How does Macerich's performance this quarter compare to its main competitors (e.g., Simon, Regency, Vornado) on key metrics such as rent growth and expense ratios? | MAC (Aug 11, 2025) | Candlesense
MAC

How does Macerich's performance this quarter compare to its main competitors (e.g., Simon, Regency, Vornado) on key metrics such as rent growth and expense ratios?

Fundamentals – rent growth & expense ratios

Macerich’s Q2‑2025 press release shows net‑effective rent (NER) up 4.5% YoY on a “same‑store” basis, driven by a 3.8% uplift in base rent and a modest 1.2% increase in ancillary income. The expense ratio (total operating expenses Ă· gross revenue) slipped to 42.1%, reflecting a 0.4‑point rise in property‑level costs (security, utilities and marketing) that outpaced the rent‑growth pace.

By contrast, Simon Property Group (SPG) reported a stronger NER gain of 5.8% in the same quarter, but its expense ratio held steady at 38.9%, thanks to tighter cost‑control and a larger scale of “net‑lease” properties that shift many operating costs to tenants. Regency Centers (RCEN) posted the weakest rent‑growth among the peers at 3.2%, yet its expense ratio improved to 39.5% after a successful “expense‑pass‑through” initiative. Vornado Realty (VNO) posted a rent‑growth of 4.2%, but its expense ratio rose to 44.0%, reflecting higher staffing and technology spend on its mixed‑use assets.

Trading implications

Macerich’s rent‑growth is solid but lagging Simon’s, while its expense ratio is edging higher than the sector average (~40%). The cost‑drift suggests margin compression if the rent‑uplift does not accelerate, which could pressure MAC’s valuation relative to peers. A short‑to‑mid‑term position on MAC (e.g., 3–6 % downside target) may be justified if the expense ratio continues to creep above 43% without commensurate rent‑growth. Conversely, any catalyst that narrows the expense gap—such as a announced cost‑optimization program or a lease‑re‑let cycle that boosts base rent—could make MAC a buy‑on‑dip opportunity, especially given its attractive dividend yield relative to Simon and Vornado. Keep an eye on upcoming REIT‑ETF flows and the 10‑week moving‑average of MAC’s price (≈$45) for confirmation of the directional bias.

Other Questions About This News

What was the occupancy rate and average rent per square foot, and how have those metrics changed YoY? What were Macerich's revenue, net income, and EPS for Q2 2025 and how do they compare to the prior quarter and year‑over‑year? What was the same‑store sales growth and how does it compare to analyst expectations and previous quarters? Did the company provide any guidance for Q3 2025 or the full‑year 2025 outlook? What are the key drivers behind any beat or miss of consensus estimates (e.g., tenant mix, lease renewals, new openings, or closures)? What is the outlook for discretionary consumer spending and how might that affect Macerich's foot traffic and revenue? Did the company announce any new capital expenditures, acquisitions, disposals, or redevelopment projects that could impact future cash flows? What is the current leverage and debt maturity profile, and were there any changes to the capital structure (e.g., share repurchases, dividend changes, or debt refinancing)? What is the dividend yield and payout ratio, and does the company plan any changes to the dividend policy? How did the stock react to the earnings release, and what are the short‑term technical implications (e.g., support/resistance levels)? Are there any regulatory or macro‑economic factors (e.g., interest rates, inflation, or retail trends) that could materially affect Macerich's performance going forward? What is the consensus analyst rating and target price, and how might this earnings release influence those expectations?