The Macerich Company (MAC) Q1 2025 earnings summary

Executive summary

• Significant progress on the Path Forward Plan, focusing on operational improvement, simplification, and deleveraging over the next 3-4 years.

• Leasing revenue rose 23% year-over-year to $235.6M, with strong momentum in new deals and renewals, and 2.6M sq. ft. of leases signed in Q1 2025, a 156% increase year-over-year.

• Net loss narrowed to $50.1M ($0.20/share) from $126.7M ($0.59/share) year-over-year, reflecting lower impairment and write-downs.

• FFO, excluding certain items, was $87.4M ($0.33/share) in Q1 2025, up from $74.6M ($0.33/share) in Q1 2024, driven by higher leasing revenues.

• Portfolio occupancy was 92.6% at March 31, 2025, down from 94.1% in Q4 2024 and 93.4% a year ago, mainly due to the exit of temporary holiday stores.

Financial highlights

• Total Q1 2025 revenues were $249.2M, up from $208.8M in Q1 2024.

• Same-center NOI, excluding lease termination income, increased 0.9% year-over-year; excluding Eddy assets, same-center NOI rose 2.4%.

• Portfolio sales per sq ft were $837 (flat sequentially); excluding Eddy properties, sales were $928, up $13 from Q4 2024.

• Adjusted EBITDA for Q1 2025 was $172.7M, up from $152.3M in Q1 2024.

• Dividend declared: $0.17/share, unchanged year-over-year.

Outlook and guidance

• Same-store NOI for the go-forward portfolio expected to grow 3-4% in 2026, with higher growth in 2027 and 2028.

• Physical permanent occupancy projected to approach 89% by 2028, with 26 anchor locations expected to generate over $600M in sales.

• Major uplift in FFO and EBITDA anticipated in 2027 and 2028 as new leases and developments come online.

• Path Forward Plan targets lower Net Debt to Adjusted EBITDA leverage ratio over 3-4 years via asset sales, organic EBITDA growth, and selective development.

• Inflation and elevated interest rates are expected to negatively impact costs and results in 2025.