UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September 30, 2021~~March 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission File No.: 1-12504

THE MACERICH COMPANY

(Exact name of registrant as specified in its charter)

Maryland

95-4448705

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer Identification Number)

401 Wilshire Boulevard,

Suite 700,

Santa Monica,

California

90401

(Address of principal executive office)

(Zip Code)

(310)

394-6000

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Securities Act:


Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, $0.01 Par Value	MAC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve (12) months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past ninety (90) days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding twelve (12) months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Accelerated Filer

☐

Non-Accelerated Filer

☐

Smaller Reporting Company

☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares outstanding as of ~~November 5, 2021~~May 9, 2022 of the registrant's common stock, par value $0.01 per share: ~~213,037,660~~214,645,240 shares

THE MACERICH COMPANY

FORM 10-Q

INDEX

Part I

Financial Information

Item 1.

Financial Statements (Unaudited)

Consolidated Balance Sheets as of ~~September 30, 2021~~March 31, 2022 and December 31, 20202120

Consolidated Statements of Operations for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 20~~20

Consolidated Statements of Comprehensive ~~Income (Loss)~~Loss for the three ~~and nine~~ months ended ~~September 30, 2021~~March 3 1 , 202 2 and 202021

Consolidated Statements of Equity for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 20~~20

Consolidated Statements of Cash Flows for the ~~nine~~three months ended ~~September~~ ~~30,~~March 31, 2022 and 2021 ~~and 2020~~

Notes to Consolidated Financial Statements

109

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

2825

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

4337

Item 4.

Controls and Procedures

4438

Part II

Other Information

Unregistered Sales of Equity Securities and Use of Proceeds

4539

Item 3.

Defaults Upon Senior Securities

4539

Item 4.

Mine Safety Disclosures

THE MACERICH COMPANY

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except par value)

(Unaudited)


		September 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
ASSETS:	ASSETS:					ASSETS:
Property, net	Property, net	$	6,330,391	$	6,694,579	Property, net	$	6,223,984	$	6,284,206

Cash and cash equivalents	Cash and cash equivalents	117,596		465,297		Cash and cash equivalents	128,244		112,454
Restricted cash	Restricted cash	55,514		17,362		Restricted cash	55,933		54,517
Tenant and other receivables, net	Tenant and other receivables, net	175,290		239,194		Tenant and other receivables, net	159,653		211,361
Right-of-use assets, net	Right-of-use assets, net	113,068		118,355		Right-of-use assets, net	131,547		110,638
Deferred charges and other assets, net	Deferred charges and other assets, net	252,021		306,959		Deferred charges and other assets, net	242,890		254,908

Due from affiliates	Due from affiliates	2,977		1,612		Due from affiliates	4,177		—
Investments in unconsolidated joint ventures	Investments in unconsolidated joint ventures	1,365,369		1,340,647		Investments in unconsolidated joint ventures	1,263,252		1,317,571
Total assets	Total assets	$	8,412,226	$	9,184,005	Total assets	$	8,209,680	$	8,345,655
LIABILITIES AND EQUITY:	LIABILITIES AND EQUITY:					LIABILITIES AND EQUITY:
Mortgage notes payable	Mortgage notes payable	$	4,432,587	$	4,560,810	Mortgage notes payable	$	4,414,557	$	4,423,554
Bank and other notes payable	Bank and other notes payable	114,252		1,477,540		Bank and other notes payable	63,388		104,811
Accounts payable and accrued expenses	Accounts payable and accrued expenses	58,461		68,825		Accounts payable and accrued expenses	58,011		59,228
Due to affiliates						Due to affiliates	—		327
Lease liabilities	Lease liabilities	83,456		90,216		Lease liabilities	101,236		80,711
Other accrued liabilities	Other accrued liabilities	237,392		298,594		Other accrued liabilities	216,935		254,279
Distributions in excess of investments in unconsolidated joint ventures	Distributions in excess of investments in unconsolidated joint ventures	129,517		108,381		Distributions in excess of investments in unconsolidated joint ventures	130,518		127,608
Financing arrangement obligation	Financing arrangement obligation	121,770		134,379		Financing arrangement obligation	121,531		118,988
Total liabilities	Total liabilities	5,177,435		6,738,745		Total liabilities	5,106,176		5,169,506
Commitments and contingencies	Commitments and contingencies	0		0		Commitments and contingencies	0		0
Equity:	Equity:					Equity:
Stockholders' equity:	Stockholders' equity:					Stockholders' equity:
Common stock, $0.01 par value, 500,000,000 and 250,000,000 shares authorized at September 30, 2021 and December 31, 2020, respectively, and 213,307,990 and 149,770,575 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively		2,133		1,498
Common stock, $0.01 par value, 500,000,000 shares authorized at March 31, 2022 and December 31, 2021, and 214,901,377 and 214,797,057 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively						Common stock, $0.01 par value, 500,000,000 shares authorized at March 31, 2022 and December 31, 2021, and 214,901,377 and 214,797,057 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively	2,148		2,147
Additional paid-in capital	Additional paid-in capital	5,467,235		4,603,378		Additional paid-in capital	5,493,662		5,488,440
Accumulated deficit	Accumulated deficit	(2,394,634)		(2,339,619)		Accumulated deficit	(2,513,179)		(2,443,696)
Accumulated other comprehensive loss		—		(8,208)
Accumulated other comprehensive income (loss)						Accumulated other comprehensive income (loss)	7		(24)
Total stockholders' equity	Total stockholders' equity	3,074,734		2,257,049		Total stockholders' equity	2,982,638		3,046,867
Noncontrolling interests	Noncontrolling interests	160,057		188,211		Noncontrolling interests	120,866		129,282
Total equity	Total equity	3,234,791		2,445,260		Total equity	3,103,504		3,176,149
Total liabilities and equity	Total liabilities and equity	$	8,412,226	$	9,184,005	Total liabilities and equity	$	8,209,680	$	8,345,655

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

THE MACERICH COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share amounts)


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2021		2020		2021		2020				2022		2021
Revenues:	Revenues:									Revenues:
Leasing revenue	Leasing revenue	$	197,135	$	175,506	$	573,657	$	554,981	Leasing revenue		$	203,412	$	179,535
Other	Other	8,215		4,334		25,391		16,595		Other		6,327		5,321
Management Companies	Management Companies	6,787		6,004		18,986		19,807		Management Companies		6,405		5,568
Total revenues	Total revenues	212,137		185,844		618,034		591,383		Total revenues		216,144		190,424
Expenses:	Expenses:									Expenses:
Shopping center and operating expenses	Shopping center and operating expenses	70,696		64,680		214,506		192,538		Shopping center and operating expenses		72,920		76,155
Leasing expenses	Leasing expenses	6,200		5,544		18,003		19,622		Leasing expenses		7,611		5,166
Management Companies' operating expenses	Management Companies' operating expenses	14,601		13,031		44,465		45,697		Management Companies' operating expenses		16,945		14,843
REIT general and administrative expenses	REIT general and administrative expenses	7,599		7,589		22,365		22,652		REIT general and administrative expenses		6,862		8,087

Depreciation and amortization	Depreciation and amortization	75,465		78,605		231,491		241,112		Depreciation and amortization		72,856		78,396
		174,561		169,449		530,830		521,621				177,194		182,647
Interest expense (income):
Interest expense:										Interest expense:
Related parties	Related parties	(7,708)		(15,502)		(3,435)		(92,552)		Related parties		8,002		1,319
Other	Other	48,044		52,686		152,581		157,844		Other		43,859		52,577
		40,336		37,184		149,146		65,292				51,861		53,896
Loss on extinguishment of debt		1,007		—		1,007		—

Total expenses	Total expenses	215,904		206,633		680,983		586,913		Total expenses		229,055		236,543
Equity in (loss) income of unconsolidated joint ventures	Equity in (loss) income of unconsolidated joint ventures	(1,733)		(12,513)		20,212		(16,988)		Equity in (loss) income of unconsolidated joint ventures		(29,097)		1,910
Income tax (expense) benefit		(107)		(1,106)		(9,452)		684
Income tax expense										Income tax expense		(1,799)		(2,238)
Gain (loss) on sale or write down of assets, net	Gain (loss) on sale or write down of assets, net	118,566		11,786		93,356		(28,784)		Gain (loss) on sale or write down of assets, net		6,453		(21,283)

Net income (loss)		112,959		(22,622)		41,167		(40,618)
Less net income (loss) attributable to noncontrolling interests		6,257		(431)		9,834		(833)
Net income (loss) attributable to the Company		$	106,702	$	(22,191)	$	31,333	$	(39,785)
Income (loss) per common share—attributable to common stockholders:
Net loss										Net loss		(37,354)		(67,730)
Less: net loss attributable to noncontrolling interests										Less: net loss attributable to noncontrolling interests		(172)		(4,126)
Net loss attributable to the Company										Net loss attributable to the Company		$	(37,182)	$	(63,604)
Loss per common share—attributable to common stockholders:										Loss per common share—attributable to common stockholders:
Basic	Basic	$	0.50	$	(0.15)	$	0.16	$	(0.28)	Basic		$	(0.17)	$	(0.40)
Diluted	Diluted	$	0.50	$	(0.15)	$	0.16	$	(0.28)	Diluted		$	(0.17)	$	(0.40)
Weighted average number of common shares outstanding:	Weighted average number of common shares outstanding:									Weighted average number of common shares outstanding:
Basic	Basic	213,214,000		149,626,000		192,717,000		145,071,000		Basic		214,819,000		158,580,000
Diluted	Diluted	213,214,000		149,626,000		192,717,000		145,071,000		Diluted		214,819,000		158,580,000

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

THE MACERICH COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE ~~INCOME (LOSS)~~LOSS

(Dollars in thousands, except per share amounts)

For the Three Months Ended September 30, For the Nine Months Ended September 30,
2021 2020 2021 2020
Net income (loss) $ 112,959 $ (22,622) $ 41,167 $ (40,618)
Other comprehensive income (loss):
Interest rate cap/swap agreements 2,775 2,812 8,208 (1,838)
Comprehensive income (loss) 115,734 (19,810) 49,375 (42,456)
Less net income (loss) attributable to noncontrolling interests 6,257 (431) 9,834 (833)
Comprehensive income (loss) attributable to the Company $ 109,477 $ (19,379) $ 39,541 $ (41,623)


	For the Three Months Ended March 31,
		2022		2021
Net loss		$	(37,354)	$	(67,730)
Other comprehensive income:
Interest rate cap/swap agreements		31		2,694
Comprehensive loss		(37,323)		(65,036)
Less: net loss attributable to noncontrolling interests		(172)		(4,126)
Comprehensive loss attributable to the Company		$	(37,151)	$	(60,910)

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

THE MACERICH COMPANY

CONSOLIDATED STATEMENTS OF EQUITY

(Dollars in thousands, except per share data)

(Unaudited)

Three Months Ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~
Stockholders' Equity
Common Stock Additional
Paid-in
Capital Accumulated
Deficit Accumulated
Other
Comprehensive
(Loss) Income Total
Stockholders'
Equity
Shares Par
Value Noncontrolling
Interests Total
Equity
Balance at July 1, 2021 211,169,654 $ 2,112 $ 5,438,493 $ (2,469,336) $ (2,775) $ 2,968,494 $ 158,452 $ 3,126,946
Net income — — — 106,702 — 106,702 6,257 112,959
Interest rate cap/swap agreements — — — — 2,775 2,775 — 2,775
Amortization of share and unit-based plans 16,320 — 4,318 — — 4,318 — 4,318
Stock offerings, net 2,122,016 21 23,799 — — 23,820 — 23,820
Distributions paid ($0.15 per share) — — — (32,000) — (32,000) — (32,000)
Distributions to noncontrolling interests — — — — — — (3,972) (3,972)
Contributions from noncontrolling interests — — — — — — 4 4
Redemption of noncontrolling interests — — (17) — — (17) (42) (59)
Adjustment of noncontrolling interests in Operating Partnership — — 642 — — 642 (642) —
Balance at September 30, 2021 213,307,990 $ 2,133 $ 5,467,235 $ (2,394,634) $ — $ 3,074,734 $ 160,057 $ 3,234,791


	Stockholders' Equity
	Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive (Loss) Income		Total Stockholders' Equity
	Shares	Par Value										Noncontrolling Interests		Total Equity
Balance at January 1, 2022	214,797,057	$	2,147	$	5,488,440	$	(2,443,696)	$	(24)	$	3,046,867	$	129,282	$	3,176,149
Net loss	—	—		—		(37,182)		—		(37,182)		(172)		(37,354)

Interest rate cap agreement	—	—		—		—		31		31		—		31
Amortization of share and unit-based plans	104,320	1		6,061		—		—		6,062		—		6,062



Stock offerings, net	—	—		(70)		—		—		(70)		—		(70)

Distributions paid ($0.15 per share)	—	—		—		(32,301)		—		(32,301)		—		(32,301)

Distributions to noncontrolling interests	—	—		—		—		—		—		(9,013)		(9,013)




Adjustment of noncontrolling interests in Operating Partnership	—	—		(769)		—		—		(769)		769		—
Balance at March 31, 2022	214,901,377	$	2,148	$	5,493,662	$	(2,513,179)	$	7	$	2,982,638	$	120,866	$	3,103,504


		Stockholders' Equity																				Stockholders' Equity
		Common Stock			Additional Paid-in Capital				Accumulated Deficit		Accumulated Other Comprehensive Loss			Total Stockholders' Equity								Common Stock					Additional Paid-in Capital				Accumulated Deficit				Accumulated Other Comprehensive Loss				Total Stockholders' Equity
		Shares	Par Value										Noncontrolling Interests			Total Equity		Shares				Par Value											Noncontrolling Interests								Total Equity
Balance at July 1, 2020		149,601,164	$	1,496			$	4,596,684			$	(2,082,082)		$	(13,701)	$	2,502,397		$	186,162			$	2,688,559
Balance at January 1, 2021																					Balance at January 1, 2021	149,770,575			$	1,498			$	4,603,378			$	(2,339,619)			$	(8,208)			$	2,257,049			$	188,211			$	2,445,260
Net loss	Net loss	—	—		—				(22,191)		—			(22,191)		(431)			(22,622)		Net loss	—			—		—				(63,604)				—				(63,604)				(4,126)				(67,730)

Interest rate cap/swap agreements	Interest rate cap/swap agreements	—	—		—				—		2,812			2,812		—			2,812		Interest rate cap/swap agreements	—			—		—				—				2,694				2,694				—				2,694
Amortization of share and unit-based plans	Amortization of share and unit-based plans	16,903	—		4,123				—		—			4,123		—			4,123		Amortization of share and unit-based plans	94,753			1		5,030				—				—				5,031				—				5,031

Stock offerings, net																					Stock offerings, net	45,992,318			460		637,684				—				—				638,144				—				638,144

Distributions paid ($0.15 per share)	Distributions paid ($0.15 per share)	—	—		—				(22,476)		—			(22,476)		—			(22,476)		Distributions paid ($0.15 per share)	—			—		—				(23,332)				—				(23,332)				—				(23,332)

Distributions to noncontrolling interests	Distributions to noncontrolling interests	—	—		—				—		—			—		(2,174)			(2,174)		Distributions to noncontrolling interests	—			—		—				—				—				—				(3,338)				(3,338)
Contributions from noncontrolling interests	Contributions from noncontrolling interests	—	—		—				—		—			—		325			325		Contributions from noncontrolling interests	—			—		—				—				—				—				577				577
Other		—	—		—				—		—			—		—			—

Conversion of noncontrolling interests to common shares	Conversion of noncontrolling interests to common shares	20,213	—		409				—		—			409		(409)			—		Conversion of noncontrolling interests to common shares	1,178,530			12		22,206				—				—				22,218				(22,218)				—
Redemption of noncontrolling interests	Redemption of noncontrolling interests	—	—		12				—		—			12		(22)			(10)		Redemption of noncontrolling interests	—			—		—				—				—				—				(1)				(1)
Adjustment of noncontrolling interests in Operating Partnership	Adjustment of noncontrolling interests in Operating Partnership	—	—		(758)				—		—			(758)		758			—		Adjustment of noncontrolling interests in Operating Partnership	—			—		(4,304)				—				—				(4,304)				4,304				—
Balance at September 30, 2020		149,638,280	$	1,496	$	4,600,470			$	(2,126,749)	$	(10,889)		$	2,464,328	$	184,209		$	2,648,537
Balance at March 31, 2021																					Balance at March 31, 2021	197,036,176			$	1,971	$	5,263,994			$	(2,426,555)			$	(5,514)			$	2,833,896			$	163,409			$	2,997,305

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

THE MACERICH COMPANY

CONSOLIDATED STATEMENTS OF ~~EQUITY~~

~~(Dollars in thousands, except per share data)~~

~~(Unaudited)~~

~~Nine Months Ended September 30, 2021 and 2020~~
Stockholders' Equity
Common Stock Additional
Paid-in
Capital Accumulated
Deficit Accumulated
Other
Comprehensive
Loss Total
Stockholders'
Equity
Shares Par
Value Noncontrolling
Interests Total
Equity
Balance at January 1, 2021 149,770,575 $ 1,498 $ 4,603,378 $ (2,339,619) $ (8,208) $ 2,257,049 $ 188,211 $ 2,445,260
Net income — — — 31,333 — 31,333 9,834 41,167
Interest rate cap/swap agreements — — — — 8,208 8,208 — 8,208
Amortization of share and unit-based plans 241,001 2 13,679 — — 13,681 — 13,681
Employee stock purchases 88,107 1 594 — — 595 — 595
Stock offerings, net 62,029,777 620 829,254 — 829,874 — 829,874
Distributions paid ($0.45 per share) — — — (86,348) — (86,348) — (86,348)
Distributions to noncontrolling interests — — — — — — (18,166) (18,166)
Contributions from noncontrolling interests — — — — — — 580 580
Conversion of noncontrolling interests to common shares 1,178,530 12 22,206 — — 22,218 (22,218) —
Redemption of noncontrolling interests — — (17) — — (17) (43) (60)
Adjustment of noncontrolling interests in Operating Partnership — — (1,859) — — (1,859) 1,859 —
Balance at September 30, 2021 213,307,990 $ 2,133 $ 5,467,235 $ (2,394,634) $ — $ 3,074,734 $ 160,057 $ 3,234,791

Stockholders' Equity
Common Stock Additional
Paid-in
Capital Accumulated
Deficit Accumulated
Other
Comprehensive
Loss Total
Stockholders'
Equity
Shares Par
Value Noncontrolling
Interests Total
Equity
Balance at January 1, 2020 141,407,650 $ 1,414 $ 4,583,911 $ (1,944,012) $ (9,051) $ 2,632,262 $ 198,708 $ 2,830,970
Net loss — — — (39,785) — (39,785) (833) (40,618)
Interest rate cap/swap agreements — — — — (1,838) (1,838) — (1,838)
Amortization of share and unit-based plans 142,991 1 13,935 — — 13,936 — 13,936
Employee stock purchases 141,568 1 851 — — 852 — 852
Distributions paid ($1.00 per share) — — — (142,952) — (142,952) — (142,952)
Stock dividend 7,759,280 78 (78) — — — — —
Distributions to noncontrolling interests — — — — — — (12,235) (12,235)
Contributions from noncontrolling interests — — — — — — 450 450
Conversion of noncontrolling interests to common shares 186,791 2 12,084 — — 12,086 (12,086) —
Redemption of noncontrolling interests — — 25 — — 25 (53) (28)
Adjustment of noncontrolling interests in Operating Partnership — — (10,258) — — (10,258) 10,258 —
Balance at September 30, 2020 149,638,280 $ 1,496 $ 4,600,470 $ (2,126,749) $ (10,889) $ 2,464,328 $ 184,209 $ 2,648,537

~~The accompanying notes are an integral part of these consolidated financial statements.~~

~~Table of Contents~~

~~THE MACERICH COMPANY~~

~~CONSOLIDATED STATEMENTS OF~~ CASH FLOWS

(Dollars in thousands)

(Unaudited)


		For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2021		2020			2022		2021
Cash flows from operating activities:	Cash flows from operating activities:					Cash flows from operating activities:
Net income (loss)		$	41,167	$	(40,618)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Loss on extinguishment of debt		1,007		—
Net loss						Net loss	$	(37,354)	$	(67,730)
Adjustments to reconcile net loss to net cash provided by operating activities:						Adjustments to reconcile net loss to net cash provided by operating activities:

(Gain) loss on sale or write down of assets, net	(Gain) loss on sale or write down of assets, net	(93,356)		28,784		(Gain) loss on sale or write down of assets, net	(6,453)		21,283
Depreciation and amortization	Depreciation and amortization	241,450		246,500		Depreciation and amortization	75,673		80,812
Amortization of premium on mortgage notes payable		—		(695)

Amortization of share and unit-based plans	Amortization of share and unit-based plans	10,868		10,990		Amortization of share and unit-based plans	4,869		4,030
Straight-line rent and amortization of above and below market leases	Straight-line rent and amortization of above and below market leases	(9,429)		(3,917)		Straight-line rent and amortization of above and below market leases	1,589		(4,959)
(Recovery of) provision for doubtful accounts		(4,269)		39,248
Income tax expense (benefit)		9,452		(684)
Equity in (income) loss of unconsolidated joint ventures		(20,212)		16,988
Distributions of income from unconsolidated joint ventures		48		—
Provision for doubtful accounts						Provision for doubtful accounts	567		3,208
Income tax expense						Income tax expense	1,799		2,238
Equity in loss (income) of unconsolidated joint ventures						Equity in loss (income) of unconsolidated joint ventures	29,097		(1,910)

Change in fair value of financing arrangement obligation	Change in fair value of financing arrangement obligation	(12,608)		(96,793)		Change in fair value of financing arrangement obligation	2,543		(863)
Changes in assets and liabilities, net of dispositions:	Changes in assets and liabilities, net of dispositions:					Changes in assets and liabilities, net of dispositions:
Tenant and other receivables	Tenant and other receivables	77,748		(124,004)		Tenant and other receivables	28,098		52,684
Other assets	Other assets	22,133		5,470		Other assets	210		5,969
Due from affiliates	Due from affiliates	(1,365)		(11,628)		Due from affiliates	(4,504)		(3,619)
Accounts payable and accrued expenses	Accounts payable and accrued expenses	(6,992)		27,173		Accounts payable and accrued expenses	790		(7,328)
Other accrued liabilities	Other accrued liabilities	(44,009)		(31,687)		Other accrued liabilities	(31,480)		(31,596)
Net cash provided by operating activities	Net cash provided by operating activities	211,633		65,127		Net cash provided by operating activities	65,444		52,219
Cash flows from investing activities:	Cash flows from investing activities:					Cash flows from investing activities:

Development, redevelopment, expansion and renovation of properties	Development, redevelopment, expansion and renovation of properties	(52,788)		(46,421)		Development, redevelopment, expansion and renovation of properties	(13,377)		(14,819)
Property improvements	Property improvements	(27,906)		(18,005)		Property improvements	(7,022)		(8,653)

