MAC - Earnings call transcript Q3 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Third 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. ahead. go Please

Samantha Greening

joining call. for our quarter third Thank us earnings XXXX you on

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

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

Jackson Hsieh

good and day, everyone. Samantha, Thanks,

within us. and the plan. to by I'd many helping of thank me over Kingsmore's has company. briefly forward years, our on I at commenting to quarter, years my in the provided valued would role for designing be has He path been to transition. variety and Scott Scott roles like like the Scott missed those a was in for Before in all Macerich. Macerich with of third Macerich change XX to will Scott the discuss for across invaluable service contributions

joining continue execute when both bring X have banking forward as as roles in we for Macerich to experience Dan's valued many investment on we be and our to Estate Real Dan Swanstrom, path bankers worked Group, EVP new strategy. perspective CFO. with will Macerich who and were I Morgan Stanley's CFO former our years will

X will executives to We will fourth in the and result other senior charges to Scott quarter reduction severance incurring that earnings. $X.XX be in our fourth quarter related a

continued third to and testament Our team centers. quality improvement results, saw a shopping our in operational quarter outstanding

over and activity same-store leasing quarter. NOI improved occupancy, the previous Our

assets, progress square up foot was on NOI we Eddy was making sales was Forward occupancy and I'm was our XX.X%, the are rate Excluding excited initiative. our per X.X% the about $XXX, our traffic X.X%. Path same-store

dispositions, billion of centers. $XXX billion as smaller remaining On have to for and disposition a or the the aspect will and vacant givebacks debt assets, other sales target of agreements, $X initiative, the freestanding and potential completed air a or on open retail $X.XX our and be balance reduce around of The with focused $X givebacks, and a approximately effort effort XX% land play. loan progress binding debt closed currently billion, signed asset centers on remaining part in are either sales few regional we reduction long-term debt Oaks shopping Eddy properties on our sale we that a targeting lenders on the agreement Based in purchase of plan. million

with Express target Eddy as forward and opportunities, will space Fortress on not for the but our current encouraged former incremental open next target meet we our of ability achieving critical vacant, signed Forever for our be temporary leasing We're lease months We in spaces for that us XX early is NOI in we XX renewals, gap to that and will lease sales Steady select of The be portfolio. and necessary internal we our embarking the are that XXXX. making solid are NOI plan. in and on process very path leases, expected progress re-leasing Based solving upon plan.

an NOI year. on information will bridge more We early next share

that core path Cerritos, Premier Retail our partner's deal accretive the is per A business. interest announced meet The us Washington entity of the simplifying Square towards way helping long-term objective. a acquisition Trust, in Pacific of Los aspect Lakewood goes overall that share. owns Center, to is long our forward FFO The and

We will Fortress be Fortress in redevelopment Los able properties categories. debt pursue centers potential Both plans and Square to aggressively Washington for and refinance fit high-cost Cerritos. outstanding these of our at are and

Eddy We will for Center Lakewood sale options exploring property. and immediately begin

color. With that, I'll Doug call turn leasing to for the over more

Doug Healey

$X both quarter. primary from our third except Jack. quarter down is focus. down volumes sales of X% same are at about remained are consumers Sales the And were also the square quarter, last square the the $XXX. the were properties quarter leasing cautious. the to quarter This rich, Eddy sales Year-to-date year. The per compared end in were for had down Thanks, per about terms foot last to environment Sales third We third another still and play. the Essentials X% XXXX. excluding $XXX. compared solid is period metrics. of when foot in super macroeconomic in Comparative

and However, that of discretionary differentiated a innovative in can there's rewarded. provide Retailers pickup newness products. sales been are being

of to have last compared As by see between square as a we demand the and period sales in yet footage greater deal which year. the is I evidenced flow, correlation same when to in our retailer XX% stated past, terms

last be are in holiday. X.X% the year. to indications range versus increases X% will Regarding All

the to expect which of is in couple shortened behavior. between than Given Thanksgiving were last in begin promotional holiday and more they shopping be early, pre-COVID line more years, the retailers season and we with to Christmas,

positive points is back to a and This up ago. our the year basis feet portfolio, year. properties, of excluding Portfolio leasing represents new at levels. our was quarter now XX, from the same we XXXX, spreads. XX% feet of XX.X%. Trailing brings second XXXX X.X% XX-month of square XXXX, XXX,XXX In is points in June third quarter, Occupancy this and second trends. with third in from the years up as stores. remained XX XX.X% up the This the our period opened XX.X%. X was year-to-date Primark notable leasing basis the positive our the XX,XXX Traffic centers experiencing Most traffic positive of base was importantly, Year-to-date pre-COVID million spreads throughout to the opening the in quarter Tysons foot quarter The quarter Bean of up Box. This total remix in last versus third is new traffic most XX of L.L. Eddy Corner store finalizes occupancy, was square X the at Center. openings. quarter third X.X% from square

not Kendra XX%, in to X replaced L.L. L.L. sales we Bean expect Primark, sales And Specifically, only Scott. the of we Xx these were. tenants traffic Lululemon, at Old least combined Navy increased and by be replacement as Bean but with what wing

