The Macerich Company (MAC) 8-K Macerich Announces Ffo Per Share-diluted Up 11.5% In Second Quarter

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Exhibit 99.1

PRESS RELEASE

For:	THE MACERICH COMPANY
Press Contact:	Arthur Coppola, President and Chief Executive Officer or Thomas E. O'Hern, Executive Vice President and Chief Financial Officer (310) 394-6000

MACERICH ANNOUNCES FFO PER SHARE-DILUTED UP 11.5% IN SECOND QUARTER

        Santa Monica, CA (8/07/08)—The Macerich Company (NYSE Symbol: MAC) today announced results of operations for the quarter ended June 30, 2008 which included total funds from operations ("FFO") diluted of $103.2 million or $1.16 per diluted share, up 11.5% compared to $1.04 per diluted share for the quarter ended June 30, 2007. For the six months ended June 30, 2008, FFO-diluted was $199.2 million compared to $177.1 million for the six months ended June 30, 2007. Net income available to common stockholders for the quarter ended June 30, 2008 was $18.8 million or $.25 per share-diluted compared to $10.9 million or $.15 per share-diluted for the quarter ended June 30, 2007. For the six months ended June 30, 2008, net income available to common stockholders was $114.4 million or $1.55 per share-diluted compared to $14.4 million or $.20 per share-diluted for the six months ended June 30, 2007. The Company's definition of FFO is in accordance with the definition provided by the National Association of Real Estate Investment Trusts ("NAREIT"). A reconciliation of net income to FFO and net income per common share-diluted ("EPS") to FFO per share-diluted is included in the financial tables accompanying this press release.

Recent Highlights:

•

During the quarter, Macerich signed 370,000 square feet of specialty store leases (up 7.9% from the second quarter of 2007) with average initial rents of $45.51 per square foot. Starting base rent on new lease signings was 26.5% higher than the expiring base rent.



•

Mall tenant sales per square foot for the trailing twelve month period increased to $468 for the quarter ended June 30, 2008 compared to $458 for the quarter ended June 30, 2007.



•

Portfolio occupancy at June 30, 2008 was 92.9% compared to 93.2% at June 30, 2007. On a same center basis, occupancy was 92.8% at June 30, 2008 compared to 93.1% at June 30, 2007.



•

Same center net operating income for the quarter was up 3.35% compared to the same period in 2007.



•

FFO per share-diluted increased 11.5% compared to the second quarter of 2007.



•

Since May, the Company has closed on over $1.0 billion in financings. Those six financing transactions have generated proceeds in excess of the maturing loans of over $600 million.

        Commenting on results, Arthur Coppola president and chief executive officer of Macerich stated, "In light of the economy, we are pleased with the continuing strong fundamentals with occupancy levels near 93%, strong releasing spreads and solid same center growth in net operating income. In addition, we had a tremendous amount of financing activity which generated substantial liquidity and further strengthened our balance sheet. The majority of our redevelopment effort is on The Oaks and Santa Monica Place, both of which saw significant progress during the quarter."

Redevelopment and Development Activity

        The expansion of The Oaks, a 1.1 million square-foot super regional mall in Thousand Oaks, California, continues on schedule toward a multi-phased opening beginning with a 138,000-square-foot Nordstrom Department Store slated to open on September 5, 2008. New additions to the center's interior retail lineup include the first-to-markets Bare Escentuals, Fruits and Passions, kate spade, Marciano and Teavana. Construction on the two-level, open-air retail, dining and entertainment venue, anchored by Muvico Entertainment, Devon Seafood Grill, Ruth Chris's Steakhouse and Lazy Dog Cafe and a complete interior renovation continues toward a phased opening beginning Fall 2008.

        On July 15, Macerich announced plans for a new 122,000-square-foot Nordstrom that will debut as an additional anchor for Santa Monica Place, a regional shopping center under redevelopment in affluent Santa Monica, California. Nordstrom will replace a vacant anchor space acquired as a result of the Federated merger. Projected to re-open in Fall 2009, construction on the project is well underway and the roof has been removed, setting the stage for the center's transformation into a sophisticated, urban, open-air environment.

