Macerich Company (the) · NYSE:MAC
Macerich Company (the) — Investor Presentation (May 2025)
43 slides from Macerich Company (the)'s investor presentation, May 29, 2025
Slide 1: Macerich Investor Presentation May 2025
MACERICH INVESTOR PRESENTATION May 2025 NYSE: MAC | Macerich.com Washington Square | Portland, OR
Slide 2: Legal Disclaimer
C o p yr ig h t © 2 0 2 5 M ac er ic h LEGAL DISCLAIMER Note: This document contains statements that constitute forward-looking statements, which can be identified by the use of words, such as “will,” “expects,” “pro forma”, “anticipates,” “assumes,” “believes,” “estimated,” “guidance,” “potential,”
Slide 3: Table of Contents
C o p yr ig h t © 2 0 2 5 M ac er ic h TABLE OF CONTENTS ▪ The New Macerich ▪ Path Forward Plan v 2.0 ▪ Portfolio and Financial Overview ▪ Case Studies ▪ Appendix Kierland Commons | Scottsdale, AZ 3
Slide 4: The New Macerich
4 THE NEW MACERICH Scottsdale Fashion Square | Scottsdale, AZ
Slide 5: Mission Statement and Core Values
C o p yr ig h t © 2 0 2 5 M ac er ic h Own and operate thriving retail centers that bring our communities together and create long-term value for shareholders, partners and customers MISSION STATEMENT CORE VALUES Our core values define the principles that guide our actions, decisions and the culture
Slide 6: Highly Experienced & Aligned Management Team
C o p yr ig h t © 2 0 2 5 M ac er ic h 6 HIGHLY EXPERIENCED & ALIGNED MANAGEMENT TEAM Focused management team executing on new CEO’s strategic plan to simplify the business, improve operational performance and reduce leverage Jack Hsieh CEO, President and Director Doug Healey Senior Executive Vice P
Slide 7: Refreshed Board & Sound Corporate Governance
C o p yr ig h t © 2 0 2 5 M ac er ic h Macerich prioritizes board independence and refreshment, along with sound governance policies and practices 7 REFRESHED BOARD & SOUND CORPORATE GOVERNANCE Jack Hsieh CEO, President & Director Daniel Hirsch Independent Director Andrea Stephen Independent Directo
Slide 8: Macerich Overview
C o p yr ig h t © 2 0 2 5 M ac er ic h Portfolio repositioning focused on owning high-quality, top performing regional retail centers 8 MACERICH OVERVIEW One of the country’s leading owners, operators and developers of major retail real estate (1) Represents the percentage of Go-Forward Portfolio 20
Slide 9: Strategic Focus on Class A Malls
C o p yr ig h t © 2 0 2 5 M ac er ic h 9 The contraction in the number of U.S. regional malls reflects a strategic consolidation, primarily affecting lower-performing properties. In contrast, top-tier Class A malls have demonstrated resilience and continued growth, supported by strong occupancy rate
Slide 10: High-Quality Portfolio Within Favorable U.S. Retail Landscape
C o p yr ig h t © 2 0 2 5 M ac er ic h As supply shrinks, malls prove resilient as retailers recognize the necessity for brick-and-mortar establishments in higher-quality assets. In-store experiences continue to be a key element in customers' shopping expectations 10 HIGH-QUALITY PORTFOLIO WITHIN FA
Slide 11: The Positive Impact of a Physical Store
C o p yr ig h t © 2 0 2 5 M ac er ic h “For retailers, having both an in-store and e-commerce presence promises synergistic sales opportunities that online-only platforms cannot recreate. According to ICSC, on average, when a retailer opens a new physical store, it sees a 37% gain in traffic to thei
