Macerich (MAC) Implements Path-Forward Plan, Bolsters Growth

Core Viewpoint - Macerich has announced a comprehensive Path-Forward plan aimed at simplifying its business, enhancing operational performance, and reducing leverage over the next three to four years [1][2]. Group 1: Path-Forward Plan Overview - The Path-Forward Plan consists of three main elements designed to foster long-term growth [2]. - The company aims to reduce leverage to a range of low-to-mid 6x and achieve a clean FFO/share launch point of approximately $1.80/share within the next three to four years [2]. Group 2: Simplifying Business Operations - The first element of the plan focuses on simplifying business operations by refreshing the portfolio ranking based on criteria beyond sales per square foot, enhancing portfolio quality through asset sales and give-backs [3]. Group 3: Improving Operational Performance - The second element aims to improve operational performance by replacing outdated anchor spaces and prioritizing anchors that align with future trends, funded through cash flow growth and careful capital allocation [4]. - The goal is to restore net operating income (NOI) growth among Eastern Seaboard assets to approximately $65 million, achieving this through existing plans [5]. Group 4: Enhancing Efficiency and Reducing Leverage - The third initiative focuses on reducing leverage to maintain a healthy balance sheet, targeting a reduction of approximately 1x through organic NOI growth and enhancing free cash flow generation to nearly $300 million annually [7]. - The asset disposition program is expected to reduce debt by nearly $2 billion and generate $450-$500 million in liquidity, with leverage reduction primarily coming from the sale of non-mall assets and negative equity assets [8][9].