Mar 31

Macerich Q1 2025 Earnings Report

Macerich reported a net loss and flat adjusted EPS, but achieved strong leasing performance in Q1 2025.

Key Takeaways

Macerich saw continued leasing momentum in Q1 2025 despite posting a net loss. The company maintained flat adjusted EPS and achieved significant growth in renewal leases. Portfolio occupancy slightly declined, mainly due to the temporary exit of specialty tenants.

Net loss narrowed to $50.1M from $126.7M YoY.

Signed leases for 2.6M sq ft, a 156% increase YoY.

Adjusted EPS held flat at $0.33.

Portfolio occupancy declined to 92.6%, down 0.8pp YoY.

Total Revenue
$249M
Previous year: $212M
+17.7%
EPS
$0.33
Previous year: $0.31
+6.5%
Portfolio Occupancy
92.6%
Previous year: 93.4%
-0.9%
Leases Signed (Sq Ft)
2.6M
Base Rent Re-leasing Spread
10.9%
Cash and Equivalents
$253M
Previous year: $225M
+12.5%
Total Assets
$8.68B
Previous year: $7.36B
+17.9%

Macerich

Macerich

Macerich Revenue by Geographic Location

Forward Guidance

Macerich emphasized a robust leasing pipeline and stable adjusted earnings, but acknowledged pressure on occupancy and portfolio transition activity.

Positive Outlook

  • Strong leasing volume driven by renewals.
  • New store leases expected to yield $80M in additional revenue.
  • 14 consecutive quarters of positive re-leasing spreads.
  • Substantial refinancing activity completed.
  • Flat adjusted EPS at $0.33 YoY.

Challenges Ahead

  • Occupancy dropped 1.5pp QoQ due to temporary tenant departures.
  • Same center NOI growth was minimal at 0.9%.
  • Higher depreciation and interest expense impacted net income.
  • Sale of underperforming assets continues to reduce footprint.
  • Santa Monica Place subject to potential loan giveback.