Core Insights - The Macerich Company (MAC) reported Q3 2025 FFO per share of 35 cents, missing the Zacks Consensus Estimate of 36 cents and down from 38 cents in the prior year [1][9] - Quarterly revenues reached $253.3 million, a 15% increase year-over-year, but fell short of the Zacks Consensus Estimate of $257 million [2] - The company experienced a decline in occupancy rates and an increase in interest expenses, yet solid leasing activity contributed to growth in net operating income (NOI) and base rent re-leasing spreads [1][5] Financial Performance - Portfolio tenant sales per square foot for spaces under 10,000 square feet increased to $867 from $834 year-over-year [3] - In Q3, MAC signed leases for 1.5 million square feet, marking an 81% increase in leased square footage year-over-year [3] - Go-Forward Portfolio Centers' NOI, excluding lease termination income, rose 1.7% year-over-year to $178.8 million [4] Occupancy and Expenses - Portfolio occupancy was 93.4% as of September 30, 2025, down from 93.7% a year prior, while Go-Forward Portfolio Center occupancy was 94.3% [5] - Interest expenses increased by 27.3% year-over-year to $72.7 million [5] Portfolio Activity - In July 2025, MAC sold Atlas Park for $72 million, followed by the sale of Lakewood Center for $332 million and Valley Mall for $22 million in August 2025 [6] Balance Sheet - As of November 4, 2025, MAC had approximately $1 billion in liquidity, including $650 million available on its revolving line of credit [7] - The company raised around $50 million in net proceeds by selling 2.8 million shares of common stock through its at-the-market program during Q3 [7] Industry Comparison - Other retail REITs like Regency Centers Corporation and Kimco Realty Corp. reported positive FFO growth, indicating a mixed performance across the sector [10][11]

Property Ownership and Acquisitions - As of September 30, 2025, the Operating Partnership owned or had an ownership interest in 38 regional retail centers, comprising approximately 39 million square feet of gross leasable area (GLA) [145] - The Company acquired a 100% interest in Arrowhead Towne Center and South Plains Mall for $36.4 million, including the assumption of debt [150] - The acquisition of Crabtree Mall, a 1,325,000 square foot regional retail center, was completed for a total purchase price of $290.0 million, funded by cash and $100.0 million in borrowings [153] - The Company sold Lakewood Center for $332.1 million, recognizing a gain on sale of assets of $21.1 million [168] - The Company recognized a gain of $42.8 million from the sale of its 50% interest in Biltmore Fashion Park for $110.0 million [157] Financial Performance - For the three months ended September 30, 2025, the Company reported gains on the sale of land totaling $1.2 million [170] - The Company anticipates continued growth and has outlined expectations for its Path Forward Plan [146] - The Company expects to generate positive cash flow after recurring operating capital expenditures and payment of dividends in 2025 [222] - Funds From Operations (FFO) attributable to common stockholders increased by 7.8%, from $248.7 million in 2024 to $268.1 million in 2025 [246] - FFO (Funds From Operations) attributable to common stockholders and unit holders for the three months ended September 30, 2025, was $88.59 million, compared to $81.23 million for the same period in 2024, representing an increase of 9.3% [278] Debt and Financing - The Company defaulted on a $300.0 million loan on Santa Monica Place, transitioning the property to a receiver [173] - The Company replaced a $116.9 million mortgage loan on Danbury Fair Mall with a new $155.0 million loan at a fixed rate of 6.39% [172] - A $525.0 million refinance loan on Queens Center was closed, replacing an existing $600.0 million loan, with a fixed interest rate of 5.37% [177] - The Company repaid a $478.0 million loan on Washington Square using proceeds from a public stock offering, recognizing a gain of $14.4 million [178] - The Company's total outstanding loan indebtedness was $6.60 billion as of September 30, 2025, with $5.08 billion in consolidated debt [263] Redevelopment and Development Activities - The Company is redeveloping Scottsdale Fashion Square with an estimated total cost of $84.0 million to $90.0 million, with a pro rata share of $42.0 million to $45.0 