Core Viewpoint - Macerich is positioned for growth in 2025 with a focus on simplifying its business, enhancing operational performance, and reducing leverage, making it an attractive investment opportunity for shareholders [4]. Company Overview - Macerich's leadership team includes CEO Jack Hsieh, CFO Dan Swanstrom, and Senior Vice President of Asset Management Brad Miller, among others [2][3]. Strategic Objectives - The company has outlined clear objectives under its "Path Forward Plan" for 2025, emphasizing the need to simplify operations, improve performance metrics, and lower debt levels [4].

Summary of The Macerich Company 2026 Conference Call Company Overview - **Company**: The Macerich Company (NYSE: MAC) - **Event**: Citi's 2026 Global Property CEO Conference - **Date**: March 02, 2026 - **Key Speakers**: Jack Hsieh (CEO), Dan Swanstrom (CFO), Brad Miller (SVP, Asset Management) Core Industry Insights - **Leasing Performance**: In 2025, Macerich signed 7.1 million square feet of new and renewal leases, an 85% increase over 2024, setting a new company record [6] - **Leasing Speedometer**: The leasing speedometer is at 76%, ahead of the 70% target for year-end, with expectations to reach 85% by mid-2026 [6] - **Signed Not Open (SNO) Pipeline**: The SNO pipeline reached $107 million, exceeding the $100 million target, with projections of incremental contributions of $30 million in 2026, $40-$45 million in 2027, and $45-$50 million in 2028 [7] - **Anchor Replacements**: All 30 targeted anchor and big box replacements are committed, expected to generate over $750 million in annual tenant sales [7] Financial Highlights - **Portfolio Sales**: Portfolio sales reached $921 per square foot, a new high since the IPO in 1994 [8] - **Positive Leasing Spreads**: The company has posted 17 consecutive quarters of positive leasing spreads [8] - **NOI Growth**: Expected at least 3% growth for the go-forward portfolio in 2026, with acceleration in 2027 and 2028 due to new leasing activity and redevelopment projects [11] Strategic Focus Areas - **Path Forward Plan**: The company is focused on completing a leasing pipeline of 350 additional new leases, solidifying lease expirations, and evaluating new acquisition opportunities [12] - **De-leveraging**: The company is in a de-leveraging stage, with a goal to reduce debt-to-EBITDA to the low- to mid-6 times range [29] - **Acquisition Strategy**: Future acquisitions will be opportunistic and must align with the 2028 objectives, focusing on properties that enhance the portfolio without jeopardizing current plans [19][30] Operational Improvements - **Technology Integration**: The company has improved internal processes and technology, utilizing Yardi for accounting and tracking, which has enhanced efficiency in leasing operations [40][41] - **AI Utilization**: Currently exploring AI applications for lease intelligence and energy efficiency, with potential future applications for market analysis and tenant selection [53][55] Market Outlook - **Retail Demand**: Demand remains strong across various sectors, including traditional retail, international brands, food and beverage, and entertainment [9] - **Future Projections**: The company anticipates continued positive growth in same-store and online retail for 2027, comparable to the last 12 months [63][66] Additional Insights - **Tenant Relationships**: Tenants appreciate the clarity and speed of decision-making from Macerich, which has improved their confidence in investing in the centers [50][52] - **Operational Efficiency**: The company is focused on controlling expenses and maximizing utility efficiency, especially in light of vacancy [61] This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic direction, financial performance, and market outlook.

Core Viewpoint - The Macerich Company has successfully closed an amended and restated $900 million revolving credit facility, enhancing its liquidity and financial flexibility while extending the maturity term and lowering costs [1][2]. Financial Details - The facility size was increased from $650 million to $900 million, with the maturity extended from January 2027 to March 2030, including a 12-month extension option [2]. - The pricing grid was lowered from a spread range of 200 to 250 basis points over SOFR to 180 to 220 basis points over SOFR, with potential further reductions to 135 to 165 basis points upon achieving certain performance thresholds [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, owning 39 million square feet of real estate across 38 retail centers [3]. - The company is committed to advancing environmental goals, social good, and sound corporate governance [3].

