EX-99.2 3 d915312dex992.htm EX-99.2 EX-99.2

Exhibit 99.2

 

 

LOGO

Supplemental Financial Information

For the three months ended March 31, 2020

 

 

LOGO

The Macerich Company

Supplemental Financial and Operating Information

Table of Contents

All information included in this supplemental financial package is unaudited, unless otherwise indicated.

 

     Page No.  

Corporate Overview

      1-4  

Overview

      1-2  

Capital Information and Market Capitalization

      3  

Changes in Total Common and Equivalent Shares/Units

      4  

Financial Data

      5-11  

Consolidated Statements of Operations (Unaudited)

      5  

Consolidated Balance Sheet (Unaudited)

      6  

Non-GAAP Pro Rata Financial Information (Unaudited)

      7-9  

Supplemental FFO Information

      10  

Capital Expenditures

      11  

Operational Data

      12-26  

Sales Per Square Foot

      12  

Sales Per Square Foot by Property Ranking

      13-16  

Occupancy

      17  

Average Base Rent Per Square Foot

      18  

Cost of Occupancy

      19  

Percentage of Net Operating Income by State

      20  

Property Listing

      21-24  

Joint Venture List

      25-26  

Debt Tables

      27-29  

Debt Summary

      27  

Outstanding Debt by Maturity Date

      28-29  

Development Pipeline

      30-31  

Corporate Information

      32  

This Supplemental Financial Information should be read in connection with the Company’s first quarter 2020 earnings announcement (included as Exhibit 99.1 of the Company’s Current Report on 8-K, event date May 12, 2020, as certain disclosures, definitions and reconciliations in such announcement have not been included in this Supplemental Financial Information.

The Macerich Company

Supplemental Financial and Operating Information

Overview

The Macerich Company (the “Company”) is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional shopping centers located in the United States in many of the country’s most attractive, densely populated markets with significant presence on the West Coast, Arizona, Chicago and the Metro New York to Washington, DC corridor. A recognized leader in sustainability, the Company has achieved the #1 GRESB ranking in the North American Retail Sector for five straight years 2015 – 2019.

The Company is the sole general partner of, and owns a majority of the ownership interests in, The Macerich Partnership, L.P., a Delaware limited partnership (the “Operating Partnership”).

As of March 31, 2020, the Operating Partnership owned or had an ownership interest in 51 million square feet of gross leasable area (“GLA”) consisting primarily of interests in 47 regional shopping centers and five community/power shopping centers. These 52 centers (which include any related office space) are referred to hereinafter as the “Centers”, unless the context requires otherwise.

The Company is a self-administered and self-managed real estate investment trust (“REIT”) and conducts all of its operations through the Operating Partnership and the Company’s management companies (collectively, the “Management Companies”).

All references to the Company in this Exhibit include the Company, those entities owned or controlled by the Company and predecessors of the Company, unless the context indicates otherwise.

The Company presents certain measures in this Exhibit on a pro rata basis which represents (i) the measure on a consolidated basis, minus the Company’s partners’ share of the measure from its consolidated joint ventures (calculated based upon the partners’ percentage ownership interest); plus (ii) the Company’s share of the measure from its unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest). Management believes that these measures provide useful information to investors regarding its financial condition and/or results of operations because they include the Company’s share of the applicable amount from unconsolidated joint ventures and exclude the Company’s partners’ share from consolidated joint ventures, in each case presented on the same basis. The Company has several significant joint ventures and the Company believes that presenting various measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its economic interest in these joint ventures. Management also uses these measures to evaluate regional property level performance and to make decisions about resource allocations. The Company’s economic interest (as distinct from its legal ownership interest) in certain of its joint ventures could fluctuate from time to time and may not wholly align with its legal ownership interests because of provisions in certain joint venture agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses, payments of preferred returns and control over major decisions. Additionally, the Company does not control its unconsolidated joint ventures and the presentation of certain items, such as assets, liabilities, revenues and expenses, from these unconsolidated joint ventures does not represent the Company’s legal claim to such items.

This document contains information constituting forward-looking statements and includes expectations regarding the Company’s future operational results as well as development, redevelopment and expansion activities. 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 or the industry to differ materially from the Company’s future results, performance or achievements, or those of the industry, expressed or implied in such forward-looking statements. Such factors include, among others, general industry, as well as national, regional and local economic and

 

1

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, and acquisitions and dispositions; the adverse impact of the novel coronavirus (COVID-19) on the U.S., regional and global economies and the financial condition and results of operations of the Company and its tenants; 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. You are urged to carefully review the disclosures we make concerning risks and other factors that may affect our business and operating results, including those made in “Item 1A. Risk Factors” and of our Annual Report on Form 10-K for the year ended December 31, 2019, and our Current Report on Form 10-Q filed on May 11, 2020 as well as our other reports filed with the Securities and Exchange Commission (“SEC”), which disclosures are incorporated herein by reference. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. 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 document or to reflect the occurrence of unanticipated events, unless required by law to do so.

 

2

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Capital Information and Market Capitalization

 

     Period Ended  
     3/31/2020     12/31/2019     12/31/2018  
     dollars in thousands, except per share data  

Closing common stock price per share

    $ 5.63     $ 26.92     $ 43.28  

52 week high

    $ 44.73     $ 47.05     $ 69.73  

52 week low

    $ 5.49     $ 25.53     $ 40.90  

Shares outstanding at end of period

       

Class A non-participating convertible preferred units

      90,619       90,619       90,619  

Common shares and partnership units

      151,976,295       151,892,138       151,655,147  
  

 

 

    

 

 

    

 

 

  

Total common and equivalent shares/units outstanding

      152,066,914       151,982,757       151,745,766  
  

 

 

    

 

 

    

 

 

  

Portfolio capitalization data

       

Total portfolio debt, including joint ventures at pro rata

    $ 8,717,885     $ 8,074,867     $ 7,850,669  

Equity market capitalization

      856,137       4,091,376       6,567,557  
  

 

 

    

 

 

    

 

 

  

Total market capitalization

    $ 9,574,022     $ 12,166,243     $ 14,418,226  
  

 

 

    

 

 

    

 

 

  

Debt as a percentage of total market capitalization

      91.1 %      66.4 %      54.5 % 

Portfolio Capitalization at March 31, 2020

 

 

LOGO

 

3

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Changes in Total Common and Equivalent Shares/Units

 

     Partnership
Units		     Company
Common
Shares		      Class A
Non-Participating
Convertible
Preferred Units		      Total
Common
and
Equivalent
Shares/
Units		  

Balance as of December 31, 2019

      10,484,488       141,407,650        90,619        151,982,757  

Conversion of partnership units to cash

      (168 )      —          —          (168 ) 

Conversion of partnership units to common shares

      (83,722 )      83,722        —          —    

Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans

      3,408       80,917        —          84,325  
  

 

 

    

 

 

     

 

 

     

 

 

  

Balance as of March 31, 2020

      10,404,006       141,572,289        90,619        152,066,914  
  

 

 

    

 

 

     

 

 

     

 

 

  

 

4

The Macerich Company

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands)

 

     For the Three
Months Ended
March 31, 2020		  

Revenues:

   

Leasing revenue

    $ 210,721  

Other income

      9,258  

Management Companies’ revenues

      6,973  
  

 

 

  

Total revenues

      226,952  
  

 

 

  

Expenses:

   

Shopping center and operating expenses

      70,725  

Management Companies’ operating expenses

      16,224  

Leasing expenses

      7,425  

REIT general and administrative expenses

      6,821  

Depreciation and amortization

      82,213  

Interest expense

      8,074  
  

 

 

  

Total expenses

      191,482  

Equity in income of unconsolidated joint ventures

      9,698  

Income tax benefit

      266  

Loss on sale or write down of assets, net

      (36,703 ) 
  

 

 

  

Net income

      8,731  

Less net income attributable to noncontrolling interests

      1,209  
  

 

 

  

Net income attributable to the Company

    $ 7,522  
  

 

 

  

 

5

The Macerich Company

Consolidated Balance Sheet (Unaudited)

