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Macerich Cuts Quarterly Dividend From $0.75 To $0.50/Share; Expects Cut Will Result In Retaining Incremental Cash In Excess Of $98M

The Board of Directors of the Macerich Company (NYSE:MAC) declared a quarterly dividend of $.50 per share of common stock, consisting of a combination of cash and shares of the Company's common stock.  The

Benzinga · 03/16/2020 11:02

The Board of Directors of the Macerich Company (NYSE:MAC) declared a quarterly dividend of $.50 per share of common stock, consisting of a combination of cash and shares of the Company's common stock.  The dividend is payable on June 3, 2020 to stockholders of record at the close of business on April 22, 2020.

Given the uncertain and rapidly changing environment, the Board of Directors has determined that the cash component of the dividend (other than cash paid in lieu of fractional shares) will not exceed 20% in the aggregate, or $.10 per share, with the balance payable in shares of the Company's common stock.  This will allow the Company to comply with the REIT taxable income distribution requirements, while retaining capital and enhancing the Company's financial flexibility.  Macerich's portfolio is well positioned with a highly diversified tenant base of the world's leading retailers. 

The combination of the dividend reduction and the stock dividend will result in the Company retaining incremental cash in excess of $98 million on a quarterly basis. The decision to issue a stock dividend will be made by the Board on a quarterly basis.  If implemented on an annual basis, the reduced dividend and the stock dividend would result in approximately $400 million of additional retained cash.  The Company expects to use the retained cash to reduce debt and for general corporate purposes.  In addition, the Company will be evaluating all capital uses including the size and pace of redevelopment investments. 

The Company expects the dividend to be a taxable dividend to stockholders, regardless of whether a particular stockholder receives the dividend in the form of cash or shares.  The Company reserves the right to pay future dividends entirely in cash.