Core Viewpoint - Macerich Company will participate in Citi's 2026 Global Property CEO Conference, highlighting its leadership in the retail real estate sector [1]. Group 1: Company Overview - Macerich is a fully integrated, self-managed, self-administered real estate investment trust (REIT) [3]. - The company focuses on high-quality retail real estate in densely populated U.S. markets, with a portfolio concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor [3]. - Macerich currently owns 39 million square feet of real estate, primarily consisting of interests in 38 retail centers [3]. Group 2: Corporate Governance and Communication - Macerich is committed to advancing environmental goals, social good, and sound corporate governance [3]. - The company utilizes its Investor Relations website for disclosing material nonpublic information and complying with disclosure obligations under Regulation FD [4]. - Additional information about Macerich can be accessed through social media platforms such as LinkedIn [4].

Financial Strategy - The Company unveiled the Path Forward Plan in Q2 2024, aiming to improve its balance sheet and enhance operational efficiencies[45] - The Company targets to reduce its Net Debt to Adjusted EBITDA leverage ratio over the next two to three years[47] - The Company plans to focus on asset dispositions, including non-core properties, to refine its portfolio[45] Property Management and Operations - The Company emphasizes decentralized property management to optimize operations and tenant mix at each Center[51] - The Company is pursuing ground-up development projects selectively to increase growth opportunities[56] - Tenant occupancy costs are a critical factor for profitability, with a focus on maintaining low costs relative to tenant sales[65] Rental Income and Lease Expirations - Consolidated Centers reported minimum rents of 8.1% for 2025, up from 7.9% in 2023, while percentage rents decreased to 0.6% from 0.8%[66] - Average base rent per square foot for consolidated centers increased to $66.92 in 2025 from $61.66 in 2023, reflecting a growth of 8.5%[67] - Unconsolidated joint venture centers showed an increase in average base rent per square foot to $79.47 in 2025, up from $70.42 in 2023, marking a 12.9% increase[67] - Scheduled lease expirations for consolidated centers indicate that 15.60% of total leased GLA will expire in 2026, with an ending base rent of $70.67 per square foot[70] - For big boxes and anchors, 4.61% of total leased GLA will expire in 2026, with an ending base rent of $27.31 per square foot[71] - The average base rent per square foot on leases executed during 2025 for consolidated centers was $66.92, compared to $65.62 in 2024[68] Tenant Composition and Performance - Approximately 73% of total rents for the year ended December 31, 2025, were derived from Mall Stores and Freestanding Stores under 10,000 square feet[60] - Major tenants accounted for 27% of total rents from Big Box and Anchor tenants, with Dick's Sporting Goods contributing 4%[62] - Anchors accounted for approximately 6.9% of the company's total rents for the year ended December 31, 2025[74] - The Company is focusing on maintaining strong anchor tenants to drive customer traffic and enhance the desirability of its centers[72] Employee Relations and Diversity - As of December 31, 2025, the Company employed approximately 598 individuals, with a turnover rate of 14.3%[87][88] - The Company achieved a Net Promoter Score (NPS) of 55, indicating excellent employee relations according to Bain & Company's scoring framework[87] - The Company recognizes the importance of diversity, with approximately 58% of its employees identifying as female and 30% belonging to underrepresented groups[91] - The Company has implemented various employee benefits, including a 401(k) plan, stock purchase program, and comprehensive health insurance[93] Sustainability and Corporate Responsibility - The Company has maintained a strong commitment to sustainability, achieving the 1 GRESB ranking in the North American Retail Sector for ten consecutive years[95] - The Company has established operational protocols to ensure the health and safety of employees and customers at its centers[92] Debt Management and Interest Rate Risk - The Company is exposed to interest rate risk and manages this by maintaining a ratio of fixed-rate long-term debt to total debt[376] - As of December 31, 2025, the total long-term debt for the Consolidated Centers