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Macerich Company (MAC)
NYSE:MAC
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Macerich
(NYSE:MAC)
Rating:63Neutral
Price Target:
$17.00
▲(6.05%Upside)
Positive Factors
Financial Performance
Progress on the balance sheet with a new $340 million 10-year mortgage loan at a lower interest rate shows improved financial health.
Future Revenue
An increase in the signed not yet open pipeline to $80 million reflects promising future revenue.
Leasing Activity
Strong leasing volumes with a 156% increase over last year signify robust business activity.
Negative Factors
FFO Decline
FFO/share is expected to decline by 9.1% in 2025 and 1.9% in 2026 due to asset sales and deleveraging.
Interest Costs
Rising interest costs may be the largest headwind to achieving $1.80 of FFO in the next 3-4 years.
Stock Price Target
The stock price has an 11.9% downside based on the 12-month price target of $14.70.
Macerich (MAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.17B
Dividend Yield4.24%
Average Volume (3M)1.74M
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth9.58%
EPS Growth-3.85%
CountryUS
Employees615
SectorReal Estate
Sector Strength70
IndustryREIT - Retail
Share Statistics
EPS (TTM)-0.20
Shares Outstanding252,648,790
10 Day Avg. Volume1,557,910
30 Day Avg. Volume1,744,747
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.84
Price to Sales (P/S)0.00
P/FCF Ratio10.11
Enterprise Value/Market Cap1.64
Enterprise Value/Revenue1.87
Enterprise Value/Gross Profit13.24
Enterprise Value/Ebitda3.56
Forecast
1Y Price Target
$17.30Price Target Upside7.92% Upside
Rating ConsensusHold
Number of Analyst Covering9
Macerich Business Overview & Revenue Model
Company DescriptionMacerich (MAC) is a real estate investment trust (REIT) that specializes in the acquisition, leasing, management, development, and redevelopment of regional shopping centers and mixed-use properties. Headquartered in Santa Monica, California, the company focuses on high-quality retail properties located in densely populated areas across the United States. Macerich's portfolio includes iconic shopping destinations that cater to a diverse range of consumers, offering a mix of retail, dining, entertainment, and lifestyle options.
How the Company Makes MoneyMacerich generates its revenue primarily through leasing space in its shopping centers to a variety of retail tenants, including national and regional retailers, restaurants, and entertainment venues. The company earns income from base rent, which is a fixed amount paid by tenants, and percentage rent, which is a variable amount based on a percentage of the tenant's sales revenue. Additionally, Macerich benefits from ancillary income, such as parking fees and advertising revenues. The company also engages in strategic partnerships and joint ventures to enhance its property portfolio and optimize asset value, contributing to its overall earnings.
Macerich Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 8.16%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call provided a generally positive outlook, with significant progress on leasing and asset sales. The company is ahead of schedule on key operational targets, and financial results show improvement. However, challenges such as occupancy decline and the impact of Forever 21's bankruptcy were noted.Q1-2025 Updates
Positive Updates
Ahead of Schedule on Leasing Progress
Macerich signed 2.6 million square feet of leases in Q1 2025, including 2.3 million square feet of renewals, more than double the leases signed in Q1 2024.
Strong Leasing Metrics and New Deals
The leasing speedometer reached 60% for new deal completion, with a large pipeline of LOIs, aiming to hit 70% by year-end. The SNO pipeline grew from $66 million to $80 million in 90 days.
Financial Results and Progress on Path Forward Plan
FFO excluding certain expenses was $87 million in Q1 2025, up from $75 million in Q1 2024. Same center NOI, excluding lease termination income, increased 0.9% year-over-year.
Progress on Dispositions and Asset Sales
Closed on the sale of Wilton Mall for $25 million and South Park for $11 million. Under contract to sell Lakewood, expected to close in the second half of 2025.
Redevelopment and Expansion of Green Acres
Breaking ground on a 370,000 square feet redevelopment at Green Acres, with 50% of the project square footage committed and another 17% in the LOI stage.
