Macerich Targets 9% to 11% Yield on Mall Deal Due by Year-End

Macerich expects to close an off-market mall acquisition by year-end 2026, with a projected stabilized yield of 9% to 11%, President and CEO Jackson Hsieh said Nov. 4. The yield is a projection for the property once stabilized, not a reported current return.

The deal remains under contract and subject to customary closing conditions. Macerich has not identified the property or disclosed its price. Hsieh said the company would not discuss the transaction further before it closes.

Macerich plans to fund the purchase entirely with equity, using part of $372 million in unsettled forward equity. That figure is the equity pool cited for funding, not the acquisition price. The company has not said how much of the pool it plans to use for the deal.

Hsieh expects the acquisition to add to funds from operations (FFO) per share in both 2027 and 2028 and reduce leverage by more than 20 basis points. His prepared remarks cited expected FFO-per-share accretion in 2028; during the question-and-answer session, he said the deal would also be accretive in 2027.

About half of Macerich’s acquisition pipeline consists of on-market opportunities and about half of off-market opportunities, Hsieh said. Macerich describes itself as a self-managed real estate investment trust and owns about 39 million square feet, primarily through interests in 37 retail centers.

In May, Macerich acquired Annapolis Mall and an adjacent vacant Sears parcel for $272 million. The company projected the mall’s stabilized pro forma yield at about 11% by 2030. That completed purchase is separate from the pending acquisition.