The Macerich Company

What they do

Macerich acquires, owns, develops, redevelops, manages, and leases regional and community/power shopping centers. As of June 30, 2026, it owned interests in 37 regional retail centers and one community/power shopping center, totaling approximately 40 million square feet of gross leasable area. The portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor.

Revenue drivers

• Regional retail centers — Core portfolio of 37 regional centers generating rental revenue; high-quality retail real estate in densely populated markets.
• Community/power shopping centers — One community/power center contributes to revenue; smaller component of the overall portfolio.
• Leasing and redevelopment — Property management, leasing, and redevelopment services provided by seven management companies; new store leases expected to generate approximately $124 million in incremental gross revenue at the company's share from 2024 through 2028.

Recent performance

For the second quarter of 2026, Macerich reported a net loss of $27.1 million, or $0.10 per diluted share, compared to a loss of $40.9 million, or $0.16 per share, in the same period of 2025. FFO as adjusted was $100.4 million, or $0.35 per share, versus $88.7 million, or $0.34 per share, a year earlier. Go-Forward Portfolio NOI, excluding lease termination income, increased 3.8% year-over-year. Leased portfolio occupancy was 94.0% at June 30, 2026, up from 92.0% a year prior. Revenue for the trailing twelve months ended June 30, 2026 was $1.01 billion.

Strategy

Management highlights the Path Forward Plan, with the leasing phase substantially complete and a focus on conversion—getting tenants open. The company signed approximately 1.3 million square feet of leases in the second quarter of 2026, with a 1.0% year-over-year increase in new-store leased square footage. Leasing speedometer is at 88%, exceeding the 85% mid-year target. The new store leasing pipeline represents cumulative and incremental revenue of $124 million from 2024 through 2028. The company also recognized a gain on sale of assets in the second quarter, indicating ongoing portfolio management.

Risks

• Retail and e-commerce competition — Changing consumer behaviors and increased online shopping could reduce demand for retail space, impacting occupancy and rental rates.
• Tenant credit and bankruptcies — Anchor or tenant bankruptcies, closures, mergers, or consolidations could decrease income and increase vacancy.
• Interest rate and financing costs — Elevated interest rates increase borrowing costs on floating-rate debt and may affect refinancing availability and terms.
• Economic and geopolitical conditions — Global and regional economic downturns, tariffs, and geopolitical tensions can hurt consumer spending and tenant performance.

Outlook

Management expects continued execution of the Path Forward Plan, with focus on converting signed leases to opened stores and driving NOI growth. They anticipate the new store leasing pipeline to contribute $124 million in incremental gross revenue through 2028. Occupancy has been improving, and they are monitoring economic conditions, including interest rates and inflation, which could affect performance.