SEC Filing | Macerich

THE MACERICH COMPANY

By: THOMAS E. O’HERN

February 5, 2018

Date

/s/ THOMAS E. O’HERN

Senior Executive Vice President,

Chief Financial Officer

and Treasurer

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8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported) February 5, 2018

THE MACERICH COMPANY

(Exact Name of Registrant as Specified in Charter)

MARYLAND

1-12504

95-4448705

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

401 Wilshire Boulevard, Suite 700, Santa Monica, California 90401

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code (310) 394-6000

N/A

(Former Name or Former Address, if Changed Since Last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

ITEM 2.02

RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

The Company issued a press release on February 5, 2018 (the “Press Release”) announcing results of operations for the Company for the quarter ended December 31, 2017 and such Press Release is furnished as Exhibit 99.1 hereto.

On February 5, 2018, the Company made available on its website a financial supplement containing financial and operating information of the Company (“Supplemental Financial Information”) for the three and twelve months ended December 31, 2017 and such Supplemental Financial Information is furnished as Exhibit 99.2 hereto.

The Press Release and Supplemental Financial Information included as exhibits with this report are being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed to be “filed” with the SEC or incorporated by reference into any other filing with the SEC.

ITEM 7.01

REGULATION FD DISCLOSURE.

The Press Release and Supplemental Financial Information included as exhibits with this report are being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed to be “filed” with the SEC or incorporated by reference into any other filing with the SEC.

ITEM 9.01

FINANCIAL STATEMENTS AND EXHIBITS.

Listed below are the financial statements, pro forma financial information and exhibits furnished as part of this report:

(a), (b) and (c) Not applicable.

(d) Exhibits.

Exhibit Index attached hereto and incorporated herein by reference.

EXHIBIT INDEX


EXHIBIT NUMBER		NAME

99.1		Press Release dated February 5, 2018

99.2		Supplemental Financial Information for the three and twelve months ended December 31, 2017

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, The Macerich Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EX-99.1

Exhibit 99.1

PRESS RELEASE


For:		THE MACERICH COMPANY

MACERICH ANNOUNCES QUARTERLY RESULTS

SANTA MONICA, CA, February 5, 2018– The Macerich Company (NYSE Symbol: MAC) today announced results of operations for the quarter ended December 31, 2017, which included net income attributable to the Company of $32.8 million or $.23 per share-diluted for the quarter ended December 31, 2017 compared to net income attributable to the Company for the quarter ended December 31, 2016 of $37.1 million or $.26 per share-diluted. For the fourth quarter, 2017, funds from operations (“FFO”) diluted was $155.6 million or $1.03 per share-diluted compared to $180.6 million or $1.17 per share-diluted for the quarter ended December 31, 2016. Net income and FFO for the quarter ended December 31, 2017 included a $14.5 million re-valuation reduction of a deferred tax asset as a result of the lower federal corporate income tax rates adopted by Congress in December, 2017. A description and reconciliation of EPS per share-diluted to FFO per share-diluted is included in the financial tables accompanying this press release.

Results and Capital Highlights

•

Mall tenant annual sales per square foot for the portfolio increased by 4.8% to $660 for the year ended December 31, 2017 compared to $630 for the year ended December 31, 2016.

•

The re-leasing spreads for the year ended December 31, 2017 were up 15.2%.

•

Mall portfolio occupancy was 95.0% at December 31, 2017 compared to 95.4% at December 31, 2016 and 94.3% at September 30, 2017.

•

Average rent per square foot increased to $56.97, up 3.8% from $54.87 at December 31, 2016.

“During the quarter our portfolio continued to perform well. We achieved solid re-leasing spreads and tenant sales growth plus we saw good occupancy gains on a sequential quarter over quarter basis” said the Company’s chairman and chief executive officer, Arthur Coppola. “We remain excited about the leasing opportunities we see as the digitally native, vertically integrated brands expand into brick and mortar locations in our dominant top quality regional malls”.

Financing Activity:

The Company has arranged for a $450 million, 12-year fixed rate loan on the recently expanded and renovated Broadway Plaza. The loan is expected to close in the first quarter of 2018.

The Company and its joint venture partner have closed on a $250 million five year loan on Fashion District Philadelphia. The loan has a 5 year term and an initial interest rate of 3.56%.

In December, 2017 the Company closed on a refinancing of Santa Monica Place with a new five year floating rate loan of $300 million with an initial rate of 3.13%. The former loan of $215 million was paid off at closing of the new loan.

2018 Earnings Guidance:

Management is issuing its diluted EPS and FFO per share guidance for 2018. A reconciliation of estimated EPS to FFO per share-diluted follows:


	2018 range

Diluted EPS	$	.77 - $.87
Plus: real estate depreciation and amortization		3.15 - 3.15
Less: gain on sale of dispositions		.00 - .00

Diluted FFO per share	$	3.92 - $4.02

The guidance assumes no asset sales or acquisitions. It assumes a same center net operating income growth rate in a range of 2.0 to 2.5%. More details of the guidance assumptions are included in the Company’s Form 8-K supplemental financial information.

Macerich, an S&P 500 company, is a fully integrated self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States.

Macerich currently owns 53 million square feet of real estate consisting primarily of interests in 48 regional shopping centers. Macerich specializes in successful retail properties in many of the country’s most attractive, densely populated markets with significant presence in the Pacific Rim, Arizona, Chicago, and the New York Metro area to Washington DC corridor. A recognized leader in sustainability, Macerich has earned NAREIT’s prestigious “Leader in the Light” award every year from 2014-2017. For the third straight year in 2017 Macerich achieved the #1 GRESB ranking in the North American Retail Sector, among many other environmental accomplishments. Additional information about Macerich can be obtained from the Company’s website at www.macerich.com.

Investor Conference Call

The Company will provide an online Web simulcast and rebroadcast of its quarterly earnings conference call. The call will be available on The Macerich Company’s website at www.macerich.com (Investors Section). The call begins February 6, 2018 at 11:00 AM Pacific Time. To listen to the call, please go to the website at least 15 minutes prior to the call in order to register and download audio software if needed. An online replay at www.macerich.com (Investors Section) will be available for one year after the call.

The Company will publish a supplemental financial information package which will be available at www.macerich.com in the Investors Section. It will also be furnished to the SEC as part of a Current Report on Form 8-K.

Note: This release contains statements that constitute forward-looking statements which can be identified by the use of words, such as “expects,” “anticipates,” “assumes,” “projects,” “estimated” and “scheduled” and similar expressions that do not relate to historical matters. Stockholders are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to vary materially from those anticipated, expected or projected. Such factors include, among others, general industry, as well as national, regional and local economic and business conditions, which will, among other things, affect demand for retail space or retail goods, availability and creditworthiness of current and prospective tenants, anchor or tenant bankruptcies, closures, mergers or consolidations, lease rates, terms and payments, interest rate fluctuations, availability, terms and cost of financing and operating expenses; adverse changes in the real estate markets including, among other things, competition from other companies, retail formats and technology, risks of real estate development and redevelopment, acquisitions and dispositions; the liquidity of real estate investments, governmental actions and

initiatives (including legislative and regulatory changes); environmental and safety requirements; and terrorist activities or other acts of violence which could adversely affect all of the above factors. The reader is directed to the Company’s various filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2016, for a discussion of such risks and uncertainties, which discussion is incorporated herein by reference. The Company does not intend, and undertakes no obligation, to update any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events unless required by law to do so.

(See attached tables)

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Results of Operations:


	For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
	Unaudited						Unaudited
	2017			2016			2017			2016
Revenues:
Minimum rents	$	150,591		$	158,781		$	594,030		$	616,295
Percentage rents		10,340			11,623			17,124			20,902
Tenant recoveries		69,038			74,714			283,295			305,282
Other income		15,335			16,343			55,819			59,328
Management Companies’ revenues		11,439			10,539			43,394			39,464

Total revenues		256,743			272,000			993,662			1,041,271

Expenses:
Shopping center and operating expenses		72,663			78,079			295,190			307,623
Management Companies’ operating expenses		23,342			22,839			100,121			98,323
REIT general and administrative expenses		7,032			4,977			28,240			28,217
Depreciation and amortization		85,968			89,391			335,431			348,488
Interest expense		44,889			42,721			171,776			163,675
Gain on extinguishment of debt, net		—			—			—			(1,709	)

Total expenses		233,894			238,007			930,758			944,617

Equity in income of unconsolidated joint ventures		28,774			19,404			85,546			56,941
Co-venture expense (a)		(2,479	)		(3,875	)		(13,629	)		(13,382	)
Income tax (expense) benefit		(15,772	)		2,014			(15,594	)		(722	)
Gain (loss) on sale or write down of assets, net		5,212			(10,702	)		42,446			415,348

Net income		38,584			40,834			161,673			554,839
Less net income attributable to noncontrolling interests		5,833			3,706			15,543			37,844

