Macerich(MAC) - 2025 Q1 - Quarterly Results

Executive Summary & Financial Highlights Macerich reported a reduced net loss and stable FFO per share in Q1 2025, driven by strong leasing activity and strategic balance sheet management, maintaining significant liquidity and a consistent dividend Executive Summary In the first quarter of 2025, Macerich reported a reduced net loss of $50.1 million compared to $126.7 million in the prior year's quarter, with Funds from Operations (FFO) per share remaining stable at $0.33 Q1 2025 Key Performance Indicators | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Loss Attributable to Company | ($50.1M) | ($126.7M) | Improved | | Diluted EPS | ($0.20) | ($0.59) | Improved | | FFO per Share (adjusted) | $0.33 | $0.33 | Flat | | Same Center NOI (excl. lease termination) | +0.9% | N/A | Increase | | Portfolio Occupancy | 92.6% | 93.4% | -0.8% | | Leased Square Footage | 2.6M sq ft | 1.0M sq ft (approx) | +156% | - Portfolio occupancy decreased to 92.6% as of March 31, 2025, down 0.8% YoY, primarily due to the departure of temporary and holiday specialty tenants[9] - The company signed leases for 2.6 million square feet in Q1 2025, a 156% increase from Q1 2024, driven by strong renewal volume of 2.3 million square feet[9] - Key financing activities included a new $340 million, ten-year loan on Washington Square at a 5.58% fixed rate, with proceeds used to repay the FlatIron Crossing mortgage and the revolving line of credit balance[9] - The company completed the sale of Wilton Mall for $25 million and SouthPark for $11 million, with liquidity standing at approximately $995 million as of the filing date[10][12] - A quarterly cash dividend of $0.17 per share was announced, payable on June 17, 2025[13] Financial Highlights This section provides detailed financial tables for the first quarter ended March 31, 2025, showing a net loss attributable to the company of $50.1 million, an improvement from the $126.7 million loss in the same period of 2024, with adjusted FFO per share flat at $0.33 Results of Operations (Q1 2025 vs Q1 2024) | (In thousands, except per share) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenues | $249,224 | $208,783 | | Total expenses | $286,413 | $232,092 | | Net loss attributable to the Company | $(50,123) | $(126,728) | | EPS - diluted | $(0.20) | $(0.59) | | FFO per share - diluted (adjusted) | $0.33 | $0.33 | Reconciliation of Net Loss to FFO (Q1 2025) | (In thousands) | Amount | | :--- | :--- | | Net loss attributable to the Company | $(50,123) | | Adjustments for depreciation, amortization, asset sales, etc. | +131,096 | | FFO attributable to common stockholders - basic and diluted | $80,973 | | Adjustments for default interest, non-real estate investments | +6,399 | | FFO (adjusted) - basic and diluted | $87,372 | NOI - Same Centers Performance (Q1 2025 vs Q1 2024) | (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | NOI - Same Centers | $196,301 | $190,769 | | NOI - Same Centers, excluding lease termination income | $191,330 | $189,588 | | Percentage change, excluding lease termination income | 0.9% | N/A | Capital Information This section details Macerich's capital structure, including its total market capitalization, debt-to-market capitalization ratio, and changes in common and equivalent shares outstanding as of March 31, 2025 Capital Information and Market Capitalization As of March 31, 2025, Macerich's total market capitalization was $11.33 billion, a decrease from $11.90 billion at the end of 2024, with pro rata portfolio debt at $6.80 billion, resulting in a debt-to-total market capitalization ratio of 60.0% Market Capitalization Data (as of period end) | (dollars in thousands) | 3/31/2025 | 12/31/2024 | | :--- | :--- | :--- | | Total portfolio debt, pro rata | $6,798,037 | $6,647,576 | | Equity market capitalization | $4,533,077 | $5,255,678 | | Total market capitalization | $11,331,114 | $11,903,254 | | Debt as a % of total market cap | 60.0% | 55.9% | Changes