Macerich Refinances Top-Performing Queens Center at Favorable Terms
Macerich (NYSE: MAC) has successfully refinanced Queens Center with a new $525 million loan at a 5.37% fixed interest rate with interest-only payments for the entire term. This represents the lowest refinancing rate achieved by the company since 2019 and is Macerich's largest outstanding loan. The favorable terms demonstrate market confidence in Macerich's assets and progress on their Path Forward Plan, which focuses on simplifying business, improving operations, and reducing leverage. The company suggests this refinancing could lead to outperforming their five-year refinance plan and potentially achieving greater FFO growth.
Macerich (NYSE: MAC) ha recentemente rifinanziato il Queens Center con un nuovo prestito di 525 milioni di dollari a un tasso di interesse fisso del 5,37%, con pagamenti solo sugli interessi per l'intera durata del prestito. Questo rappresenta il tasso di rifinanziamento più basso ottenuto dall'azienda dal 2019 ed è il prestito più consistente di Macerich. I termini favorevoli dimostrano la fiducia del mercato negli asset di Macerich e nei progressi del loro Piano di Avanzamento, che si concentra sulla semplificazione delle operazioni, sul miglioramento dei processi e sulla riduzione della leva finanziaria. L'azienda suggerisce che questo rifinanziamento potrebbe portare a risultati superiori rispetto al loro piano di rifinanziamento quinquennale e potenzialmente a un maggiore aumento dei FFO.
Macerich (NYSE: MAC) ha refinanciado con éxito el Queens Center con un nuevo préstamo de 525 millones de dólares a un tasa de interés fija del 5,37%, con pagos solo de intereses durante todo el plazo. Esto representa la tasa de refinanciamiento más baja lograda por la empresa desde 2019 y es el préstamo más grande pendiente de Macerich. Los términos favorables demuestran la confianza del mercado en los activos de Macerich y en el progreso de su Plan de Avance, que se centra en simplificar el negocio, mejorar las operaciones y reducir el apalancamiento. La empresa sugiere que este refinanciamiento podría llevar a un rendimiento superior a su plan de refinanciamiento de cinco años y potencialmente lograr un mayor crecimiento del FFO.
마세리치 (NYSE: MAC)는 5억 2500만 달러의 새로운 고정 이자율 5.37%로 이자만 지급하는 조건으로 퀸스 센터를 성공적으로 재융자했습니다. 이는 2019년 이후 회사가 달성한 최저 재융자 금리이며 마세리치의 가장 큰 미지급 대출입니다. 유리한 조건은 마세리치 자산에 대한 시장의 신뢰와 비즈니스 단순화, 운영 개선, 레버리지 축소에 중점을 둔 그들의 발전 계획(Path Forward Plan)의 진행을 보여줍니다. 회사는 이번 재융자가 5년 재융자 계획을 초과 달성하고 잠재적으로 더 큰 FFO 성장으로 이어질 수 있다고 제안합니다.
Macerich (NYSE: MAC) a récemment refinancé le Queens Center avec un nouveau prêt de 525 millions de dollars à un taux d'intérêt fixe de 5,37%, avec des paiements d'intérêts uniquement pour toute la durée du prêt. Cela représente le taux de refinancement le plus bas obtenu par l'entreprise depuis 2019 et constitue le plus important prêt restant de Macerich. Les conditions favorables démontrent la confiance du marché dans les actifs de Macerich et les progrès de leur Plan d'Avancement, qui se concentre sur la simplification des opérations, l'amélioration des processus et la réduction de l'effet de levier. L'entreprise suggère que ce refinancement pourrait conduire à de meilleures performances que leur plan de refinancement sur cinq ans et potentiellement à une croissance plus importante du FFO.
Macerich (NYSE: MAC) hat erfolgreich das Queens Center mit einem neuen Darlehen von 525 Millionen Dollar zu einem festen Zinssatz von 5,37% mit ausschließlich Zinszahlungen für die gesamte Laufzeit refinancing. Dies stellt den niedrigsten Refinanzierungszinssatz dar, den das Unternehmen seit 2019 erreicht hat, und ist Macerichs größtes ausstehendes Darlehen. Die günstigen Bedingungen zeigen das Vertrauen des Marktes in die Vermögenswerte von Macerich und den Fortschritt ihres Weg-für-den-Erfolg-Plans, der sich auf die Vereinfachung des Geschäfts, die Verbesserung der Abläufe und die Reduzierung des Verschuldungsgrades konzentriert. Das Unternehmen deutet darauf hin, dass diese Refinanzierung dazu führen könnte, dass sie ihren fünfjährigen Refinanzierungsplan übertreffen und möglicherweise ein größeres FFO-Wachstum erzielen.
- Secured $525 million loan at 5.37% fixed rate, lowest refinancing rate since 2019
- Interest-only payment terms for the entire loan duration
- Refinancing terms more favorable than conservative assumptions in five-year forecast
- Potential for improved FFO growth due to better-than-expected refinancing terms
- None.
