Macerich Announces an 11% Increase in FFO

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

Estimated EPS range:

$  .12  to $  .20

Plus:  real estate depreciation and amortization

$2.40   -  $2.40

Estimated range for FFO per share- diluted:    

$2.52  to $2.60

Shoppingtown negative FFO

.26  -           .26

Valley View negative FFO

.06   -          .06

Estimated Adjusted FFO per share-diluted:

$2.84  to $2.92

(See attached tables)

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 September 30,

Ended September 30,

Ended September 30,

Unaudited

Unaudited

2011

2010

2011

2010

2011

2010

Minimum rents

$113,889

$106,612

-

($1,062)

$113,889

$105,550

Percentage rents  

4,137

3,862

-

-

4,137

3,862

Tenant recoveries

66,784

61,954

-

(146)

66,784

61,808

Management Companies' revenues

9,759

10,529

-

-

9,759

10,529

Other income

8,114

7,725

-

(3)

8,114

7,722

Total revenues

202,683

190,682

0

(1,211)

202,683

189,471

Shopping center and operating  expenses

68,244

64,379

11

(420)

68,255

63,959

Management Companies' operating  expenses

20,251

22,042

-

-

20,251

22,042

Income tax benefit

(1,566)

(2,662)

-

-

(1,566)

(2,662)

Depreciation and amortization

67,996

62,801

-

(616)

67,996

62,185

REIT general and administrative expenses

4,490

4,546

-

-

4,490

4,546

Interest expense  

49,153

51,662

-

-

49,153

51,662

(Loss) gain on early extinguishment of debt

(6)

2,096

-

-

(6)

2,096

Gain (loss) on remeasurement, sale or write down of assets, net

1,389

40

(348)

(48)

1,041

(8)

Co-venture interests (b)

(1,281)

(269)

-

-

(1,281)

(269)

Equity in income of unconsolidated joint ventures

20,039

19,687

-

-

20,039

19,687

Income from continuing operations

14,256

9,468

(359)

(223)

13,897

9,245

Discontinued operations:

  Gain on sale or write down of assets

-

-

348

48

348

48

   Income from discontinued operations

-

-

11

175

11

175

Total income from discontinued operations

-

-

359

223

359

223

Net income

14,256

9,468

-

-

14,256

9,468

Less net income attributable to noncontrolling interests

1,315

1,039

-

-

1,315

1,039

Net income available to common stockholders

$12,941

$8,429

$0

$0

$12,941

$8,429

Average number of shares outstanding - basic

132,096

130,213

132,096

130,213

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

143,151

142,020

143,151

142,020

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

143,151

142,020

143,151

142,020

Per share income - diluted before discontinued operations

-

-

$0.10

$0.06

Net income per share-basic

$0.10

$0.06

$0.10

$0.06

Net income per share - diluted  (c)

$0.10

$0.06

$0.10

$0.06

Dividend declared per share

$0.50

$0.50

$0.50

$0.50

FFO - basic  (c) (d)

$104,180

$93,321

$104,180

$93,321

FFO - diluted (c) (d)

$104,180

$93,321

$104,180

$93,321

FFO per share- basic   (c) (d)

$0.73

$0.66

$0.73

$0.66

FFO per share- diluted  (c) (d)

$0.73

$0.66

$0.73

$0.66

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

$0.75

$0.66

$0.75

$0.66

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 Nine Months

For the Nine Months

For the Nine Months

Ended September 30,

Ended September 30,

Ended September 30,

Unaudited

Unaudited

2011

2010

2011

2010

2011

2010

Minimum rents

$334,688

$311,098

(1,520)

($2,076)

$333,168

$309,022

Percentage rents  

10,235

9,957

-

-

10,235

9,957

Tenant recoveries

189,538

180,222

(341)

(431)

189,197

179,791

Management Companies' revenues

28,460

32,867

-

-

28,460

32,867

Other income

22,614

20,529

-

(14)

22,614

20,515

Total revenues

585,535

554,673

(1,861)

(2,521)

583,674

552,152

Shopping center and operating  expenses

195,458

182,043

(792)

(1,309)

194,666

180,734

Management Companies' operating  expenses

67,030

68,696

-

-

67,030

68,696

Income tax benefit

(5,811)

(5,252)

-

-

(5,811)

(5,252)

Depreciation and amortization

198,454

181,930

(923)

(1,696)

197,531

180,234

REIT general and administrative expenses

15,876

15,704

-

-

15,876

15,704

Interest expense  

150,182

159,311

-

-

150,182

159,311

(Loss) gain on early extinguishment of debt

(9,139)

