MAC — The Macerich Company

Summary of Macerich Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Funds From Operations (FFO): Adjusted FFO was $100 million, or $0.35 per diluted share.
• Net Operating Income (NOI): Go-forward portfolio NOI grew 3.8% year-over-year; year-to-date NOI increased 2.5%.
• Sales Performance: Portfolio sales reached a record high of $919 per square foot, with the go-forward portfolio at $954 per square foot.
• Occupancy Rates: Overall occupancy was 94%, with the go-forward portfolio at 95.5%, reflecting a 270 basis point increase year-over-year.
• Liquidity: Approximately $1.2 billion in liquidity, including $900 million available on a revolving credit line.

2. Strategic Updates and Business Highlights

• Path Forward 3.0 Plan: The company is ahead of schedule in executing its strategic plan, focusing on simplifying operations, improving performance, and reducing leverage.
• Leasing Momentum: 93% of 2026 lease expirations are committed, with significant progress in signing new leases (1.3 million square feet in Q2).
• New Tenants: Notable new tenants include Zara, Eataly, and Dick's House of Sport, contributing to increased traffic and sales.
• Acquisition Strategy: The company is actively evaluating a robust pipeline of acquisition opportunities, targeting yields of 9% to 11%, with a disciplined approach to maintain leverage targets.

3. Forward Guidance and Outlook

• NOI Growth Expectations: The company anticipates at least 3% NOI growth for 2026, with a meaningful acceleration expected in 2027 and 2028 as new tenants open.
• SNO Pipeline: The signed but not open (SNO) pipeline is projected to contribute approximately $140 million, with $30 million expected in 2026 and higher contributions in subsequent years.
• Leverage Reduction: The goal is to reduce net debt to adjusted EBITDA to around 6x by 2028.

4. Bad News, Challenges, or Points of Concern

• Debt Maturities: The company is actively addressing a $76 million loan in default and is exploring various options for managing remaining debt maturities.
• Competitive Pressures: Increased competition for acquisitions may impact future opportunities, although the company believes its operational strengths provide a competitive edge.
• Market Conditions: Rising interest rates may pose challenges for capital allocation, but current financing conditions remain favorable.

5. Notable Q&A Insights

• Leasing Impact from Anchor Openings: Management discussed the positive ripple effects of new anchor openings on inline tenant leasing and traffic, indicating a multi-phase impact over time.
• Acquisition Pipeline: The CEO emphasized a robust pipeline of both on-market and off-market opportunities, with a focus on quality assets in strong trade areas.
• Capital Allocation Strategy: Management is confident in deploying forward equity raised for acquisitions before the settlement deadline, citing a strong pipeline and favorable market conditions.
• Ancillary Income Opportunities: The company is actively pursuing ancillary income streams and partnerships to enhance revenue beyond traditional leasing.

Overall, Macerich's Q2 2026 results reflect strong operational performance, strategic execution, and a positive outlook for future growth, despite some challenges related to debt management and competitive pressures in the acquisition landscape.