Insights
This refinancing of Queens Center marks a significant financial milestone for Macerich. The
The achieved rate, being the lowest since 2019, suggests strong lender confidence in both the asset quality and Macerich's credit profile. Queens Center's performance as a top-tier asset in the portfolio likely contributed to securing these attractive terms. The refinancing's better-than-projected terms could positively impact the company's five-year FFO growth projections and leverage reduction goals.
This transaction aligns well with Macerich's Path Forward Plan, particularly in addressing leverage concerns while maintaining operational flexibility. The successful execution at these terms may also signal improved access to capital markets for high-quality retail assets, potentially benefiting future refinancing activities.
Lowest Refi Rate Achieved by Company in Past 5 Years
SANTA MONICA, Calif., Oct. 29, 2024 (GLOBE NEWSWIRE) -- Macerich (NYSE: MAC), one of the nation’s leading owners, operators and developers of major retail properties in top markets, today announced that it has refinanced fortress property Queens Center at highly favorable terms with a new
“We are pleased to share details on our just-completed refinance of Queens Center, consistently one of the best-performing properties in our entire portfolio,” said Jack Hsieh, President and Chief Executive Officer, Macerich. “
Hsieh added, “This completed transaction demonstrates confidence from the capital markets in Macerich’s assets and in progress on our Path Forward Plan, launched earlier this year, which is sharply focused on three key areas: simplifying our business, improving operational performance and reducing leverage. Through advantageous refinancings like this, among other strategic initiatives, we are continuing to advance Macerich’s mission to add long-term value for our shareholders, partners and customers.”
For Queens Center, Macerich carried a more conservative refinance assumption in its spring 2024 five-year forecast that was unveiled with the Path Forward Plan. “This is a major reason we believe we have room to potentially outperform our five-year refinance plan and to possibly achieve even greater FFO growth,” said Hsieh.
Upcoming Investor Engagement
- Macerich Third Quarter 2024 Earnings Call – Wednesday, November 6, 10:00 am Pacific Time (1:00 pm ET)
- Nareit’s REITworld: 2024 Annual Conference at the Wynn Las Vegas in Las Vegas, Nevada, November 19-20, 2024
- CITI post-Nareit Phoenix Retail Tour in Phoenix, Arizona, November 20, 2024
- Jefferies Real Estate Conference 2024 in Miami Beach, Florida, December 10-11, 2024
About Queens Center
Queens Center in Elmhurst, NY, is set in the heart of one of the country’s most densely populated urban areas, where Queens Boulevard meets Woodhaven Boulevard. It's the ultimate shopping hub in Queens, the City’s most diverse borough, with seamless connectivity to key transportation options, including mass transit, and close proximity to both JFK and LaGuardia International Airports.
With over 50 years of history, Queens Center has continually enhanced the shopping experience for guests, including five new, recently announced retailers: Primark and H&M, both slated to open by the end of 2024; Burlington, which is expected to open on Level 1 by the start of the 2024 Holiday Season, and recently opened Warby Parker, Gap, and KIKO Milano stores. Other top retail and restaurant names at the property include American Eagle, Apple, Foot Locker, Hollister, JD Sports, Macy's, Pandora, Sephora, Victoria’s Secret, and Zara, plus Chick-fil-A, Shake Shack and The Cheesecake Factory.
About Macerich
Macerich is a fully integrated, self-managed, self-administered real estate investment trust (REIT). As a leading owner, operator, and developer of high-quality retail real estate in densely populated and attractive U.S. markets, Macerich’s portfolio is concentrated in California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor. Developing and managing properties that serve as community cornerstones, Macerich currently owns 45 million square feet of real estate, consisting primarily of interests in 41 retail centers. Macerich is firmly dedicated to advancing environmental goals, social good, and sound corporate governance. A recognized leader in sustainability, Macerich has achieved a #1 Global Real Estate Sustainability Benchmark (GRESB) ranking for the North American retail sector for 10 consecutive years (2015-2024). For more information, please visit www.Macerich.com.
Macerich uses, and intends to continue to use, its Investor Relations website, which can be found at investing.macerich.com, as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Additional information about Macerich can be found through social media platforms such as LinkedIn. Reconciliations of non-GAAP financial measures, including NOI and FFO, to the most directly comparable GAAP measures are included in the earnings release and supplemental filed on Form 8-K with the SEC, which are posted on the Investor Relations website at investing.macerich.com.
MAC-I
SOURCE: Macerich
INVESTOR CONTACT: Samantha Greening, AVP Investor Relations, Samantha.Greening@macerich.com
MEDIA CONTACT: Arun Khosla, VP Corporate Communications, Arun.Khosla@macerich.com
FAQ
What are the terms of Macerich's (MAC) Queens Center refinancing in October 2024?
How does the 2024 Queens Center refinancing rate compare to Macerich's (MAC) previous rates?
What is Macerich's (MAC) Path Forward Plan announced in 2024?