million [184] - The redevelopment of Green Acres Mall is estimated to cost between $130.0 million and $150.0 million, with approximately $31.4 million incurred as of September 30, 2025 [185] - The joint venture in FlatIron Crossing has a total project cost estimated between $245.0 million and $265.0 million, with the Company's pro rata share estimated at $125.0 million to $135.0 million [187] - The Company expects to incur approximately $250.0 million to $300.0 million for development and redevelopment activities over the next twelve months [253] Leasing and Occupancy - Leasing revenue increased by $33.8 million, or 16.6%, from 2024 to 2025, driven by $30.6 million from JV Transition Centers and $11.0 million from Acquisition Property [226] - Comparable tenant sales for spaces less than 10,000 square feet increased by 0.5% for the trailing twelve months ended September 30, 2025, with sales per square foot rising to $867 from $837 in 2024 [207][216] - The leased occupancy rate was 93.4% as of September 30, 2025, a 0.3% decrease from 93.7% in 2024, but a 1.4% increase from 92.0% at June 30, 2025 [207][219] - The Company signed 888 leases for approximately 5.4 million square feet during the first three quarters of 2025, representing an 85% increase in square footage leased compared to 2024 [217] - The Company has executed renewal leases or commitments on 94% of its square footage expiring in 2025, with another 5% in the letter of intent stage [208] Cash Flow and Dividends - Cash provided by operating activities increased by $42.8 million from 2024 to 2025, attributed to changes in assets and liabilities [247] - Cash used in investing activities increased by $300.8 million, primarily due to property acquisitions and contributions to unconsolidated joint ventures [248] - Cash dividends and distributions for the nine months ended September 30, 2025, were $142.0 million, funded by operations [269] - The Company declared a cash dividend of $0.17 per share for each quarter of 2024 and the first three quarters of 2025 [188] Interest Rates and Debt Management - A 1% increase in interest rates would decrease future earnings and cash flows by approximately $4.7 million per year based on $471.1 million of floating rate debt outstanding [283] - The total floating rate debt for Consolidated Centers was $459.1 million as of September 30, 2025, with an average interest rate of 6.04% [280] - The Company has interest rate cap agreements in place to manage floating rate exposure, ensuring that the prevailing floating loan rate does not exceed specified limits [282] - The average interest rate on the fixed rate debt for Consolidated Centers increased from 4.40% at December 31, 2024, to 4.56% at September 30, 2025 [280] Joint Ventures and Equity - Equity in income (loss) of unconsolidated joint ventures increased by $213.5 million from 2024 to 2025, largely due to prior impairment losses recognized in 2024 [243] - The Company's pro rata share of the Unconsolidated Joint Venture Centers' fixed rate debt was $1.56 billion, with an average interest rate of 5.29% as of September 30, 2025 [281]

Core Insights - Macerich (MAC) reported quarterly funds from operations (FFO) of $0.35 per share, missing the Zacks Consensus Estimate of $0.36 per share, and down from $0.38 per share a year ago, indicating a surprise of -2.78% [1] - The company posted revenues of $253.26 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.46%, but up from $220.22 million year-over-year [2] - Macerich shares have underperformed, losing about 13% since the beginning of the year compared to the S&P 500's gain of 16.5% [3] Financial Performance - Over the last four quarters, Macerich has surpassed consensus FFO estimates only once [2] - The current consensus FFO estimate for the coming quarter is $0.46 on revenues of $285.53 million, and for the current fiscal year, it is $1.46 on revenues of $1.04 billion [7] Market Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3] - The Zacks Industry Rank for REIT and Equity Trust - Retail is in the top 23% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The estimate revisions trend for Macerich was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it will perform in line with the market [6]

