Santa Monica, Calif.-based real estate investment trust
The Macerich Company (
recently acquired an indoor shopping mall - Green Acres Mall -
from a subsidiary of
Vornado Realty Trust (
. The acquisition, worth $500 million, was funded partly with a
$325 million fixed rate loan and partly from Macerich's cash
balance and line of credit.
MACERICH CO (MAC): Free Stock Analysis Report
MCDONALDS CORP (MCD): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
VORNADO RLTY TR (VNO): Free Stock Analysis
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Positioned at Valley Stream, N.Y., Green Acres Mall spans 1.8
million square feet. The super regional mall has been serving the
diverse trade area of the city, including the southeast Queens
and southwest Nassau County, for more than 50 years. The mall is
well connected to these major regions by major highways and
expressways including Nassau Inter-County Express routes as well
as two MTA New York City Transit routes.
Green Acres Mall is currently 94% anchored and boasts over 200
stores, including restaurants. With industry-leading tenants,
AT&T Inc. (
McDonald's Corp. (
, J. C. Penney, Aeropostale and Kohl's, the upscale mall
generates revenues per square foot of over $520 annually.
This strategic buyout is a quality addition to Macerich's
portfolio of A-class malls in some of the most attractive markets
in the U.S. including Ariz., Calif., Va. and N.J. We expect the
property to generate a steady source of rental revenue going
forward and strengthen its top-line growth.
Macerich is scheduled to release its fourth-quarter 2012 results
on Feb 6, 2013 before the opening bell. The Zacks Consensus
Estimate for the company's fourth-quarter FFO (funds from
operations) currently stands at 87 cents per share.
Zacks Earnings ESP (Read:
ZACKS EARNINGS ESP: A BETTER METHOD
) for Macerich is +1.15% for the fourth quarter. This, along with
its Zacks Rank #3 (Hold), makes us confident about a positive
earnings surprise call.
Note: FFO, a widely accepted and reported measure of the
performance of REITs is derived by adding depreciation,
amortization and other non-cash expenses to net income.