integration will with These a Creek. include the store signing buildings example signed X The but Mediterranean retail and inspiring box to signed is surrounded leases an -- X.X transformational an renewal square-foot third Marcus announce XX-foot This in square Now outdoor just be look garden the at and at feet. let's former XXXX. RH and Year-to-date, leases In quarter, glass design open Venetian take anchor million Plaza hardware buildings. is be We're another being by in within X finalized Broadway Plaza XXX restoration Gallery leases design food, of great fountains is signed XX,XXX feet. courtyards a line being leading the fireplaces, gated in high new quarter. connected an is experience. a training Walnut by third of gallery contemporary plastered and deal the will of Broadway immersive experience. the will the thrilled for Gallery square the portfolio. RH wine, to in our art to design, vacant at a we've Neiman restaurant finalized, of repurposing for we and we XXX,XXX leasing expected

shoes, likes range Celine, Chanel Cleef, of ready-to-wear, will jewelry, in Another is several key at Chanel's watches, and Phase scheduled Opening Chanel foot Van in which and be brands. signing to Hermes, our flagship XX,XXX Square. collections, Wing. full the the development, for fragrance store Tiffany, be Arizona global luxury offer in of retail Scottsdale is Fashion beauty. Nordstrom X currently luxury including Chanel the a other market in of a joins square first and handbags, will with underway will Burberry accessories, The XXXX. opening boutique

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

between commitments LOIs, into square So and XXXX done footage, our now with expiring and XXXX. we're well basically

committed, square portfolio, quarter, our This filed third the in feet XXXX letter expiring tenant subject about in feet. a filings last our one And XXX,XXX Express, of intent this mentioned total of there's In footage, we're with approximately bankruptcy. in for bankruptcy another X portfolio for our the tenant XX% square locations fact, XX% of quarter, only only as had stage. In only X,XXX except square I to space year. been just regarding

to which stores into Turning and XXX the we to pipeline. not early we X.X of new signed end signed had expect At between third of leases our quarter, square open the million now feet open for XXXX.

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

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

Scott Kingsmore

the the for per our was Doug. Well, our third $XX per is than when was lease FFO including or and increased you, thank or less consistent assets $X.XX million income, during when X.X% was the share. million group of excluding $X.XX was X.X% portfolio. quarter third This the expectations. of million which termination with Eddy both $XX quarter, NOI in per quarter Same-center which and share, XXXX, $XXX share excluding

quarter the in also $X to three, incentive-based a increased a due last in FFO expenses interest reduced million the gains, and land quarter mainly a compensation third contributing in XXXX four, increase a a in few in due $X quarterly large interest million factors to from net unfavorable venture change third two, XXXX. of rates; increase million $X by The to Offsetting overhead $X now third in in Scottsdale during corporate trend decrease the a the to which primarily and are rental adjustment million the sale from increase primary decrease quarterly year due $X a quarter and past fee million sale net in as a at of XXXX; other expense trends last follows: were relative due then driven are to quarters; joint income acquisition on one, of of leasing rising these the single to large nonrecurring a sheet year revenue factors mainly share. Proceeding income of matters. in balance negative land during

and acquisition asset implied continue second end closed the of This transaction PPRT significant Retail Washington Square by Phoenix closing potential also by including an for interest cap $XXX reported We the progress Eddy interest to was the the XX% sold our Since call last was raised in proceeds our XX% acquisitions, disposition XX, make X.X%. rate refinancings. $XXX Fashion owns dispositions the from acquisition from portfolio, on funded and cap The executing on path as our acquisition Center. in million advancing Fortress rate. On earnings and facility. we PPRT. July transactions, Cerritos, multiple October average at forward X.X% positive Trust partner's of we was plan Liquid asset in our million standpoint, Asset or the weighted ATM Biltmore implied we price an and on as Premier Fortress Los known Pacific quarter Park XX,

acquisition As May rate. interest the cap in Towne of Arrowhead at Towne XX% partner's Mall. both $XX X.X% Center million We you paid recall, this our PPRT May a in acquisition South in Plains Center and follows Arrowhead for

customary the fourth are to sell We and to subject million, to close expect closing for quarter, now conditions. during Oaks contract the $XXX under

used of for shares through Center. the equity During to leverage to sold quarter, ATM Queen fund facility on the $X.X and million average an million share reduce were our of acquisition at price common proceeds PPRT $XX.XX. third we $XXX These

through. dive into to impacts financial this assist FFO few of This me, early of Again, soon $X.XX. X, with do PPRT impact approximate this a an We to to impact year to annualized here by on On in modeling dilutive temporary Washington at the the market. accretive is I'd like Square steps accretive Bear not PPRT to FFO there's rate. go next deal. items. start to debt is day acquisition basis. then interest expect the the following $X.XX share estimated Note per this Now that impact does for the marking an refinance include we X% with adjusted transaction

per refinanced $X.XX refinancing. with expect We transaction measure considering $X.XX the transaction that that result, as FFO share, cash. then is accretive the all after be Washington as to And done approximately if accretive recap PPRT baseline Square by is a a FFO

impacts year-by-year. Then the as incur years. I'll few mature debt I from debt here term noncash vary since mentioned, of we by that kind the expect in interest incremental the to underlying will loans market, the call market the the to to next PPRT year marking over X marking the near out expense

