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As Of Filer Filing For·On·As Docs:Size 1/26/15 Macerich Co 8-K:9 11/14/14 2:534K |
Document/Exhibit Description Pages Size 1: 8-K Current Report HTML 208K 2: EX-23.1 Consent of Experts or Counsel HTML 8K
MAC 8-K/A Ontario 3-14 |
MARYLAND | 95-4448705 | |||
(State
or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(a) | Financial
Statements under Rule 3-14 of Regulation S-X |
(b) | |
(d) | Exhibits |
23.1 Consent of KPMG LLP |
For the Nine Months Ended September 30, 2014 (Unaudited) | For
the Years Ended December 31, | |||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Revenues: | ||||||||||||||||
Minimum
rents | $ | 117,130 | $ | 156,171 | $ | 151,038 | $ | 147,810 | ||||||||
Percentage
rents | 1,873 | 4,047 | 4,310 | 4,473 | ||||||||||||
Tenant recoveries | 54,589 | 70,458 | 68,604 | 65,753 | ||||||||||||
Other | 10,725 | 14,903 | 13,938 | 12,890 | ||||||||||||
Total
revenues | 184,317 | 245,579 | 237,890 | 230,926 | ||||||||||||
Certain expenses: | ||||||||||||||||
Real
estate taxes | 20,222 | 26,287 | 24,363 | 23,676 | ||||||||||||
Maintenance and repairs | 13,523 | 18,632 | 19,246 | 18,161 | ||||||||||||
Utilities | 7,190 | 8,683 | 9,305 | 9,660 | ||||||||||||
General
and administrative | 6,009 | 7,050 | 7,207 | 8,130 | ||||||||||||
Security | 3,925 | 5,696 | 5,737 | 5,410 | ||||||||||||
Insurance | 1,245 | 1,650 | 1,583 | 1,642 | ||||||||||||
Ground
rent | 601 | 802 | 775 | 755 | ||||||||||||
Interest | 46,166 | 63,606 | 65,885 | 63,336 | ||||||||||||
Total
expenses | 98,881 | 132,406 | 134,101 | 130,770 | ||||||||||||
Revenues in excess of certain expenses | $ | 85,436 | $ | 113,173 | $ | 103,789 | $ | 100,156 |
Name of Center | Location | Total Gross Leasable Area | |||
Lakewood Center | Lakewood,
California | 2,066,000 | |||
Los Cerritos Center | Cerritos, California | 1,309,000 | |||
Queens Center | Queens, New York | 971,000 | |||
Stonewood
Center | Downey, California | 935,000 | |||
Washington Square | Portland, Oregon | 1,443,000 |
Carrying
Amount of Mortgage Notes | |||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||
Property
Pledged as Collateral | Related Party | Other | Related Party | Other | Effective Interest Rate(1) | Monthly Debt Service(2) | Maturity Date | ||||||||||||||||||
Lakewood
Center | $ | — | $ | 250,000 | $ | — | $ | 250,000 | 5.43 | % | $ | 1,127 | 2015 | ||||||||||||
Los
Cerritos Center (3) | 94,749 | 94,749 | 96,093 | 96,093 | 4.50 | % | 1,009 | 2018 | |||||||||||||||||
Queens
Center | — | 600,000 | — | 600,000 | 3.65 | % | 1,744 | 2025 | |||||||||||||||||
Stonewood
Mall | — | 104,043 | — | 106,174 | 4.67 | % | 640 | 2017 | |||||||||||||||||
Washington
Square | — | 229,904 | — | 232,971 | 6.04 | % | 1,499 | 2016 | |||||||||||||||||
$ | 94,749 | $ | 1,278,696 | $ | 96,093 | $ | 1,285,238 |
(1) | The
interest rate disclosed represents the effective interest rate, including deferred finance costs. |
(2) | The monthly debt service represents the payment of principal and interest. |
(3) | Half of the loan proceeds were funded by Northwestern Mutual Life (“NML”), which is a joint venture partner of the Company. |
2014 | $ | 10,582 | |
2015 | 261,135 | ||
2016 | 231,547 | ||
2017 | 101,314 | ||
2018 | 176,753 | ||
Thereafter | 600,000 | ||
$ | 1,381,331 |
Year Ending December 31, | |||
2014 | $ | 141,679 | |
2015 | 108,523 | ||
2016 | 93,121 | ||
2017 | 77,610 | ||
2018 | 67,467 | ||
Thereafter | 243,228 | ||
$ | 731,628 |
Year Ending December 31, | |||
2014 | $ | 814 | |
2015 | 814 | ||
2016 | 814 | ||
2017 | 814 | ||
2018 | 814 | ||
Thereafter | 26,130 | ||
$ | 30,200 |
The Company (a) | Pro
