MAC

A month has gone by since the last earnings report for Macerich (MAC). Shares have lost about 7.8% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Macerich due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Macerich Company (The) before we dive into how investors and analysts have reacted as of late. The Macerich Company reported second-quarter 2026 funds from operations as adjusted (FFOA) of 35 cents per share, up 2.9% year over year and beating the Zacks Consensus Estimate by 6.06%. Total revenues of $249.7 million were nearly unchanged from a year earlier and topped the consensus mark by 3.24%. The results benefited from stronger Go-Forward Portfolio centers’ NOI, rising occupancy and healthy tenant demand. Portfolio tenant sales reached $919 per square foot for the trailing 12 months. Go-Forward Portfolio centers NOI, excluding lease termination income, increased 3.8% year over year during the second quarter. Including lease termination income, NOI advanced 3.7%. Macerich signed leases covering approximately 1.3 million square feet on a comparable-center basis during the reported quarter. New-store leased square footage increased 1% from the prior-year period. New-store leases are expected to generate approximately $124 million of gross revenues at the company’s share, above the revenues generated in 2024 from prior uses of those same spaces. The estimate includes stores already open, signed-not-open leases and leases in documentation that commenced or are expected to start between 2024 and 2028. Management said its leasing “speedometer” reached 88%, exceeding the company’s midyear target of 85%. As of June 30, 2026, leased portfolio occupancy was 94%, up 200 basis points (bps) from 92% in the year-ago period. Occupancy also improved 60 bps sequentially from 93.4% at the end of the first quarter of 2026. Go-Forward Portfolio centers posted leased occupancy of 95.5%. The high level of committed space provides a foundation for additional rent commencement, as tenants complete construction and open stores. Tenant productivity also strengthened. Portfolio tenant sales per square foot for spaces below 10,000 square feet rose to $919 for the trailing 12 months from $849 in the comparable prior-year period. Go-Forward Portfolio centers recorded an even higher $954 in sales per square foot for spaces less than 10,000 square feet. During the second quarter, MAC completed the acquisition of Annapolis Mall, a Class A regional mall spanning approximately 1.4 million square feet in Annapolis, MD, for $260 million. It also acquired an adjacent 13.1-acre vacant Sears parcel for $12 million. The transaction was initially funded with cash on hand and $150 million of borrowings under the revolving credit facility. Management said the onboarding process has progressed smoothly, with Uniqlo now open and Dick’s House of Sport scheduled to open. Macerich completed an underwritten public offering of 22.08 million common shares at $21 per share, generating net proceeds of $448.2 million. The proceeds were used to repay borrowings under the revolving credit facilty, fund investments at Annapolis Mall and support general corporate purposes. The company also entered into forward sale agreements covering 16.1 million shares at a public offering price of $23.90. As of the filing date, Macerich had approximately $1.2 billion of liquidity, including $900 million of available capacity under its revolving credit facility. In the past month, investors have witnessed a upward trend in estimates revision. At this time, Macerich has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Macerich has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Macerich Company (The) (MAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 5:00 p.m. ET VP of Finance and Investor Relations - Alexandra Johnstone President and Chief Executive Officer - Jackson Hsieh Senior Executive Vice President and Chief Financial Officer - Daniel Swanstrom Senior Executive Vice President of Leasing - Doug Healey Senior Vice President of Portfolio Management - Brad Miller Operator: Good afternoon, and welcome to the Q2 2026 Macerich Earnings Conference Call. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the conference call over to Alexandra Johnstone, VP of Finance and Investor Relations. Please go ahead. Alexandra Johnstone: Thank you for joining us on the second quarter 2026 earnings call. During this call, we will make certain statements that may be deemed forward-looking within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995, including statements regarding projections, plans or future expectations. Actual results may differ materially due to a variety of risks and uncertainties set forth in today's earnings results and supplemental and our SEC filings. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the supplemental filed on Form 8-K with the SEC, which is posted in the Investors section of the company's website at macerich.com. Joining us today are Jack Hsieh, President and Chief Executive Officer; Dan Swanstrom, Senior Executive Vice President and Chief Financial Officer; and Doug Healey, Senior Executive Vice President of Leasing. And with us in the room is Brad Miller, Senior Vice President of Portfolio Management. With that, I would like to turn the call over to Jack. Jackson Hsieh: Thanks, A.J., and good afternoon, everyone. When we published our Path Forward 3.0 plan at NAREIT in June, we highlighted that we were meaningfully ahead of schedule on the execution of the plan, which is delivering tangible results and positioning us for accretive growth above our original expectations. We're demonstrating strong execution across 3 pillars: simplify the business, improve operational performance and reduce leverage. We've made significant progress in leasing dispositions and balance sheet improvement while also positioning us for sustainable NOI growth and new external growth opportunities. Today, I'll briefly touch on our second quarter results, then turn to where we stand on our Path Forward plan and how we're thinking about external growth. I'm pleased with our second quarter results. FFO as adjusted was $0.35 per diluted share and go-forward portfolio NOI grew 3.8%. We expect this growth to continue to ramp in 2027 and 2028 as our signed not open tenants open and begin paying rent. Our SNO pipeline reached $124 million. Portfolio sales reached a new company high of $919 per square foot and $954 across the go-forward portfolio with leased occupancy of 94% and 95.5% in the go-forward portfolio. We remain ahead of schedule on our important strategic leasing initiatives. Our leasing speedometer, which tracks new deal completion in the 5-year plan is at 88%, ahead of our 85% midyear target. Only a small number of leases remain to complete the plan and our attention has shifted to conversion. That means getting tenants permitted, built out, open and paying rent. Occupancy is tracking with what we projected in our Path Forward plan and the strong demand for our space has our teams already leasing into 2029 and 2030 as little space remains available in our best centers. We recently introduced the store openings completion percentage, an operational metric intended to provide transparency on our progress to move tenants from LOI to store opening. As of NAREIT, we were at 50%. And today, we are at 57%. We expect to be ahead of our 60% year-end target at the end of this year. We talked about how our playbook is working within the portfolio as the elevate and transformation strategy moves through the later stages and occupancy tightens, traffic increases and NOI improves. If we look at our best-performing centers year-to-date in terms of NOI growth, these centers have experienced the strongest traffic improvement as compared to our portfolio average. Our next good case study is the West wing of Tysons Corner. That wing has historically been held back by weaker traffic, and we're changing that. We're adding, among other nationally recognized tenants, a 2-level Eataly in the former American Girl space Din Tai Fung in the former Pottery Barn, and cider in the Express space. These tenants are all proven traffic generators. With that wing now effectively full, that added traffic and dwell time should translate directly into pricing power. Year-to-date through the first 6 months, traffic is up 10% at Tysons as we have continued to upgrade the tenant base over the past 3 years. With these new tenants coming in that we've signed and others we expect to announce soon, that traffic has even more room to improve. The scarcity of space in our best centers is by design in our path forward plan. No one is building new regional malls and roughly 90% of our go-forward NOI comes from Class A assets and the best retailers of the world -- in the world are concentrating their growth in high-quality centers like ours. Retailer demand is as deep as we've seen it and is influencing how we are evaluating potential acquisition opportunities. Brands are pursuing quality over quantity and competing for limited space in our centers. The Gen Z consumer over-indexes on visiting physical stores and spending on goods, food and experiences and is on track to become the largest spending demographic in the country. Those tailwinds are only getting stronger. Let me turn to acquisitions, which is an increasingly important growth engine for us. Our opportunity set has grown and the pipeline is robust. We are evaluating a broad set of on- and off-market opportunities, the most at any point since we began the Path Forward plan. We remain highly disciplined, and our criteria has not changed. Our criteria for acquisitions includes assets that are: one, accretive to our Path Forward plan; two, located in strong trade areas with clear catalysts to elevate and transform using our leasing, development and operational platform to add value; and three, finance in a way that keeps us within our leverage targets under the plan. We will remain patient and selective, but we intend to use this window because the conditions for acquiring and transforming high-quality malls are as favorable as we've seen. At Annapolis, the onboarding has gone smoothly and the momentum is clear. UNIQLO is now open. Dick's House of Sport opens on August 14, and the Elevate and Transform effort is well underway. It is a market-leading asset in one of the most affluent trade areas on the East Coast and its proximity to Tysons quarter extends our platform across the Washington, D.C. region. At Crabtree, our leasing momentum has been strong. We recently announced Level 99 and Fogo de Chao, and Dick's House of Sport is opening in September. In addition, Lululemon has recently signed a lease to extend and expand their location. Since