Macerich Announces Quarterly Results

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 June 30,

Ended June 30,

Ended June 30,

Unaudited

Unaudited

2010

2009

2010

2009

2010

2009

Minimum rents

$102,509

$123,504

1

($2,935)

$102,510

$120,569

Percentage rents  

3,108

2,686

-

(17)

3,108

2,669

Tenant recoveries

57,259

62,530

-

(765)

57,259

61,765

Management Companies' revenues

12,117

9,345

-

-

12,117

9,345

Other income

6,887

7,850

-

(23)

6,887

7,827

Total revenues

181,880

205,915

1

(3,740)

181,881

202,175

Shopping center and operating  expenses

56,731

67,565

(21)

(1,653)

56,710

65,912

Management Companies' operating  expenses

24,466

18,872

-

-

24,466

18,872

Income tax benefit

(1,375)

(380)

-

-

(1,375)

(380)

Depreciation and amortization

59,913

63,740

-

(1,438)

59,913

62,302

REIT general and administrative expenses

3,642

4,648

-

-

3,642

4,648

Interest expense  

52,238

71,914

-

-

52,238

71,914

(Loss) gain on early extinguishment of debt

(489)

7,127

-

-

(489)

7,127

Gain (loss) on sale or write down of assets

510

(25,605)

72

26,995

582

1,390

Co-venture interests (b)

(1,993)

-

-

-

(1,993)

-

Equity in income of unconsolidated joint ventures

15,762

14,556

-

-

15,762

14,556

Income (loss) income from continuing operations

55

(24,366)

94

26,346

149

1,980

Discontinued operations:

  Loss on sale or write down of assets

-

-

(72)

(26,995)

(72)

(26,995)

  (Loss) income from discontinued operations

-

-

(22)

649

(22)

649

Total loss from discontinued operations

-

-

(94)

(26,346)

(94)

(26,346)

Net income (loss)

55

(24,366)

-

-

55

(24,366)

Less net (loss) income attributable to noncontrolling interests

495

(2,630)

-

-

495

(2,630)

Net loss attributable to the Company

(440)

(21,736)

-

-

(440)

(21,736)

Less preferred dividends

-

-

-

-

-

-

Net loss available to common stockholders

($440)

($21,736)

-

-

($440)

($21,736)

Average number of shares outstanding - basic

123,446

77,270

123,446

77,270

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

135,495

88,970

135,495

88,970

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

135,495

88,970

135,495

88,970

Per share (loss) income- diluted before discontinued operations

-

-

($0.01)

$0.01

Net loss per share-basic

($0.01)

($0.29)

($0.01)

($0.29)

Net loss per share - diluted  (c)

($0.01)

($0.29)

($0.01)

($0.29)

Dividend declared per share

$0.50

$0.60

$0.50

$0.60

FFO - basic  (c) (d)

$77,466

$59,920

$77,466

$59,920

FFO - diluted (c) (d)

$77,466

$59,920

$77,466

$59,920

FFO per share- basic   (c) (d)

$0.57

$0.67

$0.57

$0.67

FFO per share- diluted  (c) (d)

$0.57

$0.67

$0.57

$0.67

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 Six Months

For the Six Months

For the Six Months

Ended June 30,

Ended June 30,

Ended June 30,

Unaudited

Unaudited

2010

2009

2010

2009

2010

2009

Minimum rents

$204,485

$250,976

5

($7,198)

$204,490

$243,778

Percentage rents  

6,095

5,487

-

(17)

6,095

5,470

Tenant recoveries

118,268

127,441

-

(1,530)

118,268

125,911

Management Companies' revenues

22,339

17,885

-

-

22,339

17,885

Other income

12,804

14,904

-

(50)

12,804

14,854

Total revenues

363,991

416,693

5

(8,795)

363,996

407,898

Shopping center and operating  expenses

117,663

138,346

(133)

(3,010)

117,530

135,336

Management Companies' operating  expenses

46,653

42,302

-

-

46,653

42,302

Income tax benefit

(2,590)

(1,181)

-

-

(2,590)

(1,181)

Depreciation and amortization

119,128

128,651

-

(2,874)

119,128

125,777

REIT general and administrative expenses

11,160

9,906

-

-

11,160

9,906

Interest expense  

107,649

141,852

-

4

107,649

141,856

(Loss) gain on early extinguishment of debt

(489)