Forma Adjustments | Pro Forma Total | ||||||||||
ASSETS: | ||||||||||||
Property, net | $ | 7,570,636 | $ | 3,714,982 | (b) | $ | 11,285,618 | |||||
Cash
and cash equivalents | 58,479 | 28,890 | (b) | |||||||||
(5,000 | ) | (d) | 82,369 | |||||||||
Restricted
cash | 14,121 | 5,113 | (b) | 19,234 | ||||||||
Tenant and other receivables, net | 107,968 | 5,438 | (b) | 113,406 | ||||||||
Deferred
charges and other assets, net | 492,697 | 279,973 | (b) | 772,670 | ||||||||
Loans to unconsolidated joint ventures | 3,361 | — | 3,361 | |||||||||
Due
from affiliates | 31,422 | (2,680 | ) | (b) | 28,742 | |||||||
Investments in unconsolidated joint ventures | 927,424 | — | 927,424 | |||||||||
Total
assets | $ | 9,206,108 | $ | 4,026,716 | $ | 13,232,824 | ||||||
LIABILITIES AND EQUITY: | ||||||||||||
Mortgage
notes payable: | ||||||||||||
Related parties | $ | 265,269 | $ | 103,764 | (c) | $ | 369,033 | |||||
Others | 4,118,969 | 1,310,895 | (c) | 5,429,864 | ||||||||
Total | 4,384,238 | 1,414,659 | (b) | 5,798,897 | ||||||||
Bank
and other notes payable | 546,301 | — | 546,301 | |||||||||
Accounts payable and accrued expenses | 89,659 | 5,669 | (b) | 95,328 | ||||||||
Other
accrued liabilities | 317,515 | 230,210 | (b) | 547,725 | ||||||||
Distributions in excess of investments in unconsolidated joint ventures | 253,673 | (208,735 | ) | (b) | 44,938 | |||||||
Co-venture
obligation | 75,669 | — | 75,669 | |||||||||
Total liabilities | 5,667,055 | 1,441,803 | 7,108,858 | |||||||||
Commitments
and contingencies | ||||||||||||
Equity: | ||||||||||||
Stockholders'
equity: | ||||||||||||
Common stock | 1,409 | 171 | (d) | 1,580 | ||||||||
Additional
paid-in capital | 3,930,317 | 1,161,606 | (d) | 5,091,923 | ||||||||
(Accumulated deficit) retained earnings | (740,906 | ) | 1,423,136 | (b) | 682,230 | |||||||
Total
stockholders' equity | 3,190,820 | 2,584,913 | 5,775,733 | |||||||||
Noncontrolling interests | 348,233 | — | 348,233 | |||||||||
Total
equity | 3,539,053 | 2,584,913 | 6,123,966 | |||||||||
Total liabilities and equity | $ | 9,206,108 | $ | 4,026,716 | $ | 13,232,824 |
(a) | This information represents the
Company's historical consolidated balance sheet as of September 30, 2014, which was included in the Company's previously filed Quarterly Report on Form 10-Q for the quarter ended September 30, 2014. |
(b) | Includes the pro forma effect of the Company's acquisition of PPRLP/Queens
Portfolio. The purchase price was allocated to assets acquired and liabilities assumed based on preliminary estimates of fair values as follows: |
Property | $ | 3,714,982 | |
Deferred charges | 152,250 | ||
Cash
and cash equivalents | 28,890 | ||
Restricted cash | 5,113 | ||
Tenant receivables | 5,438 | ||
Other assets | 127,723 | ||
Total assets acquired | 4,034,396 | ||
Mortgage
note payable | 1,414,659 | ||
Accounts payable | 5,669 | ||
Due to affiliates | 2,680 | ||
Other accrued liabilities | 230,210 | ||
Total liabilities assumed | 1,653,218 | ||
Fair
value of the acquired net assets (at 100% ownership) | $ | 2,381,178 |
Fair value of existing ownership interest (at 51% ownership) | $ | 1,214,401 | |
Distributions
in excess of investment | 208,735 | ||
Gain on remeasurement | $ | 1,423,136 |
Purchase
price | $ | 1,838,886 | |
Less debt assumed | (672,109 | ) | |
Distributions in excess of investment | (208,735 | ) | |
Remeasurement gain | 1,423,136 | ||
Fair
value of the acquired net assets (at 100% ownership) | $ | 2,381,178 |
(c) | Represents
the Company's assumption of $1,371,651 of mortgage notes payable on the PPRLP/Queens Portfolio, including the effect of the allocated net premium of $43,008 at acquisition. |
