Shares of Macerich Co. jumped 7 percent Tuesday after the shopping mall owner boosted its outlook for the rest of the year, despite reporting lower-than-expected third-quarter results.
The Santa Monica real estate company reported net income fell 71 percent to $5.7 million (8 cents a share), compared with net income of $19.4 million (27 cents) a year ago. Revenue rose 1 percent to almost $226 million.
The company said funds from operations (FFO), which adds such items as amortization and depreciation back to profit, fell 8 percent to $102 million ($1.16). On average, analysts polled by Thomson Reuters expected per share FFO of $1.19.
Even so, the company lifted its earnings guidance for the year to a range of $2.49 to $2.64 a share, and expects FFO to range from $5.35 to $5.50 per share, up from its prior guidance for $5 to $5.15 per share. Analysts had been expecting per share FFO of $4.99.
"There's little question that high-quality malls continue to perform well in the current environment as they often do in a soft economy," said RBC Capital Markets analyst Rich Moore, in a note to investors.
Macerich shares closed up $2.42 to $30.51 on the New York Stock Exchange.
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