Macerich : 2023 Macerich Annual Report

T O G E T H E R F O R T O M O R R O W

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DIRECTORS

Peggy Alford	Daniel J. Hirsch
Previous Executive Vice President,	Chief Financial Officer and Secretary
Global Sales of PayPal	of Anzu Special Acquisition Corp I
Eric K. Brandt	Jackson Hsieh
Retired Executive Vice President and Chief	President and Chief Executive Officer
Financial Officer of Broadcom Corporation	of The Macerich Company
Edward C. Coppola	Marianne Lowenthal
Former President of The Macerich Company	President and Sole Principal of Granadier Co.
Steven R. Hash	Thomas E. O'Hern
Retired President and Chief Operating Officer	Former Chief Executive Officer
of Renaissance Macro Research, LLC	of The Macerich Company
Enrique Hernandez, Jr.	Andrea M. Stephen
Executive Chairman	Retired Executive Vice President, Investments
of Inter-Con Security Systems, Inc.	of The Cadillac Fairview Corporation Limited

EXECUTIVE OFFICERS

Jackson Hsieh	Ann C. Menard
President and Chief Executive Officer	Senior Executive Vice President, Chief
Douglas J. Healey	Legal Officer and Secretary
Senior Executive Vice President,	Kenneth L. Volk
Head of Leasing	Executive Vice President, Business Development
Scott W. Kingsmore
Senior Executive Vice President, Chief
Financial Officer and Treasurer

STRONG PERFORMANCE IN 2023 SETS STAGE FOR

CONTINUED GROWTH

DEAR FELLOW STOCKHOLDERS:

Strong Company performance - powered by exceptional and historic leasing statistics - defined Macerich in 2023.

We signed 4.2 million square feet of leases in 2023, a Company record representing 12% more square footage than we signed in 2022, which was itself an extraordinary year of leasing activity. We also posted positive re-leasing spreads of 17.2% for 2023.

Portfolio occupancy continues to improve and, as of December 31, 2023, was 93.5%, a 90 basis point improvement over 2022. Same-center net operating income (NOI), excluding lease termination income, increased 4.5% year over year in 2023. To recap, as we have emerged from the pandemic, same-center NOI growth generated by our high-quality Class A portfolio has been tremendous, with NOI growth exceeding 7% in both 2021 and 2022, followed by 2023's increase of 4.5%.

As a result of the historic leasing activity in 2022 and 2023, we have a large and healthy leasing pipeline with nearly 2.2 million square feet of leases that have been signed but are not open yet. Opening these tenants in 2024 through 2026 is expected to produce significant consumer traffic, cash flow and NOI.

With 2023 a high-water mark for leasing performance, and with strong shareholder returns and improving key metrics, the conditions for our senior leadership transition are excellent. In early 2024, we announced that both CEO Tom O'Hern and President Ed Coppola were retiring - Tom after 31 years and Ed after 45 years with Macerich. We want to thank them for many years of outstanding leadership. We also announced that seasoned real estate executive Jack Hsieh would take the reins as President and CEO effective March 1 and we are excited for Jack to realize his vision for the future of Macerich.

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Today, we believe our Company's upward trajectory is evident. Even as 2023 brought continuing challenges given the economic backdrop of inflation, rising interest rates and the volatility of global conflicts, we are more confident than ever that physical retail is here to stay.

As we celebrate Macerich's 30th anniversary as a public company in 2024, we are proud that our market cap today is nearly $3.9 billion. For context, our total market cap back in 1994 was a modest $650 million.

OUR WINNING DIVERSIFICATION STRATEGY

Our portfolio and industry have changed a great deal since 1994, setting the stage for Macerich to continue to advance our proven diversification strategy, which adds value to our assets by delivering a wide variety of exciting new uses in addition to traditional retail, plus more restaurants and more entertainment.

This broad range of new uses - from fitness, grocery, entertainment, food and beverage and medical to coworking, residential, hotel, office and more - gives more people more reasons to spend time at our high- quality properties located in many of the country's best markets. Strategically, this is precisely what we are after. Our properties remain the cornerstones of the community as they are places where people love to spend their time.

