MACERICH CO
For the period ended Jun 30, 2024. Filed Aug 8, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 8, 2024
MAC$24.84-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-09.
0000912242-24-000083
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-08.
0000912242-24-000125
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 162 previous paragraphs and 202 current paragraphs.
101 unchanged; 56 reworded; 40 added; 4 removed; 1 previous and 5 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (40)
Current report
•expectations regarding the Company's Path Forward Plan and its ability to meet the goals established under such plan;
Current report
On May 14, 2024, the Company acquired its joint venture partner's 40% interest in each of Arrowhead Towne Center and South Plains Mall for a purchase price of $36.4 million and the assumption of its joint venture partner's share of debt for each property. The Company now owns and has consolidated its 100% interests in Arrowhead Towne Center and South Plains Mall (See Note 15—Acquisitions in the Notes to the Consolidated Financial Statements).
Current report
On May 17, 2024, the Company acquired the former Sears parcel located at Inland Center for $5.4 million (See Note 15—Acquisitions in the Notes to the Consolidated Financial Statements).
Current report
On June 13, 2024, the partnership agreement between the Company and its joint venture partner was amended and as a result, the Company no longer accounts for its investment in Chandler Fashion Center as a financing arrangement. Effective June 13, 2024, the Company accounts for its investment in Chandler Fashion Center under the equity method of accounting (See Note 12—Financing Arrangement and Note 16—Dispositions in the Notes to the Consolidated Financial Statements).
Current report
On June 28, 2024, the Company's joint venture sold Country Club Plaza, a 971,000 square foot regional retail center in Kansas City, Missouri, for $175.6 million. Concurrent with the sale, the remaining amount owed by the joint venture under the $295.5 million loan ($147.7 million at the Company's share) was forgiven by the lender.
Current report
On June 28, 2024, the Company sold a former department store parcel at Valle Vista Mall in Harlingen, Texas for $7.1 million. The Company used the net proceeds to pay down debt (See "Liquidity and Capital Resources").
Current report
For the three and six months ended June 30, 2024, the Company and certain joint venture partners sold various land parcels in separate transactions, resulting in the Company’s share of the gain on sale of land of $1.3 million. The Company’s proceeds from these sales in the three and six months ended June 30, 2024 were $2.5 million. The Company used its share of the proceeds from these sales to pay down debt and for other general corporate purposes.
Current report
On July 31, 2024, the Company sold its 50% interest in Biltmore Fashion Park, a 611,000 square foot regional retail center in Phoenix, Arizona, for $110.0 million. The Company used the net proceeds to pay down debt (See "Liquidity and Capital Resources").
Current report
On June 27, 2024, the Company's joint venture in Chandler Fashion Center replaced the existing $256.0 million loan on the property with a new $275.0 million loan that bears interest at 7.06%, is interest only during the entire loan term and matures on July 1, 2029. The Company received a distribution of $17.7 million in connection with the refinancing.
Current report
The Company’s joint venture in FlatIron Crossing, a 1,393,000 square foot regional retail center in Broomfield, Colorado, is developing luxury, multi-family residential units, new/repurposed retail and food and beverage uses, and a community plaza, in addition to the redevelopment of the vacant former Nordstrom store located on the property. The Company's ownership percentage is expected to be 43.4% in the residential portion of the development and 51% in the remainder of the property. The total cost of the project is estimated to be between $240.0 million and $260.0 million, with $120.0 million and $130.0 million estimated to be the Company’s pro rata share. The Company has incurred $6.6 million of the total $13.0 million incurred by the joint venture as of June 30, 2024. The anticipated opening is in 2027.
Current report
The Path Forward Plan is a multi-pronged strategy to improve the Company's balance sheet, while also making inward-facing enhancements to both bolster company culture and improve key business processes to gain operating efficiencies. Essential goals of the Path Forward Plan include:
Current report
•Deleverage the capital structure, with a focus on reducing the Company's Net Debt to Adjusted EBITDA leverage ratio over the next three to four years;
Current report
•Invest in and fortify the Company's key assets in the portfolio;
Current report
•Proactively consolidate selected joint venture assets over time that are core to the Company's overall strategy;
Current report
•Deliver a post-deleveraging Funds From Operations ("FFO") launch point goal over the next three to four years;
Current report
•Achieve outstanding operational results through rigorous internal process improvements; and
Current report
•Position the Company to take an offensive stance on acquisitions, reinvestment and selected development.
Current report
Other revenue decreased from $11.7 million in 2023 to $10.8 million in 2024. This decrease is primarily due to other income related to the Same Centers.
Current report
Shopping center and operating expenses increased $0.5 million, or 0.7%, from 2023 to 2024. The increase in shopping center and operating expenses is attributed to increases of $1.5 million from the JV Transition Centers and $0.9 million from the Same Centers offset in part by decreases of $1.7 million from the Redevelopment Properties and $0.6 million from the Disposition Properties.
Current report
Leasing expenses increased from $8.4 million in 2023 to $9.6 million in 2024 primarily due to an increase in compensation expense.
Current report
REIT general and administrative expenses decreased $1.8 million from 2023 to 2024 primarily due to a decrease in compensation expense.
Current report
Interest expense decreased $14.9 million from 2023 to 2024. The decrease in interest expense is attributed to decreases of $21.7 million from the financing arrangement(See Note 12—Financing Arrangement in the Company's Notes to the Consolidated Financial Statements),$2.1 million from the Redevelopment Properties and $0.2 million from the Disposition Properties offset in part by $4.0 million from the JV Transition Centers, $1.1 million from the Same Centers and $0.6 million from higher outstanding balances and interest rates on the Company's revolving line of credit. Additionally, $3.4 million of the offset is attributable to Santa Monica Place, which includes default interest expense of $2.8 million. The decrease in interest expense from the financing arrangement is primarily due to the change in fair value of the underlying properties and the mortgage notes payable on the underlying properties.
Current report
Equity in loss of unconsolidated joint ventures increased $49.9 million from 2023 to 2024. The increase in equity in loss of unconsolidated joint ventures is primarily due to impairment losses of $53.7 million recognized as a result of the reduction in the estimated holding period of properties held by certain unconsolidated joint ventures.
