Macerich's Path Forward Yields Strong Leasing Gains

Macerich is advancing its Path Forward strategy with strong leasing momentum, evidenced by 1.6 million square feet of new and renewal leases signed in the first quarter, including 700,000 square feet for new retailers. This activity bolsters the company's outlook for increased occupancy and rental growth.

The acquisition of Annapolis Mall for $272 million is a key development, with projected year one NOI of approximately $29 million, stabilizing at $33 million for an initial yield of 10.5%, rising to over 11%. This acquisition is expected to be accretive to Macerich's 2028 FFO per share.

Macerich also strengthened its financial position by increasing its revolving credit facility to $900 million and extending its maturity to March 2030. The company has completed approximately $1.3 billion in dispositions year-to-date, nearing its $2 billion target, further reducing leverage.

The company's go-forward portfolio centers are experiencing NOI growth, with a 1.2% increase year-over-year in the first quarter, despite a 50 basis point negative impact from winter weather. Projections indicate at least 3% NOI growth for 2026, accelerating in subsequent years.

Looking ahead, Macerich anticipates physical permanent occupancy to increase from approximately 84% to 88%-89% as its leasing strategy, including filling vacant anchors and signing new tenants, is executed. Management plans to provide updated 2028 operational and financial targets at the upcoming NAREIT conference.