Macerich Reports Strong 2025 FFO & Leasing Growth Amid Portfolio Restructuring
Summary
Macerich reported strong 2025 FFO and leasing growth, demonstrating operational strength and progress on its deleveraging strategy, despite new and ongoing loan defaults.
Key Events
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Strong 2025 Financial Performance
Funds From Operations (FFO) increased 8.7% to $397.0 million in 2025, and Net Operating Income (NOI) for the Go-Forward Portfolio rose 1.8% to $729.8 million, reflecting operational improvements.
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Robust Leasing Activity
The company achieved a 6.7% increase in releasing spreads for the trailing twelve months ended December 31, 2025, marking its seventeenth consecutive quarter of positive spreads. Occupancy stood at 94.0%.
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Mixed Debt Management Outcomes
The $200 million loan for South Plains Mall, previously in default, was successfully extended to November 2029. However, a $76.5 million loan (Company's pro rata share) for Twenty Ninth Street entered default on February 6, 2026, with negotiations ongoing. The $300 million Santa Monica Place loan remains in default with a receiver appointed.
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Strategic Portfolio Adjustments and Capital Raising
Macerich continued its 'Path Forward Plan' with significant asset dispositions and the acquisition of Crabtree Mall for $290 million. The company also raised $53.9 million in net proceeds through its At-The-Market (ATM) program in 2025, with $374.1 million remaining available.
Analysis
Macerich's annual report details solid operational improvements and continued progress on its 'Path Forward Plan' to deleverage and refine its portfolio. The company achieved an 8.7% increase in FFO and a 1.8% rise in Net Operating Income (NOI) for its Go-Forward Portfolio in 2025, alongside a 6.7% increase in releasing spreads, marking its seventeenth consecutive quarter of positive spreads. These operational strengths are critical for a retail REIT. While the company successfully extended a $200 million loan for South Plains Mall that was previously in default, a new $76.5 million loan (pro rata share) for Twenty Ninth Street has entered default, indicating ongoing challenges in debt management. The company also continued its strategy of asset dispositions and utilized its ATM program, selling $53.9 million in common stock in 2025, which is dilutive but provides capital for its strategic initiatives. The market's positive reaction, with the stock trading near its 52-week high, suggests confidence in the company's strategic direction despite the mixed financial signals.
At the time of this filing, MAC was trading at $19.77 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $5.1B. The 52-week trading range was $12.48 to $20.76. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.