Current report
The gain on sale or write down of assets, net increased $314.7 million from 2023 to 2024 primarily due to the gain of $334.3 million relating to the Company no longer accounting for its investment in Chandler Fashion Center as a financing arrangement (See Note 12 – Financing Arrangement and Note 16 – Dispositions in the Company’s Notes to the Consolidated Financial Statements) offset by an impairment loss of $12.7 million as a result of the reduction in the estimated holding period of a certain property.
Current report
Net Income (Loss):
Current report
Net income (loss) increased $279.9 million from 2023 to 2024. The increase in net income (loss) is primarily due to the gain on sale of assets discussed above offset in part by impairment losses recognized as a result of the reduction in the estimated holding periods of certain properties.
Current report
Comparison of Six Months Ended June 30, 2024 and 2023
Current report
Revenues:
Current report
Other revenue decreased from $20.7 million in 2023 to $19.7 million in 2024. This decrease is primarily due to other income related to the Same Centers.
Current report
Shopping Center and Operating Expenses:
Current report
Leasing Expenses:
Current report
REIT General and Administrative Expenses:
Current report
REIT general and administrative expenses decreased $1.1 million from 2023 to 2024 due to a decrease in compensation expense.
Current report
Depreciation and Amortization:
Current report
Depreciation and amortization decreased $1.8 million from 2023 to 2024. The decrease in depreciation and amortization is attributed to decreases of $7.4 million from the Same Centers and $0.9 million from the Disposition Properties offset in part by increases of $3.4 million from the JV Transition Centers and $0.9 million from the Redevelopment Properties. Additionally, $2.2 million of the offset is attributable to Santa Monica Place.
Current report
Interest Expense:
Current report
Gain on sale or write down of assets, net increased $274.9 million from 2023 to 2024. The increase is primarily due to the gain of $334.3 million relating to the Company no longer accounting for its investment in Chandler Fashion Center as a financing arrangement (See Note 12 – Financing Arrangement and Note 16 – Dispositions in the Company’s Notes to the Consolidated Financial Statements) offset by impairment losses of $48.7 million as a result of the reduction in the estimated holding period of certain properties.
Current report
Net Income (Loss):
Current report
(1)For the six months ended June 30, 2024, this includes the cash paid of $36.4 million on May 14, 2024, for the Company's acquisition of its joint venture partner's 40% interest in Arrowhead Towne Center and South Plains Mall. The total purchase price also included the assumption of the partner's share of debt. The Company now owns 100% of these regional retail centers. For the six months ended June 30, 2023, this includes the Company's acquisition of its joint venture partner's (Seritage Growth Partners) 50% interest in five former Sears parcels on May 18, 2023 for $46.7 million. The Company now owns 100% of these five parcels located at Chandler Fashion Center, Danbury Fair Mall, Freehold Raceway Mall, Los Cerritos Center and Washington Square (See Note 15—Acquisitions in the Notes to the Consolidated Financial Statements).
Current report
Funds From Operations ("FFO")
Removed paragraphs (4)
Previous report
REIT general and administrative expenses increased $0.7 million from 2023 to 2024 due to an increase in legal fees.
Previous report
(Loss) Gain on Sale or Write Down of Assets, net:
Previous report
(Loss) gain on sale or write down of assets, net increased $39.9 million from 2023 to 2024. The increase is primarily due to the impairment loss of $36.0 million at Santa Monica Place, as a result of the reduction in the estimated holding period of the property (See “—Financing Activities” in Management's Overview and Summary).
Reworded paragraphs (56)
Previous wording
Stockholders are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company or the industry to differ materially from the Company's future results, performance or achievements, or those of the industry, expressed or implied in such forward-looking statements. Such factors include, among others, general industry, as well as global, national, regional and local economic and business conditions, which will, among other things, affect demand for retail space or retail goods, availability and creditworthiness of current and prospective tenants, anchor or tenant bankruptcies, closures, mergers or consolidations, lease rates, terms and payments; elevated interest rates and inflation and its impact on the financial condition and results of operation of the Company, including as a result of any defaults on mortgage loans, and its tenants, availability, terms and cost of financing and operating expenses; adverse changes in the real estate markets including, among other things, competition from other companies, retail formats and technology, risks of real estate development and redevelopment (including rising inflation, supply chain disruptions and construction delays), acquisitions and dispositions; adverse impacts from any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies and the financial condition and results of operations of the Company and its tenants; the liquidity of real estate investments, governmental actions and initiatives (including legislative and regulatory changes); environmental and safety requirements; and terrorist activities or other acts of violence which could adversely affect all of the above factors. You are urged to carefully review the disclosures we make concerning these risks and other factors that may affect our business and operating results, including those made in "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, as well as our other reports filed with the Securities and Exchange Commission (the "SEC"), which disclosures are incorporated herein by reference. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. The Company does not intend, and undertakes no obligation, to update any forward-looking information to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, unless required by law to do so.
Current wording
Stockholders are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company or the industry to differ materially from the Company's future results, performance or achievements, or those of the industry, expressed or implied in such forward-looking statements. Such factors include, among others, general industry, as well as global, national, regional and local economic and business conditions, which will, among other things, affect demand for retail space or retail goods, availability and creditworthiness of current and prospective tenants, anchor or tenant bankruptcies, closures, mergers or consolidations, lease rates, terms and payments; elevated interest rates and inflation and its impact on the financial condition and results of operations of the Company, including as a result of any defaults on mortgage loans, and its tenants, availability, terms and cost of financing and operating expenses; adverse changes in the real estate markets including, among other things, competition from other companies, retail formats and technology, risks of real estate development and redevelopment (including rising inflation, supply chain disruptions and construction delays), acquisitions and dispositions; adverse impacts from any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies and the financial condition and results of operations of the Company and its tenants; the liquidity of real estate investments, governmental actions and initiatives (including legislative and regulatory changes); environmental and safety requirements; and terrorist activities or other acts of violence which could adversely affect all of the above factors. You are urged to carefully review the disclosures we make concerning these risks and other factors that may affect our business and operating results, including those made in "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, as well as our other reports filed with the Securities and Exchange Commission (the "SEC"), which disclosures are incorporated herein by reference. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. The Company does not intend, and undertakes no obligation, to update any forward-looking information to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, unless required by law to do so.