        Vertical construction of an approximately 160,000-square-foot luxury wing expansion at Scottsdale Fashion Square is underway and on schedule for a projected opening of phase-I of the project in Fall 2009. Anchored by a first-to-market 60,000-square-foot Barneys New York, the expansion will introduce up to 100,000 square feet of luxury shops and restaurants on Scottsdale Road. New retailers inside the center include A/X Armani Exchange, Bare Escentuals, Bottega Veneta, Metropark, Puma and Socrati.

        On July 15, plans were announced to expand the existing Nordstrom footprint at Broadway Plaza, the Company's high-performing asset in Walnut Creek, California. Previously announced was the addition of luxury department store Neiman-Marcus. The entitlement process for the new anchor addition is anticipated to be complete in late 2008. Broadway Plaza is a 697,984-square-foot open-air regional shopping center in the East Bay/San Francisco area.

Financing Activity

        Subsequent to the first quarter, the Company has closed on six transactions with its pro rata share of the financings being $1.045 billion which generated excess proceeds above the prior loans of over $600 million. The excess proceeds were used to pay down the Company's line of credit.

        On May 6, 2008, the Company closed on a $100 million financing of The Mall of Victor Valley, a regional mall in Victorville, California, at an initial rate of 4.32%. Some of the loan proceeds paid off the former loan of approximately $51 million with an interest rate of 5.25%. This floating rate loan has an initial term of three years extendable to five years.

        On June 5, 2008, Westside Pavilion, a 740,000 square foot regional mall in Los Angeles was refinanced with a new $175 million five year loan with an initial interest rate of 4.45%. Some of the loan proceeds paid off the former loan of $91.6 million with an interest rate of 6.74%.

        On June 13, 2008, the Company closed on a $150 million loan on the recently opened SanTan Village regional shopping center. The floating rate loan has an initial three year term, extendable to five years. The initial funding was approximately $117 million at an initial interest rate of 4.73%. Approximately $33 million of additional proceeds will be distributed as the remaining construction costs are incurred.

        On July 10, 2008, a $170 million, 6.76% seven year fixed rate loan was placed on Fresno Fashion Fair, a super regional mall in Fresno, California. A portion of the proceeds were used to pay off the previous loan of $63.1 million bearing interest at 6.52%.

        On July 11, 2008, the Company placed a $300 million combination construction—permanent loan on The Oaks, a super regional mall in Thousand Oaks, California. The initial funding was $220 million at an interest rate of 4.29%. Approximately $48 million of additional proceeds will be distributed upon completion of the construction and another $30 million upon stabilization. This floating rate loan has an initial term of three years.

        Additionally, on July 31, 2008, the Company closed on a $150 million, seven year, 6.11% fixed interest rate loan secured by Broadway Plaza. A portion of the proceeds were used to pay off the current loan of $59 million (with a 6.68% interest rate). The Company owns 50% of this joint venture.

        Upon completion of these financings, the Company has less than $100 million of remaining maturities for 2008.

        The Macerich 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. The Company is the sole general partner and owns an 86% ownership interest in The Macerich Partnership, L.P. Macerich now owns approximately 77 million square feet of gross leaseable area consisting primarily of interests in 72 regional malls. Additional information about The Macerich Company can be obtained from the Company's web site 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 (Investing section) and through CCBN at www.earnings.com. The call begins today, August 7, 2008 at 10:30 AM Pacific Time. To listen to the call, please go to any of these web sites 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 (Investing 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 Investing 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. 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 and terms, interest rate fluctuations, availability 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; governmental actions and initiatives (including legislative and regulatory changes); environmental and safety requirements; and terrorist activities 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/A for the year ended December 31, 2007, 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.

(See attached tables)

##

THE MACERICH COMPANY
FINANCIAL HIGHLIGHTS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Results of Operations:

