Executive Summary

Revenue grew 15% YoY to $253.3M and beat S&P Global consensus by ~$8.1M (3.3%); GAAP diluted EPS was a larger loss than expected on non-cash items, while adjusted FFO/share landed essentially in line ($0.35 vs $0.353*). Key operating drivers: Go-Forward NOI +1.7% YoY, occupancy +140 bps QoQ, and robust leasing (1.5M sq ft signed).
Consensus values marked with * are from S&P Global.
Leasing momentum and pipeline continue to accelerate: 16th consecutive quarter of positive re‑leasing spreads (TTM +5.9%), SNO pipeline reached ~$99M vs ~$87M in Q2 and is “on pace to meet or exceed” $100M YE target; anchor re-tenanting progressing (e.g., Dick’s House of Sport rollout).
Balance sheet execution: ~$1B liquidity (including full $650M revolver availability), Net Debt/Adjusted EBITDA improved to 7.76x; asset sales approaching ~$1.2B with a clear path to a $2B program by end-2026.
Watch items: GAAP EPS miss tied to loss/write-down line and non-cash interest; Forever 21 liquidation created near-term friction (mgmt says ex-F21 growth would be 3%+), and South Plains $~200M loan likely in “technical default” pending extension negotiations.

What Went Well and What Went Wrong

What Went Well
- Leasing velocity and occupancy: “We had another great quarter… ahead of schedule on our Path Forward Plan,” with 1.5M sq ft signed in Q3 and total occupancy up to 93.4% (+140 bps QoQ). “We’re currently at 70% [on the leasing speedometer] today.”
- Pipeline and spreads: SNO pipeline expanded to ~$99M and TTM re-leasing spreads were +5.9% for the 16th straight positive quarter, underscoring pricing power in high-quality assets.
- Balance sheet progress: ~$1B liquidity, Net Debt/Adj. EBITDA at 7.76x (down ~1 turn since plan inception); asset sales near ~$1.2B toward the $2B target by end-2026.
What Went Wrong
- GAAP EPS miss: Diluted EPS of $(0.34) missed consensus, reflecting the burden of depreciation/amortization and a $(72.6)M net loss on sale/write-down line; CFO also highlighted $7.5M of non-cash mark-to-market interest expense from JV interest acquisitions.
- Near-term NOI drag: Forever 21 liquidations weighed on comps (mgmt says Go-Forward NOI +1.7% YoY would be “3%+” ex-F21), though 74% of the vacated space is already committed at higher rents.
- Debt maturity risk: One remaining 2025 maturity (~$200M at South Plains) is expected to be in technical default pending an extension; 2026 maturities to be addressed via sales/refis/modifications/give-backs.

Financial Results

Table 1: P&L vs QoQ, YoY, and S&P Global consensus (periods oldest→newest)

Metric	Q3 2024	Q2 2025	Q3 2025	Q3 2025 Consensus
Revenue ($USD Thousands)	$220,224	$249,793	$253,262	$245,179.9*
GAAP Diluted EPS ($)	$(0.50)	$(0.16)	$(0.34)	$(0.0802)*
FFO per share – basic & diluted ($)	$0.36	$0.32	$0.33	—
FFO per share – excl. specified items ($)	$0.38	$0.33	$0.35	$0.3530*

Notes: Consensus values marked with * are from S&P Global. FFO excludes/adjusts for items as defined by the company (see footnotes in filings).

Table 2: NOI and occupancy (periods oldest→newest)

Metric	Q3 2024	Q2 2025	Q3 2025
NOI – All Centers ($USD Thousands)	$197,405	$207,450	$208,281
NOI – Non-Go-Forward ($USD Thousands)	$(21,058)	$(25,502)	$(27,550)
NOI – Go-Forward ($USD Thousands)	$176,347	$181,948	$180,731
Go-Forward NOI ex lease termination ($USD Thousands)	$175,751	$181,213	$178,809
Go-Forward NOI YoY % (ex LTI)	—	—	+1.7%
Portfolio Occupancy (%)	93.7% (9/30/24)	92.0% (6/30/25)	93.4% (9/30/25)
Go-Forward Occupancy (%)	94.3% (9/30/24)	92.8% (6/30/25)	94.3% (9/30/25)

Table 3: Productivity and leasing KPIs (periods oldest→newest)

Metric	Q3 2024 (TTM)	Q2 2025 (TTM)	Q3 2025 (TTM)
Sales per sq ft – Total Centers ($)	$834	$849	$867
Sales per sq ft – Go-Forward ($)	$890	$906	$905
Re-leasing spreads (TTM, %)	—	10.5%	5.9%

Additional KPIs (Q3 2025 unless noted):

Leases signed: 1.5M sq ft in Q3 (vs 1.7M in Q2).
SNO pipeline: ~$99M incremental revenue at share (on pace for ≥$100M YE).
Liquidity: ~$1B including $650M revolver availability.
Net Debt/Adjusted EBITDA: 7.76x (TTM basis, as modified).
ATM issuance: Sold 2.8M shares for ~$50M at $18.03 average.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Common dividend	Q4 2025	$0.17/qtr (unchanged)	Declared $0.17; payable Dec 29, 2025; record Dec 15, 2025	Maintained
SNO pipeline (incremental revenue)	YE 2025 target	≥$100M target	Tracking ~$99M; “on pace to meet or exceed”	Reaffirmed/on track
Deleveraging (Net Debt/EBITDA)	Multi‑year	Target low–mid 6x	Reiterated path to low–mid 6x over next couple of years	Reaffirmed
Asset dispositions	Through 2026	~$2B total program	~$1.2B completed to date; “substantially complete by end‑2026”	Reaffirmed/progressing

No formal revenue/NOI/EPS guidance was issued; management frames targets within the Path Forward Plan and operating/leverage milestones.