Property Pledged as Collateral | Related
Party | Other | Effective Interest Rate | Maturity Date | |||||||||
Lakewood Center | $ | — | $ | 254,880 | 1.80 | % | 6/1/2015 | ||||||
Los
Cerritos Center | 103,764 | 103,764 | 1.65 | % | 7/1/2018 | ||||||||
Queens Center | — | 600,000 | 3.49 | % | 1/1/2025 | ||||||||
Stonewood
Mall | — | 111,910 | 1.80 | % | 11/1/2017 | ||||||||
Washington Square | — | 240,341 | 1.65 | % | 1/1/2016 | ||||||||
$ | 103,764 | $ | 1,310,895 |
(d) | Represents
the direct issuance to Ontario of 17,140,845 shares of the Company's common stock valued on the closing date at $68.07 per share to fund the acquisition, net of issuance cost. |
The Company (a) | PPRLP/Queens Portfolio (b) | Pro
Forma Adjustments | Pro Forma Total | |||||||||||||
Revenues: | ||||||||||||||||
Minimum rents | $ | 451,248 | $ | 117,130 | $ | 11,067 | (c) | $ | 579,445 | |||||||
Percentage
rents | 9,295 | 1,873 | — | 11,168 | ||||||||||||
Tenant recoveries | 264,909 | 54,589 | — | 319,498 | ||||||||||||
Management
Companies | 25,248 | — | (6,141 | ) | (d) | 19,107 | ||||||||||
Other | 31,638 | 10,725 | — | 42,363 | ||||||||||||
Total
revenues | 782,338 | 184,317 | 4,926 | 971,581 | ||||||||||||
Expenses: | ||||||||||||||||
Shopping
center and operating expenses | 257,583 | 52,715 | 935 | (e) | 311,233 | |||||||||||
Management Companies'
operating expenses | 65,185 | — | — | 65,185 | ||||||||||||
REIT general and administrative expenses | 17,339 | — | — | 17,339 | ||||||||||||
Depreciation
and amortization | 266,199 | — | 74,536 | (f) | 340,735 | |||||||||||
606,306 | 52,715 | 75,471 | 734,492 | |||||||||||||
Interest
expense: | ||||||||||||||||
Related parties | 11,069 | 3,189 | (1,931 | ) | (g) | 12,327 | ||||||||||
Other | 128,872 | 42,977 | (5,315 | ) | (g) | 166,534 | ||||||||||
139,941 | 46,166 | (7,246 | ) | 178,861 | ||||||||||||
Loss
on extinguishment of debt | 405 | — | — | 405 | ||||||||||||
Total expenses | 746,652 | 98,881 | 68,225 | 913,758 | ||||||||||||
Equity
in income of unconsolidated joint ventures | 44,607 | — | (22,910 | ) | (h) | 21,697 | ||||||||||
Co-venture
expense | (6,175 | ) | — | — | (6,175 | ) | ||||||||||
Income tax benefit | 3,759 | — | — | 3,759 | ||||||||||||
Loss
on remeasurement, sale or write down of assets, net | (1,504 | ) | — | — | (1,504 | ) | ||||||||||
Net income | 76,373 | 85,436 | (86,209 | ) | 75,600 | |||||||||||
Less
net income attributable to noncontrolling interests | 6,552 | — | (52 | ) | (i) | 6,500 | ||||||||||
Net
income attributable to the Company | $ | 69,821 | $ | 85,436 | $ | (86,157 | ) | $ | 69,100 | |||||||
Earnings
per common share attributable to Company: | ||||||||||||||||
Net income - basic | $ | 0.49 | $ | (0.06 | ) | $ | 0.43 | |||||||||
Net
income - diluted | $ | 0.49 | $ | (0.06 | ) | $ | 0.43 | |||||||||
Weighted
average number of common shares outstanding: | ||||||||||||||||
Basic | 140,859,000 | 17,141,000 | (j) | 158,000,000 | ||||||||||||
Diluted | 140,975,000 | 17,141,000 | (j) | 158,116,000 |
(a) | This
information represents the Company's historical consolidated statement of operations for the nine months ended September 30, 2014, which was included in the Company's previously filed Quarterly Report on Form 10-Q for the quarter ended September 30, 2014. |
(b) | This information represents the
combined revenues and certain expenses of the PPRLP/Queens Portfolio for the nine months ended September 30, 2014, which was included in this Report on Form 8-K/A. |