Previous wording
The Company is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company is the sole general partner of, and owns a majority of the ownership interests in, The Macerich Partnership, L.P. (the "Operating Partnership"). As of March 31, 2024, the Operating Partnership owned or had an ownership interest in 43 regional retail centers (including office, hotel and residential space adjacent to these shopping centers), three community/power shopping centers and one redevelopment property. These 47 regional retail centers, community/power shopping centers and one redevelopment property consist of approximately 47 million square feet of gross leasable area ("GLA") and are referred to herein as the "Centers". The Centers consist of consolidated Centers ("Consolidated Centers") and unconsolidated joint venture Centers ("Unconsolidated Joint Venture Centers"), unless the context otherwise requires. The property management, leasing and redevelopment of the Company's portfolio is provided by the Company's seven management companies (collectively referred to herein as the
Current wording
The Company is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company is the sole general partner of, and owns a majority of the ownership interests in, The Macerich Partnership, L.P. (the "Operating Partnership"). As of June 30, 2024, the Operating Partnership owned or had an ownership interest in 42 regional retail centers (including office, hotel and residential space adjacent to these shopping centers), three community/power shopping centers and one redevelopment property. These 46 regional retail centers, community/power shopping centers and one redevelopment property consist of approximately 45 million square feet of gross leasable area ("GLA") and are referred to herein as the "Centers". The Centers consist of consolidated Centers ("Consolidated Centers") and unconsolidated joint venture Centers ("Unconsolidated
Previous wording
"Management Companies"). The Company is a self-administered and self-managed real estate investment trust ("REIT") and conducts all of its operations through the Operating Partnership and the Management Companies.
Current wording
Joint Venture Centers"), unless the context otherwise requires. The property management, leasing and redevelopment of the Company's portfolio is provided by the Company's seven management companies (collectively referred to herein as the "Management Companies"). The Company is a self-administered and self-managed real estate investment trust ("REIT") and conducts all of its operations through the Operating Partnership and the Management Companies.
Previous wording
The following discussion is based primarily on the consolidated financial statements of the Company for the three months ended March 31, 2024 and 2023. It compares the results of operations for the three months ended March 31, 2024 to the results of operations for the three months ended March 31, 2023. It also compares the results of operations and cash flows for the three months ended March 31, 2024 to the results of operations and cash flows for the three months ended March 31, 2023.
Current wording
The following discussion is based primarily on the consolidated financial statements of the Company for the three and six months ended June 30, 2024 and 2023. It compares the results of operations for the three months ended June 30, 2024 to the results of operations for the three months ended June 30, 2023. It also compares the results of operations and cash flows for the six months ended June 30, 2024 to the results of operations and cash flows for the six months ended June 30, 2023.
Previous wording
property in Los Angeles, California, for $700.0 million. The existing $325.0 million loan on the property was repaid, and $77.6
Current wording
property in Los Angeles, California, for $700.0 million. The existing $324.6 million loan on the property was repaid, and $77.6
Previous wording
Effective May 9, 2023, the Company’s joint venture in Country Club Plaza defaulted on the $295.2 million ($147.6 million at the Company's pro rata share) non-recourse loan on the property. The Company’s joint venture is in negotiations with the lender on the terms of this non-recourse loan.
Current wording
Effective May 9, 2023, the Company’s joint venture in Country Club Plaza defaulted on the $295.2 million ($147.6 million at the Company's pro rata share) non-recourse loan on the property. The Company’s joint venture subsequently sold the property on June 28, 2024.
Previous wording
On March 19, 2024, the Company closed a three-year extension of the $84.7 million loan on Fashion Outlets of Niagara Falls. The scheduled outstanding $1.8 million principal payments were applied at closing. The extended loan bears the same fixed interest rate of 5.90%, and matures on October 6, 2026.
Current wording
Effective October 6, 2023, the Company's $86.5 million loan on Fashion Outlets of Niagara Falls was in default. On March 19, 2024, the Company closed a three-year extension of the $84.7 million loan on Fashion Outlets of Niagara Falls. The scheduled outstanding $1.8 million principal payments were applied at closing. The extended loan bears the same fixed interest rate of 5.90%, and matures on October 6, 2026.
Previous wording
The Company is in the process of closing a two-year extension of the $150.7 million loan on The Oaks, which matures on June 5, 2024. The Company expects the new interest rate during the first year of the extended loan term will be 7.5% and that it will increase to 8.5% during the second year of the extended loan term.
Current wording
On May 24, 2024, the Company closed a two-year extension of the $149.9 million loan on The Oaks, which now matures on June 5, 2026. The interest rate during the first year of the extended term will be 7.5% and will increase to 8.5% during the second year of the extended term.
Previous wording
The Company is in the process of closing a refinance of the $256.0 million loan on Chandler Fashion Center, which matures on July 5, 2024. The new loan, which is expected to be $275.0 million, is expected to have a five-year term and bear a fixed interest rate that is yet to be determined.
Current wording
The Company is in the process of closing a refinance of the $115.0 million loan on The Mall at Victor Valley, which matures on September 1, 2024. The new ten-year loan, which is expected to be $85.0 million, will bear a fixed interest rate that is yet to be determined.
Previous wording
The Company has a 50/50 joint venture with Simon Property Group, which was initially formed to develop Los Angeles Premium Outlets, a premium outlet center in Carson, California. The Company has funded $39.5 million of the total $78.9 million incurred by the joint venture as of March 31, 2024. During the first quarter of 2024, the Company evaluated its investment and concluded that due to certain conditions, the Company should not continue to invest capital in this development project. As a result, the Company wrote-off its share of the investment in the three months ended March 31, 2024 (See Note 4 – Investments in Unconsolidated Joint Ventures in the Notes to the Consolidated Financial Statements).
Current wording
The Company has a 50/50 joint venture with Simon Property Group, which was initially formed to develop Los Angeles Premium Outlets, a premium outlet center in Carson, California. During the first quarter of 2024, the Company evaluated its investment and concluded that due to certain conditions, the Company should not continue to invest capital in this development project. As a result, the Company wrote-off its share of the investment in the three months ended March 31, 2024. At the time of the write-off, the Company had funded $39.5 million of the total $78.9 million incurred by the joint venture (See Note 4 – Investments in Unconsolidated Joint Ventures in the Notes to the Consolidated Financial Statements).
