Macerich lines up its next mall as two more property loans default
Occupancy is improving and a new credit line is in place. The mortgage problems show how uneven the mall owner's turnaround remains.
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The Macerich Company
Follow Macerich's shopping centers, leasing, earnings, cash flow, mortgage negotiations and acquisitions.
- Ticker
- MAC
- Exchange
- XNYS
- SEC CIK
- 0000912242
Macerich owns, leases and redevelops U.S. shopping centers. Rent and tenant payments for property expenses provide most of its revenue. It operates as a real estate investment trust and trades on the New York Stock Exchange under MAC.
Its Path Forward plan combines leasing and redevelopment of retained properties with sales or lender negotiations elsewhere. The latest quarter shows better occupancy and property income, alongside two additional mortgage defaults after quarter-end.
Operating history
| Measure | 2026 | 2025 |
|---|---|---|
| Consolidated revenue | $260.1 | $253.3 |
| Net loss attributable to Macerich | -$16.7 | -$87.4 |
| FFO | $87.0 | $88.6 |
| Adjusted FFO per diluted share | $0.37 | $0.36 |
| Overall leased occupancy | 94.9% | 93.4% |
| Go-Forward NOI, excluding lease termination income | $193.0 | $184.4 |
FFO is a property-company earnings measure that adds back real estate depreciation and removes specified sale and impairment effects. Adjusted FFO also excludes default interest, the property in receivership, non-real-estate investment losses and debt-extinguishment costs. The smaller net loss mainly reflects a swing from asset-sale losses and write-downs to gains.
For the second quarter ended June 30, 2026, adjusted FFO was $100.4 million, or $0.35 per diluted share, compared with $88.7 million and $0.34 a year earlier.
The 4.7% Go-Forward net operating income increase excludes Annapolis Mall, acquired during 2026, and includes Crabtree Mall in both comparative quarters. Overall occupancy increased from 94.0% in June to 94.9% in September; Go-Forward occupancy rose from 95.5% to 96.1%.
Cash and financing
Consolidated operating cash flow for the first nine months fell to $253.7 million in 2026 from $271.4 million in 2025.
| Measure | Sept. 30, 2026 | Dec. 31, 2025 |
|---|---|---|
| Cash | $560.8 | $280.2 |
| Restricted cash | $62.4 | $92.7 |
| Debt carrying value | $5,167.9 | $5,068.9 |
Macerich's share of debt, including unconsolidated joint ventures, was $6.66 billion at September 30. Net debt was 7.33 times the company's further-adjusted trailing 12-month EBITDA, an earnings measure before interest, taxes, depreciation and amortization. Its lower 6.85-times pro forma figure treats $372.3 million of unsettled forward equity as cash.
In August, the operating partnership issued $775 million of 2.25% exchangeable senior notes due in 2031. Proceeds helped repay the $370 million Green Acres Mall mortgage in September. A separate $900 million corporate revolving credit line was undrawn at quarter-end.
On November 3, a new $550 million acquisition credit line closed, initially supported by Green Acres Mall and Vintage Faire Mall. About $260 million was available against eligible collateral, with nothing drawn. It matures in November 2029 and offers a conditional one-year extension.
Acquisitions, exits and unresolved loans
Annapolis Mall and its adjacent Sears parcel were acquired on April 30, 2026 for $272 million before closing adjustments. Crabtree Mall was acquired in June 2025 for $290 million on the same gross-price basis. Another unnamed mall was under contract as of the November results, with closing expected by year-end.
Pacific View was sold in September 2026 for $69.7 million, with the buyer assuming the property loan for that amount. Santa Monica Place remains in receivership, with Macerich still holding title and the $300 million loan still recorded.
The $74.4 million Niagara Falls loan went into default on October 6 and the $325 million Fresno Fashion Fair loan on November 2. Both are non-recourse property loans under lender negotiation. Fresno remains in the Go-Forward portfolio. The Twenty Ninth Street joint venture has been negotiating its loan since its February default.
What the next results can resolve
In August, management described an active acquisition pipeline; November brought a signed contract for the next mall. The next update can establish whether that purchase closes, what financing it uses and how the Niagara Falls and Fresno negotiations affect the properties. Continued store openings and rent collection will test whether better occupancy keeps translating into higher property income.
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