The Macerich Company (MAC) announced that it sealed a multi-year sponsorship and member engagement agreement with PenFed Credit Union, America’s second-largest federal credit union, for its Tysons Corner Center Plaza. This arrangement will aid in elevating the brand appeal and reach of the center’s experiential marketing programs and media network, attracting millions of shoppers and PenFed members annually.Spanning 1.8 million square feet and termed a “Fortress property” by Marerich’s president and CEO, Ty ...

A Media Snippet accompanying this announcement is available by clicking on this link. TYSONS, Va., March 20, 2025 (GLOBE NEWSWIRE) -- Macerich (NYSE:MAC), a leading owner, operator, and developer of major retail properties in top markets, has finalized terms with PenFed Credit Union, America's second-largest federal credit union, on a new multi-year sponsorship and member engagement agreement. This exclusive deal enhances the branding power and reach of Tysons Corner Center's experiential marketing program ...

Macerich (MAC) recently announced that a two-level, locally owned entertainment destination, Pindustry, will anchor its mixed-use outdoor development project, HiFi, which is adjacent to premier retail destination FlatIron Crossing in Colorado.HiFi at FlatIron Crossing will feature NOVEL FlatIron by Crescent Communities, a five-story luxury multifamily residential community with 345 units currently under construction at HiFi. Phased openings at HiFi are scheduled to begin in 2027, including the openings of P ...

A Media Snippet accompanying this announcement is available by clicking on this link. SANTA MONICA, Calif., March 06, 2025 (GLOBE NEWSWIRE) -- Macerich (NYSE:MAC), one of the nation's leading owners, operators and developers of major retail properties in top markets, today announced that Pindustry will anchor HiFi, its mixed-use outdoor development project adjacent to premier retail destination FlatIron Crossing. HiFi at FlatIron Crossing, Macerich's thriving property in Colorado's busy Denver-Boulder co ...

Shares of The Macerich Company (MAC) lost 8.95% in the Feb. 27 regular trading session on the NYSE after it reported fourth-quarter 2024 funds from operations (FFO) per share of 47 cents, excluding financing expenses in relation to Chandler Freehold, gain on extinguishment of debt, accrued default interest expense and loss on non-real estate investments, despite meeting the Zacks Consensus Estimate. However, the figure declined 17.5% from the year-ago quarter’s reported numbers.See the Zacks Earnings Calend ...