the acquisition, we have commitments on 45 new and expansion leases and 35 renewal leases. Both assets reinforce our conviction that our leasing capabilities and relationships with the best retailers in the world are what turned these acquisitions into value, and it's a big reason sellers and retailers want to work with us. We are increasingly in a position of strength with the balance sheet. Following our most recent offering completed on a forward settlement basis, we have approximately $372 million from this offering available to fund future acquisitions. That financial flexibility, combined with our platform lets us act with speed and certainty that sellers and retailers value. That's a real competitive advantage in this market. In summary, we are ahead of schedule. The plan is substantially derisked and the structural tailwinds behind our business from the limited supply to retailer demand to the emergence of the Gen Z consumer are strengthening. As I've noted before, when we complete this plan, you should expect to see a company with higher permanent occupancy, embedded rent growth, a stronger balance sheet and a portfolio of irreplaceable assets in the country's most desirable markets. With that, I'll turn the call over to Doug. Doug Healey: Thanks, Jack. Like the first quarter, the second quarter reflected continued leasing momentum across our portfolio. Portfolio sales at the end of the second quarter were $919 per square foot, once again representing a new high watermark for the company, and that's our full portfolio. By contrast, when you look at our go-forward portfolio, the centers where we're actively investing, sales were $954 per square foot, and this continues to underscore the success of our elevation and transformation strategy. Occupancy at the end of the second quarter was 94%, up 60 basis points from the first quarter. The go-forward portfolio occupancy at the end of the second quarter was 95.5%, and that's up 60 basis points sequentially and up 270 basis points year-over-year, continuing to reflect strong demand for space in our best centers. As we get into actual leasing for the quarter, let's start with our lease expirations. We have commitments on approximately 93% of our 2026 expiring square footage that is expected to renew and remain open with another 6% in the letter of intent stage. As I mentioned last quarter, we're effectively done with 2026 and now actively focused on 2027 and 2028. In fact, as we look specifically at our 2027 expirations, we're just about 50% committed with another 40% in the letter of intent stage. And compared to this time last year, we're ahead of pace and very pleased with the progress we've made. Turning to tenant openings. In the second quarter, we opened almost 350,000 square feet of new stores. Most notably, in the second quarter, we opened a new and expanded Zara store at Tysons Corner Center. At 45,000 square feet, this is the first true flagship Zara in our portfolio, and its opening was extremely strong. In fact, in its opening weekend, Zara Tysons was ranked #1 in sales in the United States and #5 in the world. Since then, it remains #1 in this region and in the top 10 in the country. And we look forward to opening our second Zara flagship at Los Cerritos in the fourth quarter of 2027. In terms of leases signed in the second quarter, we signed 1.3 million square feet of new and renewal leases, of which 645,000 square feet were new deals, which is right on par with what we leased in the second quarter of 2025. And let's remember, last year was a record leasing year for us. Examples of leases signed in the second quarter span 5 categories: legacy brands like Aerie, OFFLINE by Aerie and Old Navy. Food and beverage concepts like Eataly, Din Tai Fung, and Wood Ranch. Iternational names like Zara and Sephora. Experiential concepts like Level 99 and Golf Galaxy and emerging brands like Alo Yoga, On Running, Viore, Rowan, Reformation, and Cider. So my point listing examples of brands we signed in the second quarter, which is really just a subset of all the leasing we've done in our 5-year plan is this. Of the 1,000 new deals in our 5-year plan, we only have 170 left to achieve our goal, 2/3 of which are in the letter of intent stage. And given the continued healthy retail environment and unprecedented demand for space in our centers, we believe this is very achievable. So how did we get here? We got here by record leasing activity in the last 2.5 years, which we've discussed quarter after quarter. But it's very important to note, and I want to make this clear, we achieved the success not by just leasing space to fill space, but rather we got here by leasing space in a very thoughtful and strategic manner, targeting many of the best and most sought-after retailers in the world. And when these 1,000 new tenants open between now and the end of 2028, the Macerich portfolio of shopping centers will have been completely reimagined and ultimately transformed and elevated like never before. And when we look out to 2029 and beyond, the narrative of our leasing story will change. With the vast majority of our 1,000-deal program complete, we shift from record leasing volumes to curating and optimizing a portfolio that is already elevated. We expect our go-forward centers to be operating at higher occupancy and higher sales productivity than any point in our history, giving us continued pricing power and the ability to drive sustainable same-center NOI growth for years to come. And with that, I'll turn the call over to Dan to go through our second quarter financial results. Daniel Swanstrom: Thanks, Doug, and good afternoon. I'll start with a review of the second quarter financial results. FFO as adjusted was approximately $100 million or $0.35 per share during the second quarter of 2026. Go-forward portfolio centers NOI, excluding lease termination income, increased 3.8% in the second quarter of 2026 compared to the second quarter of 2025. With a strong second quarter of NOI growth, go-forward portfolio centers NOI has now increased 2.5% for the 6-month period ended June 30, 2026, as compared to the same period in 2025. We continue to expect go-forward portfolio centers NOI growth for the full year 2026 to increase at least 3% over 2025 and to accelerate meaningfully in 2027 and 2028 as the SNO pipeline tenants continue to open and begin paying rent. We have a high level of confidence in achieving the total SNO opportunity of approximately $140 million. The estimated annual contribution is $30 million in 2026, back-end weighted, $40 million to $45 million in 2027 and $45 million to $50 million in 2028. This represents a clear visible path to drive incremental growth. Turning to the balance sheet. We are making strong progress on the balance sheet initiatives contained in our Path Forward plan. 2026 continues to be an incredibly productive year by the team in relation to our various financing activities. With respect to our equity capital markets activity, in May, we priced an upsized public offering of common stock at $21 per share, resulting in net proceeds of approximately $450 million. The use of proceeds were primarily to fund the acquisition of Annapolis Mall and related strategic leasing capital investments at Annapolis. In June, we priced the public offering of common stock at $23.90 per share through forward sale agreements. The company did not initially receive any proceeds from the sale of shares of its common stock by the forward purchaser banks. We intend to use the future net proceeds to fund future acquisition opportunities. Year-to-date in 2026, we have closed on a 4-year loan extension through November 29 at our South Plains property, completed an amended and restated $900 million revolving credit facility, repaid the loan outstanding on Vintage Fair Mall and closed on a new $115 million 5-year mortgage loan at Deptford Mall. With respect to our 29th Street property, the $76 million loan at the company's pro rata share remains in default after its February maturity date. As we are currently in discussions with the lender on the terms of this loan, we do not have any additional commentary at this time. We're proactively addressing our remaining 2026 debt maturities through a combination of potential asset sales, refinancings, loan modifications or if necessary, property givebacks. We currently have approximately $1.2 billion in liquidity, including $900 million of capacity on our revolving line of credit. This excludes the net value of unsettled forward equity proceeds of approximately $372 million. From a leverage perspective, net debt to adjusted EBITDA at the end of the second quarter was 7.3x, which is almost a half turn lower than last quarter and over a 1.5 turn lower than at the outset of the Path Forward plan. Inclusive of the unsettled forward equity proceeds, net debt to adjusted EBITDA is now below 7x. And importantly, we've outlined our strategy to further reduce leverage to the 6x, plus or minus range. We are executing on the dispositions we've outlined in our Path Forward plan. During the second quarter, we closed on the sale of our joint venture interest in West Acres for $1 million plus the assumption of $13 million of debt at our share. To date, we have completed approximately $1.3 billion in total dispositions, representing about 2/3 of our initial disposition target and the disclosures we provided in our supplement includes a summary of these asset dispositions. These sales transactions are consistent with our stated disposition plan to improve the balance sheet and refine our portfolio. We continue to expect to sell or give back $300 million to $400 million of additional assets, outparcels and land by the end of this year. This would increase total dispositions to approximately $1.7 billion. Year-to-date, we have closed on about $30 million in total dispositions, and we now have approximately $100 million under contract to sell. We'll provide further updates on our disposition activities as we progress through the year. Overall, we are making great progress on our Path Forward plan objectives to reduce leverage, refine the portfolio and strengthen the balance sheet. With that, we'll turn the call over to the operator. Operator: [Operator Instructions] And our first question today comes from Andrew Reale from Bank of America. Andrew Reale: Now that all 30 anchor replacements are committed and starting to roll on, maybe could you just talk about in more detail sort of the second order effects on leasing and rent spreads at the rest of the center once that anchor opens? How might that compound over both the next few years and then even beyond 2028 when the renewal opportunity really accelerates? Jackson Hsieh: I'll take that, Andrew. So you're