SEC Filing | Macerich

THE MACERICH COMPANY

By: Scott W. Kingsmore

February 7, 2019

Date

/s/ Scott W. Kingsmore

Executive Vice President,

Chief Financial Officer

and Treasurer

View:

Download DOC

Download PDF

Download XLS

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 7, 2019

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 7, 2019 (the “Press Release”) announcing results of operations for the Company for the quarter ended December 31, 2018 and such Press Release is furnished as Exhibit 99.1 hereto.

On February 7, 2019, 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, 2018 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 7, 2019

99.2		Supplemental Financial Information for the three and twelve months ended December 31, 2018

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 7, 2019. The Macerich Company (NYSE: MAC) today announced results of operations for the quarter ended December 31, 2018, which included net income attributable to the Company of $11.7 million or $.08 per share-diluted for the quarter ended December 31, 2018 compared to net income attributable to the Company for the quarter ended December 31, 2017 of $32.8 million or $.23 per share-diluted. For the fourth quarter 2018, funds from operations (“FFO”)-diluted was $165.7 million or $1.09 per share-diluted compared to $155.6 million or $1.03 per share-diluted for the quarter ended December 31, 2017. A description and reconciliation of earnings per share (“EPS”)-diluted to FFO per share-diluted is included within the financial tables accompanying this press release.

Results and Highlights

•

Mall tenant annual sales per square foot for the portfolio increased by 10.0% to $726 for the year ended December 31, 2018 compared to $660 for the year ended December 31, 2017.

•

Re-leasing spreads for the year ended December 31, 2018 were up 11.1%.

•

Mall portfolio occupancy was 95.4% at December 31, 2018 compared to 95.0% at December 31, 2017.

•

Average rent per square foot increased to $59.09, up 3.7% from $56.97 at December 31, 2017.

•

Same center net operating income excluding lease termination revenue grew by 4.2% compared to the quarter ended December 31, 2017.

•

The Company’s joint venture in One Westside, formerly known as Westside Pavilion in Los Angeles, CA entered into a lease with Google, Inc. for the entirety of its 584,000 square foot Class A creative office campus.

•

The Company’s joint venture in Country Club Plaza in Kansas City entered into a lease with Nordstrom.

“It was a good quarter with strong occupancy levels, good tenant sales growth and improved same center earnings growth,” said the Company’s Chief Executive Officer, Tom O’Hern. “As we enter 2019, we have extensive development opportunities in front of us with many well-situated projects already underway or recently announced. Although some headwinds remain as we work through recent tenant bankruptcies that will impact 2019, generally the leasing environment continues to improve.”

Development/Redevelopment:

The Company continues its multi-dimensional redevelopment of Scottsdale Fashion Square. In September, Apple opened a spectacular flagship store within the former Barney’s location along Scottsdale Road. In January, Industrious, a leading co-working concept, opened in the balance of the former Barney’s space with strong opening occupancy. In addition, there will be an array of new high-end restaurants including Ocean 44, which opened in December to much acclaim, Nobu, Farmhouse, Toca Madera, Tocaya Organica and Zinque. These restaurant brands, along with a high-end fitness center, are components of an 80,000 square foot expansion that will elevate and enhance the shopper experience at this already iconic shopping destination. This high-end expansion fronts an entrance that leads into a new luxury wing, which continues to be anchored by Neiman Marcus and Dillard’s. The project will be completed in 2019, and project costs are expected to be in the range of $140 to $160 million (or $70 to $80 million at the Company’s pro rata share).

Redevelopment continues on Fashion District Philadelphia, a four-level retail hub in Center City spanning over 800,000 square feet across three city blocks in the heart of downtown Philadelphia, which benefits from immediate access to a mass transit hub within the concourse level of the property. Estimated project costs are expected to be in the range of $400 to $420 million (or $200 to $210 million at the Company’s pro rata share). We have signed leases or are in active lease negotiations with tenants for over 85% of the leasable area. Noteworthy commitments include Century 21, Burlington, H&M, Nike, Forever 21, AMC Theaters, Round One, City Winery, Ulta, Columbia Sportswear and Guess Factory. The grand opening is planned for September 2019.

In September 2018, the Company announced a 50/50 joint venture with Simon, to create Los Angeles Premium Outlets, a state-of-the-art Premium Outlet center. Macerich and Simon will co-develop and jointly lease Los Angeles’ newest outlet, designed to open with approximately 400,000 square feet, followed by an additional approximately 165,000 square feet in its second phase. Site work is currently being performed by the Carson Reclamation Authority for this uniquely situated, elevated, shopping destination fronting Interstate-405. The planned opening of the first phase of Los Angeles Premium Outlets is Fall 2021.

The Company’s joint venture in One Westside recently announced that it had entered into a lease with Google, Inc. for the entirety of a 584,000 square foot, Class A creative office campus in Los Angeles. One Westside recently shuttered most of its retail operations, and the redevelopment of this irreplaceable real estate will commence later in 2019. This project will transform the majority of the mall into a three level, indoor-outdoor creative office campus, with Google as its sole tenant. A portion of the property west of Westwood Boulevard consisting of approximately 96,000 square feet will continue to operate as primarily an entertainment and dining destination.

The Company’s joint venture in Country Club Plaza in Kansas City entered into a lease with Nordstrom to redevelop a block of the property into a two-level 116,000 square foot Nordstrom, which is planned to open in Spring 2021. Nordstrom will relocate from a competing property in the market, and significant leasing activity within the property has already been generated by the announcement earlier in 2018.

Financing Activity:

The Company closed on a $300 million, 12-year loan on Fashion Outlets of Chicago, with a fixed interest rate of 4.58%. The proceeds of this loan were used to refinance an existing $200 million floating rate loan, and to repay a portion of the Company’s revolving line of credit.

