second quarter of 2026
Filed Aug 4, 2026Second-quarter FFO, as adjusted, increased while Go-Forward Portfolio NOI, tenant sales productivity and occupancy improved; the Company also raised equity and completed the Annapolis Mall acquisition.
FFO, as adjusted, increased to $100.4 million from $88.7 million, Go-Forward Portfolio Centers NOI excluding lease termination income increased 3.8%, and leased portfolio occupancy rose to 94.0%. The reported GAAP net loss narrowed, with the filing attributing the change primarily to a gain on sale of assets.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net loss attributable to the CompanyGAAP | $27.1 million | – | – |
| Net loss attributable to the Company per share-dilutedGAAP | $0.10 per share-diluted | – | – |
| FFO, as adjustednon-GAAP | $100.4 million | – | – |
| FFO, as adjusted, per share-dilutednon-GAAP | $0.35 per share-diluted | – | – |
| Go-Forward Portfolio Centers net operating income, excluding lease termination incomeother | increased 3.8% | – | increased 3.8% |
| Portfolio tenant sales per square foot for spaces less than 10,000 square feet for the twelve months ended June 30, 2026other | $919 | – | – |
| Go-Forward Portfolio Centers sales per square foot for spaces less than 10,000 square feet for the twelve months ended June 30, 2026other | $954 | – | – |
| Leased portfolio occupancy as of June 30, 2026other | 94.0% | a 0.6% increase | a 2.0% increase |
| Go-Forward Portfolio Center leased occupancy as of June 30, 2026other | 95.5% | – | – |
| Comparable-center leases signed during the second quarter of 2026other | approximately 1.3 million square feet | – | – |
| New-store leased square footageother | a 1.0% year-over-year increase | – | a 1.0% year-over-year increase |
| Expected total gross revenue from new store leases at the Company's share in excess of revenue generated in 2024 from prior uses in the same spacesother | approximately $124 million | – | – |
| Liquidity as of the date of the filingother | approximately $1.2 billion | – | – |
| Available capacity on revolving credit facility as of the date of the filingother | $900 million | – | – |
Capital returns
- Quarterly cash dividend of $0.17 per share of common stock announced on August 4, 2026, payable on September 28, 2026 to stockholders of record at the close of business on September 14, 2026.
- Sold approximately 1.2 million shares of common stock for approximately $23.8 million of gross proceeds through the at-the-market program at a weighted average price of $19.77 per share.
- Closed an underwritten public offering of 22,080,000 shares of common stock at a price to the public of $21.00 per share, generating net proceeds of $448.2 million.
- Closed an underwritten forward public offering of 16,100,000 shares of common stock at the public offering price of $23.90. The Company did not initially receive any proceeds from the sale of shares by the forward purchasers or their affiliates.
What drove it
- Go-Forward Portfolio Centers net operating income, excluding lease termination income, increased 3.8% compared with the second quarter of 2025.
- Portfolio tenant sales per square foot for spaces less than 10,000 square feet were $919 for the twelve months ended June 30, 2026, compared to $849 for the twelve months ended June 30, 2025 and $899 for the twelve months ended March 31, 2026.
- Leased portfolio occupancy was 94.0%, compared with 92.0% at June 30, 2025 and 93.4% at March 31, 2026.
- The Company signed approximately 1.3 million square feet of leases on a comparable center basis during the quarter.
- New store leases are expected to produce total gross revenue of approximately $124 million at the Company's share in excess of revenue generated in 2024 from prior uses in the same spaces.
- The filing states that the change in net loss primarily reflected the recognition of a gain on sale of assets in the second quarter of 2026.
Concerns
- The Company reported a net loss attributable to the Company of $27.1 million, or $0.10 per share-diluted.
- The improvement in net loss compared with the second quarter of 2025 was primarily due to a gain on sale of assets, according to the filing.
- The acquisition of Annapolis Mall was initially funded with cash on hand and $150 million of revolving credit facility borrowings.
- The Company did not initially receive any proceeds from its forward public offering of 16,100,000 shares of common stock.
- The filing does not provide revenue, gross margin, operating income, operating cash flow, free cash flow, total cash, or total debt figures in the supplied text.
What to watch
- Conversion of the signed-not-open leasing pipeline into tenants that are built out, open and paying rent.
- Progress of the new store leasing pipeline, which represents a cumulative and incremental estimate for open stores, leases signed not open, and leases in documentation that will or have commenced from 2024 through 2028.
- Leased portfolio occupancy and Go-Forward Portfolio Center leased occupancy.
- Performance and strategic leasing capital investments at Annapolis Mall, including Uniqlo and Dick’s House of Sport.
- Physical settlement of the forward sale agreements no later than June 16, 2027 and the intended use of resulting proceeds for future acquisition opportunities and general corporate purposes.
Balance sheet and cash flow
- Closed a new $58.7 million (at Company’s share) five-year mortgage loan on Deptford Mall. The loan bears interest at a fixed rate of 6.95% and is interest only during the entire loan term.
- Acquired Annapolis Mall for $260 million, plus the adjacent 13.1 acre vacant Sears parcel for $12 million. The acquisition was initially funded with cash on hand and $150 million of borrowings from the revolving credit facility.