Previous wording
The Company’s joint venture in Scottsdale Fashion Square, a 1,871,000 square foot regional retail center in Scottsdale, Arizona, is redeveloping a two-level Nordstrom wing with luxury-focused retail and restaurant uses. The total cost of the project is estimated to be between $80.0 million and $86.0 million, with $40.0 million and $43.0 million estimated to be the Company’s pro rata share. The Company has incurred $23.1 million of the total $46.2 million incurred by the joint venture as of March 31, 2024. The anticipated opening is in 2024.
Current wording
The Company’s joint venture in Scottsdale Fashion Square, a 1,871,000 square foot regional retail center in Scottsdale, Arizona, is redeveloping a two-level Nordstrom wing with luxury-focused retail and restaurant uses. The total cost of the project is estimated to be between $84.0 million and $90.0 million, with $42.0 million and $45.0 million estimated to be the Company’s pro rata share. The Company has incurred $23.4 million of the total $46.8 million incurred by the joint venture as of June 30, 2024. The anticipated opening will be in phases beginning in 2024, with completion in 2025.
Previous wording
The Company is redeveloping the northeast quadrant of Green Acres Mall, a 2,058,000 square foot regional retail center in Valley Stream, New York. The project will include new exterior shops and façade totaling approximately 385,000 square feet of leasing, including new grocery use, redevelopment of a vacant anchor building and demolition of another vacant anchor building. The total cost of the project is estimated to be between $120.0 million and $140.0 million. The Company has incurred approximately $12.1 million as of March 31, 2024. The anticipated opening is in 2026.
Current wording
The Company is redeveloping the northeast quadrant of Green Acres Mall, a 2,058,000 square foot regional retail center in Valley Stream, New York. The project will include new exterior shops and facade totaling approximately 385,000 square feet of leasing, including new grocery use, redevelopment of a vacant anchor building and demolition of another vacant anchor building. The total cost of the project is estimated to be between $120.0 million and $140.0 million. The Company has incurred approximately $14.0 million as of June 30, 2024. The anticipated opening is in 2026.
Previous wording
The Company declared a cash dividend of $0.17 per share of its common stock for each quarter of 2023. On February 2, 2024, the Company announced a first quarter cash dividend of $0.17 per share of its common stock, which was paid on March 4, 2024 to stockholders of record on February 16, 2024. On April 26, 2024, the Company announced a second quarter cash dividend of $0.17 per share of its common stock, which will be paid on June 3, 2024 to stockholders of record on May 20, 2024. The dividend amount will be reviewed by the Board on a quarterly basis.
Current wording
The Company declared a cash dividend of $0.17 per share of its common stock for each quarter of 2023 and the first two quarters of 2024. On July 26, 2024, the Company announced a third quarter cash dividend of $0.17 per share of its common stock, which will be paid on September 9, 2024 to stockholders of record on August 19, 2024. The dividend amount will be reviewed by the Board on a quarterly basis.
Previous wording
Remeasurement gains and losses are recognized when the Company becomes the primary beneficiary of an existing equity method investment that is a variable interest entity to the extent that the fair value of the existing equity investment exceeds the carrying value of the investment, and remeasurement losses to the extent the carrying value of the investment exceeds the fair value. The fair value is determined based on a discounted cash flow model, with the significant unobservable inputs including discount rate, terminal capitalization rate and market rents.
Current wording
Remeasurement gains are recognized when the Company becomes the primary beneficiary of an existing equity method investment that is a variable interest entity to the extent that the fair value of the existing equity investment exceeds the carrying value of the investment, and remeasurement losses are recognized to the extent the carrying value of the investment exceeds the fair value. The fair value is determined based on a discounted cash flow model, with the significant unobservable inputs including discount rate, terminal capitalization rate and market rents.
Previous wording
The fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity's own assumptions about market participant assumptions. Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity's own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.
Current wording
The fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity's own assumptions about market participant assumptions. Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity's own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.
Previous wording
The Company records its financing arrangement (See Note 12—Financing Arrangement in the Company's Notes to the Consolidated Financial Statements) obligation at fair value on a recurring basis with changes in fair value being recorded as interest expense in the Company’s consolidated statements of operations. The fair value is determined based on a discounted cash flow model, with the significant unobservable inputs including discount rate, terminal capitalization rate, and market rents. The fair value of the financing arrangement obligation is sensitive to these significant unobservable inputs and a change in these inputs may result in a significantly higher or lower fair value measurement.
Current wording
The Company recorded its financing arrangement (See Note 12—Financing Arrangement in the Company's Notes to the Consolidated Financial Statements) obligation at fair value on a recurring basis with changes in fair value being recorded as interest expense in the Company’s consolidated statements of operations. The fair value was determined based on a discounted cash flow model, with the significant unobservable inputs including discount rate, terminal capitalization rate, and market rents. The fair value of the financing arrangement obligation is sensitive to these significant unobservable inputs and a change in these inputs may result in a significantly higher or lower fair value measurement.
Previous wording
For purposes of the discussion below, the Company defines “Same Centers” as those Centers that are substantially complete and in operation for the entirety of both periods of the comparison. Non-Same Centers for comparison purposes include those Centers or properties that are going through a substantial redevelopment often resulting in the closing of a portion of the Center (“Redevelopment Properties”), those properties that have recently transitioned to or from equity method joint ventures to or from consolidated assets ("JV Transition Centers") and properties that have been disposed of (“Disposition Properties”). The Company moves a Center in and out of Same Centers based on whether the Center is substantially complete and in operation for the entirety of both periods of the comparison. Accordingly, the Same Centers consist of all Consolidated Centers, excluding the Redevelopment Properties, the JV Transition Centers and the Disposition Properties, for the periods of comparison.
Current wording
For purposes of the discussion below, the Company defines “Same Centers” as those Centers that are substantially complete and in operation for the entirety of both periods of the comparison. Non-Same Centers for comparison purposes include those Centers or properties that are going through a substantial redevelopment often resulting in the closing of a portion of the Center (“Redevelopment Properties”), those properties that have recently transitioned to or from equity method joint ventures to or from consolidated assets ("JV Transition Centers") and properties that have been disposed of (“Disposition Properties”). The Company moves a Center in and out of Same Centers based on whether the Center is substantially complete and in operation for the entirety of both periods of the comparison. Accordingly, the Same Centers consist of all Consolidated Centers, excluding the Redevelopment Properties, the JV Transition Centers, Santa Monica Place and the Disposition Properties, for the periods of comparison. Santa Monica Place is excluded from Same Centers due to the Company's default on the non-recourse loan on April 9, 2024.
