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Macerich Co MAC

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Stock XNYS Rating as of
$11.04 +0.05 (0.46%)
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As of Delayed Price Pre-Open: $11.04 0.00
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Company Report

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Macerich Earnings: Outperforms on Fundamentals but Tenant Sales Per Square Foot Declines

Kevin Brown

Third-quarter results for Macerich were generally better than we anticipated, leading us to reaffirm our $25 fair value estimate for the no-moat company. Occupancy sequentially improved 80 basis points to 93.4% in the third quarter, well ahead of our estimate of flat growth. Re-leasing spreads were also very strong this quarter with new rent 10.6% higher than prior rent terms, well above our estimate of re-leasing spreads of 5.6% in the quarter. As a result, average base rent increased by 2.8% in the quarter, the largest increase since 2019. Same-store net operating income excluding lease termination income increased 4.8%. Macerich reported diluted funds from operations of $0.42 per share in the third quarter, which was two cents better than our $0.40 estimate.

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Price vs Fair Value

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MAC is trading within a range we consider fairly valued.
Price
$11.04
Fair Value
$78.00
Uncertainty
High
1-Star Price
$83.89
5-Star Price
$95.00
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Macerich has proficiently managed its portfolio over the past several years, trading out of noncore assets while reinvesting into its best assets and refining its tenant mix.

Bears

Shifts in consumer behavior, greater adoption of e-commerce, and other technological advances can and will significantly disrupt retailer and mall profitability.

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News

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Trading Information

Previous Close Price
$10.99
Day Range
$10.75–11.10
52-Week Range
$8.77–13.98
Bid/Ask
$10.51 / $11.15
Market Cap
$2.38 Bil
Volume/Avg
2 / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
—
Price/Sales
2.72
Dividend Yield
6.16%
Dividend Yield (Forward)
6.16%
Total Yield
6.16%

Company Profile

The Macerich Company is an S&P 500 company that invests in premium mall assets. The company owns 28 regional malls in its consolidated portfolio and 16 regional malls in its unconsolidated portfolio along with four power centers and seven other real estate assets. The company's total portfolio has 47.0 million square feet of gross leasable area and averaged $869 sales per square foot over the 12 months ending in December 2022.
Sector
Real Estate
Industry
REIT - Retail
Stock Style Box
Small Value
Total Number of Employees
651
Website
https://www.macerich.com

Competitors

Valuation

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Metric
MAC
SPG
FRT
Price/Earnings (Normalized)
 —21.2036.11
Price/Book Value
 0.9813.642.81
Price/Sales
 2.727.206.80
Price/Cash Flow
 8.6411.1514.01
Price/Earnings
MAC
SPG
FRT

Financial Strength

Metric
MAC
SPG
FRT
Quick Ratio
 0.470.450.90
Current Ratio
 0.630.450.90
Interest Coverage
 −0.654.162.80
Quick Ratio
MAC
SPG
FRT

Profitability

Metric
MAC
SPG
FRT
Return on Assets (Normalized)
 −0.48%6.70%3.34%
Return on Equity (Normalized)
 −1.40%74.73%10.01%
Return on Invested Capital (Normalized)
 2.33%10.29%5.21%
Return on Assets
MAC
SPG
FRT

REIT - Retail Industry Comparables

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Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
SPG
Simon Property Group IncKfgtn$39.7 Bil
O
Realty Income CorpZcsn$39.2 Bil
LKREF
Link Real Estate Investment TrustRxcj$12.9 Bil
KIM
Kimco Realty CorpGnw$11.7 Bil
REG
Regency Centers CorpVkb$11.4 Bil
CPAMF
CapitaLand Integrated Commercial TrustRvt$9.3 Bil
STGPF
Scentre GroupZkrs$8.6 Bil
FRT
Federal Realty Investment TrustJrlj$7.6 Bil
SITC
SITE Centers CorpWlvdw$2.7 Bil