Q3 2024 Macerich Co Earnings Call Transcript
Key Points
- Macerich Co (MAC) reported continued improvement in operational results, with occupancy, leasing activity, and same-store NOI showing positive trends.
- The company is making significant progress on its Path Forward initiative, targeting a $2 billion reduction in long-term debt, with approximately 60% of this target already completed or in progress.
- Leasing volumes and metrics remain strong, with a 40% increase in deal flow compared to the same period last year, indicating robust retailer demand.
- Macerich Co (MAC) successfully closed several acquisitions and dispositions, including the acquisition of a partner's interest in Pacific Premier Retail Trust, which is expected to be accretive to FFO per share.
- The company has a strong pipeline of new store openings, with 2.5 million square feet of new stores expected to open through early 2027, contributing $80 million of incremental rent.
- Sales per square foot decreased slightly, with comparative sales down about 1% from the third quarter of 2023, reflecting cautious consumer behavior.
- The macroeconomic environment remains challenging, with consumers focusing on essentials and showing caution in discretionary spending.
- Macerich Co (MAC) will incur severance charges in the fourth quarter related to executive changes, resulting in a $0.02 reduction to fourth-quarter earnings.
- Interest expenses increased by $5 million due to rising rates, impacting quarterly FFO trends.
- The company faces challenges in re-leasing select vacant spaces, including former Forever 21 and Express locations, which are critical to achieving its NOI targets.
Ladies and gentlemen, thank you for standing by. Welcome to the Third-Quarter 2024 Macerich Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. (Operator Instructions)
Please be advised that, today's conference is being recorded. I would like now to turn the conference over to Samantha Greening, Director of Investor Relations. Please go ahead.
Thank you for joining us on our third quarter 2024 earnings call. During the course of this call, we will be making certain statements that may be deemed forward-looking within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995, including statements regarding projections, plans or future expectations. Actual results may differ materially due to a variety of risks and uncertainties set forth in today's press release and our SEC filings.
Reconciliations of non-GAAP financial measures to the most
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