Negative Updates
Occupancy Decline
Occupancy in Q1 2025 was 92.6%, down from 94.1% in Q4 2024, primarily due to the decrease in temporary holiday stores and transitioning Fashion District Philadelphia.
Forever 21 Bankruptcy Impact
Forever 21 filed for bankruptcy, the only filing year-to-date, affecting a significant amount of square footage, though rent impact was minimal.
Flat Same-Center Sales
Portfolio sales at the end of Q1 2025 were $837 per square foot, flat compared to Q4 2024. Excluding Eddy properties, sales were $928 per square foot, a minimal increase.
Increased Operating Expenses
Operating expenses increased in Q1 2025, though higher leasing revenues offset these increases.
Company Guidance
During the first quarter of 2025, Macerich reported significant progress in their path forward plan, with a focus on leasing and financial metrics. The company achieved 2.6 million square feet of leasing, surpassing their target and doubling the leases signed in the same period last year. This leasing activity included 2.3 million square feet of renewals and contributed to a notable $80 million cumulative SNO pipeline, with expectations to reach $100 million by year-end. Macerich's focus on new deals is evident with 60% completion in new deal metrics, targeting 70% by year-end, which would facilitate reaching 85% by mid-2026. On the financial front, Macerich has made strides in deleveraging, reducing net debt to EBITDA to 7.9 times, with a goal to reach the low to mid-six times range in the upcoming years. Asset sales and refinancing efforts have contributed significantly, with $11 billion in dispositions and $500 million from equity raises. Sales metrics showed portfolio sales at $837 per square foot, and occupancy at 92.6%, impacted by temporary holiday store closures. The company's strategic initiatives are on track to meet their 2028 leverage and earnings goals, with anticipated milestones in leasing and asset management by mid-2026.Macerich Financial Statement Overview
Summary
Macerich's financial performance shows stable revenue growth but faces challenges with profitability due to ongoing net losses. High leverage on the balance sheet poses financial risks, though cash flow management supports operational needs.Income Statement
The company's revenue growth shows a positive trend from 2020 to TTM 2025, with a notable increase in total revenue. However, profitability is a concern as net income remains negative, impacting the net profit margin. Gross profit margin has been relatively stable, but the EBIT margin fluctuates, indicating operational challenges.55
Neutral
Balance Sheet
The company maintains a high debt-to-equity ratio, reflecting high leverage, which poses a risk. However, the equity ratio remains healthy, indicating that a significant portion of assets is financed by equity. Return on equity is negative due to net losses, which impacts overall balance sheet health.60
Neutral
Cash Flow
Operating cash flow is positive and growing, supporting the company's ability to manage day-to-day operations. The free cash flow to net income ratio indicates effective cash flow management despite net losses. However, free cash flow growth is limited, suggesting restrained investment capacity.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 958.64M | 918.20M | 881.37M | 859.16M | 847.44M | 786.03M | Gross Profit |
| 515.12M | 487.94M | 486.48M | 468.81M | 466.55M | 438.05M | EBIT |
| 168.02M | 165.01M | 149.92M | 150.03M | 125.37M | 88.09M | EBITDA |
| 689.26M | 326.90M | 190.72M | 454.96M | 470.30M | 165.41M | Net Income Common Stockholders |
| -117.52M | -194.12M | -274.06M | -66.07M | 13.41M | -230.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 59.42M | 89.86M | 94.94M | 100.32M | 112.45M | 465.30M | Total Assets |
| 8.68B | 8.57B | 7.51B | 8.09B | 8.35B | 9.18B | Total Debt |
| 5.30B | 5.06B | 4.31B | 4.50B | 4.61B | 6.13B | Net Debt |
| 5.04B | 4.97B | 4.21B | 4.40B | 4.50B | 5.66B | Total Liabilities |
| 5.94B | 5.72B | 4.99B | 5.14B | 5.17B | 6.74B | Stockholders Equity |
| 2.66B | 2.76B | 2.45B | 2.87B | 3.05B | 2.26B |
| Cash Flow | Free Cash Flow | ||||
| 310.84M | 283.44M | 295.50M | 337.51M | 286.37M | 124.84M | Operating Cash Flow |
| 310.84M | 283.44M | 295.50M | 337.51M | 286.37M | 124.84M | Investing Cash Flow |
| -36.27M | 19.79M | 52.54M | -1.40M | 234.97M | -202.85M | Financing Cash Flow |
| -155.14M | -316.05M | -338.89M | -321.94M | -837.02M | 446.45M |
Macerich Technical Analysis
Positive
16.03
Price Trends
15.16
Positive
16.70
Negative
17.62
Negative
Market Momentum
0.18
Positive
53.52
Neutral
29.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAC, the sentiment is Positive. The current price of 16.03 is above the 20-day moving average (MA) of 15.81, above the 50-day MA of 15.16, and below the 200-day MA of 17.62, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 53.52 is Neutral, neither overbought nor oversold. The STOCH value of 29.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MAC.
