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Previous

Current

2014 range

2014 range

Diluted EPS

$ .98 - $1.08

$1.80 –$ 1.86

Plus: real estate depreciation and amortization

2.62 - 2.62

2.68 - 2.68

Less: gain on sale of dispositions

( .10) - ( .10)

( .91) – (.91)

Diluted FFO per share

$3.50 - $3.60

$3.57 – $3.63

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 September 30,

Ended September 30,

Ended September 30,

Unaudited

Unaudited

Unaudited

2014

2013

2014

2013

2014

2013

Minimum rents 

$150,395

$152,005

$0

($6,746)

$150,395

$145,259

Percentage rents   

4,072

4,311

-

(200)

4,072

4,111

Tenant recoveries

90,059

90,854

-

(3,636)

90,059

87,218

Management Companies' revenues

8,352

10,742

-

-

8,352

10,742

Other income

10,614

11,168

-

(344)

10,614

10,824

     Total revenues

263,492

269,080

0

(10,926)

263,492

258,154

Shopping center and operating  expenses 

85,352

87,459

-

(4,110)

85,352

83,349

Management Companies' operating  expenses 

21,508

23,036

-

-

21,508

23,036

REIT general and administrative expenses 

5,339

5,955

-

-

5,339

5,955

Depreciation and amortization 

89,741

92,221

-

(3,785)

89,741

88,436

Interest expense  

47,803

53,711

-

(4,108)

47,803

49,603

Loss (gain) on extinguishment of debt, net

46

(1,395)

-

1,401

46

6

     Total expenses

249,789

260,987

-

(10,602)

249,789

250,385

Equity in income of unconsolidated joint ventures 

16,935

35,161

-

-

16,935

35,161

Co-venture expense (b)

(2,144)

(2,053)

-

-

(2,144)

(2,053)

Income tax benefit 

689

543

-

-

689

543

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

9,561

(919)

-

9,168

9,561

8,249

     Income from continuing operations

38,744

40,825

0

8,844

38,744

49,669

Discontinued operations:

     Loss on sale, disposition or write down of assets, net

-

-

-

(7,767)

-

(7,767)

     Loss from discontinued operations

-

-

-

(1,077)

-

(1,077)

     Total loss from discontinued operations

-

-

-

(8,844)

-

(8,844)

Net income 

38,744

40,825

-

-

38,744

40,825

Less net income attributable to noncontrolling interests

2,830

2,702

-

-

2,830

2,702

Net income attributable to the Company

$35,914

$38,123

$0

$0

$35,914

$38,123

Average number of shares outstanding - basic

140,916

140,712

140,916

140,712

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

151,027

150,334

151,027

150,334

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

151,171

150,395

151,171

150,395

Per share income - diluted before discontinued operations

$0.25

$0.33

Net income per share-basic 

$0.25

$0.27

$0.25

$0.27

Net income per share - diluted  

$0.25

$0.27

$0.25

$0.27

Dividend declared per share 

$0.62

$0.58

$0.62

$0.58

FFO - basic  (c) (d)

$132,520

$129,573

$132,520

$129,573

FFO - diluted (c) (d)

$132,520

$129,573

$132,520

$129,573

FFO per share- basic   (c) (d)

$0.88

$0.86

$0.88

$0.86

FFO per share- diluted  (c) (d)

$0.88

$0.86

$0.88

$0.86

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 Nine Months 

For the Nine Months 

For the Nine Months 

Ended September 30,

Ended September 30,

Ended September 30,

Unaudited

Unaudited

Unaudited

2014

2013

2014

2013

2014

2013

Minimum rents 

$451,248

$451,919

$0

($29,427)

$451,248

$422,492

Percentage rents   

9,295

11,486

-

(877)

9,295

10,609

Tenant recoveries

264,909

263,486

-

(15,629)

264,909

247,857

Management Companies' revenues

25,248

31,193

-

-

25,248

31,193

Other income

31,638

36,678

-

(1,494)

31,638

35,184

     Total revenues

782,338

794,762

0

(47,427)

782,338

747,335

Shopping center and operating  expenses 

257,583

257,576

-

(16,941)

257,583

240,635

Management Companies' operating  expenses 

65,185

69,003

-

-

65,185

69,003

REIT general and administrative expenses 

17,339

18,672

-

-

17,339

18,672

Depreciation and amortization 

266,199

279,364

-

(15,332)

266,199

264,032

Interest expense  

139,941

161,847

-

(12,187)

139,941

149,660

Loss (gain) on extinguishment of debt, net

405

(3,339)

-

1,401

405

(1,938)

     Total expenses

746,652

783,123

-

(43,059)

746,652

740,064

Equity in income of unconsolidated joint ventures 

44,607

145,477

-

-

44,607

145,477

Co-venture expense (b)

(6,175)

(6,232)

-

-

(6,175)

(6,232)

Income tax benefit 

3,759

2,263

-

-

3,759

2,263

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

(1,504)

145,023

-

(132,744)

(1,504)

12,279

     Income from continuing operations

76,373

298,170

0

(137,112)

76,373

161,058

Discontinued operations:

     Gain on sale, disposition or write down of assets, net

-

-

-

134,145

-

134,145

     Income from discontinued operations

-

-

-

2,967

-

2,967

     Total income from discontinued operations

-

-

-

137,112

-

137,112

Net income 

76,373

298,170

-

-

76,373

298,170

Less net income attributable to noncontrolling interests

6,552

22,958

-

-

6,552

22,958

Net income attributable to the Company

$69,821

$275,212

$0

$0

$69,821

$275,212

Average number of shares outstanding - basic

140,859

139,219

140,859

139,219

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

150,932

149,140

150,932

149,140

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

151,048

149,241

151,048

149,241

Per share income - diluted before discontinued operations

$0.49

$1.05

Net income per share-basic 

$0.49

$1.97

$0.49

$1.97

Net income per share - diluted  

$0.49

$1.97

$0.49

$1.97

Dividend declared per share 

$1.86

$1.74

$1.86

$1.74

FFO - basic  (c) (d)

