Carlos Alberini, Chairman and CEO, Lucky Brand Volume 49 | No. 4 | Fourth Quarter 2014 HAPPENINGS INSIDE: Sustainability Update | Meet F.K. Grunert, VP Leasing for | Macerich Holiday Happenings Macerich Happenings | Fourth Quarter 2014

Santa HQ Reinvents the Santa Experience

The mall as a platform Cerritos Center, Scottsdale Fashion Square, ubiquitous in some capacity. I know , the Macerich initiative and it’s for new digital and Washington Square. something different. It’s creating an experience for the consumer and that’s experiences has a brand Santa HQ pairs cutting-edge technology critically important.” with an authentic, meet-the-real-Santa- new believer – the big in-person moment as the grand finale. In a world where the customer experience Augmented reality bridges the physical is increasingly important for bricks-and- guy in red. world and digital world when kids explore mortar retail, Macerich’s Santa HQ offers Santa’s Observatory through Elf-Ray a powerful new reason for families to go Vision using a handheld “portal;” use to the mall this holiday season. Launched for this holiday season, a new app to take an ELFIE Selfie and Macerich’s Santa HQ is a totally star in their own holiday video; and even “Santa HQ reinvents the Santa experience immersive, digital experience unlike try the Naughty or Nice O’Meter. This at the mall for a new generation of anything malls have offered before. exciting, interactive journey meshes one digitally savvy, always-connected kids and Already national and major-market media of retail’s biggest traditions with social their families,” said Ken Volk, Senior Vice are taking notice, including CNN, USA media immediacy and state-of-the-art President and Chief Marketing Officer, Today, CBS News, the Los Angeles Times digital effects. Macerich. “We know that people come and Washington Post. to the mall for one-of-a-kind, in-person Macerich’s initiative in creating Santa experiences they can share in real time Ten major Macerich malls around the HQ stands out in the holiday landscape and through social media – and the country are home to the new Santa HQ, this year, according to Jesse Tron, a exciting new Santa HQ delivers exactly presented by HGTV: Chandler Fashion spokesperson for the International what families want today.” Center, Danbury Fair Mall, , Council of Shopping Centers (ICSC): FlatIron Crossing, , Los “Obviously Santa and the mall are Macerich’s Technology-Driven Amenities Add Holiday Sparkle

High-tech holidays are on reservation for the time that works best for gift-wrapping stations, choirs, carolers, you. New this season, the ability to reserve instrumental performances, inspiring at Macerich. This season, a spot on line has already proved to be very ways to give and so much more. All are popular with Macerich shoppers. designed to bring shoppers to the malls every Macerich property and to retailers’ doors throughout this As well, Macerich’s well-liked Text- important season. has a tailored set of the-Concierge program is expanding this season to even more properties “Festive entertainment and dining digital tools to enhance and is tailored for the holidays to offer opportunities, expert guest services, ample customized, real-time gift suggestions. In parking and convenient gift cards for a the customer experience, another boost to the shopper experience, wide range of retailers and restaurants – same-day package delivery in partnership plus a great mobile app to tie it all together including property- with Deliv has expanded to more Macerich – are on the top of everyone’s holiday list,” properties and additional markets. said Kurt Ivey, Vice President, Property specific mobile apps to Marketing, Macerich. “In every way, “Today innovative technology at our malls Macerich properties offer truly exceptional help find stores, search has to be part of the holiday trimming, seasonal experiences.” and we continue to introduce new ways for products, make for shoppers to have great omni-channel Great brand partnerships enhance experiences with Macerich,” said Fred the shopper experience. For example, restaurant reservations, Yeries, Vice President, Digital Marketing & families have enjoyed special, penguin- Technology Advancement, Macerich. party themed programming across the find parking and so portfolio at Macerich Kids Clubs Powered Events Highlight the Season by National Geographic Kids. As well, for much more. In addition to the debut of the innovative the over-18 crowd, Macerich’s portfolio- Santa HQ at 10 Macerich malls and other wide HGTV Home for the Holidays Everyone is talking about Macerich’s fully tech-savvy amenities across the portfolio, Sweepstakes, running all the interactive, digital Santa HQ. This special Macerich properties also offer shoppers way through Dec. 24, will award attraction even has its own app, allowing local, market-right activities to celebrate $10,000 to one lucky winner. the enchanting Santa experience to live on the season, including tree lightings, much longer than the mall visit. Haven’t Menorah lightings, Santa arrivals, pet visited Santa yet? Go ahead and make a photos with Santa, breakfasts with Santa, 3 Macerich Happenings | Fourth Quarter 2014 Pipeline Update

