Macerich Announces Quarterly Results and New $1.5 Billion Line of Credit

Estimated range for FFO per share:              

$2.78  to  $2.94

Less:  real estate depreciation and amortization

$2.40   -   $2.40

Estimated EPS range:

$  .38  to  $  .54

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

2011

2010

2011

2010

2011

2010

Minimum rents

$109,521

$101,976

-

$4

$109,521

$101,980

Percentage rents  

2,954

2,987

-

-

2,954

2,987

Tenant recoveries

61,672

61,009

-

-

61,672

61,009

Management Companies' revenues

10,584

10,221

-

-

10,584

10,221

Other income

6,338

5,917

-

-

6,338

5,917

Total revenues

191,069

182,110

0

4

191,069

182,114

Shopping center and operating  expenses

62,775

60,930

-

(109)

62,775

60,821

Management Companies' operating  expenses

25,855

22,187

-

-

25,855

22,187

Income tax benefit

(2,478)

(1,215)

-

-

(2,478)

(1,215)

Depreciation and amortization

64,626

59,215

-

-

64,626

59,215

REIT general and administrative expenses

7,644

7,518

-

-

7,644

7,518

Interest expense  

51,997

55,411

-

-

51,997

55,411

Loss on early extinguishment of debt

(9,101)

-

-

-

(9,101)

-

Loss on sale or write down of assets, net

(437)

-

-

-

(437)

-

Co-venture interests (b)

(1,296)

(1,384)

-

-

(1,296)

(1,384)

Equity in income of unconsolidated joint ventures

30,275

16,459

-

-

30,275

16,459

Income (loss) from continuing operations

91

(6,861)

0

113

91

(6,748)

Discontinued operations:

  Loss on sale or write down of assets

-

-

-

-

-

-

  (Loss) income from discontinued operations

-

-

-

(113)

-

(113)

Total loss from discontinued operations

-

-

-

(113)

-

(113)

Net income (loss)

91

(6,861)

-

-

91

(6,861)

Less net income (loss) attributable to noncontrolling interests

57

(504)

-

-

57

(504)

Net income (loss) available to common stockholders

$34

($6,357)

$0

$0

$34

($6,357)

Average number of shares outstanding - basic

130,574

96,951

130,574

96,951

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

142,477

109,118

142,477

109,118

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

142,477

109,118

142,477

109,118

Per share income (loss) - diluted before discontinued operations

-

-

$0.00

($0.08)

Net income (loss) per share-basic

$0.00

($0.08)

$0.00

($0.08)

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

$0.00

($0.08)

$0.00

($0.08)

Dividend declared per share

$0.50

$0.60

$0.50

$0.60

FFO - basic  (c) (d)

$73,681

$71,597

$73,681

$71,597

FFO - diluted (c) (d)

$73,681

$71,597

$73,681

$71,597

FFO per share- basic   (c) (d)

$0.52

$0.66

$0.52

$0.66

FFO per share- diluted  (c) (d)

$0.52

$0.66

$0.52

$0.66

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 months ended March 31, 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. 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. FFO on a

          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 months ended March 31, 2011 and 2010 by $0.6 million

          and $0.0 million, respectively, or by $0.00 per share and $0.00 per share, respectively.

          Additionally, amortization of above/below market leases increased FFO for the three months ended March 31, 2011 and 2010 by $2.9 million

          and $2.9 million, respectively, or by $0.02 per share and $0.03 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

2011

2010

Revenues:

   Minimum rents

$74,901

$74,051

   Percentage rents

2,215

1,896

   Tenant recoveries

36,352

37,314

   Other

5,219

4,183

   Total revenues

118,687

117,444

Expenses:

    Shopping center and operating expenses

41,954

41,816

    Interest expense

30,583

31,092

    Depreciation and amortization

28,525

27,455

    Total operating expenses

101,062

100,363

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

12,550

(62)

Loss on early extinguishment of debt

-

(689)

Equity in income of joint ventures

100

129

    Net income

$30,275

$16,459

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

For the Three Months  

Ended March 31,

Unaudited

2011

2010

Net income (loss) - available to common stockholders

$34

($6,357)

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

  Noncontrolling interests in OP

3

(798)

  Loss on sale or write down of consolidated assets , net

437

-

       plus gain on undepreciated asset sales - consolidated assets

542

-

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

                  unconsolidated entities (pro rata), net

(12,550)

62

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

40

(31)

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

-

(32)

  Depreciation and amortization on consolidated assets

64,626

59,215

  Less depreciation and amortization allocable to noncontrolling interests

       on consolidated joint ventures

(4,494)

(5,093)

  Depreciation and amortization on joint ventures (pro rata)

28,525

27,455

  Less: depreciation on personal property

(3,482)

(2,824)

Total FFO - basic

73,681

71,597

Additional adjustment to arrive at FFO - diluted:

   Preferred units - dividends

-

-

Total FFO - diluted

$73,681

$71,597

Reconciliation of EPS to FFO per diluted share:

For the Three Months  

Ended March 31,

Unaudited

2011

2010

Earnings per share - diluted

$0.00

($0.08)

  Per share impact of depreciation and amortization of real estate

0.60

0.74

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

(0.08)

0.00

FFO per share - diluted

$0.52

$0.66

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

For the Three Months  

Reconciliation of Net income (loss) to EBITDA:

Ended March 31,

Unaudited

2011

2010

Net income (loss) - available to common stockholders

$34

($6,357)

  Interest expense - consolidated assets

51,997

55,411

  Interest expense - unconsolidated entities (pro rata)

30,583

31,092

  Depreciation and amortization - consolidated assets

64,626

59,215

  Depreciation and amortization - unconsolidated entities (pro rata)

28,525

27,455

  Noncontrolling interests in OP

3

(798)

  Less: Interest expense and depreciation and amortization

           allocable to noncontrolling interests on consolidated joint ventures

(7,479)

(7,999)

  Loss on early extinguishment of debt - consolidated entities

9,101

-

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

-

689

  Loss on sale or write down of assets - consolidated assets

437

-

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

(12,550)

62

  Income tax benefit

(2,478)

(1,215)

  Distributions on preferred units

207

208

EBITDA   (e)

$163,006

$157,763

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

For the Three Months  

Ended March 31,

Unaudited

2011

2010

EBITDA (e)

$163,006

$157,763

Add: REIT general and administrative expenses

7,644

7,518

       Management Companies' revenues

(10,584)

(10,221)

       Management Companies' operating  expenses

25,855

22,187

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

         to minimum rents of comparable centers

(3,037)

(3,447)

       EBITDA of non-comparable centers

(15,410)

(10,471)

Same Centers - NOI (f)

$167,474

$163,329

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

     remeasurement 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.