Macerich (MAC) Stock Declines on Q1 FFO Miss, Revenues Fall Y/Y

Zacks Equity Research

1 May 2024 at 12:13 pm·2-min read

Shares of The Macerich Company MAC have lost 14.05% in the Apr 30 regular trading session on the NYSE after it reported funds from operations (FFO) per share, excluding financing expense in relation to Chandler Freehold, of 31 cents, missing the Zacks Consensus Estimate of 39 cents. Moreover, the figure declined 22.5% from the year-ago quarter’s 40 cents.

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

Quarterly revenues of $208.8 million were lower than the year-ago quarter’s $214.9 million. The figure missed the Zacks Consensus Estimate of $217.3 million.

Behind the Headlines

The portfolio tenant sales per square foot for spaces less than 10,000 square feet in the trailing 12 months ended Mar 31, 2024, came in at $837 compared with $866 for the same period ended Mar 31, 2023.

During the reported quarter, Macerich signed leases encompassing 1.04 million square feet. On a comparable center basis, this reflected a 14% increase in the amount of square footage signed year over year.

As of Mar 31, 2024, portfolio occupancy was 93.4%, up from 92.2% as of Mar 31, 2023. Our expectation for the portfolio occupancy was the same as reported.

For the 12 months ended Mar 31, 2024, base rent re-leasing spreads were 14.7% more than the expiring base rent.

Same-center NOI, including lease termination income, decreased 2.3% year over year to $189.5 million. Our expectation for the same was pegged at $202.9 million.

Balance Sheet

As of Apr 30, 2024, Macerich had around $640 million of liquidity. This included $465 million of available capacity on its $650 million revolving line of credit.

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

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 and Regency Centers REG, which are slated to report on May 2.

The Zacks Consensus Estimate for Federal Realty’s first-quarter 2024 FFO per share is pegged at $1.65, 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 Regency Center’s first-quarter 2024 FFO per share is pegged at $1.03, implying a year-over-year decrease of 4.6%. REG 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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Behind the Headlines

Balance Sheet

Macerich Company (The) Price, Consensus and EPS Surprise

Upcoming Earnings Releases

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