Macerich Co. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Macerich Co. filed its Q1 2024 10-Q report, detailing financial performance and position as of March 31, 2024.</b>

AI Summary

MACERICH CO (MAC) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. The Macerich Company filed its quarterly report (10-Q) for the period ended March 31, 2024. The filing covers the first quarter of the fiscal year 2024. The company's fiscal year ends on December 31st. Macerich Co. is incorporated in Maryland. The company's principal business address is in Santa Monica, California.

Why It Matters

For investors and stakeholders tracking MACERICH CO, this filing contains several important signals. This filing provides investors with the latest financial data for Macerich Co., enabling informed investment decisions. Understanding the Q1 2024 results is crucial for assessing the company's ongoing performance in the real estate investment trust sector.

Risk Assessment

Risk Level: medium — MACERICH CO shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) which typically contains detailed financial information but does not inherently signal significant positive or negative developments without further analysis of the specific numbers and narrative sections.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to identify trends in revenue, net income, and debt levels.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-09 — Filing Date (FILED AS OF DATE)
• 12/31 — Fiscal Year End (FISCAL YEAR END)
• 6798 — Standard Industrial Classification (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• MACERICH CO (company) — FILER
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-09 (date) — FILED AS OF DATE
• 401 WILSHIRE BLVD STE 700 (address) — BUSINESS ADDRESS
• SANTA MONICA (city) — BUSINESS ADDRESS CITY
• CA (state) — BUSINESS ADDRESS STATE
• 90401 (zip) — BUSINESS ADDRESS ZIP
• 3103946000 (phone) — BUSINESS PHONE

FAQ

Industry Context

Macerich Co. operates as a Real Estate Investment Trust (REIT), primarily focused on owning, operating, and redeveloping shopping malls and retail properties.

Regulatory Implications

As a publicly traded company, Macerich Co. is subject to SEC regulations and reporting requirements, including the filing of quarterly (10-Q) and annual (10-K) reports.

What Investors Should Do

1. Analyze the balance sheet for changes in assets, liabilities, and equity from the previous quarter.
2. Review the income statement for revenue, expenses, and net income trends compared to prior periods.
3. Examine the cash flow statement to understand the company's cash generation and usage.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing represents the first quarterly report for Macerich Co. in fiscal year 2024, following the annual report filed for fiscal year 2023.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 Par Value MAC New York Stock Exchange

Filing Documents

• mac-20240331.htm (10-Q) — 1328KB
• mac-20240331x10qexhibit101.htm (EX-10.1) — 151KB
• mac-20240331x10qexhibit102.htm (EX-10.2) — 128KB
• mac-20240331x10qexhibit103.htm (EX-10.3) — 159KB
• mac-20240331x10qexhibit104.htm (EX-10.4) — 160KB
• mac-20240331x10qexhibit105.htm (EX-10.5) — 154KB
• mac-20240331x10qexhibit106.htm (EX-10.6) — 67KB
• mac-20240331x10qexhibit311.htm (EX-31.1) — 10KB
• mac-20240331x10qexhibit312.htm (EX-31.2) — 10KB
• mac-20240331x10qexhibit321.htm (EX-32.1) — 6KB
• image_0a.jpg (GRAPHIC) — 22KB
• 0000912242-24-000083.txt (&nbsp;) — 9931KB
• mac-20240331.xsd (EX-101.SCH) — 71KB
• mac-20240331_cal.xml (EX-101.CAL) — 110KB
• mac-20240331_def.xml (EX-101.DEF) — 392KB
• mac-20240331_lab.xml (EX-101.LAB) — 787KB
• mac-20240331_pre.xml (EX-101.PRE) — 619KB
• mac-20240331_htm.xml (XML) — 1271KB

Financial Information

Part I Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 3 Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 4 Consolidated Statements of Comprehensive Loss for the three months ended March 31, 2024 and 2023 5 Consolidated Statements of Equity for the three months ended March 31, 2024 and 2023 6 Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 26 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 40 Item 4.