Net income attributable to the Company	$	32,751		$	37,128		$	146,130		$	516,995

Weighted average number of shares outstanding—basic		140,952			143,904			141,877			146,599

Weighted average shares outstanding, assuming full conversion of OP Units (b)		151,180			154,470			152,293			157,320

Weighted average shares outstanding—Funds From Operations (“FFO”)—diluted (b)		151,213			154,542			152,329			157,432

Earnings per share (“EPS”)—basic	$	0.23		$	0.26		$	1.02		$	3.52

EPS—diluted	$	0.23		$	0.26		$	1.02		$	3.52

Dividend declared per share	$	0.74		$	0.71		$	2.87		$	2.75

FFO—basic (b) (c)	$	155,594		$	180,633		$	582,878		$	642,304

FFO—diluted (b) (c)	$	155,594		$	180,633		$	582,878		$	642,304

FFO —diluted, excluding extinguishment of debt, net	$	155,594		$	180,633		$	582,878		$	640,595

FFO per share—basic (b) (c)	$	1.03		$	1.17		$	3.83		$	4.08

FFO per share—diluted (b) (c)	$	1.03		$	1.17		$	3.83		$	4.08

FFO per share—diluted, excluding extinguishment of debt, net	$	1.03		$	1.17		$	3.83		$	4.07

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 December 31,						For the Twelve Months Ended December 31,
	Unaudited						Unaudited
	2017			2016			2017			2016
Net income attributable to the Company	$	32,751		$	37,128		$	146,130		$	516,995
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		2,378			2,713			10,729			37,780
(Gain) loss on sale or write down of consolidated assets, net		(5,212	)		10,702			(42,446	)		(415,348	)
Add: Gain on undepreciated asset sales from consolidated assets		837			785			1,564			3,717
Loss on write-down of consolidated non-real estate assets		—			—			(10,138	)		—
Non-controlling interests share of gain (loss) on sale or write-down of consolidated joint ventures, net		1,209			544			1,209			(1,662	)
(Gain) loss on sale or write down of assets from unconsolidated joint ventures (pro rata), net		(5,802	)		16			(14,783	)		189
Add: Gain (loss) on undepreciated asset sales from unconsolidated joint ventures (pro rata)		5,984			—			6,644			(2	)
Depreciation and amortization on consolidated assets		85,968			89,391			335,431			348,488
Less depreciation and amortization allocable to noncontrolling interests on consolidated joint ventures		(3,801	)		(3,839	)		(15,126	)		(15,023	)
Depreciation and amortization on unconsolidated joint ventures (pro rata)		44,566			46,281			177,274			179,600
Less: depreciation on personal property		(3,284	)		(3,088	)		(13,610	)		(12,430	)

FFO attributable to common stockholders and unit holders—basic and diluted		155,594			180,633			582,878			642,304
Gain on extinguishment of debt, net—consolidated assets		—			—			—			(1,709	)

FFO attributable to common stockholders and unit holders excluding extinguishment of debt, net —diluted	$	155,594		$	180,633		$	582,878		$	640,595

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


	For the Three Months Ended December 31,					For the Twelve Months Ended December 31,
	Unaudited					Unaudited
	2017			2016		2017			2016
EPS—diluted	$	0.23		$	0.26	$	1.02		$	3.52
Per share impact of depreciation and amortization of real estate		0.82			0.83		3.19			3.18
Per share impact of (gain) loss on sale or write down of assets, net		(0.02	)		0.08		(0.38	)		(2.62	)

FFO per share—diluted	$	1.03		$	1.17	$	3.83		$	4.08
Per share impact of gain on extinguishment of debt, net		—			—		—			(0.01	)

FFO per share—diluted, excluding extinguishment of debt, net	$	1.03		$	1.17	$	3.83		$	4.07

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 December 31,						For the Twelve Months Ended December 31,
	Unaudited						Unaudited
	2017			2016			2017			2016
Net income attributable to the Company	$	32,751		$	37,128		$	146,130		$	516,995
Interest expense—consolidated assets		44,889			42,721			171,776			163,675
Interest expense—unconsolidated joint ventures (pro rata)		25,252			25,247			101,487			97,246
Depreciation and amortization—consolidated assets		85,968			89,391			335,431			348,488
Depreciation and amortization—unconsolidated joint ventures (pro rata)		44,566			46,281			177,274			179,600
Noncontrolling interests in the OP		2,378			2,713			10,729			37,780
Less: Interest expense and depreciation and amortization allocable to noncontrolling interests on consolidated joint ventures		(6,792	)		(6,139	)		(25,007	)		(24,326	)
Gain on extinguishment of debt, net—consolidated assets		—			—			—			(1,709	)
(Gain) loss on sale or write down of assets, net—consolidated assets		(5,212	)		10,702			(42,446	)		(415,348	)
(Gain) loss on sale or write down of assets, net—unconsolidated joint ventures (pro rata)		(5,802	)		16			(14,783	)		189
Add: Non-controlling interests share of gain (loss) on sale or write down of consolidated joint ventures, net		1,209			544			1,209			(1,662	)
Income tax expense (benefit)		15,772			(2,014	)		15,594			722
Distributions on preferred units		98			146			387			575

Adjusted EBITDA (d)	$	235,077		$	246,736		$	877,781		$	902,225

Reconciliation of Adjusted EBITDA to Net Operating Income (“NOI”) and to NOI—Same Centers:


	For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
	Unaudited						Unaudited
	2017			2016			2017			2016
Adjusted EBITDA (d)	$	235,077		$	246,736		$	877,781		$	902,225
REIT general and administrative expenses		7,032			4,977			28,240			28,217
Management Companies’ revenues		(11,439	)		(10,539	)		(43,394	)		(39,464	)
Management Companies’ operating expenses		23,342			22,839			100,121			98,323
Straight-line and above/below market adjustments		(4,545	)		(11,284	)		(29,531	)		(38,309	)

NOI—All Centers		249,467			252,729			933,217			950,992
NOI of non-Same Centers		(9,521	)		(18,326	)		(57,606	)		(98,657	)

NOI—Same Centers (e)	$	239,946		$	234,403		$	875,611		$	852,335

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(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.

EX-99.2

Exhibit 99.2

LOGO

Supplemental Financial Information

For the three and twelve months ended December 31, 2017

LOGO

The Macerich Company

Supplemental Financial and Operating Information

Table of Contents

All information included in this supplemental financial package is unaudited, unless otherwise indicated.


	Page No.
Corporate Overview		1-4
Overview		1-2
Capital Information and Market Capitalization		3
Changes in Total Common and Equivalent Shares/Units		4
Financial Data		5-11
Consolidated Statements of Operations (Unaudited)		5
Consolidated Balance Sheet (Unaudited)		6
Non-GAAP Pro Rata Financial Information (Unaudited)		7-8
2018 Guidance Range		9
Supplemental FFO Information		10
Capital Expenditures		11
Operational Data		12-26
Sales Per Square Foot		12
Sales Per Square Foot by Property Ranking		13-16
Occupancy		17
Average Base Rent Per Square Foot		18
Cost of Occupancy		19
Percentage of Net Operating Income by State		20
Property Listing		21-24
Joint Venture List		25-26
Debt Tables		27-29
Debt Summary		27
Outstanding Debt by Maturity Date		28-29
Development Pipeline		30
Top Ten Tenants		31
Corporate Information		32

This Supplemental Financial Information should be read in connection with the Company’s fourth quarter 2017 earnings announcement (included as Exhibit 99.1 of the Company’s Current Report on 8-K, event date February 5, 2018) as certain disclosures, definitions and reconciliations in such announcement have not been included in this Supplemental Financial Information.

The Macerich Company

Supplemental Financial and Operating Information

Overview

The Macerich 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 December 31, 2017, the Operating Partnership owned or had an ownership interest in 48 regional shopping centers and seven community/power shopping centers aggregating approximately 53 million square feet of gross leasable area (“GLA”). These 55 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 Company’s 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.

The Company presents certain measures in this Exhibit on a pro rata basis which represents (i) the measure on a consolidated basis, minus the Company’s partners’ share of the measure from its consolidated joint ventures (calculated based upon the partners’ percentage ownership interest); plus (ii) the Company’s share of the measure from its unconsolidated joint ventures (calculated based upon the Company’s 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 Company’s share of the applicable amount from unconsolidated joint ventures and exclude the Company’s 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 Company’s 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 Company’s 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 presentation of certain items, such as assets, liabilities, revenues and expenses, from these unconsolidated joint ventures does not represent the Company’s legal claim to such items.