Slide 12: Strong Portfolio Positioning
C o p yr ig h t © 2 0 2 5 M ac er ic h Key metrics across top retail REITs underscore Macerich’s competitive positioning 12 STRONG PORTFOLIO POSITIONING Portfolio Sales Per Square Foot Sources: Macerich data as of Q4 2024; Simon Property Group Earnings Release, Q4 2024; CBL Earnings Release, Q4 2024
Slide 13: Path Forward Plan v 2.0
13 PATH FORWARD PLAN v 2.0 Chandler Fashion Center | Chandler, AZ
Slide 14: Path Forward Strategy: Recap of What We Are Solving For
C o p yr ig h t © 2 0 2 5 M ac er ic h STRENGTHEN BALANCE SHEET PATH FORWARD STRATEGY 14 RECAP OF WHAT WE ARE SOLVING FOR FORTIFY CORE PORTFOLIO DRIVE OPERATIONAL EXCELLENCE POSITION FOR GROWTH Deleverage the capital structure to a low-to-mid 6x range over 3-4 years Deliver FFO/share launch goal of
Slide 15: 1. Simplifying the Business
C o p yr ig h t © 2 0 2 5 M ac er ic h 1. SIMPLIFYING THE BUSINESS Los Cerritos Center | Cerritos, CA Washington Square | Portland, OR Arrowhead Towne Center | Glendale, AZ Refresh portfolio ranking to focus on criteria beyond sales per square foot Implemented expanded asset ranking criteria, refres
Slide 16: 2. Operational Performance Improvement
C o p yr ig h t © 2 0 2 5 M ac er ic h 01 02 03 04 Continue to drive incremental total gross revenue from executed lease pipeline Drive NOI growth – particularly among Eastern Seaboard assets Proactively replace obsolete anchor spaces with anchors of the future 16 Anchor backfills, redevelopment and
Slide 17: New Anchors Expected to Drive Traffic, Sales & Inline Leasing
C o p yr ig h t © 2 0 2 5 M ac er ic h ✓ 01 Committed or in LOI negotiations for 23 out of 26 anchor and big box replacements ShopRite at Green Acres Mall replacing Sears RH at Broadway Plaza replacing Neiman Marcus • 26 anchors(1) totaling 2.3 million square feet to replace outdated retail • 88% co
Slide 18: Strategic Redevelopment of Tysons Corner Center
C o p yr ig h t © 2 0 2 5 M ac er ic h TYSONS CORNER CENTER Tysons, Virginia Tysons Corner Center has solidified its position as a retail powerhouse, and we continue to enhance the center West End: Reimagining the shopper experience from Bloomingdale’s to Macy’s into a vibrant and walkable retail, d
Slide 19: Strong Leasing Productivity & Momentum
C o p yr ig h t © 2 0 2 5 M ac er ic h ✓ 03 & 04 Strong leasing volumes and productivity FY 2024 Q1 2025 3.6M 2.6M New and Renewal Space Signed 863 320 Signed Leases (a 15% Increase from FY 2023 to FY 2024) 213 37 Store Openings 13 14 Consecutive Quarters of Positive Base Rent Leasing Spreads 70 22
Slide 20: Signed Not Opened Pipeline
C o p yr ig h t © 2 0 2 5 M ac er ic h ✓ 03 & 04 New store leases which have or will commence from 2024 through 2028 are expected to produce total gross revenue of ~$80 million in excess of the revenue generated in the same spaces during 2024 ~$25 ~$30 ~$15 ~$10 $0 $5 $10 $15 $20 $25 $30 $35 2025 20
Slide 21: New Lease Deal Completion Percentage Ahead of Plan
C o p yr ig h t © 2 0 2 5 M ac er ic h YEAR-END 2024 39% Complete MAY 2025 60% Complete YEAR-END 2025 TARGET 70% Complete MID-2026 TARGET 85% Complete FULL OPPORTUNITY 100% Complete 1. Implemented a new leasing dashboard tool to improve visibility and efficiency 2. Tracks revenue completion percenta
