The Macerich Company (MAC): History, Ownership, Mission, How It Works & Makes Money

As a seasoned investor, you know the retail real estate sector is a high-stakes game of adaptation, so how has The Macerich Company (MAC), a Real Estate Investment Trust (REIT), maintained its position as a leading owner of premier U.S. shopping centers? This company, which traces its roots back to 1964, continues to define its mission around creating dominant retail properties, generating a trailing twelve-month revenue of approximately $1.03 billion as of September 30, 2025, and managing a portfolio of about 42 million square feet of gross leasable area. Despite the e-commerce headwinds, Macerich's strategy of redeveloping its high-quality assets-like Tysons Corner Center in Virginia-is reflected in a Q3 2025 Funds From Operations (FFO) per share of $0.35, which is the key metric for real estate performance. Honestly, understanding their business model-which is centered on leasing and property management-is crucial for mapping out the future of physical retail, especially with their market capitalization sitting near $4.567 billion as of November 2025.

The Macerich Company (MAC) History

You're looking for the foundational story of The Macerich Company, not just a list of properties. Honestly, understanding how they got from a New York City partnership to a multi-billion dollar Real Estate Investment Trust (REIT) is key to valuing their current strategy. The company's trajectory is a clear example of strategic focus on high-quality retail real estate, transforming from a small developer into a major force in the U.S. mall sector.

The Macerich Company's Founding Timeline

Year established

The company was established in 1964 as The MaceRich Real Estate Company.

Original location

The original location for the company's founding was New York City, though its current headquarters are in Santa Monica, California.

Founding team members

The company was co-founded by Mace Siegel, an experienced builder, and Richard Cohen, who provided the initial financial backing.

Initial capital/funding

While the exact dollar amount of the initial capital isn't public, Richard Cohen provided substantial initial funding, which allowed the first venture-a strip mall in Ames, Iowa-to become operational shortly after the company's founding.

The Macerich Company's Evolution Milestones

The Macerich Company's Transformative Moments

The company's evolution wasn't just about growth; it was about a relentless focus on asset quality and strategic simplification. The name itself is a portmanteau of the founders' first names, Mace and Richard, which is a nice, simple origin story.

The most recent transformative period centers on the 'Path Forward' plan, aimed at streamlining the business and reducing leverage. This isn't just cost-cutting; it's a strategic repositioning.

• High-Quality Focus: Early on, the company made a strategic shift to focus on owning and redeveloping high-quality, dominant retail properties in densely populated, affluent markets, which helps insulate them from broader retail downturns.
• Leverage Reduction: As of Q1 2025, the company has completed over $1.1 billion in disposition sales since the start of the Path Forward plan, actively working to reduce debt.
• Leasing Momentum: The aggressive leasing strategy is working, with 2.6 million square feet of leases signed in Q1 2025 alone, more than double the prior year's first quarter. This push is driving positive leasing spreads, with new deals showing a 22% increase in rent over the trailing 12 months.

The market recognized this focus, with the company's market capitalization sitting at approximately $4.41 billion as of July 1, 2025. The stock price, as of November 19, 2025, was $16.22, reflecting the ongoing volatility but also the potential for a rebound as the repositioning takes hold. If you want to dig deeper into the current shareholder base and why they are buying now, you should check out Exploring The Macerich Company (MAC) Investor Profile: Who's Buying and Why?

What this estimate hides, defintely, is the impact of interest rates on property valuations, but the operational metrics show real strength. The goal is to reduce leverage to the low to mid-six times range over the next few years. That's a clear, actionable target.

The Macerich Company (MAC) Ownership Structure

The Macerich Company (MAC) is a publicly traded Real Estate Investment Trust (REIT) on the New York Stock Exchange (NYSE), meaning its ownership is broadly distributed among institutional, insider, and individual investors.

This structure, typical for a REIT, means that while the public holds shares, the majority of the stock-and therefore the voting power-rests with large financial institutions like BlackRock and The Vanguard Group, which definitely influences strategic decisions.

The Macerich Company's Current Status

The Macerich Company has been a public entity since its Initial Public Offering (IPO) in March 1994 and trades under the ticker symbol MAC on the NYSE.

As a REIT, the company is required to distribute a significant portion of its taxable income to shareholders, which is why it's a core holding for many income-focused funds. The company's governance is driven by its Board of Directors and executive team, who must balance the demands of these major institutional shareholders with the company's long-term strategy, the 'Path Forward' plan, which was a key focus in 2025.

