Back to top

Image: Bigstock

Macerich (MAC) Unveils the Redeveloped Broadway Plaza

Read MoreHide Full Article

The Macerich Company (MAC - Free Report) , the Santa Monica, CA-based retail real estate investment trust (“REIT”) celebrated the official opening of the expanded and the redeveloped Broadway Plaza in Walnut Creek, Calif. The company holds proven track record of adding more value to its well-located properties through redevelopment. The developments at the iconic Broadway Plaza vindicate this proven approach.

Broadway Plaza, the iconic open-air retail center in the East Bay market of San Francisco, is anchored by Nordstrom, Macy’s and Neiman Marcus. More than 50 new stores will be added to the center, which will more than double the mall shop space. The gross leasable area of this center is now over 900,000 square feet and the new expansions are more than 90% leased.

Macerich owns, acquires, leases, manages, develops and redevelops regional and community shopping centers in high barrier-to-entry U.S. markets. The company primarily focuses on the attractive, densely populated markets of the U.S. The latest transformation of Broadway Plaza includes a string of new facilities such as multi-level new parking structures, new seating areas, expanded walkways, art installations and a central plaza for events and brand activations. Also, the  project included demolition and replacement of two older, inefficient parking structures and around 80,000 square feet of existing small shop retail space and the 70,000 square-foot former Macy’s Men’s store.

On Aug 1, Macerich reported second-quarter 2016 adjusted funds from operations (“FFO”) per share of $1.02, which came in higher than both the Zacks Consensus Estimate and the prior-year quarter tally of $0.97. Improvement in releasing spread and same center net operating income aided the results.

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

Investors interested in the REIT sector can consider some better-ranked stocks like Alexandria Real Estate Equities, Inc. (ARE - Free Report) , EPR Properties (EPR - Free Report) and Weingarten Realty Investors . All these stocks hold a Zacks Rank #2 (Buy).

Note: All EPS numbers presented in this write-up represent funds from operations (“FFO”) per share. 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.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>   
 

Published in