Samir Khanal's questions to Macerich Co (MAC) leadership • Q3 2024
Question
Samir Khanal of Evercore ISI asked about Macerich's ability to continue pushing rents given flat sales trends and inquired about which retail categories were driving this flatness. He also asked for the cap rate on The Oaks disposition.
Answer
Senior Executive Vice President of Leasing Doug Healey responded that there has been no correlation between flat sales and retailer demand, which remains robust and is up 40% in terms of square footage reviewed compared to last year. He explained that rising occupancy gives them more power to push rates, balanced with merchandising needs. President and CEO Jackson Hsieh added that the focus is on upgrading specific underperforming spaces to drive rent growth. Regarding sales, Home Furnishings was the weakest category, while most others were slightly negative. Hsieh also confirmed The Oaks sale was at a 13% cap rate.