Proceeds from repayment of notes receivable	Proceeds from repayment of notes receivable	1,300		—		Proceeds from repayment of notes receivable	—		1,300
Deferred leasing costs	Deferred leasing costs	(1,878)		(2,247)		Deferred leasing costs	(372)		(91)
Distributions from unconsolidated joint ventures	Distributions from unconsolidated joint ventures	70,955		28,178		Distributions from unconsolidated joint ventures	40,062		21,341
Contributions to unconsolidated joint ventures	Contributions to unconsolidated joint ventures	(56,577)		(100,618)		Contributions to unconsolidated joint ventures	(19,422)		(25,673)

Proceeds from collection of receivable in connection with sale of joint venture property						Proceeds from collection of receivable in connection with sale of joint venture property	21,000		—
Proceeds from sale of assets	Proceeds from sale of assets	323,018		16,315		Proceeds from sale of assets	26,085		100,334
Net cash provided by (used in) investing activities		256,124		(122,798)
Net cash provided by investing activities						Net cash provided by investing activities	46,954		73,739

Table of Contents


THE MACERICH COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Dollars in thousands) (Unaudited)	THE MACERICH COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Dollars in thousands) (Unaudited)					THE MACERICH COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) (Dollars in thousands) (Unaudited)
		For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2021		2020			2022		2021
Cash flows from financing activities:	Cash flows from financing activities:					Cash flows from financing activities:
Proceeds from mortgages, bank and other notes payable		495,000		660,000

Payments on mortgages, bank and other notes payable	Payments on mortgages, bank and other notes payable	(1,973,668)		(20,830)		Payments on mortgages, bank and other notes payable	(53,237)		(23,986)

Deferred financing costs	Deferred financing costs	(22,813)		(2,582)		Deferred financing costs	—		(3,472)
Proceeds from finance lease		—		4,115

Payments on finance leases	Payments on finance leases	(1,848)		(1,534)		Payments on finance leases	(571)		(552)

Net proceeds from stock offerings		829,874		—
Net (costs) proceeds from stock offerings						Net (costs) proceeds from stock offerings	(70)		597,007

Proceeds from share and unit-based plans		595		852

Redemption of noncontrolling interests	Redemption of noncontrolling interests	(60)		(28)		Redemption of noncontrolling interests	—		(1)
Contribution from noncontrolling interests	Contribution from noncontrolling interests	128		450		Contribution from noncontrolling interests	—		125

Dividends and distributions	Dividends and distributions	(104,514)		(155,187)		Dividends and distributions	(41,314)		(26,670)
Net cash (used in) provided by financing activities	Net cash (used in) provided by financing activities	(777,306)		485,256		Net cash (used in) provided by financing activities	(95,192)		542,451
Net (decrease) increase in cash, cash equivalents and restricted cash		(309,549)		427,585
Net increase in cash, cash equivalents and restricted cash						Net increase in cash, cash equivalents and restricted cash	17,206		668,409
Cash, cash equivalents and restricted cash, beginning of period	Cash, cash equivalents and restricted cash, beginning of period	482,659		114,216		Cash, cash equivalents and restricted cash, beginning of period	166,971		482,659
Cash, cash equivalents and restricted cash, end of period	Cash, cash equivalents and restricted cash, end of period	$	173,110	$	541,801	Cash, cash equivalents and restricted cash, end of period	$	184,177	$	1,151,068
Supplemental cash flow information:	Supplemental cash flow information:					Supplemental cash flow information:
Cash payments for interest, net of amounts capitalized	Cash payments for interest, net of amounts capitalized	$	161,474	$	137,992	Cash payments for interest, net of amounts capitalized	$	46,463	$	61,041
Non-cash investing and financing transactions:	Non-cash investing and financing transactions:					Non-cash investing and financing transactions:
Accrued development costs included in accounts payable and accrued expenses and other accrued liabilities	Accrued development costs included in accounts payable and accrued expenses and other accrued liabilities	$	18,281	$	18,549	Accrued development costs included in accounts payable and accrued expenses and other accrued liabilities	$	18,881	$	25,248

Conversion of Operating Partnership Units to common stock	Conversion of Operating Partnership Units to common stock	$	22,218	$	12,086	Conversion of Operating Partnership Units to common stock	$	—	$	22,218
Accrued receivable of net proceeds from stock offering						Accrued receivable of net proceeds from stock offering	$	—	$	41,137
Lease liabilities recorded in connection with right-of-use assets						Lease liabilities recorded in connection with right-of-use assets	$	24,929	$	—

The accompanying notes are an integral part of these consolidated financial statements.

THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

1. Organization:

The Macerich Company (the "Company") is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional town centers and community/power shopping centers (the "Centers") located throughout the United States.

The Company commenced operations effective with the completion of its initial public offering on March 16, 1994. As of ~~September 30, 2021,~~March 31, 2022, the Company was the sole general partner of and held a 96% ownership interest in The Macerich Partnership, L.P. (the "Operating Partnership"). The Company was organized to qualify as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986, as amended (the "Code").

The property management, leasing and redevelopment of the Company's portfolio is provided by the Company's management companies, Macerich Property Management Company, LLC, a single member Delaware limited liability company, Macerich Management Company, a California corporation, Macerich Arizona Partners LLC, a single member Arizona limited liability company, Macerich Arizona Management LLC, a single member Delaware limited liability company, Macerich Partners of Colorado LLC, a single member Colorado limited liability company, MACW Mall Management, Inc., a New York corporation, and MACW Property Management, LLC, a single member New York limited liability company. All 7 of the management companies are collectively referred to herein as the "Management Companies."

All references to the Company in this Quarterly Report on Form 10-Q include the Company, those entities owned or controlled by the Company and predecessors of the Company, unless the context indicates otherwise.

2. Summary of Significant Accounting Policies:

Basis of Presentation:

The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements and have not been audited by an independent registered public accounting firm.

The Company's sole significant asset is its investment in the Operating Partnership and as a result, substantially all of the Company's assets and liabilities represent the assets and liabilities of the Operating Partnership. In addition, the Operating Partnership has investments in a number of consolidated variable interest entities ("VIEs"), including Fashion District Philadelphia and SanTan Village Regional Center.

The Operating Partnership's consolidated VIEs included the following assets and liabilities:


		September 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Assets:	Assets:					Assets:
Property, net	Property, net	$	463,949	$	551,062	Property, net	$	453,841	$	458,964
Other assets	Other assets	84,510		97,713		Other assets	86,961		83,685
Total assets	Total assets	$	548,459	$	648,775	Total assets	$	540,802	$	542,649
Liabilities:	Liabilities:					Liabilities:
Mortgage notes payable	Mortgage notes payable	$	413,902	$	420,233	Mortgage notes payable	$	413,948	$	413,925
Other liabilities	Other liabilities	59,240		81,266		Other liabilities	56,829		56,947
Total liabilities	Total liabilities	$	473,142	$	501,499	Total liabilities	$	470,777	$	470,872

All intercompany accounts and transactions have been eliminated in the consolidated financial statements.

109

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THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

2. Summary of Significant Accounting Policies: (Continued)

The unaudited interim consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2020.~~2021. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the consolidated financial statements for the interim periods have been made. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The accompanying consolidated balance sheet as of December 31, ~~2020~~2021 has been derived from the audited financial statements but does not include all disclosures required by GAAP. The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported on the Company's consolidated balance sheets to the totals shown on its consolidated statements of cash flows:


		For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2021		2020			2022		2021
Beginning of period	Beginning of period					Beginning of period
Cash and cash equivalents	Cash and cash equivalents	$	465,297	$	100,005	Cash and cash equivalents	$	112,454	$	465,297
Restricted cash	Restricted cash	17,362		14,211		Restricted cash	54,517		17,362
Cash, cash equivalents and restricted cash	Cash, cash equivalents and restricted cash	$	482,659	$	114,216	Cash, cash equivalents and restricted cash	$	166,971	$	482,659
End of period	End of period					End of period
Cash and cash equivalents	Cash and cash equivalents	$	117,596	$	528,431	Cash and cash equivalents	$	128,244	$	1,083,813
Restricted cash	Restricted cash	55,514		13,370		Restricted cash	55,933		67,255
Cash, cash equivalents and restricted cash	Cash, cash equivalents and restricted cash	$	173,110	$	541,801	Cash, cash equivalents and restricted cash	$	184,177	$	1,151,068

COVID-19 Pandemic:

In March 2020, the COVID-19 outbreak was declared a pandemic by the World Health Organization. As a result, all of the markets that the Company operates in were subject to stay-at-home orders, and the majority of its properties were temporarily closed in part or completely. Following staggered re-openings during 2020, all Centers have been open and operating since October 7, 2020 and government-imposed capacity restrictions resulting from COVID-19 have been essentially eliminated across the Company’s markets.

COVID-19 Lease Accounting:

In April 2020, the Financial Accounting Standards Board issued a Staff Question-and-Answer (“Q&A”) to clarify whether lease concessions related to the effects of COVID-19 require the application of the lease modification guidance under Accounting Standards Codification ("ASC") 842, "Leases" ("the lease modification accounting framework"). Under ASC 842, the Company would have to determine, on a lease-by-lease basis, if a lease concession was the result of a new arrangement reached with the tenant or an enforceable right and obligation within the existing lease. The Q&A allows for the bypass of a lease-by-lease analysis, and allows the Company to elect to either apply the lease modification accounting framework or not to all of its lease concessions with similar characteristics and circumstances. The Company has elected to apply the lease modification accounting framework to lease concessions that include the abatement of rent in its consolidated financial statements for the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 and ~~2020.~~2021.

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THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

3. Earnings Per Share ("EPS"):

The following table reconciles the numerator and denominator used in the computation of EPS for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ (shares in thousands):


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2021		2020		2021		2020				2022		2021
Numerator	Numerator									Numerator
Net income (loss)		$	112,959	$	(22,622)	$	41,167	$	(40,618)
Less net income (loss) attributable to noncontrolling interests		6,257		(431)		9,834		(833)
Net income (loss) attributable to the Company		106,702		(22,191)		31,333		(39,785)
Net loss										Net loss		$	(37,354)	$	(67,730)
Less: net loss attributable to noncontrolling interests										Less: net loss attributable to noncontrolling interests		(172)		(4,126)
Net loss attributable to the Company										Net loss attributable to the Company		(37,182)		(63,604)
Allocation of earnings to participating securities	Allocation of earnings to participating securities	(290)		(215)		(641)		(834)		Allocation of earnings to participating securities		(223)		(214)
Numerator for basic and diluted EPS—net income (loss) attributable to common stockholders		$	106,412	$	(22,406)	$	30,692	$	(40,619)
Numerator for basic and diluted EPS—net loss attributable to common stockholders										Numerator for basic and diluted EPS—net loss attributable to common stockholders		$	(37,405)	$	(63,818)
Denominator	Denominator									Denominator

Denominator for basic and diluted EPS—weighted average number of common shares outstanding(1)	Denominator for basic and diluted EPS—weighted average number of common shares outstanding(1)	213,214		149,626		192,717		145,071		Denominator for basic and diluted EPS—weighted average number of common shares outstanding(1)		214,819		158,580
EPS—net income (loss) attributable to common stockholders
EPS—net loss attributable to common stockholders										EPS—net loss attributable to common stockholders
Basic and diluted	Basic and diluted	$	0.50	$	(0.15)	$	0.16	$	(0.28)	Basic and diluted		$	(0.17)	$	(0.40)

(1) Diluted EPS excludes ~~101,799~~99,565 and 103,235 ~~for the three months ended September 30, 2021 and 2020, respectively, and 102,751 and 96,144~~ convertible preferred partnership units for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively, as their impact was antidilutive. Diluted EPS also excludes ~~9,818,917~~8,681,751 and ~~10,883,761~~10,855,707 Operating Partnership units ("OP Units") for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively, and 10,160,575 and 10,622,971 OP Units for the nine months ended September 30, 2021 and 2020,~~ respectively, as their impact was antidilutive.

4. Investments in Unconsolidated Joint Ventures:

The Company has made the following recent financings or other events of its unconsolidated joint ventures:

On November 17, 2020, the Company’s joint venture in Tysons VITA, the residential tower at Tysons Corner Center, placed a new $95,000 loan on the property that bears interest at an effective rate of 3.43% and matures on December 1, 2030. Initial loan funding for the Company’s joint venture was $90,000 with future advance potential of up to $5,000. The Company used its share of the initial proceeds of $45,000 for general corporate purposes.

On December 10, 2020, the Company made a loan (the “Partnership Loan”) to the Company’s joint venture in Fashion District Philadelphia to fund the entirety of a $100,000 repayment to reduce the mortgage loan on Fashion District Philadelphia from $301,000 to $201,000. This mortgage loan now matures on January 22, 2024, including a one-year extension option, and bears interest at LIBOR plus 3.5%, with a LIBOR floor of 0.50%. The partnership agreement for the joint venture was amended in connection with the Partnership Loan, and pursuant to the amended agreement, the Partnership Loan plus 15% accrued interest must be repaid prior to the resumption of 50/50 cash distributions to the Company and its joint venture partner. As a result of the substantive participation rights of the Company’s joint venture partner being terminated in the amended agreement, the Company determined that the joint venture is a VIE and the Company is the primary beneficiary. Effective December 10, 2020, the Company has consolidated the results of the joint venture into the consolidated financial statements of the Company.

On December 29, 2020, the Company’s joint venture in FlatIron Crossing closed on a one-year maturity date extension for the existing loan to January 5, 2022. The interest rate increased from 3.85% to 4.10%, and the Company’s joint venture repaid $15,000, $7,650 at the Company's pro rata share, of the outstanding loan balance at closing. The Company's joint venture is planning to refinance this loan prior to maturity.

On December 31, 2020, the Company and its joint venture partner in MS Portfolio LLC entered into a distribution agreement. The joint venture owned 9 properties, including the former Sears parcels at the South Plains Mall and the

~~Table of Contents~~

~~THE MACERICH COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(Dollars in thousands, except per share and square foot amounts)~~

~~(Unaudited)~~

~~4. Investments in Unconsolidated Joint Ventures: (Continued)~~

Arrowhead Towne Center. The joint venture distributed the former Sears parcel at South Plains Mall to the Company and the former Sears parcel at Arrowhead Towne Center to the joint venture partner. The joint venture partners agreed that the distributed properties were of equal value. The Company now owns 100% of the former Sears parcel at South Plains Mall. Effective December 31, 2020, the Company consolidated its 100% interest in the Sears parcel at South Plains Mall in its consolidated financial statements.

On March 29, 2021, concurrent with the sale of Paradise Valley Mall (see Note 15 – Dispositions), the Company elected to reinvest into the newly formed joint venture at a 5% ownership interest for $3,819 in cash that is accounted for under the equity method of accounting.

On October 26, 2021, the Company's joint venture in The Shops at Atlas Park replaced the existing loan on the property with a new $65,000 loan that bears interest at a floating rate of LIBOR plus 4.15% and matures on November 9, 2026, including extension options. The loan is covered by an interest rate cap agreement that effectively prevents LIBOR from exceeding 3.0% through November 7, 2023.

On December 31, 2021, the Company assigned its joint venture interest in The Shops at North Bridge in Chicago, Illinois to its partner in the joint venture. The assignment included the assumption by the joint venture partner of the Company’s share of the debt owed by the joint venture and no cash consideration was received by the Company. The Company recognized a loss of approximately $28,276 in connection with the assignment.

On December 31, 2021, the Company sold its joint venture interest in the undeveloped property at 443 North Wabash Avenue in Chicago, Illinois to its partner in the joint venture for $21,000. The Company recognized an immaterial gain in connection with the sale.

On February 2, 2022, the Company’s joint venture in FlatIron Crossing replaced the existing $197,011 loan on the property with a new $175,000 loan that bears interest at the Secured Overnight Financing Rate ("SOFR") plus 3.70% and matures on February 9, 2025, including extension options. The loan is covered by an interest rate cap agreement that effectively prevents SOFR from exceeding 4.0% through February 15, 2024.

THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

4. Investments in Unconsolidated Joint Ventures: (Continued)

For the three months ended March 31, 2022, the Company’s joint venture with Seritage Growth Properties (“MS Portfolio LLC”) recorded an impairment loss as a result of shortening the holding periods on certain assets in the joint venture. The Company’s share of the loss was $30,426.

Combined and condensed balance sheets and statements of operations are presented below for all unconsolidated joint ventures.

Combined and Condensed Balance Sheets of Unconsolidated Joint Ventures:


		September 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Assets(1):	Assets(1):					Assets(1):
Property, net	Property, net	$	8,782,003	$	8,721,551	Property, net	$	8,285,434	$	8,289,412
Other assets	Other assets	806,699		774,583		Other assets	734,076		750,629
Total assets	Total assets	$	9,588,702	$	9,496,134	Total assets	$	9,019,510	$	9,040,041
Liabilities and partners' capital(1):	Liabilities and partners' capital(1):					Liabilities and partners' capital(1):
Mortgage and other notes payable	Mortgage and other notes payable	$	6,056,358	$	5,942,478	Mortgage and other notes payable	$	5,650,351	$	5,686,500
Other liabilities	Other liabilities	399,011		397,483		Other liabilities	416,675		325,115
Company's capital	Company's capital	1,693,844		1,711,944		Company's capital	1,579,559		1,638,112
Outside partners' capital	Outside partners' capital	1,439,489		1,444,229		Outside partners' capital	1,372,925		1,390,314
Total liabilities and partners' capital	Total liabilities and partners' capital	$	9,588,702	$	9,496,134	Total liabilities and partners' capital	$	9,019,510	$	9,040,041
Investments in unconsolidated joint ventures:	Investments in unconsolidated joint ventures:					Investments in unconsolidated joint ventures:
Company's capital	Company's capital	$	1,693,844	$	1,711,944	Company's capital	$	1,579,559	$	1,638,112
Basis adjustment(2)	Basis adjustment(2)	(457,992)		(479,678)		Basis adjustment(2)	(446,825)		(448,149)
		$	1,235,852	$	1,232,266		$	1,132,734	$	1,189,963

Assets—Investments in unconsolidated joint ventures	Assets—Investments in unconsolidated joint ventures	$	1,365,369	$	1,340,647	Assets—Investments in unconsolidated joint ventures	$	1,263,252	$	1,317,571
Liabilities—Distributions in excess of investments in unconsolidated joint ventures	Liabilities—Distributions in excess of investments in unconsolidated joint ventures	(129,517)		(108,381)		Liabilities—Distributions in excess of investments in unconsolidated joint ventures	(130,518)		(127,608)
		$	1,235,852	$	1,232,266		$	1,132,734	$	1,189,963

(1) These amounts include assets of ~~$2,804,711~~$2,747,217 and ~~$2,857,757~~$2,789,568 of Pacific Premier Retail LLC (the "PPR Portfolio") as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively, and liabilities of ~~$1,671,469~~$1,653,762 and ~~$1,687,042~~$1,661,110 of the PPR Portfolio as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

(2) The Company amortizes the difference between the cost of its investments in unconsolidated joint ventures and the book value of the underlying equity into income on a straight-line basis consistent with the lives of the underlying assets. The amortization of this difference was ~~$2,768~~$2,575 and ~~$3,361~~$2,243 for thethree months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively, and $7,431 and $11,089 for the nine months ended September 30, 2021 and 2020,~~ respectively.

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THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

4. Investments in Unconsolidated Joint Ventures: (Continued)

Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures:

PPR Portfolio Other
Joint
Ventures Total
Three Months Ended September 30, 2021
Revenues:
Leasing revenue $ 44,304 $ 160,044 $ 204,348
Other 14 6,658 6,672
Total revenues 44,318 166,702 211,020
Expenses:
Shopping center and operating expenses 10,078 67,627 77,705
Leasing expenses 332 963 1,295
Interest expense 15,801 36,483 52,284
Depreciation and amortization 24,154 61,734 85,888
Total expenses 50,365 166,807 217,172
Gain on sale or write down of assets, net — 762 762
Net (loss) income $ (6,047) $ 657 $ (5,390)
Company's equity in net loss $ (1,390) $ (343) $ (1,733)
Three Months Ended September 30, 2020
Revenues:
Leasing revenue $ 36,043 $ 155,133 $ 191,176
Other 257 5,671 5,928
Total revenues 36,300 160,804 197,104
Expenses:
Shopping center and operating expenses 9,678 61,457 71,135
Leasing expenses 266 877 1,143
Interest expense 16,267 37,805 54,072
Depreciation and amortization 24,819 73,884 98,703
Total expenses 51,030 174,023 225,053
(Loss) gain on sale or write down of assets, net (120) 4 (116)
Net loss $ (14,850) $ (13,215) $ (28,065)
Company's equity in net loss $ (6,511) $ (6,002) $ (12,513)

~~Table of Contents~~

~~THE MACERICH COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(Dollars in thousands, except per share and square foot amounts)~~

~~(Unaudited)~~

~~4. Investments in Unconsolidated Joint Ventures: (Continued)~~


		PPR Portfolio		Other Joint Ventures		Total			PPR Portfolio		Other Joint Ventures		Total
Nine Months Ended September 30, 2021
Three Months Ended March 31, 2022								Three Months Ended March 31, 2022
Revenues:								Revenues:
Leasing revenue								Leasing revenue	$	43,850	$	155,166	$	199,016
Other								Other	63		7,340		7,403
Total revenues								Total revenues	43,913		162,506		206,419
Expenses:								Expenses:
Shopping center and operating expenses								Shopping center and operating expenses	10,719		57,865		68,584
Leasing expenses								Leasing expenses	469		1,321		1,790
Interest expense								Interest expense	15,372		35,746		51,118
Depreciation and amortization								Depreciation and amortization	24,276		65,177		89,453
Total expenses								Total expenses	50,836		160,109		210,945
Loss on sale or write down of assets, net								Loss on sale or write down of assets, net	—		(58,691)		(58,691)

Net loss								Net loss	$	(6,923)	$	(56,294)	$	(63,217)
Company's equity in net loss								Company's equity in net loss	$	(1,792)	$	(27,305)	$	(29,097)
Three Months Ended March 31, 2021								Three Months Ended March 31, 2021
Revenues:	Revenues:							Revenues:
Leasing revenue	Leasing revenue	$	122,311	$	459,826	$	582,137	Leasing revenue	$	36,771	$	149,319	$	186,090
Other	Other	144		56,508		56,652		Other	94		16,965		17,059
Total revenues	Total revenues	122,455		516,334		638,789		Total revenues	36,865		166,284		203,149
Expenses:	Expenses:							Expenses:
Shopping center and operating expenses	Shopping center and operating expenses	29,339		183,013		212,352		Shopping center and operating expenses	9,365		58,842		68,207
Leasing expenses	Leasing expenses	1,106		3,423		4,529		Leasing expenses	403		1,353		1,756
Interest expense	Interest expense	47,438		110,586		158,024		Interest expense	15,803		37,213		53,016
Depreciation and amortization	Depreciation and amortization	73,042		192,149		265,191		Depreciation and amortization	24,307		66,540		90,847
Total expenses	Total expenses	150,925		489,171		640,096		Total expenses	49,878		163,948		213,826
Gain on sale or write down of assets, net	Gain on sale or write down of assets, net	—		581		581		Gain on sale or write down of assets, net	—		54		54

Net (loss) income	Net (loss) income	$	(28,470)	$	27,744	$	(726)	Net (loss) income	$	(13,013)	$	2,390	$	(10,623)
Company's equity in net (loss) income	Company's equity in net (loss) income	$	(10,269)	$	30,481	$	20,212	Company's equity in net (loss) income	$	(5,507)	$	7,417	$	1,910
Nine Months Ended September 30, 2020
Revenues:
Leasing revenue		$	133,226	$	466,830	$	600,056
Other		559		12,162		12,721
Total revenues		133,785		478,992		612,777
Expenses:
Shopping center and operating expenses		27,562		176,119		203,681
Leasing expenses		1,031		3,002		4,033
Interest expense		48,724		112,736		161,460
Depreciation and amortization		78,000		208,341		286,341
Total expenses		155,317		500,198		655,515
Loss on sale or write down of assets, net		(120)		(9)		(129)

Net loss		$	(21,652)	$	(21,215)	$	(42,867)
Company's equity in net loss		$	(5,510)	$	(11,478)	$	(16,988)

Significant accounting policies used by the unconsolidated joint ventures are similar to those used by the Company.

