The Macerich Company (MAC): BCG Matrix [Dec-2025 Updated]

You're looking at The Macerich Company's (MAC) current state, and honestly, it's a classic high-stakes real estate pivot centered on their 'Path Forward' plan to build luxury districts and slash debt. We've mapped their portfolio using the four quadrants of the BCG Matrix, and the picture is sharp: you have core centers delivering rock-solid sales-think $905 per square foot in Q3 2025-acting as the reliable Cash Cows. But, the big question is whether the capital poured into Stars like Tysons Corner Center's redevelopment can outpace the immediate threat from maturing debt hitting $633.5 million this year, which lands squarely in the Question Mark category. Let's break down where Macerich is betting big for growth and what underperforming assets they're selling off to stabilize the balance sheet.

Background of The Macerich Company (MAC)

You're looking at The Macerich Company (MAC), which is a fully integrated, self-managed, self-administered real estate investment trust (REIT). Honestly, Macerich has built its reputation by focusing on owning, operating, and developing high-quality retail and mixed-use properties situated in densely populated and dynamic urban and suburban U.S. markets. The company started back in 1994 and keeps its corporate office in Santa Monica, California.

The portfolio Macerich manages is concentrated in key regions: California, the Pacific Northwest, the Phoenix/Scottsdale area, and that busy stretch from Metro New York down to Washington, D.C. As of the third quarter of 2025, Macerich currently owns interests in 38 retail centers, which amounts to about 39 million square feet of real estate. They really focus on what you'd call Class A shopping centers-the prime spots that attract top-tier tenants.

Operationally, the performance of these centers is key to understanding Macerich. For the trailing twelve months ending in June 2025, the portfolio averaged $849 in sales per square foot. By the end of the third quarter of 2025, overall portfolio occupancy stood at 93.4%, though their 'go-forward' portfolio-the core, higher-performing assets-was even better at 94.3%. That leasing engine is definitely turning over; they signed 5.4 million square feet of new and renewal leases year-to-date in 2025, marking an 86% increase compared to the same period in 2024.

Financially, looking at the most recent data, for the third quarter of 2025, Macerich reported Funds From Operations (FFO), adjusted for certain items, came in around $0.35 per share. Their revenue for that quarter hit $253.26 million, which was a 15.0% jump year-over-year. Keep in mind, the trailing twelve-month revenue as of September 30, 2025, was $1.03B. They are also known for their commitment to ESG, having achieved a #1 GRESB ranking for the North American retail sector for ten straight years, running through 2024.

Right now, the management team is heavily focused on executing what they call the 'Path Forward Plan,' which is a roadmap running through 2028 designed to simplify the business, improve operations, and crucially, reduce leverage. A tangible recent move supporting this was the acquisition of Crabtree Valley Mall in June 2025. Still, you should note that one asset, Santa Monica Place, is currently in loan default and operating under a court-appointed receiver, which management expects will lead to a disposition.

The Macerich Company (MAC) - BCG Matrix: Stars

The business units and initiatives categorized as Stars for The Macerich Company (MAC) are those demonstrating high market share within growing segments and requiring significant investment to maintain or grow that leadership position. These represent core growth drivers for the portfolio as of 2025.

Key indicators of Star performance and investment focus include major property transformations and strategic leasing momentum.

Tysons Corner Center is undergoing a significant capital investment to solidify its leadership in the Greater Washington, D.C. market. The total investment for the redevelopment of the mall's west end is set at $100 million, which is being deployed to create a walkable, upscale retail, dining, and entertainment district.

• Macerich's direct investment for common area enhancements is $45 million.
• Retailer investments for store upgrades and new designs are contributing $66 million to the project.

Scottsdale Fashion Square continues to receive investment to enhance its status as a premier luxury destination in the Southwest. While previous luxury expansions occurred in 2018 and 2022, the current focus is on elevating the central gathering space, the Palm Court, with construction slated to begin in January 2026. Furthermore, The Macerich Company has plans for a 7-acre parcel north of the mall to incorporate high-end residential units, class A office space, and hospitality uses.

