MAC - Earnings call transcript Q2 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Second Quarter 2024 Macerich Earnings Conference Call. [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.

Samantha Greening

Thank you for joining us on our second quarter 2024 earnings call.

Private filings. this be will meaning and in regarding SEC deemed Safe of of uncertainties of statements making of and projections, course Act risks due harbor may Reform press to expectations. Actual today's our that forward-looking the differ plans the or call, including forth results be we release certain the of future During XXXX, Litigation may statements materially Securities set within variety the a Reconciliations measures in comparable earnings SEC, on financial website on of measures release GAAP macerich.com. company's with the posted X-K at filed directly non-GAAP the most the to of Investors supplemental are the the included are Form section which and

Chief Vice Healey, that, Senior Executive Officer; Joining call today of Vice turn us Scott the President and to Doug Chief over and Executive Financial Senior Officer; Executive like to Leasing. With President Jack. are Jack I'd President and Kingsmore, Hsieh,

Jackson Hsieh

I on Since Samantha. on forward you, Thank the making of reducing solid performance And leverage. X, we business; our X, XX, our to progress path improvement. simplifying earnings call announce that operational are X, April am last pleased

RED to debt on partner we in deal Park sale of which the $XXX applying Our and sales our outparcel our finalized is ranking XX% we today our in $X.X and second quarter, closed Steady million and Macerich. the on in property allocation Fashion capital Eddy's for interest Biltmore will an focus properties at are and Fortress, criteria the million asset within Development, operational Eddy categories. On sold we reduce

our On completed single robust Santa Monica enclosed for loan asset give marketing at sale preparing discussions are outparcels on the lender also Club process short a are we Country sale Plaza in process We Place. and backs, of our portfolio. and across centers

By $X.X of over Monica year-end is property by performance which from X Plaza, an objectives. Operational the path forward million. billion contributor Country in teams to XX% leasing, reduction, and seaboard expect large have approximately reduce outparcel to reduction XXXX, sight will debt management on to Macerich Fashion on Santa leverage goal NOI reduce billion is and ratio billion total Biltmore improve. billion $XXX line Place, of focus There to rapidly Eastern our the are debt an Club $X debt. Our we of Park our continues East asset overall management to plan. Coast $X acute at important our assets, $X

performance, which in be X within to in overall enhance are center New negotiations leasing our into momentum House Fortress in centers. Adding those will on locations anchor traffic centers Eddy Steady initiative. continues our Sport We portfolio and portfolios, also and important concept of an Dick's

in The Our more releasing XXXX. square X.X% spreads in and and result respectively. momentum $XXX deals XX.X%, same are NOI company-wide store and and namely releasing on sales deals, square overall leasing pipeline positive in all foot, for occupancy, excluding properties overall per will Eddy's noteworthy, executed our are X.X% portfolio and XXXX, XXXX, per spreads lease NOI foot,

to ways productivity team to and months, lease, company-wide our lease later X significant efficiency, to on through will town of team elimination process our we free internal made last the progress today. meaningful our and identifying recently Directors meeting meetings the spreadsheets company enhance and leasing and the improve hall calls. We to roll our Board entire will redundant our had of which company, present process out the visibility During up we've significant leasing in across through improvement this

Macerich. $XX share approximately projects will incurred has incremental $XX million been are projects efforts $XXX on redevelopment Scottsdale cost Square, Crossing and at in of Acres Flatiron Fashion provide very these will to NOI In now Mall. Our at Green million focused and an which X cost in total, million

Diana over human the to Management pleased call Asset a Alic rejoined now turn Team, update. Doug Team, front, for congratulate joined who Directors. I Kelso, Spirit's the leasing and will Board of capital has Macerich's am Asset Management Ola to former Kayode I Laing Co-Heads and our On of

