Macerich Earnings: Progress Made on Strategic Reorganization With Dispositions and Acquisitions

Third-quarter results for no-moat Macerich were in line with our expectations, giving us confidence in our $24 fair value estimate. Occupancy increased 10 basis points sequentially to 93.4% in the third quarter. Trailing 12-month tenant sales per square foot were $834 for the third quarter. While that is a 1.5% decline compared with the 12 months prior to the third quarter of 2023, sales are only down 0.2% compared with all of 2023, indicating that the sales decline is leveling off. Re-leasing spreads were 11.9% in the quarter, marking the sixth straight quarter the company has reported a double-digit figure. Macerich reported same-store net operating income growth of 1.9% for the third quarter, slightly better than our estimate of 0.6% growth. The company reported funds from operations of $0.36 per share, which was in line with our estimate.