2019 Earnings Guidance:

The Company is providing its estimate of EPS-diluted and FFO per share-diluted guidance to reflect its current expectation for 2019. A reconciliation of estimated EPS-diluted to FFO per share-diluted follows:


		2019 range
EPS-diluted		$ .33 - $ .41
Plus: real estate depreciation and amortization		3.17 - 3.17

FFO per share-diluted		3.50 - 3.58
Plus: impact of adoption of ASC 842 (Leasing Costs)		.15 - .15

FFO per share-diluted, excluding impact of ASC 842		$ 3.65 - $3.73

The guidance assumes a same center net operating income growth rate in a range of 0.5% to 1.0%, excluding lease termination income. The guidance for 2019 is negatively impacted by expectations regarding interest rates, anchor closures, anticipated tenant bankruptcies and other factors, which will be discussed during the Company’s earnings call. 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 51 million square feet of real estate consisting primarily of interests in 47 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 West Coast, 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 2014-2018. For the fourth straight year in 2018 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 7, 2019 at 10:00 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, 2017, 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
	2018			2017			2018			2017
Revenues:
Minimum rents	$	144,310		$	150,591		$	575,856		$	594,030
Percentage rents		10,845			10,340			17,569			17,124
Tenant recoveries		60,578			69,038			263,477			283,295
Other income		19,751			15,335			59,969			55,819
Management Companies’ revenues		11,390			11,439			43,480			43,394

Total revenues		246,874			256,743			960,351			993,662

Expenses:
Shopping center and operating expenses		62,787			72,663			277,470			295,190
Management Companies’ operating expenses		22,719			23,342			103,534			100,121
REIT general and administrative expenses		5,746			7,032			24,160			28,240
Costs related to shareholder activism		—			—			19,369			—
Depreciation and amortization		86,828			85,968			327,436			335,431
Interest expense (a)		46,485			44,889			182,962			171,776

Total expenses		224,565			233,894			934,931			930,758

Equity in income of unconsolidated joint ventures		20,443			28,774			71,773			85,546
Co-venture expense (a)		—			(2,479	)		—			(13,629	)
Income tax benefit (expense)		1,805			(15,772	)		3,604			(15,594	)
(Loss) gain on sale or write down of assets, net		(31,311	)		5,212			(31,825	)		42,446

Net income		13,246			38,584			68,972			161,673
Less net income attributable to noncontrolling interests		1,497			5,833			8,952			15,543

Net income attributable to the Company	$	11,749		$	32,751		$	60,020		$	146,130

Weighted average number of shares outstanding—basic		141,208			140,952			141,142			141,877

Weighted average shares outstanding, assuming full conversion of OP Units (b)		151,581			151,180			151,502			152,293

Weighted average shares outstanding—Funds From Operations (“FFO”)—diluted (b)		151,581			151,213			151,504			152,329

Earnings per share (“EPS”)—basic	$	0.08		$	0.23		$	0.42		$	1.02

EPS—diluted	$	0.08		$	0.23		$	0.42		$	1.02

Dividend declared per share	$	0.75		$	0.74		$	2.97		$	2.87

FFO—basic (b) (c)	$	165,657		$	155,594		$	564,436		$	582,878

FFO—diluted (b) (c)	$	165,657		$	155,594		$	564,436		$	582,878

FFO—diluted, excluding costs related to shareholder activism (b) (c)	$	165,657		$	155,594		$	583,805		$	582,878

FFO per share—basic (b) (c)	$	1.09		$	1.03		$	3.73		$	3.83

FFO per share—diluted (b) (c)	$	1.09		$	1.03		$	3.73		$	3.83

FFO per share, excluding costs related to shareholder activism—diluted (b) (c)	$	1.09		$	1.03		$	3.85		$	3.83

THE MACERICH COMPANY

FINANCIAL HIGHLIGHTS

(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(a)

On January 1, 2018, in accordance with the adoption of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), the Company changed its accounting for its investment in the Chandler Fashion Center and Freehold Raceway Mall (“Chandler Freehold”) joint venture from a co-venture arrangement to a financing arrangement. As a result, the Company has included in interest expense (i) a credit of $5,946 and $15,225 to adjust for the reduction of the fair value of the financing arrangement obligation during the three and twelve months ended December 31, 2018, respectively, (ii) distributions of $2,502 and $9,079 to its partner representing the partner’s share of net income for the three and twelve months ended December 31, 2018, respectively, and (iii) distributions of $1,573 and $6,376 to its partner in excess of the partner’s share of net income for the three and twelve months ended December 31, 2018, respectively.

(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 sales of 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. As a result of changes in accounting standards effective January 1, 2018 (ASC 606), the Company began treating its joint venture in Chandler Freehold as a financing arrangement for accounting purposes. In connection with this treatment, the Company recognizes financing expense on (i) the changes in fair value of the financing arrangement, (ii) any payments to such joint venture partner equal to their pro rata share of net income and (iii) any payments to such joint venture partner less than or in excess of their pro rata share of net income. The Company excludes from its definition of FFO the noted expenses related to the changes in fair value and for the payments to such joint venture partner less than or in excess of their pro rata share of net income. Although the Nareit definition of FFO predates this guidance for accounting for financing arrangements, the Company believes that excluding the noted expenses resulting from the financing arrangement is consistent with the key objective of FFO as a performance measure and it allows the Company’s current FFO to be comparable with the Company’s FFO from prior quarters. Adjustments for unconsolidated joint ventures are calculated to reflect FFO on the same basis. The Company also presents FFO excluding costs related to shareholder activism.

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”). In addition, the Company believes that FFO excluding non-routine costs related to shareholder activism provides useful supplemental information regarding the Company’s performance as it shows a more meaningful and consistent comparison of the Company’s operating performance and allows investors to more easily compare the Company’s results. 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, excluding costs related to shareholder activism (c):


	For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
	Unaudited						Unaudited
	2018			2017			2018			2017
Net income attributable to the Company	$	11,749		$	32,751		$	60,020		$	146,130
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		863			2,378			4,407			10,729
Loss (gain) on sale or write down of consolidated assets, net		31,311			(5,212	)		31,825			(42,446	)
Add: gain on undepreciated asset sales from consolidated assets		1,469			837			4,884			1,564
Loss on write-down of consolidated non-real estate assets		—			—			—			(10,138	)
Noncontrolling interests share of gain on sale or write-down of consolidated joint ventures		—			1,209			580			1,209
Loss (gain) on sale or write down of assets from unconsolidated joint ventures (pro rata), net		21			(5,802	)		(2,993	)		(14,783	)
Add: gain on sales or write down of undepreciated assets from unconsolidated joint ventures (pro rata), net		293			5,984			666			6,644
Depreciation and amortization on consolidated assets		86,828			85,968			327,436			335,431
Less depreciation and amortization allocable to noncontrolling interests in consolidated joint ventures		(3,847	)		(3,801	)		(14,793	)		(15,126	)
Depreciation and amortization on unconsolidated joint ventures (pro rata)		44,922			44,566			174,952			177,274
Less: depreciation on personal property		(3,579	)		(3,284	)		(13,699	)		(13,610	)
Financing expense in connection with the adoption of ASC 606 (Chandler Freehold)		(4,373	)		—			(8,849	)		—

FFO attributable to common stockholders and unit holders—basic and diluted		165,657			155,594			564,436			582,878
Costs related to shareholder activism		—			—			19,369			—

FFO attributable to common stockholders and unit holders, excluding costs related to shareholder activism	$	165,657		$	155,594		$	583,805		$	582,878

Reconciliation of EPS to FFO per share—diluted, excluding costs related to shareholder activism (c):


