Macerich Narrows Q3 Loss Amid Revenue Growth, Higher Debt Costs

TL;DR

**MAC is still bleeding cash, and while revenue is up, the massive asset write-downs and rising debt costs are a huge red flag for any long-term bull.**

AI Summary

MACERICH CO reported a net loss of $87.36 million for the three months ended September 30, 2025, a significant improvement from the $108.19 million net loss in the same period of 2024. For the nine months ended September 30, 2025, the net loss attributable to the company was $178.39 million, a stark contrast to the net income of $17.09 million in the prior year. Total revenues increased to $253.26 million for the three months ended September 30, 2025, up from $220.22 million in 2024, driven by a rise in leasing revenue from $203.45 million to $237.23 million. However, total expenses also rose, reaching $281.09 million for the quarter, compared to $240.24 million in 2024, primarily due to increased depreciation and amortization, and interest expense. The company experienced a substantial loss on sale or write down of assets, net, of $72.63 million for the quarter, and $97.11 million for the nine months, compared to a gain of $272.31 million in the prior nine-month period. Cash and cash equivalents significantly increased to $290.16 million as of September 30, 2025, from $89.86 million at December 31, 2024, largely due to $599.10 million in proceeds from mortgages, bank, and other notes payable during the nine-month period.

Why It Matters

Macerich's continued net losses, despite revenue growth, signal persistent challenges in the retail real estate sector, particularly concerning asset valuations and rising interest expenses. For investors, the significant loss on asset write-downs and increased mortgage debt ($5.08 billion) indicate potential erosion of shareholder value and higher financial leverage, making future dividend sustainability a concern. Employees and customers might see this as a sign of ongoing operational adjustments within the company's regional retail centers. In a competitive landscape, Macerich's ability to manage its debt and adapt its property portfolio will be crucial for long-term viability against more agile or better-capitalized rivals.

Risk Assessment

Risk Level: high — The company reported a net loss of $178.39 million for the nine months ended September 30, 2025, a significant deterioration from a $17.09 million net income in the prior year. This is compounded by a $97.11 million loss on sale or write down of assets for the nine-month period, compared to a $272.31 million gain in 2024, and a substantial increase in mortgage notes payable to $5.08 billion from $4.89 billion.

Analyst Insight

Investors should exercise extreme caution and consider reducing exposure to MAC. The persistent net losses, significant asset write-downs, and increasing debt burden suggest fundamental challenges that outweigh the modest revenue growth. A deeper dive into the company's debt maturity schedule and asset disposition strategy is warranted before any new investment.

Financial Highlights

debt To Equity

2.27

revenue

$752,279,000

operating Margin

-11.5%

total Assets

$8,423,928,000

total Debt

$5,146,640,000

net Income

$-178,389,000

eps

$-0.71

gross Margin

N/A

cash Position

$290,162,000

revenue Growth

+16.7%

Revenue Breakdown

Key Numbers

• $178.39M — Net Loss (9 months) (Increased from $17.09M net income in prior year, indicating significant financial deterioration.)
• $97.11M — Loss on Asset Write-downs (9 months) (A reversal from a $272.31M gain in the prior year, highlighting asset value concerns.)
• $5.08B — Mortgage Notes Payable (Increased from $4.89B at year-end 2024, indicating higher leverage.)
• $253.26M — Total Revenues (Q3) (Up from $220.22M in Q3 2024, showing some operational growth.)
• $72.70M — Interest Expense (Q3) (Increased from $57.10M in Q3 2024, reflecting rising borrowing costs.)
• $290.16M — Cash and Cash Equivalents (Significantly up from $89.86M at year-end 2024, boosted by new debt.)
• 256,118,084 — Shares Outstanding (As of November 3, 2025, indicating potential dilution from stock offerings.)
• $0.71 — Basic Loss Per Share (9 months) (Compared to $0.08 basic income per share in prior year, showing per-share loss.)