Slide 22: Streamlined Organizational Structure & Improved Internal Processes
C o p yr ig h t © 2 0 2 5 M ac er ic h ✓ 05 OPERATIONAL PERFORMANCE IMPROVEMENT STREAMLINED ORGANIZATIONAL STRUCTURE & IMPROVED INTERNAL PROCESSES DRIVES PERFORMANCE ORGANIZATIONAL CHANGES PROCESS IMPROVEMENTS 8 Direct Reports 4 Direct Reports CEO Reports: Permanent Leasing Temporary Leasing Anchor
Slide 23: 3. Leverage Reduction
C o p yr ig h t © 2 0 2 5 M ac er ic h Asset sales with accretive proceeds and asset give-backs Opportunistic equity issuance based on progress milestones Organic NOI growth Achieved equity issuance component of Plan in 2H24 Substantial progress on sales and give-back component of Plan – ~$1.2 billi
Slide 24: Redevelopment Projects
C o p yr ig h t © 2 0 2 5 M ac er ic h 24Information is estimated and may periodically change. See the Company’s forward-looking disclosures SCOTTSDALE FASHION SQUARE TOTAL COST: $84-90M | PRO RATA TOTAL COST: $42-45M | STABILIZED YIELD 16%-18% The completion of Phase II with Caesars Republic Hotel
Slide 25: Asset Sale & Give-Back Strategy
C o p yr ig h t © 2 0 2 5 M ac er ic h LEVERAGE REDUCTION COMPLETED AND UNDER CONTRACT → (~$1.1 BILLION) ✓ Santa Monica Place - defaulted on $300 million loan ✓ The Oaks - closed on $157 million sale ✓ Country Club Plaza - closed on $147 million short sale and discounted payoff ✓ Biltmore Fashion Pa
Slide 26: Portfolio and Financial Overview
26 PORTFOLIO AND FINANCIAL OVERVIEW Fashion Outlets of Chicago | Chicago, IL
Slide 27: Portfolio Overview
C o p yr ig h t © 2 0 2 5 M ac er ic h Strategic disposition plan refines portfolio and creates a more focused platform for growth 27 PORTFOLIO OVERVIEW (1) Includes two community/power centers (2) Represents actual 2024 NOI – All Centers (3) Represents Pro Forma Go-Forward Portfolio NOI, adjusted t
Slide 28: Go-Forward Portfolio List
C o p yr ig h t © 2 0 2 5 M ac er ic h 28 GO-FORWARD PORTFOLIO LIST(1) Go-Forward Portfolio grouped by asset rankings (1) Preliminary list of Go-Forward assets; subject to change FORTRESS Green Acres Mall Los Cerritos Center Queens Center Scottsdale Fashion Square Tysons Corner Center FORTRESS POTEN
Slide 29: Path Forward Plan – Illustrative NOI Bridge
C o p yr ig h t © 2 0 2 5 M ac er ic h PATH FORWARD PLAN – ILLUSTRATIVE NOI BRIDGE Footnotes: See next page (dollars in millions) 29
Slide 30: Illustrative NOI Bridge Footnotes
C o p yr ig h t © 2 0 2 5 M ac er ic h ILLUSTRATIVE NOI BRIDGE FOOTNOTES (1) Net Operating Income represents NOI - All Centers for the twelve months ended December 31, 2024. NOI is a non-GAAP measurement. See ’Appendix’ for a discussion of the non-GAAP measurement and a reconciliation to GAAP loss (
Slide 31: Roadmap to FFO – Key 2028 Components
C o p yr ig h t © 2 0 2 5 M ac er ic h 31 ROADMAP TO FFO – KEY 2028 COMPONENTS ILLUSTRATIVE PRO FORMA NOI AND TARGET FFO RANGES 2028 PRO FORMA GO-FORWARD PORTFOLIO NOI $860 $880 $900 (1) Management Company and REIT G&A, net (80) (75) (70) (2) Other income, expenses and GAAP adjustments 8 10 12 (3) L
Slide 32: Path to Deleveraging
C o p yr ig h t © 2 0 2 5 M ac er ic h 3-PRONGED PLAN TO DELEVER ▪ Opportunistic equity issuance: Completed ▪ Asset sales and asset give-backs: ~60% Completed ▪ Total NOI growth: ~60% Secured 32 PATH TO DELEVERAGING TARGET GOAL: From a high 8x to a low-to-mid 6x target leverage (1) See appendix for