		Results before SFAS 144(e)						Impact of SFAS 144(e)						Results after SFAS 144(e)
		For the Three Months Ended June 30,						For the Three Months Ended June 30,						For the Three Months Ended June 30,
		Unaudited												Unaudited
		2008			2007			2008			2007			2008			2007
Minimum rents		$	130,673		$	125,920		$	(7,069	)	$	(11,136	)	$	123,604		$	114,784
Percentage rents			2,954			2,919			—			(81	)		2,954			2,838
Tenant recoveries			67,067			67,995			(1,421	)		(7,345	)		65,646			60,650
Management Companies' revenues			10,382			9,599			—			—			10,382			9,599
Other income			6,775			9,356			(64	)		(2,903	)		6,711			6,453
Total revenues		$	217,851		$	215,789		$	(8,554	)	$	(21,465	)	$	209,297		$	194,324
Shopping center and operating expenses			69,354			69,172			(2,099	)		(7,299	)		67,255			61,873
Management Companies' operating expenses			20,529			18,519			—			—			20,529			18,519
Income tax benefit			(689	)		(787	)		—			—			(689	)		(787	)
Depreciation and amortization			57,772			59,291			(961	)		(5,638	)		56,811			53,653
REIT general and administrative expenses			4,135			4,412			—			—			4,135			4,412
Interest expense			68,506			62,226			—			(3,500	)		68,506			58,726
Gain on sale or disposition of assets			376			1,183			113			1,096			489			2,279
Equity in income of unconsolidated joint ventures(c)			24,946			18,997			—			—			24,946			18,997
Minority interests in consolidated joint ventures			(879	)		(3,602	)		1			3,685			(878	)		83
Income from continuing operations			22,687			19,534			(5,380	)		(247	)		17,307			19,287
Discontinued Operations:
	Loss on sale or disposition of assets		—			—			(113	)		(1,124	)		(113	)		(1,124	)
	Income from discontinued operations		—			—			5,493			1,371			5,493			1,371
Income before minority interests of OP			22,687			19,534			—			—			22,687			19,534
Income allocated to minority interests of OP			3,058			1,940			—			—			3,058			1,940
Net income before preferred dividends			19,629			17,594			—			—			19,629			17,594
Preferred dividends(a)			835			2,575			—			—			835			2,575
Adjustment of minority interest due to redemption value			—			4,119			—			—			—			4,119
Net income to common stockholders			18,794			10,900			—			—			18,794			10,900
Average number of shares outstanding—basic			73,780			71,528									73,780			71,528
Average shares outstanding, assuming full conversion of OP Units(d)(e)			86,781			84,552									86,781			84,552
Average shares outstanding—Funds From Operations ("FFO")—diluted(a)(d)(e)			88,633			96,701									88,633			96,701
Per share income—diluted before discontinued operations			—			—								$	0.19		$	0.20
Net income per share—basic		$	0.25		$	0.15								$	0.25		$	0.15
Net income per share—diluted(a)(e)		$	0.25		$	0.15								$	0.25		$	0.15
Dividend declared per share		$	0.80		$	0.71								$	0.80		$	0.71
FFO—basic(b)(d)		$	102,345		$	89,409								$	102,345		$	89,409
FFO—diluted(a)(b)(d)(e)		$	103,180		$	100,696								$	103,180		$	100,696
FFO per share—basic(b)(d)		$	1.19		$	1.06								$	1.19		$	1.06
FFO per share—diluted(a)(b)(d)(e)		$	1.16		$	1.04								$	1.16		$	1.04

Results of Operations:

