Macerich Delivers Record Leasing Activity and Accelerates Path Forward Plan at Citi’s 2026 Global Property CEO Conference

Macerich Company (NYSE: MAC), a leading U.S. owner, operator, and developer of major retail properties, presented a robust business update at the Citi 2026 Global Property CEO Conference. The company reported significant progress in leasing activity, portfolio transformation, and financial deleveraging—developments that could materially impact investor sentiment and share valuation.

Key Highlights from Macerich’s 2026 Business Update

• Record-Breaking Leasing and Occupancy:
  • Leasing volumes surged, with 7.1 million square feet of new and renewed leases signed in FY 2025, up from 3.9 million in FY 2024.
  • The number of signed leases rose to 1,199 in 2025 from 819 in 2024, with 291 new store openings in 2025 compared to 197 the prior year.
  • The introduction of 99 new-to-Macerich brands in 2025, up from 65 in 2024, underscores the company’s appeal to both established and emerging retailers.
  • Leased occupancy was 94.9% at year-end 2025, with physical occupancy at 90.9% as Macerich executed an ambitious plan to elevate portfolio quality.
• Strong Pipeline and Leasing Momentum:
  • The company is ahead of schedule in its five-year Path Forward Plan, reporting 76% completion of new lease deals by February 2026, surpassing the 70% target for that date.
  • Macerich projects approximately 1,000 new tenant openings over five years, with 800 deals already committed or in Letter of Intent (LOI) negotiations.
  • The substantial Signed Not Open (SNO) leasing pipeline is expected to generate ~\$107 million in incremental annual revenue, with a cumulative SNO potential of \$140 million through 2028. An estimated 80% of SNO revenue is expected to flow through to Net Operating Income (NOI).
• Anchor and Big Box Transformation:
  • The Path Forward Plan includes 30 anchor and big box replacements totaling 2.9 million square feet, replacing approximately 1.2 million square feet of outdated or vacant retail space.
  • 12 new anchors are scheduled to open between 2025 and 2028, with five already open, five under construction, and 11 executed or with leases out as of the report date.
  • These new anchors are expected to drive traffic, boost sales, and significantly enhance inline leasing and overall asset productivity.
• Occupancy and Rental Uplift:
  • The Path Forward Plan is targeting a 500 basis point (bps) increase in permanent occupancy, driven by a curated tenant mix and the conversion of temporary tenants to permanent leases, which typically delivers significant rent uplifts.
  • Temporary decreases in physical occupancy are expected in the first half of 2026 due to planned downtime for new permanent tenant build-outs and construction.
• Strategic Asset Sales and Deleveraging:
  • Macerich has made notable progress in asset sales and mortgage give-backs, key components of its leverage reduction strategy.
  • Outparcel sales completed or under contract total approximately \$135 million, exceeding the 2025 target of \$100–\$150 million. Additional outparcels totaling \$375–\$475 million are in progress.
  • Major asset transactions include the sale of The Oaks (\$157 million), Biltmore Fashion Park (\$110 million), Country Club Plaza (\$147 million short sale), and Lakewood Center (\$332 million), among others.
  • The total disposition plan aims to reach \$2 billion, with remaining mall and outparcel assets expected to sell at cap rates in the 7–12% range, depending on the asset type.
  • Santa Monica Place defaulted on a \$300 million loan, reflecting Macerich’s willingness to walk away from underperforming assets to strengthen the overall portfolio.
• Portfolio Repositioning in Prime Markets:
  • Macerich continues to focus on high-quality retail properties in attractive U.S. markets, including Phoenix/Scottsdale, the Pacific Northwest, Greater New York, North Carolina, and Washington, D.C.

Potentially Price-Sensitive Developments for Shareholders

• Accelerated leasing velocity and higher occupancy rates could materially boost rental revenues and property values.
• The \$107–\$140 million SNO leasing pipeline has the potential to drive substantial incremental NOI over the next three years.
• Execution of the \$2 billion asset disposition plan and successful deleveraging may lower risk and improve financial flexibility, addressing investor concerns over balance sheet strength.
• Portfolio repositioning toward higher-quality, more resilient properties could command premium valuations in the public market.
• Risks remain, including exposure to elevated interest rates, tenant bankruptcies, and macroeconomic headwinds such as inflation and changing consumer preferences.
• Santa Monica Place loan default and additional planned give-backs signal a disciplined approach to asset management but could temporarily impact headline numbers.

Conclusion

Macerich has delivered on key milestones of its Path Forward Plan, with leasing activity, occupancy, and pipeline momentum all ahead of schedule. The combination of record leasing, transformative asset recycling, and deliberate deleveraging positions the company for a period of enhanced growth and value creation. However, investors should remain mindful of ongoing risks in the retail real estate sector and monitor the company’s execution on asset sales and lease-up targets in the coming quarters.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. All information is derived from Macerich’s public filings and presentations as of March 2026. Investors should review the company’s latest SEC filings and consult with a financial advisor before making investment decisions. The author assumes no liability for investment actions taken based on this article.

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