asking sort of the -- if I get the question right, of our 30 anchors, sort of a net follow-on effect. So there's probably like 3 stages that it goes through. The first is when we sign an anchor deal and can announce it. It's obviously not open yet. That already enables us to begin the re-leasing effort with getting strategic tenants that we can build upon on the inline. Then there's the second phase, which is when the store opens. That obviously brings more energy traffic into those wings. And then you've got what I'd call the after effect 2 years later when now you've got that anchor open, operating and multiple tenants now also open and operating in that wing. If I were to use an example of the Scheels store at Chandler, that store in itself right now is drawing 3.1 visitors to its store according to Pacer in the last 12 months. It's the #1 Scheels in the system. That's enabled us to bring Vuori, Alo, Din Tai Fun now is coming on to the outside. Seafood City just opened, for instance, at Chandler. They were -- that's a pretty exciting brand that just opened last week. So you're seeing like -- and Scheels is very unique, right? They draw tremendous volumes. But if you look at another important anchor tenant that we've talked a lot about, Dick's House of Sport, we have about 9 months operating history at Freehold with them. And according to our math, they're drawing over 800,000 customers into the center from their store. So we expect them to achieve a $1 million incremental customer run rate. That's already not only helped tenants within that wing, but enabling the teams to continue to follow on more leasing. So it's sort of a -- it's not a simple answer, but what I'd say is we get the first bite when we're able to announce the anchor. We get the second bite when they open. And by then, we've got other tenants on the in-line opening. And then when you look at it 2 years later, you get the full effect. Operator: Our next question comes from Vince Tibone from Green Street Advisors. Vince Tibone: I understand acquisitions are lumpy and hard to predict. But how should we best think about overall acquisition volumes going forward? Based on your comments, it seems like there's a lot of interesting opportunities you're underwriting. So just trying to get a sense of if there's any thresholds in terms of risk mitigation or human capital or number of assets you recently acquired that are in some state of transition that you want to kind of limit in terms of the overall portfolio. Ultimately, yes, just trying to see how many of these we should reasonably expect over the next 12, 18 months. Jackson Hsieh: Yes. Okay. Vince, I'll try to take that. So you're kind of trying to pin me down on size, shape and volume. And man, if I was in my triple net, I would be skewing out quarter-by-quarter what we could do. And I was listening to some of my peers in the shopping center business talk about volumes. I guess the way I'll answer it is I believe that this is a really unique opportunity to buy enclosed regional shopping centers. I think that -- we have a tremendous advantage having an integrated operating platform. We've got great national tenant relationships, and we got the money. And we don't need mortgage debt, and we've got speed and certainty. And to me, that should give you confidence like that enables us to win Crabtree in a fully marketed deal. That enables us to secure Annapolis, which was off market because the seller wanted certainty and want speed. What I can tell you today is since I've been at this company, we have a robust and broad on and off-market set of opportunities with stabilized yields in the 9% to 11% area. I'm not going to give you a number, but the way I would think about the net effect to us -- and what makes it so exciting for me sitting at where we are right now, we're at $1.90 and 6x debt-to-EBITDA on the core plan. If we invest that $372 million of forward equity that we have, 100% equity on an acquisition in the 9% to 11% stabilized yield area, that's going to generate about $0.02 to $0.04 incremental FFO accretion and lower our leverage 25 to low 30 bps debt to EBITDA. So our debt to EBITDA would be down in the high 5% range if we're able to just deploy that 372. So, we're going to be picky. We're going to do the right thing. And I probably got a lot of sellers listening to this call, too. So I don't want to make it harder on myself. But I think it's a tremendously unique opportunity for us as a company today. Operator: Our next question comes from Craig Mailman from Citi. Craig Mailman: Maybe not to pile on or try to pin down even more, but on acquisitions. I mean you guys came back pretty quickly to the equity market and raised a decent chunk of forward capacity here. I mean, I guess from our standpoint, what's the risk that, that capital doesn't get deployed by June of next year when you guys would have to settle it? I mean, is that even a possibility given what you have in the pipeline today? Jackson Hsieh: It's not possible. I'm just going to tell you, Craig, it's just not possible. The reason why we decided to pursue the forward equity, we have so many good things happening in terms of leasing and I'll spend later in this call, talk about what we're seeing on sort of late-stage and mid-stage transformation and the impact it's having. But literally like doing a forward equity is a no-brainer. We've got a very, very large pipeline. We know that the net effect will take our debt to EBITDA down in the high 5s, like 5.75%, right in that range, and it's going to be accretive. So yes, we're going to use that money. I'm telling you, way before June of next year. So, I think it was just kind of prudent given the biggest thing I was concerned about just there's a lot of macro things happening in the world right now. And right now, I'm very comfortable settling that forward equity somewhere between a 9% and 11% stabilized yield, and I kind of know the net effect of it, which will be positive for the business. So that was kind of the logic of why we did it. It wasn't like we had a deal ready to print. We just said this is too good. We need to protect this, our plan. Operator: Our next question comes from Todd Thomas from KeyBanc Capital Markets. Todd Thomas: I'll switch over to operations for this. Dan, you reiterated the full year go-forward NOI growth of at least 3% and then reiterated also that you expect a meaningful acceleration in '27 and '28. Just in terms of the cadence from here, following 3.8% this quarter, is there anything in the second half of the year that should create a headwind to go-forward NOI growth? Or do you see this period representing the inflection in growth with growth continuing to track higher from here on commencements? Daniel Swanstrom: Yes. Todd, this is Dan. Thanks for the question. Yes, we continue to expect at least 3% for the year, which based on -- obviously, second quarter was very strong at 3.8%. That brings us in at 2.5% year-to-date. So that does imply 3.5% NOI growth at least for the second half of the year. We think maybe the fourth quarter based on the SNO contribution might be a little stronger than the third quarter, but you kind of think about the second half of the year as 3.5% plus for '26. And then as you noted, there's a meaningful ramp from there, we did put out our Path Forward version 3.0 at NAREIT. The 3-year NOI CAGR midpoint was 6.5% for years '26 through '28. So if you just for simple math, assume the 3% in '26, that implies north of 8% NOI growth in '27 and '28. And -- we've given you the SNO contribution by year in my prepared remarks. And again, '28 is slightly higher than '27. So you can kind of think of '28 as a little bit higher than '27. But over those 2 years, 8.25% sort of midpoint growth based on the 6.5% over the next 3 years. Jackson Hsieh: And Todd, I'll pile on to Dan's comment on operations. So you've heard us in my comments, talk about later-stage transformation, mid-stage transformation, early-stage transformation. We're-leasing, as you know, 1,000 new units, it's about 25% of our portfolio. So what does the late-stage transformation look like? So if I took Kierland Commons, Broadway Plaza, Scottsdale Fashion Square, Tysons Corner, those I would consider in the late-stage transformation of what's going on with those properties. If you look at the Placer traffic June year-to-date, those 4 centers are generating low teens traffic increases over last year, same period versus if you look at our go-forward portfolio, it's flat. If you looked at year-to-date 26 NOI on those 4 properties versus '26, it would be close to 9%, high single digit versus 2.5% for our go-forward year-to-date '26 numbers. If you looked at sales June year-to-date for those 4 properties, it would be low double-digit increases versus last year compared to 3.7% for our go-forward average. So the point I'm trying to make is we're seeing like tremendous lift when we get this right. If you looked at 2 examples of what I call mid-stage transformation, that's Los Cerritos and Chandler. Those centers are seeing kind of mid-single-digit placement numbers, so it's in excess of our go-forward average. It's mid-single-digit NOI growth year-to-date compared to 2.5% for the go-forward average. And sales are also mid-single digit versus the 3.7%. Each of those centers have very unique things about them, like Chandler, we just talked about, Sifu City just opened up. Zara is under construction. Din Tai Fung is under construction. Sephora, Alo, Wagyu House, all under construction. Los Cerritos, Dick's House of Sport under construction. Flagship Zara under construction, Coach Cider basically under construction and other tenants that we haven't announced yet. So, you're going to see like this follow-on effect. I think the question came in earlier from someone about the 30 anchors. And if you look at the other -- there's 15 other centers that are either in the early to mid-stage transformation that are undergoing -- that are going to start to contribute and follow on as we get into '28, and you'll see the effects rolling into '29, '30 that Doug talked about incremental curing in the portfolio. So, there's a lot of power that comes from doing this. If you do it in the right centers with the right trade areas with the right mix of anchors and inline coming on. And the go-forward averages don't tell the whole story. That's the point. And so we'll begin to start to talk about this in the future quarters as we get more data. But very exciting from my seat from what I'm seeing because basically, it's working. And we keep talking about same-center NOI going up. We're seeing it real time in those later-stage assets and now the mid starting to see it. So, there'll be more to come, but gives us a lot