Controls and Procedures

Controls and Procedures 41

Other Information

Part II Other Information Item 1.

Legal Proceedings

Legal Proceedings 41 Item 1A.

Risk Factors

Risk Factors 41 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42 Item 3. Defaults Upon Senior Securities 42 Item 4. Mine Safety Disclosures 42 Item 5. Other Information 42 Item 6. Exhibits 43 Signature 45 2 Table of Contents THE MACERICH COMPANY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except par value) (Unaudited) March 31, 2024 December 31, 2023 ASSETS: Property, net $ 5,838,822 $ 5,900,489 Cash and cash equivalents 120,054 94,936 Restricted cash 105,025 95,358 Tenant and other receivables, net 142,098 183,478 Right-of-use assets, net 116,567 118,664 Deferred charges and other assets, net 249,583 263,068 Due from affiliates 5,336 4,755 Investments in unconsolidated joint ventures 785,588 852,764 Total assets $ 7,363,073 $ 7,513,512 LIABILITIES AND EQUITY: Mortgage notes payable $ 4,098,705 $ 4,136,136 Bank and other notes payable 170,494 89,548 Accounts payable and accrued expenses 60,576 64,194 Lease liabilities 81,713 83,989 Other accrued liabilities 301,645 334,742 Distributions in excess of investments in unconsolidated joint ventures 183,870 174,786 Financing arrangement obligation 105,455 102,516 Total liabilities 5,002,458 4,985,911 Commitments and contingencies Equity: Stockholders' equity: Common stock, $ 0.01 par value, 500,000,000 shares authorized at March 31, 2024 and December 31, 2023, and 216,091,693 and 215,976,614 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 2,159 2,158 Additional paid-in capital 5,512,628 5,509,603 Accumulated deficit ( 3,227,312 ) ( 3,063,789 ) Accumulated other comprehensive loss ( 337 ) ( 952 ) Total stockholders' equity 2,287,138 2,447,020 Noncontrolling interests 73,477 80,581 Total equity 2,360,615 2,527,601 Total liabilities and equity $ 7,363,073 $ 7,513,512 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents THE MACERICH C

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands, except per share and square foot amounts) (Unaudited) 1. Organization: The Macerich Company (the "Company") is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional retail centers and community/power shopping centers (the "Centers") located throughout the United States. The Company commenced operations effective with the completion of its initial public offering on March 16, 1994. As of March 31, 2024, the Company was the sole general partner of and held a 96 % ownership interest in The Macerich Partnership, L.P. (the "Operating Partnership"). The Company was organized to qualify as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986, as amended (the "Code"). The property management, leasing and redevelopment of the Company's portfolio is provided by the Company's management companies, Macerich Property Management Company, LLC, a single member Delaware limited liability company, Macerich Management Company, a California corporation, Macerich Arizona Partners LLC, a single member Arizona limited liability company, Macerich Arizona Management LLC, a single member Delaware limited liability company, Macerich Partners of Colorado LLC, a single member Colorado limited liability company, MACW Mall Management, Inc., a New York corporation, and MACW Property Management, LLC, a single member New York limited liability company. All seven of the management companies are collectively referred to herein as the "Management Companies." All references to the Company in this Quarterly Report on Form 10-Q include the Company, those entities owned or controlled by the Company and predecessors of the Company, unless the context indicates otherwise. 2. Summary of Significant Accounting Policies: Basis of Presentation: The accompanying consolidated financial statements of the Company have been prepared in accordance with generally acce