This document contains information constituting forward-looking statements and includes expectations regarding the Company’s future operational results as well as development, redevelopment and expansion activities. Stockholders are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company to vary materially from those anticipated, expected or projected. Such factors include, among others, general industry, economic and business conditions, which will, among other things, affect demand for retail space or retail goods, availability and creditworthiness of current and prospective tenants, anchor or tenant bankruptcies, closures, mergers or consolidations, lease rates, terms and payments, interest rate fluctuations, availability, terms and cost of financing, operating expenses, and competition; adverse changes in the real estate markets, including the liquidity of real estate investments; and risks of real estate development, redevelopment, and expansion, including availability, terms and cost of financing, construction delays, environmental and safety requirements, budget overruns, sunk costs and lease-up; the inability to obtain,

or delays in obtaining, all necessary zoning, land-use, building, and occupancy and other required governmental permits and authorizations; and governmental actions and initiatives (including legislative and regulatory changes) as well as terrorist activities or other acts of violence which could adversely affect all of the above factors. Furthermore, occupancy rates and rents at a newly completed property may not be sufficient to make the property profitable. The reader is directed to the Company’s various filings with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2016, for a discussion of such risks and uncertainties, which discussion is incorporated herein by reference. The Company does not intend, and undertakes no obligation, to update any forward-looking information to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events unless required by law to do so.

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Capital Information and Market Capitalization


	Period Ended
	12/31/2017			12/31/2016			12/31/2015
	dollars in thousands, except per share data
Closing common stock price per share	$	65.68		$	70.84		$	80.69
52 week high	$	73.34		$	94.51		$	95.93
52 week low	$	52.12		$	66.00		$	71.98
Shares outstanding at end of period
Class A non-participating convertible preferred units		90,619			90,619			138,759
Common shares and partnership units		151,253,557			154,567,331			165,260,655

Total common and equivalent shares/units outstanding		151,344,176			154,657,950			165,399,414

Portfolio capitalization data
Total portfolio debt, including joint ventures at pro rata	$	7,692,719		$	7,548,481		$	7,010,306
Equity market capitalization		9,940,285			10,955,969			13,346,079

Total market capitalization	$	17,633,004		$	18,504,450		$	20,356,385

Debt as a percentage of total market capitalization		43.6	%		40.8	%		34.4	%

Portfolio Capitalization at December 31, 2017

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The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Changes in Total Common and Equivalent Shares/Units


	Partnership Units			Company Common Shares			Class A Non-Participating Convertible Preferred Units		Total Common and Equivalent Shares/ Units
Balance as of January 1, 2017		10,582,295			143,985,036			90,619		154,657,950
Conversion of partnership units to cash		(219	)		—			—		(219	)
Conversion of partnership units to common shares		(48,925	)		48,925			—		—
Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans		134,742			76,395			—		211,137
Repurchase of common shares		—			(2,197,879	)		—		(2,197,879	)

Balance as of March 31, 2017		10,667,893			141,912,477			90,619		152,670,989

Conversion of partnership units to cash		(1,119	)		—			—		(1,119	)
Conversion of partnership units to common shares		(303,092	)		303,092			—		—
Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans					28,335					28,335
Repurchase of common shares		—			(687,494	)		—		(687,494	)

Balance as of June 30, 2017		10,363,682			141,556,410			90,619		152,010,711

Conversion of partnership units to cash		(14,260	)		—			—		(14,260	)
Conversion of partnership units to common shares		(100,451	)		100,451			—		—
Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans		—			3,345			—		3,345
Repurchase of common shares		—			(742,017	)		—		(742,017	)

Balance as of September 30, 2017		10,248,971			140,918,189			90,619		151,257,779

Conversion of partnership units to cash		(156	)		—			—		(156	)
Conversion of partnership units to common shares		(47,345	)		47,345			—		—
Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans		58,102			28,451			—		86,553

Balance as of December 31, 2017		10,259,572			140,993,985			90,619		151,344,176

The Macerich Company

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands)


	For the Three Months Ended December 31, 2017			For the Twelve Months Ended December 31, 2017
Revenues:
Minimum rents	$	150,591		$	594,030
Percentage rents		10,340			17,124
Tenant recoveries		69,038			283,295
Other income		15,335			55,819
Management Companies’ revenues		11,439			43,394

Total revenues		256,743			993,662

Expenses:
Shopping center and operating expenses		72,663			295,190
Management Companies’ operating expenses		23,342			100,121
REIT general and administrative expenses		7,032			28,240
Depreciation and amortization		85,968			335,431
Interest expense		44,889			171,776

Total expenses		233,894			930,758
Equity in income of unconsolidated joint ventures		28,774			85,546
Co-venture expense		(2,479	)		(13,629	)
Income tax expense		(15,772	)		(15,594	)
Gain on sale or write down of assets, net		5,212			42,446

Net income		38,584			161,673
Less net income attributable to noncontrolling interests		5,833			15,543

Net income attributable to the Company	$	32,751		$	146,130

The Macerich Company

Consolidated Balance Sheet (Unaudited)

As of December 31, 2017

(Dollars in thousands)


ASSETS:
Property, net (a)	$	7,109,230
Cash and cash equivalents		91,038
Restricted cash		52,067
Tenant and other receivables, net		112,653
Deferred charges and other assets, net		449,190
Due from affiliates		82,162
Investments in unconsolidated joint ventures		1,709,522

Total assets	$	9,605,862


LIABILITIES AND EQUITY:
Mortgage notes payable	$	4,238,080
Bank and other notes payable		932,184
Accounts payable and accrued expenses		58,412
Other accrued liabilities		325,701
Distributions in excess of investments in unconsolidated joint ventures		83,486

Total liabilities		5,637,863

Commitments and contingencies
Equity:
Stockholders’ equity:
Common stock		1,410
Additional paid-in capital		4,510,489
Accumulated deficit		(830,279	)
Accumulated other comprehensive loss		(42	)

Total stockholders’ equity		3,681,578
Noncontrolling interests		286,421

Total equity		3,967,999

Total liabilities and equity	$	9,605,862

(a)	Includes construction in progress of $366,996.

The Macerich Company

Non-GAAP Pro Rata Financial Information (Unaudited)

(Dollars in thousands)


	For the Three Months Ended December 31, 2017						For the Twelve Months Ended December 31, 2017
	Noncontrolling Interests of Consolidated Joint Ventures (a)			Company’s Share of Unconsolidated Joint Ventures			Noncontrolling Interests of Consolidated Joint Ventures (a)			Company’s Share of Unconsolidated Joint Ventures
Revenues:
Minimum rents	$	(8,544	)	$	84,130		$	(34,780	)	$	331,052
Percentage rents		(332	)		4,959			(593	)		9,924
Tenant recoveries		(4,288	)		30,716			(17,623	)		122,700
Other income		(707	)		8,570			(3,148	)		29,402

Total revenues		(13,871	)		128,375			(56,144	)		493,078


Expenses:
Shopping center and operating expenses		(4,178	)		37,409			(15,727	)		145,378
Depreciation and amortization		(3,801	)		44,566			(15,126	)		177,274
Interest expense		(2,991	)		25,252			(9,881	)		101,487

Total expenses		(10,970	)		107,227			(40,734	)		424,139
Equity in income of unconsolidated joint ventures		(1,824	)		(26,950	)		(1,824	)		(83,722	)
Co-venture expense		2,479			—			13,629			—
Gain on sale or write down of assets, net		(1,209	)		5,802			(1,209	)		14,783

Net income		(3,455	)		—			(4,814	)		—
Less net income attributable to noncontrolling interests		(3,455	)		—			(4,814	)		—

Net income attributable to the Company	$	—		$	—		$	—		$	—

(a)	Represents the Company’s partners’ share of consolidated joint ventures.

The Macerich Company

Non-GAAP Pro Rata Financial Information (Unaudited)

(Dollars in thousands)


	As of December 31, 2017
	Noncontrolling Interests of Consolidated Joint Ventures (a)			Company’s Share of Unconsolidated Joint Ventures
ASSETS:
Property, net (b)	$	(310,620	)	$	4,348,228
Cash and cash equivalents		(14,041	)		111,861
Restricted cash		—			7,958
Tenant and other receivables, net		(17,424	)		58,211
Deferred charges and other assets, net		(35,552	)		152,494
Due from affiliates		181			(2,461	)
Investments in unconsolidated joint ventures, at equity		—			(1,709,522	)

Total assets	$	(377,456	)	$	2,966,769


LIABILITIES AND EQUITY:
Mortgage notes payable	$	(317,224	)	$	2,782,044
Bank and other notes payable		(2,365	)		60,000
Accounts payable and accrued expenses		(2,586	)		49,931
Other accrued liabilities		(36,627	)		158,280
Distributions in excess of investments in unconsolidated joint ventures		—			(83,486	)

Total liabilities		(358,802	)		2,966,769

Equity:
Stockholders’ equity		—			—
Noncontrolling interests		(18,654	)		—

Total equity		(18,654	)		—

Total liabilities and equity	$	(377,456	)	$	2,966,769

(a)	Represents the Company’s partners’ share of consolidated joint ventures.

(b)	This includes $11,134 of construction in progress relating to the Company’s partners’ share from consolidated joint ventures and $190,326 of construction in progress relating to the Company’s share from unconsolidated joint ventures.

