Why Is Macerich (MAC) Up 0.8% Since Last Earnings Report?

Core Viewpoint - Macerich's recent earnings report shows mixed results, with FFO per share exceeding estimates while revenues fell short, leading to concerns about future performance and potential pullbacks in stock value [2][3][10]. Financial Performance - FFO per share was reported at 44 cents, surpassing the Zacks Consensus Estimate of 40 cents, and reflecting an 18.9% increase from the previous year's 37 cents [2]. - Quarterly revenues reached $215.5 million, slightly higher than the $212.4 million from the same quarter last year, but missed the Zacks Consensus Estimate of $219 million [3]. - Same-center NOI, including lease termination income, increased by 1.38% year over year to $183 million [4]. Leasing Activity - During the quarter, Macerich signed leases totaling 0.75 million square feet, which represents a 47% year-over-year decrease in leased square footage [5]. - The decline in leasing activity is attributed to unusually high leasing activity in the second quarter of 2023, which included significant renewals with major retailers [5]. Occupancy and Rent Trends - As of June 30, 2024, portfolio occupancy was reported at 93.3%, a slight decrease of 10 basis points from the previous period [6]. - Base rent re-leasing spreads for the 12 months ended June 30, 2024, were 10.1% higher than the expiring base rent [6]. Balance Sheet and Liquidity - As of July 31, 2024, Macerich had approximately $612 million in liquidity, including $465 million available on its $650 million revolving line of credit [7]. - The company reported total net debt of $6.4 billion, with a net debt to adjusted EBITDAre ratio of 8.48X [7]. Market Sentiment and Outlook - Estimates for Macerich have trended downward over the past month, indicating a negative sentiment among analysts [8][10]. - The stock currently holds a Zacks Rank of 5 (Strong Sell), suggesting expectations of below-average returns in the coming months [10].