29,601

-

-

(489)

29,601

Gain (loss) on sale or write down of assets

511

(24,849)

71

27,012

582

2,163

Co-venture interests (b)

(3,377)

-

-

-

(3,377)

-

Equity in income of unconsolidated joint ventures

32,221

30,482

-

-

32,221

30,482

(Loss) income from continuing operations

(6,806)

(7,949)

209

24,097

(6,597)

16,148

Discontinued operations:

  Loss on sale or write down of assets

-

-

(71)

(27,012)

(71)

(27,012)

  (Loss) income from discontinued operations

-

-

(138)

2,915

(138)

2,915

Total loss from discontinued operations

-

-

(209)

(24,097)

(209)

(24,097)

Net loss

(6,806)

(7,949)

-

-

(6,806)

(7,949)

Less net loss attributable to noncontrolling interests

(9)

(229)

-

-

(9)

(229)

Net loss attributable to the Company

(6,797)

(7,720)

-

-

(6,797)

(7,720)

Less preferred dividends

-

-

-

-

-

-

Net loss available to common stockholders

($6,797)

($7,720)

-

-

($6,797)

($7,720)

Average number of shares outstanding - basic

110,271

77,082

110,271

77,082

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

122,379

88,759

122,379

88,759

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

122,379

88,759

122,379

88,759

Per share (loss) income- diluted before discontinued operations

-

-

($0.08)

$0.15

Net loss per share-basic

($0.08)

($0.12)

($0.08)

($0.12)

Net loss per share - diluted  (c)

($0.08)

($0.12)

($0.08)

($0.12)

Dividend declared per share

$1.10

$1.40

$1.10

$1.40

FFO - basic  (c) (d)

$149,063

$162,760

$149,063

$162,760

FFO - diluted (c) (d)

$149,063

$162,760

$149,063

$162,760

FFO per share- basic   (c) (d)

$1.22

$1.83

$1.22

$1.83

FFO per share- diluted  (c) (d)

$1.22

$1.83

$1.22

$1.83

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

    (a)  The following dispositions impacted the results for the three and six months ended June 30, 2010 and 2009:

          During the twelve months ended December 31, 2009, the Company sold six non-core community centers for $83.2 million

          and sold five Kohl's stores for approximately $52.7 million. As a result of these sales, the Company has classified the results

          of operations to discontinued operations for all periods presented.

   (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 (loss) 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. FFO and FFO on a fully 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. FFO on a fully

          diluted basis is one of the measures investors find most useful in measuring the dilutive impact of outstanding convertible securities.

          FFO does 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 is not indicative of cash available to fund all cash flow needs. The Company also cautions that FFO 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 six months ended June 30, 2010 and 2009 by $0.4 million,

          $0.4 million, $1.1 million and $2.5 million, respectively, or by $0.00 per share, $0.00 per share, $0.01 per share and $0.03 per share, respectively.

          Additionally, amortization of above/below market leases increased FFO for the three and six months ended June 30, 2010 and 2009 by $2.9 million,

          $5.8 million, $3.0 million and $7.2 million, respectively, or by $0.02 per share, $0.05 per share, $0.03 per share and $0.08 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 Six Months  

Ended June 30,

Ended June 30,

Unaudited

Unaudited

2010

2009

2010

2009

Revenues:

   Minimum rents

$73,350

$64,941

$147,401

$131,977

   Percentage rents

1,757

1,458

3,653

2,855

   Tenant recoveries

35,751

31,822

73,065

63,877

   Other

4,636

3,213

8,819

6,648

   Total revenues

115,494

101,434

232,938

205,357

Expenses:

    Shopping center and operating expenses

40,231

35,195

82,047

71,174

    Interest expense

31,293

25,797

62,385

51,299

    Depreciation and amortization

28,753

25,908

56,208

52,409

    Total operating expenses

100,277

86,900

200,640

174,882

Gain on sale or write down of assets

428

3

366

11

Loss on early extinguishment of debt

-

-

(689)

-

Equity in income (loss) of joint ventures

117

19

246

(4)

    Net income

$15,762

$14,556

$32,221

$30,482

Reconciliation of Net loss to FFO (d):

