Macerich Announces a 46% Increase in AFFO Per Share

A reconciliation of EPS to FFO per share and AFFO per share-diluted follows:

Estimated EPS range:

$1.93   -   $2.01

Less: Gain on asset sales

-.98   -     -.98

Plus:  Impairment on real estate

.39   -       .39

Plus:  Real estate depreciation and amortization

$2.43   -   $2.43

Estimated range for FFO per share-diluted

$3.77  to  $3.85

Less:  Net positive FFO impact of Valley View

- .71  -      -.71

Estimated AFFO per share-diluted:

$3.06  to   $3.14

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Results of Operations:

Results before 

Impact of 

Results after 

Discontinued Operations (a)

Discontinued Operations (a)

Discontinued Operations (a)

For the Three Months 

For the Three Months 

For the Three Months 

Ended March 31,

Ended March 31,

Ended March 31,

Unaudited

Unaudited

2012

2011

2012

2011

2012

2011

Minimum rents 

$123,638

$109,521

($1,220)

($3,687)

$122,418

$105,834

Percentage rents   

3,994

2,954

(15)

(164)

3,979

2,790

Tenant recoveries

66,772

61,672

(639)

(1,881)

66,133

59,791

Management Companies' revenues

11,215

10,584

-

-

11,215

10,584

Other income

11,002

6,338

(18)

(72)

10,984

6,266

Total revenues

216,621

191,069

(1,892)

(5,804)

214,729

185,265

Shopping center and operating  expenses 

68,817

62,775

(1,401)

(3,523)

67,416

59,252

Management Companies' operating  expenses 

22,527

25,855

-

-

22,527

25,855

Income tax provision (benefit)

1,850

(2,478)

-

-

1,850

(2,478)

Depreciation and amortization 

76,964

64,626

(1,125)

(2,759)

75,839

61,867

REIT general and administrative expenses 

4,518

7,644

-

-

4,518

7,644

Interest expense  

47,123

51,997

(3,104)

(2,373)

44,019

49,624

Loss on early extinguishment of debt

(344)

(9,101)

344

-

-

(9,101)

(Loss) gain on remeasurement, sale or write down of assets, net

(35,727)

(437)

54,314

2,237

18,587

1,800

Co-venture interests (b)

(1,092)

(1,296)

-

-

(1,092)

(1,296)

Equity in income of unconsolidated joint ventures 

30,618

30,275

-

-

30,618

30,275

(Loss) income from continuing operations

(11,723)

91

58,396

5,088

46,673

5,179

Discontinued operations:

   Loss on sale, disposition or write-down of assets, net

-

-

(54,658)

(2,237)

(54,658)

(2,237)

   Loss from discontinued operations

-

-

(3,738)

(2,851)

(3,738)

(2,851)

Total loss from discontinued operations

-

-

(58,396)

(5,088)

(58,396)

(5,088)

Net (loss) income

(11,723)

91

-

-

(11,723)

91

Less net income attributable to noncontrolling interests

2,345

57

-

-

2,345

57

Net (loss) income available to common stockholders

($14,068)

$34

$0

$0

($14,068)

$34

Average number of shares outstanding - basic

132,273

130,574

132,273

130,574

Average shares outstanding, assuming full conversion of OP Units  (c)

143,452

142,477

143,452

142,477

Average shares outstanding - Funds From Operations ("FFO") - diluted (c) 

143,452

142,477

143,452

142,477

Per share income - diluted before discontinued operations

-

-

$0.30

$0.04

Net (loss) income per share-basic 

($0.11)

$0.00

($0.11)

$0.00

Net (loss) income per share - diluted  

($0.11)

$0.00

($0.11)

$0.00

Dividend declared per share 

$0.55

$0.50

$0.55

$0.50

FFO - basic  (c) (d)

$106,173

$73,681

$106,173

$73,681

FFO - diluted (c) (d)

$106,173

$73,681

$106,173

$73,681

FFO per share- basic   (c) (d)

$0.74

$0.52

$0.74

$0.52

FFO per share- diluted  (c) (d)

$0.74

$0.52

$0.74

$0.52

Adjusted FFO ("AFFO") per share- diluted  (c)(d)

$0.76

$0.52

$0.76

$0.52

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

    (a)  The Company has classified the results of operations on any dispositions, including Valley View Center, as discontinued operations for the

            three months ended March 31, 2012 and 2011.