(c) | Represents the pro forma amortization of above and below market leases based on the preliminary purchase price allocation of the PPRLP/Queens Portfolio and the impact of straight-line rents, which was based on the information available at this time. Subsequent adjustment to the allocation may be made based on additional information. |
(d) | Represents
the reduction of management fee revenue attributed to the PPRLP/Queens Portfolio that were included in the historical consolidated statement of operations for the nine months ended September 30, 2014. |
(e) | Represents the pro forma amortization of an above market ground lease based on the preliminary purchase price allocation of the PPRLP/Queens Portfolio, which is based on the information available at this time. Subsequent adjustment to the allocation may be made based on additional information. |
(f) | Represents
the pro forma depreciation and amortization expense based on the preliminary purchase price allocation of the PPRLP/Queens Portfolio, which is based on the information available at this time. Subsequent adjustment to the allocation may be made based on additional information. |
(g) | Represents the pro forma amortization of debt premium on the mortgage notes payable based on the preliminary purchase price allocation of the PPRLP/Queens Portfolio, which is based on the information available at this time. Subsequent adjustment to the allocation may be made based on additional information. |
(h) | Represents
the reduction of equity in income of unconsolidated joint ventures that was attributed to the PPRLP/Queens Portfolio that was included in the historical consolidated statement of operations for the nine months ended September 30, 2014. |
(i) | Represents the pro forma effect of the acquisition of the PPRLP/Queens Portfolio attributable to noncontrolling interests. |
(j) | Represents
common shares issued to Ontario in connection with the acquisition of the PPRLP/Queens Portfolio. |
The
Company (a) | PPRLP/Queens Portfolio (b) | Pro Forma Adjustments | Pro Forma Total | |||||||||||||
Revenues: | ||||||||||||||||
Minimum
rents | $ | 578,113 | $ | 156,171 | $ | 12,044 | (c) | $ | 746,328 | |||||||
Percentage
rents | 23,156 | 4,047 | — | 27,203 | ||||||||||||
Tenant recoveries | 337,772 | 70,458 | — | 408,230 | ||||||||||||
Management
Companies | 40,192 | — | (8,491 | ) | (d) | 31,701 | ||||||||||
Other | 50,242 | 14,903 | — | 65,145 | ||||||||||||
Total
revenues | 1,029,475 | 245,579 | 3,553 | 1,278,607 | ||||||||||||
Expenses: | ||||||||||||||||
Shopping
center and operating expenses | 329,795 | 68,800 | 1,246 | (e) | 399,841 | |||||||||||
Management Companies'
operating expenses | 93,461 | — | — | 93,461 | ||||||||||||
REIT general and administrative expenses | 27,772 | — | — | 27,772 | ||||||||||||
Depreciation
and amortization | 357,165 | — | 111,387 | (f) | 468,552 | |||||||||||
808,193 | 68,800 | 112,633 | 989,626 | |||||||||||||
Interest
expense: | ||||||||||||||||
Related parties | 15,016 | 4,321 | (2,575 | ) | (g) | 16,762 | ||||||||||
Other | 182,231 | 59,285 | (20,146 | ) | (g) | 221,370 | ||||||||||
197,247 | 63,606 | (22,721 | ) | 238,132 | ||||||||||||
Gain
on extinguishment of debt, net | (1,432 | ) | — | — | (1,432 | ) | ||||||||||
Total expenses | 1,004,008 | 132,406 | 89,912 | 1,226,326 | ||||||||||||
Equity
in income of unconsolidated joint ventures | 167,580 | — | (30,725 | ) | (h) | 136,855 | ||||||||||
Co-venture
expense | (8,864 | ) | — | — | (8,864 | ) | ||||||||||
Income tax benefit | 1,692 | — | — | 1,692 | ||||||||||||
Loss
on remeasurement, sale or write down of assets, net | (26,852 | ) | — | — | (26,852 | ) | ||||||||||
Income
from continuing operations | 159,023 | 113,173 | (117,084 | ) | 155,112 | |||||||||||