The Macerich Company

2018 Guidance Range (Unaudited)

Management is providing diluted EPS and FFO per share guidance for 2018. A reconciliation of estimated EPS to FFO per share-diluted follows:


	Year 2018 Guidance
*Earnings Expectations:*
Earnings per share—diluted		$0.77 - $0.87
Plus: real estate depreciation and amortization		$3.15 - $3.15

FFO per share—diluted		$3.92 - $4.02

*Underlying Assumptions to 2018 Guidance*
Cash Same Center Net Operating Income (“NOI”) Growth(a)		2.0% - 2.5%
Assumed 2018 dispositions		None



	Year 2018 ($ millions)(b)		Year 2018 FFO / Share Impact
Lease termination income		$22	$0.15
Capitalized interest		$25	$0.17
Bad debt expense		($5)	($0.03)
Dilutive impact on 2018 of assets sold in 2017		($1.5)	($0.01)
Straight-line rent		$20	$0.13
Amortization of acquired above and below-market leases (net-revenue)		$12	$0.08
Interest Expense		$283

(a)	Excludes non-cash items of straight-line and above/below market adjustments to minimum rents. Includes lease termination income.

(b)	All joint venture amounts included at pro rata.

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Supplemental FFO Information(a)


	As of December 31,
	2017		2016
	dollars in millions
Straight-line rent receivable	$	97.2	$	84.6


	For the Three Months Ended December 31,				For the Twelve Months Ended December 31,
	2017		2016		2017		2016
	dollars in millions
Lease termination income	$	7.5	$	4.0	$	22.5	$	21.2
Straight-line rental income	$	3.3	$	4.3	$	16.7	$	13.6
Gain on sales of undepreciated assets	$	6.8	$	0.8	$	8.2	$	3.7
Amortization of acquired above and below-market leases (net-revenue)	$	1.2	$	7.0	$	12.8	$	24.7
Amortization of debt premiums	$	0.6	$	1.0	$	3.3	$	4.0
Interest capitalized	$	5.7	$	4.0	$	19.8	$	16.5

(a)	All joint venture amounts included at pro rata.

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Capital Expenditures(a)


	Year Ended 12/31/17		Year Ended 12/31/16		Year Ended 12/31/15
	dollars in millions
Consolidated Centers
Acquisitions of property and equipment	$	38.2	$	56.8	$	79.8
Development, redevelopment, expansions and renovations of Centers		152.1		183.2		218.7
Tenant allowances		11.5		19.2		30.4
Deferred leasing charges		26.5		24.8		26.8

Total	$	228.3	$	284.0	$	355.7

Unconsolidated Joint Venture Centers
Acquisitions of property and equipment	$	16.0	$	349.8	$	160.0
Development, redevelopment, expansions and renovations of Centers		121.8		101.1		132.9
Tenant allowances		6.8		11.3		6.3
Deferred leasing charges		6.2		7.1		3.3

Total	$	150.8	$	469.3	$	302.5

(a)	All joint venture amounts at pro rata.

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Regional Shopping Center Portfolio

Sales Per Square Foot(a)


	Consolidated Centers		Unconsolidated Joint Venture Centers		Total Centers
12/31/2017	$	584	$	765	$	660
12/31/2016(b)	$	573	$	710	$	630
12/31/2015(c)	$	579	$	763	$	635
12/31/2014(d)	$	556	$	724	$	587
12/31/2013(e)	$	488	$	717	$	562

(a)

Sales are based on reports by retailers leasing mall and freestanding stores for the trailing 12 months for tenants which have occupied such stores for a minimum of 12 months. Sales per square foot are based on tenants 10,000 square feet and under for regional shopping centers. Sales per square foot exclude Centers under development and redevelopment.

(b)	Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from sales per square foot as of December 31, 2016.

(c)	On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Flagstaff Mall is excluded from sales per square foot as of December 31, 2015.

(d)	On June 30, 2015, the Company conveyed Great Northern Mall to the mortgage lender by a deed-in-lieu of foreclosure. Great Northern Mall is excluded from Sales per square foot as of December 31, 2014.

(e)	Rotterdam Square, sold January 15, 2014, is excluded at December 31, 2013.

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The Macerich Company

Sales Per Square Foot by Property Ranking (Unaudited)


	Sales per square foot				Occupancy						Cost of Occupancy for the trailing 12 months Ended 12/31/2017 *(c)*			% of Portfolio 2018 Forecast Pro Rata Real Estate NOI *(d)*
Properties	12/31/2017 *(a)*		12/31/2016 *(a)*		12/31/2017 *(b)*			12/31/2016 *(b)*
Group 1: Top 10
Corte Madera, Village at	$	1,532	$	1,456		97.4	%		90.1	%
Queens Center	$	1,461	$	1,364		99.5	%		98.5	%
Broadway Plaza (e)	$	1,326		n/a		97.6	%		n/a
Washington Square	$	1,119	$	972		95.2	%		99.5	%
Tysons Corner Center	$	980	$	876		96.6	%		98.4	%
Los Cerritos Center	$	947	$	896		96.3	%		94.9	%
Biltmore Fashion Park	$	913	$	829		95.6	%		98.4	%
North Bridge, The Shops at	$	875	$	884		98.8	%		99.3	%
Santa Monica Place	$	808	$	808		89.2	%		86.5	%
Tucson La Encantada	$	785	$	747		94.2	%		94.6	%

Total Top 10:	$	1,081	$	979		96.3	%		96.6	%		13.3	%		30.5	%

Group 2: Top 11-20
Fashion Outlets of Chicago	$	782	$	772		95.9	%		97.7	%
Arrowhead Towne Center	$	770	$	751		95.5	%		94.7	%
Scottsdale Fashion Square	$	765	$	727		91.3	%		96.4	%
Fresno Fashion Fair	$	735	$	710		94.3	%		95.6	%
Kings Plaza Shopping Center	$	686	$	697		96.6	%		95.2	%
Vintage Faire Mall	$	685	$	704		98.1	%		95.4	%
Kierland Commons	$	678	$	670		96.2	%		97.6	%
Chandler Fashion Center	$	674	$	657		94.7	%		95.2	%
Twenty Ninth Street	$	647	$	638		97.3	%		98.1	%
Country Club Plaza		n/a		n/a		n/a			n/a

Total Top 11-20:	$	714	$	695		94.8	%		95.5	%		13.0	%		25.7	%

The Macerich Company

Sales Per Square Foot by Property Ranking (Unaudited)


	Sales per square foot				Occupancy						Cost of Occupancy for the trailing 12 months Ended 12/31/2017 *(c)*			% of Portfolio 2018 Forecast Pro Rata Real Estate NOI *(d)*
Properties	12/31/2017 *(a)*		12/31/2016 *(a)*		12/31/2017 *(b)*			12/31/2016 *(b)*
Group 3: Top 21-30
Stonewood Center	$	638	$	576		93.1	%		94.0	%
Freehold Raceway Mall	$	622	$	613		97.0	%		97.8	%
Green Acres Mall	$	615	$	625		97.9	%		93.5	%
Danbury Fair Mall	$	614	$	648		92.1	%		95.9	%
Oaks, The	$	571	$	514		93.0	%		95.6	%
FlatIron Crossing	$	558	$	550		96.7	%		95.1	%
SanTan Village Regional Center	$	548	$	522		97.6	%		97.5	%
Inland Center	$	542	$	489		95.3	%		98.1	%
Victor Valley, Mall of	$	534	$	539		97.9	%		97.8	%
Deptford Mall	$	526	$	558		98.0	%		95.3	%

Total Top 21-30:	$	581	$	570		96.0	%		95.8	%		14.3	%		25.0	%

Group 4: Top 31-40
La Cumbre Plaza	$	486	$	469		88.0	%		85.2	%
Lakewood Center	$	479	$	482		97.4	%		98.3	%
West Acres	$	477	$	479		96.5	%		98.9	%
Valley River Center	$	451	$	467		96.9	%		99.0	%
South Plains Mall	$	433	$	425		91.5	%		90.1	%
Pacific View	$	427	$	448		95.1	%		94.5	%
Superstition Springs Center	$	376	$	377		89.5	%		92.9	%
Eastland Mall	$	360	$	367		96.7	%		96.3	%
Fashion Outlets of Niagara Falls USA	$	351	$	339		90.2	%		92.9	%
Desert Sky Mall	$	321	$	336		98.5	%		97.5	%

Total Top 31-40:	$	415	$	417		94.5	%		95.3	%		13.6	%		13.6	%

Total Top 40:	$	684	$	652		95.4	%		95.8	%		13.5	%		94.8	%

The Macerich Company

Sales Per Square Foot by Property Ranking (Unaudited)

Sales per square foot

Occupancy

Cost of Occupancy
for the trailing
12 months

Ended 12/31/2017
(c)

% of Portfolio
2018 Forecast
Pro Rata
Real Estate NOI
(d)

Properties

12/31/2017
(a)

12/31/2016
(a)

12/31/2017
(b)

12/31/2016
(b)

Group 5: 41-45

NorthPark Mall

SouthPark Mall

Towne Mall

Valley Mall

Wilton Mall

Total 41-45:

281

293

89.6

90.7

11.3

Centers under Redevelopment

Fashion District Philadelphia (e) (f)

Paradise Valley Mall (e)

Westside Pavilion (e)

48 REGIONAL SHOPPING CENTERS (g)

660

630

95.0

95.4

13.4

98.3

Community / Power Centers and various retail assets

1.7

TOTAL ALL PROPERTIES

13.3

100.0

The Macerich Company

Notes to Sales Per Square Foot by Property Ranking (unaudited)

Footnotes

(a)

Sales are based on reports by retailers leasing mall and freestanding stores for the trailing 12 months for tenants which have occupied such stores for a minimum of 12 months. Sales per square foot are based on tenants 10,000 square feet and under. Properties are ranked by Sales per square foot as of December 31, 2017.