in Total Common and Equivalent Shares/Units During the first quarter of 2025, the total number of common and equivalent shares/units outstanding increased slightly from 263.84 million to 264.01 million, primarily driven by the issuance of 172,192 shares and units from restricted stock and other share-based plans Changes in Shares/Units (Q1 2025) | Description | Total Common and Equivalent Shares/Units | | :--- | :--- | | Balance as of December 31, 2024 | 263,839,259 | | Issuance from stock/unit plans | 172,192 | | Conversion of partnership units | 0 | | Balance as of March 31, 2025 | 264,011,451 | Financial Data This section presents Macerich's unaudited consolidated and pro rata financial statements, including statements of operations, balance sheets, supplemental FFO data, capital expenditures, and asset disposition details for Q1 2025 Consolidated Statements of Operations (Unaudited) For the three months ended March 31, 2025, the company reported total revenues of $249.2 million and total expenses of $286.4 million, resulting in a net loss attributable to the company of $50.1 million after accounting for other items Consolidated Statement of Operations (Q1 2025) | (In thousands) | Amount | | :--- | :--- | | Total revenues | $249,224 | | Total expenses | $286,413 | | Equity in loss of unconsolidated JVs | $(799) | | Loss on sale or write down of assets, net | $(13,987) | | Net loss attributable to the Company | $(50,123) | Consolidated Balance Sheet (Unaudited) As of March 31, 2025, Macerich's consolidated balance sheet showed total assets of $8.68 billion, with key components including $7.02 billion in net property and $728.6 million in investments in unconsolidated joint ventures, while total liabilities were $5.94 billion, primarily consisting of $5.23 billion in mortgage notes payable Consolidated Balance Sheet (as of March 31, 2025) | (In thousands) | Amount | | :--- | :--- | | ASSETS | | | Property, net | $7,021,458 | | Investments in unconsolidated joint ventures | $728,567 | | Cash and cash equivalents | $253,248 | | Total assets | $8,680,059 | | LIABILITIES AND EQUITY | | | Mortgage notes payable | $5,232,196 | | Total liabilities | $5,936,136 | | Total equity | $2,743,923 | | Total liabilities and equity | $8,680,059 | Non-GAAP Pro Rata Financial Information (Unaudited) This section presents financial information on a pro rata basis, incorporating the company's share of unconsolidated joint ventures, with total pro rata share of leasing revenue at $306.5 million for Q1 2025 Pro Rata Leasing Revenue (Q1 2025) | (In thousands) | Consolidated Share | Unconsolidated JVs Share | Total Company Share | | :--- | :--- | :--- | :--- | | Minimum rents | $159,135 | $50,136 | $209,271 | | Tenant recoveries | $66,921 | $18,934 | $85,855 | | Total leasing revenue | $234,242 | $72,267 | $306,509 | Pro Rata Assets and Liabilities (as of March 31, 2025) | (In thousands) | Company's Share of Unconsolidated JVs | | :--- | :--- | | ASSETS | | | Property, net | $2,045,869 | | Total assets | $1,559,724 | | LIABILITIES | | | Mortgage notes payable | $1,598,916 | | Total liabilities | $1,559,724 | Supplemental FFO Information This section provides supplemental details affecting Funds from Operations (FFO) on a pro rata basis, with lease termination income at $5.0 million in Q1 2025, a significant increase from $1.2 million in Q1 2024, and legal claims settlement income of $6.0 million Supplemental FFO Data (Pro Rata, in millions) | Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Lease termination income | $5.0 | $1.2 | | Bad debt expense | $1.6 | $4.0 | | Legal claims settlement income, net | $6.0 | $— | | Employee Severance Costs | $1.8 | $0.5 | Capital Expenditures In Q1 2025, total capital expenditures were $58.9 million on a pro rata basis, including $42.3 million for consolidated centers and $16.6 million for unconsolidated joint ventures, with the largest portion directed towards development, redevelopment, expansions, and renovations Capital