Less income from continuing
operations attributable to noncontrolling interests | 9,762 | — | (258 | ) | (i) | 9,504 | ||||||||||
Income
from continuing operations attributable to the Company | $ | 149,261 | $ | 113,173 | $ | (116,826 | ) | $ | 145,608 | |||||||
Earnings
per common share attributable to Company: | ||||||||||||||||
Income from continuing operations - basic | $ | 1.07 | $ | (0.15 | ) | $ | 0.92 | |||||||||
Income
from continuing operations - diluted | $ | 1.06 | $ | (0.14 | ) | $ | 0.92 | |||||||||
Weighted
average number of common shares outstanding: | ||||||||||||||||
Basic | 139,598,000 | 17,141,000 | (j) | 156,739,000 | ||||||||||||
Diluted | 139,680,000 | 17,141,000 | (j) | 156,821,000 |
(a) | This
information represents the Company's historical consolidated statement of operations for the year ended December 31, 2013, which was included in the Company's previously filed Annual Report on Form 10-K for the year ended December 31, 2013. |
(b) | This information represents revenues and certain
expenses of the PPRLP/Queens Portfolio for the year ended December 31, 2013, included in this Report on Form 8-K/A. |
(c) | Represents the pro forma amortization of above and below market leases based on the preliminary purchase price allocation of the PPRLP/Queens Portfolio and the impact of straight-line rents, which was based on the information available at this time. Subsequent adjustment to the allocation may be made based on additional information. |
(d) | Represents
the reduction of management fee revenue attributed to the PPRLP/Queens Portfolio that were included in the historical consolidated statement of operations for the year ended December 31, 2013. |
(e) | Represents the pro forma amortization of an above market ground lease based on the preliminary purchase price allocation of the PPRLP/Queens Portfolio, which is based on the information available at this time. Subsequent adjustment to the allocation may be made based on additional information. |
(f) | Represents
the pro forma depreciation and amortization expense based on the preliminary purchase price allocation of the PPRLP/Queens Portfolio, which is based on the information available at this time. Subsequent adjustment to the allocation may be made based on additional information. |
(g) | Represents the pro forma amortization of debt premium on the mortgage notes payable based on the preliminary purchase price allocation of the PPRLP/Queens Portfolio, which is based on the information available at this time. Subsequent adjustment to the allocation may be made based on additional information. |
(h) | Represents
the reduction of equity in income of unconsolidated joint ventures that was attributed to the PPRLP/Queens Portfolio that was included in the historical consolidated statement of operations for the year ended December 31, 2013. |
(i) | Represents the pro forma effect of the acquisition of the PPRLP/Queens Portfolio attributable to noncontrolling interests. |
(j) | Represents
common shares issued to Ontario in connection with the acquisition of the PPRLP/Queens Portfolio. |
THE
MACERICH COMPANY | |
By: THOMAS E. O’HERN | |
/s/ THOMAS E. O’HERN | |
Senior Executive Vice President, | |
Chief Financial Officer | |
and Treasurer |
EXHIBIT NUMBER | NAME | ||
23.1 | Consent
of KPMG LLP, dated January 26, 2015 |
This ‘8-K’ Filing | Date | Other Filings | ||
---|---|---|---|---|
Filed on: | 1/26/15 | |||
12/31/14 | ||||
11/18/14 | 4, 8-K | |||
For Period End: | 11/14/14 | 3, 8-K | ||
9/30/14 | 10-Q | |||
12/31/13 | 10-K, 11-K | |||
1/1/13 | 4 | |||
12/31/12 | 10-K, 11-K | |||
12/31/11 | 10-K, 11-K | |||
List all Filings |