Around the Macerich Pipeline

Two new openings and Fashion Outlets of Niagara anchor the new, mixed-use community at Falls Expansion Candlestick. two promising new • Saks Fifth Avenue Off 5TH Demolition of the fabled Candlestick Park • Forever 21 (former home of the San Francisco Giants properties made news • Christopher & Banks and San Francisco 49ers) is set to take • Spencers Outlet place in winter 2015 to make way for one for Macerich in the • Puma of the largest urban mixed-use projects • Crocs in the United States. In addition to the second half of the year. • Clarks luxury outlet component of the project • Disney Outlet that Macerich is part of, Candlestick will Around the pipeline: • Auntie Anne’s incorporate more than 6,000 homes, movie • Helly Hansen Outlet theatres, a performance venue, hotel and • Perry Ellis much more. Fashion Outlets of Niagara • Perfumania • Gold Toe SouthPark Mall in Moline, IL Falls USA • Samsonite Macerich on Nov. 13 unveiled the market- On Nov. 6, Macerich opened its major • Swarovski right renovation of SouthPark Mall, an expansion of Fashion Outlets of Niagara • Sperry Top-Sider established favorite in the Quad Cities. Falls USA, the high-performing outlet • Steve Madden Updated amenities include a brand new property in tourist-rich Niagara Falls, • Merrell children’s play area, and 13 national retailers a magnet for cross-border shoppers • Talbots already have brought prototype stores to the from Canada. • Kenneth Cole refreshed property, including Bath and Body • White House | Black Market Outlet Works and Journeys, among others. Work Adding nearly 175,000 square feet, the • Janie And Jack Outlet continues on a new Dick’s Sporting Goods, expansion opened with dozens of highly • Destination Maternity Outlet scheduled to open Summer 2015. anticipated major retail brands committed • American Eagle Outfitters to the property, which is 90 percent leased. • & Company Outlet Anchored by Saks Fifth Avenue OFF 5TH • Limited Outlet, The and Forever 21, the expansion includes • IT’SUGAR an exciting mix of new outlet brands, • Asics including Disney, Talbots, Vera Bradley, • Body Shop, The Kenneth Cole, Steve Madden, Swarovski, • Barbour White House | Black Market and many others, alongside existing favorites: Kate Spade, Barbour, Michael Kors, J. Crew, Fashion Outlets of San Hugo Boss, Brooks Brothers, Cole Haan, Francisco at Candlestick Burberry and many more. Adding to Macerich’s already strong presence in Northern , Macerich The expansion increases the size of the is joining with Lennar Corp., one of the overall property by one third to create one nation’s leading homebuilders, as 50/50 of the largest outlet malls in the country. partners to develop a 500,000 square- In all, the property will feature 200 stores foot, luxury urban outlet project that will and approxiately 700,000 square feet. Leader in the Light: Macerich Earns Environmental Honors

