On Mar 27, 2014, we issued an updated research report on
retail real estate investment trust (REIT),
The Macerich Company
FED RLTY INV (FRT): Free Stock Analysis
GENL GRWTH PPTY (GGP): Free Stock Analysis
MACERICH CO (MAC): Free Stock Analysis Report
SIMON PROPERTY (SPG): Free Stock Analysis
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On Feb 4, Macerich kept its winning streak alive by reporting
impressive fourth-quarter results. The company's fourth-quarter
2013 adjusted funds from operations (AFFO) per share of 94 cents
surpassed the Zacks Consensus Estimate by a penny and the
year-ago figure by 4 cents. Escalation in revenues, overall
portfolio occupancy and re-leasing spreads aided the quarterly
Going forward, we believe that the company's portfolio of high
quality malls positioned across the thriving U.S. markets will
boost its top line. Improving consumer confidence is expected to
drive demand for retail goods and hence, Macerich that provides
real estate support to the retail sector, is expected to benefit.
Amid lower supply of new properties, steadily rising demand is
shaping up as the sector's growth driver.
Apart from this, portfolio restructuring activities and its deal
with the same-day delivery company, Deliv, bodes well. Yet, the
company's geographic concentration of assets and anticipated rise
in interest rates are the headwinds for this stock's growth going
forward. Hence, we have a balanced view on this stock.
Over the last 30 days, the Zacks Consensus Estimate for FFO per
share moved up a cent for both 2014 and 2015 and currently stands
at $3.59 and $3.81, respectively. The stock now has a Zacks Rank
Stocks That Warrant a Look
Investors interested in the retail REIT industry may consider
Federal Realty Investment Trust
General Growth Properties, Inc
Simon Property Group Inc.
). All these stocks have a Zacks Rank #2 (Buy).
FFO, a widely used metric to gauge the performance of REITs,
are obtained after adding depreciation, amortization and other
non-cash expenses to net income.