Macerich Co. said its earnings jumped in the fourth quarter, with funds from operations up 9 percent, as the shopping mall owner saw growth in rents and a decline in operating expenses.
The Santa Monica company, which operates as a real estate investment trust, on Friday reported fourth quarter net income of $163 million ($1.23 a share), compared with $23.6 million (18 cents) in the same period a year earlier. Revenue rose 6.8 percent to nearly $218 million, with annual sales from tenants up 12.9 percent to $489 a square foot.
Funds from operations were nearly $119 million (83 cents a share) compared with $109 million (77 cents) in the same period a year earlier. FFO is a key REIT metric that adds depreciation and amortization expenses back into earnings to get a better picture of cash performance.
Adjusted FFO was 87 cents a share, consistent with projections from analysts surveyed by Thomson Reuters. Reported revenue exceeded analysts’ expectations of $194 million.
“Growth was fueled by strong fundamentals in our portfolio with solid tenant sales growth, good releasing spreads and continued same-center net operating income growth," said Chief Executive Arthur Coppola in a statement.
Shares closed up 6 cents, or less than 1 percent, to $55.12 on the New York Stock Exchange.