Previous wording
For the comparison of the three months ended March 31, 2024 to the three months ended March 31, 2023, the JV Transition Centers are the five former Sears parcels at Chandler Fashion Center, Danbury Fair Mall, Freehold Raceway Mall, Los Cerritos Center and Washington Square (See “Acquisitions” in Management’s Overview and Summary). The Disposition Properties are The Marketplace at Flagstaff, Superstition Springs Power Center and Towne Mall (See "Dispositions" in Management’s Overview and Summary). For the comparison of the three months ended March 31, 2024 to the three months ended March 31, 2023, there are no Redevelopment Properties.
Current wording
For the comparison of the three and six months ended June 30, 2024 to the three and six months ended June 30, 2023, the JV Transition Centers are Arrowhead Towne Center, Chandler Fashion Center, South Plains Mall and the five former Sears parcels located at Chandler Fashion Center, Danbury Fair Mall, Freehold Raceway Mall, Los Cerritos Center and Washington Square (See “Acquisitions” in Management’s Overview and Summary). The Disposition Properties are The Marketplace at Flagstaff, Superstition Springs Power Center, Towne Mall and a former department store parcel at Valle Vista Mall (See "Dispositions" in Management’s Overview and Summary). For the comparison of the three and six months ended June 30, 2024 to the three and six months ended June 30, 2023, the Redevelopment Properties are Green Acres Mall and Fashion District Philadelphia.
Previous wording
During the trailing twelve months ended March 31, 2024, comparable tenant sales for spaces less than 10,000 square feet across the portfolio decreased by 0.8% relative to the first quarter of 2023. The leased occupancy rate of 93.4% at March 31, 2024 represented a 1.2% increase from 92.2% at March 31, 2023 and a 0.1% sequential decrease compared to the 93.5% occupancy rate at December 31, 2023. Releasing spreads increased as the Company executed leases at an average rent of $62.95 for new and renewal leases executed compared to $54.88 on leases expiring, resulting in a releasing spread increase of $8.07 per square foot, or 14.7%, for the trailing twelve months ended March 31, 2024. This was the Company’s tenth consecutive quarter of positive base rent leasing spreads.
Current wording
During the trailing twelve months ended June 30, 2024, comparable tenant sales for spaces less than 10,000 square feet across the portfolio decreased by 1.1% relative to the second quarter of 2023. The leased occupancy rate of 93.3% at June 30, 2024 represented a 0.7% increase from 92.6% at June 30, 2023 and a 0.1% sequential decrease compared to the 93.4% occupancy rate at March 31, 2024. Releasing spreads increased as the Company executed leases at an average rent of $63.35 for new and renewal leases executed compared to $57.54 on leases expiring, resulting in a releasing spread increase of $5.81 per square foot, or 10.1%, for the trailing twelve months ended June 30, 2024. This was the Company’s eleventh consecutive quarter of positive base rent leasing spreads.
Previous wording
2024 lease expirations continue to be an important focal point for the Company. As of March 31, 2024, the Company has executed renewal leases or commitments on 65% of its square footage expiring in 2024, which leases are expected to commence throughout 2024 and another 24% of such expiring space is in the letter of intent stage. Excluding those leases, the remaining leases expiring in 2024, which represent approximately 354,000 square feet of the Centers, are in the prospecting stage. The Company continues to renew or replace leases that are scheduled to expire in 2024, however, due to a variety of factors, the Company cannot be certain of its ability to sign, renew or replace leases expiring in 2024 or beyond.
Current wording
2024 lease expirations continue to be an important focal point for the Company. As of June 30, 2024, the Company has executed renewal leases or commitments on 76% of its square footage expiring in 2024, which leases are expected to commence throughout 2024 and another 18% of such expiring space is in the letter of intent stage. Excluding those leases, the remaining leases expiring in 2024, which represent approximately 181,000 square feet of the Centers, are in the prospecting stage. The Company continues to renew or replace leases that are scheduled to expire in 2024, however, due to a variety of factors, the Company cannot be certain of its ability to sign, renew or replace leases expiring in 2024 or beyond.
Previous wording
The Company has entered into 159 leases for new stores totaling approximately 1.6 million square feet that have opened or are planned for opening in 2024, and another 22 leases for new stores totaling approximately 795,000 square feet opening after 2024. While there may be additional new space openings in 2024, any such leases are not yet executed.
Current wording
The Company has entered into 184 leases for new stores totaling approximately 1.5 million square feet that have opened or are planned for opening in 2024, and another 33 leases for new stores totaling approximately 994,000 square feet opening throughout 2025 and 2026. In total, new store leases are expected to produce incremental rent of approximately $71.4 million (at the Company’s pro rata share) in excess of the rent generated from prior uses in the same spaces. While there may be additional new space openings in 2024, any such leases are not yet executed.
Previous wording
During the quarter ended March 31, 2024, the Company signed 46 new leases and 176 renewal leases comprising approximately 1.0 million square feet of GLA. The average tenant allowance was $10.20 per square foot.
Current wording
During the quarter ended June 30, 2024, the Company signed 61 new leases and 172 renewal leases comprising approximately 750,000 square feet of GLA. The average tenant allowance was $18.40 per square foot.
Previous wording
During March 2024, the Company celebrated its 30th anniversary as a public company and also welcomed Jackson Hsieh as its Chief Executive Officer and President. Following the appointment of Mr. Hsieh, the Company’s leadership team has spent considerable time refining the path forward for the Company, one which is focused on robust portfolio management with a goal of significantly reducing the Company’s leverage over the coming years.
Current wording
During March 2024, the Company celebrated its 30th anniversary as a public company and also welcomed Jackson Hsieh as its Chief Executive Officer and President. Following the appointment of Mr. Hsieh, the Company’s leadership team has spent considerable time refining the Company's strategy and unveiled the Path Forward Plan during the second quarter of 2024.
