LOS ANGELES—According to a report from RBC CapitalMarkets, Macerich Co. just missed itsestimated NOI for Q1 2014.FFO/share comes in at $0.81, missing estimates by$0.02 and census by $0.03. The REIT did exceed interest expenses by$0.01, which the report says is offset the $0.02 losses on the NOIline. NOI was driven down by lower other income and lowerpercentage rents.


Although NOI just missed the mark by RBC Capital's estimates, itdid see healthy same store NOI growth this quarter at about 3.5%.Comparatively, the company experienced 3.4% growth in Q1 of 2013and 4.9% growth in the final quarter of 2013. TheREIT also experienced growth in store tenantsales, which were up 0.9% to $565 per square foot; as well as majorgrowth in occupancy, which reached 95.1%. RBC Capital notes this isthe highest level on record for Macerich. GlobeSt.com reported, forexample, two new tenant signings at Tyson's Tower inWashington DC earlier this year. Along with occupancy, leasingspreads fared well, performing at 14.8% while base rent per squarefoot continued to grow.


Overall, the REIT showed a strong quarter with minimal losses.The most noticeable loss was in the company's operatingmargin, which fell from 68.4% in Q4 of 2013 to 65.8%. NOIyields on gross book value also fell to 7.5% from 6.8% in the samequarter last year. Despite the near misses, the company forecastedan FFO/share of $3.50 to $3.60, and RBC Capital is in agreementwith the group.


During the quarter, the REIT sold three, non-core assetstotaling $34.1 million, but the company has four major developmentsunder construction totaling $900 million. RBC Capital was not ableto comment before the publication of this story.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.