Macerich(US:MAC)2025-11-05 13:41Property 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]