Macerich Making Progress on Strategic Reorganization to Lower Leverage, Concentrate on Class A Malls
Macerich has successfully repositioned itself over the past decade as a true owner and operator of Class A regional malls. Over the past 20 years, the company has sold over $5 billion in mostly lower-quality assets and recycled the capital into acquiring new Class A malls, with $1.3 billion of those sales coming in the past two years as management looks to reduce leverage. As a result, the portfolio should produce higher tenant sales productivity, occupancy levels, and rent and therefore be much better positioned to face the economic headwinds of e-commerce. We expect Macerich to continue improving its portfolio through redevelopment, opportunistic acquisitions, and asset sales, which should deliver strong earnings growth over time.
United States