1513

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THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

5. Derivative Instruments and Hedging Activities:

The Company uses an interest rate cap ~~and 4 interest rate swap agreements~~agreement to manage the interest rate risk ~~of its~~on certain floating rate debt. The Company recorded other comprehensive income ~~(loss)~~ related to the marking-to-market of derivative instruments of ~~$2,775~~$31 and ~~$2,812~~$2,694 for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively, and $8,208 and $(1,838) for the nine months ended September 30, 2021 and 2020,~~ respectively.

The following ~~derivatives were~~derivative was outstanding at ~~September 30, 2021:~~March 31, 2022:
Fair Value
Property Notional Amount Product LIBOR Rate Maturity September 30,
2021 December 31,
2020
Santa Monica Place(1) $ 300,000 Cap 4.00 % 12/9/2021 $ — $ —
The Macerich Partnership, L.P.(1) $ 400,000 Swaps 2.85 % 9/30/2021 $ — $ (8,208)

(1) On April 14, 2021, the Company entered into a new credit facility to replace the existing credit facility (See Note 11 - Bank and Other Notes Payable). Concurrent with entering into the new credit facility, the Company de-designated the Santa Monica Place $300,000 interest rate cap. As a result of the new credit facility and the Santa Monica Place cap de-designation, the notional amounts of the swaps that were previously hedged against the Company’s prior revolving line of credit are now hedged against the Santa Monica Place floating rate debt and a portion of the Green Acres Commons floating rate debt effectively converting the Santa Monica Place loan and a majority of the Green Acres Commons loan to fixed rate debt through September 30, 2021. The Company did not renew the swaps that expired on September 30, 2021 and, as a result, on October 1, 2021, these loans reverted back to floating interest rate loans (See Note 10 – Mortgage Payable).


							Fair Value
Property	Notional Amount		Product	LIBOR Rate		Maturity	March 31, 2022		December 31, 2021
Santa Monica Place	$	300,000	Cap	4.00	%	12/9/2022	$	27	$	6

The above ~~derivatives were~~derivative was valued with an aggregate fair value (Level 2 measurement) and ~~were~~was included in other accrued liabilities. The fair value of the Company's interest rate ~~derivatives~~derivative was determined using discounted cash flow analysis on the expected cash flows of ~~each~~the derivative. This analysis reflects the contractual terms of the ~~derivatives,~~derivative, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements.

Although the Company has determined that the majority of the inputs used to value its ~~derivatives~~derivative fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and its counterparties. The Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its interest rate swap. As a result, the Company determined that its interest rate cap ~~and swap valuations~~valuation in ~~their~~its entirety ~~are~~is classified in Level 2 of the fair value hierarchy.

6. Property, net:

Property, net consists of the following:


	March 31, 2022		December 31, 2021
Land	$	1,433,989	$	1,441,858
Buildings and improvements	6,341,408		6,306,764
Tenant improvements	690,166		685,242
Equipment and furnishings(1)	190,498		191,266
Construction in progress	191,208		222,420
	8,847,269		8,847,550
Less accumulated depreciation(1)	(2,623,285)		(2,563,344)
	$	6,223,984	$	6,284,206

(1) Equipment and furnishings and accumulated depreciation include the cost and accumulated amortization of ROU assets in connection with finance leases at March 31, 2022 and December 31, 2021 (See Note 8—Leases).

Depreciation expense was $67,786 and $71,664 for the three months ended March 31, 2022 and 2021, respectively.

1614

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THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

6. Property, net: (Continued)

~~Property, net consists of the following:~~

September 30,
2021 December 31,
2020
Land $ 1,440,383 $ 1,538,270
Buildings and improvements 6,312,458 6,620,708
Tenant improvements 680,047 750,250
Equipment and furnishings(1) 188,960 194,231
Construction in progress 226,246 153,253
8,848,094 9,256,712
Less accumulated depreciation(1) (2,517,703) (2,562,133)
$ 6,330,391 $ 6,694,579

(1) Equipment and furnishings and accumulated depreciation include the cost and accumulated amortization of ROU assets in connection with finance leases at September 30, 2021 and December 31, 2020 (See Note 8—Leases).

Depreciation expense was $68,715 and $71,250 for the three months ended September 30, 2021 and 2020, respectively, and $211,139 and $216,455 for the nine months ended September 30, 2021 and 2020, respectively.

Gain (loss) on sale or write-down of assets, net for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ consist of the following:


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2021		2020		2021		2020				2022		2021

Gain on property sales, net(1)	Gain on property sales, net(1)	$	118,471	$	856	$	111,805	$	856	Gain on property sales, net(1)		$	—	$	4,229
Loss on write-down of assets(2)	Loss on write-down of assets(2)	—		(2,361)		(38,362)		(42,971)		Loss on write-down of assets(2)		(8,629)		(29,608)

Gain on land sales, net~~(3)~~	Gain on land sales, net~~(3)~~	95		13,291		19,913		13,331		Gain on land sales, net~~(3)~~		15,082		4,096
		$	118,566	$	11,786	$	93,356	$	(28,784)			$	6,453	$	(21,283)

(1) Includes ~~$117,242 and~~ $4,229 of gain related to the sale of ~~La Encantada and~~ Paradise Valley Mall ~~respectively~~ (See Note 15-Dispositions).

(2) Includes impairment loss of $5,492 relating to the Company's investment in MS Portfolio LLC (See Note 4-Investments in Unconsolidated Joint Ventures) during the three months ended March 31, 2022 and impairment loss of $27,281 on Estrella Falls during the ~~nine~~three months ended ~~September 30, 2021 and impairment losses of $30,063 on Wilton Mall and $6,640 on Paradise Valley Mall during the nine months ended September 30, 2020.~~March 31, 2021. The impairment losses were due to the reduction of the estimated holding periods of the properties. The remaining amounts for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 mainly pertain to the write off of development costs.

~~(3) Includes $1,334 related to the sale of Paradise Valley Mall (See Note 15-Dispositions).~~

The following table summarizes certain of the Company's assets that were measured on a nonrecurring basis as a result of the impairment losses recorded for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ as described above:
Total Fair Value Measurement Quoted Prices in Active Markets for Identical Assets Significant Other Unobservable Inputs Significant Unobservable Inputs
(Level 1) (Level 2) (Level 3)
September 30, 2020 $ 140,000 $ — $ 140,000 $ —
September 30, 2021 $ 4,720 $ — $ 4,720 $ —


	Total Fair Value Measurement		Quoted Prices in Active Markets for Identical Assets		Significant Other Unobservable Inputs		Significant Unobservable Inputs
			(Level 1)		(Level 2)		(Level 3)

March 31, 2022	$	830	$	—	$	830	$	—

The fair values relating to the ~~2020 impairments and a portion of the 2021 impairments were~~2022 impairment was based on a sales ~~contracts~~contract and ~~are~~is classified within Level 2 of the fair value hierarchy.

~~Table of Contents~~

~~THE MACERICH COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(Dollars in thousands, except per share and square foot amounts)~~

~~(Unaudited)~~

7. Tenant and Other Receivables, net:

Included in tenant and other receivables, net is an allowance for doubtful accounts of ~~$20,477~~$13,899 and ~~$37,545~~$14,917 at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively. Also included in tenant and other receivables, net are accrued percentage rents of ~~$6,287~~$3,725 and ~~$4,673~~$19,907 at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively, and a deferred rent receivable due to straight-line rent adjustments of ~~$113,346~~$108,926 and ~~$107,003~~$110,969 at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

8. Leases:

Lessor Leases:

The Company leases its Centers under agreements that are classified as operating leases. These leases generally include minimum rents, percentage rents and recoveries of real estate taxes, insurance and other shopping center operating expenses. Minimum rental revenues are recognized on a straight-line basis over the terms of the related leases. Percentage rents are recognized and accrued when tenants' specified sales targets have been met. Estimated recoveries from certain tenants for their pro rata share of real estate taxes, insurance and other shopping center operating expenses are recognized as revenues in the period the applicable expenses are incurred. Other tenants pay a fixed rate and these tenant recoveries are recognized as revenues on a straight-line basis over the term of the related leases. For leasing revenues in which collectability is not considered probable, lease income is recognized on a cash basis and all previously recognized tenant accounts receivables, including straight-line rent, are fully reserved in the period in which the lease income is determined not to be probable of collection.

~~The following table summarizes the components of leasing revenue for the three and nine months ended September 30, 2021 and 2020:~~

For the Three Months Ended September 30, For the Nine Months Ended September 30,
2021 2020 2021 2020
Leasing revenue—fixed payments $ 132,789 $ 138,843 $ 395,796 $ 455,925
Leasing revenue—variable payments 65,984 47,220 173,592 138,304
(Provision for) recovery of doubtful accounts, net (1,638) (10,557) 4,269 (39,248)
$ 197,135 $ 175,506 $ 573,657 $ 554,981

~~The following table summarizes the future rental payments to the Company:~~

Twelve months ending September 30,
2022 $ 376,459
2023 334,825
2024 281,610
2025 230,173
2026 184,369
Thereafter 529,860
$ 1,937,296

1815

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THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

8. Leases: (Continued)

The following table summarizes the components of leasing revenue for the three months ended March 31, 2022 and 2021:


	For the Three Months Ended March 31,
		2022		2021
Leasing revenue—fixed payments		$	135,209	$	131,495
Leasing revenue—variable payments		68,770		51,248
Provision for doubtful accounts, net		(567)		(3,208)
		$	203,412	$	179,535

The following table summarizes the future rental payments to the Company:


Twelve months ending March 31,
2023	$	366,783
2024	322,512
2025	262,720
2026	214,103
2027	165,702
Thereafter	473,307
	$	1,805,127

Lessee Leases:

The Company has certain properties that are subject to non-cancelable operating leases. The leases expire at various times through 2098, subject in some cases to options to extend the terms of the lease. Certain leases provide for contingent rent payments based on a percentage of base rental income, as defined in the lease. In addition, the Company has 5 finance leases that expire at various times through 2024.

The following table summarizes the lease costs for the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 and ~~2020:~~2021:


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2021		2020		2021		2020				2022		2021
Operating lease costs	Operating lease costs	$	3,398	$	3,788	$	11,027	$	11,427	Operating lease costs		$	3,775	$	3,815
Finance lease costs:	Finance lease costs:									Finance lease costs:
Amortization of ROU assets	Amortization of ROU assets	480		477		1,436		1,428		Amortization of ROU assets		481		478
Interest on lease liabilities	Interest on lease liabilities	117		131		460		415		Interest on lease liabilities		194		219
		$	3,995	$	4,396	$	12,923	$	13,270			$	4,450	$	4,512

Table of Contents

THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

8. Leases: (Continued)

The following table summarizes the future rental payments required under the leases:


		September 30, 2021						December 31, 2020							March 31, 2022						December 31, 2021
Year ending December 31,	Year ending December 31,	Operating Leases			Finance Leases			Operating Leases			Finance Leases			Year ending December 31,	Operating Leases			Finance Leases			Operating Leases			Finance Leases
2021		$	3,937		$	2,450		$	14,695		$	10,785
2022		14,302			4,461			14,558			2,762
2023	2023	8,452			2,043			8,746			344			2023	$	11,352		$	4,461		$	14,302		$	4,461
2024	2024	6,471			9,072			6,759			3,085			2024	11,876			2,043			8,452			2,043
2025	2025	6,513			—			6,796			—			2025	11,054			9,072			6,471			9,072
2026														2026	11,231			—			6,513			—
2027														2027	11,343			—			6,470			—
Thereafter	Thereafter	115,828			—			116,660			—			Thereafter	120,534			—			109,358			—
Total undiscounted rental payments	Total undiscounted rental payments	155,503			18,026			168,214			16,976			Total undiscounted rental payments	177,390			15,576			151,566			15,576
Less imputed interest	Less imputed interest	(86,576)			(3,497)			(94,375)			(599)			Less imputed interest	(90,111)			(1,619)			(85,383)			(1,048)
Total lease liabilities	Total lease liabilities	$	68,927		$	14,529		$	73,839		$	16,377		Total lease liabilities	$	87,279		$	13,957		$	66,183		$	14,528
Weighted average remaining term	Weighted average remaining term	35.9 years			2.4 years			34.5 years			1.1 years			Weighted average remaining term	32.0 years			1.9 years			36.3 years			2.1 years
Weighted average incremental borrowing rate	Weighted average incremental borrowing rate	7.7		%	3.7		%	7.7		%	3.7		%	Weighted average incremental borrowing rate	7.3		%	3.7		%	7.8		%	3.7		%

9. Deferred Charges and Other Assets, net:

Deferred charges and other assets, net consist of the following:


	March 31, 2022		December 31, 2021
Leasing	$	112,670	$	134,887
Intangible assets:
In-place lease values	60,975		62,826
Leasing commissions and legal costs	16,433		16,710
Above-market leases	70,481		72,289
Deferred tax assets	22,020		23,406
Deferred compensation plan assets	63,051		68,807
Other assets	47,725		46,319
	393,355		425,244
Less accumulated amortization(1)	(150,465)		(170,336)
	$	242,890	$	254,908

(1) Accumulated amortization includes $43,517 and $43,978 relating to in-place lease values, leasing commissions and legal costs at March 31, 2022 and December 31, 2021, respectively. Amortization expense of in-place lease values, leasing commissions and legal costs was $1,667 and $2,203 for the three months ended March 31, 2022 and 2021, respectively.

1917

Table of Contents

THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

9. Deferred Charges and Other Assets, net: (Continued)

~~Deferred charges and other assets, net consist of the following:~~
September 30,
2021 December 31,
2020
Leasing $ 140,245 $ 162,652
Intangible assets:
In-place lease values 66,472 74,298
Leasing commissions and legal costs 17,810 21,096
Above-market leases 75,183 80,120
Deferred tax assets 21,315 30,767
Deferred compensation plan assets 62,658 62,874
Other assets 41,946 61,553
425,629 493,360
Less accumulated amortization(1) (173,608) (186,401)
$ 252,021 $ 306,959

(1) Accumulated amortization includes $44,358 and $47,249 relating to in-place lease values, leasing commissions and legal costs at September 30, 2021 and December 31, 2020, respectively. Amortization expense of in-place lease values, leasing commissions and legal costs was $2,262 and $1,930 for the three months ended September 30, 2021 and 2020, respectively, and $6,868 and $7,645 for the nine months ended September 30, 2021 and 2020, respectively.

The allocated values of above-market leases and below-market leases consist of the following:


		September 30, 2021		December 31, 2020			March 31, 2022		December 31, 2021
Above-Market Leases	Above-Market Leases					Above-Market Leases
Original allocated value	Original allocated value	$	75,183	$	80,120	Original allocated value	$	70,481	$	72,289
Less accumulated amortization	Less accumulated amortization	(33,426)		(33,271)		Less accumulated amortization	(32,259)		(32,484)
		$	41,757	$	46,849		$	38,222	$	39,805
Below-Market Leases(1)	Below-Market Leases(1)					Below-Market Leases(1)
Original allocated value	Original allocated value	$	101,152	$	114,790	Original allocated value	$	98,069	$	99,332
Less accumulated amortization	Less accumulated amortization	(36,665)		(43,656)		Less accumulated amortization	(38,084)		(37,122)
		$	64,487	$	71,134		$	59,985	$	62,210

(1) Below-market leases are included in other accrued liabilities.

~~Table of Contents~~

~~THE MACERICH COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(Dollars in thousands, except per share and square foot amounts)~~

~~(Unaudited)~~

10. Mortgage Notes Payable:

Mortgage notes payable at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 consist of the following:


		Carrying Amount of Mortgage Notes(1)										Carrying Amount of Mortgage Notes(1)
Property Pledged as Collateral	Property Pledged as Collateral	September 30, 2021		December 31, 2020		Effective Interest Rate(2)		Monthly Debt Service(3)		Maturity Date(4)	Property Pledged as Collateral	March 31, 2022		December 31, 2021		Effective Interest Rate(2)		Monthly Debt Service(3)		Maturity Date(4)
Chandler Fashion Center(5)	Chandler Fashion Center(5)	$	255,502	$	255,361	4.18	%	$	875	2024	Chandler Fashion Center(5)	$	255,595	$	255,548	4.18	%	$	875	2024
Danbury Fair Mall(6)	Danbury Fair Mall(6)	170,171		186,741		5.71	%	1,538		2022	Danbury Fair Mall(6)	165,873		168,037		5.71	%	1,538		2022
Fashion District Philadelphia	Fashion District Philadelphia	194,602		201,000		4.00	%	649		2024	Fashion District Philadelphia	194,602		194,602		4.00	%	649		2024
Fashion Outlets of Chicago	Fashion Outlets of Chicago	299,253		299,193		4.61	%	1,145		2031	Fashion Outlets of Chicago	299,294		299,274		4.61	%	1,145		2031
Fashion Outlets of Niagara Falls USA	Fashion Outlets of Niagara Falls USA	97,420		101,463		6.45	%	727		2023	Fashion Outlets of Niagara Falls USA	93,885		95,329		6.45	%	727		2023
Freehold Raceway Mall(5)	Freehold Raceway Mall(5)	398,671		398,545		3.94	%	1,300		2029	Freehold Raceway Mall(5)	398,753		398,711		3.94	%	1,300		2029
Fresno Fashion Fair	Fresno Fashion Fair	324,006		323,857		3.67	%	971		2026	Fresno Fashion Fair	324,106		324,056		3.67	%	971		2026
Green Acres Commons(7)	Green Acres Commons(7)	29,780		129,847		3.10	%	72		2023	Green Acres Commons(7)	124,971		124,875		3.25	%	311		2023
Green Acres Commons - Swapped(8)		95,000		—		5.60	%	444		2023
Green Acres Mall(9)		247,537		270,570		3.94	%	1,447		2023
Green Acres Mall(8)											Green Acres Mall(8)	244,073		246,061		3.94	%	1,447		2023
Kings Plaza Shopping Center	Kings Plaza Shopping Center	535,799		535,413		3.71	%	1,629		2030	Kings Plaza Shopping Center	536,056		535,928		3.71	%	1,629		2030
Oaks, The		178,071		183,108		4.14	%	1,064		2022
Pacific View		112,351		114,909		4.08	%	668		2022
Oaks, The(9)											Oaks, The(9)	175,356		176,721		4.14	%	1,064		2024
Pacific View(10)											Pacific View(10)	110,597		111,481		4.07	%	668		2032
Queens Center	Queens Center	600,000		600,000		3.49	%	1,744		2025	Queens Center	600,000		600,000		3.49	%	1,744		2025
Santa Monica Place - Swapped(10)		299,127		298,566		4.58	%	1,082		2022
Santa Monica Place(11)											Santa Monica Place(11)	299,501		299,314		2.12	%	468		2022
SanTan Village Regional Center	SanTan Village Regional Center	219,300		219,233		4.34	%	788		2029	SanTan Village Regional Center	219,346		219,323		4.34	%	788		2029
Towne Mall	Towne Mall	19,447		19,815		4.48	%	117		2022	Towne Mall	19,190		19,320		4.48	%	117		2022
Tucson La Encantada(11)		—		62,018		4.23	%	368		2022
Victor Valley, Mall of	Victor Valley, Mall of	114,835		114,791		4.00	%	380		2024	Victor Valley, Mall of	114,864		114,850		4.00	%	380		2024
Vintage Faire Mall	Vintage Faire Mall	241,715		246,380		3.55	%	1,256		2026	Vintage Faire Mall	238,495		240,124		3.55	%	1,256		2026
		$	4,432,587	$	4,560,810							$	4,414,557	$	4,423,554

(1)The mortgage notes payable also include unamortized deferred finance costs that are amortized into interest expense over the remaining term of the related debt in a manner that approximates the effective interest method. Unamortized deferred finance costs were ~~$13,640~~$10,706 and ~~$14,085~~$11,946 at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

(2)The interest rate disclosed represents the effective interest rate, including the impact of debt premium and deferred finance costs.

Table of Contents

THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

10. Mortgage Notes Payable: (Continued)

(3)The monthly debt service represents the payment of principal and interest.

(4)The maturity date assumes that all extension options are fully exercised and that the Company does not opt to refinance the debt prior to these dates. These extension options are at the Company's discretion, subject to certain conditions, which the Company believes will be met.

(5)A 49.9% interest in the loan has been assumed by a third party in connection with the Company's joint venture in Chandler Freehold (See Note 12—Financing Arrangement).

(6)On September 15, 2020, the Company closed on a loan extension agreement for Danbury Fair Mall. Under the extension agreement, the original loan maturity date of October 1, 2020 was extended to April 1, 2021 and subsequently to October 1, 2021. The loan amount and interest rate remained unchanged following these extensions. On September 15, 2021, the Company further extended the loan maturity to July 1, 2022. The interest rate remained unchanged, and the Company repaid $10,000 of the outstanding loan balance at closing.

(7)On March 25, 2021, the Company closed on a two-year extension of the loan to March 29, 2023. The interest rate is LIBOR plus 2.75% and the Company repaid $4,680 of the outstanding loan balance at closing.

(8)The loan includes an interest rate swap that effectively converts $95,000 of the outstanding balance to fixed rate debt through September 30, 2021, the expiration of the interest rate swap. This swap was previously hedged against the Company's prior revolving line of credit that was terminated in April 2021. The Company did not renew the swaps that expired on September 30, 2021 and, as a result, on October 1, 2021, this loan reverted back to a floating rate loan with an effective interest rate of 3.10% as of such date (See Note 5—Derivative Instruments and Hedging Activities).

