Macerich posts higher funds in 2Q

Macerich Co. said Thursday its second-quarter funds from operations rose 11.5 percent as the real estate investment trust, which concentrates on regional malls, saw gains in specialty store leases and mall tenant rents.

Funds from operations, or FFO, in the quarter that ended June 30 rose to $103.2 million, or $1.16 a share. That compares with $100.7 million, or $1.04 a share, in the same period last year.

On average, analysts polled by Thomson Financial expected FFO of $1.14 a share.

FFO, which adds such items as amortization and depreciation back to net income, is considered a key measure of REIT strength.

Net income totaled $18.8 million, or 25 cents a share, up from $10.9 million, or 15 cents a share in the same period last year.

Total revenue rose to $217.9 million from $215.8 million in the year-ago period.

During the quarter, Macerich signed 370,000 square feet of specialty store leases, an increase of 7.9 percent from the same quarter last year.

Average initial rents were $45.51 per square foot.

Mall tenant sales per square foot for the 12-month period ended in June was $468, up from $458 in prior-year period.

The occupancy in the REIT's same-center portfolio dipped slightly to 92.8 percent from 93.1 percent in the prior year.

Macerich shares rose 39 cents to $57.04 in afternoon trading.