the market Washington Reminder, is XXXX, to to XXXX, of impact estimated In the of this impact in debt is estimated dilution. debt the that impact will marking refinanced. $X.XX in Square's $X.XX dilutive. of roughly estimated XXXX, Lakewoods year, debt incremental market FFO roughly the In dilutive. is step debt to incremental for $X.XX XXXX, matures. marking In period XXXX, the Reminder incremental be reduced

is further And account marking impact XXXX, $X.XX Then back in again, further the debt my into loans FFO. to matures. there XXXX, impact the taking no have estimated is to is Washington accretive reduced to comment, prior Los Square debt from And will refinance, to that reminder transaction X Cerritos' in referring dilutive. all since the market. $X.XX the only incremental In matured, then finally, a XXXX, otherwise

plan front will as and our likely refinancing to then asset, in term Jack Center and of disposed as On sorry, we the -- this part the be -- we forward strategy. consider do an I'm lastly, near Lakewood of path noted, Eddy property and be

$XX refinance The loan of loan is interest during the on rate closed million million XX, refinancing The a of loan, a bears entire the X.XX% an on refinance which only we Mall remain interest for XX, at a the interest existing loan at of X-year replaced fixed $XXX strong very million August and loan interest term. On A capital and attractive rate XX-year On the mall front, loan is the October we bears closed on X.XX%, loan, very the Victor Valley. term. entire during of Clean Center. of new $XXX welcoming only the and The Class debt markets years. the we've refinance. frankly, interest in are, and retail seen accommodative pleased the Queens extremely the with most on rate and the X the achieved execution past We're fixed Center

Monica share. These track year-to-date year, or closed $X.XX include loan XX billion givebacks closed billion. Keeping at or modifications. loan XXXX, transactions, refinancings X Macerich's dispositions sale closed; discussions dispositions These assets approximately our The totaling Park as a lender have negotiating transaction. Club or of include at other in of Santa loan including roughly we're lender well Southridge of engaged Place, $X.X which in we in-process sales, the Country Park, Biltmore This and have have actively in which billion extensions $X.XX Shops both in as Atlas we asset or either Mall; Plaza potentially for or Fashion with activity, X potential transactions Oaks,

refinance. have both We which and $XXX Center the PPRT account Queens liquidity, recent acquisition takes approximately into million closing the available currently of

X.XXx Page the on point at an quarter, have XXXX. reflected compared set, leverage As is basis X-K the XX over year-end to reduced which of of at XX we X.XXx our our reduction to end

But many lenders, our is colleagues of And will with I is it after as various the and enjoyed with pride to our relationships look the investors, X attorneys nearly cherish call service current I out tremendous years all, most. list last Macerich I former you. working relationships of on most The service XX providers. my Macerich Lastly, our that at analysts, of with and it this Trust our our will on so relationships many I soon bankers, is company. miss the today. reaching me, you decades, the most. the and back with nearly be that it with that I leave the of is will long, partners, I

we to My for friendship. all orderly transition. you the Thank as your and for truly, and truly treasure over my on the to teammates for and many best thank you forward the loyalty smooth my and vast will I as path do and and chapter. But competitiveness, handing your friends, I Thank professionalism. the I you very forge your in Thank for next the your in you your reins meantime, wish move over look to support. forward. Thank for memories you through a tenacity I Dan years. the these you great

now open back the So to at the for get over Q&A. operator let's to turn it the to call up I'll business hand.

Operator

our Instructions] of Jeffrey Securities. America first And Spector [Operator from question come will with Bank

Jeffrey Spector

And for we steps. Great. luck same to way. Scott, and first, your all forward your feel on help years, Dan, you. over look of with best working And Thanks next the the

My I coming with plans, of any and months? pricing and just the disposition assume slower a higher over think the plans other cycle. first for question the plans the is today, or market impacts -- Fed Do the you rates, that cutting Jack

Jackson Hsieh

rates I'd down. up have rather going them or Jeff. going Look,

our So positive of see ahead plan still as we'll have will current level. kind the in of of transition the rate the government, at to new in actually we're be. But direction rates plan long-term what occurs terms of

my we have we well that's deals If believe debt about really, those the that of to ready which the billion, assets we organized, left net not if those the And are obviously the opinion, that what got confident process is progress. million just go about, as of lease compelling about you kind has that in Lakewood on of -- We the in it. $XXX properties can very those. And mid-Xs, we've a market. think portfolio pretty And Center, execute well in talked we're feel better. $X.XX we in of, remainder getting of just really, to

are being Some blended extended. and

require Some lenders. discussion with

team are the and here forward to But spirit move ready that up poised for really brought that. kind of from I

team, after me, feel -- dealing the just about and that focused on to And we're incremental that's with challenge I getting really, So really objective really leasing billion. now. $X all the eyes are good it right I

answer now. concern And are the into Washington yes, rate go got is right we've to that And not to on your market. current So debt -- that me the rates question, the Square will that X%.

So I know do we'll than better that.