Financial Data and Key Metrics Changes - FFO, excluding certain expenses, was approximately $93.35 per share during Q3 2025, with a Go-Forward Portfolio Centers NOI increase of 1.7% compared to Q3 2024 [20][21] - Net debt to EBITDA at the end of Q3 was 7.76 times, a full turn lower than at the outset of the Path Forward Plan [22] - Portfolio sales at the end of Q3 were $867 per sq ft, up almost 4% compared to the same period in 2024 [12] Business Line Data and Key Metrics Changes - Signed 1.5 million sq ft of new and renewal leases in Q3 2025, an 87% increase from Q3 2024, bringing year-to-date signed leases to 5.4 million sq ft, an 86% increase compared to the same period in 2024 [6][11] - The SNO pipeline grew from $87 million in August to $99 million, with expectations to meet or exceed the $100 million target by year-end [7][8] - Trailing 12-month leasing spreads remained positive at 5.9%, marking 16 consecutive quarters of positive leasing spreads [13] Market Data and Key Metrics Changes - Traffic through the portfolio was flat compared to Q3 2024, but comp sales for the go-forward portfolio increased by 3.5% [12][57] - The retailer environment remains strong, with legacy retailers reinventing themselves and emerging brands rapidly opening stores [17][18] Company Strategy and Development Direction - The company is focused on operational improvement, leasing momentum, and achieving deleveraging targets as part of its Path Forward Plan [5][11] - The acquisition of Crabtree Mall is seen as a compelling investment, with plans to invigorate leasing momentum and drive permanent occupancy [11][49] - The company aims to refine its portfolio and strengthen its balance sheet through a $2 billion disposition target, with almost $1.2 billion completed to date [21][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in hitting 2028 targets due to strong leasing momentum and a healthy retailer environment [5][17] - The company remains patient and disciplined regarding additional external growth opportunities while focusing on leasing and operational improvements [11][22] - Management noted that despite macroeconomic uncertainties, retailer demand across all categories is strong, indicating a robust Class A mall sector [18][75] Other Important Information - The company has approximately $1 billion of liquidity, including $650 million of capacity on its revolving line of credit [22] - The addition of high-profile retailers like Hermès and Level 99 is expected to enhance the portfolio's attractiveness and drive customer traffic [14][15] Q&A Session Summary Question: Follow-up on equity issuance - The main objective was to make Crabtree leverage neutral, with future ATM use evaluated in the context of accretive growth opportunities [29] Question: Clarification on SNO pipeline - The $6 million related to Crabtree includes both in-place NOI and incremental leasing since acquisition [30][31] Question: 2026 lease expirations - 55% of 2026 expiring square footage is committed, with another 30% in the letter of intent stage, significantly ahead of last year [34][35] Question: Anchor leases timing and capital costs - Most anchor leases are expected to commence in the back half of 2027 or early 2028, with capital costs varying by tenant [37][39] Question: Financing appetite for non-Fortress assets - The financing market has improved, with recent loans closed at favorable rates, indicating a positive outlook for refinancing [44][49] Question: Impact of Canadian tourists on sales - There has been a reduction in Canadian tourists, but sales performance at key centers like Scottsdale Fashion Square remains strong [72][73] Question: Conflicting signals in retail performance - Despite some retailers facing challenges, the demand for leasing space in high-quality malls remains robust, driven by a lack of new supply [75]

Core Insights - The Macerich Company has released its Third Quarter 2025 Earnings Results and Supplemental Information [1] - A conference call is scheduled for November 4, 2025, to discuss the quarterly results [2] Company Overview - Macerich is a fully integrated, self-managed, self-administered real estate investment trust (REIT) focused on high-quality retail real estate in the U.S. [4] - The company's portfolio includes 39 million square feet of real estate, primarily consisting of interests in 38 retail centers [4] - Macerich has achieved a 1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for ten consecutive years from 2015 to 2024 [4] Investor Relations - The company utilizes its Investor Relations website for disclosing material nonpublic information and complying with disclosure obligations under Regulation FD [5] - Additional information can be accessed through social media platforms such as LinkedIn [5] - Contact for investor relations is available via email at IR@macerich.com [6]

