Macerich (NYSE:MAC) reported third-quarter 2026 adjusted funds from operations of $109 million, or $0.37 per diluted share, as leasing activity and new store openings helped lift income across the mall owner’s Go-Forward Portfolio.
Net operating income for those centers, excluding lease termination income, rose 4.7% from a year earlier. Chief Executive Officer Jack Hsieh said the company expects growth to accelerate in 2027 and 2028 as tenants with signed leases open stores and begin paying rent.
The company is also under contract to acquire an off-market mall by year-end, subject to customary closing conditions. Hsieh said Macerich plans to fund the purchase with equity and expects it to be accretive to FFO per share in both 2027 and 2028.
Leasing and Store Openings Advance
Macerich has opened 500 new stores since implementing its five-year Path Forward Plan and expects another 500 to open in its Go-Forward Portfolio through 2028, Hsieh said. Of roughly 1,000 planned new deals, 906 have been executed or approved, 85 are at the letter-of-intent stage and nine remain in prospecting.
The company’s signed-not-open pipeline reached $131 million of an approximately $140 million opportunity, up from $124 million in the prior quarter. Chief Financial Officer Dan Swanstrom said the estimated annual contribution from the pipeline is $30 million in 2026, $40 million to $45 million in 2027 and $45 million to $50 million in 2028.
Brad Miller, senior vice president of portfolio management, said Macerich had realized $20 million of the 2026 amount through the third quarter, with the remainder expected in the fourth quarter.
Go-Forward Portfolio leased occupancy stood at 96.1% at quarter-end, up 60 basis points from the second quarter and 180 basis points from a year earlier. Physical occupancy was approximately 91.5%, Miller said. Full-portfolio occupancy was 94.9%, while sales reached $943 per square foot across the full portfolio and $972 per square foot in the Go-Forward Portfolio.
Senior Executive Vice President of Leasing Doug Healey said the company opened 85 stores totaling more than 600,000 square feet during the quarter. Year-to-date openings covered 1.2 million square feet, 30% more than in the comparable period of 2025.
Macerich signed 1.2 million square feet of new and renewal leases during the quarter, including 660,000 square feet of new deals. Healey also announced a 165,000-square-foot DICK’S House of Sport lease at FlatIron Crossing, with the store scheduled to open in fall 2027.
Anchor Openings and Acquisition Plans
Hsieh said all 30 targeted anchor replacements under the Path Forward Plan are committed: eight are open, 12 are under construction, seven have been executed and three are in lease-out.
He pointed to traffic gains following recent DICK’S House of Sport openings. At Freehold Raceway Mall, the store drew about 1 million visits in the 12 months since opening, while annual center-wide foot traffic rose 9%, he said. At Annapolis Mall, traffic rose 20% in the first month after the store opened in August compared with the same days a year earlier.
Macerich did not identify the mall it has agreed to acquire. Hsieh said the transaction is expected to fall within the company’s targeted 9% to 11% stabilized yield range and reduce leverage by more than 20 basis points. A portion of Macerich’s $372 million in unsettled forward equity proceeds will fund the purchase.
Hsieh said competition for marketed mall sales remains strong and that Macerich has had more success pursuing off-market transactions. The company remains focused on acquisitions in strong trade areas that can be improved while keeping leverage within its targets.
Debt and Dispositions
Swanstrom said Macerich had approximately $2.2 billion in liquidity and ended the quarter with net debt to adjusted EBITDA of 7.3 times, down more than 1.5 turns since the Path Forward Plan began. Including unsettled forward equity proceeds, the ratio was below 7 times. The company is targeting leverage in the 6-times range, plus or minus.
In August, Macerich issued $775 million of 2.25% exchangeable senior notes due in 2031. It used part of the proceeds to repay a $370 million mortgage on Green Acres Mall and plans to use the remaining proceeds to pay down additional secured debt. The company also closed a new $550 million acquisition revolving credit facility, which was undrawn at the time of the call.
Swanstrom said the $76 million loan at Macerich’s pro rata share on Twenty Ninth Street remains in default following its February maturity. He also said the $74 million loan at Fashion Outlets of Niagara Falls entered default on October 6 and the $325 million loan at Fresno Fashion Fair entered default on November 2. The company is in discussions with lenders.
Macerich sold Pacific View for approximately $70 million during the quarter and completed about $4 million in land sales. Swanstrom said the company remains on track for its 2026 objective of selling or giving back $300 million to $400 million of assets, outparcels and land. He said Macerich plans to issue 2027 guidance in February.
About Macerich (NYSE:MAC)
Macerich (NYSE: MAC) is a self-managed and self-administered real estate investment trust that owns, operates and develops retail and mixed-use properties in the United States. The company’s portfolio primarily consists of regional shopping centers and high-quality malls located in major markets, with a concentration in the Western and Sun Belt regions.
Macerich generates revenue primarily through leasing retail, dining, entertainment and other commercial space to tenants. Its activities also include property management, marketing, redevelopment and the development of mixed-use projects designed to combine retail with residential, office, hotel and other uses.
The company traces its roots to the 1960s and has expanded through the acquisition, development and redevelopment of retail real estate.