Slide 33: Liquidity and Capital Investment
C o p yr ig h t © 2 0 2 5 M ac er ic h 33 (1) Available Liquidity as of May 12, 2025, excludes restricted cash (2) Leasing includes tenant improvement allowances and leasing commissions associated with the Go-Forward Portfolio, which drives NOI Growth (3) Operating Capex assumes approximately $60-$6
Slide 34: Summary – Key Takeaways
C o p yr ig h t © 2 0 2 5 M ac er ic h SUMMARY – KEY TAKEAWAYS • The Path Forward Plan strategy is working • The New Macerich is a much better informed, aligned and operationally focused company than ever before • Portfolio is being repositioned to focus on the high-quality, top-performing regional
Slide 35: Case Studies
35 CASE STUDIES Scottsdale Fashion Square | Scottsdale, AZ
Slide 36: Scottsdale Fashion Square Reinvestment Success
C o p yr ig h t © 2 0 2 5 M ac er ic h AFTER BEFORE PHASE I – LUXURY WING COMPLETED NOVEMBER 2018 The Neiman Marcus wing was reimagined to deliver Arizona’s premier luxury destination, featuring world-class dining, iconic designer brands and an elite fitness club with a rooftop pool and bar. The Pha
Slide 37: Tysons Corner Center Phase II
C o p yr ig h t © 2 0 2 5 M ac er ic h 37 AFTER BEFORE Phase II In Progress: $100M In Center Enhancements Driven by strong sales and growing foot traffic, Tysons Corner Center has attracted $66M in retailer investments for store upgrades and first-of-its-kind concepts, including a first in the world
Slide 38: Chandler Fashion Center — Nordstrom to Scheels
C o p yr ig h t © 2 0 2 5 M ac er ic h In Fall 2023, the former 144K square foot Nordstrom was transformed into a first-to-market 220K square foot Scheels All Sports—marking a strategic repositioning that has already delivered strong performance gains, increased foot traffic and the designation as S
Slide 39: Appendix
39 APPENDIX Broadway Plaza | Walnut Creek, CA
Slide 40: Reconciliation of Net Loss to Adjusted EBITDA & NOI
C o p yr ig h t © 2 0 2 5 M ac er ic h RECONCILIATION OF NET LOSS ATTRIBUTABLE TO THE COMPANY TO ADJUSTED EBITDA & NET OPERATING INCOME (“NOI”) FOR THE YEAR ENDED DECEMBER 31, 2024 Net loss attributable to the Company ($194,120) Interest expense – consolidated assets 219,987 Interest expense – uncon
Slide 41: Net Debt to Adjusted EBITDA
C o p yr ig h t © 2 0 2 5 M ac er ic h NET DEBT TO ADJUSTED EBITDA Total Company's Pro Rata Share of Debt $ 6,798,037 (a) Less: Cash, including joint ventures at the Company's share (311,608) Restricted Cash, including joint ventures at the Company's share $ (114,586) Exclude: Restricted Cash that i
Slide 42: Net Debt to EBITDA Footnotes
C o p yr ig h t © 2 0 2 5 M ac er ic h NET DEBT TO EBITDA FOOTNOTES a) The debt balances include the unamortized debt discounts and loan finance costs. Debt discounts represent the deficiency of the fair value of debt below the principal value of debt assumed in various acquisitions. Debt discounts
Slide 43: Macerich
MACERICH (NYSE: MAC) ONE OF THE NATION’S LEADING OWNERS, OPERATORS & DEVELOPERS OF MAJOR RETAIL PROPERTIES IN ATTRACTIVE U.S. MARKETS, INCLUDING CALIFORNIA, PHOENIX/SCOTTSDALE, PACIFIC NORTHWEST, GREATER NEW YORK AND WASHINGTON, D.C.