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The Macerich Company MAC is well-poised to gain from its portfolio of premium shopping centers in vibrant markets.Its focus on omnichannel retailing and developing mixed-use assets is likely to support its long-term growth, along with balance sheet-strengthening moves. However, growing e-commerce adoption by consumers raises concerns for the company. Tenant bankruptcies and a substantially leveraged balance sheet remain a headwind.
In March 2025, MAC announced that it has sealed a multi-year sponsorship and member engagement agreement with PenFed Credit Union, America’s second-largest federal credit union, for its Tysons Corner Center Plaza. This arrangement will aid in elevating the brand appeal and reach of the center’s experiential marketing programs and media network, attracting millions of shoppers and PenFed members annually.
What’s Aiding MAC?
Macerich has a high concentration of premium malls in vibrant U.S. markets. These properties are located in densely populated areas, where affluent consumers with significant disposable incomes live and play, offering the company solid scope to generate decent cash flows.
Macerich has been making efforts to enhance its asset quality and customer relationships by increasing the adoption of the omnichannel model. This is likely to benefit the company. Further, the shift toward re-use and mixed-use properties through recapture and repositioning of anchor tenants remains a key emphasis, while bringing brands to new markets at its mall is likely to attract shoppers.
Macerich has been focusing on an aggressive capital-recycling program. This involves the divestiture of non-core and slower-growth assets and the usage of the proceeds to increase its presence in core markets and invest in higher-growth properties through acquisitions, developments and redevelopment initiatives and lower its leverage.
Apart from raising capital, strategic dispositions made over the years have helped reduce impending bankruptcy issues across the lower-quality disposed portfolio. For 2025, Macerich expects to incur approximately $250 to $300 million for development, redevelopment, expansion and renovations.
What’s Hurting MAC?
Given the conveniences of online shopping, growing e-commerce adoption may weigh on Macerich’s prospects. Online retailing is likely to remain a popular choice among customers, adversely impacting the market share for brick-and-mortar stores.
Macerich’s performance in the upcoming quarters is expected to be negatively impacted by the bankruptcy of Express and others. In 2024, MAC witnessed 13 bankruptcy filings from its tenants, totaling $21.7 million of annual leasing revenues at the company’s share. We expect Macerich’s total revenues to decrease by 2.8% in 2025.