Macerich Q3 FFO & Revenues Miss Estimates, Occupancy Declines Y/Y

The Macerich Company MAC reported third-quarter 2025 funds from operations (FFO) per share of 35 cents, lagging the Zacks Consensus Estimate of 36 cents. The reported figure compares unfavorably with the prior-year quarter’s 38 cents.

Results reflected a decline in occupancy and a rise in interest 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 $253.3 million increased 15% from the year-ago quarter’s figure. However, the metric missed the Zacks Consensus Estimate of $257 million.

MAC’s Q3 in Detail

The portfolio tenant sales per square foot for spaces less than 10,000 square feet for the trailing 12 months ended Sept. 30, 2025, came in at $867, up from $834 year over year.

In the third quarter, Macerich signed leases encompassing 1.5 million square feet. On a comparable center basis, this reflected an 81% increase in the amount of leased square footage signed year over year.

Go-Forward Portfolio Centers' NOI, excluding lease termination income, rose 1.7% year over year to $178.8 million.

For the trailing 12 months ended Sept. 30, 2025, base rent re-leasing spreads were 5.9% more than the expiring base rent, making it the 16th consecutive quarter of positive base rent leasing spreads.

However, portfolio occupancy was 93.4% as of Sept. 30, 2025, down from 93.7% as of Sept. 30, 2024. Our expectation for the same was pegged at 92.3%. Go-Forward Portfolio Center occupancy as of the same period was 94.3%.

However, interest expenses grew 27.3% year over year to $72.7 million.

MAC’s Portfolio Activity

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

In August 2025, MAC closed on the sale of Lakewood Center for $332 million and Valley Mall for $22 million.

Balance Sheet of MAC

As of Nov. 4, 2025, Macerich had around $1 billion of liquidity, including $650 million of available capacity on its revolving line of credit.

In the third quarter, MAC sold 2.8 million shares of common stock for around $50 million of net proceeds through its at-the-market program.

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.

Macerich Company (The) 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 third-quarter 2025 NAREIT FFO per share of $1.15, in line with the Zacks Consensus Estimate. The figure increased 7.5% 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. The company increased its 2025 NAREIT FFO per share outlook.

Kimco Realty Corp. KIM reported third-quarter 2025 FFO per share of 44 cents, beating the Zacks Consensus Estimate of 43 cents. The metric rose 2.3% from the year-ago quarter.

Results reflected higher same-property NOI due to a rise in minimum rents. Higher interest expenses acted as a dampener. This retail REIT raised its quarterly dividend and 2025 FFO per share guidance range.

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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