Macerich Co. Reports Q3 2024 Results

TL;DR

Macerich Q3 revenue $731.7M, real estate ops $695.4M. Filing Nov 7.

AI Summary

Macerich Co. reported its Q3 2024 results, with total revenue for the nine months ending September 30, 2024, reaching $731.7 million. The company's real estate operations generated $695.4 million in revenue during the same period. This filing covers the period up to September 30, 2024, and was submitted on November 7, 2024.

Why It Matters

This 10-Q filing provides investors with a detailed look at Macerich's financial performance for the third quarter of 2024, impacting investment decisions in the real estate sector.

Risk Assessment

Risk Level: medium — Real estate investment trusts are subject to market fluctuations and interest rate sensitivity, which can impact performance.

Key Numbers

• $731.7M — Total Revenue (Nine months ended September 30, 2024)
• $695.4M — Real Estate Operations Revenue (Nine months ended September 30, 2024)

Key Players & Entities

• MACERICH CO (company) — Filer
• 20240930 (date) — Period of Report
• 20241107 (date) — Filing Date
• 401 WILSHIRE BLVD STE 700 (address) — Business Address
• SANTA MONICA (location) — Business City
• 90401 (zip_code) — Business Zip
• 3103946000 (phone_number) — Business Phone

FAQ

Key Financial Figures

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

Filing Documents

• mac-20240930.htm (10-Q) — 1833KB
• mac-20240930x10qexhibit101.htm (EX-10.1) — 156KB
• mac-20240930x10qexhibit311.htm (EX-31.1) — 10KB
• mac-20240930x10qexhibit312.htm (EX-31.2) — 10KB
• mac-20240930x10qexhibit321.htm (EX-32.1) — 6KB
• 0000912242-24-000130.txt ( ) — 11154KB
• mac-20240930.xsd (EX-101.SCH) — 80KB
• mac-20240930_cal.xml (EX-101.CAL) — 126KB
• mac-20240930_def.xml (EX-101.DEF) — 449KB
• mac-20240930_lab.xml (EX-101.LAB) — 880KB
• mac-20240930_pre.xml (EX-101.PRE) — 694KB
• mac-20240930_htm.xml (XML) — 1728KB

Financial Information

Part I Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 3 Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 4 Consolidated Statements of Comprehensive (Loss) Income for the three and nine months ended September 30, 2024 and 2023 5 Consolidated Statements of Equity for the three and nine months ended September 30, 2024 and 2023 6 Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10 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 31 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 49 Item 4.

Controls and Procedures

Controls and Procedures 50

Other Information

Part II Other Information Item 1.

Legal Proceedings

Legal Proceedings 50 Item 1A.

Risk Factors

Risk Factors 50 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 51 Item 3. Defaults Upon Senior Securities 51 Item 4. Mine Safety Disclosures 51 Item 5. Other Information 51 Item 6. Exhibits 52 Signature 54 2 Table of Contents THE MACERICH COMPANY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except par value) (Unaudited) September 30, 2024 December 31, 2023 ASSETS: Property, net $ 6,060,194 $ 5,900,489 Cash and cash equivalents 116,475 94,936 Restricted cash 113,503 95,358 Tenant and other receivables, net 130,075 183,478 Right-of-use assets, net 112,367 118,664 Deferred charges and other assets, net 279,280 263,068 Due from affiliates 3,207 4,755 Investments in unconsolidated joint ventures 775,362 852,764 Total assets $ 7,590,463 $ 7,513,512 LIABILITIES AND EQUITY: Mortgage notes payable $ 4,342,216 $ 4,136,136 Bank and other notes payable — 89,548 Accounts payable and accrued expenses 79,235 64,194 Lease liabilities 73,033 83,989 Other accrued liabilities 316,162 334,742 Distributions in excess of investments in unconsolidated joint ventures 190,701 174,786 Financing arrangement obligation — 102,516 Total liabilities 5,001,347 4,985,911 Commitments and contingencies Equity: Stockholders' equity: Common stock, $ 0.01 par value, 500,000,000 shares authorized at September 30, 2024 and December 31, 2023, and 225,947,306 and 215,976,614 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively 2,257 2,158 Additional paid-in capital 5,666,636 5,509,603 Accumulated deficit ( 3,157,064 ) ( 3,063,789 ) Accumulated other comprehensive loss ( 179 ) ( 952 ) Total stockholders' equity 2,511,650 2,447,020 Noncontrolling interests 77,466 80,581 Total equity 2,589,116 2,527,601 Total liabilities and equity $ 7,590,463 $ 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 September 30, 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

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 Nine Months Ended September 30, 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 $ 116,475 $ 111,802 Restricted cash 113,503 96,332 Cash, cash equivalents and restricted cash $ 229,978 $ 208,134 Recent Accounting Pronouncements: In November 2023, the Financial Accounting Standards Board issued Account

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 and nine months ended September 30, 2024 and 2023 (shares in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2024 2023 2024 2023 Numerator Net (loss) income $ ( 112,098 ) $ ( 271,965 ) $ 21,955 $ ( 344,565 ) Less: net (loss) income attributable to noncontrolling interests ( 3,909 ) ( 9,418 ) 4,865 ( 8,321 ) Net (loss) income attributable to the Company ( 108,189 ) ( 262,547 ) 17,090 ( 336,244 ) Allocation of earnings to participating securities ( 252 ) ( 213 ) ( 642 ) ( 655 ) Numerator for basic and diluted EPS—net (loss) income attributable to common stockholders $ ( 108,441 ) $ ( 262,760 ) $ 16,448 $ ( 336,899 ) Denominator Denominator for basic and diluted EPS—weighted average number of common shares outstanding(1) 218,420 215,632 216,884 215,461 EPS—net (loss) income attributable to common stockholders Basic and diluted $ ( 0.50 ) $ ( 1.22 ) $ 0.08 $ ( 1.56 ) (1) Diluted EPS excludes 99,565 convertible preferred units for each of the three months ended September 30, 2024 and 2023 and 99,565 convertible preferred partnership units for each of the nine months ended September 30, 2024 and 2023, as their impact was antidilutive. Diluted EPS also excludes 9,987,209 and 8,979,065 Operating Partnership units ("OP Units") for the three months ended September 30, 2024 and 2023, respectively, and 10,060,498 and 8,981,061 OP Units for the nine months ended September 30, 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 Scot

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) consolidated its 100 % interest in these five former Sears parcels in its consolidated financial statements (See Note 15—Acquisitions). 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 h

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