Financial Strategy and Debt Management - The Company announced the Path Forward Plan in Q2 2024, aiming to reduce its Net Debt to Adjusted EBITDA leverage ratio over the next three to four years[47]. - The company aims to deleverage its capital structure over the next three to four years as part of its Path Forward Plan, though success is not guaranteed[134]. - As of December 31, 2024, the company's total outstanding loan indebtedness was $6.65 billion, which includes $4.99 billion of consolidated debt and $1.69 billion of pro rata share of mortgages on unconsolidated joint ventures[133]. - The company's total debt, including both consolidated and unconsolidated, was $5.1 billion as of December 31, 2024[346]. - The company's pro rata share of the Unconsolidated Joint Venture Centers' fixed rate debt was $1.6 billion as of December 31, 2024, with an average interest rate of 5.28%[348]. - The company's total fixed rate debt was $4.7 billion with an average interest rate of 4.40%, compared to $3.8 billion and 4.29% in 2023[347]. - The company's total floating rate debt as of December 31, 2024, was $0.4 billion with an average interest rate of 6.21%, down from $0.5 billion and 7.43% in 2023[347]. - A 1% increase in interest rates is estimated to decrease future earnings and cash flows by approximately $5.4 million per year based on $542.9 million of floating rate debt outstanding[351]. - The company has interest rate cap agreements in place to manage floating rate debt, which limits how high the prevailing floating loan rate can rise[350]. - The company's average interest rate on fixed rate debt decreased from 4.29% in 2023 to 4.40% in 2024, indicating a slight increase in borrowing costs[347]. Property and Portfolio Management - As of December 31, 2024, the Centers included 40 Regional Retail Centers totaling approximately 43 million square feet of GLA, with an average size of about 990,000 square feet[57]. - The Company acquired interests in several shopping centers, including Arrowhead Towne Center and South Plains Mall, as part of its strategy to enhance its portfolio[50]. - The Company focuses on acquiring well-located, quality Regional Retail Centers with strong revenue enhancement potential, and seeks to improve operating performance through leasing and redevelopment[49]. - The Company has developed a fully integrated real estate organization to optimize operations, tenant mix, and respond to competitive conditions in the market[51]. - The Company emphasizes a decentralized property management strategy, with on-site property managers responsible for operations and tenant relationships[52]. - The Company actively seeks replacement tenants for vacant sites and is considering redevelopment opportunities for these locations[1]. - The shopping center industry is seasonal, with earnings generally higher in the fourth quarter due to increased retail sales during the holiday season[88]. Tenant and Rental Information - For the year ended December 31, 2024, 73% of total rents were derived from Mall Stores and Freestanding Stores under 10,000 square feet, while 27% came from Big Box and Anchor tenants[60]. - Tenant occupancy costs for Mall Store and Freestanding Store tenants in consolidated centers were 11.8% of total sales for the year ended December 31, 2024, compared to 12.1% in 2023[64]. - Major tenants contributed significantly to total rents, with the top 10 tenants accounting for a combined 12.1% of total rents as of December 31, 2024[60]. - The average base rent per square foot for consolidated centers increased to $65.62 in 2024 from $61.66 in 2023, representing an increase of 4.9%[65]. - The average base rent per square foot for unconsolidated joint venture centers rose to $76.11 in 2024 from $70.42 in 2023, reflecting an increase of 9.6%[66]. - The average base rent per square foot on leases executed during 2024 for big boxes and anchors was $14.85, down from $16.65 in 2023, indicating a decrease of 9.6%[66]. - The average base rent per square foot on leases expiring during 2024 for big boxes and anchors was $21.14, a decrease from $29.67 in 2023, representing a decline of 28.8%[66]. - The company has a total of 145 anchor stores, with a combined GLA of 19,946,000 square feet, including 9,093,000 square feet owned and 10,853,000 square feet leased[75]. - Scheduled lease expirations for consolidated centers in 2025 include 522 leases, representing 24.99% of total leased GLA, with an ending base rent of $66.31 per square foot[69]. - For big boxes and anchors, 27 leases are set to expire in 2025, accounting for 15.42% of total leased GLA, with an ending base rent of $11.35 per square foot[70]. - Anchors contributed approximately 7.2% to the company's total rents for the year ended December 31, 2024[73]. - The company’s average base rent per square foot on leases executed during the year for mall stores and freestanding stores was $61.16 in 2024, up from $58.97 in 2023, an increase of 2.0%[65]. Employee and Diversity Initiatives - As of December 31, 2024, the Company had approximately 616 employees, with a turnover rate of 13.7%[81]. - The average tenure of the Company's employees was approximately 10.6 years, indicating a stable workforce[82]. - Approximately 58% of the Company's employees identified as female, and about 30% belong to an underrepresented group, reflecting its commitment to diversity[86]. - The Company has implemented operational protocols to ensure the health and safety of employees and customers at its Centers[87]. Regulatory and Compliance Risks - The company incurs costs to comply with various governmental regulations, impacting capital expenditures and competitive position[76]. - Compliance with the Americans with Disabilities Act and other regulations may require substantial expenditures, impacting cash flows and operational flexibility[119]. - The company faces significant risks from cyber threats, including increased costs for protection and recovery from incidents, despite carrying cyber liability insurance[120]. - The company must maintain an ownership limit of no more than 50% in value of its outstanding stock to qualify as a REIT[148]. - The company believes it currently qualifies as a REIT, but there are risks that could jeopardize this status, affecting distributions to stockholders[155]. - If the company fails to qualify as a REIT, it could face significant tax liabilities and reduced funds for distributions[157]. - Legislative changes to U.S. federal income tax laws could adversely affect the taxation of the company and its stockholders[165]. - The company may be subject to a 100% tax on income from prohibited transactions, impacting asset sales[161]. - The company must distribute 90% of its annual taxable income to stockholders, which may require borrowing or selling assets if cash flow is insufficient[162]. Environmental and Natural Disaster Risks - The Company carries specific earthquake insurance with a combined annual aggregate loss limit of $100 million for its Centers located in California and the Pacific Northwest[79]. - Environmental liabilities may arise from hazardous materials at properties, leading to significant costs for investigation and remediation[111]. - The company faces risks from climate change, which could impact property demand and increase operational costs related to compliance and repairs[114]. - Properties are subject to potential natural disasters, which could delay projects and increase insurance costs, negatively affecting financial performance[115]. Market and Economic Risks - Elevated interest rates may negatively impact consumer spending and tenant businesses, with increased borrowing costs affecting cash flow and debt service[128][129]. - International trade disputes and tariffs could increase costs for tenants, potentially impacting their ability to meet obligations and affecting the company's revenue[132]. - Future pandemics or outbreaks of infectious diseases could disrupt operations, leading to decreased consumer spending and potential tenant bankruptcies[124][125]. - Acts of violence, vandalism, and civil unrest could adversely affect property values and revenue generation from tenants[122][123]. - Inflationary pressures may increase operating costs, impacting cash flows and profits despite tenants covering some expenses[127]. - The company faces risks related to occupancy levels, customer traffic, and rental income, which may be adversely affected by store closures from significant tenants[104]. - Historical revenue growth has been tied to the acquisition and redevelopment of shopping centers, with future success dependent on factors like capital availability and competition from other REITs[105]. - The company may not achieve anticipated financial results from newly acquired assets due to risks associated with real estate development, including financing and construction delays[106]. - Excess space at properties may lead to downward pressure on rental rates and occupancy levels, with ongoing bankruptcies among tenants impacting overall performance[108]. - The company sold certain properties as part of the Path Forward Plan in 2024, but real estate investments remain relatively illiquid, limiting portfolio adjustments[109]. - Impairment charges on real estate assets could adversely affect operating results, with past charges indicating potential future risks[110].

