The Macerich Company on Wednesday said net income increased 38 percent to $24.6 million or 15 cents per share for the quarter ended March 31, 2015, from $17.8 million or 13 cents per share in the 2014 period.
Funds from operations for the first quarter of 2015 rose 11 percent to $135 million or 79 cents a share from $121.6 million or 81 cents a share in the first quarter of 2014. Included in the results is an early extinguishment of debt of $2.2 million, or 1 cent a share, and $13.6 million, or 8 cents a share, of expenses related to an unsolicited takeover attempt.
Mall tenant annual sales increased 7.4 percent in the first quarter to $607 a square foot from $565 a share foot in last year’s first quarter. On a same center basis annual sales increased 4.3 percent to $604 in the 2015 period from $579.
Occupancy for the Macerich mall portfolio was 95.4 percent at March 31, compared with 95.1 percent at March 31, 2014.
EBITDA for the first quarter rose 3.7 percent to $192,193 from $185,420, while EBITDA of non-comparable centers was $214,295 in the 2015 first quarter versus $204,083 last year.
“Over the past several years, Macerich has executed an extensive and successful portfolio transformation by selling lower quality malls and recycling the capital into value-enhancing redevelopment opportunities”
Macerich increased its previous FFO per share guidance to the range of $3.83 to $3.93 from $3.80 to $3.90.
A major expansion is underway at Broadway Plaza, in Walnut Creek, Calif., where 235,000 square feet will be added to the 774,000-sqaure-foot mall, which is anchored by Macy’s, Nordstrom and Neiman Marcus. The expansion will open in phases beginning in the fall.
At Tyson’s Corner Center, Macerich’s 2.1 million square foot super regional mall in Tyson’s Corner, Va., a 527,000-square-foot office tower opened in August 2014, a 300-room Hyatt Regency hotel opened on April 14 and a 30-story, luxury residential tower is scheduled to open in June.
Macerich owns 55 million square feet of real estate, primarily consisting of interests in 51 regional shopping centers.