- Used the net proceeds from the underwritten public offering to repay revolving credit facility borrowings, fund strategic leasing capital investments at Annapolis Mall, and for general corporate purposes, including acquisition opportunities.
- Completed the sale of its joint venture interest in West Acres for $1.4 million, including the buyer's assumption of $12.9 million of debt at the Company's share.
- Completed outparcel sales totaling $0.8 million.
- Had approximately $1.2 billion of liquidity as of the date of the filing, including $900 million of available capacity on its $900 million revolving credit facility.
- The Company intends to physically settle the forward sale agreements no later than June 16, 2027 and use the net proceeds to fund future acquisition opportunities and for general corporate purposes.
Analysis
The reported period showed improved operating momentum. FFO, as adjusted, was $100.4 million, compared with $88.7 million in the second quarter of 2025, while FFO, as adjusted, per share-diluted was $0.35 compared with $0.34. Go-Forward Portfolio Centers net operating income, excluding lease termination income, increased 3.8% compared with the second quarter of 2025. The GAAP net loss attributable to the Company narrowed to $27.1 million, or $0.10 per share-diluted, from $40.9 million, or $0.16 per share-diluted; the Company said the change was primarily due to a gain on sale of assets.
Leasing and property-level indicators were positive. Portfolio tenant sales per square foot for spaces less than 10,000 square feet rose to $919 for the twelve months ended June 30, 2026, compared with $849 for the twelve months ended June 30, 2025 and $899 for the twelve months ended March 31, 2026. Leased portfolio occupancy reached 94.0%, compared with 92.0% a year earlier and 93.4% at March 31, 2026. Go-Forward Portfolio Center leased occupancy was 95.5%, and the Company signed approximately 1.3 million square feet of comparable-center leases during the quarter.
Management's stated focus is shifting from signing leases to converting tenants into opened, rent-paying stores. New store leases are expected to produce total gross revenue of approximately $124 million at the Company's share in excess of revenue generated in 2024 from prior uses in the same spaces. This pipeline includes open stores, leases signed not open, and leases in documentation that will or have commenced from 2024 through 2028. Execution against this conversion pipeline is central to management's stated expectation for center traffic, sales and NOI growth.
Capital activity was substantial. The Company acquired Annapolis Mall for $260 million, plus the adjacent 13.1 acre vacant Sears parcel for $12 million, initially using cash on hand and $150 million of revolving credit facility borrowings. It subsequently raised approximately $23.8 million of gross ATM proceeds and $448.2 million of net proceeds in an underwritten public offering, and completed a forward public offering of 16,100,000 shares without initially receiving proceeds. The Company reported approximately $1.2 billion of liquidity, including $900 million of available revolver capacity, as of the filing date.
The filing provides no forward operating guidance figures, despite the heading "Fiscal Year 2024 Guidance Dividend." The stated capital priorities include strategic leasing capital investments at Annapolis Mall and future acquisition opportunities. Investors should focus on the pace of lease conversion, occupancy and sales productivity, property-level NOI growth, deployment of forward equity proceeds after settlement, and the financing and integration of the Annapolis Mall acquisition.
Management, verbatim
The second quarter results reflect the continued execution of our Path Forward Plan. Go-Forward Portfolio NOI grew 3.8%, our signed-not-open pipeline reached $124 million, and our leasing speedometer is at 88%, exceeding our 85% mid-year target. With the leasing phase of the Path Forward Plan substantially complete, we are focused on conversion- getting tenants built out, open and paying rent which will drive center-wide traffic, increase sales and NOI growth.
Jack Hsieh, President and Chief Executive Officer, Macerich
That scarcity of space is one of the goals of our Path Forward Plan. Roughly 90% of our Go-Forward NOI comes from Class A assets in supply-constrained markets, our sales productivity continues to set company records, and there is effectively no new supply of regional malls. The strongest retailers are concentrating their demand on centers like ours, and Gen Z – on pace to become the country’s largest spending demographic and drawn to physical, experiential retail – is a sustainable tailwind. Our teams are already leasing into 2029 and 2030 as less space remains available in our best centers.
Jack Hsieh, President and Chief Executive Officer, Macerich
With the leasing and anchor repositioning components of our plan largely de-risked, our recent acquisitions represent the next phase of value creation. At Annapolis Mall, the onboarding has gone smoothly, and the elevate-and-transform momentum is clear, with Uniqlo now open and Dick’s House of Sport opening this fall. We enter the second half of the year ahead of schedule and with substantial liquidity from our forward equity offering that will further strengthen our balance sheet. Our acquisition pipeline is robust and active across both on- and off-market properties, which represent compelling opportunities to increase earnings growth and drive shareholder value.
Jack Hsieh, President and Chief Executive Officer, Macerich
Not in the filing
stated, not guessed- Total revenue and revenue growth
- Segment revenue and segment profitability
- Gross profit and gross margin
- Operating income or loss and operating margin
- Interest expense
- Income tax expense and tax rate
- Operating cash flow
- Free cash flow
- Capital expenditures
- Total cash and cash equivalents
- Total debt and debt maturity schedule
- Share repurchases
- Full detailed financial statements and supplemental tables referenced in the filing but not included in the supplied text
- Forward revenue guidance
- Forward FFO guidance
- Forward NOI guidance
- Forward occupancy guidance
- Forward capital expenditure guidance
- Prior outlook for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.