Expenditures (Pro Rata, in millions) | Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Consolidated Centers | | | | Development, redevelopment, etc. | $34.0 | $18.2 | | Total Consolidated | $42.3 | $26.5 | | Unconsolidated JV Centers | | | | Development, redevelopment, etc. | $13.5 | $8.7 | | Total Unconsolidated | $16.6 | $16.0 | Asset Dispositions / Loan Give-Backs This section details asset sales and loan give-backs, including the sale of Wilton Mall for a gross price of $24.8 million in Q1 2025, and a pending loan give-back for Santa Monica Place with a debt balance of $300 million Summary of Asset Dispositions & Loan Give-Backs (in millions) | Property/Transaction | Date | Gross Sale Price (Company's Share) | Reduction of Debt (Company's Share) | | :--- | :--- | :--- | :--- | | Asset Dispositions | | | | | Wilton Mall, NY | 03-27-2025 | $24.8 | $— | | Loan Give-Backs | | | | | Santa Monica Place, CA | Pending | $300.0 | $300.0 | Operational Data This section provides key operational metrics for Macerich's portfolio, including tenant sales, occupancy rates, average base rent, cost of occupancy, geographic NOI distribution, and a detailed property listing Trailing Twelve Month Sales Per Square Foot For the trailing twelve months ending March 31, 2025, tenant sales per square foot for stores under 10,000 square feet remained stable at $837, unchanged from both the prior year period and the full year 2024 TTM Sales Per Square Foot (Total Centers) | Period Ended | Sales Per Square Foot | | :--- | :--- | | 3/31/2025 | $837 | | 3/31/2024 | $837 | | 12/31/2024 | $837 | Portfolio Occupancy As of March 31, 2025, total portfolio occupancy was 92.6%, a decrease from 94.1% at the end of 2024 and 93.4% at the end of Q1 2024, primarily attributed to the move-out of temporary and holiday tenants Portfolio Occupancy Rates (Total Centers) | Period Ended | Occupancy Rate | | :--- | :--- | | 3/31/2025 | 92.6% | | 3/31/2024 | 93.4% | | 12/31/2024 | 94.1% | | 12/31/2023 | 93.5% | Average Base Rent Per Square Foot The average base rent per square foot for all retail centers increased to $69.21 as of March 31, 2025, up from $65.40 in the prior year, indicating positive re-leasing spreads with executed leases averaging $69.99 compared to expiring leases at $63.13 Average Base Rent Per Square Foot (All Retail Centers) | Period Ended | Average Base Rent PSF | Leases Executed (TTM) | Leases Expiring (TTM) | | :--- | :--- | :--- | :--- | | 3/31/2025 | $69.21 | $69.99 | $63.13 | | 3/31/2024 | $65.40 | $62.95 | $54.88 | Cost of Occupancy For the twelve months ending March 31, 2025, the total cost of occupancy for tenants across all centers was 11.9%, composed of 8.0% for minimum rents, 0.7% for percentage rents, and 3.2% for expense recoveries Cost of Occupancy (All Centers, TTM ended 3/31/2025) | Component | Percentage | | :--- | :--- | | Minimum rents | 8.0% | | Percentage rents | 0.7% | | Expense recoveries | 3.2% | | Total | 11.9% | Percentage of Net Operating Income by State The company's portfolio NOI is geographically concentrated, with three states contributing nearly two-thirds of the total: California leads with 25.5%, followed by New York at 19.7%, and Arizona at 19.1% Portfolio Pro Rata Real Estate NOI by State (2024) | State | % of Portfolio NOI | | :--- | :--- | | California | 25.5% | | New York | 19.7% | | Arizona | 19.1% | | Pennsylvania & Virginia | 9.9% | | New Jersey & Connecticut | 8.7% | | Other | 17.1% | | Total | 100.0% | Property Listing As of March 31, 2025, Macerich's portfolio consisted of interests in 39 retail centers, two community/power shopping centers, and one redevelopment property, with a grand total of 42.1 million square feet of gross leasable area (GLA) - The portfolio includes 29 consolidated centers with a total GLA of 28.4 million sq ft and 10 unconsolidated joint venture retail centers with a total GLA of 10.8 million sq ft[98][100] - The company's grand total portfolio GLA is 42,116,000 square feet[102] Joint Venture List