The Macerich Company (MAC) Nareit REITweek: 2024 Investor Conference summary

Leadership and strategic direction

• New leadership team introduced, with a focus on a refreshed business plan and strategy.

• Mission statement centers on owning and operating thriving retail centers to drive shareholder returns.

• Corporate values and a sophisticated asset ranking system have been implemented to guide decision-making.

• The Path Forward strategy was unveiled, emphasizing portfolio optimization and transparency.

• Execution is diversified, with progress expected to be visible within a year.

Portfolio optimization and asset management

• Portfolio consists of 43 Class A retail properties, mainly on the coasts and in Phoenix.

• Plan to be net dispositive over the next few years, focusing on recycling capital and deleveraging.

• Asset ranking system evaluates centers on multiple criteria beyond sales per square foot.

• Non-core assets, especially underperforming "Eddies," will be monetized, handed back to lenders, or repurposed.

• Targeting a core group of 30 outstanding shopping centers post-optimization.

NOI growth and leasing performance

• NOI growth, asset sales, and handbacks are primary deleveraging drivers, with opportunistic equity issuance as a last resort.

• Leasing environment has been robust, with record volumes in recent years and a strong pipeline of signed but not yet open stores.

• Six key eastern assets are expected to deliver 25% NOI growth over four years, totaling $65 million.

• Scottsdale Fashion Square leads luxury leasing, with further expansion and high-end tenants planned.

• Same-center NOI growth of 2.5%-3% is considered achievable.