Macerich Charts New Direction with “Path-Forward” Plan

Macerich published its detailed Path-Forward plan to simplify the business, improve operational performance and reduce leverage under the leadership of new president and CEO Jackson Hsieh. The publication follows the Santa Monica-based retail REIT’s acquisition of the remaining 40% interest in Arrowhead Towne Center (metro Phoenix) and South Plains Mall (Lubbock, TX) for $36.5 million earlier this month.

The company said its Path-Forward plan is designed to:

• Deleverage the capital structure to a low-to-mid 6x range over the next three to four years.
• Invest in and fortify key assets in the portfolio.
• Proactively consolidate selected joint venture assets that are core to the overall strategy.
• Deliver clean FFO/share launch point of ~$1.80/share over the next three to four years.
• Improve various internal processes that are being evaluated and realigned to achieve outstanding operational results.
• Position the company to take an offensive stance on acquisitions, reinvestment and selected development.

“I am excited to chart a new direction for Macerich and lead the company to elevated performance as we launch a simple, executable plan that forwards our mission to add long-term value for shareholders, partners, and customers,” said Hsieh. “I am very optimistic and confident about our company’s future as we undertake this well-crafted path forward.”

Pictured: Macerich’s Tysons Corner Center in McLean, VA.