The Macerich 2025 Q2 Earnings Net Loss Surpasses Expectations

The Macerich (MAC) reported its fiscal 2025 Q2 earnings on Aug 11, 2025, revealing a sharp decline in profitability despite strong revenue growth. The results fell short of expectations with a net loss, marking a significant reversal from the prior year and raising concerns about the company’s near-term performance.

The Macerich reported a net loss of $0.16 per share in Q2 2025, a 113.8% negative change from the $1.16 per share profit in the same period last year. The company also posted a net loss of $41.54 million, versus net income of $265.50 million in Q2 2024, reflecting a 115.6% deterioration in earnings.

Revenue
The Macerich posted a strong increase in total revenue, which rose 16.6% to $238.66 million in Q2 2025, compared to $204.74 million in Q2 2024. The leasing segment was the primary growth driver, contributing $232.72 million, while other revenue streams, such as management companies, added $5.94 million, and miscellaneous revenue totaled $11.13 million.

Earnings/Net Income
The earnings performance was sharply negative, with the company swinging to a loss of $0.16 per share in Q2 2025 from a profit of $1.16 per share in the prior year. This represents a 113.8% negative change in EPS, signaling a significant deterioration in profitability, primarily due to the absence of a one-time gain from the 2024 Chandler Fashion Center sale.

Price Action
Macerich’s stock price showed mixed performance in the short term, with no change during the latest trading day, a 0.85% rise during the most recent full trading week, and a 1.65% increase month-to-date.

Post-Earnings Price Action Review
Historically, buying Macerich shares on the day of its quarterly earnings release and holding for 30 days has underperformed the market over the past three years. The strategy yielded a compound annual growth rate of -30.94% and an excess return of -112.93%, suggesting that investors have not benefited from this timing approach.

CEO Commentary
The CEO emphasized The Macerich’s continued focus on high-quality retail assets in densely populated U.S. markets and its commitment to sustainability and corporate governance, highlighted by its top GRESB ranking for North American retail. Despite the Q2 net loss, the CEO noted a 2.4% increase in Go-Forward Portfolio Centers NOI and 10.5% base rent re-leasing spreads, reflecting strong leasing performance. Strategic investments, such as the $290 million acquisition of Crabtree Mall, and capital recycling efforts, like the Atlas Park disposition, underscore the company’s long-term strategy.

Guidance
The company expects new store leases to generate approximately $87 million in incremental gross revenue at its share from 2024 through 2028. Leasing activity in Q2 2025 included 1.7 million square feet signed, up 137% year-over-year on a comparable basis.

Additional News
Over the past three weeks, Nigerian business and political news has been marked by significant developments. The Nigerian Federal Government (FG) generated N5.21 trillion from oil sales in the first half of 2025. The FG has also begun recruitment for permanent secretaries for new ministries, signaling a structural shift in governance. Meanwhile, Customs intercepted arms and expired drugs valued at N10 billion, highlighting ongoing security and regulatory challenges. In the corporate sector, marketers and industry stakeholders criticized the Nigerian National Petroleum Corporation (NNPC) for failing to rehabilitate refineries and for overall neglect. In the political arena, Edo State Governor Monday Okpebholo announced plans to strengthen the All Progressives Congress (APC) in the state.