Doug Healey

than stores. to XXXX, new This SanTan properties, of Scheels positive XX.X% basis Target. ago. of up and definitely been Target did. Other Interest basis on In XXx Mankind both almost most somewhat as occupied. Swarovski trend. Through quarter from had and traffic excluding the nearly there's & GAP Thanks, first nature at Rally was playing we we opened highly Queens this X% which the per Mall, In at the now Sears metrics. consumer Fashion Chicago, showing foot we Primark excluding Square, XXXX. XXX,XXX Johnny brands X more XXX,XXX $XXX. in and square stores operate terms consumer centers of to this are flat. of second in X the of the Crossing, we part former are second more period the We less include end Trailing a is income markets at in as is remains quarter, is Center portfolio fluid by Shade square X, and years Danbury our spreads their level the we Sales another leasing now X% the during shift anticipated year-to-date The the Comp our Primark the positive store House in is is noteworthy and the second Fashion we remain Outlets square of as XX.X%. Eddy a brings XX% properties, category, in across same quarter Target at Sales up significantly Scottsdale Fair track quarter, at down the balance spreads. Deptford Jack. total are second solid of For At in and square levels quarter Flatiron Portfolio way discretionary quarter of will produce and and the leasing the XX.X%. on box, ULTA and and where points Sports, and sales Eddy fall a fleet. Occupancy declining more and XX-month sales are were generate All XX Beauty X and per X and the warehouse XX XXXX. this Fashion is year this, year and points on completes designer quarter as non-discretionary half level result compared Center, Chicago second up that one remix well XXXX. At to base positive. relative to and was XXX% sales in from Taylor be from lower by rates year-to-date at of shoe XX, Vuori affected second quarter almost fashion Mall. in feet, notable occupancy, flat opened rent outlets top XXXX of and joins the which opened foot of XXX,XXX opened Only trends. especially the the leasing square interest this should All was traffic Scottsdale traffic opening volumes Most of openings June our were first is the emerging but former one This our a which This Village $XXX. Chandler footage of of in square foot, the Sears box. at to is moderate opened feet at still below the represents Fashion noticeable Rowan Collectively, were Was in Thankfully, also where cautious, inflation at spending. the Lord which Square. our

we Finally, Outlets Square. in of Corner, Chicago. MANGO Arrowhead garage the Tysons Sandro at and Washington international opened at Towne in category, Center Fashion at

Ketch we've Chandler Center, look Build-A-Bear the Psycho very last call, was of million renewal Elefante quarter. Fung new feet. with our at and of Missouri open leases Center, Hansen announce early restaurant Square, Notable Tysons discussed signed XXX excited at Altered in second in Noble XXX,XXX of Center, XXXX in the the & will at TravisMathew and Scottsdale square signings XXth leases Din Fashion Chicago the Outlets newly Fashion we're Nordstrom the in will Washington Broadway Din in very States at and for Tysons Princess Arrowhead include renowned Street, at the Scottsdale Rothy's second signing quarter, Fashion let's feet, Chinese store. The second the world we at Queen join Fung. at brands Tai Square, Towne and and created as Bunny category Helly quarter at direct the to porte emerging leases Chicago. At on Tai of Plaza for and we Madera at Carhartt X.X the Fashion and Now access the wing, includes Barnes quarter will new Corner, cochere at recently provide luxury signed and porte at Hermes leases And Washington In Corte Yoga square signed the signed we second Square. Polly in cochere. active Corner Outlets and announced Square, which more to ALO year-to-date,

Milano mainly at the former several eager will join complete to Fashion format center international Kiko Sears to leases Primark diversity space And City, Target just round signed at large including we square with caters Asian of Queen of and shopping In we signed Chicago, Fashion and Class-A quality lease Filipino retailer Center, the City XX,XXX at foot building. JV once our to and centers. a Seafood the of occupy Center. Danbury, in Seafood remerchandising one Chandler high at the market. Lastly, Inland that the again grocery speaks a this like users Outlets Sports with brands Arc'teryx Adidas, to

square We and that our at space of footage in close, to our renew XXXX with intent not another lease XXXX expiring Looking stage. on XX% commitments XX% have of of now the is expected letter expirations.

of point To the on it's decrease in letters closures. only basis feet, to this in renewal and or LOIs, quarter, largest who for space had we there's square quarter close subject be done square a a was excluding leases our XX,XXX locations this will of on range. In the XX and us commitments XX between footage, square in exactly XX time we're negotiating year. low of feet that locations, XXX,XXX worth either square the retention Express, been portfolio second almost filing a third replacement we Express, where total XXXX at our filed XX,XXX our of year. Further, noting portfolio with totaling of So date, tenants intent in XX% healthy currently in feet feet. expiring those square occupancy. for we're our the paid And bankruptcy very XX bankruptcy resulting XX% XXX,XXX were rate anticipate the or Of in tenants to last XXXX X trading

leasing quarter, end into second our which leases early for feet of to square X.X XXXX. the to of new pipeline, had Turning million the and expect open the during of XXXX, XXX stores, we we XXXX remainder