~~Table of Contents~~

~~THE MACERICH COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(Dollars in thousands, except per share and square foot amounts)~~

~~(Unaudited)~~

~~10. Mortgage Notes Payable: (Continued)~~

~~(9)~~On January 22, 2021, the Company closed on a one-year extension of the loan to February 3, 2022, which also ~~includes~~included a one-year extension option to February 3, ~~2023.~~2023 which has been exercised. The interest rate remained unchanged, and the Company repaid $9,000 of the outstanding loan balance at closing.

~~(10)~~(9)~~The~~On May 6, 2022, the Company closed on a two-year extension of the loan ~~includes an~~to June 5, 2024 at a new fixed interest rate ~~swap that effectively converts $300,000~~of 5.25%. The Company repaid $5,000 of the outstanding loan balance toat closing.

(10)On April 29, 2022, the Company closed on a new $72,000 loan with a fixed rate ~~debt through September 30, 2021, the expiration~~ of ~~the interest rate swap. This swap was previously hedged against the Company's prior revolving line of credit~~5.29% that ~~was terminated in April 2021. The Company did not renew the swaps that expired~~matures on September 30, 2021 and, as a result, on October 1, 2021, this loan reverted back to a floating rate loan with an effective interest rate of 1.81% as of such date (See Note 5—Derivative Instruments and Hedging Activities).

May 6, 2032.

(11)~~On September 17, 2021,~~The loan bears interest at LIBOR plus 1.48%. The loan is covered by an interest rate cap agreement that effectively prevents LIBOR from exceeding 4.0% during the ~~Company sold Tucson La Encantada and the mortgage payable was paid off in full (See Note 15—Dispositions).~~period ending December 9, 2022.

Most of the mortgage loan agreements contain a prepayment penalty provision for the early extinguishment of the debt.

The Company's mortgage notes payable are secured by the properties on which they are placed and are non-recourse to the Company.

The Company expects that all loan maturities during the next twelve months will be refinanced, restructured, extended and/or paid off from the Company's line of credit or with cash on hand.

Total interest expense capitalized was ~~$3,102~~$1,851 and ~~$1,313~~$1,462 for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively, and $6,812 and $3,969 for the nine months ended September 30, 2021 and 2020,~~ respectively.

The estimated fair value (Level 2 measurement) of mortgage notes payable at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 was ~~$4,349,238~~$4,250,602 and ~~$4,459,797,~~$4,261,429, respectively, based on current interest rates for comparable loans. Fair value was determined using a present value model and an interest rate that included a credit value adjustment based on the estimated value of the property that serves as collateral for the underlying debt.

11. Bank and Other Notes Payable:

Bank and other notes payable consist of the following:

Credit Facility:

On April 14, 2021, the Company terminated its existing credit facility and entered into a new credit agreement, which provides for an aggregate $700,000 facility, including a $525,000 revolving loan facility that matures on April 14, 2023, with a one-year extension option, and a $175,000 term loan facility that matures on April 14, 2024. The revolving loan facility can be expanded up to $800,000, subject to receipt of lender commitments and other conditions. Concurrently with entering into the new credit agreement, the Company drew the $175,000 term loan facility in its entirety and drew $320,000 of the amount available under the revolving loan facility. Simultaneously with entering into the new credit agreement, the Company repaid $985,000 of debt, which included terminating and repaying all amounts outstanding under its prior revolving line of credit facility. All obligations under the facility are guaranteed unconditionally by the Company and are secured in the form of mortgages on certain wholly-owned assets and pledges of equity interests held by certain of the Company’s subsidiaries. The ~~new~~ credit facility bears interest at LIBOR plus a spread of 2.25% to 3.25% depending on the Company’s overall leverage level. As of ~~September 30, 2021,~~March 31, 2022, the borrowing rate was LIBOR plus 2.25%. As of ~~September 30, 2021,~~March 31, 2022, borrowings under the facility were ~~$130,000,~~

Table of Contents

THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

11. Bank and Other Notes Payable: (Continued)

$76,000, less unamortized deferred finance costs of ~~$15,748,~~$12,612, for the revolving loan facility at a total interest rate of ~~3.69%~~3.76%. As of ~~September 30, 2021,~~March 31, 2022, the Company's availability under the revolving loan facility for additional borrowings was ~~$394,719.~~$448,719. On September 20, 2021, the Company paid off the remaining balance outstanding on the term loan facility with proceeds from the sale of Tucson La Encantada (See Note 15—Dispositions). The estimated fair value (Level 2 measurement) of borrowings under the credit facility at ~~September 30, 2021~~March 31, 2022 was ~~$129,937~~$72,916 for the revolving loan facility based on a present value model using a credit interest rate spread offered to the Company for comparable debt.

The Company had a $1,500,000 revolving line of credit that bore interest at LIBOR plus a spread of 1.30% to 1.90%, depending on the Company's overall leverage level, and was to mature on July 6, 2020. On April 8, 2020, the Company exercised its option to extend the maturity of the facility to July 6, 2021. The line of credit could have been expanded, depending on certain conditions, up to a total facility of $2,000,000. Based on the Company's leverage level as of December 31, 2020, the borrowing rate on the facility was LIBOR plus 1.65%. On April 14, 2021, the Company repaid the $985,000 of outstanding debt and terminated this credit facility. The Company had 4 interest rate swap agreements that effectively

~~Table of Contents~~

~~THE MACERICH COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(Dollars in thousands, except per share and square foot amounts)~~

~~(Unaudited)~~

~~11. Bank and Other Notes Payable: (Continued)~~

converted a total of $400,000 of the outstanding balance from floating rate debt of LIBOR plus 1.65% to fixed rate debt of 4.50% until September 30, 2021. These swaps are now hedged against the Santa Monica Place floating rate loan and a portion of the Green Acres Commons floating rate loan effectively converting these loans to fixed rate debt through September 30, 2021. The Company did not renew the swaps that expired on September 30, 2021 and, as a result, on October 1, 2021, these loans reverted back to floating interest rate loans (See Note 5 – Derivative Instruments and Hedging Activities and Note 10 – Mortgage Notes Payable). As of ~~December~~March 31, 2020, borrowings under the prior line of credit was $1,480,000 less unamortized deferred finance costs of $2,460 at a total interest rate of 2.73%. As of December 31, 2020, the Company's availability under the prior line of credit for additional borrowings was $19,719. The estimated fair value (Level 2 measurement) of borrowings under the line of credit at December 31, 2020 was $1,485,598 based on a present value model using a credit interest rate spread offered to the Company for comparable debt.

~~As of September 30, 2021~~2022 and December 31, ~~2020,~~2021, the Company was in compliance with all applicable financial loan covenants.

12. Financing Arrangement:

On September 30, 2009, the Company formed a joint venture whereby a third party acquired a 49.9% interest in Chandler Fashion Center, a ~~1,318,000~~1,319,000 square foot regional shopping center in Chandler, Arizona, and Freehold Raceway Mall, a ~~1,552,000~~1,553,000 square foot regional shopping center in Freehold, New Jersey (collectively referred to herein as "Chandler Freehold"). As a result of the Company having certain rights under the agreement to repurchase the assets after the seventh year of the formation of Chandler Freehold, the transaction did not qualify for sale treatment. The Company, however, is not obligated to repurchase the assets. The Company accounts for its investment in Chandler Freehold as a financing arrangement. The fair value (Level 3 measurement) of the financing arrangement obligation at ~~September 30, 2021~~each of March 31, 2022 and December 31, ~~2020~~2021 was based upon a terminal capitalization rate of approximately 5.75% ~~and 5.5%~~, ~~respectively,~~ a discount rate of approximately 7.25% ~~and 7.0%, respectively,~~ and market rents per square foot of $35 to $105. The fair value of the financing arrangement obligation is sensitive to these significant unobservable inputs and a change in these inputs may result in a significantly higher or lower fair value measurement. Distributions to the partner, excluding distributions of excess loan proceeds, and changes in fair value of the financing arrangement obligation are recognized as interest (income) expense in the Company's consolidated statements of operations.

During the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ the Company ~~incurred~~recognized interest expense (income) in the Company's consolidated statements of operations in connection with the financing arrangement as follows:


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2021		2020		2021		2020				2022		2021
Distributions equal to the partner's share of net (loss) income		$	(985)	$	(398)	$	(3,410)	$	885
Distributions equal to the partner's share of net income (loss)										Distributions equal to the partner's share of net income (loss)		$	497	$	(1,232)
Distributions in excess of the partner's share of net income	Distributions in excess of the partner's share of net income	3,583		398		12,583		3,356		Distributions in excess of the partner's share of net income		4,962		3,414
Adjustment to fair value of financing arrangement obligation	Adjustment to fair value of financing arrangement obligation	(10,306)		(15,502)		(12,608)		(96,793)		Adjustment to fair value of financing arrangement obligation		2,543		(863)
		$	(7,708)	$	(15,502)	$	(3,435)	$	(92,552)			$	8,002	$	1,319

13. Noncontrolling Interests:

The Company allocates net income of the Operating Partnership based on the weighted average ownership interest during the period. The net income of the Operating Partnership that is not attributable to the Company is reflected in the consolidated statements of operations as noncontrolling interests. The Company adjusts the noncontrolling interests in the Operating Partnership at the end of each period to reflect its ownership interest in the Company. The Company had a 96% ~~and 93%~~ ownership interest in the Operating Partnership as of ~~September 30, 2021~~each of March 31, 2022 and December 31, ~~2020, respectively.~~2021. The remaining 4% ~~and 7%~~ limited partnership interest as of ~~September 30, 2021~~each of March 31, 2022 and December 31, ~~2020, respectively,~~2021 was owned by certain of the Company's executive officers and directors, certain of their affiliates and other third party investors in the form of OP Units. The OP Units may be redeemed for shares of stock or cash, at the Company's option. The redemption value for each OP

~~Table of Contents~~

~~THE MACERICH COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(Dollars in thousands, except per share and square foot amounts)~~

~~(Unaudited)~~

~~13. Noncontrolling Interests: (Continued)~~

Unit as of any balance sheet date is the amount equal to the average of the closing price per share of the Company's common stock, par value $0.01 per share, as reported on the New York Stock Exchange for the 10 trading days ending on the respective balance sheet date. Accordingly, as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, the aggregate redemption value of the then-outstanding OP Units not owned by the Company was ~~$171,749~~$131,584 and ~~$117,602,~~$147,259, respectively.

Table of Contents

THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

13. Noncontrolling Interests: (Continued)

The Company issued common and preferred units of MACWH, LP in April 2005 in connection with the acquisition of the Wilmorite portfolio. The common and preferred units of MACWH, LP are redeemable at the election of the holder. The Company may redeem them for cash or shares of the Company's stock at the Company's option and they are classified as permanent equity.

Included in permanent equity are outside ownership interests in various consolidated joint ventures. The joint ventures do not have rights that require the Company to redeem the ownership interests in either cash or stock.

14. Stockholders' Equity:

~~Stock Dividend~~

On June 3, 2020, the Company issued 7,759,280 common shares to its common stockholders in connection with the quarterly dividend of $0.50 per share of common stock declared on March 16, 2020. The dividend consisted of a combination of cash and shares of the Company's common stock. The cash component of the dividend (not including cash paid in lieu of fractional shares) was 20% in the aggregate, or $0.10 per share, with the balance paid in shares of the Company's common stock.

In accordance with the provisions of Internal Revenue Service Revenue Procedure 2017-45, stockholders were asked to make an election to receive the dividend all in cash or all in shares. To the extent that more than 20% of cash was elected in the aggregate, the cash portion was prorated. Stockholders who elected to receive the dividend in cash received a cash payment of at least $0.10 per share. Stockholders who did not make an election received 20% in cash and 80% in shares of common stock. The number of shares issued as a result of the dividend was calculated based on the volume weighted average trading price of the Company's common stock on the New York Stock Exchange on May 20, May 21 and May 22, 2020 of $7.2956.

The Company accounted for the stock portion of its distribution as a stock issuance as opposed to a stock dividend. Accordingly, the impact of the shares issued is reflected in the Company's earnings per share calculation on a prospective basis.

Stock Offerings

In connection with the commencement of separate “at the market” offering programs, on each of February 1, 2021 and March 26, 2021, which are referred to as the “February 2021 ATM Program” and the “March 2021 ATM Program,” respectively, and collectively as the “ATM Programs,” the Company entered into separate equity distribution agreements with certain sales agents pursuant to which the Company may issue and sell shares of its common stock having an aggregate offering price of up to $500,000 under each of the February 2021 ATM Program and the March 2021 ATM Program, or a total of $1,000,000 under the ATM Programs.

During the nine months ended September 30, 2021, the Company issued 62,029,777 shares of common stock under the ATM Programs for aggregate gross proceeds of $847,875 and net proceeds of $829,874 after commissions and other transaction costs. The proceeds from the sales under the ATM Programs were used to pay down the Company’s line of credit (See Note 11 – Bank and Other Notes Payable). As of September 30, 2021, $152,125 remained available to be sold under the March 2021 ATM Program. The February 2021 ATM Program was fully utilized as of June 30, 2021 and is no longer active.

During the three months ended March 31, 2022, the Company did not issue any shares of common stock under the March 2021 ATM Program. As of March 31, 2022, $151,699 remained available to be sold under the March 2021 ATM Program. Actual future sales will depend upon a variety of factors including, but not limited to, market conditions, the trading price of the Company’s common stock and the Company’s capital needs. The Company has no obligation to sell the remaining shares available for sale under the March 2021 ATM ~~Programs.~~Program.

During the three months ended March 31, 2021, the Company issued 45,992,318 shares of common stock under the ATM Programs for aggregate gross proceeds of $609,739 and net proceeds of $597,007 after commissions and other transaction costs. In addition, under the ATM Programs, the Company sold additional common shares at the end of the quarter ending March 31, 2021 for aggregate gross proceeds of $41,977 and net proceeds of $41,137 after commissions, of which the shares settled and the proceeds were received in April 2021.

Stock Buyback Program

On February 12, 2017, the Company's Board of Directors authorized the repurchase of up to $500,000 of its outstanding common shares as market conditions and the Company’s liquidity warrant. Repurchases may be made through open market

~~Table of Contents~~

~~THE MACERICH COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(Dollars in thousands, except per share and square foot amounts)~~

~~(Unaudited)~~

~~14. Stockholders' Equity: (Continued)~~

purchases, privately negotiated transactions, structured or derivative transactions, including ASR transactions, or other methods of acquiring shares, from time to time as permitted by securities laws and other legal requirements. The program is referred to herein as the "Stock Buyback Program".

There were no repurchases under the Stock Buyback Program during the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 or ~~2020.~~2021.

15. Dispositions:

On March 29, 2021, the Company sold Paradise Valley Mall in Phoenix, Arizona to a newly formed joint venture for $100,000 resulting in a gain on sale of assets and land of $5,563. Concurrent with the sale, the Company elected to reinvest into the new joint venture at a 5% ownership interest (see Note 4 – Investments in Unconsolidated Joint Ventures). The Company used the proceeds from the sale to pay down its line of credit and for other general corporate purposes.

On September 17, 2021, the Company sold Tucson La Encantada in Tucson, Arizona for $165,250, resulting in a gain on sale of assets of approximately $117,242. The Company used the net cash proceeds of $100,142 to pay down debt.

For the three months ended March 31, 2022 and 2021, the Company sold various land parcels in separate transactions, resulting in gains on sale of land of $15,082 and $4,096, respectively. The Company used its share of the proceeds from these sales to pay down debt and for other general corporate purposes.

Table of Contents

THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

16. Commitments and Contingencies:

As of ~~September 30, 2021,~~March 31, 2022, the Company was contingently liable for ~~$40,915~~$40,997 in letters of credit guaranteeing performance by the Company of certain obligations relating to the Centers. As of ~~September 30, 2021, $40,600~~March 31, 2022, $40,680 of these letters of credit were secured by restricted cash. The Company does not believe that these letters of credit will result in a liability to the Company.

The Company has entered into a number of construction agreements related to its redevelopment and development activities. Obligations under these agreements are contingent upon the completion of the services within the guidelines specified in the ~~agreements.~~relevant agreement. At ~~September 30, 2021,~~March 31, 2022, the Company had ~~$2,920~~$10,351 in outstanding obligations, which it believes will be settled in the next twelve months.

17. Related Party Transactions:

Certain unconsolidated joint ventures have engaged the Management Companies to manage the operations of the Centers. Under these arrangements, the Management Companies are reimbursed for compensation paid to on-site employees, leasing agents and project managers at the Centers, as well as insurance costs and other administrative expenses.

The following are fees charged to unconsolidated joint ventures:


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2021		2020		2021		2020				2022		2021
Management fees	Management fees	$	4,594	$	4,285	$	12,397	$	13,066	Management fees		$	4,361	$	3,817
Development and leasing fees	Development and leasing fees	1,747		1,443		4,732		5,838		Development and leasing fees		1,383		1,430
		$	6,341	$	5,728	$	17,129	$	18,904			$	5,744	$	5,247

Interest expense ~~(income)~~ from related party transactions includes ~~$(7,708)~~$8,002 and ~~$(15,502)~~$1,319 for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively, and $(3,435) and $(92,552) for the nine months ended September 30, 2021 and 2020,~~ respectively, in connection with the Financing Arrangement (See Note 12—Financing Arrangement).

Due from (to) affiliates includes ~~$2,977~~$4,177 and ~~$1,612~~$(327) of unreimbursed (prepaid) costs and fees from unconsolidated joint ventures due to (from) the Management Companies ~~as of September 30, 2021~~at March 31, 2022 and December 31, ~~2020,~~2021, respectively.

18. Share and Unit-Based Plans:

Under the Long-Term Incentive Plan ("LTIP"), each award recipient is issued a form of operating partnership units ("LTIP Units") in the Operating ~~Partnership.~~Partnership or form of restricted stock units (together with the LTIP Units the "LTI Units"). Upon the occurrence of specified events and subject to the satisfaction of applicable vesting conditions, LTIP Units (after conversion into OP Units) are ultimately redeemable for common stock of the Company, or cash at the

~~Table of Contents~~

~~THE MACERICH COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)~~

~~(Dollars in thousands, except per share and square foot amounts)~~

~~(Unaudited)~~

~~18. Share and Unit-Based Plans: (Continued)~~

Company's option, on a 1-unit for 1-share basis. ~~LTIP~~LTI Units receive cash dividends based on the dividend amount paid on the common stock of the Company. The LTIP may include ~~both~~ market-indexed awards, performance-based awards and service-based awards.

The market-indexed ~~LTIP~~LTI Units vest over the service period of the award based ~~on certain performance conditions of the Company and~~ on the percentile ranking of the Company in terms of total return to stockholders (the "Total Return") per share of common stock relative to the Total Return of a group of peer REITs, as measured at the end of the measurement period. The performance-based LTI Units vest over a specified period based on the Company's operational performance over that period.

During the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, the Company granted the following ~~LTIP~~LTI Units:
Grant Date Units Type Fair Value per LTIP Unit Vest Date
1/1/2021 576,378 Service-based $ 10.67 12/31/2023
1/1/2021 1,005,073 Market-indexed $ 9.85 12/31/2023
1,581,451

Grant Date

Units

Type

Fair Value per LTI Unit

Vest Date

1/1/2022

376,153

Service-based

17.28

12/31/2024

1/1/2022

716,545

Performance-based

15.77

12/31/2024

1,092,698

Table of Contents

THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

18. Share and Unit-Based Plans: (Continued)

The fair value of the ~~market-indexed LTIP~~service-based LTI Units ~~(Level 3)~~was determined by the market price of the Company's common stock on the date of grant. The fair value of the performance-based LTI Units granted on January 1, ~~2021~~2022 was estimated on the date of grant using a Monte Carlo Simulation model that assumed a risk-free interest rate of ~~0.17%~~0.97% and an expected volatility of ~~62.82%~~70.83%.

The following table summarizes the activity of the non-vested ~~LTIP~~LTI Units, phantom stock units and stock units:


		LTIP Units			Phantom Stock Units		Stock Units			LTI Units							Phantom Stock Units	Stock Units
		Units	Value(1)			Units	Value(1)		Units		Value(1)			Units	Value(1)			Units	Value(1)		Units	Value(1)
Balance at January 1, 2021		784,052	$	28.11		4,662	$	35.35	309,845		$	21.47
Balance at January 1, 2022													Balance at January 1, 2022	1,837,691	$	14.14		—	$	—	266,505	$	19.05
Granted	Granted	1,581,451	10.15			16,577	11.74		167,356		14.58		Granted	1,092,698	16.29			35,730	16.91		77,935	16.26
Vested	Vested	(17,931)	29.75			(16,710)	16.87		(209,709)		19.04		Vested	(16,467)	29.86			(5,213)	16.56		(88,313)	23.34
Forfeited	Forfeited	—	—			—	—		(987)		22.12		Forfeited	—	—			—	—		—	—
Balance at September 30, 2021		2,347,572	$	16.00		4,529	$	17.10	266,505		$	19.05
Balance at March 31, 2022													Balance at March 31, 2022	2,913,922	$	14.86		30,517	$	16.97	256,127	$	16.72
																								(1) Value represents the weighted average grant date fair value.

The following table summarizes the activity of the stock options outstanding:


		Stock Options					Stock Options
			Units	Value(1)				Units	Value(1)
Balance at January 1, 2021			37,515	$	54.34
Balance at January 1, 2022						Balance at January 1, 2022		37,515	$	54.34
Granted	Granted		—	—		Granted		—	—
Exercised	Exercised		—	—		Exercised		—	—

Balance at September 30, 2021			37,515	$	54.34
Balance at March 31, 2022						Balance at March 31, 2022		37,515	$	54.34

(1) Value represents the weighted average exercise price.	(1) Value represents the weighted average exercise price.		(1) Value represents the weighted average exercise price.

2623

Table of Contents

THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Dollars in thousands, except per share and square foot amounts)

(Unaudited)

18. Share and Unit-Based Plans: (Continued)

The following summarizes the compensation cost under the share and unit-based plans:


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2021		2020		2021		2020				2022		2021
LTIP Units		$	3,625	$	3,354	$	10,822	$	9,918
LTI Units										LTI Units		$	4,685	$	3,611

Stock units	Stock units	598		684		2,577		3,580		Stock units		1,291		1,327

Phantom stock units	Phantom stock units	95		85		282		438		Phantom stock units		86		93
		$	4,318	$	4,123	$	13,681	$	13,936			$	6,062	$	5,031

The Company capitalized share and unit-based compensation costs of ~~$910~~$1,193 and ~~$626~~$1,001 for the three months ended ~~September 30,~~March 31, 2022 and 2021, ~~and 2020, respectively, and $2,813 and $2,946 for the nine months ended September 30, 2021 and 2020,~~ respectively. Unrecognized compensation costs of share and unit-based plans at ~~September 30, 2021~~March 31, 2022 consisted of ~~$8,235~~$17,724 from ~~LTIP~~LTI Units, ~~$2,097~~$1,508 from stock units and ~~$77~~$0 from phantom stock units.