	For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
	Unaudited						Unaudited
	2018			2017			2018			2017
EPS—diluted	$	0.08		$	0.23		$	0.42		$	1.02
Per share impact of depreciation and amortization of real estate		0.82			0.82			3.14			3.19
Per share impact of loss (gain) on sale or write down of assets, net		0.22			(0.02	)		0.23			(0.38	)
Per share impact of financing expense in connection with the adoption of ASC 606 (Chandler Freehold)		(0.03	)		—			(0.06	)		—

FFO per share—diluted	$	1.09		$	1.03		$	3.73		$	3.83
Per share impact of costs related to shareholder activism		—			—			0.12			—

FFO per share—diluted, excluding costs related to shareholder activism	$	1.09		$	1.03		$	3.85		$	3.83

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
	2018			2017			2018			2017
Net income attributable to the Company	$	11,749		$	32,751		$	60,020		$	146,130
Interest expense—consolidated assets		46,485			44,889			182,962			171,776
Interest expense—unconsolidated joint ventures (pro rata)		27,357			25,252			108,914			101,487
Depreciation and amortization—consolidated assets		86,828			85,968			327,436			335,431
Depreciation and amortization—unconsolidated joint ventures (pro rata)		44,922			44,566			174,952			177,274
Noncontrolling interests in the OP		863			2,378			4,407			10,729
Less: Interest expense and depreciation and amortization allocable to noncontrolling interests in consolidated joint ventures		(9,460	)		(6,792	)		(36,388	)		(25,007	)
Loss (gain) on sale or write down of assets, net—consolidated assets		31,311			(5,212	)		31,825			(42,446	)
Loss (gain) on sale or write down of assets, net—unconsolidated joint ventures (pro rata)		21			(5,802	)		(2,993	)		(14,783	)
Add: Noncontrolling interests share of gain on sale or write down of consolidated joint ventures, net		—			1,209			580			1,209
Income tax (benefit) expense		(1,805	)		15,772			(3,604	)		15,594
Distributions on preferred units		100			98			398			387

Adjusted EBITDA (d)	$	238,371		$	235,077		$	848,509		$	877,781

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
	2018			2017			2018			2017
Adjusted EBITDA (d)	$	238,371		$	235,077		$	848,509		$	877,781
REIT general and administrative expenses		5,746			7,032			24,160			28,240
Costs related to shareholder activism		—			—			19,369			—
Management Companies’ revenues		(11,390	)		(11,439	)		(43,480	)		(43,394	)
Management Companies’ operating expenses		22,719			23,342			103,534			100,121
Straight-line and above/below market adjustments		(6,837	)		(4,545	)		(32,068	)		(29,531	)

NOI—All Centers		248,609			249,467			920,024			933,217
NOI of non-Same Centers		(10,678	)		(17,033	)		(32,231	)		(55,326	)

NOI—Same Centers (e)		237,931			232,434			887,793			877,891
Lease termination income of Same Centers		(3,074	)		(7,032	)		(12,955	)		(21,898	)

NOI—Same Centers, excluding lease termination income (e)	$	234,857		$	225,402		$	874,838		$	855,993

(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, 2018

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
2019 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
Corporate Information		31

This Supplemental Financial Information should be read in connection with the Company’s fourth quarter 2018 earnings announcement (included as Exhibit 99.1 of the Company’s Current Report on 8-K, event date February 7, 2019) 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 shopping centers located in the United States in many of the country’s most attractive, densely populated markets with significant presence on the West Coast, Arizona, Chicago and the Metro New York to Washington, DC corridor.

As of December 31, 2018, the Operating Partnership owned or had an ownership interest in 51 million square feet of gross leasable area (“GLA”) consisting primarily of interests in 47 regional shopping centers and five community/power shopping centers. These 52 centers (which include any related office space) are referred to hereinafter as the “Centers”, unless the context requires otherwise.

A recognized leader in sustainability, Macerich has earned Nareit’s prestigious “Leader in the Light” award every year from 2014-2018. For the fourth straight year in 2018 Macerich achieved the #1 GRESB ranking in the North American Retail Sector, among many other environmental accomplishments.

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”).

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.

Upon adoption of ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), on January 1, 2018, the Company changed its accounting for its investment in the Chandler Fashion Center and Freehold Raceway Mall (“Chandler Freehold”) joint venture from a co-venture arrangement to a financing arrangement. Accordingly, the Company replaced its $31.1 million co-venture asset with a $393.7 million financing arrangement liability on its consolidated balance sheets and recorded a charge of $424.8 million to equity as a cumulative effect adjustment. Under ASC 606, any subsequent changes in fair value of the financing arrangement liability are recognized as financing expense in the Company’s consolidated statements of operations. During the three and twelve months ended December 31, 2018, the Company has included in interest expense ($1.9) million and $0.2 million, respectively in connection with the financing arrangement that consists of i) a credit of $5.9 million and $15.2 million to adjust for the reduction of fair value of the financing arrangement obligation during the three and twelve months ended December 31, 2018, respectively, ii) distributions of $2.5 million and $9.1 million to its partner representing the partner’s share of net income for the three and twelve months ended December 31, 2018, respectively, and iii) distributions of $1.6 million and $6.4 million to its partner in excess of the partner’s share of net income for the three and twelve months ended December 31, 2018, respectively.

The Company presents certain measures in this Exhibit on a pro rata basis which represents (i) the measure on a consolidated basis, minus the 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, 2017, 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
	12/31/2018			12/31/2017			12/31/2016
	dollars in thousands, except per share data
Closing common stock price per share	$	43.28		$	65.68		$	70.84
52 week high	$	69.73		$	73.34		$	94.51
52 week low	$	40.90		$	52.12		$	66.00
Shares outstanding at end of period
Class A non-participating convertible preferred units		90,619			90,619			90,619
Common shares and partnership units		151,655,147			151,253,557			154,567,331

Total common and equivalent shares/units outstanding		151,745,766			151,344,176			154,657,950

Portfolio capitalization data
Total portfolio debt, including joint ventures at pro rata	$	7,850,669		$	7,692,719		$	7,548,481
Equity market capitalization		6,567,557			9,940,285			10,955,969

Total market capitalization	$	14,418,226		$	17,633,004		$	18,504,450

Debt as a percentage of total market capitalization		54.5	%		43.6	%		40.8	%

Portfolio Capitalization at December 31, 2018

LOGO

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 December 31, 2017		10,259,572			140,993,985		90,619		151,344,176
Conversion of partnership units to cash		(1,015	)		—		—		(1,015	)
Conversion of partnership units to common shares		(1,000	)		1,000		—		—
Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans		99,407			109,602		—		209,009

Balance as of March 31, 2018		10,356,964			141,104,587		90,619		151,552,170
Conversion of partnership units to cash		(1,008	)		—		—		(1,008	)
Conversion of partnership units to common shares		(53,704	)		53,704		—		—
Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans		89,637			26,044		—		115,681

