The Macerich Company (MAC) Cash Flow Statement

The reported figures suggest AFFO has not consistently covered distributions over the last several quarters, with the latest quarter showing a shortfall that may indicate the payout is being funded from balance sheet resources or external capital. Investors should monitor whether the 2026Q3 gap reflects timing effects or a sustained pressure on distributable cash, as the 2025Q3 ratio of 14.51 appears to be an anomalous outlier that warrants further verification.

The large gap between FFO and net income in the most recent quarter suggests that depreciation and other non-cash charges are substantially depressing reported earnings, consistent with the prior analysis of FFO as the more relevant earnings lens. Because the conversion ratio flips sign across quarters, it should be read directionally rather than as a stable quality measure.

The quarterly CapEx line alternates between inflows and outflows, which suggests that disposition or joint-venture activity may be driving reported free cash flow more than core operations. Given that distributions have at times exceeded AFFO, investors should monitor whether the company relies on asset sales or new borrowing to bridge the gap between operating cash and dividend obligations.