Macerich (NYSE:MAC) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Macerich beat quarterly expectations with EPS of $0.34 versus estimates of $0.31, and revenue of $241.5 million also came in above consensus. However, revenue was still down 3.1% from a year earlier.
• Leasing momentum remains strong, with management saying its Path Forward pipeline is 83% complete and expects to finish most of the 1,000-lease program by year-end. The company also reiterated a goal of at least 3% NOI growth in 2026.
• The Annapolis Mall acquisition is a major strategic move, with the property expected to add roughly $29 million in year-one NOI and be accretive to FFO over time. Macerich funded the deal partly with cash, ATM proceeds, and revolver borrowings.

Macerich (NYSE:MAC - Get Free Report) issued its quarterly earnings data on Wednesday. The real estate investment trust reported $0.34 EPS for the quarter, topping analysts' consensus estimates of $0.31 by $0.03, Zacks reports. The firm had revenue of $241.54 million for the quarter, compared to analyst estimates of $233.06 million. Macerich had a negative net margin of 18.22% and a negative return on equity of 6.95%. The firm's revenue was down 3.1% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.33 EPS.

Here are the key takeaways from Macerich's conference call:

• Path Forward leasing momentum: The company reports its SNO pipeline at $116M of a $140M target, leasing speedometer at ~83% with roughly 250 leases remaining, and expects to substantially complete the 1,000‑lease program by year‑end.
• Financial progress and guidance: Q1 FFO as adjusted was $0.34, go‑forward portfolio NOI rose 1.2% in Q1, management reiterates at least +3% NOI for 2026 and forecasts SNO contributions ramping to ~$30M (2026), $40–45M (2027) and $45–50M (2028), while net debt/adjusted EBITDA sits at 7.76x with a goal of low‑mid‑6x.
• Annapolis Mall acquisition: Closed for $260M (+ $12M Sears parcel), expected year‑one NOI ~$29M (stabilizing ~ $33M), accretive ~+$0.04 to 2028 FFO on a leverage‑neutral basis, funded with cash/ATM proceeds and $150M on the revolver.
• Robust leasing demand and execution: Signed 1.6M sq ft in Q1 (700k sq ft of new deals, double Q1 2025 new leasing), opened notable restaurants and anchors, and reports strong LOI activity ahead of ICSC.
• Remaining financing and disposition risks: A $76M loan (Twenty‑ninth Street JV share) remains in default and is under negotiation, and the company still needs to complete additional asset sales/refinancings to address remaining 2026 maturities.

Macerich Stock Performance

Shares of MAC traded up $0.48 during midday trading on Friday, hitting $21.85. 1,554,497 shares of the stock traded hands, compared to its average volume of 2,825,813. The company has a debt-to-equity ratio of 1.96, a quick ratio of 1.02 and a current ratio of 0.83. The business's 50 day moving average price is $20.18 and its two-hundred day moving average price is $18.87. The firm has a market capitalization of $5.68 billion, a PE ratio of -30.77, a price-to-earnings-growth ratio of 1.48 and a beta of 2.12. Macerich has a 1-year low of $14.82 and a 1-year high of $22.56.

Macerich Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 29th. Stockholders of record on Monday, June 15th will be issued a dividend of $0.17 per share. The ex-dividend date of this dividend is Monday, June 15th. This represents a $0.68 annualized dividend and a dividend yield of 3.1%. Macerich's payout ratio is -95.77%.

Key Macerich News

Here are the key news stories impacting Macerich this week:

• Positive Sentiment: Macerich reported Q1 FFO of $0.34 per share and revenue of $241.5 million, both above Wall Street expectations, signaling better-than-expected operating performance. Article Title
• Positive Sentiment: The company said leasing activity improved and occupancy is rising across its go-forward portfolio, with management targeting 88%-89% physical permanent occupancy and at least 3% go-forward NOI growth in 2026. Article Title
• Positive Sentiment: Macerich bought Annapolis Mall and an adjacent parcel for $272 million, a move that adds a major retail asset and may strengthen its long-term portfolio. Article Title
• Neutral Sentiment: Q1 results also showed the company narrowed its loss, which is constructive but still reflects ongoing profitability pressure. Article Title

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Global Retirement Partners LLC lifted its holdings in Macerich by 366.2% in the fourth quarter. Global Retirement Partners LLC now owns 1,394 shares of the real estate investment trust's stock worth $26,000 after purchasing an additional 1,095 shares during the period. Triumph Capital Management acquired a new stake in Macerich during the 3rd quarter valued at $33,000. Kestra Advisory Services LLC purchased a new position in Macerich during the 4th quarter valued at about $43,000. Danske Bank A S acquired a new position in Macerich in the 3rd quarter valued at approximately $56,000. Finally, Northwestern Mutual Wealth Management Co. increased its stake in shares of Macerich by 16.0% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 6,205 shares of the real estate investment trust's stock worth $100,000 after acquiring an additional 858 shares during the last quarter. Institutional investors and hedge funds own 87.38% of the company's stock.

Analysts Set New Price Targets

Several research analysts recently commented on MAC shares. The Goldman Sachs Group boosted their price target on Macerich from $15.00 to $17.00 and gave the stock a "sell" rating in a research note on Monday, March 2nd. KeyCorp set a $25.00 price objective on Macerich and gave the company an "overweight" rating in a research note on Monday, February 23rd. Truist Financial lifted their price objective on Macerich from $19.00 to $20.00 and gave the stock a "buy" rating in a report on Tuesday, January 20th. Citigroup lifted their price target on shares of Macerich from $19.00 to $21.00 and gave the stock a "neutral" rating in a research note on Wednesday, February 25th. Finally, JPMorgan Chase & Co. upped their price target on shares of Macerich from $18.00 to $19.00 and gave the company an "underweight" rating in a report on Tuesday, March 10th. Seven equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $20.92.

About Macerich

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.

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