    (b)  This represents the outside partners' allocation of net income in the Chandler Fashion Center/Freehold Raceway Mall joint venture.

    (c)  The Macerich Partnership, L.P. (the "Operating Partnership" or the "OP") has operating partnership units ("OP units"). OP units can be converted 

           into shares of Company common stock. Conversion of the OP units not owned by the Company has been assumed for purposes of calculating FFO 

           per share and the weighted average number of shares outstanding. The computation of average shares for FFO - diluted includes the effect of share 

           and unit-based compensation plans and convertible senior notes using the treasury stock method. It also assumes conversion of MACWH, LP 

           preferred and common units to the extent they are dilutive to the calculation. 

    (d)  The Company uses FFO in addition to net income to report its operating and financial results and considers FFO and FFO-diluted as 

           supplemental measures for the real estate industry and a supplement to Generally Accepted Accounting Principles ("GAAP") measures.

           NAREIT defines FFO as net income (loss) (computed in accordance with GAAP), excluding gains (or losses) from extraordinary items and 

           sales of depreciated operating properties, plus real estate related depreciation and amortization, impairment write-downs of real estate and

           write-downs of investments in an affiliate where the write-downs have been driven by a decrease in the value of real estate held by the affiliate

           and after adjustments for unconsolidated joint ventures. Adjustments for unconsolidated joint ventures are calculated to reflect FFO on the

           same basis.

           Adjusted FFO ("AFFO") excludes the FFO impact of Shoppingtown Mall and Valley View Center for the three months ended March 31, 2012

           and 2011. In December 2011, the Company conveyed Shoppingtown Mall to the lender by a deed in lieu of foreclosure. 

           In July 2010, a court-appointed receiver assumed operational control of  Valley View Center and responsibility for managing all aspects of the property.

           Valley View Center was sold by the receiver on April 23, 2012, and the related non-recourse mortgage loan obligation was fully extinguished on that 

           date. 

           FFO and FFO on a diluted basis are useful to investors in comparing operating and financial results between periods.

           This is especially true since FFO excludes real estate depreciation and amortization, as the Company believes real estate values fluctuate

           based on market conditions rather than depreciating in value ratably on a straight-line basis over time. The Company believes that AFFO

           and AFFO on a diluted basis provide useful supplemental information regarding the Company's performance as they show a more meaningful

           and consistent comparison of the Company's operating performance and allow investors to more easily compare the Company's results

           without taking into account the unrelated non-cash charges on properties controlled by either a receiver or loan servicer.

           FFO and AFFO on a diluted basis are measures investors find most useful in measuring the dilutive impact of outstanding convertible securities.

           FFO and AFFO do not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to net income (loss) as 

           defined by GAAP,  and are not indicative of cash available to fund all cash flow needs. The Company also cautions that FFO and AFFO as presented,

           may not be comparable to similarly titled measures reported by other real estate investment trusts.

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Pro rata share of unconsolidated joint ventures:

 For the Three Months  

 Ended March 31, 

 Unaudited 

2012

2011

Revenues:

    Minimum rents

$69,485

$74,901

    Percentage rents

2,269

2,215

    Tenant recoveries

33,337

36,352

    Other

5,240

5,219

    Total revenues

110,331

118,687

Expenses:

     Shopping center and operating expenses

39,745

41,954

     Interest expense

26,722

30,583

     Depreciation and amortization

24,757

28,525

     Total operating expenses

91,224

101,062

Gain on remeasurement, sale or write down of assets, net

11,511

12,550

Equity in income of joint ventures

-

100

     Net income 

$30,618

$30,275

Reconciliation of Net (loss) income to FFO and AFFO (d):

 For the Three Months  

 Ended March 31, 

 Unaudited 

2012

2011

Net (loss) income available to common stockholders

($14,068)

$34

Adjustments to reconcile net (loss) income to FFO - basic

   Noncontrolling interests in OP

(1,188)

3

   Loss on remeasurement, sale or write down of consolidated assets, net

35,727

437

        plus gain on undepreciated asset sales - consolidated assets

-

542

        plus non-controlling interests share of  gain on remeasurement, sale or 

           write down of consolidated joint ventures, net

3,555

-

   Gain on remeasurement, sale or write down of assets from 

                   unconsolidated entities (pro rata), net

(11,511)