The leasing pipeline is a critical measure of future growth, reflecting high demand for The Macerich Company's high-quality assets. As of the third quarter of 2025, the Signed Not Open (SNO) pipeline, representing incremental revenue from new store leases, reached approximately $99 million at their share.

The Macerich Company is on pace to meet or exceed its year-end 2025 target for the SNO pipeline of $100 million, with a projected total of $140 million when including the impact of the Crabtree Mall leases.

The acquisition of Crabtree Mall in Raleigh, North Carolina, represents an entry into the high-growth Southeastern U.S. market. This market-dominant, Class A center was acquired for $290 million.

The Macerich Company plans to invest approximately $60 million in new redevelopment and leasing capital at Crabtree Mall between 2025 and 2028 to maximize performance.

Leasing velocity remains strong, with The Macerich Company reporting that year-to-date signed leases in 2025 reached 5.4 million square feet, an 86% increase compared to the same period in 2024.

Portfolio occupancy for Go-Forward Portfolio Centers stood at 92.8% as of June 30, 2025.

The Macerich Company (MAC) - BCG Matrix: Cash Cows

Cash Cows represent the established, high-market-share segments of The Macerich Company (MAC) portfolio operating in mature, yet resilient, retail real estate markets. These assets are the primary generators of distributable cash flow, requiring maintenance capital rather than aggressive growth investment.

The productivity of the existing tenant base within the core portfolio demonstrates this strong cash-generating ability. For spaces under 10,000 square feet, tenant sales reached $905 per square foot for the trailing twelve months ending June 30, 2025. This high productivity underpins the stable financial performance expected from these mature assets. The company's focus on maintaining this base is evident in the consistent leasing success.

Leasing strength continues to be a hallmark, with base rent re-leasing spreads showing positive momentum. For the trailing twelve months ending June 30, 2025, these spreads increased by 10.5% over expiring base rents, marking the fifteenth consecutive quarter of positive growth. This sustained pricing power in renewals and new leases is crucial for maintaining high profit margins in this segment.

The stability of the core asset base is reflected in its occupancy levels. The core portfolio's stable occupancy rate stood at 92.6% as of March 31, 2025. This level of occupancy in a mature market, coupled with strong leasing spreads, confirms the high market share and cash generation characteristics of these Cash Cow properties.

The Macerich Company (MAC) reinforces this segment through strategic capital allocation, focusing on supporting infrastructure and selective, high-quality acquisitions that fit the dominant profile. The portfolio is concentrated in dominant, high-productivity Class A centers located in affluent, densely populated markets, such as the Metro New York to Washington, D.C. corridor and California. An example of this strategy is the June 2025 acquisition of Crabtree Mall, a market-dominant Class A center in the Raleigh-Durham MSA, for approximately $290 million, which is expected to be accretive to the Path Forward Plan's 2028 target FFO range.

Here are key metrics illustrating the performance of these established assets:

• Go-forward portfolio tenant sales averaging $905 per square foot for the trailing twelve months ended June 30, 2025 (for spaces less than 10,000 square feet).
• Core portfolio's stable occupancy rate of 92.6% as of March 31, 2025.
• Consistent leasing strength with a 10.5% increase in re-leasing spreads (trailing twelve months to June 30, 2025).
• Dominant, high-productivity Class A centers in affluent, densely populated markets, evidenced by the acquisition of Crabtree Mall for approximately $290 million in June 2025.

The financial performance metrics associated with these mature assets are summarized below:

The Macerich Company (MAC) continues to 'milk' these gains passively, using the resulting cash flow to fund other strategic needs. The company has achieved a number one GRESB ranking for the North American retail sector for ten consecutive years (2015-2024), indicating strong governance and operational focus supporting these core assets.

The Macerich Company (MAC) - BCG Matrix: Dogs

Dogs, in the Boston Consulting Group Matrix, represent business units or assets operating in low-growth markets with low relative market share. The strategy here is clear: avoid, minimize, and divest, as expensive turn-around plans rarely yield positive results. The Macerich Company has been actively pruning its portfolio, treating certain properties as prime candidates for divestiture to simplify the business and reduce leverage, which is a core tenet of the Path Forward Plan.

