On October 31, 2023, Macerich Co (MAC, Financial) released its earnings report for the third quarter of 2023. The company reported a net loss of $262.5 million or $1.22 per share-diluted, compared to a net loss of $15.2 million or $0.07 per share-diluted in the same quarter of the previous year. The majority of this net loss was driven by impairment charges resulting from expected, shortened holding periods on Country Club Plaza and Fashion Outlets of Niagara.
Financial Performance
Funds from Operations (FFO), excluding financing expense in connection with Chandler Freehold and accrued default interest expense, was $99.1 million or $0.44 per share-diluted during the third quarter of 2023, compared to $102.8 million or $0.46 per share-diluted for the same period in 2022.
Same center net operating income (NOI), excluding lease termination income, increased 4.8% in the third quarter of 2023 compared to the third quarter of 2022. Year to date through September 30, 2023, same center NOI, excluding lease termination income, increased 5.0% compared to the same period in 2022.
Occupancy and Leasing
Despite the net loss, Macerich Co (MAC, Financial) showed signs of recovery in other areas. Occupancy as of September 30, 2023, showed healthy increases relative to both the second quarter of 2023 and the third quarter of 2022. Occupancy was 93.4%, a 1.3% increase compared to the 92.1% occupancy rate at September 30, 2022, and a sequential 0.8% improvement compared to the 92.6% occupancy rate at June 30, 2023.
Leasing spreads at September 30, 2023, showed continued strength, now reflecting the second consecutive quarter of double-digit increases and averaging 11% in both the second and third quarter of 2023.
2023 Earnings Guidance
At this time, Macerich Co (MAC, Financial) is reducing its 2023 guidance for estimated EPS-diluted and maintaining its guidance for FFO per share-diluted, excluding financing expense in connection with Chandler Freehold and accrued default interest expense.
Dividend Announcement
On October 27, 2023, Macerich Co (MAC, Financial) announced a quarterly cash dividend of $0.17 per share of common stock. The dividend is payable on December 1, 2023, to stockholders of record at the close of business on November 9, 2023.
Conclusion
Despite the widened net loss, Macerich Co (MAC, Financial) showed signs of recovery with increased occupancy and leasing spreads. The company's performance indicates resilience and potential for future growth.
Explore the complete 8-K earnings release (here) from Macerich Co for further details.
