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Macerich MAC reported funds from operations (FFO) per share, excluding financing expenses in connection with Chandler Freehold, accrued default interest expense and loss on non-real estate investments of 38 cents, which missed the Zacks Consensus Estimate of 40 cents. The figure decreased 15.6% from the year-ago quarter’s 45 cents.
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Results reflected higher interest expenses on a year-over-year basis. However, this retail REIT experienced an increase in same-center net operating income (NOI), including lease termination income, from the prior-year period, backed by a higher base rent re-leasing spread.
Quarterly revenues of $220.2 million were higher than the year-ago quarter’s $218.2 million. The figure surpassed the Zacks Consensus Estimate of $219.7 million.
Behind MAC’s Headlines
Same-center NOI, including lease termination income, increased 1.9% year over year to $180.8 million.
The portfolio tenant sales per square foot for spaces less than 10,000 square feet for the trailing 12 months ended Sept. 30, 2024, came in at $834 compared with $847 for the same period ended Sept. 30, 2023.
During the reported quarter, Macerich signed leases encompassing 0.83 million square feet. On a comparable center basis, it reflected a 16% year-over-year increase in leased square footage.
As of Sept. 30, 2024, portfolio occupancy was 93.7%, up 40 basis points from 93.3% reported in the prior quarter. Our expectation for the portfolio occupancy was 93.8%.
For the 12 months ended Sept. 30, 2024, base rent re-leasing spreads were 11.9% more than the expiring base rent.
During the reported quarter, interest expenses increased by 7% to $57.1 million.
MAC’s Balance Sheet
As of Nov. 6, 2024, Macerich had around $667 million of liquidity. This included $505 million of available capacity on its $650 million revolving line of credit.
As of Sept. 30, 2024, the company had a total net debt of $6.19 billion and net debt to adjusted EBITDAre of 8.23X.
MAC’s Dividend Update
On Oct. 31, 2024, MAC announced a quarterly cash dividend of 17 cents per share of common stock. The dividend is payable on Dec. 2, 2024 to stockholders of record at the close of business on Nov. 12, 2024
Currently, Macerich carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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
Simon Property Group, Inc. SPG reported a third-quarter FFO per share of $2.84, missing the Zacks Consensus Estimate of $3. However, the figure decreased from $3.20 reported in the year-ago period.