As of March 31, 2020

(Dollars in thousands)

 

ASSETS:

   

Property, net (a)

    $ 6,558,075  

Cash and cash equivalents

      652,354  

Restricted cash

      10,753  

Tenant and other receivables, net

      133,589  

Right-of-use assets, net

      143,637  

Deferred charges and other assets, net

      250,648  

Due from affiliates

      9,766  

Investments in unconsolidated joint ventures

      1,540,826  
  

 

 

  

Total assets

    $ 9,299,648  
  

 

 

  

LIABILITIES AND EQUITY:

   

Mortgage notes payable

    $ 4,384,680  

Bank and other notes payable

      1,478,006  

Accounts payable and accrued expenses

      66,991  

Lease liabilities

      115,899  

Other accrued liabilities

      197,040  

Distributions in excess of investments in unconsolidated joint ventures

      107,156  

Financing arrangement obligation

      225,516  
  

 

 

  

Total liabilities

      6,575,288  
  

 

 

  

Commitments and contingencies

   

Equity:

   

Stockholders’ equity:

   

Common stock

      1,416  

Additional paid-in capital

      4,590,709  

Accumulated deficit

      (2,042,688 ) 

Accumulated other comprehensive loss

      (15,446 ) 
  

 

 

  

Total stockholders’ equity

      2,533,991  

Noncontrolling interests

      190,369  
  

 

 

  

Total equity

      2,724,360  
  

 

 

  

Total liabilities and equity

    $ 9,299,648  
  

 

 

  

 

(a)

Includes construction in progress of $92,042.

 

6

The Macerich Company

Non-GAAP Pro Rata Financial Information (Unaudited)

(Dollars in thousands)

 

     For the Three Months
Ended March 31, 2020		  
     Noncontrolling
Interests of
Consolidated
Joint Ventures (a)		     Company’s Share
of Unconsolidated
Joint Ventures		  

Revenues:

     

Leasing revenue

    $ (12,701 )    $ 120,868  

Other income

      (772 )      2,296  
  

 

 

    

 

 

  

Total revenues

      (13,473 )      123,164  
  

 

 

    

 

 

  

Expenses:

     

Shopping center and operating expenses

      (3,702 )      36,022  

Leasing expenses

      (156 )      947  

Depreciation and amortization

      (3,789 )      49,509  

Interest expense

      (5,174 )      26,988  
  

 

 

    

 

 

  

Total expenses

      (12,821 )      113,466  

Equity in income of unconsolidated joint ventures

      —         (9,698 ) 
  

 

 

    

 

 

  

Net income

      (652 )      —    

Less net income attributable to noncontrolling interests

      (652 )      —    
  

 

 

    

 

 

  

Net income attributable to the Company

    $ —       $ —    
  

 

 

    

 

 

  

 

(a)

Represents the Company’s partners’ share of consolidated joint ventures.

 

7

The Macerich Company

Non-GAAP Pro Rata Financial Information (Unaudited)

(Dollars in thousands)

 

     As of March 31, 2020  
     Noncontrolling
Interests of
Consolidated
Joint Ventures (a)		     Company’s Share
of Unconsolidated
Joint Ventures		  

ASSETS:

     

Property, net (b)

    $ (334,031 )    $ 4,541,952  

Cash and cash equivalents

      (11,101 )      80,504  

Restricted cash

      (1,341 )      4,566  

Tenant and other receivables, net

      (5,175 )      72,727  

Right-of-use assets, net

      (761 )      60,955  

Deferred charges and other assets, net

      (2,997 )      136,579  

Due from affiliates

      204       (5,258 ) 

Investments in unconsolidated joint ventures, at equity

      —         (1,540,826 ) 
  

 

 

    

 

 

  

Total assets

    $ (355,202 )    $ 3,351,199  
  

 

 

    

 

 

  

LIABILITIES AND EQUITY:

     

Mortgage notes payable

    $ (359,174 )    $ 3,031,187  

Bank and other notes payable

      —         183,186  

Accounts payable and accrued expenses

      (3,304 )      65,834  

Lease liabilities

      (3,068 )      61,677  

Other accrued liabilities

      (3,011 )      116,471  

Distributions in excess of investments in unconsolidated joint ventures

      —         (107,156 ) 

Financing arrangement obligation

      (225,516 )      —    
  

 

 

    

 

 

  

Total liabilities

      (594,073 )      3,351,199  
  

 

 

    

 

 

  

Equity:

     

Stockholders’ equity

      242,897       —    

Noncontrolling interests

      (4,026 )      —    
  

 

 

    

 

 

  

Total equity

      238,871       —    
  

 

 

    

 

 

  

Total liabilities and equity

    $ (355,202 )    $ 3,351,199  
  

 

 

    

 

 

  

 

(a)

Represents the Company’s partners’ share of consolidated joint ventures.

(b)

This includes $8,529 of construction in progress relating to the Company’s partners’ share from consolidated joint ventures and $383,401 of construction in progress relating to the Company’s share from unconsolidated joint ventures.

 

8

The Macerich Company

Non-GAAP Pro Rata Schedule of Leasing Revenue (Unaudited)

(Dollars in thousands)

 

     For the Three Months Ended March 31, 2020  
     Consolidated     Non-
Controlling
Interests (a)		     Company’s
Consolidated
Share 		    Company’s
Share of
Unconsolidated
Joint Ventures 		    Company’s
Total
Share		  

Revenues:

           

Minimum rents

   

$

140,213

 

  

$

(8,501

) 

  

$

131,712

 

  

$

88,318

 

  

$

220,030

 

Percentage rents

   

 

2,779

 

  

 

(127

) 

  

 

2,652

 

  

 

1,633

 

  

 

4,285

 

Tenant recoveries

   

 

62,470

 

  

 

(3,998

) 

  

 

58,472

 

  

 

30,366

 

  

 

88,838

 

Other

   

 

6,172

 

  

 

(346

) 

  

 

5,826

 

  

 

2,361

 

  

 

8,187

 

Less: Bad debt expense

   

 

(913

) 

  

 

271

 

  

 

(642

) 

  

 

(1,810

) 

  

 

(2,452

) 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total leasing revenue

   

$

210,721

 

  

$

(12,701

) 

  

$

198,020

 

  

$

120,868

 

  

$

318,888

 

  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) Represents the Company’s partners’ share of consolidated joint ventures.

 

9

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Supplemental FFO Information(a)

 

     As of March 31,  
         2020             2019      
     dollars in millions  

Straight-line rent receivable

    $ 130.9     $ 115.2  
     For the
Three Months Ended
March 31,		  
         2020             2019      
     dollars in millions  

Lease termination income

    $ 1.2     $ 0.7  

Straight-line rental income

    $ 3.1     $ 3.6  

Business development and parking income (b)

    $ 14.1     $ 13.3  

Gain (loss) on sales or write down of undepreciated assets

    $ —       $ 0.5  

Amortization of acquired above and below-market leases (net revenue)

    $ 10.0     $ 2.4  

Amortization of debt premiums

    $ 0.2     $ 0.2  

Bad debt expense (c)

    $ 2.5     $ 2.4  

Leasing expenses

    $ 8.2     $ 8.5  

Interest capitalized

    $ 5.4     $ 6.9  

Chandler Freehold financing arrangement (d):

     

Distributions equal to partners’ share of net income

    $ 1.5     $ 1.9  

Distributions in excess of partners’ share of net income (e)

      2.7       1.9  

Fair value adjustment (e)

      (48.4 )      (14.3 ) 
  

 

 

    

 

 

  

Total Chandler Freehold financing arrangement (income) expense (d)

    $ (44.2 )    $ (10.5 ) 
  

 

 

    

 

 

  

 

(a)

All joint venture amounts included at pro rata.

(b)

Included in leasing revenue and other income.

(c)

Included in leasing revenue for the three months ended March 31, 2020 and 2019.

(d)

Included in interest expense.

(e)

The Company presents Funds from Operations (“FFO”) excluding the expenses related to changes in fair value of the financing arrangement and the payments to such joint venture partner less than or in excess of their pro rata share of net income.