of confidence that this is working. Operator: Our next question comes from Floris Van Dijkum from Ladenburg. Floris Gerbrand Van Dijkum: I don't want to belabor the capital markets questions and the investments. Hopefully, people have gotten a pretty good sense of the growth ahead. My question is, I guess, what percentage of your total NOI today is in your go-forward portfolio? And then maybe also a little bit of update on the percentage of your SNO pipeline that's from redevelopment versus your core portfolio, please? Daniel Swanstrom: Yes. Floris, I can take the first part of your question on the NOI contribution and maybe Brad can chime in on the second part. In terms of the NOI, and I will refer you to our supplement, Page 7, just to draw it out. We had NOI for all centers for the quarter of $211 million and the go-forward centers represent $185 million of that $211 million. And then for the 6 months ended June 30, the NOI go-forward centers are about $360 million relative to $400 million for the total portfolio. Brad Miller: This is Brad. I'll take the SNO contribution. So of the $124 million of SNO we have out of the $140 million total opportunity, the $124 million roughly breaks down $20 million to our development pipeline of Scottsdale, Green Acres and Flatiron, $20 million to the -- what we call the redevelopments, which is all the anchors that we're opening up and then the remainder of the $84 million is the rest of the leasing of the portfolio. Operator: Our next question comes from Haendel St. Juste from Mizuho. Haendel St. Juste: I wanted to go back to the redevelopment capital spend, the curating, optimizing the portfolio. With your leasing goals now nearly complete, it seems like there's going to be a bit more of a shift towards some of that curating, optimizing the portfolio. You've done -- you have a number of anchor commitments. So I guess I'm curious if you could share some color on maybe the scope of the opportunity for redevelopment in front of you within the portfolio? How can we think about that on maybe an intermediate-term basis in terms of redevelopment spend and yield that you're targeting? Jackson Hsieh: Yes. Thanks, Haendel. So in terms of your question on redevelopment priorities, yes, the team, we're actually going through that exercise right now as a team. because there's been so much focus on nailing down the 28 plan with the 1,000 units. There's things that we haven't touched that are going to really contribute. I'll give you one example. At Broadway Plaza, we have the former Neiman Marcus anchor box that was going to originally be a resto. That's not going to happen anymore. And thankfully, we actually have the opportunity to actually convert to more in-line opportunity. There is so much demand for tenant space at Broadway Plaza. We just -- we don't have the space. So that's going to actually end up being more accretive than have we followed through on the restoration hardware opportunity. At Scottsdale Fashion Square, we have probably one of the most valuable pieces of commercial real estate on the North parcel adjacent to the Apple Store. We haven't -- we're undergoing plans to evaluate that. Tysons has tremendous opportunity up by the Silver Diner, across from the West Wing that we talked about. So -- and there's others like that within the portfolio that we are really beginning to put pen to paper on how to do it, how much does it pro forma out? Does it add value? Does it add traffic? Is it going to enhance our position and continue to put that moat around our assets? Operator: Our next question comes from Greg McGinniss from Scotiabank. Greg McGinniss: For the acquisitions, you're looking at targeted yields in the 9% to 11% range. And I recognize that this math is not 1:1, but how should we think about the quality of those assets compared to the in-place portfolio considering the mid- to high 6% implied cap rate on the stock? Jackson Hsieh: Yes. So Greg, you're kind of asking like quality of the 9% to 11% versus kind of our implied cap rate. I got that right. I would say the things that we are evaluating are really just going back, obviously, assets in very strong trade areas where we believe that if we can come up with a catalyst plan, whether it's the leasing, anchor redemise, can really take more share from that trade area. That's, first and foremost, starts with that. Obviously, it's got to be accretive. It's got to be the right financing within our leverage targets. At the end of the day, we have an A portfolio and the things that we're looking at, we believe can either -- they're either are already or if they're not, we believe that employing our strategy can get it there. So I'd say the quality of things that we are looking at are very solid, if that helps. Operator: Our next question comes from Michael Griffin from Evercore ISI. Michael Griffin: Jack, you mentioned the deals that you've closed over the past, call it, 1.5 years, Annapolis and Crabtree, one was marketed and one was off-market. I'm just curious if you're seeing any increased competition for prospective transactions. I got to imagine it's a relatively limited buyer pool. But just given the operational intensity and the nature of how to run these malls, have you seen more capital interested chasing these deals? And just curious, any thoughts on that? Jackson Hsieh: I mean from my standpoint, you're talking about sort of the nature of the competition that we're competing with. I think like compared to like the Crabtree opportunity, that was pretty robust bidding. And I think the players that we were able to went over, they're still there. They're still looking at the same things that we're looking at. I think our cost of capital is tremendously different than when we were evaluating Crabtree. And I think I would agree with your point that it's -- these are not commodity assets. So anybody that wants to invest in this needs to be partnered with a really good operator. It's all leasing. It all takes time. It all takes money. But if you get it right, you get a Scottsdale Fashion Square that does -- had an 18% sales increase year-to-date versus last year. And it's phenomenal kind of stuff that happens if you can get this right. I would say when we were successful with Crabtree and Annapolis, I mean, I was doing that part time with one of the asset managers. I have now -- I got an EVP of acquisitions. He's got a team, and he is -- we've got an unbelievable list of things that we're evaluating right now compared to last year and the year before. So yes, I mean, I feel like I'm sure it's going to be competitive. I'm not thinking we can't -- people are going to try to beat us and try to find things that make sense. But I also think that one advantage we have if you were going to try to bring a Dick's House of Sport on your campus, we have probably the most of any company right now that I can think of in terms of commitments with them. We have a very unique relationship with them where we can get really good insight as to does this make sense? Will it make sense? If we do it, will you be there? If you were there, we can do some other things with it. And I think that it creates more predictability as we're underwriting these different opportunities versus, say, someone else that maybe always done one of them or maybe 2 or trying to get one done. I think it's very different. I'd also say one advantage we have is kind of like working with municipalities. The project we're doing out of Flatiron in Broomfield in partnership with the city of Broomfield, that project is going to be something that our company is going to be super proud of when we get done with that. And I would say that there are assets that are like that, that can be transformed, and we'll need to work with the local government in partnership to get those things over the goal line potentially. So that's -- so deals like Flatiron would not have worked were not in partnership with the city of Broomfield. And that's going to be a project that's not only financially super successful for us and super additive from a quality standpoint, but it's something that their community and their tax authorities are going to be very proud of. Operator: And our next question comes from Tayo Okusanya from Deutsche Bank. Omotayo Okusanya: Just curious, with the recent increase in the 10-year and kind of all the concern about rates being higher for longer, does that kind of change any of the calculus for you guys at this point in regards to capital allocation? Or is that just kind of less of an issue now kind of given everything you've done with all the asset sales and the deleveraging? Jackson Hsieh: Dan, do you want to take Tayo's question about capital allocation and how we're thinking about it? Daniel Swanstrom: Yes. I would say, Tayo, it's not having any immediate effect. And also in terms of as we think about the refinancings within the plan, we did assume kind of a 6% all-in cost of financing on refinancing. So even with the rise in the 5-year and the 10-year, spreads still are very constructive and really at all-time lows. So I think that's not currently impacting where we expect to be able to refinance the rest of the portfolio. In terms of broader capital allocation, not yet. It hasn't had any impact on us. I don't know, Jack, do you want to add anything to that? Jackson Hsieh: No. I mean I think you said it great. And then obviously, with having that forward in place, it just completely protects our ability to get the balance sheet under 6x debt to EBITDA. I mean just straight out, I'll tell you that, in 2028. Operator: Our next question comes from Ron Kamdem from Morgan Stanley. Ronald Kamdem: Just I guess going back to some of the conversations in terms of the pipeline for sort of acquisitions. Obviously, you guys have done 2 successfully. Is there a way to sort of categorize what that potential pipeline could look like over the next 3 to 5 years? Other opportunities like this coming along, whether it's reverse inquiry? I just like to sort of categorize how often these deals can come about. Jackson Hsieh: All right, Ron. I mean you trying to pin me down. But if I tell you, it's robust. It's the most stuff we have in our pipeline right now since I started. I'll give you one piece. It's about -- half of our pipeline is on market, half is off market right now. So you can call around and ask the brokers what they're selling or what they think is selling and half of our portfolio is directly with the seller. That I will tell you. Operator: And our next question comes from Mike Mueller from JPMorgan. Michael Mueller: I know you're seeing more competition for acquisitions, but you're still talking about cap rates that are fairly high in the 9% to 11% range. Are you seeing any