Macerich(US:MAC)2022-02-25 17:11Financial Transactions - The Company sold Paradise Valley Mall for $100 million, resulting in a gain of approximately $5.6 million, and reinvested $95.3 million to pay down its line of credit[13]. - The Company sold Tucson La Encantada for $165.3 million, resulting in a gain of approximately $117.2 million, using net cash proceeds of $100.1 million to pay down debt[14]. - The Company recognized a loss of approximately $28.3 million from the assignment of its joint venture interest in The Shops at North Bridge[15]. - The Company closed on a new credit agreement providing for a $700 million facility, including a $525 million revolving loan and a $175 million term loan[20]. Redevelopment and Capital Expenditures - The Company incurred $106.9 million of the total $427.7 million in costs for the redevelopment of One Westside, with an estimated total project cost of $500 million to $550 million[23]. - The Company anticipates spending between $130 million to $160 million for the redevelopment of several Sears stores, with $40.9 million funded as of December 31, 2021[25]. Dividends and Shareholder Returns - The Company declared a cash dividend of $0.15 per share for each quarter in 2021, with a similar dividend declared for the first quarter of 2022[27]. Portfolio and Property Management - The Company has a total of 49 Centers, including 44 Regional Town Centers and five Community/Power Shopping Centers, totaling approximately 48 million square feet of GLA[43]. - The Company is actively seeking replacement tenants for vacant anchor sites and considering redevelopment opportunities[63]. Lease and Rental Information - For the year ended December 31, 2021, the Centers derived approximately 72% of their total rents from Mall Stores and Freestanding Stores under 10,000 square feet[46]. - The average base rent per square foot for Mall Stores and Freestanding Stores under 10,000 square feet was $59.86 in 2021, an increase from $59.63 in 2020[51]. - The average base rent per square foot for Big Box and Anchor tenants was $17.26 in 2021, a slight decrease from $17.58 in 2020[52]. - Scheduled lease expirations for Mall Stores and Freestanding Stores under 10,000 square feet in 2022 include 367 leases, representing 18.39% of total leased GLA[54]. - The average base rent per square foot for expiring leases in 2022 is $57.87, accounting for 16.21% of base rent represented by expiring leases[54]. - The average base rent per square foot on leases executed during 2021 for consolidated centers was $59.86[51]. - The average base rent per square foot on leases expiring during 2021 for consolidated centers was $55.91[51]. - In 2023, the company has 26 leases expiring, representing approximately 648,519 square feet, which is 7.92% of total leased GLA, with an ending base rent of $18.65 per square foot[56]. - For 2024, 28 leases are set to expire, totaling 673,305 square feet, or 8.22% of total leased GLA, with an ending base rent of $25.45 per square foot[56]. - The company anticipates 32 leases expiring in 2025, covering 1,154,741 square feet, which is 14.10% of total leased GLA, with an ending base rent of $13.38 per square foot[56]. Tenant and Employee Information - The top three tenants by total rents as of December 31, 2021, each contributed approximately 2.4% of total rents[48]. - Tenant space of 10,000 square feet and under comprises approximately 63% of all Mall Store and Freestanding Store space[50]. - The company employs approximately 640 individuals, with a turnover rate of 13% in 2021[68][71]. - As of December 31, 2021, approximately 58% of the company's employees were female and 28% were non-white, reflecting its commitment to diversity and inclusion[70]. Health and Safety - The company has established operational protocols to ensure health and safety at its centers, achieving SafeGuard certification from Bureau Veritas[72]. Industry Trends and Performance - The shopping center industry is seasonal, with the fourth quarter typically seeing the highest occupancy and retail sales, impacting earnings positively during this period[73]. - The Company expects the COVID-19 pandemic to continue negatively impacting its results for 2022 due to reduced occupancy and additional Anchor closures[26]. Debt and Interest Rate Management - As of December 31, 2021, the total fixed rate debt for Consolidated Centers was $3.8 billion, with an average interest rate of 3.94%[322]. - The total floating rate debt for Consolidated Centers was $738.9 million, with an average interest rate of 2.61% as of December 31, 2021[322]. - A 1% increase in interest rates is expected to decrease future earnings and cash flows by approximately $8.4 million per year based on $843.3 million of floating rate debt outstanding[326]. - The Company's pro rata share of Unconsolidated Joint Venture Centers' fixed rate debt was $2.8 billion as of December 31, 2021, with an average interest rate of 3.83%[323]. - The Company has two interest rate cap agreements in place to manage interest rate risk[325]. - The total debt for Consolidated Centers was $4.55 billion as of December 31, 2021[322]. - The Company plans to transition its LIBOR-based borrowings to a replacement rate by June 30, 2023, due to the discontinuation of LIBOR[329]. - The average interest rate on fixed rate debt for Unconsolidated Joint Venture Centers was 3.83% as of December 31, 2021, compared to 3.82% in 2020[323]. - The Company’s total floating rate debt for Unconsolidated Joint Venture Centers was $104.3 million as of December 31, 2021, with an average interest rate of 2.60%[323]. Sustainability and Recognition - The Company achieved a 1 GRESB ranking in the North American Retail Sector for seven consecutive years from 2015 to 2021, highlighting its leadership in sustainability[74].