The Macerich Company (MAC) Q3 2024 earnings summary

Executive summary

• Leadership transition with Dan Swanstrom appointed as CFO, succeeding Scott Kingsmore after 29 years.

• Portfolio includes 41 regional retail centers, 3 community/power centers, and 1 redevelopment property, totaling 45 million sq. ft. GLA, with a focus on high-density U.S. markets.

• Path Forward Plan targets $2 billion long-term debt reduction, deleveraging, and operational efficiency, with 60% of the target completed or in progress.

• Major acquisitions include full ownership of Arrowhead Towne Center, South Plains Mall, and Pacific Premier Retail Trust; significant dispositions such as Biltmore Fashion Park and Country Club Plaza.

• Recognized for sustainability leadership with #1 GRESB ranking for 10 years.

Financial highlights

• Q3 2024 net loss attributable to the company was $108.2 million ($0.50/share diluted), improved from $262.5 million loss ($1.22/share diluted) in Q3 2023.

• Q3 2024 FFO excluding certain items was $86.0 million ($0.38/share diluted), down from $100.6 million ($0.45/share diluted) in Q3 2023.

• Q3 2024 total revenues were $220.2 million, up from $218.2 million in Q3 2023; nine-month revenues were $644.5 million, nearly flat year-over-year.

• Same center NOI excluding lease termination income increased 1.9% year-over-year in Q3 2024.

• Portfolio tenant sales per sq. ft. for trailing 12 months ended Q3 2024 were $834, down 1.5% from $847 in Q3 2023.

Outlook and guidance

• No formal FFO guidance for next year; 2024 guidance withdrawn due to Path Forward Plan and transaction timing uncertainty.

• Focus remains on executing the Path Forward Plan, asset dispositions, selective development, and organic EBITDA growth.

• Dividend expected to remain at $0.17 per share as cash flow is reinvested into leasing and select developments.

• Targeting $1.80 FFO per share over a four-year horizon, with progress ahead of schedule.

• 2024 operating results expected to be negatively impacted by inflation, elevated interest rates, and tenant bankruptcies.