Macerich Is Lifted by Solid Occupancy

Santa Monica-based shopping mall owner Macerich Co. said its first-quarter results improved, lifted by solid occupancy and leasing activity, but fell a penny short of Wall Street’s forecast.

First-quarter funds from operations (FFO) climbed 19% to $90.1 million, or $1.05 a share, from $76 million, or 99 cents, a year earlier.

FFO, a widely used gauge of real estate operating performance, adds depreciation and amortization expenses, as well as other non-operating items, back to net income.

Macerich issued about 11 million shares of common stock in January, using the net proceeds of $747 million primarily to pay down debt, resulting in a $1.8-million loss on early debt retirement that cut into FFO for the quarter. Analysts polled by Thomson Financial were looking for FFO of $1.06 a share, on average.

Quarterly earnings after preferred dividends were $7.5 million, or 11 cents a share, compared with $18.1 million, or 30 cents, a year earlier, as higher expenses outpaced revenue.

Shares of Macerich fell 11 cents to $73.84.