Macerich Q2 2022 Earnings Report
Key Takeaways
Macerich reported a net loss of $15.4 million, or $0.07 per share-diluted, for the second quarter of 2022. However, same center net operating income, excluding lease termination income, increased by 5.4% compared to the same period in 2021. Portfolio occupancy increased to 91.8%, and the company signed 27% more new and renewal leases for 74% more square footage than in Q2 2021. Portfolio tenant sales per square foot reached a record high of $860.
Net loss attributable to the Company was $15.4 million, or $0.07 per share-diluted.
Funds from Operations (FFO), excluding financing expense in connection with Chandler Freehold, was $102.9 million, or $0.46 per share-diluted.
Same center net operating income (NOI), excluding lease termination income, increased 5.4%.
Portfolio occupancy was 91.8%, a 2.4% increase compared to June 30, 2021.
Macerich
Macerich
Forward Guidance
The company narrowed the ranges of its 2022 guidance for both estimated EPS-diluted and FFO per share-diluted, excluding financing expense in connection with Chandler Freehold. They also increased the guidance range midpoint for estimated 2022 FFO per share-diluted, excluding financing expense in connection with Chandler Freehold, and decreased the guidance range midpoint for estimated 2022 EPS-diluted.
Positive Outlook
- FFO per share – diluted, excluding financing expense in connection with Chandler Freehold is expected to be between $1.92 and $2.04
- Assumes no further government-mandated shutdowns of properties
- Does not assume any sale of common equity during 2022
- Cash Same Center Net Operating Income (“NOI”) Growth, excluding Lease Termination Income is expected to be 5.50 %-6.75%
- Lease termination income is expected to be $26 million
Challenges Ahead
- Estimates do not include possible future gains or losses or the impact on operating results from possible future property acquisitions or dispositions, other than land sales.
- Interest expense is expected to be $272 million
- Bad debt expense is expected to be $1 million
- Straight-line rental income is expected to be $3 million
- Amortization of acquired above and below-market leases (net-revenue) is expected to be $5 million