The market barely flinched at Macerich today. The stock slipped about 1% to US$25.39, a muted response for a retail REIT that just put a very specific tension on display between cash flow strength and accounting losses.

The headline is simple. Second quarter funds from operations, the key profit yardstick for REITs, landed at about US$0.35 per share, while go forward portfolio net operating income grew in the low single digits. Yet Macerich again reported a quarterly net loss. That mix is what investors are really reacting to, not the modest one day price move.

Is Macerich a rare bargain with solid FFO, or is the recurring net loss a warning sign that the market is pricing in correctly? See how the stock screens on our valuation analysis for Macerich

Q2 2026 Earnings Summary

• Revenue, Q2 2026 vs. Q2 2025: US$249.7 million vs. US$249.3 million (broadly stable year on year)
• Net Income, Q2 2026 vs. Q2 2025: loss of US$27.1 million vs. loss of US$41.1 million (loss narrowed)
• Basic EPS, Q2 2026 vs. Q2 2025: loss of US$0.10 per share vs. loss of US$0.16 per share (per share loss narrowed)
• Funds From Operations (FFO), Q2 2026 vs. Q2 2025: US$100 million (approximate, based on FFO per share) vs. US$87.3 million (based on FFO per share) (FFO improved)

Prefer clean charts instead of sifting through pages of earnings tables and footnotes? See Macerich's valuation picture at a glance with everything laid out in one visual dashboard in our company report for Macerich.

Macerich bull case leans on execution milestones

Bulls argue Macerich is turning leasing momentum and the Path Forward 3.0 plan into steady cash flow and lower risk. Q2 gives some backing. Funds from operations of about US$0.35 per share sit alongside go forward portfolio NOI growth of 3.8% in the quarter and 2.5% year to date. That supports the idea that higher quality tenants and experiential uses are lifting the core portfolio. Leased occupancy reached 94% companywide and 95.5% in the go forward portfolio, both 60 basis points higher than the prior quarter, with 1.3 million square feet signed and the leasing program 88% complete versus an 85% midyear goal. Net debt to adjusted EBITDA eased to 7.3x and would be below 7x if unsettled forward equity is included. That aligns with management’s target to create room for funded growth.

Bear case focuses on losses, leverage and retail risk

The bear story is that recurring net losses, high leverage and mall exposure will cap Macerich despite better leasing headlines. Q2 does not dismiss those worries. The company still reported a quarterly net loss of US$27.1 million, even though the loss narrowed from US$41.1 million a year ago. That keeps the gap between healthy FFO and accounting profitability very visible. Net debt to adjusted EBITDA at 7.3x, even after equity raises and disposals of roughly US$1.3b, remains elevated for a retail REIT and relies on further asset sales to approach the 6x goal. One US$76 million loan at 29th Street is in default and under lender discussions, which underlines refinancing and asset quality risk. The modest 0.9% share price decline on the day suggests no sharp repricing, but it does not refute concerns about structural retail and leverage pressure.

Access the Macerich earnings playbook the market is quietly debating. The surface looks calm at US$25.39 after a modest 0.9% move, yet the models behind the multi year path raise a sharper question about where the consensus breaks on FFO, NOI and leverage. Reveal what the street is secretly modeling for the next FY and beyond in the analyst estimates for Macerich

Stay Ahead Of Your Next Move

If the mix of solid FFO and recurring net losses at Macerich has your attention, register for free with Simply Wall St and add the stock to a Watchlist to track share price against fair value and watch how the story develops. When you decide to buy or sell, use the Portfolio Command Center to keep your holdings organized and get only the most important alerts on fundamentals, risks and valuation changes. For a longer view, tap into the collective insight of other investors through the Community and see how different theses stack up against your own. That way you can spot potential catalysts or warning signals early and stay ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.