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    MAC
    Earnings call· Jun 2026(Q2 FY26)

    MACERICH Q2 FY26 earnings call MAC

    Aug 4, 2026 Source

    Executive summary

    The Macerich Company Q2 FY26 — Strong Operational Performance and Strategic Acquisitions Drive Growth

    The Macerich Company delivered strong Q2 FY26 results, driven by robust leasing activity and operational improvements across its portfolio. The "Path Forward 3.0" plan is ahead of schedule, with significant progress in leasing, dispositions, and balance sheet strengthening. The company is actively pursuing accretive acquisition opportunities, leveraging its integrated operating platform and financial flexibility, while also addressing debt maturities and refining its portfolio.

    Highlights

    5

    • FFO as adjusted was $0.35 per diluted share in Q2 FY26.

    • Go-forward portfolio NOI grew 3.8% in Q2 FY26.

    • Portfolio sales reached a new company high of $919 per square foot, with the go-forward portfolio at $954 per square foot.

    • Leased occupancy for the go-forward portfolio reached 95.5%, up 270 basis points year-over-year.

    • The leasing speedometer for the 5-year plan is at 88% completion, ahead of the 85% midyear target.

    Concerns

    3

    • A $76 million loan at the 29th Street property remains in default after its February maturity date, with discussions ongoing.

    • The company is addressing remaining 2026 debt maturities through potential asset sales, refinancings, loan modifications, or property givebacks.

    • Year-to-date dispositions are $30 million, with $100 million under contract, against a target of $300 million to $400 million by year-end.

    Guidance & targets

    10
    CategoryTargetConfidence
    Go-Forward Portfolio NOI Growth
    at least 3%
    high materiality
    High
    Go-Forward Portfolio NOI Growth
    north of 8%
    high materiality
    High
    Go-Forward Portfolio NOI Growth
    a little bit higher than '27
    high materiality
    High
    Signed-Not-Open (SNO) Pipeline Total Opportunity
    $140 million
    high materiality
    High
    SNO Pipeline Annual Contribution
    $30 million
    medium materiality
    High
    SNO Pipeline Annual Contribution
    $40 million to $45 million
    medium materiality
    High
    SNO Pipeline Annual Contribution
    $45 million to $50 million
    medium materiality
    High
    Store Openings Completion Percentage
    ahead of our 60% year-end target
    low materiality
    High
    Net Debt to Adjusted EBITDA
    6x, plus or minus range
    high materiality
    High
    Additional Asset Dispositions
    $300 million to $400 million
    medium materiality
    Medium

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    Go-Forward Portfolio
    Represents centers where the company is actively investing, showing strong demand and significant year-over-year occupancy gains.
    NOI (Q2 FY26): $185 millionNOI (YTD FY26): $360 millionSales per square foot: $954Leased Occupancy: 95.5%Leased Occupancy (YoY change): up 270 bpsTraffic (YTD FY26): flatNOI Growth (YTD FY26): 2.5%Sales Growth (YTD FY26): 3.7%
    		—3.8%——
    Total Portfolio (All Centers)
    Includes all centers, with portfolio sales reaching a new high watermark.
    NOI (Q2 FY26): $211 millionNOI (YTD FY26): $400 millionSales per square foot: $919Occupancy: 94%Occupancy (QoQ change): up 60 bps
    		————
    Late-Stage Transformation Centers (Kierland Commons, Broadway Plaza, Scottsdale Fashion Square, Tysons Corner)
    These centers are showing tremendous lift from the transformation strategy, significantly outperforming the go-forward portfolio average.
    Traffic (YTD FY26): low teens increaseNOI Growth (YTD FY26): close to 9%Sales Growth (YTD FY26): low double-digit increases
    		————
    Mid-Stage Transformation Centers (Los Cerritos, Chandler)
    These centers are also outperforming the go-forward portfolio average, with significant new tenant construction underway.
    Traffic (YTD FY26): mid-single-digit increaseNOI Growth (YTD FY26): mid-single-digitSales Growth (YTD FY26): mid-single-digit
    		————
    Scottsdale Fashion Square
    Experienced a significant sales increase year-to-date.
    		—18%——

    Operational metrics

    31
    FFO as adjusted per share
    $0.35
    Q2 FY26

    FFO as adjusted was $0.35 per diluted share

    FFO per share on core plan
    $1.90
    Future

    we're at $1.90 and 6x debt-to-EBITDA on the core plan.

    FFO accretion per share
    $0.02 to $0.04
    Future

    If we invest that $372 million of forward equity that we have, 100% equity on an acquisition in the 9% to 11% stabilized yield area, that's going to generate about $0.02 to $0.04 incremental FFO accretion

    Net Debt to Adjusted EBITDA reduction
    25 to low 30 bps
    Future

    lower our leverage 25 to low 30 bps debt to EBITDA.

    Net Debt to Adjusted EBITDA
    7.3xalmost a half turn lower than last quarter and over a 1.5 turn lower than at the outset of the Path Forward plan
    Q2 FY26

    net debt to adjusted EBITDA at the end of the second quarter was 7.3x

    Leasing speedometer completion
    88%ahead of our 85% midyear target
    Q2 FY26

    Our leasing speedometer, which tracks new deal completion in the 5-year plan is at 88%, ahead of our 85% midyear target.