In into negotiating XXXX early addition open totaling a million these we're half for currently XXXX during leases of the and new signed just square remainder to over leases, feet, will which a and XXXX. stores

rent incremental I'll and go in store $XX.X openings and now total, new over openings will transactional quarter to the So that, second call And XXXX, turn XXXX. And feet and be realized year through pipeline this which aggregate, beyond. results store accounts XXXX of square for through million of to XX new this in our activity. of with recent million leasing Scott that's remainder in of the

Scott Kingsmore

was per FFO per $X.XX or second was share million, with quarter or income. X.X% per or $XX expectations. than This than the excluding quarter, of lower $XX our increased was Doug. which you, lease $X.XX quarter per termination FFO NOI $X which for consistent share, less million, during share. the second the center XXXX, was during Same million, Thank $X.XX share,

factors quarterly results consistent One, million expense. the worth relative last trends follows. as increase FFO increase in increase driving noting million expense, to interest amortization the debt these are While accrual assumed primary It's of that interest in fairly Arrowhead a that year, half $X were to the bad contributing for large acquisitions bad debt was mark-to-market primarily tenant. the the Plains of on Mall. Two, South a from and in from a $X debt national by driven discount a non-cash of

through land And balance been center receivables. had is reserve this GAAP two, their amortization rental reserve during million work tenant, particular on $X to this in circumstances, the factors approximately that above X.X% from dictates which outstanding sale quarter, share. point would growth a of noting While Offsetting this below One, and negative from that XX and basis absent sheet we have in from the following. matters. acquired dilutive approximately accrue continue considering with same GAAP were FFO market million adjustment. gains, leases. Onto must impact the It approximately an these against increase at we worth second the negotiations increases revenue in income non-cash also $X NOI

Both $XX addressing to South X.X% Arrowhead by Plains existing million forward We previously path well Arrowhead of XXX% no are both debt continue we solid and as approximately owned cap XX% our our plan. acquisition and connection May assets in make now disclosed. transactions We XX, acquisition for assets. The acquired we've we South incremental the for Macerich. the closed for on with rate the debt progress consideration. of the paid as was execution of with which share of maturities Plains, On partners

massive are dominant which June million XX, $XXX totaling insurance at a billion scheduled XX, year, we few closed of of a X-year ownership loan and X-year the X our Chandler X.XX%, Fashion major Center visitors the joint during the only matures Town in a million existing venture million company XXXX. is $XXX on next over As loan refinance to entire life the $XXX manufacturing now approaching the million of infrastructure interest with on Center. On enthused bears Arrowhead $XX extension closed June traffic new The loan interest This to we nearly lender. liquidity of especially years, Arrowhead, realized term, since consolidate LifeCo with deal a per X noteworthy lender. and the extremely per foot the in XXXX. first $XXX major with and company of was of it matures million loan Oaks, On annually, microchip our and is investment years over market of $XX transaction. million with in retail financing from sales the $XXXX with July The loan a May nearly

closed our important sale based happened of venture that return leverage for effectively the million XX the transaction, the short Club sale increase by Interest at joint this Plaza on and are completed NOI transaction low balance XX, Country of debt forgiven City. our capital The see offset We very was million our owed on albeit and in by the amount June both pleased lender. the Concurrent our source $XXX roughly approximately the under joint at was venture remaining of basis time. On closing. loan to yield Arrowhead selectively to current points, sector, by partners this leverage at Kansas the $XXX a This in single-digit Plains the debt acquisition which to improved from Mall outstanding JV in overall resulted South in May. with

we X% in million. Fixed XXXX. to be mid interest year last expect The rate remaining is in is refinance locked loan but are maturity of new the The and in to process Mall million Valley. loan the $XX of matures be the to a September. loan yet range this determined, is the be in and XX-year of We this it closing on expected $XXX The Victor

