The Macerich Company (MAC) has reported a 91.05 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $37.13 million, or $0.26 a share in the quarter, compared with $414.96 million, or $2.65 a share for the same period last year. Revenue during the quarter dropped 15.20 percent to $272 million from $320.76 million in the previous year period.
Cost of revenue dropped 11.43 percent or $13.03 million during the quarter to $100.92 million. Gross margin for the quarter contracted 158 basis points over the previous year period to 62.90 percent.
Total expenses were $195.29 million for the quarter, down 14.42 percent or $32.90 million from year-ago period. Operating margin for the quarter contracted 66 basis points over the previous year period to 28.20 percent.
Operating income for the quarter was $76.71 million, compared with $92.57 million in the previous year period. However, the adjusted EBITDA for the quarter was almost stable at $246.74 million, when compared with the prior year period. At the same time, adjusted EBITDA margin improved 1373 basis points in the quarter to 90.71 percent from 76.99 percent in the last year period.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $1.26 to $1.36.
Revenue from real estate activities during the quarter declined 15.37 percent or $46.43 million to $255.66 million.
Income from operating leases during the quarter dropped 12.79 percent or $25 million to $170.40 million. Revenue from tenant reimbursements was $74.71 million for the quarter, down 23.37 percent or $22.79 million from year-ago period.
Income from management fees during the quarter increased 14.75 percent or $1.36 million to $10.54 million.
Other income during the quarter was $16.34 million, down 12.46 percent or $2.33 million from year-ago period.
“As borne out by the continued strength in our operating results and portfolio metrics, Macerich remains well-positioned in an ever-changing and evolving retail landscape,” said The Company’s chairman and chief executive officer, Arthur Coppola. “Furthermore, we have continued to re-shape our portfolio by selling two non-core assets with the proceeds slated for reinvestment in our highly value-accretive pipeline of development/redevelopment projects in densely-populated hub and gateway cities.”
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