Macerich Posts 34% Increase In Signed Leases YTD

Macerich Co (NYSE: MAC) disclosed its portfolio-wide leasing activity details.

Macerich penned 191 leases for 1.4 million square feet in Q2, with 2.4 million square feet signed year-to-date, 34% Y/Y.

At the end of Q2, portfolio-wide occupancy rose to 92.6%, up 80 basis-point Y/Y and 40 basis points Q/Q, led by positive re-leasing spreads (nearly doubled Q/Q to 11.3% in Q2).

In Q2, Macerich opened 263,000 square feet of new stores, about 20% more square footage Y/Y, which includes several major brands across its properties.

"The leasing pipeline of new store openings now accounts for almost $66 million of incremental rent in the aggregate, which will be realized in 2023, 2024 and 2025. And this incremental rent will continue to grow as we continue to approve new deals and sign new leases. In addition to the positive impact on NOI and cash flow, many of these new uses, especially those in larger formats, will significantly increase traffic and energy in our portfolio of Regional Town Centers," stated Doug Healey, senior executive vice president, Leasing.

This month, Macerich reported Q2 sales of $212.37 million, missing the estimate of $218.71 million, and FFO per share, excluding financing expense in connection with Chandler Freehold, came in at $0.40 vs. $0.46 a year ago.

Price Action: MAC shares are trading higher by 0.60% at $11.70 premarket on the last check Monday.