Balance as of June 30, 2018		10,391,889			141,184,335		90,619		151,666,843
Conversion of partnership units to cash		(10,234	)		—		—		(10,234	)
Conversion of partnership units to common shares		(12,007	)		12,007		—		—
Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans		—			3,518		—		3,518

Balance as of September 30, 2018		10,369,648			141,199,860		90,619		151,660,127
Conversion of partnership units to cash		(795	)		—		—		(795	)
Conversion of partnership units to common shares		—			—		—		—
Issuance of stock/partnership units from restricted stock issuance or other share or unit-based plans		64,582			21,852		—		86,434

Balance as of December 31, 2018		10,433,435			141,221,712		90,619		151,745,766

The Macerich Company

Consolidated Statements of Operations (Unaudited)

(Dollars in thousands)


	For the Three Months Ended December 31, 2018			For the Twelve Months Ended December 31, 2018
Revenues:
Minimum rents	$	144,310		$	575,856
Percentage rents		10,845			17,569
Tenant recoveries		60,578			263,477
Other income		19,751			59,969
Management Companies’ revenues		11,390			43,480

Total revenues		246,874			960,351

Expenses:
Shopping center and operating expenses		62,787			277,470
Management Companies’ operating expenses		22,719			103,534
REIT general and administrative expenses		5,746			24,160
Costs related to shareholder activism		—			19,369
Depreciation and amortization		86,828			327,436
Interest expense		46,485			182,962

Total expenses		224,565			934,931
Equity in income of unconsolidated joint ventures		20,443			71,773
Income tax benefit		1,805			3,604
Loss on sale or write down of assets, net		(31,311	)		(31,825	)

Net income		13,246			68,972
Less net income attributable to noncontrolling interests		1,497			8,952

Net income attributable to the Company	$	11,749		$	60,020

The Macerich Company

Consolidated Balance Sheet (Unaudited)

As of December 31, 2018

(Dollars in thousands)


ASSETS:
Property, net (a)	$	6,785,776
Cash and cash equivalents		102,711
Restricted cash		46,590
Tenant and other receivables, net		123,492
Deferred charges and other assets, net		390,403
Due from affiliates		85,181
Investments in unconsolidated joint ventures		1,492,655

Total assets	$	9,026,808


LIABILITIES AND EQUITY:
Mortgage notes payable	$	4,073,916
Bank and other notes payable		908,544
Accounts payable and accrued expenses		59,392
Other accrued liabilities		303,051
Distributions in excess of investments in unconsolidated joint ventures		114,988
Financing arrangement obligation		378,485

Total liabilities		5,838,376

Commitments and contingencies
Equity:
Stockholders’ equity:
Common stock		1,412
Additional paid-in capital		4,567,643
Accumulated deficit		(1,614,357	)
Accumulated other comprehensive loss		(4,466	)

Total stockholders’ equity		2,950,232
Noncontrolling interests		238,200

Total equity		3,188,432

Total liabilities and equity	$	9,026,808

(a)	Includes construction in progress of $199,326.

The Macerich Company

Non-GAAP Pro Rata Financial Information (Unaudited)

(Dollars in thousands)


	For the Three Months Ended December 31, 2018						For the Twelve Months Ended December 31, 2018
	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	$	(8,586	)	$	84,251		$	(33,903	)	$	330,733
Percentage rents		(336	)		5,348			(487	)		10,111
Tenant recoveries		(4,149	)		30,958			(16,844	)		123,179
Other income		(716	)		9,043			(2,268	)		31,551

Total revenues		(13,787	)		129,600			(53,502	)		495,574

Expenses:
Shopping center and operating expenses		(3,852	)		37,016			(15,365	)		145,144
Depreciation and amortization		(3,847	)		44,922			(14,793	)		174,952
Interest expense		(5,613	)		27,357			(21,595	)		108,914

Total expenses		(13,312	)		109,295			(51,753	)		429,010
Equity in income of unconsolidated joint ventures		(159	)		(20,284	)		(2,216	)		(69,557	)
(Loss) gain on sale or write down of assets, net		—			(21	)		(580	)		2,993

Net income		(634	)		—			(4,545	)		—
Less net income attributable to noncontrolling interests		(634	)		—			(4,545	)		—

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, 2018
	Noncontrolling Interests of Consolidated Joint Ventures (a)			Company’s Share of Unconsolidated Joint Ventures
ASSETS:
Property, net (b)	$	(348,771	)	$	4,440,438
Cash and cash equivalents		(11,533	)		87,777
Restricted cash		—			10,026
Tenant and other receivables, net		(5,425	)		62,474
Deferred charges and other assets, net		(3,745	)		168,824
Due from affiliates		(457	)		(2,721	)
Investments in unconsolidated joint ventures, at equity		—			(1,492,655	)

Total assets	$	(369,931	)	$	3,274,163


LIABILITIES AND EQUITY:
Mortgage notes payable	$	(316,865	)	$	3,126,919
Bank and other notes payable		(1,845	)		60,000
Accounts payable and accrued expenses		(2,218	)		50,614
Other accrued liabilities		(9,130	)		151,618
Distributions in excess of investments in unconsolidated joint ventures		—			(114,988	)
Financing arrangement obligation		(378,485	)		—

Total liabilities		(708,543	)		3,274,163

Equity:
Stockholders’ equity		358,839			—
Noncontrolling interests		(20,227	)		—

Total equity		338,612			—

Total liabilities and equity	$	(369,931	)	$	3,274,163

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

(b)	This includes $12,470 of construction in progress relating to the Company’s partners’ share from consolidated joint ventures and $281,509 of construction in progress relating to the Company’s share from unconsolidated joint ventures.

The Macerich Company

2019 Guidance Range (Unaudited)

Management is providing its estimate of diluted EPS and FFO per share guidance for 2019. A reconciliation of estimated EPS to FFO per share-diluted follows:


	Year 2019 Guidance
Earnings per share—diluted		$0.33 - $0.41
Plus: real estate depreciation and amortization		$3.17 - $3.17
Impact of financing expense in connection with the adoption of ASC 606 (Chandler Freehold)		$0.00 - $0.00

FFO per share—diluted		$3.50 - $3.58
Plus: Impact of adoption of ASC 842(c)		$0.15 - $0.15

FFO per share—diluted, excluding impact of ASC 842		$3.65 - $3.73


*Underlying Assumptions to 2019 Guidance*
Cash Same Center Net Operating Income (“NOI”) Growth(a)
Excluding lease termination income		0.5% - 1.0%



	Year 2019 ($ millions)(b)		Year 2019 FFO / Share Impact
Lease termination income		$12	$0.08
Capitalized interest		$30	$0.20
Bad debt expense		($5)	($0.03)
Dilutive impact on 2019 of assets sold in 2018		($4)	($0.03)
Straight-line rental income		$17	$0.11
Amortization of acquired above and below-market leases (net-revenue)		$10	$0.07
Leasing Expenses(c)		$28	$0.18
Interest Expense(d)		$298

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

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

(c)

In conjunction with the adoption of the new lease accounting standard, ASC 842, Leases (“ASC 842”), the Company estimates it will incur uncapitalized leasing expenses in 2019 of approximately $28 million. The Company incurred approximately $5 million of uncapitalized leasing expenses in 2018 prior to adoption of ASC 842. Therefore, the incremental impact of adopting ASC 842 is estimated at approximately $23 million.