This approach is evidenced by significant non-core asset sales and dispositions totaling approximately $1.2 billion completed through September 2025, directly aimed at improving the balance sheet. Santa Monica Place stands out as a clear example of an asset that has moved into this category, leading to a strategic exit. Macerich defaulted on the $300 million loan backing this property in April 2024, ultimately surrendering it to the lender. The property's broker valuation had fallen to approximately $255 million by late 2024, well below the debt amount.

The execution of this divestiture strategy involved shedding underperforming assets. For instance, the sale of SouthPark closed on April 30, 2025, for only $11 million, with the asset being unencumbered at the time of sale. This action aligns with the broader strategy to defintely walk away from certain non-core mortgage debts to simplify the portfolio, a tactic explicitly mentioned as part of the Path Forward Plan to reduce leverage.

The following table details some of the recent dispositions consistent with shedding lower-performing or non-core assets, which are the typical candidates for the Dogs quadrant:

The company's stated goal under the Path Forward Plan is to reduce debt by $2 billion, and these targeted asset sales, including the surrender of properties like Santa Monica Place, are the mechanism to achieve that deleveraging. The Macerich Company is focusing on concentrating capital in its Class A regional malls, which are the Stars and Cash Cows, by systematically exiting these lower-tier or problematic assets.

The Macerich Company (MAC) - BCG Matrix: Question Marks

You're looking at the areas of The Macerich Company (MAC) that are burning cash now but hold the promise of future dominance-the classic Question Marks. These are assets in high-growth environments, like experiential retail, but they haven't captured significant market share yet, meaning they need heavy investment to move into the Star quadrant.

The immediate financial pressure points here are significant, demanding clear decisions on investment versus divestiture. Consider the near-term debt wall; The Macerich Company has only one remaining maturing loan in 2025, specifically for approximately \$200 million on the South Plains property, which management expects will be in technical default pending an extension negotiation. This is a clear cash drain risk if not resolved quickly. Also, the company is proactively addressing remaining 2026 debt maturities through sales, refinancings, or modifications. Still, this refinancing risk clouds the narrative.

These capital-intensive projects are the definition of a Question Mark-high outlay for uncertain future returns. Take the Green Acres redevelopment in Valley Stream, New York. This project involves tearing down or repurposing former department stores to open sightlines for more top brands, encompassing up to 400,000 square feet of new retail, dining, and entertainment uses. Groundbreaking started in May 2025, but the anchor ShopRite is not expected to open until fall 2027, with most other new tenants opening by Black Friday 2026, confirming a delayed return on this major capital deployment. The estimated cost for this transformation is between \$130 million and \$150 million.

Operationally, the third quarter of 2025 showed the strain of these investments and market friction. The Macerich Company reported a GAAP net loss of \$87.36 million for Q3 2025, despite revenue improving 15.0% year-over-year to \$253.26 million. This net loss, which included a \$(72.6) million net loss on the sale/write-down line, highlights the high operational risk inherent in these nascent or transforming business units. You see the growth in leasing momentum-1.5 million square feet signed in Q3-but the bottom line reflects the cash consumption required to secure that future leasing.

The overall balance sheet structure demands attention, as high leverage requires these Question Marks to perform to support the narrative. As of the most recently reported fiscal quarter ending 2025-09-30, The Macerich Company reported Long-Term Debt of \$5.08 billion. Management reported the Net Debt/Adjusted EBITDA ratio improved to 7.76x, which is still high leverage, though they are working toward the low to mid 6x range. The company is executing on its disposition plan, with asset sales approaching \$1.2 billion toward a \$2 billion target by the end of 2026, which is the primary intended mechanism to reduce this leverage and fund necessary investments in these Question Marks.

Here's a quick look at the financial context surrounding these high-growth, high-risk areas as of late 2025:

The strategy for these assets is clear: either invest heavily to quickly capture market share and convert them into Stars, or sell them to stem the cash burn. The Macerich Company is using asset sales, targeting \$2 billion by end-2026, to fund the deleveraging and provide the necessary capital to support the growth prospects of projects like Green Acres. Finance: draft 13-week cash view by Friday incorporating the South Plains maturity negotiation status.