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollars in thousands, except per share and square foot amounts) (Unaudited) 2. Summary of Significant Accounting Policies: (Continued) The unaudited interim consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the consolidated financial statements for the interim periods have been made. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The accompanying consolidated balance sheet as of December 31, 2023 has been derived from the audited financial statements but does not include all disclosures required by GAAP. The following table presents a reconciliation of the beginning of period and end of period cash, cash equivalents and restricted cash reported on the Company's consolidated balance sheets to the totals shown on its consolidated statements of cash flows: For the Three Months Ended March 31, 2024 2023 Beginning of period Cash and cash equivalents $ 94,936 $ 100,320 Restricted cash 95,358 80,819 Cash, cash equivalents and restricted cash $ 190,294 $ 181,139 End of period Cash and cash equivalents $ 120,054 $ 112,173 Restricted cash 105,025 93,520 Cash, cash equivalents and restricted cash $ 225,079 $ 205,693 Recent Accounting Pronouncements: In November 2023, the Financial Accounting Standards Board issued Accounting

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollars in thousands, except per share and square foot amounts) (Unaudited) 3. Earnings Per Share ("EPS"): The following table reconciles the numerator and denominator used in the computation of EPS for the three months ended March 31, 2024 and 2023 (shares in thousands): For the Three Months Ended March 31, 2024 2023 Numerator Net loss $ ( 131,446 ) $ ( 58,194 ) Less: net (loss) income attributable to noncontrolling interests ( 4,718 ) 539 Net loss attributable to the Company ( 126,728 ) ( 58,733 ) Allocation of earnings to participating securities ( 186 ) ( 225 ) Numerator for basic and diluted EPS—net loss attributable to common stockholders $ ( 126,914 ) $ ( 58,958 ) Denominator Denominator for basic and diluted EPS—weighted average number of common shares outstanding(1) 216,036 215,291 EPS—net loss attributable to common stockholders Basic and diluted $ ( 0.59 ) $ ( 0.27 ) (1) Diluted EPS excludes 99,565 convertible preferred partnership units for each of the three months ended March 31, 2024 and 2023, as their impact was antidilutive. Diluted EPS also excludes 10,104,663 and 8,978,620 Operating Partnership units ("OP Units") for the three months ended March 31, 2024 and 2023, respectively, as their impact was antidilutive. 4. Investments in Unconsolidated Joint Ventures: The Company has made the following recent financings or other events within its unconsolidated joint ventures: On March 3, 2023, the Company's joint venture in Scottsdale Fashion Square replaced the existing $ 403,931 mortgage loan on the property with a $ 700,000 loan that bears interest at a fixed rate of 6.21 %, is interest only during the entire loan term and matures on March 6, 2028. On April 25, 2023, the Company's joint venture in Deptford Mall closed on a three-year maturity date extension for the existing loan to April 3, 2026, including extension options. The Company's joint venture repaid $ 10,000 ($ 5,

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollars in thousands, except per share and square foot amounts) (Unaudited) 4. Investments in Unconsolidated Joint Ventures: (Continued) On December 4, 2023, the Company's joint venture in Tysons Corner Center replaced the existing $ 666,465 mortgage loan on the property with a new $ 710,000 loan that bears interest at a fixed rate of 6.60 %, is interest only during the entire loan term and matures on December 6, 2028. On December 27, 2023, the Company's joint venture in One Westside sold the property, a 680,000 square foot office property in Los Angeles, California for $ 700,000 . The existing $ 324,632 loan on the property was repaid, and $ 77,643 of net proceeds were generated at the Company's 25 % ownership share, which were used to reduce the Company's revolving loan facility. As a result of this transaction, the Company recognized its share of gain on sale of assets of $ 8,118 . On January 10, 2024, the Company's joint venture in Boulevard Shops replaced the existing $ 23,000 mortgage loan on the property with a new $ 24,000 loan that bears interest at a variable rate of SOFR plus 2.50 %, is interest only during the entire loan term and matures on December 5, 2028. The new loan has a required interest rate cap throughout the term of the loan at a strike rate of 7.5 %. The Company has a 50/50 joint venture with Simon Property Group, which was initially formed to develop Los Angeles Premium Outlets, a premium outlet center in Carson, California. In the three months ended March 31, 2024, the Company evaluated its investment and concluded that due to certain conditions, the Company should not continue to invest capital in this development project. As a result, the Company determined the investment was impaired on an other-than-temporary basis and wrote-off its entire investment of $ 57,686 in the first quarter of 2024 through equity in loss of unconsolidated joint ventures. Combined and condensed ba

