The Macerich Company, a major player in retail real estate, operates 42 million square feet of properties, primarily consisting of 39 regional shopping centers in strategic U.S. markets. The company’s portfolio is concentrated in California, the Pacific Northwest, and metro areas like New York and Washington, D.C.

In its first-quarter 2025 financial results, Macerich demonstrated signs of stability with a modest increase in some key metrics. Funds from Operations (FFO), excluding certain expenses, reached approximately $87.4 million, up from $74.6 million in the same quarter of 2024. This translates to an adjusted FFO per share of $0.33, consistent with the previous year’s figure.

Total revenues for the quarter were reported at $249.2 million, compared to $208.8 million a year earlier. The leasing revenue component experienced a significant uptick to $235.6 million, compared to $191.7 million in Q1 2024. The company signed leases totaling 2.6 million square feet during the quarter, a 156% increase from the prior year’s 1 million square feet. Of this, 2.3 million square feet were renewals, underscoring robust renewal activity.

Same center Net Operating Income (NOI), excluding lease termination income, increased by 0.9% year-over-year. Importantly, NOI, excluding Eddy assets, rose by 2.4%. Portfolio occupancy stood at 92.6% as of March 31, 2025, reflecting a decline from 94.1% at the end of the previous quarter, primarily due to the loss of temporary holiday tenants.

Leasing spreads also showed an encouraging trend, with a trailing twelve-month average gain of 10.9%, marking the fourteenth consecutive quarter of positive spreads. The breakdown indicated new deal spreads were at 22%, while renewal spreads were lower at 7%.

The company noted significant achievements in its Path Forward plan, with total dispositions reaching $1.1 billion. This includes concluded asset sales totaling $538 million and additional contracted sales of approximately $37 million. The expectation for total asset sales remains within the $100 million to $150 million range for the entirety of 2025.

As of the report date, Macerich’s liquidity was approximately $995 million, boosted by a recent equity raise of $500 million. The company plans to continue addressing its debt obligations; as of the end of the first quarter, net debt to EBITDA was reported at 7.9x, down nearly one turn from the start of the Path Forward plan.

Macerich maintains a quarterly dividend of $0.17 per share, consistent across recent fiscal periods. Overall, while facing challenges with occupancy rates, the company indicated a strong operational performance through increased lease activity and effective management of its financial obligations.