Macerich(MAC) - 2024 Q4 - Annual Results

Financial Performance - The net loss attributable to the Company for Q4 2024 was $211.2 million, or$ 0.89 per diluted share, compared to a net income of $62.2 million, or$ 0.29 per diluted share, for Q4 2023[11]. - Funds from Operations (FFO) for Q4 2024 were $116.7 million, or$ 0.47 per diluted share, down from $127.7 million, or$ 0.57 per diluted share, in Q4 2023[11]. - For the three months ended December 31, 2024, total revenues increased to $273,676,000 from$ 238,688,000 in the same period of 2023, representing a growth of 14.6%[29]. - The company reported a net loss attributable to the Company of $(211,210,000) for the three months ended December 31, 2024, compared to a net income of$ 62,179,000 in the same period of 2023[29]. - Funds From Operations (FFO) for the three months ended December 31, 2024, was $126,214,000, down from$ 158,391,000 in the same period of 2023, a decrease of 20.3%[29]. - Interest expense increased significantly to $70,933,000 for the three months ended December 31, 2024, compared to$ 25,413,000 in the same period of 2023, marking an increase of 179.5%[29]. - The company experienced a loss on the sale or write down of assets of $(233,347,000) for the three months ended December 31, 2024, compared to a gain of$ 706,000 in the same period of 2023[29]. - The Adjusted EBITDA for the twelve months ended December 31, 2024, was $707,207 thousand, a decrease from$ 722,041 thousand in 2023[43]. - The total market capitalization increased to $11,903,254 thousand as of December 31, 2024, up from$ 10,409,768 thousand in 2023[46]. - The equity market capitalization rose to $5,255,678 thousand in 2024, compared to$ 3,490,189 thousand in 2023, reflecting a growth of 50.7%[46]. Occupancy and Leasing - Portfolio occupancy as of December 31, 2024, was 94.1%, a 0.6% increase from 93.5% at the end of 2023[17]. - The Company signed leases for 3.7 million square feet in 2024, a 3.9% decrease compared to 2023, with Q4 2024 seeing a 15.3% increase in leased square footage compared to Q4 2023[17]. - Same center net operating income (NOI) decreased by 0.4% in Q4 2024 compared to Q4 2023, but increased by 0.2% for the full year[11]. - Leasing revenue for the twelve months ended December 31, 2024, was $850,453,000, up from$ 809,023,000 in 2023, reflecting a year-over-year increase of 5.1%[29]. - The average base rent per square foot for consolidated centers increased to $65.62 in 2024 from$ 61.66 in 2023, reflecting an increase of 4.8%[79]. - The average sales per square foot for consolidated centers rose to $743 in 2024, up from$ 712 in 2023, marking a 4.4% increase[74]. Capital and Debt Management - The Company had approximately $683 million in liquidity, including$ 540 million available on its revolving line of credit[14]. - The Company completed an underwritten public offering of 23 million shares at $19.75 per share, generating approximately$ 454 million in gross proceeds[7]. - Total portfolio debt, including joint ventures at pro rata, decreased to $6,647,576 thousand in 2024 from$ 6,919,579 thousand in 2023[46]. - The debt as a percentage of total market capitalization improved to 55.9% in 2024, down from 66.5% in 2023[46]. - The weighted average interest rate on the company's debt is 5.53%[108]. - The effective interest rate for total debt is 5.48%, with fixed rate debt averaging 5.38% and floating rate debt averaging 6.66%[111]. - The company has a total of $1,687,797,000 in unconsolidated assets, with fixed rate debt at$ 1,555,190,000 and floating rate debt at $132,607,000[111]. Dividends and Shareholder Returns - A quarterly cash dividend of$ 0.17 per share was announced, payable on March 18, 2025[15]. - The company paid a dividend of $0.17 per share for both the three months ended December 31, 2024, and 2023, maintaining the same dividend level[29]. - The company's stock price reached a high of$ 22.27 and a low of $17.29 in the fourth quarter of 2024, with dividends declared and paid consistently at$ 0.17 per share[119]. Asset Management and Acquisitions - The acquisition of a 40% interest in the Pacific Premier Retail Trust portfolio was completed for a net price of $122 million, with an implied cap rate of 7.4%[17]. - The Company sold The Oaks for$ 157 million and Southridge for $4 million, using proceeds to repay loans totaling$ 148 million[8]. - The company acquired a 100% interest in several regional retail centers, including Lakewood Center and Los Cerritos Center, for a total cash payment of $129.0 million[71]. - The company has a total of 2,322,000 square feet in other assets under redevelopment[98]. - The Paradise Valley Mall redevelopment project is ongoing, with a 5% joint venture interest retained by the company[99]. Future Projects and Developments - The company is developing and redeveloping projects with total costs estimated between$ 444 million and $490 million, with expected yields ranging from 7.5% to 18%[116]. - The expected opening for the FlatIron Crossing project is between 2027 and 2029, with a pro rata total cost of$ 120 million to $130 million[116]. - The Green Acres Mall redevelopment is expected to stabilize in 2026, with a total cost of$ 120 million to $140 million and a yield of 13% to 14%[116]. - The Scottsdale Fashion Square redevelopment is projected to yield between 16% and 18%, with an expected opening in 2024 to 2025[116].