The Macerich Company (MAC) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $252.0 million, a significant increase from a net loss of $15.0 million in Q2 2023, driven by a $334.3 million gain from the deconsolidation of Chandler Fashion Center.

• The Path Forward Plan was launched to simplify the business, improve operations, reduce leverage, and position for future acquisitions.

• Asset sales, including Biltmore Fashion Park and Country Club Plaza, and loan resolutions contributed to significant debt reduction.

• Leasing momentum remains strong, with high occupancy, positive releasing spreads, and a robust pipeline of new store openings.

• Acquired full ownership in Arrowhead Towne Center and South Plains Mall.

Financial highlights

• Q2 2024 total revenues were $215.5 million, up from $212.4 million in Q2 2023.

• FFO for Q2 2024 was $88.1 million ($0.39/share), down slightly from $89.1 million ($0.40/share) in Q2 2023.

• Same Center NOI increased 1.3%–1.4% year-over-year, or 2.2% excluding a bad debt reserve.

• Portfolio occupancy at quarter-end was 93.3%, up 0.7 percentage points year-over-year.

• Sales per square foot were $835 (flat year-over-year); excluding Eddie properties, $911.

Outlook and guidance

• Expect $1–$1.4 billion in debt reduction by year-end 2024, ahead of schedule.

• The Path Forward Plan targets Net Debt to Adjusted EBITDA leverage ratio in the low-to-mid 6x range over 3–4 years.

• NOI growth expected to accelerate in the second half of 2024 and into 2025 as pipeline openings commence.

• No formal guidance provided for 2025; 2024 guidance withdrawn due to Path Forward Plan and transaction timing uncertainty.

• Focus remains on debt reduction, leasing, and operational improvements.