Nov. 5, 2009 (PR Newswire) -- SANTA MONICA, Calif., Nov. 5 /PRNewswire-FirstCall/ -- The Macerich Company (NYSE: MAC) today announced results of operations for the quarter ended September 30, 2009 which included total funds from operations ("FFO") diluted of $88.7 million or $.97 per share-diluted, compared to $1.12 per share-diluted for the quarter ended September 30, 2008. For the nine months ended September 30, 2009, FFO-diluted was $251.4 million, or $2.80 per share-diluted compared to $290.7 million or $3.29 per share-diluted for the nine months ended September 30, 2008. Net income available to common stockholders for the quarter ended September 30, 2009 was $142.8 million or $1.75 per share-diluted compared to $2.6 million or $.03 per share-diluted for the quarter ended September 30, 2008. Included in net income for the quarter was $161.6 million of gain on sale of assets which primarily resulted from the sale of a joint venture interest in Queens Center. For the nine months ended September 30, 2009, net income available to common stockholders was $135.1 million or $1.71 per share-diluted compared to $110.9 million or $1.50 per share-diluted for the nine months ended September 30, 2008. The Company's definition of FFO is in accordance with the definition provided by the National Association of Real Estate Investment Trusts ("NAREIT"). A reconciliation of net income to FFO and net income per common share-diluted ("EPS") to FFO per share-diluted is included in the financial tables accompanying this press release.

Recent Activity:

--  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.
--  The Company completed three joint venture transactions generating over
$434 million of cash proceeds.
--  Portfolio occupancy at September 30, 2009 was 91.0% compared to 90.5% at
June 30, 2009 and 92.8% at September 30, 2008.
--  On October 27, 2009, the Company closed a common stock offering of 13.8
million shares that raised net proceeds of $383 million.

--  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.

Commenting on the quarter, Arthur Coppola chairman and chief executive officer of Macerich stated, "We had a significant amount of capital activity during the quarter having completed three joint ventures that netted over $434 million in cash proceeds. We systematically continued our efforts to de-leverage our balance sheet with the recently completed common equity offering. Our liquidity and debt reduction plan has also included selling non core assets and issuing stock dividends. Year to date we have generated over $1 billion in cash that has been applied towards our de-leveraging goals."

Redevelopment and Development Activity

On October 15, 2009, Macerich opened the first phase of the Barneys New York-anchored expansion at Scottsdale Fashion Square. Joining Barneys New York are first-to-market retailers Aqua Beachwear, Arthur, Christian Audigier, Love Culture, True Religion and Michael Stars along with Aveda Lifestyle Salon, Forever 21 and three restaurants - Marcella's Ristorante, Modern Steak, and Barneys New York's exclusive Fred's dining concept. In addition, the first Microsoft store in the country opened at Scottsdale Fashion Square.

At Santa Monica Place, Macerich recently announced that Burberry, Michael Kors, Bernini, Angl, Swarovski and mini-anchors CB2 and Nike are the latest brands planned to open. The new Santa Monica Place is currently under construction and slated to open in August 2010 with anchors Bloomingdale's and Nordstrom. Macerich also announced nine restaurants for the third-level dining deck and completed deals with Tiffany & Co. and Louis Vuitton. To date, Macerich has announced nearly 40 retailers and restaurants, including Kitson LA, BCBGMAXAZRIA, Coach, Joe's Jeans, True Religion, Ed Hardy, Love Culture, Michael Brandon and restaurant concepts La Sandia, Zengo, Pizza Antica, XINO and Ozumo Sushi.

Phase I of Northgate Mall, a 722,948-square-foot regional mall under redevelopment in Marin County, is scheduled to open in November 2009. Kohl's opened successfully on September 30, 2009 replacing a Mervyn's site. Among the retailers opening in the first phase are H&M, Children's Place, Chipotle, Gymboree, Hot Topic, PacSun, Panera Bread, See's Candies, Sunglass Hut, Tilly's, Tomatina and Vans. Retailers will continue to open in phases into 2010.

Financing Activity

During the quarter $446 million in unsecured term notes, due in 2010, were paid off. Capital used for the debt reduction was primarily from proceeds from joint venture sales and operating cash retained by reducing the dividend and paying 90% of the dividend in stock.

Macerich also announced the closing of an $85 million loan on Paradise Valley Mall in Phoenix, Arizona. The loan on the previously unencumbered asset bears interest at a floating rate with the initial rate of 5.50%. The term of the loan is three years, extendable to five years at the Company's election.

After considering extensions and other loans committed but not yet closed, the Company's remaining debt maturities for 2009 are only $30 million and $268 million for 2010. All of these debt maturities are on secured property loans.

Macerich is a fully integrated self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. The Company is the sole general partner and owns an 89% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 76 million square feet of gross leaseable area consisting primarily of interests in 72 regional malls. Additional information about Macerich can be obtained from the Company's website at www.macerich.com.

Investor Conference Call

The Company will provide an online Web simulcast and rebroadcast of its quarterly earnings conference call. The call will be available on The Macerich Company's website at www.macerich.com (Investing Section) and through CCBN at www.earnings.com. The call begins today, November 5, 2009 at 10:30 AM Pacific Time. To listen to the call, please go to any of these websites at least 15 minutes prior to the call in order to register and download audio software if needed. An online replay at www.macerich.com (Investing Section) will be available for one year after the call.

The Company will publish a supplemental financial information package which will be available at www.macerich.com in the Investing Section. It will also be furnished to the SEC as part of a Current Report on Form 8-K.

Note: This release contains statements that constitute forward-looking statements. 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 to vary materially from those anticipated, expected or projected. Such factors include, among others, general industry, economic and 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 and terms, 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, acquisitions and dispositions; the liquidity of real estate investments, governmental actions and initiatives (including legislative and regulatory changes); environmental and safety requirements; and terrorist activities which could adversely affect all of the above factors. The reader is directed to the Company's various filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2008 and the Quarterly Reports on Form 10-Q, for a discussion of such risks and uncertainties, which discussion is incorporated herein by reference.