Previous wording
Additionally, the Company is focused on its goal to reduce its Net Debt to EBITDA leverage to a lower level over the next few years. This plan may be effected through a variety of methods, including asset dispositions and acquisitions, organic growth in EBITDA as the Company's lease pipeline opens for business, being selective about undertaking new development and redevelopment projects, and the issuance of common stock, the timing and extent of which are indeterminable at this time. The asset dispositions may include defaulting on certain mortgage debts on the Company's properties and giving possession of such secured properties to the lender.
Current wording
The Company may achieve these goals through a variety of methods and the timing, extent and impact of any transactions that the Company has or will undertake while implementing the Path Forward Plan are indeterminable at this time. In order to deleverage its capital structure, the Company may pursue asset dispositions and acquisitions, experience organic growth in EBITDA as properties in its lease pipeline open for business, be selective about undertaking new development and redevelopment projects, and/or issue common stock. Asset sales will focus on whether a property is core to the Company’s strategy and may include defaulting on certain mortgage debts on the Company’s properties and giving possession of such secured properties to the lender.
Previous wording
The Company has a long-term four-pronged business strategy that focuses on the acquisition, leasing and management, redevelopment and development of regional retail centers. Although the majority of the key performance indicators at the Centers continued to improve during the first quarter of 2024, including a strong start to 2024 leasing volume and leasing spreads, operating results in 2024 are expected to be negatively impacted by certain external factors, including any continued increase in inflation and elevated interest rates, as well as the impact from the recent bankruptcy of Express and any future tenant bankruptcies. Additionally, the Company is focused on a strategic plan with several core objectives, including simplifying its business, improving operational performance and reducing its overall leverage.
Current wording
Further, the Company has a long-term four-pronged business strategy that focuses on the acquisition, leasing and management, redevelopment and development of regional retail centers. Although the majority of the key performance indicators at the Centers continued to improve during the first half of 2024, operating results in 2024 have been and are expected to continue to be negatively impacted by certain external factors, including any increase in inflation and elevated interest rates, as well as the impact from the recent bankruptcy of Express and any future tenant bankruptcies.
Previous wording
Traffic levels at the Company’s Centers for the first quarter of 2024 increased by 1.5% from 2023 levels for the same time period. Portfolio tenant sales from spaces less than 10,000 square feet were $837 compared to $836 for the year ended December 31, 2023. Comparable tenant sales from spaces less than 10,000 square feet across the portfolio for the quarter ended March 31, 2024 decreased by 0.8% compared to the same period in 2023.
Current wording
Traffic levels at the Company’s Centers for the first half of 2024 increased by 4.6% from 2023 levels for the same time period. Portfolio tenant sales per square foot from spaces less than 10,000 square feet for the trailing twelve months ended June 30, 2024 were $835 compared to $836 for the year ended December 31, 2023. Comparable tenant sales from spaces less than 10,000 square feet across the portfolio for the quarter ended June 30, 2024 decreased by 0.4% compared to the same period in 2023.
Previous wording
During 2023, the Company signed 839 new and renewal leases for approximately 4.2 million square feet, compared to 963 leases and 3.8 million square feet signed during 2022. This leasing volume represented a 13% decrease in the number of leases and a 12% increase in the amount of square footage leased compared to the same period in 2022 on a comparable basis, and was the highest volume leasing year in the Company’s history. During the first quarter of 2024, the Company continued its strong leasing trajectory and signed 222 leases for approximately 1.0 million square feet, compared to 248 leases and 917,000 square feet leased during the first quarter of 2023, representing a 14% increase in the amount of square footage leased and an 11% decrease in the number of leases signed on a comparable center basis.
Current wording
During 2023, the Company signed 839 new and renewal leases for approximately 4.2 million square feet, compared to 963 leases and 3.8 million square feet signed during 2022. This leasing volume represented a 13% decrease in the number of leases and a 12% increase in the amount of square footage leased compared to the same period in 2022 on a comparable basis, and was the highest volume leasing year in the Company’s history. During the second quarter of 2024, the Company signed 233 leases for approximately 750,000 square feet, compared to 188 leases and 1.4 million square feet leased during the second quarter of 2023, representing a 47% decrease in the amount of square footage leased and a 24% increase in the number of leases signed on a comparable center basis. The decline was primarily due to unusually heavy leasing activity in the second quarter of 2023 from a multi-lease renewal with a major national retailer covering a significant amount of space, as well as several larger format space within the same period.
Previous wording
The Company believes that diversity of use within its tenant base has been, and will continue to be, a prominent internal growth catalyst at its Centers going forward, as new uses enhance the productivity and diversity of the tenant mix and have the potential to significantly increase customer traffic at the applicable Centers. During the quarter ended March 31, 2024, the Company signed deals for new stores with new-to-Macerich portfolio uses for 11,000 square feet, with another 147,000 square feet of such new-to-Macerich portfolio leases currently in negotiation as of the date of this Quarterly Report on Form 10-Q. During the year ended December 31, 2023, the Company signed leases for new stores with new-to-Macerich portfolio uses totaling over 600,000 square feet.
Current wording
The Company believes that diversity of use within its tenant base has been, and will continue to be, a prominent internal growth catalyst at its Centers going forward, as new uses enhance the productivity and diversity of the tenant mix and have the potential to significantly increase customer traffic at the applicable Centers. During the quarter ended June 30, 2024, the Company signed leases for new stores with new-to-Macerich portfolio uses for 98,000 square feet, with another 204,000 square feet of such new-to-Macerich portfolio leases currently in negotiation as of the date of this Quarterly Report on Form 10-Q. During the year ended December 31, 2023, the Company signed leases for new stores with new-to-Macerich portfolio uses totaling over 600,000 square feet.
Previous wording
As of March 31, 2024, the leased occupancy rate was 93.4%, a 1.2% increase compared to the leased occupancy rate at March 31, 2023 of 92.2% and a 0.1% sequential decrease compared to the leased occupancy rate of 93.5% at December 31, 2023.
Current wording
As of June 30, 2024, the leased occupancy rate was 93.3%, a 0.7% increase compared to the leased occupancy rate at June 30, 2023 of 92.6% and a 0.1% sequential decrease compared to the leased occupancy rate of 93.4% at March 31, 2024.
