In the first quarter of 2025, MAC reported revenue totaling $249.2 million, surpassing the anticipated $199.7 million. The same center net operating income, not accounting for lease termination income, saw a slight increase of 0.9% compared to the same period in 2024.
As of March 31, 2025, the portfolio occupancy stood at 92.6%. This marks a decline from the previous year's 93.4% on March 31, 2024, and a further drop from 94.1% at the end of 2024. Temporary and holiday specialty tenants were the main contributors to this reduction in occupancy rates.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Macerich Co (MAC, Financial) is $18.73 with a high estimate of $25.00 and a low estimate of $13.70. The average target implies an upside of 25.00% from the current price of $14.98. More detailed estimate data can be found on the Macerich Co (MAC) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, Macerich Co's (MAC, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Macerich Co (MAC, Financial) in one year is $12.13, suggesting a downside of 19.03% from the current price of $14.98. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Macerich Co (MAC) Summary page.
MAC Key Business Developments
Release Date: February 27, 2025
- Sales per Square Foot: $837 at the end of Q4 2024, up $3 from the previous quarter.
- Occupancy Rate: 94.1% in Q4 2024, up 40 basis points from Q3 and 60 basis points year-over-year.
- New Store Openings: 1.5 million square feet in 2024.
- Leasing Volume: 3.7 million square feet of leases signed in 2024.
- FFO: Approximately $117 million or $0.07 per share in Q4 2024, down from $128 million or $0.57 per share in Q4 2023.
- Same-Center NOI: Decreased 0.4% in Q4 2024 compared to Q4 2023; increased 0.2% for the full year 2024 compared to 2023.
- Debt to EBITDA: Slightly below 8 times at year-end 2024, almost a full turn lower than the previous year.
- Liquidity: Approximately $683 million, including $540 million of capacity on the line of credit.
- Incremental Rent Pipeline: $66 million, with $27 million expected to be realized in 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Macerich Co (MAC, Financial) has made significant progress in simplifying its business by consolidating joint venture interests and refinancing at favorable rates.
- The company has implemented a new leasing dashboard tool, improving visibility and efficiency in leasing and tenant coordination.
- Macerich Co (MAC) achieved an 8.8% base rent re-leasing spread for permanent tenants under 10,000 square feet, with new leases signed at 17.6% higher base rent.
- The company's Path Forward Plan aims to increase physical permanent occupancy from 84% to 89% by 2028, with 50% of this increase already accounted for by the current SNO pipeline.
- Macerich Co (MAC) has a strong pipeline of new store openings, totaling over 2 million square feet, expected to contribute $66 million in incremental rent by early 2028.
Negative Points
- The company experienced a decrease in FFO due to higher interest expenses and severance costs.
- Same-center NOI, excluding lease termination income, decreased by 0.4% in the fourth quarter of 2024 compared to the previous year.
- Macerich Co (MAC) faces higher anticipated landlord work and tenant allowance costs due to a focus on new tenants.
- There is potential for delays in the development pipeline, particularly at FlatIron Crossing.
- The company is operating with a high debt-to-EBITDA ratio, although it has been reduced to slightly below 8 times.
