Back to top

Image: Bigstock

Will Online Sales Thwart Macerich's (MAC) Near-Term Growth?

Read MoreHide Full Article

We issued a research report on The Macerich Company (MAC - Free Report) on Mar 15, 2017.  This Santa Monica, CA-based retail real estate investment trust (“REIT”) is engaged in owning, acquiring, leasing, managing, developing and redeveloping regional and community shopping centers in high barrier-to-entry U.S markets.

In February, the company reported fourth-quarter 2016 FFO per share of $1.17, which came a penny above the Zacks Consensus Estimate and 5 cents ahead of the prior-year quarter tally of $1.12. Results were driven by improvement in releasing spread and same center net operating income.

Shares of Macerich underperformed the Zacks categorized REIT – Equity Trust – Retail industry over the past three months. Macerich shares experienced a loss of 7.1% against the 6.2% decline of the industry over the same time frame. Also, its first-quarter 2017 estimates have been moved down from 93 to 86 cents in the last 30 days.

 
Notably, increasing consumer purchases through Internet has emerged as a pressing concern for retail REITs. While Macerich is striving to brave such challenges through various initiatives, we believe that this factor will likely restrict growth in margins in the near term.

Currently, Macerich carries a Zacks Rank #4 (Sell).

Investors interested in the REIT space, may consider stocks like Global Net Lease, Inc. (GNL - Free Report) , CoreSite Realty Corporation (COR - Free Report) and CorEnergy Infrastructure Trust, Inc. . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the last 30 days, Global Net Lease’s FFO per share for first-quarter 2017 escalated 11.1% to 60 cents.

In the last 30 days, CoreSite Realty’s FFO per share for first-quarter 2017 increased 1% to $1.06.

CorEnergy Infrastructure Trust’ first-quarter 2017 FFO per share estimates moved up 4.7% to $1.12, in the last 30 days.

Note: 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. All EPS numbers presented in this write up represent FFO per share.

More Stock News: 8 Companies Verge on Apple-Like Run

Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.

A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Macerich Company (The) (MAC) - $25 value - yours FREE >>

Cencora, Inc. (COR) - $25 value - yours FREE >>

Global Net Lease, Inc. (GNL) - $25 value - yours FREE >>

Published in