		Results before SFAS 144(e)						Impact of SFAS 144(e)						Results after SFAS 144(e)
		For the Six Months Ended June 30,						For the Six Months Ended June 30,						For the Six Months Ended June 30,
		Unaudited												Unaudited
		2008			2007			2008			2007			2008			2007
Minimum rents		$	262,760		$	249,913		$	(13,325	)	$	(22,169	)	$	249,435		$	227,744
Percentage rents			5,658			6,706			—			(204	)		5,658			6,502
Tenant recoveries			134,898			135,778			(2,863	)		(14,263	)		132,035			121,515
Management Companies' revenues			20,073			18,353			—			—			20,073			18,353
Other income			13,388			16,946			(348	)		(3,938	)		13,040			13,008
Total revenues		$	436,777		$	427,696		$	(16,536	)	$	(40,574	)	$	420,241		$	387,122
Shopping center and operating expenses			140,307			137,849			(4,135	)		(13,960	)		136,172			123,889
Management Companies' operating expenses			38,872			36,274			—			—			38,872			36,274
Income tax benefit			(388	)		(907	)		—			—			(388	)		(907	)
Depreciation and amortization			118,901			115,267			(1,383	)		(10,235	)		117,518			105,032
REIT general and administrative expenses			8,538			9,785			—			—			8,538			9,785
Interest expense			139,333			129,781			—			(7,035	)		139,333			122,746
Loss on early extinguishment of debt			—			877			—			—			—			877
Gain on sale or disposition of assets			100,313			2,646			(99,150	)		1,385			1,163			4,031
Equity in income of unconsolidated joint ventures(c)			47,244			33,480			—			—			47,244			33,480
Minority interests in consolidated joint ventures			(1,404	)		(8,640	)		—			7,505			(1,404	)		(1,135	)
Income from continuing operations			137,367			26,256			(110,168	)		(454	)		27,199			25,802
Discontinued Operations:
	Gain (loss) on sale or disposition of assets		—			—			99,150			(1,413	)		99,150			(1,413	)
	Income from discontinued operations		—			—			11,018			1,867			11,018			1,867
Income before minority interests of OP			137,367			26,256			—			—			137,367			26,256
Income allocated to minority interests of OP			19,656			2,578			—			—			19,656			2,578
Net income before preferred dividends			117,711			23,678			—			—			117,711			23,678
Preferred dividends(a)			3,289			5,150			—			—			3,289			5,150
Adjustment of minority interest due to redemption value			—			4,119			—			—			—			4,119
Net income to common stockholders			114,422			14,409			—			—			114,422			14,409
Average number of shares outstanding—basic			73,061			71,597									73,061			71,597
Average shares outstanding, assuming full conversion of OP Units(d)(e)			88,465			84,792									88,465			84,792
Average shares outstanding—FFO—diluted(a)(d)(e)			88,465			88,419									88,465			88,419
Per share income—diluted before discontinued operations			—			—								$	0.31		$	0.25
Net income per share—basic		$	1.57		$	0.20								$	1.57		$	0.20
Net income per share—diluted(a)(e)		$	1.55		$	0.20								$	1.55		$	0.20
Dividend declared per share		$	1.60		$	1.42								$	1.60		$	1.42
FFO—basic(b)(d)		$	195,902		$	171,902								$	195,902		$	171,902
FFO—diluted(a)(b)(d)(e)		$	199,191		$	177,052								$	199,191		$	177,052
FFO per share—basic(b)(d)		$	2.29		$	2.03								$	2.29		$	2.03
FFO per share—diluted(a)(b)(d)(e)		$	2.25		$	2.00								$	2.25		$	2.00

(a)

On February 25, 1998, the Company sold $100 million of convertible preferred stock representing 3.627 million shares. The convertible preferred shares can be converted on a 1 for 1 basis for common stock. The preferred shares outstanding were assumed converted for purposes of net income per share—diluted for the six months ended June 30, 2008. The preferred shares outstanding were not assumed converted for the three months ended June 30, 2008 and for all periods presented for 2007 as they would be antidilutive to the calculation.

The weighted average preferred shares outstanding are assumed converted for purposes of FFO per share—diluted as they are dilutive to those calculations for all periods presented. On October 18, 2007, 560,000 shares of convertible preferred stock were converted to common shares. Additionally, on May 6, 2008 and May 8, 2008, 684,000 and 1,338,860 shares of convertible preferred stock were converted to common shares, respectively.

(b)

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. 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 and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. FFO and FFO on a fully 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. FFO on a fully diluted basis is one of the measures investors find most useful in measuring the dilutive impact of outstanding convertible securities. FFO does not represent cash flow from operations as defined by GAAP, should not be considered as an alternative to net income as defined by GAAP and is not indicative of cash available to fund all cash flow needs. FFO as presented may not be comparable to similarly titled measures reported by other real estate investment trusts.

Effective January 1, 2003, gains or losses on sales of undepreciated assets and the impact of SFAS 141 have been included in FFO. The inclusion of gains on sales of undepreciated assets increased FFO for the three and six months ended June 30, 2008 and 2007 by $1.4 million, $3.0 million, $(0.2) million and $0.7 million, respectively, or by $.01 per share, $0.03 per share, $0.00 per share and $.01 per share, respectively. Additionally, SFAS 141 increased FFO for the three and six months ended June 30, 2008 and 2007 by $3.9 million and $8.5 million, $3.5 million and $7.5 million, respectively, or by $.04 per share, $0.10 per share, $0.04 per share and $0.08 per share, respectively.

(c)

This includes, using the equity method of accounting, the Company's prorata share of the equity in income or loss of its unconsolidated joint ventures for all periods presented.

