Macerich’s Funds From Operations Increase 11%

Macerich Co., a real estate investment trust, said funds from operations grew 11% in the third quarter as it continued to see strong occupancy levels, leasing activity and tenant sales.

Funds from operations, which add depreciation and amortization to earnings, increased to $81.1 million, or $1.04 a share, from $72.9 million, or 95 cents, a year earlier.

The Santa Monica-based company said net income, after preferred dividends, fell to $4.1 million, or 7 cents a share, from $17.3 million, or 29 cents, a year earlier. Income from continuing operations dropped to $11 million from $22.8 million. Revenue surged 58% to $205.4 million from $130 million.

Analysts had expected funds from operations of $1.05 a share, according to Thomson Financial.

Macerich tightened its full-year expectations for funds from operations to $4.34 to $4.40 a share. It cut its earnings expectations to a range of 87 cents to 93 cents a share.

In August, Macerich forecast funds from operations of $4.30 to $4.40 a share and earnings of 89 cents to 99 cents a share. Analysts have predicted 2005 funds from operations of $4.37 a share.

Macerich shares fell 90 cents to $62.20.