News Release Making News.

2017 range

Diluted EPS  

$1.26 - $1.36

Plus: real estate depreciation and amortization  

3.05 -   3.05

Less: gain on sale of dispositions  

.41 -     .41

Diluted FFO per share  

$3.90 - $4.00

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Results of Operations:

For the Three Months 

Ended March 31,

Unaudited

2017

2016

Revenues:

Minimum rents 

$145,555

$151,048

Percentage rents   

1,918

3,014

Tenant recoveries

72,412

80,173

Other income

15,264

13,148

Management Companies' revenues

11,896

8,617

     Total revenues

247,045

256,000

Expenses:

Shopping center and operating  expenses 

75,897

79,324

Management Companies' operating  expenses 

28,517

27,900

REIT general and administrative expenses 

8,463

8,629

Depreciation and amortization 

83,073

86,931

Interest expense  

41,301

39,776

Loss on extinguishment of debt, net

-

3,575

     Total expenses

237,251

246,135

Equity in income of unconsolidated joint ventures 

15,843

11,660

Co-venture expense (a)

(3,877)

(3,289)

Income tax benefit (expense) 

3,484

(1,317)

Gain on sale or write down of assets, net

49,565

434,456

     Net income

74,809

451,375

Less net income attributable to noncontrolling interests

5,566

30,460

     Net income attributable to the Company

$69,243

$420,915

Weighted average number of shares outstanding - basic

143,596

151,984

Weighted average shares outstanding, assuming full conversion of OP Units  (b)

154,187

162,805

Weighted average shares outstanding - Funds From Operations ("FFO") - diluted (b) 

154,246

162,924

Net income per share - basic 

$0.48

$2.77

Net income per share - diluted  

$0.48

$2.76

Dividend declared per share 

$0.71

$0.68

FFO - basic  (b) (c)

$133,603

$141,029

FFO - diluted (b) (c)

$133,603

$141,029

FFO  - diluted, excluding extinguishment of debt, net

$133,603

$144,604

FFO per share - basic   (b) (c)

$0.87

$0.87

FFO per share - diluted  (b) (c)

$0.87

$0.87

FFO per share - diluted, excluding extinguishment of debt, net

$0.87

$0.89

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(a)

This represents the outside partners' allocation of net income in the Chandler Fashion Center/Freehold Raceway Mall joint venture.

(b)

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 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, stock warrants 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. 

(c)

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. The National Association of Real Estate Investment Trusts ("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, impairment write-downs of real estate and write-downs of investments in an affiliate where the write-downs have been driven by a decrease in the value of real estate held by the affiliate and after adjustments for unconsolidated joint ventures. Adjustments for unconsolidated 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. The Company believes that such a presentation also provides investors with a more meaningful measure of its operating results in comparison to the operating results of other real estate investment trusts ("REITs"). The Company believes that FFO on a diluted basis is a measure investors find most useful in measuring the dilutive impact of outstanding convertible securities. The Company further believes that 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 REITs.

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Reconciliation of net income attributable to the Company to FFO attributable to common stockholders and unit holders - basic and diluted (c):

 For the Three Months  

 Ended March 31, 

 Unaudited 

2017

2016

Net income attributable to the Company

$69,243

$420,915

Adjustments to reconcile net income attributable to the Company to FFO attributable to common

    stockholders and unit holders - basic and diluted:

   Noncontrolling interests in OP

5,108

29,985

   Gain on sale or write down of consolidated assets, net

(49,565)

(434,456)

   Add: Gain on undepreciated asset sales - consolidated assets

-

2,412

             Loss on write-down of consolidated non-real estate assets

(10,138)

-

   (Gain) loss on sale or write down of assets from unconsolidated joint ventures (pro rata), net

(2,269)

4

   Add: Gain (loss) on undepreciated asset sales - unconsolidated joint ventures (pro rata)

660

(4)

   Depreciation and amortization on consolidated assets 

83,073

86,931

   Less depreciation and amortization allocable to noncontrolling interests

        on consolidated joint ventures

(3,893)

(3,694)

   Depreciation and amortization on unconsolidated joint ventures (pro rata) 

44,765

41,876

   Less: depreciation on personal property 

(3,381)

(2,940)

FFO attributable to common stockholders and unit holders - basic and diluted

133,603

141,029

   Loss on extinguishment of debt, net - consolidated assets

-

3,575

FFO attributable to common stockholders and unit holders excluding extinguishment of debt, net  - diluted 

$133,603

$144,604

Reconciliation of Earnings per Share ("EPS") to FFO per diluted share (c):

 For the Three Months  

 Ended March 31, 

 Unaudited 

2017

2016

EPS - diluted

$0.48

$2.76

   Per share impact of depreciation and amortization of real estate

0.78

0.76

   Per share impact of gain on sale or write down of assets, net

(0.39)

(2.65)

FFO per share - diluted

$0.87

$0.87

   Per share impact of loss on extinguishment of debt, net

-

0.02

FFO per share - diluted, excluding extinguishment of debt, net

$0.87

$0.89

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Reconciliation of Net income attributable to the Company to Adjusted EBITDA:

 For the Three Months  

 Ended March 31, 

 Unaudited 

2017

2016

Net income attributable to the Company

$69,243

$420,915

   Interest expense - consolidated assets

41,301

39,776

   Interest expense - unconsolidated joint ventures (pro rata)

25,306

22,494

   Depreciation and amortization - consolidated assets

83,073

86,931

   Depreciation and amortization - unconsolidated joint ventures (pro rata)

44,765

41,876

   Noncontrolling interests in OP

5,108

29,985

   Less: Interest expense and depreciation and amortization

            allocable to noncontrolling interests on consolidated joint ventures

(6,212)

(6,043)

   Loss on extinguishment of debt, net - consolidated assets

-

3,575

   Gain on sale or write down of assets, net - consolidated assets

(49,565)

(434,456)

   (Gain) loss on sale or write down of assets, net - unconsolidated joint ventures (pro rata)

(2,269)

4

   Income tax (benefit) expense

(3,484)

1,317

   Distributions on preferred units

96

143

Adjusted EBITDA (d)

$207,362

$206,517

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

 For the Three Months  

 Ended March 31, 

 Unaudited 

2017

2016

Adjusted EBITDA (d)

$207,362

$206,517

   REIT general and administrative expenses

8,463

8,629

   Management Companies' revenues

(11,896)

(8,617)

   Management Companies' operating  expenses 

28,517

27,900

   Straight-line and above/below market adjustments 

(7,419)

(6,412)

NOI - All Centers

225,027

228,017

   NOI of non-Same Centers

(19,894)

(27,266)

NOI - Same Centers (e)

$205,133

$200,751

(d)

 Adjusted EBITDA represents earnings before interest, income taxes, depreciation, amortization, noncontrolling interests in the OP, extraordinary items, loss (gain) on remeasurement, sale or write down of assets, loss (gain) on extinguishment of debt and preferred dividends and includes joint ventures at their pro rata share. Management considers Adjusted 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. The Company believes that Adjusted 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. The Company also cautions that Adjusted EBITDA, as presented, may not be comparable to similarly titled measurements reported by other companies.

(e)

 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 Adjusted  EBITDA and eliminating the impact of the management companies' revenues and operating expenses, the Company's general and administrative expenses and the straight-line and above/below market adjustments to minimum rents and subtracting out NOI from non-Same Centers.