The Macerich Company Q4 FY2025 earnings call

Jack Hsieh thanked the MAC team and discussed 2025 as a pivotal year with progress on the Path-Forward plan pillars. Leasing was strong with significant new lease signings and leasing speedometer progress. Doug Healey talked about portfolio sales, occupancy, leasing spreads, and new store openings. Dan Swanstrom reviewed fourth quarter financial results, including FFO, and discussed balance sheet progress such as dispositions and leverage reduction

Leasing: For the full year, 7.1 million square feet of new and renewal leases were signed on a comparable center basis, an 85% increase over 2024. Leasing speedometer is at 76%, exceeding the 2025 year-end target of 70%. There are 650 new deals open, executed or in lease documentation, with 350 uncommitted new deals totaling 1.6 million square feet (150 in letter of intent stage). Signed not open pipeline is $107 million, exceeding the 2025 year-end target of $100 million. Portfolio sales at end of fourth quarter were $881 per square foot, up $14 from last quarter, with go-forward portfolio sales at $921 per square foot. Occupancy at end of fourth quarter was 94%, up 60 basis points from last quarter, and go-forward portfolio occupancy was 94.9%, up 60 basis points. Trailing 12-month leasing spreads as of December 31, 2025, were 6.7%, up 80 basis points from last quarter. In 2025, 30% of the 7.1 million square feet of signed leases were new lease signings. Commitments on 80% of 2026 expiring square footage expected to renew, with 16% in letter of intent stage. In 2025, 40% more deals and 30% more square footage were reviewed and approved than in 2024

Expect to provide an updated Path-Forward plan 3.0 at REIT Week in June and start providing earnings guidance in 2027. Key focus areas for 2026 include completing the leasing pipeline, solidifying 2026 lease expirations and getting ahead of 2027 expirations, getting tenants in built-out spaces, completing remaining dispositions, and evaluating new acquisition opportunities. The SNO opportunity has an estimated incremental annual contribution of $30 million in 2026, $40 million to $45 million in 2027, and $45 million to $50 million in 2028

Risks include those set forth in SEC filings related to potential differences between actual results and forward-looking statements. Also, the 29th Street property loan is in default with ongoing discussions with the lender

Q: Vince Tibone asked about acquisition candidates and funding sources.

A: Jackson Hsieh stated primary focus is accretive acquisitions, first choice is to issue equity if it makes sense, second is to find a capital partner.

Q: Andrew Reale asked about growth inflection and consumer health.

A: Daniel Swanstrom and Jackson Hsieh discussed the SNO pipeline inflection and consumer spending trends.

Q: Michael Griffin asked about leasing pipeline and renewing vs re-leasing.

A: Jackson Hsieh discussed balancing renewing and re-leasing.

Q: Floris Van Dijkum asked about Go-Forward portfolio NOI and SNO pipeline.

A: Daniel Swanstrom and Jackson Hsieh provided details on Go-Forward portfolio NOI and SNO pipeline.

Q: Haendel St. Juste asked about asset sales and AI.

A: Daniel Swanstrom discussed the asset sale process and Jackson Hsieh talked about AI potential.

Q: Todd Thomas asked about South Plains refi and outparcel cap rate.

A: Daniel Swanstrom answered on South Plains refi and outparcel cap rate.

Q: Ronald Kamdem asked about Go-Forward portfolio NOI impact and inflection point.

A: Daniel Swanstrom and Jackson Hsieh provided insights.

Q: Craig Mailman asked about equity income and Path-Forward plan 3.0.

A: Daniel Swanstrom and Jackson Hsieh responded.

Q: Greg McGinniss asked about non-go-forward assets and development.

A: Daniel Swanstrom and Brad Miller answered.

Q: Omotayo Okusanya asked about tenant credit.

A: Daniel Swanstrom said there is no meaningful impact.

Q: Alexander Goldfarb asked about unencumbered assets and legal settlement.

A: Daniel Swanstrom and Jackson Hsieh provided details.

Q: Michael Mueller asked about rent spreads and escalators.

A: Jackson Hsieh and Doug Healey answered.

Q: Caitlin Burrows asked about occupancy.

A: Brad Miller answered