Macerich Co. said that it stopped losing money in the first quarter, but its funds from operations fell short of Wall Street forecasts.
The Santa Monica shopping mall owner on Thursday reported net income of $34,000, (0 cents per share), compared with a net loss of $6.4 million (-8 cents) a year earlier. Revenue rose 5 percent to $191 million.
The real estate investment trust owns or has interest in 70 regional malls including Santa Monica Place in Santa Monica, Westside Pavilion in Los Angeles and Stonewood Center in Downey.
Funds from operations were up 1.5 percent to $73.7 million (52 cents per share), Analysts surveyed by Thomson Reuters on average expected the company to report per-share FFO of 58 cents on revenue of less than $190 million. FFO is a key REIT metric that adds depreciation and amortization expenses back into earnings to get a better picture of cash performance.
In guidance for the full year, Macerich reconfirmed its previous per-share FFO of between $2.78 to $2.94, in line with the Wall Street consensus of $2.86.
“We are optimistic about our operating performance and continue to see strong operating results, with occupancies up significantly, good leasing activity and a continued trend of solid retail sales growth,” said Chief Executive Arthur Coppola in a statement.
Shares closed up 12 cents, or less than 1 percent, to $50.70 on the New York Stock Exchange.
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