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 sustainability leadership.

• Consolidation of joint ventures, equity offering, and refinancing activities have de-risked the business and improved the balance sheet.

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

• Leasing initiatives target higher new lease volumes and improved occupancy, with a focus on long-term value creation.

• Owns 43 million sq. ft. in 40 regional retail centers, focused in major U.S. markets.

Financial highlights

• Q4 2024 FFO, excluding certain items, was $117 million ($0.47/share), down from $128 million ($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 were $837, up $3 sequentially; traffic up nearly 2% year-over-year, returning to pre-COVID levels.

• Portfolio occupancy at 94.1% as of Dec 31, 2024, up from 93.5% a year earlier.

Outlook and guidance

• Same store NOI and FFO expected to remain roughly flat for the next couple of years, with significant growth projected in 2027 and 2028 as leasing initiatives mature.

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

• Physical permanent occupancy targeted to rise from 84% to 89% by 2028, with 50% of this increase already in the signed-not-opened (SNO) pipeline.

• $66 million in incremental rent expected from the SNO pipeline, with $27 million realized in 2025.

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