 

10

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Capital Expenditures(a)

 

     For the Three Months
Ended		      Year Ended
12/31/2019		      Year Ended
12/31/2018 		 
     3/31/2020      3/31/2019  
    

dollars in millions

  

Consolidated Centers

            

Acquisitions of property, building improvement and equipment

    $ 2.4      $ 9.9      $ 34.8      $ 53.4  

Development, redevelopment, expansions and renovations of Centers

      16.1        14.4        112.3        173.3  

Tenant allowances

      1.1        3.5        18.9        12.6  

Deferred leasing charges

      0.9        1.4        3.2        17.3  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 20.5      $ 29.2      $ 169.2      $ 256.6  
  

 

 

     

 

 

     

 

 

     

 

 

  

Unconsolidated Joint Venture Centers

            

Acquisitions of property, building improvement and equipment

    $ 1.8      $ 1.2      $ 12.3      $ 15.7  

Development, redevelopment, expansions and renovations of Centers

      29.6        47.9        210.6        145.9  

Tenant allowances

      0.4        1.7        9.3        8.7  

Deferred leasing charges

      0.7        0.9        3.4        10.9  
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 32.5      $ 51.7      $ 235.6      $ 181.2  
  

 

 

     

 

 

     

 

 

     

 

 

  

 

(a)

All joint venture amounts at pro rata.

 

11

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Regional Shopping Center Portfolio

Sales Per Square Foot(a)

 

     Consolidated
Centers		      Unconsolidated
Joint Venture
Centers		      Total
Centers		  

02/29/2020(b)

    $ 655      $ 988      $ 801  

03/31/2019

    $ 612      $ 925      $ 746  

12/31/2019

    $ 646      $ 998      $ 801  

12/31/2018

    $ 612      $ 882      $ 726  

 

(a)

Sales are based on reports by retailers leasing mall and freestanding stores for the trailing 12 months for tenants that have occupied such stores for a minimum of 12 months. Sales per square foot are based on tenants 10,000 square feet and under for regional shopping centers. Sales per square foot exclude Centers under development and redevelopment.

(b)

Sales per square foot is reflected for the trailing twelve months as of February 29, 2020, given the widespread closures of a majority of the Company’s tenants during March 2020 resulting from the COVID-19 pandemic.

 

LOGO

 

12

The Macerich Company

Sales Per Square Foot by Property Ranking (Unaudited)

 

     Sales per square foot      Occupancy     Cost of Occupancy
for the trailing
12 months
Ended 02/29/2020
(c)		     % of Portfolio
2019
Pro Rata
Real Estate NOI
(d)		  

Properties

    02/29/2020
(a)		      12/31/2019
(a)		      03/31/2019
(a)		      03/31/2020
(b)		     12/31/2019
(b)		     03/31/2019
(b)		  

Group 1: Top 10

                    

Broadway Plaza

    $ 2,130      $ 2,032      $ 2,023        95.8 %      95.9 %      98.4 %     

Corte Madera, Village at

    $ 1,965      $ 1,879      $ 2,357        94.8 %      94.9 %      95.0 %     

Queens Center

    $ 1,614      $ 1,581      $ 1,499        98.5 %      98.9 %      92.1 %     

Washington Square

    $ 1,587      $ 1,550      $ 1,385        94.9 %      95.1 %      98.4 %     

Scottsdale Fashion Square

    $ 1,478      $ 1,437      $ 1,226        93.1 %      93.2 %      91.8 %     

Kierland Commons

    $ 1,427      $ 1,413      $ 1,281        97.8 %      96.5 %      97.5 %     

North Bridge, The Shops at

    $ 1,062      $ 1,021      $ 879        85.8 %      86.3 %      98.0 %     

Los Cerritos Center

    $ 1,037      $ 1,030      $ 956        97.4 %      98.8 %      99.2 %     

Tysons Corner Center

    $ 1,007      $ 981      $ 963        92.1 %      93.1 %      96.3 %     

Tucson La Encantada

    $ 942      $ 927      $ 866        96.8 %      98.0 %      95.4 %     
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Top 10:

    $ 1,381      $ 1,345      $ 1,262        94.2 %      94.7 %      96.0 %      11.0 %      32.9 % 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Group 2: Top 11-20

                    

Arrowhead Towne Center

    $ 935      $ 922      $ 812        97.2 %      97.1 %      97.2 %     

Fresno Fashion Fair

    $ 876      $ 874      $ 770        91.8 %      90.4 %      90.5 %     

Fashion Outlets of Chicago

    $ 868      $ 864      $ 839        97.9 %      97.5 %      98.2 %     

Santa Monica Place

    $ 820      $ 820      $ 813        91.8 %      94.7 %      93.9 %     

Chandler Fashion Center

    $ 756      $ 752      $ 705        95.6 %      95.8 %      96.8 %     

Twenty Ninth Street

    $ 753      $ 741      $ 727        95.7 %      96.6 %      96.2 %     

Vintage Faire Mall

    $ 742      $ 745      $ 705        99.4 %      98.0 %      97.2 %     

Kings Plaza Shopping Center

    $ 731      $ 731      $ 699        99.1 %      99.4 %      99.0 %     

Biltmore Fashion Park

    $ 713      $ 714      $ 698        93.4 %      93.1 %      88.3 %     

Stonewood Center

    $ 702      $ 697      $ 670        93.6 %      94.0 %      93.8 %     
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Top 11-20:

    $ 798      $ 794      $ 747        95.8 %      95.9 %      95.7 %      12.4 %      25.9 % 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

13

The Macerich Company

Sales Per Square Foot by Property Ranking (Unaudited)

 

     Sales per square foot      Occupancy     Cost of Occupancy
for the trailing
12 months
Ended 02/29/2020
(c)		     % of Portfolio
2019
Pro Rata
Real Estate NOI
(d)		  

Properties

    02/29/2020
(a)		      12/31/2019
(a)		      03/31/2019
(a)		      03/31/2020
(b)		     12/31/2019
(b)		     03/31/2019
(b)		  

Group 3: Top 21-30

                    

Country Club Plaza

      n/a        n/a        n/a        n/a       n/a       n/a      

Oaks, The

    $ 698      $ 673      $ 668        91.4 %      92.7 %      93.0 %     

SanTan Village Regional Center

    $ 675      $ 652      $ 601        94.0 %      96.3 %      96.3 %     

Freehold Raceway Mall

    $ 672      $ 657      $ 609        95.4 %      97.5 %      97.4 %     

Danbury Fair Mall

    $ 670      $ 658      $ 624        88.8 %      93.2 %      95.6 %     

Green Acres Mall

    $ 621      $ 626      $ 653        97.0 %      96.4 %      96.9 %     

FlatIron Crossing

    $ 609      $ 599      $ 580        94.1 %      95.9 %      96.8 %     

Inland Center

    $ 578      $ 570      $ 515        93.7 %      93.8 %      96.0 %     

Victor Valley, Mall of

    $ 574      $ 574      $ 551        97.0 %      97.0 %      97.2 %     

Deptford Mall

    $ 550      $ 533      $ 514        93.9 %      96.0 %      98.1 %     
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Top 21-30:

    $ 635      $ 678      $ 638        92.9 %      94.8 %      95.3 %      12.8 %      24.1 % 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Group 4: Top 31-40

                    

South Plains Mall

    $ 543      $ 535      $ 489        86.2 %      88.0 %      91.4 %     

Lakewood Center

    $ 534      $ 522      $ 499        96.3 %      97.2 %      97.8 %     

Pacific View

    $ 503      $ 484      $ 450        83.0 %      85.2 %      88.8 %     

La Cumbre Plaza

    $ 487      $ 505      $ 495        84.0 %      86.8 %      78.9 %     

West Acres

    $ 461      $ 445      $ 452        96.6 %      98.1 %      95.7 %     

Valley River Center

    $ 458      $ 457      $ 439        95.0 %      93.4 %      95.8 %     

Superstition Springs Center

    $ 416      $ 410      $ 371        93.4 %      93.9 %      94.6 %     

Desert Sky Mall

    $ 381      $ 354      $ 344        94.6 %      98.9 %      99.4 %     

Eastland Mall

    $ 355      $ 361      $ 360        92.5 %      92.5 %      94.5 %     

Fashion Outlets of Niagara Falls USA

    $ 345      $ 342      $ 332        88.9 %      92.0 %      91.5 %     
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Top 31-40:

