Macerich Co. on Monday said its funds from operations rose 29 percent in the second quarter, boosted partly by higher occupancy.
The Santa Monica shopping mall owner reported its funds from operations, a key metric used by real estate investment trusts that removes the profit-reducing effect of depreciation, was $77.5 million (57 cents per share). That was up from $59.9 million (67 cents) a year earlier. There were more shares in this year’s quarter than in the 2009 quarter.
Analysts surveyed by Thomson Reuters on average expected funds from operations would be 61 cents per share.
The company, which last Friday held a grand opening for its renovated Santa Monica Place shopping center, also reported a significantly smaller net loss of $400,000 (-1 cent) compared with $21.7 million (-29 cents) a year earlier.
By the end of the quarter, combined occupancy at its 71 regional malls was 91.8 percent, compared with 90.5 percent a year earlier. Mall total tenant sales were up 3.3 percent.
"We saw very solid and improving results for the quarter,” Chief Executive Arthur Coppola said in a statement. “In addition we continue to see improvement in the capital markets, and we have been able to capitalize on that with some very attractive financings.”
Shares were unchanged at $41.73 in midday trading on the New York Stock Exchange.
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