Key Players & Entities

• MACERICH CO (company) — registrant
• $87.36 million (dollar_amount) — net loss for Q3 2025
• $108.19 million (dollar_amount) — net loss for Q3 2024
• $178.39 million (dollar_amount) — net loss for nine months ended Sept 30, 2025
• $17.09 million (dollar_amount) — net income for nine months ended Sept 30, 2024
• $253.26 million (dollar_amount) — total revenues for Q3 2025
• $220.22 million (dollar_amount) — total revenues for Q3 2024
• $72.63 million (dollar_amount) — loss on sale or write down of assets for Q3 2025
• $97.11 million (dollar_amount) — loss on sale or write down of assets for nine months ended Sept 30, 2025
• $5.08 billion (dollar_amount) — mortgage notes payable as of Sept 30, 2025

FAQ

Risk Factors

• Increased Debt Load [high — financial]: Mortgage notes payable increased to $5.08 billion from $4.89 billion, indicating a higher leverage position. This increase, coupled with rising interest expenses, heightens financial risk.
• Significant Net Loss and Deterioration [high — financial]: The company reported a net loss of $178.39 million for the nine months ended September 30, 2025, a sharp reversal from a net income of $17.09 million in the prior year. This indicates significant financial deterioration.
• Asset Write-downs and Impairment [high — financial]: A substantial loss of $97.11 million on sale or write-down of assets occurred in the nine months ended September 30, 2025, compared to a gain of $272.31 million in the prior year. This signals potential overvaluation or distress in asset portfolio.
• Rising Interest Expenses [medium — financial]: Interest expense for the three months ended September 30, 2025, rose to $72.70 million from $57.10 million in the prior year, reflecting increased borrowing costs and the impact of higher debt levels.
• Increased Operating Expenses [medium — operational]: Total expenses increased to $281.09 million for the quarter, up from $240.24 million in the prior year, driven by higher depreciation and amortization, and interest expenses, impacting profitability.
• Retail Market Volatility [medium — market]: As a REIT focused on retail centers, the company is exposed to the cyclical nature and evolving trends within the retail sector, including e-commerce competition and consumer spending patterns.
• Dependence on Joint Ventures [medium — financial]: Investments in unconsolidated joint ventures are significant ($727.14 million), and performance of these ventures, as seen with the $57.69 million write-off in Q1 2024, can materially impact the company's financial results.
• Cash Position Boosted by Debt [low — financial]: While cash and cash equivalents increased significantly to $290.16 million, this was primarily due to $599.10 million in proceeds from new debt, not operational cash generation.

Industry Context

Macerich operates in the retail real estate sector, primarily focusing on regional malls and community shopping centers. The industry faces ongoing challenges from e-commerce growth, changing consumer preferences, and economic uncertainties impacting retail sales. Competition is intense, with larger, well-capitalized players like Simon Property Group and Brookfield Properties also navigating these shifts.

Regulatory Implications

As a publicly traded REIT, Macerich is subject to SEC regulations and reporting requirements. Compliance with tax laws specific to REITs is crucial for maintaining its tax-advantaged status. Changes in accounting standards, such as those related to income tax disclosures, require ongoing attention and adaptation.

What Investors Should Do

1. Monitor debt levels and interest coverage ratios closely.
2. Analyze the drivers of revenue growth and expense control.
3. Evaluate the performance and risks associated with joint ventures.
4. Assess the impact of asset write-downs on future valuations and cash flows.
5. Consider the dilutive effect of potential share issuances.

Key Dates

• 2025-09-30: Quarterly Report Filing (10-Q) — Provides updated financial performance and operational details for the period ending September 30, 2025.
• 2024-12-31: Year-End Financial Statement Date — Represents the prior fiscal year-end balance sheet figures used for comparison.
• 2024-01-10: Boulevard Shops Loan Refinancing — Illustrates ongoing debt management within joint ventures, with a new variable rate loan.
• 2024-03-31: Los Angeles Premium Outlets Investment Write-off — Demonstrates significant impairment losses from joint venture investments, impacting prior year results.
• 1994-03-16: Company IPO — Marks the commencement of the company's operations as a publicly traded REIT.

Glossary

REIT

Real Estate Investment Trust. A company that owns, operates, or finances income-generating real estate. (Macerich is organized as a REIT, which has specific tax and operational requirements.)

Accumulated deficit

The cumulative net losses of a company that have not been offset by net income. (Indicates the company has historically incurred more losses than profits, with a deficit of $3.72 billion as of September 30, 2025.)