    $ 447      $ 440      $ 421        91.8 %      93.2 %      93.9 %      13.3 %      13.1 % 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Top 40:

    $ 830      $ 830      $ 774        93.6 %      94.6 %      95.2 %      11.9 %      96.0 % 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

14

The Macerich Company

Sales Per Square Foot by Property Ranking (Unaudited)

 

     Sales per square foot      Occupancy     Cost of Occupancy
for the trailing
12 months
Ended 02/29/2020
(c)		     % of Portfolio
2019
Pro Rata
Real Estate NOI
(d)		  

Properties

    02/29/2020
(a)		      12/31/2019
(a)		      03/31/2019
(a)		      03/31/2020
(b)		     12/31/2019
(b)		     03/31/2019
(b)		  

Group 5: 41-45

                    

NorthPark Mall

                    

SouthPark Mall

                    

Towne Mall

                    

Valley Mall

                    

Wilton Mall

                    
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

Total 41-45:

    $ 294      $ 290      $ 286        86.1 %      86.7 %      87.6 %      10.3 %   
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

Centers under Redevelopment

                    

Fashion District Philadelphia (e)(f)

                    

Paradise Valley Mall (e)

                    

47 REGIONAL SHOPPING CENTERS

    $ 801      $ 801      $ 746        93.1 %      94.0 %      94.7 %      11.8 %      98.9 % 
  

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Community / Power Centers and various other assets

                       1.1 % 
                 

 

 

    

 

 

  

TOTAL ALL PROPERTIES

                     11.8 %      100.0 % 
                 

 

 

    

 

 

  

 

15

The Macerich Company

Sales Per Square Foot by Property Ranking (Unaudited)

 

Footnotes

 

(a)

Sales are based on reports by retailers leasing mall and freestanding stores for the trailing 12 months for tenants that have occupied such stores for a minimum of 12 months. Sales per square foot are based on tenants 10,000 square feet and under. Properties are ranked by Sales per square foot as of February 29, 2020. Sales per square foot is reflected for the trailing twelve months as of February 29, 2020, given the widespread closures of a majority of the Company’s tenants during March 2020 resulting from the COVID-19 pandemic.

(b)

Occupancy is the percentage of mall and freestanding GLA leased as of the last day of the reporting period. Occupancy excludes Centers under development and redevelopment.

(c)

Cost of Occupancy represents “Tenant Occupancy Costs” divided by “Tenant Sales”. Tenant Occupancy Costs in this calculation are the amounts paid to the Company, including minimum rents, percentage rents and recoverable expenditures, which consist primarily of property operating expenses, real estate taxes and repair and maintenance expenditures. Cost of Occupancy is calculated based on tenant sales for the trailing twelve months ended February 29, 2020, given the widespread closures of a majority of the Company’s tenants during March 2020 resulting from the COVID-19 pandemic.

(d)

The percentage of Portfolio 2019 Real Estate Pro Rata NOI excludes lease termination revenue, straight-line and above/below market adjustments to minimum rents. Portfolio 2019 Real Estate Pro Rata NOI excludes REIT general and administrative expenses, management company revenues, management company expenses and leasing expenses (including joint ventures at pro rata).

(e)

These assets are under redevelopment including demolition and reconfiguration of the Centers and tenant spaces. Accordingly, the Sales per square foot and Occupancy during the periods of redevelopment are not included.

(f)

On September 19, 2019, the Company’s joint venture opened Fashion District Philadelphia in downtown Philadelphia.

 

16

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Occupancy(a)

 

Regional Shopping Centers:
Period Ended

    Consolidated
Centers		     Unconsolidated
Joint Venture
Centers		     Total
Centers		  

03/31/2020

      92.8 %      93.4 %      93.1 % 

03/31/2019

      94.0 %      95.5 %      94.7 % 

12/31/2019

      93.7 %      94.4 %      94.0 % 

12/31/2018

      95.2 %      95.6 %      95.4 % 

 

(a)

Occupancy is the percentage of mall and freestanding GLA leased as of the last day of the reporting period. Occupancy excludes Centers under development and redevelopment.

 

17

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Average Base Rent Per Square Foot(a)

 

     Average Base Rent
PSF(b)		      Average Base Rent
PSF on Leases
Executed during the
trailing twelve
months ended(c)		      Average Base Rent
PSF on Leases
Expiring
during the trailing
twelve months
ended(d)		  

Consolidated Centers

         

03/31/2020

    $ 60.08      $ 53.48      $ 52.88  

03/31/2019

    $ 58.47      $ 55.13      $ 50.11  

12/31/2019

    $ 58.76      $ 53.29      $ 53.20  

12/31/2018

    $ 56.82      $ 54.00      $ 49.07  

Unconsolidated Joint Venture Centers

         

03/31/2020

    $ 67.13      $ 71.98      $ 61.51  

03/31/2019

    $ 65.42      $ 68.06      $ 61.10  

12/31/2019

    $ 65.67      $ 73.05      $ 65.22  

12/31/2018

    $ 63.84      $ 66.95      $ 59.49  

All Regional Shopping Centers

         

03/31/2020

    $ 62.44      $ 58.88      $ 55.28  

03/31/2019

    $ 60.74      $ 58.85      $ 53.01  

12/31/2019

    $ 61.06      $ 59.15      $ 56.50  

12/31/2018

    $ 59.09      $ 57.55      $ 51.80  

 

(a)

Average base rent per square foot is based on spaces 10,000 square feet and under. All joint venture amounts are included at pro rata. Centers under development and redevelopment are excluded.

(b)

Average base rent per square foot gives effect to the terms of each lease in effect, as of the applicable date, including any concessions, abatements and other adjustments or allowances that have been granted to the tenants.

(c)

The average base rent per square foot on leases executed during the period represents the actual rent to be paid during the first twelve months.

(d)

The average base rent per square foot on leases expiring during the period represents the final year minimum rent on a cash basis.

 

18

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Cost of Occupancy

 

                                                                                                        
     For the trailing
twelve months ended
February 29, 2020(a)		    For Years Ended December 31,  
       2019        2018    

Consolidated Centers

         

Minimum rents

    9.1%    9.1%      9.3%  

Percentage rents

    0.4%    0.4%      0.3%  

Expense recoveries(b)

    3.6%    3.6%      3.9%  
  

 

   

 

   

 

 

  

Total

    13.1%    13.1%      13.5%  
  

 

   

 

   

 

 

  
     For the trailing
twelve months ended
February 29, 2020(a)		    For Years Ended December 31,  
       2019        2018    

Unconsolidated Joint Venture Centers

         

Minimum rents

    7.3%    7.3%      7.8%  

Percentage rents

    0.3%    0.3%      0.3%  

Expense recoveries(b)

    3.2%    3.2%      3.4%  
  

 

   

 

   

 

 

  

Total

    10.8%    10.8%      11.5%  
  

 

   

 

   

 

 

  
     For the trailing
twelve months ended
February 29, 2020(a)		    For Years Ended December 31,  
       2019        2018    

All Centers

         

Minimum rents

    8.1%    8.1%      8.5%  

Percentage rents

    0.3%    0.3%      0.3%  

Expense recoveries(b)

    3.4%    3.4%      3.6%  
  

 

   

 

   

 

 

  

Total

    11.8%    11.8%      12.4%  
  

 

   

 

   

 

 

  

 

(a)

Cost of Occupancy is calculated based on tenant sales for the trailing twelve months ended February 29, 2020, given the widespread closures of a majority of the Company’s tenants during March 2020 resulting from the COVID-19 pandemic.

(b)

Represents real estate tax and common area maintenance charges.