This section details the company's joint venture properties, showing both legal and economic ownership percentages as of March 31, 2025, highlighting that these interests may differ due to specific partnership agreement terms - The report lists all properties not wholly owned, specifying both legal and economic ownership percentages, which can differ due to provisions in joint venture agreements concerning cash flow distributions, preferred returns, and other factors[104][105] Balance Sheet Analysis This section analyzes Macerich's balance sheet, focusing on key debt metrics such as the Net Debt to Adjusted EBITDA ratio, a detailed debt summary by type and rate, and a schedule of outstanding debt by maturity date Net Debt to Adjusted EBITDA As of March 31, 2025, the company's Net Debt to Adjusted EBITDA ratio was calculated at 7.95x, based on a net debt of $6.13 billion and a trailing twelve-month adjusted EBITDA of $771.3 million Net Debt to Adjusted EBITDA Calculation (as of 3/31/2025) | (In thousands) | Amount | | :--- | :--- | | Total Pro Rata Share of Debt | $6,798,037 | | Less: Cash & certain Restricted Cash | $(370,585) | | Less: Debt for Santa Monica Place | $(299,121) | | Net Debt | $6,128,331 | | Adjusted EBITDA (TTM, as further modified) | $771,295 | | Net Debt to Adjusted EBITDA Ratio | 7.95x | Debt Summary As of March 31, 2025, Macerich's total pro rata share of debt was $6.8 billion, with the debt portfolio predominantly fixed-rate (94.9%), a weighted average interest rate of 5.46%, and a weighted average maturity of 3.80 years Debt Summary (Pro Rata Share, as of 3/31/2025) | (Dollars in thousands) | Fixed Rate | Floating Rate | Total | | :--- | :--- | :--- | :--- | | Total Pro Rata Share of Debt | $6,452,467 | $345,570 | $6,798,037 | | Weighted average interest rate | 5.40% | 6.60% | 5.46% | | Weighted average maturity (years) | | | 3.80 | Outstanding Debt by Maturity Date This schedule provides a detailed breakdown of the company's outstanding debt by maturity date for both consolidated and unconsolidated assets, with total debt at $6.8 billion and 94.92% being fixed-rate - Total debt for consolidated assets is approximately $5.2 billion, while the company's pro rata share of debt from unconsolidated assets is $1.6 billion[117] - The company's $650 million revolving line of credit had no outstanding balance as of March 31, 2025[117][119] Development and Redevelopment Pipeline Forecast As of March 31, 2025, the company has three major in-process development and redevelopment projects with a total pro rata cost estimated between $297 million and $330 million, with expected openings spanning from 2024 to 2029 and stabilized yields ranging from 6.75% to 18% In-Process Development Pipeline (as of 3/31/2025) | Property | Project Type | Pro Rata Total Cost (millions) | Expected Opening | Stabilized Yield | | :--- | :--- | :--- | :--- | :--- | | FlatIron Crossing | Mixed-use residential/retail | $125 - $135 | 2027/2029 | 6.75% - 7.75% | | Green Acres Mall | Retail redevelopment | $130 - $150 | 2026/2027 | 12.5% - 13.5% | | Scottsdale Fashion Square | Luxury retail wing | $42 - $45 | 2024/2025 | 16% - 18% | | TOTAL | | $297 - $330 | | | Corporate Information This section provides general corporate information, including Macerich's NYSE listing under the symbol MAC, historical stock price performance, consistent quarterly dividends, and contact information for corporate headquarters, transfer agent, and investor relations - The company's common stock is listed on the New York Stock Exchange under the symbol MAC[125] Quarterly Stock Price and Dividend History | Quarter Ended | High Price | Low Price | Dividend Paid | | :--- | :--- | :--- | :--- | | Dec 31, 2023 | $16.54 | $9.21 | $0.17 | | Mar 31, 2024 | $17.69 | $14.66 | $0.17 | | Dec 31, 2024 | $22.27 | $17.29 | $0.17 | | Mar 31, 2025 | $21.12 | $15.71 | $0.17 | - The company offers a Dividend Reinvestment Plan (Direct Investment Program) through Computershare Trust Company, N.A[126]