Linda Yu Tsai's questions to Macerich Co (MAC) leadership • Q3 2024
Question
Linda Tsai of Jefferies inquired if the 7.2% to 7.4% acquisition cap rate for JV buyouts is expected to compress in the future. She also asked what market conditions would need to exist for Macerich to consider a sale of the entire company.
Answer
President and CEO Jackson Hsieh stated that he expects cap rates for high-quality mall assets to compress over time as the business is performing well and the growth rate is strong. Regarding a corporate sale, he emphasized his focus is on executing the current plan to tighten the portfolio, clean up the balance sheet, and position Macerich to capitalize on future opportunities. He expressed optimism about the company's unique position in the public REIT sector and its ability to operate these complex assets effectively.