The Macerich Company (MAC) Bank of America 2024 Global Real Estate Conference summary

Leadership vision and strategic initiatives

• New CEO is focused on rebuilding corporate culture and implementing tactical and strategic initiatives for balance sheet and operational improvements.

• Emphasis on a four-year path forward plan, including asset sales, debt reduction, and NOI growth.

• Three asset sales targeted for the year; one completed, one under contract, third replaced by a focus on outparcel sales over the next 18–20 months.

• Expectation of $1–1.4 billion in debt reduction by year-end, with further deleveraging events planned.

• Five-year models and quarterly reviews introduced for all assets to track progress and inform capital allocation.

Operational improvements and technology adoption

• New lease procurement process launched using Yardi, replacing manual spreadsheets and emails, to improve efficiency and transparency.

• Goal to shorten rent commencement dates and streamline internal processes, allowing leasing teams to focus on tenant engagement.

• Centralized documentation of client meetings and leasing activity now accessible company-wide.

• Early adoption of new systems is strong, with anticipated improvements in deal flow and reduced internal friction.

Leasing momentum and portfolio performance

• Record leasing year achieved, with current year-to-date leasing approvals 20% ahead of last year.

• Leasing demand remains strong despite flat retail sales, with luxury demand steady even as sales slow.

• Positive rent spreads of 8–9% for the past two years, driven by high occupancy and reduced temporary tenant exposure.

• Core portfolio occupancy at 95%, with further improvements expected as portfolio is refined.

• Competition for space in top centers is driving pricing power for the first time since the pandemic.