 

19

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Percentage of Net Operating Income by State

 

State

    % of Portfolio
2019
Real Estate
Pro Rata NOI(a)		  

California

      26.7 % 

New York

      23.1 % 

Arizona

      16.2 % 

Pennsylvania & Virginia

      9.4 % 

Colorado, Illinois & Missouri

      9.1 % 

New Jersey & Connecticut

      7.3 % 

Oregon

      4.3 % 

Other(b)

      3.9 % 
  

 

 

  

Total

      100.0 % 
  

 

 

  

 

(a)

The percentage of Portfolio 2019 Real Estate Pro Rata NOI excludes lease termination revenue, straight-line and above/below market adjustments to minimum rents. Portfolio 2019 Real Estate Pro Rata NOI excludes REIT general and administrative expenses, management company revenues, management company expenses and leasing expenses (including joint ventures at pro rata).

(b)

“Other” includes Indiana, Iowa, Kentucky, North Dakota and Texas.

 

20

The Macerich Company

Property Listing

March 31, 2020

The following table sets forth certain information regarding the Centers and other locations that are wholly owned or partly owned by the Company.

 

Count

   

Company’s

Ownership(a)

   

Name of
Center/Location

    Year of
Original
Construction/
Acquisition		      Year of Most
Recent
Expansion/
Renovation		      Total
GLA(b)		  
   CONSOLIDATED CENTERS:

 

      
1    50.1%   

Chandler Fashion Center
Chandler, Arizona

     2001/2002        —        1,318,000  
2    100%   

Danbury Fair Mall
Danbury, Connecticut

     1986/2005        2016        1,271,000  
3    100%   

Desert Sky Mall
Phoenix, Arizona

     1981/2002        2007        746,000  
4    100%   

Eastland Mall(c)
Evansville, Indiana

     1978/1998        1996        1,034,000  
5    100%   

Fashion Outlets of Chicago
Rosemont, Illinois

     2013/—        —        537,000  
6    100%   

Fashion Outlets of Niagara Falls USA
Niagara Falls, New York

     1982/2011        2014        689,000  
7    50.1%   

Freehold Raceway Mall
Freehold, New Jersey

     1990/2005        2007        1,673,000  
8    100%   

Fresno Fashion Fair
Fresno, California

     1970/1996        2006        995,000  
9    100%   

Green Acres Mall(c)
Valley Stream, New York

     1956/2013        2016        2,063,000  
10    100%   

Inland Center
San Bernardino, California

     1966/2004        2016        605,000  
11    100%   

Kings Plaza Shopping Center(c)
Brooklyn, New York

     1971/2012        2018        1,137,000  
12    100%   

La Cumbre Plaza(c)
Santa Barbara, California

     1967/2004        1989        492,000  
13    100%   

NorthPark Mall
Davenport, Iowa

     1973/1998        2001        934,000  
14    100%   

Oaks, The
Thousand Oaks, California

     1978/2002        2009        1,209,000  
15    100%   

Pacific View
Ventura, California

     1965/1996        2001        900,000  
16    100%   

Queens Center(c)
Queens, New York

     1973/1995        2004        965,000  
17    100%   

Santa Monica Place
Santa Monica, California

     1980/1999        2015        526,000  
18    84.9%   

SanTan Village Regional Center
Gilbert, Arizona

     2007/—        2018        1,124,000  
19    100%   

SouthPark Mall
Moline, Illinois

     1974/1998        2015        863,000  
20    100%   

Stonewood Center(c)
Downey, California

     1953/1997        1991        935,000  
21    100%   

Superstition Springs Center
Mesa, Arizona

     1990/2002        2002        922,000  
22    100%   

Towne Mall
Elizabethtown, Kentucky

     1985/2005        1989        350,000  

 

21

The Macerich Company

Property Listing

March 31, 2020

 

Count

   

Company’s

Ownership(a)

   

Name of
Center/Location

    Year of
Original
Construction/
Acquisition		      Year of Most
Recent
Expansion/
Renovation		    Total
GLA(b)		  

23

    100%   

Tucson La Encantada
Tucson, Arizona

     2002/2002      2005      246,000  

24

    100%   

Valley Mall
Harrisonburg, Virginia

     1978/1998      1992      505,000  

25

    100%   

Valley River Center
Eugene, Oregon

     1969/2006      2007      871,000  

26

    100%   

Victor Valley, Mall of
Victorville, California

     1986/2004      2012      577,000  

27

    100%   

Vintage Faire Mall
Modesto, California

     1977/1996      2008      984,000  

28

    100%   

Wilton Mall
Saratoga Springs, New York

     1990/2005      1998      709,000  
              

 

 

  
      Total Consolidated Centers            25,180,000  
              

 

 

  
UNCONSOLIDATED JOINT VENTURE CENTERS:

 

      

29

    60%   

Arrowhead Towne Center
Glendale, Arizona

     1993/2002      2015      1,197,000  

30

    50%   

Biltmore Fashion Park
Phoenix, Arizona

     1963/2003      2006      597,000  

31

    50%   

Broadway Plaza
Walnut Creek, California

     1951/1985      2016      927,000  

32

    50.1%   

Corte Madera, The Village at
Corte Madera, California

     1985/1998      2005      501,000  

33

    50%   

Country Club Plaza
Kansas City, Missouri

     1922/2016      2015      947,000  

34

    51%   

Deptford Mall
Deptford, New Jersey

     1975/2006      1990      1,040,000  

35

    51%   

FlatIron Crossing
Broomfield, Colorado

     2000/2002      2009      1,428,000  

36

    50%   

Kierland Commons
Scottsdale, Arizona

     1999/2005      2003      437,000  

37

    60%   

Lakewood Center
Lakewood, California

     1953/1975      2008      2,069,000  

38

    60%   

Los Cerritos Center
Cerritos, California

     1971/1999      2016      1,023,000  

39

    50%   

North Bridge, The Shops at(c)
Chicago, Illinois

     1998/2008      —      670,000  

40

    50%   

Scottsdale Fashion Square
Scottsdale, Arizona

     1961/2002      2019      1,835,000  

41

    60%   

South Plains Mall
Lubbock, Texas

     1972/1998      2017      1,136,000  

42

    51%   

Twenty Ninth Street(c)
Boulder, Colorado

     1963/1979      2007      845,000  

43

    50%   

Tysons Corner Center
Tysons Corner, Virginia

     1968/2005      2014      1,971,000  

44

    60%   

Washington Square
Portland, Oregon

     1974/1999      2005      1,296,000  

45

    19%   

West Acres
Fargo, North Dakota

     1972/1986      2001      691,000  
              

 

 

  
      Total Unconsolidated Joint Venture Centers            18,610,000  
              

 

 

  

 

22

The Macerich Company

Property Listing

March 31, 2020

 

Count

   

Company’s

Ownership(a)

   

Name of
Center/Location

    Year of
Original
Construction/
Acquisition		      Year of Most
Recent
Expansion/
Renovation		      Total
GLA(b)		  
REGIONAL SHOPPING CENTERS UNDER REDEVELOPMENT:

 

   

46

    50%   

Fashion District Philadelphia(c)(d)(e)
Philadelphia, Pennsylvania

     1977/2014        2019        899,000  

47

    100%   

Paradise Valley Mall(f)
Phoenix, Arizona

     1979/2002        2009        1,202,000  
              

 

 

  
      Total Regional Shopping Centers            45,891,000  
              

 

 

  

COMMUNITY / POWER CENTERS:

 

      

1

    50%   

Atlas Park, The Shops at(d)
Queens, New York

     2006/2011        2013        369,000  

2

    50%   

Boulevard Shops(d)
Chandler, Arizona

     2001/2002        2004        184,000  

3

    100%   

Southridge Center(f)
Des Moines, Iowa

     1975/1998        2013        848,000  

4

    100%   

Superstition Springs Power Center(f)
Mesa, Arizona

     1990/2002        —        206,000  

5

    100%   

The Marketplace at Flagstaff(c)(f)
Flagstaff, Arizona

     2007/—        —        268,000  
              

 

 

  
      Total Community / Power Centers            1,875,000  
              

 

 

  

OTHER ASSETS:

         
   100%   

Various(f)(g)

            427,000  
   83.2%   

Estrella Falls(f)
Goodyear, Arizona

            79,000  
   50%   

Scottsdale Fashion Square-Office(d)
Scottsdale, Arizona

           124,000  
   50%   

Tysons Corner Center-Office(d)
Tysons Corner, Virginia

           174,000  
   50%   

Hyatt Regency Tysons Corner Center(d)
Tysons Corner, Virginia

           290,000  
   50%   

VITA Tysons Corner Center(d)
Tysons Corner, Virginia

           510,000  
   50%   

Tysons Tower(d)
Tysons Corner, Virginia

           529,000  

OTHER ASSETS UNDER REDEVELOPMENT:

         
   25%   

One Westside(d)(h)
Los Angeles, California

            680,000  
              

 

 

  
      Total Other Assets            2,813,000  
              

 

 

  
      Grand Total            50,579,000  
              

 

 

  

 

(a)

The Company’s ownership interest in this table reflects its legal ownership interest. See footnotes (a) and (b) on pages 25 and 26 regarding the legal versus economic ownership of joint venture entities.