(d)

The Macerich Partnership, LP (the "Operating Partnership" or the "OP") has operating partnership units ("OP units"). Each OP unit can be converted into a share of Company common stock. Conversion of the OP units not owned by the Company has been assumed for purposes of calculating the 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 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. For the three and six months ended June 30, 2008 and 2007, the MACWH, LP preferred units were antidilutive to FFO.

(e)

In October 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" ("SFAS 144"). SFAS 144 addresses financial accounting and reporting for the impairment or disposal of long-lived assets. The Company adopted SFAS 144 on January 1, 2002.

On December 17, 2007, the Company, as part of a sale/leaseback transaction involving Mervyn's sites, identified certain locations available for sale. The Company has classified the results of operations from these sites as discontinued operations.

On April 25, 2005, in connection with the acquisition of Wilmorite Holdings, L.P. and its affiliates, the Company issued as part of the consideration participating and non-participating convertible preferred units in MACWH, LP. The participating units are not assumed converted for purposes of net income per share and FFO—diluted per share for all periods presented as they would be antidilutive to the calculation. On January 1, 2008, a subsidiary of the Company, at the election of the holders, redeemed approximately 3.4 million participating convertible preferred units in exchange for the distribution of the interests in the entity which held that portion of the Wilmorite portfolio that consisted of Eastview Mall, Greece Ridge Center, Marketplace Mall and Pittsford Plaza ("Rochester Properties"). This exchange is referred to as the "Rochester Redemption." As a result of the Rochester Redemption , the Company has classified the results of operations from the Rochester Properties to discontinued operations and recorded a gain of $99.3 million for the period ended March 31, 2008.

Pro rata share of joint ventures:

		For the Three Months Ended June 30,				For the Six Months Ended June 30,
		Unaudited				Unaudited
		2008		2007		2008		2007
Revenues:
	Minimum rents	$	67,124	$	61,985	$	133,434	$	123,875
	Percentage rents		2,143		1,938		4,405		4,225
	Tenant recoveries		31,452		28,602		64,048		57,791
	Other		9,851		3,291		14,009		5,954
	Total revenues	$	110,570	$	95,816	$	215,896	$	191,845
Expenses:
	Shopping center expenses		35,988		32,807		71,913		63,395
	Interest expense		25,668		23,751		51,927		48,068
	Depreciation and amortization		25,755		20,696		48,034		45,084
	Total operating expenses		87,411		77,254		171,874		156,547
Gain (loss) on sale of assets			1,604		362		2,923		(2,020	)
Equity in income of joint ventures			183		73		299		202
	Net income	$	24,946	$	18,997	$	47,244	$	33,480

Reconciliation of Net Income to FFO(b):

			For the Three Months Ended June 30,						For the Six Months Ended June 30,
			Unaudited						Unaudited
			2008			2007			2008			2007
Net income—available to common stockholders			$	18,794		$	10,900		$	114,422		$	14,409
Adjustments to reconcile net income to FFO—basic
	Minority interest in OP			3,058			1,940			19,656			2,578
	Gain on sale or disposition of consolidated assets			(376	)		(1,183	)		(100,313	)		(2,646	)
	Adjustment of minority interest due to redemption value			—			4,119			—			4,119
		plus gain on undepreciated asset sales—consolidated assets		241			(542	)		574			339
		plus minority interest share of gain on sale of consolidated joint ventures		248			(488	)		589			348
		(Gain) loss on sale of assets from unconsolidated entities (pro rata share)		(1,604	)		(362	)		(2,923	)		2,020
		plus gain on undepreciated asset sales—unconsolidated entities (pro rata share)		1,116			350			2,436			350
		plus minority interest share of gain on sale of unconsolidated entities		487			—			487			—
	Depreciation and amortization on consolidated assets(f)			57,772			59,291			118,901			115,267
	Less depreciation and amortization allocable to minority interests on consolidated joint ventures			(788	)		(1,332	)		(1,361	)		(2,326	)
	Depreciation and amortization on joint ventures (pro rata)(f)			25,755			20,696			48,034			45,084
	Less: depreciation on personal property and amortization of loan costs(f)			(2,358	)		(3,980	)		(4,600	)		(7,640	)
Total FFO—basic				102,345			89,409			195,902			171,902
Additional adjustment to arrive at FFO—diluted
	Preferred stock dividends earned			835			2,575			3,289			5,150
	Convertible debt—interest expense			—			8,712			—			—
Total FFO—diluted			$	103,180		$	100,696		$	199,191		$	177,052

(f)

In 2008, amortization of loan costs is included in interest expense.

