Macerich Company (The) (MAC) Business Profile

What it does

Macerich is a self-managed real estate investment trust, or REIT, that owns interests in shopping centers across the United States. Its business is to acquire, lease, manage, develop and redevelop retail properties. Its customers are primarily retailers and other businesses that rent space at those centers. Jack Hsieh is its president and chief executive officer.

As of December 31, 2025, Macerich had interests in 37 regional retail centers and one community/power shopping center, totaling approximately 39 million square feet of gross leasable area. Some properties are consolidated in its financial statements; others are held through joint ventures. The company conducts its operations through an operating partnership and its management companies.

A regional retail center typically combines large anchor stores with smaller shops, restaurants and other uses. Anchors can help draw shoppers to a center, while smaller tenants occupy space along the mall corridors. Macerich’s centers also include office, hotel and residential space adjacent to shopping centers.

The company manages properties and leases space using a combination of on-site professionals and regional leasing managers. It also provides management and leasing services selectively to third parties. Its activities include changing tenant mixes, replacing vacant stores and redeveloping parts of centers for new uses.

How it makes money

Macerich earns rent by leasing shopping-center space. Mall and freestanding store leases generally provide for a base rent and a percentage rent linked to tenant sales. Some leases have only a minimum rent, while others have only a sales-based rent. Rent depends on the lease and the type of space: large anchors generally pay lower rates than smaller mall and freestanding stores.

Tenants also help pay for operating the centers. Leases generally require mall and freestanding tenants to pay their share of property taxes and a stated amount for operating expenses other than taxes. Other leases require contributions toward common-area maintenance, insurance, advertising and other center expenses. Macerich also manages one community center for a third-party owner on a fee basis.

For the year ended December 31, 2025, approximately 73% of the centers’ total rents came from mall and freestanding stores under 10,000 square feet, and 27% came from big-box and anchor tenants. Total rents in that breakdown include minimum and percentage rents. Anchors accounted for approximately 6.9% of the company’s total rents for the year.

Leases provide recurring rent while tenants occupy their space, but the company must replace or renew leases as they expire. Percentage rent also varies with tenant sales. Shopping-center earnings are generally higher in the fourth quarter, when retailer occupancy and sales are typically highest and much of the percentage rent is recognized.

For the third quarter of 2026, adjusted funds from operations were $0.37 per diluted share. Macerich expects tenants that have signed leases but not yet opened to contribute rent as their stores open.

Customers and how it sells

Macerich leases to national and regional retailers, anchors, restaurants and other businesses. Its properties are located throughout the United States, with centers including Tysons Corner in Virginia, Scottsdale Fashion Square in Arizona, Queens Center in New York and Crabtree Mall in North Carolina. Its portfolio includes both wholly owned and joint-venture properties.

At December 31, 2025, the centers primarily included 127 anchors and approximately 4,600 mall and freestanding stores. Dick’s Sporting Goods, Victoria’s Secret, Signet Jewelers and Abercrombie & Fitch were among the largest tenant groups by total rents in place. Victoria’s Secret accounted for 2.2% of total rents in place as of that date.

The company uses on-site property managers and regional leasing managers to work with tenants and understand local markets. It also selectively uses third-party leasing brokers. Property managers oversee center operations, marketing, maintenance and security.

Anchors can own their stores and the land beneath them, or lease their space from the center owner. At year-end 2025, the company was seeking replacement tenants, pursuing replacement leases or considering redevelopment for many vacant anchor sites.

Suppliers and costs

Macerich’s costs include property operations, maintenance, insurance, real estate taxes, leasing and redevelopment. Its property managers oversee maintenance, security and marketing and focus on controlling operating costs. Tenants reimburse or contribute to some center expenses, although the amount and method depend on their leases.

The company has in-house staff for acquisition, accounting, development, finance, leasing, legal work, marketing, property management and redevelopment. It had approximately 598 employees as of December 31, 2025. It also selectively uses outside leasing brokers.

Financing is another cost. Macerich has floating-rate debt and expects increased interest expense when it refinances or extends loans that currently carry below-market interest rates. It has used interest-rate caps and swaps for some floating-rate exposure, although those agreements may not be effective in reducing that exposure.