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
Leasing momentum & speedometer	Q1: 2.6M sq ft signed; SNO ~$80M; Q2: 1.7M sq ft signed; speedometer 65%; SNO ~$87M; TTM spreads 10.5%	Q3: 1.5M sq ft signed; speedometer at 70%; SNO ~$99M; TTM spreads 5.9%	Improving execution; pacing ahead of plan
Anchor re‑tenanting (Dick’s House of Sport, etc.)	Q2: Washington Square signed; Freehold opening later in year	Freehold House of Sport opened; 9 locations committed; anchor cadence mostly 2H’27–early ’28	Advancing; traffic catalysts slated 2027–2028
Forever 21 backfills	Q2: ~50% committed, ~30% LOIs	74% of 500k sq ft committed at higher rents	Rapid progress; rent uplift expected
Balance sheet & dispositions	Q2: Net Debt/EBITDA 7.93x; Lakewood/Valley pending	7.76x; ~$1.2B mall dispositions done; land/outparcels ~$130M sold/under contract YTD	Deleveraging trend intact
Crabtree acquisition & financing	Q2: Acquired; SOFR+250 term loan; integration plans	Strong leasing interest; cosmetic/wayfinding/parking upgrades underway; financing at SOFR+250 (~mid‑6%); capex scope reiterated	Integration momentum
Macro/traffic/tariffs	Q2: Retailer demand strong despite macro/tariffs; traffic +1.6% YTD	Traffic flat; comps improved (GFP +3.5%; Fortress +4.8%) into BTS; retailers broadly optimistic for holidays	Stable consumer at higher‑end

Management Commentary

“We had another great quarter … ahead of schedule on our Path Forward Plan and well‑positioned to deliver on our 2028 targets.”
“Our leasing speedometer … initial goal for new lease deals was 70% by year‑end 2025. We’re currently at 70% today.”
“SNO pipeline … has grown … to $99 million as of today … on pace to meet or exceed our target of $100 million by year‑end.”
“Go‑Forward Portfolio Centers NOI … increased 1.7% [YoY].”
“We currently have approximately $1 billion of liquidity … Net debt to EBITDA … 7.76x … strategy to further reduce leverage to the low to mid 6x range over the next couple of years.”
“Of the 500,000 sq ft [Forever 21] that became vacant, we have commitments on 74% … with much better brands paying significantly more rent.”
“We closed on … ~$160 million … on Crabtree Mall at SOFR + 250 … gives us tremendous flexibility.”

Q&A Highlights

Equity/ATM rationale: ~$50M issued via ATM to make Crabtree leverage‑neutral relative to deleveraging goals; future ATM use to be thoughtful and tied to accretive growth.
SNO timing: Of $100M SNO target, ~$20M comes online in 2025 with the balance in 2026+.
Forever 21 backfills: Mix of single backfills and splits; emphasis on higher‑quality demand generators (e.g., Dick’s House of Sport, Zara, Uniqlo, Round One), supporting traffic and rent uplift.
South Plains maturity: Expect “technical default” as extension discussions continue; broader debt markets are more constructive even down the quality curve.
NOI ex‑F21: Management indicated Go‑Forward NOI growth would be closer to “3%+” for the quarter excluding the Forever 21 drag.

Estimates Context

Q3 2025 actuals vs S&P Global consensus:
- Revenue: $253.3M vs $245.2M* (beat by ~$8.1M; +3.3%).
- GAAP Diluted EPS: $(0.34) vs $(0.0802)* (miss on non‑cash charges/D&A/interest).
- Adjusted FFO/share: $0.35 vs $0.3530* (essentially in line).
  Consensus values marked with * are from S&P Global.

Forward consensus (as of report compilation):

Q4 2025: FFO/share $0.4335*, Revenue $275.3M*, GAAP EPS $0.0098* (n=2–6 estimates).
Q1 2026: FFO/share $0.3285*, Revenue $239.6M*, GAAP EPS $(0.10)* (n=4–5 estimates).
Consensus values marked with * are from S&P Global.

Key Takeaways for Investors

Leasing is the primary catalyst: Speedometer at 70% (ahead of plan), SNO ~$99M, and 16 straight quarters of positive spreads point to accelerating embedded revenue over the next 12–24 months.
2026 inflection set‑up: Management expects the heavy leasing work to show through P&L more meaningfully by mid‑2026; anchor re‑tenantings (e.g., House of Sport) should drive traffic, merchandising, and rent growth into 2027–2028.
Near-term print vs. “steady state”: GAAP EPS volatility reflects non‑cash items and asset sale/write-down line; FFO/share is the better operating gauge and landed in line.
Balance sheet de‑risking continues: Net Debt/EBITDA improved to 7.76x with ~$1B liquidity; on track for low–mid 6x over the next couple of years via asset sales and organic growth.
Watch the maturities and South Plains outcome: A technical default is expected as the company negotiates an extension; expect continued use of sales/refis/give-backs to manage 2026.
Quality concentration: Go-Forward portfolio productivity (GFP sales psf $905) and occupancy (94.3%) highlight resilience; management is re-focusing capital on fortress/fortress‑potential assets.
Tactical optionality: With improved financing markets and proven integration at Crabtree (SOFR+250 loan, capex plan), MAC can selectively pursue accretive external growth without compromising deleveraging.

Additional detailed data and references:

Consolidated financials and FFO bridges:
NOI and Adjusted EBITDA reconciliations:
Occupancy and sales productivity:
Liquidity, debt summary, and Net Debt/EBITDA:
Asset sales and pipeline:
Dividend declaration:

S&P Global estimates disclaimer: Consensus values marked with * are retrieved from S&P Global.

MACERICH CO (MAC)·Q3 2025 Earnings Summary