Macerich Earnings: Progress Made on Path Forward Plan With Strategic Acquisitions and Dispositions

Macerich reported second-quarter results that were relatively in line with our expectations, leading us to reaffirm our $24 fair value estimate for the no-moat company. Occupancy fell 10 basis points sequentially to 93.3% in the second quarter. While trailing 12-month tenant sales per square foot were down 2.1% compared with the 12 months prior to the second quarter of 2023, the first half of 2024 sales are only down 0.6% compared with the first half of 2023, suggesting the sales decline is slowly leveling off. Re-leasing spreads were 10.1% in the quarter, marking the fifth straight quarter the company has reported a double-digit figure. Same-store net operating income grew 1.4%, which was better than our estimate of a 1.3% decline. Macerich reported funds from operations of $0.37 per share, in line with our estimates for the quarter.