How many acquisitions can be reasonably expected over the next 12-18 months, considering risk mitigation and human capital?

Jack Hsieh stated that the company has a robust pipeline of on- and off-market opportunities with stabilized yields of 9% to 11%. He emphasized the company's competitive advantages (integrated platform, tenant relationships, capital without mortgage debt, speed, certainty) and the accretive nature of deploying the $372 million forward equity, which would generate $0.02-$0.04 FFO accretion and lower leverage by 25-30 bps. He declined to give a specific number but expressed high confidence in deploying the capital. “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 and lower our leverage 25 to low 30 bps debt to EBITDA.”

What is the risk that the $372 million forward equity capital won't be deployed by June of next year?

Jack Hsieh emphatically stated that it's "not possible" for the capital not to be deployed. He explained that the forward equity was a "no-brainer" given the large pipeline and the positive impact on debt-to-EBITDA (down to 5.75% range) and FFO accretion. He indicated the capital would be used "way before June of next year." “It's not possible. I'm just going to tell you, Craig, it's just not possible. The reason why we decided to pursue the forward equity, we have so many good things happening in terms of leasing...”

Following 3.8% NOI growth in Q2, will there be headwinds in H2, or is this an inflection point for continued higher growth?

Dan Swanstrom confirmed the expectation of "at least 3%" NOI growth for FY26, implying 3.5%+ for H2. He noted a "meaningful ramp" for FY27 and FY28, with a 3-year CAGR midpoint of 6.5% (FY26-FY28), suggesting north of 8% NOI growth in FY27 and FY28, with FY28 slightly higher than FY27. Jack Hsieh added that late-stage transformed centers are already showing high single-digit NOI growth. “So if you just for simple math, assume the 3% in '26, that implies north of 8% NOI growth in '27 and '28.”

MAC

MACERICH (MAC) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Real Estate· Aug 4, 2026

Source: earnings call transcript

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

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

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

Category	Target	Timeline	Confidence
Go-Forward Portfolio NOI Growth	at least 3% high materiality	FY26	High
Go-Forward Portfolio NOI Growth	north of 8% high materiality	FY27	High
Go-Forward Portfolio NOI Growth	a little bit higher than '27 high materiality	FY28	High
Signed-Not-Open (SNO) Pipeline Total Opportunity	$140 million high materiality	Open-ended	High
SNO Pipeline Annual Contribution	$30 million medium materiality	FY26	High
SNO Pipeline Annual Contribution	$40 million to $45 million medium materiality	FY27	High
SNO Pipeline Annual Contribution	$45 million to $50 million medium materiality	FY28	High
Store Openings Completion Percentage	ahead of our 60% year-end target low materiality	FY26	High
Net Debt to Adjusted EBITDA	6x, plus or minus range high materiality	Open-ended	High
Additional Asset Dispositions	$300 million to $400 million medium materiality	FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
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%	—	—

MAC operating KPIs by quarter

MAC operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Occupancy rate	93.4% Occupancy at the end of the first quarter was 93.4%, down 60 basis points sequentially. Source: earnings call transcript	94% Occupancy at the end of the second quarter was 94%, up 60 basis points from the first quarter. Source: earnings call transcript	+0.6 pt
Occupancy rate Go-forward portfolio	94.5% The go-forward portfolio occupancy at the end of the first quarter was 94.5%, reflecting strong underlying demand for space in our best centers. Source: earnings call transcript	95.5% The go-forward portfolio occupancy at the end of the second quarter was 95.5%, and that's up 60 basis points sequentially and up 270 basis points year-over-year, continuing to reflect strong demand for space in our best centers. Source: earnings call transcript	+1 pt

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Signed-Not-Open (SNO) Pipeline $124 million Q2 FY26

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

Dispositions Under Contract $100 million Q2 FY26

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

Deals & partnerships

PenFed Branding partnership for PenFed Plaza at Tysons Corner.

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

Annapolis Mall seller Acquisition 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 seller Acquisition 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

Green Acres Development underway

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

Flatiron Development underway

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

Scottsdale Development nearing completion

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

Risks & headwinds

Loan default at 29th Street property February 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 maturities FY26

Undisclosed amount

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

Macroeconomic factors Near-term

Undisclosed

Mitigation:Forward equity in place to protect balance sheet.

What to watch in Q3 FY26

Store Openings Completion Percentage

Year-end FY26

Current 57%

Target ahead 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.

Find out whether MAC delivers this. Inve re-checks your case every morning.

Q&A highlights

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 read 6 chapters

Detailed narrative

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.

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.

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%.

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.

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.

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.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.