signs of cap rate compression? Are you seeing it come anytime soon? Or do you think this window is going to be open for a while? Jackson Hsieh: Okay, Mike. Well, first, I'll just say, personally, I hope it doesn't compress. I want to buy more. But I think to me, I'd have to focus on debt yields. At the end of the day, debt yields are certainly compressing on the best A++ properties. You've seen that. But I think it's going to still be a while before debt yields really start to have an impact, in my opinion, on cap rates, broadly speaking, in the mall business. And any mall that requires any kind of elevate and transform effort to it, there's going to be a limitation on the leverage advancement on the acquisition. So whoever wants to buy it is going to put up 40% equity maybe, 35%, 40%. You have to write more checks for the next 3 years and you hope your partner does the right thing and gets the math to work for you. So I think as long as that dynamic stays in place, I think we'll be able to sort of experience these kinds of yields we're talking about. If there are more buyers like us or other shopping center companies that want to get into this, that might have an impact on cap rates. But right now, I'd say I haven't seen it yet. Operator: Our next question comes from Alexander Goldfarb from Piper Sandler. Alexander Goldfarb: Jack, can you talk a little bit about -- I haven't heard you talk about like ancillary income sponsorship and all that sort of overlay that the malls can have. I'm just sort of curious, as you look at the plan forward, if your focus right now is more on assembling the portfolio you want. And then once you're done with the plan forward, then going back and doing sort of the ancillary income overlay or if it's a dual track strategy? Jackson Hsieh: Alex, yes, in terms of ancillary income, we haven't missed a beat on it. One of the things that was a really exciting transaction was the PenFed Plaza transaction that we were able to enter a partnership with down at Tysons in that Open Plaza, where Dick's House Sport is going to go and where the hotel -- the main entrance of the property on that upper level. It's branded PenFed Plaza. We're looking at a branding opportunity in Scottsdale Fashion Square, similar to that right now. We're kind of in the market with it. And I do think that there are other areas like that. That's an example of ancillary income. And so we're constantly -- our team in business development are looking at those opportunities because we've got these centers that have real cache. They're driving 14 million, 15 million annual customers through the doors and they're staying on the campus, in closed campus, which is a pretty unique opportunity. And so I think in our best centers, that's going to be more and more of an opportunity for us. And there are a lot of other things beyond just putting kiosks and the carts out there in the common area where we're driving incremental revenue. So yes, definitely, we're not going to wait until this gets there. As these centers are upgrading, there's real opportunity to cross-sell into those non-real estate opportunities that generate NOI. Operator: And our next question comes from Caitlin Burrows from Goldman Sachs. Caitlin Burrows: Maybe just 2 modeling points. Wondering if you could confirm versus the goal of 88% to 89% physical permanent occupancy, what it was as of 2Q? And then just on the management company side, it looks like revenues are down year-over-year, but the management company expenses are up. So just wondering if you could go through kind of what's driving that, what we should assume going forward, if it's impacted by acquisitions or something else? Jackson Hsieh: Brad, do you want to take the first and then Dan take the second. Brad Miller: Yes, sure. Thanks, Jack. So we reported 95.5% leased occupancy for the go-forward portfolio. Physical occupancy at the end of Q2 was 91%. And yes, we still think we are definitely going to get to that 88%, 89% physical permanent occupancy when we get these 1,000 tenants open. Daniel Swanstrom: Yes. On the management company revenues, they were down slightly in the second quarter relative to 2Q '25, but the first quarter was up. So year-to-date, we're at -- we're actually up almost $1.5 million versus '25 million, and that's really from development fees are outsized versus last year, and we would expect that to kind of continue in the second half of '26 as we complete Green Acres and Flatiron in sort of the last stages of Scottsdale in terms of the 3 major redevelopments. On the expense side, we did see some increases year-over-year, and those are primarily attributable to some headcount and compensation. We built out our asset management team and obviously have built out the acquisitions team. And there's a little bit of investments in technology and AI spend as well. Operator: And there appear to be no -- go ahead, sir. Jackson Hsieh: I apologize. I want to thank everyone for coming on tonight, and just to let you know that we are extremely excited about what we're seeing on the operational lift in terms of our transformation strategy and we -- and also our pipeline of acquisition opportunities. So thank you for joining our call. Operator: And ladies and gentlemen, with that, we'll conclude today's conference call. We do thank you for attending today's presentation. You may now disconnect your lines. Before you buy stock in Macerich, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Macerich wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Macerich (MAC) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management reported that the Path Forward 3.0 plan is ahead of schedule, with the leasing speedometer reaching 88% completion against a midyear target of 85%. Performance is increasingly driven by a 'scarcity of space' in Class A assets, where 90% of go-forward NOI is generated, as retailers concentrate growth in high-quality centers. The company is observing a 'late-stage transformation' effect in premier assets like Tysons Corner and Scottsdale Fashion Square, where traffic and sales growth are significantly outperforming the portfolio average. Strategic leasing is shifting from volume-based deal-making to curation and optimization, focusing on traffic-generating anchors like Eataly and Dick's House of Sport to drive pricing power. Management highlighted the emerging Gen Z consumer as a strengthening tailwind, noting this demographic over-indexes on physical store visits and experiential spending. Operational focus has pivoted toward 'conversion,' specifically moving the signed-not-open (SNO) pipeline through permitting and construction to begin rent commencement. Management reiterated go-forward portfolio NOI growth of at least 3% for 2026, with an implied acceleration to 3.5% plus in the second half of the year. NOI growth is expected to ramp meaningfully to north of 8% in 2027 and 2028 as the $140 million SNO pipeline begins contributing rent. The company intends to deploy $372 million in unsettled forward equity proceeds toward acquisitions with stabilized yields in the 9% to 11% range. Acquisition strategy assumes that 100% equity funding of new assets will be accretive to FFO while simultaneously lowering leverage toward the high 5% debt-to-EBITDA range. Management expects to reach a store opening completion percentage ahead of their 60% year-end target, up from 57% currently. Net debt to adjusted EBITDA improved to 7.3x, a reduction of over 1.5 turns since the start of the Path Forward plan, and is below 7x when including unsettled forward equity. The company has completed $1.3 billion in total dispositions, representing two-thirds of its initial target, with plans to sell or give back an additional $300 million to $400 million by year-end. Management noted the $76 million loan at the 29th Street property remains in default; discussions with the lender are ongoing with no further commentary provided. The acquisition of Annapolis Mall was funded via a $450 million public offering, demonstrating the company's ability to use equity for strategic platform expansion. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management described a three-stage benefit: an initial leasing lift upon announcement, increased traffic upon opening, and a full compounding effect two years later. Specific examples like Dick's House of Sport at Freehold are drawing over 800,000 customers, with an expected incremental customer run rate of 1 million., enabling higher-tier inline leasing for brands like Vuori and Alo Yoga. The current pipeline is the most robust since the plan began, split roughly 50/50 between on-market and off-market opportunities. Management emphasized that their integrated operating platform and certainty of funding provide a competitive advantage over buyers who require mortgage debt. Management stated that rising rates have not impacted their strategy, as they modeled a 6% all-in cost for refinancings and credit spreads remain constructive. The use of forward equity protects the deleveraging path regardless of macro volatility, ensuring the 6x debt-to-EBITDA target remains achievable by 2028. The pipeline consists of $20 million from major development projects (Scottsdale, Green Acres, Flatiron), $20 million from anchor redevelopments, and $84 million from general portfolio leasing.