(b)

Includes GLA attributable to anchors (whether owned or non-owned) and mall and freestanding stores.

(c)

Portions of the land on which the Center is situated are subject to one or more long-term ground leases. With respect to 42 Centers, the underlying land controlled by the Company is owned in fee entirely by the Company, or, in the case of jointly-owned Centers, by the joint venture property partnership or limited liability company.

(d)

Included in Unconsolidated Joint Venture Centers.

 

23

The Macerich Company

Property Listing

March 31, 2020

 

(e)

On September 19, 2019, the Company’s joint venture opened Fashion District Philadelphia in downtown Philadelphia.

(f)

Included in Consolidated Centers.

(g)

The Company owns an office building and five stores located at shopping centers not owned by the Company. Of the five stores, one is leased to Kohl’s, one is vacant, and three have been leased for non-Anchor uses. With respect to the office building and two of the five stores, the underlying land is owned in fee entirely by the Company. With respect to the remaining three stores, the underlying land is owned by third parties and leased to the Company pursuant to long-term building or ground leases.

(h)

Construction is underway to convert former Regional Shopping Center Westside Pavilion, which closed in January 2019, into an approximately 584,000 square foot Class A creative office campus called One Westside leased solely to Google, while maintaining approximately 96,000 square feet of adjacent entertainment and retail space at 10850 Pico Boulevard.

 

24

The Macerich Company

Joint Venture List as of March 31, 2020

The following table sets forth certain information regarding the Centers and other operating properties that are not wholly owned by the Company. This list of properties includes unconsolidated joint ventures, consolidated joint ventures, and financing arrangements. The percentages shown are the effective legal ownership and economic ownership interests of the Company as of March 31, 2020.

 

Properties

    Legal
Ownership(a)		     Economic
Ownership(b)		    

Joint Venture

    Total GLA(c)  

Arrowhead Towne Center(d)

      60 %      60 %    New River Associates LLC      1,197,000  

Atlas Park, The Shops at

      50 %      50 %    WMAP, L.L.C.      369,000  

Biltmore Fashion Park

      50 %      50 %    Biltmore Shopping Center Partners LLC      597,000  

Boulevard Shops

      50 %      50 %    Propcor II Associates, LLC      184,000  

Broadway Plaza(e)

      50 %      50 %    Macerich HHF Broadway Plaza LLC      927,000  

Chandler Fashion Center(d)(f)

      50.1 %      50.1 %    Freehold Chandler Holdings LP      1,318,000  

Corte Madera, The Village at

      50.1 %      50.1 %    Corte Madera Village, LLC      501,000  

Country Club Plaza

      50 %      50 %    Country Club Plaza KC Partners LLC      947,000  

Deptford Mall(d)

      51 %      51 %    Macerich HHF Centers LLC      1,040,000  

Estrella Falls

      83.2 %      83.2 %    Westcor Goodyear RSC LLC      79,000  

Fashion District Philadelphia

      50 %      50 %    Various Entities      899,000  

FlatIron Crossing

      51 %      51 %    Macerich HHF Centers LLC      1,428,000  

Freehold Raceway Mall(d)(f)

      50.1 %      50.1 %    Freehold Chandler Holdings LP      1,673,000  

Hyatt Regency Tysons Corner Center

      50 %      50 %    Tysons Corner Hotel I LLC      290,000  

Kierland Commons

      50 %      50 %    Kierland Commons Investment LLC      437,000  

Lakewood Center

      60 %      60 %    Pacific Premier Retail LLC      2,069,000  

Los Angeles Premium Outlets

      50 %      50 %    CAM-CARSON LLC      —    

Los Cerritos Center(d)

      60 %      60 %    Pacific Premier Retail LLC      1,023,000  

North Bridge, The Shops at

      50 %      50 %    North Bridge Chicago LLC      670,000  

SanTan Village Regional Center

      84.9 %      84.9 %    Westcor SanTan Village LLC      1,124,000  

Scottsdale Fashion Square

      50 %      50 %    Scottsdale Fashion Square Partnership      1,835,000  

Scottsdale Fashion Square-Office

      50 %      50 %    Scottsdale Fashion Square Partnership      124,000  

Macerich Seritage Portfolio(g)

      50 %      50 %    MS Portfolio LLC      1,060,000  

South Plains Mall(d)

      60 %      60 %    Pacific Premier Retail LLC      1,136,000  

Twenty Ninth Street

      51 %      51 %    Macerich HHF Centers LLC      845,000  

Tysons Corner Center

      50 %      50 %    Tysons Corner LLC      1,971,000  

Tysons Corner Center-Office

      50 %      50 %    Tysons Corner Property LLC      174,000  

Tysons Tower

      50 %      50 %    Tysons Corner Property LLC      529,000  

VITA Tysons Corner Center

      50 %      50 %    Tysons Corner Property LLC      510,000  

Washington Square(d)

      60 %      60 %    Pacific Premier Retail LLC      1,296,000  

West Acres

      19 %      19 %    West Acres Development, LLP      691,000  

One Westside(h)

      25 %      25 %    HPP-MAC WSP, LLC      680,000  

 

(a)

This column reflects the Company’s legal ownership in the listed properties as of March 31, 2020. Legal ownership may, at times, not equal the Company’s economic interest in the listed properties because of various provisions in certain joint venture agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses and payments of preferred returns. As a result, the Company’s actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with its legal ownership interests. Substantially all of the Company’s joint venture agreements contain rights of first refusal, buy-sell provisions, exit rights, default dilution remedies and/or other break up provisions or remedies which are customary in real estate joint venture agreements and which may, positively or negatively, affect the ultimate realization of cash flow and/or capital or liquidation proceeds.

 

25

The Macerich Company

Joint Venture List as of March 31, 2020

 

(b)

Economic ownership represents the allocation of cash flow to the Company as of March 31, 2020, except as noted below. In cases where the Company receives a current cash distribution greater than its legal ownership percentage due to a capital account greater than its legal ownership percentage, only the legal ownership percentage is shown in this column. The Company’s economic ownership of these properties may fluctuate based on a number of factors, including mortgage refinancings, partnership capital contributions and distributions, and proceeds and gains or losses from asset sales, and the matters set forth in the preceding paragraph.

(c)

Includes GLA attributable to anchors (whether owned or non-owned) and mall and freestanding stores as of March 31, 2020.

(d)

These centers have a former Sears store which is owned by MS Portfolio LLC, see footnote (g) below. The GLA of the former Sears store, or tenant replacing the former Sears store, at the seven centers indicated with footnote (d) in the table above is included in Total GLA at the center level. The GLA for the former Sears store at these seven centers plus the GLA of the former Sears store at two wholly owned centers, Danbury Fair Mall and Vintage Faire Mall, are also aggregated into the 1,060,000 square feet in the MS Portfolio LLC above.

(e)

In October 2018, the Company’s joint venture partner in Broadway Plaza sold its 50% interest to a third party investor. Thereafter, the joint venture restated its governing documents and changed its name to Macerich HHF Broadway Plaza LLC.