Understanding who owns The Macerich Company is the first step in analyzing its risk profile and potential for capital appreciation; for a deeper dive, you can check out Exploring The Macerich Company (MAC) Investor Profile: Who's Buying and Why?

The Macerich Company's Ownership Breakdown

As of the 2025 fiscal year data, institutional investors hold the overwhelming majority of The Macerich Company's common stock, reflecting a high-conviction holding among major asset managers. This concentration means that large block trades by a few firms can significantly impact the stock price.

Here's the quick math on the ownership structure, based on recent filings:

The Macerich Company's Leadership

The company is steered by a seasoned management team with significant experience in real estate and investment banking, a blend critical for navigating the current retail real estate market.

The average tenure for the management team is relatively short at about 1.7 years, which shows the recent shift and focus on bringing in new expertise to execute the company's strategic plan.

• Jackson Hsieh, President & CEO: Appointed in March 2024, Hsieh has a strong background in investment banking and previously led Spirit Realty Capital. His total yearly compensation was approximately $14.54 million for the 2025 fiscal year.
• Dan Swanstrom, Senior Executive Vice President, Chief Financial Officer and Treasurer: Swanstrom assumed the CFO role in November 2024, bringing deep experience from prior CFO roles at other REITs and a background at Morgan Stanley.
• Steven R. Hash, Independent Chairman: Hash provides independent oversight as the Chairman of the Board.

The leadership is focused on operational enhancements, including implementing a five-year operating platform for better forecasting and performance management.

The Macerich Company (MAC) Mission and Values

The Macerich Company's purpose extends beyond just collecting rent; it centers on cultivating vibrant, community-centric retail environments while simultaneously driving significant, long-term financial value for investors and partners.

As a seasoned analyst, I look at these statements as the cultural DNA that guides capital allocation. The focus on 'thriving retail centers' is a clear signal that they understand the need to evolve the mall experience, which is defintely the right play in a post-2020 retail world.

Given Company's Core Purpose

Macerich's core purpose is a dual mandate: social contribution through community gathering and financial discipline to deliver returns. It's a real estate investment trust (REIT) balancing physical space management with shareholder value creation.

Here's the quick math: their strategy to reduce net loss to $50.1 million in Q1 2025, a vast improvement from the prior year's $126.7 million loss, directly supports their mission's long-term value goal. That's the mission in action.

Official Mission Statement

The official mission statement is a clear, three-part directive that anchors their operational and investment decisions:

• Own and operate thriving retail centers that bring communities together.
• Create long-term value for shareholders, partners, and customers.

This statement is precise. It doesn't just say 'own malls'; it says 'thriving retail centers,' acknowledging that the asset class demands constant reinvention to maintain a strong portfolio occupancy, which was around 92.3% at the end of 2024.

Vision Statement

The vision statement maps out their aspiration for market leadership and adaptability, which is crucial in the volatile retail sector. It's about being the best, not just being big.

• Be the premier owner, operator, and developer of regional malls.
• Be recognized for creating dynamic and engaging environments.
• Meet the evolving needs of communities and retailers.

Their 'Path Forward' plan, which includes a target to reduce debt by $2 billion, is a strategic move directly supporting this vision of premier ownership and financial fortitude. You can dive into the financial implications of this in Breaking Down The Macerich Company (MAC) Financial Health: Key Insights for Investors.

Given Company's Core Values

Macerich officially identifies six core values that shape their internal culture and external stakeholder interactions. These are the non-financial metrics that often predict long-term success.

• Excellence: Strive for the highest standards and drive continuous innovation.
• Empowerment: Take ownership, make decisions, and challenge the status quo.
• Integrity: Be honest, transparent, and do what we say we will do.
• Relationships: Nurture internal and external connections through respect and collaboration.
• Optimism: Embrace a positive outlook and be resilient when facing challenges.
• Fun: Build camaraderie and create properties where lasting memories are made.

Given Company slogan/tagline

While Macerich doesn't use a single, short slogan in the traditional sense, their messaging focuses on the outcome of their mission: creating dynamic, high-value destinations.

• Focused on owning and operating thriving retail centers.
• Delivering the very best retail, can't-miss experiences, and fresh uses.

The operational reality is that they are projecting a $36 million increase in Net Operating Income (NOI) from redevelopment projects at key sites like Scottsdale Fashion Square, which is a concrete example of delivering on that promise of 'can't-miss experiences.'

