Macerich Stock Falls Despite Meeting Q4 FFO Estimates, Revenues Beat

Shares of The Macerich Company MAC lost 8.95% in the Feb. 27 regular trading session on the NYSE after it reported fourth-quarter 2024 funds from operations (FFO) per share of 47 cents, excluding financing expenses in relation to Chandler Freehold, gain on extinguishment of debt, accrued default interest expense and loss on non-real estate investments, despite meeting the Zacks Consensus Estimate. However, the figure declined 17.5% from the year-ago quarter’s reported numbers.See the Zacks Earnings Calendar to stay ahead of market-making news.The results reflect a year-over-year higher occupancy and base rent re-leasing spreads. However, a decrease in same-center net operating income (NOI), excluding lease termination income and higher expenses, marred the performance to some extent.Quarterly revenues of $273.7 million were higher than the year-ago quarter’s $238.7 million. Moreover, the figure surpassed the Zacks Consensus Estimate of $235.4 million.In 2024, Macerich reported an FFO per share of $1.58, excluding financing expenses in relation to Chandler Freehold, gain on extinguishment of debt, accrued default interest expense and loss on non-real estate investments, which outpaced the Zacks Consensus Estimate of $1.55. However, the figure compared unfavorably with the year-ago number of $1.84. Revenues of $918.2 million jumped 3.9% year over year and outpaced the consensus mark of $880 million.MAC’s Q4 in DetailThe portfolio tenant sales per square foot for spaces less than 10,000 square feet for the year ended Dec. 31, 2024, were $837 compared with $836 for the year ended Dec. 31, 2023.In the fourth quarter, Macerich signed leases encompassing 1.1 million square feet. On a comparable center basis, this reflected a 15.3% increase in the amount of leased square footage signed year over year.As of Dec. 31, 2024, portfolio occupancy was 94.1%, up from 93.5% as of Dec. 31, 2023. Our expectation for the same was pegged at 94%.For the year ended Dec. 31, 2024, base rent re-leasing spreads were 8.8% more than the expiring base rent.However, same-center NOI, excluding lease termination income, decreased 0.4% year over year to $215.5 million.Moreover, year over year, shopping center and operating expenses increased by 21.6% to $87.1 million, management companies’ operating expenses grew 42.3% to $24.6 million and leasing expenses were up by 19.1% at $11.4 million.Also, interest expenses grew significantly year over year to $70.9 million.MAC’s Portfolio ActivityIn the fourth quarter, MAC completed acquiring its partner’s 40% interest in the Pacific Premier Retail Trust portfolio for $122 million. The company became the sole owner of Los Cerritos Center, Washington Square and Lakewood Center.During the fourth quarter, MAC closed on the dispositions of the Oaks for $157 million and Southridge for $4 million.Balance SheetAs of Feb. 27, 2025, Macerich had around $683 million of liquidity. This included $540 million of available capacity on its $650 million revolving line of credit.MAC’s Zacks RankCurrently, Macerich carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Macerich Company (The) Price, Consensus and EPS Surprise Macerich Company (The) price-consensus-eps-surprise-chart | Macerich Company (The) QuotePerformance of Other Retail REITsRegency Centers Corporation REG reported a fourth-quarter 2024 NAREIT FFO per share of $1.09, outpacing the Zacks Consensus Estimate of $1.07. The figure increased 6.9% from the prior-year quarter.Results reflected healthy leasing activity. REG witnessed a year-over-year improvement in the same property’s NOI and base rents during the quarter.Kimco Realty Corp. KIM reported a fourth-quarter 2024 FFO per share of 42 cents, which met the Zacks Consensus Estimate. The metric grew 7.7% from the year-ago quarter.KIM’s results reflected better-than-expected growth in revenues, though a rise in interest expenses acted as a dampener.Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kimco Realty Corporation (KIM): Free Stock Analysis Report Macerich Company (The) (MAC): Free Stock Analysis Report Regency Centers Corporation (REG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks