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Macerich (MAC) Stock Rises on Q4 FFO Beat, Revenues Miss

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Shares of The Macerich Company (MAC - Free Report) gained 2.1% in the Feb 7 regular trading session on the NYSE after it reported funds from operations (FFO) per share of 56 cents, excluding financing expenses in relation to Chandler Freehold, gain on extinguishment of debt and accrued default interest expense, outpacing the Zacks Consensus Estimate by a penny. The figure rose 5.7% from the year-ago quarter’s 53 cents.

The results reflected a year-over-year increase in quarterly revenues. This retail REIT experienced a rise in same-center net operating income (NOI), including lease termination income, from the prior-year period.

Quarterly revenues of $238.7 million were higher than the year-ago quarter’s $228.2 million. However, the figure missed the Zacks Consensus Estimate of $242 million.

In 2023, Macerich reported FFO per share of $1.80, excluding financing expenses in relation to Chandler Freehold, gain on extinguishment of debt and accrued default interest expense, which outpaced the Zacks Consensus Estimate of $1.77. However, the figure compared unfavorably with the year-ago number of $1.96. Revenues of $884.1 million jumped 2.9% year over year but lagged the consensus mark of $888.9 million.

Behind the Headlines

The portfolio tenant sales per square foot for spaces less than 10,000 square feet for the year ended Dec 31, 2023, came in at $836 compared with $869 for the year ended Dec 31, 2022.

In 2023, Macerich signed leases encompassing 4.2 million square feet. On a comparable center basis, this reflected a 12% increase in the amount of square footage signed year over year.

As of Dec 31, 2023, portfolio occupancy was 93.5%, up from 92.6% as of Dec 31, 2022. Our expectation for the same was pegged at 93.8%.

For the year ended Dec 31, 2023, base rent re-leasing spreads were 17.2% more than the expiring base rent.

Same-center NOI, including lease termination income, increased 7.1% year over year to $230.4 million. Our expectation for the same was pegged at $226.2 million.

Balance Sheet

As of Feb 7, 2024, Macerich had around $657 million of liquidity. This included $490 million of available capacity on its $650 million revolving line of credit.

2024 Guidance

Macerich expects 2024 FFO per share (excluding financing expenses in relation to Chandler Freehold, and accrued default interest expense) in the range of $1.76-$1.86. The Zacks Consensus Estimate for the same is currently pegged at $1.79, which is within the guided range.

Currently, Macerich carries a Zacks Rank #3 (Hold).

Macerich Company (The) Price, Consensus and EPS Surprise

Macerich Company (The) Price, Consensus and EPS Surprise

Macerich Company (The) price-consensus-eps-surprise-chart | Macerich Company (The) Quote

Upcoming Earnings Releases

We now look forward to the earnings releases of other retail REITs like Federal Realty Investment Trust (FRT - Free Report) and Realty Income (O - Free Report) , which are slated to report on Feb 12 and Feb 20, respectively.

The Zacks Consensus Estimate for Federal Realty’s fourth-quarter 2023 FFO per share is pegged at $1.64, suggesting a year-over-year increase of 3.8%. FRT currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Realty Income’s fourth-quarter 2023 FFO per share is pegged at $1.02, implying a year-over-year increase of 2%. O currently carries a Zacks Rank #3.

Note: Anything related to earnings presented in this write-up represents FFO — a widely used metric to gauge the performance of REITs.


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