(f)

The joint venture entity was formed in September 2009. Upon liquidation of the partnership, distributions are made in the following order: to the third-party partner until it receives a 13% internal rate of return on and of its aggregate unreturned capital contributions; to the Company until it receives a 13% internal rate of return on and of its aggregate unreturned capital contributions; and, thereafter, pro rata 35% to the third-party partner and 65% to the Company.

(g)

On April 30, 2015, Sears Holdings Corporation (“Sears”) and the Company announced that they had formed a joint venture, MS Portfolio LLC. Sears contributed nine stores (located at Arrowhead Towne Center, Chandler Fashion Center, Danbury Fair Mall, Deptford Mall, Freehold Raceway Mall, Los Cerritos Center, South Plains Mall, Vintage Faire Mall and Washington Square) to the joint venture and the Company contributed $150 million in cash to the joint venture. On July 7, 2015, Sears assigned its ownership interest in MS Portfolio LLC to Seritage MS Holdings LLC. The Company expects to create additional value through re-leasing the former Sears boxes. For example, Primark has leased space in portions of the Sears stores at Danbury Fair Mall and Freehold Raceway Mall. Refer to the Development Pipeline Forecast on page 31 for details of the Former Sears Redevelopments at these properties.

(h)

Construction is underway to convert former Regional Shopping Center Westside Pavilion, which closed in January 2019, into an approximately 584,000 square foot Class A creative office campus called One Westside leased solely to Google, while maintaining approximately 96,000 square feet of adjacent entertainment and retail space at 10850 Pico Boulevard. The Company contributed the existing buildings and land valued at $190.0 million to the joint venture on August 31, 2018.

 

26

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Debt Summary (at Company’s pro rata share) (a)

 

     As of March 31, 2020  
     Fixed Rate     Floating
Rate		     Total  
     (Dollars in thousands)  

Mortgage notes payable

    $ 3,957,518     $ 427,162     $ 4,384,680  

Bank and other notes payable

      400,000       1,078,006       1,478,006  
  

 

 

    

 

 

    

 

 

  

Total debt per Consolidated Balance Sheet

      4,357,518       1,505,168       5,862,686  

Adjustments:

       

Less: Noncontrolling interests or financing arrangement share of debt from consolidated joint ventures

      (359,174 )      —         (359,174 ) 
  

 

 

    

 

 

    

 

 

  

Adjusted Consolidated Debt

      3,998,344       1,505,168       5,503,512  

Add: Company’s share of debt from unconsolidated joint ventures

      3,019,492       194,881       3,214,373  
  

 

 

    

 

 

    

 

 

  

Total Company’s Pro Rata Share of Debt

    $ 7,017,836     $ 1,700,049     $ 8,717,885  
  

 

 

    

 

 

    

 

 

  

Weighted average interest rate

      3.93 %      2.85 %      3.72 % 

Weighted average maturity (years)

          4.85  

 

(a)

The Company’s pro rata share of debt represents (i) consolidated debt, minus the Company’s partners’ share of the amount from consolidated joint ventures (calculated based upon the partners’ percentage ownership interest); plus (ii) the Company’s share of debt from unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest). Management believes that this measure provides useful information to investors regarding the Company’s financial condition because it includes the Company’s share of debt from unconsolidated joint ventures and, for consolidated debt, excludes the Company’s partners’ share from consolidated joint ventures, in each case presented on the same basis. The Company has several significant joint ventures and presenting its pro rata share of debt in this manner can help investors better understand the Company’s financial condition after taking into account the Company’s economic interest in these joint ventures. The Company’s pro rata share of debt should not be considered as a substitute to the Company’s total debt determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

 

27

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Outstanding Debt by Maturity Date

 

    As of March 31, 2020  

Center/Entity (dollars in thousands)

  Maturity
Date		     Effective
Interest
Rate (a)		     Fixed     Floating     Total Debt
Balance (a)		  

I. Consolidated Assets:

          

Danbury Fair Mall

     10/01/20       5.53 %    $ 192,792       —       $ 192,792  

Fashion Outlets of Niagara Falls USA

     10/06/20       4.89 %      105,559       —         105,559  

Green Acres Mall

     02/03/21       3.61 %      275,965       —         275,965  

The Macerich Partnership, L.P.—Line of Credit (b)(c)

     07/06/21       4.30 %      400,000       —         400,000  

Tucson La Encantada

     03/01/22       4.23 %      63,251       —         63,251  

Pacific View

     04/01/22       4.08 %      117,391       —         117,391  

Oaks, The

     06/05/22       4.14 %      185,886       —         185,886  

Towne Mall

     11/01/22       4.48 %      20,168       —         20,168  

Chandler Fashion Center (d)

     07/05/24       4.18 %      127,865       —         127,865  

Victor Valley, Mall of

     09/01/24       4.00 %      114,748       —         114,748  

Queens Center

     01/01/25       3.49 %      600,000       —         600,000  

Vintage Faire

     03/06/26       3.55 %      250,895       —         250,895  

Fresno Fashion Fair

     11/01/26       3.67 %      323,708       —         323,708  

SanTan Village Regional Center (e)

     07/01/29       4.34 %      186,157       —         186,157  

Freehold Raceway Mall (d)

     11/01/29       3.94 %      199,608       —         199,608  

Kings Plaza Shopping Center

     01/01/30       3.71 %      535,219       —         535,219  

Fashion Outlets of Chicago

     02/01/31       4.61 %      299,132       —         299,132  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total Fixed Rate Debt for Consolidated Assets

      4.01 %    $ 3,998,344     $ —       $ 3,998,344  
   

 

 

    

 

 

    

 

 

    

 

 

  

Green Acres Commons (c)

     03/29/21       4.29 %    $ —       $ 129,157     $ 129,157  

The Macerich Partnership, L.P.—Line of Credit (b)(c)

     07/06/21       2.67 %      —         1,078,006       1,078,006  

Santa Monica Place (c)

     12/09/22       2.30 %      —         298,005       298,005  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total Floating Rate Debt for Consolidated Assets

      2.74 %    $ —       $ 1,505,168     $ 1,505,168  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total Debt for Consolidated Assets

      3.66 %    $ 3,998,344     $ 1,505,168     $ 5,503,512  
   

 

 

    

 

 

    

 

 

    

 

 

  

II. Unconsolidated Assets (At Company’s pro rata share):

 

        

FlatIron Crossing (51%)

     01/05/21       2.81 %    $ 114,632     $ —       $ 114,632  

One Westside—defeased (25%)

     10/01/22       4.77 %      33,551       —         33,551  

Washington Square Mall (60%)

     11/01/22       3.65 %      327,967       —         327,967  

Deptford Mall (51%)

     04/03/23       3.55 %      89,876       —         89,876  

Scottsdale Fashion Square (50%)

     04/03/23       3.02 %      221,581       —         221,581  

Tysons Corner Center (50%)

     01/01/24       4.13 %      370,727       —         370,727  

South Plains Mall (60%)

     11/06/25       4.22 %      120,000       —         120,000  

Twenty Ninth Street (51%)

     02/06/26       4.10 %      76,500       —         76,500  

Country Club Plaza (50%)

     04/01/26       3.88 %      157,069       —         157,069  

Lakewood Center (60%)

     06/01/26       4.15 %      213,666       —         213,666  

Kierland Commons (50%)

     04/01/27       3.98 %      106,295       —         106,295  

Los Cerritos Center (60%)

     11/01/27       4.00 %      315,000       —         315,000  

Arrowhead Towne Center (60%)

     02/01/28       4.05 %      240,000       —         240,000  

North Bridge, The Shops at (50%)

     06/01/28       3.71 %      187,058       —         187,058  

Corte Madera, The Village at (50.1%)

     09/01/28       3.53 %      112,424       —         112,424  

West Acres—Development (19%)

     10/10/29       3.72 %      176       —         176  

Tysons Tower (50%)

     11/11/29       3.38 %      94,394       —         94,394  

Broadway Plaza (50%)

     04/01/30       4.19 %      224,475       —         224,475  

West Acres (19%)