Financial Data and Key Metrics Changes - FFO excluding certain expenses was approximately $117 million or $0.47 per share in Q4 2024, down from approximately $128 million or $0.57 per share in Q4 2023, primarily due to higher interest and severance expenses [34][35] - Same-center NOI excluding lease termination income decreased by 0.4% in Q4 2024 compared to Q4 2023, but increased by 0.2% for the full year [36][37] - Debt to EBITDA at year-end 2024 was slightly below 8x, nearly a full turn lower than the previous year [40] Business Line Data and Key Metrics Changes - The company achieved 8.8% base rent releasing spreads for permanent tenants under 10,000 square feet in 2024, with new leases signed during this period being 17.6% higher than prior period permanent rent [13][14] - The current physical permanent occupancy rate is 84%, with a target of 89% by 2028 [14][15] - The leasing team is focused on increasing the percentage of new lease deals versus renewals, targeting an average of 4 million square feet of leasing in 2025 and 2026 [12][15] Market Data and Key Metrics Changes - Sales per square foot at the end of Q4 were $837, up $3 from the last quarter, while sales excluding Eddy properties were $915 [20] - Portfolio traffic was up almost 2% compared to 2023, returning to pre-COVID levels, with occupancy in Q4 at 94.1% [22][23] - The company opened 530,000 square feet of new stores in Q4, totaling 1.5 million square feet for the year [23] Company Strategy and Development Direction - The Path-Forward Plan aims to simplify the business, improve operational performance, and reduce leverage over a five-year horizon [7][8] - The company is focusing on leasing vacant and underperforming spaces to drive incremental revenue and improve NOI [11][15] - Significant progress has been made in consolidating joint ventures and simplifying the business structure [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the leasing environment, noting a healthy demand from retailers and a focus on permanent leasing [80][82] - The anticipated landlord work and tenant improvement costs were higher than expected, which could impact the execution of the Path-Forward Plan [120][121] - Management is optimistic about achieving incremental NOI goals by 2028, driven by a strategic focus on leasing and tenant remerchandising [15][17] Other Important Information - The company has identified a clear path to achieving its $2 billion disposition target, having completed nearly $800 million to date [46][47] - The company is currently under contract to sell Wilton Mall for $25 million, expected to close in the first half of 2025 [45] - The company has approximately $683 million of liquidity, including $540 million of capacity on its line of credit [40] Q&A Session Summary Question: Same-store NOI growth expectations for 2025 - Management indicated that same-store NOI growth in 2025 is expected to be flat initially, with improvements anticipated in 2027 and 2028 as leasing goals are achieved [52][54] Question: Impact of new leases on sales numbers - Management expects to see an increase in sales numbers as new leases typically involve higher rental revenue compared to existing leases [56][62] Question: Efficiency improvements from new processes - Management noted that the new leasing dashboard has significantly improved efficiency and visibility, allowing for better resource allocation and leasing outcomes [70][75] Question: Update on development pipeline and CapEx - Management acknowledged that higher anticipated landlord work and tenant improvement costs could lead to increased CapEx in 2025 and 2026 [126][127] Question: Quality and cap rates of planned dispositions - Management indicated that the planned dispositions are expected to have sub-8% cap rates, with a focus on outparcels and non-enclosed mall assets [134][135]