is $5.1 billion, with a fair value of $4.98 billion[377] - The average interest rate for fixed rate debt at the Consolidated Centers is 4.56%, while the average interest rate for floating rate debt is 5.62%[378] - The Company's pro rata share of the Unconsolidated Joint Venture Centers' total fixed rate debt is $1.55 billion, with an average interest rate of 5.29%[379] - A 1% increase in interest rates is estimated to decrease future earnings and cash flows by approximately $4.7 million per year based on $471.1 million of floating rate debt outstanding[382] - The Company utilizes derivative financial instruments to manage interest rate risk, including interest rate cap and swap agreements[380] - The total fixed rate debt for the Consolidated Centers was $4.7 billion as of December 31, 2024, indicating a slight increase in average interest rates from 4.40% to 4.56%[378] - The total floating rate debt for the Consolidated Centers increased from $0.4 billion in 2024 to $0.5 billion in 2025, with a decrease in average interest rates from 6.21% to 5.62%[378] - The Company's pro rata share of floating rate debt in Unconsolidated Joint Venture Centers decreased from $132.9 million in 2024 to $12.0 million in 2025[379] - The fair value of the Company's long-term debt is estimated using a present value model that reflects risks associated with similar long-term debt[383] - The Company extended a $200 million loan at South Plains Mall to November 6, 2029, at an existing rate of 4.22%[377]

Core Insights - The Macerich Company (MAC) reported fourth-quarter 2025 funds from operations (FFO) per share of 48 cents, exceeding the Zacks Consensus Estimate of 43 cents and slightly up from 47 cents in the prior-year quarter [1][11] - Quarterly revenues were $261.7 million, which fell short of the Zacks Consensus Estimate of $283.3 million and represented a 4.4% decrease from the same quarter last year [2][11] - For the full year 2025, Macerich reported an FFO per share of $1.50, surpassing the Zacks Consensus Estimate of $1.45 but down from $1.58 in the previous year; revenues reached $1.01 billion, a 10.4% year-over-year increase [3] Leasing and Occupancy - The portfolio tenant sales per square foot for spaces under 10,000 square feet increased to $881, up from $837 year-over-year [4] - In Q4, Macerich signed leases totaling 1.4 million square feet, marking a 36% increase in leased square footage year-over-year [4][11] - Go-Forward Portfolio Centers' net operating income (NOI) rose 1.7% year-over-year to $197.5 million, with base rent re-leasing spreads increasing by 6.7% for the 17th consecutive quarter [5][11] - Portfolio occupancy was 94% as of December 31, 2025, slightly down from 94.1% a year earlier, while Go-Forward Portfolio Center occupancy was 94.9% [6] Financial Activity - During Q4 2025, MAC completed outparcel and land sales totaling $42.3 million [7] - As of February 18, 2026, Macerich had approximately $990 million in liquidity, including $650 million available on its revolving line of credit [8] Market Position - Macerich currently holds a Zacks Rank of 3 (Hold) [9]

Core Insights - Macerich reported revenue of $261.7 million for the quarter ended December 2025, reflecting a 4.4% decline year-over-year and a surprise of -7.63% compared to the Zacks Consensus Estimate of $283.31 million [1] - The company's EPS was $0.48, a significant improvement from -$0.89 in the same quarter last year, resulting in a positive surprise of +10.73% against the consensus estimate of $0.43 [1] Financial Performance - Minimum rents generated $151.87 million, falling short of the average estimate of $167.66 million by three analysts, marking a year-over-year decrease of -4.6% [4] - Management Companies revenues were reported at $6.44 million, exceeding the average estimate of $6.09 million, but still showing a year-over-year decline of -16.6% [4] - Tenant recoveries amounted to $65.23 million, below the average estimate of $71.99 million, with a year-over-year change of -1% [4] - Percentage rents reached $19.31 million, slightly above the estimated $18.92 million, but represented a -14.5% change compared to the previous year [4] - Net Earnings Per Share (Diluted) was reported at -$0.07, compared to the average estimate of -$0.01 from four analysts [4] Stock Performance - Over the past month, Macerich's shares have returned +2%, contrasting with a -1.3% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Macerich (MAC) reported quarterly funds