Key Highlights

● Funds from operations, as adjusted, rose to $100.4 million from $88.7 million.

● Total portfolio leased occupancy reached 94.0 per cent at 30 June 2026.

● Debt fell to 46.0 per cent of total market capitalization, down from 57.1 per cent.

● The company acquired Annapolis Mall in Maryland for $260 million in April.

The Macerich Company (NYSE:MAC) reported second-quarter 2026 results on 4 August 2026, and the figures point to a retail property owner still working through a balance-sheet repair while operating metrics improve. Funds from operations, as adjusted, were $100.4 million, or $0.35 per diluted share, compared with $88.7 million, or $0.34, a year earlier. The company still recorded a net loss attributable to shareholders of $27.1 million, narrower than the $40.9 million loss in the prior-year quarter, a change the filing attributes mainly to gains on asset sales. Total revenues were $249.7 million, essentially unchanged from $249.8 million, so the profit improvement came from elsewhere, including lower consolidated interest expense.

Operating Metrics at the Malls

Management's operating disclosures were firmer than the revenue line. Net operating income for the go-forward portfolio, excluding lease termination income, rose 3.8 per cent in the quarter. Total portfolio leased occupancy reached 94.0 per cent at 30 June, against 92.0 per cent a year before, while trailing twelve-month tenant sales for smaller spaces averaged $919 per square foot, up from $849. One datum cuts the other way: average base rent per square foot across the go-forward portfolio was $71.89, below the $73.06 reported a year earlier. Higher occupancy alongside lower average rent is a reminder that filling space and raising rents are separate achievements, and the quarterly release reviewed did not disclose leasing spreads, which would have shown the pricing on new and renewed leases directly.

Capital Raising and Leverage

The balance sheet remains the central analytical question. Total pro rata debt stood at $6.34 billion at a weighted average rate of 5.29 per cent and a weighted average maturity of 3.03 years. Net debt to adjusted EBITDA was 7.30 times, or 6.83 times pro forma for unsettled forward equity. The company said debt represented 46.0 per cent of total market capitalisation, down from 57.1 per cent at the end of 2025. Equity issuance explains much of that improvement. A May public offering of 22,080,000 shares at $21.00 raised net proceeds of $448.2 million, and a June forward sale of 16.1 million shares at $23.90 is due to settle physically by 16 June 2027. Separately, Macerich acquired Annapolis Mall in Maryland on 30 April for $260 million, funded with cash and $150 million of revolver borrowings, showing that it is both repairing leverage and selectively adding assets.

Several Problem Loans Still Need Resolving

Macerich's balance sheet repair leaned heavily on equity issuance, including a May offering and a forward sale due to settle in 2027, which explains most of the drop in leverage even as net debt to adjusted EBITDA remains elevated at 7.30 times. Occupancy gains were not matched by rent growth, with average base rent per square foot actually down from a year earlier, and several specific loans, including a Santa Monica Place property under court-appointed receivership and a Twenty Ninth Street joint venture in default since February, remain open items for the next report.