EXPANDING FITNESS

We opened Life Time locations at Scottsdale Fashion Square and Broadway Plaza, with another opening planned for early 2025 at Twenty Ninth Street - plus, other high-end fitness brands have signed deals around the portfolio.

EAST COAST REINVESTMENT

We elevated our already strong centers on the East Coast with terrific new retail, dining and entertainment, including opening a three-level Target, Primark and other new retailers at Kings Plaza, which combined are expected to generate

significantly more in annual sales than the former Sears they replaced. We also succeeded in advancing major new entitlements for top-performing Tysons Corner Center, Danbury Fair and more.

GROWTH IN GROCERY

We continued to open grocery stores at our centers. Right now, 16 assets (more than a third of our portfolio) have grocery uses, with more planned. This includes top regional grocer ShopRite coming to our redevelopment at Green Acres, the #2 most- visited center in the Macerich portfolio, where the upscale Long Island suburbs meet vibrant city neighborhoods in New York.

SCHEELS OPENS IN ARIZONA

We brought SCHEELS - a best-in-class, experience- focused sporting goods retailer known for its full-size Ferris wheel, on-site aquarium and more - to Chandler Fashion Center in suburban Phoenix. SCHEELS is expected to be one of the top-performing tenants within the entire Macerich portfolio. The October 2023 opening day of this remarkable attraction drew tens of thousands of visitors, and since then, the center's overall traffic volume has increased considerably, which is having a meaningfully positive impact on the balance of the tenancy at this already high-performing asset.

BALANCE SHEET AND PORTFOLIO OPTIMIZATION

We took significant actions to further optimize our portfolio and bolster our balance sheet, making strategic acquisitions, selling non-core assets and undertaking multiple refinancings.

During 2023, we acquired our joint venture partner's interests in Freehold Raceway Mall, as well as former Sears locations at five core assets: Chandler Fashion Center, Danbury Fair, Freehold Raceway Mall, Los Cerritos Center and Washington Square. Each of these investments fits seamlessly into our strategy of diversifying our tenant base and creating even more of a sense of place at our centers. We also continued to recycle capital back into our portfolio through

SCHEELS, CHANDLER FASHION CENTER CHANDLER, AZ

LIFE TIME, BILTMORE FASHION PARK PHOENIX, AZ

BROADWAY PLAZA

DANBURY FAIR

DANBURY, CT

WALNUT CREEK, CA

SCOTTSDALE FASHION SQUARE	TYSONS CORNER CENTER
SCOTTSDALE, AZ	TYSONS CORNER, VA

TWENTY NINTH STREET

BOULDER, CO

TOGETHER

FOR TOMORROW

various dispositions of non-core assets, including the sale of two power centers in the Arizona market, various land tracts located primarily in the Arizona market and, most recently, the sale of the Google creative office campus at One Westside in Los Angeles. Collectively, these transactions generated over $120 million of liquidity.

In 2023 and year to date in 2024, we refinanced or extended seven loans totaling $2.8 billion, or $2 billion at our ownership share. This included an approximate 4.5-year renewal and 24% upsizing of our $650 million revolving corporate credit facility during the third quarter of 2023. At year-end 2023, Macerich had over $700 million of liquidity, including $545 million of available capacity on our $650 million revolving line of credit.

In 2023, Macerich's strong Company culture prioritizing people and the planet again helped us earn a number of notable recognitions. These include ranking #1 among all U.S. retail and in the top 10 in retail worldwide by the 2023 GRESB Real Estate Assessment and earning CDP "A-List" status for the eighth year. In 2023, Macerich was also named among America's Most Responsible Companies by Newsweek and Statista. These accolades help further cement our industry leadership in sustainability and social progress, demonstrating our ethos of working together to improve tomorrow.

All the accomplishments we deliver are due to Macerich's terrific people. We would like to thank our teams for their talent and incredible commitment to meeting the shared goals that power our success.

We also would like to share our deep appreciation for the Macerich Board of Directors, whose oversight and support continue to help guide the strong future of our top-quality portfolio.