from operations (FFO) of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, and showing a slight increase from $0.47 per share a year ago, indicating a positive performance trend [1] Financial Performance - The company posted revenues of $261.7 million for the quarter ended December 2025, which was 7.63% below the Zacks Consensus Estimate and a decrease from $273.68 million in the same quarter last year [2] - Over the last four quarters, Macerich has surpassed consensus FFO estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Macerich shares have increased by approximately 1.8% since the beginning of the year, contrasting with the S&P 500's zero return, indicating relative outperformance [3] Future Outlook - The future performance of Macerich's stock will largely depend on management's commentary during the earnings call and the company's FFO outlook for upcoming quarters [4][6] - The current consensus FFO estimate for the next quarter is $0.31 on revenues of $244.46 million, and for the current fiscal year, it is $1.47 on revenues of $992.64 million [7] Industry Context - The REIT and Equity Trust - Retail industry, to which Macerich belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Data and Key Metrics Changes - FFO for Q4 2025 was approximately $129 million or $0.48 per share, with a legal claims settlement income of $16.1 million impacting results [20][21] - Go-forward portfolio centers NOI increased by 1.7% in Q4 2025 compared to Q4 2024, and for the full year, it increased by 1.8% compared to 2024 [20][21] - Net debt to EBITDA at the end of Q4 was 7.78x, a full turn lower than at the outset of the Path Forward plan [24] Business Line Data and Key Metrics Changes - The company signed 7.1 million sq ft of new and renewal leases in 2025, an 85% increase over 2024, setting a new company record [7][16] - Trailing twelve-month leasing spreads as of December 31, 2025, were 6.7%, up 80 basis points from the last quarter, marking 17 consecutive quarters of positive leasing spreads [15] - Occupancy at the end of Q4 was 94%, up 60 basis points from the last quarter, with the go-forward portfolio occupancy at 94.9% [14] Market Data and Key Metrics Changes - Traffic for 2025 was flat compared to 2024, but inline sales were up 1.5%, with luxury sales increasing by nearly 5.5% [37][19] - The company is experiencing a K-shaped consumer trend, with strong demand for luxury items while other segments remain cautious [35][38] Company Strategy and Development Direction - The Path Forward Plan focuses on simplifying the business, driving operational performance improvement, and reducing leverage, with significant progress reported in 2025 [5][12] - The company plans to provide an updated Path Forward Plan 3.0 at REITWeek in June and intends to return to providing earnings guidance beginning in 2027 [12][13] - Key focus areas for 2026 include completing the leasing pipeline, solidifying lease expirations, and evaluating new acquisition opportunities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the company, noting that the heavy lifting of de-risking the Path Forward Plan is substantially complete [12] - The outlook for consumer spending is cautiously optimistic, with expectations of increased traffic due to upcoming events like the World Cup and Summer Olympics [35][36] - Management highlighted the importance of physical stores as the most profitable channel for retailers, indicating a positive environment for leasing [39] Other Important Information - The company has completed $1.3 billion in dispositions towards its $2 billion goal, with additional unencumbered assets identified for sale [10][25] - The company is focused on value-add acquisition opportunities rather than stabilized higher-quality centers due to current cost of capital considerations [29][30] Q&A Session Summary Question: What types of properties are most likely acquisition candidates? - Management indicated a focus on value-add opportunities that are accretive to their 2028 FFO plans, with Crabtree as a prime example [29][30] Question: How would funding be structured for a sizable deal? - Management stated that issuing equity would be the first choice, followed by finding a capital partner, with property sales as a distant third option [31] Question: How should investors think about growth inflection timing? - Management noted that the SNO pipeline indicates a back-end weighted contribution in 2026, with significant growth expected in 2027 and 2028 [33] Question: What is the overall health of the consumer? - Management described a K-shaped consumer trend, with strong demand for luxury items and cautious spending in other segments [35][38] Question: What is the impact of closures and proactive space take-backs on NOI growth? - Management indicated that frictional downtime from tenant strategy initiatives impacted growth, but significant future growth is expected [74] Question: What is the timeline for remaining asset sales? - Management explained that the timeline for asset sales is influenced by debt maturities and the need to maximize value through zoning and entitlements [58]

