WATER: CONSERVING A PRICELESS RESOURCE

Many gems of the Macerich portfolio are sited in the stunning natural environments of the West and Southwest, from Scottsdale Fashion Square in Arizona to Santa Monica Place in Southern California and Broadway Plaza in Northern California’s East Bay. Yet despite their vibrant communities and natural beauty, these locations are deeply vulnerable to water scarcity, as are our other significant properties and offices in the West.

Across our portfolio, we are responding to routinely occurring drought or near-drought conditions. In California, our 13 properties comply with or exceed the statewide Water Conservation Emergency Regulation requirements that took effect in June 2022. At our eight Arizona properties, we are taking voluntary water reduction actions to do our part in addressing the growing Tier 2a Colorado River shortage.

Macerich aims to reduce our net water consumption by 50% from 2015 levels by 2030. We are making progress: In 2022, we reduced our on-property water usage by over 24 million gallons — the equivalent of more than 37 Olympicsized swimming pools. To minimize water waste, we have invested $500,000 in leak detection technology at our Southwestern properties. The technology has delivered $71,500 in savings, with annualized ROI by site ranging from 11%–23.5%.

Across our portfolio, we are adding building design elements to help us reach net-zero water use. In tandem with our property teams, we are also undertaking a more extensive study of bioswales, on-site water storage and nonpotable water usage. These strategies offer the potential to harness short-term water availability, such as atypically heavy rains in California or above-average snowpack in Arizona, to reduce the need for purchased water.

Our water reduction practices and tools include:

• WaterCompass to allow local property teams to detect and address water leaks quickly

• WeatherTRAK smart irrigation systems at 50% of our properties for real-time visibility and control

• Water-wise landscaping to minimize water consumption, such as replacing water-intensive grass with high-performance turf and integrating native plants and low-irrigation landscaping

• Water-saving fixtures, including low-flow fixtures, aerators and automatic shutoffs

• Active tenant engagement to help us monitor and address leaks promptly

• Splash pads closed and misters turned off or placed on timers to minimize water usage while maintaining the wellbeing of our customers and community

We continue to explore these additional water-saving efforts:

• Working with development and construction partners to find opportunities for water capture and reuse projects to offset purchased freshwater

• Reducing demand through innovative technologies that consume less water

• Harnessing alternative water sources

• Treating wastewater on-site for reuse or return to the water supply

• Returning stormwater to the original water supply as part of our green infrastructure