Interested in Macerich Company (The)? Here are five stocks we like better. Macerich reported adjusted Q2 funds from operations of $0.35 per diluted share, while go-forward portfolio NOI increased 3.8% year over year. The company reaffirmed at least 3% full-year NOI growth and expects SNO leases to drive stronger growth in 2027 and 2028. Leasing momentum remained strong, with 1.3 million square feet of new and renewal leases signed, occupancy rising to 94%, and the signed-not-open pipeline reaching $124 million. Macerich is ahead of schedule on its five-year leasing plan and expects about $30 million of SNO contribution in 2026. The company continued strengthening its balance sheet and positioning for acquisitions: net debt to adjusted EBITDA fell to 7.3 times, about $1.3 billion of asset dispositions have been completed, and a stock offering is expected to provide roughly $372 million for acquisitions. Macerich (NYSE:MAC) reported second-quarter funds from operations, as adjusted, of $0.35 per diluted share and said its go-forward portfolio net operating income increased 3.8% from a year earlier, as the mall operator continued to execute its “Path Forward” plan centered on leasing, portfolio simplification and debt reduction. President and Chief Executive Officer Jack Hsieh said the company is ahead of schedule on its strategic leasing program and is shifting more attention toward converting signed leases into operating stores. Macerich’s signed-not-open, or SNO, pipeline reached $124 million during the quarter, and the company said it has confidence in a total SNO opportunity of about $140 million. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “The plan is substantially de-risked,” Hsieh said, pointing to leasing progress, asset dispositions and balance-sheet initiatives. He said the company expects NOI growth to accelerate in 2027 and 2028 as tenants in the SNO pipeline open and begin paying rent. Portfolio sales reached $919 per square foot at the end of the second quarter, a company high, while sales across the go-forward portfolio were $954 per square foot. Portfolio leased occupancy was 94%, up 60 basis points from the first quarter. Leased occupancy in the go-forward portfolio was 95.5%, also up 60 basis points sequentially and 270 basis points from a year earlier. → 3 Drone Stocks That Should Soar After the Summer Slump Doug Healey, senior executive vice president of leasing, said Macerich has commitments for about 93% of its 2026 expiring square footage to renew and remain open, with another 6% in the letter-of-intent stage. For 2027 expirations, the company is about 50% committed, with another 40% in letters of intent, he said. The company opened nearly 350,000 square feet of new stores during the quarter, including a new and expanded 45,000-square-foot Zara store at Tysons Corner Center. Healey said the Zara location ranked first in U.S. sales and fifth globally during its opening weekend, and has remained first in its region and among the top 10 nationally. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Macerich signed 1.3 million square feet of new and renewal leases during the second quarter, including 645,000 square feet of new deals. Brands signing leases included Aerie, Old Navy, Eataly, Din Tai Fung, Zara, Sephora, Level99, Golf Galaxy, Alo Yoga, On Running, Vuori, Reformation and Cider, according to Healey. The company’s five-year leasing plan calls for 1,000 new deals. Healey said 170 leases remain to achieve that target, with roughly two-thirds of the remaining leases in the letter-of-intent stage. Macerich’s leasing “speedometer,” which tracks new-deal completion under the plan, stood at 88%, above its 85% midyear target. Chief Financial Officer Dan Swanstrom said go-forward portfolio NOI, excluding lease termination income, rose 2.5% for the first six months of 2026. The company reaffirmed its expectation for full-year go-forward NOI growth of at least 3%. Based on the first-half results, Swanstrom said the guidance implies at least 3.5% NOI growth in the second half, potentially with a stronger fourth quarter as SNO contributions increase. Macerich expects SNO tenants to contribute about $30 million in 2026, with the contribution weighted toward the latter part of the year; $40 million to $45 million in 2027; and $45 million to $50 million in 2028. The company’s Path Forward 3.0 plan targets a three-year NOI compound annual growth rate midpoint of 6.5% from 2026 through 2028. Swanstrom said that, assuming 3% growth in 2026, the plan implies NOI growth of more than 8% in both 2027 and 2028. Hsieh said centers in later stages of Macerich’s transformation strategy have recorded stronger traffic, sales and NOI trends than the broader go-forward portfolio. He cited Fairfield Commons, Broadway Plaza, Scottsdale Fashion Square and Tysons Corner as examples, saying the four properties posted low-teens traffic gains and high-single-digit NOI growth year to date. At Tysons Corner, Macerich is adding Eataly, Din Tai Fung and Cider to the historically weaker west wing. Hsieh said traffic at Tysons was up 10% through the first six months of the year as the company continued upgrading the tenant mix. Macerich said it sees acquisitions as an increasingly important growth avenue and is evaluating a broad set of on- and off-market opportunities. Hsieh said the company’s pipeline is the largest it has had since beginning the Path Forward plan, with roughly half of the opportunities on market and half directly involving sellers. The company said it remains focused on assets in strong trade areas where it can use its leasing and operating platform to create value, while financing transactions within its leverage targets. Hsieh said the company is underwriting potential acquisitions at stabilized yields in the 9% to 11% range. Macerich highlighted progress at Annapolis Mall and Crabtree, two recent acquisitions. At Annapolis, Uniqlo has opened and Dick’s House of Sport is scheduled to open Aug. 14. At Crabtree, Macerich said it has commitments for 45 new and expansion leases and 35 renewal leases since the acquisition. Dick’s House of Sport is expected to open there in September. In June, Macerich priced a common-stock offering at $23.90 per share through forward sale agreements. The company said it expects future net proceeds of about $372 million to fund acquisitions. Hsieh said the company expects to deploy the capital before the forward settlement deadline in June 2027. Net debt to adjusted EBITDA stood at 7.3 times at the end of the second quarter, down nearly half a turn from the prior quarter and more than 1.5 turns from the start of the Path Forward plan. Swanstrom said the ratio falls below seven times when including unsettled forward equity proceeds. Macerich’s stated leverage target is in the range of six times, plus or minus. The company has completed about $1.3 billion of dispositions, representing roughly two-thirds of its original target. It expects to sell or give back another $300 million to $400 million of assets, outparcels and land by year-end, which would bring total dispositions to approximately $1.7 billion. Macerich reported about $1.2 billion in liquidity, including $900 million of revolving-credit capacity, excluding the value of unsettled forward equity proceeds. The Macerich Company (NYSE: MAC) is a real estate investment trust (REIT) that specializes in the acquisition, development, ownership and management of regional shopping centers in the United States. Headquartered in Santa Monica, California, the company focuses on high-quality retail properties, including enclosed malls, open-air centers and mixed-use lifestyle destinations. Since its establishment as a REIT in 1994, Macerich has pursued a disciplined strategy of investing in properties that serve strong consumer demographics and offer long-term growth potential. Macerich's core activities encompass property and asset management, leasing, marketing and redevelopment services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Macerich Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. FFO as Adjusted: $0.35 per diluted share for Q2 2026. Go-Forward Portfolio NOI Growth: Increased 3.8% in Q2 2026 compared to Q2 2025; up 2.5% for the six-month period ended June 30, 2026. Portfolio Sales: Reached a new company high of $919 per square foot; $954 per square foot for the go-forward portfolio. Occupancy: 94% for the total portfolio, up 60 basis points from Q1; 95.5% for the go-forward portfolio, up 60 basis points sequentially and 270 basis points year over year. Leasing Activity: Signed 1.3 million square feet of new and renewal leases in Q2, including 645,000 square feet of new deals. SNO Pipeline: Reached $124 million; estimated annual contribution of $30 million in 2026, $40 million to $45 million in 2027, and $45 million to $50 million in 2028. Net Debt to Adjusted EBITDA: 7.3 times at the end of Q2, down almost half a turn from last quarter; below 7 times inclusive of unsettled forward equity proceeds. Liquidity: Approximately $1.2 billion, including $900 million of capacity on the revolving line of credit, excluding $372 million in unsettled forward equity proceeds. Dispositions: Completed approximately $1.3 billion in total dispositions to date; expect to sell or give back $300 million to $400 million of additional assets by year-end. Warning! GuruFocus has detected 10 Warning Signs with MAC. Is MAC fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. FFO as adjusted was $0.35 per diluted share, with go-forward portfolio NOI growing 3.8% in Q2 2026. Portfolio sales reached a new company high of $919 per square foot, with go-forward portfolio sales at $954 per square foot. Leased occupancy improved to 94% overall and 95.5% in the go-forward portfolio, up 270 basis points year-over-year. The SNO pipeline reached $124 million, with a clear path to $140 million total opportunity, driving expected NOI growth acceleration in 2027 and 2028. Leasing momentum remains strong, with 93% of 2026 expirations committed and 50% of 2027 expirations already committed, ahead of pace. The company has a robust acquisition pipeline with $372 million in forward equity available, targeting accretive deals with 9%-11% stabilized yields. Net debt to adjusted EBITDA improved to 7.3 times, down almost half a turn sequentially and over 1.5 turns since the start of the Path Forward plan. Strong tenant demand and successful anchor replacements, such as Zara at Tysons and Dick's House of Sport, are driving traffic and sales growth. The company is ahead of schedule on its Path Forward plan, with leasing speedometer at 88% and store openings completion at 57%, exceeding targets. Acquisitions like Annapolis and Crabtree are performing well, with strong leasing momentum and tenant commitments, reinforcing the value of the platform. The $76 million loan at 29th Street remains in default after its February maturity, with no resolution yet. Net debt to adjusted EBITDA remains elevated at 7.3 times, though improving, and the company targets further reduction to 6 times. The company faces ongoing debt maturities in 2026, requiring asset sales, refinancings, or potential property givebacks. Management company expenses increased due to headcount, compensation, and technology investments, impacting profitability. Physical occupancy is only 91%, below the target of 88%-89% permanent occupancy, indicating a gap to fill. The company has not yet deployed the $372 million forward equity, and there is risk if acquisition opportunities do not materialize as expected. Dispositions have been slow, with only $30 million closed year-to-date, and the company needs to sell or give back $300-$400 million more by year-end. The 29th Street default and other potential loan issues could lead to asset losses or additional financial strain. The company's NOI growth is back-end weighted, with 2026 growth expected at 3% but requiring 3.5% in the second half, which may be challenging. The acquisition market is competitive, and cap rates may compress, potentially reducing the attractiveness of future deals. Q: Now that all 30 anchor replacements are committed and starting to