Jeffrey Spector

then That's And a my second question, follow-up. helpful.

the the of a I your categories? certain about I on Is what it low you're elaborate alluding can at the the maybe certain certain that Is guess consumer think at assets it markets? seeing from some according Is strength talked bit, types you weakness end. But Doug high to it various buckets? end. consumer? to

Doug Healey

Jeff, No, board. seeing it's we're the Doug. it across

are I And been past again, sales to now, couple those high move we're some as the of up X seeing essentials remarks, innovation. the that or are think our key and years. are X quarters. but newness the right in I But start flat discretionary have in last against comps to extremely we my providing retailers for mentioned

a that's out for So of there. all challenge them

to a and more X% we promotional. little expect be I retailers X.X% think hopefully, will the bit be And solid, holiday and that between

that's I As consistent behavior. said, with pre-COVID

Jeff. So we right are that's where now,

Operator

Dijkum Floris Compass from Point. with comes Van question next our And

Floris Gerbrand van Dijkum

Scott, best Thanks far. ventures. so luck help for of you your in your wish new

was growth your be X.X% X.X% low think cap Scott, does simple top growth Cerritos, we is on the you around How accretive your Square view. look going basis. this particular, or that just does for should of work so as your rate. that Maybe about on your forward? cap at in Because could growth? these a put you you Los calculation again, of price, at on assets Presumably, should a are impact in for talk to our and kind I assets, discussed X What far, that our equity comments but as matter, to a this rate? have this implied about what we think rate, your that raised, Jack X of Washington

Jackson Hsieh

I I'll I for But I mean, the that Maybe rights location about mean that way the now right in to our Cerritos, commitments. And with Washington -- CapEx, control was and kind the biggest in sears our we're much because want Square later leasing too I'll through X-year turn that equal we XXX% the it don't me, on control of Los case up, get on partnership obviously, our PPRT, the had equal refinancing, into and set talk call. models, us, rates JV. up agreement anchor had versus partner opportunity we for working to on of growth rights Macerich, own on. the that of take on

solutions to at really be So I it we to our able out, can that And evaluating to assets. fantastic had going that us. some be And move which on on up that was which great market. were now to unlock properties. anchor plans, buy we're looked into got very to possibility teams. partner when X knew in once our at development business great to given positive, with knew be attracting just we center it we just Those Portland we able them after I leasing going get we're Square, help that we going have of accelerate situation, to properties. think are that honest We're I with luxury to Washington property. of quickly with you, the more kind We've get the what's going and those going is

location. the on know, that anchor to final that the to you trying a It's as Sears and talked the going going in Cerritos, continue Los about center. upgrade to that about, excited we're lock we retail tenancy. And solution we've fantastic entitlements we're a just multifamily, that's we're gem. that's And have And to

lease, given refinance have execute, of it's Washington move on to in Square, like our the debt initiatives these partners forward with ideas, going long-term rate just ability -- to interest and just maybe the would And some properties. don't development X% because those having say so lease, we I help lease same on just be without to constrained to growth have

it's to growth it's our to help help rate. growth going going So, our Yes, rate.

Floris Gerbrand van Dijkum

Yes, yes.

that what is XXX help increased. I question points? has follow-up around can should mean how your maybe is but little to of earnings? So hitting it million and talked about how before it talk My 'XX? the is, much is about that's -- timing going much in hit basis again, pipeline a you of bit -- And you. that that potentially you of 'XX much year-end, And beyond SNO the 'XX $XX how going is to impact

Scott Kingsmore

into again, Floris, now store looking XXXX We're that doing pipeline we're Yes, is $XX the openings. XXXX incremental million. out

In fact, year. deal next will Chanel open ago, which minutes few we a just announced up

store 'XX pipeline expect cadence, $XX into a news only impact of 'XX. The pace about year balance impact to hitting new good found in We this the of a million opened, is XXXX, currently million of stores means increase, the the $XX the terms in do the stores the $XX about and some million recently outpacing continued as we XXXX we has in robust that that that have open and pretty have So openings. is is pipeline. signings anniversary been which

so fair bucket the we bit have fourth refilling. think the do tick fourth keeps So openings, down a quarter the in I little of because is coming exciting great, openings would quarter. a But the amount environment may

comment. one Lastly,

X% leased about little it's fiscal You roughly the occupancy. a over and asked between Yes, spread.

Operator

Craig question comes from with next Mailman the Citi. And

Craig Mailman

leasing want strategic continues be way. is in expectations continue the up side. Just in trending head to to to good, the to the follow How right spreads plan? CapEx the on Demand relative

Scott Kingsmore

don't Craig. but handy, an we from and, there's no from substantive there's think -- both page I would operating CapEx, I disclose number a across the find leasing do substantive no of And periods. standpoint. differences, really do period-over-period differences really that you'll I We say disclose have course, CapEx

look don't really fact, Page environment. in about see sup, the there's the In atypical anything you'll think that. and at XX I

go-forward as share to made and note year is lion's we stores. we I'd available of say any and Eddy at thing look a anchor as portfolio, our lot last one the this prior leased assets, we excluding our progress have years, year of

In only fact, think we I are today. uncommitted X have that

the So properties. sitting pipeline. standpoint, and a them open those we've energy energy a good space and to on But narrowing We certainly our and large wait are sales is got in amount can't the from of of that lot get a see the it. traffic boost users handle in to CapEx

