CORRECTION - Macerich Announces Initial Progress in its Path Forward Strategic Plan
May 16 2024 - 10:08AM
In a release issued under the same headline earlier today by
Macerich (NYSE: MAC), please note in the third paragraph, the
amount the transaction is expected to generate has been corrected
to $110 million of net proceeds. The corrected release follows:
Macerich (NYSE: MAC), one of the nation’s leading
owners, operators and developers of major retail properties in top
markets, today announced its purchase of the remaining 40% share of
both Arrowhead Towne Center (Metro Phoenix) and South Plains Mall
(Lubbock, Texas) for $36.5 million plus the debt, which for
Arrowhead is a 7.2% cap rate, from its joint venture partner, a
global institutional investor.
This transaction, which closed on May 14, gives Macerich full
ownership of both properties.
Additionally, Macerich has executed a contract for the sale of a
retail asset in a major market. The transaction is expected to
generate approximately $110 million of net proceeds based on an
expected cap rate of 6.5% and is anticipated to close this
summer.
“We are pleased to achieve full ownership of these retail assets
via the purchase of the remaining 40% share from our JV partner,”
said Jack Hsieh, President and Chief Executive Officer, Macerich.
“Given the pending, massive microchip investment within the
Arrowhead Towne Center market, we believe there are significant
positive impacts to our trade area that we will soon be able to
capitalize upon. With these transactions, Macerich is acting on its
strategic plan that includes disposing of certain assets to reduce
our leverage and simplifying our business through selectively
consolidating certain JV interests over time.”
Located in a high-growth area of Metro Phoenix, the 1.1
million-square-foot, super-regional Arrowhead Towne Center is a
market-dominant, top 10 NOI center for MAC and a top 10 sales PSF
center at well over $1,100 PSF – second only to Scottsdale Fashion
Square among Macerich’s Phoenix market assets. Currently 100%
leased, Arrowhead Towne Center is anchored by Dillard’s, Macy’s,
JCPenney, DICK’s Sporting Goods, AMC Theatres and a brand-new
Round1 Spo-Cha.
The buoyant trade area consists of 1.6 million people and is
home to the new Taiwan Semiconductor Manufacturing Company site
consisting of three fabs, opening in phases beginning in 2025 and
bringing TSMC’s total investment in Arizona to more than $65
billion. The three fabs are expected to create 6,000 direct
high-tech, high-wage jobs, more than 20,000 accumulated unique
construction jobs, and tens of thousands of indirect supplier and
consumer jobs.
Arrowhead Towne Center’s trade area also boasts three top-ranked
universities and 13,000 K-12 students. More than one-third of
Phoenix Metro residents live in this area, and over 43% of the
county's growth over the next 25 years will take place here.
South Plains Mall is a 1.1 million square foot super-regional
shopping center in Lubbock, Texas, home to Texas Tech University
and its $4.3 billion annual economic impact. The vast trade area
covers more than 40,000 square miles and 35 counties. Lubbock’s
population is growing at 6% annually, double the national average.
Longtime anchor Dillard’s is currently investing more than $40
million in a new flagship store set to open in Q4 2024 on the site
of the former Sears parcel to consolidate its two existing
locations.
Upcoming Investor Outreach
Macerich is scheduled to participate in the following
events:
- ICSC Las Vegas in Las Vegas, Nevada, May 19-20, 2024
- Nareit’s REITweek: 2024 Investor Conference will be held at the
New York Hilton Midtown in New York City from June 4 to 5, 2024.
The conference will include a company presentation on June 4, 2024,
at 11:45 a.m. Eastern Time. Additional details about the
presentation, including a live audio webcast, will be available to
the public on the Investor Relations
website, investing.macerich.com.
About Macerich
Macerich is a fully integrated, self-managed and
self-administered real estate investment trust (REIT). As a
leading owner, operator and developer of high-quality retail real
estate in densely populated and attractive U.S. markets, Macerich’s
portfolio is concentrated in California, the Pacific Northwest,
Phoenix/Scottsdale, and the Metro New York to Washington, D.C.
corridor. Developing and managing properties that serve as
community cornerstones, Macerich currently owns 47 million square
feet of real estate consisting primarily of interests
in 43 retail centers. Macerich is firmly dedicated to
advancing environmental goals, social good and sound corporate
governance. A recognized leader in sustainability, Macerich has
achieved a #1 Global Real Estate Sustainability Benchmark
(GRESB) ranking for the North American retail sector
for nine consecutive years (2015-2023). For more information,
please visit www.Macerich.com.
Macerich uses, and intends to continue to use, its Investor
Relations website, which can be found
at investing.macerich.com, as a means of disclosing material
nonpublic information and for complying with its disclosure
obligations under Regulation FD. Additional information about
Macerich can be found through social media platforms such as
LinkedIn. Reconciliations of non-GAAP financial measures, including
NOI and FFO, to the most directly comparable GAAP measures are
included in the earnings release and supplemental filed on Form 8-K
with the SEC, which are posted on the Investor Relations website
at investing.macerich.com.
MAC-ISOURCE: MacerichMEDIA CONTACT: Karen Maurer, Macerich,
602-708-6311, Website: https://www.macerich.com/
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