(d)

This does not include financing expense in accordance with ASC 606 (Chandler Freehold) totaling $7 million. This amount represents the Company’s joint venture partner’s share of net income from Chandler Freehold, a consolidated joint venture, which was previously recognized as Co-venture Expense in 2017 and prior years. Including this $7 million, interest expense would be $305 million.

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Supplemental FFO Information(a)


					As of December 31,
					2018		2017
					dollars in millions
Straight-line rent receivable					$	113.8	$	97.2

	For the Three Months Ended December 31,				For the Twelve Months Ended December 31,
	2018		2017		2018		2017
	dollars in millions
Lease termination income	$	3.1	$	7.5	$	13.1	$	22.5
Straight-line rental income	$	4.4	$	3.3	$	18.6	$	16.7
Business development and parking income (b)	$	19.4	$	17.4	$	62.2	$	63.0
Gain on sales or write down of undepreciated assets	$	1.8	$	6.8	$	5.6	$	8.2
Amortization of acquired above and below-market leases (net revenue)	$	2.5	$	1.2	$	13.5	$	12.8
Amortization of debt premiums	$	0.2	$	0.6	$	0.9	$	3.3
Interest capitalized	$	6.5	$	5.7	$	27.4	$	19.8

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

(b)	Included in other income.

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Capital Expenditures(a)


	Year Ended 12/31/18		Year Ended 12/31/17		Year Ended 12/31/16
	Year Ended 12/31/18		Year Ended 12/31/17		Year Ended 12/31/16
	dollars in millions
Consolidated Centers
Acquisitions of property and equipment	$	53.4	$	38.2	$	56.8
Development, redevelopment, expansions and renovations of Centers		173.3		152.1		183.2
Tenant allowances		12.6		11.5		19.2
Deferred leasing charges		17.3		26.5		24.8

Total	$	256.6	$	228.3	$	284.0

Unconsolidated Joint Venture Centers
Acquisitions of property and equipment	$	15.7	$	16.0	$	349.8
Development, redevelopment, expansions and renovations of Centers		145.9		121.8		101.1
Tenant allowances		8.7		6.8		11.3
Deferred leasing charges		10.9		6.2		7.1

Total	$	181.2	$	150.8	$	469.3

(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
12/31/2018	$	612	$	882	$	726
12/31/2017	$	584	$	765	$	660
12/31/2016(b)	$	573	$	710	$	630

(a)

Sales are based on reports by retailers leasing mall and freestanding stores for the trailing 12 months for tenants that 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.

LOGO

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 12/31/2018 *(c)*			% of Portfolio 2019 Forecast Pro Rata Real Estate NOI *(d)*
Properties	12/31/2018 *(a)*		12/31/2017 *(a)*		12/31/2018 *(b)*			12/31/2017 *(b)*
Group 1: Top 10
Corte Madera, Village at	$	2,166	$	1,532		94.4	%		97.4	%
Broadway Plaza	$	1,752	$	1,326		99.4	%		97.6	%
Queens Center	$	1,506	$	1,461		99.7	%		99.5	%
Washington Square	$	1,261	$	1,119		98.8	%		95.2	%
Scottsdale Fashion Square	$	1,159	$	765		92.1	%		91.3	%
Kierland Commons	$	1,137	$	678		97.8	%		96.2	%
Los Cerritos Center	$	1,003	$	947		96.5	%		96.3	%
Tysons Corner Center	$	986	$	980		96.8	%		96.6	%
North Bridge, The Shops at	$	881	$	875		98.2	%		98.8	%
Tucson La Encantada	$	856	$	785		97.0	%		94.2	%

Total Top 10:	$	1,212	$	1,015		96.7	%		95.9	%		11.8	%		32.2	%

Group 2: Top 11-20
Fashion Outlets of Chicago	$	839	$	782		98.0	%		95.9	%
Santa Monica Place	$	808	$	808		93.4	%		89.2	%
Arrowhead Towne Center	$	808	$	770		97.2	%		95.5	%
Fresno Fashion Fair	$	750	$	735		95.2	%		94.3	%
Chandler Fashion Center	$	715	$	674		97.6	%		94.7	%
Twenty Ninth Street	$	712	$	647		97.1	%		97.3	%
Vintage Faire Mall	$	709	$	685		97.3	%		98.1	%
Kings Plaza Shopping Center	$	701	$	686		97.9	%		96.6	%
Biltmore Fashion Park	$	670	$	913		91.0	%		95.6	%
Country Club Plaza		n/a		n/a		n/a			n/a

Total Top 11-20:	$	748	$	721		95.3	%		94.9	%		12.3	%		25.6	%

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 12/31/2018 *(c)*			% of Portfolio 2019 Forecast Pro Rata Real Estate NOI *(d)*
Properties	12/31/2018 *(a)*		12/31/2017 *(a)*		12/31/2018 *(b)*			12/31/2017 *(b)*
Group 3: Top 21-30
Stonewood Center	$	665	$	638		91.9	%		93.1	%
Oaks, The	$	654	$	571		88.9	%		93.0	%
Freehold Raceway Mall	$	639	$	622		97.8	%		97.0	%
Green Acres Mall	$	638	$	615		98.0	%		97.9	%
Danbury Fair Mall	$	627	$	614		96.1	%		92.1	%
SanTan Village Regional Center	$	588	$	548		98.1	%		97.6	%
FlatIron Crossing	$	579	$	558		97.2	%		96.7	%
Victor Valley, Mall of	$	565	$	534		98.1	%		97.9	%
Inland Center	$	541	$	542		97.0	%		95.3	%
Deptford Mall	$	525	$	526		97.4	%		98.0	%

