<SEC-DOCUMENT>0001193125-19-256950.txt : 20191114
<SEC-HEADER>0001193125-19-256950.hdr.sgml : 20191114
<ACCEPTANCE-DATETIME>20190927120032
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-19-256950
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20190927

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MACERICH CO
		CENTRAL INDEX KEY:			0000912242
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				954448705
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		401 WILSHIRE BLVD
		STREET 2:		STE 700
		CITY:			SANTA MONICA
		STATE:			CA
		ZIP:			90401
		BUSINESS PHONE:		3103946000

	MAIL ADDRESS:	
		STREET 1:		401 WILSHIRE BLVD SUITE 700
		CITY:			SANTA MONICA
		STATE:			CA
		ZIP:			90401
</SEC-HEADER>
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<TYPE>CORRESP
<SEQUENCE>1
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:79%; font-size:10pt; font-family:Times New Roman">September&nbsp;27, 2019 </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms.&nbsp;Jennifer Monick </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Assistant Chief Accountant </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Office of Real Estate and Commodities </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange
Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington D.C. 20549 </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><B>RE:</B></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><B>The Macerich Company </B></P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:5%; font-size:10pt; font-family:Times New Roman"><B>Form <FONT STYLE="white-space:nowrap">10-K</FONT> for the year ended December&nbsp;31, 2018 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:5%; font-size:10pt; font-family:Times New Roman"><B>Filed February&nbsp;25, 2019 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:5%; font-size:10pt; font-family:Times New Roman"><B>Form <FONT STYLE="white-space:nowrap">10-Q</FONT> for the quarterly period ended June&nbsp;30, 2019 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:5%; font-size:10pt; font-family:Times New Roman"><B>Filed August&nbsp;5, 2019 </B></P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:5%; font-size:10pt; font-family:Times New Roman"><B>File <FONT STYLE="white-space:nowrap">No.&nbsp;001-12504</FONT> </B></P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear Ms.&nbsp;Monick: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">We are writing in response to your
letter dated September&nbsp;12, 2019, setting forth the comment of the staff (the &#147;Staff&#148;) of the Securities and Exchange Commission (the &#147;Commission&#148;) on the Form <FONT STYLE="white-space:nowrap">10-Q</FONT> for the quarterly
period ended June&nbsp;30, 2019 (the &#147;Form <FONT STYLE="white-space:nowrap">10-Q)</FONT> of The Macerich Company (the &#147;Company&#148;). For your convenience, your comment is restated in italics prior to the Company&#146;s response to the
comment below. </P> <P STYLE="margin-top:14pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I><U>Form <FONT STYLE="white-space:nowrap">10-Q</FONT> for the quarterly period ended June&nbsp;30, 2019 </U></I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I><U>Item 2. Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations </U></I></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><I><U>Funds from Operations (&#147;FFO&#148;), page 42 </U></I></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><I>1.</I></TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left"><I>Please tell us how your definition of FFO is consistent with the NAREIT definition of FFO. Specifically,
tell us how you have determined it was appropriate to exclude financing expense in connection with Chandler Freehold from your definition of FFO. </I></P></TD></TR></TABLE>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">As noted on page 42 of the Form <FONT STYLE="white-space:nowrap">10-Q,</FONT> as a result of the Company adopting Accounting Standards Codification 606
(&#147;ASC 606&#148;) effective January&nbsp;1, 2018, the Company began treating its joint venture in Chandler Freehold as a financing arrangement for accounting purposes. In connection with this treatment, the Company recognizes financing expense
on (i)&nbsp;the changes in fair value of the financing arrangement obligation, (ii)&nbsp;any payments to the joint venture partner equal to their pro rata share of net income and (iii)&nbsp;any payments to the joint venture partner less than or in
excess of their pro rata share of net income. As disclosed in Note 12 on page 25 of the Form <FONT STYLE="white-space:nowrap">10-Q,</FONT> these financing arrangement adjustments are recognized as additions or reductions to interest expense in the
Company&#146;s consolidated statements of operations. The Company excludes from its definition of FFO the noted expense, or reduction in expense, related to the changes in fair value and for the payments to the joint venture partner less than or in
excess of their pro&nbsp;rata share of net income. The exclusion of these amounts allows the Company&#146;s current FFO to be comparable with the Company&#146;s FFO from prior quarters. It should be noted that these exclusions from the
Company&#146;s FFO for the three and six months ended June&nbsp;30, 2019 and for the year ended December&nbsp;31, 2018 resulted in a decrease to the Company&#146;s FFO of $15.2&nbsp;million, $27.6&nbsp;million and $8.8&nbsp;million, respectively.
</P> <P STYLE="font-size:18pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Ms.&nbsp;Jennifer Monick </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Securities and Exchange Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">September&nbsp;27, 2019 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Page 2 </P> <P STYLE="font-size:18pt; margin-top:0pt; margin-bottom:0pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">The Nareit White Paper defining FFO, dated April 2002, and all related amendments predate the effectiveness
of ASC 606. Nareit published an FFO White Paper Restatement in 2018, however, in which Nareit specifically noted that &#147;[t]his 2018 Nareit FFO White Paper Restatement is intended to serve as <I>a useful distillation and consolidation of previous
Nareit guidance and is not meant to alter the fundamental definition of FFO</I>.&#148; Although the&nbsp;Nareit definition of FFO predates the effectiveness of ASC 606, the Company believes that excluding the noted expense, or reduction in expense,
resulting from the financing arrangement is consistent with the key objective of FFO as a performance measure that is comparable across quarters. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">If you
have any questions, please feel free to contact me at (310) <FONT STYLE="white-space:nowrap">394-6000.</FONT> </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Sincerely, </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD VALIGN="top">The Macerich Company</TD></TR>
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<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000">/s/ Scott W. Kingsmore</TD></TR>
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<TD VALIGN="bottom">Scott W. Kingsmore</TD></TR>
<TR STYLE="page-break-inside:avoid ; font-family:Times New Roman; font-size:10pt">
<TD VALIGN="bottom">Executive Vice President, Treasurer and Chief&nbsp;Financial&nbsp;Officer</TD></TR>
</TABLE> <P STYLE="font-size:24pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left">cc:</TD>
<TD ALIGN="left" VALIGN="top"> <P STYLE=" margin-top:0pt ; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman; " ALIGN="left">David Roberts </P></TD></TR></TABLE>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:5%; font-size:10pt; font-family:Times New Roman"><I>Goodwin Procter LLP </I></P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>

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