NYSE$MAC

The Macerich Co · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

The company experienced resilient fundamentals despite macro issues, signed significantly more leases, and saw record high portfolio tenant sales per square foot.

Macerich reported a net loss of $15.4 million, or $0.07 per share-diluted, for the second quarter of 2022. However, same center net operating income, excluding lease termination income, increased by 5.4% compared to the same period in 2021. Portfolio occupancy increased to 91.8%, and the company signed 27% more new and renewal leases for 74% more square footage than in Q2 2021. Portfolio tenant sales per square foot reached a record high of $860.

  • Net loss attributable to the Company was $15.4 million, or $0.07 per share-diluted.
  • Funds from Operations (FFO), excluding financing expense in connection with Chandler Freehold, was $102.9 million, or $0.46 per share-diluted.
  • Same center net operating income (NOI), excluding lease termination income, increased 5.4%.
  • Portfolio occupancy was 91.8%, a 2.4% increase compared to June 30, 2021.

Headline financials

Total Revenue

$204M

Previous: $215M-5.3%
EPS (adj)

$0.46

Previous: $0.59-22.0%
Leased Portfolio Occupancy

91.8%

Previous: 89.4%+2.7%
Capital Expenditures

-$17.7M

Previous: -$16.1M-9.9%
Free Cash Flow

-$33.1M

Previous: -$20.2M-64.1%
Net Income

-$15.4M

Previous: -$4.06M-278.7%
Operating Income

$125M

Previous: $128M-2.7%
Gross Profit

$204M

Previous: $215M-5.3%
Cash & Equivalents

$106M

Previous: $194M-45.2%
Total Assets

$8.11B

Previous: $8.64B-6.1%
Stock-Based Comp

$4.28M

Previous: $3.43M+24.9%

Revenue & EPS history

Macerich · Revenue · Quarterly

$204M

Q2 2022-5.3%vs Q2 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

The company narrowed the ranges of its 2022 guidance for both estimated EPS-diluted and FFO per share-diluted, excluding financing expense in connection with Chandler Freehold. They also increased the guidance range midpoint for estimated 2022 FFO per share-diluted, excluding financing expense in connection with Chandler Freehold, and decreased the guidance range midpoint for estimated 2022 EPS-diluted.

Tailwinds

  • FFO per share – diluted, excluding financing expense in connection with Chandler Freehold is expected to be between $1.92 and $2.04
  • Assumes no further government-mandated shutdowns of properties
  • Does not assume any sale of common equity during 2022
  • Cash Same Center Net Operating Income (“NOI”) Growth, excluding Lease Termination Income is expected to be 5.50 %-6.75%
  • Lease termination income is expected to be $26 million

Headwinds

  • Estimates do not include possible future gains or losses or the impact on operating results from possible future property acquisitions or dispositions, other than land sales.
  • Interest expense is expected to be $272 million
  • Bad debt expense is expected to be $1 million
  • Straight-line rental income is expected to be $3 million
  • Amortization of acquired above and below-market leases (net-revenue) is expected to be $5 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.6%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-0.2%

Avg return

30 days after

46%

31 / 68 earnings

Positive

+9.9%

Q1 2025

Best reaction

-15.9%

Q1 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%+0.6%+10.0%
Q4 2025+3.6%+5.3%-5.4%
Q3 2025-0.3%+1.0%+0.3%
Q1 2025+9.9%+7.0%+11.3%
Q4 2024+1.9%-6.8%-13.5%
Q3 2024+1.9%+6.2%+16.7%
Q2 2024-7.3%-14.3%-4.5%
Q1 2024-15.9%-10.7%-7.4%
Q4 2023-0.5%+7.3%+4.5%
Q3 2023+0.5%+15.0%+17.5%
Q2 2023-1.1%-1.3%-7.7%
Q1 2023-2.3%-7.5%-0.9%
Q4 2022-2.8%-4.4%-17.0%
Q3 2022+6.3%+3.2%+9.9%
Q2 2022+1.7%-3.4%-4.9%
Q1 2022-3.7%-6.7%-16.1%
Q4 2021+0.1%-0.9%-10.8%
Q3 2021+1.1%+1.5%-15.4%
Q2 2021+1.0%+2.4%+5.0%
Q1 2021-8.2%-1.3%+22.2%
Q4 2020-1.1%-17.4%-13.2%
Q3 2020-4.3%+24.9%+64.5%
Q2 2020+0.9%-2.8%-7.7%
Q1 2020-6.6%-2.8%+40.1%
Q4 2019-2.3%+1.4%-18.7%
Q3 2019+3.0%+6.0%-1.6%
Q2 2019-2.1%-6.4%-13.7%
Q1 2019+4.5%+1.2%-9.2%
Q4 2018-3.6%-2.3%-6.4%
Q3 2018+0.4%+0.0%-3.1%
Q2 2018+1.4%+0.6%-0.5%
Q1 2018+0.4%+1.3%-4.1%
Q4 2017-2.9%-1.7%-3.6%
Q3 2017-3.5%-3.8%+13.6%
Q2 2017-1.7%+4.7%-8.0%
Q1 2017+0.5%+4.6%-5.4%
Q4 2016-2.8%-1.4%-8.0%
Q3 2016-5.5%-8.1%-7.7%
Q2 2016-1.6%-3.4%-8.2%
Q1 2016+0.7%
Q4 2015-2.8%
Q3 2015+1.4%
Q2 2015+0.2%
Q1 2015-1.6%
Q4 2014+1.0%
Q3 2014-0.3%
Q2 2014-1.9%
Q1 2014+0.4%
Q4 2013+3.1%
Q3 2013-2.0%
Q2 2013+0.8%
Q1 2013-1.4%
Q4 2012+2.4%
Q3 2012-0.3%
Q2 2012-0.5%
Q1 2012+0.3%
Q4 2011+0.7%
Q3 2011-1.9%
Q2 2011-11.4%
Q1 2011+0.6%
Q1 2010+0.6%
Q4 2010+7.6%
Q4 2008+7.6%
Q3 2010-0.1%
Q3 2009-0.1%
Q2 2009-0.8%
Q2 2010-0.8%
Q4 2009-0.8%

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