Macerich's Q1 FFO & Revenues Beat Estimates, Occupancy Dips Y/Y

Core Viewpoint - The Macerich Company reported a solid performance in Q1 2025, with funds from operations (FFO) per share exceeding expectations, driven by strong leasing activity despite a decline in occupancy and rising expenses [1][2]. Financial Performance - FFO per share was 33 cents, surpassing the Zacks Consensus Estimate of 31 cents, and remained unchanged year over year [1]. - Quarterly revenues reached $249.2 million, an increase from $208.8 million in the same quarter last year, and exceeded the Zacks Consensus Estimate of $218.9 million [2]. - Same-center net operating income (NOI) rose 0.9% year over year to $191.3 million, slightly above the expected 0.8% increase [4]. Leasing Activity - The company signed leases for 2.6 million square feet in Q1, reflecting a 156% increase year over year, primarily due to strong renewal leasing volume of 2.3 million square feet [3]. - Base rent re-leasing spreads were 10.9% higher than expiring base rent, marking the 14th consecutive quarter of positive spreads [4]. Occupancy and Expenses - Portfolio occupancy decreased to 92.6% as of March 31, 2025, down from 93.4% a year earlier, attributed to temporary and holiday specialty tenants [5]. - Year-over-year increases in expenses included a 14.8% rise in shopping center and operating expenses to $85.2 million, an 8.3% increase in management companies' operating expenses to $20.8 million, and a 6.6% rise in leasing expenses to $11.2 million [5]. Portfolio Activity - The company completed the sale of Wilton Mall for $25 million and SouthPark for $11 million in April 2025 [6]. Balance Sheet - As of May 12, 2025, Macerich had approximately $995 million in liquidity, including $650 million available on its revolving line of credit [7]. Market Position - Macerich currently holds a Zacks Rank 3 (Hold) [8].