Macerich sells assets in strong fourth quarter performance
Macerich announced this week its results of operations for the quarter ended on December 31, 2016.
Net income for the quarter was $37.1 million, or $0.26 per diluted share, compared to $415.0 million, or $2.65 per diluted share, in the previous year. The previous year’s net income included a $311 million gain on selling joint venture interests in four malls.
Diluted funds from operations were $180.6 million, or $1.17 per diluted share, compared to $186.4 million, or $1.12 per diluted share. Mall tenant annual sales per square foot were $630 compared to $635 in the previous year and were $650 on a same center basis compared to $643 in the prior year.
In addition, mall portfolio occupancy decreased slightly to 95.4% from 96.1%.
"As borne out by the continued strength in our operating results and portfolio metrics, Macerich remains well-positioned in an ever-changing and evolving retail landscape," said The Company's chairman and chief executive officer, Arthur Coppola. "Furthermore, we have continued to re-shape our portfolio by selling two non-core assets with the proceeds slated for reinvestment in our highly value-accretive pipeline of development/redevelopment projects in densely-populated hub and gateway cities."
Macerich sold the two non-core assets, Northgate Mall and Cascade Mall, for a combined price of $170 million. The transaction resulted in net proceeds after debt repayment of approximately $107 million.
For fiscal 2017, Macerich expects diluted earnings per share to range from $1.26 to $1.36 and funds from operations to range from $3.90 to $4.00.
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