We are received the financing sourcing this by Queen very proposals for the the very market Center. be productive will transaction well believe financing today marketplace. We in

a strong. debt Year-to-date, less million, and Following have retail million totaling million for that that of at occurred actually $XXX have nearly in of remains the a sale available which result $XXX that the for of by million been matures we X share. The $X.X market $XXX our balance is billion closed of liquidity. very $XXX is our enhanced approximately hour than This share. We transaction, we financing of across has at totaled our at XXXX, in estate or robust the the very, X open A company transactions XXXX Class roughly our as Biltmore, now follows closing or This have financing very which loans. last wide currently and real activity will $X.X during or billion $XXX XXXX, of million so. share

transaction. liquidity including today, of we roughly So $XXX available that million have

made thus is XXXX, our found XX have on newly the added leverage reflected We schedule, far progress our good leverage supplement. in X-K which on Page as reducing of

as our balance over turn to to believe the end leverage at by the to may end year, compared We leverage it range for reduce transaction for low XXXX. With the Xx I that, the Depending to XXXX. on open we X.XX call we year able our Q&A. will the of have of X.XXx success the to operator to reduced be now up

Operator

Instructions] first Spector Securities. America Jeffrey Our of Bank [Operator question comes from with

Jeffrey Spector

ask you've when remarks, to timeline at able going you a goals. long maybe chip be in follow-up was first changed term to on opening your goals ended. the all? laid that I the It you Has really My all Jack, the think at question had to Scott I has out timeline seems, as started guess, you'll about said previously? achieve you to away, shortened where

Jackson Hsieh

happening on I plan. I I that's piece, faster. the or say and as the track. track. reduction Jeff, think NOI And we're I is the the are probably asset mean, sales that's than in along wouldn't would slowing debt on going leasing say planned. faster

So, like $X of to year a $X.X I a debt in be able reduction billion end. we'll range to said, describe billion by

So ahead we're that way schedule front. making of feel we on like

Jeffrey Spector

I I about in to is guess, the And Joint sell a my venture a Fashion your top bit asset. follow more rationalization up can you believe Biltmore then on little that's that Park. talk asset? considered Again, interest

Jackson Hsieh

category. It's location. lifetime we good project, It's our to That Steady had that asset. into added project the fitness office on a increase a as new Eddy entitlements in very density

liquidity. It's retail more overall use like So component to that good good was our partner. raise felt for we over time, our that was judgment, to going that a to project. mixed In have way balanced a

the were when it consider able Phoenix Arrowhead. the control complete our leasing extremely we over still maintain market, to greater you they're marketplace think within happy gain in about and position I especially

So just across parcel sort ownership of properties. part and moving with

Operator

And our comes with from next question Citi. Craig Mailman

Seth Bergey

on the like, Seth I the guys that have that rate for is cap transact rate? This around could think X.X% on Craig. pending Bergey how other other, asset portfolio cap in many do your you you assets guess with sale

Jackson Hsieh

just cap get And rate into as a not these at continue rather that. assumptions. I'd kind give we Look, it updates to gave We I'll We'll complete sales. you of range. wide leave

Seth Bergey

you the the color can or with backs Okay, great. the any And Monica is then works? give updates any just or there around negotiations follow-up, on give other you any in give there, timing potential can the lenders for Santa

Scott Kingsmore

plan least We on management second Yes, the probably that next a I'll to of half be comment in do through of involved that. into XXXX. standpoint, asset, better at from the part year

have at that managing to we liberty we'd perform which but the all to We Studio, when probably That would comment will do frame the to at asset. the time be tenants end those off continue is XX bring in of Museum, months take campus. to time, I'm uses continue expect certainly we to It's be Arte involved Tai on undetermined on. another some Uses to title. that's for certainly terms like But high Din work Club be as that to Fung, fitness. least

Operator

And question with our next comes from Samir Khanal Evercore.

Samir Khanal

a I'm you to and pool in that open Jackson, can deep malls that I buyer on comment market have guess today. maybe enclosed trying air Guess centers? Hey, figure out maybe market transaction it's brasses back how and whether take the you and step the is

Jackson Hsieh

days, not strategy different market selling say malls more schedule. kind have relates particular be the don't to buildings. or our have monetize would properties commercial as to that we I just have it the whether a mean, I assets tell we mind big I is that any challenged. to trying on it's in these office you They're Look, to easy that of

just other to I to I regional that a sale ask think you the believe the execute of on mall, now. that close to with and But we now. obviously, leave I'll at works if were some do would tell it's professional right market not able that I easy We'll be it that. you right that we're at ones as to give reports them. just we'll in And continue assets

Scott Kingsmore

a past, buyer the a which are different high and focusing think could think marketplace. to we And we spoken think this we thing have those fairly on in well. outparcels, one and just do Samir, and do type too, pool freestanding execute there's These to anticipate with add, wider we've buildings also credit of tenants, we

than aspect we've but another continue that's that's we'll past, in just to So plan was the much our aspect think an and of Like you to. referring that of Jack I guys that's to Jack market what said, progress it, plan. our spoken a report about on broader

Samir Khanal

Okay, over just got guess, I said you you about, shifting spoke think I it. to And XXX,XXX. Doug, you,

of X.X color with What's approaching space of provide that of kind maybe maybe million conversations been they're for economic the going on side, a potential those slowdown, any, as think, you're pushback, sort next more said and are negotiating, You how 'XX 'XX, kind bit of the year. this I in maybe if tenants.

