Calif.-based retail real estate investment trust (REIT),
The Macerich Company
) disclosed the vending of 5 assets and the results of its recent
equity issuance. This comes as part of its capital infusion
In particular, Macerich disclosed the divestiture of Green Tree
Mall in Clarksville, Ind. and an office complex in the Redmond
Town Center mixed use project. Moreover, the company is in the
process of vending three more assets, which are basically malls.
These sales are expected to reach completion this month and will
help the company fetch around $470 million, which comes as its
pro rata share of the total sale proceeds.
As a matter of fact, the average annual tenant sales
per-square-foot for the mall dispositions is $389. This is
substantially below Macerich's overall portfolio's mall tenant
sales ($535 per square foot) experienced in the first quarter of
2013. In addition, Macerich's common stock offering through its
at-the-market program helped raise $171 million.
We believe the measures are a strategic fit for Macerich. The
portfolio restructuring initiatives through the addition of
upscale retail properties and sale of non-core assets would help
it achieve a high-quality portfolio.
In the first quarter of 2013, Macerich continued construction at
a 526,000 square feet fashion outlet center - Fashion Outlets of
Chicago - which is slated to open for business on Aug 1, 2013.
Also, Macerich stated that over 150 of the most desired brands
joined the mall including Bloomingdale's The Outlet Store,
Skechers USA Inc.
), Last Call by Neiman Marcus,
Moreover, despite the share dilution impact, the capital raise
through common stock issuance would help enhance Macerich's
financial flexibility, which had a total debt of $7.0 billion as
of the end of first-quarter 2013.
Macerich currently has a Zacks Rank #2 (Buy).
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