Q2 2026 Macerich Co Earnings Call Transcript
Key Points
- 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.
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.
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 under SEC filings. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in a supplemental filed on Form 8-K with the SEC, which is posted in the Investor section of the company's
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