Previous wording
The pace of bankruptcy filings involving the Company’s tenants decreased substantially in 2023 and in 2022 compared to 2021. For the year ended December 31, 2023, there were ten bankruptcy filings involving the Company’s tenants totaling fifteen leases and representing approximately 111,000 square feet of leased space and $3.6 million of annual leasing revenue at the Company’s share. Year-to-date in 2024, there have been four bankruptcy filings involving the Company’s tenants, including the bankruptcy of Express announced on April 22, 2024, totaling 36 leases and representing approximately 251,000 square feet of leased space and $17.1 million of annual leasing revenue at the Company’s share.
Current wording
The pace of bankruptcy filings involving the Company’s tenants decreased substantially in 2023 and in 2022 compared to 2021. For the year ended December 31, 2023, there were ten bankruptcy filings involving the Company’s tenants totaling fifteen leases and representing approximately 111,000 square feet of leased space and $3.6 million of annual leasing revenue at the Company’s share. Year-to-date in 2024, there have been eight bankruptcy filings involving the Company’s tenants, including the bankruptcy of Express announced on April 22, 2024, totaling 43 leases and representing approximately 305,000 square feet of leased space and $18.1 million of annual leasing revenue at the Company’s share.
Previous wording
The Company continues to actively address its near-term, non-recourse loan maturities, with five completed or in the process transactions year-to-date in 2024 totaling approximately $689.4 million, or approximately $540.2 million at the Company’s pro rata share. For additional information on the Company’s financing transactions in the year ended 2023 through the date of this Quarterly Report on Form 10-Q, see “Financing Activities” in Management’s Overview and Summary.
Current wording
The Company continues to actively address its near-term, non-recourse loan maturities, with five completed transactions year-to-date in 2024 totaling approximately $688.6 million, or approximately $539.4 million at the Company’s pro rata share. The Company has one remaining maturity in 2024 that is in the process of refinancing. For additional information on the Company’s financing transactions in the year ended 2023 through the date of this Quarterly Report on Form 10-Q, see “Financing Activities” in Management’s Overview and Summary.
Previous wording
Management Companies' revenue increased from $6.8 million in 2023 to $8.2 million in 2024 due to an increase in leasing and development fees.
Current wording
Management Companies' revenue decreased from $8.0 million in 2023 to $6.8 million in 2024 primarily due to a decrease in leasing and development fees.
Previous wording
Depreciation and amortization decreased $3.1 million from 2023 to 2024. The decrease in depreciation and amortization is attributed to decreases of $3.3 million from the Same Centers and $0.5 million from the Disposition Properties offset in part by an increase of $0.7 million from the JV Transition Centers.
Current wording
Depreciation and amortization increased $1.3 million from 2023 to 2024. The increase in depreciation and amortization is attributed to an increase of $2.6 million from the JV Transition Centers and $0.3 million from the Redevelopment Properties offset in part by decreases of $3.1 million from the Same Centers and $0.3 million from the Disposition Properties. Additionally, $1.8 million of the increase is attributable to Santa Monica Place.
Previous wording
Leasing revenue decreased by $7.4 million, or 3.7%, from 2023 to 2024. The decrease in leasing revenue is attributed to decreases of $7.0 million from the Same Centers and $1.5 million from the Disposition Properties offset in part by an increase of $1.1 million from the JV Transition Centers. Leasing revenue includes the amortization of above and below-market leases, the amortization of straight-line rents, lease termination income, percentage rent and the recovery of bad debts. The amortization of above and below-market leases decreased from $1.1 million in 2023 to $0.1 million in 2024. Straight-line rents decreased from $(1.8) million in 2023 to $(3.2) million in 2024. Lease termination income decreased from $1.8 million in 2023 to $1.1 million in 2024. Percentage rent decreased from $5.5 million in 2023 to $2.6 million in 2024. (Provisions for) recovery of bad debts decreased from $1.0 million in 2023 to $(2.9) million in 2024.
Current wording
Leasing revenue decreased by $2.1 million, or 0.5%, from 2023 to 2024. The decrease in leasing revenue is attributed to decreases of $3.4 million from the Same Centers, $2.4 million from the Disposition Properties and $4.3 million from the Redevelopment Properties offset in part by an increase of $8.6 million from the JV Transition Centers. Leasing revenue includes the amortization of above and below-market leases, the amortization of straight-line rents, lease termination income, percentage rent and the recovery of bad debts. The amortization of above and below-market leases increased from $1.6 million in 2023 to $2.5 million in 2024. Straight-line rents decreased from $(2.6) million in 2023 to $(3.7) million in 2024. Lease termination income decreased from $1.7 million in 2023 to $1.2 million in 2024. Percentage rent decreased from $10.0 million in 2023 to $5.5 million in 2024. (Provisions for) recovery of bad debts decreased from $1.6 million in 2023 to $(4.4) million in 2024.
Previous wording
Shopping center and operating expenses increased $3.7 million, or 5.2%, from 2023 to 2024. The increase in shopping center and operating expenses is attributed to an increase of $4.5 million from the Same Centers, which is primarily due to increased weather related costs, and is offset in part by decreases of $0.1 million from the JV Transition Centers and $0.7 million from the Disposition Properties.
Current wording
Shopping center and operating expenses increased $4.2 million, or 3.0%, from 2023 to 2024. The increase in shopping center and operating expenses is attributed to an increase of $4.1 million from the Same Centers, which is primarily due to increased insurance, utilities and snow removal costs, and $1.5 million from the JV Transition Centers offset in part by decreases of $1.4 million from the Redevelopment Properties and $1.2 million from the Disposition Properties. Additionally, $1.1 million of the increase is attributable to Santa Monica Place.
Previous wording
Leasing expenses increased from $9.7 million in 2023 to $10.5 million in 2024 due to an increase in compensation expense.
Current wording
Leasing expenses increased from $18.1 million in 2023 to $20.1 million in 2024 due to an increase in compensation expense.
Previous wording
Interest expense increased $12.8 million from 2023 to 2024. The increase in interest expense is attributed to increases of $13.8 million from the financing arrangement discussed in Note 12 in the Company's Notes to the Consolidated Financial Statements and $0.9 million from higher interest rates and outstanding balances on the Company's revolving line of credit offset in part by decreases of $0.9 million from the Same Centers, $0.8 million from the JV Transition Centers and $0.2 million from the Disposition Properties. The increase in interest expense from the financing arrangement is primarily due to the change in fair value of the underlying properties and the mortgage notes payable on the underlying properties.
