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Is it Wise to Hold Macerich (MAC) in Your Portfolio Now?
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We updated our research report on The Macerich Company (MAC - Free Report) on Jun 9.
This Santa Monica, CA-based retail real estate investment trust (REIT) is engaged in owning, acquiring, leasing, managing, developing and redeveloping regional and community shopping centers in high barrier-to-entry U.S. markets. In first-quarter 2017, the company reported funds from operations (FFO) of $0.87, surpassing the Zacks Consensus Estimate of $0.84. The prior-year quarter’s FFO per share figure was also $0.87. Amid challenging retail landscape, the quarter witnessed modest improvement in same-center net operating income (NOI).
In the last 30 days, the company’s second-quarter 2017 FFO per share estimates moved up 1.1%. In fact, the company has a high concentration of premium malls in certain vibrant U.S. markets. Also, the company boasts well-capitalized retailers that have fared relatively well in the post-recession environment where the U.S. consumers have become more budget conscious. Additionally, its omni-channel model, steadily rising demand along with tempered supply and aggressive capital-recycling program are emerging as growth drivers.
However, increasing consumer purchases through the Internet has emerged as a pressing concern for retail REITs. While Macerich is making attempts to counter the pressure through various initiatives, the implementation of such measures requires a decent upfront cost, and therefore would limit any robust growth in its profit margins in the near term.
Shares of Macerich underperformed the Zacks categorized REIT and Equity Trust – Retail industry in the last three months. While the stock declined 7.9%, the industry lost 1.9%.
Currently, Macerich carries a Zacks Rank #3 (Hold).
In the last 30 days, DCT Industrial Trust’s funds from operations (FFO) per share for second-quarter 2017 remained unchanged at 59 cents.
In the last 30 days, Gaming and Leisure Properties’ FFO per share for second-quarter 2017 remained unchanged at 77 cents.
In the last 30 days, PS Business Parkss FFO per share for second-quarter 2017 moved up 2% to $1.53.
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.
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Is it Wise to Hold Macerich (MAC) in Your Portfolio Now?
We updated our research report on The Macerich Company (MAC - Free Report) on Jun 9.
This Santa Monica, CA-based retail real estate investment trust (REIT) is engaged in owning, acquiring, leasing, managing, developing and redeveloping regional and community shopping centers in high barrier-to-entry U.S. markets. In first-quarter 2017, the company reported funds from operations (FFO) of $0.87, surpassing the Zacks Consensus Estimate of $0.84. The prior-year quarter’s FFO per share figure was also $0.87. Amid challenging retail landscape, the quarter witnessed modest improvement in same-center net operating income (NOI).
In the last 30 days, the company’s second-quarter 2017 FFO per share estimates moved up 1.1%. In fact, the company has a high concentration of premium malls in certain vibrant U.S. markets. Also, the company boasts well-capitalized retailers that have fared relatively well in the post-recession environment where the U.S. consumers have become more budget conscious. Additionally, its omni-channel model, steadily rising demand along with tempered supply and aggressive capital-recycling program are emerging as growth drivers.
However, increasing consumer purchases through the Internet has emerged as a pressing concern for retail REITs. While Macerich is making attempts to counter the pressure through various initiatives, the implementation of such measures requires a decent upfront cost, and therefore would limit any robust growth in its profit margins in the near term.
Shares of Macerich underperformed the Zacks categorized REIT and Equity Trust – Retail industry in the last three months. While the stock declined 7.9%, the industry lost 1.9%.
Currently, Macerich carries a Zacks Rank #3 (Hold).
Investors interested in the REIT space, may consider better-ranked stocks like DCT Industrial Trust Inc. , Gaming and Leisure Properties, Inc. (GLPI - Free Report) and PS Business Parks, Inc. , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last 30 days, DCT Industrial Trust’s funds from operations (FFO) per share for second-quarter 2017 remained unchanged at 59 cents.
In the last 30 days, Gaming and Leisure Properties’ FFO per share for second-quarter 2017 remained unchanged at 77 cents.
In the last 30 days, PS Business Parkss FFO per share for second-quarter 2017 moved up 2% to $1.53.
Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. All EPS numbers presented in this write up represent FFO per share.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>