Financial Performance - The net loss attributable to the Company for Q3 2025 was $87.4 million, or $0.34 per diluted share, an improvement from a net loss of $108.2 million, or $0.50 per diluted share, in Q3 2024[8] - Funds from Operations (FFO) for Q3 2025 were $93.4 million, or $0.35 per diluted share, compared to $86.0 million, or $0.38 per diluted share, in Q3 2024[9] - Total revenues for the three months ended September 30, 2025, increased to $253.3 million, up 15% from $220.2 million in the same period of 2024[29] - Net loss attributable to the Company for the three months ended September 30, 2025, was $87.4 million, compared to a loss of $108.2 million in the same period of 2024[37] - Funds From Operations (FFO) for the three months ended September 30, 2025, was $88.6 million, an increase from $81.2 million in the same period of 2024[37] - Total expenses for the three months ended September 30, 2025, were $281.1 million, up from $240.2 million in the same period of 2024[29] - Interest expense for the three months ended September 30, 2025, was $72.7 million, compared to $57.1 million in the same period of 2024[40] - The company reported a loss on the sale or write down of assets of $72.6 million for the three months ended September 30, 2025, compared to a loss of $16.6 million in the same period of 2024[37] - Adjusted EBITDA for the three months ended September 30, 2025, was $180,853, compared to $175,130 for the same period last year, reflecting a year-over-year increase of 1.0%[51] Leasing and Occupancy - Go-Forward Portfolio Centers' net operating income (NOI) increased by 1.7% in Q3 2025 compared to Q3 2024[10] - Portfolio occupancy as of September 30, 2025, was 93.4%, a decrease of 0.3% from 93.7% in September 2024, but an increase of 1.4% from 92.0% in June 2025[12] - The Company signed leases for 1.5 million square feet in Q3 2025, representing an 81% increase in leased square footage compared to Q3 2024[12] - New store leases are expected to generate approximately $99 million in total gross revenue, exceeding revenue from prior uses in those spaces[13] - Base rent re-leasing spreads were 5.9% greater than expiring base rent for the trailing twelve months ended September 30, 2025, marking the sixteenth consecutive quarter of positive spreads[14] - Leasing revenue for the three months ended September 30, 2025, was $237.2 million, an increase of 16.6% from $203.4 million in the same period of 2024[29] - For the three months ended September 30, 2025, total leasing revenue was $308.987 million, with minimum rents contributing $204.244 million[63] - The average base rent per square foot for consolidated centers increased to $67.24 for the twelve months ended September 30, 2025, compared to $63.04 for the same period in 2024[81] - The average base rent per square foot on leases executed during the twelve months ended September 30, 2025, was $69.64 across all retail centers[81] Capital and Liquidity - The Company sold 2.8 million shares of common stock for approximately $50 million in net proceeds during Q3 2025[19] - As of the filing date, the Company had approximately $1 billion in liquidity, including $650 million available on its revolving line of credit[19] - A quarterly cash dividend of $0.17 per share was announced, payable on December 29, 2025[20] - The Company reported a net income attributable to the Company of $(1.060) million for the three months ended September 30, 2025[60] - Cash and cash equivalents as of September 30, 2025, were $290,162, indicating liquidity available for operations and investments[54] - The company made capital expenditures of $403.3 million for the nine months ended September 30, 2025, including $290 million for property acquisitions[71] Debt and Financial Structure - Total market capitalization as of September 30, 2025, was $11,460,615, with debt accounting for 57.6% of this total[45] - Total debt as of September 30, 2025, is $5,076,908,000, with a weighted average interest rate of 5.36%[114] - The