     03/01/32       4.61 %      14,101       —         14,101  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total Fixed Rate Debt for Unconsolidated Assets

      3.84 %    $ 3,019,492     $ —       $ 3,019,492  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

28

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Outstanding Debt by Maturity Date

 

    As of March 31, 2020  

Center/Entity (dollars in thousands)

  Maturity
Date		     Effective
Interest
Rate (a)		     Fixed     Floating     Total Debt
Balance (a)		  

Atlas Park (50%) (c)

     10/28/21       4.54 %    $ —       $ 35,889     $ 35,889  

Fashion District Philadelphia (50%)

     01/22/23       3.58 %      —         149,632       149,632  

Boulevard Shops (50%)

     12/05/23       3.83 %      —         9,262       9,262  

One Westside—Development (25%) (c)

     12/18/24       3.44 %      —         98       98  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total Floating Rate Debt for Unconsolidated Assets

       3.77 %    $ —       $ 194,881     $ 194,881  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total Debt for Unconsolidated Assets

      3.83 %    $ 3,019,492     $ 194,881     $ 3,214,373  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total Debt

      3.72 %    $ 7,017,836     $ 1,700,049     $ 8,717,885  
   

 

 

    

 

 

    

 

 

    

 

 

  

Percentage to Total

        80.50 %      19.50 %      100.00 % 

 

(a)

The debt balances include the unamortized debt premiums/discounts and loan finance costs. Debt premiums/discounts represent the excess of the fair value of debt over the principal value of debt assumed in various acquisitions. Debt premiums/discounts and loan finance costs are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The annual interest rate in the table represents the effective interest rate, including the debt premiums/discounts and loan finance costs.

(b)

The revolving line of credit includes an interest rate swap that effectively converts $400 million of the outstanding balance to fixed rate debt through September 30, 2021.

(c)

The maturity date assumes that all available extension options are fully exercised and that the Company and/or its affiliates do not opt to refinance the debt prior to these dates.

(d)

This property is owned by a consolidated joint venture. The above debt balance represents the Company’s pro rata share of 50.1%.

(e)

This property is owned by a consolidated joint venture. The above debt balance represents the Company’s pro rata share of 84.9%.

 

29

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Development Pipeline Forecast

(Dollars in millions)

as of March 31, 2020

In-Process Developments and Redevelopments:

 

Property

  

Project Type

  

Total Cost(a)(b)
at 100%

  

Ownership
%

  

Total Cost(a)(b)
Pro Rata

   Pro Rata
Capitalized Costs(b)
Incurred-to-date
3/31/2020		    

Expected
Delivery(a)

  

Stabilized
Yield(a)(b)(c)

One Westside fka Westside Pavilion
Los Angeles, CA

   Redevelopment of an existing retail center into an approximately 584,000 sf Class A creative office campus leased solely to Google  

$500 - $550(d)

   25.0%  

$125 - $138(d)

   $ 55    

Q3 2022(e)

   7.50% - 8.00%(d)

 

(a)

Much of this information is estimated and may change from time to time. See the Company’s forward-looking disclosure on pages 1 and 2 for factors that may affect the information provided in this table.

(b)

This excludes GAAP allocations of non cash and indirect costs.

(c)

Stabilized Yield is calculated based on stabilized income after development divided by project direct costs excluding GAAP allocations of non cash and indirect costs.

(d)

Includes $140 million ($35 million at the Company’s share), which is an allocable share of the total $190 million purchase price paid by the joint venture in August 2018 for the existing buildings and land.

(e)

Monthly base rent payments are anticipated to commence during the third quarter of 2022, with base rent abatements from the second through ninth month following rent commencement.

 

30

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Development Pipeline Forecast (Continued)

(Dollars in millions)

as of March 31, 2020

Pipeline of Former Sears Redevelopments:

   

Project Type

    Ownership      Total Cost (a)(b)
Pro rata		    Pro rata
Capitalized Costs
3/31/20
Incurred-to-Date(b)		      Stabilized
Yield(a)(b)(c)
  Retail Redevelopment       $75 - $90    $ 26      8.0% - 9.0%
  Mixed-Use Densification

 

    55 - 70      3      9.0% - 10.5%

(d)

   Future Phases       TBD      0      TBD
       

 

   

 

 

     
  Total      various      $130 - $160    $ 29     
       

 

   

 

 

     

 

   

Property

   

Description

    Expected
Delivery(e)		  
  Retail Redevelopment:   
(f)   Arrowhead Towne Center    Redevelop existing store with retail uses      TBD  
(f)   Chandler Fashion Center    Redevelop existing store for a Harkins entertainment concept and additional retail uses      TBD  
(f)   Deptford Mall    Redevelop existing store for Crunch Fitness, Dick’s Sporting Goods, Round 1 and additional retail uses      TBD  
(f)   South Plains Mall    Demolish box; site densification with retail and restaurants uses      TBD  
(f)   Vintage Faire Mall    Redevelop existing store for Dave & Busters, Dick’s Sporting Goods and additional retail uses      TBD  
  Wilton Mall    Redevelop existing store with a medical center/medical office use      Q1-2020  
  Mixed-Use Densification:   
(f)   Los Cerritos Center    Demolish box; site densification with residential, hotel and restaurant uses      TBD  
(f)   Washington Square    Demolish box; site densification with hotel, entertainment and restaurant uses      TBD  

 

 

(a)

Much of this information is estimated and may change from time to time. See the Company’s forward-looking disclosure on pages 1 and 2 for factors that may affect the information provided in this table. This estimated range of incremental redevelopment costs could increase if the Company and its joint ventures decide to expand the scope as the redevelopment plans get refined.

(b)

This excludes GAAP allocations of non cash and indirect costs.

(c)

Stabilized Yield represents estimated replacement net operating income at stabilization divided by direct redevelopment costs, excluding GAAP allocations of non cash and indirect costs.

(d)

Future demand-driven development phases are possible at Los Cerritos Center and Washington Square.

(e)

Given the uncertainties resulting from the COVID-19 pandemic, the expected delivery dates for these projects are not currently determinable.

(f)

These former Sears stores are owned by a 50/50 joint venture between the Company and Seritage Growth Properties.

 

31

The Macerich Company

Corporate Information

Stock Exchange Listing

New York Stock Exchange

Symbol: MAC

The following table shows high and low sales prices per share of common stock during each quarter in 2020, 2019 and 2018 and dividends per share of common stock declared and paid by quarter:

 

     Market Quotation
per Share		      Dividends  

Quarter Ended:

    High      Low      Declared
and Paid		  

March 31, 2018

    $ 69.73      $ 54.35      $ 0.74  

June 30, 2018

    $ 60.00      $ 53.55      $ 0.74  

September 30, 2018

    $ 60.95      $ 54.36      $ 0.74  

December 31, 2018

    $ 55.54      $ 40.90      $ 0.75  

March 31, 2019

    $ 47.05      $ 41.63      $ 0.75  

June 30, 2019

    $ 44.73      $ 32.04      $ 0.75  

September 30, 2019

    $ 34.15      $ 27.54      $ 0.75  

December 31, 2019

    $ 31.77      $ 25.53      $ 0.75  

March 31, 2020

    $ 26.98      $ 5.49      $ 0.75  

Dividend Reinvestment Plan

Stockholders may automatically reinvest their dividends in additional common stock of the Company through the Direct Investment Program, which also provides for purchase by voluntary cash contributions. For additional information, please contact Computershare Trust Company, N.A. at 877-373-6374.

 

Corporate Headquarters
The Macerich Company
401 Wilshire Boulevard, Suite 700
Santa Monica, California 90401
310-394-6000
www.macerich.com		    Transfer Agent
Computershare
P.O. Box 30170
College Station, TX 77842-3170
877-373-6374
www.computershare.com

Macerich Website

For an electronic version of our annual report, our SEC filings and documents relating to Corporate Governance, please visit macerich.com.

Investor Relations

 

Jean Wood
Vice President, Investor Relations
Phone: 424-229-3366
jean.wood@macerich.com		   

 

32