year. Excluding financing expenses and loss on extinguishment of debt, FFO was $0.45 per share, compared to $0.98 per share a year ago.

Total revenues for the quarter declined to $194.64 million from $241.84 million in the prior-year quarter.

On average, analysts polled by Thomson Reuters expected the company to report loss of $0.11 per share for the quarter on revenues of $193.09 million. Analysts’ estimates typically exclude special items.

Macerich said it continues to make significant progress in its negotiations with national and local tenants to secure rental payments, despite a significant portion of the company’s tenants requesting rental assistance, whether in the form of deferral or rent reduction.

The company now has commitments for 43 percent of the leases expiring in 2021, and is in active lease negotiations on another 42 percent of the leases expiring in 2021.

Macerich is also in talks with lenders for a new credit facility to replace its existing credit facility that expires on July 6, 2021. The company noted that while it cannot predict what the terms of any new facility will be, it may include a lower lending commitment and require security.

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