Macerich (MAC) Financials

Macerich’s second-quarter 2026 results show gradual improvement in operating performance, but the company remains unprofitable and highly leveraged. Total revenue increased to $183.7 million from $177.9 million in the restated second quarter of 2025, while the net loss attributable to common shareholders narrowed to $27.1 million from $40.9 million. Basic loss per share improved to $0.10 from $0.16. The improvement follows a similar trend from the first quarter of 2026, when the company reported a $36.4 million common-stock loss.

Over the broader period provided, Macerich has generally produced positive operating cash flow despite recurring net losses. Quarterly operating cash flow was $66.9 million in Q2 2026, compared with $70.5 million in Q2 2025 and $57.9 million in Q2 2023. However, substantial investment-security purchases and capital expenditures frequently absorb that cash. The balance sheet has expanded since 2023, with total assets reaching $8.52 billion in Q2 2026, but long-term debt also remains elevated at $4.85 billion.

• Revenue and earnings improved year over year. Q2 2026 revenue rose approximately 3.3% from the restated Q2 2025 level, while the common-stock loss narrowed by roughly one-third.
• Operating cash flow remains consistently positive. Macerich generated $66.9 million in operating cash flow in Q2 2026 and $77.4 million in Q1 2026, providing cash support for debt service and property operations.
• Interest expense has eased from recent highs. Q2 2026 interest expense was $66.0 million, down from $67.5 million in Q1 2026, $71.9 million in Q2 2025 and $72.7 million in Q3 2025.
• Liquidity has improved from early 2026. Cash and equivalents increased to $227.0 million at June 30, 2026, from $182.0 million at March 31, while restricted cash and trading securities added approximately $787 million of additional financial resources.
• Debt repayment exceeded new borrowing in Q2. The company issued $150.0 million of debt but repaid $258.6 million, reducing debt by approximately $108.6 million during the quarter.
• Non-interest income remains the primary revenue source. Q2 2026 non-interest income was $249.7 million, more than offsetting the $66.0 million interest expense, but the company’s reported revenue still depends heavily on other non-interest items rather than a broad improvement in profitability.
• Property assets have grown materially. Net premises and equipment increased to $6.91 billion in Q2 2026 from $5.84 billion in Q1 2024, although the increase may reflect acquisitions, capital investment and accounting changes rather than directly higher returns.
• Net losses remain persistent. Macerich reported common-shareholder losses in each provided quarter from Q1 2024 through Q2 2026, with Q2 2026 marking improvement but not a return to profitability.
• Leverage continues to constrain the business. Long-term debt stood at $4.85 billion and total liabilities at $5.62 billion in Q2 2026. Cash interest paid was $52.8 million during the quarter, limiting financial flexibility.
• Share dilution is a significant concern. Weighted-average basic shares increased to 273.7 million in Q2 2026 from approximately 216 million in Q2 2024. Even with a smaller net loss, the larger share count can reduce per-share value for existing investors.

The company also paid $51.8 million in common dividends during Q2 2026, or $0.17 per share, despite reporting a net loss. While positive operating cash flow currently supports the dividend, the continuing losses, high interest burden, investment outflows and expanding share count suggest that investors should closely monitor dividend coverage, debt reduction and the path toward sustainable profitability.