Macerich Q2 FFO Misses Estimates, Occupancy Declines Y/Y

The Macerich Company MAC reported second-quarter 2025 funds from operations (FFO) per share of 32 cents, missing the Zacks Consensus Estimate of 34 cents. The reported figure compares unfavorably with the prior-year quarter’s 44 cents per share.

Results reflected a decline in occupancy and a rise in expenses year over year. However, with solid leasing volume, Go-Forward Portfolio Centers’ net operating income (NOI) and base rent re-leasing spreads increased.

Quarterly revenues of $249.8 million increased 15.9% from the year-ago quarter’s figure. Moreover, the metric beat the Zacks Consensus Estimate by 3.35%.

MAC’s Q2 in Detail

The portfolio tenant sales per square foot for spaces less than 10,000 square feet for the trailing 12 months ended June 30, 2025, came in at $849, up from $835 year over year.

In the second quarter, Macerich signed leases encompassing 1.7 million square feet. On a comparable center basis, this reflected a 137% increase in the amount of leased square footage signed year over year.

Go-Forward Portfolio Centers NOI, excluding lease termination income, rose 2.4% year over year to $181.2 million.

For the trailing 12 months ended June 30, 2025, base rent re-leasing spreads were 10.5% more than the expiring base rent, making it the 15th consecutive quarter of positive base rent leasing spreads.

However, portfolio occupancy was 92% as of June 30, 2025, down from 93.3% as of June 30, 2024. The decrease was due to Forever 21 closures. Our expectation for the same was pegged at 92.7%. Go-Forward Portfolio Center occupancy as of the same period was 92.8%.

Moreover, year over year, shopping center and operating expenses increased 13.3% to $79.8 million, management companies’ operating expenses grew 12.4% to $21.9 million, and leasing expenses rose 10.8% to $10.6 million.

Also, interest expenses grew 80.9% year over year to $71.9 million.

MAC’s Portfolio Activity

In April 2025, MAC closed on the sale of SouthPark for $11 million. In June 2025, the company closed on the acquisition of Class A retail center, Crabtree Mall, totaling approximately 1.3 million square feet in Raleigh, NC, for $290 million.

In July 2025, its joint venture closed on the sale of Atlas Park for $72 million.

Balance Sheet of MAC

As of Aug. 11, 2025, Macerich had around $915 million of liquidity. This included $650 million of available capacity on its revolving line of credit.

MAC’s Zacks Rank

Currently, Macerich carries a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Macerich Company Price, Consensus and EPS Surprise

Macerich Company (The) price-consensus-eps-surprise-chart | Macerich Company (The) Quote

Performance of Other Retail REITs

Regency Centers Corporation REG reported second-quarter 2025 NAREIT FFO per share of $1.16, beating the Zacks Consensus Estimate of $1.12. The figure increased 9.4% from the prior-year quarter.

REG’s results reflected healthy leasing activity. It witnessed a year-over-year improvement in the same-property NOI and base rents during the quarter.

Simon Property Group, Inc.’s SPG second-quarter 2025 real estate FFO per share of $3.05 beat the Zacks Consensus Estimate of $3.04. This compares favorably with the real estate FFO of $2.93 a year ago.

Results reflected an increase in revenues, backed by a rise in the base minimum rent per square foot and occupancy levels for SPG.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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