Caitlin Burrows's questions to Macerich Co (MAC) leadership • Q3 2024
Question
Caitlin Burrows from Goldman Sachs pointed out that despite strong leasing, portfolio occupancy has not increased significantly, and asked for the reasons behind this limited upside. She also inquired about the dividend, its payout ratio, and whether management considers it to be at an appropriate level.
Answer
President and CEO Jackson Hsieh explained that the company is shifting from a quarter-to-quarter focus to a more strategic, long-term approach to leasing that will drive permanent occupancy higher over the next 24 months. Regarding the dividend, he stated the Board is comfortable with the current level, as retaining cash flow is crucial for reinvesting in the portfolio during this execution phase. The goal is to eventually grow FFO to a level that supports a higher payout ratio, but for now, the dividend will likely remain stable.