The Macerich Company
Supplemental Financial and Operating Information
Company (the Company) is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company is the sole general
partner of, and owns a majority of the ownership interests in, The Macerich Partnership, L.P., a Delaware limited partnership (the Operating Partnership).
As of June 30, 2018, the Operating Partnership owned or had an ownership interest in 48 regional shopping centers and six
community/power shopping centers aggregating approximately 52 million square feet of gross leasable area (GLA). These 54 centers (which include any related office space) are referred to hereinafter as the Centers, unless
the context requires otherwise.
The Company is a self-administered and self-managed real estate investment trust (REIT) and
conducts all of its operations through the Operating Partnership and the Companys management companies (collectively, the Management Companies).
All references to the Company in this Exhibit include the Company, those entities owned or controlled by the Company and predecessors of the
Company, unless the context indicates otherwise.
Upon adoption of ASC Topic 606, Revenue from Contracts with Customers (ASC
606), on January 1, 2018, the Company changed its accounting for its investment in the Chandler Fashion Center and Freehold Raceway Mall (Chandler Freehold) joint venture from a co-venture arrangement to a financing
arrangement. Accordingly, the Company replaced its $31.1 million co-venture asset with a $393.7 million financing arrangement liability on its consolidated balance sheets and recorded a charge of $424.8 million to equity as a
cumulative effect adjustment. Under ASC 606, any subsequent changes in fair value of the financing arrangement liability are recognized as financing expense in the Companys consolidated statements of operations. During the three and six months
ended June 30, 2018, the Company has included in interest expense ($4.9) million and $3.1 million, respectively in connection with the financing arrangement that consists of i) a credit of $8.8 million and $4.4 million to adjust for
the reduction of fair value of the financing arrangement obligation during the three and six months ended June 30, 2018, respectively, ii) distributions of $2.5 million and $4.5 million to its partner representing the partners share
of net income for the three and six months ended June 30, 2018, respectively, and iii) distributions of $1.4 million and $3.0 million to its partner in excess of the partners share of net income for the three and six months ended
June 30, 2018, respectively.
The Company presents certain measures in this Exhibit on a pro rata basis which represents (i) the
measure on a consolidated basis, minus the Companys partners share of the measure from its consolidated joint ventures (calculated based upon the partners percentage ownership interest); plus (ii) the Companys share of
the measure from its unconsolidated joint ventures (calculated based upon the Companys percentage ownership interest). Management believes that these measures provide useful information to investors regarding its financial condition and/or
results of operations because they include the Companys share of the applicable amount from unconsolidated joint ventures and exclude the Companys partners share from consolidated joint ventures, in each case presented on the same
basis. The Company has several significant joint ventures and the Company believes that presenting various measures in this manner can help investors better understand the Companys financial condition and/or results of operations after taking
into account its economic interest in these joint ventures. Management also uses these measures to evaluate regional property level performance and to make decisions about resource allocations. The Companys economic interest (as distinct from
its legal ownership interest) in certain of its joint ventures could fluctuate from time to time and may not wholly align with its legal ownership interests because of provisions in certain joint venture agreements regarding distributions of cash
flow based on capital account balances, allocations of profits and losses, payments of preferred returns and control over major decisions. Additionally, the Company does not control its unconsolidated joint ventures and the