roll on, could you talk about the second-order effects on leasing and rent spreads at the rest of the center once that anchor opens? How might that compound over the next few years and beyond 2028? A: Dan Swanstrom (CFO) and Jack Shea (CEO) explained that the effect happens in three stages. The first is when an anchor deal is signed, which immediately enables re-leasing efforts for inline tenants. The second phase is when the store opens, bringing more energy to the wing. The third is the "after effect" two years later when the anchor and multiple inline tenants are operating. They cited the SCHEELS store at Chandler, which draws 3.1 million visitors annually and is the number one SCHEELS in the system, enabling them to bring in Fiori, Alo Yoga, Din Tai Fung, and Seafood City. Similarly, Dick's House of Sport at Freehold is drawing over 800,000 customers and is expected to reach a 1 million incremental customer run rate. Q: How should we best think about overall acquisition volumes going forward? Are there thresholds in terms of risk mitigation or human capital that would limit the number of assets you acquire? A: Jack Shea (CEO) stated that this is a unique opportunity to buy enclosed regional shopping centers, and Macerich has a tremendous advantage with its integrated operating platform, national tenant relationships, and available capital without needing mortgage debt. He noted the pipeline is robust with stabilized yields in the 9% to 11% area. He emphasized that deploying the $372 million of forward equity on acquisitions would generate about $0.02 to $0.04 incremental FFO accretion and lower leverage 25 to 30 bps, bringing debt to EBITDA down to the high five range. He declined to give a specific volume number but stressed the company will be picky and disciplined. Q: What's the risk that the forward equity capital doesn't get deployed by June of next year when you would have to settle it? A: Jack Shea (CEO) stated definitively that it's "not possible" for the capital to go undeployed. He explained that the decision to pursue the forward equity was a "no-brainer" given the large pipeline of opportunities. He is comfortable settling the forward equity at a 9% to 11% stabilized yield, which will be positive for the business. The logic was to protect the plan and ensure the balance sheet gets under 6 times debt to EBITDA by 2028. Q: You reiterated the full-year go-forward NOI growth of at least 3% and a meaningful acceleration in 2027 and 2028. Is there anything in the second half of the year that should create a headwind? Do you see this period as the inflection point? A: Dan Swanstrom (CFO) confirmed the expectation of at least 3% growth for the year, implying 3.5% plus for the second half. He noted the three-year NOI CAGR midpoint is 6.5% for 2026-2028, which implies north of 8% NOI growth in 2027 and 2028. Jack Shea (CEO) added that they are seeing tremendous lift in later-stage transformation properties, citing Scottsdale Fashion Square with an 18% sales increase year-to-date, and mid-stage transformations at Los Cerritos and Chandler showing mid-single-digit NOI growth. He emphasized that the go-forward averages don't tell the full story and that the strategy is working. Q: What percentage of your total NOI today is in your go-forward portfolio, and what's the breakdown of your SNO pipeline between redevelopment and core portfolio? A: Dan Swanstrom (CFO) noted that go-forward centers represent $185 million of the $211 million total NOI for the quarter. Brad Miller (SVP of Portfolio Management) broke down the $124 million SNO pipeline: $20 million from the development pipeline (Scottsdale, Green Acres, Flatiron), $20 million from redevelopments (anchor openings), and the remaining $84 million from the rest of the portfolio leasing. Q: With leasing goals nearly complete, what is the scope of the redevelopment opportunity within the portfolio? How should we think about redevelopment spend and yields on an intermediate-term basis? A: Jack Shea (CEO) said the team is going through that exercise now. He cited examples like the former Neiman Marcus box at Broadway Plaza, which will be converted to more inline opportunity due to high demand, and the north parcel at Scottsdale Fashion Square adjacent to the Apple store, which is being evaluated. He noted these opportunities will add value, traffic, and enhance their competitive position, but did not provide specific yield targets. Q: Are you seeing increased competition for prospective transactions? Have you seen more capital interested in chasing these deals? A: Jack Shea (CEO) acknowledged that competition exists, particularly from the players they beat out for Crabtree. However, he emphasized Macerich's advantages: a different cost of capital, an integrated operating platform, and unique relationships with tenants like Dick's House of Sport. He noted that half of their pipeline is off-market, which reduces competition. He also highlighted their ability to work with municipalities, as demonstrated by the Flatiron project in partnership with the City of Broomfield. Q: With the recent increase in the 10-year Treasury and concerns about rates being higher for longer, does that change the calculus for capital allocation? A: Dan Swanstrom (CFO) said it's not having an immediate effect. They assumed a 6% all-in cost of financing on refinancings, and spreads remain constructive at all-time lows. Jack Shea (CEO) added that having the forward equity in place completely protects their ability to get the balance sheet under 6 times debt to EBITDA by 2028. Q: Is there a way to categorize what the acquisition pipeline could look like over the next three to five years? How often can these deals come about? A: Jack Shea (CEO) stated the pipeline is the most robust it's been since he started at the company, with half on-market and half off-market opportunities. He noted they have an EVP of acquisitions with a team dedicated to evaluating opportunities, which is a significant upgrade from when they were doing Crabtree and Annapolis part-time. Q: Are you seeing any signs of cap rate compression in the 9% to 11 For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Macerich (MAC) reported $249.71 million in revenue for the quarter ended June 2026, representing no change year over year. EPS of $0.35 for the same period compares to -$0.16 a year ago. The reported revenue represents a surprise of +3.24% over the Zacks Consensus Estimate of $241.87 million. With the consensus EPS estimate being $0.33, the EPS surprise was +6.06%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Macerich performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Leasing Revenue- Percentage rents: $3.73 million compared to the $5.73 million average estimate based on three analysts. The reported number represents a change of -10.1% year over year. Revenues- Leasing Revenue- Tenant recoveries: $70.37 million versus $64.92 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.3% change. Revenues- Management Companies revenues: $5.59 million versus $6 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -5.8% change. Revenues- Leasing Revenue- Minimum rents: $154.26 million versus $149.92 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -0.8% change. Revenues- Leasing Revenue- Other: $7.01 million versus $7.25 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -1% change. Revenues- Leasing Revenue- Bad debt income (expense): $-1.92 million versus $-1.45 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +141% change. Revenues- Other income: $10.67 million versus the two-analyst average estimate of $9.95 million. The reported number represents a year-over-year change of -4.1%. Revenues- Leasing revenue: $233.44 million versus $224.99 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +0.3% change. Net Earnings Per Share (Diluted): $-0.10 versus $-0.10 estimated by four analysts on average. View all Key Company Metrics for Macerich here>>> Shares of Macerich have returned +2.3% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Macerich Company (The) (MAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Macerich Company (The)? Here are five stocks we like better. Leasing momentum remained strong in Q1, with Macerich signing 1.6 million square feet of new and renewal leases and saying it is now 83% complete on its leasing “speedometer.” Management said it expects to substantially finish its 1,000-unit leasing target by year-end. The company reported improving operating trends, including FFO as adjusted of $0.34 per diluted share, sales per square foot of $941 and a 3.9% rise in comparable inline sales. Macerich also said go-forward portfolio NOI grew 1.2% and remains on track for at least 3% full-year NOI growth in 2026. Macerich is leaning into its Class A mall strategy and expansion plans, highlighted by the $260 million acquisition of Annapolis Mall and continued redevelopment of high-end centers like Scottsdale Fashion Square. Management said the Annapolis deal should be accretive and that all 30 vacant anchor locations are now committed. Macerich (NYSE:MAC) said its first-quarter 2026 results reflected continued progress on its multiyear “Path Forward Plan,” with management pointing to leasing momentum, a growing signed-not-open tenant pipeline and recent acquisition activity as key drivers of its strategy. President and CEO Jack Hsieh said the company generated funds from operations, as adjusted, of $0.34 per diluted share in the quarter. For Macerich’s go-forward portfolio, sales per square foot increased to $941, total comparable inline sales rose 3.9% from the prior-year quarter, and foot traffic was slightly higher. Net operating income for go-forward portfolio centers grew 1.2%. