Q2 2025 Macerich Co Earnings Call Transcript
Key Points
- Macerich Co (MAC) is ahead of schedule on its leasing targets, having already signed 4.3 million square feet year-to-date, surpassing its 2025 target.
- The acquisition of Crabtree Mall is expected to be accretive to the Path Forward Plan 2028 target FFO range and enhances the company's portfolio in a high-growth market.
- The company has made significant progress on its Path Forward Plan, particularly in leasing and asset sales, positioning it well for future growth.
- Macerich Co (MAC) has maintained positive leasing spreads for 15 consecutive quarters, with a 10.5% increase in the second quarter of 2025.
- The company has a strong liquidity position with approximately $915 million, including $650 million of capacity on its revolving line of credit.
- Occupancy at the end of the second quarter was 92%, down 60 basis points from the last quarter, primarily due to the liquidation and closing of Forever 21 stores.
- The company faces challenges in balancing asset sales and leasing, which can cause disruption to earnings and complicate the reinstatement of guidance.
- Macerich Co (MAC) has a high net debt to EBITDA ratio of 7.9 times, although it has decreased from previous levels.
- The company is dealing with the impact of tenant bankruptcies, such as Forever 21 and Claire's, which affects occupancy and requires remerchandising efforts.
- There is a significant amount of capital expenditure required for the re-leasing and revitalization of acquired properties like Crabtree Mall.
Ladies and gentlemen, thank you for standing by. Welcome to the second quarter 2025 Macerich earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to turn the conference over to Samantha Greening, Assistant Vice President, Director of Investor Relations. Please go ahead.
Thank you for joining us on our second quarter 2025 earnings call. During this call, we'll be making 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 and future expectations.
Actual results may differ materially due to a variety of risks and uncertainties set forth in today's earnings results supplemental and our SEC filings. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures are included in the supplemental filed on Form 8-K with the SEC
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