Capital spending includes maintaining properties, leasing space and redeveloping centers. The company estimates its share of the FlatIron Crossing development at between $125.0 million and $135.0 million, with opening anticipated in phases beginning in 2027.

Competitive position

Macerich competes with owners, developers and managers of malls, shopping centers and other retail real estate for both properties and tenants. It also faces competition from other retail formats and online shopping. Competition for acquisitions can raise purchase prices, while competing centers can affect leasing and the rents Macerich can charge. No individual competitors are named.

Macerich believes retailers consider a center’s location, design, customer demographics, rental rates, anchors, other tenants and operating experience when deciding where to lease. The company uses on-site property managers and regional leasing managers and adjusts its tenant mix at each center.

Our reading: Established centers with a mix of anchors and smaller stores offer some local competitive protection because anchors help draw shoppers for other tenants, but competing centers and online shopping limit that protection.

Our reading: Macerich’s local operating and leasing capabilities support its ability to manage properties and tenant relationships, but they do not eliminate competition for tenants or acquisitions.

In the third quarter of 2026, Macerich said it had been more successful pursuing off-market acquisitions than fully marketed deals, and had not won recent marketed opportunities for the types of malls it seeks.

Growth opportunities

Macerich’s growth strategy includes leasing, redevelopment, selective development and acquisitions. It seeks to improve acquired properties through leasing, management and redevelopment, and may add mixed-use space by developing available land or replacing underperforming department stores. Its Path Forward Plan also aims to reduce leverage, invest in selected assets and consolidate some joint-venture interests.

During 2025, Macerich signed 1,199 new and renewal leases for approximately 7.1 million square feet. It acquired Crabtree Mall in Raleigh for $290.0 million and sold several properties and parcels, including Lakewood Center. The company used proceeds from some sales to pay down debt or for general corporate purposes.

At FlatIron Crossing in Colorado, a joint venture is developing residential units, retail and food uses, and a community plaza. At Green Acres Mall in New York, Macerich is redeveloping space to include new exterior shops and grocery use. The company expects projects to open in phases and says it will be selective about new development spending.

In the third quarter of 2026, Macerich said all 30 targeted anchor replacements in its plan were committed, with eight open and others under construction or progressing through leases. It expected growth in net operating income from its go-forward centers to accelerate in 2027 and 2028 as signed tenants open. The company also said it was under contract to acquire another mall, subject to closing conditions, and expected to fund it with equity.

Structural risks

• Retail demand and tenant health: Changes in consumer behavior, economic conditions and online shopping can reduce demand for retail space or tenant sales. Weaker sales can affect tenants’ ability to pay rent and reduce sales-based rent.
• Anchor closures and leasing: Anchor closures can trigger co-tenancy clauses in other leases and lead to lower revenue or occupancy. Macerich may also have difficulty renewing or replacing expiring leases at higher rents.
• Debt and refinancing: Higher interest rates increase the cost of floating-rate borrowing and can raise the cost of new or refinanced debt. A breach of debt covenants could lead to a default and potentially accelerate debt repayment.
• Property-level defaults: In the third quarter of 2026, Macerich said its $76 million share of the 29th Street loan remained in default. The $74 million loan at Fashion Outlets of Niagara Falls and the $325 million loan at Fresno Fashion Fair were also in default, and the company was discussing terms with lenders.
• Development and acquisitions: Acquired properties may not achieve expected financial or operating results, including if Macerich cannot raise financing on suitable terms or improve occupancy and rents. Redevelopment requires capital and depends on tenants opening as planned.
• Insurance and regulation: Some losses are not insured because they are uninsurable or not economically insurable. Regulatory compliance can affect capital spending, earnings and the company’s competitive position.

Bottom line

Our reading

Our reading: Macerich’s business rests on leasing retail space at shopping centers and maintaining a tenant mix that draws shoppers and supports rent. (item1; item7) Its redevelopment and acquisition plans offer ways to add income, but require capital and successful leasing. (item1; call_prepared) Our reading: Debt maturities, property-level defaults and tenants’ exposure to retail spending remain important constraints alongside those plans. (item1a; call_prepared)