Macerich Poised to Sell or Hand Over Properties in Wake of Quarterly Loss
By Nick Trombola April 30, 2024 5:10 pm
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Shopping-mall giant Macerich is suffering from some post-pandemic recovery pains.
The Los Angeles-based REIT, one of the largest owners and operators of shopping centers in the country, is poised to sell or hand over some of its properties to investors to help settle some of its mounting debt obligations, according to reporting by Bisnow. It was not immediately clear which or how many of its properties Macerich could shed.
Yet it’s true that financial concerns are swelling at the firm — it noted nearly $127 million in net losses in the first quarter of this year, or more than double what it lost in the first quarter of 2023, according to its quarterly earnings report. Much of that is likely attributable to the bankruptcy of clothing brand Express, one its major tenants, which plans to close 100 of its 530 locations nationwide.
Shares in Macerich fell 8 percent Tuesday after it disclosed the losses.
The company defaulted on a $300 million loan tied to outdoor shopping center Santa Monica Place earlier this month, adding to its woes. Macerich is also refinancing a number of its properties, including The Oaks in Thousand Oaks, Calif., Fashion Outlets in Niagara Falls, N.Y., and Chandler Fashion Center in Chandler, Ariz., just south of Phoenix.
Still, recent financial news is not all bad for the publicly traded REIT.
It signed more than 1 million square feet of leases in the first quarter of this year, an increase of 14 percent increase year-over-year, and it bested revenue expectations by more than $5 million this quarter, per Bisnow. However, its $208.8 million in quarterly revenue is still less than the nearly $215 million reported in the first quarter of last year.
Last year was also one of the best years on record for Macerich in terms of leasing, signing 4.2 million square feet, a 12 percent increase from 2022. Those leases brought occupancy at its 46 million-square-foot portfolio to over 93 percent.
Representatives for Macerich did not immediately respond to a request for comment.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