    Store openings completion percentage
    57%up from 50% at NAREIT
    Q2 FY26

    As of NAREIT, we were at 50%. And today, we are at 57%.

    New deals remaining in 5-year plan
    170
    Q2 FY26

    Of the 1,000 new deals in our 5-year plan, we only have 170 left to achieve our goal, 2/3 of which are in the letter of intent stage.

    2026 Lease expirations committed
    93%
    Q2 FY26

    We have commitments on approximately 93% of our 2026 expiring square footage that is expected to renew and remain open with another 6% in the letter of intent stage.

    2027 Lease expirations committed
    50%ahead of pace compared to this time last year
    Q2 FY26

    as we look specifically at our 2027 expirations, we're just about 50% committed with another 40% in the letter of intent stage.

    New and renewal leases signed
    1.3 million
    Q2 FY26

    we signed 1.3 million square feet of new and renewal leases, of which 645,000 square feet were new deals

    New deals signed
    645,000right on par with Q2 FY25
    Q2 FY26

    645,000 square feet were new deals, which is right on par with what we leased in the second quarter of 2025.

    New stores opened
    350,000
    Q2 FY26

    In the second quarter, we opened almost 350,000 square feet of new stores.

    Zara Tysons store size
    45,000
    Q2 FY26

    At 45,000 square feet, this is the first true flagship Zara in our portfolio

    Zara Tysons sales ranking
    #1 in US, #5 in world
    Opening weekend

    in its opening weekend, Zara Tysons was ranked #1 in sales in the United States and #5 in the world.

    SNO pipeline from development
    $20 million
    Q2 FY26

    the $124 million roughly breaks down $20 million to our development pipeline of Scottsdale, Green Acres and Flatiron

    SNO pipeline from redevelopments
    $20 million
    Q2 FY26

    $20 million to the -- what we call the redevelopments, which is all the anchors that we're opening up

    SNO pipeline from other leasing
    $84 million
    Q2 FY26

    the remainder of the $84 million is the rest of the leasing of the portfolio.

    Physical Occupancy
    91%
    Q2 FY26

    Physical occupancy at the end of Q2 was 91%.

    Loan extension
    4-year
    FY26

    closed on a 4-year loan extension through November 29 at our South Plains property

    Revolving credit facility
    $900 million
    FY26

    completed an amended and restated $900 million revolving credit facility

    Mortgage loan
    $115 million
    FY26

    closed on a new $115 million 5-year mortgage loan at Deptford Mall.

    Total liquidity
    $1.2 billion
    Q2 FY26

    We currently have approximately $1.2 billion in liquidity, including $900 million of capacity on our revolving line of credit.

    Unsettled forward equity proceeds
    $372 million
    Q2 FY26

    This excludes the net value of unsettled forward equity proceeds of approximately $372 million.

    Total dispositions completed
    $1.3 billionrepresenting about 2/3 of initial target
    Q2 FY26

    To date, we have completed approximately $1.3 billion in total dispositions, representing about 2/3 of our initial disposition target

    Dispositions closed
    $30 million
    YTD FY26

    Year-to-date, we have closed on about $30 million in total dispositions

    Dispositions under contract
    $100 million
    Q2 FY26

    and we now have approximately $100 million under contract to sell.

    Scheels at Chandler annual visitors
    3.1 million
    Trailing 12 months

    the Scheels store at Chandler, that store in itself right now is drawing 3.1 visitors to its store according to Pacer in the last 12 months.

    Dick's House of Sport at Freehold customers
    over 800,000
    9 months operating history

    Dick's House of Sport, we have about 9 months operating history at Freehold with them. And according to our math, they're drawing over 800,000 customers into the center from their store. So we expect them to achieve a $1 million incremental customer run rate.

    Annual customers through doors
    14 million, 15 million
    Annual

    They're driving 14 million, 15 million annual customers through the doors

    Acquisition pipeline split
    half on market, half off market
    Q2 FY26

    It's about -- half of our pipeline is on market, half is off market right now.

    Industry KPIs

    3
    MetricValueDetails
    Investment volume and initial cash yield9% to 11%%
    Sourced opportunity volume and selectivityhalf on market, half off market
    Blended acquisition cap rate and spread vs cost9% to 11%%

    Orderbook & backlog

    2
    Signed-Not-Open (SNO) Pipeline$124 millionQ2 FY26

    Total opportunity is $140 million; $20M development, $20M redevelopments, $84M other leasing.

    Dispositions Under Contract$100 millionQ2 FY26

    Part of $300M-$400M target for FY26.

    Deals & partnerships

    4
    PenFedBranding partnership for PenFed Plaza at Tysons Corner.

    PenFed Plaza transaction at Tysons Corner, where Dick's House of Sport is located.

    Annapolis Mall sellerAcquisition of Annapolis Mall.funded by $450 million net proceeds

    Acquisition of Annapolis Mall, which was an off-market deal, funded by net proceeds of approximately $450 million from a public offering.

