Investments in Unconsolidated Joint Ventures:

The Company has made the following recent investments and dispositions in its unconsolidated joint ventures:

On January 6, 2016, the Company sold a 40% ownership interest in Arrowhead Towne Center, a 1,197,000 square foot regional shopping center in Glendale, Arizona, for $289,496, resulting in a gain on the sale of assets of $101,629. The sales price was funded by a cash payment of $129,496 and the assumption of a pro rata share of the mortgage note payable on the property of $160,000. The Company used the cash proceeds from the sale to pay down its line of credit and for general corporate purposes, which included funding the Special Dividend (See Note 12—Stockholders' Equity). Upon completion of the sale of the ownership interest, the Company no longer has a controlling interest in the joint venture due to the substantive participation rights of the outside partner. Accordingly, the Company accounts for its investment in Arrowhead Towne Center under the equity method of accounting.

On January 14, 2016, the Company formed a joint venture, whereby the Company sold a 49% ownership interest in Deptford Mall, a 1,039,000 square foot regional shopping center in Deptford, New Jersey; FlatIron Crossing, a 1,431,000 square foot regional shopping center in Broomfield, Colorado; and Twenty Ninth Street, an 847,000 square foot regional shopping center in Boulder, Colorado (the "MAC Heitman Portfolio"), for $771,478, resulting in a gain on the sale of assets of $340,734. The sales price was funded by a cash payment of $478,608 and the assumption of a pro rata share of the mortgage notes payable on the properties of $292,870. The Company used the cash proceeds from the sale to pay down its line of credit and for general corporate purposes. Upon completion of the sale of the ownership interest, the Company no longer has a controlling interest in the joint venture due to the substantive participation rights of the outside partner. Accordingly, the Company accounts for its investment in the MAC Heitman Portfolio under the equity method of accounting.

On March 1, 2016, the Company, through a 50/50 joint venture, acquired Country Club Plaza, a 1,003,000 square foot regional shopping center in Kansas City, Missouri, for a purchase price of $660,000. The Company funded its pro rata share of the purchase price of $330,000 from borrowings under its line of credit. On March 28, 2016, the joint venture placed a $320,000 loan on the property that bears interest at an effective rate of 3.88% and matures on April 1, 2026. The Company used its pro rata share of the proceeds to pay down its line of credit and for general corporate purposes.

On March 17, 2017, the Company's joint venture in Country Club Plaza sold an office building for $78,000, resulting in a gain on sale of assets of $4,580. The Company's pro rata share of the gain on sale of assets of $2,290 was included in equity in income from joint ventures. The Company used its share of the proceeds to fund repurchases under the 2017 Stock Buyback Program (See Note 12—Stockholders' Equity).

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:



	March 31, 2017			December 31, 2016
Assets(1):
Property, net	$	9,093,591		$	9,176,642
Other assets	678,158			614,607
Total assets	$	9,771,749		$	9,791,249
Liabilities and partners' capital(1):
Mortgage and other notes payable(2)	$	5,333,141		$	5,224,713
Other liabilities	431,947			403,369
Company's capital	2,193,553			2,279,819
Outside partners' capital	1,813,108			1,883,348
Total liabilities and partners' capital	$	9,771,749		$	9,791,249
Investments in unconsolidated joint ventures:
Company's capital	$	2,193,553		$	2,279,819
Basis adjustment(3)	(579,537		)	(584,887		)
	$	1,614,016		$	1,694,932

Assets—Investments in unconsolidated joint ventures	$	1,710,617		$	1,773,558
Liabilities—Distributions in excess of investments in unconsolidated joint ventures	(96,601		)	(78,626		)
	$	1,614,016		$	1,694,932


(1)	These amounts include the assets of $3,177,394 and $3,179,255 of Pacific Premier Retail LLC as of March 31, 2017 and December 31, 2016, respectively, and liabilities of $1,892,163 and $1,887,952 of Pacific Premier Retail LLC as of March 31, 2017 and December 31, 2016, respectively.

(2)

Included in mortgage and other notes payable are amounts due to an affiliate of Northwestern Mutual Life ("NML") of $489,206 and $265,863 as of March 31, 2017 and December 31, 2016, 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 on these borrowings was $3,160 and $6,366 for the three months ended March 31, 2017 and 2016, 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 $4,027 and $4,457 for the three months ended March 31, 2017 and 2016, respectively.

Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures:



	Pacific Premier Retail LLC			Other Joint Ventures			Total
Three Months Ended March 31, 2017
Revenues:
Minimum rents	$	33,536		$	123,503		$	157,039
Percentage rents	730			1,738			2,468
Tenant recoveries	11,439			47,915			59,354
Other	1,026			11,511			12,537
Total revenues	46,731			184,667			231,398
Expenses:
Shopping center and operating expenses	9,760			62,195			71,955
Interest expense	16,726			32,279			49,005
Depreciation and amortization	26,275			62,879			89,154
Total operating expenses	52,761			157,353			210,114
(Loss) gain on sale or write down of assets, net	(35		)	4,581			4,546
Net (loss) income	$	(6,065	)	$	31,895		$	25,830
Company's equity in net (loss) income	$	(962	)	$	16,805		$	15,843
Three Months Ended March 31, 2016
Revenues:
Minimum rents	$	30,583		$	106,373		$	136,956
Percentage rents	759			1,753			2,512
Tenant recoveries	11,976			43,443			55,419
Other	2,838			10,352			13,190
Total revenues	46,156			161,921			208,077
Expenses:
Shopping center and operating expenses	9,786			53,298			63,084
Interest expense	15,214			27,738			42,952
Depreciation and amortization	28,084			56,533			84,617
Total operating expenses	53,084			137,569			190,653
Loss on sale or write down of assets, net	—			(5		)	(5		)
Net (loss) income	$	(6,928	)	$	24,347		$	17,419
Company's equity in net (loss) income	$	(1,244	)	$	12,904		$	11,660

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