Jackson Hsieh

Yes. I'll just say leasing. about one more on thing

On asset in the active a about enables that we lease we of put like that my space plans. put our we've targets on lease team referenced kind specific that either to call, of opportunities, in F, to the management out leasing some CRM the A be where opportunities with talked COO we been taking comments We're AKA and operating information, last through with place, system that's in improvement processes square believe what's happening process F I project or space or space between through through able different leasing. achieved. and opportunity And -- throughout actually A temporary comments, A prices be a footage now with portfolio. within current -- that space, temporary that current portfolio. We've of should very based F vacant on ranking the lease rate begun entire overlaid the the X-year Across the

So it, of the cost on value leases. get contribution pickup say, your Macerich. signing where from in most highest [indiscernible] basically, through That's you new get to comes

benchmarking asset very space And be after our and next strategies going the close. know there's It has And the to in team to now team's to and specific happen always management be -- has months. it's So closing. get XX to on what leasing just accountability that. We ABC, to teams specifically hit has across monitor, targeted reviews. to much that kind we've full approach asset just I which evaluate order in we're how really of more focused is that in and actually us tools done the bridge, you place X-year a critical. it's tell these NOI would for And and plans, so

Craig Mailman

then helpful. plan. the part been strategic always follow-up, the And That's equity on has just of

that talk just us quarter takes on the a dilution some the at you bit maybe you're and issuing know and But recoup little matching broadly, and near-term you [ PPRT $X.XX and as could the minimizing strategic what pulled kind it in think funding FFO. uses guys RNAV? the Can up on going that it -- went But -- a in you or thinking part source the internally. then time I equity help to how the more this You the the are of you PPRT think know of you about through plan, fund and of least ]? to trigger as of of a side don't guys dilution just bit I NAV forward, about of through uses. the about between kind kind

Jackson Hsieh

start of take a X.X% cap Cerritos first and when implied at Los for slight a rate. of X.X% and look was the follow cap But cap Square I'll a you at if Washington X.X%. you rates, And look up. allocation Lakewood, all, at give our in view, PPRT, rate were then blended the you acquired

you about dilution. one So how aspect that's might think of NAV

dilution consolidating Fashion that sector be our any believe we embedded only not compression, lot asset kind but X we'll initial as did growth say to assets NAV aspect centers, rate we which I would I have at NOI, is this The an to be that, like NAV believe of might those stabilize, if entire exceed in cap in including think play. and of a portfolio, continues Tysons, able you JV Square by in of NAV and that actually other analysis interests

other of mean, a is rate the kind other and on do plus you've of Washington high looking levered then what each with forward. X% us at got And to the our interest to move an -- former can't everyone partner I figure Square, kind out -- and coupon asset over are piece

by the I take to actually share. I of virtue just virtue So to by the that know, that it's of put you... able able to enable more so capture NAV say sort market would the going accretion of we actually and in if assets to be Scott, investment off getting don't us being clock, growth drive can

Scott Kingsmore

nothing to I commentary, have great add. Jack,

Jackson Hsieh

proceeds. of equity, were terms in And use like we about specific of very other

finished. all our ATM to we're it's reload look, So going because

that about with consolidate. of continue -- And or report have the week to strategy discussions surprised a That's simplifying I nothing next business. we're on be really always moment. think don't at any to to I hoping partners our later don't long-term something. active So the look,

evaluate to believe plan. to plan. always equity of our faring at we'll no the good we're the sales, head on we'll course, our monitor. There's pieces. of It's givebacks, to when We of like now. The the pace that ] we the across But have [ We the of really right some continue part NOI And aspects progress gun just market. a it. kind do

So everything that well going regard. is in

Operator

with our next Evercore. question comes from Khanal And Samir

Samir Khanal

I I about to tenants, I you you that sort of having talked mean, you're mean, guess, Jack, your leasing under backward I us good, as but But But negotiate I these know looking. pretty leases? guys saying know of negotiations are and sales, spreads continue you rents what as they ability it's you're about with at know of the focusing kind being leasing have push give but been here. talked incremental an idea think about what here. looking kind you seeing of just on flat, to it I

Doug Healey

year And to in last us. more and commentary. really take But quarters Samir, in it year think to footage I it's record mentioned, really. retailer we've year we X can did reviewed I last alluded And year, sales. Doug. in compared square keep of our sales for flat year, There executive And we've had was correlation last than more I leasing between a mind, again, and at demand. to flat time leasing I hasn't a my as compared last been that XX%, than committee, one. this

a things. of I it's think So couple

that A testament a And signing retailers for leases portfolio. I think our or to the it's quarters new X sophisticated. they're very don't become have years. vision. long-term quarter affect XX think their I X, Again, really

able to that. pass they're So

I've part With your regard of pushing and think rate, to about question about before. your other talked I this

supply take table. off to As up, we the occupancy -- continues as take we go continue to

this to better by better have have unprecedented rate. opportunity we're -- demand. retailer a we're We going to a going have depressed Almost definition,

that need need And the them. shopping have the balance the to But And rate both we VR. science merchandising to is merchandising of is with and centers. the you

well. want if over our rate, merchandised continue And shoppers all Jack care as time. a as we to going to that eyes earlier, center alluded the we as take to itself on So to to drive merchandising come be that rent's well, are are centers, to, of create going or

Samir Khanal

of bit? -- as I maybe guess flat color that? slowing sales, kind driving I bit And And about a Is that's luxury a of follow-up, you're sort categories. when just provide on talking a mean, what's it little of