19. Income Taxes:

The Company has made taxable REIT subsidiary elections for all of its corporate subsidiaries other than its qualified REIT subsidiaries. The elections, effective for the year beginning January 1, 2001 and future years, were made pursuant to Section 856(l) of the Code. The Company's taxable REIT subsidiaries ("TRSs") are subject to corporate level income taxes which are provided for in the Company's consolidated financial statements. The Company's primary TRSs include Macerich Management Company and Macerich Arizona Partners LLC.

The income tax provision of the TRSs are as follows:


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2021		2020		2021		2020				2022		2021
Current	Current	$	—	$	—	$	—	$	439	Current		$	—	$	—
Deferred	Deferred	(107)		(1,106)		(9,452)		245		Deferred		(1,799)		(2,238)
Total income tax (expense) benefit		$	(107)	$	(1,106)	$	(9,452)	$	684
Total expense										Total expense		$	(1,799)	$	(2,238)

The net operating loss ("NOL") carryforwards generated through the 2017 tax year are scheduled to expire through 2037, beginning in 2025. Pursuant to the Tax Cuts and Jobs Act of 2017, NOLs generated in 2018 and subsequent tax years are carried forward indefinitely. The Coronavirus Aid, Relief and Economic Security Act removed the 80% of taxable income limitation, imposed by the Tax Cuts and Jobs Act, for NOLs generated in 2018, 2019 and 2020. Net deferred tax assets of ~~$21,315~~$22,020 and ~~$30,767~~$23,406 were included in deferred charges and other assets, net at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively.

The Company is required to establish a valuation allowance for any portion of the deferred tax asset that the Company concludes is more likely than not to be unrealizable. The Company’s assessment considers all evidence, both positive and negative, including the nature, frequency and severity of any current and cumulative losses, taxable income in carry back years, the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. As of ~~September 30, 2021,~~March 31, 2022, the Company had no valuation allowance recorded.

The tax years ~~2017~~2018 through ~~2019~~2020 remain open to examination by the taxing jurisdictions to which the Company is subject. The Company does not expect that the total amount of unrecognized tax benefit will materially change within the next twelve months.

20. Subsequent Events:

On ~~October 28, 2021,~~May 9, 2022, the Company announced a dividend/distribution of $0.15 per share for common stockholders and OP Unitholders of record on ~~November 9, 2021.~~May 20, 2022. All dividends/distributions will be paid 100% in cash on ~~December~~June 3, ~~2021.~~2022.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

IMPORTANT INFORMATION RELATED TO FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q of The Macerich Company (the "Company") contains or incorporates statements that constitute forward-looking statements within the meaning of the federal securities laws. Any statements that do not relate to historical or current facts or matters are forward-looking statements. You can identify some of the forward-looking statements by the use of forward-looking words, such as "may," "will," "could," "should," "expects," "anticipates," "intends," "projects," "predicts," "plans," "believes," "seeks," "estimates," "scheduled" and variations of these words and similar expressions. Statements concerning current conditions may also be forward-looking if they imply a continuation of current conditions. Forward-looking statements appear in a number of places in this Form 10-Q and include statements regarding, among other matters:

•expectations regarding the Company's growth;

•the Company's beliefs regarding its acquisition, redevelopment, development, leasing and operational activities and opportunities, including the performance and financial stability of its retailers;

•the Company's acquisition, disposition and other strategies;

•regulatory matters pertaining to compliance with governmental regulations;

•the Company's capital expenditure plans and expectations for obtaining capital for expenditures;

•the Company's expectations regarding income tax benefits;

•the Company's expectations regarding its financial condition or results of operations; and

•the Company's expectations for refinancing its indebtedness, entering into and servicing debt obligations and entering into joint venture arrangements.

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 or the industry to differ materially from the Company's future results, performance or achievements, or those of the industry, expressed or implied in such forward-looking statements. Such factors include, among others, general industry, as well as global, 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 continuing adverse impact of the novel coronavirus ("COVID-19") on the U.S., regional and global economies and the financial condition and results of operations of the Company and its tenants; 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. You are urged to carefully review the disclosures we make concerning these risks and other factors that may affect our business and operating results, including those made in "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, ~~2020,~~2021, as well as our other reports filed with the Securities and Exchange Commission (the "SEC"), which disclosures are incorporated herein by reference. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this document. 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.

Management's Overview and Summary

The Company is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and community/power shopping centers located throughout the United States. The Company is the sole general partner of, and owns a majority of the ownership interests in, The Macerich Partnership, L.P. (the "Operating Partnership"). As of ~~September 30, 2021,~~March 31, 2022, the Operating Partnership owned or had an ownership interest in 4544 regional town centers and five community/power shopping centers. These 5049 regional town centers and community/power shopping centers (which include any ~~related office space)~~adjoining mixed use improvements) consist of approximately 4948 million square feet of gross leasable area ("GLA") and are referred to herein as the "Centers". The Centers consist of consolidated Centers ("Consolidated Centers") and unconsolidated joint venture Centers ("Unconsolidated Joint Venture Centers"), unless the context otherwise requires. The property management, leasing and redevelopment of the Company's portfolio is provided by the Company's seven management companies (collectively referred to herein as the "Management Companies"). 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 Management Companies.

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The following discussion is based primarily on the consolidated financial statements of the Company for the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 and ~~2020.~~2021. It compares the results of operations for the three months ended ~~September 30, 2021~~March 31, 2022 to the results of operations for the three months ended ~~September 30, 2020.~~March 31, 2021. It also compares the results of operations and cash flows for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 to the results of operations and cash flows for the ~~nine~~three months ended ~~September 30, 2020.~~March 31, 2021.

This information should be read in conjunction with the accompanying consolidated financial statements and notes thereto.

Dispositions:

On March 29, 2021, the Company sold Paradise Valley Mall in Phoenix, Arizona to a newly formed joint venture for ~~$100~~$100.0 million, resulting in a gain on sale of assets of approximately $5.6 million. Concurrent with the sale, the Company elected to reinvest into the new joint venture at a 5% ownership interest. The Company used the $95.3 million of net proceeds from the sale to pay down its line of credit (See ~~"Liquidity~~"—Liquidity and Capital Resources").

On September 17, 2021, the Company sold Tucson La Encantada in Tucson, Arizona for $165.3 million, resulting in a gain on sale of assets of approximately $117.2 million. The Company used the net cash proceeds of approximately $100.1 million to pay down debt (See ~~"Liquidity~~"—Liquidity and Capital Resources").

~~Financing Activities:~~

On September 15, 2020, the Company closed on a loan extension agreement for the $191.0 million loan on Danbury Fair Mall. Under the extension agreement, the original loan maturity date of October 1, 2020 was extended to April 1, 2021 and subsequently to October 1, 2021. The loan amount and interest rate remained unchanged following these extensions. On September 15,December 31, 2021, the Company ~~further extended~~assigned its joint venture interest in The Shops at North Bridge in Chicago, Illinois to its partner in the ~~loan maturity to July 1, 2022.~~joint venture. The ~~interest rate remained unchanged,~~assignment included the assumption by the joint venture partner of the Company’s share of the debt owed by the joint venture and no cash consideration was received by the Company. The Company recognized a loss of approximately $28.3 million in connection with the assignment.

On December 31, 2021, the Company ~~repaid $10.0 million~~sold its joint venture interest in the undeveloped property at 443 North Wabash Avenue in Chicago, Illinois to its partner in the joint venture for $21.0 million. The Company recognized an immaterial gain in connection with the sale.

For the twelve months ended December 31, 2021, the Company and certain joint venture partners sold various land parcels in separate transactions, resulting in the Company’s share of the ~~outstanding loan balance at closing.~~

~~On November 17, 2020, the Company’s joint venture in Tysons VITA, the residential tower at Tysons Corner Center, placed a new $95.0 million loan~~gain on ~~the property that bears interest at an effective rate~~sale of ~~3.43% and matures on December 1, 2030. Initial loan funding for the Company's joint venture was $90.0 million with future advance potential~~land of ~~up to $5.0~~$19.6 million. The Company used its share of the ~~initial~~ proceeds from these sales of ~~$45.0~~$46.5 million to pay down debt and for other general corporate purposes.

~~On December 10, 2020,~~For the Company made a loan (the “Partnership Loan”) to the Company’s joint venture in Fashion District Philadelphia to fund the entirety of a $100.0 million repayment to reduce the mortgage loan on Fashion District Philadelphia from $301.0 million to $201.0 million. This mortgage loan now matures on January 22, 2024, assuming exercise of a one-year extension option, and bears interest at LIBOR plus 3.5%, with a LIBOR floor of 0.50%. The partnership agreement for the joint venture was amended in connection with the Partnership Loan, and pursuant to the amended agreement, the Partnership Loan plus 15% accrued interest must be repaid prior to the resumption of 50/50 cash distributions tothree months ended March 31, 2022, the Company and ~~its~~certain joint venture ~~partner.~~

~~On December 15, 2020,~~partners sold various land parcels in separate transactions, resulting in the Company closed on a loan extension agreement for the $101.5 million loan on Fashion Outlets of Niagara. Under the extension agreement the original loan maturity date of October 6, 2020 was extended to October 6, 2023. The loan amount and interest rate are unchanged following the extension.

~~On December 29, 2020, the~~ Company’s joint venture closed on a one-year maturity date extension for the FlatIron Crossing loan to January 5, 2022. The interest rate increased from 3.85% to 4.10%, and the Company’s joint venture repaid $15.0 million, $7.6 million at the Company's pro rata share of the ~~outstanding loan balance at closing.~~gain on sale of land of $11.3 million. The ~~Company's joint venture is currently negotiating a commitment~~Company used its share of the proceeds from these sales of $20.3 million to pay down debt and for ~~a new five-year $200.0 million loan to replace the existing $198.2 million loan on the property.~~other general corporate purposes.

Financing Activities:

On January 22, 2021, the Company closed on a one-year extension for the Green Acres Mall $258.2 million loan to February 3, 2022, which also ~~includes~~included a one-year extension option to February 3, ~~2023.~~2023 that has been exercised. The interest rate remained unchanged, and the Company repaid $9 million of the outstanding loan balance at closing.

On March 25, 2021, the Company closed on a two-year extension for the Green Acres Commons $124.6 million loan to March 29, 2023. The interest rate is LIBOR plus 2.75% and the Company repaid $4.7 million of the outstanding loan balance at closing.

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During the second quarter of 2020 and in July 2020, the Company secured agreements with its mortgage lenders on 19 mortgage loans to defer approximately $47.2 million of both second and third quarter of 2020 debt service payments at the Company’s pro rata share during the COVID-19 pandemic. Of the deferred payments, $28.1 million and $36.9 million was repaid in the three months and twelve months ended December 31, 2020, respectively; and the remaining balance was fully repaid during the first quarter of 2021.

On September 15, 2021, the Company further extended the loan maturity on Danbury Fair Mall to July 1, 2022. The interest rate remained unchanged, and the Company repaid $10.0 million of the outstanding loan balance at closing.

On October 26, 2021, the Company's joint venture in The Shops at Atlas Park replaced the existing loan on the property with a new $65 million loan that bears interest at a floating rate of LIBOR plus 4.15% and matures on November 9, 2026, including extension options. The loan is covered by an interest rate cap agreement that effectively prevents LIBOR from exceeding 3.0% through November 7, 2023.

During the year ended December 31, 2021, the Company repaid $1.7 billion of debt then outstanding, including the $985 million repaid in connection with entering into the new credit agreement in April 2021. These repaid amounts represented an approximately 20% reduction in the debt outstanding, at the Company’s share, since December 31, 2020.

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On February 2, 2022, the Company’s joint venture in FlatIron Crossing replaced the existing $197 million loan on the property with a new $175 million loan that bears interest at SOFR plus 3.70% and matures on February 9, 2025, including extension options. The loan is covered by an interest rate cap agreement that effectively prevents SOFR from exceeding 4.0% through February 15, 2024.

On April 29, 2022, the Company replaced the existing $110.6 million loan on Pacific View with a new $72.0 million loan that bears interest at a fixed rate of 5.29% and matures on May 6, 2032.

On May 6, 2022, the Company closed on a two-year extension for The Oaks $175.4 million loan to June 5, 2024, ~~(See "Liquidity and Capital Resources")~~at a new fixed interest rate of 5.25%. The Company repaid $5.0 million of the outstanding loan balance at closing.

Redevelopment and Development Activities:

The Company's joint venture with Hudson Pacific Properties is redeveloping One Westside into 584,000 square feet of creative office space and 96,000 square feet of dining and entertainment space. The entire creative office space has been leased to Google and is expected to be completed in the third quarter of 2022. During the fourth quarter of 2021, the joint venture delivered the office space to Google for tenant improvement work, which Google has commenced. The total cost of the project is estimated to be between $500.0 million and $550.0 million, with $125.0 million to $137.5 million estimated to be the Company's pro rata share. The Company has ~~funded $100.3~~incurred $112.2 million of the total ~~$401.3~~$448.9 million incurred by the joint venture as of ~~September 30, 2021.~~March 31, 2022. The joint venture expects to fund the remaining costs of the development with its $414.6 million construction ~~loan (See "Financing Activities").~~loan.

The Company has a 50/50 joint venture with Simon Property Group, which was initially formed to develop Los Angeles Premium Outlets, a premium outlet center in Carson, ~~California that is planned to open with approximately 400,000 square feet, followed by an additional 165,000 square feet in the second phase.~~California. The Company has funded ~~$40.8~~$40.5 million of the total ~~$81.6~~$81.0 million incurred by the joint venture as of ~~September 30, 2021.~~March 31, 2022.

In connection with the closures and lease rejections of several Sears stores owned or partially owned by the Company, the Company anticipates spending between $130.0 million to $160.0 million at the Company’s pro rata share to redevelop the Sears stores. The anticipated openings of such redevelopments are expected to occur over several years. The estimated range of redevelopment costs could increase if the Company or its joint venture decides to expand the scope of the redevelopments. The Company has funded ~~$39.9~~$41.1 million at its pro rata share as of ~~September 30, 2021.~~March 31, 2022.

Other Transactions and Events:

In March 2020, the COVID-19 outbreak was declared a pandemic by the World Health Organization. As a result, all of the markets that the Company operates in were subject to stay-at-home orders, and the majority of its properties were temporarily closed in part or completely. Following staggered re-openings during 2020, all Centers have been open and operating since October 7, 2020. As of the date of this Quarterly Report on Form 10-Q, government-imposed capacity restrictions resulting from COVID-19 have been essentially eliminated across the Company's markets.

~~On December 31, 2020,~~ Although overall fundamentals at the Centers continued to improve during 2021 and into the first quarter of 2022, the Company ~~and its joint venture partner, Seritage Growth Properties (“Seritage”), entered into a distribution agreement. The joint venture owned nine properties,~~expects that the COVID-19 pandemic, including the ~~former Sears parcels at~~emergence of new variants, will continue to negatively impact its results for the ~~South Plains Mall~~remainder of 2022 due, in part, to reduced occupancy relative to pre-COVID levels and the Arrowhead Towne Center. The joint venture distributed the former Sears parcel at South Plains Mall to the Company and the former Sears parcel at Arrowhead Towne Center to Seritage. The joint venture partners agreed that the distributed properties were of equal value. The Company now owns 100% of the former Sears parcel at South Plains Mall. Effective December 31, 2020, the Company consolidates its 100% interest in the Sears parcel at South Plains Mall in the Company’s consolidated financial statements.additional Anchor closures, among other factors.

In March 2020, the Company declared a reduced second quarter dividend of $0.50 per share of its common stock, which was paid on June 3, 2020 in a combination of cash and shares of common stock, at the election of the stockholder, subject to a limitation that the aggregate amount of cash payable to holders of the Company’s common stock would not exceed 20% of the aggregate amount of the dividend, or $0.10 per share, for all stockholders of record on April 22, 2020. The amount of the dividend represented a reduction from the Company’s first quarter 2020 dividend, and was paid in a combination of cash and shares of common stock to preserve liquidity in light of the impact and uncertainty arising out of the COVID-19 pandemic. The Company declared a ~~further reduced~~ cash dividend of $0.15 per share of its common stock for each quarter in the ~~third and fourth quarters of 2020 and for the first, second and third quarters of~~year ended December 31, 2021. On ~~October 28, 2021,~~January 27, 2022, the Company declared a ~~fourth~~first quarter cash dividend of $0.15 per share of its common stock, which was paid on March 3, 2022 to stockholders of record on February 18, 2022. On May 9, 2022, the Company declared a second quarter cash dividend of $0.15 per share of its common stock, which will be paid on ~~December~~June 3, ~~2021~~2022 to stockholders of record on ~~November 9, 2021.~~May 20, 2022. The dividend amount will be reviewed by the Board on a quarterly basis.

In connection with the commencement of separate "at the market" offering programs, on each of February 1, 2021 and March 26, 2021, which are referred to as the "February 2021 ATM Program" and the "March 2021 ATM Program," respectively, and collectively as the "ATM Programs," the Company entered into separate equity distribution agreements with certain sales agents pursuant to which the Company may issue and sell shares of its common stock having an aggregate offering

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price of up to $500 million under each of the February 2021 ATM Program and the March 2021 ATM Program, or a total of $1 billion under the ATM Programs. As of ~~September 30, 2021,~~March 31, 2022, the Company had approximately ~~$152.1~~$151.7 million of gross sales of its common stock available under the March 2021 ATM Program. The February 2021 ATM Program was fully utilized as of June 30, 2021 and is no longer active.

See ~~“Liquidity~~“—Liquidity and Capital Resources” for a further discussion of the Company’s anticipated liquidity needs, and the measures taken by the Company to meet those ~~needs, including the ATM Programs and the Company's new credit facility.~~needs.

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Inflation:

In the last five years, inflation has not had a significant impact on the ~~Company because of a relatively low inflation rate.~~Company. Most of the leases at the Centers have rent adjustments periodically throughout the lease term. These rent increases are either in fixed increments or based on using an annual multiple of increases in the Consumer Price Index. In addition, ~~approximately 3% to 18%~~the routine expiration of ~~the~~ leases for spaces 10,000 square feet and under ~~expire~~ each year ~~which~~ enables the Company to replace existing leases with new leases at higher base rents if the rents of the existing leases are below the then existing market rate. The Company has generally entered into leases that require tenants to pay a stated amount for operating expenses, generally excluding property taxes, regardless of the expenses actually incurred at any Center, which places the burden of cost control on the Company. Additionally, most leases require the tenants to pay their pro rata share of property taxes and utilities.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Some of these estimates and assumptions include judgments on revenue recognition, estimates for common area maintenance and real estate tax accruals, provisions for uncollectible accounts, impairment of long-lived assets, the allocation of purchase price between tangible and intangible assets, capitalization of costs and fair value measurements. The Company's significant accounting policies and estimates are described in more detail in Note 2—Summary of Significant Accounting Policies in the Company's Notes to the Consolidated Financial Statements. However, the following policies are deemed to be critical.

Acquisitions:

Upon the acquisition of real estate properties, the Company evaluates whether the acquisition is a business combination or asset acquisition. For both business combinations and asset acquisitions, the Company allocates the purchase price of properties to acquired tangible assets and intangible assets and liabilities. For asset acquisitions, the Company capitalizes transaction costs and allocates the purchase price using a relative fair value method allocating all accumulated costs. For business combinations, the Company expenses transaction costs incurred and allocates purchase price based on the estimated fair value of each separately identified asset and liability. The Company allocates the estimated fair value of acquisitions to land, building, tenant improvements and identified intangible assets and liabilities, based on their estimated fair values. In addition, any assumed mortgage notes payable are recorded at their estimated fair values. The estimated fair value of the land and buildings is determined utilizing an “as if vacant” methodology. Tenant improvements represent the tangible assets associated with the existing leases valued on a fair value basis at the acquisition date prorated over the remaining lease terms. The tenant improvements are classified as an asset under property and are depreciated over the remaining lease terms. Identifiable intangible assets and liabilities relate to the value of in-place operating leases which come in three forms: (i) leasing commissions and legal costs, which represent the value associated with “cost avoidance” of acquiring in-place leases, such as lease commissions paid under terms generally experienced in the Company's markets; (ii) value of in-place leases, which represents the estimated loss of revenue and of costs incurred for the period required to lease the “assumed vacant” property to the occupancy level when purchased; and (iii) above or below-market value of in-place leases, which represents the difference between the contractual rents and market rents at the time of the acquisition, discounted for tenant credit risks. Leasing commissions and legal costs are recorded in deferred charges and other assets and are amortized over the remaining lease terms. The value of in-place leases are recorded in deferred charges and other assets and amortized over the remaining lease terms plus any below-market fixed rate renewal options. Above or below-market leases are classified in deferred charges and other assets or in other accrued liabilities, depending on whether the contractual terms are above or below-market, and the asset or liability is amortized to minimum rents over the remaining terms of the leases. The remaining lease terms of below-market leases may include certain below-market fixed-rate renewal periods. In considering whether or not a lessee will execute a below-market fixed-rate lease renewal option, the Company evaluates economic factors and certain qualitative factors at the time of acquisition such as tenant mix in the Center, the Company's relationship with the tenant and the availability of competing tenant space.

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Remeasurement gains and losses are recognized when the Company becomes the primary beneficiary of an existing equity method investment that is a variable interest entity to the extent that the fair value of the existing equity investment exceeds the carrying value of the investment, and remeasurement losses to the extent the carrying value of the investment exceeds the fair value. The fair value is determined based on a discounted cash flow model, with the significant unobservable inputs including discount rate, terminal capitalization rate and market rents.

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Asset Impairment:

The Company assesses whether an indicator of impairment in the value of its properties exists by considering expected future operating income, trends and prospects, as well as the effects of demand, competition and other economic factors. Such factors include projected rental revenue, operating costs and capital expenditures as well as estimated holding periods and capitalization rates. If an impairment indicator exists, the determination of recoverability is made based upon the estimated undiscounted future net cash flows, excluding interest expense. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flows analysis or a contracted sales price, with the carrying value of the related assets. The Company generally holds and operates its properties long-term, which decreases the likelihood of their carrying values not being recoverable. A shortened holding period increases the risk that the carrying value of a long-lived asset is not recoverable. Properties classified as held for sale are measured at the lower of the carrying amount or fair value less cost to sell.

The Company reviews its investments in unconsolidated joint ventures for a series of operating losses and other factors that may indicate that a decrease in the value of its investments has occurred which is other-than-temporary. The investment in each unconsolidated joint venture is evaluated periodically, and as deemed necessary, for recoverability and valuation declines that are other-than-temporary.