(12,550)

        plus gain on undepreciated asset sales - unconsolidated entities (pro rata share)

-

40

   Depreciation and amortization on consolidated assets 

76,964

64,626

   Less depreciation and amortization allocable to noncontrolling interests

        on consolidated joint ventures

(4,850)

(4,494)

   Depreciation and amortization on joint ventures (pro rata) 

24,757

28,525

   Less: depreciation on personal property 

(3,213)

(3,482)

Total FFO - basic

106,173

73,681

Additional adjustment to arrive at FFO - diluted:

    Preferred units - dividends

-

-

Total FFO - diluted

$106,173

$73,681

Additional adjustments to arrive at AFFO - diluted:

    Add: Shoppingtown Mall FFO

360

20

    Add: Valley View Center FFO

2,629

790

Total AFFO- diluted

$109,162

$74,491

Reconciliation of EPS to FFO and AFFO per diluted share:

 For the Three Months  

 Ended March 31, 

 Unaudited 

2012

2011

Earnings per share - diluted

($0.11)

$0.00

   Per share impact of depreciation and amortization of real estate

0.66

0.60

   Per share impact of loss (gain) on remeasurement, sale or write down of assets

0.19

(0.08)

FFO per share - diluted

$0.74

$0.52

   Per share impact - Shoppingtown Mall and Valley View Center

0.02

0.00

AFFO per share - diluted

$0.76

$0.52

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

 For the Three Months  

Reconciliation of Net (loss) income to EBITDA:

 Ended March 31, 

 Unaudited 

2012

2011

Net (loss) income available to common stockholders

($14,068)

$34

   Interest expense - consolidated assets

47,123

51,997

   Interest expense - unconsolidated entities (pro rata)

26,722

30,583

   Depreciation and amortization - consolidated assets

76,964

64,626

   Depreciation and amortization - unconsolidated entities (pro rata)

24,757

28,525

   Noncontrolling interests in OP

(1,188)

3

   Less: Interest expense and depreciation and amortization

            allocable to noncontrolling interests on consolidated joint ventures

(7,776)

(7,479)

   Loss on early extinguishment of debt - consolidated entities

344

9,101

   Loss on remeasurement, sale or write down of assets - consolidated assets, net

35,727

437

   Gain on remeasurement, sale or write down of assets - unconsolidated entities (pro rata), net

(11,511)

(12,550)

   Add: Non-controlling interests share of  gain on sale of consolidated assets, net

3,555

-

   Income tax provision (benefit)

1,850

(2,478)

   Distributions on preferred units

208

207

EBITDA   (e)

$182,707

$163,006

Reconciliation of EBITDA to Same Centers - Net Operating Income ("NOI"):

 For the Three Months  

 Ended March 31, 

 Unaudited 

2012

2011

EBITDA (e)

$182,707

$163,006

Add: REIT general and administrative expenses

4,518

7,644

        Management Companies' revenues

(11,215)

(10,584)

        Management Companies' operating  expenses 

22,527

25,855

        Lease termination income, straight-line and above/below market adjustments 

          to minimum rents of comparable centers

(4,291)

(3,248)

        EBITDA of non-comparable centers

(32,593)

(26,390)

Same Centers - NOI (f)

$161,653

$156,283

(e) EBITDA represents earnings before interest, income taxes, depreciation, amortization, noncontrolling interests, extraordinary items, gain (loss) on

      remeasurement, sale or write down of assets and preferred dividends and includes joint ventures at their pro rata share. Management considers EBITDA 

      to be an appropriate supplemental measure to net income because it helps investors understand the ability of the Company to incur and service debt 

      and make capital expenditures. EBITDA should not be construed as an alternative to operating income as an indicator of the Company's operating 

      performance, or to cash flows from operating activities (as determined in accordance with GAAP) or as a measure of liquidity.

     EBITDA, as presented, may not be comparable to similarly titled measurements reported by other companies.

(f) The Company presents same-center NOI because the Company believes it is useful for investors to evaluate the operating performance of 

     comparable centers. Same-center NOI is calculated using total EBITDA and subtracting out EBITDA from non-comparable centers and

     eliminating the management companies and the Company's general and administrative expenses. Same center NOI excludes the impact of lease 

      termination income, straight-line and above/below market adjustments to minimum rents.