News Release Making News.

2017 range  

Diluted EPS

$1.12 - $1.22

Plus: real estate depreciation and amortization      

3.15 -   3.15

Less: gain on sale of dispositions 

.37 -     .37

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 

For the Nine Months 

Ended September 30,

Ended September 30,

Unaudited

Unaudited

2017

2016

2017

2016

Revenues:

Minimum rents 

$144,991

$154,018

$443,439

$457,514

Percentage rents   

2,806

3,871

6,784

9,279

Tenant recoveries

72,897

74,447

214,257

230,568

Other income

11,701

12,048

40,484

42,985

Management Companies' revenues

10,056

8,983

31,955

28,925

     Total revenues

242,451

253,367

736,919

769,271

Expenses:

Shopping center and operating  expenses 

75,598

76,310

222,527

229,544

Management Companies' operating  expenses 

22,046

23,285

76,779

75,484

REIT general and administrative expenses 

5,287

6,930

21,208

23,240

Depreciation and amortization 

83,147

86,976

249,463

259,097

Interest expense  

43,265

39,983

126,887

120,954

Gain on extinguishment of debt, net

-

(5,284)

-

(1,709)

     Total expenses

229,343

228,200

696,864

706,610

Equity in income of unconsolidated joint ventures 

23,993

11,261

56,772

37,537

Co-venture expense (a)

(3,150)

(3,006)

(11,150)

(9,507)

Income tax (expense) benefit

(2,869)

(905)

178

(2,736)

(Loss) gain on sale or write down of assets, net

(11,854)

(19,321)

37,234

426,050

     Net income

19,228

13,196

123,089

514,005

Less net income (loss) attributable to noncontrolling interests

1,730

(534)

9,710

34,138

     Net income attributable to the Company

$17,498

$13,730

$113,379

$479,867

Weighted average number of shares outstanding - basic

141,299

143,923

142,188

147,504

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

151,624

154,589

152,668

158,277

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

151,635

154,702

152,703

158,403

Earnings per share ("EPS") - basic 

$0.12

$0.09

$0.79

$3.25

EPS - diluted  

$0.12

$0.09

$0.79

$3.25

Dividend declared per share 

$0.71

$0.68

$2.13

$2.04

FFO - basic  (b) (c)

$145,047

$160,294

$427,284

$461,671

FFO - diluted (b) (c)

$145,047

$160,294

$427,284

$461,671

FFO  - diluted, excluding extinguishment of debt, net

$145,047

$155,010

$427,284

$459,962

FFO per share - basic   (b) (c)

$0.96

$1.04

$2.80

$2.92

FFO per share - diluted  (b) (c)

$0.96

$1.04

$2.80

$2.91

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

$0.96

$1.00

$2.80

$2.90

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  

 For the Nine Months  

 Ended September 30, 

 Ended September 30, 

 Unaudited 

 Unaudited 

2017

2016

2017

2016

Net income attributable to the Company

$17,498

$13,730

$113,379

$479,867

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

    stockholders and unit holders - basic and diluted:

   Noncontrolling interests in the OP

1,256

1,272

8,351

35,067

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

11,854

19,321

(37,234)

(426,050)

   Add: Gain on undepreciated asset sales - consolidated assets

727

295

727

2,932

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

-

-

(10,138)

-

             Non-controlling interests share of loss on sale or write-down of consolidated 

              joint ventures, net

-

(2,206)

-

(2,206)

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

(6,712)

171

(8,981)

173

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

-

-

660

(2)

   Depreciation and amortization on consolidated assets 

83,147

86,976

249,463

259,097

   Less depreciation and amortization allocable to noncontrolling interests

        on consolidated joint ventures

(3,717)

(3,759)

(11,325)

(11,184)

   Depreciation and amortization on unconsolidated joint ventures (pro rata) 

44,493

47,803

132,708

133,319

   Less: depreciation on personal property 

(3,499)

(3,309)

(10,326)

(9,342)

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

145,047

160,294

427,284

461,671

   Gain on extinguishment of debt, net - consolidated assets

-

(5,284)

-

(1,709)

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

$145,047

$155,010

$427,284

$459,962

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

 For the Three Months  

 For the Nine Months  

Ended September 30, 

 Ended September 30, 

 Unaudited 

 Unaudited 

2017

2016

2017

2016

EPS - diluted

$0.12

$0.09

$0.79

$3.25

Per share impact of depreciation and amortization of real estate

0.80

0.83

2.37

2.35

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

0.04

0.12

(0.36)

(2.69)

FFO per share - diluted

$0.96

$1.04

$2.80

$2.91

Per share impact of gain on extinguishment of debt, net

-

(0.04)

-

(0.01)

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

$0.96

$1.00

$2.80

$2.90

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  

 For the Nine Months  

 Ended September 30, 

 Ended September 30, 

 Unaudited 

 Unaudited 

2017

2016

2017

2016

Net income attributable to the Company

$17,498

$13,730

$113,379

$479,867

   Interest expense - consolidated assets

43,265

39,983

126,887

120,954

   Interest expense - unconsolidated joint ventures (pro rata)

25,477

25,335

76,235

71,999

   Depreciation and amortization - consolidated assets

83,147

86,976

249,463

259,097

   Depreciation and amortization - unconsolidated joint ventures (pro rata)

44,493

47,803

132,708

133,319

   Noncontrolling interests in the OP

1,256

1,272

8,351

35,067

   Less: Interest expense and depreciation and amortization

            allocable to noncontrolling interests on consolidated joint ventures

(6,006)

(6,087)

(18,215)

(18,187)

   Gain on extinguishment of debt, net - consolidated assets

-

(5,284)

-

(1,709)

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

11,854

19,321

(37,234)

(426,050)

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

(6,712)

171

(8,981)

173

   Add: Non-controlling interests share of  loss on sale or write down of consolidated joint ventures, net 

-

(2,206)

-

(2,206)

   Income tax expense (benefit) 

2,869

905

(178)

2,736

   Distributions on preferred units

95

143

289

429

Adjusted EBITDA (d)

$217,236

$222,062

$642,704

$655,489

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

 For the Three Months  

 For the Nine Months  

 Ended September 30, 

 Ended September 30, 

 Unaudited 

 Unaudited 

2017

2016

2017

2016

Adjusted EBITDA (d)

$217,236

$222,062

$642,704

$655,489

   REIT general and administrative expenses

5,287

6,930

21,208

23,240

   Management Companies' revenues

(10,056)

(8,983)

(31,955)

(28,925)

   Management Companies' operating  expenses 

22,046

23,285

76,779

75,484

   Straight-line and above/below market adjustments 

(8,811)

(11,911)

(24,986)

(27,025)

NOI - All Centers

225,702

231,383

683,750

698,263

   NOI of non-Same Centers

(11,915)

(23,940)

(48,083)

(80,331)

NOI - Same Centers (e)

$213,787

$207,443

$635,667

$617,932

(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.