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Macerich's Q1 FFO & Revenues Beat Estimates, Occupancy Dips Y/Y

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The Macerich Company (MAC - Free Report) reported first-quarter 2025 funds from operations (FFO) per share of 33 cents, excluding financing expenses in relation to Chandler Freehold, gain on extinguishment of debt, accrued default interest expenses and loss on non-real estate investments, outpacing the Zacks Consensus Estimate of 31 cents. The figure remained unchanged year over year.

The results reflect solid leasing volume, driving same-center net operating income (NOI) and higher base rent re-leasing spreads. However, occupancy dipped, and expenses climbed year over year.

Quarterly revenues of $249.2 million were higher than the year-ago quarter’s $208.8 million. Moreover, the figure surpassed the Zacks Consensus Estimate of $218.9 million.

MAC’s Q1 in Detail

The portfolio tenant sales per square foot for spaces less than 10,000 square feet for the trailing 12 months ended March 31, 2025 came in at $837, remaining unchanged year over year.

In the first quarter, Macerich signed leases encompassing 2.6 million square feet. On a comparable center basis, this reflected a 156% increase in the amount of leased square footage signed year over year. The increase resulted from the strong renewal leasing volume of 2.3 million square feet.

Same-center NOI, excluding lease termination income, rose 0.9% year over year to $191.3 million. We estimated the same to increase 0.8% year over year.

For the trailing 12 months ended March 31, 2025, base rent re-leasing spreads were 10.9% more than the expiring base rent, making it the 14th consecutive quarter of positive base rent leasing spreads.

However, portfolio occupancy was 92.6% as of March 31, 2025, down from 93.4% as of March 31, 2024. Our expectation for the same was pegged at 94.3%. The decrease was due to temporary and holiday specialty tenants.

Moreover, year over year, shopping center and operating expenses increased 14.8% to $85.2 million, management companies’ operating expenses grew 8.3% to $20.8 million, and leasing expenses rose 6.6% to $11.2 million.

Also, interest expenses grew significantly year over year to $69.1 million.

MAC’s Portfolio Activity

During the first quarter, MAC closed on the dispositions of the Wilton Mall for $25 million. In April 2025, the company closed on the sale of SouthPark for $11 million.

Balance Sheet of MAC

As of May 12, 2025, Macerich had around $995 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).

Macerich Company (The) Price, Consensus and EPS Surprise

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 - Free Report) reported first-quarter 2025 NAREIT funds from operations (FFO) per share of $1.15, outpacing the Zacks Consensus Estimate of $1.14. The figure increased 6.5% from the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Results reflected healthy leasing activity. It witnessed a year-over-year improvement in the same-property net operating income and base rents during the quarter. REG currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Kimco Realty Corp. (KIM - Free Report) reported first-quarter 2025 FFO per share of 44 cents, beating the Zacks Consensus Estimate of 42 cents. The metric grew 12.8% from the year-ago quarter.

Results reflected better-than-expected growth in revenues, though a rise in interest expenses acted as a dampener. KIM currently carries a Zacks Rank #2.

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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