1,608

-

-

(9,139)

1,608

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

(33,514)

551

1,913

23

(31,601)

574

Co-venture interests (b)

(3,779)

(3,646)

-

-

(3,779)

(3,646)

Equity in income of unconsolidated joint ventures

75,521

51,908

-

-

75,521

51,908

(Loss) income from continuing operations

(6,565)

2,662

1,767

507

(4,798)

3,169

Discontinued operations:

  Loss on sale or write down of assets

-

-

(1,913)

(23)

(1,913)

(23)

  Income (loss) from discontinued operations

-

-

146

(484)

146

(484)

Total loss from discontinued operations

-

-

(1,767)

(507)

(1,767)

(507)

Net (loss) income

(6,565)

2,662

-

-

(6,565)

2,662

Less net (loss) income attributable to noncontrolling interests

(324)

1,030

-

-

(324)

1,030

Net (loss) income available to common stockholders

($6,241)

$1,632

$0

$0

($6,241)

$1,632

Average number of shares outstanding - basic

131,459

116,992

131,459

116,992

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

142,925

128,998

142,925

128,998

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

142,925

128,998

142,925

128,998

Per share (loss) income - diluted before discontinued operations

-

-

($0.05)

$0.00

Net (loss) income per share-basic

($0.06)

$0.00

($0.06)

$0.00

Net (loss) income per share - diluted  (c)

($0.06)

$0.00

($0.06)

$0.00

Dividend declared per share

$1.50

$1.60

$1.50

$1.60

FFO - basic  (c) (d)

$244,601

$242,387

$244,601

$242,387

FFO - diluted (c) (d)

$244,601

$242,387

$244,601

$242,387

FFO per share- basic   (c) (d)

$1.71

$1.88

$1.71

$1.88

FFO per share- diluted  (c) (d)

$1.71

$1.88

$1.71

$1.88

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

$2.01

$1.88

$2.01

$1.88

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(a)

The Company has classified the results of operations on any dispositions as discontinued operations for the three and nine months ended September 30, 2011 and 2010.

(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 the 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 and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. Adjusted FFO ("AFFO") excludes the negative FFO impact of Shoppingtown Mall and Valley View Center for the three and nine months ended September 30, 2011. Valley View Center is in receivership and Shoppingtown Mall is under the control of the loan servicer and likely will be transferred to a receiver in the near future. 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 impairment losses and other non-cash charges on properties controlled by either a receiver or loan servicer, which are non-routine items. 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.

Gains or losses on sales of undepreciated assets and the impact of amortization of above/below market leases have been included in FFO. The inclusion of gains on sales of undepreciated assets increased FFO for the three and nine months ended September 30, 2011 and 2010 by $0.0 million and $2.3 million, $0.1 million and $0.5 million respectively, or by $0.00 per share, $0.02 per share, $0.00 and $0.00 per share, respectively. Additionally, amortization of above/below market leases increased FFO for the three and nine months ended September 30, 2011 and 2010 by $3.1 million, $8.7 million, $2.5 million and $8.3 million, respectively, or by $0.02 per share, $0.06 per share, $0.02 per share and $0.06 per share, respectively.

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Pro rata share of unconsolidated joint ventures:

For the Three Months  

For the Nine Months  

Ended September 30,

Ended September 30,

Unaudited

Unaudited

2011

2010

2011

2010

Revenues:

   Minimum rents

$79,254

$75,093

$229,360

$222,494

   Percentage rents

3,636

3,155

7,957

6,808

   Tenant recoveries

38,237

39,424

111,742

112,489

   Other

6,218

5,914

17,077

14,733

   Total revenues

127,345

123,586

366,136

356,524

Expenses:

    Shopping center and operating expenses

44,922

44,191

129,491

126,238

    Interest expense

31,091

32,131

91,538

94,516

    Depreciation and amortization

31,355

27,977

90,061

84,185

    Total operating expenses

107,368

104,299

311,090

304,939

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

23

333

12,583

699

Gain (loss) on early extinguishment of debt

39

-

7,792

(689)

Equity in income of joint ventures

-

67

100

313

    Net income

$20,039

$19,687

$75,521

$51,908

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

For the Three Months  

For the Nine Months  

Ended September 30,

Ended September 30,

Unaudited

Unaudited

2011

2010

2011

2010

Net income (loss) - available to common stockholders

$12,941

$8,429

($6,241)

$1,632

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

  Noncontrolling interests in OP

1,163

913

(544)

167

  (Gain) loss on remeasurement, sale or write down of consolidated assets , net

(1,389)

(40)

