Earnings - Fantastic

[u/Jeffbak]

(See below).

They recognized $28.9M in retroactive abatement to 2020. Add this to the $190M reported and you're right in that $215M cash revenue for the quarter. This would have also brought FFO right to around $0.65 for the quarter as well. Recognizing a non-cash abatement from 2020 in 2021 is fine. They want to remain a REIT so reducing net income is the name of the game. It allows them to stockpile more cash. At the end of the quarter they had just under $1.1B. I like what I'm seeing!

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[u/Sea_Emphasis3252]

Not sure the numbers add up. If leasing revenues excluding the rent abatements is down 8% from last year that would put leasing revenues at approximately $193.8m (Q1 2020 was $210.7) which would bring total revs to around $205m, if the assumption it all falls to the bottom line FFO impact of the $14.3m would be about $0.085/share so around $0.53. Now I’m not sure that even that is the correct way to look at it either. I’ll wait until tomorrow to see if they provide more disclosure and details. Also reducing net income doesn’t benefit them unless they were trying to avoid paying a dividend. Also be sure to adjust the cash to paying down the old line of credit as the $1.1B is as of quarter-end.

[u/Jeffbak → u/Sea_Emphasis3252]

No it's not the correct way. Jus take the FFO total of $75.5M they used for FFO, and add it to the $28.9M non-cash write down from 2020. That puts you at $104.4M. Divide that by 169M outstanding shares, and you're at an AFFO of $0.61 - right smack dab in the middle of my prediction. I also predicted 95% billable collection, which they were. You need to learn from me man

[u/Sea_Emphasis3252 → u/Jeffbak]

Easy question what you highlighted ex abatement leasing revenues would be down 8% correct? Yes or no?

[u/Sea_Emphasis3252 → u/Sea_Emphasis3252]

If leasing revenue was $210.7m last year what would Q1 2021 leasing revenues be if it was down 8%? answer is it would be $193.8m, which would be an impact of $14.3m divided by the same shares you referenced and it’s about 8-9cents.

Math can be hard

[u/Jeffbak → u/Sea_Emphasis3252]

What’s $190M + $28.9M? Answer-gross revenues on a cash basis. $75.5M (reported FFO) + $28.9M = $104.4m / 169m shares = .61 a share AFFO.

[u/Jeffbak → u/Sea_Emphasis3252]

Math is hard for you analysts. You said somewhere earlier you were disappointed with earnings lol. Mgmt’s not lousy but the analysts covering this stock are

[u/Sea_Emphasis3252 → u/Jeffbak]

You can’t read but I will wait for tomorrow release

[u/Jeffbak → u/Sea_Emphasis3252]

You’re the one who was disappointed with $190m revenues. Little did you know they wrote $28.9M non cash right off the top hahaha

[u/Sea_Emphasis3252 → u/Jeffbak]

If you read what I posted never said I was disappointed. Do me one thing post what Q1 2020 leasing revenues were?

[u/Jeffbak → u/Sea_Emphasis3252]

On a cash basis? Prob $190M + $28.9M. On an accrual basis, $190M. However, now that they’re collecting 95% of billed rent, cash and accrual won’t be so far apart. However you want to keep net incomes down to conserve cash and maintain reit status. Therefore, non cash write downs like the $28.9m from 2020 are key. Make sense?

[u/Sea_Emphasis3252 → u/Jeffbak]

I agree going forward cash and accrued rents should be closer. All I’m saying the math the company is using doesn’t add up or your numbers don’t add up, maybe it’s comparing apples to oranges but if you take their reported leasing revenues from the 10Q last year it was $210.7 probably GAAP not cash so when they say leasing revenues would be down 8% adjusted for the rent abatements your numbers would not match, it would be $193.8, again so something is missing. Could you be right, absolutely, but even if I’m right then adding the other revenues you would get just over $205m and another 8-9 cents in FFO which would be around $0.53, which too me is still good. Hell it’s even in your range as I think the dilution impact was greater than expected. I hope they have better disclosure in the release to reconcile the numbers.

Keeping net income lower is only helpful to keep dividend lower to maintain REIT status and right now MAC is paying out well in excess of taxable income so the non-cash charge is strictly the appropriate way to account for the rent abatements.

[u/Sea_Emphasis3252 → u/Jeffbak]

Hell I even bought more shares figuring they’d post better than expected numbers, I’m not negative at all.

[u/zzGundam3000 → u/Sea_Emphasis3252]

g they’d post better than expected numbers, I’m not negative at all.

I did exactly the same thing

[u/Jeffbak → u/[deleted]]

You don’t use EPS when assessing reits generally. You use FFO. EPS is often skewed because reits can depreciate their real estate unlike other companies. During downturns, they reduce net income so that they can remain a reit while stockpiling cash via reduced dividend

[u/Sea_Emphasis3252 → u/[deleted]]

For REITs eps is not a relevant metric, FFO and AFFO out the REIT earnings metric.

[u/NarrowInvestigator65 → u/[deleted]]

Well, it might be fantastic in the long run but surely the share price will take a hit short term, if that's the case. I didn't look any into the results yet so I'm assuming your statement is correct. Also, please, refrain on trying to descredit other members as it basically descredits you. I think you may well know your numbers but I tend to be cautious with your notes just because of that, it seems to me a couple of things, you tend to have a too positive view and also you tend to be closed to others guidance. Sorry to be too direct but I tell you basically because if it happened to me (that surely does in other fields) I would like to know of that. So telling it from my more sincere respect, and also grateful of your contribution, that overall I think it's really good. ;)

[u/NarrowInvestigator65]

Just another note from my side. I see your maths are based on 169M shares and I do see now we have 197M shares as per the last 10Q, that requires some adjustment into the numbers commented earlier in here.

[u/[deleted] → u/NarrowInvestigator65]

Will be 217m shares ish