Loading...
•
Jun 30, 2023
Macerich Q2 2023 Earnings Report
Macerich's operating metrics improved in Q2 2023, with occupancy and leasing spreads increasing, and strong retailer demand.
Key Takeaways
Macerich reported a net loss of $15.0 million, or $0.07 per share-diluted, for the second quarter of 2023. However, same center NOI, excluding lease termination income, increased by 5.6%. Portfolio occupancy improved to 92.6%, and re-leasing spreads showed a strong improvement, being 11.3% greater than expiring base rent. The company signed 191 leases for 1.4 million square feet of space, a 21% increase compared to Q2 2022.
Net loss attributable to the Company was $15.0 million, or $0.07 per share-diluted.
Same center NOI, excluding lease termination income, increased 5.6%.
Portfolio occupancy was 92.6%, a 0.8% increase compared to June 30, 2022.
Re-leasing spreads were 11.3% greater than expiring base rent.
Macerich
Macerich
Forward Guidance
Macerich narrowed the ranges of its 2023 guidance for both estimated EPS-diluted and FFO per share-diluted, excluding financing expense in connection with Chandler Freehold. This results in a decrease to the midpoint of our 2023 guidance for EPS-diluted, and no change to the midpoint of our 2023 guidance for FFO per share-diluted, excluding financing expense in connection with Chandler Freehold.
Positive Outlook
- Cash Same Center Net Operating Income (“NOI”) Growth, excluding Lease Termination Income is expected to grow between 3.75% - 4.50%.
- Lease termination income is expected to be $7 million
- Straight-line rental income is expected to be $2 million
- Amortization of acquired above and below-market leases (net-revenue) is expected to be $7 million
- Capitalized interest is expected to be $30 million
Challenges Ahead
- EPS-diluted is expected to be between ($0.32)-($0.26)
- FFO per share-diluted is expected to be between 1.78 - 1.84
- Impact of financing expense in connection with Chandler Freehold is expected to be between 0.01 - 0.01
- FFO per share – diluted, excluding financing expense in connection with Chandler Freehold is expected to be between $1.77 -$1.83
- Interest expense is expected to be $323 million