Noncontrolling interests

The portion of equity in a subsidiary that is not attributable to the parent company. (Represents ownership stakes in consolidated entities not owned by Macerich's common stockholders.)

Variable Interest Entities (VIEs)

Entities for which equity investors do not have sufficient risk or return to control the entity, requiring consolidation by the primary beneficiary. (Macerich consolidates VIEs, meaning their assets and liabilities are included on its balance sheet.)

OP Units

Operating Partnership Units. Units representing ownership in the company's operating partnership, often convertible into common stock. (These units are considered in EPS calculations, and their dilutive effect is noted.)

SOFR

Secured Overnight Financing Rate. A benchmark interest rate for U.S. dollar-denominated derivatives and loans. (Used as a reference rate for variable interest loans, impacting interest expense.)

Depreciation and amortization

The systematic allocation of the cost of tangible (depreciation) and intangible (amortization) assets over their useful lives. (A significant non-cash expense that increased substantially, contributing to higher total expenses.)

Equity in income (loss) of unconsolidated joint ventures

The portion of a joint venture's profit or loss attributable to the investor's share. (Shows the performance of investments in joint ventures, which can be volatile, as seen with prior year write-offs.)

Year-Over-Year Comparison

Compared to the prior year's nine-month period, Macerich has seen a significant shift from net income to a substantial net loss, indicating a severe deterioration in profitability. Total revenues have grown by approximately 16.7%, primarily driven by increased leasing revenue. However, total expenses have also risen considerably, outpacing revenue growth and contributing to the net loss. A key concern is the reversal from a substantial gain on asset sales to a significant loss on asset write-downs, highlighting potential asset value impairments. The company's cash position has improved dramatically, but this is largely due to increased borrowings rather than operational cash flow generation.

Key Financial Figures

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

Filing Documents

• mac-20250930.htm (10-Q) — 1767KB
• mac-20250930x10qexhibit311.htm (EX-31.1) — 10KB
• mac-20250930x10qexhibit312.htm (EX-31.2) — 10KB
• mac-20250930x10qexhibit321.htm (EX-32.1) — 5KB
• 0000912242-25-000076.txt ( ) — 10543KB
• mac-20250930.xsd (EX-101.SCH) — 80KB
• mac-20250930_cal.xml (EX-101.CAL) — 112KB
• mac-20250930_def.xml (EX-101.DEF) — 428KB
• mac-20250930_lab.xml (EX-101.LAB) — 848KB
• mac-20250930_pre.xml (EX-101.PRE) — 676KB
• mac-20250930_htm.xml (XML) — 1593KB

Financial Information

Part I Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 3 Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 3 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 4 Consolidated Statements of Comprehensive (Loss) Income for the three and nine months ended September 30, 2025 and 2024 5 Consolidated Statements of Equity for the three and nine months ended September 30, 2025 and 2024 6 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 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 33 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 50 Item 4.

Controls and Procedures

Controls and Procedures 51

Other Information

Part II Other Information Item 1.

Legal Proceedings

Legal Proceedings 51 Item 1A.

Risk Factors

Risk Factors 51 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52 Item 3. Defaults Upon Senior Securities 52 Item 4. Mine Safety Disclosures 52 Item 5. Other Information 52 Item 6. Exhibits 53 Signature 55 2 Table of Contents THE MACERICH COMPANY CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except par value) (Unaudited) September 30, 2025 December 31, 2024 ASSETS: Property, net $ 6,730,869 $ 7,097,113 Cash and cash equivalents 290,162 89,858 Restricted cash 90,441 87,621 Tenant and other receivables, net 129,880 155,350 Right-of-use assets, net 111,813 111,037 Deferred charges and other assets, net 341,915 369,553 Due from affiliates 1,709 1,840 Investments in unconsolidated joint ventures 727,139 654,667 Total assets $ 8,423,928 $ 8,567,039 LIABILITIES AND EQUITY: Mortgage notes payable $ 5,076,908 $ 4,894,525 Bank and other notes payable — 98,323 Accounts payable and accrued expenses 128,426 87,540 Lease liabilities 69,732 71,683 Other accrued liabilities 368,006 379,863 Distributions in excess of investments in unconsolidated joint ventures 199,308 192,680 Total liabilities 5,842,380 5,724,614 Commitments and contingencies Equity: Stockholders' equity: Common stock, $ 0.01 par value, 500,000,000 shares authorized at September 30, 2025 and December 31, 2024, and 256,296,193 and 252,925,496 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 2,561 2,527 Additional paid-in capital 6,223,906 6,160,780 Accumulated deficit ( 3,715,452 ) ( 3,406,786 ) Accumulated other comprehensive loss ( 11 ) ( 34 ) Total stockholders' equity 2,511,004 2,756,487 Noncontrolling interests 70,544 85,938 Total equity 2,581,548 2,842,425 Total liabilities and equity $ 8,423,928 $ 8,567,039 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents THE MACERICH COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS

