The Macerich Company (MAC) Q4 2024 earnings summary

Executive summary

• Progress continues on a five-year plan focused on simplifying the business, improving operational performance, and reducing leverage, with a focus on major U.S. markets and sustainability leadership.

• Consolidation of joint ventures, asset sales, and refinancing have advanced portfolio simplification and de-risking, including full ownership of three major centers after a $122M acquisition.

• Organizational restructuring and new technology tools have improved leasing efficiency and asset management.

• Raised $454M via public equity offering, used to repay $478M mortgage and reduce leverage.

• Disposed of The Oaks and Southridge, with Wilton Mall under contract and Atlas Park being marketed.

Financial highlights

• Q4 2024 FFO, excluding certain items, was $117M ($0.47/share), down from $128M ($0.57/share) in Q4 2023, mainly due to higher interest and severance expenses.

• Q4 2024 net loss attributable to the company was $211.2M ($0.89/share diluted), compared to net income of $62.2M ($0.29/share diluted) in Q4 2023.

• Same center NOI, excluding lease termination income, decreased 0.4% in Q4 2024 year-over-year; full-year same center NOI increased 0.2%.

• Sales per square foot at year-end was $837, up $3 sequentially; excluding outparcels, $915.

• Portfolio occupancy at year-end was 94.1%, up from 93.5% a year earlier.

Outlook and guidance

• Same store NOI and FFO are expected to remain roughly flat for the next couple of years, with a step-up projected in 2027-2028 as new leasing and SNO pipeline contributions ramp up.

• $66M SNO pipeline, with $27M expected to be realized in 2025 and the remainder through early 2028.

• Targeting 4M sq ft of annual leasing in 2025 and 2026, with a higher mix of new leases.

• Physical permanent occupancy targeted to rise from 84% to 89% by 2028.

• Announced quarterly cash dividend of $0.17/share, payable March 18, 2025.