Macerich announces board reduction after director steps down

Published 18/03/2025, 21:28
Macerich announces board reduction after director steps down

In a recent filing with the Securities and Exchange Commission, The Macerich Company (NYSE:MAC), a real estate investment trust with a market capitalization of $4.5 billion, announced that Eric K. Brandt will not seek re-election to its Board of Directors at the upcoming 2025 annual meeting of stockholders. Mr. Brandt, who has been a director since 2018, informed the Board of his decision on March 12, 2025, and will continue to serve until the annual meeting. According to InvestingPro data, the company’s stock has shown significant volatility, with a beta of 2.59 over the past five years.

Mr. Brandt’s departure is not due to any disagreements with Macerich’s operations, policies, or practices, as per the company’s statement. He currently serves as the chair of the capital allocation committee and is a member of the compensation committee.

Following Mr. Brandt’s decision, Macerich’s Board has approved a reduction in the number of directors from nine to eight, effective at the 2025 annual meeting. The company has expressed gratitude to Mr. Brandt for his contributions during his tenure.

This corporate governance update comes as Macerich continues to navigate the evolving landscape of the real estate investment trust sector.

The information in this article is based on a press release statement from the company.

In other recent news, The Macerich Company reported a notable performance in its fourth-quarter 2024 earnings, surpassing expectations with an earnings per share (EPS) of $0.89 against a forecast of $0.03, and revenue of $273.68 million, exceeding the anticipated $221.73 million. Despite these results, Macerich’s stock faced a decline, reflecting investor concerns over future guidance. Piper Sandler adjusted its outlook on the company, lowering the price target to $16 while maintaining an Underweight rating, citing cautiousness about near-term earnings prospects. Goldman Sachs also revised its price target for Macerich to $14.40 and retained a Sell rating, highlighting a projected 14.1% decline in funds from operations (FFO) per share for 2025. The firm’s annual FFO estimates for 2025 to 2027 were reduced by over 10% due to expected flat same-store net operating income growth and decreased redevelopment contributions. Macerich’s management is focused on restructuring operations and enhancing tenancy, with a target of $1.80 in FFO by 2028. The company is also actively working on reducing its debt and improving its internal systems to foster long-term growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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