Company's pro rata share of total debt is $6,601,760,000, with fixed rate debt comprising 92.92% of the total[119] - The net debt to adjusted EBITDA ratio is used to evaluate the Company's capital structure and financial leverage, providing insights into overall liquidity[115] - The weighted average maturity of the Company's debt is 3.46 years[114] Asset Management - The total assets of the company as of September 30, 2025, were $8,423,928, reflecting the overall financial position of the company[54] - The company reported a straight-line rent receivable of $134.2 million as of September 30, 2025, down from $152.0 million in 2024[68] - The company reported a gain on the sale of assets of $11.939 million for the three months ended September 30, 2025[60] - The company sold its 50% joint venture partnership interest in Biltmore Fashion Park for $110 million[75] - The total sales price for Country Club Plaza was $175.6 million, with $147.7 million of the loan forgiven by the lender[75] - The company has various assets totaling 1,856,000 square feet, including office and hotel spaces adjacent to shopping centers[98] Development and Renovation - The company is currently undergoing ongoing renovations at Crabtree Mall, which is expected to enhance its value and occupancy[91] - The development and redevelopment pipeline forecast indicates total costs ranging from $459 million to $505 million, with expected stabilized yields between 6.75% and 18%[121] - The Green Acres Mall redevelopment is projected to cost between $130 million and $150 million, with an expected stabilized yield of 12.5% to 13.5%[121] - The Scottsdale Fashion Square redevelopment is estimated at $84 million to $90 million, with a projected stabilized yield of 17% to 18%[121] Stock Performance and Investor Relations - The stock price for Macerich Company (MAC) reached a high of $22.27 and a low of $17.29 in Q4 2024, with a consistent dividend of $0.17 per share declared and paid each quarter[127] - The stock price in Q3 2023 ranged from a high of $12.99 to a low of $10.65, indicating a fluctuation of approximately 22%[127] - The stock price in Q1 2025 is projected to be between $15.71 and $21.12, reflecting a potential increase of 20% from the previous quarter's low[127] - The company offers a Dividend Reinvestment Plan allowing stockholders to reinvest dividends into additional common stock[128] - The high stock price of $18.33 in Q3 2024 represents a 42% increase compared to the low of $12.99 in Q2 2024[127] - The stock price in Q2 2024 is expected to be between $12.99 and $17.20, indicating a potential growth opportunity[127] - The company provides an electronic version of its annual report and SEC filings on its website, enhancing transparency for investors[130]

Core Insights - The third-quarter earnings season is prompting investor interest, with a focus on companies that may surprise positively rather than those that have already surged on solid reports [1] - The U.S. retail-property market is showing signs of stabilization, with growth in demand and a steady overall availability rate [4][5] Company Summaries - **Simon Property Group, Inc. (SPG)**: Expected to report third-quarter results on Nov. 3, with a Zacks Consensus Estimate for revenues at $1.53 billion, indicating a 3.5% year-over-year increase. The company has a Zacks Rank of 3 and an Earnings ESP of +1.08%. It has a strong portfolio and is focusing on omnichannel integration and mixed-use developments [9][10] - **Realty Income Corporation (O)**: Scheduled to release earnings on Nov. 3, with a revenue estimate of $1.42 billion, suggesting a 6.61% increase year-over-year. The company has a Zacks Rank of 3 and an Earnings ESP of +0.37%. It maintains a high occupancy rate of 98.6% and focuses on non-discretionary tenants [12][13] - **The Macerich Company (MAC)**: Set to report quarterly figures on Nov. 4, with a revenue estimate of $257.01 million, indicating a 16.7% year-over-year increase. The company holds a Zacks Rank of 3 and an Earnings ESP of +1.08%. It is expected to benefit from its premium shopping centers and a focus on omnichannel retailing [15][16] Industry Insights - The REIT sector is showing resilience in challenging markets, with fundamentals indicating steady performance and long-term growth potential [3] - Construction completions in the retail sector rose to 5.1 million sq ft in the quarter, with asking rents increasing by 0.4% sequentially and 1.8% year-over-year [5]