(b)	Occupancy is the percentage of mall and freestanding GLA leased as of the last day of the reporting period. Occupancy excludes Centers under development and redevelopment.

(c)

Cost of Occupancy represents “Tenant Occupancy Costs” divided by “Tenant Sales”. Tenant Occupancy Costs in this calculation are the amounts paid to the Company, including minimum rents, percentage rents and recoverable expenditures, which consist primarily of property operating expenses, real estate taxes and repair and maintenance expenditures.

(d)

The percentage of Portfolio 2018 Forecast Pro Rata Real Estate NOI is based on the guidance range provided on February 5, see page 9. Real Estate NOI excludes straight-line and above/below market adjustments to minimum rents. Real Estate NOI also does not reflect REIT expenses and Management Company revenues and expenses. See the Company’s forward-looking statements disclosure on pages 1 and 2 for factors that may affect the information provided in this column.

(e)	These assets are (or were previously) under redevelopment including demolition and reconfiguration of the Centers and tenant spaces, accordingly the Sales per square foot and Occupancy during the periods of redevelopment are not included.

(f)	On July 30, 2014, the Company formed a joint venture to redevelop and rebrand The Gallery in Philadelphia, Pennsylvania.

(g)	Properties sold prior to December 31, 2017 are excluded in both current and prior periods above.

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Occupancy(a)


Regional Shopping Centers: Period Ended	Consolidated Centers			Unconsolidated Joint Venture Centers			Total Centers
12/31/2017		94.4	%		95.6	%		95.0	%
12/31/2016(b)		94.8	%		96.2	%		95.4	%
12/31/2015(c)		95.3	%		97.8	%		96.1	%

(a)	Occupancy is the percentage of mall and freestanding GLA leased as of the last day of the reporting period. Occupancy excludes Centers under development and redevelopment.

(b)	Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from occupancy as of December 31, 2016.

(c)	On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Flagstaff Mall is excluded from Occupancy as of December 31, 2015.

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Average Base Rent Per Square Foot(a)


	Average Base Rent PSF(b)		Average Base Rent PSF on Leases Executed during the trailing twelve months ended(c)		Average Base Rent PSF on Leases Expiring(d)
Consolidated Centers
12/31/2017	$	55.08	$	57.36	$	49.61
12/31/2016(e)	$	53.51	$	53.48	$	44.77
12/31/2015(f)	$	52.64	$	53.99	$	49.02
Unconsolidated Joint Venture Centers
12/31/2017	$	60.99	$	63.50	$	55.50
12/31/2016	$	57.90	$	64.78	$	57.29
12/31/2015	$	60.74	$	80.18	$	60.85
All Regional Shopping Centers
12/31/2017	$	56.97	$	59.20	$	51.39
12/31/2016(e)	$	54.87	$	56.57	$	48.08
12/31/2015(f)	$	54.32	$	57.41	$	50.29

(a)	Average base rent per square foot is based on spaces 10,000 square feet and under. All joint venture amounts are included at pro rata. Centers under development and redevelopment are excluded.

(b)	Average base rent per square foot gives effect to the terms of each lease in effect, as of the applicable date, including any concessions, abatements and other adjustments or allowances that have been granted to the tenants.

(c)	The average base rent per square foot on leases executed during the period represents the actual rent to be paid during the first twelve months.

(d)	The average base rent per square foot on leases expiring during the period represents the final year minimum rent on a cash basis.

(e)	Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from the table above as of December 31, 2016.

(f)	On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Flagstaff Mall is excluded from the table above as of December 31, 2015.

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Cost of Occupancy


	For Years Ended December 31,
	2017			2016(a)			2015(b)
Consolidated Centers
Minimum rents		9.5	%		9.4	%		9.0	%
Percentage rents		0.3	%		0.4	%		0.4	%
Expense recoveries(c)		4.2	%		4.3	%		4.5	%

Total		14.0	%		14.1	%		13.9	%


	For Years Ended December 31,
	2017			2016			2015
Unconsolidated Joint Venture Centers
Minimum rents		8.6	%		8.6	%		8.1	%
Percentage rents		0.3	%		0.3	%		0.4	%
Expense recoveries(c)		3.8	%		3.9	%		4.0	%

Total		12.7	%		12.8	%		12.5	%


	For Years Ended December 31,
	2017			2016(a)			2015(b)
All Centers
Minimum rents		9.0	%		9.0	%		8.7	%
Percentage rents		0.3	%		0.3	%		0.4	%
Expense recoveries(c)		4.0	%		4.1	%		4.3	%

Total		13.3	%		13.4	%		13.4	%

(a)	Cascade Mall and Northgate Mall were under contract to be sold in December 2016 and sold in January 2017. These two Centers are excluded from cost of occupancy as of December 31, 2016.

(b)	On July 15, 2016, the Company conveyed Flagstaff Mall to the mortgage lender by a deed-in-lieu of foreclosure. Flagstaff Mall is excluded from cost of occupancy as of December 31, 2015.

(c)	Represents real estate tax and common area maintenance charges.

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Percentage of Net Operating Income by State


State	% of Portfolio 2018 Forecast Real Estate Pro Rata NOI(a)
California		27.1	%
New York		22.4	%
Arizona		16.0	%
Colorado, Illinois & Missouri		9.5	%
Pennsylvania & Virginia		8.8	%
New Jersey & Connecticut		7.5	%
Oregon		4.3	%
Other(b)		4.4	%

Total		100.0	%

(a)

The percentage of Portfolio 2018 Forecast Pro Rata Real Estate NOI is based on guidance provided on February 5, 2018, see page 9. Real Estate NOI excludes straight-line and above/below market adjustments to minimum rents. Real Estate NOI also does not reflect REIT expenses and Management Company revenues and expenses. See the Company’s forward-looking statements disclosure on pages 1 and 2 for factors that may affect the information provided in this column.

(b)	“Other” includes Indiana, Iowa, Kentucky, North Dakota and Texas.

The Macerich Company

Property Listing

December 31, 2017

The following table sets forth certain information regarding the Centers and other locations that are wholly owned or partly owned by the Company.


Count	Company’s Ownership(a)	Name of Center/Location	Year of Original Construction/ Acquisition		Year of Most Recent Expansion/ Renovation		Total GLA(b)
	CONSOLIDATED CENTERS:
1	50.1%	Chandler Fashion Center Chandler, Arizona		2001/2002		—		1,318,000
2	100%	Danbury Fair Mall Danbury, Connecticut		1986/2005		2016		1,269,000
3	100%	Desert Sky Mall Phoenix, Arizona		1981/2002		2007		894,000
4	100%	Eastland Mall(c) Evansville, Indiana		1978/1998		1996		1,026,000
5	100%	Fashion Outlets of Chicago Rosemont, Illinois		2013/—		—		538,000
6	100%	Fashion Outlets of Niagara Falls USA Niagara Falls, New York		1982/2011		2014		688,000
7	50.1%	Freehold Raceway Mall Freehold, New Jersey		1990/2005		2007		1,671,000
8	100%	Fresno Fashion Fair Fresno, California		1970/1996		2006		964,000
9	100%	Green Acres Mall(c) Valley Stream, New York		1956/2013		2016		2,069,000
10	100%	Inland Center San Bernardino, California		1966/2004		2016		869,000
11	100%	Kings Plaza Shopping Center(c) Brooklyn, New York		1971/2012		2002		1,138,000
12	100%	La Cumbre Plaza(c) Santa Barbara, California		1967/2004		1989		491,000
13	100%	NorthPark Mall Davenport, Iowa		1973/1998		2001		1,051,000
14	100%	Oaks, The Thousand Oaks, California		1978/2002		2009		1,193,000
15	100%	Pacific View Ventura, California		1965/1996		2001		1,061,000
16	100%	Queens Center(c) Queens, New York		1973/1995		2004		963,000
17	100%	Santa Monica Place Santa Monica, California		1980/1999		2015		526,000
18	84.9%	SanTan Village Regional Center Gilbert, Arizona		2007/—		2009		1,086,000
19	100%	SouthPark Mall Moline, Illinois		1974/1998		2015		863,000
20	100%	Stonewood Center(c) Downey, California		1953/1997		1991		933,000
21	100%	Superstition Springs Center Mesa, Arizona		1990/2002		2002		1,041,000
22	100%	Towne Mall Elizabethtown, Kentucky		1985/2005		1989		350,000