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, 2025, 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, 2024. 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, 2024 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, 2025 2024 Beginning of period Cash and cash equivalents $ 89,858 $ 94,936 Restricted cash 87,621 95,358 Cash, cash equivalents and restricted cash $ 177,479 $ 190,294 End of period Cash and cash equivalents $ 290,162 $ 116,475 Restricted cash 90,441 113,503 Cash, cash equivalents and restricted cash $ 380,603 $ 229,978 Recent Accounting Pronouncements: In December 2023, the Financial Accounting Standards Board (the "FASB") is

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, 2025 and 2024 (shares in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 Numerator Net (loss) income $ ( 89,995 ) $ ( 112,098 ) $ ( 182,693 ) $ 21,955 Less: net (loss) income attributable to noncontrolling interests ( 2,635 ) ( 3,909 ) ( 4,304 ) 4,865 Net (loss) income attributable to the Company ( 87,360 ) ( 108,189 ) ( 178,389 ) 17,090 Allocation of earnings to participating securities ( 194 ) ( 252 ) ( 581 ) ( 642 ) Numerator for basic and diluted EPS—net (loss) income attributable to common stockholders $ ( 87,554 ) $ ( 108,441 ) $ ( 178,970 ) $ 16,448 Denominator Denominator for basic and diluted EPS—weighted average number of common shares outstanding(1) 254,130 218,420 253,407 216,884 EPS—net (loss) income attributable to common stockholders Basic and diluted $ ( 0.34 ) $ ( 0.50 ) $ ( 0.71 ) $ 0.08 (1) Diluted EPS excludes 99,565 convertible preferred partnership units for each of the three and nine months ended September 30, 2025 and 2024, as their impact was antidilutive. Diluted EPS also excludes 10,714,464 and 9,987,209 Operating Partnership units ("OP Units") for the three months ended September 30, 2025 and 2024, respectively, and 10,817,668 and 10,060,498 OP Units for the nine months ended September 30, 2025 and 2024, 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 January 10, 2024, the Company's joint venture in Boulevard Shops replaced the existing $ 23,000 mortgage loan on the property with a new $ 24,0

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) June 13, 2024, the Company accounts for its investment in Chandler Fashion Center under the equity method of accounting (See Note 12—Financing Arrangement and Note 16—Dispositions). On June 27, 2024, the Company's joint venture in Chandler Fashion Center refinanced the existing $ 256,000 loan on the property with a $ 275,000 loan that bears interest at a fixed rate of 7.06 %, is interest only during the entire loan term and matures on July 1, 2029. The Company received a distribution of $ 17,700 in connection with this transaction. On June 28, 2024, the Company's joint venture in Country Club Plaza sold the property for $ 175,600 . Concurrent with the transaction, the remaining amount owed by the joint venture under the $ 295,470 loan ($ 147,735 at the Company's pro rata share) was forgiven by the lender. On July 31, 2024, the Company sold its 50 % interest in Biltmore Fashion Park, a 611,000 square foot regional retail center in Phoenix, Arizona, for $ 110,000 . The Company used the net proceeds to pay down debt. The Company recognized a gain of approximately $ 42,815 in connection with this transaction (See Note 6—Property, net). On October 24, 2024, the Company acquired its joint venture partner's 40 % interest in the Pacific Premier Retail Trust portfolio, which includes Los Cerritos Center, Washington Square and Lakewood Center, for a net purchase price of approximately $ 122,132 , which includes the assumption of the partner's share of property level indebtedness. As a result of this transaction and the shortening of holding periods, an impairment loss was recorded by the joint venture. The Com

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