$383,906

$386,951

$383,906

$386,951

FFO - diluted (c) (d)

$383,906

$386,951

$383,906

$386,951

FFO per share- basic   (c) (d)

$2.54

$2.59

$2.54

$2.59

FFO per share- diluted  (c) (d)

$2.54

$2.59

$2.54

$2.59

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(a) 

In April 2014, the Financial Accounting Standards Board issued guidance that amends the definition of discontinued operations by limiting discontinued operations reporting to disposals that represent strategic shifts that have, or will have, a major effect on an entity's operations and financial results. Previously, the Company had reported all disposed properties as discontinued operations. The Company early adopted this accounting pronouncement in the first quarter of 2014. As a result, the Company's results of operations for all 2014 property disposals are presented within income from continuing operations in the consolidated statements of operations.

 (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 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.

  (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. 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 (d):

 For the Three Months  

 For the Nine Months  

 Ended September 30, 

 Ended September 30, 

 Unaudited 

 Unaudited 

2014

2013

2014

2013

Net income attributable to the Company

$35,914

$38,123

$69,821

$275,212

Adjustments to reconcile net income attributable to the Company to FFO - basic and diluted:

   Noncontrolling interests in OP

2,571

2,362

4,990

19,605

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

(9,561)

919

1,504

(145,023)

        plus gain on undepreciated asset sales - consolidated assets

797

-

919

2,238

        plus non-controlling interests share of (loss) gain on remeasurement, sale or 

           write down of consolidated joint ventures, net

-

-

(39)

3,163

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

                   unconsolidated entities (pro rata), net

393

(18,062)

3,765

(91,077)

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

-

(51)

-

433

   Depreciation and amortization on consolidated assets 

89,741

92,221

266,199

279,364

   Less depreciation and amortization allocable to noncontrolling interests

        on consolidated joint ventures

(5,435)

(5,276)

(16,281)

(14,414)

   Depreciation and amortization on joint ventures (pro rata) 

20,999

22,323

61,326

66,470

   Less: depreciation on personal property 

(2,899)

(2,986)

(8,298)

(9,020)

Total FFO - basic and diluted

$132,520

$129,573

$383,906

$386,951

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

 For the Three Months  

 For the Nine Months  

 Ended September 30, 

 Ended September 30, 

 Unaudited 

 Unaudited 

2014

2013

2014

2013

Earnings per share - diluted

$0.25

$0.27

$0.49

$1.97

   Per share impact of depreciation and amortization of real estate

0.68

0.70

2.02

2.16

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

(0.05)

(0.11)

0.03

(1.54)

FFO per share - diluted

$0.88

$0.86

$2.54

$2.59

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

 For the Three Months  

 For the Nine Months  

Reconciliation of Net income attributable to the Company to EBITDA:

 Ended September 30, 

 Ended September 30, 

 Unaudited 

 Unaudited 

2014

2013

2014

2013

Net income attributable to the Company

$35,914

$38,123

$69,821

$275,212

   Interest expense - consolidated assets

47,803

53,711

139,941

161,847

   Interest expense - unconsolidated entities (pro rata)

16,152

16,045

49,806

51,894

   Depreciation and amortization - consolidated assets

89,741

92,221

266,199

279,364

   Depreciation and amortization - unconsolidated entities (pro rata)

20,999

22,323

61,326

66,470

   Noncontrolling interests in OP

2,571

2,362

4,990

19,605

   Less: Interest expense and depreciation and amortization

            allocable to noncontrolling interests on consolidated joint ventures

(8,747)

(8,269)

(25,089)

(23,010)

   Loss (gain) on extinguishment of debt - consolidated entities

46

(1,395)

405

(3,339)

   Gain on extinguishment of debt -unonsolidated entities (pro rata)

-

(352)

-

(352)

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

(9,561)

919

1,504

(145,023)

   Loss (gain) on remeasurement, sale or write down of assets - unconsolidated entities (pro rata), net

393

(18,062)

3,765

(91,077)

   Add: Non-controlling interests share of (loss) gain on sale of consolidated assets, net

-

-

(39)

3,163

   Income tax benefit

(689)

(543)

(3,759)

(2,263)

   Distributions on preferred units

184

184

551

551

EBITDA (e)

$194,806

$197,267

$569,421

$593,042

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

 For the Three Months  

 For the Nine Months  

 Ended September 30, 

 Ended September 30, 

 Unaudited 

 Unaudited 

2014

2013

2014

2013

EBITDA (e)

$194,806

$197,267

$569,421

$593,042

Add: REIT general and administrative expenses

5,339

5,955

17,339

18,672

        Management Companies' revenues

(8,352)

(10,742)

(25,248)

(31,193)

        Management Companies' operating  expenses 

21,508

23,036

65,185

69,003

        Straight-line and above/below market adjustments 

          to minimum rents of comparable centers

(3,333)

(3,357)

(6,013)

(8,852)

        EBITDA of non-comparable centers

(19,409)

(28,808)

(62,231)

(101,988)

Same Centers - NOI (f)

$190,559

$183,351

$558,453

$538,684

(e)

EBITDA represents earnings before interest, income taxes, depreciation, amortization, noncontrolling interests, extraordinary items, gain (loss) on remeasurement, sale 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. The Company believes that 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 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.