Total Top 21-30:	$	608	$	581		96.2	%		96.0	%		13.7	%		25.1	%

Group 4: Top 31-40
Lakewood Center	$	491	$	479		97.0	%		97.4	%
La Cumbre Plaza	$	488	$	486		80.7	%		88.0	%
South Plains Mall	$	474	$	433		92.0	%		91.5	%
West Acres	$	467	$	477		97.2	%		96.5	%
Valley River Center	$	453	$	451		95.7	%		96.9	%
Pacific View	$	450	$	427		91.3	%		95.1	%
Superstition Springs Center	$	366	$	376		96.8	%		89.5	%
Eastland Mall	$	360	$	360		94.9	%		96.7	%
Desert Sky Mall	$	346	$	321		99.1	%		98.5	%
Fashion Outlets of Niagara Falls USA	$	340	$	351		93.9	%		90.2	%

Total Top 31-40:	$	420	$	415		94.7	%		94.5	%		13.4	%		13.1	%

Total Top 40:	$	753	$	684		95.7	%		95.4	%		12.5	%		96.0	%

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 12/31/2018
(c)

% of Portfolio
2019 Forecast
Pro Rata
Real Estate NOI
(d)

Properties

12/31/2018
(a)

12/31/2017
(a)

12/31/2018
(b)

12/31/2017
(b)

Group 5: 41-45

NorthPark Mall

SouthPark Mall

Towne Mall

Valley Mall

Wilton Mall

Total 41-45:

286

281

90.8

89.6

11.0

Centers under Redevelopment

Fashion District Philadelphia (e) (f)

Paradise Valley Mall (e)

47 REGIONAL SHOPPING CENTERS (g)

726

660

95.4

95.0

12.4

98.3

Community / Power Centers and various other assets

1.7

TOTAL ALL PROPERTIES

12.4

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 that 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, 2018.

(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 2019 Forecast Pro Rata Real Estate NOI is based on the guidance range provided on February 7, 2019, 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 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, 2018 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
12/31/2018		95.2	%		95.6	%		95.4	%
12/31/2017		94.4	%		95.6	%		95.0	%
12/31/2016(b)		94.8	%		96.2	%		95.4	%

(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.

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
12/31/2018	$	56.82	$	54.00	$	49.07
12/31/2017	$	55.08	$	57.36	$	49.61
12/31/2016(e)	$	53.51	$	53.48	$	44.77
Unconsolidated Joint Venture Centers
12/31/2018	$	63.84	$	66.95	$	59.49
12/31/2017	$	60.99	$	63.50	$	55.50
12/31/2016	$	57.90	$	64.78	$	57.29
All Regional Shopping Centers
12/31/2018	$	59.09	$	57.55	$	51.80
12/31/2017	$	56.97	$	59.20	$	51.39
12/31/2016(e)	$	54.87	$	56.57	$	48.08

(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.

The Macerich Company

Supplemental Financial and Operating Information (unaudited)

Cost of Occupancy


	For Years Ended December 31,
	2018		2017		2016(a)
Consolidated Centers
Minimum rents		9.3%		9.5%		9.4%
Percentage rents		0.3%		0.3%		0.4%
Expense recoveries(b)		3.9%		4.2%		4.3%

Total		13.5%		14.0%		14.1%


	For Years Ended December 31,
	2018		2017		2016
Unconsolidated Joint Venture Centers
Minimum rents		7.8%		8.6%		8.6%
Percentage rents		0.3%		0.3%		0.3%
Expense recoveries(b)		3.4%		3.8%		3.9%

Total		11.5%		12.7%		12.8%


	For Years Ended December 31,
	2018		2017		2016(a)
All Centers
Minimum rents		8.5%		9.0%		9.0%
Percentage rents		0.3%		0.3%		0.3%
Expense recoveries(b)		3.6%		4.0%		4.1%

Total		12.4%		13.3%		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)	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 2019 Forecast Real Estate Pro Rata NOI(a)
California		27.5	%
New York		22.9	%
Arizona		15.9	%
Colorado, Illinois & Missouri		9.3	%
Pennsylvania & Virginia		9.1	%
New Jersey & Connecticut		7.3	%
Oregon		4.1	%
Other(b)		3.9	%

Total		100.0	%

(a)

The percentage of Portfolio 2019 Forecast Pro Rata Real Estate NOI is based on guidance provided on February 7, 2019, 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, 2018

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		746,000
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		1,672,000
8	100%	Fresno Fashion Fair Fresno, California		1970/1996		2006		992,000
9	100%	Green Acres Mall(c) Valley Stream, New York		1956/2013		2016		2,081,000
10	100%	Inland Center San Bernardino, California		1966/2004		2016		870,000
11	100%	Kings Plaza Shopping Center(c) Brooklyn, New York		1971/2012		2018		1,138,000
12	100%	La Cumbre Plaza(c) Santa Barbara, California		1967/2004		1989		492,000
13	100%	NorthPark Mall Davenport, Iowa		1973/1998		2001		934,000
14	100%	Oaks, The Thousand Oaks, California		1978/2002		2009		1,199,000
15	100%	Pacific View Ventura, California		1965/1996		2001		1,061,000
16	100%	Queens Center(c) Queens, New York		1973/1995		2004		964,000
17	100%	Santa Monica Place Santa Monica, California		1980/1999		2015		526,000
18	84.9%	SanTan Village Regional Center Gilbert, Arizona		2007/—		2018		1,119,000
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		919,000
22	100%	Towne Mall Elizabethtown, Kentucky		1985/2005		1989		350,000

The Macerich Company

Property Listing

December 31, 2018


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		246,000
24	100%	Valley Mall Harrisonburg, Virginia		1978/1998	1992		506,000
25	100%	Valley River Center Eugene, Oregon		1969/2006	2007		869,000
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					25,768,000

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		887,000
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		1,003,000
34	51%	Deptford Mall Deptford, New Jersey		1975/2006	1990		1,040,000
35	51%	FlatIron Crossing Broomfield, Colorado		2000/2002	2009		1,428,000
36	50%	Kierland Commons Scottsdale, Arizona		1999/2005	2003		437,000
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	—		669,000
40	50%	Scottsdale Fashion Square Scottsdale, Arizona		1961/2002	2018		1,845,000
41	60%	South Plains Mall Lubbock, Texas		1972/1998	2017		1,135,000
42	51%	Twenty Ninth Street(c) Boulder, Colorado		1963/1979	2007		845,000
43	50%	Tysons Corner Center Tysons Corner, Virginia		1968/2005	2014		1,973,000
44	60%	Washington Square Portland, Oregon		1974/1999	2005		1,446,000
45	19%	West Acres Fargo, North Dakota		1972/1986	2001		678,000

		Total Unconsolidated Joint Venture Centers					18,936,000

The Macerich Company

Property Listing

December 31, 2018


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		1,202,000

		Total Regional Shopping Centers						46,756,000

COMMUNITY / POWER CENTERS:
1	50%	Atlas Park, The Shops at(d) Queens, New York		2006/2011		2013		370,000
2	50%	Boulevard Shops(d) Chandler, Arizona		2001/2002		2004		185,000
3	100%	Southridge Center(e) Des Moines, Iowa		1975/1998		2013		848,000
4	100%	Superstition Springs Power Center(e) Mesa, Arizona		1990/2002		—		206,000
5	100%	The Marketplace at Flagstaff(c)(e) Flagstaff, Arizona		2007/—		—		268,000

		Total Community / Power Centers						1,877,000

OTHER ASSETS:
	100%	Various(e)(f)						427,000
	86.5%	Estrella Falls(e) Goodyear, Arizona						79,000
	50%	Scottsdale Fashion Square-Office(d) Scottsdale, Arizona						123,000
	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

OTHER ASSETS UNDER REDEVELOPMENT:
	25%	One Westside(d)(g) Los Angeles, California						680,000

		Total Other Assets						2,812,000

		Grand Total at December 31, 2018						51,445,000

(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, 2018.