Macerich Risk Analysis
Macerich disclosed 37 risk factors in its most recent earnings report. Macerich reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Macerich Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $4.32B | 30.70 | 5.15% | 6.56% | 7.81% | 179.16% | |
72 Outperform | $4.85B | 62.71 | 3.09% | 3.48% | 9.27% | 19.51% | |
68 Neutral | $4.91B | 362.50 | 0.81% | 4.78% | 4.37% | -75.82% | |
66 Neutral | $5.13B | 91.19 | 1.15% | 4.19% | 10.93% | -31.07% | |
64 Neutral | $4.28B | 134.95 | 0.87% | 3.59% | -2.94% | ― | |
63 Neutral | $4.17B | ― | -4.79% | 4.24% | 9.58% | -3.85% | |
61 Neutral | $2.84B | 10.85 | 0.42% | 9.90% | 5.94% | -21.26% |
* Real Estate Sector Average
Performance Comparison
MAC
Macerich
16.03
1.73
12.10%
CUZ
Cousins Properties
30.53
8.42
38.08%
SBRA
Sabra Healthcare REIT
18.28
4.77
35.31%
KRG
Kite Realty Group
22.61
1.76
8.44%
IRT
Independence Realty
17.78
0.30
1.72%
PECO
Phillips Edison & Company
35.34
4.00
12.76%
Macerich Corporate Events
Executive/Board ChangesShareholder Meetings
Macerich Holds Annual Stockholders Meeting, Key Decisions Made
Positive
Jun 6, 2025
On June 2, 2025, Macerich held its annual meeting of stockholders where key decisions were made. Stockholders elected eight directors, approved executive compensation, and ratified KPMG LLP as the independent auditor for the fiscal year ending December 31, 2025, indicating continued confidence in the company’s leadership and financial oversight.
The most recent analyst rating on (MAC) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Macerich stock, see the MAC Stock Forecast page.
Business Operations and Strategy
Macerich Updates Path Forward Plan for Class A Malls
Positive
May 29, 2025
On May 29, 2025, Macerich made available an investor presentation detailing its Path Forward Plan update, emphasizing its strategic focus on Class A malls. The company is well-positioned in the top-performing retail real estate segment, with 92% of its net operating income derived from A or higher-tier properties, highlighting its resilience and growth potential in the evolving retail landscape.
The most recent analyst rating on (MAC) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Macerich stock, see the MAC Stock Forecast page.
Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Macerich Reports Improved Q1 2025 Financial Results
Positive
May 12, 2025
For the first quarter of 2025, The Macerich Company reported a net loss of $50.1 million, a significant improvement from the $126.7 million loss in the same period of 2024. The company saw a 156% increase in leased square footage compared to the previous year, driven by strong renewal leasing volume. Despite a slight decrease in portfolio occupancy to 92.6%, new store leases are expected to generate approximately $80 million in additional revenue over prior uses. The company also engaged in several financial transactions, including a new $340 million mortgage loan and the sale of two assets, enhancing liquidity to approximately $995 million.
The most recent analyst rating on (MAC) stock is a Sell with a $11.0000 price target. To see the full list of analyst forecasts on Macerich stock, see the MAC Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.