Doug Healey

categories of flat. a the of Samir, don't luxury, basically have All are Scottsdale. Yes. exception lot We

had comps So huge really and Again, a some we've factor that's XXXX. not XXXX us. in for

been it's tough comp against But So them. there's in change to a spending.

really, said, I essentials are in As play.

the I call. think this last talked on about I

from months last to Discretionary in discretionary X the items spending retail probably turned services. XX discretionary to has really

-- will time. they example very that's cetera, We're on starting haven't been play or just And see cetera, money on on activities, that for spend more et do back or a a leisure everything and to able For come services entertainment, to full et people think circle. because long vacations, entertainment. temporary I

expect beginning at XXXX. happen of to that We the

Jackson Hsieh

if were or I restaurants, 'XX. look major slightly negative. our the furnishings -- were X% QX positive. were of 'XX general, Fast The And is apparel, looking like QX think food actually versus categories other at performer you they worst slightly all the you home broader shoes, categories. of jewelry, categories so at kind just

those, some you'd you down. and see -- into went some So detail of if those, X%, the up within

plus/minus furnitures, all band, of had home which within exception that of like sort a the with larger... So kind of

Doug Healey

for people years, homes, of all And they comps. Yes, that's mean, on all their do? COVID, their sales they about renovated of spent do what if think could no coming money categories solid homes. led furnishings surprise. X in home do. That's terms They you out I

surprise to a really not it's little So bit. see out flatten that a

Samir Khanal

did rate... cap Got And it. provide you guys a

Jackson Hsieh

as XX does But I about space was go this, up to we what current at listen you kind you're generate. I doing is you're said struggling, say, of that really $XXX what online of A, that where if B, know re-leasing tenant if a under C, foot. space you've know to that, kind should going you got how hey, I look square too, Also

of everybody of kind of to in kind perform just like, occupancy that that merchant best out, that nuanced opportunity on we put it's figuring rent. team, we're centers somewhere specifically cost to It's can person how hey, tenant I here. space very So that ask hey, do leasing about difference talking in standpoint. going that's premium We're call the to And from hey, sales a a going flat. just zone else. and But it's go our needs for into more what are not

Now the is that to negative there's downtime.

does together And we we achieve, put we not road target to a quarterly -- pressure the need to that plan believe part we've this to map so NOI and that that we're we've on that. why is because got trying do got we know rely of

is The any other leasing we started happening deals. properties portfolio we got something that's piece here, for any subsidization occupancy at don't here that's I X day have national when for of And that that.

and Eddy properties best is our possible best the we for and we're to outcome the properties, team maintain without non-Eddy occupancy So the that. capital, doing as for get going can just

Samir Khanal

Oaks? you on Sorry did last a missed if rate Did provide thing, cap The that. I -- one you

Jackson Hsieh

like ] and a we [ it's a did. the say I it's [ purchase No, debt ] it, XX price. XXX Yes, cap. XXX on just a

Operator

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

Alexander Goldfarb

over certainly best. the with you, first JV guess maybe back welcome Dan the just buyout. going to question, appreciate the working you years wish great interactions the since, and and been Scott, aboard. I It's Pacific Scott, the

the numbers. on Just

accretive, You few mentioned to but due also marks you some next over years mentioned dilutive mark-to-market. the debt $X.XX the

it next inclusive it's of years? marks? initially, have against total accretive is then dilution dilution the going to holistically, few So those Or $X.XX $X.XX and it's that over

Scott Kingsmore

excluding debt But the of debt mark-to-market impact incremental the and the taking you the of move provided of I Washington Washington impact could baseline then into Square we the the burn the after accretive $X.XX, is forward. impact that off measure. so It's of mark-to-market, the see account, as that just year-by-year Yes. $X.XX refinance

then mark-to-market as You'll year, outlined. on incremental the I each just tack

Alexander Goldfarb

while. Okay. you've And then, in there Jackson, a been

new for Oaks. that The announced sale are You've malls some like

are, finding I look you you now, that out more portfolio As Or will? you Eddy's, shaking more malls far the are there as if guess, at -- as you are are how that to are portfolio want to ultimately finding I'm other that understand trying around? way more that you the the if you're you plan or just sell? the Eddy's Eddy's there versus

Jackson Hsieh

to terms are between there of going and of a the get more asset on kind does determine kind of that. might Eddy in and economic sort X -- kind bottom X plan Steady and be it's it of like is have we thriving? like of or be say more plan put that a that in things I'd cusp do lot investment of making of the And to that to of -- sense sort kind Eddy

demand up Tysons we're Square. on and So to I X the centers kind really tighten have of or effectively that we drive would say But kind powerful hold to of at continuing and company evaluate seeing can like Fashion this sort We're where look, of there that NOI cusp trying it. like are we're down. drop growth

And keep properties. You just are doing of they those keep examples and reinventing just more. those great properties

Washington can these I'd are we because of opportunity traders putting competition around properties -- other some and fading. think of is like as a We're sort the where about have re-leasing really we really capital them overall of there are up level Square sort in, plans like that plans through And contribution example. say share that. and We're take redevelopment and we're great NOI we asset that going the and to productivity. terms excited of drive just in another