The Macerich Company

Property Listing

December 31, 2017


Count	Company’s Ownership(a)	Name of Center/Location	Year of Original Construction/ Acquisition		Year of Most Recent Expansion/ Renovation	Total GLA(b)
23	100%	Tucson La Encantada Tucson, Arizona		2002/2002	2005		244,000
24	100%	Valley Mall Harrisonburg, Virginia		1978/1998	1992		505,000
25	100%	Valley River Center Eugene, Oregon		1969/2006	2007		868,000
26	100%	Victor Valley, Mall of Victorville, California		1986/2004	2012		577,000
27	100%	Vintage Faire Mall Modesto, California		1977/1996	2008		1,138,000
28	100%	Wilton Mall Saratoga Springs, New York		1990/2005	1998		734,000

		Total Consolidated Centers					26,068,000

UNCONSOLIDATED JOINT VENTURE CENTERS:
29	60%	Arrowhead Towne Center Glendale, Arizona		1993/2002	2015		1,197,000
30	50%	Biltmore Fashion Park Phoenix, Arizona		1963/2003	2006		517,000
31	50%	Broadway Plaza(c) Walnut Creek, California		1951/1985	2016		888,000
32	50.1%	Corte Madera, The Village at Corte Madera, California		1985/1998	2005		461,000
33	50%	Country Club Plaza Kansas City, Missouri		1922/2016	2015		1,001,000
34	51%	Deptford Mall Deptford, New Jersey		1975/2006	1990		1,040,000
35	51%	FlatIron Crossing Broomfield, Colorado		2000/2002	2009		1,433,000
36	50%	Kierland Commons Scottsdale, Arizona		1999/2005	2003		435,000
37	60%	Lakewood Center Lakewood, California		1953/1975	2008		2,070,000
38	60%	Los Cerritos Center(c) Cerritos, California		1971/1999	2016		1,305,000
39	50%	North Bridge, The Shops at(c) Chicago, Illinois		1998/2008	—		674,000
40	50%	Scottsdale Fashion Square Scottsdale, Arizona		1961/2002	2015		1,837,000
41	60%	South Plains Mall Lubbock, Texas		1972/1998	2017		1,128,000
42	51%	Twenty Ninth Street(c) Boulder, Colorado		1963/1979	2007		847,000
43	50%	Tysons Corner Center Tysons Corner, Virginia		1968/2005	2014		1,971,000
44	60%	Washington Square Portland, Oregon		1974/1999	2005		1,442,000
45	19%	West Acres Fargo, North Dakota		1972/1986	2001		971,000

		Total Unconsolidated Joint Venture Centers					19,217,000

The Macerich Company

Property Listing

December 31, 2017


Count	Company’s Ownership(a)	Name of Center/Location	Year of Original Construction/ Acquisition		Year of Most Recent Expansion/ Renovation		Total GLA(b)
REGIONAL SHOPPING CENTERS UNDER REDEVELOPMENT:
46	50%	Fashion District Philadelphia(d) Philadelphia, Pennsylvania		1977/2014		ongoing		850,000
47	100%	Paradise Valley Mall(e) Phoenix, Arizona		1979/2002		2009		1,204,000
48	100%	Westside Pavilion(e) Los Angeles, California		1985/1998		2007		755,000

		Total Regional Shopping Centers						48,094,000

COMMUNITY / POWER CENTERS:
1	50%	Atlas Park, The Shops at(d) Queens, New York		2006/2011		2013		372,000
2	50%	Boulevard Shops(d) Chandler, Arizona		2001/2002		2004		185,000
3	various	Estrella Falls, The Market at(d) Goodyear, Arizona		2009/—		2016		360,000
4	89.4%	Promenade at Casa Grande(e) Casa Grande, Arizona		2007/—		2009		761,000
5	100%	Southridge Center(e) Des Moines, Iowa		1975/1998		2013		826,000
6	100%	Superstition Springs Power Center(e) Mesa, Arizona		1990/2002		—		206,000
7	100%	The Marketplace at Flagstaff(c)(e) Flagstaff, Arizona		2007/—		—		268,000

		Total Community / Power Centers						2,978,000

OTHER ASSETS:
	100%	Various(e)(f)						447,000
	50%	Fashion District Philadelphia-Office(d) Philadelphia, Pennsylvania						214,000
	50%	Scottsdale Fashion Square-Office(d) Scottsdale, Arizona						122,000
	50%	Tysons Corner Center-Office(d) Tysons Corner, Virginia						174,000
	50%	Hyatt Regency Tysons Corner Center(d) Tysons Corner, Virginia						290,000
	50%	VITA Tysons Corner Center(d) Tysons Corner, Virginia						510,000
	50%	Tysons Tower(d) Tysons Corner, Virginia						529,000

		Total Other Assets						2,286,000

		Grand Total at December 31, 2017						53,358,000

(a)	The Company’s ownership interest in this table reflects its legal ownership interest. See footnotes (a) and (b) on pages 25 and 26 regarding the legal versus economic ownership of joint venture entities.

(b)	Includes GLA attributable to anchors (whether owned or non-owned) and mall and freestanding stores as of December 31, 2017.

The Macerich Company

Property Listing

December 31, 2017

(c)

Portions of the land on which the Center is situated are subject to one or more long-term ground leases. With respect to 44 Centers, the underlying land controlled by the Company is owned in fee entirely by the Company, or, in the case of jointly-owned Centers, by the joint venture property partnership or limited liability company.

(d)	Included in Unconsolidated Joint Venture Centers.

(e)	Included in Consolidated Centers.

(f)

The Company owns an office building and seven stores located at shopping centers not owned by the Company. Of the seven stores, one is leased to Forever 21, one is leased to Kohl’s, two are vacant, and three have been leased for non-Anchor uses. With respect to the office building and four of the seven stores, the underlying land is owned in fee entirely by the Company. With respect to the remaining three stores, the underlying land is owned by third parties and leased to the Company pursuant to long-term building or ground leases.

The Macerich Company

Joint Venture List as of December 31, 2017

The following table sets forth certain information regarding the Centers and other operating properties that are not wholly-owned by the Company. This list of properties includes unconsolidated joint ventures, consolidated joint ventures, and co-venture arrangements. The percentages shown are the effective legal ownership and economic ownership interests of the Company as of December 31, 2017.


Properties	Legal Ownership(a)			Economic Ownership(b)			Joint Venture	Total GLA(c)
Arrowhead Towne Center		60	%		60	%	New River Associates LLC		1,197,000
Atlas Park, The Shops at		50	%		50	%	WMAP, L.L.C.		372,000
Biltmore Fashion Park		50	%		50	%	Biltmore Shopping Center Partners LLC		517,000
Boulevard Shops		50	%		50	%	Propcor II Associates, LLC		185,000
Broadway Plaza		50	%		50	%	Macerich Northwestern Associates		888,000
Chandler Fashion Center(d)		50.1	%		50.1	%	Freehold Chandler Holdings LP		1,318,000
Corte Madera, The Village at		50.1	%		50.1	%	Corte Madera Village, LLC		461,000
Country Club Plaza		50	%		50	%	Country Club Plaza KC Partners LLC		1,001,000
Deptford Mall		51	%		51	%	Macerich HHF Centers LLC		1,040,000
Estrella Falls		86.6	%		86.6	%	Westcor Goodyear RSC LLC		79,000
Estrella Falls, The Market at(e)		40.1	%		40.1	%	The Market at Estrella Falls LLC		281,000
Fashion District Philadelphia		50	%		50	%	Various Entities		850,000
Fashion District Philadelphia-Office		50	%		50	%	Various Entities		214,000
FlatIron Crossing		51	%		51	%	Macerich HHF Centers LLC		1,433,000
Freehold Raceway Mall(d)		50.1	%		50.1	%	Freehold Chandler Holdings LP		1,671,000
Hyatt Regency Tysons Corner Center		50	%		50	%	Tysons Corner Hotel I LLC		290,000
Kierland Commons		50	%		50	%	Kierland Commons Investment LLC		435,000
Lakewood Center		60	%		60	%	Pacific Premier Retail LLC		2,070,000
Los Cerritos Center		60	%		60	%	Pacific Premier Retail LLC		1,305,000
North Bridge, The Shops at		50	%		50	%	North Bridge Chicago LLC		674,000
Promenade at Casa Grande(f)		89.4	%		89.4	%	WP Casa Grande Retail LLC		761,000
SanTan Village Regional Center		84.9	%		84.9	%	Westcor SanTan Village LLC		1,086,000
Scottsdale Fashion Square		50	%		50	%	Scottsdale Fashion Square Partnership		1,837,000
Scottsdale Fashion Square-Office		50	%		50	%	Scottsdale Fashion Square Partnership		122,000
Macerich Seritage Portfolio(g)		50	%		50	%	MS Portfolio LLC		1,550,000
South Plains Mall		60	%		60	%	Pacific Premier Retail LLC		1,128,000
Twenty Ninth Street		51	%		51	%	Macerich HHF Centers LLC		847,000
Tysons Corner Center		50	%		50	%	Tysons Corner LLC		1,971,000
Tysons Corner Center-Office		50	%		50	%	Tysons Corner Property LLC		174,000
Tysons Tower		50	%		50	%	Tysons Corner Property LLC		529,000
VITA Tysons Corner Center		50	%		50	%	Tysons Corner Property LLC		510,000
Washington Square		60	%		60	%	Pacific Premier Retail LLC		1,442,000
West Acres		19	%		19	%	West Acres Development, LLP		971,000

