MAC

Leasing Performance: Macerich Co reported an 87% increase in new and renewal leases in Q3 2025, totaling 1.5 million square feet, with year-to-date signed leases reaching 5.4 million square feet, an 86% increase from 2024.

Financial Metrics: The company achieved a 4% increase in portfolio sales per square foot and reported approximately $93 million in Funds From Operations (FFO) for Q3 2025, while maintaining a liquidity of around $1 billion.

Occupancy and Traffic Challenges: The occupancy rate improved to 93.4%, but traffic remained flat compared to 2024, indicating potential difficulties in attracting visitors, compounded by the impact of the Forever 21 liquidation.

Debt and Future Plans: Macerich is addressing significant debt, with plans to reduce leverage to the low to mid 6 times range, while also evaluating further equity issuances to support growth opportunities like the Crabtree acquisition.

Management Progress: The Macerich Company is ahead of schedule on its Path Forward plan, with significant leasing momentum, having signed 1.5 million square feet of new and renewal leases in Q3 2025, an 87% increase from the previous year.

Financial Performance: The company's net operating income (NOI) for go-forward portfolio centers increased by 1.7% year-over-year, with a strong occupancy rate of 93.4% and a focus on disciplined growth and asset dispositions.

SNO Pipeline Growth: The signed not open (SNO) pipeline grew from $87 million to $99 million, with expectations to meet or exceed the $100 million target by year-end, supported by strong leasing demand and retailer activity.

Analyst Sentiment: Analysts expressed a neutral to slightly positive tone during the Q&A, focusing on capital allocation and execution risks, while management maintained confidence in their progress and strategic objectives.

Obesity Drug Developments: The White House is negotiating with Eli Lilly and Novo Nordisk to include their diet drugs in Medicare and Medicaid, impacting stock prices with Eli Lilly up 5.1% in two days while Novo Nordisk has seen a decline of 2.5% in the same period.

Mall Stocks Performance: Simon Property Group reported a solid quarter, leading to a 3.4% increase in its stock, while other mall operators like Tanger and Macerich also saw gains, indicating resilience in retail despite broader market challenges.

Employment Sector Stocks Decline: Paycom Software and Paychex stocks hit lows not seen in months, down 32% and 29% respectively since June, reflecting struggles in the employment payment and HR sector.

Tariff Impact on Harley-Davidson: Despite better-than-expected earnings, Harley-Davidson's stock fell due to a 5% decline in motorcycle sales and ongoing tariff challenges, with a significant increase in tariff charges affecting their financial outlook.