Macerich Announces Quarterly Results

Previously provided FFO per share guidance

$2.70      to    $2.90

Less additional dilution from the

    Up-sized equity offering

- .10        to        -.10

Revised FFO per share guidance:

$2.60      to    $2.80

Less depreciation and amortization expense:

2.48        to       2.48

EPS guidance range:

$.12        to     $.32

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

2010

2009

2010

2009

2010

2009

Minimum rents

$101,976

$127,477

4

($4,268)

$101,980

$123,209

Percentage rents  

2,987

2,801

-

-

2,987

2,801

Tenant recoveries

61,009

64,910

-

(765)

61,009

64,145

Management Companies' revenues

10,221

8,541

-

-

10,221

8,541

Other income

5,917

7,054

-

(29)

5,917

7,025

Total revenues

182,110

210,783

4

(5,062)

182,114

205,721

Shopping center and operating  expenses

60,930

70,780

(109)

(1,356)

60,821

69,424

Management Companies' operating  expenses

22,187

23,431

-

-

22,187

23,431

Income tax benefit

(1,215)

(801)

-

-

(1,215)

(801)

Depreciation and amortization

59,215

64,911

-

(1,436)

59,215

63,475

REIT general and administrative expenses

7,518

5,258

-

-

7,518

5,258

Interest expense  

55,411

69,939

-

-

55,411

69,939

Gain on early extinguishment of debt

-

22,474

-

-

-

22,474

Gain on sale or write down of assets

-

756

-

17

-

773

Co-venture interests (b)

(1,384)

-

-

-

(1,384)

-

Equity in income of unconsolidated joint ventures

16,459

15,926

-

-

16,459

15,926

(Loss) income from continuing operations

(6,861)

16,421

113

(2,253)

(6,748)

14,168

Discontinued operations:

  Loss on sale or write down of assets

-

-

-

(17)

-

(17)

  (Loss) income from discontinued operations

-

-

(113)

2,270

(113)

2,270

Total (loss) income from discontinued operations

-

-

(113)

2,253

(113)

2,253

Net (loss) income

(6,861)

16,421

-

-

(6,861)

16,421

Less net (loss) income attributable to noncontrolling interests

(504)

2,405

-

-

(504)

2,405

Net (loss) income attributable to the Company

(6,357)

14,016

-

-

(6,357)

14,016

Less preferred dividends

-

-

-

-

-

-

Net (loss) income available to common stockholders

($6,357)

$14,016

-

-

($6,357)

$14,016

Average number of shares outstanding - basic

96,951

76,897

96,951

76,897

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

109,118

88,551

109,118

88,551

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

109,118

88,551

109,118

88,551

Per share (loss) income- diluted before discontinued operations

-

-

($0.08)

$0.15

Net (loss) income per share-basic

($0.08)

$0.18

($0.08)

$0.18

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

($0.08)

$0.18

($0.08)

$0.18

Dividend declared per share

$0.60

$0.80

$0.60

$0.80

FFO - basic  (c) (d)

$71,597

$102,839

$71,597

$102,839

FFO - diluted (c) (d)

$71,597

$102,839

$71,597

$102,839

FFO per share- basic   (c) (d)

$0.66

$1.16

$0.66

$1.16

FFO per share- diluted  (c) (d)

$0.66

$1.16

$0.66

$1.16

(a)  The following dispositions impacted the results for the three months ended March 31, 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 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 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 months ended March 31, 2010 and 2009 by $0.0 million and $1.3 million, respectively, or by $0.00 per share and $0.01 per share, respectively. Additionally, amortization of above/below market leases increased FFO for the three months ended March 31, 2010 and 2009 by $2.9 million and $4.1 million, respectively, or by $0.03 per share and $0.05 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  

Ended March 31,

Unaudited

2010

2009

Revenues:

   Minimum rents

$74,051

$67,036

   Percentage rents

1,896

1,397

   Tenant recoveries

37,314

32,055

   Other

4,183

3,435

   Total revenues

117,444

103,923

Expenses:

    Shopping center and operating expenses

41,816

35,979

    Interest expense

31,092

25,502

    Depreciation and amortization

27,455

26,501

    Total operating expenses

100,363

87,982

(Loss) gain on sale or write down of assets

(62)

8

Loss on early extinguishment of debt

(689)

-

Equity in income (loss) of joint ventures

129

(23)

    Net income

$16,459

$15,926

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

For the Three Months  

Ended March 31,

Unaudited

2010

2009

Net (loss) income - available to common stockholders

($6,357)

$14,016

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

  Noncontrolling interests in OP

(798)

2,124

  Gain on sale or write down of consolidated assets

-

(756)

    plus gain on undepreciated asset sales- consolidated assets

-

1,354

    less write down of consolidated assets

-

(582)

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

    entities (pro rata)

62

(8)

    less loss on undepreciated asset sales - unconsolidated entities

     (pro rata share)

(31)

-

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

(32)

-

  Depreciation and amortization on consolidated assets

59,215

64,911

   Less depreciation and amortization allocable to noncontrolling

    interests  on consolidated joint ventures

(5,093)

(1,067)

  Depreciation and amortization on joint ventures (pro rata)

27,455

26,501

  Less: depreciation on personal property

(2,824)

(3,654)

Total FFO - basic

71,597

102,839

Additional adjustment to arrive at FFO - diluted:

   Preferred units - dividends

-

-

Total FFO - diluted

$71,597

$102,839

Reconciliation of EPS to FFO per diluted share:

For the Three Months  

Ended March 31,

Unaudited

2010

2009

Earnings per share - diluted

($0.08)

$0.18

  Per share impact of depreciation and amortization of real estate

0.74

0.98

FFO per share - diluted

$0.66

$1.16

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

2010

2009

Net (loss) income - available to common stockholders

($6,357)

$14,016

  Interest expense - consolidated assets

55,411

69,939

  Interest expense - unconsolidated entities (pro rata)

31,092

25,502

  Depreciation and amortization - consolidated assets

59,215

64,911

  Depreciation and amortization - unconsolidated entities (pro rata)

27,455

26,501

  Noncontrolling interests in OP

(798)

2,124

  Less: Interest expense and depreciation and amortization

   allocable to noncontrolling interests on consolidated joint ventures

(7,999)

(1,488)

  Gain on early extinguishment of debt

-

(22,474)

  Loss on early extinguishment of debt - unconsolidated entities

   (pro rata)

689

-

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

-

(756)

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

    (pro rata)

62

(8)

  Income tax (benefit) expense

(1,215)

(801)

  Distributions on preferred units

208

243

EBITDA   (e)

$157,763

$177,709

Reconciliation of EBITDA to Same Centers - Net Operating

 Income ("NOI"):

For the Three Months  

Ended March 31,

Unaudited

2010

2009

EBITDA (e)

$157,763

$177,709

Add: REIT general and administrative expenses

7,518

5,258

       Management Companies' revenues

(10,221)

(8,541)

       Management Companies' operating  expenses

22,187

23,431

       Lease termination income of comparable centers

(1,273)

(1,542)

       EBITDA of non-comparable centers

(28,235)

(51,196)

Same Centers - NOI (f)

$147,739

$145,119

(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.