Financial Data and Key Metrics Changes - For Q4 2025, FFO excluding certain expenses was approximately $129 million or $0.48 per share, with a legal claims settlement income of $16.1 million impacting results [20][21] - Go-forward portfolio centers NOI increased by 1.7% in Q4 2025 compared to Q4 2024, and for the full year, it increased by 1.8% compared to 2024 [20][21] - Net debt to EBITDA at the end of Q4 was 7.78x, a full turn lower than at the outset of the Path Forward plan, with a strategy to reduce leverage to the low to mid-6x range over the next couple of years [24][25] Business Line Data and Key Metrics Changes - The company signed 7.1 million sq ft of new and renewal leases in 2025, an 85% increase over 2024, setting a new company record [7][16] - Trailing twelve-month leasing spreads as of December 31, 2025, were 6.7%, up 80 basis points from the last quarter, marking 17 consecutive quarters of positive leasing spreads [15][21] - The occupancy rate at the end of Q4 was 94%, up 60 basis points from the last quarter, with the go-forward portfolio occupancy at 94.9% [14] Market Data and Key Metrics Changes - Traffic for 2025 was flat compared to 2024, but inline sales were up 1.5%, with luxury sales increasing by nearly 5.5% [14][37] - The company is experiencing a K-shaped consumer trend, with strong demand from higher-income segments while lower-income segments remain cautious [35][38] Company Strategy and Development Direction - The Path Forward Plan focuses on simplifying the business, improving operational performance, and reducing leverage, with significant progress reported in 2025 [5][12] - The company plans to provide an updated Path Forward Plan 3.0 at REITWeek in June and intends to return to providing earnings guidance beginning in 2027 [12][13] - The focus for 2026 includes completing the leasing pipeline, solidifying lease expirations, and evaluating new acquisition opportunities [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory of the company, noting that the heavy lifting of de-risking the Path Forward Plan is substantially complete [12] - The leasing environment remains strong, with a significant number of deals being reviewed and approved, indicating robust demand for retail space [18][19] - Management highlighted the importance of physical stores as the most profitable channel for retailers, which bodes well for the company's portfolio [39] Other Important Information - The company has completed $1.3 billion in dispositions towards its $2 billion goal, with ongoing efforts to sell additional assets [10][25] - The company is actively working on renovation plans for newly acquired properties, such as Crabtree, which is expected to enhance value [10][11] Q&A Session Summary Question: What types of properties are acquisition candidates? - Management indicated a focus on value-add opportunities that are accretive to their 2028 FFO plans, rather than stabilized higher-quality centers [29][30] Question: How would funding be structured for a sizable acquisition? - The preference would be to issue equity if it makes sense, with potential for capital partnerships, and a distant third option would be recycling properties [31] Question: How does the leasing pipeline look for growth inflection? - Management noted that the snow pipeline indicates significant contributions in 2026, with a more pronounced impact expected in 2027 and 2028 [33] Question: What is the overall health of the consumer? - Management acknowledged a K-shaped consumer trend, with strong performance in luxury segments and cautious spending in lower-income tiers [35][38] Question: What is the impact of closures and proactive space take-backs on NOI growth? - Excluding certain closures, NOI growth could have been around 2.5% for the year, indicating potential for significant future growth [74]