MAC

Macerich owns a portfolio of largely Class-A regional malls (Arrowhead, Kings Plaza, Los Cerritos, Green Acres) with high leased occupancy — most flagship centers sit in the mid-90s percent leased — and the operating recovery is real: revenue grew 10.4% to $1.01B and operating cash flow rose 13.5% to $322M. As with all REITs, the GAAP net loss of -$197M is the wrong headline metric; it is driven largely by $368M of depreciation and amortization (up 20.3%), a non-cash charge. The cash story is healthier — operating cash flow of $322M covers the $188M of dividends paid (up 16.7%), and cash on the balance sheet tripled to $280M.

The constraint is leverage. Macerich carries $5.07B of long-term debt (up 3.6%) against $2.45B of equity (down 11.2%), a 2.39x liabilities/equity ratio that is high even for a REIT and leaves the equity sensitive to cap-rate and refinancing moves in a higher-rate environment. The MD&A also flags inflation as a continuing negative on costs in 2025-2026. With FFO-type cash flow covering the dividend but only modestly, and equity eroding, the balance sheet is the key swing factor.