After The Macerich Co.’s Q2 numbers were released, the REIT’s CEO, Arthur Coppola, said that during the quarter, the portfolio continued to perform well. He pointed out that they achieved good releasing spreads, strong tenant sales growth and quarter over quarter occupancy gains.
Coppola added that “The leasing environment continues to improve including a significant number of deals with legacy retailers as well as with digitally native retailers. We continue to be encouraged by digitally native retailers’ growing demand for great real estate locations.”
Results of operations for the quarter ended June 30, 2018, which included net income attributable to the company of $7.8 million or $.05 per share-diluted for the quarter ended June 30, 2018 compared to net income attributable to the company for the quarter ended June 30, 2017 of $26.6 million or $.19 per share-diluted.
For the second quarter, 2018, funds from operations diluted was $125.7 million or $.83 per share-diluted compared to $148.6 million or $.98 per share-diluted for the quarter ended June 30, 2017. Excluding $.13 per share for costs related to activism, FFO per share for the quarter ended June 30, 2018 was $.96.
Mall tenant annual sales per square foot for the portfolio increased by 7.1% to $692 for the year ended June 30, 2018 compared to $646 for the year ended June 30, 2017. The re-leasing spreads for the year ended June 30, 2018 were up 12.3%. Mall portfolio occupancy was 94.3% at June 30, 2018 compared to 94.0% at March 31, 2018 and 94.4% at June 30, 2017. Average rent per square foot increased to $58.84, up 4.0% from $56.60 at June 30, 2017.
Macerich currently owns 52 million square feet of real estate consisting primarily of interests in 48 regional shopping centers and specializes in successful retail properties in many of the country’s most attractive, densely populated markets with significant presence in the Pacific Rim, Arizona, Chicago, and the New York Metro area to Washington DC corridor.