Doug Healey

an leasing will where pipeline. of go really indication me, we where of deals will into a a today, was weeks, committee. And this go-forward of is record were this close that part I And second is last year Samir, that of in of comment market the of Hey, lease, we an we the I to year-to-date robust. committee and I'll environment reviewing is, flat, this That's to signed, terms we're we've that today, of I every and I review the end very year-to-date, the question first, market where looking refer were regardless deals the being to into we XX% keep you year-to-date year. but in on this where talked about like about to, will. What X are the are leasing second retailer think talked of we basis. And pipeline get quarter, the is tell last like signing in rearview funnels we terms have and we executive versus where mind, go sales will sort still our our very, where in that's you and of leases can on sales, ahead to that before, mean, in sort if mirror, year. very year

we pipeline. with pleased very with regard And we're to So where are. the

have million we You signed they're in And square I refer for Those we're is said million negotiating. square the that bank. feet are feet. XXX the we to X.X X.X believe leases what signed,

negotiating we're X.X million square leases over with addition, In feet.

and million square next X.X over new openings that's X feet the year store this years. of So through

Operator

comes the Dijkum van question Point. Floris next with Compass from And

Floris Gerbrand van Dijkum

Hey, a guys, a except It guidance, store I X.X%, think not in big it's question. to reserve the think have for half of for to know the you're and into But way the I pipeline same NOI obviously second mentioned opening NOI right about in half this Is X.X%. giving the that's accelerate underlying second bad you debt. but, would this came at 'XX? going been the this year. Scott, you've of got growth, year in

Scott Kingsmore

accurate. lot think significant. of that is signed Yes, openings, Floris. I but We'll The think that's pipeline have I which open a means pipeline. very that's not

space. openings, as start I down think of I of some tick your next NOI just about pace think a larger of probably the the format over several growth of is accurate. function quarters, the we'll the to including But the course commentary

Floris Gerbrand van Dijkum

mean, could other the is, recall. CMBS Is debts, was of as think be curious early I here transaction? you the LifeCo? you how million do I then $XXX going tight are that what mean, you to but I'm what going lenders if little have that be of And what's spreads a obviously, I days, terms a Queen around for Center I that X.X%, the get? maybe to, think from to, competition hearing and question And it's do like in or to a is I expect

Scott Kingsmore

Yes, CMBS It's significant A lot questions believe a try be and do will to them a going be that sub of I'll execution. there. financing. I all. hit

We reduce there. we'll somewhere and the [ the could leverage ] X reduce it X.XX think I in range.

I contested Queens. market. profile very probably a think will received be for appropriate It'll hotly asset. It very well a by be more that's leverage the

fact, in it, and been have it lenders, actively review getting that to on doing looking they're and the relationship today. bid major forward Our to opportunity asset

Obviously, on comment spreads. half. to here moving early better too into in a it's we're the environment So, rate second

in In I better I Queens speaks, fact, the much we'll a will the hit know more, Powell I'm a executed a time year, market rate think if bit for but after sure. hour than maybe looking Chairman forward. probably be probably little earlier that's we'll this But guess at great we transaction. had next

Operator

And Tibone next the Street. Green with from Vince question comes

Vince Tibone

refinancing to about your Victor that how versus back on lenders? deleveraging thought and one Just the balance Valley the Can handing the versus you seeking goals the million discuss you there? $XX additional of thought curious striking there process equity right

Scott Kingsmore

a is Valley asset. Victor Yes, solid

fact, here and space game about firmly of is It's lot top high it. a going town reducing an Victor convicted there Valley. And there has occupied. certainly the of occupied It's We in not every kind but part it. is XX% It's today, believe overall that of community leverage desert In one momentum of believe asset. for I our our XX virtually relevant. assets, still is It's it's only of asset we goal. in with great a the

a for think difficult decision us don't one I that was So make. to

Vince Tibone

pretty Is or stable potential there form? intermediate asset current its there, it any helpful. No, of that's your is term near or in kind redevelopment

Scott Kingsmore

we a the location on one say opportunity have the backside have of sourcing would I center, the is, do we concepts Sears and dark right we're now.