Adding an exclamation point to Macerich’s the LEED® Gold designation from the leadership in and commitment to ongoing commitment to sustainable U.S. Green Building Council. sustainability practices,” said Art Coppola, development and operations, the National Chairman and CEO, Macerich. “Our focus Association of Real Estate Investment “Sustainability is a critical issue – one on sustainability is not only good for the Trusts (NAREIT) named Macerich the 2014 that is becoming increasingly important environment, but it is also smart business recipient of the prestigious Retail “Leader to our industry and its investors,” said for our company, benefiting investors, in the Light” award, honoring superior and Steven A. Wechsler, NAREIT President and retailers and the local communities sustained energy practices. CEO. “Macerich, as this year’s retail sector we serve.” winner of the Leader in the Light Award, The Leader in the Light award is one of has demonstrated consistent commitment three, high-profile environmental honors to innovative environmental stewardship for Macerich this year. across its portfolio.”

The company also earned a Global Real For Macerich, the industry designations Estate Sustainability (GRESB) Green reflect an integrated and productive Star 2014, an important measure of approach to sustainability, from smart sustainability performance for real estate energy use to water conservation and portfolios around the world. recycling. Overall the portfolio’s carbon footprint declined by 150,000 metric tons Additionally, Macerich’s 22-story Tysons in five years from 2008 to 2013. Tower office building, part of the new, mixed-use densification project at top- “These awards at the global, national and performing Tysons Corner Center, earned asset levels are a testament to Macerich’s Macerich’s F.K. Grunert: Every Deal Tells a Story

What appeals to F.K. Grunert, Macerich these properties. I say, ‘if you – purchase a spinning Vice President for Leasing in the Northeast, want to know what’s ahead bike for your home about the leasing world is the story behind for just look at and click in for online the deal. Queens Center, and for Green spinning classes with Acres look at Cross County.” master teachers – is new, “Every deal is different from the last one and Tysons is the right – how it works for the property, what it But it doesn’t have to be a kind of setting to help means to the retailer. It’s a different story big-city retail asset to inspire introduce Peloton’s “aha” every time, and you get to tell it.” To tell Grunert’s interest in a approach. the story – why a location gels for both the compelling narrative. Macerich’s Valley retail brand and Macerich – Grunert starts Mall in Harrisonburg, VA, or Long story short, Grunert joined Macerich with his own conviction: “If I don’t believe in Saratoga, NY are both primed for what from Wilmorite and credits his mentor, it, I can’t tell it.” happens when an attentive mall company Doug Healey, for shaping his positive, meets a well-positioned shopping center in solution-focused approach to retail leasing. Through his leasing efforts, Grunert has an attractive regional market. Macerich can Now Grunert is working to do the same been shaping the success of a number of make a difference at both Valley Mall and with junior members of his teams who are key Macerich properties in the Northeast Wilton Mall,” said Grunert. learning to connect the dots for retailers. and Mid-Atlantic regions, including Tysons Corner Center and Queens Center, and two Telling a story is something great retail “From the retailer perspective, our work is of the company’s recently acquired New properties do, as well. Experiential about finding solutions to what they need York City-area shopping centers, Kings retail brands – Apple, Tesla, Microsoft, within the omni-channel framework of Plaza and . Inspirato from American Express – are outlet, full-price and online,” said Grunert. seeking out top retail settings to share “For us, it’s about making sure our malls Both Kings Plaza and Green Acres Mall their new concepts with shoppers and offer meaningful experiences, have the makings of great Macerich create relationships. A recent expression with the best demographics and stories, according to Grunert. “They are of this trend, according to Grunert, is the best foot traffic, as part of where Queens Center and Cross County Peloton Cycle, which is bringing its retailers’ omni-channel strategies.” Shopping Centers were 10 years ago. über-convenient, on-demand spinning We’re already seeing Macerich’s impact at concept to Tysons Corner Center. The idea 5 Macerich Happenings | Fourth Quarter 20142014

