Macerich Co. (MAC), a real estate investment trust, Thursday reported a rise in profit for the third quarter, despite lower revenues, due to a reported gain on the sale a joint venture interest in Queens Center. The Santa Monica, California-based company's funds from operations or FFO, however, declined from the previous year.
Income from continuing operations for the third quarter rose to $164.37 million from $4.40 million in the previous year.
Net income available to common shareholders for the quarter was $142.84 million or $1.75 per share, up from $2.64 million or $0.03 per share a year ago. Results for the quarter include non-controlling interests in OP of $21.52 million, gain on the sale of assets of $161.58 million, depreciation and amortization on consolidated assets of $61.86 million and depreciation and amortization on joint ventures of $28.55 million.
FFO declined to $88.65 million or $0.97 per share from $98.56 million or $1.12 per share last year.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.92 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the period declined to $200.66 million from $225.81 million in the previous year. Analysts expected revenues of $200.33 million for the third quarter.
Minimum rents declined to $119.90 million from $133.98 million and percentage rents declined to $3.91 million from $4.11 million a year ago. Revenue from tenant recoveries were $59.75 million, down from $70.06 million last year. Management companies' revenues were $10.45 million, compared to $10.26 million in the previous year. Other income declined to $6.65 million from $7.39 million last year.
Shopping center and operating expenses declined to $65.16 million from $74.10 million a year ago. Depreciation and amortization expenses were $61.86 million, down from $66.64 million in the previous year. Interest expense declined to $65.78 million from $73.89 million last year.
The company reported a gain on sale of assets for the quarter of $161.58 million which primarily resulted from the sale of a joint venture interest in Queens Center, compared to a loss of $5.18 million last year.
During the quarter, Macerich signed 294,000 square feet of specialty store leases with average initial rents of $40.98 per square foot. Starting base rent on new lease signings was 14.2% higher than the expiring base rent.
Tenant sales per square foot were $418 for the twelve month period ended September 30, 2009, compared to sales per square foot of $441 for the year ended December 31, 2008.
For the nine-month period, net income rose to $135.12 million or $1.71 per share from $110.97 million or $1.50 per share last year. FFO declined to $251.41 million or $2.80 per share from $290.66 million or $3.29 per share a year ago. Total revenues for the period declined to $617.36 million from $662.58 million in the previous year.
MAC is currently trading at $29.81, up 0.02 or 0.07%, on a volume of $945K shares on the NYSE.
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