So the opportunity that's it. probably biggest reposition to

Vince Tibone

it kind of that But it. retail than Is sounds probably that's Got more fair? densification. like larger any

Jackson Hsieh

retail or like retail could be be It'll correct. entertainment use, that's Yes, oriented.

Vince Tibone

numbers are but of helpful. million one in that share yet commencement new timing No, Just of the could thinking the term for 'XX that's leases about think If versus signed really that. How more. not open? help about any about squeeze helpful guideposts rest how $XX us to we should this near I after That or much year would think make versus be these of commencing the really growth.

Scott Kingsmore

and as got It's worth pipeline $XX building the balance. One that's at into is pipeline. about leases finalize million online And which bucket. continue noting, in frankly, the $XX million. put million coming We've them from then revenue 'XX 'XX roughly million XXXX, we still thing $XX stands at to is, today. that XXXX, to tracking $XX

about the for time quarters that And continues or measuring think X I so to do, that's every pipeline grow. we now.

does demand speak really dealing that with. the we're to strong environment So

Operator

Linda And next Tsai from comes the question Jefferies. with

Linda Yu Tsai

How out falls think maybe where and end do of the about year? end towards next you then year occupancy

Scott Kingsmore

go ahead I'll Linda, and take that.

I think quarter. at stores the Doug Express, we've the end as got, of second open were their all mentioned,

about the point where leases as occupancy third hit were their We will closed. the see stores XX rejected basis in ultimately XX a quarter

somewhere most time I year. right expectation between we'll is fact, get offset continued do I next we My land to to are closed think, now. In of we'll the growth end by to of see But the those, that. XX% think XX.X%

I But look I year our with closures. dealing exclude again, think did, that's Express that retailer new is occupancy and of think future noteworthy, on our think that pretty in the excessive space that we're got As see of I back into right probably in to the don't but forward a been I one groupings negative and There balance, an them, that strong from portfolio it's in going and through only impact Doug XXXX. Jack amount major now. we're aside, continue take XXXX based retention. working with We've you renewal, assets, full highlighted potential could maybe terms I we're immediate rankings, really should XX%. when almost and you see our us grow. It's parsing once we too, Eddy occupancy also to start on this, good

excluding of Within X% the occupied. temporary temporarily to improving And space Eddy's, we've the the moving group, quality and of got that occupancy there than focus our less so will really, permanent. be

into our trying focus portion to the push so. So will high a big be Xs down that or of

Linda Yu Tsai

remind this pandemic? look of And you what had the out then since annually bankruptcies coming only numbers think said XXX,XXX square you year. that I you us like Can feet

Scott Kingsmore

sure. got stats Doug, Yes, there. right you've the

Doug Healey

So XXXX, just looked the couple last years, Express. XXX,XXX XXX,XXX at and excluding feet If XXXX square I over feet.

In X-thirds in of XXX,XXX JC including watershed course, it feet X square About XXXX was those fact, were of and million we about feet Penny. about in each feet 'XX. And XXX,XXX years, of had was a in 'XX which file, 'XX. year that

Operator

next Goldfarb Piper And Sandler. from with the question Alexander comes

Alexander Goldfarb

X questions.

discretionary headlines in the seen maybe quality, versus stores really hear it's we've there's comments do fact in to on when non-discretionary. how some look First, but been the it's at tenant some said, results, to credit some initially of back about pulling the so consumers obviously, interpret with. just you more just the changes really guys bankruptcies, But Obviously Like good the negotiations and going with few just one QSR headlines strong. front. from that these we of you're you that

we So happening about how do retailers store actually the some level. these with what's versus between at explain the see headlines we the consumers some reality disconnect of expressing issues of

Doug Healey

I see Doug. my Hey, remarks said that our basically flat. no Alex, doubt opening in I take Yes, and one. in we're we it's think portfolio, I'll all deadlines,

industry However, X% what we're the reporting and anywhere some industry with hearing X% down. from to maybe in of the experts is

new time really for earlier, the retailer as testament is being, I of I that the a flat So affecting aren't sales argue could demand. it. Number you one, And a it's the our up. there's couple said I portfolio. And believe reasons think to for

portfolio. Our

macroeconomic Walnut we Creek or City properties. there's LA whether DC, it's in XX years nature I York the of signing sales right If years. and that or terms have terms retailers Marin longer you think New we're for are they're And, in some or looking mean, out yes, Scottsdale of or But, leases must environment. or noise X Washington to in much about in, there now and markets

And it's portfolio. our the seizing are a to think that real just they're I So testament opportunities out there.

