Macerich (NYSE:MAC) Releases Earnings Results, Misses Estimates By $0.42 EPS

Macerich (NYSE:MAC) issued its earnings results on Wednesday. The real estate investment trust reported ($0.06) EPS for the quarter, missing analysts’ consensus estimates of $0.36 by ($0.42), Zacks reports. The firm had revenue of $260.07 million for the quarter, compared to analyst estimates of $251.31 million. Macerich had a negative return on equity of 3.73% and a negative net margin of 9.76%. The business’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.35 EPS.

Here are the key takeaways from Macerich’s conference call:

• Third-quarter FFO as adjusted was $0.37 per diluted share, while Go-Forward Portfolio NOI increased 4.7%; nine-month NOI growth was 3.3%, ahead of the company’s initial full-year expectations. Macerich expects meaningful acceleration in 2027–2028 as signed-but-not-open tenants commence rent, with estimated annual SNO contributions of $40–$45 million in 2027 and $45–$50 million in 2028.
• Leasing and occupancy continued to improve: Go-Forward leased occupancy reached 96.1%, up 180 basis points year over year, and the company has completed or approved 91% of its five-year leasing plan. Portfolio sales also reached a record $972 per square foot in the Go-Forward Portfolio.
• New anchor and experiential openings are generating traffic gains, which management said are supporting inline leasing and sales. Examples included Freehold Raceway Mall traffic rising 9% over the year following DICK’S House of Sport’s opening, and Annapolis Mall traffic increasing 20% over the first month after its opening.
• Macerich is under contract to acquire another mall, expects to close by year-end, and said the deal should be accretive to 2027 and 2028 FFO per share, with a targeted stabilized yield of 9%–11%. The company plans to fund it with unsettled forward equity and said its acquisition pipeline remains robust, while emphasizing disciplined deal selection.
• Despite balance-sheet progress, net debt to adjusted EBITDA was 7.3x at quarter-end, and loans on Twenty Ninth Street, Fashion Outlets of Niagara Falls, and Fresno Fashion Fair are in default as the company negotiates with lenders. Macerich is pursuing asset sales, refinancings, loan modifications, or potential property givebacks to address debt and meet its leverage goals.

Macerich Stock Performance

Shares of NYSE MAC traded down $0.22 during trading hours on Friday, reaching $24.80. The stock had a trading volume of 451,081 shares, compared to its average volume of 2,952,446. The firm has a market cap of $7.03 billion, a price-to-earnings ratio of -67.03, a PEG ratio of 1.86 and a beta of 2.11. The company has a current ratio of 0.88, a quick ratio of 0.88 and a debt-to-equity ratio of 1.67. Macerich has a fifty-two week low of $16.03 and a fifty-two week high of $26.67. The firm has a 50-day moving average of $23.20 and a 200-day moving average of $22.34.

Macerich Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, December 28th. Stockholders of record on Monday, December 14th will be issued a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Monday, December 14th. Macerich’s payout ratio is presently -183.78%.

Analyst Ratings Changes

A number of research firms have weighed in on MAC. JPMorgan Chase & Co. upgraded Macerich from a “neutral” rating to an “overweight” rating and set a $26.00 price target on the stock in a research note on Thursday, September 24th. Citigroup upped their price objective on Macerich from $28.00 to $29.00 and gave the stock a “buy” rating in a research report on Tuesday, August 11th. Griffin Securities set a $26.00 price objective on Macerich in a report on Tuesday, August 18th. Piper Sandler dropped their price objective on Macerich from $30.00 to $26.00 and set an “overweight” rating on the stock in a report on Monday, October 12th. Finally, The Goldman Sachs Group reissued a “sell” rating and set a $21.00 target price on shares of Macerich in a research report on Tuesday, September 1st. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Macerich presently has an average rating of “Moderate Buy” and an average target price of $26.19.

Insider Transactions at Macerich

In other Macerich news, CAO Christopher Zecchini sold 2,740 shares of Macerich stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $23.28, for a total transaction of $63,787.20. Following the transaction, the chief accounting officer owned 847 shares of the company’s stock, valued at $19,718.16. The trade was a 76.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. 0.21% of the stock is owned by corporate insiders.

Macerich Company Profile

Macerich (NYSE: MAC) is a self-managed and self-administered real estate investment trust that owns, operates and develops retail and mixed-use properties in the United States. The company’s portfolio primarily consists of regional shopping centers and high-quality malls located in major markets, with a concentration in the Western and Sun Belt regions.

Macerich generates revenue primarily through leasing retail, dining, entertainment and other commercial space to tenants. Its activities also include property management, marketing, redevelopment and the development of mixed-use projects designed to combine retail with residential, office, hotel and other uses.

The company traces its roots to the 1960s and has expanded through the acquisition, development and redevelopment of retail real estate.