Core Insights - Macerich reported revenue of $273.68 million for the quarter ended December 2024, reflecting a 14.7% increase year-over-year and a surprise of +16.24% over the Zacks Consensus Estimate of $235.44 million [1] - The company's EPS for the quarter was $0.47, matching the consensus estimate but up from $0.29 in the same quarter last year [1] Financial Performance - Minimum rents generated $159.11 million, exceeding the average estimate of $138.07 million by three analysts, representing a year-over-year increase of +17% [4] - Management Companies revenues were reported at $7.72 million, slightly below the average estimate of $7.74 million, showing a year-over-year decline of -2.9% [4] - Tenant recoveries amounted to $65.89 million, surpassing the average estimate of $57.83 million, with a year-over-year increase of +22.4% [4] - Percentage rents reached $22.57 million, exceeding the average estimate of $14.80 million, indicating a +13% change year-over-year [4] Market Performance - Over the past month, Macerich's shares returned -1.4%, compared to a -2.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Macerich reported quarterly funds from operations (FFO) of $0.47 per share, matching the Zacks Consensus Estimate, but down from $0.56 per share a year ago [1] - The company posted revenues of $273.68 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 16.24%, compared to $238.69 million in the same quarter last year [2] - The stock has added about 1% since the beginning of the year, underperforming the S&P 500's gain of 1.3% [3] Financial Performance - The FFO for the previous quarter was expected to be $0.40 per share, but the actual result was $0.38, resulting in a surprise of -5% [1] - Over the last four quarters, Macerich has surpassed consensus FFO estimates only once [1] - The current consensus FFO estimate for the upcoming quarter is $0.33 on revenues of $207.82 million, and for the current fiscal year, it is $1.55 on revenues of $892.82 million [7] Market Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3] - The estimate revisions trend for Macerich is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] - The REIT and Equity Trust - Retail industry is currently in the top 28% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Core Viewpoint - The Macerich Company has released its Fourth Quarter 2024 Earnings Results and will discuss these results in a conference call on February 27, 2025 [1][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 densely populated U.S. markets [4]. - The company's portfolio includes 43 million square feet of real estate, primarily consisting of interests in 40 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].