Alexander Goldfarb

Jack, months question been second at And now Okay. helm X the X, is, now. for you've

there see point, to of areas to matter you to versus and you years is years Everything X heavy plan. Are based there any time to get execute this the work time the be you where hood go a I'm feel sort are execute. the You've of had really needs particular done there, areas trying just it's or talk a will? under are of areas the if requires more like to that plan? Or to do X to trouble at what understand through what the elements next to good you people, changes", really "mechanical some just sort processes. execute your in portfolio, chance to the view

Jackson Hsieh

don't that. start any changes to have with mechanical We big

I just this we're think strategy. our it's just, realigning around efforts

we're we're happen, going next realignment to the seeing That's already have there's clear on, assets of said. resources. the real more of of focused and We And results X really as years. what's I over a already, X that to and things prioritization it

Alexander Goldfarb

number, out financing mentioned, in you've that it was mean, no, change versus especially the Scott as Yes, achieved what coming the a transactions Okay. I with and marketplace of COVID.

Operator

The next Mueller from JPMorgan. question with Michael comes

Michael Mueller

that This terms Monica chance Is and Santa keep Place. wording? in it, the wording, of may just with a the there About negotiations about just press am be you're could reading you lender a that quick says I one. into I'm release looking that loan. at the it or the

Jackson Hsieh

think. Yes, I

think I can has the we probably challenges capital say all at asset The I've upside Mike. structure point, down. this is its and said

at think, as as I I say much probably point. yes, I So, said this can

Operator

Ravi with from comes Mizuho. Vaidya question next The

Ravi Vaidya

Hope allowed you interest a to the with are million what any will you further And well. Can color, guys to adjustments credit arrangement offer record quarter? Freehold fair adjustment $XX beyond expense happened doing allow that more interest you expense? and your this Chandler new the to value

Scott Kingsmore

who is tracks adjustment the be good going everybody news our for longer forward. no Well, P&L will relevant that

our nice. So recognition our JV short, when of that with In our of we transaction. which a our dating joint did to from We to have that's back XXXX restructuring accounting. we with a initial that in resulted really venture partner, gain effectively change defer had did partner,

large that going But the the will of market. recognize last was or asset that good rearview It's that item forward. that debt disclosures. This you we and whether purposes. gladly can was a FFO As this seen through the you've disregard flows do to of to a for said, positive like our something noise finally see in in that expense. we to in I probably a mirror. interest add result the year news kind And $XXX negative, accelerate of Ravi, the as P&L is bit back, It's had were the it, And we restructuring, able million. gain exceeding EPS which we quarter mark which and that

Ravi Vaidya

Got That's helpful. it.

here. Can Club assets reduce forgiveness something other you the more Plaza, debt? the one with is Just within will you could negotiations offer occurred regards that portfolio that what to that some more there? occur with Country were that on like, help And loan color and specifically

Jackson Hsieh

in limited one arrived non-recourse I bespoke a Each settles. was say guess in confidentiality transaction, I'll terms ultimately of collectively there. Yes, is, and third-party debt. by party joint what the a terms can our It at which venture buyer lender This resolution. say, just things X in it relatively somewhat and how was of of we these effectively a

day, about the the in by recovered I said, unique different was this the the can all I transactions all though, on That's directions. all was it extent debt the at of one. So are end say, and to not forgiven. Like price, sales these flip they

Operator

McGinniss with Our next question comes Greg Scotiabank. from

Greg McGinniss

Monica. Are bring some on click in redevelopment Just of the spending Santa to new on still you those tenants?