The Macerich Company (MAC) How It Works

The Macerich Company operates as a Real Estate Investment Trust (REIT), meaning it primarily makes money by owning, managing, and leasing high-quality, dominant retail real estate-specifically Class A regional malls-to a diverse tenant base across affluent U.S. markets. The model is straightforward: acquire prime property, drive high tenant sales per square foot (which were $837 for space under 10,000 square feet for the trailing twelve months ended March 31, 2025), and collect rent and fees.

The Macerich Company's Product/Service Portfolio

The company's value proposition centers on providing premium physical and experiential retail destinations. They are not just landlords; they are asset managers and developers transforming traditional malls into mixed-use community hubs. This focus is what drives the leasing revenue, which hit $232.7 million in the second quarter of 2025.

The Macerich Company's Operational Framework

The Macerich Company's operational framework is built on a fully integrated, self-managed model, which means they handle everything from acquisition and financing to development and day-to-day property management. This full control helps them execute their strategy quickly. The current focus is the 'Path Forward' plan, a multi-year strategy to simplify the business and strengthen the balance sheet.

• Strategic Portfolio Management: Actively selling non-core assets to reduce debt, with over $1.1 billion in dispositions completed since the 'Path Forward' plan began. This is a defintely necessary step to focus capital on their best-performing centers.
• Intensive Leasing Strategy: Driving high occupancy, which stood at 93.4% as of September 30, 2025. New store leases signed in Q3 2025 are projected to generate approximately $99 million in gross revenue.
• Debt Reduction: A core objective is a $2 billion debt reduction, accomplished through asset sales and joint venture consolidation, which improves their financial flexibility.
• Operational Platform Upgrade: Implementing a new five-year operating platform to improve forecasting and performance management across the portfolio.

Here's the quick math on the debt strategy: they are selling lower-growth properties, like the sale of Wilton Mall for $25 million and SouthPark for $11 million in Q1 2025, to pay down debt and reinvest in their dominant assets.

The Macerich Company's Strategic Advantages

In the challenging retail real estate sector, Macerich's advantages stem from the quality and location of its assets, plus a strong commitment to environmental, social, and governance (ESG) factors. They focus on owning must-have destinations, not just any mall.

• Irreplaceable Asset Quality: Their portfolio is concentrated in high-barrier-to-entry, affluent U.S. markets, which insulates them somewhat from broader retail weakness. The high sales per square foot ($837) shows their centers are attracting consumers and driving tenant success.
• Sustainability Leadership: Macerich has achieved the #1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for ten consecutive years. This attracts major institutional investors and aligns with modern consumer and corporate values.
• Mixed-Use Transformation Expertise: Their ability to redevelop and densify properties-adding residential, hotel, and office components-future-proofs the centers against pure retail headwinds and diversifies their revenue base. You can read more about their core principles here: Mission Statement, Vision, & Core Values of The Macerich Company (MAC).
• Scale and Integration: As a fully integrated REIT, they control the entire value chain-from development to leasing-which allows for faster decision-making and better execution of their strategic plan.

The Macerich Company (MAC) How It Makes Money

The Macerich Company, a Real Estate Investment Trust (REIT), primarily generates revenue by leasing retail space in its portfolio of high-quality, regional shopping centers across the United States, collecting both fixed minimum rents and variable percentage rents from its tenants.

This revenue model is fundamentally about being a landlord for premier retail, dining, and entertainment destinations, plus recovering a significant portion of property operating costs from those tenants.

The Macerich Company's Revenue Breakdown

For a clear picture of where the cash comes from, we look at the core components of the revenue, using the detailed breakdown from the second quarter (Q2) of the 2025 fiscal year. The vast majority of the $249.79 million in Q2 2025 total revenue comes from leasing activities..

Minimum Rents, which are the fixed base rents, make up the lion's share, increasing by 17.4% year-over-year in Q2 2025.. Tenant Recoveries, essentially reimbursements from tenants for common area maintenance (CAM), property taxes, and insurance, are also a critical and growing stream, up 14.4% year-over-year..

• Percentage Rents, a smaller but high-growth stream tied to tenant sales performance, jumped 43.8% year-over-year in Q2 2025, showing strong retailer sales..
• Management Companies revenues, which come from managing properties for third parties or joint ventures, are a minor stream and saw a 12.4% decrease year-over-year in Q2 2025..

