Macerich Q3 FFO & Revenues Miss Estimates, Occupancy Declines Y/Y

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]