Macerich Reports High Same-Store NOI Growth and Low Tenant Occupancy Costs in Q1

First-quarter results for no-moat Macerich were slightly ahead of our expectations, though we didn’t see anything in the quarter that would materially change our $28.50 fair value estimate. Occupancy did fall 20 basis points sequentially to 91.3%, though occupancy usually falls in the first quarter and the decline wasn’t as large as our estimate of a 50-basis-point decline. Re-leasing spreads remain low but positive at 1.3%, in line with our estimate of a 1.2% spread of new rents over prior rent levels. Same-store net operating income grew 30.2% year over year in the first quarter, slightly better than our estimate of 27.2% growth. Macerich reported funds from operations of $0.50 per share in the first quarter, 12.4% higher than the $0.45 figure the company reported in the first quarter of 2021.