Business Economics

The core economics of The Macerich Company revolve around maximizing net operating income (NOI) through strategic leasing and property redevelopment. The company focuses on Class A regional malls, which command higher rents and attract more productive tenants.

This is a real estate game, but the value is in the retail experience.

• Lease Spreads: The company continues to demonstrate pricing power. For the trailing 12 months ended March 31, 2025, base rent re-leasing spreads were 10.9% higher than the expiring base rent, marking the 14th consecutive quarter of positive spreads..
• Occupancy: Portfolio occupancy stood at 93.4% as of September 30, 2025, which is a key indicator of demand for their space.. A higher occupancy rate directly translates to higher minimum rent revenue.
• Strategic Redevelopment: Macerich is actively transforming its assets into mixed-use spaces, integrating dining, entertainment, and non-retail uses. This strategy is projected to add approximately $36 million to Net Operating Income (NOI) from projects like Scottsdale Fashion Square..

The Macerich Company's Financial Performance

The company's financial health is best evaluated using Funds From Operations (FFO) and Net Operating Income (NOI), the standard metrics for REITs, as of the Q3 2025 results released in November 2025. This shows the operational engine is running well, even as the company manages its debt.

• Funds From Operations (FFO): FFO per share for Q3 2025 was $0.35, an increase from the previous year's FFO of $0.33 per share.. For the first nine months of 2025 (9M 2025), FFO was $253.5 million..
• NOI Growth: Same-center NOI, excluding lease termination income, for the 'Go-Forward Portfolio' centers increased 1.7% in Q3 2025 compared to the same period in 2024.. This demonstrates effective property management and leasing.
• Liquidity and Debt Reduction: As of Q3 2025, Macerich had approximately $1 billion in liquidity.. The company's 'Path Forward' plan is actively reducing debt, with over $1.1 billion in dispositions completed as of Q1 2025 against a $2 billion target..

To dive deeper into the sustainability of this model, you should read Breaking Down The Macerich Company (MAC) Financial Health: Key Insights for Investors, which outlines the leverage and capital structure. The focus on debt reduction to the low-to-mid 6x Net Debt to EBITDA range is a defintely key action for the next few years..

The Macerich Company (MAC) Market Position & Future Outlook

The Macerich Company (MAC) is currently in a critical transition, aggressively executing its 'Path Forward' plan to de-lever its balance sheet while simultaneously transforming its Class A mall portfolio into mixed-use destinations. The company's future outlook hinges on successfully reducing its substantial debt load-a target of $2 billion-while capitalizing on its premium locations to drive higher-margin redevelopment and leasing spreads.

You're seeing a mall operator acting like a developer now, which is the only way to win. They have to change the asset class.

Competitive Landscape

Macerich operates in the highly competitive retail Real Estate Investment Trust (REIT) sector, dominated by a few giants. To be defintely clear, Macerich is a smaller player, focusing on quality over sheer quantity, but this means its market share is dwarfed by the industry leader. Here's the quick math on market share, using the market capitalization (market cap) of the three largest mall/retail REITs as a proxy for industry dominance as of November 2025.

Opportunities & Challenges

The core opportunity for Macerich lies in its portfolio quality, but the main challenge is its financial structure. The 'Path Forward' is a clear action plan to address the debt, but the company must navigate a tough macroeconomic environment while executing complex, capital-intensive redevelopment projects.

Industry Position

Macerich is positioned as a high-quality, mid-cap regional mall REIT, distinct from the dominant national leader, Simon Property Group. Its portfolio occupancy rate stood at a healthy 93.4% as of Q3 2025, which is a strong operational metric in the current retail environment.

The company's strategy is a focused bet on the enduring value of prime real estate in densely populated, affluent U.S. markets, such as California and the Northeast corridor. This is a deliberate choice to compete on asset quality and location, not scale.

• Asset Quality: Macerich owns Class A malls, which consistently outperform lower-tier properties in terms of sales per square foot.
• Financial Metrics: The Q3 2025 Funds from Operations (FFO) of $0.35 per share (diluted) reflects the ongoing operational improvements, but the reported net loss of $87.4 million underscores the financial restructuring costs still at play.
• Strategic Focus: The push into mixed-use is essential for long-term relevance, transforming single-use retail centers into diversified, 24/7 neighborhood assets. This is the future of the mall.

For a deeper dive into who is backing this strategy, you should be Exploring The Macerich Company (MAC) Investor Profile: Who's Buying and Why?