Lucky Days for Lucky Brand An Interview with Carlos Alberini, Chairman and CEO

Few brands are lucky enough to have the network. About 80% of our customers professional career, and here I am, living widespread awareness that Lucky Brand are over 35 years old. Our customers my dream. Lucky feels like a half-billion- has built over nearly 25 years. Now the are families. They are very loyal to the dollar startup; we have the full support of newly private fashion brand has a new brand, have high incomes and enjoy very our Leonard Green partners to run the leadership team, led by industry visionary active lifestyles that span from the office company according to our vision and we Carlos Alberini, with big plans for growing to social engagements. We see this as a have been able to assemble an incredible the company. Happenings talked with Mr. great opportunity to offer an expanded team. This business is in my blood. Alberini, Lucky’s Chairman and CEO, assortment for multiple occasions. Coming to work doesn’t feel like work. about what brought him back to denim and the exciting directions ahead for this We are fortunate to have strong retail Q: You mentioned Leonard Green – retail well-positioned reflection of Southern partners and a great real estate portfolio, watchers will know that Lucky Brand used California style. with 170 specialty stores and an to be part of Fifth & Pacific and the Liz opportunity to add many more retail doors Claiborne business, but now is privately Q: What do you see as the opportunity for and new distribution points. I’m thrilled held by Leonard Green and Partners. Lucky in today’s marketplace? to be a part of this and am enjoying every How does being privately held make a minute. I love the brand and our team. difference for Lucky Brand? A: The opportunities for Lucky are tremendous. The brand has an incredible Q: You have been in your new role at A: Being privately held makes a real awareness level of 77% for women and Lucky since early this year, after a very difference. Don’t get me wrong, I came 58% for men. These numbers are typically productive time at Restoration Hardware from Restoration Hardware and was part seen in billion-dollar companies, and we and before that, you helped make Guess of the team that took RH public in 2012, are only a half-billion-dollar business. We a retail force. What drew you to join which was an extraordinary experience. also have a great position in the market in Lucky Brand? Being private gives you opportunities to terms of price points. Our denim ranges do what’s right for the business long term, from $99-$149 and we are somewhat A: Beyond the incredible potential I without the pressures of the public market alone in this space. In today’s marketplace saw for the brand, the opportunity also and a constant need to meet quarterly you have players in the very high end had personal relevance for me. My earnings expectations. For example, one offering denim in the $200-$300 range, wife Andrea and I missed Los Angeles, change we made at Lucky when I got here and then the other end of the spectrum which was our home for many years, was to end our distribution of product with product ranging from $25-$40. We and this gave us a great reason to move through Costco. This is a great platform stand out by offering premium product back. On the professional level, I have and a formidable retailer, but we didn’t with great quality and taste levels, and we worked towards a role like this my entire feel it was the right distribution for our have a diverse assortment for both men brand. This was painful to do from a and women, all at accessible price points. profitability and cash flow standpoint, Internally, we talk a lot about a Denim but was an investment to position the Democracy, having a jean for “everyone” company for long-term growth and to and for “every body.” Denim represents create value over time. We wouldn’t have almost half of our business and it gives us been able to make this move if we were a great platform to expand the business not privately held. into other categories. Q: Please talk about how you are changing We have significant opportunities for the in-store experience. growth. We’ve done a lot to understand our current customers and are touching A: The results of our customer research only about half of the potential customers made it very apparent that we needed we could be connecting with in the to evolve the store environment and U.S. based on our current distribution experience. Our stores were crowded with Major Industry Awards for Macerich

Racking them up: Three Macerich properties have earned a number of important industry awards this quarter, in categories ranging from

