Investments in Unconsolidated Joint Ventures: (Tables)

9 Months Ended

Sep. 30, 2012

Investments in Unconsolidated Joint Ventures:

Combined and Condensed Balance Sheets of Unconsolidated Joint Ventures and Other Related Information

	September 30, 2012			December 31, 2011

Assets(1):
Properties, net	$	3,939,940		$	4,328,953
Other assets		322,281			469,039

Total assets	$	4,262,221		$	4,797,992

Liabilities and partners' capital(1):
Mortgage notes payable(2)	$	3,420,079		$	3,896,418
Other liabilities		157,536			161,827
Company's capital		230,930			327,461
Outside partners' capital		453,676			412,286

Total liabilities and partners' capital	$	4,262,221		$	4,797,992

Investment in unconsolidated joint ventures:
Company's capital	$	230,930		$	327,461
Basis adjustment(3)		709,128			700,414

	$	940,058		$	1,027,875

Assets—Investments in unconsolidated joint ventures	$	1,026,724		$	1,098,560
Liabilities—Distributions in excess of investments in unconsolidated joint ventures		(86,666	)		(70,685	)

	$	940,058		$	1,027,875

(1): These amounts include the assets and liabilities of the following joint ventures as of September 30, 2012 and December 31, 2011:

	Pacific Premier Retail LP		Tysons Corner LLC

As of September 30, 2012:
Total Assets	$	1,034,856	$	374,223
Total Liabilities	$	1,003,579	$	324,958
As of December 31, 2011:
Total Assets	$	1,078,226	$	339,324
Total Liabilities	$	1,005,479	$	319,247

(2): Certain mortgage notes payable could become recourse debt to the Company should the joint venture be unable to discharge the obligations of the related debt. As of September 30, 2012 and December 31, 2011, a total of $370,538 and $380,354, respectively, could become recourse debt to the Company. As of September 30, 2012 and December 31, 2011, the Company has indemnity agreements from joint venture partners for $177,750 and $182,638, respectively, of the guaranteed amount.

Included in mortgage notes payable are amounts due to affiliates of Northwestern Mutual Life ("NML") of $655,029 and $663,543 as of September 30, 2012 and December 31, 2011, respectively. NML is considered a related party because it is a joint venture partner with the Company in Macerich Northwestern Associates—Broadway Plaza. Interest expense incurred on these borrowings amounted to $10,980 and $11,166 for the three months ended September 30, 2012 and 2011, respectively, and $32,974 and $31,263 for the nine months ended September 30, 2012 and 2011, respectively.
(3): 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 $3,136 and $2,923 for the three months ended September 30, 2012 and 2011, respectively, and $6,211 and $7,042 for the nine months ended September 30, 2012 and 2011, respectively.

Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures

	Pacific Premier Retail LP			Tysons Corner LLC		Other Joint Ventures			Total

Three Months Ended September 30, 2012
Revenues:
Minimum rents	$	32,718		$	15,847	$	75,809		$	124,374
Percentage rents		837			233		4,214			5,284
Tenant recoveries		14,091			11,340		37,663			63,094
Other		1,138			618		9,415			11,171

Total revenues		48,784			28,038		127,101			203,923

Expenses:
Shopping center and operating expenses		15,075			8,760		46,153			69,988
Interest expense		12,904			2,838		32,338			48,080
Depreciation and amortization		10,905			5,094		28,784			44,783

Total operating expenses		38,884			16,692		107,275			162,851

Loss on sale/remeasurement of assets		—			—		(28	)		(28	)

Net income	$	9,900		$	11,346	$	19,798		$	41,044

Company's equity in net income	$	5,035		$	4,372	$	9,908		$	19,315

Three Months Ended September 30, 2011
Revenues:
Minimum rents	$	31,841		$	15,618	$	111,091		$	158,550
Percentage rents		1,190			318		5,961			7,469
Tenant recoveries		13,867			10,270		52,337			76,474
Other		1,267			595		10,931			12,793

Total revenues		48,165			26,801		180,320			255,286

Expenses:
Shopping center and operating expenses		14,477			8,290		67,927			90,694
Interest expense		13,402			3,073		48,352			64,827
Depreciation and amortization		10,403			5,068		40,840			56,311

Total operating expenses		38,282			16,431		157,119			211,832

Loss on sale/remeasurement of assets		—			—		(94	)		(94	)
Gain on extinguishment of debt		—			—		77			77

Net income	$	9,883		$	10,370	$	23,184		$	43,437

Company's equity in net income	$	5,025		$	4,011	$	11,003		$	20,039

Nine Months Ended September 30, 2012
Revenues:
Minimum rents	$	98,812		$	47,149	$	251,599		$	397,560
Percentage rents		2,571			866		10,531			13,968
Tenant recoveries		41,967			32,969		121,825			196,761
Other		3,665			1,964		27,775			33,404

Total revenues		147,015			82,948		411,730			641,693

Expenses:
Shopping center and operating expenses		43,385			25,834		155,014			224,233
Interest expense		39,405			8,902		108,784			157,091
Depreciation and amortization		31,926			15,279		91,214			138,419

Total operating expenses		114,716			50,015		355,012			519,743

(Loss) gain on sale/remeasurement of assets		(10	)		—		22,948			22,938

Net income	$	32,289		$	32,933	$	79,666		$	144,888

Company's equity in net income	$	16,422		$	12,721	$	39,481		$	68,624

Nine Months Ended September 30, 2011
Revenues:
Minimum rents	$	97,185		$	45,947	$	326,156		$	469,288
Percentage rents		3,292			1,186		11,940			16,418
Tenant recoveries		41,134			30,748		157,309			229,191
Other		3,323			2,025		29,787			35,135

Total revenues		144,934			79,906		525,192			750,032

Expenses:
Shopping center and operating expenses		43,683			24,972		199,898			268,553
Interest expense		36,826			10,891		146,130			193,847
Depreciation and amortization		30,884			14,974		116,533			162,391

Total operating expenses		111,393			50,837		462,561			624,791

Gain on sale/remeasurement of assets		—			—		24,451			24,451
Gain on extinguishment of debt		—			—		15,583			15,583

Net income	$	33,541		$	29,069	$	102,665		$	165,275

Company's equity in net income	$	17,058		$	11,209	$	47,254		$	75,521