Current wording
Interest expense decreased $2.2 million from 2023 to 2024. The decrease in interest expense is attributed to decreases of $7.8 million from the financing arrangement discussed in Note 12 in the Company's Notes to the Consolidated Financial Statements, $3.0 million from the Redevelopment Properties and $0.4 million from the Disposition Properties offset in part by increases of $1.9 million from higher interest rates and outstanding balances on the Company's revolving line of credit, $1.1 million from the Same Centers and $3.2 million from the JV Transition Centers. Additionally, $2.8 million of the offset is attributable to Santa Monica Place, which includes default interest expense of $2.8 million. The decrease in interest expense from the financing arrangement is primarily due to the change in fair value of the underlying properties and the mortgage notes payable on the underlying properties.
Previous wording
Equity in loss of unconsolidated joint ventures increased $11.5 million from 2023 to 2024. The increase in equity in loss of unconsolidated joint ventures is primarily due to the write-down of the Company's investment in Los Angeles Premium Outlets of $57.7 million in 2024 offset in part by the impairment loss in 2023 of $51.4 million at MS Portfolio LLC, as a result of the reduction in the estimated holding period (See Note 4 – Investments in Unconsolidated Joint Ventures in the Company’s Notes to the Consolidated Financial Statements).
Current wording
Equity in loss of unconsolidated joint ventures increased $61.3 million from 2023 to 2024. The increase in equity in loss of unconsolidated joint ventures is primarily due to the write-down of the Company's investment in Los Angeles Premium Outlets of $57.7 million in 2024 and impairment losses of $53.7 million as a result of the reduction in the estimated holding period of properties held by certain unconsolidated joint ventures offset in part by the impairment loss in 2023 of $51.4 million at MS Portfolio LLC, as a result of the reduction in the estimated holding period (See Note 4 – Investments in Unconsolidated Joint Ventures in the Company’s Notes to the Consolidated Financial Statements).
Previous wording
Net loss increased $73.3 million from 2023 to 2024. The increase in net loss is primarily due to the 2024 impairment losses at Santa Monica Place and Los Angeles Premium Outlets, offset in part by the 2023 write-down of assets as a result of the reduction in the estimated holding period at MS Portfolio LLC, along with the other variances noted above.
Current wording
Net income (loss) increased $206.7 million from 2023 to 2024. The increase in net income (loss) is primarily due to the gain on sale of assets discussed above offset in part by impairment losses recognized as a result of the reduction in the estimated holding period of certain unconsolidated joint ventures, 2024 impairment losses at Santa Monica Place and Los Angeles Premium Outlets and by the 2023 write-down of assets as a result of the reduction in the estimated holding period at MS Portfolio LLC, along with the other variances noted above.
Previous wording
Primarily as a result of the factors mentioned above, FFO attributable to common stockholders and unit holders—diluted, excluding financing expense in connection with Chandler Freehold, accrued default interest expense and unrealized gain or loss on non-real estate investments decreased 22.2% from$95.9 millionin 2023 to$74.6 million in 2024. For a reconciliation of net loss attributable to the Company, the most directly comparable GAAP financial measure, to FFO attributable to common stockholders and unit holders—diluted, and FFO attributable to common stockholders and unit holders, excluding financing expense in connection with Chandler Freehold, accrued default interest expense and unrealized loss on non-real estate investments—diluted, see "Funds From Operations ("FFO")" below.
Current wording
Primarily as a result of the factors mentioned above, FFO attributable to common stockholders and unit holders—diluted, excluding financing expense in connection with Chandler Freehold, accrued default interest expense and loss on non-real estate investments decreased 12.0% from$185.0 millionin 2023 to$162.7 million in 2024. For a reconciliation of net income (loss) attributable to the Company, the most directly comparable GAAP financial measure, to FFO attributable to common stockholders and unit holders—diluted, and FFO attributable to common stockholders and unit holders, excluding financing expense in connection with Chandler Freehold, accrued default interest expense and loss on non-real estate investments—diluted, see "Funds From Operations ("FFO")" below.
Showing the first 40 of 56 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Leasing revenue increased by $5.3 million, or 2.8%, from 2023 to 2024. The increase in leasing revenue is attributed to increases of $7.5 million from the JV Transition Centers and $0.5 million from the Same Centers offset in part by decreases of $1.0 million from the Disposition Properties and $1.6 million from the Redevelopment Properties. Leasing revenue includes the amortization of above and below-market leases, the amortization of straight-line rents, lease termination income, percentage rent and the recovery of bad debts. The amortization of above and below-market leases increased from $0.5 million in 2023 to $2.5 million in 2024. The amortization of straight-line rents increased from $(0.8) million in 2023 to $(0.5) million in 2024. Lease termination income was $0.0 million for both 2023 and 2024. Percentage rent decreased from $4.5 million in 2023 to $2.9 million in 2024. (Provisions for) recovery of bad debts decreased from $0.6 million in 2023 to $(1.5) million in 2024.
Current report — wording carried from elsewhere
Gain on Sale or Write Down of Assets, net:
Current report — wording carried from elsewhere
Primarily as a result of the factors mentioned above, FFO attributable to common stockholders and unit holders—diluted, excluding financing expense in connection with Chandler Freehold, accrued default interest expense and loss on non-real estate investments decreased 1.1% from$89.1 million in 2023 to$88.1 million in 2024. For a reconciliation of net income (loss) attributable to the Company, the most directly comparable GAAP financial measure, to FFO attributable to common stockholders and unit holders—diluted, and FFO attributable to common stockholders and unit holders, excluding financing expense in connection with Chandler Freehold, accrued default interest expense and loss on non-real estate investments—diluted, see "Funds From Operations ("FFO")" below.
Current report — wording carried from elsewhere
Equity in Loss of Unconsolidated Joint Ventures:
Current report — wording carried from elsewhere
Gain on Sale or Write Down of Assets, net:
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Effective October 6, 2023, the Company's $86.5 million loan on Fashion Outlets of Niagara Falls was in default. The Company subsequently extended the maturity date on this loan.