Fair Value of Financial Instruments:

The fair value hierarchy distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity's own assumptions about market participant assumptions. Level 1 inputs utilize quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates, foreign exchange rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity's own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The Company calculates the fair value of financial instruments and includes this additional information in the Notes to the Consolidated Financial Statements when the fair value is different than the carrying value of those financial instruments. When the fair value reasonably approximates the carrying value, no additional disclosure is made.

The Company records its ~~Financing Arrangement~~financing arrangement (See Note 12—Financing Arrangement in the Company's Notes to the Consolidated Financial Statements) obligation at fair value on a recurring basis with changes in fair value being recorded as interest expense in the Company’s consolidated statements of operations. The fair value is determined based on a discounted cash flow model, with the significant unobservable inputs including discount rate, terminal capitalization rate, and market rents. The fair value of the ~~Financing Arrangement~~financing arrangement obligation is sensitive to these significant unobservable inputs and a change in these inputs may result in a significantly higher or lower fair value measurement.

Results of Operations

Many of the variations in the results of operations, discussed below, occurred because of the transactions affecting the ~~Company's~~Company’s properties described in ~~Management's~~Management’s Overview and Summary above, including the Redevelopment Properties and the Disposition Properties (as defined below).

For purposes of the discussion below, the Company defines ~~"Same Centers"~~“Same Centers” as those Centers that are substantially complete and in operation for the entirety of both periods of the comparison. Non-Same Centers for comparison purposes include those Centers or properties that are going through a substantial redevelopment often resulting in the closing of a portion of the Center (“Redevelopment Properties”)~~, those properties that have recently transitioned to or from equity method joint ventures to or from consolidated assets ("JV Transition Centers")~~ and properties that have been disposed of ("(“Disposition ~~Properties"~~Properties”). The Company moves a Center in and out of Same Centers based on whether the Center is substantially complete

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and in operation for the entirety of both periods of the comparison. Accordingly, the Same Centers consist of all consolidated Centers, excluding the Redevelopment Properties ~~the JV Transition Centers~~ and the Disposition Properties, for the periods of comparison.

For the comparison of the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 to the three ~~and nine~~ months ended ~~September 30, 2020, the JV Transition Centers are Fashion District Philadelphia and Sears South Plains. For the comparison of the three and nine months ended September 30,~~March 31, 2021, ~~to the three and nine months ended September 30, 2020,~~ the Disposition Properties are Paradise Valley Mall and Tucson La Encantada.

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Unconsolidated joint ventures are reflected using the equity method of accounting. The ~~Company's~~Company’s pro rata share of the results from these Centers is reflected in the Consolidated Statements of Operations as equity in (loss) income of unconsolidated joint ventures.

The Company considers tenant annual sales, occupancy rates (excluding large retail stores or ~~"Anchors"~~“Anchors”) and releasing spreads (i.e., a comparison of initial average base rent per square foot on leases executed during the trailing twelve months to average base rent per square foot at expiration for the leases expiring during the trailing twelve months based on the spaces 10,000 square feet and under) to be key performance indicators of the ~~Company's~~Company’s internal growth.

During the ~~third~~first quarter of ~~2021,~~2022, comparable tenant sales ~~from~~for spaces less than 10,000 square feet across the portfolio increased by ~~13.8%~~14.5% relative to the first quarter of 2021 and 11.5% relative to pre-COVID sales during the ~~third~~first quarter of 2019. The leased occupancy rate ~~decreased~~of 91.3% at March 31, 2022 represented a 2.8% increase from ~~90.8%~~88.5% at ~~September 30, 2020 to 90.3% at September 30, 2021, but improved by 0.90% from 89.4% at June 30,~~March 31, 2021. Releasing spreads ~~decreased~~increased as the Company executed leases at an average rent of ~~$55.23~~$58.09 for new and renewal leases executed compared to ~~$56.65~~$57.35 on leases expiring, resulting in a releasing spread ~~decrease~~increase of ~~$1.42~~$0.74 per square foot, or ~~2.5%~~1.3%, for the trailing twelve months ended ~~September 30, 2021.~~March 31, 2022.

The Company continues to renew or replace leases that are scheduled to expire in 2022, however, for a variety of factors, the ~~remainder~~Company cannot be certain of ~~2021.~~its ability to sign, renew or replace leases expiring in 2022 or beyond. The remaining 2022 lease expirations continue to be an important focal point for the Company. As of ~~September 30, 2021,~~March 31, 2022, the Company has executed leases or commitments from retailers that are in lease documentation for ~~91%~~56% of the leased space expiring in ~~2021. The~~2022, and another 35% of such expiring space is in the letter of intent stage. Excluding those leases, the remaining leases expiring in ~~2021 represented~~2022, which represent approximately ~~257,000~~202,000 square feet ~~and~~of the ~~Company is negotiating letters of intent for those spaces. These amounts exclude leases for stores that have closed or for stores that tenants have indicated they intend to close.~~

~~The Company has entered into 215 leases for new stores totaling approximately 964,000 square feet that have previously opened in 2021 or~~Centers, are ~~planned for opening~~ in the ~~remainder of 2021. While there may be additional new store openings in 2021, any such leases were not yet executed as of September 30, 2021.~~prospecting stage.

During the ~~trailing twelve months~~quarter ended ~~September 30, 2021,~~March 31, 2022, the Company signed ~~265~~82 new leases and ~~559~~138 renewal leases comprising approximately ~~3.0 million~~617,000 square feet of ~~GLA, of which 1.8 million square feet is related to the consolidated Centers.~~GLA. The average tenant allowance was ~~$22.82~~$18.09 per square foot. ~~The Company's COVID-19 related lease amendments are excluded from these numbers.~~

Outlook

The Company has a long-term four-pronged business strategy that focuses on the acquisition, leasing and management, redevelopment and development of ~~Regional Shopping Centers. Although overall~~ regional town ~~center~~centers. Although fundamentals ~~in its markets~~at the Centers continued to improve during 2021 and into the ~~third~~first quarter of 2022, the Company expects that the COVID-19 pandemic, including the emergence of new variants, will continue to negatively impact its results for the remainder of ~~2021 will be negatively impacted by the COVID-19 pandemic,~~2022 due, in part, to reduced occupancy relative to pre-COVID levels and additional Anchor closures, among other factors.

All Centers have been open and operating since October 7, 2020. As of the date of this Quarterly Report on Form 10-Q, government-imposed capacity restrictions resulting from COVID-19 have been essentially eliminated across the Company’s markets. The Company experienced a positive impact to its leasing revenue during the three months ~~ending September 30, 2021. Leasing~~ended March 31, 2022 as leasing revenue increased by approximately ~~11%~~9.6%, including joint ventures at the Company’s share, compared to the three months ended ~~September 30, 2020.~~March 31, 2021. This increase was primarily due to (i) increases in percentage rent, which was primarily driven by accelerating tenant sales and ~~all of the Company’s Centers being fully open and operating in the third quarter of 2021 as compared to the third quarter of 2020; and~~ (ii) decreases in bad debt reserves and decreases in retroactive rent abatements incurred in the ~~third~~first quarter of ~~2021~~2022 compared to the ~~third~~first quarter of ~~2020. During~~2021; which were partially offset by decreases in leasing revenue from the ~~three~~Disposition Properties and ~~nine months ended September 30, 2021, certain of~~The Shops at North Bridge, at the Company’s previously reserved accounts receivable were collected resulting in a reduction of bad debt expense. These collections were a result of improving economic conditions that have become evident as the impact of the pandemic has eased as well as collection efforts by the Company.Company's share (See “—Dispositions” above).

As a result of government-imposed capacity restrictions resulting from COVID-19 essentially being eliminated across the Company’s markets, combined with pent up demand, the positive economic impacts of consumer savings, fiscal stimulus and

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~~other factors, sales~~Sales and traffic at the ~~Company's~~Company’s Centers continued to ~~greatly~~ improve during the ~~third~~first quarter of ~~2021~~2022 with extremely high customer conversion rates. Traffic levels ~~continue~~during the first quarter of 2022 continued to range in the mid 90%'s’s relative to the pre-pandemic first quarter of 2019. Comparable tenant sales from spaces less than 10,000 square feet across the portfolio increased by ~~13.8%~~14.5% and 11.5% relative to the first quarter of 2021 and the pre-COVID sales during the ~~third~~first quarter of ~~2019. For the nine months ended September 30, 2021, comparable~~2019, respectively. Portfolio tenant sales ~~from~~per square foot for spaces less than 10,000 square feet ~~across~~for the ~~portfolio increased by 8.7% relative to sales during~~trailing twelve months ended March 31, 2022 were $843, which is a record high for the ~~same pre-COVID nine-month period of 2019.~~Company.

During the ~~third~~first quarter of ~~2021,~~2022, the Company signed ~~219~~220 leases for approximately ~~1.13 million~~617,000 square feet, ~~(excluding COVID-19 workout deals), which represents a 15% increase in the leased~~compared to 181 leases and 693,000 square feet relative to what was leased during the ~~pre-COVID third~~first quarter of ~~2019. For~~2021. Also during the ~~nine months ended September 30, 2021,~~first quarter of 2022, the Company ~~has signed 707 leases for approximately 2.98 million~~opened 188,000 square feet ~~which represents~~of new spaces.

The Company believes that diversity of use within its tenant base will be a ~~26%~~prominent internal growth catalyst at its Centers going forward, as new uses enhance the productivity and diversity of the tenant mix and have the potential to significantly increase incustomer traffic at the ~~amount of leased~~applicable Centers. During the quarter ended March 31, 2022, the Company signed deals for new stores with new-to-Macerich portfolio uses for over 103,000 square feet, ~~relative to what was leased over~~with another nearly 326,000 square feet of such new-to-Macerich portfolio leases currently in negotiation as of the ~~same pre-COVID nine month period ended September 30, 2019. 2019 was the highest volume leasing year for the Company since 2015.~~date of this Quarterly Report on Form 10-Q.

As of ~~September 30, 2021,~~March 31, 2022, the leased occupancy rate ~~increased to 90.3%~~was 91.3%, a 2.8% increase compared to the leased occupancy rate at ~~June 30,~~March 31, 2021 of ~~89.4%, which is also a sequential 1.80% occupancy improvement from~~ 88.5% ~~at March 31, 2021.~~.

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The ~~Company's~~Company’s rent collections have continued to significantly improve and are now comparable to ~~pre-COVID~~pre-COVID-19 levels. The Company has ~~made significant progress in~~now completed its negotiations with national and local tenants to secure rental ~~payments, despite a~~payments. Those negotiations resulted in the Company entering into lease amendments which granted significant ~~portion of the Company’s tenants requesting~~ rental assistance ~~whether~~ in the form of rent deferral and/or rent reduction. This effort of negotiating COVID-19 rental assistance agreements is essentially now completed. The lease amendments negotiated by the Company related to COVID-19 have resulted in a combination of rent payment deferrals and rent abatements. The majority of the Company’s leases required continued payment of rent by the Company’s tenants during the period of government mandated closures caused by COVID-19. Additionally, manyMany of the Company’s leases contain co-tenancy clauses. Certain Anchor or small tenant closures have become permanent, ~~following~~whether caused by the ~~re-opening of the Company's Centers,~~pandemic, or otherwise, and co-tenancy clauses within certain leases may be triggered as a result. The Company does not anticipate ~~any~~that the negative impact of such clauses on lease revenue will be significant.

During the year ended December 31, ~~2020,~~2021, the Company incurred ~~$56.4~~$47.6 million of rent abatements at the Company’s share relating primarily to 2020 rents as a result of COVID-19 and negotiated ~~$32.9~~$4.6 million of rent deferrals during the year ended December 31, ~~2020~~2021 at the Company’s share. During the three ~~and nine~~ months ended ~~September 30, 2021,~~March 31, 2022, the Company incurred ~~$2.0~~less than $0.1 million ~~and $46.3 million, respectively,~~ of rent abatements at the Company’s share ~~relating~~compared to $28.9 million for the three months ending March 31, 2021 which related primarily to 2020 rents as a result of ~~COVID-19, and negotiated $4.9 million of rent deferrals during the nine months ended September 30, 2021, at the Company’s share.~~COVID-19. The Company ~~did not negotiate any~~negotiated $0.6 million of rent deferrals during the three months ended ~~September 30, 2021.~~March 31, 2021 at the Company’s share compared to less than $0.1 million of rent deferrals during the three months ended March 31, 2022. As of ~~September 30, 2021, $6.7~~March 31, 2022, $3.6 million of the rent deferrals remain outstanding, with ~~$2.8~~$2.2 million scheduled to be repaid during the remainder of ~~2021~~2022 and the balance scheduled for repayment in ~~2022~~2023 and ~~2023.~~thereafter.

During ~~2020, there were 42~~2021, the pace of bankruptcy filings involving the Company’s tenants ~~totaling 322 leases and involving approximately 6.0 million square feet and $85.4 million of annual leasing revenue at the Company’s share. During 2021, the pace of such filings has~~ decreased substantially as ~~there were~~compared to 2020, with ten bankruptcy filings, ~~involving the Company's tenants,~~ totaling 62 leases and involving approximately 369,000 square feet and $11.9 million of annual leasing revenue at the ~~Company's~~Company’s share. This included two leases totaling 139,000 square feet with a single department store retailer that quickly emerged from bankruptcy and assumed both of its leases with the Company. Excluding this department store retailer, bankruptcy filings during 2021 ~~are~~ only involved approximately 230,000 square feet. The ~~current~~Company expects that the pace of ~~2021~~ bankruptcy filings ~~is well~~in 2022 will similarly be lower than years prior to 2020. Year-to-date in 2022, there has only been one bankruptcy filing involving a single tenant of the ~~past several years, dating back to 2015.~~Company involving only 3,000 square feet of leased space.

During ~~2021,~~2022, the Company expects to generate ~~significant~~positive cash flow from operations after recurring operating capital expenditures, leasing capital expenditures and payment of dividends. This assumption does not include any potential capital generated from dispositions, refinancings or issuances of common equity. This expected surplus will be used to de-lever the ~~Company's~~Company’s balance sheet as well as to fund the ~~Company's~~Company’s development and redevelopment pipeline.

Given the continued disruption and uncertainties from COVID-19 and the related impacts on the capital markets, the Company has secured extensions of term from one to three years of its near-term maturing non-recourse mortgage loans totaling an aggregate of approximately $950 million on Danbury Fair Mall, The Shops at Atlas Park, Fashion Outlets of Niagara, FlatIron Crossing, Green Acres Mall and Green Acres Commons. On October 26, 2021, the Company’s joint venture closed a $65 million, five-year loan, including extension options, that bears interest at LIBOR plus 4.15% to refinance The Shops at Atlas Park, which replaced a $67.5 million loan on the property. ~~The~~Additionally, on February 2, 2022, the Company’s joint venture in FlatIron Crossing ~~is currently negotiating a commitment for a new five-year $200 million loan to replace~~replaced the existing ~~$198.2~~$197 million loan on the ~~property.~~property with a new $175 million loan that bears interest at SOFR plus 3.70% and matures on February 9, 2025, including extension options. On April 29, 2022, the Company closed on a new $72 million loan at Pacific View with a fixed rate of 5.29% that matures on May 6, 2032. On May 6, 2022, the Company closed on a two-year extension of the $175.4 million loan on The Oaks to June 5, 2024. The loan will now bear a fixed interest rate of 5.25%, and the Company repaid $5.0 million of the outstanding loan balance at closing (See ~~"Financing Activities"~~“—Financing Activities” in ~~Management's~~Management’s Overview and Summary).

During the second quarter of 2021, the Company repaid and terminated its existing credit facility and entered into a new credit agreement, which provides for an aggregate $700 million facility, including a $525 million revolving loan facility that

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matures on April 14, 2023, with a one-year extension option, and a $175 million term loan facility that matures on April 14, 2024. Concurrent with the closing of this credit facility, the Company repaid $985.0 million of debt (See "Liquidity and Capital Resources"). As of September 30, 2021, the balances on the term loan facility and the revolving loan facility were $0 and $130.0 million (less the amount of unamortized deferred financing costs of $15.7 million), respectively.

Rising interest rates ~~could increase~~are increasing the cost of the Company’s borrowings due to its outstanding floating-rate debt and ~~lead~~have led to higher interest rates on new fixed-rate debt. In certain cases, the Company may limit its exposure to interest rate fluctuations related to a portion of its floating-rate debt by using interest rate cap and swap agreements. Such agreements, subject to current market conditions, allow the Company to replace floating-rate debt with fixed-rate debt in order to achieve its desired ratio of floating-rate to fixed-rate debt. ~~In today’s~~However, any interest rate ~~environment, the~~cap or swap agreements that the Company ~~had entered~~enters into may not be effective in reducing its exposure to interest rate changes. For example, the Company’s prior swap agreements, which expired on September 30, 2021, resulted in increases in interest ~~expense. Those swap agreements expired on September 30, 2021 and have not been renewed by the Company.~~expense in 2021.

Comparison of Three Months Ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~

Revenues:

Leasing revenue increased by ~~$21.6~~$23.9 million, or ~~12.3%~~13.3%, from ~~2020~~2021 to ~~2021.~~2022. The increase in leasing revenue is attributed to ~~increases~~an increase of ~~$16.2~~$28.3 million from the Same ~~Centers and $6.3 million from the JV Transition~~ Centers offset in part by a decrease of $0.9 million from the Disposition Properties. Leasing revenue includes the amortization of above and below-market leases, the amortization of straight-line rents, lease termination income, percentage rent and the provision for bad debts. The amortization of above and below-market leases was $0.6 million for both 2020 and 2021. The amortization of straight-line rents decreased from $5.5 million in 2020 to $(2.6) million in 2021. Lease termination income increased from $4.3 million in 2020 to $8.9 million in 2021. Percentage rent increased from $2.8 million in 2020 to $13.7 million in 2021. Provision for bad debts decreased from $10.6 million in 2020 to $1.6 million in 2021. The increase in leasing revenue and decrease in bad debt at the Same Centers is primarily the result of all Centers being opened in 2021 compared to some Centers being closed for all or a portion of the third quarter of 2020 and an increase in tenant sales to pre-COVID 2019 levels (See "Other Transactions and Events" in Management's Overview and Summary).

~~Other income increased from $4.3 million in 2020 to $8.2 million in 2021. This is primarily due to increased parking garage income resulting from increased traffic at the Centers.~~

~~Management Companies' revenue increased from $6.0 million in 2020 to $6.8 million in 2021.~~

~~Shopping Center and Operating Expenses:~~

Shopping center and operating expenses increased $6.0 million, or 9.3%, from 2020 to 2021. The increase in shopping center and operating expenses is attributed to increases of $2.1 million from the Same Centers and $5.0 million from the JV Transition Centers offset in part by a decrease of $1.1 million from the Disposition Properties. The increase in shopping center and operating expenses at the Same Centers is primarily the result of some Centers being closed for all or a portion of the third quarter of 2020 (See "Other Transactions and Events" in Management's Overview and Summary).

~~Leasing Expenses:~~

~~Leasing expenses increased from $5.5 million in 2020 to $6.2 million in 2021.~~

~~Management Companies' Operating Expenses:~~

~~Management Companies' operating expenses increased $1.6 million from 2020 to 2021.~~

~~REIT General and Administrative Expenses:~~

~~REIT general and administrative expenses was $7.6 million for both 2020 and 2021.~~

~~Depreciation and Amortization:~~

Depreciation and amortization decreased $3.1 million from 2020 to 2021. The decrease in depreciation and amortization is attributed to a decrease of $4.7 million from the Same Centers and $1.4 million from the Disposition Properties offset in part by an increase of $2.9 million from the JV Transition Centers.

~~Interest Expense:~~

~~Interest expense increased $3.2 million from 2020 to 2021. The increase in interest expense is attributed to an increase of $7.8 million from the Financing Arrangement~~ ~~(See Note 12—Financing Arrangement~~ ~~in the Company's Notes to the Consolidated Financial Statements) and~~ ~~$1.4 million from the JV Transition Centers offset in part by decreases of $4.3 million~~

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from the Company's revolving line of credit and $1.7 million from the Same Centers. The increase in interest expense from the Financing Arrangement is primarily due to the change in fair value of the underlying properties and the mortgage notes payable on the underlying properties.

~~Equity in Loss of Unconsolidated Joint Ventures:~~

~~Equity in loss of unconsolidated joint ventures decreased $10.8 million from 2020 to 2021~~. The decrease in equity in loss of unconsolidated joint ventures is primarily due to an increase in leasing revenue, percentage rent, other income and a decrease in the provision for bad debt as a result of the Centers being opened in 2021 compared to some Centers being closed for all or a portion of the third quarter of 2020 (See "Other Transactions and Events" in Management's Overview and Summary).

~~Gain on Sale or Write Down of~~ ~~Assets, net:~~

~~The gain on sale or write down of assets, net increased $106.8 million from 2020 to 2021 primarily due to the sale of Tucson La Encantada (See "Dispositions" in Management's Overview and Summary).~~

~~Net Income (Loss):~~

~~Net income increased $135.6 million from 2020 to 2021.~~ ~~The increase in net income is primarily due to the variances noted above and the sale of Tucson La Encantada.~~

~~Funds From Operations ("FFO"):~~

~~Primarily as a result of the factors mentioned above,~~ ~~FFO attributable to common stockholders and unit holders—diluted, excluding financing expense in connection with Chandler Freehold and loss on extinguishment of debt~~ ~~increased 21.6% from~~ ~~$83.4 million~~ ~~in 2020 to~~ ~~$101.4 million~~ in 2021. For a reconciliation of net income (loss) attributable to the Company, the most directly comparable GAAP financial measure, to FFO attributable to common stockholders and unit holders, excluding financing expense in connection with Chandler Freehold and loss on extinguishment of debt and ~~FFO attributable to common stockholders and unit holders—diluted, excluding financing expense in connection with Chandler Freehold and loss on extinguishment of debt, see "Funds From Operations ("FFO")" below.~~

~~Comparison of Nine Months Ended September 30, 2021 and 2020~~

~~Revenues:~~

Leasing revenue increased by $18.7 million, or 3.4%, from 2020 to 2021. The increase in leasing revenue is attributed to increases of $24.0 million from the JV Transition Centers offset in part by decreases of $2.1 million from the Same Centers and $3.2$4.4 million from the Disposition Properties. Leasing revenue includes the amortization of above and below-market leases, the amortization of straight-line rents, lease termination income, percentage rent and the provision for bad debts. The amortization of above and below-market leases increased from ~~$1.4~~$0.4 million in ~~2020~~2021 to ~~$1.6~~$0.6 million in ~~2021.~~2022. Straight-line rents ~~increased~~decreased from ~~$5.9~~$4.8 million in ~~2020~~2021 to ~~$8.2~~$(2.0) million in ~~2021.~~2022. Lease termination income increased from ~~$7.0~~$2.9 million in ~~2020~~2021 to ~~$16.9~~$11.8 million in ~~2021.~~2022. Percentage rent increased from ~~$6.5~~$6.9 million in ~~2020~~2021 to ~~$31.0~~$8.6 million in ~~2021.~~2022. Provision for bad debts decreased from ~~$39.2~~$3.2 million in ~~2020~~2021 to ~~a recovery of $(4.3)~~$0.6 million in ~~2021.~~2022.