(c)

Portions of the land on which the Center is situated are subject to one or more long-term ground leases. With respect to 41 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.

The Macerich Company

Property Listing

December 31, 2018

(d)	Included in Unconsolidated Joint Venture Centers.

(e)	Included in Consolidated Centers.

(f)

The Company owns an office building and six stores located at shopping centers not owned by the Company. Of the six stores, one is leased to Kohl’s, three are vacant, and two have been leased for non-Anchor uses. With respect to the office building and three of the six 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.

(g)

Plans and entitlements are underway to convert former Regional Shopping Center Westside Pavilion, which closed in January 2019, into an approximately 584,000 square foot Class A creative office campus called One Westside leased solely to Google, while maintaining approximately 96,000 square feet of adjacent entertainment and retail space at 10850 Pico Boulevard.

The Macerich Company

Joint Venture List as of December 31, 2018

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 financing arrangements. The percentages shown are the effective legal ownership and economic ownership interests of the Company as of December 31, 2018.


Properties	Legal Ownership(a)			Economic Ownership(b)			Joint Venture	Total GLA(c)
Arrowhead Towne Center(d)		60	%		60	%	New River Associates LLC		1,197,000
Atlas Park, The Shops at		50	%		50	%	WMAP, L.L.C.		370,000
Biltmore Fashion Park		50	%		50	%	Biltmore Shopping Center Partners LLC		517,000
Boulevard Shops		50	%		50	%	Propcor II Associates, LLC		185,000
Broadway Plaza(e)		50	%		50	%	Macerich HHF Broadway Plaza LLC		887,000
Chandler Fashion Center(d)(f)		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		1,003,000
Deptford Mall(d)		51	%		51	%	Macerich HHF Centers LLC		1,040,000
Estrella Falls		86.5	%		86.5	%	Westcor Goodyear RSC LLC		79,000
Fashion District Philadelphia		50	%		50	%	Various Entities		850,000
FlatIron Crossing		51	%		51	%	Macerich HHF Centers LLC		1,428,000
Freehold Raceway Mall(d)(f)		50.1	%		50.1	%	Freehold Chandler Holdings LP		1,672,000
Hyatt Regency Tysons Corner Center		50	%		50	%	Tysons Corner Hotel I LLC		290,000
Kierland Commons		50	%		50	%	Kierland Commons Investment LLC		437,000
Lakewood Center		60	%		60	%	Pacific Premier Retail LLC		2,070,000
Los Angeles Premium Outlets		50	%		50	%	CAM-CARSON LLC		—
Los Cerritos Center(d)		60	%		60	%	Pacific Premier Retail LLC		1,305,000
North Bridge, The Shops at		50	%		50	%	North Bridge Chicago LLC		669,000
SanTan Village Regional Center		84.9	%		84.9	%	Westcor SanTan Village LLC		1,119,000
Scottsdale Fashion Square		50	%		50	%	Scottsdale Fashion Square Partnership		1,845,000
Scottsdale Fashion Square-Office		50	%		50	%	Scottsdale Fashion Square Partnership		123,000
Macerich Seritage Portfolio(g)		50	%		50	%	MS Portfolio LLC		1,550,000
South Plains Mall(d)		60	%		60	%	Pacific Premier Retail LLC		1,135,000
Twenty Ninth Street		51	%		51	%	Macerich HHF Centers LLC		845,000
Tysons Corner Center		50	%		50	%	Tysons Corner LLC		1,973,000
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(d)		60	%		60	%	Pacific Premier Retail LLC		1,446,000
West Acres		19	%		19	%	West Acres Development, LLP		678,000
One Westside(h)		25	%		25	%	HPP-MAC WSP, LLC		680,000

(a)

This column reflects the Company’s legal ownership in the listed properties as of December 31, 2018. 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 as of December 31, 2018

(b)

Economic ownership represents the allocation of cash flow to the Company as of December 31, 2018, 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, 2018.

(d)

These centers have a Sears store which is owned by MS Portfolio LLC, see footnote (g) below. The GLA of the Sears store at the seven centers indicated with footnote (d) in the table above is included in Total GLA at the center level. The GLA for the Sears store at these seven centers plus the GLA of the Sears store at two wholly owned centers, Danbury Fair Mall and Vintage Faire Mall, are also aggregated into the 1,550,000 square feet in the MS Portfolio LLC above.

(e)	In October 2018, the Company’s joint venture partner in Broadway Plaza sold its 50% interest to a third party investor. Thereafter, the joint venture restated its governing documents and changed its name to Macerich HHF Broadway Plaza LLC.

(f)

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.

(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.

(h)

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

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


	As of December 31, 2018
	Fixed Rate			Floating Rate			Total
	(Dollars in thousands)
Mortgage notes payable	$	3,449,219		$	624,697		$	4,073,916
Bank and other notes payable		403,690			504,854			908,544

Total debt per Consolidated Balance Sheet		3,852,909			1,129,551			4,982,460
Adjustments:
Less: Noncontrolling interests or financing arrangement share of debt from consolidated joint ventures		(318,710	)		—			(318,710	)

Adjusted Consolidated Debt		3,534,199			1,129,551			4,663,750
Add: Company's share of debt from unconsolidated joint ventures		2,967,283			219,636			3,186,919

Total Company's Pro Rata Share of Debt	$	6,501,482		$	1,349,187		$	7,850,669

Weighted average interest rate		3.88	%		4.16	%		3.93	%
Weighted average maturity (years)								5.06

