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 DetailThe 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 ActivityIn 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 MACAs 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 RankCurrently, 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 REITsRegency 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.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Simon Property Group, Inc. (SPG): Free Stock Analysis Report Macerich Company (The) (MAC): Free Stock Analysis Report Regency Centers Corporation (REG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks