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A Breakdown of Macerich’s Retail Mall Business

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Presence in lucrative markets

As noted in the first part of this series, Macerich (MAC) is involved in the acquisition, ownership, development, redevelopment, management, and leasing of regional and community, or “power,” shopping centers located throughout the United States. Macerich owns regional shopping centers in some of the country’s most attractive, densely populated markets, with a significant presence in the Pacific Rim, Arizona, Chicago, and the Metro New York to Washington D.C. corridor.

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Portfolio details

As of the end of fiscal 2014, Macerich either owned or had an ownership interest in 52 regional shopping centers and eight community shopping centers. These 60 centers, which include any related office space, consist of approximately 55 million square feet of GLA (gross leasable area) and are referred to as “centers.”

Excluding the Great Northern Mall, which has been transitioned to its loan servicer, the remaining 59 centers average approximately 921,000 square feet of GLA and range in size from 2.7 million square feet of GLA at Tysons Corner Center to 185,000 square feet of GLA at Boulevard Shops. As of 2014, these centers primarily included 194 anchors totaling approximately 27.6 million square feet of GLA and approximately 6,000 mall stores and freestanding stores, totaling 24.9 million square feet of GLA.

Property management services

On a selective basis, Macerich provides property management and leasing services for third parties. The company currently manages three regional shopping centers and three community centers for third party owners on a fee basis. Other REITs in the retail segment, such as Simon Property Group (SPG), General Growth Properties (GGP), and CBL & Associates Properties (CBL), also offer property management services to their clients.

The SPDR DJ Wilshire Global Real Estate ETF (RWO) invests 1.08% of its portfolio in Macerich.

In the next part of this series, we’ll discuss Macerich’s top tenants.

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