912242--2/27/2007--MACERICH

related topics

{investment, property, distribution}

{loan, real, estate}

{provision, law, control}

{stock, price, operating}

{cost, regulation, environmental}

{loss, insurance, financial}

{tax, income, asset}

We invest primarily in shopping centers, which are subject to a number of significant risks that are beyond our control. Some of our Centers are geographically concentrated and, as a result, are sensitive to local economic and real estate conditions. Our Centers must compete with other retail centers and retail formats for tenants and customers. Our Centers depend on tenants to generate rental revenues. Our acquisition and real estate development strategies may not be successful. Certain individuals have substantial influence over the management of both us and the Operating Partnership, which may create conflicts of interest. The tax consequences of the sale of some of the Centers may create conflicts of interest. The guarantees of indebtedness by and certain holdings of the principals may create conflicts of interest. If we were to fail to qualify as a REIT, we will have reduced funds available for distributions to our stockholders. Complying with REIT requirements might cause us to forego otherwise attractive opportunities. Complying with REIT requirements may force us to borrow to make distributions to our stockholders. Outside partners in Joint Venture Centers result in additional risks to our stockholders. Our holding company structure makes it dependent on distributions from the Operating Partnership. Possible environmental liabilities could adversely affect us. Uninsured losses could adversely affect our financial condition. An ownership limit and certain anti-takeover defenses could inhibit a change of control or reduce the value of our common stock.

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912242--2/27/2007--MACERICH_CO