The Macerich Company ( MAC ), a shopping center/mall REIT, is primarily located in California, Arizona, and New York. The company has significantly changed its portfolio strategy over the last couple of years from a broad view to a focusI am an experienced Financial Analyst with more than 15 years of experience and proven working history in the financial services industry. I have expertise in selecting stocks for Buy/Sell-side investment firms. I have experience building financial/economic models in sectors ...

Key Points California-based Triad Investment Management bought 206,916 shares of Macerich in the fourth quarter; the estimated transaction value was $3.82 million based on quarterly average pricing. Meanwhile, the quarter-end position value increased by $3.82 million as a result of the new purchase. The fund now holds 206,916 MAC shares valued at $3.82 million as of December 31. These 10 stocks could mint the next wave of millionaires › California-based Triad Investment Management initiated a ne ...

Core Viewpoint - The Macerich Company announced the tax treatment for its dividend distributions for the year 2025, detailing the classification of dividends for income tax purposes [1]. Group 1: Dividend Distribution Details - Macerich paid dividends of $0.68 per share during the calendar year ended December 31, 2025 [1]. - The dividends are classified as follows for tax purposes: - For each of the four distributions made in 2025, the rate per share was $0.17, with all classified as non-dividend distributions [1]. - There were no amounts classified as ordinary dividends, Section 199A dividends, qualified dividends, or capital gain distributions for the year [1]. Group 2: Company Overview - Macerich is a fully integrated, self-managed, and self-administered real estate investment trust (REIT) [2]. - 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 [2]. - Macerich currently owns 39 million square feet of real estate, primarily consisting of interests in 38 retail centers [2]. - The company is committed to advancing environmental goals, social good, and sound corporate governance [2].

Core Viewpoint - Mackenzie Realty Capital, Inc. has established a new entity, MacKenzie Apartment Communities, Inc., focused on multi-family properties on the West Coast, which is currently wholly owned by MKZR [1][3]. Group 1: Company Structure and Valuation - As of January 1, 2026, MKZR has contributed its multi-family assets and development property to MAC, which is a stand-alone company [1]. - The Net Asset Value (NAV) of MAC has been determined to be $18.10 per share, based on appraisals and construction costs, with a potential range from $16.46 to $19.95 per share [2]. - The current portfolio of MAC includes 4 stabilized properties and one development project, with the newly constructed Aurora at Green Valley yet to be appraised [2]. Group 2: Future Opportunities and Strategy - The CEO of MKZR expressed excitement about the launch of MAC, highlighting options such as raising funds specifically for multi-family assets, merging with another multi-family focused REIT, or spinning off MAC shares to MKZR shareholders on a 1:1 basis [3]. - MAC is noted to have a clean balance sheet and favorable market conditions, indicating a positive outlook for its future [3]. Group 3: Company Background - MacKenzie Realty Capital, founded in 2013, is a West Coast-focused REIT aiming to invest at least 80% of its total assets in real property, with a portfolio that includes 50% multi-family and 50% boutique class A office properties [3].

Core Insights - The Macerich Company (MAC) has seen a stock price increase of 16.2% over the past six months, significantly outperforming the industry's decline of 1.9% [1][7] - The company operates a portfolio of premium shopping centers in the United States, focusing on omnichannel retailing to support long-term growth [1][2] - An aggressive capital-recycling program is in place, aimed at reducing leverage and allowing investment in higher-growth properties [1][4] Revenue and Market Position - Macerich's premium malls are located in affluent U.S. markets, providing a strong foundation for generating cash flows [2][7] - Total revenues for MAC are projected to increase by 12.7% in 2025 [2] Strategic Initiatives - The company is enhancing asset quality and customer relationships by adopting an omnichannel model, which is essential for retail stores fulfilling orders from mall-based locations [3] - There is a focus on reusing and repositioning properties, particularly through the recapturing of anchor tenants to attract shoppers [3] Capital Management - The capital-recycling program involves divesting non-core and slower-growth assets, with proceeds being reinvested in core markets and higher-growth properties through acquisitions and redevelopment [4][7] - This strategy is expected to sustain the upward trend in MAC's stock price in the near term [4]

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]