33,514

(551)

       plus gain on undepreciated asset sales - consolidated assets

-

-

2,277

-

       plus non-controlling interests share of  loss on remeasurement, sale or write down

          of consolidated joint ventures

-

33

(4)

2

       less write down of consolidated assets

(20)

-

(36,173)

-

  Gain on remeasurement, sale or write-down of assets from

                  unconsolidated entities (pro rata), net

(23)

(333)

(12,583)

(699)

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

20

92

71

489

       less write down of assets - unconsolidated entities (pro rata share)

-

-

-

(32)

  Depreciation and amortization on consolidated assets

67,996

62,801

198,454

181,930

  Less depreciation and amortization allocable to noncontrolling interests

       on consolidated joint ventures

(4,534)

(1,995)

(13,520)

(13,585)

  Depreciation and amortization on joint ventures (pro rata)

31,355

27,977

90,061

84,185

  Less: depreciation on personal property

(3,329)

(4,556)

(10,711)

(11,151)

Total FFO - basic

104,180

93,321

244,601

242,387

Additional adjustment to arrive at FFO - diluted:

   Preferred units - dividends

-

-

-

-

Total FFO - diluted

$104,180

$93,321

$244,601

$242,387

Additional adjustments to arrive at AFFO - diluted:

   Add: Shoppingtown Mall negative FFO

290

-

36,041

-

   Add: Valley View Center negative FFO

2,886

-

6,102

-

Total AFFO- diluted

$107,356

$93,321

$286,744

$242,387

Reconciliation of EPS to FFO and AFFO per diluted share:

For the Three Months  

For the Nine Months  

Ended September 30,

Ended September 30,

Unaudited

Unaudited

2011

2010

2011

2010

Earnings per share - diluted

$0.10

$0.06

($0.06)

$0.00

  Per share impact of depreciation and amortization of real estate

0.64

0.60

1.85

1.87

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

(0.01)

0.00

(0.08)

0.01

FFO per share - diluted

$0.73

$0.66

$1.71

$1.88

  Per share impact of  Shoppingtown Mall and Valley View Center negative FFO

0.02

0.00

0.30

0.00

AFFO per share - diluted

$0.75

$0.66

$2.01

$1.88

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

For the Three Months  

For the Nine Months  

Reconciliation of Net income (loss) to EBITDA:

Ended September 30,

Ended September 30,

Unaudited

Unaudited

2011

2010

2011

2010

Net income (loss) - available to common stockholders

$12,941

$8,429

($6,241)

$1,632

  Interest expense - consolidated assets

49,153

51,662

150,182

159,311

  Interest expense - unconsolidated entities (pro rata)

31,091

32,131

91,538

94,516

  Depreciation and amortization - consolidated assets

67,996

62,801

198,454

181,930

  Depreciation and amortization - unconsolidated entities (pro rata)

31,355

27,977

90,061

84,185

  Noncontrolling interests in OP

1,163

913

(544)

167

  Less: Interest expense and depreciation and amortization

           allocable to noncontrolling interests on consolidated joint ventures

(7,486)

(3,101)

(22,430)

(21,491)

  Loss (gain) on early extinguishment of debt - consolidated entities

6

(2,096)

9,139

(1,608)

  (Gain) loss on early extinguishment of debt - unconsolidated entities (pro rata)

(39)

-

(7,792)

689

  (Gain) loss on remeasurement, sale or write down of assets - consolidated assets

(1,389)

(40)

33,514

(551)

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

(23)

(333)

(12,583)

(699)

  Add: Non-controlling interests share of loss on sale of consolidated assets

-

33

(4)

2

  Add: Non-controlling interests share of gain on sale of unconsolidated assets

-

-

-

93

  Income tax benefit

(1,566)

(2,662)

(5,811)

(5,252)

  Distributions on preferred units

208

208

624

624

EBITDA   (e)

$183,410

$175,922

$518,107

$493,548

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

For the Three Months  

For the Nine Months  

Ended September 30,

Ended September 30,

Unaudited

Unaudited

2011

2010

2011

2010

EBITDA (e)

$183,410

$175,922

$518,107

$493,548

Add: REIT general and administrative expenses

4,490

4,546

15,876

15,704

       Management Companies' revenues

(9,759)

(10,529)

(28,460)

(32,867)

       Management Companies' operating  expenses

20,251

22,042

67,030

68,696

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

         to minimum rents of comparable centers

(8,482)

(8,169)

(15,767)

(16,599)

       EBITDA of non-comparable centers

(25,059)

(23,485)

(61,162)

(46,202)

Same Centers - NOI (f)

$164,851

$160,327

$495,624

$482,280

(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.