Alexander Goldfarb

maybe find what is that target, others billion $X you're X the is assets could these of inclusive you $X if contemplating? or you and referenced you exceed So that that billion the

Jackson Hsieh

go, got said, pretty just done. really confidence The No. is of got the like we've able And to the I and that that XX% get inclusive -- to is being Eddy's $X left. we billion way are good remaining of on

confident about of sort very the give $X So information. time, we billion that what feel we're about out billion $X be the in really like relatively focusing at the once thinking of we'll short we'll a the way bridge on this we of point. get Yes, because NOI and period that's you start all

Operator

And from comes question the Mueller with JPMorgan. next Michael

Michael Mueller

for the well. as Yes. I worked I so really appreciate past Scott, having XX you years guess, or for with

forward touch I to going So look staying forward. in

in notable seen started third-party this have you level capital's Jack, the earlier of in regional year? question, terms In traditional a since changes in any process malls just the you high one, interest

Jackson Hsieh

we move I ranked major were what to look, had was order studied was Oaks. not, think that have Oaks, I to sell that in if to initiatives redevelopment we forward. any. backyard. was There that made -- was one is, it The That our a The And made interesting found in decision a in decision obviously we

as to that like reengineered, to me compelling asset think financing, that at us it's be to look a which think of opportunity a an the buyer that, They're are able for been of assets. asset -- has there's equity. I It's encouraging to has at They buyer risk but development seems is that that this able the required. which But the that especially -- point. opportunity was some -- an other that buyer of sort really still secure be moves monetize been this retail. to clearly have secure to what's these debt we has -- for I is entitlement, got is some asset needs

So that to me was encouraging.

I'm and centers. there enclosed excited centers the at long Look, Los to on haven't been keep Cerritos. pricing, that we're term, Washington a going of trades lot X about Square

as transparency. don't there's vendors A+ think company become when opportunities I the That reconstruction, encouraging. amount of centers that of in -- I I first there's huge started in kind a could need that the that a it's call, sold. -- hasn't properties I into, to year. what coming more lot evident a the maybe of really or definitely think As this come. wasn't that There wasn't March So But been fact are B lot of

Operator

Tsai from Jefferies. comes Linda with our next And question

Linda Yu Tsai

to X.X% the as continue you want rate code you cap better compress would to rate that that expect your in continues? own that referred Or acquisition out stabilization you entirety, to The I centers ZIP best. assets? wish of it buy the stay as buying their X.X% Scott, cap does to to for you in you

Jackson Hsieh

going think to probably it's compress. I

Just look, is the business good. really

IRRs way air I when of open mall, an center and say, there's and surprisingly, growth would NOI leasing space sort it's so of -- yes, sort of for trades So -- why much inside but demand enclosed kind in over of going forward kinds just is we compress rate for at investments. to these new guess my because deals, look time of to we as growth is the look they're continue as there

Linda Yu Tsai

Jack, like? does And make sale future you effectuate the your portfolio you're that then, have portfolio look what to And when would looking look market you a today, at Macerich? are at what the for conditions

Jackson Hsieh

Macerich. sector that Executive of Well, if Board, mean an look, in that, as is a have -- to can -- opportunities strategies. back you I and for Eventually, I didn't going interesting kinds want sell of one lower we we [indiscernible] to And got about some sit sell. so servicer are the come much to our be I opportunity But those the REIT at that pretty the everyone and type type think I here. Well, of those? these to what public opportunity, course, basis. I'm I scenarios actually enter a I public it and going or of those just are optimistic properties to of lenders. many Are believe in well quite of that all go to evaluate we going not a to unique. this was around these do. about believe on do really of going -- can do being Not do in able for business. do with I this be they a operate basis. terms competitors what there's we is that to things back the properties attractive lease to And going national What's that can happen to about while?

take that plan -- advantage my to so to And opportunity. of try to is Macerich position

But And to if to clean ways yes, try to we're doing. in fortunate if deploy clean So balance processes. that up what to going we'll yes, up, competitive we're tighten sheet, portfolio can accretive. the it we are get this our of continue capital, cost clean up up, we're enough use it that's

Operator

Burrows comes from And Goldman question Sachs. with the next Caitlin

Caitlin Burrows

so I with guess the surprising as that multiple be years right quarters about that leasing is you're maybe for worried occupancy I hasn't it not But now. guess specific answer increasing somewhat been it now, as might been more. has strong

you that So was year-over-year. reasons I if talk points like up think been the was what basis through occupancy you upside wondering could some of XX has why limited,

there kind XX in that accelerate? be Or might it like So headwinds that from or do you keep others other range? you think that mentioned can of Forever

Jackson Hsieh

spaces. just doing. of of renewals. XX, our I done. occupancy successful know of kind kind permanent annual strategy. and as If will. the we we Doug you that our coming -- were getting they Forever if execution about focused you got just a as talked to I We've can go that We said, on will has on and kind what We're focus the are. do up, up The acute It where okay? stuff -- There's I person what quarter-to-quarter new of rate that ahead we're an very renewals. of we what our we're byproduct of Pick probably occupancy will -- part ABC. go of budgeting in, will way in tell we're would we're just say

call drive what focused on occupancy. were of maybe opportunities, as you're you could really budgets attacking, quarter-to-quarter, I And I if annual see I think those that permitted really to sort focusing not on

is knows after we're and And and first to time what on day. my the so the it they we it this do, going every know XX not sort of to know what is is. months, everyone company team get And

up. So permanent go see it go make you'll up. occupancy how you That's

Caitlin Burrows

Got it.