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum Hsieh said a central goal of the Path Forward Plan is to “elevate and transform” the merchandising mix at Macerich’s centers by leasing 1,000 new units. He said the company’s cumulative signed-not-open, or SNO, pipeline was $116 million at the end of the first quarter, compared with a $140 million target. That pipeline represents contracted revenue with approximately 80% flow-through to NOI, according to Hsieh. Macerich said its leasing “speedometer,” which tracks revenue completion under the plan, stood at 81% at the end of the first quarter and had since increased to 83%. Hsieh said the company has 250 leases remaining to complete the plan, with 125 in the letter-of-intent phase and 125 in prospecting. → 3 Ways to Target the Resources Powering AI and Data Centers “Based upon our new lease approval run rate and the remaining 250 deals that need to execute, I’m confident we will substantially complete our leasing target by year-end,” Hsieh said. Doug Healey, senior executive vice president of leasing, said Macerich signed 1.6 million square feet of new and renewal leases during the quarter, including 700,000 square feet of new deals. He said new leasing was more than double the amount completed in the first quarter of 2025. → Quantum Earnings Season Is Ramping Up—What to Watch From 2 Major Players During the quarter, Macerich signed three anchor tenants: DICK’S House of Sport at Los Cerritos, Round1 at Washington Square and Von Maur at Freehold Raceway Mall. Healey said Von Maur’s 145,000-square-foot store is under construction and expected to open in the third quarter of 2027. Macerich also signed its first deal with Fogo de Chão, a 7,500-square-foot restaurant planned for the redevelopment area of Green Acres Mall in 2027. Healey said the company has commitments on about 90% of 2026 expiring square footage expected to renew and remain open, with another 10% in the letter-of-intent stage. For 2027 expirations, he said Macerich is 30% committed, with another 55% in the letter-of-intent stage. Hsieh said he has gained confidence in the “resurgence of Class A regional malls” after two years leading the company, citing limited remaining supply and renewed retailer interest in physical stores. He said 90% of Macerich’s NOI comes from Class A malls and described Gen Z shoppers as a long-term tailwind because the group “over-indexes in visiting physical stores, spending money on items, food, and experiences.” Hsieh pointed to Scottsdale Fashion Square as an example of the company’s transformation strategy. He said Macerich replaced a 35,000-square-foot home furnishing tenant with luxury and dining options, including Hermès, Élephante and Loro Piana. Cost of occupancy on the new spaces increased more than 10 times, and sales are projected to increase more than 10 times to more than $100 million, he said. The company also said all 30 of its vacant anchor locations are committed, covering more than 2.9 million square feet and expected to generate more than $750 million in sales. Hsieh cited the opening of Scheels at Chandler Fashion Center in late 2023 as evidence of the strategy, saying the mall’s trade area increased more than 40% and overall traffic rose more than 20% after Scheels opened in a former Nordstrom space. Hsieh discussed Macerich’s recently closed acquisition of Annapolis Mall for $260 million, plus $12 million for a 13.1-acre vacant Sears parcel. He described the property as a 1.5 million-square-foot Class A regional mall in an affluent East Coast market, with average household income above $161,000 in the primary trade area and a total trade area population above 1 million. According to Hsieh, the prior owners had already secured a DICK’S House of Sport, expected to open in August, and signed 18 new tenant deals totaling 353,000 square feet scheduled to open in 2026 and 2027. Those tenants include Dave & Buster’s, Tesla, Uniqlo, Aéropostale, Abercrombie, Jack & Jones, Pop Mart and a Lululemon relocation and expansion. The property also has recent long-term renewals with Apple, Zara and AMC. Hsieh said Annapolis is expected to produce year-one NOI, including SNO, of approximately $29 million and stabilize near $33 million. He said that represents an initial yield of 10.5%, increasing to more than 11% at stabilization. The acquisition is expected to be accretive to Macerich’s 2028 target FFO range by about $0.04 per share on a leverage-neutral basis, according to management. Chief Financial Officer Dan Swanstrom said FFO, as adjusted, was approximately $92 million in the first quarter. The figure included about $10 million of gains on undepreciated asset sales, primarily from the sale of a land parcel at Washington Square. Swanstrom said Macerich continues to expect go-forward portfolio center NOI growth of at least 3% for full-year 2026, with growth weighted toward the back half of the year. He said NOI growth is expected to accelerate in 2027 and 2028 as SNO pipeline tenants open and begin paying rent. The company also outlined several financing actions: A four-year extension of a $200 million South Plains loan through November 2029 at an existing interest rate of about 4.2%. An amended and restated $900 million revolving credit facility, increased from $650 million, with maturity extended to March 2030. Repayment of about $212 million outstanding on Vintage Faire Mall using cash on hand and $100 million of borrowings on the credit line. A new $115 million five-year mortgage loan at Deptford Mall, closed by the joint venture after quarter-end, at a fixed rate of 6.95%. Swanstrom said the company had about $780 million in liquidity, including $650 million of capacity on its revolving line of credit. Net debt to adjusted EBITDA was 7.76 times at quarter-end, which he said was one full turn lower than at the start of the Path Forward Plan. Macerich has completed approximately $1.3 billion in total dispositions to date, or about two-thirds of its initial disposition target. Swanstrom said the company currently expects to sell or give back an additional $300 million to $400 million of non-core assets, outparcels and land by the end of 2026, which would bring total dispositions to about $1.7 billion. In response to analyst questions, Hsieh said Macerich’s current physical permanent occupancy is around 84%, with management projecting 88% to 89% once the planned store openings are completed. He said converting temporary tenants and older leases into permanent tenants with fixed rent, fixed common-area maintenance and fixed real estate taxes should improve the company’s financial results and merchandising mix. Asked about the consumer environment, Hsieh said Macerich’s first-quarter comparable sales were up 3.8% and that only one of seven category groups, shoes, was negative. He said the “middle-upper income groups are still spending” and that consumers are continuing to come to the mall and spend. Healey said retailer demand remains strong despite the broader macroeconomic backdrop. He pointed to interest from legacy retailers, emerging brands, international retailers, experiential concepts, food and beverage, and health and wellness tenants. “We are not seeing any letup at all in retailer demand,” Healey said. The Macerich Company (NYSE: MAC) is a real estate investment trust (REIT) that specializes in the acquisition, development, ownership and management of regional shopping centers in the United States. Headquartered in Santa Monica, California, the company focuses on high-quality retail properties, including enclosed malls, open-air centers and mixed-use lifestyle destinations. Since its establishment as a REIT in 1994, Macerich has pursued a disciplined strategy of investing in properties that serve strong consumer demographics and offer long-term growth potential. Macerich's core activities encompass property and asset management, leasing, marketing and redevelopment services. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Macerich Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Management is executing a 'Path Forward' plan to transform the merchandising mix by leasing 1,000 new units, representing approximately 25% of the go-forward portfolio's space. The strategy focuses on backfilling 30 vacant anchors with high-productivity tenants like Scheels and Dick's House of Sport to act as catalysts for entire mall wings. Performance is driven by a 'quality over quantity' retailer preference, where brands prioritize large flagship stores in Class A regional malls over historical market saturation. The company is specifically targeting the Gen Z demographic, which management identifies as a long-term tailwind due to their high index for physical store visits and experiential spending. Operational focus has shifted from pure occupancy to 'Elevate and Transform,' replacing underperforming tenants with luxury and dining options to significantly increase cost of occupancy and sales productivity. The acquisition of Annapolis Mall for $260 million follows the Crabtree Mall playbook, targeting assets where prior owners initiated transformation but Macerich can further optimize through its leasing platform. Management projects a $140 million cumulative Signed Not Open (SNO) pipeline to drive property NOI through 2028, with 80% flow-through to NOI. Go-forward portfolio NOI growth is expected to be at least 3% for full-year 2026, with growth being heavily back-end weighted as SNO tenants commence rent. The company expects to substantially complete its 1,000-lease target by year-end 2026, supported by a current run rate of approximately 100 new lease approvals per quarter. Strategic targets for 2028 include increasing physical permanent occupancy to 88%-89% and reducing corporate leverage to the low-to-mid 6x range. The Annapolis Mall acquisition is expected to be $0.04 accretive to the 2028 target FFO range on a leverage-neutral basis, with stabilized yields projected at 11% plus. The 29th Street property loan ($76 million pro rata) remains in default; management is currently in discussions with the lender but provided no further commentary. Macerich has completed $1.3 billion of its $2 billion disposition target, with an additional $300 million to $400 million in asset sales or givebacks expected by year-end 2026. The company utilized $85 million of ATM equity at an average price above $19 to fund the Annapolis acquisition, maintaining a leverage-neutral stance for 2028 targets. Winter weather negatively impacted Q1 2026 NOI growth by approximately 50 basis points due to higher snow removal expenses at East Coast properties. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Initial funding utilized cash on hand, ATM proceeds, and $150 million from the revolving credit facility. Management will evaluate permanent funding options over time, noting that the recent expansion of the credit line to $900 million provides ample capacity. Management reiterated the 'at least 3%' target for the go-forward portfolio, emphasizing that growth will accelerate materially in 2027 and 2028 as the SNO pipeline opens. The 2026 growth is specifically back-end weighted due to the timing of rent commencements. Management reported no letup in retailer demand despite macro concerns, with new leasing volume in Q1 more than double that of Q1 2025. Middle-to-high income groups continue to spend, and luxury assets like Scottsdale Fashion Square are seeing double-digit traffic increases. Management explicitly stated they will no longer use the legacy re-leasing spread metric, calling it a metric they 'inherited.' They intend to develop a more 'thoughtful metric' that better reflects the portfolio's transformation once the Path Forward plan is complete. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.