(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, 2018
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	%	$	103,214	$	—	$	103,214
Chandler Fashion Center (c)		07/01/19		3.77	%		100,186		—		100,186
Kings Plaza Shopping Center		12/03/19		3.67	%		437,120		—		437,120
Danbury Fair Mall		10/01/20		5.53	%		202,158		—		202,158
Fashion Outlets of Niagara Falls USA		10/06/20		4.89	%		109,651		—		109,651
Green Acres Mall		02/03/21		3.61	%		284,686		—		284,686
Prasada (d)		05/30/21		5.25	%		1,845		—		1,845
The Macerich Partnership, L.P. – Line of Credit (e)(f)		07/06/21		4.30	%		400,000		—		400,000
Tucson La Encantada		03/01/22		4.23	%		65,361		—		65,361
Pacific View		04/01/22		4.08	%		121,362		—		121,362
Oaks, The		06/05/22		4.14	%		192,037		—		192,037
Towne Mall		11/01/22		4.48	%		20,733		—		20,733
Victor Valley, Mall of		09/01/24		4.00	%		114,675		—		114,675
Queens Center		01/01/25		3.49	%		600,000		—		600,000
Vintage Faire		03/06/26		3.55	%		258,207		—		258,207
Fresno Fashion Fair		11/01/26		3.67	%		323,460		—		323,460
Freehold Raceway Mall (c)		11/01/29		3.94	%		199,504		—		199,504

Total Fixed Rate Debt for Consolidated Assets				3.91	%	$	3,534,199	$	—	$	3,534,199

Fashion Outlets of Chicago (g)		03/31/20		4.01	%	$	—	$	199,622	$	199,622
Green Acres Commons (f)		03/29/21		5.06	%		—		128,006		128,006
The Macerich Partnership, L.P. – Line of Credit (e)(f)		07/06/21		4.08	%		—		504,854		504,854
Santa Monica Place (f)		12/09/22		4.01	%		—		297,069		297,069

Total Floating Rate Debt for Consolidated Assets				4.16	%	$	—	$	1,129,551	$	1,129,551

Total Debt for Consolidated Assets				3.97	%	$	3,534,199	$	1,129,551	$	4,663,750

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Outstanding Debt by Maturity Date


	As of December 30, 2018
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	%	$	121,254		$	—		$	121,254
One Westside-defeased (25%)		10/01/22		4.77	%		34,556			—			34,556
Washington Square Mall (60%)		11/01/22		3.65	%		330,000			—			330,000
Deptford Mall (51%)		04/03/23		3.55	%		93,018			—			93,018
Scottsdale Fashion Square (50%)		04/03/23		3.02	%		229,485			—			229,485
Tysons Corner Center (50%)		01/01/24		4.13	%		381,975			—			381,975
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	%		159,656			—			159,656
Lakewood Center (60%)		06/01/26		4.15	%		218,503			—			218,503
Kierland Commons (50%)		04/01/27		3.98	%		108,949			—			108,949
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	%		186,990			—			186,990
Corte Madera, The Village at (50.1%)		09/01/28		3.53	%		112,378			—			112,378
Broadway Plaza (50%)		04/01/30		4.19	%		224,409			—			224,409
West Acres (19%)		03/01/32		4.61	%		14,610			—			14,610

Total Fixed Rate Debt for Unconsolidated Assets				3.85	%	$	2,967,283		$	—		$	2,967,283

Atlas Park (50%) (f)		10/28/20		4.42	%	$	—		$	26,466		$	26,466
Pacific Premier Retail LLC (60%)		10/31/22		3.55	%		—			60,000			60,000
Fashion District Philadelphia (50%)		01/22/23		4.35	%		—			123,951			123,951
Boulevard Shops (50%)		12/05/23		4.56	%		—			9,219			9,219

Total Floating Rate Debt for Unconsolidated Assets				4.15	%	$	—		$	219,636		$	219,636
Total Debt for Unconsolidated Assets				3.87	%	$	2,967,283		$	219,636		$	3,186,919

Total Debt				3.93	%	$	6,501,482		$	1,349,187		$	7,850,669

Percentage to Total							82.81	%		17.19	%		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 revolving line of credit includes an interest rate swap that effectively converts $400 million of the outstanding balance to fixed rate debt through September 30, 2021.

(f)	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.

(g)	On January 10, 2019, the Company replaced the existing loan on the property with a new $300 million interest only loan that bears fixed interest at 4.58% and matures on February 1, 2031.

The Macerich Company

Supplemental Financial and Operating Information (Unaudited)

Development Pipeline Forecast

(Dollars in millions)

as of December 31, 2018

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)
12/31/2018

Expected
Delivery(a)

Stabilized
Yield(a)(b)(c)

Fashion District Philadelphia
Philadelphia, PA

Redevelopment of The Gallery in downtown Philadelphia; includes Burlington, Century 21, H&M, AMC Theaters and other retail, entertainment and restaurant uses

$400 - $420(d)

50.0%

$200 - $210(d)

151

September 2019

7 - 7.5%(d)

Scottsdale Fashion Square
Scottsdale, AZ

Redevelopment of former Barneys anchor into a flagship Apple store and an Industrious co-working space; 80,000 sf exterior expansion with restaurants and fitness leading into a luxury wing

$140 - $160

50.0%

$70 - $80

2019

6 - 6.5%

One Westside fka Westside Pavilion
Los Angeles, CA

Redevelopment of an existing retail center into an approximately 584,000 sf of Class A creative office campus leased solely to Google

$500 - $550(e)

25.0%

$125 - $138(e)

Q3 2022(f)

7.75% - 8.25%(e)

Total In-Process

$1,040 - $1,130

$395 - $428

214

Shadow Pipeline of Developments and Redevelopments(g):

Property

Project Type

Total Cost(a)(b)
at 100%

Ownership
%

Total Cost(a)(b)
Pro Rata

Pro Rata
Capitalized Costs(b)
12/31/2018

Expected
Delivery(a)

Stabilized
Yield(a)(b)(c)

Sears stores

Includes nine stores owned in a 50/50 joint venture with Seritage, as well as seven wholly-owned Company stores

various

$250 - $300 (h)

2020-2024

TBD

Total Shadow Pipeline

$250 - $300

(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)	Includes $140 million ($35 million at the Company’s share), which is an allocable share of the total $190 million purchase price paid by the joint venture in August 2018 for the existing buildings and land.

(f)	Monthly base rent payments are anticipated to commence during the third quarter of 2022, with base rent abatements from the second through ninth month following rent commencement.

(g)	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.

(h)	This estimated range of incremental redevelopment costs could increase if the Company decides to expand the scope as the redevelopment plans get refined.

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 2018, 2017 and 2016 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, 2016	$	82.88	$	72.99	$	2.68	(a)
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
March 31, 2018	$	69.73	$	54.35	$	0.74
June 30, 2018	$	60.00	$	53.55	$	0.74
September 30, 2018	$	60.95	$	54.36	$	0.74
December 31, 2018	$	55.54	$	40.90	$	0.75

(a)	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 macerich.com.

Investor Relations


Jean Wood Vice President, Investor Relations Phone: 424-229-3366 jean.wood@macerich.com