(a)

This column reflects the Company’s legal ownership in the listed properties as of December 31, 2017. Legal ownership may, at times, not equal the Company’s economic interest in the listed properties because of various provisions in certain joint venture agreements regarding distributions of cash flow based on capital account balances, allocations of profits and losses and payments of preferred returns. As a result, the Company’s actual economic interest (as distinct from its legal ownership interest) in certain of the properties could fluctuate from time to time and may not wholly align with its legal ownership interests. Substantially all of the Company’s joint venture agreements contain rights of first refusal, buy-sell provisions, exit rights, default dilution remedies and/or other break up provisions or remedies which are customary in real estate joint venture agreements and which may, positively or negatively, affect the ultimate realization of cash flow and/or capital or liquidation proceeds.

The Macerich Company

Joint Venture List

(b)

Economic ownership represents the allocation of cash flow to the Company as of December 31, 2017, except as noted below. In cases where the Company receives a current cash distribution greater than its legal ownership percentage due to a capital account greater than its legal ownership percentage, only the legal ownership percentage is shown in this column. The Company’s economic ownership of these properties may fluctuate based on a number of factors, including mortgage refinancings, partnership capital contributions and distributions, and proceeds and gains or losses from asset sales, and the matters set forth in the preceding paragraph.

(c)	Includes GLA attributable to anchors (whether owned or non-owned) and mall and freestanding stores as of December 31, 2017.

(d)

The joint venture entity was formed in September 2009. Upon liquidation of the partnership, distributions are made in the following order: to the third-party partner until it receives a 13% internal rate of return on and of its aggregate unreturned capital contributions; to the Company until it receives a 13% internal rate of return on and of its aggregate unreturned capital contributions; and, thereafter, pro rata 35% to the third-party partner and 65% to the Company.

(e)

Columns 1 and 2 reflect the Company’s indirect ownership interest in the property owner. The Company and a third-party partner are each members of a joint venture (the “MW Joint Venture”) which, in turn, is a member in the joint venture that owns the property. Cash flow distributions for the MW Joint Venture are made in accordance with the members’ relative capital accounts until the members have received distributions equal to their capital accounts, and thereafter in accordance with the members’ relative legal ownership percentages.

(f)

Columns 1 and 2 reflect the Company’s total direct and indirect ownership interest in the property owner. The Company and a third-party partner are each members of a joint venture (the “MW Joint Venture”) which, in turn, is a member in the joint venture with the Company that owns the property. Cash flow distributions for the MW Joint Venture are made in accordance with the members’ relative capital accounts until the members have received distributions equal to their capital accounts, and thereafter in accordance with the members’ relative legal ownership percentages.

(g)

On April 30, 2015 Sears Holdings Corporation (“Sears”) and the Company announced that they had formed a joint venture, MS Portfolio LLC. Sears contributed nine stores (located at Arrowhead Towne Center, Chandler Fashion Center, Danbury Fair Mall, Deptford Mall, Freehold Raceway Mall, Los Cerritos Center, South Plains Mall, Vintage Faire Mall and Washington Square) to the joint venture and the Company contributed $150 million in cash to the joint venture. The lease arrangements between Sears and the joint venture provide the ability to create additional value through recapturing certain space leased to Sears in these properties and re-leasing that space to third-party tenants. For example, Primark has leased space in portions of the Sears stores at Danbury Fair Mall and Freehold Raceway Mall. On July 7, 2015, Sears assigned its ownership interest in MS Portfolio LLC to Seritage MS Holdings LLC.

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Debt Summary (at Company’s pro rata share)(a)


	As of December 31, 2017
	Fixed Rate			Floating Rate		Total
	(Dollars in thousands)
Mortgage notes payable	$	3,635,197		$	602,883	$	4,238,080
Bank and other notes payable		4,732			927,452		932,184

Total debt per Consolidated Balance Sheet		3,639,929			1,530,335		5,170,264
Adjustments:
Less: Noncontrolling interests share of debt from consolidated joint ventures		(319,589	)		—		(319,589	)

Adjusted Consolidated Debt		3,320,340			1,530,335		4,850,675
Add: Company’s share of debt from unconsolidated joint ventures		2,736,523			105,521		2,842,044

Total Company’s Pro Rata Share of Debt	$	6,056,863		$	1,635,856	$	7,692,719

Weighted average interest rate		3.85%			3.16%		3.71%
Weighted average maturity (years)							5.86

(a)

The Company’s pro rata share of debt represents (i) consolidated debt, minus the Company’s partners’ share of the amount from consolidated joint ventures (calculated based upon the partners’ percentage ownership interest); plus (ii) the Company’s share of debt from unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest). Management believes that this measure provides useful information to investors regarding the Company’s financial condition because it includes the Company’s share of debt from unconsolidated joint ventures and, for consolidated debt, excludes the Company’s partners’ share from consolidated joint ventures, in each case presented on the same basis. The Company has several significant joint ventures and presenting its pro rata share of debt in this manner can help investors better understand the Company’s financial condition after taking into account the Company’s economic interest in these joint ventures. The Company’s pro rata share of debt should not be considered as a substitute to the Company’s total debt determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Outstanding Debt by Maturity Date


	As of December 31, 2017
Center/Entity (dollars in thousands)	Maturity Date		Effective Interest Rate (a)			Fixed		Floating		Total Debt Balance (a)
I. Consolidated Assets:
SanTan Village Regional Center (b)		06/01/19		3.14	%	$	105,860	$	—	$	105,860
Chandler Fashion Center (c)		07/01/19		3.77	%		100,151		—		100,151
Kings Plaza Shopping Center		12/03/19		3.67	%		447,231		—		447,231
Danbury Fair Mall		10/01/20		5.53	%		209,197		—		209,197
Fashion Outlets of Niagara Falls USA		10/06/20		4.89	%		112,770		—		112,770
Green Acres Mall		02/03/21		3.61	%		291,366		—		291,366
Prasada (d)		05/30/21		5.25	%		2,366		—		2,366
Tucson La Encantada		03/01/22		4.23	%		66,970		—		66,970
Pacific View		04/01/22		4.08	%		124,397		—		124,397
Oaks, The		06/05/22		4.14	%		196,732		—		196,732
Westside Pavilion		10/01/22		4.49	%		141,020		—		141,020
Towne Mall		11/01/22		4.48	%		21,161		—		21,161
Victor Valley, Mall of		09/01/24		4.00	%		114,617		—		114,617
Queens Center		01/01/25		3.49	%		600,000		—		600,000
Vintage Faire		03/06/26		3.55	%		263,818		—		263,818
Fresno Fashion Fair		11/01/26		3.67	%		323,261		—		323,261
Freehold Raceway Mall (c)		11/01/29		3.94	%		199,423		—		199,423

Total Fixed Rate Debt for Consolidated Assets				3.89	%	$	3,320,340	$	—	$	3,320,340

Fashion Outlets of Chicago		03/31/20		3.02	%	$	—	$	199,298	$	199,298
Green Acres Commons (e)		03/29/21		4.07	%		—		107,219		107,219
The Macerich Partnership, L.P. - Line of Credit (e)		07/06/21		3.13	%		—		927,452		927,452
Santa Monica Place (e)		12/09/22		3.13	%		—		296,366		296,366

Total Floating Rate Debt for Consolidated Assets				3.18	%	$	—	$	1,530,335	$	1,530,335

Total Debt for Consolidated Assets				3.67	%	$	3,320,340	$	1,530,335	$	4,850,675

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Outstanding Debt by Maturity Date