Jackson Hsieh

that repeat one you more can time? Greg,

Greg McGinniss

it out it like tenants For the Monica, came redevelopment there. Santa but sounds new still of bringing you're in pipeline,

you're that capital to So spending bring in? them still

Scott Kingsmore

reserves there to are Yes, aside manage that are set that.

those basically So bring the reserves. tenants work we're the just effectively, to construction of those to funding out campus all

property manage asset manage the property, though. and to continue We

the there's lender extent opportunities, advance leasing we standpoint. the from to those So will with a

Greg McGinniss

down down the consolidated are driving percentage expectation rest the rent a function base and of number about on Is or a sales, only converting for year-over-year, but that what's some year-to-date. for sales on Then of higher percentage sales, that we or see the XX% rents tenants I tenant to X% portfolio year? guess the tenant what's

Scott Kingsmore

of we Most in most was bit conversion, that, XXXX. that view. in a of little a that namely of in XXXX there's and did the of but little Yes, bit rear

of We'll of down. kind sales it rent rents settle breakpoint percentage That's the the percentage the primary just other the time course is over rents increases, Some increases, with plateauing, are and of as see factor. in.

of and relatively to probably in we're we'll see where aggregate time off so time X% stable. we they'll the were the or fullness X%. And mind, about percentage of of I end about longer to typically to declining revenues. they're a of no period remain X% in rents, think year, Bear the our rents percentage this get by coming X% time,

Greg McGinniss

like for XX or ask do things the Okay. store or assets, disposition which the that I And on factor back the number? could strategic assets just clarification out one and hand that does if into of department parcels full plan mean called

Jackson Hsieh

But are When opportunities that's in be to the that Yes, be would we which asset full assets. what would nature than those other did looking significant. one grouping, to be at, some say refer really that think the those full we're we I in outparcel dispositions. several. the is of smaller could we of will addition sale more

Operator

question next Morgan comes Our Ronald Kamdem Instructions] Stanley. [Operator from with

Ronald Kamdem

driver. what on sort bit to little team? so product is of X, Hey, a NOI which piece starting sort place about can a key is that going just eastern a new X discuss forth. I be talked behind just ones, and with you Maybe of sort any in more the the New quick color you mix? strategy there, is of it. of there additional know Just plans a sort of

Jackson Hsieh

a Let's the Acres and lot. assets X of different talked We those Green about energy more Each a just is team and NOI say have the same, effort bridge. to path focus. to that get

the Queens. a has on freehold just we're Box. at of And Tysons. right of lot course, Buy over about talked front, continued that Plaza redevelopment the of of I anchor them. we And locations Best it And Buy, House in, Kings now. progress at coming seeing Sports stores, think anchor And a of Danbury. under With Best one number improvement Dick's

Ronald Kamdem

sort just the as lot sense. Makes first was in term long plan, question of about progress thinking Yes. My you've second the, made of on strategic year. the obviously you're a

Like, small? back become think too number the maybe less you about? of come at guidance? what next and a scale risk international assets entire it and when as the could you'd retailer? in Just to there strengths, actually Just become a to back thought size portfolio? you of you with something think a sort you of Is do Is relevant you asset you be is national then give a or that year? And position that do #X, #X,

Jackson Hsieh

I'll Yes, that being start with don't result first. I us plan in think this will question non-relevant.

parts other instance, lot and us, at that of But just for of for Phoenix, look is particularly position. I'd I relevant the the you think market well. country. Like and assets we plan relative going say have a

year flexibility debt, us of on crazy Put like give are handling I ways doing different We guys That's to to We'll all, it do $X.X that these want for kind $X up and reduction. that I'm empty honestly ways out only don't right. move line it anchors flexibility. backs. It's we Resolution really routes we I year, different fighting different getting on Different kind wings in assets, really have tremendous talked billion billion not year. be tremendous all after not next those of why the of for we'll speak probably arm and will billion doing, kind properties is of filling at have that's centers kind giving about, able say, been behind for like that's describe have success, with to out that end want one to it said going guidance this to their lease of I sight. themselves. of locations, $X leasing there. What those forward, debt to put be to want the those that so back. ability us you

the what's you low to terms year, really range, guidance next don't I think to of $X.XX which it. to that important, what we X So, we're yes, going achieve, giving to get want help it's and down, in times, achieving going get really or do honestly, up that's is to

So that's, that.

Operator

further call at time. this like now for to questions the would hand no remarks. back I show Jack I to over closing

Jackson Hsieh

plan, bye. the you. the couple our next Thank our your months to of continued for look you you this Bye thank to following the executing over many and last progress quarters. We appreciate time forward forward of again reporting plan well, we meet opportunity Okay, disclosure today. path coming with on of over

Operator

you Thank call. conference today's for participating. concludes This

You disconnect. may now

The Macerich Company (MAC) 31 Jul 242024 Q2 Earnings call transcript