Macerich Reports Improved Revenue and Profitability in Q3 2024, Net Income Turnaround

The Macerich Company reported its financial results for the third quarter and nine months ended September 30, 2024, showing notable improvements in revenue and profitability compared to the same period in 2023. Total revenues for the third quarter increased to $220.2 million, up from $218.2 million in the prior year, driven primarily by a rise in leasing revenue, which reached $203.4 million, compared to $197.3 million in Q3 2023. For the nine months ended September 30, 2024, total revenues were $661.5 million, a slight increase from $657.4 million in the same period last year.

The company reported a net loss of $112.1 million for the third quarter, a significant improvement from a net loss of $272.0 million in Q3 2023. For the nine-month period, Macerich achieved a net income of $17.1 million, contrasting with a net loss of $336.2 million in the previous year. This turnaround was attributed to reduced impairment losses and gains from property sales, including a $42.8 million gain from the sale of Biltmore Fashion Park.

Macerich's total assets increased to $7.59 billion as of September 30, 2024, from $7.51 billion at the end of 2023. The company’s total stockholders' equity also rose to $2.51 billion, up from $2.45 billion. However, the accumulated deficit widened to $(3.16) billion from $(3.06) billion, reflecting ongoing challenges in the retail sector.

Strategically, Macerich has been active in acquisitions and consolidations. In 2024, the company acquired the remaining interests in several properties, including Arrowhead Towne Center and South Plains Mall, consolidating its ownership to 100%. The company also completed a significant refinancing of its debt, including a $525 million loan on Queens Center at a fixed interest rate of 5.37%, maturing in 2029.

The company’s operational metrics showed a slight increase in leased occupancy rates to 93.7% as of September 30, 2024, compared to 93.4% a year earlier. The company signed 220 leases for approximately 831,000 square feet during the third quarter, indicating a robust leasing activity.

Macerich's financial position remains stable, with cash and cash equivalents of $116.5 million as of September 30, 2024, and no outstanding borrowings under its $650 million revolving loan facility. The company declared a cash dividend of $0.17 per share for the fourth quarter of 2024, reflecting its commitment to returning value to shareholders.