Macerich (MAC) AI Stock Analysis

• Market Cap: $3.99B
• Dividend Yield: 4.48%
• Average Volume (3M): 2.53M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: 4.88%
• EPS Growth: -66.88%
• Country: US
• Employees: 615
• Sector: Real Estate
• Sector Strength: 76
• Industry: REIT - Retail
• EPS (TTM): -1.09
• Shares Outstanding: 252,648,790
• 10 Day Avg. Volume: 1,869,806
• 30 Day Avg. Volume: 2,525,079
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.43
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 19.85
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $17.80
• Price Target Upside: 17.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

Macerich's overall stock score reflects significant financial challenges, including persistent net losses and zero cash flow, which impact operational resilience. While technical indicators suggest current weakness, the stock's valuation is unattractive due to a negative P/E ratio despite a high dividend yield. Positive strides in strategic initiatives and board enhancements provide some optimism, but substantial financial and operational improvements are necessary for a higher score.

Positive Factors

Balance Sheet Management

Macerich Company achieved strong execution on its balance sheet, including raising $454 million in equity.

Financial Performance

Net debt to EBITDA has decreased to 7.99x from 8.23x in 3Q, indicating progress on financial goals.

Leasing Activity

Solid leasing progress was made with 1.1 million square feet signed in the fourth quarter and 3.7 million square feet year-to-date, with leasing volumes 15% higher year-over-year.

Negative Factors

Interest Costs

Rising interest costs may be the largest headwind to achieving $1.80 of FFO in the next 3-4 years.

Rental Income

Consolidated percentage rent decreased compared to the previous quarters.

Same Store Net Operating Income

SSNOI growth of -0.4% YoY was a bit of surprise, which may explain some of the stock weakness.

Macerich Business Overview & Revenue Model

Company Description

Macerich is a fully integrated, self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. Macerich currently owns 51 million square feet of real estate consisting primarily of interests in 47 regional shopping centers. Macerich specializes in successful retail properties in many of the country's most attractive, densely populated markets with significant presence in the West Coast, Arizona, Chicago and the Metro New York to Washington, DC corridor. A recognized leader in sustainability, Macerich has achieved the #1 GRESB ranking in the North American Retail Sector for five straight years (2015 - 2019).

How the Company Makes Money

Macerich generates revenue primarily through leasing space in its shopping centers to a diverse range of retail tenants. The company earns rental income from long-term lease agreements with retailers, which can include fixed base rents, percentage rents based on tenant sales, and reimbursement of property operating expenses. Additionally, Macerich benefits from ancillary income streams such as parking fees, advertising, and sponsorships within its properties. The company's strategic focus on high-traffic, affluent markets helps maximize occupancy rates and rental rates, contributing to its financial performance. Macerich also engages in redevelopment projects to enhance and modernize its properties, which can increase property value and attract premium tenants. Partnerships with leading retailers and brands further bolster Macerich's market presence and revenue potential.

Macerich Financial Statement Overview

Summary

Macerich demonstrates high gross profit margins but faces challenges with persistent net losses and zero cash flow generation. The elimination of debt improved leverage metrics, yet the lack of cash flow and ongoing net losses highlight the need for operational improvements.

Income Statement

Macerich shows a mixed performance in terms of profitability. The Gross Profit Margin has remained strong, with 95.5% in 2024, but the company has struggled with net profitability, as evidenced by consecutive net losses. Revenue growth was minimal at 4.2% from 2023 to 2024, suggesting limited top-line expansion. Despite strong EBIT and EBITDA margins in 2024 (66.6% and 98.7% respectively), the net income remains negative, indicating challenges in managing costs or debt-associated expenses.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 32.2% in 2024, showing reliance on equity financing. However, the Debt-to-Equity ratio improved significantly to 0.00 due to zero debt reported in 2024, which may indicate strategic deleveraging. Return on Equity is negative, highlighting profitability issues despite improved equity standing.

Cash Flow

Cash flow metrics indicate some concerns. Operating Cash Flow to Net Income ratio could not be assessed since Operating Cash Flow was zero in 2024. Free Cash Flow growth cannot be determined due to zero Free Cash Flow reported. This lack of operational cash flow and free cash flow points to potential liquidity management issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
918.20M	881.37M	859.16M	847.44M	786.03M
	Gross Profit
487.94M	486.48M	468.81M	466.55M	438.05M
	EBIT
4.84M	0.00	144.78M	141.06M	-102.25M
	EBITDA
326.90M	190.72M	436.39M	452.19M	155.70M
	Net Income Common Stockholders
-194.12M	-274.06M	-65.08M	14.26M	-245.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
89.86M	94.94M	100.32M	112.45M	465.30M
	Total Assets
8.57B	7.51B	8.09B	8.35B	9.18B
	Total Debt
5.06B	4.31B	4.50B	4.61B	6.13B
	Net Debt
4.97B	4.21B	4.40B	4.50B	5.66B
	Total Liabilities
5.72B	4.99B	5.14B	5.17B	6.74B
	Stockholders Equity
2.76B	2.45B	2.87B	3.05B	2.26B
Cash Flow		Free Cash Flow
283.44M	295.50M	239.61M	175.44M	53.32M
	Operating Cash Flow
283.44M	295.50M	337.51M	286.37M	124.84M
	Investing Cash Flow
19.79M	52.54M	-1.40M	234.97M	-202.85M
	Financing Cash Flow
-316.05M	-338.89M	-321.94M	-837.02M	446.45M

Macerich Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 15.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAC, the sentiment is Neutral. The current price of 15.19 is above the 20-day moving average (MA) of 14.43, below the 50-day MA of 16.29, and below the 200-day MA of 17.68, indicating a neutral trend. The MACD of -0.43 indicates Negative momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 75.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MAC.

Macerich Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRT	68 Neutral	$4.71B	112.74	0.87%	3.26%	-2.94%	―
PECO	68 Neutral	$4.92B	63.55	3.09%	3.39%	9.27%	19.51%
CUZ	67 Neutral	$4.74B	94.57	1.15%	4.53%	6.71%	-45.29%
KRG	65 Neutral	$4.95B	365.26	0.81%	4.67%	4.09%	-75.82%
SBRA	63 Neutral	$4.19B	32.82	4.57%	6.89%	7.22%	809.92%
Sector *	60 Neutral	$2.79B	11.37	0.20%	8519.74%	6.07%	-14.95%
MAC	53 Neutral	$3.99B	―	-7.50%	4.48%	4.88%	-66.88%

Macerich Corporate Events

Macerich Director Eric Brandt Announces Departure

On March 12, 2025, Eric K. Brandt informed the Board of Directors of The Macerich Company that he will not seek re-election at the 2025 annual meeting of stockholders. Mr. Brandt, who has been a director since 2018 and serves as chair of the capital allocation committee and a member of the compensation committee, will maintain his roles until the meeting. His decision was not due to any disagreements with the company. Consequently, the Board will reduce its size from nine to eight members after the meeting. The company expressed gratitude for Mr. Brandt’s contributions.

Macerich Advances Path Forward Plan with Key Acquisitions

In the fourth quarter of 2024, Macerich made significant strides in executing its Path Forward Plan, which includes simplifying its business, improving operational performance, and reducing leverage. The company acquired a 40% interest in the Pacific Premier Retail Trust portfolio for $122 million, completed a public offering of 23 million shares raising approximately $454 million, and sold several properties to improve its balance sheet. Despite a net loss of $211.2 million for the quarter, Macerich maintained a strong leasing performance with a portfolio occupancy of 94.1% and signed leases for 3.7 million square feet of space throughout the year.