Performance Overview - Baron Real Estate Income Fund increased by 5.43% in Q3 2025, outperforming the MSCI US REIT Index which rose by 4.49% [2] - Since inception on December 29, 2017, the Fund's cumulative return is 97.17%, significantly higher than the REIT Index's 41.54% [2][3] Comparative Rankings - As of September 30, 2025, the Fund ranks in the 2nd, 5th, 17th, and 2nd percentiles for the 1-, 3-, 5-year, and since inception periods, respectively, according to Morningstar [4] - The Fund's Institutional Share Class is ranked as the 3rd, 10th, 28th, and 2nd best performing share class in its category for the same periods [4] Market Outlook - The Fund remains optimistic about public real estate prospects, expecting improving business fundamentals and values to contribute to attractive returns [9] - Positive comments from executives of leading real estate companies indicate a potential improvement in real estate fundamentals [12][13][14][15][16] Investment Strategy - The Fund's portfolio consists of 75% REITs, 22% non-REIT real estate companies, and 3.1% cash and cash equivalents as of September 30, 2025 [21] - The Fund's investment approach includes a focus on both REITs and non-REIT real estate companies, allowing for flexibility in capitalizing on market opportunities [20] Sector Analysis - Industrial REITs represent the largest exposure in the Fund, with a positive outlook driven by demand/supply dynamics and e-commerce growth [23] - Health Care REITs and senior housing are expected to benefit from favorable demographic trends and improving fundamentals [27] - The Fund maintains a cautious but optimistic view on office REITs, identifying specific markets with potential for growth [27] Recent Activity - The Fund initiated positions in Jones Lang LaSalle Incorporated and increased holdings in Prologis, Inc. and The Macerich Company during Q3 2025 [44][46][47] - The Fund trimmed its exposure to certain holdings like American Tower Corporation and Equinix, Inc. due to market conditions and growth outlooks [41][49] Future Prospects - The Fund anticipates a pivotal moment for real estate, with expectations of solid growth in business fundamentals and potential for improved valuations [54] - The overall sentiment in the real estate market is cautiously optimistic, with expectations of continued demand exceeding supply [51]

Core Insights - Macerich Co. is a real estate investment trust focused on owning, operating, and developing high-quality retail centers in the U.S. [1] Financial Performance - The company is set to report its Q3 2025 earnings on November 4, with analysts expecting an EPS of $0.08, a decrease from $0.36 in the same period last year [2] - Quarterly revenue is anticipated to be $249.91 million, an increase from $220.22 million a year earlier [2] - In Q2 2025, Macerich reported FFO of $0.33, which was below the consensus estimate of $0.35, while revenues of $249.79 million exceeded the consensus of $234.11 million [4] Stock Performance - The 52-week stock price range for Macerich was $12.48 to $22.27 [3] - The current dividend yield stands at 3.80%, with the company paying $0.68 per share in dividends over the last 12 months [3] Investment Insights - To generate an income of $100 per month from Macerich dividends, an investment of approximately $31,579 is required, equating to around 1,764 shares at a price of $17.90 each [4][5] - The dividend yield can fluctuate based on stock price changes and dividend payments [5][6]

Core Insights - The company has released its latest top investment picks for November 2025, emphasizing the timeliness of joining to access these opportunities [1] - Significant investment in research is highlighted, with the company spending over $100,000 annually to identify profitable investment opportunities [1] - The company claims to provide real estate strategies at a fraction of the cost, indicating a focus on affordability and value for members [1] Member Satisfaction - The company has received over 500 five-star reviews from satisfied members, showcasing a strong track record of member satisfaction and positive outcomes [2] - The emphasis on maximizing returns suggests a commitment to delivering high-value investment strategies to its members [2]