Macerich's Q2 2025 Earnings Call: Key Contradictions in Leasing, Guidance, and Dividend Strategy

Leasing strategies and upside potential, guidance reinstatement and confidence in execution, same-store NOI growth expectations, Forever 21 backfills and rent expectations, and dividend strategy and payout ratio are the key contradictions discussed in The Macerich Company's latest 2025Q2 earnings call.



Leasing Progress and Pipeline:
- Macerich reported that their leasing volume in 2025 is ahead of schedule, with 4.3 million square feet signed, surpassing their target of 4 million square feet per year.
- The company's SNO pipeline was at $87 million, on track to exceed $100 million by year-end.
- This progress is attributed to their successful leasing strategy and technology enhancements that drive every leasing decision.

Crabtree Mall Acquisition:
- Macerich acquired Crabtree Mall for approximately $290 million, contributing positively to their Path Forward plan's 2028 target FFO range.
- The acquisition was supported by the mall's dominant market position and potential for increased occupancy and embedded NOI growth.
- The company sees this acquisition as an opportunity to enhance their go-forward portfolio and drive shareholder value.

Financial and Debt Management:
- Macerich reported that their net debt to EBITDA ratio was 7.9x, down from 8.9x, indicating progress on leverage reduction and debt management.
- The company has made significant progress in disposing of assets, with approximately $800 million in sales completed and additional properties under contract.
- These efforts are part of their Path Forward plan to refine their portfolio, reduce leverage, and strengthen the balance sheet.

Operational Improvement and NOI Growth:
- Go-forward portfolio NOI excluding lease termination income increased by 2.4% in Q2 2025 compared to Q2 2024.
- Year-to-date, this portfolio's NOI grew by 2%.
- The growth is supported by operational performance improvements and strategic leasing efforts that have resulted in positive leasing spreads for 15 consecutive quarters.