MAC - Macerich Q2 earnings beat even as net operating income growth slows

Macerich ( NYSE: MAC ) Q2 earnings exceeded the Wall Street consensus but its revenue missed on Thursday as re-leasing spreads narrowed from the prior quarter, and its growth in same-center net operating income moderated from a robust Q1.

The shopping mall REIT now expects FY2022 adjusted FFO per share of $1.92-$2.04 vs. prior range of $1.90-$2.04 and consensus of $1.96.

Q2 FFO, excluding financing expenses related to Chandler Freehold, were $0.46 per share, topping the $0.44 consensus. That compared with $0.50 in Q1 and $0.59 in Q2 2021.

Same-center net operating income, excluding lease termination income, rose 5.4% Y/Y; that's down from 24.7% increase in the prior quarter.

Q2 revenue of $204.1M, trailing the $205.3M consensus, dropped from $216.1M in Q1 and from $215.5M in Q2 2021.

Portfolio occupancy was 91.8% at June 30, 2022 vs. 91.3% at March 31.

During the quarter, Macerich ( MAC ) signed 274 leases for 1.2M square feet vs. 220 leases for 617K square feet in Q1 2022. On a Y/Y basis, the company signed 27% more new and renewal leases for 74% more square footage.

Re-leasing spreads were 0.6% greater than expiring base rent for the twelve months ended June 30, 2022; that compares with +1.3% for the 12 months ended March 31, 2022.

Conference call at 1:00 PM ET.

Earlier, Macerich ( MAC ) FFO of $0.46 beats by $0.02, revenue of $204.09M misses by $1.18M

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