For the Three Months  

For the Six Months  

Ended June 30,

Ended June 30,

Unaudited

Unaudited

2010

2009

2010

2009

Net loss - available to common stockholders

($440)

($21,736)

($6,797)

($7,720)

Adjustments to reconcile net loss to FFO - basic

  Noncontrolling interests in OP

52

(3,293)

(746)

(1,169)

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

(510)

25,605

(511)

24,849

       plus gain on undepreciated asset sales - consolidated assets

-

1,143

-

2,497

       plus non-controlling interests share of (loss) gain on sale or write down of consolidated

          joint ventures

(32)

310

(32)

310

       less write down of consolidated assets

-

(27,058)

-

(27,639)

  Loss (gain) on sale or write-down of assets from

   unconsolidated entities (pro rata)

(428)

(3)

(366)

(11)

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

427

3

396

2

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

-

-

(32)

-

  Depreciation and amortization on consolidated assets

59,913

63,740

119,128

128,651

  Less depreciation and amortization allocable to noncontrolling interests

       on consolidated joint ventures

(6,497)

(1,064)

(11,590)

(2,130)

  Depreciation and amortization on joint ventures (pro rata)

28,753

25,908

56,208

52,409

  Less: depreciation on personal property

(3,772)

(3,635)

(6,595)

(7,289)

Total FFO - basic

77,466

59,920

149,063

162,760

Additional adjustment to arrive at FFO - diluted:

   Preferred units - dividends

-

-

-

-

Total FFO - diluted

$77,466

$59,920

$149,063

$162,760

Reconciliation of EPS to FFO per diluted share:

For the Three Months  

For the Six Months  

Ended June 30,

Ended June 30,

Unaudited

Unaudited

2010

2009

2010

2009

Earnings per share - diluted

($0.01)

($0.29)

($0.08)

($0.12)

  Per share impact of depreciation and amortization of real estate

0.58

0.96

1.30

1.95

FFO per share - diluted

$0.57

$0.67

$1.22

$1.83

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

For the Three Months  

For the Six Months  

Reconciliation of Net loss to EBITDA:

Ended June 30,

Ended June 30,

Unaudited

Unaudited

2010

2009

2010

2009

Net loss - available to common stockholders

($440)

($21,736)

($6,797)

($7,720)

  Interest expense - consolidated assets

52,238

71,914

107,649

141,852

  Interest expense - unconsolidated entities (pro rata)

31,293

25,797

62,385

51,299

  Depreciation and amortization - consolidated assets

59,913

63,740

119,128

128,651

  Depreciation and amortization - unconsolidated entities (pro rata)

28,753

25,908

56,208

52,409

  Noncontrolling interests in OP

52

(3,293)

(746)

(1,169)

  Less: Interest expense and depreciation and amortization

           allocable to noncontrolling interests on consolidated joint ventures

(10,391)

(1,471)

(18,390)

(2,959)

  Loss (gain) on early extinguishment of debt

489

(7,127)

489

(29,601)

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

-

-

689

-

  Loss (gain) on sale or write down of assets - consolidated assets

(510)

25,605

(511)

24,849

  Loss (gain) on sale or write down of assets - unconsolidated entities (pro rata)

(428)

(3)

(366)

(11)

  Add: Non-controlling interests share of (loss) gain on sale of consolidated joint ventures

(32)

310

(32)

310

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

93

-

93

-

  Income tax (benefit) expense

(1,375)

(380)

(2,590)

(1,181)

  Distributions on preferred units

208

171

416

415

EBITDA   (e)

$159,863

$179,435

$317,625

$357,144

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

For the Three Months  

For the Six Months  

Ended June 30,

Ended June 30,

Unaudited

Unaudited

2010

2009

2010

2009

EBITDA (e)

$159,863

$179,435

$317,625

$357,144

Add: REIT general and administrative expenses

3,642

4,648

11,160

9,906

       Management Companies' revenues

(12,117)

(9,345)

(22,339)

(17,885)

       Management Companies' operating  expenses

24,466

18,872

46,653

42,302

       Lease termination income of comparable centers

(1,295)

(1,154)

(2,569)

(2,696)

       EBITDA of non-comparable centers

(27,852)

(48,650)

(56,085)

(99,846)

Same Centers - NOI (f)

$146,707

$143,806

$294,445

$288,925

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

     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 straight-

     line and above/below market adjustments to minimum rents.