product and it was difficult to see everything – so best outlet center and best building we edited what was on the floor. The ambiance in the store was not as inviting as it could be, so to best retail development of the year. we added seating areas with distressed leather chairs that connect with our brand identity and Americana aesthetic. We also changed the flow of the stores, and put men’s and women’s product side by side, instead of front and back, and Fashion Outlets of Chicago created a destination area for accessories versus Macerich’s breakthrough outlet property in Chicago earned being displayed all over the store. Our field teams three notable awards this quarter, including the prestigious and store associates now act more as stylists, MAPIC Award for 2014 Best Factory Outlet Centre. This helping with the customers’ purchasing decisions international competition, now in its 19th year, rewards and really connecting with them at an emotional excellence, innovation and creativity in the retail real estate level versus just ringing up transactions. All industry. In December this property received ICSC’s 2014 stores now have iPads to help customers access Gold Award for New Development. And earlier this fall, our full assortment, and we offer next-day, Fashion Outlets of Chicago was voted Best Shopping Center free delivery, to enhance the overall customer by Racked Chicago readers. experience and ease of shopping. We feel the presentation is much more powerful now. The Shops at North Bridge Eataly at The Shops at North Bridge was named 2014 Best Q: What is new about Lucky Brand’s marketing? Retail or Mixed-Use Development of the Year by the Chicago Chapter of NAIOP, the Commercial Real Estate Development A: Early on we felt we were not engaging with our Association. Since opening last December, Eataly – which customers using the right tools. The advertising occupies a superb, 63,000-square-foot street retail location as was mostly geared towards a customer that we part of Macerich’s Nordstrom-anchored downtown Chicago did not have and the tools were the conventional powerhouse – has proved to be a huge attraction for visitors ones – a lot of print ads and catalogs. Our team and locals alike. came up with a fresh campaign concept. Instead of exclusively using models, we selected 100 Tysons Corner – Tysons Tower people, people like you and me, regular people Tysons Tower, the view-focused, 22-story trophy office with great life stories – musicians, restaurateurs, building at Tysons Corner that opened this past summer artists, entrepreneurs and yes, also models. We’ve with key anchor tenants Intelsat, Deloitte and others, was shot photos and videos that we are sharing on our named 2014 Best Building in the speculative office category, website and using on digital and social platforms 15 stories and above, by the Northern Chapter to make these individuals and their own networks of NAIOP. part of our authentic storytelling. So you see people enjoying life, you see a lot of smiles. We always ask, “What was your luckiest day?” and “Why do you think you are lucky?” All of this is creating more energy around our product and our brand. I think it’s very exciting and forward looking.

At Lucky Brand, we see “luck” as an active thing. We believe we all make our own luck. Frankly, that’s exactly what we are working to achieve in this journey. 77 Macerich Properties Drive Shopper Visits with Holiday Fun & Ways to Give

Here are just a few of private, high-profile shopping and • Enchanted Snowfall at La Encantada entertainment event to benefit a wide in Tucson. the dozens of locally variety of local nonprofits. • Horse & Carriage Rides, SanTan Village • Marin on Ice at Northgate in San in greater Phoenix. programmed events Rafael, CA. • Nintendo Holiday Tour at Arrowhead • Grab Your Gift event at Freehold Towne Center, Washington happening this season at Raceway Mall in Freehold, NJ. Square, Queens Center and Tysons • Movies in the Park, Fridays at Biltmore Corner Center. Macerich’s 52 properties: Fashion Park, starring holiday favorites. • Spark of Love Toy Drive with ABC7 at • Moonlight Madness at Chandler near Los Angeles. • All Decked Out, a Black Friday Fashion Center near Phoenix, where • Shop with a Hero event with the NYPD celebration inaugurating the much- guests experience door busters, music and NYFD at Queens Center. anticipated new parking garage, the first and food. • Southridge Hunger Challenge in Des element to be complete in the major • Events keyed to feast days and Moines, IA. expansion of Broadway Plaza in Walnut Christmas traditions of Hispanic • Salvation Army’s popular Angel Creek, CA. shoppers at in Phoenix. Tree Program, taking place at many • Night of Giving at Tysons Corner • Chanukah in the Mall, at La Cumbre properties around the portfolio. Center in Fairfax County, VA, a ticketed, Plaza in Santa Barbara, CA.

401 Wilshire Boulevard, Suite 700 www.macerich.com Santa Monica, CA 90401-1452 NYSE: MAC 310.394.6000