    Crabtree sellerAcquisition of Crabtree.

    Acquisition of Crabtree, which was a fully marketed deal.

    Joint Venture partner (West Acres)Sale of joint venture interest in West Acres.$1 million plus assumption of $13 million debt

    Closed on the sale of joint venture interest in West Acres for $1 million plus the assumption of $13 million of debt at the company's share.

    Capital programs

    3
    Green Acres Developmentunderway

    Mentioned as one of the three major redevelopments nearing completion in H2 FY26.

    Flatiron Developmentunderway

    Mentioned as one of the three major redevelopments nearing completion in H2 FY26, in partnership with the city of Broomfield.

    Scottsdale Developmentnearing completion

    Mentioned as one of the three major redevelopments in its last stages in H2 FY26.

    Risks & headwinds

    3
    Loan default at 29th Street propertyFebruary maturity date (past)

    $76 million loan (pro rata share)

    Mitigation: currently in discussions with the lender on the terms of this loan

    Remaining 2026 debt maturitiesFY26

    Undisclosed amount

    Mitigation: proactively addressing... through a combination of potential asset sales, refinancings, loan modifications or if necessary, property givebacks

    Macroeconomic factorsNear-term

    Undisclosed

    Mitigation: Forward equity in place to protect balance sheet.

    What to watch in Q3 FY26

    5

    Store Openings Completion Percentage

    Year-end FY26
    Current57%
    Targetahead of 60% year-end target

    Why it matters

    Indicates progress in converting signed leases into rent-paying tenants, directly impacting future NOI growth.

    As of NAREIT, we were at 50%. And today, we are at 57%. We expect to be ahead of our 60% year-end target at the end of this year.

    Q&A highlights

    6

    How do anchor openings impact the rest of the center and compound over time, especially beyond 2028?

    Jack Hsieh explained a three-stage process: 1) signing an anchor enables re-leasing of inline space, 2) store opening brings traffic and energy, and 3) full effect after two years with increased pricing power. He cited examples like Scheels at Chandler drawing 3.1 million visitors and Dick's House of Sport at Freehold drawing over 800,000 customers, leading to further leasing and pricing power.

    “If I were to use an example of the Scheels store at Chandler, that store in itself right now is drawing 3.1 visitors to its store according to Pacer in the last 12 months. It's the #1 Scheels in the system.”

    asked by Andrew Reale · answered by Jackson Hsieh

    2 min read6 chapters

    Detailed Narrative

    01

    Path Forward 3.0 Progress

    The company is ahead of schedule on its "Path Forward 3.0" plan, focusing on simplifying the business, improving operational performance, and reducing leverage. Key achievements include significant progress in leasing, dispositions, and balance sheet improvement, positioning the company for sustainable NOI growth and new external growth opportunities. The plan is considered substantially derisked, with structural tailwinds strengthening the business.

    02

    Leasing Momentum and Strategy

    The leasing speedometer is at 88% completion for the 5-year plan, exceeding the midyear target of 85%. The focus has shifted to converting signed leases to store openings, with 57% of the pipeline now open, aiming to surpass the 60% year-end target. This strategic approach, targeting best-in-class retailers, is reimagining and elevating the portfolio, leading to higher occupancy and sales productivity.

    03

    Acquisition Strategy

    Macerich is actively evaluating a robust pipeline of on- and off-market acquisition opportunities, the most since the Path Forward plan began. Prioritization is given to assets that are accretive to the plan, located in strong trade areas with clear catalysts for value addition through leasing and development, and financeable within leverage targets. The company leverages its integrated operating platform and financial flexibility for speed and certainty in transactions, aiming for stabilized yields of 9% to 11%.

    04

    Balance Sheet Strengthening

    The company has made strong progress on balance sheet initiatives, including a $450 million public offering for Annapolis Mall and a forward sale agreement for $372 million to fund future acquisitions. Net debt to adjusted EBITDA improved to 7.3x, and would be below 7x inclusive of unsettled forward equity proceeds, with a target to reach the 6x range. Total dispositions completed to date are $1.3 billion, representing two-thirds of the initial target.

    05

    Impact of Anchor Replacements

    The strategy of replacing anchors has a multi-stage positive effect on centers. Initial signing enables re-leasing of inline space, store openings drive traffic and energy, and the full effect is realized after two years with increased pricing power and further leasing opportunities. Examples like Scheels at Chandler drawing 3.1 million visitors and Dick's House of Sport at Freehold drawing over 800,000 customers demonstrate significant customer draw and subsequent positive impact on the surrounding retail.

    06

    Portfolio Transformation and NOI Growth

    The company is seeing significant operational lift from its transformation strategy, particularly in late-stage assets like Kierland Commons and Tysons Corner, which show low teens traffic increases and high single-digit NOI growth. This success provides confidence in achieving accelerated NOI growth in 2027 and 2028 as the SNO pipeline matures, with a 3-year NOI CAGR midpoint of 6.5% for FY26-FY28.

    AI-generated summary of the company’s earnings call. Not investment advice.