	As of December 31, 2017
Center/Entity (dollars in thousands)	Maturity Date		Effective Interest Rate (a)			Fixed			Floating			Total Debt Balance (a)
II. Unconsolidated Assets (At Company's pro rata share):
FlatIron Crossing (51%)		01/05/21		2.81	%	$	126,380		$	—		$	126,380
Washington Square Mall (60%)		11/01/22		3.65	%		330,000			—			330,000
Deptford Mall (51%)		04/03/23		3.55	%		95,432			—			95,432
Scottsdale Fashion Square (50%)		04/03/23		3.02	%		235,649			—			235,649
Tysons Corner Center (50%)		01/01/24		4.13	%		390,561			—			390,561
South Plains Mall (60%)		11/06/25		4.22	%		120,000			—			120,000
Twenty Ninth Street (51%)		02/06/26		4.10	%		76,500			—			76,500
Country Club Plaza (50%)		04/01/26		3.88	%		159,608			—			159,608
Lakewood Center (60%)		06/01/26		4.15	%		222,166			—			222,166
Kierland Commons (50%)		04/01/27		3.98	%		110,979			—			110,979
Los Cerritos Center (60%)		11/01/27		4.00	%		315,000			—			315,000
Arrowhead Towne Center (60%)		02/01/28		4.05	%		240,000			—			240,000
North Bridge, The Shops at (50%)		06/01/28		3.71	%		186,935			—			186,935
Corte Madera, The Village at (50.1%)		09/01/28		3.53	%		112,360			—			112,360
West Acres (19%)		03/01/32		4.61	%		14,953			—			14,953

Total Fixed Rate Debt for Unconsolidated Assets				3.81	%	$	2,736,523		$	—		$	2,736,523

Boulevard Shops (50%)		12/16/18		3.24	%	$	—		$	9,348		$	9,348
Estrella Falls, The Market at (40.1%) (e)		02/05/20		3.39	%		—			9,903			9,903
Atlas Park (50%) (e)		10/28/20		3.43	%		—			26,270			26,270
Pacific Premier Retail LLC (60%)		10/31/22		2.56	%		—			60,000			60,000

Total Floating Rate Debt for Unconsolidated Assets				2.91	%	$	—		$	105,521		$	105,521

Total Debt for Unconsolidated Assets				3.77	%	$	2,736,523		$	105,521		$	2,842,044

Total Debt				3.71	%	$	6,056,863		$	1,635,856		$	7,692,719

Percentage to Total							78.74	%		21.26	%		100.00	%

(a)

The debt balances include the unamortized debt premiums/discounts and loan finance costs. Debt premiums/discounts represent the excess of the fair value of debt over the principal value of debt assumed in various acquisitions. Debt premiums/discounts and loan finance costs are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. The annual interest rate in the table represents the effective interest rate, including the debt premiums/discounts and loan finance costs.

(b)	This property is owned by a consolidated joint venture. The above debt balance represents the Company's pro rata share of 84.9%.

(c)	This property is owned by a consolidated joint venture. The above debt balance represents the Company's pro rata share of 50.1%.

(d)	This property is owned by a consolidated joint venture. The above debt balance represents the Company's pro rata share of 50.0%.

(e)	The maturity date assumes that all available extension options are fully exercised and that the Company and/or its affiliates do not opt to refinance the debt prior to these dates.

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Development Pipeline Forecast

(Dollars in millions)

as of December 31, 2017

In-Process Developments and Redevelopments:

Property

Project Type

Total Cost(a)(b)
at 100%

Ownership
%

Total Cost(a)(b)
Pro Rata

Pro Rata

Capitalized Costs(b)

12/31/2017

Expected
Delivery(a)

Stabilized
Yield(a)(b)(c)

Fashion District Philadelphia
Philadelphia, PA

Redevelopment of The Gallery in downtown Philadelphia

$305 - $365(d)

50%

$153 - $183(d)

$127

2018

8%(d)

Kings Plaza Shopping Center
Brooklyn, NY

250,000 sf redevelopment of former Sears store, to be anchored by Burlington, Primark, JCPenney and Zara

$95 - $100

100%

$95 - $100

$ 64

Q2 2018

4%(e)

Total In-Process

$400 - $465

$248 - $283

$191

Shadow Pipeline of Developments and Redevelopments(f):

Property

Project Type

Total Cost(a)(b)

at 100%

Ownership
%

Total Cost(a)(b)

Pro Rata

Capitalized Costs(b)

12/31/2017

Expected
Delivery(a)

Stabilized
Yield(a)(b)(c)

Fashion Outlets of San Francisco
San Francisco, CA

A 500,000 sf outlet center on the historic site of Candlestick Park

$350

50.1%

$175

2020 - 2021

7% - 9%

Paradise Valley Mall
Phoenix, AZ

Redevelopment (size TBD) including a theater

TBD

100%

TBD

Westside Pavilion
Los Angeles, CA

Redevelopment of an existing 755,000 sf Center

TBD

100%

TBD

Total Shadow Pipeline

$350

$175

$11

(a)	Much of this information is estimated and may change from time to time. See the Company’s forward-looking disclosure on pages 1 and 2 for factors that may affect the information provided in this table.

(b)	This excludes GAAP allocations of non cash and indirect costs.

(c)	Stabilized Yield is calculated based on stabilized income after development divided by project direct costs excluding GAAP allocations of non cash and indirect costs.

(d)	This reflects incremental project costs and income subsequent to the Company’s $106.8 million investment in July 2014. Total Costs are net of $25 million of approved public financing grants that will be a reduction of costs.

(e)	The Sears lease has been terminated. The 4% yield represents an incremental return over Sears former annual rent. The yield would increase to 8% without including any offsetting rent impact from Sears.

(f)	This section includes potential developments or redevelopments that the Company is considering. The scope of these projects may change. There is no certainty that the Company will develop or redevelop any or all of these potential projects.

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Top Ten Tenants

The following retailers (including their subsidiaries) represent the 10 largest rent payers in the Centers based upon total rents in place as of December 31, 2017.


Tenant	Primary DBAs	Number of Locations in the Portfolio		% of Total Rents
L Brands, Inc.	Victoria’s Secret, Bath and Body Works, PINK		95		2.8	%
Forever 21, Inc.	Forever 21, XXI Forever		33		2.3	%
Foot Locker, Inc.	Champs Sports, Foot Locker, Kids Foot Locker, Lady Foot Locker, Foot Action, House of Hoops SIX:02 and others		94		2.1	%
H & M Hennes & Mauritz AB	H & M		23		1.9	%
Gap, Inc., The	Athleta, Banana Republic, Gap, Gap Kids, Old Navy and others		54		1.7	%
Signet Jewelers	Jared Jewelry, Kay Jewelers, Piercing Pagoda, Shaw’s Jewelers, Weisfield Jewelers, Zales		104		1.6	%
Dick’s Sporting Goods, Inc.	Dick’s Sporting Goods		15		1.5	%
American Eagle Outfitters, Inc.	American Eagle Outfitters, aerie		37		1.2	%
Sears Holdings Corporation	Sears		21		1.0	%
Golden Gate Capital	Payless ShoeSource, Eddie Bauer, California Pizza Kitchen, PacSun		71		1.0	%

The Macerich Company

Corporate Information

Stock Exchange Listing

New York Stock Exchange

Symbol: MAC

The following table shows high and low sales prices per share of common stock during each quarter in 2017, 2016 and 2015 and dividends per share of common stock declared and paid by quarter:


	Market Quotation per Share				Dividends
Quarter Ended:	High		Low		Declared and Paid
March 31, 2015	$	95.93	$	81.61	$	0.65
June 30, 2015	$	86.31	$	74.51	$	0.65
September 30, 2015	$	81.52	$	71.98	$	0.65
December 31, 2015	$	86.29	$	74.55	$	2.68	(a)
March 31, 2016	$	82.88	$	72.99	$	2.68	(b)
June 30, 2016	$	85.39	$	71.82	$	0.68
September 30, 2016	$	94.51	$	78.76	$	0.68
December 31, 2016	$	80.54	$	66.00	$	0.71
March 31, 2017	$	73.34	$	62.14	$	0.71
June 30, 2017	$	67.18	$	56.06	$	0.71
September 30, 2017	$	61.55	$	52.12	$	0.71
December 31, 2017	$	67.53	$	52.45	$	0.74

(a)	Includes a special dividend of $2.00 per common share paid on December 8, 2015.

(b)	Includes a special dividend of $2.00 per common share paid on January 6, 2016.

Dividend Reinvestment Plan

Stockholders may automatically reinvest their dividends in additional common stock of the Company through the Direct Investment Program, which also provides for purchase by voluntary cash contributions. For additional information, please contact Computershare Trust Company, N.A. at 800-567-0169.


Corporate Headquarters The Macerich Company 401 Wilshire Boulevard, Suite 700 Santa Monica, California 90401 310-394-6000 www.macerich.com		Transfer Agent Computershare P.O. Box 30170 College Station, TX 77842-3170 800-567-0169 www.computershare.com

Macerich Website

For an electronic version of our annual report, our SEC filings and documents relating to Corporate Governance, please visit www.macerich.com.

Investor Relations


Jean Wood Vice President, Investor Relations Phone: 424-229-3366 jean.wood@macerich.com		John Perry Senior Vice President, Investor Relations Phone: 424-229-3345 john.perry@macerich.com