Reconciliation of EPS to FFO per diluted share:

		For the Three Months Ended June 30,						For the Six Months Ended June 30,
		Unaudited						Unaudited
		2008			2007			2008			2007
Earnings per share—diluted		$	0.25		$	0.15		$	1.55		$	0.20
	Per share impact of depreciation and amortization of real estate		0.92			0.88			1.88			1.77
	Per share impact of (gain) loss on sale or disposition of depreciated assets		0.00			(0.03	)		(1.16	)		(0.01	)
	Per share impact of preferred stock not dilutive to EPS		(0.01	)		(0.01	)		(0.02	)		(0.01	)
	Per share impact of adjustment of minority interest due to redemption value		—			0.05			—			0.05
FFO per share—diluted		$	1.16		$	1.04		$	2.25		$	2.00

Reconciliation of Net Income to EBITDA:

		For the Three Months Ended June 30,						For the Six Months Ended June 30,
		Unaudited						Unaudited
		2008			2007			2008			2007
Net income—available to common stockholders		$	18,794		$	10,900		$	114,422		$	14,409
	Interest expense		68,506			62,226			139,333			129,781
	Interest expense—unconsolidated entities (pro rata)		25,668			23,751			51,927			48,068
	Depreciation and amortization—consolidated assets		57,772			59,291			118,901			115,267
	Depreciation and amortization—unconsolidated entities (pro rata)		25,755			20,696			48,034			45,084
	Minority interest		3,058			1,940			19,656			2,578
	Adjustment of minority interest due to redemption value		—			4,119			—			4,119
	Less: Interest expense and depreciation and amortization allocable to minority interests on consolidated joint ventures		(1,191	)		(1,766	)		(1,950	)		(3,201	)
	Loss on early extinguishment of debt		—			—			—			877
	Gain on sale or disposition of assets—consolidated assets		(376	)		(1,183	)		(100,313	)		(2,646	)
	(Gain) loss on sale of assets—unconsolidated entities (pro rata)		(1,604	)		(362	)		(2,923	)		2,020
	Add: Minority interest share of gain on sale of consolidated joint ventures		248			(488	)		589			348
	Add: Minority interest share of gain on sale of unconsolidated entities		487			—			487			—
	Income tax benefit		(689	)		(787	)		(388	)		(907	)
	Distributions on preferred units		264			3,547			540			7,094
	Preferred dividends		835			2,575			3,289			5,150
EBITDA(g)		$	197,527		$	184,459		$	391,604		$	368,041

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

		For the Three Months Ended June 30,						For the Six Months Ended June 30,
		Unaudited						Unaudited
		2008			2007			2008			2007
EBITDA(g)		$	197,527		$	184,459		$	391,604		$	368,041
Add: REIT general and administrative expenses			4,135			4,412			8,538			9,785
	Management Companies' revenues		(10,382	)		(9,599	)		(20,073	)		(18,353	)
	Management Companies' operating expenses		20,529			18,519			38,872			36,274
	Lease termination income of comparable centers		(2,264	)		(2,130	)		(4,787	)		(5,483	)
	EBITDA of non-comparable centers		(38,607	)		(30,256	)		(71,110	)		(57,949	)
Same Centers—NOI(h)		$	170,938		$	165,405		$	343,044		$	332,315

(g)

EBITDA represents earnings before interest, income taxes, depreciation, amortization, minority interest, extraordinary items, gain (loss) on sale of assets and preferred dividends and includes joint ventures at their pro rata share. Management considers EBITDA to be an appropriate supplemental measure to net income because it helps investors understand the ability of the Company to incur and service debt and make capital expenditures. 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. EBITDA, as presented, may not be comparable to similarly titled measurements reported by other companies.

(h)

The Company presents same-center NOI because the Company believes it is useful for investors to evaluate the operating performance of comparable centers. Same-center NOI is calculated using total EBITDA and subtracting out EBITDA from non-comparable centers and eliminating the management companies and the Company's general and administrative expenses. Same center NOI excludes the impact of straight-line and SFAS 141 adjustments to minimum rents.

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THE MACERICH COMPANY FINANCIAL HIGHLIGHTS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)