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Other ~~income~~revenue increased from ~~$16.6~~$5.3 million in ~~2020~~2021 to ~~$25.4~~$6.3 million in ~~2021.~~2022. This increase is primarily due to increased parking garage income resulting from increased traffic at the Centers in ~~2021~~2022 compared to ~~2020~~2021 (See "Other Transactions and Events" in Management's Overview and Summary).

Management Companies' revenue ~~decreased~~increased from ~~$19.8 million in 2020 to $19.0~~$5.6 million in 2021 to $6.4 million in 2022 due to ~~a decrease~~an increase in management ~~fees and development~~ fees.

Shopping Center and Operating Expenses:

Shopping center and operating expenses ~~increased $22.0~~decreased $3.2 million, or ~~11.4%~~4.2%, from ~~2020~~2021 to ~~2021.~~2022. The ~~increase~~decrease in shopping center and operating expenses is attributed to ~~increases~~decreases of ~~$14.2 million from the JV Transition Centers and $9.7~~$1.6 million from the Same ~~Centers.~~Centers and $1.7 million from the Disposition Properties. The ~~increase~~decrease in shopping center and operating expenses at the Same Centers is primarily the result of ~~some Centers being closed for all or~~ a ~~portion of the third quarter of 2020 (See "Other Transactions and Events~~"decrease in ~~Management's Overview and Summary).~~property tax expense.

Leasing Expenses:

Leasing expenses ~~decreased~~increased from ~~$19.6 million in 2020 to $18.0~~$5.2 million in 2021 to $7.6 million in 2022 due to ~~a decrease~~an increase in compensation expense.

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Management Companies' Operating Expenses:

Management Companies' operating expenses ~~decreased $1.2~~increased $2.1 million from ~~2020~~2021 to ~~2021~~2022 due to ~~a decrease~~an increase in compensation expense.

REIT General and Administrative Expenses:

REIT general and administrative expenses decreased ~~$0.3~~$1.2 million from ~~2020~~2021 to ~~2021.~~2022 primarily due to a decrease in consulting expense.

Depreciation and Amortization:

Depreciation and amortization decreased ~~$9.6~~$5.5 million from ~~2020~~2021 to ~~2021.~~2022. The decrease in depreciation and amortization is attributed to decreases of ~~$16.4~~$2.5 million from the Same Centers and ~~$2.8~~$3.0 million from the Disposition Properties.

Interest Expense:

Interest expense decreased $2.0 million from 2021 to 2022. The decrease in interest expense was attributed to a decrease of $7.9 million from the Company's revolving line of credit and $0.8 million from the Disposition Properties, offset in part by an increase of ~~$8.9~~$6.7 million from the ~~JV Transition Centers.~~

~~Interest Expense:~~

~~Interest expense increased $83.9 million from 2020 to 2021. The increase~~financing arrangement discussed in ~~interest expense was attributed to an increase of $89.1 million from the Financing Arrangement~~ ~~(See~~ Note ~~12—Financing Arrangement~~12 in the Company's Notes to the Consolidated Financial ~~Statements) and~~ Statements~~$4.7 million from the JV Transition Centers offset in part by decreases of $5.1 million from the Same Centers and $4.8 million from the Company's revolving line of credit.~~. The increase in interest expense from the ~~Financing Arrangement~~financing arrangement is primarily due to the change in fair value of the underlying properties and the mortgage notes payable on the underlying properties.

Equity in (Loss) Income ~~(Loss)~~ of Unconsolidated Joint Ventures:

Equity in (loss) income ~~(loss)~~ of unconsolidated joint ventures ~~increased $37.2~~decreased $31.0 million from ~~2020~~2021 to ~~2021~~2022. The ~~increase~~decrease in equity in (loss) income ~~(loss)~~ of unconsolidated joint ventures is primarily due to the write-down of assets as a ~~decrease~~result of the reduction in the ~~provision for bad debts and an increase in percentage rent in 2021 compared to 2020.~~estimated holding periods of certain properties.

Gain ~~(Loss)~~(loss) on Sale or Write Down of Assets, net:

Gain ~~(Loss)~~(loss) on sale or write down of assets, net increased from a loss of ~~$28.8~~$21.3 million in ~~2020~~2021 to a gain of ~~$93.4~~$6.5 million in ~~2021.~~2022. The increase is primarily due to ~~the $36.7~~an increase of gains on sale of land in 2022, offset by $27.3 million of impairment ~~losses on Wilton Mall and Paradise Valley Mall in 2020 and $117.2 million gain on the sale of Tucson La Encantada in 2021 offset in part by the sale and impairment~~ loss ~~of $41.6 million~~ on Estrella Falls in 2021. The impairment ~~losses were~~loss was due to the reduction in the estimated holding ~~periods~~period of the ~~properties (See "Dispositions" in Management's Overview and Summary).~~property.

Net ~~Income (Loss):~~Loss:

Net ~~income increased~~loss decreased $~~81.8~~30.4 million from ~~2020~~2021 to ~~2021.~~2022. The ~~increase~~decrease in net ~~income~~loss is primarily due to the ~~variances noted above.~~write-down of assets held at unconsolidated joint ventures in 2022 as a result of the reduction in the estimated holding periods of certain properties.

Funds From Operations ("FFO"):

Primarily as a result of the factors mentioned above, FFO attributable to common stockholders and unit holders—diluted, excluding financing expense in connection with Chandler Freehold ~~and loss on extinguishment of debt~~ increased ~~14.2%~~48.7% from $~~266.6~~75.6 million in ~~2020~~2021 to $~~304.5~~112.4 million in ~~2021.~~2022. For a reconciliation of net ~~income (loss)~~loss attributable to the Company, the most directly comparable GAAP financial measure, to FFO attributable to common stockholders and unit holders, excluding financing expense in connection with

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Chandler Freehold ~~and loss on extinguishment of debt~~ and FFO attributable to common stockholders and unit holders—diluted, excluding financing expense in connection with Chandler Freehold ~~and loss on extinguishment of debt~~, see "Funds From Operations ("FFO")" below.

Operating Activities:

Cash provided by operating activities increased ~~$146.5~~$13.2 million from ~~2020~~2021 to ~~2021.~~2022. The increase is primarily due to the changes in assets and liabilities and the results, as discussed above.

Investing Activities:

Cash provided by investing activities ~~increased $378.9~~decreased $26.8 million from ~~2020~~2021 to ~~2021.~~2022. The ~~increase~~decrease in cash provided by investing activities is primarily attributed to ~~an increase~~a decrease in proceeds from the sale of assets of ~~$306.7~~$74.2 million ~~proceeds~~offset in part by increases in distributions from ~~notes receivable~~unconsolidated joint ventures of ~~$1.3~~$18.7 million ~~a decrease in~~and decreases of contributions to unconsolidated joint ventures of ~~$44.0 million and an increase of $42.8 million in distributions from unconsolidated joint ventures.~~

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$6.3 million.

Financing Activities:

Cash provided by financing activities decreased ~~$1.3~~$0.6 billion from ~~2020~~2021 to ~~2021.~~2022. The decrease in cash provided by financing activities is primarily due to ~~decreases in~~the proceeds ~~from mortgages, bank and other notes payable of $165.0 million and an increase in payments on mortgages, bank and other notes payable of $2.0 billion offset in part by net proceeds~~received from sales of common shares under the ATM Programs of ~~$829.9~~$597.1 million ~~and a decrease~~ in ~~dividends and distributions of $50.7 million.~~2021.

Liquidity and Capital Resources

The Company ~~has historically met~~anticipates meeting its liquidity needs for its operating expenses, debt service and dividend requirements for the next twelve months and beyond through cash generated from operations, distributions from unconsolidated joint ventures, working capital reserves and/or borrowings under its line of credit. Following the uncertain environment brought about by COVID-19, the Company took a number of previously disclosed measures in the years ended December 31, 2020 and 2021 to enhance its liquidity position over the short-term, but currently anticipates meeting its liquidity needs for the next twelve months as it has done historically.

Uses of Capital

The following tables summarize capital expenditures incurred at the Centers (at the Company's pro rata share):


		For the Nine Months Ended September 30,					For the Three Months Ended March 31,
(Dollars in thousands)	(Dollars in thousands)	2021		2020		(Dollars in thousands)	2022		2021
Consolidated Centers:	Consolidated Centers:					Consolidated Centers:
Acquisitions of property, building improvement and equipment	Acquisitions of property, building improvement and equipment	$	13,092	$	8,852	Acquisitions of property, building improvement and equipment	$	1,106	$	3,670
Development, redevelopment, expansions and renovations of Centers	Development, redevelopment, expansions and renovations of Centers	34,678		28,120		Development, redevelopment, expansions and renovations of Centers	10,761		6,558
Tenant allowances	Tenant allowances	13,445		8,182		Tenant allowances	5,454		4,696
Deferred leasing charges	Deferred leasing charges	1,956		2,162		Deferred leasing charges	350		510
		$	63,171	$	47,316		$	17,671	$	15,434
Joint Venture Centers:	Joint Venture Centers:					Joint Venture Centers:
Acquisitions of property, building improvement and equipment	Acquisitions of property, building improvement and equipment	$	7,408	$	5,866	Acquisitions of property, building improvement and equipment	$	1,236	$	842
Development, redevelopment, expansions and renovations of Centers	Development, redevelopment, expansions and renovations of Centers	41,783		86,505		Development, redevelopment, expansions and renovations of Centers	14,710		12,232
Tenant allowances	Tenant allowances	6,916		1,992		Tenant allowances	6,657		2,550
Deferred leasing charges	Deferred leasing charges	2,065		1,245		Deferred leasing charges	558		815
		$	58,172	$	95,608		$	23,161	$	16,439

The Company expects amounts to be incurred during the next twelve months for tenant allowances and deferred leasing charges to be less than or comparable to 2021. The Company expects to incur ~~less than~~approximately ~~$20.0~~$140.0 million during ~~the remaining period of 2021~~2022 for development, redevelopment, expansion and renovations. This ~~excludes~~includes the Company's share of the remaining development costs ~~associated with~~of One Westside of approximately $30.0 million, which is fully funded by a non-recourse construction facility. Capital for these expenditures, developments and/or redevelopments has been, and is expected to continue to be, obtained from a combination of cash on hand, debt or equity financings, which are expected to include borrowings under the Company's line of credit, from property financings and construction loans, each to the extent available.

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Sources of Capital

The Company has also generated liquidity in the past, and may continue to do so in the future, through equity offerings and issuances, property refinancings, joint venture transactions and the sale of non-core assets. For example, the Company sold Paradise Valley Mall in Phoenix, Arizona and Tucson La Encantada in Tucson, Arizona during the year ended December 31, 2021. The Company used the proceeds from these sales to pay down its line of credit and other debt obligations. Furthermore, the Company has filed a shelf registration statement, which registered an unspecified amount of common stock, preferred stock, depositary shares, debt securities, warrants, rights, stock purchase contracts and units that may be sold from time to time by the Company.

On each of February 1, 2021 and March 26, 2021, the Company registered a separate "at the market" offering program, pursuant to which the Company may issue and sell shares of its common stock having an aggregate offering price of up to $500 million under each ATM Program, or a total of $1.0 billion under the ATM Programs, in amounts and at times to be determined by the Company. The ~~following table sets forth certain information with respect to issuances made under each of the ATM Programs as of September 30, 2021.~~

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(Dollars and shares in thousands) February 2021 ATM Program March 2021 ATM Program
For the Three Months Ended: Number of Shares Issued Net Proceeds Sales Commissions Number of Shares Issued Net Proceeds Sales Commissions
March 31, 2021 36,001 $ 477,283 $ 9,746 9,991 $ 119,724 $ 2,449
June 30, 2021 686 $ 12,269 $ 254 13,229 $ 182,149 $ 3,719
September 30, 2021 — $ — $ — 2,122 $ 38,449 $ 787
Total 36,687 $ 489,552 $ 10,000 25,342 $ 340,322 $ 6,955

~~As of September 30, 2021, the Company had approximately $152.1 million of gross sales of its common stock available under the March 2021 ATM Program. The~~ February 2021 ATM Program was fully utilized as of June 30, 2021 and is no longer active. During the three months ended March 31, 2022, no shares were issued under the March 2021 ATM Program. As of March 31, 2022, the Company had approximately $151.7 million of gross sales of its common stock available under the March 2021 ATM Program.

The capital and credit markets can fluctuate and, at times, limit access to debt and equity financing for companies. The Company has been able to access capital; however, there is no assurance the Company will be able to do so in future periods or on similar terms and ~~conditions as a result of COVID-19 or other factors.~~conditions. Many factors impact the Company's ability to access capital, such as its overall debt level, interest rates, interest coverage ratios, ~~and~~ prevailing market ~~conditions.~~conditions and the impact of COVID-19. Increases in the Company's proportion of floating rate debt will cause it to be subject to interest rate fluctuations in the future.

The Company's total outstanding loan indebtedness, which includes mortgages and other notes payable, at ~~September 30, 2021~~March 31, 2022 was ~~$7.2~~$6.9 billion (consisting of $4.5 billion of consolidated debt, less ~~$456.8 million~~$0.5 billion of noncontrolling interests, plus ~~$3.1~~$2.9 billion of its pro rata share of unconsolidated joint venture debt). The majority of the Company's debt consists of fixed-rate conventional mortgage notes collateralized by individual properties. The Company expects that all of the maturities during the next twelve months will be refinanced, restructured, extended and/or paid off from the Company's line of credit or cash on hand.

The Company believes that the pro rata debt provides useful information to investors regarding its 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 for the Company’s total consolidated 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.

On March 29, 2021, the Company sold Paradise Valley Mall to a newly formed joint venture for $100 million. Concurrent with the sale, the Company elected to reinvest into the joint venture at a 5% ownership interest. The Company received $95.3 million of net proceeds. On September 17, 2021, the Company sold Tucson La Encantada in Tucson, Arizona for $165.3 million. The Company received $100.1 million of net cash proceeds which was used to repay debt (See “Dispositions” in Management’s Overview and Summary).

On April 14, 2021, the Company terminated its existing credit facility and entered into a new credit agreement, which provides for an aggregate $700 million facility, including a $525 million revolving loan facility that matures on April 14, 2023, with a one-year extension option, and a $175 million term loan facility that matures on April 14, 2024. The revolving loan facility can be expanded up to $800 million, subject to receipt of lender commitments and other conditions. All obligations under the facility are guaranteed unconditionally by the Company and are secured in the form of mortgages on certain wholly-owned assets and pledges of equity interests held by certain of the Company’s subsidiaries. The new credit facility bears interest at LIBOR plus a spread of 2.25% to 3.25% depending on Company’s overall leverage level. As of September 30, 2021, the borrowing rate was LIBOR plus 2.25%. As of September 30, 2021, borrowings under the facility were $130 million less unamortized deferred finance costs of $15.7 million for the revolving loan facility at a total interest rate of 3.69%. As of September 30, 2021, the Company's availability under the revolving loan facility for additional borrowings was $394.7 million.

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The Company drew the $175 million term loan facility in its entirety simultaneously with entering into the new credit agreement and subsequently paid off the remaining balance outstanding on the term loan facility with proceeds from the sale of Tucson La Encantada.

Concurrently with entering into the new credit agreement, the Company repaid $985 million of debt, which included terminating and repaying all amounts outstanding under its prior revolving line of credit facility. The Company had four interest rate swap agreements that effectively converted a total of $400 million of the outstanding balance under the prior credit agreement from floating rate debt of LIBOR plus 1.65% to fixed rate debt of 4.50% until September 30, 2021. These swaps were hedged against the Santa Monica Place floating rate loan and a portion of the Green Acres Commons floating rate loan and effectively converted the Santa Monica Place loan and a majority of the Green Acres Commons loan to fixed rate debt through September 30, 2021. The Company did not renew the swaps that expired on September 30, 2021 and, as a result, on October 1, 2021, the Santa Monica Place and Green Acres Commons loans reverted back to floating rate loans with an effective interest rate of 1.81% and 3.1%, respectively, as of such date (See Note 5 – Derivative Instruments and Hedging Activities and Note 10 – Mortgage Notes Payable in the Company’s Notes to the Consolidated Financial Statements).

~~Cash dividends and distributions for the nine months ended September 30, 2021 were $104.5 million, which were funded by operations.~~

~~At September 30, 2021, the Company was in compliance with all applicable loan covenants under its agreements.~~

~~At September 30, 2021, the Company had cash and cash equivalents of $117.6 million.~~

~~Off-Balance Sheet Arrangements:~~

The Company accounts for its investments in joint ventures that it does not have a controlling interest or is not the primary beneficiary using the equity method of accounting and those investments are reflected on the consolidated balance sheets of the Company as investments in unconsolidated joint ventures.

As of ~~September 30, 2021,~~March 31, 2022, one of the ~~Company's~~Company’s joint ventures had $50.0 million of debt that could become recourse to the Company should the joint venture be unable to discharge the obligation of the related debt.

Additionally, as of ~~September 30, 2021,~~March 31, 2022, the Company was contingently liable for ~~$40.9~~$41.0 million in letters of credit guaranteeing performance by the Company of certain obligations relating to the Centers. As of ~~September 30, 2021, $40.6~~March 31, 2022, $40.7 million of these letters of credit were secured by restricted cash. The Company does not believe that these letters of credit will result in a liability to the Company.

~~Contractual Obligations:~~On October 26, 2021, the Company’s joint venture closed a $65 million, five-year loan, including extension options, that bears interest at LIBOR plus 4.15% to refinance The Shops at Atlas Park, which replaced a $67.5 million loan on the property. Additionally, on February 2, 2022, the Company’s joint venture in FlatIron Crossing replaced the existing $197 million loan on the property with a new $175 million loan that bears interest at SOFR plus 3.70% and matures on February 9, 2025, including extension options. On April 29, 2022, the Company closed on a new $72 million loan at Pacific View with a fixed rate of 5.29% that matures on May 6, 2032. On May 6, 2022, the Company closed on a two-year extension of the $175.4 million loan on The Oaks to June 5, 2024. The loan will now bear a fixed interest rate of 5.25%, and the Company repaid $5.0 million of the outstanding balance at closing.

The Company has a $700 million credit facility, including a $525 million revolving loan facility that matures on April 14, 2023, with a one-year extension option, and a $175 million term loan facility that matures on April 14, 2024. The revolving

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loan facility can be expanded up to $800 million, subject to receipt of lender commitments and other conditions. All obligations under the credit facility are guaranteed unconditionally by the Company and are secured in the form of mortgages on certain wholly-owned assets and pledges of equity interests held by certain of the Company’s subsidiaries. The credit facility bears interest at LIBOR plus a spread of 2.25% to 3.25% depending on Company’s overall leverage level. As of March 31, 2022, the borrowing rate was LIBOR plus 2.25%. As of March 31, 2022, borrowings under the credit facility were $76.0 million less unamortized deferred finance costs of $12.6 million for the revolving loan facility at a total interest rate of 3.76%. As of March 31, 2022, the Company’s availability under the revolving loan facility for additional borrowings was $448.7 million.

Cash dividends and distributions for the three months ended March 31, 2022 were $41.3 million, which were funded by operations.

At March 31, 2022, the Company was in compliance with all applicable loan covenants under its agreements.

At March 31, 2022, the Company had cash and cash equivalents of $128.2 million.

Material Cash Commitments:

The following is a schedule of ~~contractual obligations~~material cash commitments as of ~~September 30, 2021~~March 31, 2022 for the consolidated Centers over the periods in which they are expected to be paid (in thousands):
Payment Due by Period
Contractual Obligations Total Less than
1 year 1 - 3
years 3 - 5
years More than
five years
Long-term debt obligations (includes expected interest payments)(1) $ 5,377,989 $ 657,110 $ 1,750,045 $ 981,389 $ 1,989,445
Lease liabilities(2) 173,529 6,387 29,258 22,056 115,828
Purchase obligations(3) 2,920 2,920 — — —
Other long-term liabilities 193,053 121,061 28,199 13,744 30,049
$ 5,747,491 $ 787,478 $ 1,807,502 $ 1,017,189 $ 2,135,322


	Payment Due by Period
Cash Commitments	Total		Less than 1 year		1 - 3 years		3 - 5 years		More than five years
Long-term debt obligations (includes expected interest payments)(1)	$	5,201,921	$	1,306,727	$	1,574,072	$	687,878	$	1,633,244
Lease obligations(2)	192,966		15,813		34,045		22,574		120,534
	$	5,394,887	$	1,322,540	$	1,608,117	$	710,452	$	1,753,778

(1)Interest payments on floating rate debt were based on rates in effect at ~~September 30, 2021.~~March 31, 2022.

(2)See Note 8—Leases in the Company's Notes to the Consolidated Financial Statements.

~~(3)See Note 16—Commitments and Contingencies in the Company's Notes to the Consolidated Financial Statements.~~

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Funds From Operations ("FFO")

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 GAAP measures. The National Association of Real Estate Investment Trusts 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. Adjustments for unconsolidated joint ventures are calculated to reflect FFO on the same basis.

The Company accounts for its joint venture in Chandler Freehold as a financing arrangement. In connection with this treatment, the Company recognizes financing expense on (i) the changes in fair value of the financing arrangement obligation, (ii) any payments to the joint venture partner equal to their pro rata share of net income and (iii) any payments to the 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 the joint venture partner less than or in excess of their pro rata share of net income.

The Company also presents FFO excluding financing expense in connection with Chandler ~~Freehold and loss on extinguishment of debt.~~Freehold.

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 meaningful measure of its operating results in comparison to the operating results of other REITs. In addition, the Company believes that FFO excluding financing expense in connection with Chandler Freehold and non-routine costs associated with extinguishment of debt provide useful supplemental information regarding the Company’s performance as they show 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 further 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 believes that 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

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needs. The Company also cautions that FFO, as presented, may not be comparable to similarly titled measures reported by other real estate investment trusts.

Management compensates for the limitations of FFO by providing investors with financial statements prepared according to GAAP, along with this detailed discussion of FFO and a reconciliation of net (loss) income to FFO and FFO—diluted. Management believes that to further understand the Company's performance, FFO should be compared with the Company's reported net (loss) income and considered in addition to cash flows in accordance with GAAP, as presented in the Company's consolidated financial statements.

