Here are 1-2 brief analogies for Macerich (MAC):

• Like Marriott or Hilton, but for shopping malls instead of hotels.
• Essentially a smaller, more concentrated version of Simon Property Group, focused on premium regional malls.

• Retail Space Leasing: Providing commercial retail space for lease to tenants within their portfolio of regional shopping centers.
• Property Management: Overseeing the operations, maintenance, and tenant relations for their owned regional shopping centers.
• Property Development and Redevelopment: Developing new regional shopping centers and enhancing existing properties through renovations and upgrades.
• Property Acquisition: Acquiring regional shopping centers to expand their real estate portfolio.

Macerich's Major Customers

Macerich (MAC) is a Real Estate Investment Trust (REIT) that owns and operates regional shopping centers. As such, its business model involves leasing retail, dining, and entertainment space within its malls to various companies. Therefore, Macerich's customers are the businesses that operate as tenants in its properties.

Macerich has a diverse customer base consisting of thousands of tenants across its 47 regional shopping centers. These customers range from large anchor department stores to specialty retailers, restaurants, entertainment venues, and service providers. Below are examples of major customer companies or types of companies that commonly lease significant space in Macerich's malls:

• Department Stores: These often serve as anchor tenants, occupying large footprints. Examples include:
  • Macy's, Inc. (M)
  • Nordstrom, Inc. (JWN)
  • Dillard's, Inc. (DDS)
• Specialty Retailers: A vast category including apparel, accessories, electronics, health & beauty, and home goods. Examples include:
  • Gap Inc. (GPS) (operating brands like Gap, Old Navy, Banana Republic)
  • Lululemon Athletica Inc. (LULU)
  • Apple Inc. (AAPL)
  • H&M Hennes & Mauritz AB (primarily publicly traded in Sweden, HM-B.ST)
  • PVH Corp. (PVH) (operating brands like Tommy Hilfiger, Calvin Klein)
• Food & Beverage Establishments: Including full-service restaurants, fast-casual eateries, and cafes. Examples include:
  • The Cheesecake Factory Incorporated (CAKE)
  • Starbucks Corporation (SBUX)
• Entertainment and Service Providers: Such as movie theaters, fitness centers, and salons. Examples include:
  • AMC Entertainment Holdings, Inc. (AMC)

It's important to note that the specific mix of major tenants varies significantly across Macerich's portfolio of properties, and the company continuously works to attract and retain a diverse array of businesses to its shopping centers.

1. High Debt Levels and Interest Rate Sensitivity

Macerich faces significant financial challenges due to its elevated debt-to-equity ratio and low interest coverage, which raises concerns about its capacity to meet interest obligations. The company holds a substantial amount of total debt, with a portion carrying variable interest rates, making it highly susceptible to fluctuations in interest rates. This high leverage, coupled with the need for further refinancing in the near future, poses considerable financial pressure and could impede long-term earnings growth and margin expansion, particularly if refinancing conditions deteriorate.

2. E-commerce Disruption and Evolving Consumer Preferences

The ongoing shift towards e-commerce and evolving consumer preferences pose a significant threat to the demand for physical retail space, directly impacting Macerich's occupancy levels and rental rates. The rise of online shopping continues to erode the market share of traditional brick-and-mortar retailers, many of whom are tenants in Macerich's regional malls. This necessitates Macerich to adapt its retail portfolios by diversifying into experiential retail or mixed-use developments to remain competitive.

3. Tenant Bankruptcies and Occupancy Fluctuations

Macerich is exposed to operational risks stemming from potential bankruptcies of significant tenants, which could lead to store closures and reduced occupancy rates across its properties. While Macerich has shown some resilience in leasing activity, the stability of its occupancy rates and the ability to attract new tenants remain crucial, especially given the challenging retail environment and macroeconomic headwinds.

The accelerated and permanent shift of consumer purchasing behavior towards e-commerce and direct-to-consumer (DTC) models, which fundamentally undermines the traditional enclosed regional mall's role as a primary retail destination and leads to a structural decline in demand for large-format physical retail space.

1. Increased Occupancy and Strong Leasing Momentum: Macerich has demonstrated significant progress in leasing activity, signing a record 7.1 million square feet of new and renewal leases in 2025, an 85% increase over 2024. This has led to improved portfolio occupancy, reaching 94.0% at year-end 2025 for its consolidated portfolio and 94.9% for its go-forward portfolio. The substantial "Signed Not Open" (SNO) leasing pipeline, which hit $107 million, is projected to generate incremental annual revenue through 2028, with approximately 80% expected to flow through to Net Operating Income (NOI).
2. Positive Re-leasing Spreads: The company has consistently achieved positive base rent re-leasing spreads for 17 consecutive quarters, indicating that new leases are being signed at higher rates than expiring ones. For the trailing 12 months ended December 31, 2025, base rent re-leasing spreads were 6.7% greater than expiring base rent. This trend directly contributes to higher rental income and, consequently, revenue growth.
3. Redevelopment and Repositioning of Properties: Macerich's "Path Forward" plan involves strategic redevelopment projects, including the transformation of anchor and big box spaces. The company has secured commitments for all 30 targeted anchor and big box replacements, with these transformations expected to generate over $750 million in annual tenant sales. These redevelopments often incorporate mixed-use spaces, such as residential, office, and hotel components, diversifying revenue streams and enhancing the overall value and appeal of their properties.
4. Anticipated Net Operating Income (NOI) Growth: Macerich anticipates at least 3% growth in Net Operating Income (NOI) for its go-forward portfolio in 2026, with an acceleration expected in 2027 and 2028. This growth is primarily driven by the strong leasing activity, the Signed Not Open (SNO) pipeline translating into rent payments, and the successful completion of major development and redevelopment projects.

Share Repurchases

• As of February 20, 2026, Macerich completed repurchases totaling $221.3 million under a $500 million share buyback program authorized on February 13, 2017.
• No shares were repurchased under the Stock Buyback Program during the six months ended June 30, 2025, or June 30, 2024.

Share Issuance

• On November 27, 2024, Macerich completed a public offering of 23,000,000 shares of common stock at $19.75 per share, including the full exercise of underwriters' option for additional shares, generating gross proceeds of approximately $454.25 million.
• The net proceeds from this offering, approximately $439.41 million after deducting costs, were used to repay a $478.0 million mortgage loan secured by the Washington Square property.
• Cash on hand from sales under the company's "at the market" offering program also contributed to repaying the Washington Square mortgage loan.

Capital Expenditures

• Capital spending for leases under 10,000 square feet is typically 1.2 to 1.4 times annual rent, with anchor deals being more capital-intensive.
• Macerich is focusing on reimagining its centers through a more dynamic tenant mix, modern environments, and refreshed experiences, including plans to redesign 200,000 square feet of common areas.
• The company is actively replacing 30 legacy anchors, totaling 2.9 million square feet, with redevelopment projects expected to come online from 2026 to 2028.