The Macerich Company (MAC) Income Statement

Revenue growth of 2.7% year-over-year in the latest quarter, following double-digit gains through 2025, indicates that re-leasing and occupancy improvements are contributing to the top line. However, the trajectory appears to be partly offset by volatile NOI, which swung from $171.8M in 2026Q2 to negative $42.8M in 2026Q1, suggesting that the reported growth may be concentrated in periods with cleaner property-level accounting. Investors should monitor whether sequential NOI stabilizes near the 67-69% margin range seen in the most recent two quarters.

The gap between FFO of $71.3M and net income of negative $16.7M is consistent with the heavy depreciation and non-cash charges typical of mall owners, so FFO better reflects operating earnings power. The sequential FFO per share path of $0.18, $0.24, and $0.25 across the last three quarters suggests gradual improvement in recurring cash earnings. Dividend safety should be assessed against AFFO, which was negative $65.5M in the latest quarter, a figure that warrants further investigation into capital spending and leasing costs before concluding on payout coverage.

The jump in NOI margin to the high sixties suggests improved property-level cost control or favorable reimbursement timing, though the magnitude relative to prior years warrants skepticism until consistent. The negative NOI reported in 2026Q1 and 2025Q4 may indicate large one-time charges, impairments, or classification effects rather than operating deterioration, but the data alone does not establish the cause. Investors should treat the recent margin expansion as provisional until several consecutive quarters confirm it.