* Q3 FFO $0.97/share; Street view $0.92

* Maintains outlook

* Shares up 1.5 pct
(Adds outlook)

By Ilaina Jonas

NEW YORK, Nov 5 (Reuters) - Macerich Co (MAC.N: Quote, Profile, Research), which owns
malls chiefly in the U.S. West, reported quarterly funds from
operations fell 10 percent but beat forecasts due to
greater-than-expected lease termination fees.

Third-quarter FFO, a performance measure of real estate
investment trusts, declined to $88.7 million, or 97 cents per
share, from $98.5 million, or $1.12 per share, a year earlier,
the company said on Thursday.

The average Wall Street forecast was 92 cents per share,
according to Thomson Reuters I/B/E/S.

Income from tenants wanting to end their leases early rose
to $11.1 million from $1.3 million in the second quarter.

Like its peers, Santa Monica, California-based Macerich has
seen occupancy fall and tenants' sales drop as consumers cut
their spending.

For properties the company has owned for at least a year,
net operating income, which reflects the cash the properties
generate before financing, fell 1.6 percent in the third
quarter excluding lease termination fees.

At the end of the quarter, occupancy at Macerich property
stood at 91 percent, down from 92.8 percent a year earlier but
up slightly from 90.5 percent in the second quarter.

Tenant sales per square foot were $418 for the trailing
12-month period, down 5.2 percent from the prior year.

Macerich maintained the 2009 forecast it issued last month
for FFO in the range of $3.50 to $3.80 per share. Analysts see
$3.68 per share.

Investors have been concerned about the mall owner. The
company, which owns 72 malls, has been raising cash by issuing
stock and selling parts of its properties.

"Year to date we have generated over $1 billion in cash
that has been applied toward our de-leveraging goals," Arthur
Coppola, Macerich chairman and chief executive, said in a
statement.

With the sufficient amount of cash, the company has ended
its joint venture program, Coppola said in a conference call
with analysts.

The company has $30 million in maturing debt left this year
and $268 million in 2010, all on loans secured by property. It
also said that it has roughly $800 million of capacity on its
revolving credit facility.

Macerich shares were up 46 cents or 1.5 percent at $30.25
on the New York Stock Exchange on Thursday afternoon.
(Reporting by Christopher Kaufman and Ilaina Jonas; Editing by
Derek Caney and Matthew Lewis)