This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Macerich's CEO Discusses 1 2012 Results - Earnings Call Transcript

With Management company expense and REIT G&A expense were down, Management company expense was down approximately $3 million to $22.5 million, and REIT G&A was down to $4.5 million compared to $7.6 million in the first quarter of last year. That was due to the first quarter of 2011 being usually high in both of those categories as there was a full years' worth of bonuses accrued in the first quarter of 2011.

Subsequent to that, bonuses are accrued throughout the year with 25% of the estimated amount booked in each quarter. That change accounts for the drop in both categories for both REIT-G&A and Management company expense.

During the quarter, we also booked an impairment loss on Valley View. Valley View has been a hands and loans service since mid-2010. On April 23rd, last week, it was sold for approximately $33 million and concurrently with the sale, the debt and all the accrued interest was forgiven. As of quarter end, because the sale price that was expected in April was less than our carrying value of $88 million we recorded a impairment write-down of $55 million in the first quarter of '12, that hits net income but not FFO.

Then in the second quarter we turned around, on April 23rd with the asset sale, we booked a gain on extinguishment of debt of $104 million. We have not included the impairment nor the gain on extinguishment of debt in our AFFO numbers. Valley View and the attached financial highlights of this morning's press release was included in discontinued operations.

Looking at our balance sheet, our debt to market cap at quarter-end was 42.3%. Net debt to EBITDA was 7.6 times and our interest coverage ratio is a very healthy 2.57 times. Looking at recent loan activity, in March we closed on a $140 million loan on Pacific View. That was a non-encumbered asset. We put a 10-year fixed rate financing in place at 4.08%. Also in March, we paid off $438 million of the remaining convertibles debentures. Those debentures are now paid in full.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.26 -0.77%
FB $101.50 2.00%
GOOG $684.03 0.87%
TSLA $163.06 10.00%
YHOO $27.10 1.00%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs