Stock of the Day

January 4, 2021

Macerich (MAC)

$24.70
+$0.05 (+0.2%)
Market Cap: $7.01B

About Macerich

Macerich is a fully integrated, self-managed and 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 47 million square feet of real estate consisting primarily of interests in 44 regional town 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 nine consecutive years (2015-2023).

Today's Trend

Macerich Company (NYSE: MAC) shares are under pressure as investors focus on new financing plans and potential dilution, overshadowing a generally solid second-quarter operating performance.

  • Macerich reported second-quarter funds from operations and revenue ahead of analyst expectations, supported by stronger portfolio net operating income, higher occupancy, improving tenant demand and lower expenses. Macerich's Q2 FFO & Revenues Beat Estimates on Strong Portfolio NOI
  • Management expects at least 3% growth in 2026 go-forward NOI, indicating continued confidence in the mall portfolio’s operating momentum. The company also plans $300 million to $400 million of additional dispositions by year-end, which could support liquidity and debt reduction. Macerich expects at least 3% 2026 go-forward NOI growth
  • The REIT declared a quarterly dividend of $0.17 per share, maintaining an income component for shareholders. The dividend is payable September 28 to holders of record September 14.
  • Second-quarter results showed a narrower loss, with revenue of approximately $249.7 million exceeding estimates, although reported EPS remained below consensus. Mall Giant Macerich Narrows Losses in Q2 Amid Stronger Leasing
  • Macerich announced a proposed offering of exchangeable senior notes through its operating partnership. The debt issuance raises concerns about higher leverage and possible future share dilution, making it the most immediate pressure on the stock. Macerich Announces Proposed Offering of Exchangeable Senior Notes
  • The company also updated its shelf registration and expanded the syndicate for its at-the-market program, increasing its ability to issue securities. Investors may view that financing flexibility as a potential source of dilution. Macerich Updates Shelf Registration and Expands ATM Program
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