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The following reconciles net ~~income (loss)~~loss attributable to the Company to FFO and FFO—diluted attributable to common stockholders and unit holders-basic and diluted, excluding financing expense in connection with Chandler Freehold ~~and loss on extinguishment of debt~~ for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 ~~and 2020~~ (dollars and shares in thousands):


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2021		2020		2021		2020				2022		2021
Net income (loss) attributable to the Company		$	106,702	$	(22,191)	$	31,333	$	(39,785)
Adjustments to reconcile net income (loss) attributable to the Company to FFO attributable to common stockholders and unit holders—basic and diluted:
Net loss attributable to the Company										Net loss attributable to the Company		$	(37,182)	$	(63,604)
Adjustments to reconcile net loss attributable to the Company to FFO attributable to common stockholders and unit holders—basic and diluted:										Adjustments to reconcile net loss attributable to the Company to FFO attributable to common stockholders and unit holders—basic and diluted:
Noncontrolling interests in the Operating Partnership	Noncontrolling interests in the Operating Partnership	5,922		(1,618)		1,653		(2,912)		Noncontrolling interests in the Operating Partnership		(1,501)		(4,356)
(Gain) loss on sale or write down of assets, net—consolidated assets	(Gain) loss on sale or write down of assets, net—consolidated assets	(118,566)		(11,786)		(93,356)		28,784		(Gain) loss on sale or write down of assets, net—consolidated assets		(6,453)		21,283

Add: noncontrolling interests share of (loss) gain on sale or write down of assets—consolidated assets		(2)		929		5,853		929
Add: noncontrolling interests share of gain (loss) on sale or write down of assets—consolidated assets										Add: noncontrolling interests share of gain (loss) on sale or write down of assets—consolidated assets		4,422		(46)
Add: gain on sale of undepreciated assets—consolidated assets	Add: gain on sale of undepreciated assets—consolidated assets	95		12,362		19,913		12,402		Add: gain on sale of undepreciated assets—consolidated assets		15,082		4,096
Less: noncontrolling interests share of gain of undepreciated assets—consolidated assets	Less: noncontrolling interests share of gain of undepreciated assets—consolidated assets	(4)		—		(6,089)		—		Less: noncontrolling interests share of gain of undepreciated assets—consolidated assets		(4,422)		(1,191)
Loss on write-down of non-real estate assets—consolidated assets	Loss on write-down of non-real estate assets—consolidated assets	—		(1,361)		(2,200)		(4,154)		Loss on write-down of non-real estate assets—consolidated assets		(2,000)		(1,200)
(Gain) loss on sale or write down of assets—unconsolidated joint ventures, net(1)		(38)		71		41		77
Loss (gain) on sale or write down of assets—unconsolidated joint ventures, net(1)										Loss (gain) on sale or write down of assets—unconsolidated joint ventures, net(1)		29,827		(27)

Add: gain on sale of undepreciated assets—unconsolidated joint ventures(1)	Add: gain on sale of undepreciated assets—unconsolidated joint ventures(1)	38		—		38		—		Add: gain on sale of undepreciated assets—unconsolidated joint ventures(1)		599		—
Depreciation and amortization—consolidated assets	Depreciation and amortization—consolidated assets	75,465		78,605		231,491		241,112		Depreciation and amortization—consolidated assets		72,856		78,396
Less: noncontrolling interests in depreciation and amortization—consolidated assets	Less: noncontrolling interests in depreciation and amortization—consolidated assets	(4,173)		(3,855)		(13,333)		(11,472)		Less: noncontrolling interests in depreciation and amortization—consolidated assets		(7,813)		(4,075)
Depreciation and amortization—unconsolidated joint ventures(1)	Depreciation and amortization—unconsolidated joint ventures(1)	44,905		50,775		138,137		146,702		Depreciation and amortization—unconsolidated joint ventures(1)		44,401		47,106
Less: depreciation on personal property	Less: depreciation on personal property	(3,246)		(3,460)		(9,933)		(11,662)		Less: depreciation on personal property		(2,950)		(3,378)
FFO attributable to common stockholders and unit holders—basic and diluted	FFO attributable to common stockholders and unit holders—basic and diluted	107,098		98,471		303,548		360,021		FFO attributable to common stockholders and unit holders—basic and diluted		104,866		73,004
Financing expense in connection with Chandler Freehold	Financing expense in connection with Chandler Freehold	(6,723)		(15,104)		(25)		(93,437)		Financing expense in connection with Chandler Freehold		7,505		2,551

FFO attributable to common stockholders and unit holders, excluding financing expense in connection with Chandler Freehold—basic and diluted	FFO attributable to common stockholders and unit holders, excluding financing expense in connection with Chandler Freehold—basic and diluted	100,375		83,367		303,523		266,584		FFO attributable to common stockholders and unit holders, excluding financing expense in connection with Chandler Freehold—basic and diluted		$	112,371	$	75,555
Loss on extinguishment of debt—consolidated assets		1,007		—		1,007		—

FFO attributable to common stockholders and unit holders, excluding financing expense in connection with Chandler Freehold and loss on extinguishment of debt—basic and diluted		$	101,382	$	83,367	$	304,530	$	266,584

Weighted average number of FFO shares outstanding for:	Weighted average number of FFO shares outstanding for:									Weighted average number of FFO shares outstanding for:
FFO attributable to common stockholders and unit holders—basic(2)	FFO attributable to common stockholders and unit holders—basic(2)	223,033		160,509		202,877		155,694		FFO attributable to common stockholders and unit holders—basic(2)		223,501		169,436
Adjustments for impact of dilutive securities in computing FFO—diluted:	Adjustments for impact of dilutive securities in computing FFO—diluted:									Adjustments for impact of dilutive securities in computing FFO—diluted:
Share and unit based compensation plans	Share and unit based compensation plans	—		—		—		—		Share and unit based compensation plans		—		—
Weighted average number of FFO shares outstanding for FFO attributable to common stockholders and unit holders—basic and diluted(2)	Weighted average number of FFO shares outstanding for FFO attributable to common stockholders and unit holders—basic and diluted(2)	223,033		160,509		202,877		155,694		Weighted average number of FFO shares outstanding for FFO attributable to common stockholders and unit holders—basic and diluted(2)		223,501		169,436

(1) Unconsolidated joint ventures are presented at the Company's pro rata share.

(2) Calculated based upon basic net income as adjusted to reach basic FFO. Includes ~~9.8~~8.7 million and 10.9 million of OP Units outstanding for the three months ended ~~September 30, 2021 and 2020, respectively, and 10.2 million and 10.6 million for the nine months ended~~ ~~September 30,~~March 31, 2022 and 2021, ~~and 2020,~~ respectively.

The computation of FFO—diluted shares outstanding includes the effect of share and unit-based compensation plans using the treasury stock method. It also assumes the conversion of MACWH, LP common and preferred units to the extent that they are dilutive to the FFO—diluted computation.

4236

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

The Company's primary market risk exposure is interest rate risk. The Company has managed and will continue to manage interest rate risk by (1) maintaining a ratio of fixed rate, long-term debt to total debt such that floating rate exposure is kept at an acceptable level, (2) reducing interest rate exposure on certain long-term floating rate debt through the use of interest rate caps and/or swaps with matching maturities where appropriate, (3) using treasury rate locks where appropriate to fix rates on anticipated debt transactions, and (4) taking advantage of favorable market conditions for long-term debt and/or equity.

The following table sets forth information as of ~~September 30, 2021~~March 31, 2022 concerning the Company's long-term debt obligations, including principal cash flows by scheduled maturity, weighted average interest rates and estimated fair value (dollars in thousands):


		Expected Maturity Date																								Expected Maturity Date
		For the twelve months ending September 30,																								For the twelve months ending March 31,
		2022			2023			2024			2025			2026			Thereafter			Total			Fair Value			2023			2024			2025			2026			2027			Thereafter			Total			Fair Value
CONSOLIDATED CENTERS:	CONSOLIDATED CENTERS:																								CONSOLIDATED CENTERS:
Long-term debt:	Long-term debt:																								Long-term debt:
Fixed rate~~(1)~~	Fixed rate~~(1)~~	$	479,813		$	663,318		$	471,219		$	607,334		$	214,621		$	1,785,000		$	4,221,305		$	4,124,283	Fixed rate~~(1)~~	$	725,098		$	98,749		$	978,205		$	218,289		$	325,000		$	1,460,000		$	3,805,341		$	3,645,423
Average interest rate	Average interest rate	4.57		%	4.19		%	4.41		%	3.49		%	3.49		%	3.92		%	4.01		%			Average interest rate	4.19		%	5.73		%	3.70		%	3.49		%	3.59		%	4.00		%	3.94		%
Floating rate	Floating rate	—			37,820			317,102			—			—			—			354,922			354,892		Floating rate	427,820			192,102			76,000			—			—			—			695,922			678,095
Average interest rate	Average interest rate	—		%	3.07		%	3.39		%	—		%	—		%	—		%	3.35		%			Average interest rate	2.21		%	4.00		%	2.57		%	—		%	—		%	—		%	2.74		%
Total debt—Consolidated Centers	Total debt—Consolidated Centers	$	479,813		$	701,138		$	788,321		$	607,334		$	214,621		$	1,785,000		$	4,576,227		$	4,479,175	Total debt—Consolidated Centers	$	1,152,918		$	290,851		$	1,054,205		$	218,289		$	325,000		$	1,460,000		$	4,501,263		$	4,323,518
UNCONSOLIDATED JOINT VENTURE CENTERS:	UNCONSOLIDATED JOINT VENTURE CENTERS:																								UNCONSOLIDATED JOINT VENTURE CENTERS:
Long-term debt (at Company's pro rata share):	Long-term debt (at Company's pro rata share):																								Long-term debt (at Company's pro rata share):
Fixed rate	Fixed rate	$	152,530		$	673,865		$	372,033		$	34,504		$	551,102		$	1,224,921		$	3,008,955		$	2,963,119	Fixed rate	$	393,868		$	653,241		$	32,343		$	227,668		$	345,802		$	1,046,215		$	2,699,137		$	2,621,669
Average interest rate	Average interest rate	3.98		%	3.52		%	4.08		%	3.84		%	3.83		%	3.88		%	3.82		%			Average interest rate	3.73		%	3.70		%	3.95		%	4.13		%	3.63		%	3.91		%	3.82		%
Floating rate	Floating rate	33,907			—			10,802			55,060			—			—			99,769			95,855		Floating rate	—			11,500			66,809			—			121,750			—			200,059			180,890
Average interest rate	Average interest rate	2.09		%	—		%	1.98		%	1.79		%	—		%	—		%	1.91		%			Average interest rate	—		%	2.06		%	1.93		%	—		%	3.82		%	—		%	3.09		%
Total debt—Unconsolidated Joint Venture Centers	Total debt—Unconsolidated Joint Venture Centers	$	186,437		$	673,865		$	382,835		$	89,564		$	551,102		$	1,224,921		$	3,108,724		$	3,058,974	Total debt—Unconsolidated Joint Venture Centers	$	393,868		$	664,741		$	99,152		$	227,668		$	467,552		$	1,046,215		$	2,899,196		$	2,802,559

(1) The notional amount of the swaps that were previously hedged against the Company's prior revolving line of credit are now hedged against the Santa Monica Place floating rate debt and a portion of Green Acres Commons floating rate debt effectively converting the Santa Monica Place loan and a majority of the Green Acres Commons loan to fixed rate debt through September 30, 2021. The Company did not renew the swaps and, as a result, on October 1, 2021, these loans reverted back to floating interest rate loans (See Note 5—Derivative Instruments and Hedging Activities in the Company's Notes to the Consolidated Financial Statements).

The Consolidated Centers' total fixed rate debt at each of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 was ~~$4.2~~$3.8 billion. The average interest rate on the fixed rate debt at ~~September 30, 2021~~each of March 31, 2022 and December 31, ~~2020~~2021 was ~~4.01% and 3.98%, respectively.~~3.94%. The Consolidated Centers' total floating rate debt at each of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 was ~~$0.4 billion~~$695.9 million and ~~$1.7 billion,~~$738.9 million, respectively. The average interest rate on the floating rate debt at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 was ~~3.35%~~2.74% and ~~2.08%~~2.61%, respectively.

The Company's pro rata share of the unconsolidated joint venture Centers' fixed rate debt at ~~each of September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 was ~~$3.0 billion.~~$2.7 billion and $2.8 billion, respectively. The average interest rate on the fixed rate debt at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 was 3.82%. and 3.83%, respectively. The Company's pro rata share of the unconsolidated joint venture Centers' floating rate debt at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 was ~~$99.8~~$200.1 million and ~~$70.5~~$104.3 million, respectively. The average interest rate on the floating rate debt at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 was ~~1.91%~~3.09% and ~~2.02%~~2.60%, respectively.

The Company uses derivative financial instruments in the normal course of business to manage or hedge interest rate risk and records all derivatives on the balance sheet at fair value. Interest rate cap agreements offer protection against floating rates on the notional amount from exceeding the rates noted in the above schedule, and interest rate swap agreements effectively replace a floating rate on the notional amount with a fixed rate as noted above. ~~These swap agreements expired on September 30, 2021 and have not been renewed by the Company.~~ As of ~~September 30, 2021,~~March 31, 2022, the Company has ~~one~~three interest rate cap ~~agreement and four interest rate swap~~ agreements in place (See Note 4—Investments in Unconsolidated Joint Ventures and Note 5—Derivative Instruments and Hedging Activities in the Company's Notes to the Consolidated Financial Statements).

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In addition, the Company has assessed the market risk for its floating rate debt and believes that a 1% increase in interest rates would decrease future earnings and cash flows by approximately ~~$4.5~~$9.0 million per year based on ~~$0.5~~$0.9 billion of floating rate debt outstanding at ~~September 30, 2021.~~March 31, 2022.

The fair value of the Company's long-term debt is estimated based on a present value model utilizing interest rates that reflect the risks associated with long-term debt of similar risk and duration. In addition, the method of computing fair value for mortgage notes payable included a credit value adjustment based on the estimated value of the property that serves as collateral for the underlying debt (See Note 10—Mortgage Notes Payable and Note 11—Bank and Other Notes Payable in the Company's Notes to the Consolidated Financial Statements).

~~In July 2017,~~The LIBOR benchmark has been the ~~Financial Conduct Authority (the “FCA”),~~subject of national, international and other regulatory guidance and proposals for reform and replacement, with most LIBOR settings relevant to the ~~authority that regulates LIBOR, announced that it intends~~Company not expected to ~~stop compelling banks to submit rates for the calculation of LIBOR after 2021, and, on March 5, 2021, the FCA announced that USD-LIBOR will no longer~~ be published after June 30, 2023. ~~In the event that LIBOR is discontinued after June 30, 2023, the interest rate for the variable rate debt~~As a result, any of the ~~Company and its joint ventures and the swap rate for the Company’s interest rate swaps following~~Company's LIBOR-based borrowings that extend beyond such ~~event~~date will need to be ~~based on~~converted to a replacement rate. If a contract is not transitioned to an alternative variable rate ~~as specified in~~and LIBOR is discontinued, the ~~applicable documentation~~impact is likely to vary by contract. As of March 31, 2022, each of the agreements governing the Company's variable rate debt provides for the replacement of LIBOR if it becomes unavailable during the term of such ~~debt or swaps or as otherwise agreed upon. Such an event would~~agreement.

The discontinuation of LIBOR will not affect the ~~Company’s~~Company's ability to borrow or maintain already outstanding borrowings or swaps, but if the ~~alternative~~Company's contracts indexed to LIBOR, including certain contracts governing the Company's variable rate debt, the variable rate debt of the Company's joint ventures and the Company's interest rate swaps, are converted to an alternative rate, the differences could beresult in interest costs that are higher ~~and more volatile~~ than if LIBOR ~~prior~~remained available. It is not yet possible to ~~its discontinuance.~~predict the magnitude of LIBOR’s end on the Company's borrowing costs given the remaining uncertainty about which rates will replace LIBOR.

Item 4. Controls and Procedures

As required by Rule 13a-15(b) under the Securities Exchange Act of 1934, management carried out an evaluation, under the supervision and with the participation of the Company's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on their evaluation as of ~~September 30, 2021,~~March 31, 2022, the Company's Chief Executive Officer and Chief Financial Officer have concluded that the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) were effective to ensure that the information required to be disclosed by the Company in the reports that it files or submits under the Securities Exchange Act of 1934 is (a) recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms and (b) accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

In addition, there has been no change in the Company's internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15(d)-15(f) under the Securities Exchange Act of 1934) that occurred during the Company's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II OTHER INFORMATION

Item 1. Legal Proceedings

None of the Company, the Operating Partnership, the Management Companies or their respective affiliates are currently involved in any material legal proceedings, although from time-to-time they are involved in various legal proceedings that arise in the ordinary course of business.

Item 1A. Risk Factors

There have been no material changes to the risk factors relating to the Company set forth under the caption "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2020.~~

2021.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Issuer Purchases of Equity Securities


Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (1)
~~July~~January 1, ~~2021~~2022 to ~~July~~January 31, ~~2021~~2022	—	$	—	—	$	278,707,048
~~August~~February 1, ~~2021~~2022 to ~~August 31, 2021~~February 28, 2022	—	—		—	$	278,707,048
~~September~~March 1, ~~2021~~2022 to ~~September 30, 2021~~March 31, 2022	—	—		—	$	278,707,048
Total	—	$	—	—

(1)On February 12, 2017, the Company's Board of Directors authorized the repurchase of up to $500.0 million of the Company's outstanding common shares from time to time as market conditions warrant.

Item 3. Defaults Upon Senior Securities

Not Applicable

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information

Not Applicable

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Item 6. Exhibits


Exhibit Number						Description
2.1						Master Agreement, dated November 14, 2014, by and among Pacific Premier Retail LP, MACPT LLC, Macerich PPR GP LLC, Queens JV LP, Macerich Queens JV LP, Queens JV GP LLC, 1700480 Ontario Inc. and the Company (incorporated by reference as an exhibit to the Company’s Current Report on Form 8-K, event date November 14, 2014).
3.1						Articles of Amendment and Restatement of the Company (incorporated by reference as an exhibit to the Company's Registration Statement on Form S-11, as amended (No. 33-68964)) (Filed in paper - hyperlink is not required pursuant to Rule 105 of Regulation S-T).
3.1.1						Articles Supplementary of the Company (incorporated by reference as an exhibit to the Company's Current Report on Form 8-K, event date May 30, 1995) (Filed in paper - hyperlink is not required pursuant to Rule 105 of Regulation S-T).
3.1.2						Articles Supplementary of the Company (with respect to the first paragraph) (incorporated by reference as an exhibit to the Company's 1998 Form 10-K).
3.1.3						Articles Supplementary of the Company (Series D Preferred Stock) (incorporated by reference as an exhibit to the Company's Current Report on Form 8-K, event date July 26, 2002).
3.1.4						Articles Supplementary of the Company (incorporated by reference as an exhibit to the Company's Registration Statement on Form S-3, as amended (No. 333-88718)).
3.1.5						Articles of Amendment of the Company (declassification of Board) (incorporated by reference as an exhibit to the Company's 2008 Form 10-K).
3.1.6						Articles Supplementary of the Company (incorporated by reference as an exhibit to the Company's Current Report on Form 8-K, event date February 5, 2009).
3.1.7						Articles of Amendment of the Company (increased authorized shares) (incorporated by reference as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2009).
3.1.8						Articles of Amendment of the Company (to eliminate the supermajority vote requirement to amend the charter and to clarify a reference in Article NINTH) (incorporated by reference as an exhibit to the Company’s Current Report on Form 8-K, event date May 30, 2014).
3.1.9						Articles Supplementary of the Company (election to be subject to Section 3-803 of the Maryland General Corporation Law) (incorporated by reference as an exhibit to the Company’s Current Report on Form 8-K, event date March 17, 2015).
3.1.10						Articles Supplementary of the Company (Series E Preferred Stock) (incorporated by reference as an exhibit to the Company’s Current Report on Form 8-K, event date March 18, 2015).
3.1.11						Articles Supplementary of the Company (reclassification of Series E Preferred Stock to Preferred Stock) (incorporated by reference as an exhibit to the Company’s Current Report on Form 8-K, event date May 7, 2015).
3.1.12						Articles Supplementary of the Company (repeal of election to be subject to Section 3-803 of the Maryland General Corporation Law) (incorporated by reference as an exhibit to the Company’s Current Report on Form 8-K, event date May 28, 2015).
3.1.13						Articles Supplementary of the Company (opting out of provisions of Subtitle 8 of Title 3 of the Maryland General Corporate Law (MUTA provisions)) (incorporated by reference as an exhibit to the Company’s Current Report on Form 8-K, event date April 24, 2019).
3.1.14						Articles of Amendment of the Company (increased authorized shares) (incorporated by reference as an exhibit to the Company's current Report on Form 8-K, event date May 28, 2021).
3.2						Amended and Restated Bylaws of the Company (incorporated by reference as an exhibit to the Company's Current Report on Form 8-K, event date April 24, 2019).
~~10.1~~						First Amendment to Credit Agreement, dated as of July 27, 2021, by and among the Company, as guarantor, the Partnership, as borrower, certain subsidiary guarantors, and Deutsche Bank AG New York Branch, as administrative agent for the lenders (incorporated by reference as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2021).

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Exhibit Number						Description
31.1						Section 302 Certification of Thomas O'Hern, Chief Executive Officer
31.2						Section 302 Certification of Scott Kingsmore, Chief Financial Officer
32.1**						Section 906 Certifications of Thomas O'Hern and Scott Kingsmore
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*).

** Furnished herewith.

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Signature

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

THE MACERICH COMPANY

By:

/s/ SCOTT W. KINGSMORE

Scott W. Kingsmore

Senior Executive Vice President, Treasurer and Chief Financial Officer

Date:

~~November 8, 2021~~May 10, 2022

(Principal Financial Officer)

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Twelve months ending September 30,
2022	$	376,459
2023	334,825
2024	281,610
2025	230,173
2026	184,369
Thereafter	529,860
	$	1,937,296


(Dollars and shares in thousands)	February 2021 ATM Program					March 2021 ATM Program
For the Three Months Ended:	Number of Shares Issued	Net Proceeds		Sales Commissions		Number of Shares Issued	Net Proceeds		Sales Commissions
March 31, 2021	36,001	$	477,283	$	9,746	9,991	$	119,724	$	2,449
June 30, 2021	686	$	12,269	$	254	13,229	$	182,149	$	3,719
September 30, 2021	—	$	—	$	—	2,122	$	38,449	$	787
Total	36,687	$	489,552	$	10,000	25,342	$	340,322	$	6,955


	Payment Due by Period
Contractual Obligations	Total		Less than 1 year		1 - 3 years		3 - 5 years		More than five years
Long-term debt obligations (includes expected interest payments)(1)	$	5,377,989	$	657,110	$	1,750,045	$	981,389	$	1,989,445
Lease liabilities(2)	173,529		6,387		29,258		22,056		115,828
Purchase obligations(3)	2,920		2,920		—		—		—
Other long-term liabilities	193,053		121,061		28,199		13,744		30,049
	$	5,747,491	$	787,478	$	1,807,502	$	1,017,189	$	2,135,322