today focus. Okay. And realize on Wondering I your good at you not given they've want a been quarterly about you like payout Board to a and you dividend the dividend, ratio could the But share where compares focus talk if per how the dividends, and know be the a think and if decision. it along long-term then today spot? is a to what's AFFO near-term lines direction FFO focus, the are I versus the maybe of going, kind

Jackson Hsieh

I either. initiative having its reinvest flow actually portfolio, of payout think like put out next cash to to or the level Board, select not or sort we our said that. look, for elements and going some of to I back best to think, we the of sheet goal because is and that's is mean, over-lever things going start I very comfortable as pursuing. Look, before, I at We're this probably the the just guidance of to increase on get that of dividend my that year balance I've Well, leasing basis, current -- an on dividend we're -- the especially we're into business actually not our with keeping payout kind source $X.XX talked steady ratio, about, pressure a higher grow commensurate ability to

its of as guess but current that's decision. that Board will in we It will the time, time through for in do position. period go of execution, probably stay kind we So probably this a is my next

Operator

Haendel from comes question next our St. And

Juste with Mizuho.

Haendel St. Juste

been All a pleasure. look best, it's forward to Scott, the you again. and working then with

at several times line, pace moving you Jack, previously a FFO down, moving certainly you've X, but Jackson, the indicated this far time are $X.XX getting X-year seems speed. outlined year as leverage a call, So getting of things by you're like on out quicker breakneck your

expect there still all of -- or that I get more it process? year year. And FFO next should think sounds some provide Is there. curious might don't have you after fact, X-year is we in a expect maybe to it like seems? sooner of a color a as Is X-year kind Can but misheard, you, we're When context guide it So that? this process? next? I

Jackson Hsieh

be period. Actually a kind would after probably year the that of reasonable

it's we this valuable. as going bridge very, I all, to be provide think I you that very NOI said,

We have it internally.

to going what doing. valuable I think that's very be because can benchmark you we're

properties disclosure Scott able the that pretty say and Washington issue it, Santa you of on like It's to until we as We're later went dilution next of still We're the it's managing have the I we this we've would went to title. going still be be back there the I Monica. accretion still like -- know year. get because probably mark-to-market then being as painful to able debt. And start PPRT through got give asset. through, to Square

take structural to just things some are X that next there So X will the years.

able you of makes Once assets, you, to there. that credit bridges -- we a year, loss things absent of going take be select yes, we're stuff, plan months may be finished more with where my you'll That major see, they're contractually for plan we finished ABC progress disclosure, are say, confidence bridge, NOI hope earnings. the do, is based well several NOI outline We it just tools more of to and up sense. But to we which give at following to you're question you'll on getting we provide start period. able okay, to the to kind show that the guys this more in just kind to the you see will what on clean those and the these we're to it Eddy's some there more

Haendel St. Juste

about couple bridge FFO. And thinking the that, broader helpful. kind of the -- That's helpful. the years over just of next with That's within then -- this

year, were somewhere that something expectation? us a that's reasonable plan that curious X if as assuming could would through $X.XX the fact, lot be well? knows. bottom And process, is next after, FFO that of our think in if year that I the Is year range. modeling in of perhaps But a in who that perhaps this

Scott Kingsmore

for by I'll excuse yes, the commentary. way, Thank for Haendel, -- Thank everybody, Yes, you upfront. for commentary the -- the say sorry. you, Ron, thank me, or the you

various It's back when some provided to all these deliberately because give assets why lenders. rolling that as can you've we the the to X-year to think a of kind elements a very we going these are you acquiring again, we interim earnings that noncash guidance We've be of where got hit. those why we marks, a factors. we off of very gave interest assets Things like to hard X-year portfolio predict JV all are pulled vision this disruption from and vision,

justice But us in. estimate that So room and think on feel of a in do to for time, estimate box do I interim would that and don't gives at really don't want provide of we're you. little pace we to this latitude disposition which plan the of decisions pricing and bit the estimate that in us well bit had point plan an in very -- we're ahead our refinancings, I estimates of shaping is our little on NOI the up follow the terms think on to a We disposition plan. soon. we are plan other details target. make tracking the execution, to And

right a It's So going to going all marks interim in to moving those frankly, to of to the I fact, levers think seem little us And be, you. hard justice got to latitude direction. relatively But predict. give to there. in be not are that do we've bit just

Operator

over back I to Hsieh closing would for now like Jack to turn it remarks.

Jackson Hsieh

you. Thank Great.

been with relates of him want Nareit, go and So outstanding at to NAREIT, transition, ahead a He's an professional to a Dan owe all visit will And to Scott. it so again, you just all as be on and this get thanks, chance dealing gratitude. with once I him. debt we

much. very you thank So

Scott Kingsmore

Thank you, Jack. you, everybody. Thank

Operator

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

now may disconnect. You

The Macerich Company (MAC) 6 Nov 242024 Q3 Earnings call transcript