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollars in thousands, except per share and square foot amounts) (Unaudited) 4. Investments in Unconsolidated Joint Ventures: (Continued) (2) The Company amortizes the difference between the cost of its investments in unconsolidated joint ventures and the book value of the underlying equity into the Company's share of net loss. The amortization of this difference was $ 75,183 and $ 12,554 for the three months ended March 31, 2024 and 2023, respectively. Combined and Condensed Statements of Operations of Unconsolidated Joint Ventures: PPR Portfolio Other Joint Ventures Total Three Months Ended March 31, 2024 Revenues: Leasing revenue $ 43,011 $ 150,061 $ 193,072 Other 315 667 982 Total revenues 43,326 150,728 194,054 Expenses: Shopping center and operating expenses 10,564 57,944 68,508 Leasing expenses 580 1,384 1,964 Interest expense 22,127 51,536 73,663 Depreciation and amortization 21,959 56,195 78,154 Total expenses 55,230 167,059 222,289 Loss on sale or write down of assets, net ( 100,273 ) ( 121,193 ) ( 221,466 ) Net loss $ ( 112,177 ) $ ( 137,524 ) $ ( 249,701 ) Company's equity in net loss $ ( 5,986 ) $ ( 67,290 ) $ ( 73,276 ) Three Months Ended March 31, 2023 Revenues: Leasing revenue $ 43,070 $ 163,368 $ 206,438 Other 680 666 1,346 Total revenues 43,750 164,034 207,784 Expenses: Shopping center and operating expenses 11,406 60,111 71,517 Leasing expenses 570 1,471 2,041 Interest expense 21,810 42,295 64,105 Depreciation and amortization 22,878 62,504 85,382 Total expenses 56,664 166,381 223,045 Loss on sale or write down of assets, net — ( 70,563 ) ( 70,563 ) Net loss $ ( 12,914 ) $ ( 72,910 ) $ ( 85,824 ) Company's equity in net loss $ ( 5,516 ) $ ( 56,294 ) $ ( 61,810 ) Significant accounting policies used by the unconsolidated joint ventures are similar to those used by the Company. 13 Table of Contents THE MACERICH COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) (Dollars in thousands, except per share and square foot amounts) (Unaudited) 5. Derivative Instruments and Hedging Activities: The Company uses interest rate cap agreements to manage the interest rate risk on certain floating rate debt. The Company recorded other comprehensive income related to the marking-to-market of derivative instruments of $ 615 and $ 120 for the three months ended March 31, 2024 and 2023, respectively. The amounts in other comprehensive income represent the Company's pro rata share of hedged derivative instruments from certain unconsolidated joint ventures. The following derivatives were outstanding at March 31, 2024 and December 31, 2023: Fair Value Property Designation Notional Amount Product SOFR/LIBOR Rate Maturity March 31, 2024 December 31, 2023 Santa Monica Place Non-Hedged $ 300,000 Cap 4.00 % 12/9/2024 $ 2,495 $ 2,665 The Macerich Partnership, L.P. Non-Hedged $ ( 300,000 ) Sold Cap 4.00 % 12/9/2024 $ ( 2,491 ) $ ( 2,658 ) The above derivatives were valued with an aggregate fair value (Level 2 measurement) and were included in other assets (other accrued liabilities). The fair value of the Company's interest rate derivatives was determined using discounted cash flow analysis on the expected cash flows of the derivatives. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves and implied volatilities. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty's nonperformance risk in the fair value measurements. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valua

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