Both of us - along with the full management team and Board - believe the Company is well-positioned to make the most of the many opportunities to strengthen our Class A portfolio, which will continue to shape the Macerich story for years to come.

Sincerely,

Thomas E. O'Hern

Director and Former Chief Executive Officer

Steven R. Hash

Chairman of the Board

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FROM OUR NEW PRESIDENT AND CEO

It's been an exciting time since I started my role at Macerich on March 1 - getting to know our people and portfolio and deep-diving into every discipline that makes Macerich uniquely well-positioned to thrive in the years ahead. I've been on the road these first few weeks, engaging with leadership and visiting our assets.

As the new CEO, I am eager to embark on this journey and forge a new direction for the Company.

I've already had the privilege of ringing the closing bell at the New York Stock Exchange to mark Macerich's 30th anniversary as a public company alongside senior leadership.

Building on this rich history, I look forward to leading Macerich to new heights as we make the most of our opportunities to strengthen and diversify the Company's extraordinary portfolio and create shareholder value.

Sincerely,

Jack Hsieh

President and Chief Executive Officer

RECONCILIATION OF NON-GAAP MEASURES

The following reconciles net (loss) income attributable to the Company to Adjusted EBITDA, NOI and NOI-Same Centers for the years ended December 31, 2023, 2022, 2021 and 2020 (dollars in thousands):

		2023	2022	2021
Net (loss) income attributable to the Company	($274,065)	($66,068)	$14,263
Interest expense	302,103	306,000	285,200
Depreciation and amortization	440,622	446,323	464,846
Noncontrolling interests in the Operating Partnership	(11,389)	(2,660)	714
(Gain) loss on extinguishment of debt, net	(8,208)	-	1,007
Loss (gain) on sale or write down of assets, net	273,124	17,986	(61,077)
Income tax (benefit) expense	(494)	705	6,948
Distributions on preferred units	348	348	357
Adjusted EBITDA	722,041	702,634	712,258
REIT general and administrative expenses	29,238	27,164	30,056
Management Companies' revenues	(30,185)	(28,512)	(26,023)
Management Companies' operating expenses	70,060	67,799	61,030
Leasing expense, including joint ventures at pro rata	39,218	35,451	27,212
Straight-line and above/below market adjustments	(4,294)	(11,190)	(17,639)
NOI - All Centers	826,078	793,346	786,894
NOI of non-Same Centers	(15,367)	(4,283)	(46,821)
NOI - Same Centers	810,711	789,063	740,073
Lease termination income of Same Centers	(13,200)	(25,226)	(24,325)
NOI - Same Centers, excluding lease termination income	$797,511	$763,837	$715,748

		2022	2021	2020
Net (loss) income attributable to the Company	($66,068)	$14,263	($230,203)
Interest expense	306,000	285,200	167,638
Depreciation and amortization	446,323	464,846	503,782
Noncontrolling interests in the Operating Partnership	(2,660)	714	(16,822)
Loss on extinguishment of debt, net	-	1,007	-
Loss (gain) on sale or write down of assets, net	17,986	(61,077)	231,284
Income tax expense (benefit)	705	6,948	(447)
Distributions on preferred units	348	357	371
Adjusted EBITDA	702,634	712,258	655,603
REIT general and administrative expenses	27,164	30,056	30,339
Management Companies' revenues	(28,512)	(26,023)	(23,461)
Management Companies' operating expenses	67,799	61,030	65,576
Leasing expense, including joint ventures at pro rata	35,451	27,212	27,631
Straight-line and above/below market adjustments	(11,190)	(17,639)	(49,892)
NOI - All Centers	793,346	786,894	705,796
NOI of non-Same Centers	(4,708)	(51,263)	(16,199)
NOI - Same Centers	788,638	735,631	689,597
Lease termination income of Same Centers	(25,226)	(25,046)	(14,871)
NOI - Same Centers, excluding lease termination income	$763,412	$710,585	$674,726
NOI - Same Centers Percentage Change	2.80%	7.26%	7.32%
NOI - Same Centers Percentage Change,	4.47%	7.49%	6.08%
excluding lease termination income

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